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HomeMy WebLinkAbout2008/07/14 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JULY 14, 2008 Councilmember Sanger Absent 6:15 p.m. BOARD AND COMMISSION INTERVIEW, Westwood Room 6:30 p.m. SPECIAL CITY COUNCIL MEETING, Council Chamber 1. Call to Order 1a. Pledge of Allegiance 1b. Roll Call 2. Resolutions, Ordinances, Motions and Discussion Items 2a. Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe Recommended Action: Motion to Adopt Resolution approving Preliminary Plat and Preliminary PUD to allow a five story mixed use building with commercial uses on the ground floor and senior residential on the upper floors with conditions as recommended by the Planning Commission and Staff. 3. Adjournment 6:45 p.m. CITY COUNCIL STUDY SESSION, Council Chambers Discussion Items 1. 6:45 p.m. Future Study Session Agenda Planning – July 21 and July 28, 2008 2. 6:50 p.m. Preliminary TIF Application for the Redevelopment of the Northwest Corner of Excelsior Boulevard and France Avenue (Al’s Liquors and Anderson Cleaners Sites) 3. 7:35 p.m. Review of Business and Contractor License Requirements 4. 8:20 p.m. Council Role in Critical Incident Preparedness Training on June 28th 5. 9:20 p.m. Communications (Verbal) 9:30 p.m. Adjourn 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. St. Louis Park Economic Development Authority and regular City Council meetings are carried live on Civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for Video on Demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of City Hall and on the text display on Civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. Meeting Date: July 14, 2008 Agenda Item #: 2a Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: Special City Council Meeting EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe RECOMMENDED ACTION: Motion to Adopt Resolution approving Preliminary Plat and Preliminary PUD to allow a five story mixed use building with commercial uses on the ground floor and senior residential on the upper floors with conditions as recommended by the Planning Commission and Staff. POLICY CONSIDERATION: Does the Council wish to approve this request which is consistent with the Elmwood Land Use, Transit and Transportation Study which recommends a mix of uses in this area, including first floor commercial? BACKGROUND: Council Action from July 7th, 2008: The Preliminary Plat and Preliminary PUD applications were presented to the Council on July 7, 2008. The Council, however, needed five votes to act on the application, and there were four council members in attendance. Therefore, the Council was unable to act on the application, and voted instead to table consideration of the applications to a July 14, 2008 special meeting. This report is intended to provide a summary of the staff report submitted to the Council at the July 7th meeting. Additional information, including the proposed plans can be viewed in the July 7th staff report. A brief presentation will be made at the special meeting. Proposal: The applicant is proposing to construct a five story, mixed use, senior residential housing complex at the southeast corner of 36th Street West and Wooddale Avenue South. The building is proposed to include approximately 26,000 square feet of commercial and private common facilities space along 36th Street and Wooddale Avenue and 151 senior dwelling units above. The commercial includes a mixture of private and public uses. Parking: The ability to share parking spaces allows for more efficient use of the property, therefore, the MX district allows the City Council to reduce the required parking by up to 30%. Wooddale Pointe shows 176 parking stalls a 17% reduction from the required 212 spaces. A parking study was completed. The study shows that 112 spaces are needed. Meeting of July 14, 2008 (Item No. 2a) Page 2 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe Architectural Style and Materials: The building is designed to be consistent with the principles set forth in the Elmwood Area Land Use, Transit and Transportation Study. It is a mixed-use building with “Main Street” character commercial uses on the ground floor. The commercial uses include a grocery store, café and salon. The trash is proposed to be managed inside the building, and all deliveries would be made inside the parking level off of Yosemite Avenue. The building is proposed to be 62 feet to the top of the roof. This compares to the Hoigaard Village that is 68 feet. Streetscape & Plaza: The city hired SRF to create the streetscape and plaza designs to be consistent with the plans for the 36th Street corridor. The city is also working with the owners of all the properties along 36th Street between Wooddale Avenue and Highway 100 to create a special service district to create a process by which the property owners can work together to maintain the streetscape. Public Art: Randy Walker was awarded the contract for creating the art to be located at the intersection of Wooddale Avenue and 36th Street. Mr. Walker proposed a sculpture called “The Dream Elevator”, which is a 40 foot tall cylindrical structure inspired by the Nordic Ware grain elevator. A depiction of the Dream Elevator is shown on the site plans at the very tip of the plaza. Additional art is proposed along the entire 36th Street corridor between Wooddale Avenue and Highway 100. This art is proposed by Marjorie Pitz, and will consist of benches, bollards and planters. Stormwater: The stormwater will flow to the regional pond at Hoigaard Village. The developer will contribute financially to the cost of the pond. The amount is determined in accordance to the size of the land area draining to the pond. Setbacks: The chart below compares the proposed Wooddale Pointe street side setbacks to the VIP I, Hoigaard Village, Excelsior & Grand developments, and the setbacks proposed with the VIP II proposal that was withdrawn. The proposed setbacks are in line with these projects, particularly those located along 36th Street West. Meeting of July 14, 2008 (Item No. 2a) Page 3 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe Setback Wooddale Pointe VIP II (withdrawn) VIP I Hoigaard Village Excelsior & Grand Building to street curb 29 feet 26 feet 18 feet 26 - 40 feet 22 feet Building to on- street parking curb 19 feet 16 feet N/A 26 feet 15 feet Building to property line 8 feet 5 feet 15 feet 14 – 19 feet 5 feet Preliminary Plat: The preliminary plat consists of 1 lot, an outlot, and dedication of additional right-of-way to both 36th Street and Wooddale Avenue. The outlot would be deeded to the city for park and future right-of-way needs. The Dream Elevator and the majority of the plaza are proposed to be located in the outlot. Existing road easements along 36th Street and Wooddale are proposed to be dedicated as platted right-of-way. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: The Strategic Direction areas of: Gathering Spaces, Transportation, Sidewalk and Trails and Environment are addressed by having a mixed use building occupied with retail and service uses in a manner consistent with the pedestrian-oriented vision of 36th Street. Attachments: Draft Resolution – Preliminary Plat Draft Resolution – Preliminary PUD Prepared by: Gary Morrison, Assistant Zoning Administrator Reviewed by: Meg McMonigal, Planning & Zoning Supervisor Approved by: Nancy Gohman, Deputy City Manager/HR Director Meeting of July 14, 2008 (Item No. 2a) Page 4 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe RESOLUTION NO. 08-___ RESOLUTION GIVING APPROVAL FOR PRELIMINARY PLAT OF WOODDALE POINTE BE IT RESOLVED BY the City Council of St. Louis Park: Findings 1. Greco Real Estate Development, LLC, and Rottlund Homes, owners and subdividers of the land proposed to be platted as Wooddale Pointe have submitted an application for approval of preliminary plat of said subdivision in the manner required for platting of land under the St. Louis Park Ordinance Code, and all proceedings have been duly had thereunder. 2. The proposed preliminary plat has been found to be in all respects consistent with the City Plan and the regulations and requirements of the laws of the State of Minnesota and the ordinances of the City of St. Louis Park. 3. The proposed plat is situated upon the following described lands in Hennepin County, Minnesota, to-wit: Lots 1, 2, 3, and 4, Block 44, “St. Louis Park,” Lots 7, 8, 9, 10, and 11, Block 44, Rearrangement of St. Louis Park, Lot 6, Block 44, Rearrangement of St. Louis Park, except that part lying Westerly of the following described line: Commencing at the Northeast corner of Block 44, Rearrangement of St. Louis Park; thence Westerly 110.00 feet along the North line of said Block 44 to the point of beginning of the line to be described; thence Southerly at a right angle, to the Southwesterly line of said Block 44 and there terminating. That part of the North Half of the vacated alley between Block 1, “Collins Second Addition to St. Louis Park” and Block 44, “St. Louis Park,” lying West of the Southerly extension of the East line of Lot 1, Block 44, “St. Louis Park” and Easterly of the Southeasterly extension of the Westerly line of Lot 11, block 44, “Rearrangement of St. Louis Park.” AND Block 1, COLLINS SECOND ADDITION TO ST. LOUIS PARK, according to the recorded plat thereof, Hennepin County, Minnesota. Meeting of July 14, 2008 (Item No. 2a) Page 5 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe The portion of the alley lying Easterly of Wooddale Avenue between 36th and 37th Streets for a distance of approximately 250 feet located in: Lots 1 to 4 inclusive, and all of vacated alley and adjoining one half of Yosemite Avenue vacated, Block 1, COLLINS SECOND ADDITION TO ST. LOUIS PARK Conclusion 1. The proposed preliminary plat of Wooddale Pointe is hereby approved and accepted by the City as being in accord and conformity with all ordinances, City plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, subject to the following conditions: a. Condominium association papers must be approved by the City Attorney prior to final plat. b. A variance be applied for prior to final plat approval to reduce the required drainage and utility easements. c. Park dedication be paid prior to the city signing the final plat. d. A $1,000 cash escrow be submitted to guarantee the city receives a fully executed mylar copy of the final plat. e. Park dedication of $108,800 be paid prior to the city signing the final plat. f. Trail dedication of $24,900 be paid prior to the city signing the final plat. g. The developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. Reviewed for Administration: Adopted by the City Council July 14, 2008 City Manager Mayor Attest: City Clerk Meeting of July 14, 2008 (Item No. 2a) Page 6 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe RESOLUTION NO.08-___ RESOLUTION APPROVING A PRELIMINARY PLANNED UNIT DEVELOPMENT (PUD) UNDER SECTION 36-367 OF THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING FOR PROPERTY ZONED MX-MIXED USE LOCATED AT 3601 WOODDALE AVENUE SOUTH WHEREAS, an application for approval of a Planned Unit Development (PUD) was received on May 20, 2008 from the applicant, and WHEREAS, notice of a public hearing on the Preliminary PUD was mailed to all owners of property within 350 feet of the subject property plus other affected property owners in the vicinity, and WHEREAS, the Planning Commission reviewed the Preliminary PUD concept at the meeting of June 18, 2008, and WHEREAS, notice of public hearing on the Preliminary PUD was published in the St. Louis Park Sailor on June 5, 2008, and WHEREAS, the Planning Commission conducted the public hearing at the meeting of June 18, 2008, and WHEREAS, the Planning Commission recommended approval of the Preliminary PUD on a 4-0 vote with all members present voting in the affirmative, and WHEREAS, the City Council has considered the staff reports, Planning Commission minutes and testimony of those appearing at the public hearing or otherwise including comments in the record of decision. BE IT RESOLVED BY the City Council of the City of St. Louis Park: Findings 1. Greco Real Estate Development, LLC has made application to the City Council for a Planned Unit Development under Section 36-367 of the St. Louis Park Ordinance Code within the MX – Mixed Use district located at 3601 Wooddale Avenue South for the legal description as follows, to- wit: Lots 1, 2, 3, and 4, Block 44, “St. Louis Park,” Lots 7, 8, 9, 10, and 11, Block 44, Rearrangement of St. Louis Park, Lot 6, Block 44, Rearrangement of St. Louis Park, except that part lying Westerly of the following described line: Meeting of July 14, 2008 (Item No. 2a) Page 7 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe Commencing at the Northeast corner of Block 44, Rearrangement of St. Louis Park; thence Westerly 110.00 feet along the North line of said Block 44 to the point of beginning of the line to be described; thence Southerly at a right angle, to the Southwesterly line of said Block 44 and there terminating. That part of the North Half of the vacated alley between Block 1, “Collins Second Addition to St. Louis Park” and Block 44, “St. Louis Park,” lying West of the Southerly extension of the East line of Lot 1, Block 44, “St. Louis Park” and Easterly of the Southeasterly extension of the Westerly line of Lot 11, block 44, “Rearrangement of St. Louis Park.” AND Block 1, COLLINS SECOND ADDITION TO ST. LOUIS PARK, according to the recorded plat thereof, Hennepin County, Minnesota. The portion of the alley lying Easterly of Wooddale Avenue between 36th and 37th Streets for a distance of approximately 250 feet located in: Lots 1 to 4 inclusive, and all of vacated alley and adjoining one half of Yosemite Avenue vacated, Block 1, COLLINS SECOND ADDITION TO ST. LOUIS PARK 2. The City Council has considered the advice and recommendation of the Planning Commission (Case No. 08-21-PUD) and the effect of the proposed PUD on the health, safety and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the effect on values of properties in the surrounding area, the effect of the use on the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance. 3. The City Council has determined that the PUD will not be detrimental to the health, safety, or general welfare of the community nor with certain contemplated traffic improvements will it cause serious traffic congestion nor hazards, nor will it seriously depreciate surrounding property values. The Council has also determined that the proposed PUD is in harmony with the general purpose and intent of the Zoning Ordinance and the Comprehensive Plan and that the requested modifications comply with the requirements of Section 36-367(b)(5). The specific modifications include: a. A 17% reduction in the required parking. 4. The contents of Planning Case File 08-21-PUD are hereby entered into and made part of the public hearing record and the record of decision for this case. Meeting of July 14, 2008 (Item No. 2a) Page 8 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe Conclusion The Preliminary Planned Unit Development at the location described is approved based on the findings set forth above and subject to the following conditions: 1. The site shall be developed, used and maintained in conformance with the Preliminary PUD official exhibits. 2. The following maximum and minimum requirements, as indicated in the official exhibits, shall apply to the PUD: a. A maximum of 157 residential units. b. A minimum of 155 structured parking spaces. c. A 17% reduction from the required parking spaces to allow 176 parking spaces instead of the required 212 parking spaces. d. A minimum of 21 on-street parking spaces shall be provided. 3. Conditions for the approval of the Planned Unit Development, to be included in the Development Agreement between the City and the Developer, are as follows: a. Developer agrees to install, at its expense, street, on-street parking and streetscape improvements along all public and private streets and access drives subject to final streetscape designs, Final PUD approval and City approval of detailed construction drawings. b. Developer agrees to enter into a special service district for the continued maintenance of the streetscape along 36th Street West and Wooddale Avenue. c. Developer agrees to enter into a snow-removal agreement with the City to ensure all snow is removed from Yosemite Avenue and 37th Street West. d. Developer agrees to contribute $100,000 toward the construction of the regional storm water pond located at Hoigaard Village. e. Developer agrees to contribute financially toward the public art to be located in the plaza area at the corner of Wooddale Avenue and 36th Street West. The amount will be finalized with the final PUD. f. All deliveries shall be made inside the structured parking located adjacent to Yosemite Avenue. Deliveries lasting less than 15 minutes may be made utilize on-street parking bays. g. All trash handling and storage facilities shall be located inside the building. h. No more than 60 underground parking spaces shall be restricted to residents and employees of the residence. The remaining structured and surface parking shall be available for public parking. i. Developer agrees to place any on-site utilities underground. 4. The following façade design guidelines shall be applicable to all ground floor, non-residential facades located in the Mixed-Use building facing West 36th Street: a. Façade Transparency. Windows and doors shall meet the following requirements: i. For street-facing facades, no more than 10% of total window and door area shall be glass block, mirrored, spandrel, frosted or other opaque glass, finishes or material including Meeting of July 14, 2008 (Item No. 2a) Page 9 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe window painting and signage. The remaining 90% of window and door area shall be clear or slightly tinted glass, allowing views into and out of the interior. ii. Visibility into the space shall be maintained for a minimum of 3 feet. This requirement shall not prohibit the display of merchandise. Display windows may be used to meet the transparency requirement. b. Awnings. i. Awnings must be constructed of heavy canvas fabric, metal and/or glass. Plastic and vinyl awnings are prohibited. ii. Backlit awnings are prohibited. c. Use of Sidewalk. A business may use that portion of a sidewalk extending a maximum of 5 feet from the building wall for the following purposes, provided a 6 foot minimum horizontal clearance along West 36th Street is maintained between obstructions on the private and public sidewalks and provided that all activity is occurring on private property: i. Display of merchandise. ii. Benches, planters, ornaments and art. iii. Signage, as permitted in the zoning ordinance. iv. Dining areas may extend beyond the 5 foot maximum, provided an 8 foot minimum horizontal clearance along West 36th Street is maintained between the obstructions on the sidewalk. d. All wall vents and assorted fixtures shall be painted to match the color of the wall they are attached to. 5. Prior to starting any site work, the following conditions shall be met: a. The City shall approve a Final PUD and Final Plat. b. Proof of Recording the Final Plat shall be submitted to the City. c. A site plan showing the required fire lanes shall be submitted. d. Building material samples and colors shall be submitted. e. Assent form and official exhibits must be signed by applicant and owner. f. A preconstruction conference shall be held with the appropriate development, construction and city representatives. g. A staging plan for construction shall be filed with the City. h. All necessary permits must be obtained. In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. Meeting of July 14, 2008 (Item No. 2a) Page 10 Subject: Preliminary Plat and Preliminary Planned Unit Development for Wooddale Pointe Pursuant to Section 36-367(e)(6) of the Zoning Ordinance, the City will require execution of a development agreement as a condition of approval of the Final P.U.D. The development agreement shall address those issues which the City Council deems appropriate and necessary. The Mayor and City Manager are authorized to execute the development agreement. Reviewed for Administration: Adopted by the City Council July 14, 2008 City Manager Mayor Attest: City Clerk Meeting Date: July 14, 2008 Agenda Item #: 1 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Future Study Session Agenda Planning – July 21, 2008 and July 28, 2008. RECOMMENDED ACTION: Council and the City Manager to set the agenda for the special study session planned for Monday, July 21, 2008 and the regularly scheduled study session on Monday, July 28, 2008. POLICY CONSIDERATION: Does the Council agree with the agenda as proposed? BACKGROUND: At each study session, approximately five minutes are set aside to discuss the next study session agenda. For this purpose, attached please find the tentative agenda and proposed discussion items for the special study session on July 21, 2008 and the regularly scheduled study session on July 28, 2008. FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Attachment: Future Study Session Agenda Planning for July 21 and July 28, 2008 Prepared by: Marcia Honold, Management Assistant Approved by: Nancy Gohman, Deputy City Manager/HR Director Meeting of July 14, 2008 (Item No. 1) Page 2 Subject: Future Study Session Agenda Planning Future Study Session Agenda Planning Tentative Discussion Items Special Study Session, Monday, July 21, 2008 –6:00 p.m. 1. Ehlers TIF Report – Community Development/Finance (30 minutes) City staff and Ehlers & Associates will present the Council with a financial update for each of the city’s TIF Districts. 2. Vision Strategic Directions Update - Three Focus Areas: Remodeling, Property Maintenance and Affordable Home Ownership – Community Development (60 minutes) Staff, who are Action Champions, will provide the Council with an update on the following Vision Strategic Direction and the three focus areas under this Direction: “St. Louis Park is committed to providing a well-maintained and diverse housing stock. ƒ Remodeling and expanding move-up, single-family, owner-occupied homes. ƒ Property maintenance to foster quality housing and community aesthetics. ƒ Working towards affordable single-family home ownership throughout the city.” 7:30 p.m. end of meeting Tentative Discussion Items Study Session, Monday, July 28, 2008 – (6:30 p.m. or immediately following the Critical Incident Preparedness Drill) 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. Vision Strategic Directions Update – Evaluating and Investigating Additional North/South Transportation Options for the Community – Public Works (30 minutes) Staff will provide the Council with an update on the following Vision Strategic Direction: “St. Louis Park is committed to being a connected and engaged community…evaluating and investigating additional north/south transportation options for the community.” 3. Communications – Administrative Services (10 minutes) Time for communications between staff and Council will be set aside on every study session for the purposes of information sharing. End of Meeting (TBD – 45 minutes from start time) Meeting Date: July 14, 2008 Agenda Item #: 2 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Preliminary TIF Application for the Redevelopment of the Northwest Corner of Excelsior Boulevard and France Avenue (Al’s Liquors and Anderson Cleaners Sites) RECOMMENDED ACTION: Staff wishes to review and receive feedback from the EDA/Council on the Preliminary TIF Application made by Bader Development for the above redevelopment project. Specific issues staff wishes to discuss include: • Proposed project and plans • Compliance with the City’s TIF Policy • Project economics/amount of TIF assistance • Next steps In summary, Bader Development, LLC’ has requested $900,000 worth of TIF assistance to facilitate an $18 million mixed use redevelopment project at the Northwest corner of Excelsior Boulevard and France Avenue. As a reminder, the purpose of a Preliminary TIF Application is to allow a developer to present a proposal to the EDA/Council in the initial stages of a project to determine if it merits consideration for TIF financing. Even if the EDA/Council should direct staff to pursue the project further, the EDA/Council is not obligating itself to providing the requested assistance. POLICY CONSIDERATION: Does the EDA preliminarily support the proposed project and is it willing to consider providing financial assistance to facilitate the redevelopment? Background/Synopsis of Proposed Project: Bader Development, LLC has obtained options to purchase 2.23 acres at the northwest corner of Excelsior Boulevard and France Avenue with the intention of redeveloping the site. The subject site consists of nine parcels; eight of which are owned by Al’s Liquor and one of which is owned by Excelsior Boulevard LLC (Anderson Cleaners). The proposed redevelopment site does not incorporate the former American Inn property. Meeting of July 14, 2008 (Item No. 2) Page 2 Subject: Bader Development’s Preliminary TIF Application for the Redevelopment of the Al’s Liquor Property Bader Development is proposing to purchase the subject properties, remove the existing structures and prepare the properties for redevelopment. In their place, the Redeveloper plans to construct a mixed use building featuring approximately 136 luxury apartments and ground floor retail. The proposed structure would have five stories with one level of underground heated parking. It would consist of approximately 175,000 square feet; the majority of which would be residential and approximately 15,000 square feet of which would be commercial. Potential commercial uses would likely include a mix of neighborhood-oriented service and retail businesses. Also included on the redevelopment site is a public gathering area overlooking the Excelsior Blvd/France Ave intersection. This corner plaza area would include gateway or welcome signage as well as public art. The Redeveloper Scott Bader is President of Bader Development, LLC. (a real estate development company) and a principal of Steven Scott Companies (a property management company). Both firms have been headquartered in St. Louis Park for 47 years. Land Use and Zoning Requirements The subject redevelopment site is guided and zoned MX - Mixed Use. Thus, the proposed project would conform to the required land use. A PUD would be required for this project as a result of the site being zoned Mixed Use. Meeting of July 14, 2008 (Item No. 2) Page 3 Subject: Bader Development’s Preliminary TIF Application for the Redevelopment of the Al’s Liquor Property Conformance with Development Guidelines Bader Development’s preliminary site and building plans (attached) appear consistent with the majority of the standards listed in the Development Guidelines for the Northwest corner of Excelsior Boulevard and France Avenue adopted in 2005. Property Value and Taxes Currently, the subject properties have a total market value of less than $1.8 million. The projected market value of the property upon redevelopment would be nearly $18 million. The property taxes payable in 2008 on these same properties are $35,683. Upon redevelopment, the site would generate an estimated $297,153 in property taxes. Results of TIF Feasibility Analysis In 2005, staff retained LHB, Inc. to conduct a state-required inspection to determine if the proposed project site qualified as a redevelopment TIF district. LHB’s Report of Inspection Procedures and Results for Determining Qualifications Of A Tax Increment Financing District As A Redevelopment District : Al’s Liquor District, St. Louis Park, MN dated May 13, 2005 concluded that the proposed site met both the “Coverage Test” and the “Condition of Buildings Test” and thus qualified under Minnesota Statutes as a redevelopment TIF district. Preliminary Conformance and Analysis under the City’s TIF Policy The proposed project meets the following housing-related goals as outlined in the city’s TIF Policy: • Provides a balanced and sustainable housing stock to meet diverse needs both today and in the future. • Promotes neighborhood stabilization and revitalization by the removal of blight and the upgrading of existing housing stock. The proposed project meets the following “Desired Qualifications” as outlined in the TIF Policy: • It creates a higher ratio of property taxes paid before and after redevelopment and provides a significant increase in tax base. • It redevelops a partially underutilized area. • The Redeveloper has demonstrated preliminarily that the project plan preferred by the City is not financially feasible “but-for” the use of tax increment financing. • The Redeveloper is able to demonstrate past general development capability as well as specific capability in the type and size of development proposed. In addition to the above, the proposed project could have the following additional benefits: • Removes substandard structures. • Intensifies the property usage at the northwest corner of Excelsior Boulevard and France Avenue which is not optimally utilized. • Provides an attractive gateway development at the eastern edge of the city. • Incorporates modern interpretations of traditional architectural principles. Meeting of July 14, 2008 (Item No. 2) Page 4 Subject: Bader Development’s Preliminary TIF Application for the Redevelopment of the Al’s Liquor Property • Provides an opportunity for neighborhood retail/service/professional office space. • Includes a public gathering place at the corner with an opportunity for public art. • Further diversifies the options available in the St. Louis Park housing market. • Incorporates design features consistent with the Development Guidelines. • Serves as a catalyst for additional redevelopment activities along the Excelsior Boulevard and the stimulation of further private activity and investment in the area. • Improves vehicular safety by removing unnecessary curb cuts. • Incorporates Livable Communities principles. Grading under City’s TIF Report Card Bader Development, LLC’s Preliminary TIF Application was evaluated according to the City’s TIF Policy. The project was thus graded as follows: • Promotes housing for large families. The residential units in the development will cater to the demands of the market which is for smaller units. Since none of the units will have more than 3 bedrooms a grade of “F” was provided. • Provides economic integration of rental or ownership projects. Of the proposed 136 residential units none would be designated as low income; therefore a grade of “F” was provided. • Ratio of soft costs to Total Project Costs. Soft costs of the total project were estimated at $5.7 million or 30% of the total land development costs which graded a “C”. • Ratio of private to public financing. $17,890,000 in private development costs to $900,000 in TIF which equals a $19.88 private / $1 public ratio which garnered an “A”. • The value of the site before and after redevelopment (factor taken from the Business & Redevelopment Report Card). Estimated current market value: $1,775,000 Projected market value: $17,890,000. This is a ratio of 1:10 which equaled an “A” on the scale. The proposed project received bonus points for: redeveloping a blighted property, constructing a mixed-use development, adding value to the neighborhood, incorporating principles of livable communities, being located in one of the city’s targeted redevelopment areas, and having a significant community impact. Upon calculation of all applicable factors and bonus points, Bader Development, LLC’s proposed project received a final grade of “B” or “Very Good” according to the scale provided within the Policy. Meeting of July 14, 2008 (Item No. 2) Page 5 Subject: Bader Development’s Preliminary TIF Application for the Redevelopment of the Al’s Liquor Property Preliminary Pro Forma Analysis Staff and Ehlers & Associates reviewed Bader Development’s preliminary sources and uses statements, cash flow projections, and investor rate of return (ROR) related to the proposed project. The Redeveloper originally requested $2.4 million in tax increment assistance to offset a variety of redevelopment costs not including land acquisition. Staff and Ehlers expressed concerns over a number of these costs (including the proposed purchase price of the land) and the adverse impact they had on the project’s economics. Upon further review the Redeveloper adjusted some of its costs and ultimately was able to negotiate reduced purchase prices for the redevelopment site. As a result, the Redeveloper’s TIF request dropped to $1.2 million and ultimately to $900,000. Staff and Ehlers now feel the proposed project’s adjusted expenses and revenue are reasonable and within industry standards for this type of redevelopment. Bader Development is striving to achieve a profit return of twelve (12) percent. According to Ehlers, industry standards for cumulative annual profit returns vary from ten (10) percent to twelve (12) percent, dependent upon the size and risk associated with a project. If the EDA were to provide the requested $900,000 in assistance, Ehlers projects that the development will attain an average return of approximately 10%. In order for the developer to attain a higher return, it will have to rely on cost savings or increased revenues over time. The Redeveloper has requested $900,000 in tax increment assistance to address certain extraordinary costs associated with the subject redevelopment site. These include: • Architectural & engineering fees associated with site work only • Soil correction • Sewer line relocation • Sanitary & stormwater utility work • Building demolition • Business reestablishment/relocation Based on its review of Bader’s proforma, Ehlers’ maintains that the above costs are reasonable and warrant assistance. Bader Development’s option price for the redevelopment site totals $4.1 million or $42.58 per square foot. The price includes compensation for all nine parcels of land, the buildings and fixtures, parking lots and other site improvements; and, it includes any relocation and re-establishment assistance due Anderson Cleaners for selling their property as well as moving their business. It is important to note that Anderson was not and is not seeking to sell his property or move his business. Bader Development was able successfully negotiate the purchase of the property in order to facilitate the project and to create space for public art, a plaza and landscaping. Including the Anderson property greatly enhances the overall quality of the redevelopment project and the appearance of this key entrance to St. Louis Park. It is a front door for the City and the neighborhoods. Inclusion of the Anderson property comes at a cost premium however. This is not unusual for the acquisition of a small parcel at a key location with a functioning business that has no reason to move or sell other than to accommodate a redevelopment project. Meeting of July 14, 2008 (Item No. 2) Page 6 Subject: Bader Development’s Preliminary TIF Application for the Redevelopment of the Al’s Liquor Property The overall project land price equates to approximately $22,000 per proposed dwelling unit and $1.1 million for the 15,000 square feet of retail space. These land costs are consistent with the March 2005 limited appraisal, prepared by Patchin Messner & Dodd for the EDA for these properties. This is especially true when adjusted for the passage of time and recognizing that the purchase price includes relocation and reestablishment expenses. The Patchin appraisal concluded a land price of $22,000 per dwelling unit was an appropriate value for multi-family residential properties; and, found mixed use site land sales ranging from $32 to over $41 per square foot. Patchin did not estimate a land value for a retail component on the property. It should be noted that Al’s Bar is the last remaining true bar in St. Louis Park and would not be allowed to relocate in the city under the City’s current zoning. The owners will have to terminate their business in St. Louis Park since bars are prohibited as stand alone uses under the city’s zoning ordinance. Assemblage of a sizable redevelopment site within a fully developed suburb is recognized as being difficult, time-consuming, and expensive. The proposed option price is a total compensation figure. Therefore it includes not just compensation for the real estate, but also buildings and fixtures as well as business relocation and reestablishment costs. Legally Anderson Cleaners is under no obligation to relocate its business. In fact, the owners would prefer to remain undisturbed and continue operations at its current location. Without the EDA’s financial assistance, it is unlikely the subject properties would redevelop. The project is expected to be constructed over an 18 to 24 month period with the first increment received in 2010. Given current estimates of market value, it is expected the note would be paid off by in approximately eight (8) years (on a net present value basis) using a 6% interest rate and no inflation. The proposed project would be financed on a "pay-as-you-go" basis, which is the desired financing method under the City's TIF Policy. As with most of the City’s TIF Development Agreements, the Redeveloper will be required to execute a Minimum Assessment Agreement for the value utilized for projecting the amount of TIF assistance available. The subject site is within the City’s Redevelopment Project Area. However, in order to facilitate financing assistance, a new tax increment financing district would have to be established. A Redevelopment District would be the appropriate type of TIF district for the proposed project. It would allow up to 26 years of tax increment. As with other recent redevelopment projects with which the EDA has been involved, Bader Development would be expected to agree to a "look back" provision in a future redevelopment contract with the EDA for this project. Per the agreement, the Redeveloper would be required to submit a final proforma detailing actual costs of the development upon completion and lease up of the building. This will allow the EDA to calculate the estimated profit return to the Redeveloper. It is proposed that profits exceeding the projected twelve (12) percent would be split between the Redeveloper and the EDA which would then reduce the amount of TIF assistance provided. This is an important provision as it ensures that if the project cash flows at a higher rate, the EDA shares economically in the success of the project. Meeting of July 14, 2008 (Item No. 2) Page 7 Subject: Bader Development’s Preliminary TIF Application for the Redevelopment of the Al’s Liquor Property Conformance with the City’s Business Subsidy Policy Any proposed TIF assistance provided the subject project would be exempt from state business subsidy requirements as it relates to housing and redevelopment (Section 116J.993, subdivision 3, clause 16). Therefore, no public subsidy hearing would be required; however, it would still be subject to a modified reporting requirement. Summary The proposed redevelopment clearly has numerous benefits over the current land use. Most notably, the proposed project would result in a substantial increase in the market value of the site and hence an increase in property taxes. Visually, it would remove two structurally substandard buildings and significantly improve the entrance into the city from the east. Additionally it would provide an opportunity for a gathering place and public art. The project as currently proposed does not include the adjacent motel site as preferred under the Development Guidelines. That site could, however, be incorporated into the proposed project if a supportable purchase price could be achieved. As with all such proposals it is at the EDA’s discretion as to whether it wishes to provide financial assistance at the level requested by the Redeveloper. If the EDA/Council is interested in moving forward on this project, staff would begin negotiating business terms with Bader Development for a proposed Redevelopment Contract. Such terms would be brought back to the EDA for its review at a subsequent study session. In addition, the Redeveloper has met with the leaders of the Minikahda Oaks/Vista neighborhoods; and, has scheduled a full neighborhood meeting to discuss the scope and design of the proposed project as well as receive feedback. This meeting has been tentatively scheduled for Tuesday, July 22nd. FINANCIAL OR BUDGET CONSIDERATION: Bader Development, LLC’s has requested $900,000 worth of TIF assistance to facilitate an $18 million mixed use redevelopment project at the Northwest corner of Excelsior Boulevard and France Avenue. VISION CONSIDERATION: The proposed project conforms to several of the Strategic Directions listed in Vision St. Louis Park such as providing a diverse housing stock, creating community gathering places as well as integrating public art and community aesthetics into developments. Attachments: Preliminary site plan Preliminary building rendering Preliminary level 1 plan Sustainable design practices at Crescent Apartments Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager THE CRESCENT APARTMENTSSt. Louis Park, MinnesotaSite PlanJuly 8, 200806.0094.0Meeting of July 14, 2008 (Item No. 2) Subject: Balder Development's Preliminary TIF Application for the Redevelopment of the Al's Liquor PropertyPage 8 THE CRESCENT APARTMENTSSt. Louis Park, MinnesotaGateway SketchJuly 8, 200806.0094.0Meeting of July 14, 2008 (Item No. 2) Subject: Balder Development's Preliminary TIF Application for the Redevelopment of the Al's Liquor PropertyPage 9 Meeting of July 14, 2008 (Item No. 2) Subject: Balder Development's Preliminary TIF Application for the Redevelopment of the Al's Liquor PropertyPage 10 Meeting of July 14, 2008 (Item No. 2) Subject: Balder Development's Preliminary TIF Application for the Redevelopment of the Al's Liquor PropertyPage 11 Meeting of July 14, 2008 (Item No. 2) Subject: Balder Development's Preliminary TIF Application for the Redevelopment of the Al's Liquor PropertyPage 12 SUSTAINABLE DESIGN PRACTICES AT THE CRESCENT APARTMENTS Sustainable Site: • Construction Activity Pollution Prevention • Community Connectivity • Public transportation Access • Bicycle Storage • Light Pollution Reduction Strategy • Tenant Design Construction Guidelines Water Efficiency: • Water Efficient landscaping Materials & Resources: • Construction Waste Management Plan • Use of Regional materials where possible Indoor Environmental Quality • Construction IAQ Management Plan • Low-Emitting Materials o Adhesives 7 Sealants o Paints & Coatings o Carpet Systems • Enhanced Daylighting ADDITIONAL SUSTAINABLE DESIGN PRACTICES POSSIBLE WITH TIF ASSISTANCE Sustainable Site: • Green Roof System • Green Roof System/Light Color EPDM • Combination Provide an energy efficient car for residential use by the hour Water Efficiency: • Improved Stormwater Quality and Quantity Controls Materials & Resources: • Increased Recycled Content in Building Materials Energy & Atmosphere • Increased HVAC Systems Efficiency • Low Flow Fixtures • Energy Star Appliances Meeting of July 14, 2008 (Item No. 2) Subject: Balder Development's Preliminary TIF Application for the Redevelopment of the Al's Liquor Property Page 13 Meeting Date: July 14, 2008 Agenda Item #: 3 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Review of Business and Contractor License Requirements. RECOMMENDED ACTION: Staff requests direction on how to proceed with the proposed revisions to the city’s code relating to business and contractor licenses. POLICY CONSIDERATION: Does Council support staff’s direction to proceed with public process and ordinance development of the identified program modifications? Is Council satisfied with the proposed revisions? What else would council like staff to consider revising in the businesses and licenses chapter of the Code? BACKGROUND: During the study session discussion on May 19, 2008, Council directed the city attorney and staff to develop a draft ordinance modifying the business licensing of non-owner occupied homes. This coincided with staff review of all our business and contractor licensing programs. Several years have passed since re-codification of the City Code occurred, establishing most of the current language. Experience has revealed some modifications which would be helpful to improve effectiveness of the programs. The proposed revisions and discussion are as follows: Certificate of Property Maintenance Sec. 6-179. Issue - The market for selling residential property has slowed. Some properties may be on the market for longer than one year, currently requiring the seller to re-start the application and inspection process if they have a fully code compliant building and have been issued a Property Maintenance Certificate. Proposal - Provide the opportunity for a one-year extension of the Certificate to the seller if the property has not sold within the one year from original Certificate issue date. For condominiums, the proposal would make the initial certificate valid for property transactions for two years. Discussion - Allowing the Certificate to be renewed with a minimal fee and quick re-inspection, to verify building changes have not occurred, will streamline the process. Units within Condominium and Townhome associations generally do not deteriorate or have non-permitted construction work occurring after the Certificate is issued. A two-year expiration period for Certificates in these instances should not create any issues. These changes should help accommodate sellers while continuing to provide the intended benefits of the program. Meeting of July 14, 2008 (Item No. 3) Page 2 Subject: Review of Business and Contractor License Requirements Licenses Division 1. Generally Sec. 8-36 Issue - Suspension or revocation of a license for violations generally involves significant staff time. If an applicant requests the reinstatement of a license, the city cost incurred during the process should be clearly defined and easily recouped. Proposal – License applicants must complete a new license application, payment of the current license fee, and a pre-determined fee reflecting any costs the city may have incurred during the revocation process. Discussion - Removing the word “may” and replacing it with “shall” eliminates any question of cost recovery. Specifying a specific amount in the fee appendix gives us the opportunity to cover our costs and inform the license holder during a suspension or revocation process what the implications will be. The fee could be a straight dollar amount or percentage of the annual license fee. In either case the amount would be set annually with the adoption of the fee appendix. Mechanical Contractor Sec. 8-112. Exemptions Issue - Anyone other than the property owner is currently required to become a licensed Mechanical Contractor (competency examination, insurance, and fees required) to replace or re-connect a gas stove or gas clothes dryer. This type of work is relatively simple without the need for installation of new gas piping. Some appliance stores have told customers they will not provide installation services in St. Louis Park because of our requirements. Proposal - Provide an additional exemption to Mechanical Contractor licensing requirements for replacing these appliances. Discussion – This change will allow the work to be completed by plumbers or appliance stores providing delivery and installation services in addition to homeowners who are currently exempt. Permit requirements in the Minnesota State Construction Code would not be effected. Relaxing this licensing requirement will change the program to reflect what is currently happening in most cases anyways. Many cities do not have any Mechanical Licensing and it is not regulated by the State. Tree Maintenance Contactor Sec. 8-161 through 8-165. Issue – The word “service” is missing in the current language and no proof of competency of a tree removal company is required. Proposal - Include the verbiage of service or servicing when describing the tree maintenance license and to require proof that at least one employee for the company is a Certified Arborist at the time of application. Tree services performed will be required to meet the ANSI standard. Discussion – Environmental Coordinator Jim Vaughan has proposed these changes to keep the program current with industry practice and help ensure that licensed contractors are performing acceptable work within the community. Payment of Taxes on Licensed Premises Sec. 8-188. Issue – A license holder is currently provided a 30-day notice of pending license suspension for non- payment of property taxes for the business located in the city. This same notice period applies for each repeat occurrence. Meeting of July 14, 2008 (Item No. 3) Page 3 Subject: Review of Business and Contractor License Requirements Proposal - If a license holder repeatedly fails to submit property taxes and causes the suspension process to begin again, the notice would be reduced to 10 days. A repeat violation would be considered occurring within either the current or previous annual license period. Discussion - This provides a clear message to the license holder that property taxes must be paid when due and the process for a violation will not be used as a tool for extending the time for payment before license suspension action is taken. Classification of food and beverage establishments and food vending machines. Sec. 8-257. Issue 1 - The school district is unique in having multiple food preparation and distribution sites operating as a single entity. Our current fee schedule and the MDH food classification does not readily apply to the operation and results in a total of seven license fees added together. Proposal - Establish a Class E Food license and corresponding fee category which would apply to Multi-site educational facilities with food and beverage service. Discussion - Establishments meeting the criteria will be required to complete only one application for all sites with a fee to reflect the cost of service being provided at their facilities. This will simplify the license process for the applicant and city without changing the food inspection program we follow under the MDH delegation agreement. Issue 2 – Vehicles used for catering need to be inspected and identified that they meet the MDH Food Code requirements since they often cross city boundaries. Proposal – Establish a requirement that each catering vehicle must be inspected and have an annual License Decal affixed. An annual decal fee will be specified in the fee appendix. Discussion - The decal will enable Health Inspectors to know which vehicle have been inspected and may be used for food catering. The decal fee will reflect the cost of completing the annual inspection of the vehicle. Licensed Food establishments will need to contact the city if a vehicle has been added or replaced throughout the year for an inspection and purchase of a vehicle decal. Massage Therapy Establishments Sec. 8-297 Issue 1 - Health and sanitation requirements necessary for the physical space to properly operate a licensed massage therapy establishment are currently not specified. Proposal - Establish minimum requirements as a condition of License. Discussion - Including this information in the licensing conditions provides consistent standards since State Construction and Environmental Codes are not clear. The standards would go into effect for all establishments with the next licensing period and should not create a hardship. Issue 2 – A business license to operate a massage therapy establishment may now be issued to someone with a criminal background in prostitution or related illegal activities. Proposal - Requirement for applicants to provide a copy of their current government issued identification, complete an application addendum and be subject to a background check by the Police Department. Discussion – This is an important component to help ensure that legitimate massage establishments, either as part of a medical office or stand alone business, are able to provide legitimate health services in the community. Meeting of July 14, 2008 (Item No. 3) Page 4 Subject: Review of Business and Contractor License Requirements Rental Licensing Sec. 8-326 Issue 1 - Our rental inspection program was expanded from multi-family apartments to include one and two family residential properties beginning 2005. During development of the program Council and staff discussed if the need existed to include rental condominium and townhome units. Since all of these units are within an association of some type, the exterior property maintenance concerns did not seem to warrant inclusion. Another staff concern at the time was our inspection capacity to include them when we were adding approximately 600 homes and duplexes. Over the past few years several incidents at rental condominiums/townhomes have occurred requiring Environmental Health and Police involvement. Complaints regarding renter living conditions, unit condition (i.e. odor, trash) effecting neighbors, and crime/drug and disorderly use violations justify including all rental units within the program. Issue 2 - A recent occurrence of an apartment building becoming a condominium identified a potential trend. The process of filing a condominium conversion with the County is apparently relatively easy and according to the city assessor may provide a tax benefit. The resulting units do no need to be sold and could continue to be rented by the owner (previous building owner = new owner of multiple units). Our current program exempts all the rental units because they are now technically a condominium. Proposal 1&2 - Remove the exemption of townhomes and condominiums from the rental licensing requirements. Discussion 1&2 - It can be justified that all residential properties be treated the same. Condominiums/Townhomes have similar issues as other rental properties, currently without the license and inspection requirements, including the Crime Free/Drug Free components. An estimated 200-300 additional rental units would be licensed by this change. Our license and inspection organization framework is in place. The additional license fee revenue would allow staffing resources if needed to accommodate the additional work. Proceeding with this change would require we start a public process to inform all the associations and owner which could be involved. Issue 3 - The scope of our Rental license category is very broad and includes all non-owner occupied facilities providing housing. Some types of facilities currently part of the program may not be an appropriate fit into category. Examples include large assisted living complexes, group homes, protective shelters, and sober houses. The current rental program requirements, inspection for property maintenance and crime-free provisions, do not fully address these types of establishments. Proposal 3 - As Council directed during the May 19th Study Session, the City Attorney and staff have drafted a new business license category for Community Residential Facilities. Subdivision XV. Community Residential Facility Sec. 8-464 through 8-469 would create this license and some specific performance requirements. Zoning Code Sec 36-163 would also need to be reviewed for changes though the Planning Commission. Discussion 3 - The City Attorney and staff will be present to further discuss the proposed section in detail. Meeting of July 14, 2008 (Item No. 3) Page 5 Subject: Review of Business and Contractor License Requirements FINANCIAL OR BUDGET CONSIDERATION: Modifications to our licensing program will have a budget neutral effect. Any increase costs incurred by the City would be recovered through establishing licensing fees. VISION CONSIDERATION: Not applicable. Attachments: Proposed Code Amendments Prepared by: Brian Hoffman, Director of Inspections Approved by: Tom Harmening, City Manager Meeting of July 14, 2008 (Item No. 3) Page 6 Subject: Review of Business and Contractor License Requirements Article VI. Certificate of Property Maintenance Sec. 6-179. Compliance; expiration. (a) When the property use is legal in accordance with city zoning requirements and the property complies with all applicable building, fire, health and property maintenance codes, a certificate of property maintenance will be issued by the city. (b) A certificate of property maintenance is valid to be used for the transfer of property for a period of one year from the date of issue. The certificate of property maintenance may only be used for property transfer by the owner named on the certificate of property maintenance or the owner's legal representative. Exception: The certificate is valid for two years when issued for individual units in multi-family residential buildings (c) A one year extension of the property maintenance certificate may be issued following a re- inspection of the property and payment of a fee. Such fee shall be set from time to time by the city and a schedule of such fees listed in appendix A to this Code. Article II. Licenses Division 1. Generally Sec. 8-36. Refusal, suspension, revocation and reinstatement. If a license is reinstated following suspension or revocation, the city may require the applicant shall complete a new license application, and pay payment of the city's costs as a condition of reinstatement of the license a reinstatement fee in addition to the current license fee. Such fees shall be set from time to time by the city and a schedule of such fees listed in appendix A to this Code. Such costs may include, but are not limited to, law enforcement costs, legal fees, investigations, inspections or other professional fees incurred due to the licensee's violation of applicable laws, ordinances, regulations and conditions of the license. Subdivision III. Mechanical Contractor Sec. 8-112. Exemptions. The following persons are exempt from the licensing requirements of this subdivision: (1) The owner-occupant of a one-family or two-family dwelling who is working on the owner- occupant's own dwelling. (2) Persons installing or working on process piping regulated under the state mechanical code. (3) Persons replacing or reconnecting gas stoves and clothes dryers to existing gas piping when not altering to the existing gas piping. Meeting of July 14, 2008 (Item No. 3) Page 7 Subject: Review of Business and Contractor License Requirements Subdivision V. Tree Servicing Maintenance and Removal Contractor* Sec. 8-161. License required. Any person or company engaging in a business that maintains, removes or treats trees within the city must obtain a tree servicing maintenance and removal contractor's license from the city. Sec. 8-162. Application. The applicant for a tree servicing maintenance and removal contractor's license must submit a completed application, provide proof of insurance and workers' compensation, a list of all vehicles which will be operating within the city, including license plate numbers and in-house vehicle identification numbers for such vehicles, and provide proof that at least one employee of tree service (company) is currently recognized by the International Society of Arboriculture (ISA) as a Certified Arborist at the time of their license application or renewal. Throughout the license term, the licensee must notify the city of any additional vehicles which will be operating within the city under the tree servicing maintenance and removal contractor's license. Tree services must comply with American National Standards Institute (ANSI) Standard A300 when pruning or otherwise servicing trees on public or private property. (Ord. No. 2181-00, § 4(16-205B.), 11-6-2000) Sec. 8-163. Vehicle decal. Each vehicle operating in the city under a tree servicing maintenance and removal contractor's license must have a valid city-issued decal identifying the licensed tree service contractor affixed in a visible location to such vehicle. (Ord. No. 2181-00, § 4(16-205C.), 11-6-2000) Sec. 8-164. Additional insurance required. The tree service maintenance and removal contractor shall provide proof of automobile insurance through the term of the tree servicing maintenance and removal contractor's license, including coverage for all owned and hired vehicles used for tree service maintenance and removal solid waste collection within the city. Limits of liability insurance should be for not less than the amount that shall be set from time to time by the city and a schedule of such insurance rates is listed in appendix A to this Code. The policy of insurance shall provide full insurance to cover all of the tree servicing maintenance and removal contractor's operating exposure, including, but not limited to, the picking up of the materials and the operation of vehicles. (Ord. No. 2181-00, § 4(16-205D.), 11-6-2000) Meeting of July 14, 2008 (Item No. 3) Page 8 Subject: Review of Business and Contractor License Requirements Sec. 8-165. Chemical treatment services. If the applicant for a tree servicing maintenance and removal contractor's license also provides chemical treatment services for trees, a copy of the applicant's Minnesota state Department of Agriculture commercial pesticide applicator license must accompany the application for a tree servicing maintenance and removal contractor's license. DIVISION 3. BUSINESSES Subdivision I. In General Sec. 8-188. Payment of taxes on licensed premises. (a) Any and all real estate taxes or special assessments levied against the property for which a license application is made under this division must be current before such license is issued or renewed. (b) Upon receipt of evidence that such taxes or special assessments levied against any such premises have become delinquent during the term of a license under this division, the city manager shall notify the licensee of the delinquency and that all licenses issued for the premises shall be suspended 30 days after date of the notice unless such taxes and special assessments are paid and the county treasurer's receipt of such payment is delivered to the city manager. The license will remain suspended and all licensed activity must cease until such time that the taxes and special assessments are paid in full. (c) If the taxes or special assessments become delinquent a second time within two consecutive license periods, the city manager shall notify the licensee of the delinquency and that all licenses issued for the premises shall be suspended 10 days after date of the notice unless such taxes and special assessments are paid in full and the county treasurer's receipt of such payment is delivered to the city manager. The license will remain suspended and all licensed activity must cease until such time that the taxes and special assessments are paid in full. Sec. 8-257. Classification of food and beverage establishments and food vending machines. The city will classify each food and beverage establishment and food vending machine based on the use occurring, in accordance with the food code, into one of the following categories before a license is issued: (1) Class H plus--Multiple use license permitting three or more uses of any risk class to operate. (2) Class H--High risk use license permitting up to two high risk uses or a single high risk use with a single low or medium risk use. (3) Class M--Medium risk use license permitting a single medium risk use. Meeting of July 14, 2008 (Item No. 3) Page 9 Subject: Review of Business and Contractor License Requirements (4) Class L--Low risk use license permitting a single low risk use. (5) Class V--Food vending machines. (6) Class S –Seasonal concession with low or medium risk. (7) Class E – Multi-site educational facilities – Educational facility with multiple locations within the city. (8) Catering Vehicle Decal –Each vehicle used to transport food from a licensed facility must have a valid city issued decal. Subdivision VI. Therapeutic Massage Therapy Establishments Sec. 8-297. Regulations adopted. (a) Each licensed therapeutic massage therapy establishment in the city shall be constructed and maintained in compliance with the health, safety and building regulations of the city, and all state laws, rules and regulations. Including but not limited to the following: 1.) Walls, floors and ceilings must be smooth, clean and in good repair. Low nap carpeting is permitted provided it is kept clean and without wear or tear. 2.) Massage rooms must be equipped with lighting capable of illuminating horizontal surfaces with a minimum of 50 foot candles to facilitate room cleaning. 3.) Massage rooms must be equipped with mechanical air ventilation or an exhaust fan. 4.) A hot and cold water hand washing sink with soap and hand drying by mechanical or disposable towel is required in the therapeutic massage area. Use of a public bathroom or janitor’s sink is not allowed. An NSF approved portable hand sink is permitted. (b) No customer or patron of a therapeutic massage therapy establishment shall be allowed to enter the licensed premises after 8:30 p.m. and before 8:00 a.m. daily. No customer or patron of a massage therapy establishment shall be allowed to remain upon the licensed premises after 9:15 p.m. and before 8:00 a.m. daily. Such restrictions on hours shall not apply where the massage therapy is provided within a health/sports establishment, and in such case, the hours for massage therapy must coincide with the health/sports establishment's hours of operation. (c) During any hours in which any person is present on the licensed premises of a massage therapy establishment, such massage therapy establishment shall be open to inspection by city inspectors and police officers. Upon demand by any police officer, all persons engaged in providing services in any massage therapy establishment licensed premises shall identify themselves, giving their true legal name and correct address. Meeting of July 14, 2008 (Item No. 3) Page 10 Subject: Review of Business and Contractor License Requirements (d) The applicant for a new license will be required to provide a copy of a current government issued identification and complete a license application addendum and will be subject to a background check completed by the Police Department. Subdivision VIII. Rental Housing Sec. 8-326. License required. (a) The owner of a residential building or portion thereof operated as rental housing with one or more dwelling units must obtain a rental housing license. The license shall contain a statement that the tenant or tenants may contact the attorney general for information regarding the rights and obligations of owners and tenants under state law. The statement shall include the telephone number and address of the attorney general. (b) The term “rental housing” means any occupied dwelling or dwelling unit that is not owner occupied for a minimum of six months per calendar year. The term includes any dwelling or dwelling unit occupied by a relative of the owner. (c) Exceptions. No license shall be required under the following circumstances: (1) A single family dwelling or single dwelling unit of a duplex or condominium/townhouse occupied by the building owner for a minimum of six months per calendar year. (2) (1) Rented rooms within an owner occupied dwelling unit. (3) (2) Rented dwelling units that are part of a condominium or townhouse association. A dwelling unit licensed as a community residential facility. Sec. 8-327. Required Application Information. The owner must identify a designated property manager responsible for operation and maintenance of each licensed property. Contact information for the owner and property manager must be provided on the license application, and the owner must provide the city with any changes occurring within the license period. The owner may be the designated property manager. The owner must submit verification with the license application that the designated property manager has attended required training as specified in this section and that the Crime Free/Drug Free and Disorderly Use language required by this section is contained in the licensed property tenant lease or leases. (Ord. No. 2334-07, 08-10-2007) Meeting of July 14, 2008 (Item No. 3) Page 11 Subject: Review of Business and Contractor License Requirements Sec. 8-328. Crime Free/Drug Free Training. The owner or property manager must have attended an approved training program in The Minnesota Crime Free Multi-Housing Program before any rental license is issued. A Provisional License may be issued for six months to accommodate the training schedule. An owner whose only rental housing is a single family dwelling homesteaded by a relative is exempted from the training program. (Ord. No. 2334-07, 08-10-2007) Sec. 8-329. Maintenance. The owner of rental housing must maintain all units, common space and exteriors of such buildings in compliance with the City Code and state and federal laws and regulations. The owner of such rental housing shall perform a periodic assessment of all portions of the building and correct any inadequacies to ensure the building is maintained in good repair. (Ord. No. 2334-07, 08-10-2007) Sec. 8-330. City Inspections. (a) The owner of rental housing shall permit access by the City to perform a minimum of one inspection every two years of the common space and every dwelling unit. The City may perform or require additional inspections if deemed necessary by the City or by the request of a tenant. The owner shall notify the tenant or tenants of the time when the City inspection will be conducted and provide access to the units. (b) The owner’s rental housing license may be suspended, revoked or denied renewal for failing to maintain the licensed building in compliance with the property maintenance code as set forth in chapter 6, article V of this Code or otherwise failing to comply with the requirements of the City Code or applicable state or federal law. (Ord. No. 2334-07, 08-10-2007) Sec. 8-331. Crime Free/Drug Free and Disorderly Use Lease Requirements. (a) All tenant leases, except for state licensed residential facilities and subject to all preemptory state and federal laws, shall contain the following Crime Free/Drug Free and Disorderly Use language: (1) Crime Free/Drug Free. Meeting of July 14, 2008 (Item No. 3) Page 12 Subject: Review of Business and Contractor License Requirements 1. Resident, any members of the resident’s household or a guest or other person affiliated with resident shall not engage in criminal activity, including drug-related criminal activity, on or near the premises. 2. Resident, any member of the resident’s household or a guest or other person affiliated with resident shall not engage in any act intended to facilitate criminal activity, including drug-related criminal activity, on or near the premises. 3. Resident or members of the household will not permit the dwelling unit to be used for, or to facilitate criminal activity, including drug-related criminal activity, regardless of whether the individual engaging in such activity is a member of the household, or a guest. 4. Resident, any member of the resident’s household or a guest, or other person affiliated with the resident shall not engage in the unlawful manufacturing, selling, using, storing, keeping, or giving of a controlled substance at any locations, whether on or near the premises or otherwise. 5. VIOLATION OF THE ABOVE PROVISIONS SHALL BE A MATERIAL AND IRREPARABLE VIOLATION OF THE LEASE AND GOOD CAUSE FOR IMMEDIATE TERMINATION OF TENANCY. (2) Disorderly Use. 1. Resident, members of the resident’s household, guests, or other persons under the resident’s control shall not engage in the following Disorderly Use activities: violations of state law relating to alcoholic beverages, trespassing or disorderly conduct; and violation of the St. Louis Park City Code relating to zoning, nuisance and prohibited noise. 2. THREE DISORDERLY USE VIOLATIONS INVOLVING THE SAME TENANCY WITHIN A CONTINUOUS TWELVE MONTH PERIOD SHALL BE A SUBSTANTIAL AND MATERIAL VIOLATION OF THE LEASE AND GOOD CAUSE FOR TERMINATION OF THE TENANCY. (3) Definitions. 1. The term “criminal activity” means prostitution, criminal street gang activity, threatening, intimidating or assaultive behavior, the unlawful discharge of firearms, or any other criminal activity on or near the premises that jeopardizes the health, safety and welfare of the landlord, his agent, other resident, neighbor or other third party, or involving imminent or actual serious property damage. Meeting of July 14, 2008 (Item No. 3) Page 13 Subject: Review of Business and Contractor License Requirements 2. The term “drug related criminal activity” means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use of a controlled substance or any substance represented to be drugs (as defined in Section 102 of the Controlled Substance Act [21 U.S.C. 802]). (4) Non-Exclusive Remedies. The Crime Free/Drug Free and Disorderly Use provisions are in addition to all other terms of the lease and do not limit or replace any other provisions. (b) These lease provisions shall be incorporated into every new lease for a tenancy beginning January 1, 2008 and all renewed leases by January 1, 2009. (c) Upon determination by the Police Department that a licensed premises or unit within a licensed premises was used in violation of the Crime Free/Drug Free provisions of Subsection (a) (1) herein, the Police Department shall cause notice to be made to the owner and property manager of the violation. The owner or property manager shall notify the tenant or tenants within ten days of the notice of violation of the Crime Free/Drug Free lease language and proceed with termination of the tenancy of all tenants occupying the unit. The owner shall not enter into a new lease for a unit located in the licensed property with an evicted tenant for a period of one year after the eviction. (d) Upon determination by the Police Department that a licensed premises or unit within a licensed premises was used for Disorderly Use activities as set forth in Subsection (a)(2) herein, the Police Department shall cause notice to be made to the owner and property manager of the violation and direct the owner and property manager to take steps to prevent further Disorderly Use violations. (e) If a second Disorderly Use violation as determined by the Police Department occurs within a continuous twelve month period involving the same tenancy, the Police Department shall cause notice to be made to the owner and property manager of the second violation. The owner or property manager shall respond in writing within ten (10) days of receipt of the notice with an action plan to prevent further Disorderly Use violations. (f) If a third Disorderly Use violation as determined by the Police Department occurs within a continuous twelve month period involving the same tenancy, the Police Department shall cause notice to be made to the owner and property manager of the third violation. The owner or property manager shall notify the tenant or tenants within ten days of the Notice of Disorderly Use violation of the Crime Free/Drug Free lease language within the lease and proceed with termination of the tenancy of all tenants occupying the unit. The owner shall not enter into a new lease for a unit located in the licensed property with an evicted tenant for a period of one year after the eviction. Meeting of July 14, 2008 (Item No. 3) Page 14 Subject: Review of Business and Contractor License Requirements (g) The provisions of Subsections (c), (d), (e), and (f) herein do not apply if the determination that the premises have been used in violation of the Crime Free/Drug Free provisions of Subsections (a)(1) and (a)(2) herein originates from a call from or at the request of one or more of the tenants occupying the premises for police or emergency assistance, or in the case of domestic abuse, from a call for assistance from any source. The term “domestic abuse” has the meaning given in Minn. Stat. § 518B.01, subd. 2. Sec. 8-332. Administrative License Violation Fee. An owner failing to proceed with an action to terminate the tenancy after Police Department notification in accordance with a Crime Free/Drug Free violation or the third Disorderly Use violation shall pay an administrative license violation fee of $750.00 for each calendar month that the owner fails to proceed. Any outstanding fees must be paid prior to the city renewing a rental license for the licensed premises. Subdivision XV. Community Residential Facility Sec. 8-464. License required. (a) The owner of any residential building or portion thereof operating as a Community Residential Facility with one or more dwelling units must obtain a license. (b) A Community Residential Facility is a state-licensed residential facility or group home/nonstatutory facility. Sec. 8-465. Definitions. For purposes of this Subdivision XV the following terms shall have the meaning set forth in this section: (a) State-licensed residential facility means a state-licensed and state-mandated residential facility occupied by persons in need of specialized treatment or protection and resident staff who live together as a single housekeeping unit, usually for a limited period of time. The use includes outpatient group counseling, some supervision and treatment programs. The maximum number of clients served is specified by state law which may be amended from time to time. Persons served may include the mentally retarded and severely physically handicapped. (b) Group home/nonstatutory means occupancy of a residential structure by persons in need of specialized treatment or protection and resident staff who usually live together as a housekeeping unit for a limited period of time. Occupants are typically not treated as tenants or have specialized regulations relating to their occupancy. This use includes outpatient group counseling, forced detention, treatment for mental illness and drug addiction, protective shelter, half-way house, sober houses and release programs. The facility may be licensed by the state but is not mandated. Meeting of July 14, 2008 (Item No. 3) Page 15 Subject: Review of Business and Contractor License Requirements Sec. 8-466. Required Application Information. The owner must identify a designated property manager responsible for operation and maintenance of each licensed property. Contact information for the owner and property manager must be provided on the license application, and the owner must provide the city with any changes occurring within the license period. The owner may be the designated property manager. The owner must submit a reproduction of state or county license at the time of application. Sec. 8-467. Maintenance. The owner of community residential facility must maintain all units, common space and exteriors of such buildings in compliance with the City Code and state and federal laws and regulations. The owner of such facility shall perform a periodic assessment of all portions of the building and correct any inadequacies to ensure the building is maintained in good repair. Sec. 8-468. City Inspections. (a) The owner of a community residential facility shall permit access by the City to perform a minimum of one inspection every year of the common space and every dwelling unit. The City may perform or require additional inspections if deemed necessary by the City or by the request of an occupant. The owner shall notify the occupants of the time when the City inspection will be conducted and provide access to the units. (b) The owner’s community residential facility license may be suspended, revoked or denied renewal for failing to maintain the licensed building in compliance with the property maintenance code as set forth in chapter 6, article V of this Code or otherwise failing to comply with the requirements of the City Code or applicable state or federal law. Sec. 8-469. Condition of Licensing. All licensees, except State-licensed residential facilities, shall comply with the following conditions relating to the operation of the licensed facility: (a) Maximum occupancy of a licensed facility shall be in compliance with the zoning ordinance, State Building Code and all other applicable regulations. (b) The licensed facility must comply with all zoning requirements for the district in which the facility is located. (c) A qualified, full-time staff person must reside at the licensed facility. (d) Subject to any limitations in state statute, no new license will be issued for a community residential facility which would be located closer then 1320 feet (1/4 mile) to another community residential facility. Meeting of July 14, 2008 (Item No. 3) Page 16 Subject: Review of Business and Contractor License Requirements (e) Compliance with any applicable Minnesota Department of Health rule for Food and Lodging. (f) The average length for residents during any calendar year shall be at least ninety (90) days. Sec. 8-470. Crime Free/Drug Free and Disorderly Use Requirements. (a) All Community Residential Facilities, except for state licensed residential facilities and subject to all preemptory state and federal laws, shall comply with the following Crime Free/Drug Free and Disorderly Use language: (1) Crime Free/Drug Free. 1. Resident, any members of the Community Residential Facility or a guest or other person affiliated with resident shall not engage in criminal activity, including drug- related criminal activity, on or near the premises. 2. Resident, any member of the Community Residential Facility or a guest or other person affiliated with resident shall not engage in any act intended to facilitate criminal activity, including drug-related criminal activity, on or near the premises. 3. Resident or members of the Community Residential Facility will not permit the dwelling unit to be used for, or to facilitate criminal activity, including drug-related criminal activity, regardless of whether the individual engaging in such activity is a member of the household, or a guest. 4. Resident, any member of the Community Residential Facility or a guest, or other person affiliated with the resident shall not engage in the unlawful manufacturing, selling, using, storing, keeping, or giving of a controlled substance at any locations, whether on or near the premises or otherwise. (2) Disorderly Use. 1. Resident, members of the Community Residential Facility, guests, or other persons under the resident’s control shall not engage in the following Disorderly Use activities: violations of state law relating to alcoholic beverages, trespassing or disorderly conduct; and violation of the St. Louis Park City Code relating to zoning, nuisance and prohibited noise. Meeting of July 14, 2008 (Item No. 3) Page 17 Subject: Review of Business and Contractor License Requirements (3) Definitions. 1. The term “criminal activity” means prostitution, criminal street gang activity, threatening, intimidating or assaultive behavior, the unlawful discharge of firearms, or any other criminal activity on or near the premises that jeopardizes the health, safety and welfare of the landlord, his agent, other resident, neighbor or other third party, or involving imminent or actual serious property damage. 2. The term “drug related criminal activity” means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use of a controlled substance or any substance represented to be drugs (as defined in Section 102 of the Controlled Substance Act [21 U.S.C. 802]). (b) Upon determination by the Police Department that a licensed premises or unit within a licensed premises was used in violation of the Crime Free/Drug Free provisions of Subsection (a) (1) herein, the Police Department shall cause notice to be made to the license holder of the violation (c) A service fee will be assessed to the license holder for violation of the Crime Free/Drug Free provisions. If service fee is not paid by the next license period, the fee will be added to the approved license fee and collected at that time. Sec. 36-163. R-1 single-family residence district. * * * (c) Uses permitted with conditions. A structure or land in an R-1 district may be used for one or more of the following uses if its use complies with the conditions stated in section 36-162 and those specified for the use in this subsection. (1) Group home/nonstatutory. The conditions are as follows: a. The residence structure shall be treated as a single family dwelling and occupied by no more than one family as defined in §36-4. b. The use shall not be located within 1,320 feet (1/4 mile) of any other group home/nonstatutory or state-licensed residential facility. Meeting Date: July 14, 2008 Agenda Item #: 4 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Council Role in Critical Incident Preparedness Training on June 28th RECOMMENDED ACTION: Discussion item, no action needed. POLICY CONSIDERATION: After discussion, we want to make sure Council understands their role in this type of situation and answer any questions that may arise. BACKGROUND: A local emergency or disaster is a stern test of a political jurisdiction’s leadership. The role played by elected officials during these events plays an important part in a jurisdiction’s successful handling of an emergency. We will review and discuss with Council their role, should such an event happen in St. Louis Park. In addition, on Monday, July 28th, the City of St. Louis Park and the School District will be working together on multi agency training and an exercise to be held at the St. Louis Park High School. This exercise, while primarily focusing on Police, Fire, EMS and School response, will also be an opportunity for the City and School District to work together in an Emergency Operations Center format. Arrangements have been made for those Council members who wish to tour the site, review preparations and equipment involved with a drill of this magnitude (including the new command vehicle jointly purchased by St. Louis Park & Golden Valley), and enjoy a delicious box lunch with participants. At our meeting on Monday we will talk about: • Schedule of events on July 28th • Role of Council • Transportation arrangements • Time of activities FINANCIAL OR BUDGET CONSIDERATION: None. VISION CONSIDERATION: None. Prepared and Approved by: Luke Stemmer, Fire Chief Nancy Gohman, Deputy City Manager/HR Director Meeting Date: July 14, 2008 Agenda Item #: 5 Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance Presentation Other: EDA Meeting Action Item Resolution Other: Study Session Discussion Item Written Report Other: TITLE: Communications (verbal) RECOMMENDED ACTION: Not Applicable. POLICY CONSIDERATION: Not Applicable. BACKGROUND: At every Study Session, verbal communications will take place between staff and Council for the purpose of information sharing. FINANCIAL OR BUDGET CONSIDERATION: Not Applicable. VISION CONSIDERATION: Not Applicable. Attachments: None Prepared and Approved by: Tom Harmening, City Manager