HomeMy WebLinkAbout2019/03/18 - ADMIN - Minutes - City Council - Study Session Official minutes
City council special study session
St. Louis Park, Minnesota
March 18, 2019
The meeting convened at 6:00 p.m.
Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Rachel Harris, Anne
Mavity, Thom Miller, and Margaret Rog.
Staff present: City Manager (Mr. Harmening), Deputy City Manager/Human Resources Director
(Ms. Deno), Racial Equity Manager (Ms. Sojourner), Communications Manager (Ms. Smith),
Management Assistant (Ms. Carrillo Perez), and Recording Secretary (Ms. Pappas).
Guest: Kay Adams, Consultant; Will Anderson & Ben Grannon, Sherman and Associates.
1. Council norms discussion
Consultant Kay Adams facilitated the discussion on the norms that were identified at the
January workshop by the city council. The four areas discussed included:
Media interactions
Being public with positions/opinions
Going out after meetings
Giving staff at least 5 hours to respond to questions
After the discussion, the council was in consensus on the following statements:
Councilmembers shall speak respectfully about each other and the city council itself in
public communications. (This statement will replace the first and second bullets above)
Councilmembers will seek opportunities to deepen personal relationships with one
another. (This statement will replace the third bullet above)
Staff will be given at least five hours to respond to questions.
The study session adjourned at 7:25 p.m. to go into the regular city council meeting.
The study session reconvened at 8:20 p.m. for further discussion.
2. Bridge loan to Sherman Associates for acquisition of former Vision Bank property
Ms. Barton explained the issue. She stated the city and EDA have entered into a preliminary
development agreement with Sherman Associates for redevelopment of the area surrounding
the future SWLRT Beltline Station. She noted in an effort to facilitate timely acquisition of the
former Vision Bank property located in the area and secure expanded development rights for
the property, Sherman has secured a purchase agreement with the current owner in the
amount of $3.642 million. Closing would occur on April 5, 2019, prior to the condemnation
proceedings by the Met Council for a transit easement for a 268 stall park and ride facility . The
condemnation hearing is scheduled for April 10, 2019.
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Ms. Barton added by acquiring the property prior to the condemnation, Sherman will hold the
underlying fee title to the property after condemnation, enabling Sherman and Met Council to
work cooperatively to refine the transit easement area, allowing for expanded development of
the property beyond what is needed for the Met Council’s park and ride facility . Given the short
timeline, Sherman is requesting the EDA provide a short-term bridge loan of $3.1 million for a
portion of the acquisition cost. The loan would be secured by a first mortgage on the property
and would bear a fair-market interest rate. She stated it is expected Sherman would repay a
majority of the principal within 90-120 days after the condemnation is complete in late May,
when Met Council pays Sherman for the transit easement. Sherman is also contributing
approximately $800,000 in equity towards the acquisition, including closing costs.
Ms. Barton stated if the council supports the bridge loan to Sherman, staff will move ahead.
Councilmember Harris stated it seems to be in the city’s interest to pursue this.
Councilmember Rog asked what the property is valued at. Ms. Barton stated appraisals show
it’s valued anywhere from $1 million to $4 million.
Councilmember Rog asked if there are any unintended impacts with the bridge loan, or on the
city’s capacity to do other projects.
Mr. Harmening stated this would not impact the city’s finances as the EDA has $12 million in
cash and part of this would be used for the loan. He added the city would still have flexibility to
do other things, if needed.
Councilmember Mavity stated she appreciates the work of staff on this, adding she has been
involved in the planning and development on Beltline for over 10 years. She stated, however,
she will recuse herself from any votes on this as Mr. Sherman is on her board .
Councilmember Hallfin asked what the city paid for the EDA owned parcels in the
redevelopment area. Mr. Hunt stated $2.6 million, for the two 3-acre plots of land.
Councilmember Hallfin stated staff should move forward with the bridge loan with Sherman
Associates, so as to move forward with the vision for this area that has been discussed over the
years.
Councilmember Miller added he is also in favor of the bridge loan.
Mayor Spano asked if the city has done a bridge loan like this in the past. Mr. Hunt stated not
quite like this, noting the city does have a mortgage with PLACE.
Mayor Spano stated he is supportive of the request, but instructed staff they need to make it
clear on any future projects, that this is an exception, and not the rule – to an appropriate level.
Mayor Spano asked the Sherman and Associate representatives if they see any issue with
repayment of the bridge loan. Mr. Anderson and Mr. Grannon stated no, they foresee no
issues.
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It was the consensus of council to have staff pursue the bridge loan with Sherman and
Associates.
The meeting adjourned at 8:45 p.m.
______________________________________ ______________________________________
Melissa Kennedy, City Clerk Jake Spano, Mayor
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