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HomeMy WebLinkAbout2014/11/03 - ADMIN - Minutes - City Council - Study Session Iff St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA NOVEMBER 3, 2014 The meeting convened at 6:00 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin (amved at 6 07 p m.), Gregg Lindberg, Anne Mavity(amved at 6:03 p.m.), Susan Sanger, and Jake Spano. Councilmembers absent: None Staff present: City Manager (Mr. Harmening), Director of Community Development (Mr. ' Locke), Director of Engineering (Ms. Heiser), Economic Development Coordinator (Mr. Hunt), Senior Engineering Project Manager (Mr Sullivan), Senior Planner (Mr. Walther), Associate Planner (Mr. Kelley), Housing Supervisor (Ms. Schnitker), Communications & Marketing Coordinator(Mr. Zwillmg), and Recording Secretary(Ms. Hughes). 1. PLACE Property Acquisition Update and Potential EDA Involvement Mr. Locke presented the staff report and provided historical background information regarding the McGarvey property and the PLACE concept. He presented a map of the site depicting ownership of the various parcels and discussed options for acquiring the McGarvey property through outright purchase or Contract for Deed. He also discussed the need for the Xenwood underpass and road extension Councilmember Sanger asked about the potential sale pnce of the parcels Mr Locke advised that the parcels would be sold to a developer at market rate. Councilmember Mavity expressed support for acquiring the property and noted that the appraised value of the contiguous site is higher than each individual parcel. She felt that acquiring the property would be a good investment for the City from a market and cost perspective and would allow the City to control the site and then sell it and get its money back. She stated that by controlling this property, the City has the ability to steer the vision for the entire site, with the light rail platform integrated into the development and the light rail station integrated into a building. She also felt this could provide an opportunity for the City to leverage money from Met Council related to the Xenwood underpass Councilmember Lindberg asked if the City would still retain a significant amount of control over what happens on this site through the controls currently in place in the zoning ordinance, regardless of who owns the parcel. Mr. Locke stated that the City has a number of controls in place and the property is neither guided nor zoned for the kind of development being considered by PLACE or any other market rate developer. He stated the only use that would be permitted on the site today without Council approval would be the types of uses allowable under the current zoning, which is industrial. Councilmember Brausen agreed with Councilmember Mavity and expressed support for the City's purchase of the McGarvey site. Councilmember Sanger acknowledged there might be some advantage to the City buying the parcel, however, she had reservations about the City's ability to partner with the County on any Special Study Session Minutes -2- November 3, 2014 type of development. She stated she was disappointed in the current PLACE proposal because the developer has no skin in the game and wants a significant density bonus and/or TIF money, and the digester portion of the project has been scaled back and is speculative at this point As a result, she was not in support of the PLACE project as currently proposed. She stated she would prefer to see a project that had a higher percentage of market rate units, which might help improve the financial underpinning of the project. She added she might consider acquiring the land if she had some idea what might be included on the site that would represent a good use for consolidation of the property and she was interested in staff's ideas. Councilmember Spano was supportive of the City purchasing and consolidating the site, adding that would compound the overall value of the site. Councilmember Lindberg stated that the Contract for Deed option was attractive to him, but he continued to be concerned about the City's overall obligations related to Southwest LRT. He stated it felt like the City was having piecemeal conversations about the different elements related to Southwest LRT and was concerned about the impact to taxpayers of all these projects He felt the City needed to have a broader plan in place for making decisions collectively related to Southwest LRT projects before he could agree to spend the money on this project. Councilmember Hallfin asked about the City's return on investment if it were to purchase the parcel. Mr. Locke stated that staff is confident the City would get its money back if it were to purchase the property. Councilmember Hallfin stated he was amenable to the City purchasing this property. Mayor Jacobs expressed support for purchasing the parcel. Councilmember Lindberg asked how the City would pay for the parcel. Mr. Hunt stated that the funds would come from the Development Fund. Councilmember Brausen spoke in favor of the PLACE concept and 60% affordable housing and encouraged PLACE to include a high affordability component in this project. It was the consensus of a majority of the City Council to support the proposed PLACE project and to secure the 5725 Highway 7 property(former McGarvey Coffee property). 2. Oppidan/Bally's Affordable Housing Proposal Mr. Locke presented the staff report. He explained that Oppidan has refined the design of its project and included 20 affordable units at 60% AMI, however, the zoning ordinance does not currently allow for approval of the revised concept plan based on the density. He stated the best option appears to be to require any new or amended PUD to be approved by ordinance rather than resolution, which gives Council more discretion and flexibility in approving a PUD. Councilmember Sanger spoke in favor of pursuing Option #1. She was concerned about the City granting a density bonus as well as providing TIF financing on the project and did not agree that Special Study Session Minutes -3- November 3, 2014 developers should receive both and felt this needed to be clarified in the affordable housing procedures. Mr. Locke indicated that Council makes decisions regarding density bonuses and TIF financing and whether it wants to do both or one or the other on any given project, and changing the ordinance does not require the City do both. Councilmember Brausen thanked the developer for providing affordable housing and spoke in favor of Option #1. He thanked the Hockey Association for their willingness to make a substantial donation and inquired if they would be willing to increase that donation to 50 percent of project cost. He asked if there was a mechanism in place to make sure the units stay affordable. Mr. Locke stated the units remain affordable dunng the life of the TIF distract. Councilmember Mavity spoke in favor of Option #1 and thanked the developer for providing 20 affordable housing units. Councilmember Hallfin spoke in favor of Option #1. Mayor Jacobs and Councilmembers Lindberg and Spano spoke in favor of Option #1. It was the consensus of the City Council to support changes to the zoning ordinance to allow higher density residential development under certain conditions. It was also the consensus of the City Council to support staff's recommendation to pursue Option #1 as outlined in the staff report. Mayor Jacobs adjourned the meeting at 7 05 p.m. A �. ' / Nancy Stroth, City Clerk Jeff Jac/s, .,or