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HomeMy WebLinkAbout2015/09/28 - ADMIN - Minutes - City Council - Study Session JIf St Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA SEPTEMBER 28, 2015 Mayor Pro Tern Lindberg called the meeting to order at 6:31 p m. Councilmembers present: Mayor Pro Tern Gregg Lindberg, Tim Brausen, Anne Mavity, Susan Sanger, and Jake Spano (amved at 6:38 p m.). Councilmembers absent: Mayor Jeff Jacobs and Councilmember Steve Hallfin. Staff present: City Manager (Mr. Harmening), Senior Planner (Mr. Walther), Housing Supervisor (Ms. Schnitker), Planning/Zoning Supervisor (Ms. McMonigal), Human Resources Director (Ms. Deno), City Clerk (Ms. Kennedy), Administrative Services Intern (Ms. Murphy) and Recording Secretary(Ms. Wirth). Guest: Cathy Bennett, Urban Land Institute-Minnesota, and Kern Pearce Ruch, Hennepin County Southwest Community Works. 1. Future Study Session Agenda Planning—October 5 and October 12, 2015 Mr. Harmening presented the proposed special study session agenda for October 5th and the proposed study session agenda for October 12`h. He noted the Polystyrene Food and Beverage Containers listening session will take place on October 12 at 5:30 p.m. 2. SWLRT Housing Gaps Analysis Findings & Draft Southwest LRT Corridor-wide Housing Strategy Ms. Schnitker presented the staff report. Kern Pearce Ruch, Hennepin County Southwest Community Works, stated their vision is to collaborate and partner so that the Southwest comdor becomes a premier destination that is accessible, livable, and vibrant She reviewed the housing goal to position Southwest LRT communities as a place for all to live and a graph depicting opportunities to create connected communities. The strategy was to conduct a housing inventory, complete a Gaps Analysis, and draft a strategy. Cathy Bennett, Urban Land Institute MN, stated the value of a comdor-wide collaboration is to help cities create and sustain healthy communities and provide lifecycle housing for residents. Councilmember Spano arrived at 6.38 p.m. Ms. Bennett presented the SWLRT Housing Gaps Analysis, summary of key findings on a comdor level, and expected growth in households without children. Ms Bennett then presented employment/job statistics, estimated earnings, and affordable housing costs within one-half mile of the comdor. She noted the majonty of the Gaps Analysis focused on the residential development outlook including the market demand for new housing, market feasibility, and existing gaps between current units and the number of households who will want to live along the comdor. There is need for a mix of rental housing by affordable range and home ownership products. Ms. Bennett stated existing affordable housing is an asset in the comdor and presented the comdor's strengths and development challenges by station area Study Session Minutes -2- September 28, 2015 Councilmember Mavity asked what information was used to determine housing numbers and if they considered a walkshed. Councilmember Sanger also asked how they arrived at numbers for each station area, percentage for rental or other types of housing, and if it considered tear down of existing housing stock. Ms. Bennett stated they took into consideration all the factors including the walkshed and talked with developers about their market analysis, which assumed some of the land uses would change. The time frame for the Gaps Analysis findings was 2030. Councilmember Sanger stated she understood the desire of developers to want everything redeveloped, but that did not take current land uses into account. She requested more information on the numbers used and how the allocation was done from station to station. Councilmember Mavity noted this was not a mandate and it was to be used as a planning tool Ms. Bennett stated they made a conscious effort to have a comdor-wide strategy, based upon market feasibility, but it is up to the community to consider the numbers from the Gaps Analysis. They also looked at redevelopment and preservation possibilities through market demand and reduced those numbers based on constraints around land and development. Ms. Bennett stated the corridor-wide housing strategy objectives defined what a full range of housing choices looked like based on the Gaps Analysis through construction of 11,200 new units within one-half mile of the corridor. Out of the 11,200 new units, 3,520 would be affordable to lower- and moderate-income households; and, 3,800 unsubsidized rental units would be preserved by 2030. She reviewed the median income, median salary for a family of four, and affordable monthly housing payment. Ms. Bennett then presented 11 implementation strategies to move the identified housing goals forward. Councilmember Mavity stated an example of maintaining affordability would be the 18 Section 8 housing units at Excelsior and Grand. Ms. Schnitker stated that the contract for those units would expire in 2023. Councilmember Sanger commented on the importance of having resources to extend the affordability of those units. Ms. Bennett explained a lot of naturally occurring affordable housing occurs because it is old and may not have the amenities expected in new housing But, they need to assure it is well maintained. One option is to create a TOD Housing Fund to bring new financial resources to the table from private and philanthropic investments Ms. Bennett explained one criticism of the Gaps Analysis is that the amount of affordable housing called for was not high enough to meet the demand in the comdor. Marquette, who conducted the Gaps Analysis, considered what would be feasible with existing resources so there is a need to find and infuse new financial contributions. Ms. Bennett presented action steps for the implementation strategies, noting the Steering Committee would be asked to adopt the draft strategy and send it to the cities for action. She described their stakeholder outreach, reviewed the expected timetable, and requested feedback. Councilmember Mavity complimented Ms. McMonigal on the presentation she made to the Community Works Steering Committee relating to housing issues, noting well over 2,000 units had been produced in ten years, far exceeding what was anticipated to be possible. She stated the City was able to accomplish this by being very aggressive with implementing policies and taking risk to compile land to dnve development. Study Session Minutes -3- September 28, 2015 Councilmember Mavity stated she had heard about the preservation of naturally occumng affordable housing that was not deteriorating but did not understand what those tools were for homeownership. Ms. Bennett explained the preservation relates to ownership-oriented housing to help improve and keep complexes affordable. Councilmember Mavity suggested giving bonuses if the affordable housing is located within transit comdors or areas feeling more development pressure. Ms. Schnitker stated those programs can be targeted to geographic areas or specific units. Councilmember Mavity stated knowing that the homes closest to the comdor will have the most development pressure and escalating pnces, those may be ones to consider for incentive Ms Schnitker stated the Land Trust was a model that had created 12 affordable homes in St. Louis Park. In that program, the City provided more assistance if a foreclosed lender owned property as there may be more rehab needs. She stated if the Council desires, it could create targeted programs. She noted the Land Trust program had a limited equity shanng upon sale, but other programs did not have such restrictions. Councilmember Sanger stated she is a proponent of stabilizing and preserving existing housing She asked about incentives for rental properties and new tools the City can create to incent landlords to maintain the quality of the buildings, noting that older housing was better built and generally had more character than what is being constructed now Councilmember Sanger stated she had trouble visualizing this much housing around station areas unless a fair amount was also torn down. She added she did not want to tear down commercial property or downzone it for housing because it would minimize the City's tax base and job creation. Councilmember Sanger asked about plans for preserving green space around housing Ms Bennett stated the Gaps Analysis included a map for each station that depicted the optimal areas for housing and green spaces. These are suggestions with the understanding the City has its master plan, zoning, and regulatory codes. Councilmember Mavity stated most of the housing envisioned around a station area would be mixed use that included commercial and residential. Also, the City is trying to figure out how to better incent small businesses through zoning tools or other means, so if older commercial is torn down the City can attract small businesses. Councilmember Sanger stated she liked that theory, but opined that jobs provided by small businesses were often lower paying, which creates a self-fulfilling prophecy for needing more affordable housing. Ms. McMonigal stated the parcels being targeted were vacant or underutilized, and noted staff is not looking at downzoning or devaluing properties Councilmember Spano stated he wants to make sure Meadowbrook Manor is preserved and agreed those buildings were heartily constructed but do need some intenor work. He asked for more information on TOD funding programs, creating a TOD Housing Fund, and examples where that had been done in other cities. Councilmember Mavity stated there was a bit of skepticism at the Community Works Steenng Committee meeting, but Marquette presented it more as leveraging an equity business pool. Ms Bennett stated there has been a lot of discussion about creating funding mechanisms for mixed housing, which is aspirational in this strategy. Study Session Minutes -4- September 28, 2015 Councilmember Brausen stated creating affordable housing units was a fine and worthy goal, but he felt it would be a big challenge. He noted the City will need to work on strategies to create these housing units. He agreed with the importance of preserving Meadowbrook Manor in the Louisiana station area, as well as others to assure they remain market rate affordable housing units He noted one option is to have additional mechanisms, like legislative authority, for area wide TIF. With regard to fiscal disparities sharing, Councilmember Brausen noted St Louis Park is a net contnbutor and asked about the City receiving a credit on its contnbution and committing those funds to the preservation or creation of affordable housing. Ms. Bennett stated those options have been considered as a possible tool if there is the political will to do so. Mr. Harmening noted all of the suburban communities along the Southwest LRT are net contributors to fiscal disparities. Councilmember Sanger noted a housing choice not mentioned is move-up housing, which is in demand for family-sized housing. She expressed concern, from a transportation point of view, if the City is focusing on affordable housing transit as it undermines the need to get the entire community to use transit. She supported higher-income family housing within transit centers to address what happens when the millennials have children and no longer want to live in a one- bedroom apartment. Councilmember Mavity stated move-up housing is a City policy that is being looked at in single- family neighborhoods where the usage of land is more appropriate, but that would not be appropriate along the LRT where the City wants to build density. Councilmember Sanger suggested there could be a mix of high density and larger single-family houses along the transit corridor. Her goal is to make transit appealing to all and not stigmatize it to be only for low income individuals. Councilmember Mavity agreed the City does not want the corridor to be all affordable housing, but 15% was the aspirational goal. She noted luxury units were currently being built, so unless there are more tools and more money, additional affordable housing would not be created. Ms. Bennett explained the City will need to provide connecting links to transit such as existing bus service and shuttle buses. 3. Board & Commission Annual Meeting with Council Program Ms. Murphy presented the staff report. Mr. Harmening added the current system was cumbersome and the Council would prefer to devote one night to hear annual reports and future plans from all Boards and Commissions. Ms. Deno suggested scheduling this meeting the first quarter of 2016, noting it would need to be highly orchestrated to consider all of this information in one night. Following discussion, it was the consensus of the City Council to ask staff to obtain feedback on the proposed change from each boards or commission. Because the written reports would be provided to the Council for review well in advance, it was suggested that each board or commission be given ten minutes to present their information and ten minutes for discussion with the Council. The Council also suggested that an informal reception with refreshments be scheduled prior to the start of the meeting as a way to thank and recognize volunteers on each board or commission. Study Session Minutes -5- September 28, 2015 4. Board & Commission Rules and Procedures Ms. Kennedy presented the staff report and provided an overview of the proposed changes. Councilmember Mavity stated her main goal was to ensure that the appointment process is transparent and democratic. She supported making appointments once a year and to start at `zero' for everyone making application. She suggested internally reviewing applicants, ranking them, discussing them, and then deciding whom to interview. She noted this process worked effectively with the Environmental Commission. She added this would allow for the creation of a candidate pool that could be used to fill mid-term vacancies that occur. Councilmember Sanger supported interviewing applicants and making appointments once a year. For mid-term vacancies, she agreed it would be ideal to consider someone who had already been evaluated and to not advertise mid-term vacancies. She opined if someone is functioning well on a board or commission and wants to be reappointed it is a waste of time to make that individual go through the application and interview process. She added it would give others false hope or expectations if the position was advertised as open when an existing board or commission member was seeking reappointment. She stated she did not agree with establishing term limits because she valued expertise and history of service on a board or commission. She suggested setting an attendance standard, and clearly defining that standard within the Rules and Procedures. She suggested developing a procedure that could be followed whereby a disruptive member of a board or commission would not be reappointed The Council discussed who would be responsible for evaluating the effectiveness of the members of a board or commission, what format it would take, and what standards would be measured to determine whether or not the member was effective. Councilmember Brausen stated he appreciates the work of all the board and commission members, as it is a thankless job and their desire to contnbute to the management of the City is commendable He asked about the 2012 prohibitions that are in place relating to serving on two bodies simultaneously and family members within the same household serving on the same board or commission concurrently. The Council discussed the appointment of a school board member to the Planning Commission It was noted the appointment of a School Board member is stated in the bylaws of the Planning Commission and made by the School Board. Mr. Harmening stated it has worked well, there has been great participation, and it allows the School Board member to act as a conduit between the City and School Board. Councilmember Brausen spoke in favor of establishing term limits to support the training and development of the next generation of leaders and creating opportunities for others to serve, which is not possible with an entrenched membership. He agreed with the importance of institutional and historic knowledge, noting it is also brought by staff members. Councilmember Spano felt that when a member's term is up, they should be required to reapply for appointment, similar to a Councilmember seeking re-election. He noted asking an existing member to go through the application process did not mean someone who has served for a long period of time would not get reappointed. He noted staggering terms ensured there is continuity on boards and commissions. On the technical side, he supported a uniform application process, and the creation of a list serve or candidate pool comprised of people who have expressed an Study Session Minutes -6- September 28, 2015 interest in serving on a board or commission. He also supported conducting all interviews on one night and offering a consistent on-line application along with a standard supplemental application. Councilmember Sanger spoke against term limits, stating the City was not running a job-training program or leadership development program. She opined the purpose of a board or commission is to provide the best advice and recommendations to the City Council. Councilmember Mavity noted expertise is not measured by how old you are. It is about the vision of the community and whom it represents. Mayor Pro Tern Lindberg stated he had been hesitant to impose term limits and to require existing members seeking reappointment to go through the application and interview process because he wants to make sure such actions are justified. He added he would not be in favor of imposing term limits. He explained he would support a ranking process for applicants to determine who to interview, and having conversation amongst the Council regarding the performance of existing board and commission members based on established standards. He stated that would provide a set procedure whereby a councilmember could discuss an issue or concern. He stated electronic applications would be fine and he supported creating an eligibility list to use to fill mid-year vacancies. He noted making appointments at the same time annually would give the City an opportunity to organize targeted and specific marketing campaigns about the application and appointment process. With regard to supplemental applications, Mayor Pro Tern Lindberg stated he did not want to receive too much content, because it would make the process cumbersome. Councilmember Brausen agreed. Councilmember Spano reiterated that the applications for each board or commission should be consistent. Councilmember Sanger noted the supplemental application for the Environmental Commission was related to specific environmental issues. It was the majority consensus of the City Council to not consider term limits, and to make the appointment of youth commissioners a separate process that would coincide with the start of each school year. The City Council asked staff to create a standardized application and to refine the annual appointment process to schedules interviews for one night. It was also suggested that the term length for members of the Housing Authority be reduced from five years to three years to keep them consistent with the terms on other boards and commissions. 5. Off-Sale Intoxicating Liquor Licensing Ms. Deno presented the staff report, noting justifications for limiting the size of off-sale liquor establishments needed to be based on the health, safety, and welfare of the community. Councilmember Sanger expressed concern with trying to justify a size limit for only liquor stores and not all retail establishments. However, if it is the consensus of the Council to support a size limitation, she would not support a maximum less than the size of the City's existing largest liquor store. Councilmember Spano stated he supported limiting size as it related to the lifestyle in St. Louis Park. He suggested a maximum square footage of 6,000 (size of Byerley's Wine and Spints) as it still had a neighborhood feel. He added that other small liquor retailers have indicated anything beyond that size had more of a warehouse feel. He noted limiting the size would also Study Session Minutes -7- September 28, 2015 indicate support for small, locally owned businesses that invest in St. Louis Park and pay more taxes into the community Councilmember Mavity agreed it is better for the community to have small businesses that are more likely to be locally owned, create community character, and unique flavor. She supported staff's recommendation of a 5,000 sq. ft. cap, provided existing businesses larger than that are grandfathered in. _ Councilmember Sanger agreed it helps the community to have small business; however, it is a legal requirement that the City cannot restnct square footage unless it is linked to the health, safety, and welfare of the City. Mr. Harmening stated the City Attorney has advised the City to be sure to clearly identify a justification for any size limitation from a health, safety, and welfare standpoint. Ms. Deno added the City Attorney also recommended any size limitation be tied to the liquor license. Councilmember Brausen did not support regulating square footage based on the health, safety, and welfare of the community. He noted with the polystyrene consideration it was 'why buy the lawsuit' so he does not understand the difference in this rationale. He believes small and local character are preferred and asked about limiting franchise restaurants as that food is not as healthy. He suggested the City Attorney determine whether that could withstand legal challenge. Councilmember Sanger stated the moratorium, which expires at the end of the year, allowed the Council to have this conversation but she does not find there is legal justification. In addition, such a limitation would restnct existing small off-sale liquor stores from expanding and being able to compete with similar business. The Council asked questions of Mr Walther relating to the location of C-2 zoning distncts that allow liquor stores as a permitted use. Councilmember Mavity stated her concern is the length on the north side of Excelsior Boulevard where a 10,000 sq. ft. liquor store would create a generic car culture at an entryway into St. Louis Park where the City is trying to create a pedestnan friendly and neighborhood expenence. Councilmember Spano stated another concern with creating a large destination liquor store in that area as it relates to left turns off Excelsior Boulevard. Councilmember Mavity noted the top three largest sized liquor stores are in car dnven locations, unique to that experience. Councilmember Sanger asked if it would be better to add a requirement to demonstrate no significant traffic impact. Mayor Pro Tern Lindberg asked how that differs from other businesses that generate traffic. He opined a limitation lower than 10,560 sq. ft. essentially created an unfair impact on current off-sale liquor license holders. It was acknowledged that there were not four Council votes to support a size restnction for off- sale liquor stores. Study Session Minutes -8- September 28, 2015 6. Microdistillery Licenses Ms. Kennedy presented the staff report and explained a microdistillery is licensed by the State, similar to a brewery. The City becomes involved when the establishment wants to sell their product public in either an on-sale or off-sale capacity. She explained a microdistillery could obtain either a cocktail room license, similar to the concept of a taproom license for a brewer, or an off-sale license to sell the product produced at the distillery for consumption off-site. Councilmember Spano described his experience of visiting a microdistillery, stating he found the concept to be similar to that at Steeltoe. Councilmember Sanger stated her concerns related to the impact on public safety because a cocktail room would sell spirits with a higher alcohol content with no requirement to serve food She asked if the City can institute the same 50% food requirement as restaurants. Ms. Kennedy state the City could require the sale of food that would be subject to the 50% ratio requirement, but noted that the City Code currently prohibited a restaurant from being located at a taproom She suggested the Council may want to consider imposing consistent regulations for both cocktail rooms and taprooms. She explained based on the research done by staff it did not appear as though the business model for a cocktail room or taproom was conducive to being open in a manner similar to a bar/restaurant with a full on-sale intoxicating liquor license. She noted that a cocktail room was only licensed to serve what was produced on-site at the distillery. Councilmember Sanger stated she would like to consider a food requirement and see research on public safety implications and the extent to which patrons of cocktail rooms are stopped for DWI violations as compared to patrons of other on-sale intoxicating establishments that also have food (restaurants). Chris Palmisano and Brian Idelkope, Hennepin Distilling, 6409 Cambridge Street, were in attendance. Councilmembers Mavity, Spano and Brausen indicated support to update the code to include microdistilleries and cocktail rooms. Mayor Pro Tem Lindberg stated he would like more information related to fire safety and the potential impact on nearby residents and business owners. Mr. Palmisano noted that federal regulations require the actual bonded distillery area to be separated from the public area. Mr. Walther stated if this moves forward, he would like to provide suggestions on square footage limitations as it impacts the parking requirement. Ms. Deno stated staff will provide the Council with the information requested, where these uses would be allowed by zoning, and police and fire inspection requirements Communications/Meeting Check-In (Verbal) The Council discussed the upcoming recognition of Elliott Royce Mr. Harmening updated the Council on a recent ruling in New York related to polystyrene; Linda Trummer's medical leave; and consideration of strategies and action steps to address the five priorities and goals established by the Council in January. Study Session Minutes -9- September 28, 2015 Mayor Pro Tern Lindberg adjourned the meeting at 9:20 p.m. Written Reports provided and documented for recording purposes only. 7. Highway 169—W. 16th Street Access Closure (West Side) 8. CenturyLink Cable TV Franchise Proposal 9. August 2015 Monthly Financial Report 10. 2016 Fees 11. Update: Oppidan's Application for Tax Increment Financing (TIF) Assistance Related to 4900 Excelsior 12. Hockey Association Contribution Agreement& Skate Park Relocation Update 13. 2016 Employer Benefits Contribution 14. 2016 Budget & Service Charges for Specia = vice District (SSD) Nos. 1-6 and Extension of SSD 4 through 2025 Melissa Kennedy, City Cl;j Jeff Jac•, , .yo