HomeMy WebLinkAbout2006/05/15 - ADMIN - Agenda Packets - City Council - RegularAGENDA SUMMARY
CITY COUNCIL MEETING
ST. LOUIS PARK, MINNESOTA
May 15, 2006
6:30 PM
6:30 p.m. Study Session
7:00 p.m. EDA Meeting
7:30 p.m. CITY COUNCIL MEETING
1. Call to Order
1a. Pledge of Allegiance
1b. Roll Call
2. Presentations
2a. Proclamation Public Works Week
3. Approval of Minutes
3a. Study Session Minutes of April 10, 2006
3b. Study Session Minutes of April 24, 2006
3c. City Council Minutes of May 1, 2006
Action: Corrections/amendments to minutes - Minutes approved as presented
4. Approval of Agenda and Items on Consent Calendar
NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no
discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a
member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion.
Action: Motion to approve the agenda as presented and to approve items listed on
the consent calendar
(Alternatively: Motion to add or remove items from the agenda, motion to move items
from consent calendar to regular agenda for discussion and to approve those items
remaining on the consent calendar).
5. Boards and Commissions
6. Public Hearings
6a. Public Hearing – Modification to the Highway 7 Tax Increment Finance District
and Establishment of the Highway 7 Corporate Center Tax Increment Finance
District and Highway 7 Hazardous Substance Subdistrict
This report considers a resolution modifying the Highway 7 Tax Increment Finance
District and establishing the Highway 7 Corporate Center Tax Increment Finance
District (a redevelopment district) and Highway 7 Hazardous Substance Subdistrict
within Redevelopment Project No. 1.
Recommended
Action:
Motion to close public hearing.
Motion to adopt the resolution approving the modification to the
Highway 7 Tax Increment Finance District, establishment of the
Highway 7 Corporate Center Tax Increment Finance District and
Highway 7 Hazardous Substance Subdistrict and adopting a Tax
Increment Financing Plan therefore.
7. Requests, Petitions, and Communications from the Public - None
8. Resolutions, Ordinances, Motions
8a. Contract for Private Redevelopment including Property Conveyance and Lease
Agreement between the City of St. Louis Park, St. Louis Park Economic
Development Authority, and Highway 7 Business Center LLC
This report considers a resolution approving a redevelopment agreement with Highway
7 Business Center LLC for the remediation and redevelopment of former National
Lead/Golden Auto site area and the construction of the Highway 7 Corporate Center
project.
Recommended
Action:
Motion to adopt a resolution approving a Contract for Private
Redevelopment including Property Conveyance and Lease
Agreement by and between the City of St. Louis Park, St. Louis
Park Economic Development Authority, and Highway 7 Business
Center LLC.
8b. Request by Real Estate Recycling (CPE Exchange 26084 LLC) to approve
Preliminary and Final Plat of RER ADDITION and a Conditional Use Permit for
excavation/fill of over 400 cubic yards of soil.
Case No. 06-31-S and 06-32-CUP
Recommended
Action:
Motion to approve Preliminary and Final Plat of RER Addition.
Motion to approve a Conditional Use Permit to allow for
excavation/fill of more than 400 cubic yards of soil.
8c. Request by Real Estate Recycling (CPE Exchange 26084 LLC) to approve a
Conditional Use Permit for excavation/fill of over 400 cubic yards of soil and
Landscaping Variance for property located at 7200 and 7250 Highway 7.
Case No. 06-29-CUP, 06-33-VAR
Recommended
Action:
Motion to approve a Conditional Use Permit to allow for
excavation/fill of more than 400 cubic yards of soil.
Motion to approve a landscaping variance.
8d. Lou Park & River Pointe II (Bigos)Preliminary and Final Planned Unit
Development
Case No. 06-30-PUD
Recommended
Action:
Motion to recommend approval of the Preliminary Planned Unit
Development, subject to conditions as recommended by Staff.
8e. Hoigaard’s at Miracle Mile – Major Amendment to a Special Permit and Variance
for a Tower Sign – Hoigaard’s Inc. - Case No. 06-19-CUP & 06-35-VAR
Recommended
Action:
Motion to adopt a Resolution approving the Major Amendment to a
Special Permit for a building expansion and parking modifications.
Motion to adopt a Resolution denying the Variance for a Tower Sign.
8f. Motion to approve resolution supporting the passage of proposed amendment to the
Minnesota Constitution dedicating the Motor Vehicle Sales Tax to transportation.
9. Communications
10. Adjournment
Auxiliary aids for individuals with disabilities are available upon request. To make arrangements,
please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in
advance of meeting.
ST. LOUIS PARK CITY COUNCIL
MEETING OF May 15 , 2006
SECTION 4: CONSENT CALENDAR
NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no
discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a
member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion.
4a. Motion to Adopt Resolution Authorizing the Special Assessment of Four Sewer
and Water Service Line Repairs/Replacements
4b. Motion to amend contract 99-00 with WSB for providing Professional Services for
Design and Construction Administration of Lamplighter Pond.
4c. Project Report: Motion to adopt the attached resolution accepting this report,
establishing and ordering Improvement Project No. 2005-1200, approving plans
and specifications, and authorizing advertisement for bids for the Ford Road
Sanitary Sewer Lift Station Replacement – Project No. 2005-1200.
4d. Motion to Amend DNR Flood Mitigation Grant Agreement A48775
4e Motion to adopt second reading of an Ordinance approving the Vacation of a
portion of Hampshire Avenue South, approve summary and authorize publication.
4f. Motion to adopt second reading of an Ordinance amending the Official Zoning
Map from C2 – General Commercial to IP –Industrial Park, approve summary
and authorize publication.
4g. Motion to accept Vendor Claims for filing (supplement)
St. Louis Park Council Meeting
Item: 051506 - 2a - National Public Works Week 2006
Page 1
PROCLAMATION
National Public Works Week
WHEREAS, public works services provided in our community are an
integral part of our citizens’ everyday lives; and
WHEREAS, the support of understanding and informed citizenry is vital to
the efficient operation of public works systems and programs such as water,
sewers, streets and highways, public buildings, and solid waste collection; and
WHEREAS, the health, safety and comfort of this community greatly
depends on these facilities and services; and
WHEREAS, the quality and effectiveness of these facilities, as well as their
planning, design, and construction, is vitally dependent upon the efforts and skill
of public works officials; and
WHEREAS, the efficiency of the qualified and dedicated personnel who
staff public works departments is materially influenced by the people’s attitude
and understanding of the importance of the work they perform,
NOW THEREFORE, let it be known that the Mayor and City Council of the
City of St. Louis Park wish to proclaim the week of May 21-27, 2006 as
“NATIONAL PUBLIC WORKS WEEK” and call upon all citizens and civic
organizations to acquaint themselves with the issues involved in providing our
public works and to recognize the contributions which public works officials
make every day to our health, safety, comfort and quality of life.
WHEREFORE, I set my hand and cause the
Great Seal of the City of St. Louis Park to be
affixed this 15th day of May, 2006.
______________________________________
Jeffrey W. Jacobs, Mayor
St. Louis Park Council Meeting
Item: 051506 - 3a - Study Session Minutes April 10, 2006
Page 1
UNOFFICIAL MINUTES
CITY COUNCIL STUDY SESSION
April 10, 2006
The meeting convened at 6:30 p.m.
Councilmembers present: John Basill, Loran Paprocki, Susan Sanger, and Mayor Jeff Jacobs.
Phil Finkelstein arrived at 6:42 p.m. C. Paul Carver arrived at 7:05 p.m. Paul Omodt was absent.
Staff present: City Manager (Mr. Harmening); Director of Human Resources (Ms. Gohman);
Management Assistant (Ms. Honold); Director of Parks and Recreation (Ms. Walsh); Organizational
Development Coordinator (Ms. Gothberg); and Recording Secretary (Ms. Samson).
Guests present: Carol Humphrey from Friends of the Arts. Tom Bullington from CityImage. Will
Stockton and Marjorie Herdes from Mobius.
1. Community Arts Grant Program
Management Assistant Marcia Honold presented the staff report.
Councilmember Sanger asked who could apply for the grant. Ms. Honold said individuals or
groups may apply.
Councilmember Basill asked what would become of unspent grant dollars. Ms. Honold
anticipates staff would return to Council and request to carryover the grant money to the next year
and re-evaluate the level of funding needed.
Mayor Jacobs asked how the Community Arts Grant Program will be marketed. Carol Humphrey,
Friends of the Arts (FOTA), said pending approval, the kickoff will take place at the Children First
Ice Cream Social on May 21st. Ms. Humphrey said there will be an open information/training
session for those interested in applying, an ad will be placed in the Sun Sailor, and Margaret Rog
will help with the public relations. Ms. Rog was recently hired by FOTA as their director of
planning and development.
Councilmember Sanger asked if FOTA was involved he public art on West 36th Street and Ms.
Humphrey said there will be a meeting regarding that with city staff and FOTA members.
Mayor Jacobs commented that at the Youth Summit, he heard participants suggest using the park
structures to do arts programming, e.g., visual arts, plays and drama. Cindy Walsh, Director of
Parks and Recreation, added the youth also requested poetry classes. Adults, as well as children,
are welcomed and encouraged to participate in arts programming.
Ms. Honold said the minimum grant request is $250. Ms. Honold said applicants are not restricted
to St. Louis Park residents but the event must occur in St. Louis Park.
St. Louis Park Council Meeting
Item: 051506 - 3a - Study Session Minutes April 10, 2006
Page 2
Councilmember Paprocki said he would like to have a proportion between event art, i.e., music,
poetry, etc. and permanent art to be built upon each year, and that would demonstrate the
longevity of the program and encourage funding into the future.
Mayor Jacobs said we probably need a few fairly visible projects early on to build interest.
Councilmember Finkelstein hopes everyone’s sensitivity will be considered. Ms. Humphrey said
FOTA has a good sense of what would be acceptable and what would not.
2. Communication Focus Group Discussion
Organizational Development Coordinator Bridget Gothberg introduced Tom Bullington from
CityImage. CityImage was hired by the city to prepare a communications plans and is looking for
perspectives from staff, community members and Council.
Mr. Bullington asked Council: What do you think is the most effective communications method
the city presently uses and why? Suggestions by Council members included using a combination
of methods, more internet based communications, and a weekly e-mail newsletter to residents that
want one.
Concern was expressed over delivery of the Sun Sailor. Apartments and condominiums often do
not receive the Sun Sailor. It was suggested that staff work with the Sun Sailor to see if delivery
could changed.
Mr. Bullington asked Council about existing communications that do not work well. Council said
that “Dear Resident” letters are not effective and for current information, the Park Perspective is
not as effective because of it is sent out bi-monthly.
Council appreciates that the Park Perspective gives informed reasons why things happen such as
ordinances and asked if legal notices could be posted in Park Perspective if it was distributed more
frequently.
Mr. Bullington asked for comments about the new city web site. Mayor Jacobs said he has heard
positive comments about it. Councilmember Paprocki gave it a 9.6 rating out of 10.0.
Councilmember Sanger said perhaps a better search engine would be beneficial.
Council asked if staff has completed a viewer-ship rating for Cable TV. They also asked Mr.
Bullington to consider ways to use the neighborhood leaders and neighborhood associations to
expand communications, to send stories to Public Radio, and to count of news stories—positive
vs. negative. Councilmember Finkelstein requested the Park Perspective be included in the
Council agenda packet.
St. Louis Park Council Meeting
Item: 051506 - 3a - Study Session Minutes April 10, 2006
Page 3
3. 2005-2006 Visioning Update
Consultants Will Stockton and Marjorie Herdes requested Mayor Jacobs provide background on
Visioning.
Councilmember Basill said he has received a number of emails stating the city should reverse
course on the sales of excess land, and he asked if that came up during the Visioning process.
Councilmember Carver inquired about green space. Councilmember Sanger said economic
development has gotten lost.
From the Vision 2006 Results to Date report, Ms. Herdes listed the top successes. Mr. Stockton
discussed Vision Goals and Challenging Possibilities. Ms. Herdes said new action groups will be
established for new challenges and action groups will be proposed for existing goal areas. Ms.
Herdes said there are about 80 people who expressed interest in being in one of the new action
groups. Organizational Development Coordinator Bridget Gothberg said she is receiving calls of
interest everyday for the new action groups. City Manager Tom Harmening said the next steps
would be to recruit people for the action teams.
Councilmember Sanger said the people in her group were adamant about preserving open space
and green space. She said they also asked about an environmentally friendly building code and
more alternative energy. Ms. Gothberg said in her interviews, the subject of environment
constantly came up and it was mostly about clean air and clean water.
Councilmember Sanger asked: What is the role of Council? Mr. Harmening said there are several
roles that Council can play. If Council is comfortable, staff would like Council to accept the
results thus far. Mr. Harmening continued, that means we have received the results from the
Visioning process and we are asking action groups to move forward and provide us with their
final recommendations on where we should be going. Mr. Harmening said staff would also like
Council to participate in terms of supporting the process outwardly as we move forward, and long-
term help keep Visioning alive through goal setting and through speaking in the community.
Councilmember Sanger asked if Councilmembers will be involved in action groups.
Councilmember Sanger said if it is only staff, she would be concerned. Ms. Gothberg said the
Vision Partnership Board was intended to be an oversight governance board. Mr. Harmening said
in general terms, staff envisions roles for the action groups similar to that of the 1995 process.
Mayor Jacobs prefers no Councilmembers to be on the action groups. On that point,
Councilmember Carver agrees with Mayor Jacobs. Councilmember Carver said the whole
purpose of the Visioning process is not what a particular Councilmember wants but what the city
wants.
Councilmember Carver is hesitant to accept the report at this time. He would like further
information. Councilmember Carver agrees with the overall process. Visioning is the right thing
and he needs more clarity.
St. Louis Park Council Meeting
Item: 051506 - 3a - Study Session Minutes April 10, 2006
Page 4
There were some questions on the placement of dots by participants at the February 12, 2006
Vision Summit. Ms. Herdes explained that dot placement was not a vote for certain items. It was
done simply to get a sense of priority. In regard to the placement of the dots, Councilmember
Sanger said the people at the meeting cannot be dismissed because it was unscientific. Mr.
Stockton said the dot information Council is seeking can be pulled together and produced for
Council.
Councilmember Basill cautioned that the city needs to send consistent information.
Councilmember Paprocki said let’s separate these things out and move forward. Councilmember
Sanger suggested Council appoint chairs to the action teams.
Mr. Harmening recapped the next steps: Staff will ask Council, after proper information and
documentation are provided on what has been accomplished so far, to acknowledge the work that
has been done and accept the work done, and ask for action groups to be formed. Second, eight
action groups would be formed around the new areas and the leaders of those groups must have
leadership abilities and an understanding of policy and public process. In addition or as a part of
that, we will also form four action groups—Children First, Safety, Business, and Lifelong
Learning—using existing organized resources that are available, who will revisit what was done in
1995, review the progress made since 1995, and make further recommendations for the Council.
The Partnership Group will oversee the entire next step and a community member will be asked to
serve as the chair and cheerleader of these actions groups. Presumably, the chairs of the action
groups would also form some kind of group similar to that of 1995. Finally, the work should be
completed by late fall.
4. Review Agenda for City Council Workshop
Mr. Harmening discussed the City Council Workshop with Council.
5. Status Report on Bass Lake Site
Mr. Harmening said it was made clear to Park Nicollet that the Bass Lake site is not being sold to
Park Nicollet but that Council is willing to look at some concepts of an EDI on the property along
with some other possible uses, be it housing or other municipal uses. Mr. Harmening said Park
Nicollet met with Community Development staff initially. Park Nicollet is working with United
Properties and Park Nicollet will return in about one week with a preliminary sketch or with
concept plans. They would like to appear at a study session in May. Mr. Harmening reminded
Park Nicollet that they need to meet with Wayside House and Council will expect a report on that
meeting.
Councilmember Sanger said institutional uses for the Bass Lake site were not discussed. She said
it would be helpful if staff could provide concept plans of what institutional uses might look like.
Councilmember Basill said if we are not interested, then Council owes it to Park Nicollet to say
so. Councilmember Basill said Council will need to give Park Nicollet clear direction after their
next study session appearance.
St. Louis Park Council Meeting
Item: 051506 - 3a - Study Session Minutes April 10, 2006
Page 5
Councilmember Finkelstein agrees with Councilmember Basill. Councilmember Paprocki agrees
with Councilmember Basill but the focus of this development should be the housing, however, a
buffer on Beltline Blvd. would be needed.
Mayor Jacobs would like to at least explore the idea of having some sort of a recreational use at
Bass Lake along with the EDI.
Councilmember Sanger would like to see a recreational use in town too, but not necessarily at
Bass Lake.
Councilmember Carver said he does not agree that this particular site is good for single-family
housing. From a synergy perspective, this is the area we can use to create more of that community
synergy. At the previous meeting, Councilmember Carver said a performing arts center, which we
don’t have at Excelsior and Grand, would encourage people to stay for a variety of activities.
Councilmember Finkelstein would like to see affordable housing under $200,000 and high-quality,
but not condos. Councilmember Sanger would like to have concept plans for different kinds of
housing or a mixture of housing and how that would fit on the site.
Mr. Harmening said there is nothing that compels Council to sell this property. He asked if
Council would like to spend the time and energy for staff to develop concept plans for various
ways in which Bass Lake could be developed without an EDI. Councilmember Sanger said yes
for a point of comparison. Mr. Harmening said the city would have to hire someone to do that.
Councilmember Finkelstein asked if Council could have a ballpark figure.
Councilmember Carver said he doesn’t want to spend money to compete with Park Nicollet just
for the sake to have something to compare. The difference being if there was another bidder for
that site, they would be doing it.
Councilmember Paprocki said Council needs to make an informed call on this; he favors spending
money to get concrete information.
Mr. Harmening will discuss this with Kevin Locke and he will get a cost figure.
Councilmember Carver is still opposed to spending any city money on concept plans, but still
wants a voice.
6. Future Study Session Agenda Planning
Mr. Harmening and the Council discussed study session agenda planning.
The meeting ended at 9:40 p.m.
______________________________________ ______________________________________
City Clerk Mayor
St. Louis Park Council Meeting
Item: 051506 - 3b - Study Session Minutes April 24, 2006
Page 1
UNOFFICIAL MINUTES
CITY COUNCIL STUDY SESSION
April 24, 2006
The meeting convened at 7:01 p.m.
Councilmembers present: John Basill, C. Paul Carver, Phil Finkelstein, Paul Omodt, Loran
Paprocki, Susan Sanger, and Mayor Jeff Jacobs.
Staff present: City Manager (Mr. Harmening); Housing Supervisor (Ms. Schnitker); Economic
Development Coordinator (Mr. Hunt); Director TSS (Mr. Pires); and Recording Secretary (Ms.
Samson).
Guests present: From Children First, Karen Atkinson; from the Meadowbrook Collaborative, Linda
Trummer; from STEP, Jackie Olafson.
From Kennedy & Graven, bond counsel Stephen Bubul; from Ehlers & Associates, financial advisor
Stacie Kvilvang.
From Unplugged Cities, Paul Kralovec; from First Mile Wireless, Inc., Jay Gustafson; from
Columbia Telecommunications Corporation, Tom Asp.
1. Update on Children First, STEP, Meadowbrook Collaborative
Karen Atkinson began the discussion to update the Council on efforts to explore collaboration
and to discuss the funding status for Children First, STEP and the Meadowbrook Collaborative.
Ms. Atkinson distributed a one-page handout called Reinvesting in Families and Children:
Children First Asset Champions Network. Jackie Olafson highlighted the services provided by
STEP. Ms. Olafson said the Park People Mover is in jeopardy.
Linda Trummer discussed the Meadowbrook Collaborative. She said many main funders are no
longer with Meadowbrook, and a search is underway for new funders. For the first time in 13
years, Ms. Trummer is concerned about funding. Mayor Jacobs said he is proud of the work
being done at Meadowbrook.
Mayor Jacobs said that Children First, STEP, and the Meadowbrook Collaborative are critical to
the City.
Councilmember Carver said contributions are down for everyone, everywhere. Councilmember
Carver said there are ways to cut costs, e.g., various groups could share costs, such as accounting
functions.
Councilmember Sanger asked about plans to raise money for the Meadowbrook Collaborative.
Ms. Trummer said she has submitted letters requesting donations, and she is working with Park
Nicollet. Ms. Trummer said there are no public relations.
St. Louis Park Council Meeting
Item: 051506 - 3b - Study Session Minutes April 24, 2006
Page 2
Housing Supervisor Michele Schnitker said she will check on city employees donating to the
three organizations through United Way at City Hall.
From a staff and city perspective, Councilmember Basill asked what can we do? How do we get
to the whole community to raise funds? Councilmember Sanger would like to know if data is
available to educate St. Louis Park in order to raise money. Councilmember Omodt said perhaps
Mayor Jacobs would like to consider a mayor’s challenge. Councilmember Sanger said the three
organizations need a grant writer. Councilmember Carver said backroom operations can be
shared.
STEP has experienced a 68% growth in four years, and Ms. Olafson said a grant writer is
definitely needed.
City Manager Tom Harmening said no decision from the Council will be made tonight, however,
he would like to know what to do short term for starters. Mr. Harmening suggested this item be
put on the agenda for the May 8th study session. Councilmember Basill and Councilmember
Sanger would like to promote the mayor’s challenge idea; advertise the need for funding in
public service announcements and in neighborhood newsletters. Mayor Jacobs said corporate
funders are needed. Councilmember Omodt volunteered to help with public relations.
2. Hwy 7 Corporate Center Redevelopment Contract (Golden/Nat’l Lead Site)
Economic Development Coordinator Greg Hunt presented a staff report. Mr. Hunt said there are
10 very good prospects for the Highway 7 Corporate Center Redevelopment project. Mr. Hunt
said cash infusion is up front, and the easement will go to the city.
Councilmember Basill reported that the project has been well-received at neighborhood
meetings.
If it is the consensus of the EDA/Council that the business points outlined in the Summary of
Redevelopment Contract Between the SLP EDA and CPE, LLC, from pages 4-7 of the staff
report, are acceptable, the EDA will be asked to consider approval of the entire Redevelopment
Contract at its upcoming May 15, 2006 meeting.
3. Wireless Pilot Update and Evaluation Criteria
Director of TSS Clint Pires introduced Paul Kralovec, Tom Asp, and Jay Gustafson. Mr. Pires
said Phase I is to be completed on Saturday, April 29th. Mr. Pires and staff will call everyone
who has WiFi so far to track issues. Mr. Pires added that one-half of users were dial up
customers.
Mr. Pires discussed the start up process. He said the pilot covers 1,400 out of 20,000.
Apartment buildings will need to give permission to the city for access. Mr. Pires said some
vendors are willing to donate equipment to gain access for their testing. Mr. Pires said the
expansion process can be started and it may take 12-18 months for all three phases. Mr. Pires
said Cisco is interested but didn’t make a bid, they will help in setting up roving locations. Some
sites are available at no charge.
St. Louis Park Council Meeting
Item: 051506 - 3b - Study Session Minutes April 24, 2006
Page 3
Councilmember Finkelstein asked if newly constructed buildings can be constructed to easily
accommodate WiFi, i.e., with indoor access points. Mr. Pires replied yes. Councilmember
Sanger remarked that many in the Sorensen neighborhood are asking for WiFi.
Councilmember Paprocki asked if the police are trying WiFi. Mr. Pires said after Phase 3 is
complete, the police want to get on board.
Mr. Pires said data is being collected to determine how many truck rolls will be needed to make
it work. He said Phase 1 is key. On the revenue side, potential customers are waiting for the city
to commit. A pre-sign up may be necessary to get data to the Council for consideration.
Councilmember Paprocki would like to know who didn’t sign up and he requested demographic
data. He would like to make WiFi accessible to low income individuals.
Mr. Pires will return to the Council in late June or early July with additional information.
4. Motor Vehicle Sales Tax (MVST) Funding Support
Mr. Harmening and the Council discussed adopting or not adopting a resolution in support of the
MVST constitutional amendment. Mr. Harmening will rewrite the sample resolution and present
it to the Council at the next study session.
5. Future Study Session Agenda Planning
Mr. Harmening and the Council discussed study session agenda planning.
The meeting ended at 10:02 p.m.
______________________________________ ______________________________________
City Clerk Mayor
St. Louis Park Council Meeting
Item: 051506 - 3c - City Council Minutes May 1, 2006
Page 1
UNOFFICIAL MINUTES
CITY COUNCIL MEETING
ST. LOUIS PARK, MINNESOTA
May 1, 2006
1. Call to Order
Mayor Jacobs called the meeting to order at 7:30 pm.
Council members present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul
Omodt, Loran Paprocki and Susan Sanger
Staff present: City Manager (Mr. Harmening), City Attorney (Mr. Scott), City Engineer (Mr.
Brink), Community Development Director (Mr. Locke), Engineering Project Manager (Mr.
Olson), Housing Supervisor (Ms. Schnitker), Senior Planner (Mr. Walther) and Recording
Secretary (Ms. Stegora-Peterson).
2. Presentations - None
3. Approval of Minutes
3a. Study Session Minutes of April 3, 2006
The minutes were approved as presented.
3b. Study Session Minutes of April 17, 2006
The minutes were approved as presented.
4. Approval of Agenda and Items on Consent Calendar
NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no
discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a
member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion.
4a. Adopt second reading of Ordinance No. 2314-06 approving the Vacation of a
portion of Natchez Avenue South, approve summary and authorize publication.
4b. Approve second reading of Ordinance No. 2315-06 approving the vacation of a
utility easement at 3300 Decatur Lane, adopt Ordinance, approve summary, and
authorize publication. Case No.: 06-26-VAC
4c. Bid Tabulation: Designate Hardrives, Inc. the lowest responsible bidder and
authorize execution of a contract with the firm in the amount of $1,568,575.00
for the 2006 Lake Street Reconstruction Project – City Project No. 2006-0100
4d. Adopt Resolution No. 06-079 Authorizing Special Assessment of Dutch Elm
Diseased Tree Removal For Property at 1820 Flag Ave. South
4e. Approve a contract with TKDA for providing Professional Services for Design
and Construction Administration of the CSAH 25 Pedestrian Bridge,
Improvement Project No. 2005-2100.
St. Louis Park Council Meeting
Item: 051506 - 3c - City Council Minutes May 1, 2006
Page 2
4f. Approve Amendment No. 1 to contract 98-04 providing additional Professional
Services related to Excelsior Boulevard Street Improvement Project, Project No.
2004-0400.
4g. Approve Resolution No. 06-080 establishing a special assessment for the
installation of a fire suppression sprinkler system at 6327 Cambridge Street.
4h. Approve Change Order No. 1 for Improvement Project No. 2006-1300, Westdale
Park Detention Pond.
4i. Accept Housing Authority Minutes of March 8, 2006 for filing.
4j. Accept Planning Commission Minutes of April 5, 2006 for filing.
4k. Accept Vendor Claims for filing. (supplement)
It was moved by Councilmember Carver, seconded by Councilmember Finkelstein, to
approve the Agenda and items listed on the Consent Calendar.
The motion passed 7-0.
5. Boards and Commissions
6. Public Hearings
6a. 3600 Block Of Hampshire Avenue South – Request for Vacation
Mr. Walther presented the staff report.
Mayor Jacobs opened the public hearing. No speakers present. The public hearing was closed.
It was moved by Councilmember Paprocki, seconded by Councilmember Basill to adopt
first reading of an Ordinance approving the Vacation of a portion of Hampshire Avenue
South and set second reading for May 15, 2006.
The motion passed 7-0.
7. Requests, Petitions, and Communications from the Public – None
8. Resolutions, Ordinances, Motions
8a. Request of Real Estate Recycling for a Comprehensive Plan Map
Amendment from Commercial to Industrial; and a Zoning Map Amendment
from General Commercial (C2) to Industrial Park (IP), Location: 7003 Lake
Street W, Case No.: 06-20-CP and 06-21-Z
Resolution No. 06-075
Mr. Walther presented the staff report.
It was moved by Councilmember Paprocki, seconded by Councilmember Sanger, to adopt
Resolution No. 06-075 approving the Comprehensive Plan amendment to change the land use
designation from General Commercial to Industrial Park, approve summary and authorize
publication.
The motion passed 7-0.
St. Louis Park Council Meeting
Item: 051506 - 3c - City Council Minutes May 1, 2006
Page 3
It was moved by Councilmember Paprocki, seconded by Councilmember Basill, approving
the first reading of an ordinance amending the Official Zoning Map from C2 – General
Commercial to IP –Industrial Park and setting a second reading for May 15, 2006.
The motion passed 7-0.
8b. PPL Louisiana Court Project Deferred Loan
Resolution No.s 06-076 and 06-077
Ms. Schnitker presented the staff report.
Councilmember Omodt asked for an update on the vacancies. Ms. Schnitker replied they
were making progress. They were down to 16 vacancies and it had been at 41. Ten Vail
Place tenants were placed in the project, which was going well and the support from their
staff was exceptional.
It was moved by Councilmember Carver, seconded by Councilmember Finkelstein, to
adopt Resolution No. 06-076 approving loan agreements between the City of St. Louis
Park and PPL Louisiana Court Limited Partnership and Related Documents; and,
Resolution No. 06-077 approving internal loan for advance of qualified housing costs in
connection with Park Center tax increment financing district.
Councilmember Omodt indicated he would be opposing this, as he had consistently. It
continued to trouble him. PPL had made some improvements, but he also noticed a
police officer at Louisiana Court almost every day. He hoped PPL understood this was a
loan and not more free money.
Councilmember Basill stated he had some reservations, but supported this because the
City was putting in $400,000 to leverage another $4 million and the City would be the
first lien holder, which helped protect their investment. PPL needed to be very proactive
and make this successful. He wouldn’t entertain future requests from PPL for funding.
Councilmember Finkelstein stated this was something they had all been concerned about.
The previous Council put this into place because the area of town was at risk. The City
got involved and the capital contribution was $100,000. The project was thinly
capitalized. If they didn’t put in the $400,000, the City might have lost their entire
investment, and it was the prudent thing to do. He was pleased to see they were making
progress. They had made additional changes to ensure the work that needed to be done
would get done by a new general contractor, that they ended up with a Meadowbrook
Community model where they would maintain community space and have on-site
programming. The bigger risk was not to do it.
Mayor Jacobs noted that, as part of the Council that made the decision to do this, they
were aware it was thinly capitalized. PPL needed to pay careful attention to the
comments of the Council and remain proactive in keeping out some of the “bad actors”.
Louisiana Court residents did not cause much of what goes on there and he was glad PPL
was being proactive to make sure this remains a safe neighborhood. This is a way for the
City to protect their investment and to leverage considerable more money than the City
St. Louis Park Council Meeting
Item: 051506 - 3c - City Council Minutes May 1, 2006
Page 4
had put into this. It will be an enhancement, but they need to make sure PPL
management knew that the Council remains very concerned about that area of town and
wants to keep this going in the right direction.
Councilmember Sanger agreed with the comments expressed in terms of why they were
doing this despite the obvious potential financial risk, but there was another reason. This
is part of their effort to create affordable housing in the community, that it is also well
maintained, which in turn benefits the whole community.
The motion passed 6-1 with Councilmember Omodt opposed.
8c. Project Report: Quentin Avenue, Municipal State Aid Street Rehabilitation
Project – Project No. 2005-1100
Resolution No. 06-078
Mr. Olsen presented the staff report.
Councilmember Paprocki asked if they had considered putting fiber down while the road
was torn up? Mr. Olsen replied the fiber was installed last spring from the school to
Edina.
Councilmember Basill complimented staff for their work with MnDOT, getting the
variance and still making it a State Aid route, which was a benefit to the community.
It was moved by Councilmember Basill, seconded by Councilmember Sanger, to adopt
Resolution No. 06-078 accepting this report, establishing and ordering Improvement
Project No. 2005-1100, approving plans and specifications, and authorizing
advertisement for bids.
The motion passed 7-0.
9. Communications
Mayor Jacobs reported:
• The Children’s First Ice Cream Social would be held May 21st at Wolfe Park.
• Bookmark In the Park has decided to focus on immigration and chosen the next book,
The Middle of Everywhere. They will also be considering books for younger level
readers.
• The Highway 100 interim project construction is scheduled to being mid to late May.
• The grand opening of Trader Joe’s is planned for May 15th.
10. Adjournment
The meeting adjourned at 7:54 p.m.
______________________________________ ______________________________________
City Clerk Mayor
St. Louis Park Council Meeting
Item: 051506 - 4a - Special Assessments Water And Sewer
Page 1
4a. Motion to Adopt Resolution Authorizing the Special Assessment of Four Sewer
and Water Service Line Repairs/Replacements
BACKGROUND:
City Council Resolution 00-078 established an assessment program to assist homeowners with
the cost of the repair and/or replacement of their sewer and/or water service lines. This
program allows home owners of single and two family homes to have the cost of
repair/replacement of the utility service lines assessed to their property. The cost is assessed
over a ten year period with the interest rate determined based on the 20-year Treasury bill rate on
November 1st of the current year plus 1%.
ANALYSIS:
The following four property owners recently requested participation in this city program:
1. Lori Bessner 7410 North Street Sewer Service Line
2. Marcy Russ 3356 Alabama Avenue Sewer Service Line
3. Sharon and Julio Margalli 3036 Hampshire Avenue Sewer Service Line
4. Gary and Elizabeth Brown 3145 Hampshire Avenue Water Service Line
Plans and permits for these utility service line repairs were completed and submitted by the
property owners and approved by City staff. The homeowners hired contractors and repaired the
utility service lines in compliance with current codes and regulations. Based on the completed
work, these repairs qualify for the City’s special assessment program. All of the property owners
have petitioned the City to authorize the utility service line repairs and special assess the cost of
the repairs. These petitions indicate that the property owners waive their right to a public
hearing and wish to have the costs of the utility service lines repairs placed as a special
assessment against their property. The total cost of the assessments to the four (4) properties is
$10,774.47.
Attachments: Resolution
Prepared By: Scott Anderson, Superintendent of Utilities
Reviewed By: Mike Rardin, Public Works Director
Fred Christiansen, Director of Finance
Approved By: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 4a - Special Assessments Water And Sewer
Page 2
RESOLUTION NO. 06-088
RESOLUTION AUTHORIZING SPECIAL ASSESSMENT OF SEWER AND WATER
SERVICE LINE REPAIRS/REPLACEMENTS
WHEREAS, the following four Property Owners:
Property Owner Benefited Property
1. Lori Bessner 7410 North Street
2. Marcy Russ 3356 Alabama Avenue
3. Sharon and Julio Margalli 3036 Hampshire Avenue
4. Gary and Elizabeth Brown 3145 Hampshire Avenue
have petitioned the City of St. Louis Park to authorize a special assessment for the
repair/replacement of a utility service line on their Benefited Property; and
WHEREAS, the Property Owners have agreed to waive their right to a public hearing,
right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and
WHEREAS, the City Council of the City of St. Louis Park has received a report from the
Superintendent of Utilities related to the repair/replacement of the utility service lines.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis
Park, Minnesota, that:
1. The petition from each of the Property Owners requesting the approval and special
assessment for the repair/replacement of their respective utility service line is hereby
accepted.
2. The repair/replacement of the utility service lines in conformance with the City code
requirements is hereby authorized.
3. The total cost for the repair/replacement of the utility service lines is accepted as follows:
Lori Bessner 7410 North Street Sewer Line $3,674.47
Marcy Russ 3356 Alabama Ave Sewer Line $1,600.00
Sharon and Julio Margalli 3036 Hampshire Ave Sewer Line $1,650.00
Gary and Elizabeth Brown 3145 Hampshire Ave Water Line $3,850.00
4. The total special assessments against the properties have been determined to be:
Lori Bessner 7410 North Street $3,674.47
Marcy Russ 3356 Alabama Ave $1,600.00
Sharon and Julio Margalli 3036 Hampshire Ave $1,650.00
Gary and Elizabeth Brown 3145 Hampshire Ave $3,850.00
St. Louis Park Council Meeting
Item: 051506 - 4a - Special Assessments Water And Sewer
Page 3
5. The Property Owners have agreed to waive their rights to public hearing, notice and appeal
from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by
other statutes, or by ordinance, City Charter, the constitution, or common law.
6. The Property Owners have agreed to pay the City for the cost of the above improvements
through a special assessment over a ten (10) year period at the interest rate of the 20 year
Treasury bill rate on November 1, 2006 plus 1%.
7. The Property Owners have agreed to execute an agreement with the City and any other
documents necessary to implement the repair/replacement of their utility service lines and the
special assessment of all costs associated therewith.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 4b - Contract Amendment - WSB Professional Services Agreement
Page 1
4b. Motion to amend contract 99-00 with WSB for providing Professional Services for
Design and Construction Administration of Lamplighter Pond.
BACKGROUND:
A contract with WSB for the Lamplighter Pond project was originally approved in October of
2000. In October of 2003, WSB’s Contract was amended to an amount of $151,000. Since that
time, the project scope and WSB’s related services have expanded throughout the public process,
design, and ultimate construction. Ultimately, two separate contracts for the Lamplighter Pond
Project (Contractors: Park Construction (Contract 2000-1800) and Lametti and Sons (Contract
2000-1800A) were let, and the project is now nearing completion. The Park contract essentially
dealt with the earthwork and grading while the Lametti contract essentially dealt with
construction of the stormwater pumping station.
As the public process, project scope, and ultimate construction have progressed, the level and
amount of WSB’s services has required significant adjustment, largely due to additional work
relating to the public process and additional property flood protection measures. For example,
additional drainage and flood protection measures for certain properties in the vicinity of
Lamplighter Pond have been added to Park Construction’s contract, therefore increasing the
amount of WSB’s efforts. Groundwater and assessment monitoring was also added to WSB’s
scope. Attached is a letter from WSB that summarizes these work efforts in more detail, and an
estimation of efforts needed to complete and close the project by June 30, 2006.
ADDITIONAL INFORMATION:
In accordance with the estimates provided by WSB, the total amount of professional services
required to complete and close the contract will total approximately $245,000. When
considering the contract cost for construction of the entire Lamplighter Project (A total of 1.54
million dollars), the total percentage of the project for professional services from WSB is less
than 16%. This percentage is considered in line or less than what is typically expected for the
construction of a project for this type of complexity and scope. The estimated increase in
professional services was also reflected in the estimated project total cost as reflected in the
adopted 2005 Capital Improvement Program.
FUNDING:
Funding for the Lamplighter Pond project has been received from a combination of revenue
bonds and flood grant monies received from the State of Minnesota. In accordance with the
terms of the grant agreement with the State, one-half (50%) of the project costs (including
professional services) are eligible for reimbursement from the State of Minnesota.
RECOMMENDATION:
Staff recommends that Contract No. 99-00 be amended to increase the contract amount to
$245,000 to provide professional services for the design, inspection, and construction
administration of the Lamplighter Pond project.
Attachment: WSB, Amendment No. 2 to Contract No. 99-00
Prepared By: Scott A. Brink, City Engineer
Reviewed By: Michael P. Rardin, Director of Public Works
Approved By: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 4b - Contract Amendment - WSB Professional Services Agreement
Page 2
CITY OF ST. LOUIS PARK
AMENDMENT NO. 2 TO PROFESSIONAL SERVICES
CONTRACT NO. 99-00
THIS AMENDMENT NO. 2 to Contract No. 99-00 is made on May 15, 2006, by and
between the CITY OF ST. LOUIS PARK, a Minnesota municipal corporation hereinafter
referred to as “CITY”, and WSB.
BACKGROUND:
On October 7, 2003, the City Manager amended Contract No 99-00 with WSB in the
amount of $151,000 for professional services related to the design and construction
administration of the Lamplighter Pond project. Since then the scope of work has increased with
regards to the project development, design, and ultimate construction. Additional engineering
services have been required to allow for the successful completion of the project.
NOW, THEREFORE, in consideration of the above facts and mutual covenants herein
contained, it is hereby agreed that Contract No. 48-05 is amended as follows:
Contract Period
1. The length of Contract No. 99-00 shall be extended to August 1, 2006.
2. Total compensation to WSB for all services rendered pursuant to Contract No. 99-00, as
amended, shall not exceed $245,000.
IT IS FURTHER AGREED that all other provisions of Contract No. 99-00 and all
previous Amendments shall remain unchanged and fully effective, and this Amendment shall
become an integral part thereof.
EXECUTED as to the day and the year first above written.
CITY OF ST. LOUIS PARK, MN WSB
By: ________________________________
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 4c - Ford Road Lift Road Lift Station Replacement 2005-1200
Page 1
4c. Project Report: Motion to adopt the attached resolution accepting this report,
establishing and ordering Improvement Project No. 2005-1200, approving plans
and specifications, and authorizing advertisement for bids for the Ford Road
Sanitary Sewer Lift Station Replacement – Project No. 2005-1200.
DESCRIPTION:
This project consists of the construction of a submersible sanitary sewer lift station to replace the
aging dry well station. The project will include new station, controls, pumps and appurtenances,
forcemain rehabilitation, and an emergency generator power supply.
BACKGROUND:
The existing Ford Road Lift Station was installed in 1970 and consists of a prefabricated steel
dry well which houses two pumps, piping, valves and electrical control equipment. A 6-foot
diameter concrete wet well, which collects and stores wastewater, is located adjacent to the dry
well. The existing forcemain is approximately 800 feet long and is a combination of 8-inch and
10-inch diameter pipe. Wastewater is pumped from the wet well under pressure upwards
through the forcemain and then expelled into a gravity flow sewer where it eventually reaches
the regional collection system.
Staff is concerned about the current condition and continued reliability of the station and
forcemain. The equipment and structure are 36 years old and repair parts for the electrical
controls are increasingly difficult to obtain. There is also concern about the structural integrity
of the steel dry well and the cast iron force main as there are highly corrosive soils present in the
area. One additional problem with the current station is that the dry well is a confined space
requiring special safety procedures for entry, i.e. greater employee risk.
The existing station has reached its life expectancy. The repair parts for the pumps are being
discontinued and will be difficult to acquire in the future. The current station is inoperable
during a power outage. This station’s high volume use and remote location requires additional
time and cost to service.
ANALYSIS AND DESIGN:
The proposed design for the lift station replacement includes installation of a new 8-foot
diameter concrete wet well to house two submersible pumps. Adjacent to the wet well will be a
valve vault for housing the check and shut-off valves for each pump. The existing wet well is
not large enough or deep enough to be used as the wet well for the new submersible station so it
will be modified to serve as an inlet manhole to the new station. The existing dry well can not be
modified for further use so it will be abandoned in place and filled with sand after all of the
equipment is removed and filled with sand.
Proposed modifications for the forcemain include a cured-in-place lining and installation of an
air relief valve at the high point. The discharge piping from the new lift station will be
connected to the forcemain.
In addition to replacement of the structures and mechanical equipment, new controls and a
permanent back-up generator will be installed to improve the reliability of the station. The new
controls will be integrated with the Utility’s SCADA system which monitors the operation and
alarm conditions of the City’s lift stations.
St. Louis Park Council Meeting
Item: 051506 - 4c - Ford Road Lift Road Lift Station Replacement 2005-1200
Page 2
Site improvements for the new lift station include paving the area around the lift station
structures, adding an access driveway from Wayzata Blvd. to the lift station, and installation of a
privacy wall on the north side of the station. The privacy wall is intended to provide a visual
barrier between the adjacent commercial building and the lift station.
STAKEHOLDER INVOLVEMENT AND PUBLIC PROCESS:
Over the last year staff has had conversations with the owner and tenant of the building adjacent
to the site. Provisions have been made and agreed to for the relocation of their business sign and
temporary disruption of several parking stalls. The City’s design consultant, Barr Engineering,
has also been working with Mn/DOT to acquire a driveway permit on the I-394 frontage road.
COSTS/FUNDING:
The total estimated cost of the Ford Road Lift Station project is higher than the estimate provided
earlier in the Capital Improvement Program (C.I.P.) due to an error in estimating. The costs
shown below are currently estimated construction, engineering, and administrative costs. Staff
has verified that adequate funds are available in the Sewer Utility Fund for this work.
The following costs and funding sources are anticipated:
Estimated Costs
Construction Cost $303,500
Contingencies (10%) $ 30,500
Engineering & Administrative $ 71,500
Total $405,500
Funding Sources Amount
Sewer Utility Fund $405,500
PROJECT TIMELINE: Should the City Council approve the Project, the following schedule
is proposed:
• Approval of Plans/Authorization to Bid by City Council May 15
• Advertise for bids May 18, May 25
• Bid Opening June 9
• Bid Tab Report to City Council; Award contract June 19
• Construction July through October 2006
Summary: This project as proposed is necessary, cost effective, and feasible.
Attachments: Resolution
Site Map (Supplement)
Prepared by: Scott Merkley – Public Works Coordinator
Reviewed By: Michael P. Rardin, Director of Public Works
Scott Anderson – Utilities Superintendent
Approved By: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 4c - Ford Road Lift Road Lift Station Replacement 2005-1200
Page 3
RESOLUTION NO: 06-089
RESOLUTION.ACCEPTING THE PROJECT REPORT,
ESTABLISHING IMPROVEMENT PROJECT NO. 2005-1200,
APPROVING PLANS AND SPECIFICATIONS, AND AUTHORIZING
ADVERTISEMENT FOR BIDS FOR IMPROVEMENT PROJECT NO. 2005-1200
WHEREAS, the City Council of the City of St. Louis Park has received a report from the
City Engineer, or designee, related to the Ford Road Sanitary lift station and forcemain.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis
Park, Minnesota, that:
1. The Project Report regarding the Ford Road Lift Station and Forcemain is hereby
accepted.
2. Such improvement as proposed is necessary, cost effective, and feasible as detailed in the
Project Report.
3. The proposed project, designated as Project No. 2005-1200, is hereby established and
ordered.
4. The plans and specifications for the making of the improvement, as prepared under the
direction of the City Engineer or designee, are approved.
5. The City Clerk shall prepare and cause to be inserted at least two weeks in the official
newspaper and in the Construction Bulletin an advertisement for bids for the making of
said improvement under said-approved plans and specifications. The advertisement shall
appear not less than ten (10) days prior to the date and time bids will be received by the
City Clerk, and that no bids will be considered unless sealed and filed with the City Clerk
and accompanied by a bid bond payable to the City for five (5) percent of the amount of
the bid.
6. The City Engineer, or designee, shall report the receipt of bids to the City Council shortly
after the letting date. The report shall include a tabulation of the bid results and a
recommendation to the City Council for award of contract.
Reviewed for Administration Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 4d - Extend DNR Flood Mitigation Grant
Page 1
4d. Motion to Amend DNR Flood Mitigation Grant Agreement A48775
BACKGROUND:
On July 23, 2003, the State of Minnesota, through the Department of Natural Resources (DNR)
issued a grant in an amount of $1,600,000 to the City of St. Louis Park for the purpose of
completing various flood reduction projects within the City. The grant essentially provides for a
50% match from the City for identified flood protection projects. These projects include, among
others, Lamplighter Pond and other identified property protection projects. The original grant
agreement is effective for a three year period which expires June 30, 2006.
ADDITIONAL INFORMATION:
Since 2003, the City has worked to complete many of the projects originally identified in the
grant, but is still in the process of completing several others. City staff estimates that the cost of
completing the projects as initially identified will likely require more than the $1,600,000 match
initially granted by the State. Of the $1,600,000 match committed by the State, the City has
utilized approximately $1,100,000 of that amount to date. It also appears that it will take well
into 2007 to complete the balance of these projects. As a result, staff has requested and received
authorization from the State for an increase in the grant amount to a maximum of $1,900,000 and
to extend the effective date of the grant to the end of 2007.
The State of Minnesota has prepared an Agreement Amendment which requires City Council
approval. The amendment extends the funding deadline to December 31, 2007, and increases the
eligible grant amount to a maximum of $1,900,000.
RECOMMENDATION:
Staff recommends that Amendment No. 1 to Grant Agreement A48775 as prepared by the State
of Minnesota be authorized for signature and execution by the City.
Attachment: Amendment No. 1 to Grant Agreement A48775
Prepared By: Scott A. Brink, City Engineer
Reviewed By: Michael P. Rardin, Director of Public Works
Approved By: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 4d - Extend DNR Flood Mitigation Grant
Page 2
CITY OF ST. LOUIS PARK
AMENDMENT NO. 1 TO GRANT AGREEMENT A48775
THIS AMENDMENT NO. 1 to Grant Agreement A48775 is made on May 15, 2006, by
and between the CITY OF ST. LOUIS PARK, a Minnesota municipal corporation hereinafter
referred to as “City”, and the State of Minnesota through its Commissioner of Natural Resources,
hereinafter referred to as “State”.
BACKGROUND
On July 23, 2003, the State of Minnesota, through the Department of Natural Resources
(DNR) issued a grant to the City of St. Louis Park for the purpose of completing various flood
reduction projects within the City. The grant essentially provides for a 50% match from the City
for identified flood protection projects.
The original grant agreement between the City and State of Minnesota provides for a grant
amount of up to $1,600,000, effective until June 30, 2006. In order to complete the projects as
identified, the State has agreed to extend the funding deadline until December 31, 2007, and to
increase the eligible funding amount to $1,900,000.
NOW, THEREFORE, in consideration of the above facts and mutual covenants herein
contained, it is hereby agreed that Grant Agreement A48775 is amended as follows:
1. The effective date of the Agreement shall be extended to December 31, 2007.
2. The Grant award to the City by the State shall be revised to $1,900,000.00, or
50% of the total costs of the approved projects as identified, whichever is less.
3. The City’s authorized agent for purposes of administration of the Grant shall be
changed from Maria Hagen to Scott A. Brink.
IT IS FURTHER AGREED that all other provisions of Grant Agreement A48775
(Original Grant) shall remain unchanged and fully effective, and this Amendment shall become
an integral part thereof.
EXECUTED as to the day and the year first above written.
CITY OF ST. LOUIS PARK, MINNESOTA
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 4e - Consent 2nd Reading Hampshire Vacation
Page 1
4e Motion to adopt second reading of an Ordinance approving the Vacation of a
portion of Hampshire Avenue South, approve summary and authorize publication.
DESCRIPTION:
The applicant, Real Estate Recycling, requests the City vacate a segment of Hampshire Avenue
South. It is a 60-foot wide road right-of-way lying south of Lake Street West. The City Council
approved the first reading of this ordinance on May 1, 2006. Approval of the second reading is
required to adopt the ordinance and vacate this segment of Hampshire Avenue.
BACKGROUND:
Real Estate Recycling is requesting the vacation of the 3600 Block of Hampshire Avenue South
to facilitate the redevelopment of the National Lead/Golden Auto property for a 79,000 square
foot office/showroom/tech building (Highway 7 Corporate Center).
The 425-foot long segment of Hampshire Avenue to be vacated is a 60-foot wide road right-of-
way lying south of Lake Street West. The applicant owns all the properties that abut this portion
Hampshire Avenue and use it for legal access. The vacated road right-of-way and neighboring
lots will be replatted as RER Addition at a later date.
RECOMMENDATION:
Staff recommends approval of the second reading of an ordinance approving the vacation of a
portion of Hampshire Avenue South located south of Lake Street West.
Attachments: Ordinance
Summary for publication
Location map
Street Vacation Survey
Prepared by: Sean Walther, Senior Planner
Reviewed by: Meg McMonigal, Planning and Zoning Supervisor
Kevin Locke, Community Development Director
Approved By: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 4e - Consent 2nd Reading Hampshire Vacation
Page 2
ORDINANCE NO. 2316-06
AN ORDINANCE VACATING ROAD RIGHT-OF-WAY
3600 BLOCK OF HAMPSHIRE AVENUE
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
Section 1. A petition in writing signed by a majority of all of the owners of all
property abutting upon both sides of the road right-of-way proposed to be vacated has been duly
filed. The notice of said petition has been published in the St. Louis Park Sailor on April 20,
2006 and the City Council has conducted a public hearing upon said petition and has determined
that the road right-of-way is not needed for public purposes, and that it is for the best interest of
the public that said road right-of-way be vacated.
Section 2. The following described road right-of-way, as now dedicated and laid out
within the corporate limits of the City of St. Louis Park, is vacated:
That portion of Hampshire Avenue, platted in "Rearrangement of St. Louis Park"
as Central Avenue, which lies Southerly of the Easterly extension of the Northerly
line of Lot 4, Auditor's Subdivision No. 348, Hennepin County, Minnesota, also
known as the southerly right of way line of Lake Street, and which lies northerly
of the westerly extension of the Northerly line of Lot 3, of said Auditor's
Subdivision No. 348, to the westerly line of said vacated street and that part of the
Northeasterly one-half of said vacated street which lies northerly of a line drawn
at right angles to the centerline of said vacated street, said line intersects the
Southwest corner of the Northwesterly 25 feet of Lot 3, Auditor's Subdivision No.
348.
Section 3. The City Clerk is instructed to record certified copies of this ordinance in
the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Sec.4. This Ordinance shall take effect fifteen days after its publication.
First Reading May 1, 2006
Second Reading May 15, 2006
Date of Publication May 25, 2006
Date Ordinance takes effect June 9, 2006
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest: Approved as to form and execution:
City Clerk City Attorney
St. Louis Park Council Meeting
Item: 051506 - 4e - Consent 2nd Reading Hampshire Vacation
Page 3
SUMMARY
ORDINANCE NO.2316-06
AN ORDINANCE VACATING ROAD RIGHT-OF-WAY
3600 BLOCK OF HAMPSHIRE AVENUE
This ordinance states that the 3600 Block of Hampshire Avenue road right-of-way lying south of
Lake Street West will be vacated.
This ordinance shall take effect 15 days after publication.
Adopted by the City Council May 15, 2006
Jeffrey W. Jacobs /s/
Mayor
A copy of the full text of this ordinance is available for inspection with the City Clerk.
Published in St. Louis Park Sailor: May 25, 2006
St. Louis Park Council Meeting
Item: 051506 - 4e - Consent 2nd Reading Hampshire Vacation
Page 4
St. Louis Park Council Meeting
Item: 051506 - 4e - Consent 2nd Reading Hampshire Vacation
Page 5
St. Louis Park Council Meeting
Item: 051506 - 4f - Consent 2nd Reading Rezoning 7003 W. Lake St
Page 1
4f. Motion to adopt second reading of an Ordinance amending the Official Zoning
Map from C2 – General Commercial to IP –Industrial Park, approve summary
and authorize publication.
DESCRIPTION:
Real Estate Recycling requested an amendment to the Zoning Map. The City Council approved
the first reading of the proposed ordinance on May 1, 2006. Approval of the second reading is
required to adopt the ordinance and rezone the property from C2 General Commercial to IP
Industrial Park. The proposal makes the designation of 7003 Lake Street West consistent with
the designation of surrounding properties that are also owned by the applicant and allows the
applicant to proceed with redevelopment plans to construct a 78,900 square foot
office/showroom building.
Comprehensive Plan: Industrial (pending) – approved by City Council on May 1, 2006
Zoning: C2 – General Commercial
Request: IP – Industrial Park Zoning District
Parcel Size: 419,760 square feet (9.63 acres)
Current Land Use: Remote parking lot for Methodist Hospital, 6,000 square foot
building, All Hours Towing (city impound lot)
Proposed Land Use: Office/showroom (78,900 square feet), parking lot
Site Map:
REZONING:
The City Council approved a Comprehensive Plan designation change for this property from
Commercial to Industrial on May 1, 2006. The proposed rezoning is consistent with the pending
Comprehensive Plan amendment (awaiting Metropolitan Council review and approval).
St. Louis Park Council Meeting
Item: 051506 - 4f - Consent 2nd Reading Rezoning 7003 W. Lake St
Page 2
PROCESS:
The Planning Commission recommended approval of the Rezoning after the public hearing on
April 5, 2006. Surrounding property owners within 500 feet were notified of the hearing. No
residents testified at the hearing and staff has received no questions or comments about the
proposal from surrounding jurisdictions. Staff sent written notification of the City Council’s
decision to amend the comprehensive plan on May 1, 2006. The City Council approved the first
reading of the ordinance to rezone the property on May 1, 2006. The action to rezone the
property will be effective soon after publication and after the Metropolitan Council approves the
Comprehensive Plan Amendment.
RECOMMENDATION:
Staff recommends approval of the second reading of an Ordinance amending the Official Zoning
Map from C2 – General Commercial to IP –Industrial Park for the property at 7003 Lake Street
West and summary for publication.
Attachments:
• Ordinance Amending the St. Louis Park Ordinance Code Changing
Boundaries of Zoning Districts and Summary Ordinance for publication.
• Zoning Map Amendment exhibit
Prepared by: Sean Walther, Senior Planner
Reviewed by: Meg McMonigal, Planning & Zoning Supervisor
Approved By: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 4f - Consent 2nd Reading Rezoning 7003 W. Lake St
Page 3
ORDINANCE NO. 2317-06
AN ORDINANCE AMENDING THE ST. LOUIS PARK ORDINANCE CODE
CHANGING BOUNDARIES OF ZONING DISTRICTS
7003 LAKE STREET WEST
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
Section 1. The City Council has considered the advice and recommendation of the
Planning Commission (Case No. 06-21-Z).
Section 2. The St. Louis Park Zoning Ordinance adopted December 28, 1959,
Ordinance No. 730; amended December 31, 1992, Ordinance No. 1902-93, amended December
17, 2001, Ordinance No. 2216-01, as heretofore amended, is hereby further amended by
changing the zoning district boundaries by reclassifying the following described lands from their
existing land use district classification to the new land use district classification as indicated for
the tract as hereinafter set forth, to wit:
Par 1: Lot 4 except that part lying Southeasterly of a line running from a point in the
Northeasterly line of said Lot distant 367.24 feet Southeasterly, measured along said
Northeasterly line from the most Northerly corner thereof to a point in the Southwesterly
line of said Lot; distant 535.8 feet Southeasterly measured along Southwesterly line from
the most Westerly corner thereof, Auditor’s subdivision Number 348, Hennepin County,
Minnesota
Par 2: Lots 1 and 2;
Lot 3 except the Northerly 25 feet thereof and
That part of Lot 4 lying Southeasterly of a line running from a point in the Northeasterly
line of said Lot, distant 367.24 feet Southeasterly, measured along said Northeasterly line
from the most Northerly corner thereof to a point in the Southwesterly line of said Lot,
distant 535.8 feet Southeasterly measured along said Southwesterly line from the most
Westerly corner thereof, Auditor’s Subdivision Number 348, Hennepin County,
Minnesota
Par 3: Lot 5, Auditor’s Subdivision No. 348, Hennepin County, Minnesota
Subject to rights of The Park Central Little League and others, if any, to the use of that
portion of the above described premises being used as a grandstand and baseball diamond
as shown in deed Dec. 1344270; (as to land in Par 2)
Subject to the right of the State of Minnesota to construct and maintain temporary snow
fences upon those portions of said lands adjacent to State Highway No. 7; (as to land in
Pars 1, 2 and 3) from General Commercial C2 to Industrial Park IP.
St. Louis Park Council Meeting
Item: 051506 - 4f - Consent 2nd Reading Rezoning 7003 W. Lake St
Page 4
Section 3. The contents of Planning Case File 06-21-Z are hereby entered into and
made part of the public hearing record and the record of decision for this case.
Section 4. The ordinance shall take effect upon Metropolitan Council approval of
associated Comprehensive Plan amendment.
First Reading May 1, 2006
Second Reading May 15, 2006
Date of Publication May 25, 2006
Date Ordinance takes effect June 9, 2006
Reviewed for Administration Adopted by the City Council May 15, 2006
City Manager Mayor
Attest: Approved as to Form and Execution:
City Clerk City Attorney
St. Louis Park Council Meeting
Item: 051506 - 4f - Consent 2nd Reading Rezoning 7003 W. Lake St
Page 5
SUMMARY
ORDINANCE NO. 2317-06
AN ORDINANCE CHANGING BOUNDARIES OF ZONING DISTRICTS
7003 LAKE STREET WEST
This ordinance states that the zoning map will be amended from C2 - General Commercial to IP
– Industrial Park for property located at 7003 Lake Street West.
This ordinance shall take effect 15 days after publication.
Adopted by the City Council May 15, 2006
Jeffrey W. Jacobs /s/
Mayor
A copy of the full text of this ordinance is available for inspection with the City Clerk.
Published in St. Louis Park Sailor: May 25, 2006
St. Louis Park Council Meeting
Item: 051506 - 4f - Consent 2nd Reading Rezoning 7003 W. Lake St
Page 6
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 1
6a. Public Hearing – Modification to the Highway 7 Tax Increment Finance District
and Establishment of the Highway 7 Corporate Center Tax Increment Finance
District and Highway 7 Hazardous Substance Subdistrict
This report considers a resolution modifying the Highway 7 Tax Increment Finance
District and establishing the Highway 7 Corporate Center Tax Increment Finance
District (a redevelopment district) and Highway 7 Hazardous Substance Subdistrict
within Redevelopment Project No. 1.
Recommended
Action:
Motion to close public hearing.
Motion to adopt the resolution approving the modification to the
Highway 7 Tax Increment Finance District, establishment of the
Highway 7 Corporate Center Tax Increment Finance District and
Highway 7 Hazardous Substance Subdistrict and adopting a Tax
Increment Financing Plan therefor.
DESCRIPTION:
Redevelopment and remediation of the contaminated former National Lead/Golden Auto
property will require many actions including financial assistance from the City of St. Louis Park
and its Economic Development Authority (EDA). The means by which financial assistance will
be provided is contained in a Redevelopment Contract between the Redeveloper, Highway 7
Business Center LLC (Real Estate Recycling), the EDA, and the City. The funding source for
the assistance to be provided to the Redeveloper is tax increment funds generated from a new tax
increment financing district (TIF district) to be created by the EDA and the City and to be called
the Highway 7 Corporate Center Tax Increment Financing District. Creation of a TIF district
requires a public hearing and adoption of a Tax Increment Financing Plan for the new district.
For redevelopment and remediation of this particular site to occur, two additional TIF-related
actions are needed. The first is the removal of the site from the existing TIF district in which it
currently is located. That district is the Highway 7 TIF District. The second is creation of a
Hazardous Substance Subdistrict within the new Highway 7 Corporate Center TIF District.
Creation of a Hazardous Substance Subdistrict allows the City to collect additional tax increment
to assist the proposed project but it may only be applied toward remediation-related expenses.
This agenda item addresses:
1. The TIF district public hearing requirement.
2. Removal of the site from the existing Highway 7 TIF district through modification of the
existing Hwy 7 TIF district financing plan.
3. Establishment and approval of the new Highway 7 Corporate Center TIF district and its
TIF district Financing Plan.
4. Establishment of a Hazardous Substance Subdistrict within the new Highway 7 Corporate
Center TIF District.
Some of these actions require both City and EDA approval and are included on both meeting
agendas. Other actions related to the redevelopment and remediation of this site have their own
separate agenda items on either or both of tonight’s EDA and City Council meetings agendas.
They include approval of the redevelopment contract with RER, public hearings and
authorization to sell and lease land to the Redeveloper and approval of TIF notes as the vehicle
to actually provide financial assistance to the Redeveloper.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 2
Specifics about the redevelopment/remediation project, creation of the TIF district and
Hazardous Substance Subdistrict, and the financial aspects of the project are described below.
BACKGROUND:
Highway 7 Business Center LLC (Real Estate Recycling) plans to cleanup and redevelop the
former National Lead/Golden Auto property (a former Superfund site) located at 7003 Lake
Street West along with four properties to the east along Hampshire Ave. Upon the removal of
the existing buildings on the site, the redeveloper’s environmental response action plan calls for
excavation and treatment of the most heavily contaminated soils (“hot spots”) with a stabilization
agent and then capping those soils on site with a new building and parking lots.
Once the contamination on the property has been properly addressed and the site prepared for
redevelopment, Real Estate Recycling proposes to construct a 78,780 square foot, multi-tenant
office/showroom/tech or “flex” building called the Highway 7 Corporate Center. The majority
of the building will be office and finished space. South of the new building, a 400-stall parking
lot will be constructed. This new “Purple Lot” will continue to be leased to Methodist Hospital
for its off-site employee parking needs until at least June 30, 2018. South of the Xcel Energy
substation, All Hours Towing will continue its sublease with Methodist for its’ privately operated
impound lot which is utilized by the City.
The vacant property owned by the City and EDA at the southwest corner of Hwy 7 and
Louisiana Avenue will be developed as a remote parking lot for Methodist’s remaining parking
needs displaced by the new building on the former National Lead/Golden Auto property. This
new “Silver Lot” will accommodate 272 to 420 vehicles and will be landscaped around the
perimeter. The parking lot will serve a dual purpose as an environmental cap for the site due to
the fact that the soils underneath are impacted with contaminates. The cap will help prevent
impacted groundwater from leaching into the underlying aquifer.
ANNUAL ECONOMIC IMPACT:
Currently, the five properties that constitute the subject redevelopment site area have a combined
assessed value of approximately $4.8 million. The value of the former National Lead/Golden
Auto parcel, in particular, is impacted by its designation as a contaminated property. Upon
redevelopment the site area would have an estimated market value of just over $9 million.
Currently, the five properties generate a total of $103,430 in property taxes. The projected
property tax on the site area after the proposed redevelopment has occurred would be
approximately $308,715. Thus, the redeveloped site would produce approximately $205,285
more in property taxes than what it currently generates.
The proposed multi-tenant, flex building is actively being marketed within the Twin Cities and
has received substantial interest from prospective tenants. No tenants to date have signed leases
given all the necessary approvals yet to be obtained. Until those occur it is difficult to precisely
determine the exact number of new employment positions to result from the new project. Given
the size and approximate finish level of the building, however, one could estimate that the
project could generate upwards of 350 employment positions depending on the actual tenants
and their required amount of finished space.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 3
PLANNING APPROVALS
On April 5, 2006 the Planning Commission recommended approval of the proposed
Comprehensive Plan amendment and Rezoning for 7003 Lake Street West changing it from
Commercial to Industrial. On May 1, 2006 the City Council approved these changes to the
Comprehensive Plan and Zoning Ordinance. The action to rezone the property requires two
readings. The second reading of the zoning ordinance is scheduled for May 15, 2006.
This redevelopment project is subject to a number of planning and zoning requirements several
of which will be considered by the City Council on May 15th. . The remainder are tentatively
scheduled for July 10th.
GRAND FUNDING AND REDEVELOPER’S TIF APPLICATION:
The total cost of acquiring the five properties, relocating five businesses, removing the buildings,
remediating the site, constructing the Highway 7 Corporate Center building as well as building
the “Silver Parking Lot” is nearly $20 million. Of this amount, approximately $13.8 million is
related to land acquisition and environmental costs. To date, the EDA and Real Estate Recycling
successfully obtained $7,454,456 in grant funding for these costs from the Department of
Employment and Economic Development (DEED), Metropolitan Council, and Hennepin
County. Another $600,000 (or $200,000 a piece) was recently applied for on May 1. Presuming
the EDA and Redeveloper are successful in obtaining these funds the total amount of grant funds
in the project will top $8 million (see chart below). These grants will assist with the acquisition,
demolition and clean-up expenses associated with the former Superfund site. The Redeveloper
will be investing over $3.6 million in these costs as well which leaves a balance to be filled by
tax increment financing of $2.1 million.
Proposed funding sources for the acquisition, demolition and cleanup of the
former National Lead/Golden Auto property
Funding Source Amount % of Project
DEED Contamination Clean-up Grant $2,104,456 14.9% of
project cost
Met Council TBRA Grant (can be used to
offset portion of local match)
$1,000,000 7.1% of project
cost
Hennepin County ERF Grant $4,950,000 35% of project
cost
Subtotal of grant funding $8,054,456 57%
Local (pass through provided by
Redeveloper)
$3,620,000 25.6% of
project cost
Local (Hwy 7 Corporate Center TIF Dist
Hwy 7 Hazardous Substance Subdist)
$2,460,000 17.4% of
project cost
TOTAL $14,134,456 100%
The above totals include the spring 2006 grant requests.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 4
At the September 26, 2005 Study Session the EDA/Council reviewed Real Estate Recycling’s
preliminary TIF application along with preliminary business points for a future redevelopment
contract. Both were favorably received. On February 13, 2006 the EDA/Council received an
update report which noted the redeveloper’s plans to modify the proposed building thereby
increasing the value of the project. The report also noted the redeveloper’s need for additional
TIF assistance. On April 24th, the EDA/Council reviewed the primary business points of the
proposed contract and the terms were favorably received.
Staff and the EDA’s financial consultant, Ehlers & Associates, have reviewed numerous budgets
and proformas from Real Estate Recycling and concurred that the proposed Highway 7
Corporate Center project warrants the use of tax increment financing. More specifically, it was
determined that there is a financial gap in the most recent proforma of $2,460,000. The gap
includes $2.1 million in environmental costs (specifically building demolition, soil remediation,
relocation of municipal utilities and site capping) and $360,000 in business relocation and
reestablishment costs. It is for these costs that Real Estate Recycling is seeking TIF assistance.
The requested level of assistance is considered reasonable given the complexity, quality,
projected total value, and other residual benefits derived from the proposed redevelopment.
The Redeveloper recently obtained commitments from the Department of Employment and
Economic Development (DEED) and Hennepin County for low interest (1%) Environment
Protection Agency (EPA) loans to cover the project’s financial gap. The Redeveloper intends to
repay these loans with the requested TIF assistance. The building portion of the proposed project
will be conventionally financed through a private lender.
It is estimated the proposed project would generate the requested $2.4 million in approximately
20 years (on a net present value basis) using the 1% interest rate and no inflation. The proposed
project would be financed on a "pay-as-you-go" basis, which is the desired financing method
under the City's policy.
In order to generate the level of financial assistance required by the proposed project it is
recommended that the EDA create a new Redevelopment TIF district as well as a Hazardous
Substance Subdistrict. The TIF district will capture the increased value of the new development.
The TIF subdistrict will capture the “base values” of the current parcels. Thus the tax increment
from the new development as well as the base parcels will be returned to the redeveloper to
reimburse it for its qualified project costs. Approximately $83,940 of the City’s tax capacity will
be captured by the Hazardous Substance Subdistrict.
Only expenses incurred to fulfill the redeveloper’s Voluntary Response Action Plan (VRAP)
may be reimbursed with tax increment from a Hazardous Substance Subdistrict. In fact, the vast
majority of the tax increment ($2.1 million) will be used for environmental costs as noted above.
The remainder of the tax increment ($360,000) will be used for business relocation and
reestablishment costs which will be reimbursed with the tax increment from the Redevelopment
District.
TIF DISTRICT APPROVALS:
At its meeting on March 20th, the City Council set a public hearing date of May 15, 2006 for the
proposed Redevelopment TIF District and Hazardous Substance Subdistrict.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 5
The Planning Commission reviewed the Tax Increment Financing Plan on April 26th and found
that it was in conformance with the City’s Comprehensive Plan.
Attached is a copy of the Tax Increment Financing Plan modifying the Highway 7 TIF District
and establishing the Highway 7 Corporate Center Tax Increment Financing District and Highway
7 Hazardous Substance Tax Increment Subdistrict.
RESULTS OF TIF FEASIBILITYANALYSIS:
Staff retained (at developer’s expense) LHB, Inc. to conduct a state-required inspection to
determine if the proposed project qualified as a Redevelopment TIF District. The inspection
made the following determinations:
• That the parcels which are occupied (meaning more than 15% of the area of the parcel is
occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar
structures) constitute over 70% of the area of the District.
• That more than 20 percent of the buildings located within the District are structurally
substandard as defined in the TIF Act.
• That more than 30 percent of the buildings located within the District require substantial
renovation or clearance to remove the substandard conditions such as defined in the TIF
Act.
The inspection therefore concluded that the proposed redevelopment site met both the “Coverage
Test” and the “Condition of Buildings Test” and thus qualified under Minnesota Statutes to be a
Redevelopment TIF District.
SYNOPSIS OF THE PROPOSED TIF DISTRICT:
The former National Lead/Golden Auto property itself (7003 Lake Street West) was originally
included in the Trunk Highway 7 Redevelopment TIF District. Since a parcel cannot be included
within two different TIF districts the EDA/Council is being requested in the attached resolution
to remove (or decertify) this parcel from the current Trunk Highway 7 Redevelopment TIF
District in order that it may be included within the new Highway 7 Corporate Center TIF
District.
The Highway 7 Corporate Center TIF District and Hazardous Substance Subdistrict will then
consist of five (5) properties located at 7003 Lake Street West, 6651 Highway 7, 3625, 3629, and
3639 Hampshire Avenue. A map of the Highway 7 Corporate Center TIF District and
Subdistrict is provided in the attached TIF Plan.
The subject site area is within the City’s Redevelopment Project Area which is statutorily
required. Inclusion of this project within a designated Redevelopment Project Area gives the
EDA/Council the authority to assist with all the remediation and redevelopment actions
necessary to implement the Highway 7 Corporate Center project.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 6
DURATION OF THE DISTRICT:
As authorized by statute, the duration of redevelopment districts and hazardous substance
subdistricts is up to 25 years after receipt of the first increment by the City (a total of 26 years of
tax increment). The date of receipt by the City of the first tax increment is expected in 2008. It
is projected it will take 20 years of increment to provide the needed level of assistance for this
redevelopment project. Thus, it is estimated that the District would terminate after 2028, or
when the TIF plan is satisfied. The EDA and City have the right to decertify the District prior to
the legally required date.
FISCAL DISPARITIES ELECTION:
In keeping with the City’s TIF Policy, the District will contribute to fiscal disparities.
RECOMMENDATIONS:
Upon review and approval of the EDA’s financial and legal consultants, staff recommends
approval of the attached resolution modifying the Highway 7 TIF District and approving the TIF
Plan for the Highway 7 Corporate Center TIF District and Highway 7 Hazardous Substance
Subdistrict as presented.
Attachments: Resolution
TIF Plan
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Kevin Locke, Community Development Director
Approved by: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 7
CITY OF ST. LOUIS PARK
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 06-081
RESOLUTION ADOPTING A MODIFICATION TO THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, A
MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR
THE TRUNK HIGHWAY 7 TAX INCREMENT FINANCING DISTRICT,
ESTABLISHING THE HIGHWAY 7 CORPORATE CENTER TAX
INCREMENT FINANCING DISTRICT AND ESTABLISHING THE
HIGHWAY 7 HAZARDOUS SUBSTANCE SUBDISTRICT THEREIN
AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR.
BE IT RESOLVED by the City Council (the "Council") of the City of St. Louis Park,
Minnesota (the "City"), as follows:
Section 1. Recitals
1.01. The Board of Commissioners (the "Board") of the St. Louis Park Economic
Development Authority (the "EDA") has heretofore established Redevelopment Project No. 1
and adopted the Redevelopment Plan therefor. It has been proposed by the EDA and the City that
the City adopt a modification to the Redevelopment Plan for Redevelopment Project No. 1 (the
"Redevelopment Plan Modification"), a modification to the Tax Increment Financing Plan for
the Trunk Highway 7 Tax Increment Financing District (the "TIF Plan Modification"), establish
the Highway 7 Corporate Center Tax Increment Financing District (the "District") and establish
the Highway 7 Hazardous Substance Subdistrict (the "Subdistrict") therein and adopt a Tax
Increment Financing Plan (the "TIF Plan") therefor (referred to collectively herein as the
"Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes,
Sections 469.001 to 469.047, Sections 469.090 to 469.1082 and Sections 469.174 to 469.1799,
all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's
consideration.
1.02. The EDA and City have investigated the facts relating to the Plans and have
caused the Plans to be prepared.
1.03. The EDA and City have performed all actions required by law to be performed
prior to the establishment of the District and the Subdistrict and the adoption and approval of the
proposed Plans, including, but not limited to, notification of Hennepin County and Independent
School District No. 283 having taxing jurisdiction over the property to be included in the
District, a review of and written comment on the Plans by the City Planning Commission,
approval of the Plans by the EDA on May 15, 2006, and the holding of a public hearing upon
published notice as required by law.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 8
1.04. Certain written reports, including the MPCA report/remediation plan, Response
Action Plan and the Project Budget (the ''Reports") relating to the Plans and to the activities
contemplated therein have heretofore been prepared by staff and consultants and submitted to the
Council and/or made a part of the City files and proceedings on the Plans. The Reports include
data, information and/or substantiation constituting or relating to the basis for the other findings
and determinations made in this resolution. The Council hereby confirms, ratifies and adopts the
Reports, which are hereby incorporated into and made as fully a part of this resolution to the
same extent as if set forth in full herein.
1.05 The City is not modifying the boundaries of Redevelopment Project No. 1, but is,
however, modifying the Redevelopment Plan therefor.
Section 2. Findings for the Adoption and Approval of the TIF Plan Modification
2.01. The Council hereby finds that parcel number 17-117-21-44-0065 (the "parcel")
should be and is eliminated from the Trunk Highway 7 Tax Increment Financing District and
included in the Highway 7 Corporate Center Tax Increment Financing District.
2.02. The elimination of the above-referenced parcel constitutes the TIF Plan
Modification for the Trunk Highway 7 Tax Increment Financing District, and staff is directed to
maintain a copy of this resolution with the records for the Trunk Highway 7 Tax Increment
Financing District.
2.03. The Council hereby reaffirms the original findings for the Trunk Highway 7 Tax
Increment Financing District.
Section 3. Findings for the Adoption of the Redevelopment Plan Modification.
3.01. The Council hereby finds that the Modification to the Redevelopment Plan for
Redevelopment Project No. 1 consists of the Modifications to the TIF Plan for the Trunk
Highway 7 TIF District, the establishment of the Highway 7 Corporate Center TIF District and
the establishment of the Highway 7 Hazardous Substance Subdistrict.
3.02. The Council hereby finds that the modification to the Redevelopment Plan for
Redevelopment Project No. 1 conforms to the general plan for the development of the City as a
whole and represents a continuation of the goals and objectives set forth in the Redevelopment
Plan for Redevelopment Plan for Redevelopment Project No. 1.
Section 4. Findings for the Establishment of the Highway 7 Corporate Center Tax Increment
Financing District
4.01. The Council hereby finds that the District is in the public interest and meets the
requirements for a "redevelopment district" under Minnesota Statutes, Section 469.174, Subd. 10
(a)(1).
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 9
4.02. The Council further finds that in its opinion the proposed redevelopment would
not reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and that the increased market value of the site that could reasonably be
expected to occur without the use of tax increment financing would be less than the increase in
the market value estimated to result from the proposed development after subtracting the present
value of the projected tax increments for the maximum duration of the District permitted by the
Tax Increment Financing Plan, that the Plans conform to the general plan for the development or
redevelopment of the City as a whole; and that the Plans will afford maximum opportunity
consistent with the sound needs of the City as a whole, for the development or redevelopment of
the District and Redevelopment Project No. 1 by private enterprise.
4.03. The Council further finds, declares and determines that the City made the above
findings stated in this Section and has set forth the reasons and supporting facts for each
determination in writing, attached hereto as Exhibit A.
4.04. The Council elects to calculate fiscal disparities for the District in accordance
with Minnesota Statutes, Section 469.177, Subd. 3, clause b, which means the fiscal disparities
contribution would be taken from inside the District.
Section 5. Findings for the Establishment of the Highway 7 Corporate Center Tax Increment
Financing Subdistrict
5.01. The Council hereby finds that the Subdistrict is in the public interest and meets
the requirements for a "hazardous substance subdistrict" under Minnesota Statutes, Section
469.174, Subd. 16 and Section 469.175, Subd. 7, because:
(a) All five parcels in the Subdistrict are designated hazardous substance sites.
(b) Redevelopment of the Subdistrict, in the opinion of the Council, would not
reasonably be expected to occur solely through private investment and tax
increment otherwise available, and therefore the Subdistrict is deemed necessary.
(c) There are no parcels in the Subdistrict that are not designated hazardous substance
sites.
(d) The Subdistrict is not larger than, and the period of time during which increments
are elected to be received is not longer than, that which is necessary in the opinion
of the authority to provide for the additional costs due to the designated hazardous
substance site.
Section 6. Public Purpose
6.01. The adoption of the Plans conforms in all respects to the requirements of the Act
and will help fulfill a need to redevelop an area of the City which is occupied by substandard
buildings, clean up a contaminated site, improve the tax base and improve the general economy
of the State. More specifically, the Plans will facilitate the development of a multi-tenant
industrial building and associated parking on severely contaminated land. The Council expressly
finds that any private benefit to be received by the developers is incidental, as the assistance is
provided only to enable the developers to clean up a severely contaminated site in accordance
with a state-approved VRAP and to offset relocation costs, and only in the amount necessary to
carry out that purpose. That is, the tax increment assistance is necessary to provide the public
benefits described above. Therefore, the Council finds that the public benefits of the Plans
exceed any private benefits.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 10
Section 7. Approval and Adoption of the Plans
7.01. The Plans, as presented to the Council on this date, including without limitation
the findings and statements of objectives contained therein, are hereby approved, ratified,
established, and adopted and shall be placed on file in the office of the City Clerk.
7.02. The staff of the City, the City's advisors and legal counsel are authorized and
directed to proceed with the implementation of the Plans and to negotiate, draft, prepare and
present to this Council for its consideration all further plans, resolutions, documents and
contracts necessary for this purpose.
7.03 The Auditor of Hennepin County is requested to certify the original net tax
capacity of the District, as described in the Plans, and to certify in each year thereafter the
amount by which the original net tax capacity has increased or decreased; and the St. Louis Park
Economic Development Authority is authorized and directed to forthwith transmit this request to
the County Auditor in such form and content as the Auditor may specify, together with a list of
all properties within the District, for which building permits have been issued during the 18
months immediately preceding the adoption of this resolution.
7.04. The City Clerk is further authorized and directed to file a copy of the Plans with
the Commissioner of the Minnesota Department of Revenue and the Office of the State Auditor
pursuant to Minnesota Statutes 469.175, Subd. 4a.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 11
EXHIBIT A
RESOLUTION NO. 06-081
The reasons and facts supporting the findings for the adoption of the Tax Increment Financing
Plan (TIF Plan) for the Highway 7 Corporate Center Tax Increment Financing District (District)
and the Highway 7 Hazardous Substance Subdistrict, as required pursuant to Minnesota Statutes,
Section 469.175, Subdivision 3 are as follows:
1. Finding that the Highway 7 Corporate Center Tax Increment Financing District is a
redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1).
The District consists of 5 parcel(s), with plans to redevelop the area for commercial purposes.
Parcels that make up at least 70 percent of the area of the District are occupied by buildings,
streets, utilities, paved or gravel parking lots or other similar structures and more than 50
percent of the buildings in the District, not including outbuildings, are structurally
substandard to a degree requiring substantial renovation or clearance. (See Appendix F of the
TIF Plan.)
2. Finding that the Highway 7 Hazardous Substance Tax Increment Financing District is a
hazardous substance subdistrict as defined in M.S., Section 469.174, Subd. 16 and M.S.
Section 469.175, Subd. 7.
A. All five parcels in the Subdistrict are designated hazardous substance sites: The
developer prepared a response action plan ("RAP") which includes all Parcels in the District
and was approved by the Commissioner of the Minnesota Pollution Control Agency (MPCA)
on April 28, 2005. The EDA is negotiating to enter into a Development Agreement with the
developer in conjunction with creation of this redevelopment TIF district and subdistrict to
be approved in May 2006. The Development Agreement requires the developer to carry out
remediation in accordance with the RAP on all 5 parcels in the District, financed in part with
grant funds obtained by the City or EDA and in part with tax increment.
B. Redevelopment of the Subdistrict, in the opinion of the Council, would not reasonably be
expected to occur solely through private investment and tax increment otherwise available,
and therefore the Subdistrict is deemed necessary: As explained in Finding 3 below, tax
increment is required to pay approximately $2.4 million of TIF-eligible costs. Of that
amount, approximately $2.1 million is designated for remediation. Of this remediation
amount, if the assumptions of Appendix D of the TIF Plan are correct, $1.1 million is
expected to derive from the District, leaving a gap of approximately $1 million to be paid
from the Subdistrict (all as shown in Appendix D of the TIF Plan).
C. There are no parcels in the Subdistrict that are not designated hazardous substance sites:
As explained in Finding 2A above, the developer’s RAP includes, and requires remediation
of, all Parcels in the Subdistrict.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 12
D. The Subdistrict is not larger than, and the period of time during which increments are
elected to be received is not longer than, that which is necessary in the opinion of the
authority to provide for the additional costs due to the designated hazardous substance site:
The Subdistrict is coterminous with the District, and the EDA will collect increments from
the Subdistrict only as long as needed to pay the additional costs of the RAP that cannot be
financed with grants and tax increment from the District, as explained in Finding 2B above.
The EDA plans to decertify the Subdistrict once sufficient increment has been collected to
pay the $1 million gap in remediation costs.
3. Finding that the proposed development, in the opinion of the City Council, would not
reasonably be expected to occur solely through private investment within the reasonably
foreseeable future and that the increased market value of the site that could reasonably
be expected to occur without the use of tax increment financing would be less than the
increase in the market value estimated to result from the proposed development after
subtracting the present value of the projected tax increments for the maximum duration
of the Highway 7 Corporate Center Tax Increment Financing District permitted by the
TIF Plan.
The proposed development, in the opinion of the City, would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable future: The site is
occupied by the former National Lead/Golden Auto facility which formulated lead smelting.
Due to this manufacturing process, the site is severely contaminated. The predominant
contamination is lead slag with some petroleum hydrocarbons, cisterns, and old foundations
and construction debris. Due to the extensive contamination, redevelopment of the site will
require demolition of existing structures (three of which are also structurally substandard)
and clean up in accordance with an MPCA approved Environmental Response Action Plan
(RAP). The RAP calls for excavation and treatment of the most heavily contaminated soils
(hot spots) with a stabilization agent and then capping those soils on site with the new
building and parking lots. Total costs to clean up the property in accordance with the RAP
exceeds $18 million, which precludes anyone from redeveloping the site without public
assistance in the form of various grants and tax increment. After applying all grant
resources, the City has determined that a gap of approximately $2.4 million exists and needs
to be filled through tax increment from both the District and the Subdistrict in order to make
the proposed development financially feasible. The City therefore does not believe the
proposed redevelopment is not likely to occur without the assistance described in this TIF
Plan.
The increased market value of the site that could reasonably be expected to occur without the
use of tax increment financing would be less than the increase in market value estimated to
result from the proposed development after subtracting the present value of the projected tax
increments for the maximum duration of the District permitted by the TIF Plan: The only
way to increase the market value would be to redevelop the site for a higher intensity use
such as housing. However, this scenario is infeasible since the level of clean up required for
housing or other uses is much more extensive than the $18 million already required for an
industrial use and would be cost prohibitive. In addition, due to the type of contamination,
different types of uses may be generally precluded from developing on the site by other
agencies.
St. Louis Park Council Meeting
Item: 051506 - 6a - Highway 7 TIF Plan
Page 13
Moreover, a large portion of the site is encumbered by a lease to Methodist Hospital for
remote parking, which will remain in place at least until the hospital can construct additional
parking on its campus. Any alternative development would need to accommodate such
needs, which limits the potential for more intensive development than that proposed under
this Plan.
A comparative analysis of estimated market values both with and without establishment of
the District and Subdistrict and the use of tax increments has been performed as described
above. If all development which is proposed to be assisted with tax increment were to occur
in the District and Subdistrict, the total increase in market value would be up to $4,354,628.
The present value of tax increments from the District is estimated to be $3,619,121. For the
reasons described above, it is the Council's finding that no development with any significant
market value is expected to occur in the foreseeable future without tax increment and other
assistance; and that even if some development could occur, it would not create new market
value of greater than $735,507. (See Cashflow in Appendix D of the TIF Plan.)
4. Finding that the Tax Increment Financing Plan for the Highway 7 Corporate Center Tax
Increment Financing District conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The Planning Commission reviewed the TIF Plan and found that the TIF Plan conforms to
the general development plan of the City (the "Comprehensive Plan"), both as the
Comprehensive Plan currently exists and as proposed to be modified by a proposed
amendment (the "Proposed Amendment"). The Proposed Amendment would change the
designation of the TIF District area from Commercial to Industrial. The Comprehensive
Plan, both as it currently exists and as modified by the Proposed Amendment, allows for the
clean-up and redevelopment of contaminated land and construction of a multi-tenant
commercial/industrial building in the area of the TIF District.
5. Finding that the Tax Increment Financing Plan for the Highway 7 Corporate Center Tax
Increment Financing District will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development or redevelopment of Redevelopment
Project No. 1 by private enterprise.
The project to be assisted by the TIF District will result in clean up of a contaminated site,
increased employment in the City and the State of Minnesota, increased tax base of the State
and add a high quality development to the City.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 1
8a. Contract for Private Redevelopment including Property Conveyance and Lease
Agreement between the City of St. Louis Park, St. Louis Park Economic
Development Authority, and Highway 7 Business Center LLC
This report considers a resolution approving a redevelopment agreement with Highway
7 Business Center LLC for the remediation and redevelopment of former National
Lead/Golden Auto site area and the construction of the Highway 7 Corporate Center
project.
Recommended
Action:
Motion to adopt a resolution approving a Contract for Private
Redevelopment including Property Conveyance and Lease
Agreement by and between the City of St. Louis Park, St. Louis Park
Economic Development Authority, and Highway 7 Business Center
LLC.
DESCRIPTION:
The proposed Redevelopment Contract with Highway 7 Business Center LLC (Real Estate
Recycling) must be considered by both the EDA and the City. It is the vehicle by which the
Redeveloper agrees to remediate property, provide easements and construct the minimum
improvements. It is also the vehicle by which the City disburses grant funds, commits financial
assistance, and conveys property to the Redeveloper.
BACKGROUND:
Highway 7 Business Center LLC (Real Estate Recycling) plans to cleanup and redevelop the
former National Lead/Golden Auto property (a former Superfund site) located at 7003 Lake
Street West along with four properties to the east along Hampshire Ave. Upon the removal of
the existing buildings on the site, the Redeveloper’s environmental response action plan calls for
excavation and treatment of the most heavily contaminated soils (“hot spots”) with a stabilization
agent and then capping those soils on site with a new building and parking lots.
Once the contamination on the property has been properly addressed and the site prepared for
redevelopment, Real Estate Recycling proposes to construct a 78,780 square foot, multi-tenant
office/showroom/tech or “flex” building called the Highway 7 Corporate Center. The majority
of the building will be office and finished space. South of the new building, a 400-stall parking
lot will be constructed. This new “Purple Lot” will continue to be leased to Methodist Hospital
for its off-site employee parking needs until at least June 30, 2018. South of the Xcel Energy
substation, All Hours Towing will continue its sublease with Methodist for its’ privately operated
impound lot which is utilized by the City.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 2
The vacant property owned by the City and EDA at the southwest corner of Hwy 7 and Louisiana
Avenue will be developed as a remote parking lot for Methodist’s remaining parking needs
displaced by the new building on the former National Lead/Golden Auto property. This new
“Silver Lot” will accommodate 272 to 420 vehicles and will be landscaped around the perimeter.
The parking lot will serve a dual purpose as an environmental cap for the site due to the fact that
the soils underneath are impacted with contaminates. The cap will help prevent impacted
groundwater from leaching into the underlying aquifer.
Annual Economic Impact:
Currently, the five properties that constitute the subject redevelopment site area have a combined
assessed value of approximately $4.8 million. The value of the former National Lead/Golden
Auto parcel, in particular, is impacted by its designation as a contaminated property. Upon
redevelopment the site area would have an estimated market value of just over $9 million.
Currently, the five properties generate a total of $103,430 in property taxes. The projected
property tax on the site area after the proposed redevelopment has occurred would be
approximately $308,715. Thus, the redeveloped site would produce approximately $205,285
more in property taxes than what it currently generates.
The proposed multi-tenant, flex building is actively being marketed within the Twin Cities and
has received substantial interest from prospective tenants. No tenants to date have signed leases
given all the necessary approvals yet to be obtained. Until those occur it is difficult to precisely
determine the exact number of new employment positions to result from the new project. Given
the size and approximate finish level of the building, however, one could estimate that the project
could generate upwards of 350 employment positions depending on the actual tenants and their
required level of finished space.
Grant Funding and Redeveloper’s TIF Application:
The total cost of acquiring the five properties, relocating five businesses, removing the buildings,
remediating the site, constructing the Highway 7 Corporate Center building as well as building
the “Silver Parking Lot” is nearly $20 million. Of this amount, approximately $14 million is
related to land acquisition and environmental costs. To date, the EDA and Real Estate Recycling
successfully obtained $7,454,456 in grant funding for these costs from the Department of
Employment and Economic Development (DEED), Metropolitan Council, and Hennepin County.
Another $600,000 (or $200,000 a piece) was recently applied for on May 1. Presuming the EDA
and Redeveloper are successful in obtaining these funds the total amount of grant funds in the
project will top $8 million (see chart below). These grants will assist with the acquisition,
demolition and clean-up expenses associated with the former Superfund site. The Redeveloper
will be investing over $3.6 million in these costs as well which leaves a balance to be filled by
tax increment financing of $2.46 million.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 3
Proposed funding sources for the acquisition, demolition and cleanup of the
former National Lead/Golden Auto property
Funding Source Amount % of Project
DEED Contamination Clean-up Grant $2,104,456 14.9% of
project cost
Met Council TBRA Grant (can be used to
offset portion of local match)
$1,000,000 7.1% of project
cost
Hennepin County ERF Grant $4,950,000 35% of project
cost
Subtotal of grant funding $8,054,456 57%
Local (pass through provided by
Redeveloper)
$3,620,000 25.6% of
project cost
Local (Hwy 7 Corporate Center TIF Dist
Hwy 7 Hazardous Substance Subdist)
$2,460,000 17.4% of
project cost
TOTAL $14,134,456 100%
The above totals include the spring 2006 grant requests.
At the September 26, 2005 Study Session the EDA/Council reviewed Real Estate Recycling’s
preliminary TIF application along with preliminary business points for a future redevelopment
contract. Both were favorably received. On February 13, 2006 the EDA/Council received an
update report which noted the redeveloper’s plans to modify the proposed building thereby
increasing the value of the project. The report also noted the Redeveloper’s need for additional
TIF assistance. On April 24th, the EDA/Council reviewed the primary business points of the
proposed contract and the terms were favorably received.
Staff and the EDA’s financial consultant, Ehlers & Associates, have reviewed numerous budgets
and proformas from Real Estate Recycling and concurred that the proposed Highway 7 Corporate
Center project warrants the use of tax increment financing. More specifically, it was determined
that there is a financial gap in the most recent proforma of $2,460,000. The gap includes $2.1
million in environmental costs (specifically building demolition, soil remediation, relocation of
municipal utilities and site capping) and $360,000 in business relocation and reestablishment
costs. It is for these costs that Real Estate Recycling is seeking TIF assistance. The requested
level of assistance is considered reasonable given the complexity, quality, projected total value,
and other residual benefits derived from the proposed redevelopment.
The Redeveloper recently obtained commitments from the Department of Employment and
Economic Development (DEED) and Hennepin County for low interest (1%) Environment
Protection Agency (EPA) loans to cover the project’s financial gap. The Redeveloper intends to
repay these loans with the requested TIF assistance. The building portion of the proposed project
will be conventionally financed through a private lender.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 4
It is estimated the proposed project would generate the requested $2.4 million in approximately
20 years (on a net present value basis) using the 1% interest rate and no inflation. The proposed
project would be financed on a "pay-as-you -go" basis, which is the desired financing method
under the City's policy.
In order to generate the level of financial assistance required by the proposed project it is
recommended that the EDA create a new Redevelopment TIF district as well as a Hazardous
Substance Subdistrict. The TIF district will capture the increased value of the new development.
The TIF subdistrict will capture the “base values” of the current parcels. Thus the tax increment
from the new development as well as the base parcels will be returned to the redeveloper to
reimburse it for its qualified project costs. Approximately $83,940 of the City’s tax capacity will
be captured by the Hazardous Substance Subdistrict.
Only expenses incurred to fulfill the redeveloper’s Voluntary Response Action Plan (VRAP) may
be reimbursed with tax increment from a Hazardous Substance Subdistrict. In fact, the vast
majority of the tax increment ($2.1 million) will be used for environmental costs as noted above.
The remainder of the tax increment ($360,000) will be used for business relocation and
reestablishment costs which will be reimbursed with the tax increment from the Redevelopment
District.
Redevelopment Contract:
At the September 26, 2005, February 13, 2006, and April 24, 2006 study sessions, the
EDA/Council reviewed proposed project plans, levels of financial assistance and preliminary
business points for the proposed Highway 7 Corporate Center redevelopment. The business
points discussed at these meetings served as the basis for the attached Redevelopment Contract
with Highway 7 Business Center LLC. A summary of the Redevelopment Contract is attached.
The authorizing resolution (also attached) allows for modifications to the Contract that do not
alter the substance of the transaction without requiring the Contract be brought back to the EDA
for approval.
The Redeveloper will be required to substantially complete the entire project by December 31,
2007.
Highway 7 Business Center LLC has agreed to a "look back" provision in the redevelopment
contract with the EDA for this project. Such a provision will enable the EDA to review the
redeveloper’s annualized cumulative internal rate of return on the project in the event the project
is sold within 5 years. Should such a sale occur, the redeveloper would be required to pay the
EDA 50 percent of the “Participation Amount” it achieves upon closing. This is a key provision
as it ensures that if the project is sold within a relatively short period of time for more than its
originally projected value, the EDA shares economically in the success of the project.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 5
Property Conveyances:
In order to facilitate the proposed project, the Contract calls for the following conveyances of
property from the City to the EDA and from the EDA to the Redeveloper:
1. The City agrees to convey by quit claim deed the tax-forfeited land it owns located at
3639 Hampshire Avenue to the EDA. The EDA agrees, in turn, to convey this property
to Highway 7 Business Center LLC for $1 upon the satisfaction of certain conditions.
These include the following:
(a) the City has approved the final Redevelopment Plat;
(b) the EDA has received a quit claim deed for the Parcel from the City;
(c) the EDA has executed a termination of right of reverter in
accordance with Section 3.3(d).
(d) the EDA has approved Construction Plans for the Minimum
Improvements in accordance with Article IV, and Redeveloper’s financing
in accordance with Article VII;
(e) there is no uncured Event of Default under the Contract;
(f) the Redeveloper has delivered the Easement Agreement in
accordance with Section 3.5 of the Contract.
(g) the EDA and Redeveloper have executed the EDA Parking Lease, in
accordance with Section 3.2, and Redeveloper and Methodist Hospital have
executed the Redeveloper Parking Lease, in accordance with Section 3.1.
After the Redeveloper meets the above conditions, the subject parcel will be conveyed for
implementation of the proposed Highway 7 Corporate Center project..
2. The City agrees to convey by quit claim deed its interest in 7250 State Highway 7 (legally
described as Lot 1, Block 1, Louisiana Alignment) to the EDA. The EDA, in turn, will
convey by quit claim deed Lot 1, Block 2, Outlots A, B and C associated with the
Louisiana Alignment Plat back to the City.
3. The EDA will retain fee ownership of the newly combined property at the southwest
corner of Highway 7 and Louisiana (legally described as Lot 1, Block 1, Louisiana
Alignment).and lease this property to the Redeveloper for $1. The lease is listed as
Schedule B in the Contract.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 6
4. The Redeveloper will then sublet this “Parking Property” to Methodist Hospital for use as
a remote employee parking lot. Under this sublease Methodist may be responsible for the
maintenance of the Parking Property but under the Redevelopment Contract the
Redeveloper is ultimately responsible for the maintenance of the property. Methodist will
utilize the lot until the earliest of: (a) a grade separated interchange is constructed at
Highway 7 and Louisiana Avenue; (b) a new parking ramp is constructed on the hospital
campus; (c) the date on which the sublease with Methodist terminates; or (d) June 30,
2018.
5. The Redeveloper agrees to execute and deliver to the City an easement on the former
National Lead/Golden property for purposes of accommodating a future potential railroad
interconnection should it be necessary.
Public Benefits of the Proposed Redevelopment Project:
There are numerous benefits to the City for pursuing the proposed redevelopment project which
can be summarized as follows:
1. It fulfills the redevelopment objectives outlined within the City’s Comprehensive Plan.
2. The project’s proposed response action plan treats the most heavily contaminated soils,
and provides a better remedy for the former Superfund site than what currently exists.
3. It leverages considerable funding (over $8 million) from other public agencies thus
spreading the responsibility of the cost of the remediation and redevelopment beyond
the City or Redeveloper by themselves.
4. Since the subject site is listed as the first priority within Hennepin County’s state
authorized Environmental Response Fund (ERF) program, the proposed redevelopment
meets the County’s desire to demonstrate the ERF program’s effectiveness as it seeks
reauthorization of the program from the state in 2007.
5. It creates nearly 79,000 square feet of much needed, highly marketable, modern “flex”
space within the City.
6. It will generate approximately $128,000 more in property taxes than what it currently
produces as a contaminated property (an increase of 161%).
7. It will result in 300 to 350 jobs depending on the actual tenants occupying the building.
8. It will improve the tenant mix utilizing the property.
9. It will significantly enhance the appearance of this highly visible property along
Highway 7.
10. It will improve the safety around the adjacent electrical substation by improving the
visibility of the substation.
11. It will not exacerbate traffic congestion at Highway 7 and Louisiana Avenue as much as
a big box retailer which would have been allowed under the previous zoning.
12. It accommodates Methodist Hospital’s interim need for employee parking.
13. It accommodates the police department’s desire to retain an impound lot within the
City.
14. Retaining the impound lot in the City will maintain convenient access to the lot for
residents.
15. It allows for a future rail interconnection as required by state statute (both north and
south), should it be necessary.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 7
16. The proposed Silver Parking Lot on the southwest corner of Highway 7 and Louisiana
Avenue will also serve as a cap that will help prevent impacted groundwater from
leaching into the underlying aquifer.
17. The Silver Parking Lot provides a beneficial, interim use (parking for Methodist
Hospital employees) for the vacant City property until a grade separated interchange is
built at Highway 7 and Louisiana Ave.
18. The new parking lots will be safer for Methodist Hospital employees and their vehicles.
Clearly, few public/private partnerships fulfill as many community objectives as the Highway 7
Corporate Center redevelopment project.
Business Subsidy:
Neither the grants nor the tax increment assistance constitute a business subsidy because this
project meets the “redevelopment of polluted property” exception and the “hazardous substance
subdistrict” exception under the Business Subsidy Act. The Redeveloper will, however, be
required to file annual progress reports with the EDA.
Summary:
The proposed Highway 7 Corporate Center project fulfills the redevelopment objectives outlined
within the City’s Comprehensive Plan. It also conforms to the criteria outlined in the City’s TIF
Policy. The purpose for providing public financial assistance to the Highway 7 Corporate Center
project is to remediate substantial contamination, remove blighted buildings, assist the City’s
largest employer, expand the tax base, and create several hundred employment opportunities all
of which is desirable for the economic vitality of the City.
Recommendation:
The EDA’s legal counsel, in consultation with staff, prepared the attached resolution approving
the Contract Private for Redevelopment including Property Conveyance and Lease Agreement
with Highway 7 Business Center LLC and recommends its approval.
Attachments: Redevelopment Contract Summary
Authorizing Resolution
Redevelopment Contract
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Kevin Locke, Community Development Director
Approved by: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 8
Summary of Redevelopment Contract
Between the SLP EDA, the City, and
Highway 7 Business Center LLC
The following is a summary of the Redevelopment Contract between the EDA and Highway 7
Business Center LLC (“Redeveloper”). It should be noted that these points are still provisional
as the Contract is currently being negotiated. It is, however, relatively close to the final version.
Article I: Defines the specialized terms used in the Agreement. Key geographic areas include:
“Adjacent Parking Property” is the property adjacent to the “Parking Property,” which is
owned by a billboard company and will be part of the Methodist Hospital remote lot.
“Parking Property” is the property at Highway 7 and Louisiana Avenue, to be replatted,
owned by the EDA, and leased to Redeveloper for sublease to Methodist Hospital for remote
parking.
“Redevelopment Property” consists of the 5 parcels that make up the TIF District and
Subdistrict;
“Subdistrict” is the Hazardous Substance Subdistrict that includes the same parcels as the
TIF District. (The Subdistrict allows the EDA to capture the existing base value and use the
taxes from that value to pay for environmental remediation costs.)
“TIF District” is the redevelopment tax increment financing district made up of the
Redevelopment Property.
Article II: Contains standard warranties and representations.
Article III: Discusses the details of land acquisition, conveyance, and environmental mitigation:
• The Redeveloper has acquired four of the five parcels necessary for redevelopment;
proceeds of the County ERF Grant ($4,750,000) were applied toward the purchase of
Parcel 5 (the Golden Auto Site).
• Parcel 1 is a small tax-forfeited parcel owned by the City. The City will convey to the
EDA by quit claim deed, and the EDA will convey to the Redeveloper for $1.00.
• The Redeveloper will prepare and record the plat of the Redevelopment Property.
• The Redeveloper will enter into a parking lease agreement with Methodist Hospital to
lease the southern portion of the Redevelopment Property to the Hospital for use as a
remote parking lot, and Methodist Hospital will sublease a portion of this area to All
Hours Towing, Inc. for use as a City impound lot.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
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• The Parking Area is part of the recently-approved plat called Louisiana Alignment.
Portions of the plat are currently owned by the City and portions by the EDA. The
City will convey all of its portion to the EDA by quit claim deed. The EDA will
retain the Parking Property and will convey all other lots and outlots back to the City.
• The EDA will lease the Parking Property to the Redeveloper for $1, and the
Redeveloper will use its best efforts to enter into a lease for the Adjacent Parking
Property with its owner.
• The Redeveloper will sublet the Parking Property and, if possible, the Adjacent
Parking Property to Methodist Hospital for remote parking (in addition to the remote
parking on the Redevelopment Property described above).
• The Redeveloper will execute and deliver a Railroad Easement Agreement, granting
to the City an easement for railroad interconnection purposes on a portion of the
Redevelopment Property.
• The Redeveloper has obtained approval of a Voluntary Response Action Plan
(VRAP) for the Redevelopment Property, and is in the process of obtaining approval
of a VRAP for the Parking Property and the Adjacent Parking Property. Redeveloper
must carry out all the removal and remediation actions required under those VRAPs.
• The EDA will finance a portion of the remediation costs by disbursing proceeds of a
DEED grant ($1,904,456) and a Met Council grant ($800,000).
• The EDA will finance remediation costs in excess of grant proceeds through the
issuance of two tax increment revenue notes in the combined principle amount of
$2,460,000:
o Series A, secured by increment available from the both the TIF District
and the Subdistrict, and issued to reimburse VRAP costs within the TIF
District/Subdistrict boundaries, and
o Series B, secured by increment from the TIF District, and issued to
reimburse relocation costs incurred by Redeveloper (which are not
eligible for financing from the Subdistrict).
• Neither the grants nor the tax increment assistance constitutes a business subsidy
because this project meets the “redevelopment of polluted property” exception and the
“hazardous substance subdistrict” exception under the Business Subsidy Act.
• The Redeveloper will pay all EDA and City out of pocket administrative costs.
• Should the Redeveloper sell the project within 5 years after completion, the
Redeveloper would be required to pay the EDA 50 percent of the “Participation
Amount” it achieves upon closing.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
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Article IV: Provides details of construction:
• The Redeveloper will construct the Minimum Improvements and Parking
Improvements and maintain them in good condition until maturity of the Notes.
• The EDA will approve all construction plans.
• Material changes to construction plans must be approved by the EDA.
• Construction will be substantially completed by December 31, 2007.
• The Redeveloper will submit written reports by March 1 of each year, beginning in
2007 and continuing until four years after issuance of the Certificate of Completion
for the Minimum Improvements. The reports must comply with the Grant Agreement
reporting requirements.
Article V: Provides typical insurance requirements.
Article VI: Includes tax convents:
• Redeveloper has contractual (as well as statutory) obligation to pay property taxes.
• Redeveloper must enter into an Assessment Agreement setting a minimum market
value for the Minimum Improvements.
Article VII: Provides details of other financing requirements:
• The Redeveloper must submit evidence of adequate funding commitments to pay the
cost of developing the Minimum Improvements before the EDA will convey tax-
forfeited Parcel 1 or disburse grant proceeds.
• The EDA will subordinate its rights under the Agreement as needed to permit
Redeveloper to obtain financing, but EDA will not subordinate the Assessment
Agreement.
Article VIII: Governs assignment and indemnification matters:
• Before completion of the Minimum Improvements and Parking Improvements, the
Redeveloper will not transfer or assign the property except with prior written approval
from the EDA.
• The Redeveloper indemnifies the EDA and City against any loss or damage arising
from any defect in the Minimum Improvements and any claim arising from the
Agreement.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 11
Article IX: Events of default and remedies:
• If the Redeveloper defaults under the Agreement, the EDA may (among other things)
withhold tax increment payments under any Note, or may terminate the Notes and the
Agreement.
• After conveyance of Parcel 1, the EDA will have the right to re-enter and take
possession of Parcel 1 if the Redeveloper fails to meet certain conditions. This right
of reversion terminates when the Minimum Improvements are completed.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 12
CITY OF ST. LOUIS PARK
RESOLUTION NO. 06-082
RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH
THE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF ST.
LOUIS PARK, AND HIGHWAY 7 BUSINESS CENTER LLC, AND AUTHORIZING
CONVEYANCE OF CITY PROPERTY TO THE
ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
BE IT RESOLVED by the City Council ("Council") of the City of St. Louis Park as
follows:
Section 1. Recitals.
1.01. The City of St. Louis Park (the “City”) and the St. Louis Park Economic
Development Authority (the “Authority”) have heretofore approved the establishment of the
Highway 7 Corporate Center Tax Increment Financing District (the “TIF District”) within
Redevelopment Project No. 1 (the “Project”) and have adopted a tax increment financing plan for
the purpose of financing certain improvements within the Project. The City and Authority have
further approved the establishment of a Hazardous Substance Subdistrict (the “Subdistrict”) within
the TIF District, all pursuant to Minnesota Statutes, Sections 469.001 to 469.047, Sections 469.090
to 469.1082, and Sections 469.174 to 469.1799.
1.02. To facilitate redevelopment of certain property in the TIF District, the City proposes
to enter into a Contract for Private Redevelopment (the “Contract”) between the Authority, the City,
and Highway 7 Business Center LLC (the “Redeveloper”).
1.03. Pursuant to the Contract, the City will convey certain tax-forfeited property
described in the Agreement as Parcel 1, legally described as Northerly 25 feet of Lot 3 Auditor’s
Subdivision No. 348 (the “Tax-Forfeited Property”) to the Authority, and the Authority will convey
the Tax-Forfeited Property to Redeveloper.
1.04. Pursuant to the Contract, the City will also convey its interest in certain property
described as Lot 1, Block 1, Louisiana Alignment (the “Parking Property”) to the Authority, as
described on the plat attached as Schedule A (the “Plat”). The City understands that the Authority
will convey its interest in Lot 1, Block 2 and Outlots A, B, and C of the Plat to the City, and that the
Authority will lease the Parking Property to the Redeveloper for sublease to Methodist Hospital for
use as a remote parking lot.
1.05. The City is authorized to convey real property pursuant to Minnesota Statutes
Section 465.035 to any governmental subdivision for a nominal consideration, or pursuant to
Minnesota Statutes Section 471.64 to any other political subdivision of the State.
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 13
1.06. The City finds and determines that conveyance of the Tax-Forfeited Property to the
Authority for reconveyance to the Redeveloper, and that conveyance of its interest in the Parking
Property to the Authority for lease to the Redeveloper, are for a public use within the meaning of
Minnesota law and are in the public interest because they will further the objectives of the Project.
Section 2. Contract Approved.
2.01. The Council hereby approves the Contract as presented to the Council, including
conveyance of the Tax-Forfeited Property to the Authority for reconveyance to Redeveloper, and
conveyance of its interest in the Parking Property to Authority for lease to Redeveloper, and
authorizes the Mayor and City Manager to execute such Contract in substantially the form on file
with the City, subject to modifications that do not alter the substance of the transaction and are
approved by such officials, provided that execution of the Contract by such officials is conclusive
evidence of their approval.
2.02. City staff and officials are authorized and directed to take any and all additional
steps and actions necessary or convenient in order to accomplish the intent of this Resolution,
including without limitation execution of any documents to which the City is a party referenced in
or attached to the Contract, and any deed or other document necessary to convey any portion of the
Redevelopment Property or Parking Property to the Authority, all as described in the Contract.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8a - Highway 7 Redevelopment Contract
Page 14
SCHEDULE A
PLAT
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 1
8b. Request by Real Estate Recycling (CPE Exchange 26084 LLC) to approve
Preliminary and Final Plat of RER ADDITION and a Conditional Use Permit for
excavation/fill of over 400 cubic yards of soil.
Case No. 06-31-S and 06-32-CUP
Recommended
Action:
Motion to approve Preliminary and Final Plat of RER Addition.
Motion to approve a Conditional Use Permit to allow for
excavation/fill of more than 400 cubic yards of soil.
DESCRIPTION OF REQUEST:
Real Estate Recycling proposes to replat several lots into two new lots in preparation for
redevelopment for a 79,000 square foot office/showroom building. Real Estate Recycling
proposes to do significant soil remediation on the property due to contaminated soils in
preparation for redevelopment of this former National Lead Industries property. The work will
displace more than 400 cubic yards of soil, which requires conditional use permit approval.
The site development plans are provided. These are supporting documents for the preliminary
plat and land reclamation permit applications. The Planning Commission will review
applications for a conditional use permit to allow more than 50% office in the IP District, a
landscaping variance and a front yard building setback variance in June.
BACKGROUND:
Zoning:
IP Industrial Park (pending).
First reading to rezone from C2 to IP
was approved by City Council on
May 1, 2006. Second reading is on
the consent agenda for May 15, 2006.
Comprehensive Plan Designation:
Industrial (pending).
City Council approved an amendment
on May 1, 2006 and staff submitted it
to Metropolitan Council.
Parcel Size:
11.767 acres
Current Land Uses:
Industrial and commercial buildings,
parking lot, impound lot, vacant lot
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 2
PRELIMINARY PLAT ANALYSIS:
The proposed plat combines several lots into two lots. The plat also includes a segment of
Hampshire Avenue located south of Lake Street (street vacation is pending).
Lot 1, Block 1 would be 6.963 acres in size and would be used for a new 79,000 square foot
office/showroom building. Lot 2, Block 1 would be 4.803 acres and would continue to be used
as Methodist Hospital’s remote parking lot. All Hours Towing also subleases a portion of this
lot from Methodist Hospital.
The attached preliminary plat drawings do not indicate the drainage and utility easements
required by City Code or those necessary for the proposed drainage and utility plans. The
applicant must submit revised preliminary and final plat drawings that properly indicate these
easements.
The proposed construction plans also do not indicate provision of sidewalks. The City Code
requires sidewalk installation for new subdivisions. Sidewalk installation along Monitor Street
and Lake Street is a condition of approval. If the applicant is unable to provide sidewalks a
variance will be required from this subdivision standard. This variance application would be
processed at a later date with the next round of applications.
The applicant will provide a railroad right-of-way easement over Lot 2, Block 1, RER
ADDITION to the City of St. Louis Park for a potential rail line that was identified in a 1999
Railroad Study. The easement will be granted by separate document and not shown on the plat.
The easement will be sufficient for creating rail connections either to the north or south.
The Redevelopment Contract between the City and the developer will include a contract to
provide the drainage and utility easements, install public utilities, and provide the railroad
easement. A separate development agreement related to the subdivision application is not
necessary.
LAND RECLAMATION CUP ANALYSIS:
The Minnesota Pollution Control Agency approved a Voluntary Response Action Plan (RAP) for
the site. The proposed soil remediation, along with future development of the industrial building
and parking lot, will implement the approved plan.
The MPCA approved plan requires that the existing site lead -impacted soils be stabilized and
placed beneath permanent pavement and/or building floors. The stabilization will require import
of approximately 1000 cubic yards of material such as fly ash. The soils will be mixed with the
imported material in the ground. The stabilized soils and other lead impacted soils on the site
will be excavated and moved as necessary to place beneath proposed asphalt pavement and the
proposed building floor. If temporary stockpiling of the soils is necessary, the soils will be
covered with plastic sheeting.
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 3
The Methodist parking area (Lot 2, Block 1) grades will be lowered from the existing grades by
up to 6 feet. The grades of Lot 1, Block 1 for the proposed building will be raised up to
approximately 7 feet. Wetland sediments, currently buried beneath Lot 1, Block 1 will be
excavated as part of the soil correction and will be exported for disposal off of the site.
Approximately 12,000 cubic yards of peat are estimated for excavation and export. Additionally,
approximately 20,000 cubic yards of engineered backfill (sand) will be imported to the site to
reach final grades. Approximately 9000 cubic yards of Class V gravel for building floor and
pavement sub-base will also be imported for the development.
The earthwork portion of the project will be performed using standard construction equipment
(i.e. excavators, loaders, bulldozers, trucks and compactors). Health and safety protocols, dust
controls practices, and erosion control practices are described in the RAP. The applicant will
obtain erosion control permits from the City and Watershed District. The applicant will also
obtain a storm water general permit for construction from the MPCA.
Transportation vehicles carrying imported soil will travel on Minnesota Highway 7, Louisiana
Avenue, Lake Street and potentially Monitor Street. Transportation vehicles will enter the site
from Lake Street.
The work on this project will be staged with work on another site. The applicant will also be
conducting soil remediation work and build a parking lot (Silver Lot) on the southwest corner of
Highway 7 and Louisiana Avenue. Part of the Methodist Hospital parking from this site will
relocate to the Silver Lot in late July. The rest of the hospital employee parking will continue on
this site throughout the soil remediation and building construction.
Soil correction will begin on the eastern-most side of Lot 1, Block 1 where the existing buildings
will be demolished, a new sanitary sewer line will be constructed, utilities beneath Hampshire
Avenue will be vacated and the existing sand fill soils will be corrected for the proposed building
pad and parking areas. Lot 2, Block 1 soil correction will then be completed and parking during
that work will occur only on the north side (Lot 1). Once the soil work is complete on Lot 2, a
new parking lot will be installed (Purple Lot). The Methodist Hospital emp loyee parking will
then move to the Purple Lot, so soil remediation work can commence on the north side of the site
(future site of the Highway 7 Corporate Center building).
How will the proposed excavation affect the surrounding properties?
The soil correction work will require construction equipment at the site and except for the export
of the peat and import of the stabilization material and engineered fill, no soils will be imported
or exported. The soil excavation will require on-site backhoes, front-end loaders, dozers,
compacters, dump-trucks and watering trucks. The concrete from existing buildings and asphalt
from existing pavements will be recycled on-site utilizing an asphalt recycling machine and a
temporary concrete crushing operation. The peat will require up to approximately 1000 truck-
loads over approximately a two-month period for export. These trucks will haul from the site
only during city allowed work hours. The soil import will require up to approximately 1600
truck loads over approximately a 1-month construction period, also hauling only during city
allowed work hours. The trucks will travel on Highway 7, Louisiana Avenue, West Lake Street
and possibly Monitor Street.
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 4
The abutting properties include the railroad, electric substation, Highway 7 and Sam’s Club. On
the north side of Lake Street is Erv’s Small Engine Repair and a City lift station. Sam’s Club is
also under construction this summer. There will be relatively little impact, except for the
construction noise from the project(s).
All work will occur between the hours of 7:00 a.m. and 10:00 p.m. Monday through Friday and
the hours of 9:00 a.m. and 10:00 p.m. on Saturdays and Sundays, as required by City ordinances.
What measures will be taken to ensure erosion and sedimentation control?
Site chain-link security fences will be constructed around the entire site and will be modified as
the phasing of the work requires. The fence will have fabric covering for both visual and dust
control use. Access to the site will be strictly controlled under a site-specific health and safety
plan. Erosion control fencing and storm water protection best practices will be implemented in
accordance with the approved erosion control plans from the City, Watershed District and the
MPCA. The soil correction practices are being overseen by the MPCA and are prescribed by a
Soil Management Plan (SMP) specifically developed due to the impacts to the site soils by lead.
This will require that the lead impacted soils be closely managed to prevent impacts to storm
water and to limit fugitive dust from the site. Monitoring of the storm water quality and a
temporary dust monitoring sampling network are a component of the SMP. All work is being
designed and will be managed by an on-site engineer from Geomatrix on a full-time basis. In
general, a majority of the soil will be excavated, stabilized as required and directly placed back
to the ground and covered Some stockpiling will be required for the lead-stabilization process.
Any soil stockpile will be placed on and covered with appropriate plastic sheeting and bermed to
prevent wind erosion and contaminant runoff. The applicant has submitted an Erosion Control
Permit application to Public Works for review and approval.
What traffic impacts are associated with the proposed excavation?
The project is effectively on Highway 7, so the impact on St. Louis Park motorists will be
negligible, except immediately around the site. This project will be happening at the same time
that Sam’s Club is building their new building and reconstructing Monitor Street. The applicant
is working with Sam’s Club to have Monitor Street rebuilt to ensure minimal disruption of public
use of Monitor Street.
The applicant will have to carefully manage construction traffic and parking on the site. The
applicant, City of St. Louis Park, Methodist Hospital and Sam’s Club will all coordinate closely
with one another to manage traffic in this area.
Staff reviewed the proposal and found that it meets the general zoning requir ements. City Code
Section 36-79, “Grading; Filling and Land Reclamation; Excavation and Mining” requires a
CUP to prevent any adverse impacts to the health, safety or welfare of the surrounding
community.
PROCESS:
The City Council approved the first reading of the Hampshire Avenue South street vacation, and
the second reading is on the May 15, 2006 consent agenda. The applicant must secure a
Minnehaha Creek Watershed District permit and an erosion control permit before commencing
the land reclamation project on this site.
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 5
The applicant will apply for a conditional use permit and two variances for the construction of
the office/showroom building and parking lot. A public hearing will likely occur in June.
RECOMMENDATIONS:
Two separate actions are needed on this item, a resolution approving the Conditional Use Permit
for excavation and filling more than 400 cubic yards and a resolution approving the Preliminary
and Final Plat. The Planning Commission and staff recommendations are as follows:
A. Motion to adopt a Resolution approving the Conditional Use Permit for excavation and
filling more than 400 cubic yards, subject to the conditions included in the Resolution.
B. Motion to adopt a Resolution approving the Preliminary and Final Plat for RER Addition,
subject to the conditions included in the Resolution.
ATTACHMENTS: Draft Resolution Approving the Preliminary and Final Plat
Draft Resolution Approving the Conditional Use Permit
Sketch of Proposed Railroad Easement Dedication (supplement)
Preliminary Plat (supplement)
Final Plat (supplement)
Proposed Site Development Plans (supplement)
PREPARED BY: Sean Walther, Senior Planner
REVIEWED BY: Meg McMonigal, Planning and Zoning Supervisor
Kevin Locke, Community Development Director
APPROVED BY: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 6
RESOLUTION NO. 06-083
RESOLUTION GIVING APPROVAL FOR PRELIMINARY AND FINAL PLAT OF
RER ADDITION
BE IT RESOLVED BY the City Council of St. Louis Park:
Findings
1. Real Estate Recycling, owner and subdivider of the land proposed to be platted as
RER Addition has submitted an application for approval of preliminary and final plat of said
subdivision in the manner required for platting of land under the St. Louis Park Ordinance Code,
and all proceedings have been duly had thereunder.
2. The proposed preliminary and final plat has been found to be in all respects
consistent with the City Plan and the regulations and requirements of the laws of the State of
Minnesota and the ordinances of the City of St. Louis Park.
3. The proposed preliminary and final plat is situated upon the following described
lands in Hennepin County, Minnesota, to-wit:
That portion of Hampshire Avenue platted in "Rearrangement of St. Louis Park"
as Central Avenue, which lies Southerly of the Easterly extension of the Northerly
line of Lot 4, Auditor's Subdivision No. 348, Hennepin County, Minnesota, also
known as the southerly right of way line of Lake Street, and which lies northerly
of the westerly extension of the Northerly line of Lot 3, of said Auditor's
Subdivision No. 348, to the westerly line of said vacated street and that part of the
Northeasterly one-half of said vacated street which lies northerly of a line drawn
at right angles to the centerline of said vacated street, said line intersects the
Southwest corner of the Northwesterly 25 feet of Lot 3, Auditor's Subdivision No.
348.
And
Par 1: Lot 4 except that part lying Southeasterly of a line running from a point in
the Northeasterly line of said Lot distant 367.24 feet Southeasterly, measured
along said Northeasterly line from the most Northerly corner thereof to a point in
the Southwesterly line of said Lot; distant 535.8 feet Southeasterly measured
along Southwesterly line from the most Westerly corner thereof, Auditor’s
subdivision Number 348, Hennepin County, Minnesota
Par 2: Lots 1 and 2; Lot 3 except the Northerly 25 feet thereof and that part of
Lot 4 lying Southeasterly of a line running from a point in the Northeasterly line
of said Lot, distant 367.24 feet Southeasterly, measured along said Northeasterly
line from the most Northerly corner thereof to a point in the Southwesterly line of
said Lot, distant 535.8 feet Southeasterly measured along said Southwesterly line
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 7
from the most Westerly corner thereof, Auditor’s Subdivision Number 348,
Hennepin County, Minnesota
Par 3: Lot 5, Auditor’s Subdivision No. 348, Hennepin County, Minnesota
Subject to rights of The Park Central Little League and others, if any, to the use of
that portion of the above described premises being used as a grandstand and
baseball diamond as shown in deed Dec. 1344270; (as to land in Par 2)
Subject to the right of the State of Minnesota to construct and maintain temporary
snow fences upon those portions of said lands adjacent to State Highway No. 7;
(as to land in Pars 1, 2 and 3)
Torrens Property
And
Lots 43, 44 and 46, Block 37, including adjacent half of alley vacated and Lots 47
and 48, Block 37, Rearrangement of St. Louis Park.
Also
The Southwesterly 17.5 feet of Lots 12,13, 14, 15, 16 and 17, and Southwesterly
27.5 feet of Lots 18, 19 and 20, Block 37, Rearrangement of St. Louis Park;
Together with the Northeasterly half of vacated alley adjoining said Lots and
lying between the extension Southwesterly of the Southeasterly line of said Lot 20
and the Westerly extension of the Northerly line of said Lot 12, except such
portion as taken by the State of Minnesota for Trunk Highway No. 7, all lying and
being in Hennepin County, Minnesota.
Abstract Property
And
Lots 32 through 42 inclusive, Block 37, “Rearrangement of St. Louis Park,”
together with the Westerly one-half of the alley in Block 37 vacated by
Resolution filed in Book 558 of Misc., Page 23, and in Book 607 of Misc., Page
110.
Hennepin County, Minnesota
Abstract Property
And
Lot 5, Auditor’s Subdivision No. 348
Hennepin County, Minnesota
And
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 8
That part of the Southwest half of vacated Hampshire Avenue, platted in
“Rearrangement of St. Louis Park” as Central Avenue, which lies Southerly of the
Westerly extension of the Northerly line of Lot 3, Auditor’s Subdivision No. 348
and Northerly of Lot 2, Block 51, “Rearrangement of St. Louis Park,” and that
part of the Northeasterly half of said vacated street which lies Southerly of a line
drawn at right angles to the centerline of said vacated street, which line intersects
at the Southwest corner of the Northwesterly 25 feet of Lot 3, Auditor’s
Subdivision No. 348, and Northerly of Lot 2, Block 51 “Rearrangement of St.
Louis Park.”
Hennepin County, Minnesota
Conclusion
1. The proposed preliminary and final plat of RER Addition is hereby approved and
accepted by the City as being in accord and conformity with all ordinances, City plans and
regulations of the City of St. Louis Park and the laws of the State of Minnesota, provid ed,
however, that this approval is made subject to the opinion of the City Attorney and Certification
by the City Clerk subject to the following conditions:
a. The applicant shall submit revised preliminary and final plat drawings that properly
indicate drainage and utility easements include 10-foot wide easements around the
perimeter of the lots and over proposed utility mains for City review and approval.
b. The applicant shall construct sidewalk along Monitor Street and West Lake Street.
c. The applicant shall submit a financial surety to the City in the form of a cash escrow
or letter of credit in the amount of $1000 to insure that a Mylar copy of the final plat
is provided.
d. Applicant shall reimburse City attorney’s fees in drafting/reviewing such documents
as required in the plat approval.
e. The landowner shall pay an administrative fine $750 per violation of any condition of
this approval.
2. The City Clerk is hereby directed to supply two certified copies of this Resolution
to the above-named owner and subdivider, who is the applicant herein.
3. The Mayor and City Manager are hereby authorized to execute all contracts
required herein, and the City Clerk is hereby directed to execute the certificate of approval on
behalf of the City Council upon the said plat when all of the conditions set forth in Paragraph
No. 1 above and the St. Louis Park Ordinance Code have been fulfilled.
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 9
4. Such execution of the certificate upon said plat by the City Clerk, as required
under Section 26-123(1)j of the St. Louis Park Ordinance Code, shall be conclusive showing of
proper compliance therewith by the subdivider and City officials charged with duties above
described and shall entitle such plat to be placed on record forthwith without further formality.
The City Clerk is instructed to record certified copies of this resolution in the Office of the
Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 10
RESOLUTION NO. 06-084
A RESOLUTION GRANTING CONDITIONAL USE PERMIT UNDER
SECTION 36-79 OF THE ST. LOUIS PARK ORDINANCE CODE
RELATING TO ZONING TO PERMIT THE EXCAVATION/FILLING OF
MORE THAN 400 CUBIC YARDS OF SOIL FOR PROPERTY ZONED C2
GENERAL COMMERCIAL DISTRICT AND IP INDUSTRIAL PARK
DISTRICT LOCATED AT 7003 LAKE STREET, 6651 HIGHWAY 7, 3625
AND 3629 HAMPSHIRE AVENUE SOUTH, AND VACATED
HAMPSHIRE AVENUE
BE IT RESOLVED BY the City Council of the City of St. Louis Park:
Findings
1. Real Estate Recycling has made application to the City Council for a Conditional Use
Permit under Section 36-79 of the St. Louis Park Ordinance Code for the purpose of
excavation/filling more than 400 cubic yards of soil within C2 General Commercial and IP
Industrial Park Districts located at 7003 Lake Street, 6651 Highway 7, and 3625 and 3629
Hampshire Avenue South for the legal description as follows, to-wit:
That portion of Hampshire Avenue platted in "Rearrangement of St. Louis Park"
as Central Avenue, which lies Southerly of the Easterly extension of the Northerly
line of Lot 4, Auditor's Subdivision No. 348, Hennepin County, Minnesota, also
known as the southerly right of way line of Lake St reet, and which lies northerly
of the westerly extension of the Northerly line of Lot 3, of said Auditor's
Subdivision No. 348, to the westerly line of said vacated street and that part of the
Northeasterly one-half of said vacated street which lies northerly of a line drawn
at right angles to the centerline of said vacated street, said line intersects the
Southwest corner of the Northwesterly 25 feet of Lot 3, Auditor's Subdivision No.
348.
And
Par 1: Lot 4 except that part lying Southeasterly of a line running from a point in
the Northeasterly line of said Lot distant 367.24 feet Southeasterly, measured
along said Northeasterly line from the most Northerly corner thereof to a point in
the Southwesterly line of said Lot; distant 535.8 feet Southeasterly measured
along Southwesterly line from the most Westerly corner thereof, Auditor’s
subdivision Number 348, Hennepin County, Minnesota
Par 2: Lots 1 and 2; Lot 3 except the Northerly 25 feet thereof and that part of
Lot 4 lying Southeasterly of a line running from a point in the Northeasterly line
of said Lot, distant 367.24 feet Southeasterly, measured along said Northeasterly
line from the most Northerly corner thereof to a point in the Southwesterly line of
said Lot, distant 535.8 feet Southeasterly measured along said Southwesterly line
from the most Westerly corner thereof, Auditor’s Subdivision Number 348,
Hennepin County, Minnesota
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 11
Par 3: Lot 5, Auditor’s Subdivision No. 348, Hennepin County, Minnesota
Subject to rights of The Park Central Little League and others, if any, to the use of that
portion of the above described premises being used as a grandstand and baseball diamond
as shown in deed Dec. 1344270; (as to land in Par 2)
Subject to the right of the State of Minnesota to construct and maintain temporary snow
fences upon those portions of said lands adjacent to State Highway No. 7; (as to land in
Pars 1, 2 and 3)
Torrens Property
And
Lots 43, 44 and 46, Block 37, including adjacent half of alley vacated and Lots 47
and 48, Block 37, Rearrangement of St. Louis Park.
Also
The Southwesterly 17.5 feet of Lots 12,13, 14, 15, 16 and 17, and Southwesterly
27.5 feet of Lots 18, 19 and 20, Block 37, Rearrangement of St. Louis Park;
Together with the Northeasterly half of vacated alley adjoining said Lots and
lying between the extension Southwesterly of the Southeasterly line of said Lot 20
and the Westerly extension of the Northerly line of said Lot 12, except such
portion as taken by the State of Minnesota for Trunk Highway No. 7, all lying an d
being in Hennepin County, Minnesota.
Abstract Property
And
Lots 32 through 42 inclusive, Block 37, “Rearrangement of St. Louis Park,”
together with the Westerly one-half of the alley in Block 37 vacated by
Resolution filed in Book 558 of Misc., Page 23, and in Book 607 of Misc., Page
110.
Hennepin County, Minnesota
Abstract Property
And
Lot 5, Auditor’s Subdivision No. 348
Hennepin County, Minnesota
And
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 12
That part of the Southwest half of vacated Hampshire Avenue, platted in
“Rearrangement of St. Louis Park” as Central Avenue, which lies Southerly of the
Westerly extension of the Northerly line of Lot 3, Auditor’s Subdivision No. 348
and Northerly of Lot 2, Block 51, “Rearrangement of St. Louis Park,” and that
part of the Northeasterly half of said vacated street which lies Southerly of a line
drawn at right angles to the centerline of said vacated street, which line intersects
at the Southwest corner of the Northwesterly 25 feet of Lot 3, Auditor’s
Subdivision No. 348, and Northerly of Lot 2, Block 51 “Rearrangement of St.
Louis Park.”
Hennepin County, Minnesota
2. The City Council has considered the advice and recommendation of the Planning
Commission (Case No. 06-32-CUP) and the effect of the proposed excavation and filling on the
health, safety and welfare of the occupants of the surrounding lands, existing and anticipated
traffic conditions, the effect on values of properties in the surrounding area, the effect of the use
on the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance.
3. The Council has determined that the excavation and filling will not be detrimental to the
health, safety, or general welfare of the community nor will it cause serious traffic congestion
nor hazards, nor will it seriously depreciate surrounding property values, and the proposed
excavation and fill is in harmony with the general purpose and intent of the Zoning Ordinance
and the Comprehensive Plan.
4. The contents of Planning Case File 06-32-CUP are hereby entered into and made part of
the public hearing record and the record of decision for this case.
Conclusion
The Conditional Use Permit to permit excavation and filling at the location described is granted
based on the findings set forth above and subject to the following conditions:
1. The site shall be developed, used and maintained in accordance with Exhibits
incorporated by reference herein.
2. Fire lanes shall be indicated on the plan as required by the Fire Marshall.
3. Prior to starting any site work, the following conditions shall be met:
a. Obtain all necessary permits from the City (erosion control permit),
Minnehaha Creek Watershed Management Commission, and other agencies.
Copies of permits from the watershed and other agencies shall be provided to
the City.
b. Install erosion control measures on any portion of the site disturbed by the
project.
c. Submit a performance guarantee to the City in the form of cash escrow or
letter of credit for 125% of the cost of the restoration work. Such letter of
credit shall be on a form provided or approved by the City Attorney.
St. Louis Park Council Meeting
Item: 051506 - 8b - Highway 7 Corp Center Prelim & Final Plat And CUP
Page 13
4. The developer shall comply with the following conditions during construction:
a. All City noise ordinances which state that work shall be limited to the hours
between 7:00 a.m. and 10:00 p.m. on weekdays and 9:00 a.m. and 10:00 p.m.
on weekends.
b. The site shall be kept free of dust and debris that could blow onto neighboring
properties.
c. All state and local dust control and noise regulations.
d. The Zoning Administrator may impose additional conditions if it becomes
necessary in order to mitigate the impact of construction on surrounding
properties.
5. The trucks utilized for hauling shall only use Monitor Street, West Lake Street,
Louisiana Avenue, and Highway 7 in St. Louis Park for trips to and from the site.
6. Upon completion of excavation and filling, the applicant shall restore all streets,
and the disturbed areas on the site according to the plans.
7. In addition to any other remedies, the developer or owner shall pay an
administrative fee of $750 per violation of any condition of this approval.
8. Under the Zoning Ordinance Code, this permit shall be revoked and cancelled if
the building or structure for which the conditional use permit is granted is removed.
9. Assent form and official exhibits must be signed by applicant (or applicant and
owner if applicant is different from owner) prior to issuance of a building permit.
10. Approval of a Building Permit, which may impose additional requirements.
The City Clerk is instructed to record certified copies of this resolution in the Office of the
Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 1
8c. Request by Real Estate Recycling (CPE Exchange 26084 LLC) to approve a
Conditional Use Permit for excavation/fill of over 400 cubic yards of soil and
Landscaping Variance for property located at 7200 and 7250 Highway 7.
Case No. 06-29-CUP, 06-33-VAR
Recommended
Action:
Motion to approve a Conditional Use Permit to allow for
excavation/fill of more than 400 cubic yards of soil.
Motion to approve a landscaping variance.
DESCRIPTION OF REQUEST:
The applicant requests a conditional use permit for land reclamation that displaces more than 400
cubic yards of soil, and a variance from the parking lot landscaping requirements.
Real Estate Recycling proposes to construct a 272-stall parking lot on the southwest corner of
Highway 7 and Louisiana Avenue. The project site is polluted and requires soil remediation.
The clean up work and grading for the parking lot will displace more than 400 cubic yards of
soil, which requires a conditional use permit for land reclamation.
The parking lot will be constructed in a manner that caps the site to prevent ground water
contamination. Therefore, the applicant proposes a parking lot that does not include the required
landscaping islands and needs a variance to proceed.
Staff is recommending approval of the conditional use permit and the landscaping variance, but
with a condition that some internal landscaping treatments be provided even though they would
not meet the full requirements of the code. This variance would help maintain the integrity of
the cap and maintain as many of the proposed parking stalls as possible.
On May 3, 2006, the Planning Commission recommended approval of the Conditional Use
Permit, but recommended denial of the landscaping variance. They believed the applicant could
provide landscaping that met the intent of the ordinance without violating the cap, and that cost
was the sole reason for the requested variance.
BACKGROUND:
This project helps facilitate redevelopment of the nearby National Lead Industries/Golden Auto
property. The development of a 79,000 square foot office/showroom on that site will displace
some of Methodist Hospital’s off-site parking.
The site is owned by the City of St. Louis Park Economic Development Authority (EDA). The
EDA will lease the lot to Real Estate Recycling. Real Estate Recycling will maintain the
property and sublease the lot to Methodist Hospital.
The original concept for this site was to build a larger parking lot in this area (412 stalls). That
concept included using the neighboring billboard property. The applicant is still negotiating with
the company that owns the billboard and has a ground lease for the site. If the applicant is
successful in securing the billboard site, City approvals of the expanded parking lot would be
needed at a later date.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 2
Site Map:
Zoning: C2 - General Commercial
Comprehensive Plan Designation: Commercial
Parcel Size: 4.6 acres
Current Land Use: Vacant lot
Proposed Use: Parking Lot Principal Use
A parking lot is a permitted principal use in the C2 Zoning District. This parking lot is
considered to be an interim, but somewhat long-term use of the site. Ultimately, the City and
MN DOT expect this property will be used for right-of-way to construct an interchange at
Highway 7 and Louisiana Avenue. This interchange project will not likely occur for several
years. Also, Methodist Hospital has a long term lease for the use of these off-site parking stalls.
LAND RECLAMATION CONDITIONAL USE PERMIT ANALYSIS:
The Minnesota Pollution Control Agency approved a Response Action Plan (RAP) for the site in
April 2005. The proposed soil remediation, along with the construction of the parking lot, will
implement the approved RAP.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 3
The applicant will basically mix the existing soils (i.e. chemically impacted soils and stabilized
fills) with imported clean sand on-site. Mechanical soil compaction equipment will be used to
make the soil mix dense enough to support the proposed parking lot. The contractor will import
2,300 - 4,800 cubic yards of sand for the mixing process, and 4,000 to 5,000 cubic yards of Class
V gravel and asphalt pavement for the parking lot base and surface. The wide range relates to
whether the project includes, or does not include, the billboard site. The finished grade across
the site will be two feet higher than the existing grade. No material will be exported from the
site during the project. A passive venting system will be constructed below the asphalt pavement
to mitigate elevated concentrations of methane present in the subsurface.
The earthwork portion of the project will be performed using standard construction equipment
(i.e. excavators, loaders, bulldozers, trucks and compactors). Health and safety protocols, dust
controls practices, and erosion control practices are described in the RAP. The applicant will
obtain erosion control permits from the City and Watershed. The applicant will also obtain a
storm water general permit for construction from the MPCA.
Trucks carrying imported soil will travel on Minnesota Highway 7, Louisiana Avenue and Lake
Street. Trucks will enter the site from Lake Street.
The work would commence very soon after approvals. The parking lot (named the Silver Lot) is
intended to be complete in July 2006. Approximately half of the Methodist Hospital parking
from the National Lead Industries/Golden Auto site will be relocated to this lot, to make way for
the clean up of the south side of that site.
How will the proposed excavation affect the surrounding properties?
The abutting property is vacant except for the billboard, and may even be included in project, so
there is relatively little impact on neighboring properties.
All work will occur between the hours of 7:00 a.m. and 10:00 p.m. Monday through Friday and
the hours of 9:00 a.m. and 10:00 p.m. on Saturdays and Sundays, as required by City ordinances.
What measures will be taken to ensure erosion and sedimentation control?
The plans show protection of stormwater catch basins against sediment buildup, erosion control
silt fencing, and construction site truck entrances to minimize erosion potential and effects.
Additionally, the Watershed has issued an erosion control permit, and coverage from the MPCA
has been obtained.
What traffic impacts are associated with the proposed excavation?
The site is located so near to Highway 7, trucks will have minimal effect on motorists in St.
Louis Park. Also, the intersections of Lake Street and Louisiana Avenue and Louisiana Avenue
and Highway 7 have traffic signals.
Motorists in the immediate project area will have to contend with construction vehicles from
both this site and Sam’s Club, which is building on the southeast corner of Lake Street and
Louisiana Avenue.
The applicant, City of St. Louis Park, Methodist Hospital and Sam’s Club will all coordinate
very closely with one another to manage traffic in this area.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 4
Staff finds the proposal meets the general zoning requirements. City Code Section 36-79,
“Grading; Filling and Land Reclamation; Excavation and Mining” requires a CUP to prevent any
adverse impacts to the health, safety or welfare of the surrounding community.
PARKING LOT LANDSCAPING VARIANCE ANALYSIS
Zoning Code Sec. 36-361 (Off-street parking areas, paved areas, and loading spaces) states
internal landscaping shall be installed and maintained in all off-street parking areas exceeding
9,000 square feet. When applied to the proposed parking lot, the Zoning Code requires 8,400
square feet of landscape area and 630 plant units, of which at least 70 percent must be canopy
trees, based on the formulas described in section 36-364. Each landscape area would have to be
at least five feet wide/long, 200 square feet in area and 500 cubic feet in volume.
In order to grant a variance, the city needs to find in favor of all of the following criteria:
1. Where by reason of narrowness, shallowness, or shape of the lot, or where by reason of
exceptional topographic or water conditions or other extraordinary and exceptional
conditions of such lot, the strict applications of the terms of this ordinance would result
in a peculiar and practical difficulties or exceptional or undue hardship upon the
owner of such lot in developing or using such lot in a manner customary and legally
permissible within the zoning district in which said lot is located.
There is an exceptional condition on this lot that prevents the property owner from
providing the customary and required landscaping islands in the parking lot. The site
contains chemically impacted (polluted) soils. The proposed parking lot is designed to be
a cap to prevent groundwater contamination. Installing landscaping islands would punch
holes in the cap and be inconsistent with this purpose.
2. Conditions applying to the structure or land in question are peculiar to such property
or immediately adjoining property and do not apply generally to other land or
structures in the district in which said land is located.
Although other impacted sites exist in St. Louis Park, contaminated soils are still a
peculiar condition to specific sites and not a typical condition in the C2 District.
3. The granting of the variance is necessary for the preservation and enjoyment of a
substantial property right of the applicant.
The property owner has the right to use the property for a parking lot. It is a permitted
principal use in the C2 District. This preserves property rights and provides the ability to
enjoy and use the property.
4. The granting of the variance will not impair an adequate supply of light and air to the
adjacent property, unreasonably increase the congestion in the public streets, increase
the danger of fire, or endanger the public safety.
Granting a variance from the parking lot landscaping requirement will not impair the
supply of light and air to the adjacent properties, increase the congestion in the public
streets, increase the danger of fire, or endanger the public safety.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 5
5. The granting of the variance will not unreasonably impact on the character and
development of the neighborhood, unreasonably diminish or impair the established
property values in the surrounding area, or in any other way impair the health, safety,
comfort, or morals of the area.
Allowing the parking lot to be constructed without landscaping islands will not
unreasonably impact the character and development of the neighborhood, unreasonably
diminish or impair the established property values in the surrounding area, or in any other
way impair the health, safety, comfort, or morals of the area.
Landscaping islands add to the aesthetics of the parking lot, break up the “sea of parking”
effect and provide shade. Islands can also help orient motorists in the winter when
striping is obscured by recent snowfall because they usually anchor parking rows/bays.
Staff recommends that raised concrete curb islands be installed at the ends of the parking
bays, rather than the painted areas indicated on the plan. Staff also recommends the
applicant explore the possibility of aesthetic improvements on these island areas, such as
placing tall planter boxes for perennials, or decorative grasses if irrigation is not available
to the islands.
6. The granting of the variance will not be contrary to the intent of the Zoning Ordinance
or Comprehensive Plan.
Granting the variance would not be contrary to the intent of the C2 District or the
Comprehensive Plan.
7. The granting of the variance will not merely serve as a convenience to the applicant,
but is necessary to alleviate demonstrable undue hardship or difficulty.
Granting the parking lot landscaping variance alleviates the demonstrable undue hardship
or difficulty associated with the impacted soils, and parking lot design remedy, on this
lot.
OTHER GENERAL SITE DESIGN COMMENTS:
There are approximately four stalls on the far west corner of the proposed parking lot that could
be problematic and may be challenging to access where one car could potentially block another
from exiting. This area should be reconfigured and may require eliminating two or three stalls.
The plan does not clearly indicate that concrete curb will be constructed on the perimeter of the
lot, but this shall be done in accordance with the City Code.
The landscaping areas surrounding the site must be irrigated. This is critical to the survival of
the selected tree species and to ensure the perimeter landscaping flourishes in the absence of
interior plantings.
Finally, staff recommends the applicant consider different plantings in areas near the neighboring
billboard. The plantings should be dense to provide some screening of the parking lot, but not so
tall that they interfere with the billboard visibility from Highway 7. Of course, this would not be
an issue until the trees were much more mature than the size at which they will be planted.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 6
RECOMMENDATIONS:
Two separate actions are needed on this item, a resolution approving the Conditional Use Permit
for excavation and filling more than 400 cubic yards and a resolution relating to the landscaping
variance. Staff prepared two resolutions on the variance relating to the landscaping (one for
approval, one for denial). Staff recommendations on this item are as follows:
A. Motion to adopt a Resolution approving the Conditional Use Permit for excavation and
filling more than 400 cubic yards, subject to the conditions included in the Resolution.
B. Motion to adopt a Resolution approving the Variance request for parking lot interior
landscaping, subject to the conditions included in the Resolution.
The Planning Commission recommended denial of the landscaping variance. Their findings are
detailed in the draft resolution for denial (attached). Primarily they were concerned with the
aesthetic impact on this very visible intersection of providing no internal landscaping. They also
believed the applicant could provide landscaping that would not violate the cap of the polluted
soils.
ATTACHMENTS: Draft Resolution to Approve the Conditional Use Permit
Draft Resolution to Approve the Landscaping Variance (Staff)
Draft Resolution to Deny the Landscaping Variance (Planning Commission)
Site Development Plans (Supplement)
Erosion Control and Stormwater Pollution Prevention Plan (Supplement)
PREPARED BY: Sean Walther, Senior Planner
REVIEWED BY: Meg McMonigal, Planning and Zoning Supervisor
Kevin Locke, Community Development Director
APPROVED BY: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 7
RESOLUTION NO. 06-085
A RESOLUTION GRANTING CONDITIONAL USE PERMIT UNDER
SECTION 36-79 OF THE ST. LOUIS PARK ORDINANCE CODE
RELATING TO ZONING TO PERMIT EXCAVATION AND FILLING OF
MORE THAN 400 CUBIC YARDS FOR PROPERTY ZONED C2
GENERAL COMMERCIAL DISTRICT LOCATED AT 7200 AND 7250
HIGHWAY 7
BE IT RESOLVED BY the City Council of the City of St. Louis Park:
FINDINGS
1. Real Estate Recycling has made application to the City Council for a Conditional Use
Permit under Section 36-79 of the St. Louis Park ordinance code relating to zoning to permit
excavation and filling of more than 400 cubic yards for property zoned C2 General Commercial
district located at 7200 and 7250 Highway 7 for the legal description as follows, to-wit:
Lots 5 and 6, Block 158, including that part of Rex Avenue, vacated, lying
Southwesterly of the center line thereof and between extensions of the South line
of said Lot 6 and the North line of said Lot 5; Lots 5 and 6, Block 159, including
that part of Rex Avenue vacated, lying Northeasterly of the center line thereof and
between extensions of the South line of said Lot 6 and the North line of said Lot 5
and including that part of Hurst Street, vacated lying Southwesterly of the center
line thereof and between extensions of the South line of said Lot 6 and the North
line of said Lot 5; "Rearrangement of St. Louis Park". Hennepin County,
Minnesota. Torrens Property, Torrens Certificate No. 524886.
And
That part of Lots 2, 3, 4 and 5, Block 163, "Rearrangement of St. Louis Park"
lying Northerly of State Highway No. 7, together with that part of the
Southeasterly Half of First Street N.W. vacated lying between the North line of
said highway and the extension across said street of the Northeasterly line of said
Lot 2. Hennepin County, Minnesota. Torrens Property, Torrens Certificate No.
409009.
2. The City Council has considered the advice and recommendation of the Planning
Commission (Case No. 06-29-CUP) and the effect of the proposed excavation and filling on the
health, safety and welfare of the occupants of the surrounding lands, existing and anticipated
traffic conditions, the effect on values of properties in the surrounding area, the effect of the use
on the Comprehensive Plan, and compliance with the intent of the Zoning Ordinance.
3. The Council has determined that the excavation and filling will not be detrimental to the
health, safety, or general welfare of the community nor will it cause serious traffic congestion
nor hazards, nor will it seriously depreciate surrounding property values, and the proposed
excavation and filling is in harmony with the general purpose and intent of the Zoning
Ordinance and the Comprehensive Plan.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 8
4. The contents of Planning Case File 06-29-CUP are hereby entered into and made part of
the public hearing record and the record of decision for this case.
Conclusion
The Conditional Use Permit to permit excavation and filling of more than 400 cubic yards at
the location described is granted based on the findings set forth above and subject to the
following conditions:
1. The site shall be developed, used and maintained in accordance with Exhibits
incorporated by reference herein.
2. The applicant shall submit revised plans indicating fire lanes as required by the
Fire Marshall.
3. The applicant shall construct the parking lot to all other City Code standards,
including but not limited to providing concrete curbing around the perimeter of the lot and at the
ends of the parking bays.
4. Prior to starting any site work, the following conditions shall be met:
a. Obtain all necessary permits from the City (erosion control permit),
Minnehaha Creek Watershed Management Commission, and other agencies.
Copies of permits from the watershed and other agencies shall be provided to
the City.
b. Install erosion control measures on any portion of the site disturbed by the
project.
c. Submit a performance guarantee to the City in the form of cash escrow or
letter of credit for 125% of the cost of the restoration work. Such letter of
credit shall be on a form provided or approved by the City Attorney.
5. The developer shall comply with the following conditions during construction:
a. All City noise ordinances which state that work shall be limited to the hours
between 7:00 a.m. and 10:00 p.m. on weekdays and 9:00 a.m. and 10:00 p.m.
on weekends.
b. The site shall be kept free of dust and debris that could blow onto neighboring
properties.
c. All state and local dust control and noise regulations.
d. The Zoning Administrator may impose additional conditions if it becomes
necessary in order to mitigate the impact of construction on surrounding
properties.
6. The trucks utilized for hauling shall only use West Lake Street, Louisiana Avenue
and Highway 7 in St. Louis Park for trips to and from the site. The applicant shall not construct
a temporary construction access onto Louisiana Avenue.
7. Upon completion of excavation and filling, the applicant shall restore all streets,
and the disturbed areas on the site according to the plans.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 9
8. The applicant shall construct the parking lot in accordance with the City Code
standards, with the exception of the interior landscaping islands waived by variance.
9. In addition to any other remedies, the developer or owner shall pay an
administrative fee of $750 per violation of any condition of this approval.
10. Under the Zoning Ordinance Code, this permit shall be revoked and cancelled if
the building or structure for which the conditional use permit is granted is removed.
11. Assent form and official exhibits must be signed by applicant (or applicant and
owner if applicant is different from owner) prior to issuance of a building permit.
12. Approval of a Building Permit, which may impose additional requirements.
The City Clerk is instructed to record certified copies of this resolution in the Office of the
Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 10
VARIANCE
RESOLUTION NO. 06- ____
A RESOLUTION GRANTING A VARIANCE FROM SECTION 36-361 OF THE
ORDINANCE CODE RELATING TO ZONING TO PERMIT LESS PARKING LOT
INTERNAL LANDSCAPING THAN ALLOWED FOR PROPERTY LOCATED IN THE
C2 GENERAL COMMERCIAL DISTRICT AT 7200 AND 7250 HIGHWAY 7
BE IT RESOLVED BY the City Council of St. Louis Park, Minnesota:
FINDINGS
1. Real Estate Recycling has applied for a variance from Section 36-361 of the Ordinance
Code relating to Zoning to permit less parking lot internal landscaping than allowed for
property located in the C2 General Commercial District at 7200 and 7250 Highway 7 , to-
wit:
Lots 5 and 6, Block 158, including that part of Rex Avenue, vacated, lying Southwesterly
of the center line thereof and between extensions of the South line of said Lot 6 and the
North line of said Lot 5; Lots 5 and 6, Block 159, including that part of Rex Avenue
vacated, lying Northeasterly of the center line thereof and between extensions of the
South line of said Lot 6 and the North line of said Lot 5 and including that part of Hurst
Street, vacated lying Southwesterly of the center line thereof and between extensions of
the South line of said Lot 6 and the North line of said Lot 5; "Rearrangement of St. Louis
Park". Hennepin County, Minnesota. Torrens Property, Torrens Certificate No. 524886.
And
That part of Lots 2, 3, 4 and 5, Block 163, "Rearrangement of St. Louis Park" lying
Northerly of State Highway No. 7, together with that part of the Southeasterly Half of
First Street N.W. vacated lying between the North line of said highway and the extension
across said street of the Northeasterly line of said Lot 2. Hennepin County, Minnesota.
Torrens Property, Torrens Certificate No. 409009.
2. On May 3, 2006 the Planning Commission held a public hearing, received testimony
from the public, discussed the application and moved denial of a Landscaping Variance.
3. There is an exceptional condition on this property that prevents the property owner from
providing the customary and required landscaping islands in the parking lot. The site
contains chemically impacted (polluted) soils. The proposed parking lot is design to be a
cap to prevent groundwater contamination. Installing landscaping islands would be
inconsistent with this purpose.
4. Chemically impacted soil on the site is a peculiar condition to specific to this site that
does not generally apply to other lands in the C2 General Commercial District.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 11
5. The property owner has the right to use the property for a parking lot. It is a permitted
principal use in the C2 District. This preserves property rights and provides the ability to
enjoy and use the property.
6. The property owner has the right to use the property for a parking lot. It is a permitted
principal use in the C2 District. Granting the variance is necessary for the preservation
and enjoyment of a substantial property right of the applicant
7. Granting a variance from the parking lot internal landscaping requirements will not
impair the supply of light and air to the adjacent properties, increase the congestion in the
public streets, increase the danger of fire, or endanger the public safety.
8. Allowing the parking lot to be constructed without the meeting the minimum area,
volume, plant units and percentage of canopy trees required for landscaping islands will
not unreasonably impact on the character and development of the neighborhood,
unreasonably diminish or impair the established property values in the surrounding area,
or in any other way impair the health, safety, comfort, or morals of the area.
9. Granting a parking lot internal landscaping variance would not be contrary to the intent of
the C2 District or the Comprehensive Plan.
10. Granting the parking lot internal landscaping variance alleviates the demonstrable undue
hardship or difficulty associated with the Minnesota Pollution Control Agency approved
Response Action Plan to build a parking lot that is designed to cap the chemically
impacted soils on the site.
11. The contents of Planning Case File 06-33-VAR are hereby entered into and made part of
the public hearing record and the record of decision of this case.
12. Under the Zoning Ordinance, this variance shall be deemed to be abandoned, revoked, or
canceled if the holder shall fail to complete the work on or before one year after the
variance is granted.
13. Under the Zoning Ordinance, this variance shall be revoked and cancelled if the building
or structure for which the variance is granted is removed.
CONCLUSION
The application for the variance to permit less parking lot internal landscaping than allowed for
property located in the C2 General Commercial District at 7200 and 7250 Highway 7 is granted
based upon the finding(s) set forth above, with the following conditions:
1. The applicant shall construct the parking lot to all other City Ordinance standards,
including but not limited to providing concrete curbing around the perimeter of the lot
and at the ends of the parking bays.
2. The applicant shall irrigate the perimeter landscaping areas of the lot.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 12
3. The applicant shall submit revised plans for City review and approval that eliminate
potential ingress/egress problems for the stalls on the far west end of the proposed
parking lot.
4. The applicant shall submit revised plans to the City to indicate fire lanes as required by
the Fire Marshall.
5. The applicant shall submit a revised landscaping plan to provide better screening along
the north side and avoid future conflicts with the neighboring billboard visibility from
State Highway 7.
6. The applicant submit revised plans that provide alternative aesthetic and landscaping
treatments in the parking lot in place of the required area, volume, plant units and
percentage of canopy trees required by City Ordinances.
The City Clerk is instructed to record certified copies of this resolution in the Office of the
Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 13
VARIANCE
RESOLUTION OF DENIAL
RESOLUTION NO. 06-____
A RESOLUTION DENYING A VARIANCE FROM SECTION 36-361 OF THE
ORDINANCE CODE RELATING TO ZONING TO PERMIT LESS PARKING LOT
INTERNAL LANDSCAPING THAN ALLOWED FOR PROPERTY LOCATED IN THE
C2 GENERAL COMMERCIAL DISTRICT AT 7200 AND 7250 HIGHWAY 7
BE IT RESOLVED BY the City Council of St. Louis Park, Minnesota:
FINDINGS
1. Real Estate Recycling has applied for a variance from Section 36-361 of the Ordinance
Code relating to Zoning to permit less parking lot internal landscaping than allowed for
property located in the C2 General Commercial District at 7200 and 7250 Highway 7 , to-
wit:
Lots 5 and 6, Block 158, including that part of Rex Avenue, vacated, lying Southwesterly
of the center line thereof and between extensions of the South line of said Lot 6 and the
North line of said Lot 5; Lots 5 and 6, Block 159, including that part of Rex Avenue
vacated, lying Northeasterly of the center line thereof and between extensions of the
South line of said Lot 6 and the North line of said Lot 5 and including that part of Hurst
Street, vacated lying Southwesterly of the center line thereof and between extensions of
the South line of said Lot 6 and the North line of said Lot 5; "Rearrangement of St. Louis
Park". Hennepin County, Minnesota. Torrens Property, Torrens Certificate No. 524886.
And
That part of Lots 2, 3, 4 and 5, Block 163, "Rearrangement of St. Louis Park" lying
Northerly of State Highway No. 7, together with that part of the Southeasterly Half of
First Street N.W. vacated lying between the North line of said highway and the extension
across said street of the Northeasterly line of said Lot 2. Hennepin County, Minnesota.
Torrens Property, Torrens Certificate No. 409009.
2. On May 3, 2006 the Planning Commission held a public hearing, received testimony
from the public, discussed the application and moved denial of a Landscaping Variance.
3. The Planning Commission finds that the hardship related to providing the customary and
required landscaping islands in the parking lot on the chemically impacted (polluted)
soils on this site is economic alone.
4. Granting the application is not necessary for the preservation and enjoyment of
substantial property rights.
St. Louis Park Council Meeting
Item: 051506 - 8c - Louisiana Alignment CUP And Variance
Page 14
5. Allowing the parking lot to be constructed without any internal landscaping and aesthetic
improvements will unreasonably impact on the character and development of the
neighborhood and impair the image of the area on this very visible site.
6. Granting a parking lot internal landscaping variance is contrary to the intent of the C2
District or the Comprehensive Plan.
7. The undue hardship or difficulty associated with providing landscaping to meet the City
Ordinance intent, if not the specific landscaping area, volume, plant units and percentage
of canopy trees on the internal portion of the proposed parking lot, is economic alone.
8. The contents of Planning Case File 06-33-VAR are hereby entered into and made part of
the public hearing record and the record of decision of this case.
9. Under the Zoning Ordinance, this variance shall be revoked and cancelled if the building
or structure for which the variance is granted is removed.
CONCLUSION
The application for the variance to permit no parking lot internal landscaping for property
located in the C2 General Commercial District at 7200 and 7250 Highway 7 is denied based
upon the finding(s) set forth above.
The City Clerk is instructed to record certified copies of this resolution in the Office of the
Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 1
8d. Lou Park & River Pointe II (Bigos)Preliminary and Final Planned Unit
Development
Case No. 06-30-PUD
Recommended
Action:
Motion to recommend approval of the Preliminary Planned Unit
Development, subject to conditions as recommended by Staff.
BACKGROUND:
The applicant proposes to construct a 49-unit apartment building on the vacant lot at 1361
Hampshire Avenue.
The City has previously approved a Special Use Permit for both the existing apartment building
at 1351 Hampshire Avenue and proposed apartment building at 1361 Hampshire Avenue. The
108-unit apartment building was built in 1978. In 1999, the City granted a Special Use Permit
Amendment (99-5-CUP, Res. No. 99-60) to also build a 45-unit building, but during excavation
soil contaminants were found and work ceased.
The Minnesota Pollution Control Agency approved a voluntary Response Action Plan (RAP) for
the site in March 2004. The City approved a Conditional Use Permit for the soil remediation
work in April 2006. The soil remediation project, combined with the proposed development,
will fully implement the RAP, which allows development to occur on the site.
The plan includes modest modifications to the building since the 1999 proposal in order to make
the units more marketable. The plan also adheres to current standards for stormwater
management and Designed Outdoor Recreation Area. The Planned Unit Development approvals
for this site will replace all previous Special Use Permits.
The site is located on Hampshire Avenue two blocks south of Wayzata Boulevard near the end of
a cul-de-sac. Surrounding land uses include Otten Pond, Park Place West office building,
Bennigans and Shelly’s restaurants, Prestige Auto Sales and apartment buildings.
Site Area:
6.12 Acres
Zoning:
R4 Multiple-Family Residence
Comprehensive Plan:
High Density Residential
Current Use:
108-unit apartment building,
vacant lot
Proposed Use:
Addition of a 49-unit
apartment building
ZONING ANALYSIS:
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
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Factor Required Proposed Met?
1. Use Multi-Family Residence Multi-Family Residence Yes
2. Lot Area 2 acres 6.12 acres Yes
3. Density 30 units per acre max. 25.65 units per acre Yes
4. Height 40 feet max. 49.5 feet PUD
5. Building Materials 60% Class I materials min. 57% Brick/Glass (Class I),
Propose cement board
(unclassified) for 3% of the
60% required Class I materials
No
6. Off-Street Parking 314 spaces w/o reductions 253 spaces with 15% PUD and
5% bike reductions and proof of
parking for 12 parking spaces
PUD
7. Setbacks See Planned Unit Development Analysis section PUD
8. Floor Area Ratio 0.7 0.697 Yes
9. Ground Floor Area
Ratio
0.35 0.223 Yes
10. Open Area / DORA 31,992 sq. ft. (12%) 32,014 sq. ft. (12%) Yes
11. Req’d Bufferyard-
Front (west) only
493 units 498 units Yes
12. Landscaping 1% of project cost min. $50,000+ Yes
13. Trees 60 existing trees preserved 72 new trees to be planted
(32 evergreen, 40 deciduous)
Yes
14. Mechanical
Equipment
Full screening required. Provided. Yes
15. Sidewalks Required along all streets
and building frontages.
Existing along all streets and
building frontages, will remain.
Yes
16. Refuse handling Full screening required. Provided underground. Yes
17. Transit service None required. Available at Louisiana Avenue
Transit Center (Routes 9, 604,
649, 643, 658, 663, 672, 675,
755, 756)
Yes
18. Bicycle Parking Required. Provided underground and at
building entrances.
Yes
19. Stormwater Required for site. Provided. Yes
Summary of Zoning Analysis:
The proposal meets all basic requirements of the Zoning Code. The plan uses PUD
modifications for the height, number of parking stalls, and setbacks. The applicant is also asking
for the use of cement board siding for 3 percent of the required Class I materials.
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 3
The applicant has made improvements to the façade and units since the 1999 proposal. The units
will have 9-foot ceilings, washer/dryer, decks will have privacy walls on one side, etc. The
building will have a steeper roof pitch (12/7). The plan provides storm water rate and quality
control on-site before discharging into Otten Pond. The plan provides Designed Outdoor
Recreation Area (DORA) consistent with current requirements, rather than just open space
required previously.
Staff determined that sufficient space is available to meet the bufferyard and landscaping
requirements. The applicant is able to preserve all 60 existing significant trees on the site.
The Zoning analysis takes into account the location of mechanical equipment and waste disposal
services. The development includes adequate screening for all mechanical equipment; primarily,
such equipment is located below grade. Waste disposal service is also provided below-grade,
and includes adequate space for both traditional garbage as well as recycling service.
The Designed Outdoor Recreation Areas include an enclosed courtyard, a basketball court, better
integration with a neighboring trail by constructing a sidewalk loop around the new building, and
more passive lawn areas near the trail. There is also a lighted, grassy open space (potential
picnic area) on the south side of the building adjacent to the trail.
PLANNED UNIT DEVELOPMENT ANALYSIS:
Zoning Code Requirements for PUD:
The project requires a PUD for certain reductions from the Zoning Code. The Zoning Code
requires that applicants for a Planned Unit Development demonstrate how the proposal will
“enhance, support, and further the following objectives”:
1. Provide for integrated pedestrian facilities to and within the project:
There are existing sidewalks provided along Hampshire Avenue and existing bituminous
paths along the south and east side of the site. There are also sidewalks to the building
entrances and a proposed internal sidewalk loop around the new building and connecting
to the paths. The sidewalks also help frame the designed outdoor recreation areas.
2. Enhance linkages to mass transit facilities:
This site is just beyond ¼ mile from the Louisiana Avenue Transit Center and about 0.4
mile walking distance along sidewalks. Bus Routes 9, 604, 643, 649, 652, 672, 675, 755
and 756 all serve the Louisiana Avenue Transit Center. The applicant is also providing
bicycle parking. Staff believes it is likely that residents of this site will use both
pedestrian and bicycle options to commute to the transit center.
3. Increase the supply of low-income and moderate-income housing:
The development includes 108 existing and 49 proposed market-rate units. The existing
and proposed units will lease to households with a variety of incomes, including those
households of moderate income. Rental rates at Lou Park (1351 Hampshire Avenue)
range from $705 to $745 per month for one-bedroom units and $825 to $840 for two-
bedroom.
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
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4. Incorporate implementation of travel demand management strategies as part of the PUD.
The purpose of a travel demand management strategy is to reduce the negative impacts of
a development on the transportation system. Generally, travel demand management
strategies target commercial and industrial destinations that can take actions such as
staggering hours of operation/shift changes. It is more difficult to do so with residential
projects. The project does provide bicycle parking, it is relatively nearby to frequently
operating transit service, and there are restaurants and services nearby which may
promote additional pedestrian/bicycle trips.
5. Provide public plazas and designed outdoor recreation area which exceeds minimum
chapter requirements:
The development meets Designed Outdoor Recreation Area (DORA) requirement of 12%
for the overall site. A large part of the DORA is made up of the existing courtyard and
picnic area of the 108-unit building. The applicant proposes a new basketball court in
place of some underutilized parking. This provides an active recreational opportunity on
the site. The plan also provides better integration with the neighboring pathway by
constructing a sidewalk loop around the new building that will improve access and use of
the existing trails. There is also a lighted, grassy open space (potential picnic area) on the
south side of the building adjacent to the trail.
6. Provide a high degree of aesthetics through overall design and display of public art:
The applicant has made some modest modifications to the building plan since the 1999
proposal to make the units more attractive in the current market, including taller ceilings
and other amenities.
The landscaping buffer in the front yard will be supplemented with new evergreen
plantings, and significant landscaping surrounding the new building.
The plan provides 57% brick and glass exterior materials and proposes to count cement
board for 3% of the 60% Class I materials requirement. Cement board is not yet
classified in the City Code, but has been accepted in two recent PUD applications to
fulfill up to 5% of the 60% Class I materials requirement. The project architect believes
they have added brick wherever appropriate. He suggested the design could change to a
completely hipped roof in order to reduce the wall space (eliminate the gable ends) and
increase the Class I materials percentage, but he believes the gables add to the appearance
of the building.
PUD Modifications.
The developer is requesting the following modifications to Zoning requirements through the
PUD process:
Height:
The R4 District limits buildings to 40 feet in height. The proposed building is 49.5 feet
tall. The PUD process allows a modification to building height limitations. The
applicant increased the ceiling heights to 9 feet, and increased the roof pitch to improve
the appearance of the building.
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 5
Parking:
The plan proposes to use the 15% parking reduction allowed for PUD projects. The
applicant technically cannot use the 10% reduction for frequently operating transit,
because the site is just outside the ¼ mile radius required by City Code. The applicant
argues that current residents use transit, as will future residents. Also, the applicant
suggests that the less convenient parking stalls on the northeast corner of the site (where a
basketball court is proposed) are not used regularly. The plan provides 241 parking stalls
for 157 units (254 bedrooms) and proof of at least 12 more parking stalls. The proof of
parking is over a portion of the area of the basketball court. The court could be
reconfigured if the additional parking is needed.
Required Setbacks
Through the use of PUD modifications, no building setbacks are required. The developer
is requesting a modification to the south side yard setback from 48.3 feet to 44.8 feet.
The proposed setbacks similar to the 1999 proposal, except the area to the south was
slightly expanded to provide a more appealing and useable designed outdoor recreation
area along the existing pathway.
The PUD site includes two parcels. The following table details the required setbacks in
the R4 District, and the existing and proposed setbacks. The outer boundary of the PUD
is referred to as the “exterior lines” and the common property lines of the two parcels
within the PUD are referred to as “interior lines.”
Required Yards Required by
Zoning Code
Provided Met or
Allowed With PUD?
Existing 108-Unit Building
Front 40 84.5’ Yes
North Side 41.7’ 47’ Yes
South Side 36.7’ 14’ (interior line);
48’ (exterior line)
Yes
Rear 25’ 56.5’ Yes
Proposed 49-Unit Building
Front 49.5’ 49.5’ (interior line)
393’ (site line)
Yes
North Side 51.5’ 8.5’ (interior line)
192’ (exterior line)
Yes
South Side 48.3’ 44.75’ Yes
Rear 25’ 29.75’ Yes
Existing Garages
Front 30’ 298’ Yes
North Side 20’ 20’ Yes
South Side 15’ 14.5’ (interior line)
260’ (exterior line)
Yes
Rear 25’ 117’ Yes
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 6
The Planned Unit Development replaces any previous Special Use Permit or Special Use Permit
Amendments approved for 1351 and 1361 Hampshire Avenue.
PUBLIC PROCESS:
The applicant received City Council approval for soil remediation on the site. The proposed
Planned Unit Development replaces the existing Special Use Permit(s) for the properties at 1351
and 1361 Hampshire Avenue. The applicant held a neighborhood meeting to introduce the
project on March 9, 2006. The Planning Commission held a public hearing on April 26, 2006
and recommended approval of the application. No one from the public attended the public
hearing. City Council action on the preliminary and final plat applications concludes the public
process.
RECOMMENDATION:
The Planning Commission and staff recommend approval of the Preliminary and Final Planned
Unit Development, subject to several conditions. The conditions are listed in the attached draft
resolution. Please note that approval of this Planned Unit Development rescinds all previous
approvals and resolutions, so one of the conditions relates to better establishing what exists on at
1351 Hampshire Avenue with an as-built survey.
Attachments: Draft Resolution to approve the Planned Unit Development
Zoning Map (supplement)
Letter from the Applicant dated March 20, 2006 (supplement)
Development Plans (supplement)
Prepared by: Sean Walther, Senior Planner
Reviewed by: Meg McMonigal, Planning and Zoning Supervisor
Kevin Locke, Community Development Director
Approved by: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 7
RESOLUTION NO. 06-086
A RESOLUTION APPROVING A PRELIMINARY AND FINAL
PLANNED UNIT DEVELOPMENT (PUD) UNDER SECTION 36-367 OF
THE ST. LOUIS PARK ORDINANCE CODE RELATING TO ZONING
FOR PROPERTY ZONED R-4 MULTIPLE FAMILY RESIDENCE
DISTRICT LOCATED AT 1351 and 1361 HAMPSHIRE AVENUE SOUTH
WHEREAS, an application for approval of a Preliminary and Final Planned Unit
Development (PUD) was received on March 20, 2006 from the applicant, and
WHEREAS, the Planning Commission reviewed the Preliminary and Final PUD at the
meeting of April 26, 2006, and
WHEREAS, the Planning Commission recommended approval of the Preliminary and
Final PUD on a 6-0 vote with all members present voting in the affirmative, and
WHEREAS, the City Council has considered the staff reports, Planning Commission
minutes and testimony of those appearing at the public hearing or otherwise including comments
in the record of decision.
BE IT RESOLVED BY the City Council of the City of St. Louis Park:
Findings
1. Bigos-Lou Park II, LLC (Ted Bigos) has made application to the City Council for a Planned
Unit Development under Section 36-367 of the St. Louis Park Ordinance Code within the R-4
Multiple Family Residence District located at 1351 and 1361 Hampshire Avenue South for the
legal description as follows, to-wit:
Lot 5, Block 1, Lou Park Addition; Hennepin County, Minnesota
2. The City Council has considered the advice and recommendation of the Planning
Commission (Case No. 06-30-PUD) and the effect of the proposed PUD on the health, safety and
welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the
effect on values of properties in the surrounding area, the effect of the use on the Comprehensive
Plan, and compliance with the intent of the Zoning Ordinance.
3. The City Council has determined that the PUD will not be detrimental to the health, safety or
general welfare of the community, nor with certain contemplated traffic improvements will it
cause serious traffic congestion or hazards, nor will it seriously depreciate surrounding property
values. The Council has also determined that the proposed PUD is in harmony with the general
purpose and intent of the Zoning Ordinance and the Comprehensive Plan and that the requested
modifications comply with the requirements of Section 36-367(b)(5). The specific modification
include:
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 8
a. Allow the 49-unit apartment building at 1361 Hampshire Avenue South to exceed the
maximum building height of 40 feet by 9.5 feet.
b. Allow a 15 percent (47 stalls) reduction in the number of parking stalls required.
c. Allow a reduction in the required setbacks as reference in the Staff Report and shown in
the Official Exhibits.
d. Allow the use of cement board and batten siding, which is currently not classified in the
ordinance, to be used toward 3 percent of the 60 percent Class I materials required for
exterior materials on new developments.
4. The contents of Planning Case File 06-30-PUD are hereby entered into and made part of the
public hearing record and the record of decision for this case.
Conclusion
The Preliminary and Final Planned Unit Development at the location described is approved
based on the findings set forth above and replaces all previous Special Use Permits and Special
Use Permit Amendments for 1351 and 1361 Hampshire Avenue, subject to the following
conditions:
1. The site shall be developed, used and maintained in conformance with the Final PUD
official exhibits.
2. Plans shall be submitted to indicate fire lanes as required by the Fire Marshall.
3. The applicant shall prepare and submit an as-built survey of the property at 1351
Hampshire Avenue to benchmark the site plan approval by this Planned Unit Development. The
survey should show locations of buildings, driveways, parking, and utilities. The survey should
indicate the finished grade, first floor elevation of the building and site elevations, and also note
the height of the buildings, number of units/stalls, and the distances from the existing building
and parking areas to property lines.
4. The site plan includes proof of parking for 12 stalls. The property owner is responsible
for informing any subsequent owner of the property of the parking status of the property. The
city may, at its sole discretion, require that the proof of parking area be paved and striped in such
a way that it meets the requirements of City Code to provide the total number of required parking
spaces on the site. The plan must maintain the minimum 12 percent Designed Outdoor
Recreation Area if proof of parking is installed.
5. Prior to starting any site work, the following conditions shall be met:
a. Assent form and official exhibits must be signed by applicant and owner.
b. A preconstruction conference shall be held with the appropriate development,
construction and city representatives.
c. All necessary permits must be obtained.
d. Building materials samples & colors must be submitted to and approved by Zoning
Administrator.
e. A performance guarantee in the form of cash escrow or letter of credit shall be
submitted to the City of St. Louis Park in the amount of 125% of the exterior site
improvements. Such letter of credit shall be on a form provided or approved by the
City.
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 9
4. Prior to issuance of a building permit, the applicant shall implement the Voluntary
Response Action Plan and submit an Implementation Report to the City of St. Louis Park and
Minnesota Pollution Control Agency.
5. The developer shall comply with the following conditions during construction:
a. All City noise ordinances, which state that work shall be limited to the hours between
7:00 a.m. and 10:00 p.m. on weekdays and 9:00 a.m. and 10:00 p.m. on weekends.
b. Loud equipment shall be kept as far as possible from residences at all times.
c. The site shall be kept free of dust and debris that could blow onto neighboring
properties.
d. Public streets shall be maintained free of dirt and shall be cleaned as necessary.
e. The Zoning Administrator may impose additional conditions if it becomes necessary
in order to mitigate the impact of construction on surrounding properties.
6. The applicant shall provide to the City a copy of the No Action Letter or related
communications from the Minnesota Pollution Control Agency.
7. The developer shall pay an administrative fine of $750 per violation of any condition of
this approval.
8. All construction, paving, striping, landscaping, lighting and recreational facilities shall be
completed by May 31, 2007.
9. In addition to any other remedies, the developer or owner shall pay an administrative fee
of $750 per violation of any condition of this approval.
10. Pursuant to Section 36-367(e)(6) of the Zoning Ordinance, the City will require execution
of a development agreement as a condition of approval of the Final P.U.D. The development
agreement shall address those issues which the City Council deems appropriate and necessary.
The Mayor and City Manager are authorized to execute the development agreement.
The City Clerk is instructed to record certified copies of this resolution in the Office of the
Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8d - Bigos Apartments Prelim And Final PUD
Page 10
ZONING MAP
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 1
8e. Hoigaard’s at Miracle Mile – Major Amendment to a Special Permit and Variance
for a Tower Sign – Hoigaard’s Inc. - Case No. 06-19-CUP & 06-35-VAR
Recommended
Action:
Motion to adopt a Resolution approving the Major Amendment to a
Special Permit for a building expansion and parking modifications.
Motion to adopt a Resolution denying the Variance for a Tower Sign.
Zoning: C-2 General Commercial
Comprehensive Plan: Commercial
DESCRIPTION:
Requested is approval of a Major Amendment to a Special Permit. The amendment is required
because Hoigaard’s intends to increase the floor area within the portion of Miracle Mile that they
plan to occupy. Also requested is a variance from the Zoning Code to permit the construction of a
sign on a tower.
DEVELOPMENT PROPOSAL:
The Hoigaard’s retail store currently operates at its building along Highway 100. However, that
building is part of a Planned Unit Development approved on February 6, 2006. Hoigaard’s is now
planning to move to Miracle Mile, a 86,253 square foot shopping center located on a 6.7 acre site in
the southeast portion of the City.
Hoigaard’s intends to use 13,209 square feet of retail space at Miracle Mile formerly occupied by
Snyder Drug as well as portions of the building formerly occupied by other merchants. Hoigaard’s
will also use a portion of the office space in the second floor of the building. A 2,533 square foot
addition will be constructed at the rear of the building for storage of merchandise not on the sales
floor. The building expansion results in the required amendment.
In addition to the building expansion, Hoigaard’s is planning to renovate the façade, improve the
landscaping, and make safety improvements to the parking lot at Miracle Mile.
SPECIAL PERMIT ANALYSIS:
Existing Operations
Miracle Mile operates under a Special Permit that was last approved in 1992. The facility is
currently in compliance with the Special Permit. Hoigaard’s is a retail use (as intended by the
original Special Permit) and is coming into greater compliance with the current Zoning Code
through the building renovations and improvements, including site improvements to the parking lot
and landscaped areas. Special Permits may be expanded as long as the greatest possible compliance
with current zoning code is maintained. Miracle Mile, like many other structures in the C-2 Zoning
District, is out of compliance with the requirements for building materials and landscaping. The
reconstruction proposed by Hoigaard’s will represent a substantial improvement over the existing
conditions.
Building Materials and Height
Hoigaard’s is planning to use Class I materials almost exclusively on the new façade over their
portion of Miracle Mile. The building is currently 22’ 8” high. The proposed façade renovations
will not increase the building’s height; however, the building will reach a maximum height of 64’ at
the peak of the proposed tower. The façade will be composed primarily of stone, glass, stucco and
redwood. Canvas awnings are proposed for the west side of the building along Wooddale Avenue.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
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Parking
Staff has determined that the shopping center and office uses at Miracle Mile are adequately served
by the site’s existing parking area. Total parking requirements are as follows:
Use Parking Requirement
Shopping Center – 1st Floor Retail 444 spaces
Office – 2nd Floor 77 spaces
Proposed Addition - Storage 2 spaces
Total Requirement 523 spaces
Total Provided 538 spaces
At the present time, there are 550 usable spaces at Miracle Mile. Spaces are available in both the
front and the rear of the building. The construction of an addition to the rear of the existing building
results in a loss of 12 spaces, reducing the total to 538 spaces, which is 15 spaces more than
required by the Zoning Code. Representatives from Hoigaard’s have indicated that the parking
spaces to the rear of the building will be used primarily for employee parking.
Site Circulation
Because of the complicated circulation pattern at Miracle Mile, a study of the site’s existing
circulation patterns has been completed at the City’s request by SRF Consulting (attached). The
study recommends a minor change to the primary site entrance at Park Nicollet Boulevard. This
change involves the extension of the median to improve traffic safety and flow. Also addressed was
the right-out exit at the west side of the site onto Wooddale Avenue. The study indicates that a
right-in/right-out access would be an appropriate addition at this location. To improve the safety of
that intersection, changes to the signs are also proposed.
Stormwater
The minor addition of space proposed by Hoigaard’s does not trigger the stormwater requirement
normally imposed on redevelopment projects because there is no change in the impervious surface
coverage on-site. The City Engineer has reviewed the proposed plans and indicated that the minor
amount of stormwater storage proposed for the rooftop of the new portion of the building will be
sufficient to provide rate control for the relatively minor addition.
Landscaping
The addition proposed for the rear portion of the building will require the installation of improved
landscaping in this location. At the rear of the store Hoigaard’s is proposing to substantially
improve the landscaped buffer area between the parking lot and the property to the south. The
attached landscape plan details the new plantings.
In addition to the improvements proposed for the south side of the addition, Hoigaard’s is proposing
the installation of new landscaping on the west and north side of Miracle Mile.
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Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 3
Tent Sale Event
Hoigaard’s has a tradition at its current location on Highway 100 of holding “tent sale” events in its
parking lot. Hoigaard’s has not included any details regarding tent sales as part of this proposal. For
this reason, tent sales would not be allowed at the Miracle Mile site at this time. This does not
preclude Hoigaard’s from seeking approval for holding tent sales at this site in the future.
Variance:
Hoigaard’s is proposing the construction of a 64’ tower at the northwest corner of the building. The
current building, to be occupied by Hoigaard’s, reaches a maximum height of 22’ 8”. The intent is
that the tower will replicate the smokestack at Hoigaard’s current location, which will be
demolished as part of the Hoigaard’s Village redevelopment project. Because the tower is part of
the building, no variance is required for height – all setback requirements are met based on the
tower’s proposed height and location. The maximum height in the C-2 General Commercial Zoning
District is 75’.
The Zoning Code prohibits signs on towers (Sec. 36-362). Even though the tower is acceptable
under our regulations, a sign on the tower is not. For this reason, the applicant has requested a
variance from the Zoning Code to permit a sign on the tower. The applicant plans to replicate the
sign on the existing smokestack. The variance request is discussed below.
Criteria
Variances shall be granted only provided that the following evaluation criteria from the City Code,
Section 36-33 “Application and review process for conditional use permits and variances,” can be
satisfactorily answered:
1. Where by reason of narrowness, shallowness, or shape of a lot, or where by reason of
exceptional topographical or water conditions or other extraordinary and exceptional
conditions of such lot, the strict application or the terms of this chapter would result in
peculiar and practical difficulties or exceptional or undue hardship upon the owner of
such lot in developing or using such lot in a manner customary and legally permissible
within the use district in which such lot is located.
In the application, the applicant indicates that the primary hardship associated with the need for
a sign on a tower is the loss of the existing smokestack and tower sign at the current location.
The applicant does not list any practical difficulties or hardships that are peculiar to this lot.
However, the application for a variance is attached and details the desire by the applicant to
preserve the ‘Hoigaard’s’ landmark sign in a different location.
Without a variance for the proposed sign, Hoigaard’s will be deprived of the use of a symbol
that has been associated with the Hoigaard’s for many years.
2. Conditions applying to the structure or land in question are peculiar to the property or
immediately adjoining property, and do not apply, generally, to other land or structures in
the use district in which the land is located.
The structure and land in question does not have any unique characteristics that would require
the use of a tower sign on the site; however, the site is located within a quarter-mile of the
existing tower sign, and would therefore serve as a suitable location for a replacement sign.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 4
3. The granting of the proposed variance is necessary for the preservation and enjoyment
of a substantial property right of the applicant.
The proposed variance is not required to enable the applicant to fully preserve and enjoy the
property rights typically bestowed on property owners based on the City’s Zoning Code.
4. The granting of the proposed variance will not impair an adequate supply of light and
air to the adjacent property, unreasonably increase the congestion in the public streets,
increase the danger of fire, or endanger public safety.
The granting of this variance would not impair the supply of light or air to adjacent properties.
It would not result in increased congestion in the public streets, increase danger of fire, or
endanger public safety.
5. The granting of the variance will not unreasonably impact on the character and
development of the neighborhood, unreasonably diminish or impair established property
values in the surrounding area, or in any other way impair the health, safety, and comfort
of the area.
The granting of this variance will not negatively impact the character or development of the
neighborhood, property values of the surrounding area, or impair the health, safety and comfort
of the area.
6. The granting of the proposed variance will not be contrary to the intent of this chapter
and the comprehensive plan.
The granting of the proposed variance would be contrary to Section 36-362 of the Zoning Code,
which specifically prohibits signs erected upon towers. For this reason, a variance has been
requested.
The granting of the proposed variance would not be contrary to the intent of the Comprehensive
Plan.
7. The granting of a variance will not merely serve as a convenience to the applicant but
is necessary to alleviate a demonstrable undue hardship or difficulty.
The granting of this variance will not alleviate an undue hardship or difficulty. The variance
will enable the relocation of Hoigaard’s traditional sign, which would deprive Hoigaard’s of the
use of a symbol that has long been associated with their store and St. Louis Park.
Variance recommendation
The proposed variance does not meet the seven criteria listed in the Zoning Code. For this reason,
staff recommends denial of the variance request. The Planning Commission did not concur with
Staff’s recommendation; further information about the Planning Commission’s comments is
included below.
PUBLIC PROCESS:
The applicant has held two neighborhood meetings prior to the April 5th Planning Commission
meeting. At each meeting, representatives from Hoigaard’s and Miracle Mile have been present.
Hoigaard’s has suggested that it hopes to open for business in the Miracle Mile by September of
2006. Neighbors have expressed a great deal of interest in the proposal, as the retail space at the
west side of Miracle Mile has been vacant for several years.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 5
PLANNING COMMISSION:
The Planning Commission considered the applications at its April 26, 2006 meeting. At that
meeting, the Planning Commission discussed the application and heard testimony from several
neighbors. The Planning Commission concurred with Staff’s recommendation for the amendment
to the Special Permit, voting 6-0 to recommend approval of the amendment.
The Planning Commission differed from Staff’s recommendation in regard to the proposed variance
for the Tower Sign. On a vote of 6-0, the Planning Commission recommended approval of the
variance. The Planning Commission supported the variance request because of the long history of
Hoigaard’s association with the tall smokestack on their current site. They felt allowing a tower
with Hoigaard’s name on it to be built at their new site, Miracle Mile, continued that tradition,
effectively recreating a St. Louis Park landmark at a new location. Because the Planning
Commission and Staff offer differing recommendations regarding the variance request, staff has
included two resolutions with the Staff report. One resolution is for the approval of the variance,
and the other is for denial.
RECOMMENDATION:
Two separate actions are needed on this item, a resolution approving the major amendment to the
special permit and resolution regarding the sign on the tower. Staff has prepared two resolutions on
the variance relating to the sign on the tower (one for approval, one for denial) Staff
recommendations on this item are as follows:
A. Motion to adopt a Resolution approving the Major Amendment to the Special Permit,
subject to the conditions included in the Resolution.
B. Motion to adopt a Resolution denying the Variance request for a sign on a tower.
Attachments: Resolution approving an amendment to a Special Permit
Resolution approving a Variance for a sign on a tower
Resolution denying a Variance for a sign on a tower
Draft Minutes, 4/26/06 Planning Commission meeting (excerpt)
Application for a Variance with narrative by applicant
Color elevations (supplement)
Site Plan and related documents (supplement)
Location Map (supplement)
Prepared by: Adam Fulton, Associate Planner
Reviewed by: Meg McMonigal, Planning and Zoning Supervisor
Kevin Locke, Community Development Director
Approved by: Nancy Gohman., Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 6
RESOLUTION NO. 06-____
Amends and Restates Resolution No. 92-160
A RESOLUTION AMENDING AND RESTATING RESOLUTION NO. 92-160
ADOPTED ON OCTOBER 20, 1992, AND GRANTING AMENDMENT TO
EXISTING SPECIAL PERMIT UNDER SECTION 36-33 OF THE ST. LOUIS
PARK ORDINANCE CODE RELATING TO ZONING TO ALLOW A
BUILDING EXPANSION AND PARKING MODIFICATIONS AT 5313
EXCELSIOR BOULEVARD
FINDINGS
WHEREAS, Hoigaard’s Inc. has made application to the City Council for an amendment
to an existing special permit under Section 36-33 of the St. Louis Park Ordinance Code to allow a
building expansion and parking modifications at 5313 Excelsior Boulevard within a C-2 General
Commercial Zoning District having the following legal description:
That part of the Northwest Quarter of Section 7, Township 28, Range 24:
Commencing at the point of intersection of the centerline of Excelsior Avenue and the
centerline of Garfield Avenue (now known as Wooddale Avenue in St. Louis Park); thence
Northeasterly along the centerline of Excelsior Avenue 901 feet; thence Southeasterly at
right angles to said centerline of Excelsior Avenue to the Northwesterly line of Block 1,
“Brookview Addition, Hennepin County, Minn.”; thence Southwesterly along the
Northwesterly line of said Block 1 and the extension of said Northwesterly line to the
centerline of said Wooddale Avenue to the point of beginning. Abstract
WHEREAS, the City Council has considered the information related to Planning Case Nos.
92-54-SP and 06-19-CUP and the effect of the proposed building expansion and parking
modifications on the health, safety, and welfare of the occupants of the surrounding lands, existing
and anticipated traffic conditions, the effect on values of properties in the surrounding area and the
effect of the use on the Comprehensive Plan; and compliance with the intent of the Zoning
Ordinance; and
WHEREAS, a special permit was issued regarding the subject property pursuant to
Resolution No. 92-160 of the St. Louis Park City Council dated October 20, 1992 which contained
conditions applicable to said property; and
WHEREAS, due to changed circumstances, amendments to those conditions are now
necessary, requiring the amendment of that special permit; and
WHEREAS, it is the intent of this resolution to continue and restate the conditions of the
permit granted by Resolution No. 92-160, to add the amendments now required, and to consolidate
all conditions applicable to the subject property in this resolution;
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 7
WHEREAS, the contents of Case Nos. 92-54-SP and 06-29-CUP are hereby entered into
and made part of the public hearing record and the record of decision for this case.
CONCLUSION
NOW THEREFORE BE IT RESOLVED that Resolution No. 92-160 (document not
filed) is hereby restated and amended by this resolution which continues and amends a special
permit to the subject property for the purposes of permitting a building expansion and parking
modifications within the C-2 General Commercial District at the location described above based on
the following conditions:
1. That the site be developed, used and maintained in accordance with Exhibit A – Site
Plan; Exhibit B – Elevation Plan; Exhibit C – Elevation Plan; Exhibit D – Elevation
Plan; and Exhibit E – Landscape Plan subject to the following.
2. That all utilities serving the site be placed underground on or before October 15,
1991. (Condition No. 2 rescinded. See Condition No. 20.)
3. That all trash be stored in six outside storage areas which have fully enclosed walls
and a gate with the location of the storage areas to be adjacent to the major users.
4. No merchandise, truck trailers or other materials or equipment be stored out of doors,
except by allowable special permit.
5. That there be no more than 12,000 square feet of Class II and Class III restaurant on
the site and such restaurants being subject to provisions and approval processes as
provided in the adopted Zoning, Urban Renewal, and PUD Plans of the City.
6. That all lighting be directed perpendicular to the ground and that no direct rays be
visible from outside the property boundaries.
7. Signage be consistent with the following:
a. All exterior signs shall be surface-mounted, except for a single name plate
sign which may be free-standing.
b. Signs shall be limited to letters designating the store name but shall not
include the name of items, goods, product or service lines for sale.
c. Exterior signs shall be installed at the front of each bay. Exterior signs may
be located on the laminated beams of the canopy and/or under the canopy
where customer entrances open onto the sidewalk.
d. The sign shall be located within the limits of each store front. In no case shall
any one sign exceed 100 square feet of maximum aggregate (total sign) area
for store fronts which have less than 125 lineal feet of frontage facing
Excelsior Boulevard, and store fronts with an excess of 125 lineal feet of
store front facing Excelsior Boulevard shall not have any one sign area
exceeding 150 square feet of maximum aggregate (total sign) area, except for
a name plate sign and except that shopping centers may have wall signs not to
exceed five percent of the total wall area on which the sign is placed; each
shopping center tenant shall be allowed at least 60 square feet of wall sign
area.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 8
8. That the existing transit stop including landscaping and other design elements not be
eliminated or infringed upon as included in the plan.
9. The applicants cooperate with the City and other property owners in extension of the
plaza walkway on the east end of Miracle Mile to St. Louis Park Medical Clinic
property. Implementation of the plan would not require removal of the driveway
between Miracle Mile and B. Dalton Book Store.
10. That all improvements, except as otherwise indicated, be completed by October 15,
1981 including landscaping, striping, asphalt improvements, etc.
11. That the use of the so-called “Rutherford Building” (the property located at 4995
Excelsior Boulevard) be for a food store containing a gross floor area of 4,500 square
feet and 2,800 square feet will be retail sales subject to the following conditions:
a. That the use shall terminate at such time that the parking on the east side of
the Rutherford Building is lost and that the agreement for the parking area is subject
to approval by the City Attorney prior to issuing a building permit.
b. The 51 parking spaces located on the property abutting the east property line
of 4995 Excelsior Boulevard shall be for a non-exclusive parking use for said
grocery store.
c. That all trash be stored in an outside storage area which has fully enclosed
walls and an opaque gate, both of which are at least seven feet high.
d. All improvement, including dedication, pedestrian way, construction,
landscaping, and parking shall be completed by October 15, 1982.
12. That a bomanite or brick walkway be constructed along the rear of the building from
the east property line to the west property line.
a. That the bomanite or brick walkway shall be completed by October 15, 1982.
13. That Condition 7d is hereby further modified to include an additional exception as
follows: the so-called “Rutherford Building” (the property located at 4995 Excelsior
Boulevard) shall be allowed one nameplate sign located on the north wall not to
exceed 140 square feet and a secondary nameplate sign to be located at the east entry
door not to exceed 26 square feet.
14. That modifications to the food store at 4995 Excelsior Boulevard be allowed subject
to the following conditions:
a. That an entry/vestibule be permitted on the east side of the building with
adjustments in the pedestrian way to accommodate the design as shown on
Exhibit F – Entry and Exhibit G – Trash Expansion.
b. That a two-faced free standing sign no more than six feet high and containing
no more than twenty square feet per face be allowed provided no portion of
said sign is closer than ten feet from the north lot line and provided quality
materials are used consistent with the architectural control provisions and
PUD provisions applicable for the Excelsior Boulevard Redevelopment
District.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 9
15. That Condition No. 12 is hereby modified to extend the completion date of the
bomanite or brick walkway to August 1, 1983.
16. Requirements in Conditions 9, 11d, 12a, and 15 related to construction of a
pedestrian way are hereby deleted.
17. The trash enclosure, as shown on Exhibit G – Trash Expansion, in Condition No.
14a, may be painted instead of using stucco.
18. Signage for the property located at 4995 Excelsior Boulevard shall be limited to an
aggregate square footage of 154 square feet, subject to the following:
a. The free-standing sign shall have a maximum height no greater than 14 feet
and the sign face shall not exceed 64 square feet in area, and further provided
that no part of the free-standing sign shall be closer than 20 feet from the
northerly property line.
b. The illegal sign at the entrance of the property shall be removed prior to the
issuance of a sign permit for the free-standing sign.
19. Condition No. 5 is hereby amended to read as follows:
There shall be no more than 9,000 gross square feet of Class II and Class III
restaurant and 3,000 gross square feet of Class IV restaurant on the site and such
restaurants being subject to provisions and approval processes as provided in the
adopted Zoning, Urban Renewal, and PUD Plans of the City.
20. The special permit shall be amended pursuant to Planning Case No. 92-54-SP to
modify Condition No. 2 on underground utilities as follows:
a. Condition No. 2 above is hereby rescinded.
b. All utilities serving the site shall be placed underground, at the property
owner’s expense, within five years following the date upon which the City of
St. Louis Park adopts a Capital Improvement Program which includes the
undergrounding of electric power lines which serve the Miracle Mile
Shopping Center.
21. The special permit shall be amended on May 15, 2006 to incorporate all of the preceding
conditions and add the following conditions:
a. The site shall be developed, used and maintained in accordance with exhibits
incorporated by reference herein.
b. Prior to starting any site work, the following conditions shall be met:
1. Assent form and official exhibits must be signed by applicant and owner.
2. A preconstruction conference shall be held with the appropriate development,
construction and city representatives.
3. All necessary permits must be obtained.
4. Building materials samples & colors must be submitted to and approved by
Zoning Administrator.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 10
c. The applicant shall comply with the following conditions during construction:
1. All City noise ordinances shall be complied with, including that there be no
construction activity between the hours of 10 p.m. and 7 a.m.
2. Loud equipment shall be kept as far as possible from residences at all times.
3. The site shall be kept free of dust and debris that could blow onto neighboring
properties.
4. Public streets shall be maintained free of dirt and shall be cleaned as necessary.
5. The Zoning Administrator may impose additional conditions if it becomes
necessary in order to mitigate the impact of construction on surrounding
properties.
d. To the extent reasonable, the applicant shall modify the parking lot entrances, exits,
and signage in accordance with the attached traffic study completed by SRF
Consulting.
In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per
violation of any condition of this approval.
Under the Zoning Ordinance, this permit shall be revoked and cancelled if the building or structure
for which the conditional use permit is granted is removed.
Assent form and official exhibits must be signed by applicant (or applicant and owner if applicant is
different from owner) prior to issuance of building permit.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 11
VARIANCE
RESOLUTION NO. 06-_____
A RESOLUTION GRANTING A VARIANCE FROM SECTION 36-362 OF THE
ORDINANCE CODE RELATING TO ZONING TO PERMIT THE CONSTRUCTION OF A
SIGN UPON A TOWER FOR PROPERTY LOCATED IN THE C-2 GENERAL
COMMERCIAL DISTRICT AT 5313 EXCELSIOR BOULEVARD
BE IT RESOLVED BY the City Council of St. Louis Park, Minnesota:
FINDINGS
1. Hoigaard’s Inc. has applied for a variance from Section 36-362 of the Ordinance Code
relating to zoning to permit the construction of a sign upon a tower for property located in
the C-2 General Commercial District at the following location, to-wit:
That part of the Northwest Quarter of Section 7, Township 28, Range 24:
Commencing at the point of intersection of the centerline of Excelsior Avenue and
the centerline of Garfield Avenue (now known as Wooddale Avenue in St. Louis
Park); thence Northeasterly along the centerline of Excelsior Avenue 901 feet; thence
Southeasterly at right angles to said centerline of Excelsior Avenue to the
Northwesterly line of Block 1, “Brookview Addition, Hennepin County, Minn.”;
thence Southwesterly along the Northwesterly line of said Block 1 and the extension
of said Northwesterly line to the centerline of said Wooddale Avenue to the point of
beginning. Abstract
2. On April 26, 2006, the Planning Commission held a public hearing, received testimony from
the public, discussed the application and moved approval of a variance to permit the
construction of a tower sign.
3. The Planning Commission has considered the effect of the proposed variance upon the
health, safety and welfare of the community, existing and anticipated traffic conditions, light
and air, danger of fire, risk to the public safety, the effect on values of property in the
surrounding area, and the effect of the proposed variance upon the Comprehensive Plan.
4. Because of conditions on the subject property and surrounding property, it is possible to use
the property in such a way that the proposed variance will not impair an adequate supply of
light and air to the adjacent property, unreasonably increase the congestion in the public
streets, increase the danger of fire, endanger the public safety, unreasonably diminish or
impair health, safety, comfort, morals, or in any other respect be contrary to the intent of the
Zoning Ordinance and the Comprehensive Plan.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 12
5. The special conditions applying to the structure or land in question are unique to the
particular request by the applicant relating to an existing tower sign planned for demolition,
and cannot be generally applied to other land or structures in the district in which such land
is located.
6. The granting of the application is necessary for the preservation and enjoyment of a
substantial property right of the applicant. It will not merely serve as a convenience to the
applicant, but is necessary to alleviate demonstrable hardship or difficulty.
7. The existing Hoigaard’s tower, formerly an incinerator owned by the City, has been used as
a tower sign since the early 1970s. The incinerator was built in 1956. Due to environmental
contamination and redevelopment, the tower and tower sign will be removed as per Planning
Case Files 05-61-S and 05-62-PUD. The granting of the application is necessary to replicate
the loss of this community symbol.
8. The contents of Planning Case File 06-35-VAR are hereby entered into and made part of the
public hearing record and the record of decision of this case.
9. Under the Zoning Ordinance, this variance shall be deemed to be abandoned, revoked, or
canceled if the holder shall fail to complete the work on or before one year after the variance
is granted.
10. Under the Zoning Ordinance, this variance shall be revoked and cancelled if the building or
structure for which the variance is granted is removed.
CONCLUSION
The application for the variance to permit the construction of a tower sign is granted based upon the
finding(s) set forth above.
The variance provides for the construction of a sign upon one side of the tower only. Per the official
exhibits, the variance is for the construction of a sign reading “Hoigaard’s”, which shall be placed
upon the north face of the tower only.
The City Clerk is instructed to record certified copies of this resolution in the Office of the
Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 13
VARIANCE
RESOLUTION OF DENIAL
RESOLUTION NO. 06-____
A RESOLUTION OF FINDING REGARDING THE APPLICATION OF HOIGAARD’S
INC. FOR A VARIANCE UNDER SECTION 36-362 OF THE ST. LOUIS PARK
ORDINANCE CODE RELATING TO ZONING TO PERMIT THE CONSTRUCTION OF A
SIGN UPON A TOWER FOR PROPERTY LOCATED IN THE C-2 GENERAL
COMMERCIAL DISTRICT AT 5313 EXCELSIOR BOULEVARD
BE IT RESOLVED BY the City Council of St. Louis Park, Minnesota
FINDINGS
1. On March 31, 2006, Hoigaard’s Inc. filed an application seeking a variance to permit the
construction of a sign upon a tower for property located in the C-2 District, at 5313
Excelsior Boulevard for the following legal description, to wit:
That part of the Northwest Quarter of Section 7, Township 28, Range 24:
Commencing at the point of intersection of the centerline of Excelsior Avenue and
the centerline of Garfield Avenue (now known as Wooddale Avenue in St. Louis
Park); thence Northeasterly along the centerline of Excelsior Avenue 901 feet; thence
Southeasterly at right angles to said centerline of Excelsior Avenue to the
Northwesterly line of Block 1, “Brookview Addition, Hennepin County, Minn.”;
thence Southwesterly along the Northwesterly line of said Block 1 and the extension
of said Northwesterly line to the centerline of said Wooddale Avenue to the point of
beginning. Abstract
2. On April 26, 2006, the Planning Commission held a public hearing, received testimony from
the public, discussed the application and moved approval of a variance to permit the
construction of a tower sign.
3. Based on the testimony, evidence presented, and files and records, the City Council makes
the following findings:
a. The requested variance does not meet the requirements of Section 36-33(d) of the
Zoning Ordinance necessary to be met for the Board of Zoning Appeals to grant variances.
There are no factors related to the shape, size or other extraordinary conditions on the lot
which prevent a reasonable use.
b. Granting of the requested variance is not necessary for the preservation and
enjoyment of a substantial property right. The property has had a reasonable use in the past
and the current proposal by the applicant, with the exception of this variance, continues that
reasonable use.
St. Louis Park Council Meeting
Item: 051506 - 8e - Hoigaard's At Miracle Mile Amend Spec Permit & Variance
Page 14
c. Granting of the requested variance would be contrary to the intent and provisions of
the Zoning Ordinance since, if granted, it would permit the construction of a sign upon a
tower, specifically prohibited by Section 36-362 of the Zoning Ordinance.
d. There are no demonstrable or undue hardships under the terms of the Zoning
Ordinance or Minnesota Statue, and therefore, conditions necessary for granting the
requested variance do not exist.
4. The contents of Planning Case File 06-35-VAR are hereby entered into and made part of the
public hearing record and the record of decision for this case.
CONCLUSION
The applicant’s request for a variance to permit the construction of a sign upon a tower is hereby
denied based on the findings set forth above.
Reviewed for Administration: Adopted by the City Council May 15 , 2006
City Manager Mayor
Attest:
City Clerk
St. Louis Park Council Meeting
Item: 051506 - 8f - Consent Motor Vehicle Sales Tax (MVST) Resolution Of Support
Page 1
8f. Motion to approve resolution supporting the passage of proposed amendment to the
Minnesota Constitution dedicating the Motor Vehicle Sales Tax to transportation.
BACKGROUND:
During the 2005 legislative session, the state legislature passed a constitutional amendment that,
if approved by voters, would phase-in 100% of the motor vehicle sales tax (MVST) to fund
transportation. MSVT is generated by new and used motor vehicle sales. Currently, MVST
funds are part of the state’s general fund.
If approved by voters, starting in 2007, 63.75% of the MVST would be dedicated to
transportation, and by 2011, 100% of the MVST would be dedicated to highways and transit.
Within the allocated transfer, a minimum of 40% of the MVST apportioned to transit would be
dedicated to transit, and a maximum of 60% could be spent on road projects. Minnesotans for
Better Transit estimate that the MVST transfer could result in as much as $300 million annually
for transportation
The League of Minnesota Cities (LMC) is asking cities to pass resolutions in support of the
MSVT transfer. The City Council reviewed and discussed the LMC resolution at study sessions
on April 24 and May 8. Based on direction from Council, staff made a few minor changes to the
LMC’s sample resolution.
If the MVST transfer amendment is approved by voters, the city of St. Louis Park would directly
benefit, specifically it would allocate dollars for the Trunk Highway 100 full build project
scheduled for 2014. Future benefits could include some funding for light rail on the Southwest
Transit Corridor.
Attachments: Resolution supporting the Motor Vehicle Sales Tax (MVST) transfer to
transportation
Prepared By: Marcia Honold, Management Assistant
Approved By: Nancy Gohman, Deputy City Manager
St. Louis Park Council Meeting
Item: 051506 - 8f - Consent Motor Vehicle Sales Tax (MVST) Resolution Of Support
Page 2
RESOLUTION NO. 06-087
RESOLUTION SUPPORTING PASSAGE OF PROPOSED AMENDMENT TO THE
MINNESOTA CONSTITUTION DEDICATING THE MOTOR VEHICLE SALES TAX
TO TRANSPORTATION
WHEREAS, Minnesota’s transportation infrastructure forms the backbone of the state’s
economy and has a direct impact on future economic development; and
WHEREAS, funding for highway and transit systems in Minnesota has remained
stagnant and is failing to keep pace with growing population and growing demands; and
WHEREAS, local governments throughout the state are struggling to maintain local
transportation systems while the state’s gas tax has not been increased since 1988 and transit
budgets have been cut in recent years; and
WHEREAS, Highway 100 and related bridges and infrastructure are in urgent need of
significant upgrades and improvements; however, these much needed improvements have not
been completed due to shortfalls in state transportation funding; and
WHEREAS, St. Louis Park supports the implementation of light rail transit on the
Southwest Corridor and the construction of light rail in the Southwest Corridor could be
positively impacted by additional dedicated transportation funding; and
WHEREAS, the Minnesota Legislature has repeatedly turned to revenue from motor
vehicle sales tax, which has been viewed as user fee revenue, in order to fund both highway and
transit systems including the current dedication of 54% of motor vehicle sales tax for
transportation purposes; and
WHEREAS, the legislature passed a proposed constitutional amendment during the 2005
Legislative Session that would appear on the ballot November 7, 2006 asking voters if the
remaining 46% of motor vehicle sales tax revenue currently used for other purposes should be
used for highways and transit systems; and
WHEREAS, passage of this amendment would mean an increase in stable revenue for
highway and transit systems throughout the state that would rise to approximately $300 million
per year once the transfer of revenue is fully phased-in by 2011.
St. Louis Park Council Meeting
Item: 051506 - 8f - Consent Motor Vehicle Sales Tax (MVST) Resolution Of Support
Page 3
NOW THEREFORE, BE IT RESOLVED THAT
1) The St. Louis Park City Council supports the passage of the amendment to the
Minnesota Constitution (dedicating all of the motor vehicle sales tax revenue to
transportation with at least 40% of the revenue for public transit assistance and not more
than 60% of the revenue for highway purposes) as it is felt the additional funds dedicated
to transportation will result in specific positive benefits to St. Louis Park including, but
not limited to, improvements to Highway 100 and the implementation of light rail on the
Southwest Transit Corridor.
2) The City Council urges the Governor and state Legislature to provide replacement
funding to the state’s General Fund as a result of the constitutional amendments
redirection of motor vehicle sales tax dollars from the General Fund to transportation and
transit purposes.
Reviewed for Administration: Adopted by the City Council May 15, 2006
City Manager Mayor
Attest:
City Clerk