HomeMy WebLinkAbout2007/10/08 - ADMIN - Agenda Packets - City Council - Study SessionCity Council Study Session
October 8, 2007
6:45 p.m.
Council Chambers
Discussion Items
1. 6:45 p.m. Future Study Session Agenda Planning
2. 6:50 p.m. Senior Community Services Dial-A-Ride Program
3. 7:00 p.m. 2008 Budget
4. 8:00 p.m. Proposed Reinvestment Assistance Program Policy; and
Redevelopment Contract with Anderson Builders
5. 8:45 p.m. Communications (verbal)
Written Reports
6. Tobacco Penalties
7. Electronic Agenda
8. St. Louis Park Active Community Planning Update
9. Active Living Hennepin County/Governor’s Fit City Information
9:00 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.
Meeting Date: October 8, 2007
Agenda Item #: 1
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
Future Study Session Agenda Planning
RECOMMENDED ACTION:
Council and the City Manager to set the agenda for the October 22, 2007 study session. Please
note that for October 22 it is proposed that a very short formal Council meeting be held
regarding the issuance of bonds for Park Nicollet
POLICY CONSIDERATION:
Does the Council agree with the agenda as proposed?
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 October 22.
FINANCIAL OR BUDGET CONSIDERATION:
None
VISION CONSIDERATION:
None
Attachments: Tentative Study Session Agenda for October 22, 2007
Prepared by: Marcia Honold, Management Assistant
Approved by: Tom Harmening, City Manager
Meeting of October 8, 2007 Page 2
Subject: Future Study Session Agenda Planning
Future Study Session Agenda Planning
Tentative Discussion Items
Monday, October 22, 2007 – 6:40 p.m. (after special Council meeting re: Park Nicollet
Bond issuance)
1. Future Study Session Agenda Planning – Administrative Services (5 minutes)
2. Friends of the Arts Update: 2007 Accomplishments, 2008 Goals – Parks & Recreation
(30 minutes)
Representatives from Friends of the Arts will provide Council with information about
their programs and goals.
3. Solid Waste Services and Contract/RFP Options – Public Works (45 minutes)
Public Works will present the solid waste survey results, optional new services and will
discuss next steps for the RFP process.
4. Wireless Update – Information Resources (30 minutes)
Staff and ARINC will provide Council with an update on St. Louis Park Wi-Fi.
5. Program Budget Discussion and 2008-2012 CIP – Finance (60 minutes)
This is the second of four planned budget discussions with Council, scheduled for study
sessions on October 8, October 22, November 8 and November 22. On October 22,
Administrative Services will discuss their proposed 2008 budget; Public Works & Parks
& Recreation staff will discuss the CIP.
6. Communications – Administrative Services (10 minutes)
Time for communications between staff and Council will be set aside on every study
session for the purposes of information sharing.
Reports:
• Duke TIF Request Update – Community Development
• Liquor Licenses for Establishments with Bowling Alleys – Administrative Services
• September 2007 Monthly Financial Report - Finance
• 3rd Quarter Investment Report - Finance
9:40 p.m. End of Meeting
Meeting Date: October 8, 2007
Agenda Item #: 2
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
Status Report on Senior Community Services Dial-a-Ride Transportation Program
RECOMMENDED ACTION:
While no formal action is to be taken at the study session, staff suggests that the City notify SCS
that the City is putting its participation in the program on hold until such time as current issues
are resolved.
POLICY CONSIDERATION:
Should the City continue to pursue partnering with nonprofit service agencies to provide Dial-a-
Ride services for the community?
BACKGROUND:
At the 04/16/2007 City Council meeting, the Council approved entering into a contract with
Senior Community Services (SCS) to provide $10,000 in funding to support a dial-a-ride
transportation program serving suburban Hennepin County residents that will eliminate current
boundaries between existing transportation programs and cities. The funding would cover an
initial contract period of 6 months originally anticipated to begin in July of 2007. Staff would
then review the performance of the program following the first six months of operation and
provide an update to the Council for determination regarding whether to continue to fund for
calendar year 2008.
When first approached by SCS in early 2007, the plan was to implement the program starting
July 1, 2007. Due to a delay in the installation of the software used for scheduling and
dispatching rides, and the training required to operate the software, implementation of the
program was pushed back to fall of 2007. The software is what is currently used by the
Metropolitan Council to operate their transportation programs. They are sharing the software
with a number of transportation providers, including SCS, as a means to save providers the cost
of purchasing dispatch software and to ease the capability of coordinating rides amongst multiple
service providers. The anticipated delay in implementation was noted at the 04/16/2007 Council
meeting and following Council discussion, it was decided to go ahead and approve the contract
with the understanding that the contract would not commence until the program was up and
running.
Current Status
The Metropolitan Council recently verified that implementation of the dispatch software has
been delayed due to the loss of a key partner agency that was providing the training required for
implementation of the software.
Furthermore, since the September 24 Manager’s Digest article on the status of the program, staff
was informed that the latest compliance audit conducted by the Metropolitan Council of SCS’s
five grant agreements for dial-a-ride transportation programs revealed multiple findings of
noncompliance in a number of areas related to the terms and conditions of the agreements. SCS
Meeting of October 8, 2007 Page 2
Subject: Senior Community Services Dial-A-Ride Program
is working with the Met Council to resolve the deficiencies but has notified the City that until
these issues are addressed, the implementation of the county wide dial-a-ride program is on hold.
This could impact SCS’s ability to provide transportation services to St. Louis Park. There is
also a possibility that since the county wide dial-a-ride program was being implemented as a
partnership between SCS and Prism, another transportation provider operating in the northern
part of the county; Prism may propose to move forward with implementation of the program
independent of SCS.
In light of the Metropolitan Council’s recent findings regarding the operation and management
of SCS’s current transportation programs, staff recommends that the Council revisit the City’s
commitment to participate in the county wide dial-a-ride Program if or when SCS is ready to
move forward with implementation. Staff will keep the Council informed regarding the
implementation status of the program and any related developments.
Despite the recent delays and developments related to SCS’s audit findings, the enhanced
transportation services that would be available to the community through the implementation of
a county wide dial-a-ride program would meet an identified need and provide another valuable
transportation option for St. Louis Park residents.
As reported at the April 2007 Council meeting, St. Louis Park is currently served by several
transportation programs, each operating independently. Although each of the programs provide
a valuable and needed service, program restrictions regarding service areas, ride destinations, age
requirements and inability to serve riders with mobility impairments limits the flexibility of the
programs. Existing transportation programs include:
• Metro Mobility: Large service area but rider must medically qualify in order to eligible.
Metro Mobility requires a 2 hour window for scheduling pick-ups. There is no restriction
on ride destination.
• STEP Volunteer Program: Medical appointments only and limited to one ride per
week, but will travel to most areas of the metro area. Rider must be able to transfer
themselves in and out of car; no wheelchairs but will allow a walker. Service is provided
by volunteer drivers utilizing their own vehicles.
• Jewish Family and Children Services (JFCS) Deikel Transportation Program:
Serves individuals over 60 years of age and they must be able to transfer themselves in
and out of car; no wheelchairs or heavy walkers. Also, must be assessed by JFCS Senior
Services for case management service needs. Medical appointments are a priority over
other appointments. The program serves the Minneapolis area, but some restrictions
apply.
It is anticipated that the existing programs will continue to operate and that they plan to support
and coordinate with each during periods of high ridership.
Annette Sandler, Family and Children Jewish Services NORC Program, Rita Kach, Lennox
Senior Program, Jackie Olafson, STEP, and Dorothy Karlson, Chair of the St. Louis Park Family
Collaborative Transportation Committee, all agree that a dial-a-ride transportation program
covering an expanded service area, that does not restrict ride destinations and that provides more
options for mobility impaired residents would be a positive addition to the community. All have
expressed their support for SCS’s proposed transportation program, but also indicate that the
existing programs do serve a specific need and that they anticipate continued operation.
Meeting of October 8, 2007 Page 3
Subject: Senior Community Services Dial-A-Ride Program
FINANCIAL OR BUDGET CONSIDERATION: At this time there is no financial
consideration. However, if the City should move forward and participate in the program, the
cost would be $10,000. The funding source was intended to be the Housing Rehab. Fund
VISION CONSIDERATION: The need for a variety of transportation modes allowing
residents and visitors to easily and inexpensively travel throughout the city and the entire metro
region was identified through the Visioning process as one of the City’s primary focus areas.
Creation of a county wide dial-a-ride program is consistent with many of the ideas and goals
proposed by the Visioning Transportation Action Team including:
• Creating a superior transportation system,
• Alleviate barriers,
• Transportation system should strive to be simple, convenient, safe and inexpensive for
everyone,
• All the transportation system components and modes should be integrated and designed
to support one another,
• Embrace existing and future technology to make transportation more convenient and cost
effective,
• Our transportation system is an innovative model for other communities, and
• Coordinate with neighboring cities’ transit efforts.
Prepared by: Michele Schnitker, Housing Supervisor
Reviewed by: Kevin Locke, Community Development Director
Approved by: Tom Harmening, City Manager
Meeting Date: October 8, 2007
Agenda Item #: 3
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
2008 Budget Discussion
RECOMMENDED ACTION:
Staff requests that the City Council discuss the activities and programs contained in the Police,
Fire, and Inspections budgets with the City Manager and department heads. This discussion is
intended to focus on the various programs in each department and the budget necessary to
accomplish those program activities. This discussion is not structured to be a line item budget
review.
POLICY CONSIDERATION:
Do the budgets adequately fund departmental activities? Are there specific questions that
Councilmembers want staff to follow-up on? Are there programs or services Council would like
to see added, deleted or changed.
BACKGROUND:
Representatives from the three public safety departments will be at the meeting on Monday to
discuss their budgets for 2008. At future study sessions all other department directors will attend
to provide an overview of their budgets as well
VISION CONSIDERATION:
Some line items in the budget have a relationship to vision related directives.
Attachments: Departmental Budget Summaries
Prepared by: Bruce DeJong, Finance Director
Approved by: Tom Harmening, City Manager
City of St. Louis Park
Staffing
Service Overview
Police Department
The mission of the police department is to provide citizens with quality service, professional conduct, and a safe
environment in which to live, work and learn. The police department responds to emergencies and investigates crime
and disorder in the community. In addition, the department works with the community to develop strategies for the
prevention of crime and disorder and the promotion of quality of life in our neighborhoods.
In 2008, the authorized sworn staffing of the police department will be maintained at 51 police officers, a ratio of 1.2 per
thousand population. The police department also has 18.5 full time non-sworn employees and 3 temporary, part-time
employees. Approximately 89% of the police department's operating budget is allocated to personal services.
Chief of Police
Deputy Chief
Support Services
Lieutenant
Patrol
Lieutenant
Records/Clerical
Office Manager
PSAP / Communications
Lead Dispatcher
Dispatchers (10)CSO CoordinatorPatrol Sergeants (6)
Patrol Officers (26)CSO’s / Cadets
(3)
Office Assistant (.5)Support Services
Sergeants (2)Community Liaison
Office
Assistant
III
Office
Assistant II
(4)
Patrol / Admin
Lieutenant
Support Services
Agent
Support Services
Officers (6)
School Liaison / Dare
(3)
Drug Task Force
Community Outreach
Officer
Chief of Police
Deputy Chief
Support Services
Lieutenant
Patrol
Lieutenant
Records/Clerical
Office Manager
PSAP / Communications
Lead Dispatcher
Dispatchers (10)CSO CoordinatorPatrol Sergeants (6)
Patrol Officers (26)CSO’s / Cadets
(3)
Office Assistant (.5)Support Services
Sergeants (2)Community Liaison
Office
Assistant
III
Office
Assistant II
(4)
Patrol / Admin
Lieutenant
Support Services
Agent
Support Services
Officers (6)
School Liaison / Dare
(3)
Drug Task Force
Community Outreach
Officer
65
City of St. Louis Park
Police Department
Budget Highlights
The police department's 2008 budget proposal contains several requests for new funding or increases in existing
categories. The following summary will outline and explain each request:
Police Overtime, $15,000 - This proposed increase will address changes imposed by the courts in the area of officers
reporting to court or being on standby during their time off which will increase our expenses in both categories. In
addition, this proposed increase will address a negotiated change in the new patrol officers' labor agreement which
increases the minimum amount of compensation officers receive for court appearances during time off.
Communications Overtime, $5,000 - This proposed increase is driven primarily by the acquisition of a new
communications van and will be shared by the City of Golden Valley using our contract formula. Dispatch staff having this
assignment responsibility will need orientation training when the communications van is put into service. Additionally,
training and incident deployment will likely lead to increased overtime costs for dispatch personnel staffing the
communications van.
Cleaning/Waste Removal Supplies, $5,000 - This proposed new funding will be used to make sure cleanup supplies are
available to victims of graffiti when requested or needed.
Safety/First Aid, $500 - The oxygen bottles carried in police vehicles are getting very old, prompting the need to
implement a rotation/replacement schedule which will ensure quality equipment and avoid the need to replace them all at
the same time.
Ammunition, $5,250 - This proposed increase addresses a projection from suppliers that our costs will increase from
$8,750 in 2007 to $14,000 in 2008. This increase is completely market driven and is not the result of training, operations
or other consumption strategies by the police department.
Property Room, $2,000 - This proposed increase addresses the annual supply needs following the installation of new
software in 2007. Periodic auctions and cash transfers to the General Fund provide revenue offsets to property room
costs.
Fax Machine, $1,100 - This proposed expenditure would replace a six-year old fax machine which has reached the end of
its useful life. We have evaluated purchasing versus leasing, including maintenance agreement costs, and find
purchasing to be the more economical route.
Police Equipment, $3,500 - This proposed increase addresses the upgrade and refurbishing of our Varda portable alarm
equipment so that it is in good repair and compatible with the 800 Mhz radio frequency we have migrated to. The Varda
alarm systems provide temporary and portable alarm service to any potential target for burglary or theft, based upon
previous victimization patterns or credible information. We own 3 Vardas and would like to upgrade one each year for the
next 3 years.
Repairs, $2,000 - This increase addresses the costs for occasional repairs to the exterior security/access system at the
police station and Excelsior and Grand substation.
Mobile/Portable Radio Access Fee, $22,000 - This proposed expense addresses the access fee imposed by Hennepin
County of $223 annually for all mobile and portable radios accessing the 800 Mhz system in Hennepin County. The fee is
per radio and the police department has a total of 98 mobile and portable radios.
66
City of St. Louis Park
2005 2006 2007 200
Expenditure Classification Actual Actual Adopted Proposed
Personal Services 5,115,427$ 5,543,241$ 5,965,982$ 6,185,321$
Supplies 103,206 105,474 170,050 189,950
Services & Other Charges 605,649 580,740 540,073 552,343
Capital Outlay - - - 97,000
Transfers Out - - - -
Other Expenses 65 679 500 600
Total Expenditures 5,824,347$ 6,230,134$ 6,676,605$ 7,025,214$
Summary of Actual & Budgeted Expenditures
2008 Budgeted Expenditures
Supplies
2.55%
Services
8.09%Other Expenses
0.01%
Personal Services
89.36%
Personal Services: All salary and benefit
expenditures
Supplies: Office, operational, general, and
non-capital
Services: Contractual services, insurance,
utilities, repairs
Capital Outlay: Equipment &
improvements
Other Expenses: Interest and bank
charges
Items Moved to CIP
Communications Fiber Path, $23,000 - The cities of St. Louis Park and Edina have explored sharing the cost of installing
a redundant fiber path for radio and network paths to LOGIS and Hennepin County Radio. Currently, each city has only
one path. This upgrade has been recommended by the Information Technology/Information Resources Departments for
both cities and will allow the radio and computer network systems to remain operational if one pathway is cut. The St.
Louis Park share for the project will not exceed $23,000 and a possible revenue offset has been identified and will be
explored further.
Capital Cost/Outlay - Police Shooting Range, $54,000 - The police shooting range has been in service since 1993 and
has required only routine care and maintenance during the past 14 years. However, the primary components of the range
system are reaching the end of their useful life. The proposed expenditure will cover all costs related to the removal and
replacement of the backstop, rail/drive carrier units and computer central system.
Capital Cost - WiFi cameras and equipment, $20,000 - This proposed new program would utilize the arrival of WiFi to
support camera systems that would monitor activity and behavior in parks, public places and other locations of specific
interest or concern. While planning for this program is preliminary at this time, discussions with Park and Recreation and
Information Resources support implementation in 2008. This equipment will be capable of daytime and nighttime
monitoring and will involve a combination of fixed and portable cameras during the trial and error period of the program.
Vision Process, $10,000 - This proposed new expenditure is to address any costs which might come up during the Vision
Action Team process and which cannot be specifically anticipated at this time.
67
City of St. Louis Park
Police: Community Outreach
Service Overview
Staffing
Community Outreach promotes diversity awareness, supports neighborhood groups, and fosters volunteerism,
community involvement, and pride. It accomplishes this mission by educating residents at community meetings
and events, assisting the Human Rights Commission, the Vision Outcomes committee, and neighborhood
associations, by providing support to nonprofit groups and volunteers, and making connections with other City
departments.
In 2007, Community Outreach moved from the Administrative Services Department to the Police Department.
Community Outreach continues to strive to provide excellent service to reach out to members of our community
and work with other departments in support of our vision of being a connected and engaged community.
Community Outreach is staffed by a full-time Community Liaison.
Chief of Police
Deputy Chief
Support Services
Lieutenant
Patrol
Lieutenant
Records/Clerical
Office Manager
PSAP / Communications
Lead Dispatcher
Dispatchers (10)CSO CoordinatorPatrol Sergeants (6)
Patrol Officers (26)CSO’s / Cadets
(3)
Office Assistant (.5)Support Services
Sergeants (2)Community Liaison
Office
Assistant
III
Office
Assistant II
(4)
Patrol / Admin
Lieutenant
Support Services
Agent
Support Services
Officers (6)
School Liaison / Dare
(3)
Drug Task Force
Community Outreach
Officer
Chief of Police
Deputy Chief
Support Services
Lieutenant
Patrol
Lieutenant
Records/Clerical
Office Manager
PSAP / Communications
Lead Dispatcher
Dispatchers (10)CSO CoordinatorPatrol Sergeants (6)
Patrol Officers (26)CSO’s / Cadets
(3)
Office Assistant (.5)Support Services
Sergeants (2)Community Liaison
Office
Assistant
III
Office
Assistant II
(4)
Patrol / Admin
Lieutenant
Support Services
Agent
Support Services
Officers (6)
School Liaison / Dare
(3)
Drug Task Force
Community Outreach
Officer
51
City of St. Louis Park
2005 2006 # 2007 2008
Expenditure Classification Actual Actual Adopted Proposed
Personal Services 73,765$ 51,882$ 71,292$ 73,127$
Supplies 657 176 1,100 1,100
Services & Other Charges 37,706 39,163 44,005 9,756
Capital Outlay - - - -
Other Expenses - - - -
Total Expenditures 112,128$ 91,221$ 116,397$ 83,983$
Summary of Actual & Budgeted Expenditures
2007 Budgeted Expenditures
Budget Highlights
Police: Community Outreach
Supplies
0.95%
Services
37.81%
Personal Services
61.25%
Personal Services: All salary and
benefit expenditures
Supplies: Office, operational,
general, and non-capital
Services: Contractual services,
insurance, utilities, repairs
Capital Outlay: Equipment &
improvements
Other Expenses: Interest and
bank charges
Expenses are relatively low for Community Outreach, yet the impact of Community Outreach efforts is high. This
budget covers the Community Connection Specialist's salary and expenditures, mediation contract services, and
expenses for the Human Rights Commission and new neighborhood organizing. Neighborhood grant funds, which
are administered by Community Outreach, are included in the Housing Rehabilitation Fund budget.
Community Outreach is funded by a transfer from Housing Rehabilitation fund.
52
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City of St. Louis Park
Fire
Service Overview
Staffing
The St. Louis Park Fire Department is committed, through effective emergency management, to preventing and
minimizing the loss of life and property with cooperative delivery of the highest quality and efficient emergency fire and
rescue service, emergency medical service, hazardous material emergency response, fire prevention, public
education, and emergency management services to the residents in and visitors to St. Louis Park. The department
responded to 4,250 calls in 2006. Although call volume was higher than the 3,970 from 2005, we are continuing to see
a decline in major fires. Emergency Medical Services continued to account for about 70% of all Fire Department calls,
as it did in 2005.
There are no staffing or organization changes planned for 2008. Through the strategic planning process, we are
continuing with staff empowerment in the decision making process and enhancement of our customer service.
Fire Chief
Battalion Chief
Operations
Battalion Chief
Fire Marshal
Administrative Assistant
Captain
Shift A
Captain
Shift B
Captain
Shift C
Station 1
Firefighters (3)
Paid On Call (4)
Station 2
Lieutenant (1)
Firefighters (1)
Paid On Call (4)
Station 1
Firefighters (3)
Paid On Call (4)
Station 2
Lieutenant (1)
Firefighters (1)
Paid On Call (4)
Station 1
Firefighters (3)
Paid On Call (4)
Station 2
Lieutenant (1)
Firefighters (1)
Paid On Call (4)
Battalion Chief
Training/Safety
Lieutenant Lieutenant
Fire Chief
Battalion Chief
Operations
Battalion Chief
Fire Marshal
Administrative Assistant
Captain
Shift A
Captain
Shift B
Captain
Shift C
Station 1
Firefighters (3)
Paid On Call (4)
Station 2
Lieutenant (1)
Firefighters (1)
Paid On Call (4)
Station 1
Firefighters (3)
Paid On Call (4)
Station 2
Lieutenant (1)
Firefighters (1)
Paid On Call (4)
Station 1
Firefighters (3)
Paid On Call (4)
Station 2
Lieutenant (1)
Firefighters (1)
Paid On Call (4)
Battalion Chief
Training/Safety
Lieutenant Lieutenant
City of St. Louis Park
2005 2006 2007 2008
Expenditure Classification Actual Actual Adopted Proposed
Personal Services 2,233,750$ 2,425,991$ 2,494,897$ 2,667,380$
Supplies 81,683 119,314 62,098 93,648
Services & Other Charges 262,609 321,780 199,527 223,092
Capital Outlay 5,112 - - -
Other Expenses - - - -
Total Expenditures 2,583,154$ 2,867,085$ 2,756,522$ 2,984,120$
Budget Highlights
Summary of Actual & Budgeted Expenditures
Fire
2008 Budgeted Expenditures
The Fire Department's 2008 budget is 8.25% over the adopted 2007 budget. This increase is due to standard
anticipated salary increases and a budget adjustment to better reflect actual costs of the Paid-on-Call Firefighter
program.
The Fire Department received a FEMA fire grant for $32,000 for personal protective equipment. This will provide 21
sets of personal protective equipment.
Services
7.48%Supplies
3.14%
Personal Services
89.39%
Personal Services: All salary and
benefit expenditures
Supplies: Office, operational,
general, and non-capital
Services: Contractual services,
insurance, utilities, repairs
Capital Outlay: Equipment &
improvements
Other Expenses: Interest and bank
charges
City of St. Louis Park
Inspections
Service Overview
Staffing
The Inspection Department provides education, issuance of permits, and administration of codes through a variety of
inspection programs to benefit the health, safety and vitality of the community. Maintenance and capital improvements
of City facilities are also integrated into the Department.
Some of the various codes administered to accomplish our mission include Minnesota State Building Codes,
Minnesota Food and Environmental Codes, and City Property Maintenance, Housing, and Zoning Codes. In addition,
the Department also issues licenses for operation of regulated commercial businesses, restaurants, apartment
buildings, and selected contractors. Annual inspections of licensed facilities are conducted to maintain minimum
standards.
The proposed Inspection Department regular staffing for 2008 is a total of 26 full-time and 1 part-time employees,
unchanged from 2007. Staff members engage in numerous interactions with residents, contractors and business
operators within the community. Upwards of 20,000 inspections are performed in a year. Consulting services and
temporary staffing may also be utilized to maintain the desired service level when permit review and inspection
requests exceed regular resources.
All of the inspector and supervisor positions are being continually developed as multi-discipline positions to allow the
most flexible and effective use of our staffing resources to meet service requests. A total of 8,522 permits and 2,708
licenses were issued in 2006. The resulting fee for service revenue totaled $2,897,137.
Inspections
Director
Chief Building
Official
Environmental
Health Official
Administrative
Supervisor
Building Codes
Inspectors (3)
Building Codes
Inspector/Electrical
Specialist (2)
Building Codes
Inspector/Plumbing
Specialist
Environmental
Housing Inspectors (5)
Environmental
Health
Specialists (1.5)
Permit
Technicians (2)
Department
Secretary
Facilities Maintenance
Superintendent
Maintenance (5)
Inspections
Director
Chief Building
Official
Environmental
Health Official
Administrative
Supervisor
Building Codes
Inspectors (3)
Building Codes
Inspector/Electrical
Specialist (2)
Building Codes
Inspector/Plumbing
Specialist
Environmental
Housing Inspectors (5)
Environmental
Health
Specialists (1.5)
Permit
Technicians (2)
Department
Secretary
Facilities Maintenance
Superintendent
Maintenance (5)
City of St. Louis Park
Budget Highlights
Inspections
Construction Codes Division - Building Official and 7 Inspectors providing plan review and inspections administrating
State Construction Code and City regulations for new buildings, additions and remodeling.
Program & Budgeted 2008 Revenue
Building - $1,190,000
Electrical - $230,000
Mechanical - $190,000
Plumbing - $170,000
Commercial Property Maintenance and Certificate of Occupancy - $12,000
Total - $1,792,000
Environmental Health Division - Environmental Health Official with 1.5 FTE Environmental Health Specialists and 5
Environmental Housing Inspectors perform a variety of programs intended to maintain health, safety, and vitality in the
community.
Programs & Budgeted 2008 Revenue
Property Maintenance Certificate (Point of Sale - residential) - $190,000
Rental Housing - $159,000
MN Dept of Health Delegated (Food, Pool, and Lodging) - $160,000
Compaints/Code Enforcement - Non Revenue Program
Total - $509,000
Administrative Division - Administrative Supervisor, Department Secretary, and 2 Permit Technicians provide initial
point of contact for the second floor Inspections/Community Development service counter, scheduling inspections,
issuing permits, assisting customers and processing licenses.
Programs & Budgeted 2008 Revenue
Business Licenses - $76,000
Dog Licenses - $15,000
Contractor Licenses - $30,000
Total - $121,000
Facility Maintenance Division - Facility Maintenance Superintendent and 5 Public Service Workers provide internal
organization support with operating and capital improvement responsibility for the city buildings listed below:
Programs (non revenue programs)
Maintenance of City Buildings
City Hall
Police Station
Fire Stations 1 & 2
Westwood Nature Center
Municipal Service Center
Manage Special Service Districts
Coordinates City's participation in the Henneping County Sentence-To-Serve Program
City of St. Louis Park
2005 2006 2007 2008
Expenditure Classification Actual Actual Adopted Proposed
Personal Services 1,467,548$ 1,599,238$ 1,703,179$ 1,771,746$
Supplies 16,879 9,433 12,500 11,500
Services & Other Charges 111,655 94,057 77,627 69,627
Other Expenses 16,954 16,513 - -
Total Expenditures 1,613,036$ -$ 1,719,241$ -$ 1,793,306$ -$ 1,852,873$
2008 Budgeted Expenditures
Inspections
Summary of Actual & Budgeted Expenditures
Supplies
0.62%
Services
3.75%
Personal Services
95.63%
Personal Services: All salary and benefit
expenditures
Supplies: Office, operational, general, and
non-capital
Services: Contractual services, insurance,
utilities, repairs
Capital Outlay: Equipment & improvements
Other Expenses: Interest and bank charges
Meeting Date: October 8, 2007
Agenda Item #: 4
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
Proposed Reinvestment Assistance Program Policy; and,
Redevelopment Contract with Anderson Builders.
RECOMMENDED ACTION:
Staff wishes to discuss and receive feedback on the proposed Reinvestment Assistance Program
Policy and the related Contract for Private Redevelopment with Anderson Builders for the
redevelopment of 3340 Republic Ave.
POLICY CONSIDERATION:
Is the requested Reinvestment Assistance Program Policy in line with the EDA’s expectations
and is it acceptable? Does the draft Anderson Builders Redevelopment Contract conform to the
business terms previously reviewed by the EDA?
BACKGROUND:
At the August 27, 2007 Study Session, the EDA reviewed Anderson Builders’ request for
financial assistance related to the redevelopment of 3340 Republic Ave. The $400,000 in
assistance was to come from the city’s Development Fund. While Anderson Builders’ proposed
project and financial request were favorably received, the EDA requested staff to prepare criteria
that could be used to guide funding decisions on similar small redevelopment projects in the
future. In response, staff prepared the attached proposed Reinvestment Assistance Program
Policy for the EDA’s review and feedback. The Policy is to receive additional input from the
business community through the TwinWest Chamber at a meeting scheduled for Oct. 26th.
Following that the Policy will be brought back to the EDA for further discussion and/or formal
adoption.
Also discussed at the Study Session were preliminary business terms for the provision of
financial assistance to Anderson Builders. Those terms were generally acceptable and therefore
staff was directed to incorporate them into a formal redevelopment contract with the
Redeveloper. Attached is a draft Contract for Private Redevelopment between the EDA and
Anderson Builders for the EDA’s consideration. While the draft Contract reflects the terms
discussed at the Study Session the EDA and Redeveloper’s attorneys are continuing to hone and
refine the details of the agreement. Any substantive revisions will be brought to the EDA’s
attention. If the proposed Contract is acceptable, the EDA will be asked to formally approve it
on October 15th.
FINANCIAL OR BUDGET CONSIDERATION:
Anderson Builders would be provided with $400,000 upon acquisition and redevelopment of
3340 Republic Ave. The funds would be disbursed from the Development Fund over a 10 year
basis according to a declining scale.
Meeting of October 8, 2007 Page 2
Subject: Proposed Reinvestment Assistance Program Policy; and, Redevelopment Contract with Anderson Builders
VISION CONSIDERATION:
The proposed Policy is consistent at least in part with the Strategic Directions of Vision St. Louis
Park as it relates to environmental stewardship. The proposed project is consistent with the
goals expressed in the Redevelopment section of the City’s Comprehensive Plan.
Attachments: Reinvestment Assistance Program Policy
Draft Contract for Private Redevelopment between the EDA and
Anderson Builders
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Kevin Locke, Community Development Director
Approved by: Tom Harmening, EDA Executive Director
Meeting of October 8, 2007 Page 3
Subject: Proposed Reinvestment Assistance Program Policy; and, Redevelopment Contract with Anderson Builders
DRAFT
REINVESTMENT ASSISTANCE
PROGRAM POLICY
October, 2007
Conformance with the attached policy does not entitle any applicant to financial assistance under
this program. This policy states the minimum and desired qualifications necessary to approve an
application. The St. Louis Park Economic Development Authority (EDA) retains the right to accept
or deny applications on the basis of evaluating additional criteria it deems prudent and necessary.
All applicants are subject to approval by the St. Louis Park EDA or its designee(s).
Meeting of October 8, 2007 Page 4
Subject: Proposed Reinvestment Assistance Program Policy; and, Redevelopment Contract with Anderson Builders
CITY OF ST. LOUIS PARK
Reinvestment Assistance
Program Policy
For the purpose of this Policy, the "City" shall also mean the St. Louis Park Economic
Development Authority (EDA), which conducts various economic development, housing and
redevelopment programs and activities within the City of St. Louis Park.
I. GENERAL POLICY
The purpose of this Policy is to establish the City's position relating to the use of Reinvestment
Assistance grants or loans from the EDA’s Development Fund for private redevelopment
projects. This Policy shall be used as a guide in processing and reviewing financing requests for
redevelopment projects requiring less than $500,000. Reinvestment Assistance program will
generally be considered in situations where the size and cost of the proposed project do not
justify the time and expense needed to create and administer a tax increment finance (TIF)
district.
The primary purpose of the Reinvestment Assistance program is to encourage the reinvestment
in commercial, industrial, or mixed use areas in St. Louis Park that would not otherwise
redevelop or see significant new investment “but for” the assistance provided. Grants or loans
are to be provided when the economics of property reuse cannot be overcome with conventional
financing alone and where there is a compelling public interest in seeing the
redevelopment/reinvestment occur at the proposed location. This program should not be a
redeveloper’s sole source of gap financing. It is not to be utilized in lieu of commercial lending
but in participation with such lending sources. Assistance will be provided upon evidence that
all other funding sources have been exhausted. Assistance funds will typically be provided as
the sole source of public financing assistance but may, in exceptional circumstances, be provided
in conjunction with tax incremental financing at the sole discretion of the EDA.
The goal of the program is to revitalize neighborhoods by eliminating or substantially
rehabilitating structures that negatively impact surrounding properties. The resulting
redevelopment and/or new investment should bring the underlying commercial or industrial
property to the highest and best use. The project should also have the potential to serve as a
catalyst for additional neighborhood reinvestment.
II. CITY'S OBJECTIVE FOR THE USE OF REINVESTMENT ASSISTANCE
The EDA will consider providing the Reinvestment Assistance to facilitate small, private
redevelopment projects to achieve one or more of the following purposes:
• Revitalize identified key areas of the city through the replacement of blight,
nonconforming uses and replacement of other negative influences with high
quality, private development.
Meeting of October 8, 2007 Page 5
Subject: Proposed Reinvestment Assistance Program Policy; and, Redevelopment Contract with Anderson Builders
• Serve as a catalyst to encourage further private "spin-off" development within
tired, deteriorated, or functionally obsolete areas so as to lead to their economic
stabilization and revitalization.
• Expand the municipal tax base.
• Retain local jobs and/or increase the number and quality of jobs (e.g. stable
employment and/or attractive wages and benefits).
• Encourage projects that exhibit efficient urban design; quality architecture and
materials; sustainable “green” design; energy efficiency; enhanced stormwater
management; improved public safety; and decrease the capital and operating costs
of local government.
• Promote principles related to Livable Communities and Transit Oriented
Development so as to create compact, efficient mixed-use developments that
include: attractive design, quality amenities (e.g. public art) as well as pedestrian
and transit friendly environments.
• Fulfill the strategic directions outlined in Vision St. Louis Park.
III. COSTS WHICH QUALIFY FOR REINVESTMENT ASSISTANCE
Costs that are considered extraordinary for a typical development project are eligible for
reimbursement. These may include:
• Offset extraordinary costs of redevelopment (e.g. demolition, asbestos abatement,
contaminated site clean-up, utility upgrades, building support. etc), over and
above those costs that a developer would typically incur in traditional urban and
suburban development.
• Site related work, including: soil correction, pilings, utility relocation or upgrades,
street widening and/or repair, street/parking lot paving, street/parking lot lighting,
• Land writedown to comparable land-only values
• Interest rate write downs
• Environmental studies
• Relocation assistance
• Replacement or clean-up of contaminated soils
• Building demolition
• Asbestos abatement
• Building rehabilitation
• “Green Building” features
IV. PROJECTS WHICH MAY QUALIFY FOR REINVESTMENT ASSISTANCE
All proposed reinvestment projects considered by the City of St. Louis Park must meet each of
the following minimum qualifications and will also be evaluated based on their ability to meet
the desired qualifications for assistance. However, it should not be presumed that a project
meeting the qualifications will automatically be approved. Meeting the qualifications creates no
contractual rights on the part of any potential redeveloper to receive financial assistance.
Meeting of October 8, 2007 Page 6
Subject: Proposed Reinvestment Assistance Program Policy; and, Redevelopment Contract with Anderson Builders
MINIMUM QUALIFICATIONS
A. The proposed redevelopment project must be located within the City of St. Louis Park and
eliminate blight (structurally substandard/contaminated buildings) and/or nonconforming
uses; correct adverse soil conditions;
B. The redeveloper must demonstrate through its proforma that the proposed redevelopment
project is not financially feasible "but-for" the use of Redevelopment Assistance.
C. The redeveloper must provide market data, tenant letters of commitment, finance statements
or other evidence which support the market potential/demand for the proposed project.
D. The proposed redevelopment project must be consistent with the City's Comprehensive Plan
and Zoning Ordinance, or required changes to the Plan and Ordinance must be under active
consideration by the City at the time a Redevelopment Contract providing the assistance is
scheduled for approval.
E. Prior to approval of a financing plan, the redeveloper shall provide any requested market and
financial feasibility studies, appraisals, soil boring, private lender commitment, and/or other
information as the City or its financial consultants may require in order to proceed with an
independent review of the proposal.
F. The redeveloper must provide adequate financial guarantees to ensure completion of the
project. These may include, but are not limited to: assessment agreements, letters of credit,
personal deficiency guarantees, guaranteed maximum cost contract, etc.
G. The redeveloper should be able to demonstrate previous successful general redevelopment
capability as well as specific capability in the type and size of redevelopment proposed.
Assistance will not be provided when the redeveloper's credentials, in the sole judgment of
the City, are inadequate due to past track record relating to: quality and completion of
projects, general reputation and/or bankruptcy, or other problems or issues considered
relevant by the City.
H. The redeveloper should retain ownership of the project at least long enough to complete it, to
stabilize its occupancy, and to establish the property management.
I. Redevelopment projects must create a higher ratio of property taxes paid before and after
redevelopment. A 1:2 ratio of taxes paid before and after redevelopment is required.
J. The proposed redevelopment meets many of the performance benchmarks needed to achieve
Leadership In Energy and Environmental Design (LEED) certification for its particular
project type. Redeveloper must provide a list of qualifying activities or project features to be
incorporated into the project.
Meeting of October 8, 2007 Page 7
Subject: Proposed Reinvestment Assistance Program Policy; and, Redevelopment Contract with Anderson Builders
DESIRED QUALIFICATIONS
A. The proposed project should be located within areas of the City envisioned for
reinvestment and/or revitalization.
B. The proposed projects should be consistent with the City's Strategic Plan and Vision St.
Louis Park.
C. Preference will be given to projects that meet public policy objectives as determined by
the City Council such as:
• Including efficient urban architectural design, high quality construction and materials,
additional green space).
• Providing significant improvement to surrounding land uses, the neighborhood,
and/or the City.
• Facilitating the expansion/location of a business or industry with an environmentally
sound track record.
• Providing significant new and/or retained employment that provides wages above the
MSA average.
• Providing the highest and best desired use for the property.
• Consistent with Livable Communities and Transit Oriented Development principals.
• Qualifying for Leadership In Energy and Environmental Design (LEED) certification.
D. Reinvestment Assistance will generally be paid out over a multi-year period. Any
request for upfront assistance will be evaluated on its own merit in accordance with the
City's general financing policies. Projects requesting multi-year financing will receive
priority consideration.
DISQUALIFICATIONS
A. Reinvestment Assistance will not be provided to a project that involves an excessive land
and/or property price (i.e. where the acquisition price is substantially in excess of market
value as determined by an independent appraisal of the property).
B. Reinvestment Assistance will not be provided in projects that would give a significant
competitive financial advantage over similar projects in the area due to the use of the
Assistance. Redevelopers should provide information to demonstrate Reinvestment
Assistance will not create an undue competitive advantage. Priority consideration will be
given to projects that fill an unmet market need.
C. Reinvestment Assistance will not be provided to support projects that place extraordinary
demands on City services. Preference will be given to those projects that do not place
extraordinary demands on City services.
D. Reinvestment Assistance will not be provided for projects that would likely generate
environmental problems in the opinion of the local, state, or federal governments.
Priority will be given to projects that aim to clean-up contaminated sites and buildings.
E. Reinvestment Assistance will not be provided to:
Meeting of October 8, 2007 Page 8
Subject: Proposed Reinvestment Assistance Program Policy; and, Redevelopment Contract with Anderson Builders
• Refinance existing debts.
• Real property held primarily for sale or investment.
• Speculation in any kind of property, real or personal, tangible or intangible.
• Business activities inconsistent with Vision St. Louis Park including but not
limited to: sexually oriented businesses, pawn shops, tattoo parlors, tobacco
shops, gun shops, or those considered to create environmental problems due to the
type of operation or processes involved in the business operation.
• Businesses which are considered to be a non-conforming use under the City’s
zoning ordinance.
V. REINVESTMENT PROJECT EVALUATION PROCESS
Reinvestment Projects will be evaluated on the extent to which they satisfy the Minimum and
Desired Qualifications. Projects that do not satisfy all of the Minimum Qualifications will not be
considered.
VI. APPLICATION FOR REINVESTMENT ASSISTANCE
The City's Reinvestment Assistance program will be administered by the St. Louis Park EDA.
The St. Louis Park EDA will require a non-refundable application fee in the amount of $2,000
for its processing of the application. The application fee shall be paid to the EDA at the time a
Reinvestment Assistance Program application is submitted.
At the time a Reinvestment Assistance application is submitted, the applicant shall also deposit
$5,000 with the EDA in a designated escrow account to cover the EDA’s legal and consulting
expenses incurred negotiating and drafting a redevelopment agreement, and conducting any
fiscal analysis that may be required to meet the requirements of the program. If additional
expenses are incurred beyond the $5,000, the EDA shall notify the applicant and the applicant
will be required to deposit additional funds to cover the costs.
If the project is approved and the applicant proceeds with the project, the EDA shall reimburse
the applicant any unused portion of the deposit as of the date of execution of the redevelopment
contract. If the applicant does not proceed with the project, the EDA shall reimburse the
applicant for the unused portion of the deposit as of the date that the EDA is notified in writing
that the applicant desires to withdraw its application.
VII. APPLICATION PROCESS
The application process is a two-step process. Redevelopers are required to meet informally
with staff to review the proposed redevelopment project. If, in staff’s judgment, the project
appears to meet the Grant program’s objectives and the amount of requested assistance appears
reasonable, the redeveloper will be encouraged to complete a formal Grant application and pay
the applicable fees. Upon receipt of the completed application and fees, the grant request will be
brought to the EDA for its consideration. The EDA will then determine whether the proposed
project is sufficiently consistent with the Policy to merit funding. The purpose of this approach
is to give an applicant the opportunity to present a redevelopment proposal without expending a
great deal of time and expense in pursuing a project that may be inconsistent with the City's
goals and objectives.
320209v8 MTN SA285-86
Second Draft Copy
CONTRACT
FOR
PRIVATE REDEVELOPMENT
By and Between
ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
and
ANDERSON BUILDERS
Dated as of: __________, 2007
This document was drafted by:
KENNEDY & GRAVEN, Chartered
470 US Bank Plaza
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 337-9300
320209v8 MTN SA285-86 i
TABLE OF CONTENTS
Page
PREAMBLE .........................................................................................................................................1
ARTICLE I
Definitions
Section 1.1. Definitions.......................................................................................................................2
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority...................................................................................5
Section 2.2. Representations and Warranties by the Redeveloper....................................................5
ARTICLE III
Land Acquisition and Conveyance
Section 3.1. Status of Redevelopment Property.................................................................................7
Section 3.2. Environmental Conditions..............................................................................................7
Section 3.3. Relocation........................................................................................................................7
Section 3.4. Payment of Administrative Costs ..................................................................................8
Section 3.5. Business Subsidy ............................................................................................................8
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Improvements.......................................................................................9
Section 4.2. Site Plan and Construction Plans ...................................................................................9
Section 4.3. Commencement and Completion of Construction......................................................10
Section 4.4. Certificate of Completion.............................................................................................10
ARTICLE V
Insurance
Section 5.1. Insurance .......................................................................................................................11
Section 5.2. Subordination................................................................................................................12
Section 5.3. Qualifications................................................................................................................12
ARTICLE VI
Tax Increment; Taxes
Section 6.1. Right to Collect Delinquent Taxes...............................................................................13
Section 6.2. Reduction of Taxes.......................................................................................................13
Section 6.3. Assessment Agreements...............................................................................................13
320209v8 MTN SA285-86 ii
ARTICLE VII
Financing
Section 7.1. Redeveloper Financing.................................................................................................15
Section 7.2. Subordination................................................................................................................15
Section 7.3. Authority Financing; Issuance of Redevelopment Assistance Grant.........................15
Section 7.4. Lookback.......................................................................................................................16
ARTICLE VIII
Prohibitions Against Assignment and Transfer; Indemnification
Section 8.1. Representation as to Development...............................................................................18
Section 8.2. Prohibition Against Redeveloper’s Transfer of Property and
Assignment of Agreement............................................................................................18
Section 8.3. Release and Indemnification Covenants......................................................................19
ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined............................................................................................21
Section 9.2. Remedies on Default.....................................................................................................21
Section 9.3. No Remedy Exclusive..................................................................................................22
Section 9.4. No Additional Waiver Implied by One Waiver..........................................................22
ARTICLE X
Additional Provisions
Section 10.1. Conflict of Interests; Authority Representatives Not Individually
Liable.............................................................................................................................23
Section 10.2. Equal Employment Opportunity..................................................................................23
Section 10.3. Restrictions on Use.......................................................................................................23
Section 10.4. Titles of Articles and Sections......................................................................................23
Section 10.5. Notices and Demands...................................................................................................23
Section 10.6. Counterparts..................................................................................................................24
Section 10.7. Recording......................................................................................................................24
Section 10.8. Minnesota Law..............................................................................................................24
Section 10.9. Disclaimer of Relationships .........................................................................................24
Section 10.10. Modifications................................................................................................................24
Section 10.11. Authority or City Approvals.........................................................................................24
TESTIMONIUM .................................................................................................................................S-1
SIGNATURES ....................................................................................................................................S-2
SCHEDULE A Redevelopment Property
SCHEDULE B Site Plan
SCHEDULE C Certificate of Completion
SCHEDULE D Form of Assessment Agreement
SCHEDULE E Redeveloper Pro Formas
320209v8 MTN SA285-86
1
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made as of the _________ day of _____, 2007, by and between the
ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and
politic (the “Authority”), established pursuant to Minnesota Statutes, Sections 469.090 to 469.1081
(hereinafter referred to as the “Act”) and ANDERSON BUILDERS, a Minnesota company (the
“Redeveloper”).
WITNESSETH:
WHEREAS, the Authority was created pursuant to the Act and was authorized to transact
business and exercise its powers by a resolution of the City Council of the City of St. Louis Park
(the “City”); and
WHEREAS, the Authority has undertaken a program to promote redevelopment of land that
is characterized by blight and blighting factors within the City, and in this connection the Authority
has created Redevelopment Project No. 1 (hereinafter referred to as the “Project”) in the City,
pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”); and
WHEREAS, the Authority has established its Redevelopment Assistance Program to assist
projects which meet the Program’s standards; and
WHEREAS, the Redeveloper has proposed a development within the Project which the
Authority believes will promote and carry out the objectives for which redevelopment is
undertaken, will be in the vital and best interests of the City, will promote the health, safety, morals,
and welfare of its residents and will be in accord with the public purposes and provisions of the
applicable state and local laws and requirements under which activities within the Project have been
undertaken and are being assisted; and
WHEREAS, the Redeveloper intends to purchase property within the Project (the
“Redevelopment Property”) and to develop the Redevelopment Property for and in accordance with
this Agreement; and
WHEREAS, the Authority believes that the redevelopment of the Redevelopment Property
pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best
interests of the City and the health, safety, morals, and welfare of its residents, and in accord with
the public purposes and provisions of the applicable state and local laws and requirements under
which activities within the Project have been undertaken and are being assisted; and
WHEREAS, the Authority is willing to provide financial assistance in the form of a ‘grant’
from funds held in the Authority’s Development Fund, in accordance with the provisions of this
Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
320209v8 MTN SA285-86
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ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
“Act” means Minnesota Statutes, Sections 469.090 to 469.1081, as amended.
“Affiliate” means with respect to entity (a) any corporation, partnership, limited liability
company or other business entity or person controlling, controlled by or under common control
with the entity, and (b) any successor to such party by merger, acquisition, reorganization or
similar transaction involving all or substantially all of the assets of such party (or such Affiliate).
For the purpose hereof the words “controlling”, “controlled by” and “under common control
with” shall mean, with respect to any corporation, partnership, limited liability company or other
business entity, the ownership of fifty percent or more of the voting interests in such entity or
possession, directly or indirectly, of the power to direct or cause the direction of management
policies of such entity, whether through ownership of voting securities or by contract or
otherwise.
“Agreement” means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
“Assessment Agreement” means any Assessment Agreement entered into pursuant to
Section 6.3 hereof.
“Authority” means the St. Louis Park Economic Development Authority.
“Authority Representative” means the Acting Executive Director or any person designated
in writing by the Acting Executive Director to serve as Authority Representative.
“Business Subsidy Act” means Minnesota Statutes, Sections 116J.993 to 116J.995, as
amended.
“City” means the City of St. Louis Park.
“Certificate of Completion” means the certification provided to the Redeveloper, or the
purchaser of any part, parcel or unit of the Redevelopment Property, pursuant to Section 4.4 of this
Agreement.
“Code” means the Internal Revenue Code of 1986, as amended.
“Construction Plans” means the plans, specifications, drawings and related documents on
the construction work to be performed by the Redeveloper on the Redevelopment Property,
including the Minimum Improvements, which (a) shall be as detailed as the plans, specifications,
drawings and related documents which are submitted to the appropriate building officials of the
320209v8 MTN SA285-86
3
Authority, and (b) shall include at least the following: (1) site plan; (2) foundation plan; (3)
basement plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6)
elevations (all sides); (7) landscape plan; and (8) such other plans or supplements to the foregoing
plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the
proposed construction work.
“County” means the County of Hennepin, Minnesota.
“Event of Default” means an action by the Redeveloper listed in Article IX of this
Agreement.
“Holder” means the owner of a Mortgage.
“Material Change” means a change in construction plans (excluding buyer options and
upgrades) that adversely affects generation of tax increment or changes the number of condominium
units other than by combining no more than two units to create a larger unit.
“Minimum Improvements” means the construction on the Redevelopment Property of a
15,000 SF office building to be known as Oak Hill II.
“Mortgage” means any mortgage made by the Redeveloper or its Affiliate which is secured,
in whole or in part, with the Redevelopment Property.
“Parcel” means any parcel of the Redevelopment Property.
“Project” means the City’s Redevelopment District No. 1.
“Project Area” means the real property located within the boundaries of the Project.
“Public Redevelopment Costs” means the Redeveloper verified costs associated with the
acquisition of, and demolition and site preparation for, the Redevelopment Property.
“Redevelopment Assistance Grant” or “Grant” means the not to exceed $400,000 grant to
the Redeveloper for the purpose of assisting in writing down the acquisition, demolition and
development costs of the Redeveloper, paid from the Authority’s Development Fund.
“Redeveloper” means Anderson Builders, a Minnesota company, and any permitted
successors and assigns of Redeveloper.
“Redevelopment Plan” means the Authority’s Redevelopment Plan for Redevelopment
District No. 1 as modified February 21, 2006 and as it may be further modified.
“Redevelopment Property” means the real property described in Schedule A of this
Agreement.
“Site Plan” means the site plan attached as Schedule B.
“State” means the State of Minnesota.
320209v8 MTN SA285-86
4
“Tax Official” means any County assessor; County auditor; County or State board of
equalization, the commissioner of revenue of the State, or any State or federal district court, the tax
court of the State, or the State Supreme Court.
“Termination Date” means the date that the Grant has been paid in full pursuant to the terms
of this Agreement.
“Transfer” has the meaning provided in Section 8.2(a).
“Unavoidable Delays” means delays beyond the reasonable control of the party seeking to
be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged
adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation
commenced by third parties which, by injunction or other similar judicial action, directly results in
delays, or acts of any federal, state or local governmental unit (other than the Authority in exercising
its rights under this Agreement) which directly result in delays or any other delays beyond the
reasonable control of the party seeking to be excused. Unavoidable Delays shall not include delays
in the Redeveloper’s obtaining of permits or governmental approvals necessary to enable
construction of the Minimum Improvements by the dates such construction is required under
Section 4.3 of this Agreement, unless (a) Redeveloper has timely filed any application and materials
required by the City for such permit or approvals, and (b) the delay is beyond the reasonable control
of the Redeveloper.
320209v8 MTN SA285-86
5
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority. The Authority makes the following
representations as the basis for the undertaking on its part herein contained:
(a) The Authority is an economic development authority duly organized and existing
under the laws of the State. Under the provisions of the Act and the HRA Act, the Authority has the
power to enter into this Agreement and carry out its obligations hereunder.
(b) The activities of the Authority are undertaken for the purpose of fostering the
redevelopment of certain real property that is or was occupied primarily by substandard and
obsolete buildings, which will revitalize this portion of the Project, increase tax base, and increase
housing and employment opportunities.
(c) The Authority will use its best efforts to facilitate redevelopment of the Minimum
Improvements, including but not limited to cooperating with the Redeveloper in obtaining
necessary administrative, environmental and land use approvals.
Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper
represents and warrants that:
(a) The Redeveloper is a Minnesota company duly organized and in good standing
under the laws of the State, is not in violation of any provisions of its bylaws, its operating
agreement or (to the best of its knowledge) the laws of the State, is duly authorized to transact
business within the State, has power to enter into this Agreement and has duly authorized the
execution, delivery and performance of this Agreement by proper action of its members.
(b) Upon acquisition of the Redevelopment Property and subject to the terms,
covenants and conditions herein, the Redeveloper will construct and (so long as the Redeveloper
retains ownership) operate and maintain, or cause to be constructed, operated and maintained, the
Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan
and all applicable local, state and federal laws and regulations (including, but not limited to,
applicable environmental, zoning, building code and public health laws and regulations).
(c) The Redeveloper has received no notice or communication from any local, state or
federal official that the activities of the Redeveloper or the Authority in the Project Area may be or
will be in violation of any environmental law or regulation (other than those notices or
communications of which the Authority is aware). The Redeveloper is aware of no facts the
existence of which would cause it to be in violation of or give any person a valid claim under any
local, state or federal environmental law, regulation or review procedure.
(d) The Redeveloper will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, all requirements of all applicable local, state and
320209v8 MTN SA285-86
6
federal laws and regulations which must be obtained or met before the Minimum Improvements
may be lawfully constructed.
(e) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the
terms, conditions or provisions of any corporate restriction or any evidences of indebtedness,
agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it
is bound, or constitutes a default under any of the foregoing.
(f) The proposed development by the Redeveloper hereunder would not occur but for
the Redevelopment Assistance Grant provided by the Authority.
(g) The Redeveloper shall promptly advise Authority in writing of all litigation or
claims affecting any part of the Minimum Improvements and all written complaints and charges
made by any governmental authority materially affecting the Minimum Improvements or materially
affecting Redeveloper or its business which may delay or require changes in construction of the
Minimum Improvements.
320209v8 MTN SA285-86
7
ARTICLE III
Land Acquisition and Conveyance
Section 3.1. Status of Redevelopment Property. The Redevelopment Property consists of
the Parcel described in Schedule A. As of the date of this Agreement, the Redeveloper has entered
into purchase agreements to acquire the Redevelopment Property. The Redeveloper acknowledges
that the Authority has no obligation to acquire any of the Redevelopment Property.
Section 3.2. Environmental Conditions. (a) The Redeveloper acknowledges that the
Redevelopment Property is located in the vicinity of a “superfund” site commonly known as the
Reilly Tar property. The Redeveloper acknowledges that the Authority makes no representations or
warranties as to the condition of the soils on the Redevelopment Property or the fitness of the
Redevelopment Property for construction of the Minimum Improvements or any other purpose for
which the Redeveloper may make use of such property, and that the assistance provided to the
Redeveloper under this Agreement neither implies any responsibility by the Authority for any
contamination of the Redevelopment Property nor imposes any obligation on such parties to
participate in any cleanup of the Redevelopment Property.
(b) Without limiting its obligations under Section 8.3 of this Agreement the
Redeveloper further agrees that except for any misrepresentation or any misconduct, affirmative act
or negligence of the Authority or the City and except for any breach by the Authority of its
obligations under this Agreement, the Redeveloper will indemnify, defend, and hold harmless the
Authority, the City, and their governing body members, officers, and employees, from any claims or
actions arising out of the presence, if any, of hazardous wastes or pollutants existing on or in the
Redevelopment Property, unless and to the extent that such hazardous wastes or pollutants are
present as a result of the actions or omissions of the indemnities, including without limitation the
operation or presence of the municipal incinerator and City maintenance facility. Nothing in this
section will be construed to limit or affect any limitations on liability of the City or Authority under
State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02.
Section 3.3. Relocation. (a) As of the date of this Agreement, businesses or tenants occupy
the Redevelopment Property. The parties contemplate that the tenants currently occupying the
Redevelopment Property are comprised of the Redeveloper’s seller and its affiliates who are eligible
under federal and state law to waive their relocation rights. However, since there may be tenants
eligible for relocation benefits as defined by federal and state law, the Redeveloper shall be
responsible for the relocation of all occupants of the Redevelopment Property, including the
provision of any relocation benefits and payments. The Redeveloper shall engage a relocation
consultant, approved by the City, to prepare and determine all legal notices, relocation benefits and
payments to be provided to occupants in exchange for their relocation from the Redevelopment
Property, or to support a waiver of relocation benefits. The Redeveloper shall furnish to the City a
written certification from its relocation consultant to the effect that relocation benefits have been or
will be provided, or that any waiver of relocation benefits is in compliance with applicable laws.
The City’s obligation to issue the Development Fund Note and disburse any proceeds thereof is
subject to its receipt of such certification.
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(b) Without limiting the Redeveloper's obligations under Section 8.3 hereof, the
Redeveloper will indemnify, defend, and hold harmless the Authority and its governing body
members, employees, agents, and contractors from any and all claims for benefits or payments
arising out of the relocation or displacement of any person from any Parcels of the Redevelopment
Property as a result of the implementation of this Agreement.
Section 3.4. Payment of Administrative Costs. Until the issuance of the last installment of
the Grant, the Redeveloper is responsible to pay all reasonable out of pocket costs for legal and
financial advising services incurred by the Authority that are attributable to or incurred in
connection with the negotiation and preparation of this Agreement and other documents and
agreements in connection with the development contemplated hereunder (collectively,
“Administrative Costs”). Administrative Costs shall be evidenced by invoices, statements or other
reasonable written evidence of the costs incurred by the Authority, copies of which will be provided
to the Redeveloper upon request. Upon termination of this Agreement in accordance with its terms,
Redeveloper remains obligated to pay Administrative Costs incurred as of the effective date of
termination.
Section 3.5. Business Subsidy. The Redeveloper warrants and represents that the
Redeveloper’s investment in the purchase of the Redevelopment Property will equal at least 70%
of the County assessor’s finalized market value of the Redevelopment Property for the 2007
assessment year, calculated as follows:
Aggregate cost of acquisition of Redeveloper Parcels………..$620,000
Assessor's finalized market value
of Redevelopment Property (pay 2007)...................………… $651,000
$620,000 (net acquisition cost) is 95% of $651,000 (assessor's finalized fair market value
of the Redevelopment Property payable in 2007).
Accordingly, the parties agree and understand that the financial assistance described in
this Agreement does not constitute a business subsidy within the meaning of the Business
Subsidy Act. The Redeveloper releases and waives any claim against the Authority and its
governing body members, officers, agents, servants and employees thereof arising from
application of the Business Subsidy Act to this Agreement, including without limitation any
claim that the Authority failed to comply with the Business Subsidy Act with respect to this
Agreement.
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ARTICLE IV
Construction of Minimum Improvements,
Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will
construct or cause to be constructed the Minimum Improvements on the Redevelopment Property in
accordance with the approved Construction Plans and at all times prior to the Termination Date will
operate and maintain, preserve and keep the Minimum Improvements or cause such improvements
to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in
good repair and condition. The Authority shall have no obligation to operate or maintain the
Minimum Improvements.
Section 4.2. Site Plan and Construction Plans. (a) Construction Plans. Before
commencement of construction of the Minimum Improvements, the Redeveloper shall submit to
the Authority construction plans and a site plan (collectively the site plan and construction plans
shall mean the “Construction Plans”). The Construction Plans shall provide for the construction of
the relevant improvements and shall be in material conformity with the Redevelopment Plan, this
Agreement, and all applicable State and local laws and regulations. The Authority Representative
will approve the Construction Plans in writing if: (i) the Construction Plans materially conform to
the terms and conditions of this Agreement; (ii) the Construction Plans materially conform to the
goals and objectives of the Redevelopment 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 relevant improvements; and (v) no Event of
Default has occurred. Approval may be based upon a review by the Authority’s Building Official
of the Construction Plans and shall be conclusive evidence that Redeveloper has satisfied its
obligations under this Section. No approval by the Authority Representative shall relieve the
Redeveloper of the obligation to comply with the terms of this Agreement or of the Redevelopment
Plan, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the
Minimum Improvements in accordance therewith. No approval by the Authority Representative
shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested
by the Redeveloper in writing at the time of submission, such Construction Plans shall be deemed
approved unless rejected in writing by the Authority Representative, in whole or in part. Such
rejections shall set forth in detail the reasons therefore, and shall be made within 30 days after the
date of their receipt by the Authority. If the Authority Representative rejects any Construction Plans
in whole or in part, the Redeveloper shall submit new or corrected Construction Plans within 30
days after written notification to the Redeveloper of the rejection. The provisions of this Section
relating to approval, rejection and resubmission of corrected Construction Plans shall continue to
apply until the Construction Plans have been approved by the Authority. The Authority
Representative’s approval shall not be unreasonably withheld, delayed or conditioned. Said
approval shall constitute a conclusive determination that the Construction Plans (and the Minimum
Improvements constructed in accordance with said plans) comply to the Authority’s satisfaction
with the provisions of this Agreement relating thereto.
(c) If the Redeveloper desires to make any Material Change in the Construction Plans
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
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to the requirements of this Section 4.2 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 notice of such change. The Authority’s approval of any such change in the
Construction Plans will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. (a) Minimum
Improvements. Subject to Unavoidable Delays, the Redeveloper shall commence construction on or
after October 16, 2007 and complete construction of the Minimum Improvements, with the
specified minimum market values as set forth in the related Assessment Agreement, by Decemebr
31, 2008.
(b) General Requirements. 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 for itself, its successors and assigns, and every successor in
interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such
successors and assigns, shall promptly begin and diligently proceed to completion the
development of the Redevelopment Property through the construction of the Minimum
Improvements thereon, and that such construction shall in any event be commenced and
completed within the period specified in this Section 4.3 of this Agreement. After the date of
this Agreement and until construction of the Minimum Improvements has been completed, the
Redeveloper shall make reports, in such detail and at such times as may reasonably be requested
by the Authority, as to the actual progress of the Redeveloper with respect to such construction.
Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum
Improvements in accordance with those provisions of the Agreement relating solely to the
obligations of the Redeveloper to construct the Minimum Improvements (including the dates for
beginning and completion thereof), the Authority Representative will furnish the Redeveloper with
a Certificate shown as Schedule C. Such certification and such determination shall not constitute
evidence of compliance with or satisfaction of any obligation of the Redeveloper to any Holder of a
Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum
Improvements or any part thereof.
(b) If the Authority Representative shall refuse or fail to provide any certification in
accordance with the provisions of this Section 4.4 of this Agreement, the Authority Representative
shall, within fifteen (15) business days after written request by the Redeveloper, provide the
Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper
has failed to complete the Minimum Improvements in accordance with the provisions of the
Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion
of the Authority, for the Redeveloper to take or perform in order to obtain such certification.
(c) The construction of the Minimum Improvements shall be deemed to be complete
when the City has issued a final certificate of occupancy for all improvements making up the
Minimum Improvements.
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ARTICLE V
Insurance
Section 5.1. Insurance. (a) The Redeveloper or its contractor will provide and maintain at
all times during the process of constructing the Minimum Improvements an All Risk Broad Form
Basis Insurance Policy and, from time to time during that period, at the request of the Authority,
furnish the Authority with proof of payment of premiums on policies covering the following:
(i) Builder’s risk insurance, written on the so-called “Builder’s Risk --
Completed Value Basis,” in an amount equal to one hundred percent (100%) of the
insurable value of the Minimum Improvements at the date of completion, and with coverage
available in nonreporting form on the so-called “all risk” form of policy.
(ii) Comprehensive general liability insurance (including operations, contingent
liability, operations of subcontractors, completed operations and contractual liability
insurance) together with an Owner’s Protective Liability Policy with limits against bodily
injury and property damage of not less than $1,000,000 for each occurrence (to accomplish
the above-required limits, an umbrella excess liability policy may be used); and
(iii) Workers’ compensation insurance, with statutory coverage.
(b) Upon completion of construction of the Minimum Improvements and prior to the
Maturity Date, the Redeveloper shall maintain, or cause to be maintained, at its cost and expense,
and from time to time at the request of the Authority shall furnish proof of the payment of premiums
on, insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Improvements under
a policy or policies covering such risks as are ordinarily insured against by similar
businesses.
(ii) Comprehensive general public liability insurance, including personal injury
liability (with employee exclusion deleted), against liability for injuries to persons and/or
property, in the minimum amount for each occurrence and for each year of $1,000,000.
(iii) Such other insurance, including workers’ compensation insurance respecting
all employees of the Redeveloper or its tenant, in such amount as is customarily carried by
like organizations engaged in like activities of comparable size and liability exposure;
provided that the Redeveloper or its tenant may be self-insured with respect to all or any part
of its liability for workers’ compensation.
(c) All insurance required in Article V of this Agreement shall be taken out and
maintained in responsible insurance companies selected by the Redeveloper or its tenant which are
authorized under the laws of the State to assume the risks covered thereby. Upon request, the
Redeveloper will deposit annually with the Authority policies evidencing all such insurance, or a
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certificate or certificates or binders of the respective insurers stating that such insurance is in force
and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain
a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage
provided below the amounts required herein without giving written notice to the Redeveloper and
the Authority at least thirty (30) days before the cancellation or modification becomes effective. In
lieu of separate policies, the Redeveloper or its tenant may maintain a single policy, blanket or
umbrella policies, or a combination thereof, having the coverage required herein, in which event the
Redeveloper shall deposit with the Authority a certificate or certificates of the respective insurers as
to the amount of coverage in force upon the Minimum Improvements.
(d) The Redeveloper agrees to notify the Authority immediately in the case of damage
exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any portion
thereof resulting from fire or other casualty. In such event the Redeveloper will forthwith repair,
reconstruct and restore the Minimum Improvements to substantially the same or an improved
condition or value as it existed prior to the event causing such damage and, to the extent necessary
to accomplish such repair, reconstruction and restoration, the Redeveloper will apply the Net
Proceeds of any insurance relating to such damage received by the Redeveloper to the payment or
reimbursement of the costs thereof.
The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum
Improvements, whether or not the Net Proceeds of insurance received by the Redeveloper for such
purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of such
repairs, construction and restoration shall be the property of the Redeveloper.
(e) In lieu of its obligation to reconstruct the Minimum Improvements or any Stage
thereof as set forth in this Section, during any period when no tax exempt Refunding Notes are
outstanding, the Redeveloper shall have the option of paying to the Authority an amount that, in the
opinion of the Authority and its fiscal consultant, is sufficient to pay or redeem the outstanding
principal and accrued interest on the Initial Notes allocable to that Stage. Such allocation shall be
based on the required minimum market value of that Stage determined under Section 6.3 as a share
of the aggregate minimum market value for the entire Minimum Improvements.
(f) The Redeveloper and the Authority agree that all of the insurance provisions set
forth in this Article V shall terminate upon the termination of this Agreement.
Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this
Article V, the rights of the Authority with respect to the receipt and application of any proceeds of
insurance shall, in all respects, be subject and subordinate to the rights of any lender under a
Mortgage approved pursuant to Article VII of this Agreement.
Section 5.3. Qualifications. Notwithstanding anything herein to the contrary, the parties
acknowledge and agree that the provisions of this Article hereof shall not apply to any
condominium unit (whether residential or commercial) from and after the date that such unit is
substantially completed and sold to an owner for commercial or residential use (as the case may
be).
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ARTICLE VI
Redevelopment Assistance Grant; Taxes
Section 6.1. Right to Collect Delinquent Taxes. The Redeveloper acknowledges that the
Authority is providing substantial aid and assistance in furtherance of the redevelopment described
in this agreement through issuance of the Redevelopment Assistance Grant (“Grant”). To that end,
until the Termination Date the Redeveloper agrees for itself, its successors and assigns, in addition
to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by reason of this
Agreement to pay before delinquency all real estate taxes assessed against the Redevelopment
Property and the Minimum Improvements. The Redeveloper acknowledges that this obligation
creates a contractual right on behalf of the Authority to sue the Redeveloper or its successors and
assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the
same as a tax payment to the county auditor. In any such suit, the Authority shall also be entitled to
recover its costs, expenses and reasonable attorney fees. The parties agree and understand that upon
a permitted Transfer under Section 8.3, any transferee assumes the obligation under this Section as
to the property transferred, and the original Redeveloper is released.
Section 6.2. Reduction of Taxes. The Redeveloper agrees that prior to completion of the
Minimum Improvements, it will not cause a reduction in the real property taxes paid in respect of
the Redevelopment Property through: (A) willful destruction of the Minimum Improvements or any
part thereof; (B) willful refusal to reconstruct damaged or destroyed property, except to the extent
otherwise provided in Section 5.1(e); (C) subject to Section 6.3, apply for a deferral or abatement of
property tax on the Redevelopment Property pursuant to any law; or (D) convey or transfer or allow
conveyance or transfer of the Redevelopment Property to any entity that is exempt from payment of
real property taxes under State law (other than any portion thereof dedicated or conveyed to the
Authority in accordance with this Agreement).
Section 6.3. Assessment Agreements. (a) Before issuance of the Grant under Section 7.3
(or disbursement of proceeds of such grant, as the case may be), the Redeveloper shall, with the
Authority, execute one or more Assessment Agreements pursuant to Minnesota Statutes, Section
469.177, subd. 8, specifying an assessor’s minimum market value for the Minimum Improvements
together with the Parcel on which they are constructed. The amount of minimum market will be as
follows:
$1,000,000 as of January 1, 2008
$3,000,000 as of January 2, 2009, and as of each January 2, thereafter, terminating
as of January 3, 2017.
(b) Each Assessment Agreement shall be substantially in the form attached hereto as
Schedule D. Nothing in the Assessment Agreement shall limit the discretion of the assessor to
assign a market value to the property in excess of such assessor’s minimum Market Value nor
prohibit the Redeveloper from seeking through the exercise of legal or administrative remedies a
reduction in such market value for property tax purposes, provided however, that the Redeveloper
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shall not seek a reduction of such market value below the assessor’s minimum Market Value in any
year so long as such Assessment Agreement shall remain in effect.
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ARTICLE VII
Financing
Section 7.1. Redeveloper Financing. (a) Before commencement of construction of the
Minimum Improvements, Redeveloper shall submit to the Authority evidence of one or more
commitments for financing which, together with committed equity, is sufficient for the acquisition
of the Redevelopment Property and construction of the Minimum Improvements. Such
commitments may be submitted as short term financing, long term mortgage financing, a bridge
loan with a long term takeout financing commitment, or any combination of the foregoing. The
Grant shall be issued as provided in this Section subsequent to completion of the Minimum
Improvements.
(b) If the Authority finds that the financing is sufficiently committed and adequate in
amount to provide for the undertakings described in paragraph (a), then the Authority shall notify
the Redeveloper in writing of its approval. Such approval shall not be unreasonably withheld
and either approval or rejection shall be given within ten (10) days from the date when the
Authority is provided the evidence of financing. A failure by the Authority to respond to such
evidence of financing shall be deemed to constitute an approval hereunder. If the Authority
rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for
the rejection. In any event the Redeveloper shall submit adequate evidence of financing within
ten (10) days after such rejection.
(c) In the event that there occurs a default under any Mortgage, the Redeveloper shall
cause the Authority to receive copies of any notice of default received by the Redeveloper from
the holder of such Mortgage. Redeveloper will include in any Mortgage documents a provision
giving the Authority the right, but not the obligation, to cure any such default on behalf of the
Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage
documents. In the event there is an event of default under this Agreement, the Authority will
transmit to the Holder of any Mortgage a copy of any notice of default given by the Authority
pursuant to Article IX of this Agreement.
Section 7.2. Subordination. In order to facilitate the Redeveloper obtaining financing for
the development of the Minimum Improvements, the Authority agrees to subordinate its rights
under this Agreement to the Holder of any Mortgage, provided that (i) such subordination shall be
subject to such reasonable terms and conditions as the Authority and Holder of a Mortgage mutually
agree in writing; (ii) any subordination agreement must include the provision described in Section
7.1(c), and (iii) the Authority will not subordinate the Authority’s rights under any Assessment
Agreement.
Section 7.3. Authority Financing; Disbursement of Redevelopment Assistance Grant. (a)
Generally. In order to make development of the Minimum Improvements financially feasible, the
Authority will reimburse the Redeveloper for Public Redevelopment Costs incurred by the
Redeveloper, through issuance of installments of the Redevelopment Assistance Grant (the
“Grant”) in accordance with the terms of this Section. The Authority will issue, and the
Redeveloper will purchase, the Authority’s Redevelopment Assistance Grant Note (the “Note”) in
the principal amount of $400,000, at zero per cent interest, payable according to the following
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schedule over ten (10) years:
Year Amount
2009 $62,000
2010 $57,000
2011 $53,000
2012 $48,000
2013 $43,000
2014 $38,000
2015 $33,000
2016 $27,000
2017 $22,000
2018 $17,000
TOTAL $400,000
The initial installment of the Note shall be disbursed on February 1, 2009, with each
subsequent installment issued on each February 1 thereafter, and with the last installment disbursed
on February 1, 2018. Each installment shall be disbursed as provided in this Section so long as
Redeveloper is in compliance with this Agreement on the respective disbursement date, including
the Redeveloper having submitted, and the Authority having approved, Public Redevelopment
Costs. Disbursement of the installments of the Note is also subject to the Redeveloper being in
compliance with the requirements of Section 7.4 of this Agreement. The form of the Note is
disclosed at Schedule F.
(b) Qualifications. Redeveloper expressly acknowledges that estimates of cost and
revenue projections for construction of the Minimum Improvements prepared by the Authority or
its financial advisors in connection with the Grant or this Agreement are for the benefit of the
Authority, and are not intended as representations on which the Redeveloper may rely. The
Redeveloper acknowledges that the Public Redevelopment Costs likely exceed the proceeds of
the Grant, and that such excess is the sole responsibility of Redeveloper.
Section 7.4. Lookback. (a) Generally. The financial assistance to the Redeveloper under
this Agreement is based on certain assumptions regarding likely costs and expenses associated
with constructing the Minimum Improvements on the Redevelopment Property. The Authority
and the Redeveloper agree that those assumptions will be reviewed at the times described in this
Section, and that the amount of the Grant assistance from the Note provided under Section 7.3
will be adjusted accordingly.
(b) Repayment of Assistance. (i) Within 60 days of issuance of the Certificate of
Completion and the Redeveloper achieving 95% leasing of the net commercial office space on the
Redevelopment Property, or within 60 days after any Transfer of the Redevelopment Property
(excluding any Transfer to an Affiliate) which is approved by the Authority as required by
Article VIII and that occurs within five years after the date of issuance of the Certificate of
Completion for the Minimum Improvements, which ever occurs first (each a “Triggering
Event”), the Redeveloper must deliver to the Authority evidence of its annualized cumulative
internal rate of return from the Redevelopment Property and Minimum Improvements (the
“IRR”), calculated as of the respective applicable Triggering Event. The IRR shall be calculated
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with equity, revenues and expenses all determined in accordance with generally accepted
accounting principles, provided that the amount of Redeveloper’s equity must exclude the
principal amount of the Grant and Note, and any developer’s fee in excess of ten (10) percent
(10.0 %) of total development costs. The Redeveloper agrees to provide to the Authority’s
consultant any background documentation related to the financial data, upon request. The
Authority may request a written certificate of a certified public accountant regarding total
redevelopment costs and revenues, to be provided at Redeveloper’s expense.
(ii) The amount by which the IRR exceeds ten percent (10.0 %) is a percentage
referred to as “Excess Percentage.” The Excess Percentage, multiplied by Redeveloper’s equity
(as calculated for purposes of determining the IRR), is the “Participation Amount.” The
Redeveloper must pay 50 percent (50%) of the Participation Amount to the Authority upon the
occurrence of the Triggering Event.
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ARTICLE VIII
Prohibitions Against Assignment and Transfer; Indemnification
Section 8.1. Representation as to Development. The Redeveloper represents and agrees
that its purchase of the Redevelopment Property, and its other undertakings pursuant to the
Agreement, are, and will be used, for the purpose of redevelopment of the Redevelopment Property
and not for speculation in land holding.
Section 8.2. Prohibition Against Redeveloper’s Transfer of Property and Assignment of
Agreement. The Redeveloper represents and agrees that until the completion of construction of
any Stage of the Minimum Improvements:
(a) Except as specifically described in this Agreement, the Redeveloper has not made or
created and will not make or create or suffer to be made or created any total or partial sale,
assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or
with respect to this Agreement or the Redevelopment Property, or any contract or agreement to do
any of the same, to any person or entity (collectively, a “Transfer”), without the prior written
approval of the Authority. The term “Transfer” does not include (i) encumbrances made or granted
by way of security for, and only for, the purpose of obtaining construction, interim or permanent
financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment
Property or to construct the Minimum Improvements, (ii) any lease, license, easement or similar
arrangement entered into in the ordinary course of business related to operation of the Minimum
Improvements, (iii) any sale, conveyance, or transfer in any form to any Affiliate, or (iv) any change
in ownership of the Redeveloper so long as the identity of the parties in control of Redeveloper do
not change. Any such Transfer is subject to the provisions of this Section.
(b) If the Redeveloper seeks to effect a Transfer, the Authority shall be entitled to
require as conditions to such Transfer that:
(1) Any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of the Authority, necessary and adequate to
fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion
of the Redevelopment Property to be transferred; and
(2) Any proposed transferee, by instrument in writing satisfactory to the
Authority and in form recordable in the public land records of Hennepin County,
Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of
the Authority, have expressly assumed all of the obligations of the Redeveloper under
this Agreement as to the portion of the Redevelopment Property to be transferred and
agreed to be subject to all the conditions and restrictions to which the Redeveloper is
subject as to such portion; provided, however, that the fact that any transferee of, or any
other successor in interest whatsoever to, the Redevelopment Property, or any part
thereof, has not, for whatever reason, assumed such obligations or so agreed, shall not
(unless and only to the extent otherwise specifically provided in this Agreement or agreed
to in writing by the Authority) deprive the Authority of any rights or remedies or controls
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with respect to the Redevelopment Property, the Minimum Improvements, or any part
thereof or the construction of the Minimum Improvements; it being the intent of the
parties as expressed in this Agreement that prior to completion of any Stage (to the fullest
extent permitted at law and in equity and excepting only in the manner and to the extent
specifically provided otherwise in this Agreement) no transfer of, or change with respect
to, ownership in the Redevelopment Property relating to such Stage or any part thereof,
or any interest therein, however consummated or occurring, and whether voluntary or
involuntary, shall operate, legally, or practically, to deprive or limit the Authority of or
with respect to any rights or remedies on controls provided in or resulting from this
Agreement with respect to the Redevelopment Property relating to such Stage that the
Authority would have had, had there been no such transfer or change. In the absence of
specific written agreement by the Authority to the contrary, no such transfer or approval
by the Authority thereof shall be deemed to relieve the Redeveloper, or any other party
bound in any way by this Agreement or otherwise with respect to the Redevelopment
Property, from any of its obligations with respect thereto.
(3) Any and all instruments and other legal documents involved in effecting
the transfer of any interest in this Agreement or the Redevelopment Property governed by
this Article VIII, shall be in a form reasonably satisfactory to the Authority.
(c) If the conditions described in paragraph (b) are satisfied, then the Transfer will be
approved and the Redeveloper shall be released from its obligation under this Agreement, as to
the portion of the Redevelopment Property that is transferred, assigned, or otherwise conveyed,
unless the parties mutually agree otherwise. The Authority will review and respond to a request
for Transfer within 30 days after receipt of a written request. Notwithstanding anything to the
contrary herein, any Transfer that releases the Redeveloper from its obligations under this
Agreement (or any portion thereof) shall be approved by the Authority’s Board of
Commissioners. If the Redeveloper remains fully bound under this Agreement notwithstanding
the Transfer, as documented in the transfer instrument, the Transfer may be approved by the
Authority Representative. The provisions of this paragraph (c) apply to all subsequent
transferors.
Section 8.3. Release and Indemnification Covenants. (a) Except for any willful or wanton
misconduct or negligence of the following named parties, the Redeveloper releases from and
covenants and agrees that the Authority and the governing body members, officers, agents, servants
and employees thereof shall not be liable for and agrees to indemnify and hold harmless the
Authority and the governing body members, officers, agents, servants and employees thereof
against any loss or damage to property or any injury to or death of any person occurring at or about
or resulting from any defect in the Minimum Improvements.
(b) Except for any willful misrepresentation or any willful or wanton misconduct or
negligence of the following named parties, the Redeveloper agrees to protect and defend the
Authority and the governing body members, officers, agents, servants and employees thereof, now
or forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or
other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from
this Agreement, or the transactions contemplated hereby or the acquisition, construction,
installation, ownership, maintenance and operation of the Minimum Improvements.
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(c) The Authority and the governing body members, officers, agents, servants and
employees thereof shall not be liable for any damage or injury to the property of the Redeveloper or
its officers, agents, servants or employees or any other person who may be about the
Redevelopment Property, Minimum Improvements due to any act of negligence of any person.
(d) All covenants, stipulations, promises, agreements and obligations of the Authority
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the Authority and not of any governing body member, officer, agent, servant or
employee of the Authority in the individual capacity thereof.
320209v8 MTN SA285-86
21
ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined. The following shall be “Events of Default” under
this Agreement and the term “Event of Default” shall mean, whenever it is used in this Agreement
(unless the context otherwise provides):
(a) Failure by the Redeveloper or Authority to observe or perform any covenant,
condition, obligation, or agreement on its part to be observed or performed under this Agreement, or
any covenant, condition or agreement imposed as part of the Authority approval of the Plat or the
PUD.
(b) If, before issuance of the Certificate of Completion for all the Minimum
Improvements, the Redeveloper shall
(i) file any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United States
Bankruptcy Act or under any similar federal or State law; or
(ii) make an assignment for benefit of its creditors; or
(iii) admit in writing its inability to pay its debts generally as they become due; or
(iv) be adjudicated a bankrupt or insolvent.
Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section
9.1 of this Agreement occurs, the non-defaulting party may exercise its rights under this Section 9.2
after providing thirty days written notice to the defaulting party of the Event of Default, but only if
the Event of Default has not been cured within said thirty days or, if the Event of Default is by its
nature incurable within thirty days, the defaulting party does not provide assurances reasonably
satisfactory to the non-defaulting party that the Event of Default will be cured and will be cured as
soon as reasonably possible:
(a) Suspend its performance under the Agreement until it receives assurances that the
defaulting party will cure its default and continue its performance under the Agreement.
(b) Upon an Event of Default by the Redeveloper, the Authority may withhold
payments under the Grant, which withheld amount is payable, without interest thereon, on the first
payment date after the default is cured.
(c) Upon default by Redeveloper, cancel and rescind or terminate this Agreement..
(d) Take whatever action, including legal, equitable or administrative action, which may
appear necessary or desirable to collect any payments due under this Agreement, or to enforce
performance and observance of any obligation, agreement, or covenant under this Agreement.
320209v8 MTN SA285-86
22
Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under this Agreement or now or hereafter existing at law or in equity or by statute.
No delay or omission to exercise any right or power accruing upon any default shall impair any
such right or power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient. In order to entitle
the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other
than such notice as may be required in this Article IX.
Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breached by either party and thereafter waived by the
other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
320209v8 MTN SA285-86
23
ARTICLE X
Additional Provisions
Section 10.1. Conflict of Interests; Authority Representatives Not Individually Liable. The
Authority and the Redeveloper, to the best of their respective knowledge, represent and agree that
no member, official, or employee of the Authority shall have any personal interest, direct or
indirect, in the Agreement, nor shall any such member, official, or employee participate in any
decision relating to the Agreement which affects his personal interests or the interests of any
corporation, partnership, or association in which he is, directly or indirectly, interested. No
member, official, or employee of the Authority shall be personally liable to the Redeveloper, or any
successor in interest, in the event of any default or breach by the Authority or County or for any
amount which may become due to the Redeveloper or successor or on any obligations under the
terms of the Agreement.
Section 10.2. Equal Employment Opportunity. The Redeveloper, for itself and its
successors and assigns, agrees that during the construction of the Minimum Improvements provided
for in the Agreement it will comply with all applicable federal, state and local equal employment
and non-discrimination laws and regulations.
Section 10.3. Restrictions on Use. The Redeveloper agrees that, prior to the Termination
Date, the Redeveloper, and such successors and assigns, shall devote any part of the Redevelopment
Property then owned by it to the operation of the Minimum Improvements in accordance with this
Agreement and shall not discriminate upon the basis of race, color, creed, sex or national origin in
the sale, lease, or rental or in the use or occupancy of the Redevelopment Property or any
improvements erected or to be erected thereon, or any part thereof. 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.
Section 10.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any of its provisions.
Section 10.5. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under the Agreement by either party to the
other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally; and
(a) in the case of the Redeveloper, is addressed to or delivered personally to the
Redeveloper c/o Anderson Builders, 3555 Louisiana Avenue So., St. Louis Park, MN 55426; and
(b) in the case of the Authority, is addressed to or delivered personally to the Authority
at 5005 Minnetonka Boulevard, St. Louis Park, Minnesota 55416, Attn: Executive Director; or
at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section.
320209v8 MTN SA285-86
24
Section 10.6. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 10.7. Recording. The Authority may record this Agreement and any amendments
thereto with the Hennepin County recorder. The Redeveloper shall pay all costs for recording.
Section 10.8. Minnesota Law. This Agreement will be construed in accordance with the
laws of the State, and any claim arising from this Agreement will be adjudicated in the State.
Section 10.9. Disclaimer of Relationships. The Redeveloper acknowledges that nothing
contained in this Agreement nor any act by the Authority or the Redeveloper shall be deemed or
construed by the Redeveloper or by any third person to create any relationship of third-party
beneficiary, principal and agent, limited or general partner, or joint venture between the Authority
and the Redeveloper.
Section 10.10. Modifications. This Agreement may be modified solely through written
amendments hereto executed by the Redeveloper and the Authority.
Section 10.11. Authority or City Approvals. Unless otherwise specified, any approval
required by the Authority under this Agreement may be given by the Authority Representative.
320209v8 MTN SA285-86
S-1
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused
this Agreement to be duly executed in its name and behalf as of the date first above written.
ST. LOUIS PARK ECONOMIC DEVELOPMENT
AUTHORITY
By
Its President
By
Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of ________, 2007 by
__________________ and ______________________, the President and Executive Director,
respectively, of the Economic Development Authority of St. Louis Park, Minnesota, on behalf of
the Authority.
Notary Public
320209v8 MTN SA285-86
S-2
ANDERSON BUILDERS
By
Its
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of _______, 2007 by
______________________, the ______________________ of Anderson Builders, a Minnesota
company, on behalf of the company.
Notary Public
320209v8 MTN SA285-86 A-1 SCHEDULE A LEGAL DESCRIPTION OF REDEVELOPMENT PROPERTY
320209v8 MTN SA285-86 B-1SCHEDULE B SITE PLAN
320209v8 MTN SA285-86
C-1
SCHEDULE C
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Anderson Builders (the “Redeveloper”) has fully
complied with its obligations under Articles III and IV of that document titled “Contract for Private
Redevelopment,” dated ________, 2008 between the St. Louis Park Economic Development
Authority and the Redeveloper (the “Contract”), with respect to construction of the Minimum
Improvements in accordance with the Construction Plans, and that the Redeveloper is released and
forever discharged from its obligations to construct the Minimum Improvements under Articles III and
IV.
Dated: _______________, 20___. ST. LOUIS PARK ECONOMIC DEVELOPMENT
AUTHORITY
By
Executive Director
320209v8 MTN SA285-86 D-1
SCHEDULE D
FORM OF ASSESSMENT AGREEMENT
ASSESSMENT AGREEMENT
and
ASSESSOR’S CERTIFICATION
By and Between
ST LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
and
ANDERSON BUILDERS
This Document was drafted by:
KENNEDY & GRAVEN, Chartered
470 US Bank Plaza
200 South Sixth Street
Minneapolis, Minnesota 55402
320209v8 MTN SA285-86 D-2
ASSESSMENT AGREEMENT
[Oak Hill II Office Building]
THIS AGREEMENT, made on or as of the ____ day of _________________, 20____ by
and between the St. Louis Park Economic Development Authority, a public body, corporate and
politic (the “Authority”) and Anderson Builders, a Minnesota company (the “Redeveloper”).
WITNESSETH, that
WHEREAS, on or before the date hereof the Authority and the Redeveloper have entered
into a Contract for Private Development dated ______, 2007 (the “Contract”), pursuant to which the
Authority is to facilitate development of certain property in the City of St. Louis Park (the “City”)
hereinafter referred to as the “Property” and legally described in Exhibit A hereto; and
WHEREAS, pursuant to the Contract the Redeveloper is obligated to construct certain
improvements upon the Property referred to as the Oak Hill II Office Building.
WHEREAS, it is intended that the Redeveloper will establish the Redevelopment Property
as a commercial office building by constructing the Minimum Improvements as described in the
Contract and rent office space in the Redevelopment Property; and
WHEREAS, the Authority and Redeveloper desire to establish a minimum market value for
the Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota
Statutes, Section 469.177, Subdivision 8; and
WHEREAS, the Redeveloper represents that it has acquired and now owns fee title to all of
the Redevelopment Property and will continue to own the Redevelopment Property; and
WHEREAS, the Authority and the County Assessor (the “Assessor”) have reviewed the
preliminary plans and specifications for the improvements and have inspected such improvements;
NOW, THEREFORE, the parties to this Agreement, in consideration of the promises,
covenants and agreements made by each to the other, do hereby agree as follows:
1. The minimum market value which shall be assessed for ad valorem tax purposes for
the Property described in Exhibit A shall be $1,000,000, as of January 2, 2008 notwithstanding the
progress of construction by such date, and as of each January 2 thereafter the minimum market
value which shall be assessed for ad valorem tax purposes for the Property described in Exhibit A
shall be $3,000,000 until termination of this Agreement under Section 2 hereof.
2. The minimum market value herein established shall be of no further force and effect
and this Agreement shall terminate on the Termination Date as defined in the Contract (January 2,
2018. The event referred to in Section 2 of this Agreement shall be evidenced by a certificate or
affidavit executed by the Authority.
320209v8 MTN SA285-86 D-3
3. This Agreement shall be promptly recorded by the Authority. The Redeveloper
shall pay all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to, nor shall
they be construed as, modifying the terms of the Contract between the Authority and the
Redeveloper.
5. This Agreement shall inure to the benefit of and be binding upon the successors and
assigns of the parties.
6. Each of the parties has authority to enter into this Agreement and to take all actions
required of it, and has taken all actions necessary to authorize the execution and delivery of this
Agreement.
7. In the event any provision of this Agreement shall be held invalid and unenforceable
by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable
any other provision hereof.
8. The parties hereto agree that they will, from time to time, execute, acknowledge and
deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and
modifications hereto, and such further instruments as may reasonably be required for correcting any
inadequate, or incorrect, or amended description of the Property or the Minimum Improvements or
for carrying out the expressed intention of this Agreement, including, without limitation, any further
instruments required to delete from the description of the Property such part or parts as may be
included within a separate assessment agreement.
9. Except as provided in Section 8 of this Agreement, this Agreement may not be
amended nor any of its terms modified except by a writing authorized and executed by all parties
hereto.
10. This Agreement may be simultaneously executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same instrument.
11. This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
320209v8 MTN SA285-86 D-4
IN WITNESS WHEREOF, the Authority and the Redeveloper have caused this Assessment
Agreement to be executed in their names and on their behalf by their duly authorized
representatives all as of the date set forth above.
ST. LOUIS PARK ECONOMIC
DEVELOPMENT AUTHORITY
By:____________________________________
Its President
By:____________________________________
Its Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of ____, 2007, by
__________________________ and __________________________, the President and
Executive Director, respectively, of the St. Louis Park Economic Development Authority, on
behalf of said Authority.
_______________________________________
Notary Public
320209v8 MTN SA285-86 D-5
ANDERSON BUILDERS
By:____________________________________
Its: _________________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
This instrument was acknowledged before me on ____________, 2007, by
__________________________________, the ________________, of Anderson Builders, a
Minnesota company, on behalf of said company.
_______________________________________
Notary Public
320209v8 MTN SA285-86 D-6
CERTIFICATION BY CITY ASSESSOR
The undersigned, having reviewed certain plans for the Minimum Improvements to be
constructed and the market value assigned to the land upon which the Minimum Improvements
are to be constructed, as described in this Assessment Agreement, hereby states as follows: The
undersigned Assessor, being legally responsible for the assessment of the above described
property, hereby certifies that the $1.000,000 initial minimum market value, increased to
$3,375,000 minimum market value hereinabove in Section 1 assigned to the Redevelopment
Property and Minimum Improvements is reasonable.
_______________________________________
City Assessor
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
This instrument was acknowledged before me on ____________, 2007, by
_________________, the City Assessor of St. Louis Park.
_______________________________________
Notary Public
320209v8 MTN SA285-86 D-7
EXHIBIT A TO ASSESSMENT AGREEMENT
Legal Description of Redevelopment Property
320209v8 MTN SA285-86 E-1
SCHEDULE E
REDEVELOPER PRO FORMAS
320209v8 MTN SA285-86 F-1
SCHEDULE F
FORM OF NOTE
Meeting Date: October 8, 2007
Agenda Item #: 6
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
Tobacco Penalties
RECOMMENDED ACTION:
Council to review the draft ordinance and provide staff with any changes to the ordinance as proposed.
Once any changes are incorporated into the draft ordinance, staff will meet with tobacco license holders
to discuss the proposed changes. Feedback from the license holders will presented to Council at a future
study session meeting.
POLICY CONSIDERATION:
• Are the proposed changes to the administrative penalties section of the ordinance sufficient?
• Is Council ready for staff to meet with the tobacco license holders to find out how they feel about
the proposed changes to the ordinance?
BACKGROUND:
Staff met with Council at their August 27, 2007 study session to discuss options for amending and
increasing administrative penalties for sellers of tobacco to minors. Council directed staff to make the
following changes:
• Increase penalties for sale of tobacco to minors
• Educate license holders
• Extend the timeframe for second and third violations
• Revocation of repeat violations (4 violations with 36 months)
• Provide table of penalties similar to the alcoholic beverages penalties.
Staff also would recommend that upon adoption of a revised ordinance, the city would not count previous
violations toward determining the penalty. That is to say that if the establishment failed a compliance
check for sale of tobacco to a minor, it would be considered a first time violation.
FINANCIAL OR BUDGET CONSIDERATION:
Not at this time. Penalties are part of the ordinance and not a part of the fee schedule, so if approved, this
would not have an affect on the 2007 budget or the proposed 2008 budget.
The penalties are meant to serve as a deterrent to establishments; the ordinance is being revised with the
hope that establishments will be in compliance and there will be no need to collect fees and hold
administrative hearings. However, establishments which fail compliance checks will pay more money in
penalties to the city if this ordinance is approved.
VISION CONSIDERATION:
None
Attachments: Draft Revisions to Chapter 8 Subdivision X. Tobacco Products and Tobacco Related
Devices
Prepared by: Marcia Honold, Management Assistant
Reviewed by: Nancy Gohman, Deputy City Manager/HR Director
Approved by: Tom Harmening, City Manager
Meeting of October 8, 2007 Page 2
Subject: Tobacco Penalties
Chapter 8 Subdivision X. Tobacco Products and Tobacco Related Devices
Sec. 8-371. Purpose.
Because the city finds that smoking causes premature death, disability and chronic diseases,
including cancer, heart disease and lung disease; smoking related diseases result in excess
medical care costs; and smoking initiation occurs primarily in adolescence, the city desires to
prevent young people from starting to smoke, to encourage and assist smokers to quit, and to
promote clean indoor air.
(Ord. No. 2181-00, § 4(16-311A.), 11-6-2000)
Sec. 8-372. License required.
(a) No person shall sell or offer to sell any tobacco, tobacco product or tobacco related
device without first having obtained a license to do so from the city.
(b) No license shall be issued for the sale of tobacco, tobacco products or tobacco related
devices at any place other than the applicant's place of business. No license shall be issued for a
moveable place of business; nor shall any single license be issued for the sale of tobacco,
tobacco products or tobacco related devices at more than one place of business.
(Ord. No. 2181-00, § 4(16-311B.), 11-6-2000)
Sec. 8-373. Denial of license.
The following will be grounds for denying the issuance or renewal of a license under this
subdivision, and if a license is mistakenly issued or renewed to a person, it shall be revoked upon
the discovery that the person was ineligible for the license under this section:
(1) The applicant is under the age of 18 years.
(2) The applicant has been convicted of any violation of a federal, state or local law,
ordinance or other regulation relating to tobacco, tobacco products or tobacco related
devices.
(3) The applicant has had a license to sell tobacco, tobacco products or tobacco related
devices revoked.
(4) The applicant fails to provide any information required on the license application, or
provides false or misleading information on such license application.
(5) The applicant is prohibited by federal, state or other local law, ordinance or other
regulation from holding a license under this subdivision.
(Ord. No. 2181-00, § 4(16-311C.), 11-6-2000)
Sec. 8-374. Prohibited sales.
It shall be a violation of this subdivision for any person to sell or offer to sell any tobacco,
tobacco product or tobacco related device:
Meeting of October 8, 2007 Page 3
Subject: Tobacco Penalties
(1) To any person under the age of 18 years.
(2) By means of any type of vending machine.
(3) By means of self-service merchandising whereby the customer does not need to make a
verbal or written request to an employee of the licensed premises in order to receive the
tobacco, tobacco related product or tobacco related device. All tobacco related products
shall be stored behind a counter or other area not freely accessible to customers.
(4) Containing opium, morphine, jimson weed, bella donna, strychnos, cocaine, marijuana
or other type of deleterious, hallucinogenic or toxic or controlled substance, except
nicotine, and not naturally found in tobacco or tobacco products.
(5) By any other means or to any other person prohibited by federal, state or other local
laws, ordinances or other regulations.
(Ord. No. 2181-00, § 4(16-311D.), 11-6-2000)
Sec. 8-375. Responsibility for sales.
All licensees under this subdivision shall be responsible for the actions of their employees in
regard to the sale of tobacco, tobacco products or tobacco related devices on the licensed
premises, and the sale of tobacco, tobacco products or tobacco related devices by an employee
shall be considered a sale by the licensed owner.
(Ord. No. 2181-00, § 4(16-311E.), 11-6-2000)
Sec. 8-376. Compliance checks and inspections.
All premises licensed under this subdivision shall be open to inspection by the city during
regular business hours. From time to time the city may conduct compliance checks by engaging
minors to enter the licensed premises to attempt to purchase tobacco, tobacco products or
tobacco related devices.
(Ord. No. 2181-00, § 4(16-311F.), 11-6-2000)
Sec. 8-377. Illegal acts.
Unless otherwise provided in this subdivision, the following acts shall be a violation of this
subdivision:
(1) Illegal possession. It shall be a violation of this subdivision for any minor to possess
any tobacco, tobacco product or tobacco related device. This subsection shall not apply
to minors lawfully involved in a compliance check on behalf of the city.
(2) Illegal use. It shall be a violation of this subdivision for any minor to smoke, chew,
sniff or otherwise use any tobacco, tobacco product or tobacco related device.
(3) Illegal procurement. It shall be a violation of this subdivision for any minor to purchase
or attempt to purchase, or otherwise obtain, any tobacco, tobacco product or tobacco
related device, and it shall be a violation of this subdivision for any person to purchase
or otherwise obtain such items on behalf of a minor. It shall also be a violation of this
Meeting of October 8, 2007 Page 4
Subject: Tobacco Penalties
subdivision for any person to sell or otherwise provide any tobacco, tobacco product or
tobacco related device to any minor. It shall be a violation of this subdivision for any
person to coerce or attempt to coerce a minor to illegally purchase or otherwise obtain
or use any tobacco, tobacco products or tobacco related device. This subsection shall
not apply to minors lawfully involved in a compliance check on behalf of the city.
(4) Use of false identification. It shall be a violation of this subdivision for any minor to
attempt to disguise their true age by the use of a false form of identification, whether
the identification is that of another person or one in which the age of the person has
been modified or tampered with to represent an age older than the actual age of the
minor.
(Ord. No. 2181-00, § 4(16-311G.), 11-6-2000)
Cross reference(s)--Curfew for minors, § 18-121.
Sec. 8-378. Violation; penalty.
(a) Generally. Any violation of this subdivision shall be grounds to revoke or suspend a
license under this subdivision.
(b) Criminal penalty. As set forth in M.S.A. ch. 609, it shall be a:
(1) Misdemeanor for anyone to sell tobacco related products to a person under the age of
18 years for the first violation Whoever violates this subdivision a subsequent time
within five years of a previous conviction under this subdivision is guilty of a gross
misdemeanor.
(2) Misdemeanor to furnish tobacco or tobacco related devices to a person under the age
of 18 years. Whoever violates this paragraph a subsequent time is guilty of a gross
misdemeanor.
(3) Petty misdemeanor for anyone under the age of 18 years to use, purchase, attempt to
purchase or possess tobacco related products.
(4) Petty misdemeanor for anyone under the age of 18 years to sell, furnish or give away
any tobacco related products. This subsection shall not apply to an employee of the
license holder under the age of 18 years while such employee is stocking tobacco
related products.
Section 1 Section 8-378 of the St. Louis Park City Code is amended to read
(c) Administrative penalty. A licensee shall pay to the city a civil penalty of $250.00 for an
initial violation and $500.00 for a second violation of a provision of this subdivision or a state
law governing the sale of tobacco related products within a 12-month period. The city council
may revoke or suspend a license, impose a civil penalty of up to $2,000.00 or impose a
combination of these sanctions for a third or subsequent offense of this subdivision within a 24-
month time period.
Meeting of October 8, 2007 Page 5
Subject: Tobacco Penalties
(c). Presumed penalties for Violations: The presumed penalties for violations are as
follows (unless specified, numbers below indicate consecutive days’ suspension):
Type of Violation
1st Violation 2nd Violation
within 3 yrs
3rd Violation
within 3 yrs
4th Violation
within 3 yrs
1. Commission of a felony
related to the licensed activity.
Revocation
N/A
N/A
N/A
2. Sale of tobacco while license is
under suspension.
Revocation
N/A
N/A
N/A
3. Sale of tobacco
to underage person:
$250
$750 and
1 day
$2,000 and
3 days
Revocation
4. Refusal to allow government
inspectors or police admission
to inspect premises.
5 days
15 days
Revocation
N/A
5. Illegal gambling on premises.
3 days
6 days
18 days
Revocation
6. Failure to attend mandatory
education training
Revocation
The penalty for violations without a presumptive penalty shall be determined by the City
Council. The imposition of the presumptive penalty shall be a written notice to the licensee and
may be appealed through an administrative hearing process as set by the city manager. The city
manager's decision may be appealed to the city council by filing a written appeal to the city clerk
within ten days of receiving written notice of the city manager's decision.
(d). Multiple violations: At a licensee’s first appearance before the Council, the Council must
act upon all of the violations that have been alleged in the notice sent to the licensee. The
Council in that case must consider the presumptive penalty for each violation under the first
appearance column in subsection (B) above. The occurrence of multiple violations is grounds
for deviation from the presumed penalties in the Council’s discretion.
(e). Subsequent violations: Violations occurring after the notice of hearing has been mailed,
but prior to the hearing, must be treated as a separate violation and dealt with as a second
appearance before the Council, unless the City Manager and licensee agree in writing to add the
violation to the first appearance. The same procedure applies to the second, third, or fourth
appearance before the Council.
(f). Subsequent appearances: Upon a second, third, or fourth appearance before the Council
by the same licensee, the Council must impose the presumptive penalty for the violation or
violations giving rise to the subsequent appearance without regard to the particular violation or
violations that were the subject of the first or prior appearance. However, the Council may
consider the amount of time elapsed between appearances as a basis for deviating from the
presumptive penalty imposed by this Section.
(g). Computation of violations: Multiple violations are computed by checking the time period
of the three (3) years immediately prior to the date of the most current violation.
Meeting of October 8, 2007 Page 6
Subject: Tobacco Penalties
(h). Other penalties: Nothing in this Section shall restrict or limit the authority of the Council
to suspend up to sixty (60) days, revoke the license, impose a civil fee not to exceed two
thousand dollars ($2,000.00), to impose conditions, or take any other action in accordance with
law; provided, that the license holder has been afforded an opportunity for a hearing in the
manner provided in this Chapter.
(i). Additional Requirements. In addition to civil penalties, every licensee that has been found
in violation of this Chapter must enter into and complete a education training program approved
by the City’s Police Department.
(d) Notice and hearing. The imposition of the civil penalty shall be a written notice to the
licensee and may be appealed through an administrative hearing before the city manager. The
city manager's decision may be appealed to the city council by filing a written appeal to the city
clerk within ten days of receiving written notice of the city manager's decision.
(e) Revocation or suspension. Revocation or suspension of a license by the city council shall
be preceded by a public hearing. The city council may appoint a hearing examiner or may
conduct a hearing itself. The hearing notice shall be given at least 20 days prior to the hearing,
include notice of the time and place of the hearing and state the nature of the charges against the
licensee and specify the penalty that the city may impose for the violation.
(f) Criminal prosecution. Any civil penalty, suspension or revocation, or combination
thereof, under this section does not preclude criminal prosecution under this subdivision or under
any applicable state statute.
(g) (j). Exceptions and defenses. Nothing in this subdivision shall prevent the providing of
tobacco, tobacco products or tobacco related devices to a minor as part of a bona fide religious,
spiritual or cultural ceremony. It shall be an affirmative defense to a violation of this subdivision
for a person to have reasonably relied upon proof of age as set forth by state law.
(Ord. No. 2181-00, § 4(16-311H.), 11-6-2000)
Secs. 8-379--8-395. Reserved.
Meeting Date: October 8, 2007
Agenda Item #: 7
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
Electronic Agenda
RECOMMENDED ACTION:
No action required at this time. Clint Pires, Chief Information Officer and Nancy Gohman,
Deputy City Manager/HR Director will set up individual meetings with Council members to
discuss Councilmember preferences and to follow-up on technology needs.
POLICY CONSIDERATION:
• How does each Council member want to receive their agenda packets (paper format or
electronically)?
• For Council members who opt to receive electronic agendas: Would you like to use a
city-issued computer laptop? (If Council uses their own equipment – we need to discuss
technical requirements and maintenance expectations).
BACKGROUND:
Staff has completed the evaluation of the current agenda process and has taken the necessary
steps to produce the agenda electronically. The upgrade to electronic has corrected the technical
difficulties we were experiencing and allowed staff to post the complete packet on the city’s
website. For the present, staff continues to make paper copies of the packets for Council as well
as one public copy, which is required by law.
Now that the study session and council meeting agendas are available electronically, Council can
elect to receive a paper copy of the agenda or the electronic version, which can be opened with
Adobe Acrobat. Electronic agendas will be delivered by e-mail, copied onto a CD or
downloaded from the website. Council members who receive electronic agenda packets will
need to use city-owned or personal laptop.
FINANCIAL OR BUDGET CONSIDERATION:
The transition to electronic agendas will save approximately $1,000 - $1,500 per year and an
estimated 10,000 to 15,000 sheets of paper per month. Acquisition of hardware and software for
each Council member will cost approximately $2,000. Funds are available for this equipment in
the Technology Replacement Fund.
VISION CONSIDERATION:
Moving the agenda to the web allows individuals to view the document and reduces the number
of paper copies printed and distributed to staff and the public. This is in line with the strategic
direction adopted by the Council regarding the City being environmental stewards.
Prepared by: Marcia Honold, Management Assistant
Reviewed by: Nancy Gohman, Deputy City Manager/Human Resource Director
Approved by: Tom Harmening, City Manager
Meeting Date: October 8, 2007
Agenda Item #: 8
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
St. Louis Park Active Community Planning Update
BACKGROUND:
The goal of Active Community Planning is to integrate public health into community planning
and design and promote opportunities for physical activity as part of residents’ daily routines.
The funding for this project comes from Blue Cross Blue Shield of Minnesota’s Prevention
Minnesota initiative.
General Project Tasks:
Assess the current sidewalk and trail system and plans
Gather community input
Develop goals and policies that integrate health and physical activity into land use decisions
and infrastructure investments
Update the Bicycle and Pedestrian section of the Comprehensive Plan
Update the Transit section of the Comprehensive Plan
Develop implementation plans and marketing materials
The City hired SRF Consulting Group and appointed a citizen advisory committee (CAC) work
on the plan. The next CAC meeting is October 10, when the committee will review the draft
plan.
The draft plan consists of 1) proposed policies for sidewalks, trails and transit; and 2) a series of
potential physical improvements. Staff intends to present the draft plan to City Council at the
October 22nd Study Session. The City will host a Community Open House on Wednesday,
October 24th from 6 p.m. to 8 p.m. in the Banquet Room at The Rec Center to get public
feedback on the draft plan.
PUBLIC INPUT:
The draft plan incorporates public input from Vision St. Louis Park, the City Council’s Strategic
Directions, a community workshop, the CAC, and over 200 responses to an online questionnaire.
Brief summaries of the community workshop comments and the responses to the online
questionnaire are attached. A complete list of open-ended responses to the questionnaire is
posted on the City website under “What’s New.”
KEY FINDINGS:
Below is a summary of some of the findings. A comprehensive list will be included in the draft
report, which will be provided at the City Council Study Session on October 22nd:
Most of the community’s attitudes and basic goals for the pedestrian and sidewalk systems
did not change since the previous major sidewalk and trail planning effort in 1999.
Trail use, bicycle ridership, and transit ridership is growing significantly.
Meeting of October 8, 2007 Page 2
Subject: St. Louis Park Active Community Planning Update
There is a growing and sustained demand for more sidewalks and trails, better
accommodation for bicycles, and improved connections to important destinations (i.e.
schools, community parks, shopping and employment centers, and transit).
There are many gaps in the sidewalk system and a community desire to complete those
connections.
Improving the safety of pedestrian crossings at major intersections is a high priority
There is a strong desire community-wide for more pedestrian/bicycle crossings of major
highway and railroad barriers, and certain neighborhoods are cut off from nearby amenities.
The regional trails are the main arteries of St. Louis Park’s bicycle system. They are
important recreational and transportation resources for the community. Efforts to create new
connections to the regional trails in the past seven years improved access for adjacent
neighborhoods. The rest of the City’s trail system is confined to parks. There are few trail
and bicycle connections from the regional trail system to key destinations.
KEY PROPOSALS:
The draft plan consists of a series of “key proposals.” The proposals include a comprehensive
set of policies and physical improvements. The physical improvement projects are concentrated
around community parks, community gathering spaces, transit and schools. The plan suggests
focusing short-term investments in areas that also help to achieve a citywide pedestrian grid
system every ¼-mile and bicycle grid system each ½-mile. A general list of the types of physical
improvements includes:
Additional sidewalk installation to fill existing gaps and complete a city pedestrian grid
Pedestrian crossing improvements at 14 problem intersections identified by the community
and accident information
Transit shelter upgrades and installations at major transit stops
New or improved pedestrian bridges over Highway 100 and the BN Railroad tracks
On-road bicycle routes (bike lane/share the road)
Other proposals are very long-term and will not come about in five, 10 or even 15 years. These
“future” opportunities deserve additional study and consideration. Possible future improvements
include a new north-south regional trail corridor along the CP Rail Line, a Minnehaha Creek
trail, and possibly a network of “green” streets (road designs that incorporate significant
landscaping, provide innovative stormwater management, accommodate pedestrians and
bicyclists, etc.) All these projects would need a great deal of community support and/or
investment, and may hinge on events outside the City’s control.
The CAC, City Council, and the community will review the proposals in coming weeks. If the
proposals are well received, staff and SRF Consulting Group will proceed with implementation
planning, including cost estimates and schedules, for City Council consideration in November.
VISION CONSIDERATION:
This item relates directly to the following City Council adopted Strategic Directions and Action
Items:
Strategic Direction: St. Louis Park is committed to being a connected and engaged
community
o Action: Develop an expanded and organized network of sidewalks and trails
o Action: Evaluate and investigate additional north/south transportation options for the
community
Meeting of October 8, 2007 Page 3
Subject: St. Louis Park Active Community Planning Update
o Action: Increase use of new and existing gathering places and ensure accessibility
throughout the community
This item relates indirectly to the following Strategic Direction:
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.
Attachments:
Workshop Comments Summary
Information about questionnaire respondents
Brief summary of open-ended responses from the online questionnaire
Prepared by: Sean Walther, Senior Planner
Reviewed by: Meg McMonigal, Planning and Zoning Supervisor
Kevin Locke, Community Development Director
Approved by: Tom Harmening, City Manager
H:\Projects\6016\LA\DOC\Community Mtg materials\breakout session summary.doc 1
Community Workshop, May 17, 2007 SRF Project #6016
Break out session summaries
WEST FOCUS GROUP
Sidewalk Issues:
Difficult sidewalk crossings (in general)
Need for pleasant transit connections and streetscape improvements
Missing sidewalk links
TH 7 crossings are hazardous for pedestrians
Cub Foods site connections to adjacent neighborhood
New developments need to be pedestrian friendly and connected
Additional taxi stations will make the city more multi-modal
LRT station connections
Create more and improve existing sidewalk connections to schools
Bike/ Trail Issues:
Lack of crossing treatment consistency
Blue phones
Night lighting
Bicycle racks
Bicycle/ bus/ bicycle mobility
Multi-season use
Bike lockers
CENTRAL FOCUS GROUP
Sidewalk, Trail and Access Issues:
North/south connections have many disconnects
CP Rail would be a great north/south trail addition
Edina connection- no sidewalks
Jackley Park- no sidewalks
There are no sidewalks at 36th and Wooddale Avenue
Sidewalk system does not connect. The system needs to be finished
Winter plowing is a concern with resulting pavement degradation
Better connection to nature center
On-road bike trails are not marked
Improve opportunities for children to bicycle focusing on safety and access to local recreation
centers
The crossing of TH 7 at Wooddale Avenue is a major concern
No streets are marked as bike lanes
Street sweeping could be improved to make shoulders safer for bicyclists
City Hall has no bike racks and has poor access from adjacent neighborhoods
ADA access and improvements such as curb cuts and signals. Focus on handicap mobility
H:\Projects\6016\LA\DOC\Community Mtg materials\breakout session summary.doc 2
EAST FOCUS GROUP
Sidewalk, Trail and Access Issues:
Crossings of TH 7 and TH 100 are difficult
Need sidewalks or a bike lane along 42nd Street
Complete sidewalks in gap areas
Additional transit shelters
Parking bays and bump outs on major streets and sidewalks for traffic calming
Cedarwood Trail and sidewalks need connections
Consider roundabouts
Coordination with Edina’s trail and sidewalk improvement master plan
Minnetonka Boulevard over TH 100 requires a signal. It is a dangerous bridge for pedestrians
and bicycles
Excelsior Boulevard Bridge over TH 100 is still difficult
Better crossing at 44th Street
Improved visibility of and around pedestrian bridges
Maintain quality for maintenance and operations of trails and sidewalks
Farmers market- create local and neighborhood shopping and event destinations
Result Summary for Survey:Active Living, Sidewalks and Trails
Active Living, Sidewalks and Trails
Are you a resident of St. Louis Park?
Response Percent Response Count
Yes 90.0% 189
No 10.0% 21
answered question 210
skipped question 0
Which neighborhood do you live in?
Response Percent Response Count
Don't Know 1.6% 3
Amhurst 0.5% 1
Aquila 5.3% 10
Birchwood 7.9% 15
Blackstone 1.6% 3
Bronx Park 2.7% 5
Brooklawn 2.1% 4
Brookside 3.2% 6
Browndale 3.7% 7
Cedar Manor 0.0% 0
Cedarhurst 1.1% 2
Cobblecrest 1.1% 2
Creekside 2.1% 4
Crestview 1.6% 3
Eliot 2.1% 4
Eliot View 5.8% 11
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Result Summary for Survey:Active Living, Sidewalks and Trails
Elmwood 2.1% 4
Fern Hill 7.4% 14
Kilmer 0.0% 0
Lake Forest 9.5% 18
Lenox 3.2% 6
Meadowbrook 0.0% 0
Minikahda Oaks 1.1% 2
Minikahda Vista 9.5% 18
Minnehaha 0.5% 1
North Side 2.1% 4
Oak Hill 2.1% 4
Pennsylvania Park 1.1% 2
Shelard Park 0.0% 0
Sorensen 2.7% 5
South Oak Hill 2.1% 4
Texa-Tonka 0.5% 1
Triangle 8.5% 16
Westdale 0.5% 1
Westwood Hills 4.8% 9
Wolfe Park 0.0% 0
answered question 189
skipped question 0
Which city do you live in?
Response Percent Response Count
Edina 4.8% 1
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Result Summary for Survey:Active Living, Sidewalks and Trails
Golden Valley 9.5% 2
Hopkins 0.0% 0
Minneapolis 19.1% 4
Minnetonka 9.5% 2
Plymouth 14.3% 3
Other (please specify) 42.9% 9
answered question 21
skipped question 0
How do you use trails within the City? (Choose all that apply)
Response Percent Response Count
Walking 71.8% 145
Dog walking 30.2% 61
In-line skating 21.3% 43
Jogging/ running 35.2% 71
Bicycling 80.7% 163
Commuting 25.7% 52
Access Shopping 23.8% 48
Access Transit 5.5% 11
Recreation 27.7% 56
Other (please specify) 11.4% 23
answered question 202
skipped question 0
In good weather months, about how many days per month do you use the trails in St. Louis Park?
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Result Summary for Survey:Active Living, Sidewalks and Trails
Response Percent Response Count
Not at all 1.7% 3
Occasionally (1-2) 18.7% 34
Frequently (5-10) 37.9% 69
Most (more than 15) 31.9% 58
Every day 9.9% 18
answered question 182
skipped question 0
How do you use the City’s sidewalks? (Choose all that apply)
Response Percent Response Count
Walking 83.9% 167
Dog walking 37.7% 75
In-line Skating 6.5% 13
Jogging/ running 34.2% 68
Bicycling 38.7% 77
Commuting 12.6% 25
Children’s play 22.6% 45
Socializing 29.7% 59
Access Shopping 40.7% 81
Access Transit 15.1% 30
Recreation 15.1% 30
Other (please specify) 9.1% 18
answered question 199
skipped question 0
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Result Summary for Survey:Active Living, Sidewalks and Trails
About how many days a month do you use sidewalks in St. Louis Park?
Response Percent Response Count
Not at all 4.4% 8
Occasionally (1-2) 17.1% 31
Frequently (5-10) 24.9% 45
Most (more than 15) 25.4% 46
Every day 28.2% 51
answered question 181
skipped question 0
How do you feel about on-street bike lanes in St. Louis Park? (Responses limited to 200 characters.)
Response Count
182
answered question 182
skipped question 0
What do you like most about the existing St. Louis Park bicycle and pedestrian system? (Responses limited to 200 characters.)
Response Count
170
answered question 170
skipped question 0
What do you like least about the existing St. Louis Park trail and sidewalk system? (Responses limited to 200 characters.)
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Result Summary for Survey:Active Living, Sidewalks and Trails
Response Count
173
answered question 173
skipped question 0
If you could change one thing about the existing St. Louis Park trail and sidewalk system, what would it be? (Responses limited to 200 characters.)
Response Count
163
answered question 163
skipped question 0
Response Count
70
answered question 70
skipped question 0
First Name
Response Count
135
answered question 135
skipped question 0
Last name:
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Result Summary for Survey:Active Living, Sidewalks and Trails
Response Count
134
answered question 134
skipped question 0
Email address:
Response Count
138
answered question 138
skipped question 0
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Questionnaire Results Brief SummaryHow do you feel about on-street bike lanes in St. Louis Park?What do you like most about the existing St. Louis Park bicycle and pedestrian system?What do you like least about the existing St. Louis Park trail and sidewalk system?If you could change one thing about the existing St. Louis Park trail and sidewalk system, what would it be? Additional Comments?• 120 in favor • [Many comments refer to TRPD regional trails] • Trail crossings not consistent w/ other cities • Educate users • Give all new residents a welcome package• 31 opposed • It is convenient • Not enough access points • Consistent trail crossing strategy w/ all cities • Make Excelsior bike friendly• 9 not sure or uncertain • Extensive system • Need more lighting on the trails • More access points • Ped crossings of Excelsior Blvd in Creekside• Well maintainted • Inconsistent sidewalk system • More trails • Safe ped crossings of Mtka Blvd @ City Hall• Easy access • Need more bike racks • Sidewalks for all streets (both sides) • How will the City pay for these improvements?• Convenient to get to Mpls and Hopkins • No north/ south trails • More crossings over tracks and Highway 7 • Citizen involvement for trail clean-ups• Pedestrian bridges are great • Need more sidewalks in Creekside • Safe routes to school • Provide dog bags for pet owners• Easy for commuting to work • Fence along the railroad • Better lighting on trails • Trail along Beltline is in terrible shape• Off-street is good • Railroad tracks as barriers • Pedestrian bridges over 7 at Wooddale • The City needs more pedestrian infrastructure• Connection to longer metro trails and system • Lack of sidewalks deters walking • Bike lanes • More trash cans at bus stops and along trails• Good winter maintenance • Poor winter maintenance • North/ south trails • Road diets: 4 lanes to 3 to improve safety• Wayfinding/ signage needed • Bike lane striping• Need more benches • Fix sidewalk gaps• Highway 7 crossings • Better access to Westwood Nature Center• Poor on-street biking • More signage
Meeting Date: October 8, 2007
Agenda Item #: 9
Regular Meeting Public Hearing Action Item Consent Item Resolution Ordinance
Presentation Other:
EDA Meeting Action Item Resolution Other:
Study Session Discussion Item Written Report Other:
TITLE:
Active Living Hennepin County/Governor’s Fit City Information
RECOMMENDATION:
No action is needed at this time. Mayor Jacobs suggested including this at a future study session.
At this point it has been included as a discussion item on the October 22nd Study Session.
POLICY CONSIDERATION:
Hennepin County Commissioners will consider the attached draft resolution and draft policies in
support of active living efforts at their October 23rd meeting. City Council may wish to consider
adopting a similar resolution and specific policies for active living in St. Louis Park.
BACKGROUND:
County Commissioner Gail Dorfman and Mayor Jeff Jacobs are co-chairs of this community
engagement process funded by Blue Cross Blue Shield. The purpose is to raise awareness of
Active Living principles in the county and build a network of leaders for this issue. Consultants
from Active Living by Design helped facilitate the project.
Active Living Hennepin County convened meetings between county, city, school district
officials and staff, business leaders and health professionals. Specific projects included:
Camera Shots - a photo survey of the types of communities and sidewalk and trail issues in
representative Hennepin County communities
Walking Workshop
One-on-one interviews in Case Study cities (Independence, Brooklyn Park, Golden Valley)
County-wide Telephone Survey
Produced an informational brochure about Active Living
Hennepin County Commissioners will get an update on the project at the Board Briefing on
Thursday, October 4th and may consider a resolution affirming support of active living efforts in
the county at their October 23rd meeting. The Active Living Hennepin County group is asking if
cities would consider adopting similar resolutions.
If the City Council chooses to adopt a resolution similar to Hennepin County, St. Louis Park may
also qualify for recognition under the Governor’s Fit City program. Additional information will
be provided at a future study session.
VISION CONSIDERATION:
Approving a resolution and specific policies in support of active living efforts would be
consistent with the following goal from Vision St. Louis Park. “Sidewalks & Trails: St. Louis
Park has a connected network of safe sidewalks and trails to encourage physical fitness and non-
polluting transportation options. The city encourages trail use by members of all ages and
physical abilities.”
Meeting of October 8, 2007 Page 2
Subject: Active Living Hennepin County/Governor’s Fit City Information
Attachments:
County Resident Survey Findings
Hennepin County’s Draft Resolution & Policies
Active Living Hennepin County Informational Brochure
Prepared by: Sean Walther, Senior Planner
Reviewed by: Meg McMonigal, Planning and Zoning Supervisor
Kevin Locke, Community Development Director
Approved by: Tom Harmening, City Manager
Goal: To better understand county residents’activity levels and impressions of the built environment.Method: Random-digit dial telephone survey of adults within Hennepin CountySurvey: 47 questions Interviews: 505+4.4 at 95% confidence levelGoal: To better understand county residents’activity levels and impressions of the built environment.Method: Random-digit dial telephone survey of adults within Hennepin CountySurvey: 47 questions Interviews: 505+4.4 at 95% confidence levelCounty Resident SurveyCounty Resident Survey
52%17%7%9%3%0%13%Frequency of BikingFrequency of BikingQ6: And thinking about your biking routine, weather permitting, how frequently do you ride a bike?Once / Several times per yearSeveral times a weekOnce or twice a monthOnce a weekNever Daily or moreNR
7%34%24%11%9%2%13%Minutes Spent Walking per DayMinutes Spent Walking per DayQ4: During an average weekday, how many minutes do you spend walking?16 to 30NR61 to 120 0 1 to 1531 to 60Over 120 Mean = 61Mean = 61Mean = 61Median = 30Median = 30Median = 30
8%42%24%6%2%20%Minutes Willing to Walk to DestinationMinutes Willing to Walk to DestinationQ11: In general, how many minutes would you be willing to walk in order to get to a destination, such as work, shopping, entertainment, etc.1 to 1011 to 20NR21 to 30 0 Over 30 Mean = 19Mean = 19Mean = 19Median = 15Median = 15Median = 15
Other Findings Other Findings •Most Hennepin County adults do have destinations within walking distance of their homes•55% grocery store•74% restaurant or coffee shop•65% other retail•However, most people do NOT walk to destinations:•Adults walk to an average (mean) of 2.8 destinations per week (Minneapolis = 4.3 / Suburbs = 2.0)•46% do not walk to destinations •Barriers include traffic, weather, lack of time, health, safety, and lack of sidewalks•Most Hennepin County adults do have destinations within walking distance of their homes•55% grocery store•74% restaurant or coffee shop•65% other retail•However, most people do NOT walk to destinations:•Adults walk to an average (mean) of 2.8 destinations per week (Minneapolis = 4.3 / Suburbs = 2.0)•46% do not walk to destinations •Barriers include traffic, weather, lack of time, health, safety, and lack of sidewalks
Other FindingsOther Findings•Most are not worried about being a victim of crime while walking in their neighborhood: 26% worried vs. 72% not worried •Most agree it is safe for children to walk to school in their neighborhood:70% agree vs. 23% disagree•Improvements most likely to lead to an increase in activity levelsOff-street bike and walking trailsWell lit streets at night•Most are not worried about being a victim of crime while walking in their neighborhood: 26% worried vs. 72% not worried •Most agree it is safe for children to walk to school in their neighborhood:70% agree vs. 23% disagree•Improvements most likely to lead to an increase in activity levelsOff-street bike and walking trailsWell lit streets at night
Resolution No. ___________
Resolution Affirming Support for Active Living Hennepin County
October 23, 2007
WHEREAS, physical inactivity and poor nutrition are leading causes contributing to increasing
rates of obesity and other chronic diseases, and adult obesity was declared an epidemic in 2007
by the Director of the Centers for Disease Control and Prevention;
WHEREAS, health problems associated with physical inactivity and poor nutrition affect
Hennepin County through reduced quality of life and higher medical costs - over $1 billion in
Hennepin County per year;
WHEREAS, a 2007 countywide assessment and survey on active living clearly indicated both
resident and official desire for increased opportunities and fewer barriers to physical activity;
WHEREAS, public rights-of-way that have been designed, constructed, and maintained for
automobiles have limited opportunities for walking and biking;
WHEREAS, emissions from vehicles contain environmental pollutants including ozone and
carbon monoxide which directly affect asthma attack rates and emergency room visits;
WHEREAS, active living is a way of life that integrates walking and biking into daily routines;
WHEREAS, residents of Hennepin County often face physical and perceptual barriers that limit
their ability and willingness to walk and bike to destinations within the county;
WHEREAS, Hennepin County strives to be a leader in non-motorized transportation,
environmental, and public health programs; and,
WHEREAS, Hennepin County is home to a broad group of talented and committed city and
county employees and residents interested in promoting active living;
THEREFORE, BE IT RESOLVED, that the Hennepin County Board supports the Active Living
Hennepin County vision “Hennepin Active, Fit, and Healthy;”
BE IT FURTHER RESOLVED, that the Hennepin County Board supports the Active Living
Hennepin County mission to “Plan, provide and promote active living environments and
opportunities for everyone;”
BE IT FURTHER RESOLVED, that the Hennepin County Board supports the Active Living
Hennepin County principles:
a. Physical activity improves health and quality of life in our communities;
b. Places should be designed to provide everyone – regardless of age, gender, language,
ethnicity, economic status or ability – with a variety of opportunities for safe, convenient,
and affordable physical activity;
c. Development patterns should encourage mixed uses, compact designs, and a variety of
transportation choices that link roads, transit, bicycling and walking;
d. Buildings and their landscapes should be designed with internal features including highly
visible stairs with adjacent public rooms, and oriented to the street with sidewalks,
bicycle facilities, and transit stops at the main building entry, in order to promote
opportunities for active living and active transportation;
e. Transportation systems, including transit and trails, should provide safe, convenient, and
affordable access to destinations such as housing, employment, schools, and community
services; and,
BE IT FURTHER RESOLVED, that the Board directs staff to incorporate Active Living policies
into physical infrastructure and programs in Hennepin County and to identify funding resources
to support active living infrastructure priorities.
BE IT FURTHER RESOLVED that an in-house working group shall be created to develop and
implement Active Living strategies throughout the county, and that staff shall report annually to
the County Board on how Active Living principles and policies are being incorporated into the
County’s activities.
DRAFT DATE: September 6, 2007
ATTACHMENT
Recommended Strategies for Implementing Active Living Principles
For Consideration by Active Living Workgroup
Physical Infrastructure
1. Complete an analysis of existing pedestrian infrastructure on county roads to identify gaps,
and prioritize improvements based on proximity to key destinations, transit stops and other
urgent needs.
2. As county roads are reconstructed, address those pedestrian gaps and priorities identified in
above, as well as bicycle priorities outlined in the county’s bicycle plan.
3. Conduct an audit of existing county facilities (such as public service centers, libraries and open
spaces) to identify opportunities for improvement that promote active living for all residents,
regardless of income.
4. As county buildings are retrofit, redesigned or newly constructed, incorporate active living
priorities into design and construction of those facilities and for newly constructed buildings,
their location on the site.
Funding
5. Identify sources and strategies for funding priority capital improvements that address active
living construction/reconstruction priorities identified above.
6. Incorporate active living design components into scoring of the Transit Oriented Development
(TOD) and Housing and Affordable Housing Incentive Fund (AHIF) grant funding criteria.
7. Create an Active Living Matching Incentive Fund to encourage partnership with local
government to expedite priority non-motorized transportation projects.
Program Integration
8. Direct County staff to work across disciplines and departments to incorporate tools, such as
Health Impact Assessments, into county decision-making on infrastructure including buildings
and roads.
9. Direct staff to inventory unused and underutilized county spaces that might be amenable to the
creation of community gardens.
10. Direct staff to include active living and access to healthy food in planning projects led or paid
for by the county.
11. Update County Human Resources policies to provide facilities and incentives to those who
bicycle or walk to work, including dedicated fitness facilities, secure bicycle parking, shower
facilities, and incentives for physical activity.
DRAFT DATE: September 6, 2007
Increasing PhysicalActivity ThroughCommunity DesignHennepin CountyActive Living Hennepin County TeamVision: Hennepin Active, Fit, and HealthyMission:Plan, provide, and promote active living environments and opportunities for everyoneWe Need Your Help!•• LLeenndd UUss YYoouurr EExxppeerrttiisseeHelp ... guide our strategic direction, shape public policy, and implement improvements that promote physical activity.•• UUssee YYoouurr CCoonnnneeccttiioonnssHelp ... build alliances and engage colleagues in your field. •• PPrroommoottee AAccttiivvee LLiivviinnggHelp... endorse and promote awareness and education. •• CCrreeaattee MMoorree DDeemmaannddHelp ... identify existing programs—and remove any barriers—in raising demand and creating infrastructure for physical activity.•• LLiivvee AAccttiivveellyy!!Help ... be a role model by walking or biking to destinations.For More Information•• AAccttiivvee LLiivviinngg HHeennnneeppiinn CCoouunnttyy TTeeaamm612•348•8089<www.activelivingcommunityvision.org>•• AAccttiivvee LLiivviinngg bbyy DDeessiiggnn<www.activelivingbydesign.org>
How Might Active Living Promote Physical Activity in Your Community?Active Living Hennepin County is a model for creating healthier communities. Supported by Blue Cross and BlueShield of Minnesota, it promotes physical activity in daily lifethrough policies and environments that encourage healthy lifestyles. Visit our Web site: <www.activelivingcommunityvision.org>.•• LLaanndd UUssee•• TTrraannssppoorrttaattiioonn IImmpprroovveemmeennttss•• PPaarrkkss,, TTrraaiillss,, aanndd GGrreeeennwwaayyss•Improves health •Ensures quality of life•Decreases chronic disease•Reduces medical and transportation expenses•Reduces emissions of environmentalpollutantsWhy Promote Active Living?Allow our transportationsystem to safely accommodate all modes oftransportation includingbicycling, walking, andusing transit.Influence levels of daily physicalactivity by providing pedestrianand bicycle connections tokey destinations and worksites,and by offering recreationalopportunities within communities.Can enhance community character, vitality, and quality of life by integratinga range of housing choiceswith businesses, transportation options, andopen spaces that are inviting. ••Land-use trends have led to more driving and made walking, biking, and public transit less safe and practical. In fact, 75% of trips under one mile are made by car.••In 2006, about 25% of the adult population in the United States was obese—double the rate since 1980.••Only 38% of Hennepin County adults and 50% of the county’s sixth-graders get recommended levels of moderate physical activity each week. Facts in Support of Active Living