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HomeMy WebLinkAbout2010/07/12 - ADMIN - Minutes - City Council - Study Session 41/ St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA JULY 12, 2010 The meeting convened at 6:36 p.m. Councilmembers present: Mayor Jeff Jacobs, Phil Finkelstein, Anne Mavity, Paul Omodt, Julia Ross, Susan Sanger, and Sue Santa. Councilmembers absent: None. Staff present: City Manager (Mr. Harmening), Director of Parks & Recreation (Ms Walsh), Police Lieutenant (Ms. Dreier), Community Development Director (Mr. Locke), Housing Supervisor (Ms Schnitker), Housing Program Coordinator (Ms. Larsen), Communications Coordinator (Mr. Zwilling), and Recording Secretary (Ms. Hughes). Guests: George Hagemann, Parks and Recreation Advisory Commission Chair; Sharon Lyon and Stuart Morgan, Human Rights Commission Members; Stacie Kvilvang, Ehlers and Associates 1. Future Study Session Agenda Planning—July 19 and July 26, 2010 Mr. Harmening stated that agenda item 6 (Affordable Housing in St. Louis Park) would be considered by the City Council before agenda item 5 (Project for Pride in Living's Louisiana Court Development). He then presented the proposed study session agenda for July 19 and July 26 He noted that Gary Carlson from the League of Minnesota Cities has been asked to speak to the Council regarding the State's current budget deficit. Councilmember Finkelstein stated it was announced today that the State anticipates a possible delay in payments to health care facilities or school districts. He asked that Mr. Carlson also provide comment on how that may impact the City. Councilmember Sanger stated that she recently spoke with a Planning Commissioner who is interested in meeting with the Council to discuss definitional terms, e.g., what does the Council mean by having mixed use on the first floor of a larger building and what does the Council mean by "good transit access". Councilmember Finkelstein suggested that staff provide Council with information regarding the recent Supreme Court decision about the changing standard as to when a city council and planning commission can grant variances. He also suggested that the Council have a discussion with the Planning Commission regarding transit area planning Councilmember Sanger also suggested a discussion with the Planning Commission regarding the Community Works project currently being considered by the County with respect to Highway 7 between Wooddale and Louisiana. Study Session Minutes -2- July 12, 2010 It was the consensus of the City Council to direct staff to schedule a meeting with the Planning Commission in the near future. 2. Parks and Recreation Advisory Commission Annual Report and 2010 Work Plan Ms. Walsh presented the staff report and introduced George Hagemann, chair of the Parks and Recreation Commission. Mr. Hagemann presented the Parks and Recreation Advisory Commission's 2009 Year End Report along with the 2010 Work Plan. He discussed some of the highlights contained in the 2009 Year End Report, including the Off-Leash Dog Park negotiations undertaken with several residents. He explained that following a series of meetings involving interested residents and the Parks and Recreation Advisory Commission, a plan emerged to create a task force that presented recommendations for improving the off-leash dog parks, including the formation of a Dog Park Association, to address concerns raised by residents. He added that this was a positive experience for all parties and will be used as a model for other issues that may arise in the future. Mr. Hagemann also discussed the Commission's work with Lieutenant Harcey and members of the Police Advisory Commission on educating the public regarding trail crossings and overall bicycling in the City. He stated that resources were identified to develop a training program for police officers which can be used in conjunction with peace officer licensing that serves to educate police officers on dealing with citizens and that also gives them credit to handle their licensing. He stated that the Parks and Recreation Advisory Commission was also involved in some recycling efforts and identified a nonprofit group that was interested in the matting underneath the hockey rinks that was being replaced; this reduced the City's cost of disposal by donating the matting to this group. He indicated the Parks and Recreation Advisory Commission is also looking at opportunities for reducing the amount of plastic used in the City's parks. Councilmember Sanger requested that the Parks and Recreation Advisory Commission give consideration to hosting another bike tour that could be combined with a public art tour She also asked that consideration be given to developing a program for donating used playground equipment. She stated that a fair amount of the Parks and Recreation Advisory Commission's work is centered on youth sports associations, and indicated she would like to see more emphasis on programs and activities for all ages given the City's aging population. Councilmember Mavity suggested that the Parks and Recreation Commission give consideration to how it can assist the City in its continuing efforts with respect to walking/biking initiatives. She also asked that the Commission discuss environmental stewardship and how that fits into what the Commission is doing, including native plantings and community gardens Councilmember Ross suggested that the Parks and Recreation Advisory Commission look at bike safety rules as they apply to the City and adjoining communities as it appears both cyclists and motorists are confused as to who has the right-of-way. Study Session Minutes -3- July 12, 2010 The City Council expressed its appreciation to the Parks and Recreation Advisory Commission 3. Human Rights Commission Annual Report and Work Plan Ms. Dreier presented the staff report and stated Marney Olson, Community Liaison, could not attend this evening and introduced Sharon Lyon, Chair of the Human Rights Commission, and Stuart Morgan, Vice Chair Mr. Morgan discussed the Human Right's Commission's involvement in community events, including the Children First Ice Cream Social, National Night Out at Meadowbrook, and the Community Open House at the Rec Center. He indicated that the Commission's participation at these events is intended to increase resident's awareness of the Human Rights Commission Ms. Lyon stated that the Human Rights Commission's most significant project in 2009 was the Diversity Lens report, and she presented the Council with a brochure containing an overview of this project She also presented the Council with a pamphlet entitled "What Does Diversity Look Like in St. Louis Park?" and stated the Human Rights Commission is interested in having the pamphlet used throughout the City, e.g., at community events, on the City's website, and in program planning. Councilmember Ross stated she would like to see the Commission do more around education from a proactive stance versus having people come to the Commission. She stated that affordable housing is one area that the Human Rights Commission could discuss. Councilmember Sanger asked if the Commission has any plan to continue its film series and plays. Mr. Morgan replied that the Human Rights Commission concluded that it would be best to piggyback the Commission's goals onto another event or joint venture in order to better leverage the Commission's time and resources. He added that the Commission is currently working with "Bookmark in the Park" and will be holding an event this year featuring a Vietnamese American author. Councilmember Santa encouraged the Human Rights Commission to consider an event similar to the Mixed Blood Theater play recently held at the high school. She stated the play was a perfect example of role modeling and educating the public regarding diversity. Councilmember Mavity stated she would like to see the Human Rights Commission have a discussion regarding the ongoing discrimination against gay and lesbian families as it relates to family status and the inability of a gay or lesbian family member to visit their partner in the hospital 4. Turf Mr. Harmening and Ms Walsh presented the staff report and indicated they were requesting policy direction on whether staff should undertake further efforts to partner with the School District and others on funding for the construction of artificial turf field at the High School. Study Session Minutes -4- July 12, 2010 Councilmember Omodt stated he would like to see a more detailed cost analysis of the project and what it would mean if the City bonded for a project such as this one. Councilmember Ross agreed with Councilmember Omodt. Councilmember Sanger stated that she is not in favor of this project and added that the School District has indicated it will be unable to put any money into this. She indicated she would prefer to see the City direct its time and effort into studying what the overall needs for recreational facilities are in the entire community for all populations. Councilmember Mavity stated she was not sure this is the right time to do this type of project, but felt that if further study is going to be undertaken, a dome needs to be part of that study. She added it is important to remain sensitive to other priorities in the City. Councilmember Finkelstein stated he was unsure about whether to proceed with further efforts because the City has not received any indication from the School District about its interest in pursuing the project. He also stated he felt any additional work needs to be part of an overall study of the recreational needs in the City. He questioned whether any money would be available from other sources, including the County as part of the stadium sales tax Mr. Harmening stated that if there is sufficient interest on the part of the Council to creatively explore a way to do turf in partnership with the School District, there are a number of ways to finance the project, including the sale of Eliot School. He advised that if the Council is interested in conducting a study of the overall recreational needs in the community, staff can prepare that analysis, but the turf issue and an overall recreational needs study are separate and distinct from one another. Councilmember Santa felt it would be important to understand the broader community recreational needs first before pursuing a turf project further. Mayor Jacobs and Councilmembers Ross, Mavity and Omodt were in agreement to spend more staff time on partnering with the School District and other potential funders for the construction of an artificial turf field, with the understanding that the City is not committing to anything at this time Councilmember Sanger reiterated her request to concurrently begin a study of whether the broader recreational needs of the community are being met and added that the City currently lacks any data regarding an actual need for a turf field. Following further discussion, it was the majority decision of the City Council to direct staff to meet with the School District to envision and scope out a possible artificial turf project at the existing high school football field, including funding options and projected costs of such a project. Study Session Minutes -5- July 12, 2010 6. Affordable Housing in St. Louis Park Mr. Locke, Michele Schnitker and Kathy Larsen presented the staff report and accompanying data in response to the City Council's request in April of this year Councilmember Sanger stated that the data appears to show that the City's available one- and two- bedroom units for unsubsidized housing was notably below the Met Council's guideline for affordability; however, the three-bedroom rental price was less affordable compared to the Met Council guideline. She indicated that she continues to be troubled by the number of vacant houses that are in foreclosure, and questioned whether the City could implement a program to acquire these homes in foreclosure and rent them to families that need larger, more affordable housing. She stated that she is interested in an approach that decentralizes affordable housing and that includes well maintained, scattered affordable housing throughout the City. Councilmember Finkelstein expressed his appreciation to staff for their thoughtful, detailed analysis contained in the staff report. He stated he has a strong interest in stable, affordable housing that is owner occupied. Councilmember Mavity stated she would like to see the City become more proactive in requiring affordable housing in new developments and to support the creation of affordable housing as new developments occur in the City. She noted that approximately 3,000 applications were received for the City's Sec 8 housing when the list was opened for applications a couple of years ago and only twelve Sec. 8 vouchers are typically available each year; those families receiving assistance are typically stable and there is very little turnover in the Sec. 8 housing, thus creating stability in the community. Councilmember Santa concurred with Councilmember Sanger's suggestion of finding a way to rent the City's single family homes currently in foreclosure. Councilmember Ross also concurred with Councilmember Sanger's suggestion and requested that the City explore a pilot program of this type. Councilmember Omodt expressed his thanks to staff for their efforts on this issue. He stated that the City has always been very close to the Met Council's guidelines and the City is way ahead of other cities relative to affordable housing. He expressed concern regarding concentration of poverty in schools and putting children in a segregated society. Councilmember Finkelstein stated he felt the City could do a number of things that would benefit the overall community, including rental of foreclosed homes with a rent to own option He suggested that the City come to an agreement about what the percentage of affordable housing should be in the City, as well as to consider what types of projects could be undertaken that would benefit those in need of affordable housing. He requested that the City consider affordable housing ownership as part of new developments coming in to the City. Study Session Minutes -6- July 12, 2010 Lengthy discussion ensued regarding decentralizing affordable housing in the City. Mr. Locke summarized the direction from the City Council and said what the staff heard from the City Council's discussion was interest in expanding affordable housing programs. Specific direction heard included that a metric to measure the City's progress toward achieving affordable housing goals was needed; opportunities to incorporate affordable housing into new housing developments as was done at Excelsior and Grand should be explored; our goal should be mixed-income neighborhoods and mixed-income buildings with affordable housing dispersed in the community and not concentrated in only a few areas; that affordable housing should be no different in appearance than other homes and equal in quality; that the City needs to continue its programs that focus on maintenance and management of housing including housing improvement areas (HIA), property maintenance certificate program and rental licensing programs. The City should consider looking at the opportunity created by foreclosed properties in the community and whether foreclosed homes could be used to accommodate or meet some affordability goals either through ownership or a rent to own program; and, that the City should explore the possibility of acquiring problem properties. City Council stated that this was an accurate summation of the City Council's direction to staff regarding affordable housing. Mr. Locke requested that staff be allowed to prepare a follow-up report for review and discussion by the City Council in August, when the updated Met Council goals for the metro area will be available. The City Council agreed. 5. Project for Pride in Living's (PPL) Louisiana Court (LC) Development Mr. Harmening presented the staff report. Mr. Locke stated that the staff report includes information regarding the City's TIF housing numbers, and outlines the proposed pilot shallow rent subsidy program. Ms. Schnitker stated that Enterprise, LC's Limited Partner, has requested a 25-30 year term instead of a 20 year term on the refinancing; this will make a significant difference in their annual debt payment. She added that Ehlers has pointed out that the debt would likely be refinanced at the end of ten years or the property may be sold at that time. Mr. Locke stated that the 30 year term is attractive to Enterprise because it will provide more cash flow for the project, potentially providing more dollars that could be put into improvements. He added that increasing the term of the bond issue represents no real cost to the City. Councilmember Omodt asked if the City has any guarantee that PPL will spend the money to make improvements to the project. Ms. Kvilvang replied that performance measures will be built into the refinancing documents. Councilmember Sanger requested that a condition also be placed in the refinancing documents requiring PPL to produce a written plan as to how they are going to address the high vacancy rates at LC. Study Session Minutes -7- July 12, 2010 It was the consensus of the City Council to refinance the bonds issued for the LC project and to extend the term of the bond issuance to 25 or 30 years as requested by Enterprise The City Council discussed contributing excess debt service reserve funds to buy down the debt on the property. Ms. Schnitker stated there is currently $325,000 in debt service reserve, equal to one year of bond payments. She explained that following refinancing, the annual debt service payment will be $140,000, freeing up approximately $185,000 for an equity contribution to the project It was the consensus of the City Council to contribute up to $185,000 in excess debt service reserve funds to buy down the debt on the project. Councilmember Omodt stated that he was in favor of any or all of the proposals outlined in the staff report related to rent subsidy, funding project rehab needs, and utilizing Park Center TIF District Funds. Mayor Jacobs concurred. The City Council discussed the improvements needed on the property and how those improvements can be funded. Mr. Harmening asked if the City Council was willing to use TIF money to stabilize this project by utilizing a rent subsidy program, by providing funding to assist with improvements to the property, and by making an equity contribution to write down the principal on the property. Mayor Jacobs replied in the affirmative. Councilmember Mavity replied in the affirmative Councilmember Ross replied in the affirmative. Councilmember Omodt replied in the affirmative. Councilmember Santa replied in the affirmative. Councilmember Sanger stated she wanted to see better management of the property and to review a plan for maintaining the property She added she does not want to put any more money into the project beyond the refinancing, and felt the equity should pay down the principal because that serves to protect the City. She indicated that she was not in favor of a shallow rent subsidy program and would rather use the money for needed capital improvements to the property. Councilmember Mavity acknowledged the concerns raised regarding a shallow rent subsidy program but was willing to test a pilot rent subsidy to see if it is successful. Councilmember Santa stated that she strongly believes the City needs to assist with addressing the rehab needs on the property sooner rather than later, and to monitor the ongoing maintenance of the property. Study Session Minutes -8- July 12, 2010 Councilmember Ross concurred with Councilmember Santa Mr. Locke explained that the shallow rent subsidy pilot program represents money for a specific project and has the potential to be a mini version of what Sec. 8 vouchers are today. He added that staff is interested in testing the shallow rent subsidy program as a different way of thinking about how the City increases its available affordable housing and at the same time, helping people who are not currently getting the help they need. Mr. Harmening stated that an additional equity contribution of $350,000 would have the same effect on debt service as extending the term of the debt from 20 to 30 years; and, providing an additional $120,000 in assistance would enable rehabbing ten units in the project to make them more marketable, for a total of$470,000 in City assistance. He noted that these funds would come from the Park Center TIF District. He asked if Council was willing to authorize up to $500,000 to be used toward further debt reduction on the property and/or rehab of the units, and to authorize staff to work with the developer to determine what that mix should be. Mayor Jacobs replied in the affirmative. Councilmember Maviry replied in the affirmative. Councilmember Ross replied in the affirmative. Councilmember Omodt replied in the affirmative. Councilmember Santa replied in the affirmative. Councilmember Maviry asked the Council to indicate whether they were in favor of the pilot shallow rent subsidy program. Mayor Jacobs: yes Councilmember Maviry: yes Councilmember Omodt: yes Councilmember Ross: yes Councilmember Santa. yes Councilmember Sanger: no Mr. Locke stated that staff will present the City Council with further details regarding the pilot shallow rent subsidy program in the near future. 7. Communications (Verbal) Councilmember Sanger requested that the City Council hold a meeting with the City Attorney regarding the Change Order to Contract 119-09. Councilmember Omodt expressed concerns regarding this project and the ongoing difficulties with the contractor. Mr. Harmening agreed to schedule a meeting with the City Council and the City Attorney to discuss this matter as soon as possible. Study Session Minutes -9- July 12, 2010 Councilmember Sanger requested that the meeting be a closed session if possible The meeting adjourned at 10:05 p.m. Written Reports provided and documented for recording purposes only: 8. Change Order to Contract 119-09 — Street/Project — Highway 7 — Wooddale Avenue f./.., Intersection Improvement Project — Project1No. 20 4-1 0 Nancy Stroth, ity Clerk Jeff J obs, Mayor