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HomeMy WebLinkAbout2015/02/02 - ADMIN - Minutes - City Council - Study Session IIf St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA FEBRUARY 2, 2015 The meeting convened at 6:00 p.m. Councilmembers present: Mayor Jeff Jacobs, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, and Jake Spano. Councilmembers absent: Susan Sanger. Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), Director of Engineenng (Ms. Heiser), Senior Engineering Project Manager (Mr. Sullivan), Planning/Zoning Supervisor (Ms. McMonigal), Economic Development Coordinator (Mr. Hunt), Associate Planner (Mr. Kelley), Housing Supervisor (Ms. Schnitker), and Recording Secretary (Ms. Hughes). Guests: Mr. Bob Cunningham (Melrose Development) and Mr. Dennis Sutliff(ESG Architects). 1. SWLRT Master and Subordinate Funding Agreements Mr. Harmening presented the staff report and explained that there are up to five subordinate funding agreements between the City and Metropolitan Council. He advised that Met Council has informed the City that if it approves the subordinate funding agreement for any of the LRCIs, the City must pay the entire cost of the design and environmental review even if the City chose to terminate the design process at any point. Councilmember Mavity stated she was now inclined to take the Beltline LRCI off the list at this time based on the issues detailed in the staff report and based on further review of the development patterns in this area. She added she felt the Xenwood underpass should remain a top pnonty. Councilmember Lindberg stated he did not believe the cost of the Beltline underpass was worth the benefit based on the data provided by staff and agreed that the City should not approve funding for the Beltline LRCI. He stated he would support the Xenwood LRCI, particularly because the City is investing a lot of money in this area and it makes sense to move forward with designing the Xenwood underpass. Councilmember Spano stated that while the Southwest LRT project represents the best chance for the City to complete the Beltline grade separation, the reality is that the grade separation does not fix the issues in the immediate area and it makes more sense to do a grade separation at Beltline and CSAH 25. He added that the cost implications of grade separation at Beltline are so large and he had little confidence this LRCI would get funded, therefore, he could not support ,the Beltline LRCI. Councilmember Hallfin expressed frustration with the process but understood the rationale provided by staff for not funding the design of the Beltline underpass and was okay with pulling out the Beltline LRCI. Councilmember Brausen stated his opposition to the Beltline underpass and stated he was okay with doing the Xenwood underpass Special Study Session Minutes -2- February 2, 2015 Mayor Jacobs agreed that the City should not commit to funding the Beltline underpass and stated he was okay with the Xenwood underpass. It was the consensus of the City Council to commit at this time to fully fund the entire design and environmental costs for the following four LRCIs in St. Louis Park: Xenwood Avenue underpass, Lynn Avenue extension, Beltline Boulevard/CSAH 25 intersection improvements, and Louisiana Station trail. It was also the consensus of the City Council that the City would not commit to funding the entire design and environmental costs for the Beltline Boulevard LRCI. 2. 13th Lane and Texas Avenue Redevelopment Proposals Mr. Kelley presented the staff report and introduced Mr. Bob Cunningham from Melrose Development and Mr. Dennis Sutliff from ESG Architects. He provided background information regarding the excess land study that identified the 13th Lane parcel and the Texas Avenue parcel as excess land parcels. He explained that the properties would need to be reguided in the Comprehensive Plan and the properties rezoned to a planned unit development. He noted that the new PUD ordinance contains a minimum two-acre size for PUDs but allows PUDs on smaller sites if a higher quality development design can be achieved. He stated that the City has received a number of inquiries for commercial development of the parcels and in the past week received another inquiry from a developer interested in multi-family housing. Mr. Cunningham stated they have been interested in this site for a long time and have developed a concept consisting of 39 units on the 13th Lane parcel and 26 units on the Texas Avenue parcel for a total of 65 units. He stated they have designed a 95% efficient building that would be built without any governmental assistance that includes 20 affordable units at 60% AMI and another 20 affordable units at 80% AMI, with a unit mix of 60% two-bedroom units and 40% one- bedroom units. He stated the unit rentals are approximately $1.65 per foot versus a median rental of$2.15-$2.35 per foot and all units will have market rate finishes. He presented several preliminary concept drawings and explained that there are no elevators in the buildings, which helps reduce construction costs, with entrances to the second level units at the sides of each building He advised they would like to enter into a predevelopment agreement with the City in order to move forward with further details. Mr. Sutliff described the preliminary floor plans and stated there are six units on the ground floor and seven units on the floors above and those units would enter above by a common stair with a comdor at the top of the stairs. He stated each building has four front stoops on the 13th Lane side similar to a private home intended to respect the residential properties to the south. He presented an elevation drawing and stated the intent is to get enough variety and character on the front of the buildings and to add residential features to the building that fit in with the residential neighborhood. He advised there would be three buildings on the 13th Lane site and two buildings on the Texas Avenue site. Councilmember Brausen stated he liked the affordability and sustainability components of the project and was excited about the project. He noted there would be some open space requirements with the PUD requiring a variance but he was okay with the PUD concept, adding this appears to be an ideal use for the properties and he would support it. Councilmember Mavity spoke in favor of the project and was happy to see the affordability component of the project. She requested further information about the new PUD ordinance and DORA requirements. Special Study Session Minutes -3- February 2, 2015 Mr. Kelley stated the primary reason for the PUD is due to the proximity of the buildings to each other, adding there is still some work to be done related to DORA and how to meet those requirements. Councilmember Lindberg felt this was an interesting project but was concerned about the proximity to single family homes. He stated he recognized the merits of the project but was concerned about setting a precedent and asked whether at some point this Council or a future Council would be obligated to approve a project with similar setback issues or other issues, e.g., lack of outdoor space, because of Council's approval of this PUD project. Ms. McMonigal explained that the new PUD ordinance allows Council to make these decisions on a case-by-case basis and represents a discretionary action of the City Council. Mr. Harmening requested information about the length of time the developer would commit to providing affordable housing Mr Cunningham stated they would not want to make a commitment at this time and would like the opportunity to work with the City on eligibility requirements, adding they are not getting any government assistance and feel it would be best if they operated this aspect themselves and would be happy to work with the City on this to make it happen. Councilmember Spano spoke in favor of working with Melrose Development on the project. It was the consensus of the City Council to direct staff to proceed with a Comprehensive Plan amendment and a rezoning to a planned unit development to allow the proposed development to occur. It was also the consensus of the City Council to enter into an agreement to continue working solely with Melrose Development. Mayor Jacobs adjourned the meeting at 6:50 p.m. C /A: Nancy Strot , City Clerk Jeff Ja bso'Mor