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HomeMy WebLinkAbout2007/07/23 - ADMIN - Agenda Packets - City Council - Study SessionCity Council Study Session July 23, 2007 6:30 p.m. Council Chambers Discussion Items 1. 6:30 p.m. Future Agenda Planning 2. 6:35 p.m. Preliminary Business Terms for Duke Realty’s Proposed West End Project 3. 7:20 p.m. Land Sale Proceeds 4. 7:50 p.m. Semi Annual Housing Report 5. 8:20 p.m. 2008 Budget Overview 6. 8:50 p.m. Vision Update Written Reports 7. 2007 Volunteers in the Park Annual Report 8. Floodplain Update: Park Nicollet LOMR Application 9. June 2007 Monthly Financial Report 10. Quarterly Investment Report (April – June 2007) 11. ParkWiFi Update 9:20 p.m. Adjourn Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administrative Services Department at (952) 924-2525 (TDD (952) 924-2518) at least 96 hours in advance of meeting. St. Louis Park City Council Study Session Discussion Item: 072307 - 1 - Future Study Session Agenda Page 1 1. Future Study Session Agenda Planning Administrative Services PURPOSE OF DISCUSSION: To assist the City Council and the City Manager in setting the next study session agenda. 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 regularly scheduled study session on August 13. Attachment: Future Study Session Agenda Planning Prepared by: Nancy Stroth, City Clerk Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Discussion Item: 072307 - 1 - Future Study Session Agenda Page 2 Future Study Session Agenda Planning Tentative Discussion Items Monday, August 13, 2007 – 6:30 p.m. 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2. VIP III David Bernard Project Discussion – Community Development (45 minutes) Council and staff will review the design for Wooddale Avenue and streetscape adjacent to the VIP II project and discuss the proposed charge to the developer for participating in the area wide storm water pond located at Hoigaard Village. 3. Discuss 2008 Budget – Finance (60 minutes) Council and staff will review the preliminary 2008 City budget including General Fund, Park & Recreation Fund, Park Improvement levy, Pavement Management levy, and debt service levies. 8:20 p.m. End of Meeting St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 1 2. Preliminary Business Terms for Duke Realty’s Proposed West End Project. Community Development PURPOSE OF DISCUSSION: Staff wishes to review and receive feedback on the preliminary Business Terms related to Duke Realty’s West End redevelopment project proposed for the Southwest corner of I-394 and Highway 100. Specific items staff wishes to discuss include: • Revised site plan. • Preliminary Business Terms. • Next steps. BACKGROUND: On May 21, 2007 the EDA and City Council approved a Preliminary Development Agreement with Duke Realty relative to its proposed West End project. Per that agreement staff and the Redeveloper have negotiated preliminary Business Terms (attached) that would form the substance of a future redevelopment contract with the Redeveloper. This draft document is being presented at this time as a “check-in” with the EDA/City Council to ascertain decision makers’ thoughts on the terms currently being considered. This particular version is the Redeveloper’s response to the original Business Terms prepared by staff. Staff has not yet agreed to the revisions proposed by the Redeveloper in the document. The item notably absent from the Terms is the mutually agreeable amount of financial assistance needed by the Redeveloper to bring the project to fruition. The Redeveloper recently submitted its project proforma to the EDA’s financial consultant for review and, due to the project’s complexity; the consultant needs time to properly analyze it. Staff will provide a summary of the business terms during the study session NEXT STEPS: Staff would like to receive feedback from the EDA/Council on the revised site plan and preliminary Business Terms prepared to date. If generally acceptable, staff would continue to negotiate the remaining Business Terms with the Redeveloper. Once all the Business Terms have been worked out, staff will review them with the EDA/City Council in a subsequent Study Session. When all the terms are mutually acceptable, the EDA/City Council will be asked to hold a public hearing to formally consider the creation of a Redevelopment TIF District. Attachment: Preliminary Business Terms Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Kevin Locke, Community Development Director Approved by: Tom Harmening, EDA Executive Director, City Manager St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 2 DRAFT July 17, 2007 Proposed Business Terms Redevelopment Contract between City of St. Louis Park, St. Louis Park Economic Development Authority Duke Realty Limited Partnership West End Development SW Corner I-394 & Highway 100 St. Louis Park, MN St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 3 PROPOSED BUSINESS TERMS FOR A REDEVELOPMENT CONTRACT FOR THE WEST END DEVELOPMENT The following are proposed deal points between the City of St. Louis Park (“City”) and the St. Louis Park Economic Development Authority (“EDA”) and Duke Realty Limited Partnership, an Indiana limited partnership (“Redeveloper”), which, upon mutual agreement, will be incorporated into a Redevelopment Contract (“Redevelopment Contract”) for the “West End Property” (SW quadrant of I-394 and Highway 100, St. Louis Park). This Agreement is in addition and in conjunction with the Preliminary Development Agreement between the above parties dated May 21, 2007. Construction of Minimum Improvements and Public Improvements The Redeveloper agrees that it will construct or cause construction of the Minimum Improvements and the Redeveloper Public Improvements (except those portions constructed by the City) on, or adjacent to, the Redevelopment Property substantially in accordance with the Master Site Plan and approved Construction Plans and that it will at all times while Redeveloper owns any Phase and through the date when all Notes are paid in full or terminated, operate and maintain, preserve and keep each Phase of the Minimum Improvements, or cause each Phase, to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Minimum Improvements. The Minimum Improvements consist of the following constructed in phases, located as shown on the Master Site Plan (Exhibit): Phase IA: Demolition of buildings, public utility relocation and construction work under Utica Avenue and 16th Street, soil correction and earthwork for Phase IB and Phase II (north of 16th Street), construction of Utica Avenue and 16th Street, construction of offsite road improvements. Phase IB: Approximately 1,100,000 square feet of Class A office space distributed between three or four buildings located on the eastern portion of the Redevelopment Property along with site improvements and structured/surface parking as required. St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 4 Phase II Approximately 350,000 square feet of retail, entertainment, and restaurants, hotel, office, public space and structured/surface parking on the western portion of the redevelopment in a pedestrian and transit friendly configuration integrated with and connected to Phase 1B and the broader community. The specific plan, mix of uses, timing and market value of the development will be determined following a community planning process. Additional Covenants. In addition to any other requirements of this Agreement, the Minimum Improvements must meet the following specifications: (1) The Redeveloper shall put forth commercially reasonable efforts to achieve Leadership in Energy and Environmental Design (LEED) core and shell certification for Phase IB of the speculative office development. Such characteristics shall be identified and articulated in a report to the EDA upon construction completion. (2) The Redeveloper agrees to provide outdoor public gathering places: Phase IB approximately 30,000 square feet and Phase 2 approximately 12,000 square feet. The indicated areas are aggregate totals and may occur in more than one location. The outdoor public gathering places shall include parks, plazas, town greens, and/or other open space designed for use by the general public and incorporating features such as fountains, public art, street furnishings, special lighting or other public amenities. (3) The Redeveloper agrees to provide at least one indoor public gathering place in Phase II approximately 5,000 square feet. Part of this space will include a separate meeting room of approximately 750 square feet for use by the public. (4) The Redeveloper shall put forth commercially reasonable efforts to provide safe and convenient pedestrian connections throughout the Redevelopment Property. (5) The Redeveloper shall put forth commercially reasonable efforts to provide an attractive public pedestrian/bicycle connection through the structured parking in Phase IB that joins Wayzata Boulevard and Utica Avenue. (6) The Redeveloper shall put forth commercially reasonable efforts to provide public transit throughout the Redevelopment Property. (7) The Redeveloper shall put forth commercially reasonable efforts to accommodate public art throughout the Redevelopment Property. St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 5 (8) The Redeveloper agrees to provide to the City, without charge, approximately 250 square feet of finished space for use as a neighborhood City police station. The police station must include restroom facilities, the area of which may not be included in calculating the minimum square footage. The area of the police station will be part of the 5,000 square foot public gathering space identified in Item 3 above. The restroom facility for the police station can be part of an adjacent public restroom. The police station must be located within Phase II at a site approved in writing by the City. The City’s approval of site location may not be unreasonably withheld. Upon completion, the Redeveloper must operate and maintain the facility at Redeveloper’s cost, including without limitation cleaning, heat and electricity, and servicing of the restroom. (10) The Redeveloper agrees to construct a public restroom including three fixtures for men and three fixtures for women located within Phase II at a site mutually agreed by the Redeveloper and the City. The area of the public restroom will be part of the 5,000 square foot public space identified in Item 3 above. Upon completion, the Redeveloper must operate and maintain the public restroom at Redeveloper’s cost, including without limitation cleaning, heat and electricity and general restroom servicing. Master Site Plan. The initial Master Site Plan for the Redevelopment Property is attached hereto as Exhibit B. The parties agree and understand that the Master Site Plan may be refined and modified as part of the review and approval process for the PUD, and that upon City approval of the preliminary PUD for the entire Redevelopment Property (and the final PUD for each Phase), the preliminary or final PUD (as the case may be) will supersede the Master Site Plan shown in Schedule. Any changes to any preliminary or final PUD after approval by the City will be processed according to City codes and procedures, including any provisions described in the PUD approvals and the Planning Contract. The initial Master Site Plan will show the site development plan for Phase 1B, the location of public streets and sidewalks and the location for the future as yet undersigned Phase II area. Construction Plans. TO BE DISCUSSED Before commencing construction of each Phase, the Redeveloper shall submit to the Authority Construction Plans for the subject Phase. The City’s chief building official and planning and zoning supervisor will review and approve all Construction Plans on behalf of the EDA, and for the purposes of this Section the term “Authority” means the City's chief building official and planning and zoning supervisor. The Construction Plans shall provide for the construction of the subject Phase and shall be in conformity with this Agreement, the St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 6 Master Site Plan as it may be revised, the TIF Plan and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing or by issuance of a permit if (i) the Construction Plans conform to all terms and conditions of the Master Site Plan, this Agreement, the final plat and PUD for the relevant Phase (ii) the Construction Plans conform to the goals and objectives of the TIF Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the subject Phase; and (v) there is no uncured Event of Default under this Agreement. No approval by the Authority shall relieve the Redeveloper of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the subject Phase in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default, or waiver of any State or City building or other code requirements that may apply. Within 30 calendar days after receipt of complete Construction Plans and permit applications for a building within any Phase, the Authority will deliver to the Redeveloper an initial review letter describing any comments or changes requested by Authority staff. Thereafter, the parties shall negotiate in good faith regarding final approval of Construction Plans for that building. The Authority’s approval shall not be unreasonably withheld or delayed. Said approval shall constitute a conclusive determination that the Construction Plans (and the Subject Phase, constructed in accordance with said plans) comply to the Authority’s satisfaction with the provisions of this Agreement relating thereto. The Redeveloper waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction Plans requested by the Authority, except for any failure by Authority to perform its obligations under this Section. Neither the Authority, the City, nor any employee or official of the Authority or City shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the Authority. Construction Plan Changes. TO BE DISCUSSED If the Redeveloper desires to make any material change in the Construction Plans or any component thereof after their approval by the Authority, the Redeveloper shall submit the proposed change to the Authority for its approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section of this Agreement with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Redeveloper, setting forth in detail the reasons therefor. Such rejection shall be made within 30 days after receipt of the St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 7 notice of such change. The Authority’s approval of any such change in the Construction Plans will not be unreasonably withheld. Commencement and Completion of Construction. Subject to Unavoidable Delays and market delays and provided the Authority and/or City have issued a building permit, the Redeveloper agrees to use commercially reasonable efforts to commence and to complete construction of the Minimum Improvements according to the Schedule below: Project Phase Commencement Completion IA 2007 2008 IB 2008 2014 II 2008 2009 The commencement and completion dates for Phase II are subject to City approval of Phase II master plan and PUD. The term “commence” means the making of visible improvements, including without limitation subsurface excavation but excluding mere surface grading. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority. The Redeveloper agrees to use its commercially reasonable efforts to commence and complete construction of each Phase by the Target Commencement Date and Target Completion Date for each Phase as described in the above Schedule. Failure to commence or complete construction by those dates is not an Event of Default under this Agreement, provided that if the target timetable for any Phase is not met, Redeveloper shall provide a written and oral presentation to the City Council of the City by no later than the first regular City Council meeting after the relevant Target Commencement Date or Target Completion Date. The report must describe the reasons for failure to meet the target schedule, evidence of Redeveloper’s due diligence in working toward construction of the relevant Phase, and a detailed revised schedule. Failure to timely provide such written and oral report is an Event of Default. St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 8 Redeveloper Public Improvements. For Phase 1A, the Redeveloper must prepare plans and specifications for and construct all streets, sewer, water, storm sewer improvements, sidewalks, landscaping, streetlights, streetscaping and other related amenities related to: • The new “16th Street” extended east from Park Place Boulevard to Utica Avenue South. • Utica Avenue extended starting from its current alignment north to Wayzata Boulevard. All improvements to these roadways must include the lane configurations as recommended in the AUAR. Before commencing such construction, the Redeveloper must submit plans and specifications regarding the Redeveloper Public Improvements for approval by the City substantially in accordance with procedures for Construction Plans. All work on the Redeveloper Public Improvements shall be in accordance with the approved construction plans and shall comply with all City requirements regarding such improvements. The parties agree and understand that the City will accept the improvements in accordance with City procedures. Subject to Unavoidable Delays, market conditions and issuance of all applicable permits by the City and/or Authority, Redeveloper agrees to substantially complete construction of the Redeveloper Public Improvements by July 2009. City Public Improvements. The City will prepare plans and specifications for and construct all road and traffic signal improvements located within the right of way of Park Place Boulevard adjacent to the west of the Redevelopment Property (the “Park Place Improvements”) between Gamble Drive and 16th Street and the following: • Improvements to the T-intersection along Wayzata Blvd in Golden Valley. • Traffic calming improvements along Wayzata Blvd in Golden Valley. • Reconstruction of Park Place Boulevard. • Improvements at Park Place Boulevard/I-394 South Ramp: o Install a westbound right-turn lane to provide a dual right-turn lane. In addition, modify the signal phasing to provide a right-turn overlap phase and optimize timing. o Install an eastbound right-turn lane to provide a dual right-turn lane. In addition, modify the signal phasing to provide a right-turn overlap phase. o Install a northbound right-turn lane to provide a dual right-turn lane. In addition, St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 9 extend the northbound right-turn lane to Wayzata Boulevard and modify phasing to provide a right-turn overlap phase and optimize timing. o Widen the entrance ramp onto eastbound I-394 to maintain a two-lane entrance onto the collector-distributor roadway. • Improvements at Park Place Boulevard/Wayzata Boulevard: o Install a southbound left-turn lane to provide dual left-turn lanes. In addition, widen eastbound Wayzata Boulevard to accommodate the dual-left turn lane. o Install a westbound right-turn lane to provide dual right-turn lanes. In addition, modify the signal phasing to provide a right-turn overlap phase and optimize timing. o Install an additional northbound through lane beginning at north of Wayzata Boulevard and ending at the I-394 South Ramp. o Install an additional northbound through lane beginning at West 16th Street, connecting to the through lane recommended at Wayzata Boulevard. o Install an exclusive northbound right-turn lane. • Park Place Boulevard/West 16th Street: o Extend the existing southbound left-turn lane to provide 300 feet of storage. o Modify the existing northbound shared through/right-turn lane to a through lane only. o Install a northbound right-turn lane. o Modify the westbound approach to provide dual left-turn lanes, one through lane and a right-turn lane. In addition, modify the signal phasing to provide a right-turn overlap phase. o Modify the eastbound shared through/left-turn lane to an exclusive left-turn lane to provide dual left-turn lanes. o Modify the existing exclusive eastbound right-turn lane to provide a shared through/right-turn lane. o Eliminate the current split phasing and optimize the signal timing. • Park Place Boulevard/Gamble Drive: o Modify the existing westbound shared through/left-turn lane to an exclusive left- turn lane to provide dual left-turn lanes. o Convert the existing westbound right-turn lane to a through lane and install an exclusive right turn lane on this approach. In addition, modify the signal phasing to provide a right-turn overlap phase. o Eliminate the current split phasing and optimize the signal timing. • Quentin Avenue/Wayzata Boulevard (improvements not shown in figures): o Install a southbound right-turn lane. o Install an eastbound right-turn lane. • Quentin Avenue/Old Cedar Lake Road : o Install a northbound left-turn lane. o Modify the current striping to provide a southbound right-turn lane. • TH 100 East Frontage Road/Old Cedar Lake Road: o Modify and widen the westbound approach and re-stripe as two lanes. o Widen the west end of the concrete island to create a 90-degree T-intersection. • Improvements to the T-intersection along Wayzata Boulevard in Golden Valley. St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 10 Redeveloper is responsible for initial financing $__________ of the City Public Improvements. The City must construct the balance of the Improvements located in accordance with the construction plans and all City procedures for such improvements. Subject to Unavoidable Delays City agrees to substantially complete construction of the City Public Improvements by July 2009. City Financial Assistance. The Redeveloper is initially responsible for: all costs of the Redeveloper Public Improvements and City Public Improvements. All Public Improvement Costs that are Redeveloper’s initial responsibility are subject to reimbursement through tax increment financing. In order to offset the extraordinary costs associated with developing the Redevelopment Property as well as the costs of the Redeveloper and City Public Improvements, the EDA agrees to take all steps necessary in accordance with State law to establish a new Redevelopment TIF District, and to utilize tax increment from the Redevelopment Property and other legally available funds, if necessary, to fund such Public Improvement Costs in an amount not to exceed $ . The tax increment from the Redevelopment TIF District will be payable to Redeveloper in the form of a “TIF Note(s)”, which would be structured on the following basis:  Issue total: $  Type: Pay-as-you-go note  Term: ___ years  Interest Rate: ___ %  Admin Fee: 5%  Fiscal Disparities: Paid from within the district Reports. The Redeveloper must submit to the Authority a written report at least quarterly, starting with the commencement of Phase IA and continuing until issuance of the Certificate of Completion for the final Phase of the Minimum Improvements. The report must describe progress on construction of the Minimum Improvements and Public Improvements as well as progress on leasing the commercial and office space within the project. The Redeveloper also agrees to submit to the Authority written reports so as to allow the Authority to remain in compliance with reporting requirements under state statutes. The Authority will provide information to the Redeveloper regarding the required forms. St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 11 Contract Requirements. Redeveloper shall undertake all work related to the Redeveloper Public Redevelopments and the Minimum Improvements in compliance with all applicable federal and state laws, including without limitation all applicable state and federal Occupational Safety and Health Act regulations. Any subcontractors retained by Redeveloper shall be subject to the same requirements. Indemnifications. Redeveloper acknowledges that the City/EDA makes no representations or warranties as to the condition of the soils on the Redevelopment Property or its fitness for construction of the Minimum Improvements. Redeveloper, City and Authority agree to indemnify, defend and hold harmless each other and their officers, employees, and agents (“Indemnified Parties”) from and against all cost, loss, claim, damage or expense, including reasonable attorney fees, arising out of (i) any injury, property loss or damage whatsoever that results or arises from the undertakings of this Agreement under this Section, except to the extent such injury, loss or damage arises from the negligence of the Indemnified Parties; and (ii) any work performed on or for the benefit of the Redevelopment Property by a person or entity not a party to this Agreement, including without limitation all costs related to defense against or removal of any lien or encumbrance, except to the extent such claim arises from a party directly engaged by the Indemnified Parties. The Redeveloper must deliver to the City and maintain a payment bond or other security in a form reasonably satisfactory to the City, in an amount reasonably necessary to protect the interests of the City in connection with the work to be performed. Look Back Provision. TO BE DISCUSSED The EDA acknowledges that it is Redeveloper’s intent to sell a portion of the Redevelopment Property to a third party at or subsequent to the issuance of the Certificate of Completion and occupancy by Tenants of the Redevelopment Property (“Third Party Sale”). Within 60 days after closing on a Third Party Sale, Redeveloper agrees to provide financial data to the EDA’s financial consultant as may be necessary for the consultant to calculate the Prepayment Amount (defined below). If, based on such review, the actual profit for the Redeveloper exceeds a __% rate of return on total project costs, then fifty percent (50%) of excess amount of profit (the “Prepayment Amount”) will be applied as prepayment of the outstanding principal amount of the TIF Note in accordance with the terms of the Note. Such prepayment will be effective upon delivery to Redeveloper of a written notice stating the amount of excess profit determined by the EDA in accordance with this Section; St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 12 however, the prepayment of the Note will be deemed to have occurred as of the Closing Date, as supplemental Purchase Price. Maintenance of Improvements. The parties agree that the Redeveloper shall be responsible for all maintenance costs (including snow and ice removal) associated with the Redeveloper Public Improvements on the Redevelopment Property (“Maintenance Costs”) including: Private streets, alleys, driveways, service drives, surface parking stalls and parking lots. Boulevards Parking structures Sidewalks Public gathering areas and spaces Landscaping Stormwater ponds Streetlighting Redeveloper agrees to keep the above Redeveloper Public Improvements in good condition and is resposibile for all repairs of same. Certificate of Completion. Upon substantial completion of the Minimum Improvements, the EDA will provide the Redeveloper with a Certificate of Completion in recordable form, which shall specifically provide that the Redeveloper’s obligation to construct the Minimum Improvements pursuant to the Redevelopment Agreement is deemed satisfied. Property Transfer. Redeveloper agrees not to transfer the Redevelopment Agreement or the Redevelopment Property (except to an affiliate) prior to receiving a Certificate of Completion without the prior written consent of the EDA, except for: (i) construction mortgage financing and/or permanent financing; (ii) transfer to Tenant; (iii) sale of an outlot; and (iv) a ground lease of a portion of the Redevelopment Property. EDA's consent shall not be unreasonably withheld, conditioned or delayed. The EDA agrees to provide its consent or refusal to consent to Redeveloper in writing within 10 days after a request for such consent from Redeveloper. St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 13 Other Provisions. The Redeveloper agrees that no portion of the Redevelopment Property will be used for a sexually-oriented business, a pawnshop, a check-cashing business, a tattoo business, or a gun business, and that such restrictions may be placed in the Redevelopment Deed. The Redeveloper agrees not to discriminate upon the basis of race, color, creed, sex or national origin in the construction and maintenance of the Minimum Improvements and Public Improvements as well as the sale, lease, rental, use or occupancy of the Redevelopment Property or any improvements erected thereon. e:\real estate\minn office\west end\agreements\redevelopment business terms (revised) 2007-07-06.doc 8/11/2017 10:16:00 AM St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 14 EXHIBIT A SUBJECT PROPERTIES The Redevelopment Property includes all or portions of the following properties and as reflected in the Master Plan. PID: 3002924320018 City Address:* 5201 WAYZATA BLVD PID: 3002924320007 City Address:* 5245 WAYZATA BLVD PID: 3002924320011 City Address:* 1551 PARK PLACE BLVD PID: 3002924330002 City Address:* 1621 PARK PLACE BLVD PID: 3002924330019 City Address:* 1600 UTICA AVE S St. Louis Park City Council Study Session Discussion Item: 072307 - 2 - Preliminary Business Terms for Duke West End Project Page 15 EXHIBIT B Master Site Plan St. Louis Park City Council Study Session Discussion Item: 072307 - 3 - Land Sale Proceeds Report Page 1 3. Land Sale Proceeds Community Development PURPOSE OF DISCUSSION: The purpose of this council agenda item is to discuss a proposed process for preparing a plan/strategy for how to handle the net proceeds from the sale of city property for move-up homes. BACKGROUND: On December 5, 2005 the City Council directed staff to proceed with the sale of several parcels of city owned/tax forfeited property to accommodate Move-up Housing. Since that time the City has entered into agreements to sell seven parcels. Four more parcels are expected to be sold in coming months. The primary goal of the sale of public land for Move-Up Housing was not to raise revenue. However it was recognized from the beginning of the process that there would likely be significant revenue generated from the sale of these parcels. It was also recognized that the funds generated from the sale of public land should be used for special purposes. They were one- time funds, which should be segregated from the city’s general day to day revenues and used for one or more special purposes. It was envisioned that the city would use some type of public process to decide how to use these special funds. To date the funds from the land sales have been segregated from other city funds, but what to do with the funds has not yet been decided. The purpose of this council discussion item is to identify a process for deciding how to handle the net land sale proceeds. One possible approach staff has discussed is outlined below. Hopefully this will help stimulate conversation on this topic. “Blue Ribbon” Land Sale Proceeds Committee Staff is proposing that the City Council form a 5 to 7 member “blue ribbon” committee to prepare a plan for consideration by the City Council for how to handle the net land sale proceeds. The intent would be to select committee members with knowledge of the community, expertise in finance and managing/leveraging money, understanding of the community vision, and credibility as community leaders. Possible committee members could be local bankers, former city council members, representatives from area foundations and others familiar with the Move- Up housing activities over the past three years. Issues that the committee would be asked to address would include items such as - 1. Should the net land sales proceeds be treated as an endowment to provide an on-going source of revenue or used for direct funding, or some mix of both? 2. Could the funds be used to leverage other funds, and if so, how could it be done? 3. What should the priorities for the use of the funds be? 4. How can community input be incorporated into the funding process? The broad time frame for the work of the committee would be roughly the next six to nine months. The goal would be for the committee to complete its work and make a recommendation to the City Council by the end of the year or first part of 2008. St. Louis Park City Council Study Session Discussion Item: 072307 - 3 - Land Sale Proceeds Report Page 2 Next Steps If the City Council believes this approach has merit, staff will assemble a list of prospective committee members for Council approval at a future regular Council meeting. Prepared by: Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 1 4. Semi Annual Housing Report Community Development PURPOSE OF DISCUSSION: To provide Council an update on 2007 housing activity and to provide background information for discussion related to foreclosures and affordability goals. Attachments: Housing Report – 2007 First Half Housing Matrix Affordability Goal Foreclosure Status Housing Goals Prepared by: Kathy Larsen, Housing Programs Coordinator Reviewed by: Kevin Locke, Director of Community Development Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 2 City of St. Louis Park Housing Report – First Half 2007 The purpose of this report is to apprise the City Council of 2007 year to date housing activity including the City’s vigorous 2007 “Move Up in the Park” activity. In addition to the program activity, this report includes: • Housing Matrix including Housing Affordability Goals and Status • Recent Foreclosure Activity in St. Louis Park 1. MOVE UP IN THE PARK ACTIVITY SUMMARY Again, in 2007, the Move Up program is very active and on pace to exceed last year’s activity. The comprehensive package of services and loans resulted from the Housing Summit’s emphasis of facilitating and promoting the expansion of existing homes as the most effective tool to achieve more family size homes in the city. The Move Up in the Park program successfully kicked off in 2005 and 2006 was an active year of vigorous home improvement activity. A synergy between the marketing of our “Move up in the Park” programs and services, with strong remodeling interest, has resulted in resident use that continues to outpace projections. Chart 1. Resident Investment in 2006 and First Half 2007 In 2006, residents invested over fifteen million dollars in renovations to their homes. In 2007, residents are on track to exceed last year’s investments. The resident investment for the first half of 2007 is over $12,000,000. Over 65 permits for major remodeling/expansion projects have been issued so far this year, compared to 86 during 2006. The following table provides a snapshot of the 2007 use of the Move Up programs and services along with funding levels. It is followed by the description of each of the program components. • The transformation-move up loans have exceeded projected 2007 estimates. Twenty homes have been significantly expanded using the transformation loan. • The architectural design service seems to be slowing down during its second year. This service is designed for residents making significant expansions to their homes. After meeting the pent up desire for this service in the first year, its use may be plateauing. • Despite vigorous rehab activity, the discount loan program is not as active as last year. To date 27 loans have been closed compared to 88 for all of 2006. Staff is unsure why the loans are not being used at the same rate as last year, and notes that the use of these loans has fluctuated in previous years. Resident Rehab/Remodeling Investment based on Permit Valuations $15,200,000 $12,100,000 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 2006 2007 1st Half Year$ Amount St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 3 • The remodeling home tour was very successful. • The “green” home remodeling fair was less well attended this year due to a very snowy day, and approximately 2,000 folks attended. • Even with the softened housing market, the private sector is still purchasing and renovating small homes, and staff has not identified suitable homes for the small home acquisition and expansion program at a reasonable price point. Table 1. Move Up Housing Activity January 1 – June 30, 2007 Activity 2007 Goal Through June 30, 2007 Annual Budget Expended through 6/30/2007 Move Up - Transformation Loan 15 20 $500,000 $500,000 Architectural Design Service 100 27 $22,500 $6,075 Remodeling Advisor 300 157 $39,000 $20,410 Discount Loans 80 27 $150,000 $60,200 Home Remodeling Tour 1,000 1,000 $5,000 $5,000 attendees Home Remodeling Fair 2,000 attendees 2,000 $0 $0 Small Home Acquisition Program 5 0 $137,500 $0 Neighborhood Green Home Improvement and Energy Workshops (Fall) 2 0 $3,500 0 Vacant Public Land for SF Homes 8 parcels have been bid out: final multi-lot parcel to bid in August; 2600 Natchez to bid this summer Move Up In the Park Programs & Loans The initiatives include educational, technical and financial activities designed to motivate and assist residents with renovation to their homes. These programs are funded from the Housing Rehabilitation Fund. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 4 • Move – Up Transformation Loan The purpose of this loan is to encourage residents with incomes at or below 120% of median area income ($92,000 for a family of four) to expand their homes. The program provides deferred loans for 25% of the applicant’s home expansion project cost. Loan repayment at 0% interest is deferred until the home is sold - if the resident remains in the home for 30 years, the loan will be forgiven. This in effect establishes a revolving loan pool which will continue to fund future expansions. This loan requires significant upfront work by the residents, from deciding on the scope of the project to selecting contractors. The average loan is approximately $25,000. o Only residents making significant expansions are eligible. The minimum project cost must exceed $35,000. o The maximum loan amount is $37,500, if construction costs are $150,000. o The City has established a revolving loan pool, administered by a third party. o The loan has 0% interest with a carrying cost fee of 3% paid by the borrower. • Architectural Design Service This service provides an architectural consultation for residents to assist with brainstorming remodeling possibilities and to raise the awareness of design possibilities for expansions. Residents select an approved architect from a pool developed in conjunction with the American Institute of Architects and local architects. All homeowners considering renovations would be eligible for this service regardless of income, however to ensure committed participants, residents make a $25 co-pay. Resident surveys not only provided ideas to refine the program, but indicated a high level of satisfaction with the service. • Remodeling/Rehab Advisor The intention of this service is to help residents improve their homes (either maintenance or value added improvements) by providing technical help before and during the construction process. All homeowners are eligible for this service regardless of income. Resident surveys indicated that homeowners valued the service and would recommend it to others. The City contracts with the Center for Energy and Environment (CEE) for this service. • Discount Loan Program This program encourages residents to improve their homes by “discounting” the interest rate on the Minnesota Housing Finance Agency (MHFA) home improvement loans. The MHFA’s Community Fix-up Fund is restricted to Minnesota residents residing in cities that elect to participate in the program. Residents with incomes of $63,000 or less qualify for a greater discount than those with incomes of $90,000 or less. Eligible improvements include most home improvement projects with the exception of luxury items such as pools and spas. The City’s Housing Rehabilitation Fund is the funding source for the discount loan program, and CEE is the loan administrator. St. Louis Park implemented the discounting of MHFA loans in late 1999 as a pilot project. Successful marketing efforts have led the City to be third among all Minnesota cities to use the MHFA loans, only exceeded by Minneapolis and St. Paul. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 5 • Home Remodeling Tour The 3rd annual Home Remodeling Tour of six recently remodeled homes proved very popular with an average 400 residents visiting each of the six tour homes. The Tour’s goal is to provide residents hands-on examples of remodeling and expansion projects of typical St. Louis Park housing, to motivate and encourage residents to enlarge and enhance their homes. • Annual Home Remodeling Fair The cities and community education departments of St. Louis Park, Hopkins, Minnetonka and Golden Valley co-sponsored the 2007 Fair. The 2007 Fair had a “green theme” and over 2,000 residents from the four cities attended the one day event, with over half of the attendees living in St. Louis Park. The fair provides residents an opportunity to attend seminars, talk with vendors and city staff about permits, zoning, home improvement loans, and environmental issues related to remodeling. The fair is now a self-sustaining event where vendor registration fees more than cover the costs of the event. • Small Home Acquisition Program. Staff is recommending this program be coupled with the existing home renewal program. Even with the softened housing market, the private sector is still purchasing and renovating small homes, and staff has not identified suitable homes for the small home acquisition and expansion program at a reasonable price point. • Neighborhood Green Home Improvement and Energy Workshops Two neighborhood workshops are planned for fall 2007. The timing of the workshops is to being coordinated with the New State Green Remodeling Guidelines and could continue the excitement and buzz about remodeling into the fall. The purpose is to provide concrete education about green remodeling, codes and zoning, design and rehab assistance and information about the city’s financial incentives including existing loan programs. • Vacant Public Land The first eight parcels have been bid out. Two remaining parcels located at 9019 Cedar Lake Road and 2600 Natchez Ave are scheduled to be bid out in August. 2. OTHER HOUSING PROGRAM ACTIVITY Other city housing activity is outlined in the table with descriptions below: Table 2. Housing Activity Report, January 1 – June 30, 2007 Activity Goal To Date Annual Budget Expended 6/30/2007 Citywide Inspection Rehab Program (City & MHFA Funds) 200 units 150 $325,000 (18 months) $192,600 Housing Improvement Area (HIA) 1 HIA 130 Unit complex $10,000 $800* CDBG $213,302 $276,213** *The City fronts legal, financial and City admin costs which will be reimbursed through the HIA loan. **Actual 2006 CDBG expenditures included CDBG funding from 2004 5 Grant Years. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 6 • Citywide Home Inspection Rehab Program (CHIRP) The City received a $147,000 matching grant from the MN Housing Finance Agency (MHFA) for deferred and discount loans for low income residents identified by Inspections as requiring exterior maintenance improvements. Of the 200 homes and owners identified as having significant exterior code violations, over 150 of the homes have been improved, and close to two thirds of the funds have been used. As this program winds down, we may not expend all the funds for low- moderate income eligible residents. This program received MN Housing’s Housing Development Choice Award in 2006. • Housing Improvement Area (HIA) The Wolfe Lake Condominium Associations applied for the HIA, and anticipates having over 50% of the owners petition the Council for the HIA designation in September 2007. $1,268,000 worth of common area improvements would be paid with a 15 year term loan at 6.15% interest rate. • Community Development Block Grant (CDBG) Activity completed as of June 30, 2007 included activities that were funded with 2005 and 2006 Grant Year funds, so the budgeted and expended amounts do not match. Contracts have not yet been disbursed by the County for 2007 funds, and consequently 2007 funds have not yet been expended. Table 3. 2006 CDBG Allocation and Activity 2005 - 6 Allocation and Activity 2006 Budget Actual Expenditures 6/30/07 Emergency Repair Program - single family housing rehabilitation $57,302 $57,302 Housing Land Trust - acquisition single family housing $18,500 $18,500 Multifamily Rehabilitation – Louisiana Court $80,000 $80,000 Single Family Rehab Deferred Loan Program $0 $120,411 STEP Acquisition $57,500 $0 Total $213,302 $276,213 3. ST. LOUIS PARK HOUSING AUTHORITY The St. Louis Park Housing Authority activity is outlined the tables below: Table 4. St. Louis Park Housing Authority Assisted Housing Programs Public Housing Public Housing Total Units 1-BR 2-BR 3-BR 4-BR 5-BR Occupancy 2007 Hamilton House 108 108 98.9% Scattered Site Single Family 37 0 0 17 17 3 97.8% Louisiana Court, Metropolitan Housing Opportunity (MHOP) Units 12 12 98% Total (bedroom size) 108 12 17 17 3 Total 157 St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 7 Rental Assistance Section 8 Housing Choice Vouchers (HUD Approved) Units Utilization YTD 2007 Tenant-Based 220 101% Tenant-Based Portability Units* 91 Avg./month Project-Based: 45 96% Wayside House 20 90% Excelsior & Grand 18 100% Vail Place 7 100% Shelter Plus Care Rental Assistance: 38 Perspectives Inc. 11 100% Community Involvement Program (CIP) – Scattered Site Homes 11 100% CIP- Clear Spring Road 8 65% Project for Pride In Living (PPL) 8 100% Total 303 *For First Half 2007, the HA administered an average of 78 vouchers for Sec. 8 households that have moved to SLP from other jurisdictions. Waiting Lists Assisted Housing Waiting List as of December 31, 2006 Public Housing 1-BR 1-BR Handicap 2-BR 3-BR 3-BR Handicap 4-BR 5-BR Total 194 12 103 120 22 36 19 506 Section 8 1229 St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 8 Housing Matrix: Housing Types, Numbers & Percentages - June 2007 In 2005 the Council approved housing goals that evolved from the 2003-05 Housing Summit. Along with the goals, strategies were defined for implementation to achieve the goals. One of the strategies was to develop a matrix of existing housing types including detached/attached, owner/rental, family/senior, and affordable/market rate with production goals for each. The matrix is to be a guide to evaluate future housing development proposals. The attached matrix is updated semi-annually and presented to the City Council, Housing Authority and Planning Commission. It shows at a glance the numbers and percentages of: housing types, tenure (owner or rental), affordable units, senior designated units and large single family homes. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 9 St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 10 Affordability Goal and Star Tribune Editorial of July 17, 2007 The Star Tribune published an editorial on July 17, noting that St. Louis Park has one of the worst percentages (9%) in meeting the affordable housing goals established as part of the Met Council Livable Communities Act of 1995. The STRIB seems to take a very simplistic approach to determining performance relative to a very complex matter. The portrayal of our efforts to provide affordable housing in our community is inaccurate and the analysis flawed. The nine percent that is cited in the editorial only reflects the City’s progress towards constructing new affordable housing units. The nine percent is based on the cited goal of 1,084 new housing units that are affordable and 100 new affordable units that have been constructed. This figure does not include any other affordable housing factors or initiatives undertaken by the City and HA including: • the number of affordable housing units that currently exist in the community, • the number of subsidized/assisted units administered in the City, or, • the number of affordable housing units that the City has assisted with preservation and rehab initiatives. In addition to the goal for newly constructed affordable units, the City’s negotiated housing goals with the Met Council includes that 60-77% of the city’s owner occupied homes should be affordable for households with incomes at or below 80% of the area median income and that 37- 41% of the city’s rental homes should be affordable for households with incomes at or below 50% of the area median income. Currently, 24% of owner occupied units meet the affordability standard (market value less than $201,800) and 44% of the rental housing are considered affordable. Although a significant amount of the City’s rental housing is still considered affordable according to the Met Council’s standards, the recent escalation in owner occupied housing market has resulted in many of St. Louis Park’s modest single–family homes, once considered affordable, no longer meeting the affordable home value definition. Other affordable housing related initiatives undertaken by the City during the past several years but not included in the 9% referenced in the editorial include: • the City acting as one of the key funding partners in rehabbing and preserving 128 units of affordable housing at Louisiana Court whish included 12 Metropolitan Housing Opportunity Program public housing units, • the HA project based 20 Section 8 rental assistance units at the Wayside Housing Inc. supportive housing developments, • administration of twenty-two existing Shelter Plus Care units and the successful application and administration of 16 additional units in 2 projects, • the City partnered and provided financial support to both Habitat for Humanity and West Hennepin Affordable Housing Land trust to develop 11 affordable homeownership units, • the administration and financial support of a number of housing rehab programs designated for low and moderate income households, i.e., the Discount Loan Program, Citywide Inspection Rehab Program, the deferred loan program and the Emergency Repair Program, St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 11 • Establishment of 2 Housing Improvement Areas that loaned over $1,500,000 to preserve 300 affordable condo units. • the annual designation of CDBG funds for the maintenance and rehab of multi-family housing serving low income households, and • the administration of 340 Section 8 rental assistance vouchers and management of 157 public housing units. As you can see, the City is active in serving the needs of low income households in our community and our efforts cannot be accurately reflected by measuring only one component of a comprehensive approach to affordable housing. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 12 City Of St. Louis Park Foreclosure Information The foreclosure of mortgages is surfacing as an important housing issue as evidenced by the flurry of recent media attention and government activity. The purpose of this report is to inform city policy makers regarding the foreclosure situation in St. Louis Park. Staff from Community Development, Assessing and Inspections have worked to understand the current environment in an effort to provide background information for the Council, to determine what, if any, the city’s role should or could be. KEY CONCLUSIONS 1. The foreclosure rate in St. Louis Park, though likely higher than in the past, is not similar to the dramatic rates being experienced in Minneapolis and some of the other modest -income first ring suburbs. The impact on the community should not be critical since: a. There is no concentration of foreclosed properties in any one neighborhood. This is good for residents and good for stability of neighborhoods. b. The Police and Inspections Departments are not being over taxed by foreclosed property “problems”. c. Value retention exists. The values of foreclosed properties are still strong, in that the sale prices are consistent with estimated values. 2. Almost half of the foreclosures were experienced by people that have owned their homes for over a decade. Individual reasons for foreclosure are varied, however it is likely that predatory lending and misguided financial decisions resulted in the equity cash-out from multiple refinancing deals. 3. The State has implemented anti-predatory lending legislation this summer. This will decrease some predatory and negative sub prime practices from continuing. 4. The County is addressing the issue of foreclosures through a promotion campaign to alert owners at risk. The county is also proposing to increase the number of foreclosure prevention specialist by four, which is significant increase from the current one specialist. The City could consider assisting with these costs using CDBG funds. 5. It is believed by mortgage and housing experts that the drastic foreclosure situation will continue for two more years, by which time most sub prime, adjusted rate low interest mortgages will come due. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 13 A. DATA Hennepin County began electronically tracking foreclosures in December of 2005, prior to this, information on foreclosures was scattered among individual private lenders, with no centralized data source. Table 1. Housing Type and Tenure of Foreclosed Properties Year # Units Single Family Detached Condo- Townhome Homestead Non- Homestead 2006 71 54 17 56 15 Qtr 1 2007 16 14 2 14 2 Totals 87 68 19 70 17  Eighty-seven single family homes in St. Louis Park were foreclosed from January 1, 2006 through the first quarter of 2007; 71 in 2006 and 16 in the first quarter of 2007.  Not quite 20% of the properties are non-homesteaded, equal percentages for the single family detached and single family condo units.  Just over 20% of the foreclosed units were condos or townhomes. Chart 1. Foreclosure Rates The following chart illustrates 2006 & 2007 foreclosure rates for the State, County, St. Louis Park and other cities. The foreclosure rate in St. Louis Park .53% is nearly twice as high as the statewide rate, yet significantly lower than that of the cities of Minneapolis, Brooklyn Park, Brooklyn Center and Hopkins. The City Assessor states the “rule of thumb” threshold factor for foreclosures is 1.0%. Foreclosure rates over that threshold are generally perceived as signs of significant financial distress in a community. 2006 Foreclosure Rates 0.19% 0.21% 0.27% 0.28% 0.33% 0.38% 0.41% 0.49% 0.53% 0.63% 0.75% 0.97% 1.12% 1.15% 1.62% 1.71% 1.88% 0.00%0.50%1.00%1.50%2.00% Edina Minnetonka STATE Golden Valley Plymouth Eden Prairie Bloomington New Hope St. Louis Park Richfield Robbinsdale Crystal Hopkins Hennepin Brooklyn Center Brooklyn Park Minneapolis Percentage St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 14 Location of Foreclosures The map below illustrates that the foreclosures are distributed relatively evenly throughout the community and not concentrated in any particular area of the city. This is positive. The negative impacts of concentrated vacant homes within a neighborhood will not be experienced. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 15 Property Values of Foreclosed Homes The table below illustrates the number of homes in different value ranges. The foreclosed properties are relatively modest valued homes. • The median value is just over $200,000 • Most of the homes are in the $150,000 - $250,000 range. • The 2007 Met Council affordable house value is $201,800. • The 2006 median estimated market value of SLP homes is $238,600. Table 2. Values of Foreclosed Homes Values ranged from $80,000 to $553,700, with an average value of $210,049 and median value of $201,600. Values # Homes % less $100,000 4 5% $100,000-$150,000 12 14% $150 - $250,000 55 63% $250-300,000 8 9% $300-350,000 4 5% $350,000 4 5% Total 87 100% Chart 2. Length of Ownership Prior to Foreclosure Length of ownership prior to foreclosure 8 9 35 35 0 5 10 15 20 25 30 35 40 1970's 1980's 1990's 2000's Decade homes purchasedNumber of Homes The table above shows that almost half of the homes were purchased more than a decade before foreclosure. Over half the homes were purchased less than 10 years ago, 35 of the homes were purchased since the year 2000. The factors that lead to foreclosure are discussed later in this report. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 16 B. IMPACT OF FORECLOSURES ON CITY 1. The relative equal distribution of foreclosures throughout the community, rather than in concentrated neighborhoods is positive. Communities such as Minneapolis and Brooklyn Park have heavily concentrated neighborhoods with multiple foreclosures on single blocks. The foreclosures in St. Louis Park simply are not located in any one neighborhood. Therefore the negative impact of numerous vacant properties on the surrounding area is not being experienced in SLP. 2. Property Values Since the properties are scattered throughout the city and we are not experiencing blocks with multiple foreclosures, the foreclosure rate is not expected to affect value retention. Property values of foreclosed properties and adjacent properties are not prone to decrease other than the market norm of “motivated” seller in the sense that the lenders will seek to dispose of the homes as expeditiously as possible. 3. City Inspections & Police Foreclosed properties are not generating a significant number of nuisance complaints. • Eleven of the foreclosed properties elicited complaints between 2006 and the first quarter of 2007, from a total of 1,002 complaints during this period. • Three of the eleven complaints were for rental/investment property. • Inspections staff resolved issues related to litter, expired tabs, unsecured home, outside storage, junk pile trash in ally, debris and junk. All properties were brought into compliance. • The police department has not received additional complaints related to vacant foreclosed properties. Based on complaints called into city staff, the number of complaints generated from the foreclosed properties is minimal. The properties have been cleaned up in a short period of time. 4. City Loans None of the foreclosed properties used any of the city financing tools; no city discount state loans, CDBG rehab loans, move up loans or emergency repair grants were recorded on the mortgages of the foreclosed properties. Our loan underwriting and subordination guidelines reduce the risk to city investments. C. FACTORS LEADING TO FORECLOSURE Mortgage bankers and housing advocates cannot point to a single cause of the problem, but cite several factors: 1. Relaxed lending standards since 2000 have enticed marginal borrowers into the market with risky and subprime mortgages that are generally at higher than prevailing interest rates. 2. Relaxed lending standards also resulted in refinancing options that allowed owners to cash-out equity to cover other debt. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 17 3. Rising short-term interest rates are increasing monthly expenses for family who have adjustable-rate mortgages (prime was at 4% two years ago, it now is over 8%) 4. Stagnant sale prices are making it difficult for homeowners in crisis to cash out. 5. Stagnant sale prices are also making it difficult for investors entering the market at high home prices to cash out. D. SERVICES AVAILABLE TO RESIDENTS FACING POSSIBLE FORECLOSURE The MN Housing Finance Agency (MHFA) has an established Foreclosure Prevention Assistance Program, with one agency that serves residents in suburban Hennepin County - Community Action Partnership of Suburban Hennepin (CAPSH). This service is primarily funded through the State and County, with no funding from the city. In addition to the MHFA’s foreclosure program, the “Don’t Borrow Trouble” campaign attempts to educate borrowers about mortgage options that will most likely be sustainable for the borrower. This program is advertised through agencies and websites. Hennepin County plans to implement a promotion campaign directed at owners at risk of foreclosure. They also plan to fund additional foreclosure prevention counselors through Community Action Partnership of Suburban Hennepin County. E. RECENT INITIATIVES - 2007 METRO/STATEWIDE The 2007 legislature passed anti predatory lending laws to provide more oversight to lending practices for sub-prime, at risk borrowers. In 2007 MHFA, the Family Housing Fund and City of Minneapolis are partnering to develop a strategy to address the large number of vacant foreclosed homes in Minneapolis’s north side and Brooklyn Park neighborhoods. Hennepin County began tracking foreclosures in December of 2005, and is actively studying the foreclosure situation. They anticipate implementing a promotion campaign directed at owners at risk of foreclosure. They also will be funding additional foreclosure prevention counselors through Community Action Partnership of Suburban Hennepin County. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 18 Housing Goals - City of St. Louis Park Vision 2007 Housing has been identified as one of the primary vision topics and 3 strategic directions have been identified to meet the vision. It is anticipated that the current housing activity will be enhanced to more aggressively meet the strategic directions. Housing Summit 2003-2005 As a means to educate, revisit and consider any necessary changes to St. Louis Park’s current housing policies, strategies and goals, a series of meetings were held between the City Council, Planning Commission, Housing Authority Board, School Board, County Commissioner and a business representative regarding the status of housing in St. Louis Park. The discussions that were held at these meetings and subsequent changes made to the City’s goals, policies and strategies reflect what is best for the collective good of the entire St. Louis Park community. The meetings provided an opportunity to: • Review the status of housing in St. Louis Park (rental and owner occupied), • Examine historical, current and future housing trends in the city, and metro, state • Evaluate current and future community needs using 2000 Census data/other available info. • Examine the effectiveness of current policy/strategies in meeting the community’s needs, • Allow the Planning Commission, Housing Authority Board, School Board and Business Community to provide input to the City Council. Process All members of the City Council, Planning Commission, Housing Authority, School Board, the Hennepin County Commissioner, and a business representative attended an initial meeting to review general statistical and housing data. A Steering Committee met 6 times to examine specific housing topics and report back to the entire group at “check-in/progress” meetings. The 4 check-in/progress review meetings provided an opportunity to review findings and discuss possible policy changes/initiatives with the entire group. The public input process included conducting a Housing Survey, a Moving Survey and ten focus groups with resident groups to garner input regarding housing issues and response to drafted goals. The public input was presented at a final meeting of the entire group along with a review of the recommended changes to the City’s current housing policies and goals. The City Council considered and approved housing goals at the March 7, 2005 Council Meeting. City of St. Louis Park Housing Goals The Housing Summit resulted in a set of Housing Goals that were approved by the City Council in April 2005. The goals reflect the city’s housing policy and will serve as guides to direct officials, staff, and advisory boards now and into the future. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 19 Housing Production • Promote & facilitate a balanced and sustainable housing stock to meet diverse needs both today and in the future • The City should establish target numbers of units by housing types needed to ensure life cycle housing options, with housing types disbursed throughout the city. • The City acknowledges that there is demand for different types and sizes of housing units, but due to limitations of available space and other resources, all demands cannot be fully satisfied. At the present time, the greatest deficit and need is for the creation and maintenance of detached, owner-occupied single family housing which are large enough to accommodate families. City housing efforts and resources should primarily address this need. Housing Condition and Preservation • Ensure housing is safe and well maintained. • Preserve and enhance housing quality through proactive promotional and educational activities and housing programs related to home rehab, code, and design and safety issues. Owner / Rental Ratio • The ratio of owner/rental housing should be approximately 60% owner occupied and 40% rental. • Explore traditional and non-traditional owner occupied housing options such as, but not limited to: row houses, courtyard housing, alternative housing, cluster housing, hi-rises, 3-story homes, multi-generational housing, etc. Affordable, Workforce and Supportive Housing • Promote and facilitate a mix of housing types, prices and rents that maintains a balance of affordable housing for low and moderate income households. Future affordability goals with the Met Council should be negotiated to reflect the average percentages for other first ring suburbs in Hennepin County. Note: In 2004, the City’s negotiated goal for housing affordability with the Met Council was that 60- 77% of the city’s owner occupied homes should be affordable for households with incomes at or below 80% of the area median income and that 37-41% of the city’s rental homes should be affordable for households with incomes at or below 50% of the area median income. • Mixed income units should be disbursed throughout the City and not concentrated in any one area of the City or any one development. St. Louis Park City Council Study Session Discussion Item: 072307 - 4 - Semi-Annual Housing Report Page 20 Large Homes for Families • Promote and facilitate expansion of existing homes through remodeling which adds more bedrooms and more bathrooms, 2+ car garages and other amenities. • Promote and facilitate construction of large family-size homes with more bedrooms and more bathrooms, (e.g. minimum 3+ bedrooms and 2+ bathrooms, 2+ car garage and additional amenities such as den/fourth bedroom or porch or superior architecture) suitable for families with children. Senior Housing • Promote and facilitate more housing options for seniors. Land Use • Planning Goals: o Use infill and redevelopment opportunities to help meet housing goals. o Promote higher density housing near transit corridors & employment centers. o Encourage housing density in commercial mixed use districts. • Explore and, if appropriate promote ordinances to allow development of non- traditional housing types and increased density in single family neighborhood that is compatible with surrounding neighborhood. • Explore and promote reclassification of non-residential properties and designate for housing and other purposes. City Council Study Session Discussion Item: 072307 - 5 - Preliminary 2008 Budget Page 1 5. Preliminary 2008 Budget Finance PURPOSE OF DISCUSSION: This discussion will assist the City Council and City Staff in setting expectations for the preliminary budget work session on August 13. We will talk about the levy process, initial figures for taxable valuation growth, and the acceptable range of tax levy increase. Our review will focus on tax-supported budgets. During the study session staff will provide a very preliminary summary of the proposed 2008 tax supported budgets (General Fund and Park and Recreation Fund) BACKGROUND: Levy Process The tax levy process has a very long cycle in Minnesota. The City starts preparing budget documents for the next fiscal year in May - before the audit from the prior fiscal year is complete. Departments work on those budgets into July before they are sent to the Finance Department. The City Manager and Finance Director then review the requests and bring a proposed budget to the Council for review in August. Our preliminary tax levy must be adopted by September 15 and transmitted to Hennepin County. This levy sets the maximum amount of property taxes for the next year. The Council can reduce the final property tax levy but may not raise it. The levy information is combined with the levies from other overlapping jurisdictions by the County for inclusion in the Truth-in-Taxation (T-n-T) notices that are mailed to property owners in November. Between September and November the Council reviews the proposed budget and may make any changes that it feels are necessary. In December, a T-n-T hearing is held to receive public input regarding the budget and tax levy prior to adoption by the Council. No action is allowed to be taken at that meeting. A week later the Council may adopt the final budget and tax levy, which must be transmitted to the County by December 27 this year. An entity may avoid having a T-n-T hearing any year in which their levy increases less than a benchmark set by the Department of Revenue – 4.2853% for 2007. Taxable Valuation Growth A big part of the preliminary budget process is determining the impact of the proposed levy on taxpayers. That requires getting an estimate of taxable tax capacity for the entire city. We have some of that information available in our Assessing department. For taxes payable in 2008, the city’s taxable market values have increased by 7.6%. Unfortunately, that value increase doesn’t fall straight to our bottom line for general property tax purposes. Most of the new construction has occurred in Tax Increment Financing (TIF) Districts. The city only receives the base value taxes of the property (taxable value prior to redevelopment). The increment (difference between the base value taxes and the current taxes) is deposited to special accounts to pay off the qualified expenditures incurred in by the project. We do not have the information on TIF available in-house. Hennepin County usually provides the computer runs in mid to late August. We should be able to provide approximate tax impacts on a range of property values after we know the amount of captured value in the TIF districts. City Council Study Session Discussion Item: 072307 - 5 - Preliminary 2008 Budget Page 2 Range of Tax Levy Increase The city budget has limited revenue sources other than property taxes. Unless we were to create new revenue streams (e.g. street light utility fee), those other revenues are estimated to be essentially unchanged in total compared to the 2007 budget. While we will review our fees this year, any increases will have a very modest impact on total revenues. That leaves the burden of covering any spending increases to the property tax. The budget for the operations budget is driven primarily by wage and benefit costs. We have a 3% wage increase budgeted for 2008. Because recently hired employees receive step increases, the salary area always increases more than the stated figure. For 2008, the increase is approximately 3.67%. The only way to eliminate that anomaly is to budget the top step salary level for each employee regardless of where they may fall in the pay range. This method would slightly overstate our salary expense, but would allow the stated salary increase to match the change in the budget. A lot of our other costs are energy related such as heating, electrical, gasoline, diesel, and blacktop. That means our average costs are going up faster than inflation while our revenue sources are essentially flat except for property taxes. Just doing the math, with a 4.25% expenditure increase on a roughly $27,500,000 budget ($1,168,750) and dividing by this year’s taxes ($19,626,124) leaves us with a 5.95% increase in our levy for providing the same baseline services. The Park & Recreation funds have experienced similar expenditure growth. They will also need some additional tax levy to provide the same level of service. For 2008, our review of debt service levies for general obligation (GO) bonds shows no increase is necessary. The 2005A bond step increases were completed with the 2007 budget. Staff is recommending no tax levy increase at this time for Pavement Management or the Park Improvement Fund for 2008. We will discuss potential increases during the 2009 budget after we have completed the long-range financial planning process. POSSIBLE DISCUSSION QUESTIONS: 1. What amount of tax levy increase will the City Council support as a preliminary maximum for Truth in Taxation levy? 2. Are there specific new programs or services that the City Council would like included in the preliminary budget? 3. Is Council interested in staff exploring other revenue enhancements? An example would be street light utility fees. Prepared by: Bruce DeJong, Finance Director Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 1 6. Vision Update Administrative Services PURPOSE OF DISCUSSION: The purpose of this discussion is to update the Council on activities related to Vision SLP and the 18-Month Strategic Directions the City Council adopted on March 19, 2007. Reports will be presented quarterly, with the next update for Council scheduled for November, 2007. BACKGROUND: Putting the ideas of Vision into action is a journey. The first step for the City Manager was to communicate the results of Vision and the 18-Month Strategic Directions to staff and the community. We believe that it is very important to make sure that those who work on Vision first understand what was adopted by Council in March. We have been working with staff to put together a structure for communication and action to help support activities. When handling programs, projects and activities, we have already started looking at what we do through the eyes of Vision and the 18 Month guide. Staff is spreading the word, working with others in teams and connecting with others in all departments to carry out Vision activities. The Vision report is out to the community and the Vision partners will accept the results of the Visioning process by the end of July. As you may expect, some funds may be needed to carry out various Vision related activities. As we are putting together the 2008 budget recommendations, staff is reviewing Vision budget needs. These will be presented to Council during the regular budget process. The Details – Building the foundation to allow staff to work on Vision In order to work and track Vision activities, we found the need to set up a formal structure. After discussions with Department Heads and Supervisors, we set up teams to work in the four areas of Strategic Direction adopted by the Council and to work on the focus areas under each of these four main areas. In the attached July 2007 Activities Update for the 18-month Strategic Directions Guide you will see teams set up with “Strategic Direction Leaders” and “Action Champions”. The Strategic Direction Leader (SDL) is the individual who will lead one of the four major Strategic Direction areas. Under three of the four areas, the Council identified focus areas related to the main topic. For example, John Luse, Police Chief, is the SDL for the first Strategic Direction area - “St Louis Park is committed to being a connected and engaged community”. Each of the focus areas under this have Action Champions to lead this area. The responsibility of the SDL is to make sure the Action Champions are moving Vision activities forward in a strategic and planned manner. The SDL also connects with the City Manager on a regular basis to provide updates and get guidance as needed for that Vision. SDLs work with Action Champions on activities, communication and reports. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 2 The responsibility of the Action Champion is to lead a focus area. They may create teams of staff members to help with work and to connect activities throughout the city. Action Champions are responsible for keeping SDLs informed of activities and providing reports as needed. SDLs and Action Champions will also look into the Vision Workbook documents for guidance when following through with implementing the 18-month Guide. Action Champion Teams may be formed to work with others on a focus area. Teams may also choose to invite key people to specific meetings to discuss pertinent items on a regular or as needed basis. In some cases, an Action Champion may not work with a team. Their task may involve research and will gather resources from others as needed. Status Report - What are the SDLs, Action Champions and Teams doing The attached report is a status update of activities from all areas of focus under the four major Strategic Directions. The Vision Journey - What have we been doing up to this point Below is the background and timeline of events showing our Vision process to date: 2005: • Bridget Gothberg, Organizational Development worked with all partners, staff and consultants on the appreciative inquiry process for Vision. • Staff worked with consultants from Mobius on the Vision process. • Groups of community partners were gathered to reach out to expand and deepen the Visioning process for the City of St. Louis Park. • McKnight awarded a grant to the City for Vision. 2006: • Hundreds of people meet and had conversations on Vision goals and Challenging possibilities. • Town Summit held to review data obtained from Vision appreciative inquiry interviews and set direction for next Vision steps (February). • Vision Action Teams were formed around eight specific areas and were asked to take the information from the discussions on Challenging Possibilities, do additional research if needed, and develop recommended goals and actions steps for our Vision through 2016. • Vision Action Teams developed the Book of Dreams (November). • The Action teams created a Vision Workbook with recommendations and goals in the eight areas (November). • Under the leadership of Jim Brimeyer, the Vision Action Teams completed their work and submitted their reports to the community partners (November). • The city hosted the community Vision Celebration and expressed thanks and appreciation for the work of the Vision Action Teams. Their work in this process was successfully completed (November). St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 3 2007: • Council participated in a workshop and discussed, in detail, the results of the community visioning process. An 18-month Vision Strategic Directions guide was developed as a result of the discussion and information in the Vision Workbook (February). • Council formally received the 2006 Vision St. Louis Park recommendations and adopted the St. Louis Park Strategic Directions 18-month Guide (March). • The City Manager held meetings with Department Heads to discuss Vision and implementation of the 18-month guide (April). • The City Manager held meetings with Supervisors to discuss Vision and the 18-month guide. The purpose was to make sure supervisors understood the Vision process and to answer questions they had regarding the new Vision and guide. Supervisors were given direction to have conversations with staff about Vision and the 18-month guide (April). • Vision communications were developed including creation of the Vision SLP Report to the Community (April-June). • Tom Harmening, City Manager, was asked to write an article for the League of Minnesota Cities publication. Vision St. Louis Park – Setting Your Sights on the Future This article was published and distributed to all cities in Minnesota through the League (April). • St. Louis Park received award from the LMC and AMM on the Vision process. (April) • Staff presented an overview of the St Louis Park visioning process to other cities at the Transforming Local Government Conference - Alliance for Innovation. The City was sought out to present this concept because it was considered one most innovative and unique visioning activities that a city has successfully completed (June). • A report on Vision and the 18-Month Strategic Directions were presented to our partners in the visioning process - St. Louis Park School Board and TwinWest Chamber. Park Nicollet is scheduled to be presented to in July (May-July). • Staff developed the concept of forming teams to work on concepts, programs and activities. After conversations with Department Heads, it was determined that the four main areas in the Vision 18 Month Strategic Directions Guide would each have a Strategic Direction Leader (SDL). Leaders were also designated as Action Champions for each focus area (each bullet). Significant staff time has been used in meeting and determining the best method to help with ideas, action and coordination in our Vision journey (May-June). • SDLs and Action Champions have met several times and are forming Action Champion Teams consisting of staff throughout the organization to assist in carrying out the direction provided by Council and reporting back to the City Manager (June-July). • First quarterly update on our Vision activities is presented to Council (July 23). • Our journey continues. What’s Next As our journey continues, staff and Vision Action Teams will continue with their work on Vision and the strategic directions. This will include the following:  SDLs work with Vision Action Champions on their focus area.  Action Champions work with their team members on activities.  SDLs work with and update the City Manager on Vision activities.  Staff is reviewing funding needs and will incorporate requests in the 2008 budget process. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 4  Creation and implementation of Vision Scorecard to track our journey, activities and actions related to the strategic direction.  All staff on Vision Action Teams come together on October 2 for updates and direction.  Continued recording of Vision activities.  Continued communication with all city staff on Vision. Reports on Vision are planned for Council as follows: 2007: Quarterly reports presented at second study sessions in July and November 2008: Quarterly reports presented at second study sessions in March and July 18-month report due September 2008 Attachments: Strategic Direction 18 Month Guide Vision Status Update Prepared by: Nancy Gohman, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 5 St. Louis Park Strategic Directions 18 Month Guide Adopted March 19, 2007 St. Louis Park is committed to being a connected and engaged community. Focus will be on: • Conducting research to determine what makes a neighborhood organization strong, viable and sustainable with an aim toward increasing and strengthening neighborhoods. • Developing an expanded and organized network of sidewalks and trails. • Promoting regional transportation issues and related dedicated funding sources affecting St. Louis Park including but not limited to Hwy. 100 and SWLRT. • Evaluating and investigating additional north/south transportation options for the community. • Increasing use of new and existing gathering places and ensuring accessibility throughout the community. • Exploring creation of a multi-use civic center, including indoor/winter use. • Directing the Human Rights Commission to examine the Diversity section of Vision St. Louis Park and develop goals/recommendations for actions St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. Focus will be on: • Expanding energy efficiencies in the City’s operations. • Educating staff and the public on environmental consciousness, stewardship and best practices. • Working in areas such as the rehab loan program, development projects, permits etc, encourage (and provide incentives where appropriate) green building design (LEED), creation of open spaces, environmental innovations etc. • Preserving, enhancing and providing good stewardship of our parks. • Investigating the need and purpose for an energy/environmental commission. St. Louis Park is committed to providing a well-maintained and diverse housing stock. Focus will be on: • Remodeling and expanding move-up, single-family, owner-occupied homes. • Property maintenance to foster quality housing and community aesthetics. • Working towards affordable single-family home ownership throughout the city. St. Louis Park is committed to promoting and integrating arts, culture, and community aesthetics in all City initiatives, including implementation where appropriate. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 6 St. Louis Park Strategic Directions 18 Month Guide July 2007 Activity Update ST. LOUIS PARK IS COMMITTED TO BEING A CONNECTED AND ENGAGED COMMUNITY Strategic Direction Leader: John Luse FOCUS AREA Conducting research to determine what makes a neighborhood organization strong, viable and sustainable with an aim toward increasing and strengthening neighborhoods. Asset Champion: Marney Olson Action Team Members: Other departments as needed. Summary of Activities-to-Date Attended two Community and Neighborhood Revitalization courses in May, 2007 presented by NeighborWorks America. The courses were “Essential Tools of the Trade: Neighborhood Analysis, Visioning and Planning for Action” and a second course titled “Getting Things Done in Neighborhoods through Strategic Collaborations”. Met with Community Development on neighborhood comprehensive plan and will continue to work with other departments as consultants as I continue this research. Researching other cities that have Neighborhood Revitalization Programs and working on getting contacts with these NRP groups to learn from their research. Describe Upcoming Activities/Next Steps Continue the research of other cities and continue working with St. Louis Park city departments. Research how St. Louis Park got started working with neighborhood associations. How and When will these Steps/Activities be Accomplished This research will be ongoing as I work with other cities and departments to research what makes a neighborhood organization strong, viable and sustainable. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 7 ST. LOUIS PARK IS COMMITTED TO BEING A CONNECTED AND ENGAGED COMMUNITY Strategic Direction Leader: John Luse FOCUS AREA Developing an expanded and organized network of sidewalks and trails. Asset Champion: Sean Walther Action Team Members: Scott Brink, Public Works/Engineering.; Rick Beane, Park & Recreation; Others? Summary of Activities-to-Date Active Community Planning Initiative (July, 2006)  City applies for planning funding to advance sidewalk and trail planning, fitness goals  BlueCross BlueShield of Minnesota announces St. Louis Park will receive funding through its Prevention Minnesota program (see attached press release)  SLP proposal primarily updates bicycle and pedestrian system plans City hires SRF Consulting Group to assist with Active Community Planning Initiative (February, 2007). Active Community Citizen Advisory Committee (April, 2007-June 30, 2007)  City Council appoints committee members on April 9, 2006  Provides early direction to the planning process, evaluates public input, suggests priorities, and will make recommendations  Met April 19, 2007 and May 30, 2007  Completed goals exercise on June 30, 2007 Community Workshop (May 17, 2007)  35 citizens provide input on desired improvements to the sidewalk and trails system Online Questionnaire  210 citizens respond to the questionnaire between May 17 and June 30, 2007  Summary report of citizen responses (coming soon) Describe Upcoming Activities/Next Steps  Compile and report results of the Online Questionnaires and CAC Committee planning goals  Prepare plan outline, begin drafting goal and policy language, sidewalk and trail plans  Schedule a technical review meeting  Set date for next Community Advisory Committee meeting  Set date for Community Open House St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 8 How and When will these Steps/Activities be Accomplished Compile and report results of the Online Questionnaires and CAC Committee planning goals  SRF and city staff will summarize the data  SRF will report results to CAC members  City staff will post results of the Online Questionnaire on City website 7/2-7/13 Prepare plan outline, begin drafting goal and policy language, sidewalk and trail plans  SRF Consulting is responsible for preparing the document  City staff will provide direction and assistance to SRF Consulting Group 7/13- 8/15 Staff will contact the following representatives to schedule technical review  Mpls, Golden Valley, Plymouth, Minnetonka, Hopkins, Edina, Hennepin County, Three Rivers Park District  U of M Metropolitan Design Center (Blue Cross Blue Shield Technical Assistance provider)  Park Nicollet 7/9-7/20 Set date for next Community Advisory Committee meeting  Contact Staff, Consultant, CAC members with possible dates  Send “hold the date” notice By 7/18 Set date for Community Open House  Coordinate with consultant, CAC members  Post date on website By 7/18 Other Attachments: BCBS Press Release Active Living, Sidewalks and Trails – Project Process Active Living, Sidewalks and Trails – Project Schedule Active Living, Sidewalks and Trails – Project Organization Chart St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 9 NEWS RELEASE FOR MORE INFORMATION: Karen Lyons 651-662-1415 Karl Oestreich 651-662-1502 Blue Cross Announces Finalists for Active Community Funding Funding through Prevention Minnesota supports community-led efforts to adopt community design strategies that help residents incorporate physical activity into daily routines. EAGAN, Minn. (July 26, 2006) — Blue Cross and Blue Shield of Minnesota (Blue Cross) has announced the selection of 11 proposals for two programs that will help Minnesota city and county governments plan their communities to better support physically active lifestyles. The two programs — Active Community Planning and Active Community Assessment & Engagement — are part of Prevention Minnesota, Blue Cross’ long-term health initiative to improve the health of all Minnesotans. Prevention Minnesota tackles preventable heart disease and cancers by addressing their root causes — tobacco use, physical inactivity, and unhealthy eating. “Physical inactivity is one of the top causes of preventable death and disability in Minnesota,” said Marc Manley, M.D., vice president and medical director of population health at Blue Cross. “As more people recognize the need to build physical activity into their daily lives to improve their overall health, our environments need to support that choice. For example, safe and attractive pedestrian and bicycle routes can make it easier for people to choose active transportation for commuting, daily chores and recreation.” continued Manley. “It’s all about improving the health of Minnesotans, and we’re pleased that counties and municipalities are eager to plan for active community environments so their residents have a choice.” The selected projects emerged from a competitive Request for Proposals (RFP) process. Each eligible application went through a two-part expert review process, and funding is still contingent on successful contract negotiation. The following applicants were selected for the Active Community Planning funding. They will be incorporating active living principles into their comprehensive plans, which govern issues such as land use, housing, and transportation. • City of Arden Hills • City of Bloomington — more — St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 10 Blue Cross announces funding for Active Community Design Funding /Page 2 • City of Eden Prairie • City of St. Louis Park • City of St. Paul • City of St. Paul Park • City of Two Harbors • Ramsey County The following applicants were selected for Active Community Assessment & Engagement funding. They will be working with community stakeholders about active living principles and help them apply those principles to their community planning processes. • Arrowhead Regional Development Commission/Northeastern Minnesota Obesity Prevention Project • Dakota County • Hennepin County Active Community Planning and Active Community Assessment & Engagement funding is part of a larger community funding initiative by Blue Cross’ Prevention Minnesota. Communities on the Move projects encourage regular physical activity among insufficiently active adults, and Communities for Healthy Air proj ects support community-led efforts to reduce exposure to secondhand smoke in the state. Communities on the Move is still accepting proposals through September and plans to fund an additional 20-50 projects. Funding for all these programs in 2006 will total approximately $5.8 million. Community funding complements Prevention Minnesota’s other core strategies, which include policy change, clinical initiatives, public awareness campaigns and outreach to high-risk groups. Prevention Minnesota’s broad-based approach follows the strategic guidance of the Centers for Disease Control and Prevention, which has cited community programs as an essential part of a comprehensive health improvement program. For more information visit www.preventionminnesota.com. Blue Cross and Blue Shield of Minnesota, with headquarters in the St. Paul suburb of Eagan, was chartered in 1933 as Minnesota’s first health plan and continues to carry out its charter mission today: to promote a wider, more economical and timely availability of health services for the people of Minnesota. A not-for-profit, taxable organization, Blue Cross is the largest health plan based in Minnesota, covering 2.7 million members in Minnesota and nationally through its health plans or plans administered by its affiliated companies. Blue Cross and Blue Shield of Minnesota is an independent licensee of the Blue Cross and Blue Shield Association, headquartered in Chicago. Go to www.bluecrossmn.com to learn more about Blue Cross and Blue Shield of Minnesota. —30— St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 11 St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 12 St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 13 St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 14 ST. LOUIS PARK IS COMMITTED TO BEING A CONNECTED AND ENGAGED COMMUNITY Strategic Direction Leader: John Luse FOCUS AREA Promoting regional transportation issues and related dedicated funding sources affecting St. Louis Park including, but not limited to, Hwy. 100 and SWLRT. Asset Champion: Marcia Honold Action Team Members: Tom Harmening, Administrative Services; Mike Rardin, Public Works; Meg McMonigal, Community Development; Scott Brink, Public Works/Engineering.; Rick Birno, Park & Recreation Summary of Activities-to-Date Submitted bonding requests to the State Department of Finance for TH 7 & Wooddale and the TH 100 Full Build Project, $9million and $10 million respectively. On July 5, held strategy meetings with elected officials on key transportation projects and toured elected officials and other delegates to key transportation sites in SLP. Press release on the tour was sent on Friday, July 6. A summary of the tour will be inserted into the next Park Perspective. Thank you letters sent to participants on the tour and meeting (elected officials). Council adopted resolutions of support for both bonding requests on July 16 that were forwarded to the Department of Finance. Describe Upcoming Activities/Next Steps Waiting for announcement on the Federal Transportation Bill and the Glencoe RR Mitigation Project. Washington D.C. legislative trip in October in coordination with travel for the 100 Best Forum with Mayor Jacobs. How and When will these Steps/Activities be Accomplished With assistance from staff and our legislative strategists St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 15 ST. LOUIS PARK IS COMMITTED TO BEING A CONNECTED AND ENGAGED COMMUNITY Strategic Direction Leader: John Luse FOCUS AREA Evaluating and investigating additional north/south transportation options for the community. Asset Champion: Scott Brink Action Team Members: Sean Walter, Community Development (still filling out remainder of team) Summary of Activities-to-Date Evaluate broad picture – what is the problem/issue in general and begin breaking down into smaller issues Evaluate and discuss known issues of focus area through sidewalk and trail planning update (healthy communities initiative) and Highway 100, TH 7/Wooddale, TH 7/Louisiana and other current project and planning activities. Evaluate information (citizen input and other) from previous vision activity. Describe Upcoming Activities/Next Steps Complete committee. Provide agenda and hold committee meeting (brainstorming). Determine next steps/courses of action. How and When will these Steps/Activities be Accomplished Will not know for certain until committee “brainstorming” occurs. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 16 ST. LOUIS PARK IS COMMITTED TO BEING A CONNECTED AND ENGAGED COMMUNITY Strategic Direction Leader: John Luse FOCUS AREA Increasing use of new and existing gathering places and ensuring accessibility throughout the community. Asset Champion: Meg McMonigal Action Team Members: Not yet determined Summary of Activities-to-Date Began creating an inventory of gathering places: Public facilities including city, school, county, etc., owned properties Private schools, churches and synagogues, cultural facilities Retail, dining and lodging facilities Describe Upcoming Activities/Next Steps Inventory additional private facilities with rooms open for public use (Methodist Hospital, for example) Inventory formal gathering activities: Organized groups Programs Other Discuss idea of using citywide survey in 2008 to determine interest in gathering spaces and activities. Determine true interest in places and need for additional activities. How and When will these Steps/Activities be Accomplished Completing inventories currently – expect completion by October 1, 2007. . Will work with Marcia on survey – Fall 2007 St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 17 ST. LOUIS PARK IS COMMITTED TO BEING A CONNECTED AND ENGAGED COMMUNITY Strategic Direction Leader: John Luse FOCUS AREA Exploring creation of a multi-use civic center, including indoor/winter use. Asset Champion: Rick Birno Action Team Members: Craig Panning, Park & Recreation; Adam Fulton, Community Development; Darla Monson, Finance; Nate Graham, Information Resources; Ann Boettcher, Inspections; Jim Lombardi, Park & Recreation (still waiting to hear from George Foulkes, Mike Harcey, Ali Fosse, Cary Smith & Jim Olson) Summary of Activities-to-Date Organized Action Team Scheduled first Action Team meeting (7-19-07) Developed first meeting agenda Organized community survey results into civic center categories Finalized plans to attend civic center facility design school in early August Describe Upcoming Activities/Next Steps Set meeting schedule for Action Team Review community input Categorize input into high, medium and low options Identify expansion options and alternative locations Develop a list of partnership opportunities Organize off-site tour for Action Team Write/review document with civic center priorities and options for SDL Based on senior staff and council recommendations, begin working with consultant to develop formal proposal How and When will these Steps/Activities be Accomplished Working with the Action Team at the scheduled work sessions. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 18 ST. LOUIS PARK IS COMMITTED TO BEING A CONNECTED AND ENGAGED COMMUNITY Strategic Direction Leader: John Luse FOCUS AREA Directing the Human Rights Commission to examine the Diversity section of Vision St. Louis Park and develop goals/recommendations for actions. Asset Champion: Lori Dreier, Marney Olson Action Team Members: Human Rights Commissioners, Ali Fosse, Administrative Services/Human Resources. Summary of Activities-to-Date We reviewed the Diversity Action Team’s report from Vision St. Louis Park prior to the June Human Rights Commission (HRC) meeting. A copy of the report was given to the Human Rights Commissioners and we discussed the role of the HRC in developing goals/recommendations for action. Describe Upcoming Activities/Next Steps Further discussion and review of the report is on the agenda for the July HRC meeting. At this meeting, we will identify goals from the Vision report that are unclear and then seek clarification from the Diversity Action Team. We will also begin to evaluate and prioritize the goals. How and When will these Steps/Activities be Accomplished We will devote a portion of our HRC meetings which occur monthly to this task. Marney Olson and Lori Dreier will work on clarification of goals that are unclear prior to the August HRC meeting. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 19 ST. LOUIS PARK IS COMMITTED TO BEING A LEADER IN ENVIRONMENTAL STEWARDSHIP. WE WILL INCREASE ENVIRONMENTAL CONSCIOUSNESS AND RESPONSIBILITY IN ALL AREAS OF CITY BUSINESS Strategic Direction Leader: Nancy Gohman FOCUS AREA Expanding energy efficiencies in the City’s operations. Asset Champion: Brian Hoffman Action Team Members: Cary Smith, Fire; Craig Panning, Park & Recreation; John Altepeter, Inspections/Facilities Maintenance; Mark Hanson, Public Works/Operations, Mark Oestreich, Park & Recreation/Nature Center Summary of Activities-to-Date This team will be exploring the various areas in which energy efficiencies can be improved in all city operations. Describe Upcoming Activities/Next Steps Initial meetings will be determining information we currently have and center scope to pursue including vehicles, existing building audits, new building designs and alternative ways of improving energy efficiency. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 20 ST. LOUIS PARK IS COMMITTED TO BEING A LEADER IN ENVIRONMENTAL STEWARDSHIP. WE WILL INCREASE ENVIRONMENTAL CONSCIOUSNESS AND RESPONSIBILITY IN ALL AREAS OF CITY BUSINESS Strategic Direction Leader: Nancy Gohman FOCUS AREA Educating staff and the public on environmental consciousness, stewardship and best practices. Asset Champion: Jamie Zwilling Action Team Members: Mark Oestreich, Park & Rec. Nature Center and other Westwood Hills Nature Center staff as needed Summary of Activities-to-Date We evaluated our charge to educate and continue as leaders in environmental stewardship and decided that making the Westwood Hills Nature Center a showcase for the community would be an appropriate and exciting goal for this focus area. I discussed this idea with our SDL as well as the Parks and Recreation Director and we all agreed to move forward. Describe Upcoming Activities/Next Steps Next steps will be to meet with Mark Oestreich and discuss how best to organize this initiative (i.e. regular meetings, involvement of his staff, others, etc.) We will be discussing the Nature Center as it is today and what it could be in the future. We will then develop a communication plan to begin promoting all of the great things currently happening at the Nature Center, and brainstorm other tenets of this showcase. How and When will these Steps/Activities be Accomplished This initiative is not just one big event, but really a series of continuing pieces that will be moving all at the same time so some of this action will start soon, probably within the next few months. I anticipate that there will be new/enhanced publications, Web presence, video production and activities and programming planned. The timeline for these activities will be determined during the initial planning to be done over the next two months. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 21 ST. LOUIS PARK IS COMMITTED TO BEING A LEADER IN ENVIRONMENTAL STEWARDSHIP. WE WILL INCREASE ENVIRONMENTAL CONSCIOUSNESS AND RESPONSIBILITY IN ALL AREAS OF CITY BUSINESS Strategic Direction Leader: Nancy Gohman FOCUS AREA Working in areas such as the rehab loan program, development projects, permits etc, encourage (and provide incentives where appropriate) green building design (LEED), creation of open spaces, environmental innovations, etc. Asset Champion: Brian Hoffman Action Team Members: John Tilton, Inspections; Kimberly Bretza, Inspections; Adam Fulton, Community Development; Kathy Larsen, Community Development; Reg Dunlap, Information Resources Summary of Activities-to-Date Time to review the topic. A summation title for this working group, while not losing any of the specific potentials, may be modified to developing education, innovation and incentives for construction, development projects and rehabilitation programs. Describe Upcoming Activities/Next Steps We will be setting up meetings to consider the wide range of possibilities for new programs and integration of existing programs operated by the city. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 22 ST. LOUIS PARK IS COMMITTED TO BEING A LEADER IN ENVIRONMENTAL STEWARDSHIP. WE WILL INCREASE ENVIRONMENTAL CONSCIOUSNESS AND RESPONSIBILITY IN ALL AREAS OF CITY BUSINESS Strategic Direction Leader: Nancy Gohman FOCUS AREA Preserving, enhancing and providing good stewardship of our parks. Asset Champion: Rick Beane Action Team Members: Chad Kraayenbrink, Police; Jenny Buskey, Park & Recreation; Jim Thompson, Park & Recreation; Jim Vaughan, Park & Recreation; Mark Oestreich, Park & Recreation/Nature Center Summary of Activities-to-Date The action team members have agreed to be part of this process. I have printed copies of the Goals from the Vision CD to distribute to the members. Describe Upcoming Activities/Next Steps I plan on getting together in a week with this group of people to start to get their opinion of what this means to them. How and When will these Steps/Activities be Accomplished ASAP St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 23 ST. LOUIS PARK IS COMMITTED TO BEING A LEADER IN ENVIRONMENTAL STEWARDSHIP. WE WILL INCREASE ENVIRONMENTAL CONSCIOUSNESS AND RESPONSIBILITY IN ALL AREAS OF CITY BUSINESS Strategic Direction Leader: Nancy Gohman FOCUS AREA Investigating the need and purpose for an energy/environmental commission. Asset Champion: Marcia Honold Action Team Members: None named at this time. Summary of Activities-to-Date Have conducted research into what types of energy and/or environment commissions exist in other communities Describe Upcoming Activities/Next Steps Will continue to research and review this question. How and When will these Steps/Activities be Accomplished Fine tune research, meet with staff liaisons for Planning Commission and Park & Recreation Advisory Commission to learn more about possible need for a new and separate commission. When Will this be Done By September, 2007 St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 24 ST. LOUIS PARK IS COMMITTED TO PROVIDING A WELL-MAINTAINED AND DIVERSE HOUSING STOCK. Strategic Direction Leader: Kevin Locke FOCUS AREA Remodeling and expanding move-up, single-family, owner-occupied homes Asset Champion: Kathy Larsen Action Team Members: Michele Schnitker, Community Development/Housing; consulting staff from Public Works, Administrative Services, Housing Authority, Assessing, Zoning, Finance, Fire, Police Department Summary of Activities-to-Date Met with SDL, Kevin and Action Champion, Michele, to discuss overview of focus area within the strategic direction. Reviewed inventory of current ongoing activity that meets vision strategic direction/focus area. Planned initial brainstorming session with other staff to develop direction. Include Vision funds in 2008 budget. Describe Upcoming Activities/Next Steps Summer - Fall 2007 - Invite potential brainstormers to development sessions. The two housing focus areas will hold a joint session(s) with diverse city staff from Zoning, PW, Administrative Services, Police, Fire and Finance to review current housing programs and goals and review input from the Vision housing action team, interviews and community survey Summer – Fall 2007 - Meet with other municipalities, non-profits and businesses to review best practice activities that are currently being implemented by others. Compile list of other possibilities. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 25 ST. LOUIS PARK IS COMMITTED TO PROVIDING A WELL-MAINTAINED AND DIVERSE HOUSING STOCK. Strategic Direction Leader: Kevin Locke FOCUS AREA: HOUSING STOCK Property maintenance to foster quality housing and community aesthetics. Asset Champion: Manny Camilon Action Team Members: Possibly Sara Heling, Police and Dale Antonson, Fire, but not yet determined or Ok’d by their supervisors. I would also like someone from the City Forestry department. Summary of Activities-to-Date Began putting team together from Fire, Police and City Forestry department. Will put together a 5-7 question survey to distribute to housing staff, some long term residents and business owners. The survey will include questions regarding housing & aesthetics for the Park residents and ask people what visible things may need improvement – roads, trees, buildings and properties, signage, curb & gutters, walking paths, open space, store front maintenance, etc. It will also ask what other things that they see in other attractive communities that we might incorporate here in SLP. Describe Upcoming Activities/Next Steps We will meet and begin putting together this survey. We will also begin discussion on the purpose of our group and how this fits in the larger picture and why our group is important, etc. Give a little history on the residential maintenance projects, past and current, but emphasize our work will entail ALL of SLP, including commercial and industrial, streetscapes, parks, infrastructure, signs, tree trimming – just about anything aesthetic to the City! How and When will these Steps/Activities be Accomplished Through meetings, surveys, interviews and reporting back to strategic direction leader, Kevin Locke. May need postage for surveys to be send out : budget item. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 26 ST. LOUIS PARK IS COMMITTED TO PROVIDING A WELL-MAINTAINED AND DIVERSE HOUSING STOCK. Strategic Direction Leader: Kevin Locke FOCUS AREA: HOUSING STOCK Working towards affordable single-family home ownership throughout the city. Asset Champion: Michele Schnitker Action Team Members: Kathy Larsen, Community Development/Housing – Team Partner. Summary of Activities-to-Date Inventoried programs and initiatives already underway, forwarded to Marcia Honold. Meeting held with SDL, Kevin Locke and Kathy Larsen to discuss strategies for addressing focus areas. Submitted letter of support and additional information needed for West Hennepin Affordable Housing Land Trust (WHALHT) application to MHFA Consolidated Funding NOFA. Funding would support the purchase of Land Trust homeownership units in SLP. Met with Kim Bretza, Inspections, to discuss the duplex conversion program. Identified several neighborhood areas to focus efforts and several properties that might be possible prospects. Proposed 2008 budget include Housing Rehab funding targeted for Affordable Homeownership. Describe Upcoming Activities/Next Steps Summer 2007: Invite potential “brainstormers” to development sessions. The two housing focus areas will hold a joint session(s) with diverse city staff from Zoning, PW, Administrative Services, Police, Fire and Finance to review current housing programs and goals and review input from the Vision housing action team, interviews and community survey. Duplex Program: Follow-up on identification of potential targeted neighborhoods and specific properties. Work with WHAHLT on potential partnership. Review Section 8 Voucher Homeownership program/assess feasibility of implementing a program in SLP. Summer/Fall 2007: Meet with other municipalities, non-profits and businesses to review best practice activities that are currently being implemented by others. Compile list of other possibilities. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 27 ST. LOUIS PARK IS COMMITTED TO PROMOTING AND INTEGRATING ARTS, CULTURE AND COMMUNITY AESTHETICS IN ALL CITY INITIATIVES, INCLUDING IMPLEMENTATION WHERE APPROPRIATE Strategic Direction Leader: Cindy Walsh Action Team Members: Tom Harmening, Administrative Services; Marcia Honold, Administrative Services Summary of Activities-to-Date SLP Arts & Culture Grants have been awarded and we are waiting for contracts to come back from grantees. FORECAST Public Artworks and Denise Tennen have completed work on their 2006 grant award, which is the temporary art installation at the Hoigaard’s construction site fence. Julia Caston and Perspectives will unveil her art mural on August 6 or 7. This project was also a 2006 grant recipient, which means that we will be closing out the grant files for 2006 by September. Staff from the Westwood Hills Nature Center have been meeting with Friends of the Arts to design an artist in residence program. This would be a trial program funded through a grant we received to help kids gain appreciation for arts and nature. The artists selected to work on 36th street are in the design development phase of developing their art pieces. Describe Upcoming Activities/Next Steps We are working with the SLP Arts & Culture Review Committee to strengthen the application and review process. Tom Harmening and I will be meeting with Friends of the Arts to review their accomplishments over the past year and talk about our relationship and the money we provide to them for a staff position. How and When will these Steps/Activities be Accomplished We hope to get some local media coverage on the arts through our local paper and/or cable TV. St. Louis Park City Council Study Session Discussion Item: 072307 - 6 - Vision Update Page 28 DEFINITION OF ROLES: Strategic Direction Leader (SDL) - individual who will lead one of the 4 major areas. Action Champion - person assigned as lead for the bulleted area under a strategic direction. Action Champion Team - a member of the team who is working with others on a bulleted area under a strategic direction. Teams may also choose to invite key people to specific meetings to discuss pertinent items, i.e., perhaps a team is talking about budget and wants someone from Finance to come to one meeting to talk about money; a team may be talking about gathering places and invite the Community Education Director to a meeting, etc. In some cases, Action Champions may not work with a team. Their task may involve research and they will use people resources (city employees, community groups, etc.) to move the strategic direction forward. St. Louis Park City Council Study Session Written Report: 072307 - 7 - Volunteers In The Park Annual Report Page 1 7. 2007 Volunteers in the Park Annual Report Administrative Services PURPOSE OF REPORT: The Volunteers in the Park Annual Report provides information about the number and range of services provided by community residents and workers each year. Volunteer programming supports part of our city’s vision in our commitment “to being a connected and engaged community” and aiming to increase and strengthen neighborhoods. BACKGROUND: The City of St. Louis Park and the School District partner together to provide volunteer programming. The City of St. Louis Park supports the expenses of the City / School Volunteer office and staff by providing annual funding of $32,600. Volunteer Coordinator Sarah Krzesowiak implements the volunteer program by organizing youth and adult volunteer efforts in the schools, local social service agencies, and with city departments. Attachments: 2007 Volunteers in the Park Annual Report Prepared by: Ali Fosse, HR Coordinator Reviewed by: Nancy Gohman, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Written Report: 072307 - 7 - Volunteers In The Park Annual Report Page 2 Volunteers in the Park Annual Report 2006-2007 The Mission The mission of the V.I.P. program is to promote quality volunteerism in the City of St. Louis Park and in the St. Louis Park School District. V.I.P. Program Summary The program is responsible for the recruitment of hundreds of volunteers for the City and the Schools of St. Louis Park. It also ensures that the volunteers are appropriately screened, placed, and trained. Before a volunteer is placed in a position through the volunteer office, a risk management process is put into place. Volunteers are required to complete an application and list two references. Both references are checked and city volunteers also go through a Police Background check. The only volunteers who are not required to complete an application are parents who are working in their child’s school and people doing one time supervised activities. The Volunteer Office staff is dedicated to making sure that the volunteers it recruits and places are given the information and training they need to be successful at their volunteer positions. It conducts evaluations and makes adjustments to program materials, training and operation based on feedback from volunteers. Recognition of volunteers is also an important job of the V.I.P. office. It works with staff to insure that volunteers are thanked and recognized in a variety of ways. The dollar value for volunteer service as determined by the Independent Sector is $18.77 per hour. This rate is based on the hourly earnings for private non-agricultural workers as determined by the U.S. Bureau of Labor Statistics. That figure is then increased by 12% to estimate fringe benefits. The estimated value of volunteer services channeled through the V.I.P. Office is $293,309 (1475 volunteers with a total of 15,626.5 hours x $18.77). However, the value of volunteerism in St. Louis Park goes far beyond any monetary assessment; the benefits of volunteer time and commitment to our community and our schools are immeasurable. Via the V.I.P. Program, volunteers gain first hand knowledge about the city and schools, giving them an appreciation for the dedicated staff and the excellent work they do on behalf of the students and the community. St. Louis Park City Council Study Session Written Report: 072307 - 7 - Volunteers In The Park Annual Report Page 3 Adopt a Park/Garden 2006 Volunteers in this program are assigned to their neighborhood park and/or garden. Their job duties include patrolling and cleaning their park, weeding and tending the garden as well as reporting any damaged equipment, vandalism etc. to the park staff. # of volunteers – 100 (22 individuals, 12 families, 7 neighborhood, business or civic groups. Average of 3 per family and 6 per group.) # of parks and/or trail areas – 39 # of gardens –27 (note, some volunteers only tend a garden or a park, but not both – and some parks do not have gardens) # of hours – 906 Adult ELL and GED programs The goal of these dedicated volunteers is to provide extra one to one help and extra language practice for students in Community Education’s adult classes. # of volunteers - 26 # of hours – 1050 Art Appreciation Volunteers are trained to teach six lessons in art appreciation to children in grades K-6. American Art was the theme of this year’s curriculum. Note: at PSI the lessons are taught by the Amity staff. We train them and provide materials. # of volunteers - 58 # of classrooms - 93 # of students - 2232 # of presentations - 558 # of hours – 1229 Band Volunteers at Jr. High Community members join the band class for regular practice. # of volunteers -5 # of students – 150 # of hours –210 BRAVO! Classical music is the focus of the BRAVO! Program for grades 1-3 at Peter Hobart and Aquila. A music background is a requirement for BRAVO! volunteers. They are trained to teach six lessons that focus on classical music and composers. # of volunteers - 20 # of classrooms - 25 # of students - 575 # of presentations – 150 # of hours – 358 Classroom VIPs By working in the classroom these volunteers provide enrichment or reinforcement of the classroom curriculum. Most volunteers are in the school once a week helping students in the areas of reading, writing or math. # of volunteers - 76 # of students -1300 # of classes - 51 # of hours – 3330 Early Childhood Screening Volunteers assisted with registration and screening # of volunteers – 3 # of hours - 60 Election Judges 2006 High School students were recruited and trained to be precinct judges for the November 7, 2006 general election. # of volunteers – 52 # of hours - 520 ELL (English Language Learners) Volunteers Volunteers help students practice their English verbal and written skills. They also assist students in learning about American culture and customs. # of volunteers - 11 # of students - 13 # of hours – 234 Event Judges Volunteers play a key role in several High School programs including mock interviews, judges for DECA and also as judges for the science fair at Cedar Manor. # of volunteers - 73 # of hours - 346 St. Louis Park City Council Study Session Written Report: 072307 - 7 - Volunteers In The Park Annual Report Page 4 Family Fishing Day - June 17, 2006 Assisted the Park and Rec in recruiting volunteers for the Family Fishing Day held at Wolfe Park. # of volunteers – 4 # of hours – 10 Garden Planting Volunteers – 2006 There are 40 flowerbeds in 30 locations in St. Louis Park. In May, volunteers work with city staff to plant over 7000 flowers. 3 groups, 2 families and 24 individuals planted flowers. # of volunteers – 43 # of hours - 129 Goblin March and Boogie Concert 2006 Volunteers work at this Halloween event held at the Rec Center which is geared for young children. # of volunteers – 25 # of hours – 62 Halloween Party 2006-Westwood Hills Nature Ctr Volunteers work before, during and after the annual Halloween Party. They help with set-up, work the nights of the party and help with clean-up. The V.I.P. office recruits, places, schedules and thanks the party volunteers. # of volunteers –32 for pre-party set up help -74per night for the party and many stayed late for clean up. # of hours – 106 for set up help 602for the party 708 total hours Kids Place Student Volunteers for summer 2006 Students ages 14 and older volunteer in the SLP Community Ed Kids Place Program for the summer. # of volunteers – 8 # of hours – 980 Literacy 1st Volunteers are trained and receive information specific to working with beginning readers. They spend 1-1 1/2 hours in the classroom during literacy time. # of volunteers – 19 # of classrooms –15 # of students - 742 # of hours – 613 Monarch Butterfly Monitors Volunteers were recruited to monitor the life cycle of Monarchs through a program at Westwood Nature Center. # of volunteers – 4 families/individuals # of hours – 56 Math Program Volunteers help once a week in 4th or 5th grade Math classes at Susan Lindgren and Cedar Manor schools. # of volunteers – 14 # of students – 250 # of hours – 515 Media Center/ Clerical Volunteers Volunteers assist in the schools media centers or offices. # of volunteers – 10 # of hours - 474 Park and Run Fun Run September 16, 2006 Volunteers helped by staffing the trails, assisting with registration and passing out “goodie bags.” # of volunteers – 12 # of hours - 24 Parktacular - 2006 Volunteers helped with the Parktacular Booth and parade. # of volunteers – 25 # of hours – 56 Pick up the Park 2006 Volunteers are students, local service groups and individuals. The goal of Pick up the Park is to get as much public space cleaned as possible before mid-May. # of volunteers – 663 # of parks cleaned – 25 (also cleaned were all the school playgrounds and surrounding areas and sections of the bike trail) # of bags of trash – 118 # of hours – 497 St. Louis Park City Council Study Session Written Report: 072307 - 7 - Volunteers In The Park Annual Report Page 5 Read Naturally at the Jr. High Volunteers were recruited to work one-to-one with students using a computer program designed to increase student reading proficiency. # of volunteers – 8 # of hours – 214 Resource Speakers Volunteers enriched the classroom curriculum by sharing their hobby, career or special interest with students. # of volunteers – 20 # of presentations – 66 # of hours – 35 Special Before and After School Reading Programs Start the Day Reading Program DoubleTree Hotel staff volunteer at Peter Hobart three mornings a week. Pi Beta Phi Alumni Club and Collegians Volunteered two days a week after school at Aquila # of volunteers – 22 # of hours - 199 Water Testing Volunteers 2006 Volunteers take water samples from area lakes every two weeks April through October. # of volunteers – 4 # of hours – 208 Westwood Hills Nature Center Regular Adult Volunteers 2006 Adult volunteers at Westwood Hills Nature Center assist the staff by helping with classes, working on maintenance projects, studying wildlife, maintaining the computer web site, and staffing the front desk between 11 and 1 almost every day so the staff can have lunch and run errands for the Center. # of volunteers – 27 # of hours – 1287.5 Breakfast Buddies Mentorship Program Volunteers meet with girls from the Junior High in a group, serving as positive adult role models and listeners as they explore a variety of interests and issues important to the students. # of volunteers -24 # of students - 55 # of hours - 422 Total number of hours -15,626.5 Total number of volunteers - 1475 -In addition to these programs, the V.I.P. assisted in placing the high school community service students in as classroom volunteers. -Most hours are estimated based on volunteer start date, schedule, and program, and include training and preparation time for some programs. Some volunteers participate in more than one program and are counted for each activity. St. Louis Park City Council Study Session Written Report: 072307 - 7 - Volunteers In The Park Annual Report Page 6 Highlights from 2006-2007  Recognition for volunteers happens throughout the year. In addition to specific letters of thanks, 2006-2007 volunteers received specially designed note pads, a thank you letter from the city maintenance staff and a gift went to all park volunteers at the end of the season, candy treats were in the schools for Valentine’s day and a coupon book along with a thank you from Superintendent Debra Bowers went in school baskets. Sarah also organized a special presentation (in conjunction with Benilde-St. Margaret’s School and the Community Ed Youth Services Program) for Volunteer Recognition week, featuring Nathan Dungan, the nationally known speaker on youth, money, and habits. It was held at the Recreation Center on April 25. Over 2500 people received a thank you and invitation; about 90 people attended.  The Volunteer Office worked to help facilitate a program between the Pi Beta Phi Alumni Club and Collegians and Aquila School. For five weeks in February and March, volunteers from the sorority worked one-to-one with students helping them practice and develop reading skills under the supervision of the after school Kids Place Staff. The program was a success for all the participants and we hope to work with the sorority again next year.  The Volunteer Office submitted articles for the city newsletter, school newsletters, the city web page and other publications highlighting various volunteer programs and recruiting for many activities.  Sarah Krzesowiak served on committees for Empty Bowls, the high school IT program and Bookmark in the Park representing both the school and the city.  This was the first year volunteers were recruited to help with the Park and Run, Fun Run held at Wolfe Park in September.  Sarah assisted the high school staff in finding a Somali woman to meet with Somali girls at the high school so that they could ask questions and discuss issues with a Somali adult.  The Volunteer Office worked with the St. Louis Park National Honor Society helping them with their group volunteer activities by making arrangements for them to help with the City Halloween Parties in the fall and with the Pick up the Park program in the spring.  The Volunteer Office recruited over 50 high school students who served as election judges on November 7, 2006. Each student attended a two-hour training and served an 8-hour shift as an election judge.  At the request of the Jr. High principal and reading staff, the Volunteer Office recruited and placed volunteers to work one-to-one with students using a computer program designed to increase student reading proficiency. St. Louis Park City Council Study Session Written Report: 072307 - 7 - Volunteers In The Park Annual Report Page 7  Members of the V.I.P. Advisory Council meet regularly to share information and discuss issues related to the volunteer programs. Members of the 2006-2007 V. I. P. Advisory Council were: Susan Benus Debbie Danielson Kathleen Huyck Ruth Kasdan Joan Monicatti Sharyll Smith Yvonne Thomas Anne Monique Vos Rapoport Sarah Zubke Sarah Krzesowiak, Program Coordinator, City and School of St. Louis Park Volunteers in the Park is a program in the department of Community Education, 952-928-6025, krzesowiak.sarah@slpschools.org St. Louis Park City Council Study Session Written Report: 072307 - 8 - Floodplain Update Park Nicollet LOMR Application Page 1 8. Floodplain Update: Park Nicollet LOMR Application Comm. Dev./Public Works PURPOSE OF REPORT: To update the City Council regarding the proposed Federal Emergency Management Agency (FEMA) flood map revisions and a recent Letter of Map Revision (LOMR) application to FEMA by Park Nicollet. BACKGROUND: FEMA is in the process of updating the Flood Insurance Rate Maps for all of Hennepin County. FEMA, Minnesota Department of Natural Resources (DNR), Hennepin County, Minnehaha Creek Watershed District (MCWD), City of St. Louis Park, and other local jurisdictions have been reviewing proposed changes. Park Nicollet has been following the map revision process, because the changes have a significant impact on the Methodist Hospital Campus and the design of the proposed Cancer Center addition. However, Park Nicollet’s desired construction schedule has spurred them to submit an application for a Letter of Map Revision (LOMR) in order to speed up FEMA’s review process for the area around the Methodist Hospital Campus. The changes to the map in St. Louis Park affect an entire Flood Insurance Rate Map panel (see attached map). The affected Flood Insurance Rate Map panel also extends into Edina and Hopkins. In St. Louis Park, approximately 160 properties are currently shown in the 100-year floodplain. If FEMA approves the LOMR, approximately 100 of those properties would no longer be within the 100-year floodplain (see attached map). After FEMA approves the LOMR, the City of St. Louis Park will need to amend the zoning ordinance and zoning map to be consistent with the approved Flood Insurance Rate Map. The City’s floodplain ordinance references specific map revision dates and the zoning map includes a floodplain overlay district. We expect to proceed with the zoning ordinance and map amendments concurrently with the FEMA review process, with final approval occurring after the FEMA process concludes. The City and/or Park Nicollet might hold an informational meeting about the proposed changes in August. The Planning Commission will hold a public hearing on the zoning ordinance and zoning map amendments on either August 15 or September 4. The ordinance and map amendments could tentatively come to the City Council for consideration of the first reading in September. St. Louis Park City Council Study Session Written Report: 072307 - 8 - Floodplain Update Park Nicollet LOMR Application Page 2 SUMMARY: Park Nicollet applied for a Letter of Map Revision (LOMR) in order to speed up FEMA’s review process for the Flood Insurance Rate Map panel that includes the Methodist Hospital Campus. Staff anticipates FEMA will approve the LOMR, and that the notice of their decision could arrive in mid-September. The City may begin the zoning ordinance and zoning map amendment process in August, so that it runs concurrently with FEMA’ review process. Attachments: Copy of the FEMA Flood Insurance Rate Map Panel 27053C0361E Map of Proposed Floodplain Changes in St. Louis Park Prepared by: Sean Walther, Senior Planner Reviewed by: Scott Brink, City Engineer Meg McMonigal, Planning and Zoning Supervisor Kevin Locke, Community Development Director Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Written Report: 072307 - 8 - Floodplain Update Park Nicollet LOMR Application Page 3 St. Louis Park City Council Study Session Written Report: 072307 - 8 - Floodplain Update Park Nicollet LOMR Application Page 4 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 1 9. June 2007 Monthly Financial Report Finance PURPOSE: This report is designed to provide summary information regarding the overall level of revenues and expenditures in both the General Fund and the Park and Recreation fund. These funds should be a primary concern in analyzing the city’s financial health because they represent the discretionary use of tax levy dollars. For the first six months of the year, actual revenues and expenditures should generally run about 50% of the annual budget. Significant items that exceed the norm are highlighted below along with a general discussion of the cause for the variance. General Fund Expenditures: • Finance expenditures look high because some salary allocations have not been made for the year. Several Finance employees are allocated to the enterprise funds to cover the utility billing function. This department is below budget in other respects. • Community Development expenditures look high because some salary allocations have not been made for the year. Several Community Development employees are allocated to Housing and EDA activities. This department is below budget in other respects. • Community Outreach looks high because there is one large payment that is made annually to fund a school district outreach program. That $33,000 payment has been made for the year. This department is below budget in other respects. Parks and Recreation Expenditures: • Organized Recreation expenditures are higher due to the bulk of their activities occurring during the summer recreation season. Attachments: Monthly Financial Reports Prepared by: Bruce M. DeJong, Finance Director Approved by: Tom Harmening, City Manager St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 2 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 3 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 4 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 5 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 6 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 7 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 8 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 9 St. Louis Park City Council Study Session Written Report: 072307 - 9 - June 2007 Monthly Financial Report Page 10 St. Louis Park City Council Study Session Written Report: 072307 - 10 - Quarterly Investment Report Page 1 10. Quarterly Investment Report (April – June 2007) Finance PURPOSE OF REPORT: The purpose of this report is to update the City Council on the quarterly status of the various investment accounts that the city maintains. BACKGROUND: Our portfolio remains focused on short term cash flow needs, but Finance has locked in some longer term securities in order to bridge any potential downturn from the current rates. At June 30, we had a significant balance in the money market funds because of two large cash deposits. We received a partial tax settlement ($7 million) and the utility revenue bond proceeds ($4 million) at the end of the month. These proceeds have since been invested. A benchmark rate of return has not been established by our investment policy. Cities generally use a short horizon benchmark such as the two year Treasury (currently 4.84%) or some similar measure. Our current portfolio yield is roughly 4.69%. This is calculated by taking the yield times the current value for each investment and dividing the resulting amount by the total portfolio value. As investments purchased from 2003-2005 mature we will continue to replace them with higher yielding securities. Liquidity has been easy to maintain for last several months because we have a flat yield curve. This means that there is not much difference between investing for a long period of time or a short one. Our primary money market investment is the 4M Fund. It currently yields 4.93% with daily withdrawal privileges. This compares very well with the up to 4.96% yields that are available when five year investment options are considered and is about at our overall portfolio return. Investment totals by type are: Attachments: City Investments Prepared by: Bruce M. DeJong, Finance Director Approved by: Tom Harmening, City Manager 6/30/07 3/31/07 <1 Year 42% 31% 1-2 Years 21% 22% 2-3 Years 12% 17% >3 Years 24% 30% Commercial Paper 3,406,834.30 Agency Bonds 50,102 ,939.30 Money Market 17,664,977.27 St. Louis Park City Council Study Session Written Report: 072307 - 10 - Quarterly Investment Report Page 2 St. Louis Park City Council Study Session Written Report: 072307 - 10 - Quarterly Investment Report Page 3 St. Louis Park City Council Study Session Written Report: 072307 - 11 - ParkWiFi Update Page 1 11. ParkWiFi Update Information Resources PURPOSE OF REPORT: The purpose of this report is to update the City Council on the status of ParkWiFi. BACKGROUND: Since the last update on June 25, the most significant pieces of news are: (1) construction has progressed significantly on Phase 1 of ParkWiFi using Council direction and pole location criteria (2) to date, Xcel Energy has not indicated that we can use any Xcel poles for mounting radios, though Xcel continues to consider it, (3) Xcel is behind on getting electrical service to the few but critical locations needed in Phase 1, and (4) to meet contract requirements, ARINC has identified the need to add poles and radios in geographically challenging areas to provide coverage. With respect to lack of Xcel electrical service, we are able to use the backup batteries to power these devices on a temporary basis. As Council knows, City staff has also continued to deal with resident concerns with pole and radio locations and this has also contributed to Phase 1 delays. Phase 1 of the project includes the northeast section of the city – bounded by the east City limits, Brunswick Avenue on the west, the north City limits, and Minnetonka Boulevard on the south. Phase 1 also includes the triangle area east of Highway 100, south of Minnetonka Boulevard, and north of County Road 25. CURRENT SCHEDULE: This area was scheduled to go live July 21. Construction firm ARINC has stepped up the pace of construction and this has helped address some of the delays. At this time, we expect some subscribers in Phase 1 to be using the network by July 21. They are located primarily in the southwest area of Phase 1, where most testing and adjustments are being completed first. Following that area, we expect to move north, east, and west to substantially complete Phase 1 service availability by the end of July. This places this phase about 10 days behind schedule. Some pilot subscribers and pre-registered households and businesses have been notified and rescheduled for their site visit. Others have chosen to transition later due to personal vacation schedules. However, subscriber frustration with the delay is increasing. We are emphasizing the need to deliver a wireless system that works reliably as requested by residents and that this requires more attention, adjustments, and testing than anticipated. This has also been complicated by the Xcel energy service delay. COMPONENT BOX: Staff has also been working on options for changing the appearance of the white component boxes to brown to match the poles. The most promising option at this time is a brown metal shroud that would cover the sides of the box along with painting the bottom of the box brown. This metal shroud would allow necessary air flow, be made of heat-reflective aluminum, and be removable for maintenance. This appears to be a more cost-effective and safe approach to address this issue compared to installation of fans, the other primary option to create a brown appearance and keep components cool enough. Staff is currently awaiting a prototype. If all goes well, we should see most shrouds arrive in the next 6 weeks. St. Louis Park City Council Study Session Written Report: 072307 - 11 - ParkWiFi Update Page 2 HOSTING A POLE: We also continue to receive offers from residents to host a pole with solar panel on public right- of-way boulevard areas along their property. To the extent possible, we will include these sites in the final design of Phases 2 - 4. CURRENT STATUS: Construction continues with radios, batteries, and other components now being added to the poles and solar panels previously installed in Phase 1. In addition, 4 additional radio locations (as noted above) need to be installed. It is hoped that this will be the extent of additional radios in Phase 1; however, final field testing may reveal more locations. Additional poles and solar panels are currently being installed in the remainder of Phase 1, generally north of Twin Lakes and west of Highway 100. Council-approved pole design and location criteria continue to be used. Some people continue to express concern over the poles, but fewer than before Council approved the pole location and design criteria. Core network equipment is being fine tuned, some brochures have been printed, and pilot and pre-registered subscribers are being contacted to ensure they are aware of the current status and receive instructions on acquiring needed equipment. Staff wishes to complete the testing and provisioning of Phase 1 subscribers, especially current pilot and pre-registered subscribers, and refine service before more aggressively recruiting additional subscribers in Phase 1. The goal is to build a system that works, and working with an initial group of subscribers makes that process much more achievable. There is still much work left in Phase 1 as well as the other three phases. It is expected that project partners will continue to work hard the rest of this summer and fall. Prepared by: Clint Pires, Chief Information Officer Approved by: Tom Harmening, City Manager