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HomeMy WebLinkAbout2021/05/10 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA MAY 10, 2021 All meetings of the St. Louis Park City Council will be conducted by telephone or other electronic means starting March 30, 2020, and until further notice. This is in accordance with the local emergency declaration issued by the city council, in response to the coronavirus (COVID-19) pandemic and Governor Walz's “Stay Safe MN” executive order 20-056. Some or all members of the St. Louis Park City Council will participate in the May 10, 2021 city council joint study session with the St. Louis Park Human Rights Commission. Meeting participants will meet by electronic device or phone rather than by being personally present at the city council's regular meeting place at 5005 Minnetonka Blvd. Visit bit.ly/slpccagendas to view the agenda and reports. Members of the public can monitor the meeting by video and audio at bit.ly/watchslpcouncil or by calling +1.312.535.8110 and using access code 372 106 61 for audio only. Cisco Webex will be used to conduct videoconference meetings of the city council, with council members and staff participating from multiple locations. 6:30 p.m. – STUDY SESSION Discussion items 1. 6:30 p.m. Human Rights Commission 2021 workplan review 2. 7:30 p.m. Preliminary levy/budget discussion 3. 8:30 p.m. Future study session agenda planning and prioritization 8:35 p.m. Communications/updates (verbal) 8:40 p.m. Adjourn Written reports 4. Inclusionary housing policy proposed amendments 5. Perspectives update 6. Environment and Sustainability Commission (ESC) Environmental Justice report 7. Completion of Westwood Hills Nature Center Project The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952-924-2525. Meeting: Study session Meeting date: May 10, 2021 Discussion item: 1 Executive summary Title: Human Rights Commission 2021 workplan review Recommended action: Council to review the workplan and provide comments to HRC commissioners. Policy consideration: •Does the human rights commission workplan and upcoming Summer of Action event align with council goals and priorities? •How can the HRC better support and advise the city council? Summary: The human rights commission respectfully submit their annual report and 2021 workplan to city council for review and discussion. The workplan will be the focus of the council discussion with the commission. The chair will provide a brief presentation of the work plan and currently planned summer events. Financial or budget considerations: Not applicable. Strategic priority consideration: •St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. •St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion Human Rights Commission 2021 workplan 2020 annual report Summer of Action overview Summer of Action Artwalk call for artists Prepared by: Darius Gray, community organizer Reviewed by: Maria Solano, interim administrative services officer Approved by: Tom Harmening, city manager Study session meeting of May 10, 2021 (Item No. 1) Page 2 Title: Human Rights Commission 2021 workplan review Discussion Background: The St. Louis Park Human Rights Commission is a 10-member advisory body composed of 10 citizen volunteers appointed by the city council. The current make-up of the Human Rights Commission is as follows: Virginia Mancini (Chair) Astein Osei (Vice Chair & school representative), Andre Barajas (youth member), Yvette Baudelaire, Paul Baudhuin, Emily Buchholz, Jamie Chismar, Maria Eustaquio, Li Livdahl (youth member) and Avi Olitzky. Commissioners have an interest in being more public facing, therefore last year they hosted their first event in several years, race equity 101. Efforts were halted due to the COVID-19 global health pandemic. This resulted in a brief hiatus of meetings from March to June 2020. When meetings resumed, the commission began meeting regularly for their monthly meeting virtually. Upon the resuming of HRC meetings the commission had to navigate how to move their mission and vision forward in the time of the pandemic. In addition to focusing on the execution of their mission and vision, there was a desire to focus on more external community engagement and partnership building. To achieve this end, the commission pivoted to supporting others in their work by aiding in pop up events that focused on mask distributions, voter registration and census completion. In an effort to continue the work that was underway right before the pandemic, the commission is focused on the internal and external structures of the HRC. Internal focuses for the HRC can be outlined as: •Review and update bylaws and make recommendations for revision to city council •Review HRC materials and website •Review city code and make recommendations for revision to city council •Strengthen the relationship and partnership with city council to develop greater understanding of how HRC can better support and advise city council •Consider and discus how the HRC can support council in making public statements •Seek to stay informed about current events to best support and advise city council External focuses for HRC can be outlined as: •Plan and execute Summer of Action series •Build and strengthen partnerships with community members, community organizations, local business, other commissions, and neighborhood associations •Better understand community needs and assess what community wants to see from HRC over the next few years •Seek to stay informed about current events to best support community. The items listed above will help guide the HRC’s work over the next year and are reflected in the commission’s 2021 workplan. Board and Commission Annual Workplan 1 Work Plan Template│ Human Rights Commission Time Frame Initiative Strategic Priorities Purpose (see page 2 for definitions) Outcome (fill in after completed) Whole of 2021 Continue to assess what the community wants from the HRC & continue to foster cross-organization partnerships that meet the community’s needs. ☐New Initiative ☒Continued Initiative ☐Ongoing Responsibility ☒1 ☐ 2 ☐ 3 ☐4 ☒ 5 ☐N/A ☒Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) Whole of 2021 Review and revise bylaws. And review city code and make recommendations for updates. ☐New Initiative ☒Continued Initiative ☐Ongoing Responsibility ☐1 ☐ 2 ☐ 3 ☐4 ☒ 5 ☐N/A ☒Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) Whole of 2021 Review and revise the Human Rights Commission materials, including takeaways and website. ☐New Initiative ☒Continued Initiative ☐Ongoing Responsibility ☒1 ☐ 2 ☐ 3 ☐4 ☒ 5 ☐N/A ☒Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) Whole of 2021 Consider and discus how the HRC can support Council in making public statements. ☒New Initiative ☐Continued Initiative ☐Ongoing Responsibility ☒1 ☐ 2 ☐ 3 ☐ 4 ☐ 5 ☐N/A ☒Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) Spring/Summer & Fall of 2021 Plan and execute Summer of Action series of events. ☐New Initiative ☐Continued Initiative ☐Ongoing Responsibility ☐1 ☐ 2 ☐ 3 ☐ 4 ☐ 5 ☐N/A ☒Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested) ☐Formal Recommendation (council requested) Page 3 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review 2 City of St. Louis Park Strategic Priorities 1.St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. 2.St. Louis Park is committed to continue to lead in environmental stewardship. 3.St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. 4.St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. 5.St. Louis Park is committed to creating opportunities to build social capital through community engagement OR Other Purpose: definitions Board and Commission Annual Workplan Page 4 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review 3 Modifications: Work plans may be modified, to add or delete items, in one of three ways: •Work plans can be modified by mutual agreement during a joint work session. •If immediate approval is important, the board or commission can work with their staff liaison to present a modified work plan for city council approval at a council meeting. •The city council can direct a change to the work plan at their discretion. Parking Lot •Project initiated by the board or commission Commission Initiated Project •Project tasked to a board or commission by the city council Council Initiated Project •Initiated by the city council •Board and commission will study a specific issue or topic and report its findings or comments to the city council in writing •No direct action is taken by the board/commission Report Findings •Initiated by the city council •Board and commission will study a specific issue or topic and makes a formal recommendation to the city council on what action to take •A recommendation requires a majoirty of the commissioners' support Formal Recommandation Board and Commission Annual Workplan Page 5 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review 4 Items that are being considered by the board/commission but not proposed in the annual work plan. Council approval is needed if the board/commission decides they would like to move forward with an initiative. Initiative Comments: Board and Commission Annual Workplan Page 6 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review 2020 Annual Report Board or Commission: Human Rights Commission I.2020 Goals and Key Initiatives: Provide a progress report on your 2020 goals and list the most significant activities undertaken in 2020. •February 2020. HRC hosted our first partnership-building event at the Treehouse. Alicia Sojourner spoke and then we had a robust community discussion about racial equity work in St. Louis Park. The individual Human Rights Commissioners made good connections with strategic community partners who attended the event. •March – June 2020. HRC was on hiatus. •October 2020. HRC co-hosted a Birchwood community event to register voters, plug the census, and hand out masks and other essential supplies. •October 2020. Darius and several HRC members hosted pop-up voter registration and census engagement events. •September 2020 – December 2020. Several HRC members represented the HRC on a cross-commission committee (along with members from the Multicultural Advisory Committee and Police Advisory Commission) to review and update the St. Louis Park Police Use of Force Policy. II.2021 Goals: List your board/commission’s most important goals (up to 3) for 2021. These goals should be statements that reflect the board/commission’s highest priorities, which may or may not change from year-to-year. For each goal, list 1-2 key initiatives or activities that the Board/Commission will be working on in 20 21 that will help make progress toward that particular goal. a.Goal 1 – Continue to build partnerships & collaborate with other community organizations. Page 7 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review 2020 Annual Report Board or Commission: Human Rights Commission •Initiative 1 – Continue to connect with other community organizations about what they’re hearing from and how they’re serving our communities. •Initiative 2 – Create and/or foster partnerships that are collaborative, dynamic, and mutually beneficial. Whenever possible uplift and learn from the work, successes, and learnings of partner organizations. •Initiative 3 – Focus on gathering data from the community and meeting stated needs, or encouraging City to meet those needs when applicable. b.Goal 2 – Review and revise the HRC materials, including takeaways and the website . •Initiative 1 – Compile and review existing HRC materials. •Initiative 2 – Determine which types of materials the HRC would like to use. •Initiative 3 – Create or revise materials as needed. •Initiative 4 – Update HRC bylaws and City code. c.Goal 3 – Plan and execute Summer of Action series of events. •Initiative 1 – Create an outline of events and potential partners to aid in those events. •Initiative 2 – build and strengthen partnerships and uplift work of others throughout Summer of Action. •Initiative 3 – Host series of events around various topics focusing on SLP, especially uplifting social justice, community engagement and art. III.Race Equity and Inclusion: How may you continue to incorporate or promote race equity and inclusion in the key initiatives/activities identified in above? The mission statement of HRC is to support community and St. Louis Park’s strategic priority of racial equity and inclusion. Therefore, HRC sees incorporating racial equity as fundamental to HRC’s current and future work. Continuing our work from 2020, our intention is to build partnerships that enable HRC to easily support racial equity in its own actions and support it indirectly via support of others working towards it. Page 8 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review 2020 Annual Report Board or Commission: Human Rights Commission IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities? The HRC’s work can impact most if not all of the strategic priorities in some way. The HRC’s goals and initiatives are most specifically geared toward building social capital and uplifting racial equity within St. Louis Park. Page 9 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review Human Rights Commission Summer of Action Overview Summer of Action Kick Off: George Floyd Memorial Walk June 6, 6 – 8:30 p.m. Veterans’ Memorial Amphitheater, 3700 Monterey Drive The St. Louis Park Human Rights Commission invites you to join the George Floyd memorial walk, which will include speakers, music, reflective conversation, and family friendly arts activities. Schedule of events: •6 – 7 p.m. Tabling, art activities, food trucks •7 – 8:15 p.m. Program and walk •8:15 – 8:30 p.m. Wrap up This event will kick off the human rights commission summer of action series, with monthly citywide events and neighborhood activities focused on race equity and activism. Education & Race Equity (Date TBD) •Community Panel Discussion What changes are happening in SLP schools? •Community participants will work together to create curriculum and brainstorm ideas for additional projects in the schools Policing & Race Equity & Community Policing (Date TBD) •Panel replicating forum on community policing held late Winter 2021 Food Justice/Climate/ environmental Justice (Mid-summer) Partner with SEEDS Feeds and Environment and Sustainability Commission •Tree planting •Gardening workshop Social Safety Net/Poverty (Date TBD) •Panel with local nonprofits addressing various economic based issues. Religion and Race Equity in SLP (Date TBD) •Panel with local religious leaders to discuss their work regarding race equity and social justice. •What were religious institutions doing during Civil Rights? History of Social Justice in SLP and the progression to where we are now? (Date TBD) •Content and focus still being developed. Page 10 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review Housing & Just Deeds (Late Summer) •Presentation from Mapping Prejudice Project •Implement removal of language from deeds •Housing staff to share current and future programs and projects •Community Housing Team present their work Page 11 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review St. Louis Park Human Rights Commission - Summer of Action Social Justice and Racial Equity Art-Walk - Call for Artists Artists and community members are invited to create an artwork for the Human Rights Commission Summer of Action Art-Walk around the themes of Social Justice and Racial Equity: reflection, memorial, healing, and commitment to action. Participants must create the work on a provided 2'x2' piece of plywood—acrylic paints and brushes will be provided, or you may use your own materials, provided they are able to withstand rain and wind. Artwork will be displayed along the trail at Wolfe Park beginning June 6 at the kickoff event of the HRC Summer of Action, and left on display for one month. Up to 30 participants will be selected to participate—participants who identify as Black, Indigenous, or people of color will be given priority. We welcome artwork from people of all ages as well as families working together, and recognize that understanding and expression of the project themes will vary based on age and lived experience. Click Here to Submit Your Interest in Participating as an Artist This project is organized by the City of St. Louis Park's Human Rights Commission and St. Louis Park Friends of the Arts, for display in public parks. As such, artwork with words or content that is profane, violent, or overtly political may not be displayed. If you have questions about whether your design meets these criteria, please contact us before beginning your work. The Summer of Action is a summer-long series of events to foster social capital and community engagement with particular focus on race equity and social justice-oriented topics. This series will provide community members opportunities to deepen knowledge and build capacity by taking actions on topics that are important to them. The Summer of Action will create a more engaged, informed and inclusive community in St. Louis Park. Eligibility:Anyone who has a meaningful connection to St. Louis Park. Materials Pick-up and Completed Artwork Drop-off Dates: Materials pick-up and completed artwork drop-off are at the SLP Rec Center parking lot, located at 3700 Monterey Drive. Participants who are unable to pick-up or drop-off at the scheduled times or location will have the opportunity to arrange alternate pick-up and drop-off methods. ●Materials Pick-up:Tuesday, May 11, 4:30-6pm / OR Saturday, May 15, 10am-noon ●Completed Artwork Drop-off: Saturday, May 29, 10am-noon / OR Tuesday, June 1, 4:30-6pm Contact: Jamie Marshall,jamie@slpfota.org SLP Friends of the Arts, Executive Director Darius Gray,dgray@stlouispark.org City of St. Louis Park, Community Organizer Page 12 Study session meeting of May 10, 2021 (Item No. 1) Title: Human Rights Commission 2021 workplan review Meeting: Study session Meeting date: May 10, 2021 Discussion item: 2 Executive summary Title: Preliminary levy/budget discussion Recommended action: No formal action required. This report is to assist with the study session discussion about the 2022 preliminary budget and levy. Staff is preparing a presentation that goes through some budget and levy information for 2022 and beyond. Staff is looking for guidance on preliminary levy amounts and capital funding challenges as we start the budget process. Policy consideration: Given that the city’s current capital plan, particularly related to Connect the Park, living streets/gap sidewalk improvements, and Municipal State Aid (MSA) road projects, is a driver of future debt service levy needs, how aggressive should the city continue to be related to the CIP? Should staff pursue other funding options such as a local option sales tax? Summary: In 2019 council and staff discussed the anticipated financial challenges related to the city’s capital plan and the projected need for very large levy increases to fund the plan, particularly related to Connect the Park, neighborhood sidewalk improvements, and MSA street improvement needs. The concept of a local option sales tax, particularly for the MSA street improvement needs, was seriously discussed by council but was not pursued at that time. These challenges were also discussed as part of preparing the 2021 budget and levy and certain adjustments were made to the city’s capital plan and related debt service levy needs to help mitigate some of the impacts. As we start the process of preparing the 2022 budget the financial needs of our capital plan still remain for the short and long term. During this study session discussion staff will present projections on levy needs for 2022 and beyond based on operating assumptions and the capital plans in place Financial or budget considerations: Details regarding budget and levy will be discussed at the work session. Strategic priority consideration: All areas of the adopted strategic priorities are impacted by the city’s budget and financial health. Supporting documents: Discussion Prepared by: Melanie Schmitt, chief financial officer Approved by: Tom Harmening, city manager Study session meeting of May 10, 2021 (Item No. 2) Page 2 Title: Preliminary levy/budget discussion Discussion Background: During the Oct. 14, 2019 and Dec. 9, 2019 study sessions staff identified significant funding challenges related to the city’s capital plan and funding shortfalls for MSA road improvements. The concept of a local option sales tax was analyzed to help fund the MSA needs, but in the end the council decided not to pursue the special legislation needed to implement that course of action. These same challenges were discussed in 2020 while preparing the 2021 budget and capital plan. During this study session staff will present the short and longer-term financial challenges that remain. Budget Realities As we start the 2022 budget cycle, we have several operational areas we can realistically anticipate budget increases. All our union contracts are up for renewal as of Dec. 31, 2021. Our peer group cities are trending toward 3% increases. We have a maximum increase for our health insurance of 9%, it may be less, but we will anticipate the full 9% for now. A surprise this year has been large increases in certain products and materials (wood, vehicles, etc.). We will adjust the budget accordingly as we work through the expense categories. Lastly, we are asking all departments to evaluate fees and service charges during the 2022 budget process. As state earlier, some of the largest challenges we face during the budget process is how to fund our capital projects. MSA street improvement needs and a projected shortfall in funding were discussed in 2019 and 2020. Layered on top of that are Connect the Park funding needs and the increase in costs to our pavement management program mostly related to filling in gap sidewalks. Our franchise fees are enough to cover basic pavement management needs. Any additional improvements, such as filling in sidewalk gaps, are paid for with debt and subsequently a debt levy. As we have discussed in the past, another factor to consider with adding new infrastructure is the additional cost to maintain it. Here are examples of estimates of increased operating costs for a couple of projects. •Zarthan Roundabout/Cedar lake Rd $ 1,250 per year •Beltline roundabout $ 8,100 per year While these are not significant as compared to the city’s overall budget it is something to keep in mind as we create new infrastructure. Debt Realities As was discussed last fall, we need to levy an additional $563,850 in 2022 to make our debt payment for the 2020 Connect the Park and sidewalk projects. We are also committed to raising the debt levy by $793,759 in 2023 for our 2021 project commitments. This amount is lower than the $1.3 million originally projected and is the result of adjustments to the CIP. Nevertheless, these increases make up a sizable portion of our levy increase. If we continue with the proposed MSA, Connect the Park, and sidewalk addition projects as currently scheduled in the CIP, without alternative funding sources we will continue adding sizable debt levy increases in the coming years. Study session meeting of May 10, 2021 (Item No. 2) Page 3 Title: Preliminary levy/budget discussion Budget Baseline Looking at our long-term financial plan for 2022 we will need around a 6.02% levy increase to maintain our current operations and capital projects. The anticipated debt service levy represents 4.12% of the projected 6.02% levy increase This does not include any additional staff or new programs like our climate investment initiatives. As staff works through the budget, the general estimate we have for an increase may not be enough depending on inflation. Levy Scenario’s At Monday evening we will look at some levy scenarios. The scenarios are to give a high level look at where we anticipate future levies going based on inflation and our capital plans. Our two largest levy years are 2024 and 2025. To change our anticipated future levy increases, the council is asked to direct staff to do one of the following: • Direct staff to make changes to Connect the Park, sidewalk additions, and/or MSA projects • Direct staff to pursue new funding source for the projects • All of the above Council may also direct staff to proceed as planned if the numbers are in line with expectations. To stay at a high level, we will talk about levy expectations as a percent. A 1% levy increase is around $350,000. Example: Direction may be to keep future total levies at 5% or less, with no more than 1.5% of the increase for new capital. In this example, for anything more that 1.5% staff will need direction on how that is managed e.g. is it moved to a different year, cancelled, or is another funding source identified for it. Next Steps: The budget process is starting for staff on May 14. Staff will compile the numbers, requests, and changes and bring back the operational piece of the budget for discussion on July 12. The capital equipment/improvements will be back at a study session on Aug. 9 for discussion. We may add an additional date for discussion of capital or funding sources based on direction received from the council. Here is a more detailed schedule: July 12 Discussion on 2022 budget Aug. 9 Capital Equipment/Improvement study session Sept. 13 Preliminary Budget/Levy discussion Sept. 20 Regular meeting to approve 2022 preliminary tax levies Oct. 11 Study session for utility rates and City fees Oct. 18 Regular meeting to adopt 2022 utility rates, 2nd reading of fees ordinance (consent) Nov. 22 Study session to discuss 2022 budget and levy (if needed) Dec. 6 Truth in Taxation hearing Dec. 20 Approval of 2022 budget, final property tax levies (City and HRA), and 2022-2031 capital plans Meeting: Study session Meeting date: May 10, 2021 Discussion item: 3 Executive summary Title: Future study session agenda planning and prioritization Recommended action: The city council and city manager to set the agenda for the special study session scheduled for May 17, 2021 and the regularly scheduled study session on May 24, 2021. Policy consideration: Not applicable. Summary: This report summarizes the proposed agenda for the special study session scheduled for May 17, 2021 and the regularly scheduled study session on May 24, 2021. Also attached to this report is: - Study session discussion topics and timeline -Proposed topics for future study session discussion Topic Proposed by Councilmember Corridor parking policy review Larry Kraft and Jake Spano Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Tentative agenda – May 17 and May 24, 2021 Study session discussion topics and timeline Study session topic proposal form Prepared by: Debbie Fischer, administrative services office assistant Reviewed by: Maria Solano, interim administrative services officer Approved by: Tom Harmening, city manager Study session meeting of May 10, 2021 (Item No. 3) Page 2 Title: Future study session agenda planning and prioritization May 17, 2021. Immediately following city council meeting Special study session – council chambers Tentative discussion items 1.City manager (CM) recruitment – administrative services (2 – 3 hours) Council will review top candidates and select semi-finalists or finalists and provide direction to staff on next steps. In order to preserve confidentiality of candidate identities at this open public meeting, names will not be provided, and council will be asked to refer to candidates by designated number and not reference any local cities where candidates may be currently employed. This will be a discussion facilitated by consultants from GovHR USA and they will provide further guidance on this topic. May 24, 2021. 6:30 p.m. Study Session – council chambers Tentative discussion items 1.CM recruitment – administrative services (TBD) Based on council direction from May 17, semi-finalist interviews may be conducted virtually at this meeting. This meeting may not be needed if council identifies 4 or fewer finalists or appoints a subcommittee to conduct semi-finalist interviews. 2.Reduction in speed limits – engineering (60 minutes) At the Jan. 25, 2021 study session, council provided staff with direction of their support to implement speed limit changes on city streets based on a safety, engineering, and traffic analysis. Since that meeting the community has been given an opportunity to ask staff questions regarding the recommendations. At this meeting staff will provide the council with a summary of questions received for discussion. 3.Future study session agenda planning – administrative services (5 minutes) Communications/meeting check-in – administrative services (5 minutes) Time for communications between staff and council will be set aside on every study session agenda for the purposes of information sharing. Written reports 4.April 2021 monthly financial report 5.SWLRT PLACES art temporary installment locations Study session meeting of May 10, 2021 (Item No. 3) Page 3 Title: Future study session agenda planning and prioritization Study session discussion topics and timeline Future council items Priority Discussion topic Comments Timeline for discussion 1 Council meetings – agenda and video presentation TBD 2 Inclusionary housing policy – requiring family size units Staff has prepared a report to council 5/10/21 (written report) 3 Public process expectations and outcomes Staff is working on the approach for undertaking this discussion. 3rd qtr. 2021 5 Community and neighborhood sidewalk designations To be combined w/ Connect the Park discussion. 3rd qtr. 2021 6 Transportation commission 3rd qtr. 2021 7 Easy access to nature, across city, starting w/ low-income n’hoods / WHNC Access Fund *On hold pending direction from school district.*On hold 8 Zoning code size limits for houses In process (New related topic to be proposed by Councilmember Rog) 4/26/21 9 Public forums at council mtgs 9/23/19 SS. Staff is researching options. 3rd qtr. 2021 11 STEP discussion: facilities STEP has entered into purchase agreement for two adjacent properties. On hold + Vehicle idling ESC is reviewing and will provide recommendation TBD + Semi-trailer truck parking TBD + Land acknowledgements TBD Council items in progress Priority Discussion topic Comments Next Steps - Policing discussion Discussed 7/27/20, 9/29/20 & 2/22/21. TBD 4 Creating pathways to home ownership for BIPOC individuals and families Discussed at 2/8/21 council meeting. Program being developed. In process (June) 10 Boards and commissions general review Discussed 1/25/21. Revisit after the annual workplan process. 3rd qtr. 2021 - Conversion therapy ban Report on 2/22/21. Resolution adopted 3/15/21. HRC to review and make recommendations on ordinance. TBD Study session meeting of May 10, 2021 (Item No. 3) Page 4 Title: Future study session agenda planning and prioritization Meeting: Study session Meeting date: May 10, 2021 Written report: 4 Executive summary Title: Inclusionary housing policy proposed amendments Recommended action: No action at this time. Staff proposes amending the inclusionary housing policy to require the inclusion of three bedroom or larger size units in developments with 50 or more units and to clarify language related to the provision of on-site vehicle parking for the affordable units. Policy consideration: Does the council approve amending the inclusionary housing policy to add a requirement that three-bedroom units be included in buildings with 50 units or larger and clarify language related to parking provisions for affordable units? Summary: The inclusionary housing policy was initially approved in June 2015 and amended in May 2017, August 2018, and April 2019. This topic was ranked priority 2 for council discussion. The current policy requires new market-rate multi-family residential rental properties with ten or more units that receive financial assistance from the city, seek PUD land use approvals or request a comprehensive plan amendment, to include units affordable to low income households in the development. In the case of a for-sale property, developers are required to make a payment to the city in lieu of including affordable units in the project. Based on the council’s interest in creating rental opportunities for larger families and the need to clarify language related to parking requirements for the affordable units, staff is proposing the following two amendments to the Inclusionary Housing Policy: 1. Developments with 50 units or greater will be required to include a minimum number of three bedroom or larger sized units in the development. The specific number of three plus bedroom units required per development will be based on the total number of units in the development. 2. If underground or enclosed parking is the only on-site parking option available for residents, an enclosed parking stall must be offered to the tenant at a discount from the market rate fee. The market rate parking fee will be discounted to a level equal to the affordability level as the affordable units in the development. Financial or budget considerations: City staff time to implement, manage and monitor compliance of the inclusionary housing policy as the number of developments subject to the policy continues to increase. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Amended inclusionary housing policy Prepared by: Michele Schnitker, housing supervisor/deputy community development director Reviewed by: Karen Barton, community development director Approved by: Tom Harmening, city manager Study session meeting of May 10, 2021 (Item No. 4) Page 2 Title: Inclusionary housing policy proposed amendments Discussion Background: The inclusionary housing policy was initially approved in June 2015 and amended in May 2017, August 2018, and April 2019. The current policy requires new market-rate multi- family residential rental properties with ten or more units that receive financial assistance from the city, seek PUD land use approvals or request a comprehensive plan amendment to include units affordable to low income households in the development. In the case of a for-sale property, the developer is required to make a payment in lieu of including affordable units. The number of affordable units required in each development is dependent on the level of affordability of the units and the total number of units in the development. Developers can choose to include units affordable to households whose incomes are at 30%, 50%, or 60% area medium income (AMI). Present Considerations: Larger size unit requirement Based on the council’s interest in promoting the creation of rental opportunities for larger families, it is proposed that the Inclusionary Housing Policy be amended to include the following language: Developments with 50 units or greater are required to include a minimum number of three-bedroom or larger size units. The specific number of three-plus bedroom size units required per development is based on the total number of units in the development as noted in the table below. Building Size – total residential units Required Minimum Number of three bedroom or larger units 50 - 74 2 75 – 99 3 100 - 124 4 125 - 149 5 150 – 174 6 175 + 7 Developments for the exclusive occupancy of senior residents are exempt from this requirement. The 50 unit or greater development size threshold for this requirement was established in recognition of the increased cost of developing three-bedroom units and the decreased rent revenue generated per square foot by larger size units. Larger developments can more easily absorb additional construction and operating costs associated with including larger units. Also, the requirements listed above are the minimum number of larger size units that must be included in a development. The city can utilize the Affordable Housing Trust Fund as a tool to encourage developers to exceed the minimums requirements. Parking requirement Building sites available in St. Louis Park for multi-family residential developments are often limited in size. Adequate space for surface parking is typically very limited and often reserved Study session meeting of May 10, 2021 (Item No. 4) Page 3 Title: Inclusionary housing policy proposed amendments for visitors or commercial business parking. In order to meet zoning related parking requirements developments most often rely on underground or enclosed parking. Although it is important that the affordable tenants have access to adequate parking, it is also recognized that underground and enclosed parking is expensive to build. In order to provide a reasonable option that will ensure tenants have access to on-site vehicle parking while avoiding the parking requirements from being a deterrent to including a greater number of affordable units in a development, the following parking requirements are proposed: The Inclusionary Policy requires that at least one on-site parking stall (either surface or enclosed) be provided for each affordable unit. If adequate on-site surface parking exists as determined by the city based on the development’s parking plan, the requirement will be met by providing a surface space to the resident at no additional cost to the tenant. If underground or enclosed parking is the only on-site parking option available for residents, an enclosed parking stall must be offered to the tenant at a discounted rate. The market rate parking fee will be discounted based on the affordability level of the inclusionary units in the development as follows: Inclusionary affordability level Parking fee cost to resident 30 % AMI Free – included in rent 50% AMI 50% of the market rate fee * 60% AMI 60% of the market rate fee *Example: if the market rate fee for parking is $100 per month, residents in inclusionary units at the 50% AMI affordability level will pay $50 per month. For developments utilizing a combination of surface parking and enclosed parking to meet the inclusionary parking requirements, a waiting list will be established, and parking options will be offered based on placement on the list. City approval must be obtained for any proposed alternative to the parking requirements noted in the Policy. Next Steps: Upon approval of the amended Inclusionary Housing Policy, the new requirements will become effective immediately for any future residential housing developments required to comply with the policy. Study session meeting of May 10, 2021 (Item No. 4) Page 4 Title: Inclusionary housing policy proposed amendments Inclusionary Housing Policy This policy promotes high quality housing for households with a variety of income levels, ages and sizes in order to meet the city's goal of preserving and promoting economically diverse housing options in our community. The city recognizes the need to provide affordable housing to households of a broad range of income levels in order to maintain a diverse population and to provide housing for those who live or work in the city. Without intervention, the trend toward rising housing prices in new developments will continue to increase. As a result, this policy is being adopted to ensure that a reasonable proportion of each new development receiving city financial assistance, seeking PUD land use approvals or requesting a comprehensive plan amendment include units affordable to low-and-moderate income households and working families or in the case of for- sale units, make a payment in lieu of including affordable units. The requirements set forth in this policy further the city’s housing goals and the city’s comprehensive plan to create and preserve affordable housing opportunities. These requirements are intended to provide a structure for participation by both the public and private sectors in the production of affordable housing. I. Applicability and minimum project size This policy applies to market rate multi-unit residential developments that receive financial assistance from the city, seek PUD land use approvals or request a comprehensive plan amendment, and includes: a) new developments that create at least 10 multi-family dwelling units; or b) any mixed-use building that creates at least 10 multi-family dwelling units; or c) renovation or reconstruction of an existing building that contains multi-family dwelling units that includes at least 10 dwelling units; or d) any change in use of all or part of an existing building from a non- residential use to a residential use that includes at least 10 dwelling units. II. Affordable dwelling units General requirement Rental developments and for-sale developments subject to this policy shall provide a minimum number of affordable dwelling units or a payment in lieu subject to the requirements listed below. Study session meeting of May 10, 2021 (Item No. 4) Page 5 Title: Inclusionary housing policy proposed amendments Calculation of units and payment in lieu required. For development of multi-family dwelling units: a) The required number of affordable dwelling units or corresponding payment in lieu is based on the total number of dwelling units that are approved by the city or the number of naturally occurring affordable housing (NOAH) dwelling units that are being demolished or converted to a use other than low-income dwelling units in connection with construction of the development. b) To calculate the number of affordable dwelling units or payment in lieu required in a development the total number of approved dwelling units shall be multiplied by five percent (5%), ten percent (10%), fifteen percent (15%) or twenty (20%) depending on the affordability standard. If the final calculation includes a fraction, the fraction of a unit shall be rounded to the nearest whole number. c) If an occupied rental property with existing dwelling units is remodeled and/or expanded, the number of affordable dwelling units shall be based on the total number of units following completion of renovation/expansion. At least five percent (5%), ten percent (10%) or twenty percent (20%) shall be affordable, depending on the affordability standard. d) NOAH dwelling units that are being demolished or converted to a use other than low-income dwelling units in connection with construction of the development must be replaced in the new development on a one-for-one basis. New developments must include a minimum number of affordable dwelling units equal to at least five percent (5%) to twenty percent (20%) of the total number of dwelling units in the development or the number of naturally occurring affordable housing dwelling units that are being demolished or converted, whichever is greater. Any deviation from replacing NOAH units on a one-for-one basis requires city approval. *A NOAH unit is defined as a unit in which the amount of rent charged is affordable to a household whose income is at or below 60% area median income based on bedroom size, or for a for-sale unit, affordable to a household whose income is at or below 80% AMI. e) For-sale home ownership developments will be required to pay a payment in lieu of including affordable units in the development. The payment in lieu will be an amount equal to the difference between the average market rate sale price of the for-sale units in the development and the for-sale home purchase amount affordable to a household with an income at or below eighty percent (80%) AMI. The amount of the difference will be multiplied by a number equal to fifteen percent (15%) of the total number of for-sale units in the development. Study session meeting of May 10, 2021 (Item No. 4) Page 6 Title: Inclusionary housing policy proposed amendments III. Affordability level The required number of affordable dwelling units within a residential project subject to this policy shall meet an income eligibility and rent affordability standard for the term of the restriction as follows: a) Rental Projects: a. At least twenty percent (20%) of the units shall be affordable for households at sixty percent (60%) Area Median Income (AMI), or b. At least ten percent (10%) of the units shall be at affordable for households at fifty percent (50%) AMI, or c. At least five percent (5%) of the units shall be affordable for households at thirty percent (30%) AMI. b) Demolished or converted NOAH units: NOAH units demolished or converted to a use other than affordable housing in connection with the construction of the new development must be replaced on a one-for-one basis or at rate and affordability level as noted in III. a, whichever is greater. The new units must be comparable in bedroom size to the units demolished or converted and be affordable to households at 60% AMI or below. *A NOAH unit is defined as a rental unit in which the amount of rent charged is affordable to a household whose income is at or below 60% area median income based on bedroom size or a for-sale unit affordable to a household whose income is at or below 80% AMI. NOAH status for rental units will be based on the rents charged on the date 6 months prior to the submitting of a development application. c) For-sale projects: For-sale home ownership developments will pay a payment in lieu of including affordable units in the development. The payment in lieu will be an amount equal to the difference between the average market rate sale price of the for-sale units in the development and the current for-sale home purchase amount affordable to a household with an income at or below eighty percent (80%) AMI. The payment will be multiplied by a number equal to fifteen percent (15%) of the total number of for- sale units in the development. NOAH pricing for for-sale dwelling units shall be determined at time of issuance of the occupancy permit. d) Rent and sale price level Rental unit: The monthly rental cost for an affordable dwelling unit shall include rent, utility costs, parking and any other non-optional monthly occupancy charges. Surface parking for all inclusionary units if available and enclosed parking for Study session meeting of May 10, 2021 (Item No. 4) Page 7 Title: Inclusionary housing policy proposed amendments inclusionary units at the 30% AMI affordability level shall also be included in the monthly rent for the unit. The maximum rent amount shall be based on the metropolitan area that includes St. Louis Park adjusted for bedroom size and calculated annually by the Department of Housing and Urban Development and posted by Minnesota Housing for establishing rent limits for the Housing Tax Credit Program. For-sale projects: The qualifying affordable sale price for an owner-occupied affordable dwelling unit shall be based on a homeownership unit affordable to a household with income at or below eighty percent (80%) AMI for the metropolitan area that includes St. Louis Park calculated annually by the Department of Housing and Urban Development and posted by the Metropolitan Council. e) Period of affordability For rental developments subject to this policy, the period of affordability for the affordable dwelling units shall be at least twenty-five (25) years. IV. Larger size unit requirement Developments with 50 units or greater are required to include a minimum number of 3 bedroom or larger size units. The specific number of three bedroom or larger size units required per development is based on the total number of units in the development as noted in the table below. Building Size – total residential units Required Minimum Number of 3 Bedroom or larger size units 50 - 74 2 75 – 99 3 100 - 124 4 125 - 149 5 150 – 174 6 175 + 7 Developments for the exclusive occupancy of senior residents are exempt from this requirement. V. Parking requirement The Inclusionary Policy requires that at least one on-site parking stall (either surface or enclosed) be provided for each affordable unit. If adequate on-site surface parking exists as determined by the city based on the development’s parking plan, the requirement will be met by providing a surface space to the resident at no additional cost to the tenant. If underground or enclosed parking is the only on-site parking option available for residents, an enclosed parking stall must be offered to the tenant at a discounted rate. The market rate parking fee will be discounted based on the affordability level of the inclusionary units as follows: Study session meeting of May 10, 2021 (Item No. 4) Page 8 Title: Inclusionary housing policy proposed amendments Inclusionary affordability level Parking fee cost to resident 30 % AMI Free – included in rent 50% AMI 50% of the market rate fee * 60% AMI 60% of the market rate fee* *Example: if the market rate fee for parking is $100 per month, residents of inclusionary units at the 50% AMI affordability level will pay $50 per month. For developments utilizing a combination of surface parking and enclosed parking to meet the inclusionary parking requirements, a waiting list will be established and parking options will be offered based on placement on the list. Only inclusionary unit residents with a tenant owned vehicle are eligible for parking at no charge. The resident’s monthly rent shall include the availability of adequate on-site parking for at least one vehicle per affordable unit. If adequate on-site surface parking is not available, one underground parking stall must be assigned to the unit; the cost of which is included in the maximum rent amount. City approval must be obtained for any proposed alternative to the parking requirements noted in the Policy. VI. Location of affordable rental dwelling units Except as otherwise specifically authorized by this policy, the affordable dwelling units shall be located within the development. VII. Standards for inclusionary rental units Size and design of affordable units The size and design of the affordable dwelling units should be consistent and comparable with the market rate units in the rest of the project and is subject to the approval of the city. The interior of affordable dwelling units is not required to be identical to the market rate units but if units are smaller than the other units with the same number of bedrooms in the development, city approval must be obtained. If naturally occurring affordable housing dwelling units are being demolished or converted to a use other than lower-income dwelling units in connection with construction of the development, an equal number of affordable units with a comparable number of bedrooms to the units demolished or converted must be included in the new development. Exterior/interior appearance. The exterior materials and design of the affordable dwelling units in any development subject to these regulations shall be indistinguishable in style and quality with the market rate units in the development. The interior finish and quality of construction of the affordable dwelling units shall at a minimum be comparable to entry level rental housing in the city. Construction of the affordable dwelling units shall be concurrent with construction of market rate dwelling units. Study session meeting of May 10, 2021 (Item No. 4) Page 9 Title: Inclusionary housing policy proposed amendments VIII. Integration of affordable dwelling units Distribution of affordable rental housing units. The affordable dwelling units shall be incorporated into the overall project unless expressly allowed to be located in a separate building or a different location approved by the city council. Affordable dwelling units shall be distributed throughout the building. Number of bedrooms in the affordable units. The affordable dwelling units shall have a number of bedrooms in the approximate proportion as the market rate units. The mix of unit types, both bedroom and accessible units, of the affordable dwelling units shall be approved by the city. Tenants Rental affordable dwelling units shall be rented only to income eligible families during the period of affordability. A household that was income eligible at initial occupancy may remain in the affordable dwelling unit for additional rental periods as long as the income of the household does not exceed one-hundred forty percent (140%) of the applicable AMI. Affordable units must be administered in compliance with the rules and procedures stated in St. Louis Park’s Inclusionary Housing Program Guide. IX. Alternatives to on-site development of affordable dwelling units This section provides alternatives to the construction of affordable dwelling unit’s onsite. The alternatives are listed in subsection (c), below. a) The alternatives must be: 1. Approved by the city council; and 2. Agreed to by the applicant in an Affordable Housing Performance Agreement with the city; and 3. Applicant must show evidence acceptable to the city that a formal commitment to the proposed alternative is in place. b) This section does not apply unless the applicant demonstrates: 1. The alternative provides an equivalent or greater amount of affordable dwelling units in a way that the city determines better achieves the goals, objectives and policies of the city’s housing goals and Comprehensive Plan than providing them onsite; and 2. Will not cause the city to incur any net cost as a result of the alternative compliance mechanism. Study session meeting of May 10, 2021 (Item No. 4) Page 10 Title: Inclusionary housing policy proposed amendments c) If the conditions in (b) are met, the city may approve one or more of the following options to providing affordable dwelling units that are required by this policy. 1. Dedication of existing units: Restricting existing dwelling units which are approved by the city as suitable affordable housing dwelling units through covenants or contractual arrangements. The city shall determine whether the form and content of the restrictions comply with this policy. Off-site units shall be located within the City of St. Louis Park. The restriction of such existing units must result in the creation of units that are of equivalent quality and size of the affordable dwelling units which would have been constructed on-site if this alternative had not been utilized. 2. Off-site construction: Offsite construction of affordable units must be constructed within the city and should be located in proximity to public transit service at a site approved by the city. 3. Partnering with an affordable housing developer: Participation in the construction of affordable dwelling units by another developer on a different site within the city. 4. Proposed alternative: An alternative proposed by the applicant that directly provides or enables the provision of affordable housing units within the city. The alternative must be approved by the city and made a condition of approval of the Affordable Housing Performance Agreement. X. Non-discrimination based on rent subsidies: Developments covered by the policy must not discriminate against tenants who would pay their rent with federal, state or local public assistance, including tenant based federal, state or local subsidies, including, but not limited to rental assistance, rent supplements, and Housing Choice Vouchers. XI. Affordable housing plan a) Applicability Developments that are subject to this policy shall include an Affordable Housing Plan as described below. An Affordable Housing Plan describes how the developer complies with each of the applicable requirements of this policy. b) Approval 1. The Affordable Housing Plan shall be approved by the city. 2. Minor modifications to the plan are subject to approval by the city manager. Major modifications are subject to approval by the city Study session meeting of May 10, 2021 (Item No. 4) Page 11 Title: Inclusionary housing policy proposed amendments council. Items that are considered major and minor will be designated in the Affordable Housing Plan. c) Contents The Affordable Housing Plan shall include at least the following: 1. General information about the nature and scope of the development subject to these regulations. 2. For requests of an alternative to on-site provision of affordable housing, evidence that the proposed alternative will further affordable housing opportunities in the city to an equivalent or greater extent than compliance with the otherwise applicable on-site requirements of this policy. 3. The total number of market rate units, and for rental developments, the number of affordable dwelling units in the rental development. 4. The floor plans for the affordable dwelling units showing the number of bedrooms and bathrooms in each unit. 5. The approximate square footage of each affordable dwelling unit and average square foot of market rate unit by types. 6. Building floor plans and site plans showing the location of each affordable dwelling unit. 7. The pricing of each ownership dwelling unit shall be determined at time of issuance of the occupancy permit. At time of sale this price may be adjusted if there has been a change in the median income or a change in the formulas used in this ordinance. 8. The order of completion of market rate and affordable dwelling units. 9. Documentation and specifications regarding the exterior appearance, materials and finishes of the development for each of the affordable dwelling units illustrating that the appearance of affordable units are comparable to the appearance of the market-rate units. 10. An Affordable Dwelling Unit Management Plan documenting policies and procedures for administering the affordable dwelling units in accordance with the Affordable Housing Performance Agreement. 11. Any and all other information that the city manager may require that is needed to achieve the council’s affordable housing goals. Study session meeting of May 10, 2021 (Item No. 4) Page 12 Title: Inclusionary housing policy proposed amendments XII. Recorded agreements, conditions, and restrictions a) An Affordable Housing Performance Agreement shall be executed between the city and a developer, in a form approved by the city attorney, based on the Affordable Housing Plan described in Section VII, which formally sets forth development approval and requirements to achieve affordable housing in accordance with this policy and location criteria. The Agreement shall identify: 1. the location, number, type, and size of affordable housing units to be constructed; 2. sales and/or rental terms; occupancy requirements; 3. a timetable for completion of the units; and 4. restrictions to be placed on the units to ensure their affordability and any terms contained in the approval resolution by the city as applicable. b) The applicant or owner shall execute any and all documents deemed necessary by the city manager, including, without limitation, restrictive covenants and other related instruments, to ensure the affordability of the affordable housing units in accordance with this policy. c) The applicant or owner must prepare and record all documents, restrictions, easements, covenants, and/or agreements that are specified by the city as conditions of approval of the application prior to issuance of a zoning compliance permit for any development subject to this policy. d) Documents described above shall be recorded in the Hennepin County Registry of Deeds as appropriate. e) Inclusionary Housing Program Guide: The affordable units will be managed and operated in compliance with rules and regulations outlined in the Inclusionary Housing Program Guide. XIII. Definitions a) Affordable Dwelling Unit: The required affordable dwelling units within a residential project subject to this policy shall meet an income eligibility and rent affordability standard for the term of the restriction as follows: 1. Rental Projects: a. At least twenty percent (20%) of the units shall be affordable for households at sixty percent (60%) Area Median Income (AMI), or b. At least ten percent (10%) of the units shall be at affordable for households at fifty percent (50%) Area Median Income. c. At least five percent (5%) of the units shall be affordable for households at thirty percent (30%) Area Medium Income. Study session meeting of May 10, 2021 (Item No. 4) Page 13 Title: Inclusionary housing policy proposed amendments 2. For-Sale Projects: The qualifying affordable sale price for an owner-occupied affordable dwelling unit shall be based on a household income of eighty percent (80%) AMI for the metropolitan area that includes St. Louis Park calculated annually by the Department of Housing and Urban Development. b) Affordable Housing Plan: A plan that documents policies and procedures for administering the affordable dwelling units in accordance with the Affordable Housing Performance Agreement. c) Affordable Housing Performance Agreement: Agreement between the city and the developer which formally sets forth development approval and requirements to achieve Affordable Housing in accordance with this policy. d) Financial Assistance: The Inclusionary Affordable Housing Policy applies to all new and renovated multifamily residential buildings receiving city financial assistance, seeking PUD land use approvals or request an amendment to the comprehensive plan. Financial Assistance is defined as funds derived from the city and includes but is not limited to the following: 1. City of St. Louis Park Funds 2. Community Development Block Grant (CDBG) 3. City Housing Rehabilitation Funds 4. Revenue Bonds (private activity bonds are negotiable) 5. Tax Increment Financing (TIF) & Tax Abatement 6. Housing Authority (HA) Funds 7. Land Write-downs e) NOAH units: 1. Rental units: A rental unit is defined as a NOAH unit if the amount of rent charged is affordable to a household whose income is at or below 60% area median income based on bedroom size. 2. Ownership unit: A for-sale unit is defined as a NOAH unit if the price of the home is affordable to a household whose income is at or below 80% AMI. Study session meeting of May 10, 2021 (Item No. 4) Page 14 Title: Inclusionary housing policy proposed amendments f) Tenant paid rent: The monthly rent for an affordable dwelling unit shall include rent, utility costs, parking and any other non-optional monthly occupancy charges. Surface parking for all inclusionary units if available and enclosed parking for inclusionary units at the 30% AMI affordability level shall also be included in the monthly rent for the unit. The rent shall be based on the metropolitan area that includes St. Louis Park adjusted for bedroom size and calculated annually by the Department of Housing and Urban Development and posted by Minnesota Housing for establishing rent limits for the Housing Tax Credit Program. Meeting: Study session Meeting date: May 10, 2021 Written report: 5 Executive summary Title: Perspectives update Recommended action: No action required. Report for information purposes only. Policy consideration: None at this time. Summary: Perspectives Inc. is a non-profit organization serving mothers and their children to break the cycles of poverty, homelessness, addiction, racial disparity, and trauma. Perspectives has been serving St. Louis Park and the surrounding communities for 45 years, providing mental health/recovery services, furnished apartments, case management, food, nutrition education, child reunification, children’s programming, and employment assistance. Additional information about Perspectives can be found on their website at https://www.perspectives-family.org. Perspectives has been actively promoting and pursing a $15 million capital campaign for the past several years, called Seed the Change, to expand and remodel their facility in St. Louis Park, located at 3381 Gorham Avenue. This project will provide for the expansion of their Kids Connection classrooms, their Kids Café, a new and culturally sensitive trauma-informed out- patient mental and chemical health treatment program, and state of the art early childhood development center. Perspectives has secured approximately $2 million from a number of major corporations and foundations including Target, Cargill, Best Buy, General Mills, Wells Fargo, Pohlad, and Otto Bremmer. Last May, the City of St. Louis Park sponsored a State bonding grant in the amount of $4.5 million towards the project and was notified of award in October. And just recently, Perspectives received an additional $2.8 million in grant funding from the Peter J. King Foundation. Perspectives is continuing their capital campaign and anticipates breaking ground in 2022. Financial or budget considerations: None at this time. Strategic priority consideration: St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. Supporting documents: Seed the Change Capital Campaign brochure Prepared by: Karen Barton, community development director Approved by: Tom Harmening, city manager A $15M CAPITAL CAMPAIGN Perspectives, Inc. Announces CAPITAL CAMPAIGN: PUBLIC PHASE BREAKING GROUND IN 2022 Creating a diverse, equitable, and inclusive environment for underserved women and their children. Perspectives, Inc., located in St. Louis Park, Minnesota, enters its 45th year as an award-winning non-profit. Learn more about Perspectives online at perspectives-family.org. Study Sessino meeting of May 10, 2021 (Item No. 5) Title: Perspectives update Page 2 Perspectives’ Board of Directors is excited to announce the public phase of our Seed the Change Capital Campaign. Fourteen million of the dollars raised will be used to rehab 22,000 existing square feet of our Family Center, as well as develop 16,000 square feet of new program space. This ambitious project includes the expansion of our Kids Connection classrooms, our Kids Cafe, a new culturally sensitive, trauma-informed, out-patient mental and chemical health treatment and state-of-the-art early childhood development center. The remaining one million will be used for capacity building. When completed, the new Family Center, with its enhanced security and accessibility, will have over 38,000 square feet of trauma-informed space to serve mothers and children. Why We Exist Perspectives is committed to breaking cycles of poverty, homelessness, addiction, racial disparity, and trauma. We provide a comprehensive, holistic model of supportive housing, which includes a two-generational approach that addresses historical trauma and empowers individuals to seek pathways to healing. Who We Serve Mothers and their children living in Perspectives’ current and future supportive housing campuses. Together they are emerging from the cycles mentioned above. Our population of focus also includes underserved children enrolled in St. Louis Park School District, who need additional social, emotional, and educational support. Breaking Cycles for Over Four Decades by Rebuilding Hope and Dignity •Furnished Apartments•Case Management•Individual Therapy•Outpatient Treatment and Mental Health Services•Transportation and Childcare•Family Reunification•Pre-natal and Postnatal Care •Extended Day Social and Emotional Programing•Summer Programming for Elementary Children•Early Childhood Development Program•The Cargill Kids Cafe - Food Stability, Nutrition, Gardening and Culinary Skills•Children’s Mental Health Therapist Mother’s Programming Children’s Programming FOR MORE INFORMATION, CONTACT: Jeannie Seeley-Smith, President & CEO (612) 247-5595 jss@perspectives-family.org Study Sessino meeting of May 10, 2021 (Item No. 5) Title: Perspectives update Page 3 Meeting: Study session Meeting date: May 10, 2021 Written report: 6 Executive summary Title: Environment and Sustainability Commission (ESC) Environmental Justice report Recommended action: This is a report from the ESC’s Environmental Justice work group intended to provide information to the council about environmental justice in St. Louis Park. Policy consideration: None currently. Attached is a report written by the ESC’s Environmental Justice work group and approved by the commission explaining the topic of environmental justice and potential actions the city can take. This is part of the ESC’s continuing efforts to foster regular communication with the city council through periodic written reports and memos. Summary: The attached report details the research the commission has been conducting on environmental justice and opportunities to take action in St. Louis Park. After George Floyd’s death, and following continued protests over police violence against Black Americans, there has been renewed examination across the country and the commission of the links between racism and environmental harms. As the report highlights, Black, Indigenous, and People of Color are often disproportionately impacted by the effects of climate change, including extreme heat, extreme cold, poor air quality, and groundwater flooding. For interrelated reasons, these communities have also been disproportionately vulnerable to the COVID-19 virus. The commission recognizes that racial justice and climate justice are intertwined, and a more equitable and thriving future for St. Louis Park cannot be achieved without consideration of both. The report highlights how the commission has been educating itself, includes an introduction to environmental justice, and explains how a changing climate exacerbates the impacts of environmental injustice. The report also summarizes actions taken by other communities to integrate justice and equity into environmental goals, mapped to St. Louis Park’s Climate Action Plan goals. Finally, the report lays out recommendations for immediate action, mid-term ideas for the council to consider, and plans for continued follow-up on this topic. Financial or budget considerations: None Strategic priority considerations: St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Environmental Justice in St. Louis Park (report approved by ESC) Prepared by: Annie Pottorff, sustainability specialist Emily Ziring, sustainability manager Reviewed by: Brian Hoffman, director of building and energy Approved by: Tom Harmening, city manager Study session meeting of May 10, 2021 (Item No. 6) Page 2 Title: Environment and Sustainability Commission (ESC) Environmental Justice report Environmental Justice in St. Louis Park The Environmental & Sustainability Commission (ESC) has been taking an effort internally to educate itself and create an action plan on the issue of Environmental Justice and its overlap with Climate Change. When reviewing this document, we ask Council to keep in mind St. Louis Park’s Vision 3.0 to be a leader in racial equity and inclusion and environmental stewardship. Content below is divided into three sections: (1) Introduction & Overview, (2) Actions Made by Other Communities, and (3) Recommendations and Action Items for St. Louis Park. Introduction & Overview Introduction: Environmental Justice (EJ) is the fair treatment and involvement of all people regardless of race, income, country of origin with respect to development, implementation and enforcement of environmental laws, regulations and policies.1 No population should bear a disproportionate share of negative environmental consequences from industrial, municipal and commercial operations (US Department of Energy). Today this is not the case, both industrial and climate change impacts are felt at a disproportionate rate by minority and low-income communities. Home ownership is a helpful indicator of equality, and we see in SLP that there is a 42.8% gap in home ownership for Black, Indigenous, and People of Color (BIPOC).2 We should keep this local disparity in mind as we think through the topic of EJ. There are two main areas of impact: Industrial/Housing Toxin and Pollution Exposure and Climate Change Impacts. Industrial/Housing Toxin and Pollution Exposure: •Urban: o Toxin Exposure: Toxic Wastes and Race in the United States 1987 - United Church of Christ Commission for Racial Justice found that race was the #1 factor on where toxic facilities were located.3 o Energy Cost Burden: Low-Income households and communities of color are more likely to live in older less efficient housing resulting in an overburdening of energy costs. American Council for Energy-Efficient Economy report found that Black (+43%), Hispanic (+20%) and Native American (+45%) HHs spend more of household income than whites on energy - based on data from 2017 American Housing Survey from Census Bureau’s.4 o Health Impacts: Pollution exposure greater than energy level consumptions - Black Americans (+56%), Hispanics (+63%), while Non-Hispanic Whites are exposed to 17% less air pollution than consumption.5 ‘Asthma Alley’ in NYC Mott Haven neighborhood (97% Hispanic or Black), asthma hospitalizations are 5x national average and 21x other NYC neighborhoods. Neighborhood home to four highways, Fresh Direct warehouse, WSJ printing presses and more.6 ‘Cancer Alley’ along the Mississippi River between Baton Rouge and New Orleans, home to 150 fossil fuel and petrochemical facilities. This area has 7 of the 10 highest cancer risk subdivisions that census has tracked nationally. The highest concentration of these facilities are in areas with the highest Black and low-income neighborhoods.7 Study session meeting of May 10, 2021 (Item No. 6) Page 3 Title: Environment and Sustainability Commission (ESC) Environmental Justice report • Rural: Indigenous communities are often left with pollution impact left on their land especially when there is a valuable resource such as oil. o Dakota Pipeline: Concerns include risks to water safety and quality if there is an oil leak and destruction of sacred tribal burial grounds.7 o Line 3 Approval: Controversy over this approval causing 12 of 17 members of MPCA advisory board to resign. Environmental and tribal groups are still suing and protesting against the project.8 Climate Change Impact: • Increased Natural Disasters and Wealth Impacts: As storms become stronger and more frequent, low-income and communities of color are not provided the resources to rebuild and are seeing wealth disparities increase. o A 2018 study focusing on data from 1990-2013 showed that 99% of all US counties had significant damage from natural disasters. Controlling for multiple variables, the study found that while White residents increased wealth in these areas, minority communities lost wealth. One specific example in Harris County, Texas saw disaster related wealth race gap increase $87,000.9 • Heat Islands: As temperatures continue to rise, impacts are intensified in areas with more concrete and less tree/plant cover which increases health risks in vulnerable populations.10 o SLP Heat Map: • Pregnancy Outcomes: High heat and air pollution exposure have direct links to underweight and stillborn births. African American mothers and babies have a higher exposure rate to heat and pollution than the general population, this risk is in addition to the already higher pregnancy and birth risks seen in minority groups.11 • Land Resources Deterioration and Impacted Livelihoods Indigenous Peoples:12 Study session meeting of May 10, 2021 (Item No. 6) Page 4 Title: Environment and Sustainability Commission (ESC) Environmental Justice report o Fires, Floods and Forests Impacts: Warmer temperatures and droughts lead to tree loss, loss of wildlife and biodiversity and increased fire risks. o Water Quality and Quantity: Droughts, decreased snowfall and other precipitation has caused springs to dry. Communities also are more likely to have poor or no water infrastructure. o Forced Relocation: Loss of community and culture, health impacts and economic impacts from Climate Change. Actions Made by Other Communities Many communities are thinking about justice and equity in their environmental stewardship efforts. Here’s a sample of actions underway elsewhere mapped to our own Climate Action Plan goals: Goal 1: Reduce energy consumption in large commercial buildings • University of Minnesota in 2016 upgraded part of its power plant to a more efficient, less polluting technology. The location of this was near a low-income housing development that housed many recent immigrants. The MPCA and the university hosted a public meeting and included informational sheets that were translated into a few common languages among the residents to ensure they understood the new development plans. Goal 4: Reduce energy consumption in residential buildings • BlocPower in Brooklyn, New York is upgrading low income housing HVAC with “efficient electric-powered heat pumps.”14 These systems can pay for themselves but require a lot of up-front investment. BlocPower helps with custom planning software and financing. • Boston is considering upgrading air filters and high-quality HVAC systems13, especially for those living in affordable housing. The pandemic is a reminder that quality indoor air systems are critical to the health of our community. • Los Angeles is focusing on temperature reduction in low income areas by improving the tree canopy and laying a lighter shade of pavement to reduce heat island effects.13 • Orlando partners with Solar Energy Loan Fund to update heating and AC systems and reduce utility costs for residents.13 • Richmond created an equity index map to target areas where more green space is needed or where heat islands should be addressed.13 Goal 6: Reduce vehicle emissions • In Carmel, Indiana, bike lanes are viewed as an equity measure by creating an affordable transportation option.13 • St. Paul is working to expand car sharing service into low income neighborhoods.13 • Minneapolis 2040 Housing Plan Built Form Rezoning is promoting housing choice, affordability and density.19 Projects promoting climate resilience or other environmental justice goals: • Houston is focusing on flood resilience in underinvested communities.13 • Oakland is supporting Community Land Trusts to promote housing stewardship, community wealth creation and allow current residents to stay in the community.13 Study session meeting of May 10, 2021 (Item No. 6) Page 5 Title: Environment and Sustainability Commission (ESC) Environmental Justice report • North Minneapolis Appetite for Change is promoting healthier communities and connection to land with vegetable gardens.18 • Minneapolis is designating areas of the city as “Green Zones.”15 “A model for government to own up to this racist history and move towards collaborative problem- identification and problem solving with impacted residents. The idea for Green Zones came from environmental justice leaders who demanded a seat at the table during the development of the City [of Minneapolis]’s first Climate Action Plan in 2012.” • Minneapolis Air Pilot Project - In 2014, the MPCA designed the Air Pilot Project “to identify ways to reduce air emissions, better understand air quality in Minneapolis, and improve engagement with communities” (MPCA). During this pilot project, the MPCA worked with 12 different facilities to discuss ways the facilities could voluntarily reduce their emissions in areas of lower socioeconomic status. • Permit Update for Smith Foundry - Another part of the MPCA’s environmental justice framework implementation includes reviewing the agency’s “regulatory strategy of prioritizing review and evaluation of expired permits, permit reissuances, and non- expired permits in areas of environmental justice concern to identify possible ways to reduce risk” (MPCA). Recommendations and Action Items for St. Louis Park • Current: Continue to keep Environmental Justice front of mind when evaluating policies that impact St. Louis Park Residents o Tree Planting: The ESC supports the use of a tree equity tool for prioritizing future planting and suggests focusing on reducing heat islands near multi-family housing and socially vulnerable populations. o Connect the Park Goal Updates: The ESC supports the revised Connect the Park goals and strategies presented in the March 1 study session. o 2040 Comprehensive Plan Land Use and Mobility Priorities: The ESC supports the focus of higher density development in SLP and specifically along the light rail station areas and a shift away from single-occupancy vehicle transportation. Additionally, the ESC supports the Mobility System goal to ensure the quality and function of the transportation system contributes to the equitable outcomes for all people. With the shift to higher density areas the ESC would like to put an emphasis on ensuring that ample affordable housing options will be available in these highly desired areas. o Capital Improvement Planning: The ESC encourages the City Council to continue to evaluate whether the projects funded are improving environmental justice and are prioritizing underserved populations. • Mid-Term: Additional thought starters beyond actions being pursued today o Take a step back during discussions and think, do we have the right people in the room? Are the communities that are being impacted here to give input? How can we make community engagement more accessible? o Monitor and review air quality, traffic patterns and the subsequent health impacts and overlay with social vulnerability index. Are there policies that could be updated? Are there new partnerships that could be pursued? o Explore policy ideas on how to fix incentive misalignment in rental properties as it relates to energy efficient upgrades. How can we fix the gap between Study session meeting of May 10, 2021 (Item No. 6) Page 6 Title: Environment and Sustainability Commission (ESC) Environmental Justice report qualifying for affordable housing but not qualifying for assistance with upgrades? What additional incentives can be made to encourage energy efficient upgrades to existing multi-unit buildings? o Consider including energy efficiency disclosures in Point-of-Sale home inspections and within lease paperwork. Think of it as a Fuel Economy Label for housing (perhaps produced by the Home Energy Squad). • Future: The Environmental and Sustainability commission will follow-up with council with specific new policy recommendations that address Environmental Justice in new ways. Appendix: Definitions: • Environmental Justice: Environmental justice (EJ) is the fair treatment and meaningful involvement of all people, regardless of race, color, national origin, or income, with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. Fair treatment means that no population bears a disproportionate share of negative environmental consequences resulting from industrial, municipal, and commercial operations or from the execution of federal, state, and local laws; regulations; and policies. Meaningful involvement requires effective access to decision makers for all, and the ability in all communities to make informed decisions and take positive actions to produce environmental justice for themselves. (US DOE) See also: environmental racism, environmental intersectionality. • Climate Equity: Climate equity ensures that all people have the opportunity to benefit equally from climate solutions while not taking on an unequal burden of climate impacts. (ICLEI) Climate change poses the greatest threat to those that are the least responsible – generally people that are already vulnerable to deep-rooted challenges such as poverty. Conversely, those who have contributed the most to climate change have much better capacity to protect themselves from its impacts. As the effects of climate change mount, so does the urgency of addressing this equity challenge. (WRI) • Minnesota Pollution Control Agency (MPCA) Environmental Justice Statement: “The MPCA is committed to making sure that pollution does not have a disproportionate impact on any group of people — the principle of environmental justice” (MPCA). The MPCA ensures it fosters fair policies and procedures with environmental justice as a core priority. The agency’s top strategies include additional consideration during the permitting, environmental review, and remediation processes. The MPCA also “maintains a policy on tribal consultation as well as guidance on air and water permit consultation with Tribal Nations.”16 • History: Please refer to the article linked here for an overview of the history of the Environmental Justice Movement. With little to no protections against industry, groups started protesting as early as the 1960’s for healthier living and working environments. https://www.nrdc.org/stories/environmental-justice-movement Study session meeting of May 10, 2021 (Item No. 6) Page 7 Title: Environment and Sustainability Commission (ESC) Environmental Justice report Resources: 1. Environmental Justice - https://www.epa.gov/environmentaljustice 2. Demographic Characteristics for Occupied Housing Units - https://data.census.gov/cedsci/table?t=Owner%2FRenter%20%28Householder%29%20Characteristics&g=1600000US 2757220&tid=ACSST5Y2018.S2502&hidePreview=false 3. The Environmental Justice Movement - https://www.nrdc.org/stories/environmental-justice-movement 4. Report: Black households spend almost 50 percent more on utilities than white households - https://grist.org/justice/report-black-households-spend-almost-50-percent-more-on-utilities-than-white-households/ 5. ‘Asthma Alley’: why minorities bear burden of pollution inequity caused by white people - https://www.theguardian.com/us-news/2019/apr/04/new-york-south-bronx-minorities-pollution-inequity 6. Louisiana’s ‘Cancer Alley’ Is Getting Even More Toxic - But Residents Are Fighting Back - https://www.rollingstone.com/politics/politics-features/louisiana-cancer-alley-getting-more-toxic-905534/ 7. Why the Native American pipeline resistance in North Dakota is about climate justice - https://theconversation.com/why-the-native-american-pipeline-resistance-in-north-dakota-is-about-climate-justice- 64714 8. Army Corps of Engineers grants final federal Line 3 permit - https://www.startribune.com/us-army-corps-of- engineers-approves-key-line-3-permit/573172221/ 9. Natural disasters widen racial wealth gap - http://news.rice.edu/2018/08/20/natural-disasters-widen-racial-wealth- gap-2/ 10. Metropolitan Council Climate Vulnerability Assessment - https://metrocouncil.org/Communities/Planning/Local- Planning-Assistance/CVA/Tools-Resources.aspx 11. Climate Change Tied to Pregnancy Risks, Affecting Black Mothers Most - https://www.nytimes.com/2020/06/18/climate/climate-change-pregnancy-study.html 12. Indigenous People, Lands, and Resources - https://nca2014.globalchange.gov/report/sectors/indigenous-peoples 13. Green Biz racial justice article - https://www.greenbiz.com/article/8-cities-share-how-racial-justice-embedded-their- climate-plans 14. NPR BlocPower article - https://www.npr.org/2020/10/18/916586592/fighting-climate-change-one-building-at-a-time 15. Minneapolis Green Zones description - http://www2.minneapolismn.gov/sustainability/policies/green-zones 16. MPCA environmental justice policy and framework - https://www.pca.state.mn.us/about-mpca/mpca-and- environmental-justice 17. We Act Climate Justice Actions - https://www.weact.org/whatwedo/areasofwork/climate/ 18. NPR North Minneapolis Appetite for Change article - https://www.npr.org/2020/11/23/938198603/minneapolis- group-is-growing-food-to-protect-members-from-effects-of-racism-dise 19. Minneapolis 2040 Housing Plan - https://minneapolis2040.com/implementation/built-form-rezoning-study#Goals 20. Environment and Sustainability Commission compiled list of EJ Resources - https://stlouisparkorg- my.sharepoint.com/personal/apottorff_stlouispark_org/_layouts/15/guestaccess.aspx?e=4%3aHwyl4R&at=9&share= EY_4ynG8VARPhhWmN7Y4nWsB6GnCUVhozzxyitXhK0b6oA Meeting: Study session Meeting date: May 10, 2021 Written report: 7 Executive summary Title: Completion of Westwood Hills Nature Center Project Recommended action: None. Policy consideration: Not applicable. Summary: On June 19, 2017, the city council approved HGA Architects and Engineers to design a new interpretive center at Westwood Hills Nature Center. The contractor bids were awarded for construction of the project on November 19, 2018. The estimated total project budget was $12.5 million. The bids, price quotes, construction costs, contingency, and consultants totaled $12,345,492.76. The final cost was $12,268,797.66 or $46,556.10 less than the contracted amount awarded. This amount does not include $404,500 for the north water feature. This water feature was reimbursed 100% by a grant from the Basset Creek Watershed Management Commission. The water feature adds water quality improvements above and beyond the project scope as well as providing a teaching tool. Financial or budget considerations: The final cost has been calculated as follows: Approved project amount $12,345,492.76 Final cost of project $12,268,797.66 Project difference $ 46,556.10 This project was financed by issuing a 20-year G.O. (General Obligation) bond in early 2019 to coincide with the start of the project. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion Prepared by: Jason T. West, recreation superintendent Reviewed by: Cynthia S. Walsh, director of operations and recreation Melanie Schmitt, chief financial officer Approved by: Tom Harmening, city manager Study session meeting of May 10, 2021 (Item No. 7) Page 2 Title: Completion of Westwood Hills Nature Center Project Discussion Background: The process for construction of a new nature center facility began in 2015 with the development of a master plan. The common themes that emerged from the master plan study are as follows: •Move the building location closer to the parking lot for convenience and accessibility yet keeping it tucked into natural setting as much as possible. •Create a gathering area where people can use the indoor space without interfering with the classrooms. •Increase the size of meeting rooms to accommodate approximately 50 people in each small multi-purpose room and open up to have the capacity for approximately 150 participants for special events and large gathering space. •Increase the number of parking stalls to accommodate all users of the building and outside amenities. •Design the interpretive center building to be energy efficient. •Repurpose the current interpretive center location as an outdoor education/community gathering space. Staff believes we have incorporated all of these common themes into the design and construction for the new building with the exception of the 150-person capacity. The final design includes two multi-purpose rooms with a seated capacity of 50 people each and one room that can accommodate up to 30 people. Retractable dividers allow all rooms to open into a single large space to accommodate up to 130 people for a variety of uses. Based on council direction, staff have worked with HGA Architects and Engineers and RJM Construction to design and build an all-electric powered building with a goal of “zero energy”, which means one hundred percent of the building’s energy needs on a net annual basis are supplied by on-site renewable energy. During construction some unexpected items came up such as dewatering due to high groundwater levels, certain winter conditions, and utility infrastructure. There were change orders that were approved on the project, but the increased cost of the change orders was offset by contingency and cost saving modifications during construction. The project budget also includes $50,000 for public art inside the building. Staff worked with Friends of the Arts (FOTA) and the arts and culture task force to create a Request for Qualifications (RFQ) to solicit artists to design and create art pieces for the new nature center building. The process included diversity, inclusivity and access into the arts and culture of WHNC. The exhibits encompass five different learning areas that include the different habitats in Westwood Hills Nature Center. There is a woodland exhibit, prairie exhibit, wetland exhibit, pollinator exhibit, discovery touch table and the live program animals in aquariums and terrariums. Study session meeting of May 10, 2021 (Item No. 7) Page 3 Title: Completion of Westwood Hills Nature Center Project Financial or budget considerations: The final cost of the work performed is calculated as follows: Approved project amount $12,345,492.76 Final cost of project $12,268,797.66 Project difference $ 46,556.10 This project was approved by issuing a 20-year G.O. (General Obligation) bond in early 2019 to coincide with the start of the project.