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HomeMy WebLinkAbout2021/06/14 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JUNE 14, 2021 The St. Louis Park City Council is meeting in person in accordance with the most recent COVID- 19 guidelines. Members of the public may attend the June 14, 2021, meeting in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. The meeting may also be viewed live via webstream at bit.ly/watchslpcouncil and on local cable (Comcast SD channel 17/HD channel 859). Visit bit.ly/slpccagendas to view the agenda and reports. 6:30 p.m. - council chambers STUDY SESSION and JOINT MEETING w/ COMMUNITY TECHNOLOGY ADVISORY COMMISSION Discussion items 1. 6:30 p.m. Community technology advisory commission smart cities initiative – part 2 and workplan review 2. 7:30 p.m. Police Advisory Commission (PAC) 2021 workplan review 3. 8:00 p.m. 2020 general fund balance/other funding options 4. 9:00 p.m. Future study session agenda planning and prioritization 9:05 p.m. Communications/updates (verbal) 9:10 p.m. Adjourn Written reports 5. Housing Authority (HA) 2021 workplan review 6. Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment 7. Application for Tax Increment Financing Assistance – Beltline Station 8. Food Access and Insecurity Study update 9. Amendments to chapter 6 and chapter 8 of the city code 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: June 14, 2021 Discussion item: 1 Executive summary Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Recommended action: The commission will present its progress on smart cities goals. No council action required. Policy consideration: Does the progress made by the commission on smart cities meet the expectations of city council set at the March 8, 2021, study session? Do the work plan updates meet expectations of the city council? Summary: The community technology advisory commission (CTAC) continues its work on smart cities projects that align with the city council’s strategic priorities, following affirmation by council in March that the commission was on the right track with its project use cases. Smart city projects arte focused on finding and delivering improved quality of life for all residents and creating a more efficient, responsive, and sustainable city. Financial or budget considerations: None identified at this time. Strategic priority consideration: Current areas of focus for proposed smart cities initiatives align most closely with the following council strategic priorities: • Providing a broad range of housing and neighborhood-oriented development • Being a leader in racial equity and inclusion in order to create a more just and inclusive community for all • Creating opportunities to build social capital through community engagement Supporting documents: • Discussion • Presentation • CTAC workplan • March 8, 2021, study session report • March 8, 2021, study session minutes • January 25, 2021, study session report Prepared by: Jacque Smith, communications and marketing manager Reviewed by: Clint Pires, chief information officer Michele Schnitker, housing supervisor/deputy community development director Emily Ziring, sustainability manager Approved by: Tom Harmening, city manager Study session meeting of June 14, 2021 (Item No. 1) Page 2 Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Discussion Background: In 2020, the community technology advisory commission began exploring how the concept and practice of smart cities might be applied in St. Louis Park in the areas of connected community, environment and geographic information system (GIS)-enabled applications. Committees focusing on each theme began identifying potential use cases that could be applied at the city. After meeting with city council March 8, 2021, to receive feedback on the direction of its proposed smart cities use cases, the commission continued its smart cities work. The commission will present its progress in each area. In addition, the first phase of a housing dashboard will be demonstrated by city GIS staff. This dashboard was created through a collaboration of city GIS and housing staff, with feedback provided by the community technology advisory commission GIS-enabled applications committee. Present considerations: Does the progress shown by the commission meet council expectations set at the March 8 study session presentation by CTAC? Next steps: If the council continues to be supportive of the CTAC direction, the commission will continue to work on smart cities projects. This will include refining any relevant timeline and budget considerations and considering opportunities for community feedback on any proposed public-facing initiatives. CTAC Presentation To SLP City Council June 14, 2021 Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 3 Agenda •Overall CTAC Report •Environment Report •Connected Community Report •GIS Committee Report •Q&A Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 4 CTAC Status •Incremental progress in all committees •Some changes in emphasis •Advancement in dashboard •Discontinuance in one project •Addition of emphasis on assisting city in obtaining broadband infrastructure funding, e.g., FCC Rural Digital Opportunity Fund •Other multi-committee project management or work with the city that does not fit specific committee charters •Meetings with Lumen, AT&T, others to follow In response to the lack of adequate broadband in parts of the state, especially rural areas, legislators agreed to spend $70 million on a state grant program that aims to build high-speed internet infrastructure across Minnesota. Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 5 Other Sites of Interest For Learnings Angie Dickison, executive director of the state’s Office of Broadband Development, which administers grants with the money Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 6 Quite a bit of useful information can be obtained from these sites Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 7 Social Vulnerability Index and St. Louis Park Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 8 GIS Community Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 9 GIS Committee: Public Dashboards for City Council Strategic Goals Actions in Progress •Identifying indicators that can be used to track progress toward intended outcomes •Implementation of housing affordability dashboard Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 10 Housing Dashboards Initial prototype focused on surfacing informative data about housing, particularly housing affordability. Why housing for initial efforts? Because housing combines… Public Interest Existing Data Efforts Local Policy “A stable, safe home is essential for people to work productively, stay healthy, and for children to learn. Quality homes must be within reach for all people if our region is going to grow and thrive.Our zip codes should not determine our success in life.” -Metropolitan Council Need Local Policy Impact Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 11 Technical Achievements and Next Steps Initial Dashboard Design •Mobile Friendly and Accessible •Focused on outcome: creation of a greater number of affordable units •Interactive analysis on multiple points •Makes data available to other departments and public for further study and reuse •Can be automatically updated by staff using cloud interface to provide real-time data Next Steps •Expand housing dashboards around additional outcome focuses: desire to keep each tightly aligned and focused. •Begin working on dashboards for other goals, in order to create cohesive dashboard hub Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 12 DEMO Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 13 Connected Community Committee Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 14 Status & Next Steps •Availability and affordability of services •Stakeholder Analysis & Contact List •Strategy for Focusing Efforts –Feedback from you •Three Step Approach 1.Awareness 2.Service 3.Infrastructure Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 15 Awareness •Research all relevant, existing programs •Gather enrollment and contact information •Make available for SLP citizens •Determine maintenance cycle Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 16 Service •Enable a service function to assist citizen enrollment •Empower volunteers and non-profits to fulfill support role •Determine oversight and governance •Measure citizen satisfaction and success Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 17 Infrastructure •Determine what is missing today •Research technology options for identified gaps •Engage with partners, based on needs, potential RFP development •Work with SLP city teams to deploy any new infrastructure Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 18 Environment Committee Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 19 Environment Committee •Discontinuance of pedestrian/bicycle project as current city project more than adequate •Progress in plug load analytics •Visit To ElectReon in Israel Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 20 ElectReon Visit Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 21 ElectReon Visit •It works! •Pictures (real city bus) and video from test site near Tel Aviv University •Generation 2 almost released •Tests in Tel Aviv, Italy, Germany, Sweden, and soon a partnership with University of Utah •Notable: takes an overnight to equip 1km road, weather resistant Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 22 Plug Loads •Analysis done for an entire house, every socket, every device plugged in •Currently using power meter that displays real-time usage •Difficult to get accurate readings and record •Recently purchased an entire whole house system which will track and record usage over time •Will also monitor hardwired devices such as furnace, motion lights, etc. •Monitor main power and 16 branch circuits as panel hard to work with Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 23 Devices Measured Device Location Standby Mode Notes 12v Milwaukee Battery Charger Garage 0.5 18v Milwaukee Battery Charger Garage 0.5 5v Milwaukee Battery Charger Garage 0.5 Apple TV Bsmt 1 Broadband Modem Bsmt 6 Chromecast Bsmt 2 Clock 2F 0.5 Clock Bsmt 6 Clock (BR)1F 2 Clock (LR)1F 0.5 CO Detector 1F 0.5 CO Detector 2F 0.5 CO Detector Bsmt 1 CO, Natural Gas CPAP 1F 0.5 Dishwasher 1F 0.5 Dryer Bsmt 0.5 Furnace Bsmt Hardwired Garage Door Opener Garage Grill 1F 0.5 Masterforce Battery Charger Garage 0.5 Device Location Standby Mode Notes Microwave 1F Monitor K-1 2F 0.5 Monitor K-2 2F 0.5 Monitor R-1 Bsmt 7 Monitor R-2 Bsmt 8 Motion Light (Back)1F Hardwired Motion Light (Front)1F Hardwired Network Switch Bsmt 7 PC Dock 1F 1 PC Dock 2F 1 PC Dock Bsmt 1 Phone Charger (K)1F 0.5 Phone Charger (R)1F 0.5 Printer Bsmt 0.5 Range 1F 1 Refrigerator 1F Smoke Detector 1F 0.5 Old Unit 3w Smoke Detector 2F 0.5 Smoke Detector Bsmt 0.5 Toothbrush 1F 1 Treadmill Bsmt 1 TV 1F 1 TV Bsmt 8 Washing Machine Bsmt 0.5 Water Heater Bsmt Hardwired Wifi/Router 1F 9 Typical total standby usage 74.5 Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 24 Learnings and Plans Cost/Savings Use power strip to turn of multiple devices when not in use Unplug devices when not in use Use Energy Star devices Learnings Next Quarter: Install whole house monitoring system in my home for both system & plug load evaluation and to fine tune mitigation techniques. Future work: Install system in second home for plug load evaluation and mitigation. 1 kWh Electricity $0.118 Fees & Taxes $0.037 Actual Cost kWh $0.155 Yearly cost 1 kWh $1.360 Typical Yearly Costs Internet 22w $29.92 Clock 6w $8.16 Old TV (2000) 8w $10.88 Annual Est Cost $100.64 (74.5w) Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 25 Board and Commission Annual Workplan Presented: June 14, 2021 1 Work Plan Template│ community technology advisory commission Time Frame Initiative Strategic Priorities Purpose (see page 2 for definitions) Outcome (fill in after completed) 4Q 2019 Establish committees to research technologies, providers, implementation issues and risks. ☐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) •Community engagement committee established and meeting regularly •Technical committee to be established at Oct. 30, 2019, meeting to address a specific initiative •Three committees established in late 2020 for three smart city areas: GIS, environment and connected communities. 3Q-4Q 2019 Attend meetings of other city boards and commissions to learn how technology might help their activities and related city services ☒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) •Did not happen due to the pandemic and change in commission direction to focus on smart cities. •Collaborated with city staff on smart cities workshop in October 2020; continued to work collaboratively with city staff as appropriate to develop smart city projects. 3Q-4Q 2019 Connect with similar commissions from other agencies ☒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) •Commission has been provided with League of Minnesota Cities contacts to research activities of other Minnesota cities. •Commission has modeled some activities on similar commissions in Tacoma and Seattle, Wash. •Commission has met with school district to understand technology access needs. •City staff and commission members have contacted broadband providers to understand their plans around access and equity in technology. Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 26 Board and Commission Annual Workplan 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 3Q 2019 Develop a plan for community engagement. Determine methods for informed public input on activities and priorities. ☒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) •Community engagement committee has contacted local private school Benilde-St. Margaret, resulting in recruitment of a youth member for the commission (Theo Pohlen) •Committee developed an online survey for residents to help the commission understand what the needs/wants are of the community. Survey was not deployed due to concerns that it was equipment focused rather than access focused; and limitations of what the commission can solve. •Commission researched possible venues for in-person focus groups in early 2020. •Work continues in 2021 as part of committee work for smart cities. Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 27 Board and Commission Annual Workplan 3 Purpose: definitions 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. •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 Recommendation Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 28 Board and Commission Annual Workplan 4 Parking Lot 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: Produce a quarterly report for the city council of relevant technology activities and advances. Commission has provided a report and/or met with city council in January, March and June 2021. Produce final reports on completed commission activities, with recommendations for consideration by other commissions or by the city council. June 14, 2021, study session report March 8, 2021, study session report March 8, 2021, study session minutes January 25, 2021, study session report Enhance the commission’s presence on the city website. Commission website continues to be kept up to date with member information, agendas and minutes. Provide analysis of proposed or considered technology for the community and city operations and provide recommendations and feedback to staff, the city council and other commissions. In 2020, the community technology advisory commission began exploring how the concept and practice of smart cities might be applied in St. Louis Park. Following a delay due to the COVID-19 pandemic, the project kicked off with an October workshop for commission members and city staff. At the workshop, Insight staff helped participants understand the concept and practice of smart cities, defined in this case as application of technology to improve quality of life. Potential use cases (applications) as defined by pre-workshop survey results were prioritized against both measurable benefits and the council’s strategic priorities. Three main themes emerged: connected community, environment and geographic information system (GIS)-enabled applications. Committees that included commission members, city staff, the city’s GIS account manager and Insight staff were established for each theme. The committees developed charters outlining goals, methods, initial tasks and opportunities for investigation, included in the Jan. 25, 2021, report to the city council. Since then, the committees have worked with Insight facilitators and city staff to create use case definitions. These definitions outline project goals, potential benefits and limitations, scope and impact for the prospective initiatives. The committee chairs presented highlights of the use cases at the March 8, 2021 city council study session and will follow up at the June 14, 2021 city council study session. Study session meeting of June 14, 2021 (Item No. 1) Title: Community technology advisory commission smart cities initiative – part 2 and workplan review Page 29 Meeting: Study session Meeting date: June 14, 2021 Discussion item: 2 Executive summary Title: Police Advisory Commission (PAC) 2021 workplan review Recommended action: Council to review the workplan and provide comments to PAC commissioners. Policy consideration: Does the PAC’s workplan, plan to provide community de-escalation training in the fall, and interest in assisting the City Council on learning about race data related to police interactions align with Council goals and priorities? How can the PAC best support and advise the City Council? Summary: The Police Advisory Commission respectfully submits its annual report and 2021 workplan to the City Council for review and discussion. The Chairperson will provide a brief presentation of the workplan and planned initiatives for 2021. Financial or budget considerations: There will be some cost to provide trainers for community de-escalation training. This is budgeted for and will be covered in the Police Department budget. 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 PAC 2020 annual report PAC 2021 workplan Prepared by: Mikael Garland, police lieutenant Reviewed by: Mike Harcey, police chief Maria Solano, interim administrative services officer Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Study session meeting of June 14, 2021 (Item No. 2) Page 2 Title: Police Advisory Commission (PAC) 2021 workplan review Discussion Background: The St. Louis Park Police Advisory Commission was formed to increase awareness of police department capabilities and services, provide an opportunity for citizen involvement and input in police services, and encourage positive interactions between the police department and the community. The work of the commission changes as the needs of the community change. Commissioners design and create their own initiatives each year. There are 11 Commissioners and two youth members and the Commission’s elected leadership consists of Chair, Vice Chair, and Secretary. A listing of Commissioners’ names and term expirations can be found at this link. The PAC continued regular meetings throughout 2020 with its meetings shifting to a virtual setting and initiatives changing because of the global pandemic and the effects on our community cause by the murder of George Floyd by a former Minneapolis Police Officer in May. PAC members were directly involved in the St. Louis Park Police Department’s reimagining of its Use of Force Policy to align with the Police Accountability Act of 2020. The Commission is interested in working with neighborhood liaisons and hosting community conversations in 2021, along with offering free de-escalation trainings for interested community members to enhance their communication with one another. Goals and key initiatives put on hold in 2020 included the planned 3rd Annual SLP Trail 5K Run/Walk, but considerable time was spent in meetings on productive and enlightening discussions surrounding challenges involving community policing during a global pandemic emergency. In addition to work planned in 2020 around reviewing the Police Department’s bodycam policy, the PAC’s meetings included regular review of police statistics on calls, stops, arrests, and major case summaries. The PAC also maintains its interest in assisting and serving as a resource to the City Council on planning to collect race data on police-citizen contacts. 2021 Goals: •The Commission has goals in the coming year focusing on community outreach, in the form of providing de-escalation training to community members in a safe, virtual environment. •The Commission will continue review of Police Department statistics and information at every meeting, along with crime trends and crime prevention strategies. •The Commission regularly receives requests for communication from other cities’ PACs or similar groups and wants to grow and develop these external relationships to learn and improve its work in our community. •The Commission wants to partner with and advise the City Council in its work on collecting race data related to police interactions, reviewing methods for collecting race data, and providing recommendations to the Council. The Commission’s 2021 goals will guide its ongoing work throughout 2021 and lead to additional beneficial work on behalf of the Council and our community in coming years. 2020 Annual Report Police Advisory Commission I.2020 Goals and Key Initiatives: Provide a progress report on your 2020 goals and list the most significant activities undertaken in 2020. The PAC had a very productive year, although our goals and key initiatives changed significantly due to the murder of George Floyd in Minneapolis and COVID-19. Notably, following George Floyd’s murder, Governor Walz signed the Minnesota Police Accountability Act of 2020 into law. The Act, in part, requires police departments to update their Use of Force policies, and the PAC was directly involved in reviewing and providing recommendations for the SLP PD’s Use of Force policy. In addition, the PAC has focused on how George Floyd’s murder has impacted our community, the SLP PD, and the relationship between the two. The PAC hopes to work with neighborhood liaisons and host community conversations, and is actively preparing a plan for offering de-escalation trainings for interested community members to enhance their communication with one another. Goals and key initiatives involving in-person events were put on hold due to COVID- 19. For example, the 3rd Annual SLP Trail 5K Run/Walk scheduled for April 26, 2020 was cancelled. The pandemic also resulted in several PAC discussions surrounding “community-policing in the midst of COVID-19.” Additional updates on 2020 goals and key initiatives are as follows: a.Review Police department Body Worn Camera Policy and initial report b.The PAC reviewed department statistics about calls, stops and arrests at every PAC meeting. c.Partner with City Council on collecting race data on police/citizen contacts. i.Presented to the Council on methods for collecting race data, studies on traffic stop data and traffic surveys to ascertain racial makeup of driving population. We also evaluated a collaborative process for studying race data collection with the Edina PD. Study session meeting of June 14, 2021 (Item No. 2) Title: Police Advisory Commission (PAC) 2021 workplan review Page 3 2020 Annual Report Police Advisory Commission 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 2020 that will help make progress toward that particular goal. a.Community Outreach i.De-Escalation Training(s) ii.TBD b.Review department statistics at each PAC meeting i.Number and classification of calls ii.Number of reports filed iii.Crime trends c.Partner with City Council on collecting race data related to police interactions i.Continue to review methods for collecting race data and provide recommendations to City Council d.Partner with neighboring cities and their police advisory commissions i.Share ideas and best practices 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? Our aim is to engage all members of the St. Louis Park community, specifically those who may not be personally represented on the Commission, by hosting public forums and other community events related to policing topics. We also aim to continue partnering with the Human Rights Commission and Multicultural Advisory Committee for ideas and direction on continued outreach in the advancement of racial equity. Study session meeting of June 14, 2021 (Item No. 2) Title: Police Advisory Commission (PAC) 2021 workplan review Page 4 2020 Annual Report Police Advisory Commission IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities? The Police Advisory Commission is committed to being a leader in racial equity and inclusion by hosting public forums and participating in community events. By doing so, we are encouraging all community members to share their questions, comments and concerns on policing matters. In addition, through reviewing crime statistics, we hope to find opportunities for improvement to make the city a safer, more comfortable and reliable area. Study session meeting of June 14, 2021 (Item No. 2) Title: Police Advisory Commission (PAC) 2021 workplan review Page 5 Board and Commission Annual Workplan Presented to council: June 14, 2021 1 Work Plan Template│ Police Advisory Commission Time Frame Initiative Strategic Priorities Purpose (see page 2 for definitions) Outcome (fill in after completed) 2021 Community Outreach -De-escalation trainings - TBD ☐New Initiative X Continued Initiative☐Ongoing Responsibility X 1 ☐ 2 ☐ 3 X 4 X 5 ☐N/A X Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested)☐Formal Recommendation (council requested) 2021 Review Department Statics -Number and classification of calls -Number of Reports filed -Crime trends ☐New Initiative X Continued Initiative☐Ongoing Responsibility ☐1 ☐ 2 ☐ 3 X 4 X 5 ☐N/A X Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested)☐Formal Recommendation (council requested) 2021 Partner with City Council on collecting race data related to police interactions ☐New Initiative X Continued Initiative☐Ongoing Responsibility X 1 ☐ 2 ☐ 3 X 4 ☐ 5 ☐N/A X Commission Initiated Project X Council Initiated Project ☐Report Findings (council requested)☐Formal Recommendation (council requested) 2021 Partnering with neighboring cities and their police advisory commissions X New Initiative ☐Continued Initiative☐Ongoing Responsibility X 1 ☐ 2 ☐ 3☐4 X 5 ☐N/A X Commission Initiated Project ☐Council Initiated Project ☐Report Findings (council requested)☐Formal Recommendation (council requested) 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 Study session meeting of June 14, 2021 (Item No. 2) Title: Police Advisory Commission (PAC) 2021 workplan review Page 6 Board and Commission Annual Workplan Presented to council: June 14, 2021 2 Purpose: definitions 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. 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 majority of the commissioners' support Formal Recommendation Study session meeting of June 14, 2021 (Item No. 2) Title: Police Advisory Commission (PAC) 2021 workplan review Page 7 Board and Commission Annual Workplan Presented to council: June 14, 2021 3 Parking Lot 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: Explore opportunities to help police department with officer recruitment and retention Take part in police officer interview/selection Review Police Department Strategic 3-year Plan Possible priority for 2022 or 2023 Continue to participate in community events PAC members continue to participate in community events: Children’s First Ice-cream social, National Night Out, Parktacular. Study session meeting of June 14, 2021 (Item No. 2) Title: Police Advisory Commission (PAC) 2021 workplan review Page 8 Meeting: Study session Meeting date: June 14, 2021 Discussion item: 3 Executive summary Title: 2020 general fund balance/other funding options Recommended action: No formal action required. This is a policy level discussion to begin conversation on the allocation of available 2020 fund balance in the General Fund. In addition, information is provided as a follow-up to the budget discussion held in May regarding other funding sources/options. Policy consideration: What are the primary council goals relating to allocating available 2020 fund balance? Does council wish staff to pursue additional funding options for future projects/initiatives? Summary: Each year the council reviews the general fund balance and assigns any available fund balance to specific areas of the general fund or other funds. The city ended 2020 with a very healthy balance in the General Fund. This report discusses some high-level ideas on how to allocate that balance. At the May 10 study session discussion on the 2022 budget Council asked for more information on the implementation of an EDA levy and a local options sales tax. That information is provided in this report. Additional requests were made for the allocation of COVID relief money, tax increment finance information, and current debt schedules. This information will be coming under separate cover to the council. Lastly, the regulations for the American Recovery program are also out and we will briefly discuss those monies and thoughts for their future use. 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 June 14, 2021 (Item No. 3) Page 2 Title: 2020 general fund balance/other funding options Discussion Background: On May 10, 2021 staff presented a high-level overview of 2022 budget scenarios. Council directed staff to return with information on alternate funding sources (EDA Levy and local option sales tax). Those options and the pathway to them are included in this report. At the June 14, 2021 study session staff would like to discuss with the council the balance in the general fund at year end 2020. The city’s policy has been to keep 45% of the subsequent years general fund budget as a general fund balance for cash flow and other purposes. Keeping in line with that policy, there is approximately $6 million available to allocate for other purposes. Note that these available dollars should be considered as a onetime non-recurring resource and in general should only be used for onetime costs vs funding ongoing operations. What follows are various recommendations, ideas, and suggestions for allocating these dollars. Baseline fund balance allocation assumptions: As a standard practice to address potential economic volatility, for a number of years the city has reserved $500,000 in the General Fund to serve as a backstop if projected permit revenues do not meet the expected target for the coming year. Staff recommends doing the same in 2021/22. Two other items we recommend carrying over is an allocation for the police departments’ work on developing a traffic stop race data collection process and for undertaking a community satisfaction survey, both of which combined total $75,000. As discussed earlier this year, based on council direction staff also proposes allocating $500,000 in available fund balance and placed in the Climate Investment Fund which will be created later this year. After making the above allocations about $5 million is still available for reassignment. Recommendations for available fund balance: Staff has several recommendations for the remaining dollars. We can do all, some, or none of the following. The goals of council will help staff make final recommendations. •Insurance Fund We could assign a portion of the available dollars to the Insurance Fund. This would create a resource that could be used if the City is ever facing insurance claims above what our deductible would cover. Current limits on the city’s policy are $2,000,000 per occurrence and $3,000,000 aggregate. Similar to other cities, we currently do not waive the statutory municipal tort liability. The statutory tort liability is limited to a maximum of $500,000 per claimant and $1.5 million per occurrence. Our coverage limit is higher because there are some types of liability claims that aren’t subject to the statutory tort caps (e.g. claims made in federal court). The city would be responsible for anything above our coverage. Currently the cost to purchase excess liability coverage is $69,457 for $1 million of excess coverage each year. $2 million of excess liability coverage is $104,186 per year. Study session meeting of June 14, 2021 (Item No. 3) Page 3 Title: 2020 general fund balance/other funding options • Employee Development Fund The employee development fund needs additional monies to cover expense. We currently levy $150,000 a year to this fund, and it has exceeded that in expense several times over the last 5 years. This fund pays for employee development such as educational and wellness incentives. The primary expense however is the flex time payout when an employee leaves or retires. Several retirements in a single year cause a burden on the fund. The recommendation would be a small transfer to this fund to ensure it has cash for the upcoming retirements we are anticipating. • Pavement Management Our Pavement Management Fund has a large deficit ($2.6 million) that has added up over a couple of years. We have budgeted to correct this in 2021 but anticipate not all the negative cash will be restored even with the budget to fix it. Staff recommends using a portion of the general fund balance to put the fund in the black. If we chose not to do this, we will need to trim down some of our pavement projects for 2022 to address the deficit. • Sidewalks and Trails The 2022 pavement management project (West Fern Hill) was presented to council in January of 2021. Previously removed Connect the Park segments were added back into the scope. This will create the need to take on additional debt. We could allocate a portion of the available general fund balance to pay for the Connect the Park segments and eliminate the need for bonding. • Reschedule other Connect the Park Projects During the 2021 budget cycle we modified the schedule to extend the amount of time it will take to implement the plan. This was due to future levy increases Connect the Park was requiring. We could use some of our general fund balance to try and work CTP projects back in without increasing the current future levy projections. A more sustainable option would be to look at an additional funding source. A dedicated funding source other than a debt levy would allow us to resume the Connect the Park schedule to complete it sooner. A new funding source could also be used for the future maintenance costs on the new infrastructure. Outlined later in this report is information on a couple of other funding options. • Flattening the Levy Curve Our current long-range financial plan shows some upcoming challenges with high debt levies due to MSA road projects. We could use the available general fund balance to smooth out the levy in 2024 and 2025. This would result in a lower debt service need for a few years. Debt will naturally fall off starting in 2026 bringing the debt levy down or remaining steady depending on if we continue to add debt. • Other Possibilities? When looking at the council’s strategic priorities an allocation could be made to the Affordable Housing Trust Fund. However, given the trust fund already has a specific funding source (HRA levy) and that legislative approval is expected to be given to allow pooled TIF dollars to be placed in the trust fund, it may be more prudent to allocate the dollars elsewhere. Study session meeting of June 14, 2021 (Item No. 3) Page 4 Title: 2020 general fund balance/other funding options EDA Levy: We currently have an HRA levy to support our housing and redevelopment activities. We can also levy for Economic Development at the request of the EDA. An EDA levy would be limited to .01813 percent of taxable market value in the City. (Comparatively, the HRA levy is limited to .0185 percent of taxable market value) The city can have both an EDA and HRA levy. If the EDA choses to institute an EDA levy, it must prepare a request for the levy and present it to the City Council. The City Council must review the request and approve the EDA levy by resolution. There is no public hearing required. Once adopted, the EDA levy is included in the City’s preliminary and final levy certification processes and collected by the County as general City taxes. The EDA levy is remitted separately from the general levy directly to the EDA. For 2021, a maximum EDA levy would amount to approximately $1,408,440. Comparatively, our 2021 HRA levy is $1,437,183. Local Option Sales Tax: In 2019, the city council discussed a local option sales tax to help pay for regionally significant infrastructure projects. Local governments, except for counties, are generally prohibited by statute from imposing sales taxes. Counties are allowed by statute to impose general sales taxes to fund transportation and transit. A local options sales tax for cities is an option that is available through special legislation. The law was modified significantly in 2019 to emphasize projects of regional significance. State statute, Minnesota Statute (M.S.) 297A.99 and M.S. 477A.016 , have very specific requirements and limitations for using a local option sales tax. In order to implement a local options sales tax a city must: • determine up to five capital projects of regional significance; • describe benefits to non-residents and businesses; • propose a sales tax rate; • determine the amount of revenue needed; and • provide the anticipated date of when the sales tax will expire. The selected projects must be of regional significance and result in benefits to both St. Louis Park residents and businesses and to non-resident visitors and businesses. Examples of projects the council considered in 2019 include Cedar Lake Road (TH 169 to Kentucky Avenue), Louisiana Avenue (I394 to Walker Street), Shelard Parkway area roadways, Louisiana LRT station area roadways and Texas Avenue/ Minnetonka Boulevard intersection. According to the local option sales tax analysis conducted by University of Minnesota, Extension, of the $1.09 billion total taxable sales in St. Louis Park in 2017, approximately $1 billion would be subject to a local option sales tax. Of the $1 billion of taxable sales, approximately 54.8% of sales would come from non-residents and 45.2% would come from St. Louis Park Residents. The assumed sales tax at that time of 0.5% (one half of one percent) would generate $5 million dollars a year. As an example, a $10 purchase is estimated to generate five cents. If the city council is interested in moving forward with local option sales tax during the upcoming year, the council must submit a resolution to the Senate and House Tax Committees by January 31, 2022 if it wants legislation introduced indicating its desire to impose the tax. During the legislative session, the city would work with legislators to pass special legislation authorizing the imposition of the tax. If approved, a voter-approved referendum at a general election would be required before the implementation of the tax. This vote would need to take Study session meeting of June 14, 2021 (Item No. 3) Page 5 Title: 2020 general fund balance/other funding options place within two years of passing of special legislation. A separate vote on the ballot is required for each project (up to five projects with a vote for each) that was granted legislative approval. If approved, the sales tax would be administered by the Minnesota Department of Revenue. Update on American Recovery Act Funds: We have finally received information on our allocation from the American Recovery Act. St. Louis park is eligible for up to $5,109,510.00. Some broad use categories for this money are listed below. • Responding to the public health emergency o COVID-19 mitigation o Behavioral health care o Public health resources • Addressing negative economic impacts o Workers and families o Small business o Impacted industries o Public sector • Serving the hardest hit o Health disparities o Housing and Neighborhoods o Educational disparities o Healthy environments • Improving access to infrastructure o Water and Sanitary Sewer o Broadband Some of the above were eligible CARES act expenditures, but some of them are new. The American Recovery Act monies have broader uses. We are also able to spend the money through December 31, 2024. This gives us a lot of time to strategically spend the money where it is needed over the next several years. Keep in mind that in addition to the money we are receiving in St. Louis Park, all kinds of new federal programs have or will be created around housing, small business assistance, and capital projects. We want to be strategic and not double up if there is an existing program available. Initial thoughts from staff for the American Recovery Funds include: • Set aside for tax court petitions (a looming and very real issue given the pandemic) • Set aside for potential COVID implications (revenue loss, another shutdown, etc.) • Community mental health initiatives (including PD) • Utility infrastructure (mitigate rate increases or accelerate watermain replacement schedule?) • Broadband (expedite fiber to the premises initiative in traditionally underserved areas?) It’s important to remember that with this new money we don’t have to make decisions on spending it quickly. For the CARE’s dollars that was not the case. Meeting: Study session Meeting date: June 14, 2021 Discussion item: 4 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 sessions scheduled for June 15, 17 and 21, 2021 and the regularly scheduled study session on June 28, 2021. Policy consideration: Not applicable. Summary: This report summarizes the proposed agenda for the special study sessions scheduled for June 15, 17 and 21, 2021 and the regularly scheduled study session on June 28, 2021. Also attached to this report is: - Study session discussion topics and timeline - Proposed topics for future study session discussion Topic Proposed by Councilmember Establishing a food security task force Tim Brausen and Margaret Rog Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Tentative agenda – June 15, 17, 21 and 28, 2021 Study session discussion topics and timeline Proposed topics for future study session discussion Prepared by: Debbie Fischer, administrative services office assistant Reviewed by: Maria Solano, interim administrative services officer Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Study session meeting of June 14, 2021 (Item No. 4) Page 2 Title: Future study session agenda planning and prioritization June 15 and 17, 2021. 3 p.m. Special study session – community room City council will be conducting a second round of interviews with finalists for the city manager position. June 21, 2021. 5 p.m. Special study session – community room 1.City manager recruitment This meeting will provide time for council to review the additional data gathered at the June 15 and 17, 2021 second round interviews and determine their top candidate for the city manager position. June 28, 2021. 6:30 p.m. Study Session – council chambers Tentative discussion items 1.Annual financial report for year ended Dec. 31, 2020 – auditors discussion and review – administrative services (30 minutes) The city auditor (Redpath and Company) will present the annual audit results and opinion issued on the 2020 comprehensive Annual Financial Report. 2.Environment & sustainability commission workplan review – building & energy (60 minutes) Annual workplan update from the police advisory commission. 3.Elections 2021 – administrative services (60 minutes) Elections staff will provide an overview of what to expect in the 2021 local election cycle including a brief review of the ranked-choice system and elections timeline, as well as updates on preparations for redistricting and voter outreach and education initiatives. 4.Creating pathways to homeownership for BIPOC individuals and families – community development (30 minutes) It is recognized that historical and institutional racism has disproportionately created housing challenges and disparities for BIPOC communities. Over the past 6 months, staff have been working to create a homeownership program designed to address these historic injustices and inequities, to facilitate affordable homeownership for low-income, BIPOC and other underrepresented households. 5.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 6.May 2021 monthly financial report 7.Minnetonka Blvd. development update Study session meeting of June 14, 2021 (Item No. 4) 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 3 Public process expectations and outcomes Staff is working on the approach for undertaking this discussion. 8/23/21 5 Community and neighborhood sidewalk designations To be combined w/ Connect the Park discussion. 3rd qtr. 2021 6 Transportation commission 9/27/21 7 Easy access to nature, across city, starting w/ low-income neighborhoods/ WHNC Access Fund *On hold pending direction from school district.*On hold 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 + 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. 6/28/21 discussion 10 Boards and commissions general review Discussed 1/25/21. Revisit after the annual workplan process. 3rd qtr. 2021 + Semi-trailer truck parking Discussed 5/24/21 Ordinance to be drafted - 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 June 14, 2021 (Item No. 4) Page 4 Title: Future study session agenda planning and prioritization Meeting: Study session Meeting date: June 14, 2021 Written report: 5 Executive summary Title: Housing Authority (HA) 2021 workplan review Recommended action: None required. The work plan provides information to the council related to the HA board’s workplan for 2021. Policy consideration: Does the workplan and priorities align with city goals and priorities? Summary: The HA board respectfully submits the 2020 annual report to city council. Included at the end of the HA board report is the board’s 2021 work plan. The HA’s mission statement is as follows: The Housing Authority develops, integrates, and operates housing and housing assistance policies and programs to ensure the availability of safe, affordable, and desirable housing options that meet the diverse, lifecycle housing needs of all of the residents of St. Louis Park. Current HA board members: •Catherine Courtney – chair •Richard Webb – vice-chair •Catherine Johnson •Paul Beck •Thom Miller Financial or budget considerations: Not applicable. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Housing Authority annual report 2021 workplan Prepared by: Michele Schnitker, community development deputy director/housing supervisor Reviewed by: Karen Barton, community development director Approved by: Tom Harmening, city manager 2020 Annual Report Housing Authority I.2020 Goals and Key Initiatives: Provide a progress report on your 2020 goals and list the most significant activities undertaken in 2020. a.Oversee the administration of the Housing Authority’s (HA) core federally funded rental assistance programs including review and approval of program policies, ensuring sound fiscal policies and funding administration, approve the submission of competitive grant applications to secure new and renewal funding and review and approve the 5-year Agency Plan and the capital improvement plan for the Public Housing properties. i.Despite the Coronavirus pandemic, the HA oversaw the fiscal and administrative integrity of HUD’s federally funded rental assistance programs ensuring maximum utilization and administration at a level to maintain HUD’s High Performer Standard in both the Public Housing and Housing Choice Voucher (HCV) programs. Staff adjusted to working remotely and the Board adopted HUD regulatory waivers along with modified procedures and processes to minimize any negative impact to households receiving housing assistance during the pandemic. Staff continued to issue new rental assistance vouchers allocation for the HCV program, Mainstream for non-elderly disabled individuals and Family Unification Program in partnership with Hennepin County child protection services. The Public Housing program continued to maintain full occupancy and staff worked with tenants whose household income was impacted by the pandemic to ensure affordable rent levels. Following modified procedures, staff continued to address maintenance needs and implement capital improvements in the Public Housing properties. Combined, the housing programs administered by the HA provide rental assistance to approximately 500 low-income households in the community. For the third year in a row, the HA had a clean financial audit with no findings for FYE 2019. ii.The HA Board continued to support staff’s submission of competitive grants applications for HUD renewal funds to ensure continuation of the Family Self- Sufficiency (FSS) Program and the Resident Service Coordinator at Hamilton House. The HA received a 2021 renewal grant for the FSS program. The HA received an additional allocation of 15 Family Unification Program (FUP) vouchers adding to the 12 FUP vouchers awarded in 2019. An additional allocation of 4 Mainstream rental vouchers was also received as part of the Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 2 2020 Annual Report Housing Authority cares act funding distribution increasing the number of Mainstream vouchers administered by the HA to 15. iii.The HA Board held and presided over the annual HA agency plan public hearing, reviewed and approved the HA’s capital improvement plans and annual budget for the public housing properties owned and managed by the HA. iv.The HA Board continued to support HA partnerships to create and administer rental assistance opportunities with Hennepin County, Wayside, Vail Place, STEP and the SLP School District and continued to seek future opportunities to partner. The HA Board approved the project basing of 12 Housing Choice Vouchers at Perspectives Inc. supportive housing development and an additional voucher, for a total of 16 project-based vouchers, at Wayside’s supportive housing program. The number of participants on the Kids in the Park rental assistance program was increased from 14 to 17 participants. b.Oversee the administration of programs that support/promote a well-maintained housing stock through the use of the city’s housing rehab programs including the Move-Up-In-The-Park programs, the Discount Loan Programs, the Emergency Rehab Grants and the Housing Improvement Assistance (HIA) designation. Continue to explore opportunities to address unmet housing rehab needs. i.The board reviewed and provided input to staff on the proposed annual allocation of the CDBG funds, proposed modifications to existing housing programs and reviewed and approved initial and renewal contracts related to the administration of various housing programs. c.Explore/support/provide input on strategies to promote the creation and preservation of affordable rental and homeownership options for low and moderate-income households in the community including both new construction and preservation of existing naturally occurring affordable housing. ii.The board reviewed and provided input to staff and council on new housing initiatives and programs to create and preserve affordable housing including the Crime Free ordinance and the Notice of Eviction requirement. The HA board also approved the implementation of a financial incentive program to increase rental owner participation in the Housing Choice Voucher program. Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 3 2020 Annual Report Housing Authority 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 2021 that will help make progress toward that goal. a.Oversee the administration of the Housing Authority’s core federally funded rental assistance programs including review and approval of program policies, ensuring sound fiscal policies and funding administration, approving the submission of competitive grant applications to secure new and renewal funding and review and approval of the 5-year capital improvement plan for the Public Housing properties. i.Oversee the fiscal and administrative integrity of HUD’s federally funded rental assistance programs ensuring maximize utilization and administration at a level to maintain HUD’s High Performer Standard. ii.Apply for additional subsidies/grants to support additional affordable units and programming. b.Support and provide input on staffs continued exploration of strategies to promote the creation and preservation of affordable rental and homeownership options for low-and moderate-income households in the community. These strategies include both new construction and preservation of existing naturally occurring affordable housing and the implementation of tenant protection initiatives. i.Staff will continue to explore and develop programs together with regional partners and housing industry groups to preserve NOAH and to explore the creation of affordable housing opportunities and tenant protection initiatives that will be reviewed with the HA board for their input. Staff plan to create a homeownership program designed to address the disparities in homeownership for Black, Indigenous and persons of color (BIPOC) households and other underserved populations. The Kids in the Park rental assistance program will also increase from 17 to 20 participants in 2021. c.Oversee the administration of programs that support/promote a well-maintained housing stock using the city’s housing rehab programs including the Move-Up-In-The- Park programs, the Discount Loan Programs, the Emergency Rehab Grants and the Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 4 2020 Annual Report Housing Authority HIA designation. Continue to explore opportunities to address unmet housing rehab needs. i.Continue to oversee administrative contracts and provide review and input on the city’s housing rehab and design programs. Evaluate programs annually to ensure they continue to meet the needs of the community and continue to identify and explore new initiatives to meet unmet needs. 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? i.The HA will administer the core housing programs in conformity with the Civil Rights Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, and title II of the Americans with Disabilities `Act of 1990, and will affirmatively further fair housing by examining programs or proposed programs with a race an equity lens, identifying any impediments to fair housing choice within those program. Staff will work with the Fair Housing Coordinator to ensure that anyone contacting the city with fair housing complaints to appropriate resources. The Board will attend Race and Equity training provided by the city. IV.Strategic Priorities: How is the commission’s work supporting the strategic priorities? The work of the HA board and staff supports several of the city’s strategic priorities but most directly supports the following strategic priority. St. Louis Park is committed to providing a broad range of housing and neighborhood- oriented development. •Providing more diverse and creative housing choices to meet the needs of current and future residents while preserving existing affordable housing. •Fostering and facilitating reinvestment and redevelopment of neighborhood-oriented businesses and services. •Conducting research to further understand what people want and need access to in the community, i.e., food, services, housing options, business opportunities, gathering spaces. Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 5 Board and Commission Annual Workplan Presented to council: June 14, 2021 1 Work Plan Template│ Housing Authority Time Frame Initiative Strategic Priorities Purpose (see page 2 for definitions) Outcome (fill in after completed) 2021 Oversee the administration of the Housing Authority’s core federally funded rental assistance programs including review and approval of program policies, ensuring sound fiscal policies and funding administration, approving the submission of competitive grant applications to secure new and renewal funding and review and approval of the 5-year capital improvement plan for the Public Housing properties. ☐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) 2021 Support and provide input on staffs continued exploration of strategies to promote the creation and preservation of affordable rental and homeownership options for low-and moderate-income households in the community. These strategies include both new construction and preservation of existing naturally occurring affordable housing and the implementation of tenant protection initiatives. ☐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) Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 6 Board and Commission Annual Workplan 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 2021 Oversee the administration of programs that support/promote a well-maintained housing stock using the city’s housing rehab programs including the Move-Up-In-The-Park programs, the Discount Loan Programs, the Emergency Rehab Grants and the HIA designation. Continue to explore opportunities to address unmet housing rehab 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) ☐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) Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 7 Board and Commission Annual Workplan 3 Purpose: definitions 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. •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 Recommendation Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 8 Board and Commission Annual Workplan 4 Parking Lot 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: Study session meeting of June 14, 2021 (Item No. 5) Title: Housing Authority (HA) 2021 workplan review Page 9 Meeting: Study session Meeting date: June 14, 2021 Written report: 6 Executive summary Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Recommended action: Staff and the developer would like feedback on the updated conceptual site plan and project program for the Beltline Boulevard Station Redevelopment Site at the southeast corner of CSAH 25 and Beltline Boulevard. Policy consideration: Does city council support the distribution of an environmental assessment worksheet (EAW) for Beltline Boulevard Station Redevelopment in the Environmental Quality Board (EQB) Monitor? Summary: Sherman proposes to construct the following building components on the 6.6-acre site at the southeast corner of CSAH 25 and Beltline Boulevard: •Seven-story mixed-use building with 6 levels of market rate housing (159 units) and approximately 20,000 square feet of neighborhood commercial space, potentially anchored by a grocer. •Five-story market rate apartment building with 160 units. •Four-story all affordable apartment building with 82 units, 77 units will be available at 60% AMI and five units will be available at 30% AMI. 22 units will be 3-bedrooms. •362-stall parking ramp, which is proposed to include 268 park and ride stalls, 79 commercial parking stalls and approximately 1,8000 square feet of retail/commercial space. •Sustainable features including on and off-site solar, green space, plazas, and public art will be incorporated throughout the development. The development will adhere to the city’s green building policy. The site meets the state’s requirements for a mandatory environmental assessment worksheet (EAW) with more than 375 attached residential dwelling units. An EAW is being prepared for the Beltline Boulevard Station redevelopment site. When the draft is complete, staff will ask city council to authorize distribution of the EAW. Approximately 6 weeks later city council will be asked to approve a resolution of findings and a declaration as to whether additional review (an environmental impact statement) is needed. These actions do not obligate the city council to future approval of the proposed development. Financial or budget considerations: See the accompanying report in this meeting’s agenda related to the application for tax increment financing assistance. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Site plan Concept images Prepared by: Jennifer Monson, senior planner Reviewed by: Sean Walther, planning and zoning supervisor; Karen Barton, community development director Approved by: Tom Harmening, city manager Study session meeting of June 14, 2021 (Item No. 6) Page 2 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Discussion Site information: The proposed redevelopment site is located southeast quadrant of CSAH 25 and Beltline Boulevard. The site is immediately north of the Southwest Light Rail (SWLRT) Beltline Boulevard Station. The site is in the Triangle neighborhood. Site area (acres): ~7.0 acres Current use: Vacant land Surrounding land uses: North: CSAH25 East: General Office Products South: SWLRT Beltline Station West: Beltline Boulevard Current 2040 land use guidance Current zoning TOD - transit oriented development I-G general industrial ROW - right of way Proposed 2040 land use guidance Proposed zoning TOD - transit oriented development PUD planned unit development ROW - right of way Study session meeting of June 14, 2021 (Item No. 6) Page 3 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Background: On November 17, 2014, the council approved a resolution authorizing submittal of a federal congestion mitigation air quality (CMAQ) grant for a structured parking ramp to be located immediately north of the SWLRT Beltline Boulevard Station platform in lieu of a large parking lot. The EDA was subsequently awarded $6.4 million through the Federal Transit Administration’s (FTA) CMAQ program that is regionally administered by the Metropolitan Council. In July 2017, the EDA conducted a formal request for proposals process to solicit transit- oriented development proposals for the Beltline Boulevard Station site. The development objectives for the site listed in the request for proposals were as follows: • Construct a signature, transit-oriented development (TOD), • Transform the SWLRT Beltline Boulevard Station Redevelopment Site into an active, TOD-focused place with: − Mixed use development (including multi-family residential, office and small commercial components), − Housing density to support transit ridership, − Mixed income housing (both market rate and affordable), − High-quality shared site amenities, • Optimize the site’s development and employment potential, • Integrate development with the adjacent SWLRT Beltline Boulevard Station and connect with the surrounding areas, • Build a parking structure for required park-and-ride purposes, • Demonstrate high standards for environmental sustainability. The preferred Development Program for the site described in the request for proposals included: • Multi-story, multi-family, mixed-use (commercial and residential), mixed-income, residential buildings. • More than 180 multi-family housing units consistent with the city’s Inclusionary Housing Policy. • At least 8,000 square feet of ground floor commercial space. • Adequate parking to serve the needs of the proposed redevelopment, primarily located below buildings or in structures. • A multi-story office building of at least 80,000 square feet containing ground floor retail/service spaces. Structured underground parking may be included but is not required. • Multi-story parking structure to accommodate the Metropolitan Council’s required 268- park-and-ride stalls. Requires hazardous materials removal and soil remediation. • Design of the parking structure must be coordinated with the city, SWLRT project and the Southwest LRT Project Office (SPO) to ensure park-and-ride and site requirements are met. • The parking structure may be designed to accommodate the required parking for the adjacent office building. The EDA determined Sherman Associates’ proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. Study session meeting of June 14, 2021 (Item No. 6) Page 4 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Present considerations: Beltline Boulevard Station will be developed in two phases. Phase I includes: • Building one is a seven-story mixed-use building with six levels of market rate housing (159 units) and approximately 20,000 square feet of neighborhood commercial space, potentially anchored by a grocer. It would be constructed at the southeast corner of CSAH 25 and Beltline Boulevard • A 362-stall parking ramp, including 268 park and ride stalls for the SWLRT, 79 stalls for commercial parking stalls and approximately 2,000 square feet of retail/commercial space. • Building two is a five-story market rate apartment building with 160 units to be constructed east of Building I and fronting CSAH 25. Phase II includes: • Building three is a four-story, 82-unit apartment building to be constructed in the southeast corner of the redevelopment site. All the units in this building would be affordable with 77 units available to households at 60% AMI and five units would be available to households at 30% AMI. This building would also feature 67 (82%) two bedrooms units or larger. Twenty-two units (27%) are three bedrooms. The average unit floor area is 1,029 square feet. Altogether, the proposed redevelopment will have 401 apartment units of which 319 (80%) will be market rate and 82 (20%) would be affordable for 25 years. The housing units will include a combination of studios, alcoves, and one, two and three bedrooms. Proposed site plan Study session meeting of June 14, 2021 (Item No. 6) Page 5 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Site layout: The site design is similar to what was presented in 2018 when the EDA choose to work with Sherman for the development of this site but has been further refined. Located on the northwest corner, the seven-story, commercial mixed-use building establishes the primary offsite views of the site. The ground floor commercial use, which is potentially a grocer, fronts Beltline Boulevard, CSAH 25, and an interior surface parking lot. Loading for the commercial uses is proposed on the building’s south side, adjacent to the parking ramp. Pedestrian entrances to the commercial use will be provided at the intersection of Beltline Boulevard and CSAH 25 and from the parking lot. There are opportunities for additional pedestrian entrances along Beltline Boulevard as shown in the site plan. The ground floor, street-facing commercial facades will be expected to adhere to the city’s transparency ordinance. Above the commercial use, residential floors are likely to be stepped back along Beltline Boulevard to reduce the visual massing of the building on the street. Amenity space is located inside the building and on the roof of the building’s east wing. The parking garage, which is separated from the mixed-use building by a pedestrian walkway, is located on the southwest corner of the site immediately across from the Beltline Boulevard Station. The parking garage includes approximately 1,800 square feet of commercial in the southwest corner. Residential parking for the seven-story building is accessed through the parking garage, from an entrance that is separate from the public park and ride entrance. The final height of the parking garage is yet to be determined. The two residential buildings are on the east side of the site. The five-story, market rate building is in the southeast corner and the 4-story affordable building is in the northeast corner. Both buildings will include ground floor units with individual entrances, balconies, underground parking and residential amenities. Building design: During a 2018 neighborhood meeting held for the site, neighbors expressed a desire for innovative and unique architecture. This sentiment was echoed by members of city council for various developments around the city. The architect is still in the architectural design process and provided some precedent images of the styles they are exploring (see attached). In general, the architects would like the buildings to exhibit a prominent presence along the street. They anticipate each building will have its own unique feel surrounding the site but will visually tie together within the site. The development team is still exploring unique options for the cladding around the parking garage and envision opportunities to incorporate public art. Public spaces: Public and semi-public spaces are located throughout the site. These spaces are currently being designed, but are planned to include a pocket park and dog run between the two northern buildings, a wide pedestrian space running north-south through the site, some public space located near a water retention garden on the northeast corner, and a public plaza south of the “backage” road, immediately adjacent to Metro Transit’s bus stop. The architects propose designing portions of parking areas to be like a woonerf, or a shared space for pedestrians, bicyclists, and cars. Ideally, the developer would like to be able to close portions of the parking areas to provide for community gathering areas, farmers markets, and the like. Study session meeting of June 14, 2021 (Item No. 6) Page 6 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Environmental assessment worksheet (EAW): An EAW is being prepared for the Beltline Boulevard Station redevelopment site per Minnesota Rules 4410.4300. The City of St. Louis Park is the responsible government unit (RGU) for review of the EAW. Staff will request city council to approve a resolution authorizing distribution of the EAW. Then staff will distribute the EAW to the required list of jurisdictions and send an announcement for publication in the EQB Monitor. Staff will collect and coordinate responses to all comments received during a 30-day response period. Then city council will be asked to approve a resolution of findings and a declaration as to whether additional environmental review (an environmental impact statement) is needed. These actions do not obligate the city council to future approval of the proposed development. Traffic study: A number of mobility network improvements are being completed as part of the SWLRT project, including the removal of the Highway 7 frontage road adjacent to this redevelopment site, the construction of a “backage” road near the LRT station, a new road connection at Monterey Boulevard with a right-in only off CSAH 25, and a new signalized intersection at Lynn Avenue and CSAH 25. Sherman proposes pedestrian and bicycle infrastructure on all street frontages surrounding the site. A multi-use trail and a sidewalk are proposed along CSAH 25 and Beltline Boulevard, a multi-use trail is proposed along the north side of the backage road, and sidewalks are proposed along the west side of Monterey Avenue adjacent to the project. Pedestrian connections are also provided through the site. A traffic study is being completed for the proposed development to evaluate the future conditions within the study area and analyze traffic and circulation impacts to the adjacent roadway network. The developer proposes relocating portions of the backage road slightly north to accommodate the installation of a ¾-intersection on Beltline Boulevard to allow southbound cars on Beltline to turn left into the development. Left-hand turns from the backage road onto Beltline Boulevard would be prohibited. Similar intersections have been installed on Wooddale Avenue near the Highway 7 Frontage Road and were installed in 2020 at Monterey Drive and Park Commons Drive. The developer also proposes installing a right-out at Monterey Drive and CSAH 25. As currently designed as part of the SWLRT project, this is a right-in only. The developer and prospective grocer tenant believe that these access points are necessary to have a successful grocer at the site. The traffic study is in the process of being finalized and will be published as part of the EAW. Utility relocations: The development will need to relocate a Metropolitan Council force sewer main from the existing CSAH 25 Frontage Road closer to CSAH 25. This relocation will require Metropolitan Council and Hennepin County approvals. A number of water, sewer and stormwater utilities running through the site will also need to be relocated. Study session meeting of June 14, 2021 (Item No. 6) Page 7 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Inclusionary housing policy: The development is subject to the city’s inclusionary housing policy. The Beltline Station development would be mixed income with 82 units (20 percent) offered at affordable rents in one building. Specifically, 77 units would offer affordable rents to households at 60% AMI and five units would offer affordable rents to households at 30% AMI, exceeding the city’s inclusionary housing requirements. The development would also provide 22 three-bedroom units (27 percent of the affordable units) to accommodate larger families. An all affordable building would differ from the Inclusionary Housing Policy requirement that all affordable units be spread between the various buildings, however, in this case, it is the most efficient financing and design structure for the affordable housing. It allows the developer to deliver more affordable housing units, targeting areas of greatest housing need including: • Family sized housing units. o 67 (82%) of the affordable units would be two bedrooms or larger. o 22 units (27%) would be three bedrooms. o The average unit floor area would be 1,029. • More deeply affordable units: Five (5) units at 30% AMI • Well designed and quality housing units in any product type. Examples include: o Two- and three-bedroom units generally have two baths. o Structured/tempered parking. o Ample common area amenities to serve the needs of residents/families. o Exterior building materials that complement and match the adjacent market rate buildings. o Most units would have a balcony or walk out patio. Climate Action Plan: The developer understands the city’s desire to reduce the city’s overall carbon emissions by 55 percent by 2030 and the development will exceed the city’s green building policy requirements as detailed below. The development is also able to contribute to the city’s goal of reducing vehicle emissions by 25 percent. The site is located adjacent to the Beltline Boulevard LRT station and the Cedar Lake LRT Regional Trail. In addition, there is great multimodal access immediately adjacent and surrounding the site including sidewalks, multi- use trails, and frequent bus service once LRT is operational. These modes link the site to the immediate amenities, but also to the greater metro area without needing to rely on a vehicle. Green building policy: The development will adhere to the city’s green building policy and Sherman intends to exceed the city’s requirements. Examples of sustainable design standards Sherman has implemented in the past include LEED, Minnesota Green Communities, National Green Building Standards, SB2030/B3 and ENERGY STAR. Sherman developed, owns and operates two solar gardens under the community solar program totaling 6.75 megawatts. Buildings and tenants at Beltline could subscribe to Sherman’s solar gardens under the community solar program. Next steps: Staff will request city council authorize distribution of the EAW on June 21, 2021. Following publication in the EQB Monitor on June 28, 2021, there will be a 30-day comment period. Staff will collect and coordinate the response to all comments that are received, and city council will be asked to approve a resolution with findings and declaration of whether further environmental review is necessary. None of these actions obligate the city council to future approval of the proposed development. Study session meeting of June 14, 2021 (Item No. 6) Page 8 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Also, on June 21, 2021, staff will request the city and EDA extend the preliminary development agreement to July 31, 2022. Please refer to the June 14, 2021 companion staff report related to the application for tax increment financing assistance for more information. Future actions: There are several approvals needed from the city and other agencies for this project to proceed. Requests for city council/EDA approvals include: 1.EAW findings and declaration 2.Financial assistance request 3.Utility and right-of-way vacations including vacation of the frontage road 4.Comprehensive plan amendment to re-guide right-of-way to transit-oriented development 5.Preliminary and final plat, including the creation of the right-of-way for the backage road and Monterey Drive 6.Preliminary and final PUD 7.Transfer of the vacated frontage road right-of-way from the city to the EDA then to Sherman 8.Purchase and Redevelopment Contract (including tax increment financing) Requests for other agencies 1.Any permits identified from other agencies during the EAW process 2.Hennepin County vacation of right of way along CSAH25 3.Hennepin County approval of a right-out onto CSAH25 from Monterey Drive 4.Metropolitan Council / Hennepin County approvals for relocation of the force sewer main 5.Metropolitan Council approval of the ¾ intersection at Beltline Boulevard and the backage road and park and ride ramp design LOADING 1,643 SF RAMP DN. 6.5% PUBLIC PARKING LVL 1 (79 STALLS) RAMP UP 6.5% 18 20 18 9 14 10 RAMP DN. RAMP DN. 13 LEASING AMENITY AMENITY AMENITY LOBBY/ LEASING LOBBY/ LEASING POCKET PARK DOG RUN PLAYGROUND 11 15 15 13 AMENITYLOBBY PEDESTRIAN PATH CANOPY STORM RETENTION 24 6 SCREENING WATER RETENTION GARDEN MONTEREY AVE.BELTLINE BLVD.BUILDING 3 5-STORY MARKET RATE 160 UNITS GROCERY 19,508 SF 7-STORY MIXED USE 159 UNITS BUILDING 2 4-STORY AFFORDABLE 84 UNITS H IG H W A Y 2 5 B E L T L IN E S T A T IO N BUILDING 1 PARKING RAMP 5' - 0" 6' - 0" 6' - 0"3' - 0"5' - 0"6' - 0"6' - 0"RETAIL 1,800 SF ENTRY ENTRY OPPORTUNITY FOR ADDITIONAL EXTERIOR ENTRIES PUBLIC SEATING10' - 0"1' - 0"10' - 0"5' - 0"10' - 0"8' - 0"6' - 0" 8' - 0" 8' - 0" 5' - 0" C C C C C LOADING C E D A R L A K E T R A IL O V E R P A S S B U S S T O P N SITE PLAN 2146.02BELTLINE BLVD.06/01/2021 Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 9 2146.02BELTLINE BLVD.06/01/21 AERIAL LOOKING SOUTHEAST AERIAL LOOKING SOUTHWEST PRELIMINARY BUILDING MASSING Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 10 2146.02BELTLINE BLVD.06/01/21 PRELIMINARY BUILDING MASSING AERIAL LOOKING NORTHEAST AERIAL LOOKING NORTHWEST Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 11 2146.02BELTLINE BLVD.06/01/21 LILAC WAY –preference to restore native trees or shrubbery, rows of lilacs like D.C. cherry blossoms, three reserved park/picnic areas EXPERIMENTAL GRAIN ELEVATOR – innovation in agriculture and first of its kind. RAILROAD – importance to city development and vitality PARKS – destinations along major mobility corridors, support needs of the community Beltline Visioning LOCAL HISTORY Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 12 2146.02BELTLINE BLVD.06/01/21 Beltline Visioning GREEN/SUSTAINABILITY Saint Louis Park - 2017 Climate Action Plan •Reduce energy consumption in large commercial buildings by 30% •Reduce energy consumption in small-mid size commercial buildings •Design and build all new construction to be net- zero energy •Reduction of energy consumption in residential buildings by 30% •Achieve 100% renewable energy •Reduce vehicle emissions by 25% •Reduce solid waste by 50% Environmental Stewardship •Residents value park systems and natural areas in neighborhoods The site is a hub for transportation; buses, rail, and bikes will have great access. Use of green stormwater management and renewable energy opportunities will set a precedent for vital green initiative in the built environment. Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 13 2146.02BELTLINE BLVD.06/01/21 Exterior Visioning PRESENCE/PROMINENCE Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 14 2146.02BELTLINE BLVD.06/01/21 Exterior Visioning CAMPOS/MULTI-USE Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 15 2146.02BELTLINE BLVD.06/01/21 Exterior Visioning SHELL/CARAPACE GJ1 Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 16 2146.02BELTLINE BLVD.06/01/21 Exterior Visioning SEAM/STITCH Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 17 2146.02BELTLINE BLVD. 06/01/21 Exterior Visioning EXPRESSIVE/IDENTIFIER Study session meeting of June 14, 2021 (Item No. 6) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 18 Meeting: Study session Meeting date: June 14, 2021 Written report: 7 Executive summary Title: Application for Tax Increment Financing Assistance – Beltline Station Recommended action: This staff report outlines Sherman Associates’ application for Tax Increment Financing (TIF) in connection with its proposed Beltline Station development. Policy consideration: Is the EDA willing to extend its Preliminary Development Agreement with Sherman Associates relative to the Beltline Station redevelopment proposed at the southeast corner of CSAH 25 and Beltline Boulevard? Is the EDA willing to subsequently consider entering into a redevelopment contract to reimburse the Developer for up to $8.7 million in qualified costs through tax increment financing (TIF) generated by the multi-phase project to enable it to achieve financial feasibility and is it willing to consider providing $3.9 million in TIF assistance needed for construction of the park & ride ramp required by the Metropolitan Council? Summary: Sherman Associates (“Developer”) has a Preliminary Development Agreement with the EDA and city for the seven-acre site at the southeast corner of CSAH 25 and Beltline Boulevard adjacent to the SWLRT Beltline Blvd. Station. The multi-phase, mixed use, mixed income, transit-oriented development would include the following components: •Seven-story mixed-use building with six levels of market rate housing (159 units) and approximately 20,000 SF of neighborhood commercial potentially anchored by a grocer. •Five-story market rate apartment building with 160 units. •Four-story all affordable apartment building with 82 units, of which 77 would be available at 60% AMI and five units would be available at 30% AMI. 22 units would be three-bedrooms. •320-stall parking ramp, which is proposed to include 268 park & ride stalls, 52 commercial parking stalls and approximately 1,800 SF of commercial/cafe space. •On and off-site solar, space for public events, site amenities and public art would be incorporated throughout the development. Altogether, the $130 million development would have approximately 401 apartment units of which 82 (20%) would be affordable for 25 years. The level of affordable rents (between 30 and 60 percent of AMI) would exceed the city's Inclusionary Housing Policy requirements. Financial or budget considerations: Due to considerable extraordinary costs associated with the redevelopment site and other costs associated with meeting city expectations and requirements, the Developer applied to the EDA for tax increment financing (TIF) assistance. Upon examination of the project’s pro forma, the EDA’s financial consultant determined that up to $8.7 million in TIF assistance is warranted to enable the major transit-oriented development to proceed, and up to $3.9 million in TIF assistance is warranted for the park & ride ramp. Such assistance would be provided via pay-as-you-go TIF Notes and would derive from the establishment of a new redevelopment TIF district. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Greg Hunt, economic dev. coordinator; Jason Aarsvold, sr. municipal advisor, Ehlers Reviewed by: Karen Barton, community development director Approved by: Cindy Walsh, interim deputy city manager/operation and recreation director Study session meeting of June 14, 2021 (Item No. 7) Page 2 Title: Application for Tax Increment Financing Assistance – Beltline Station Discussion Site information: The Beltline Blvd. Station Redevelopment Site is located at the southeast quadrant of the CSAH 25 (an extension of State Highway 7) and Beltline Blvd. intersection; less than ½ mile east of Highway 100. The site is bounded by CSAH 25 on the north, Beltline Blvd. on the west and the Cedar Lake Regional Trail and the future SWLRT line (with its Beltline Blvd. Station) on the south as shown in the illustration below. The gross redevelopment site area is approximately seven acres and consists of four parcels: •4601 Highway 7 (owned by the EDA) •3130 Monterey Ave S (owned by the EDA), •Road right of way (owned by the city) •4725 Highway 7 (owned by Beltline Development LLC an affiliate of Sherman Associates). In 2018, the former industrial building located on the 4601 Highway 7 property was designated structurally substandard and subsequently removed by the EDA. The former commercial building on the 4725 Highway 7 property was removed by the Metropolitan Council in 2020 in preparation for the future SWLRT park & ride. Proposed redevelopment site for Beltline Station Study session meeting of June 14, 2021 (Item No. 7) Page 3 Title: Application for Tax Increment Financing Assistance – Beltline Station Background: In November 2014, the council approved a resolution authorizing submittal of a federal Congestion Mitigation Air Quality (CMAQ) grant for a structured parking ramp to be located immediately north of the SWLRT Beltline Blvd Station platform in lieu of a large parking lot. The EDA was subsequently awarded a $6.4 million grant through the Federal Transit Administration’s (FTA) CMAQ program that is regionally administered by the Metropolitan Council. In July 2017, the EDA conducted a formal Request for Proposals process to solicit transit- oriented development proposals for the Beltline Blvd. Station Redevelopment Site. The EDA determined Sherman Associates’ proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. Subsequently the EDA and Sherman Associates entered into a Preliminary Development Agreement (PDA) on February 5, 2018. Sherman Associates then purchased the 4725 Highway 7 property for the future park & ride in February 2019. On June 17, 2019 the EDA and city approved a First Amendment to the Preliminary Development Agreement extending the agreement with Sherman to June 30, 2020. Since then, the parties have been working collaboratively on a joint development (site and building) vision for the site. Additionally, staff, Ehlers (the EDA’s financial consultant), and Sherman Associates have been discussing all development costs, financial feasibility, and the necessary level of financial assistance needed for the multi-phase development. On October 21, 2019, the EDA approved a Subrecipient Agreement with the Metropolitan Council which specified the terms under which the CMAQ funds would be disbursed to the EDA. On November 2, 2020, the EDA entered into a Cooperative Construction Agreement with the Metropolitan Council under which the EDA committed to constructing a multi-level parking structure on the 4725 Highway 7 property just prior to the start of revenue service. The parking facility is to provide 268 public park & ride stalls and is to be constructed in compliance with specified federal requirements. Additional parking stalls may be included in the park & ride structure to serve the larger mixed-use, transit-oriented development on the site. Those additional stalls would need to be funded locally outside of the CMAQ grant. Subsequently, assuming the EDA approves the extension of the PDA, the EDA will be asked to enter into a Purchase and Redevelopment Contract with Beltline Development LLC (Sherman Associates) under which the Developer would agree to purchase the redevelopment site from the EDA and construct the Beltline Station multi-phase development as approved. As part of that contract, Sherman would also agree to finance, construct, operate and maintain the ramp on behalf of the EDA. Upon completion of the ramp, it is envisioned that the EDA, Metropolitan Council and Sherman Associates would enter into an operations and maintenance agreement in connection with ongoing use and maintenance of the ramp. Present considerations: Staff and Sherman are currently fine tuning the proposed site and building plans, development program, and infrastructure requirements for Beltline Station. The amended PDA between the EDA and Sherman Associates expires on June 30, 2020 unless it is extended. Given the significant progress made to date and the parties’ ongoing mutual interest in bringing the proposed redevelopment to fruition, the parties wish to extend the PDA to June 30, 2022 (out of an abundance of caution) by which point the parties hope to reach a formal Purchase and Redevelopment Contract. The proposed PDA extension is scheduled for consideration June 21, 2021 and requires approval by both the EDA and council. Study session meeting of June 14, 2021 (Item No. 7) Page 4 Title: Application for Tax Increment Financing Assistance – Beltline Station The project is proposed to be developed in two phases. Phase I would include: • Site work and utility relocation throughout the entire redevelopment site. • A seven-story mixed-use building with six levels of market rate housing (approximately 159 units) and 19,700 SF of ground floor commercial space anchored by a grocer along with below grade parking. It would be constructed at the northwest corner of the redevelopment site at the intersection of CSAH 25 and Beltline Blvd. • A 320+/-- stall parking ramp, including 268 park & ride stalls as required for the SWLRT, 52 stalls for commercial parking stalls and approximately 1,800 square feet of ground floor commercial for a potential café. • A five-story market rate apartment building with approximately 160 units to be constructed in the southeast corner of the site with below grade parking. Phase II would include: • A four-story, approximately 82-unit apartment building with below grade parking to be constructed in the northeast corner of the site. All the units in this building would offer affordable rents with 77 units available to households at 60% AMI and five units available to households at 30% AMI. This building would also feature 22 three-bedroom units to accommodate larger families. The timing of this building is due to the cyclical nature of the award of critical financing sources, including Low Income Housing Tax Credits (LIHTCs) and tax-exempt bonds from Minnesota Management and Budget (MMB). MMB accepts application and awards allocations of tax-exempt bonds in January of each year. The Developer plans to apply for tax-exempt bonds in January 2022. If awarded, it must then apply for LIHTCs and close on financing within 180 days. This would lead to a Phase II construction period of third quarter 2022 through fourth quarter 2023. As applications for tax-exempt bonds are competitive and sometimes oversubscribed, there is the possibility an award is not made to this phase in January 2022. In that scenario, the Developer has committed to reapplying and ultimately delivering the affordable housing at this location once an award is made. According to the Developer: Beltline Station will have its own unique characteristics while still fitting in with the fabric of surrounding area. We are aiming to energize and stabilize the broader St. Louis Park community with our design. The design team is excited to incorporate St. Louis Park’s personality into carefully chosen architectural pieces. Options being considered include outdoor gardens, fountains, street furniture, and building decoration. We are also considering an array of landscaping, gates, steps, porches, walkways, and pocket parks that will properly transition various elements of the site. Study session meeting of June 14, 2021 (Item No. 7) Page 5 Title: Application for Tax Increment Financing Assistance – Beltline Station Proposed Beltline Station site plan Altogether, the proposed development would have approximately 401 apartment units of which 319 (80%) would be market rate and 82 (20%) would be affordable for 25 years. The housing units would include a combination of studios, alcoves, and one, two and three bedrooms. Sherman Associates would own and manage the multifamily housing for the long term. Below is the development’s tentative construction schedule depending on Developer’s ability to secure financing: Building Commencement Completion Mixed use building Quarter 1 2022 Quarter 2 2023 Park & ride Quarter 2 2022 Quarter 2 2023 160-unit building Quarter 1 2022 Quarter 2 2023 82-unit building Quarter 3 2022 Quarter 4 2023 Study session meeting of June 14, 2021 (Item No. 7) Page 6 Title: Application for Tax Increment Financing Assistance – Beltline Station Inclusionary housing policy: Beltline Station would be a mixed income development with 82 units (20 percent) offered at affordable rents in one building. Specifically, 77 units would offer rents to households at 60% AMI and five units would offer rents to households at 30% AMI exceeding the city’s inclusionary housing requirements. The development would also provide 22 three-bedroom units (27 percent of the affordable units) to accommodate larger families. An all affordable building would differ from the Inclusionary Housing Policy requirement that all affordable units be spread between a project’s various buildings, however, in this case, it is the most efficient financing and design structure for the affordable housing. It allows the Developer to deliver more affordable housing units, targeting areas of greatest housing need. For instance, it allows the Developer to offer: • Family sized housing units. 67 (82%) of the affordable units would be two bedrooms or larger. 22 units (27%) would be three bedrooms. The average unit’s square footage would be 1,029. • Five units with deeper affordability at 30% AMI. • 22 three-bedroom units. • Well-designed and quality housing units in any product type. Examples include: o Two- and Three-bedroom units generally have two baths. o Structured/tempered parking. o Ample common area amenities to serve the needs of residents/families. o Exterior building materials that complement and match the adjacent market rate buildings. o Most units would have a balcony or walk out patio. One of the reasons Sherman was selected as the developer of the Beltline Blvd Station redevelopment site was that it has over 40 years’ experience delivering quality affordable housing. The proposed affordable housing units would be well designed, attractive and have access to development amenities. Sherman recently completed projects in Minneapolis, St. Paul, and Coon Rapids with mixed income arrangements like the one proposed at Beltline Station and they have demonstrated that they performed well. Green building policy: Sherman is also known for including leading edge sustainable components within its developments. Sherman developed, owns and operates two solar gardens under the community solar program totaling 6.75 megawatts. Buildings and tenants at Beltline Station could subscribe to Sherman’s solar gardens under the community solar program. Sherman has committed to delivering a development that not only meets but exceeds the city’s current Green Building Policy requirements. Examples of sustainable design standards the Developer has implemented in other projects include: LEED, MN Green Communities, National Green Building Standards, SB2030/B3 and ENERGY STAR. Sustainability features likely to be included in the Beltline Station development include: Energy Star rated appliances, low E glass, LED lighting, motion sensitive stairwell and garage lighting fixtures, energy efficient mechanical systems, and water saving devices, Additionally, the development will include ample bike parking and electric vehicle charging stations. Study session meeting of June 14, 2021 (Item No. 7) Page 7 Title: Application for Tax Increment Financing Assistance – Beltline Station The Developer: Sherman Associates is a Minneapolis-based, fully integrated development company with an extensive record of successful urban/suburban mixed-use, mixed-income, TOD projects along with substantial affordable and sustainable housing experience. The award- winning company has over 40 years of experience and its portfolio includes: • Over 8,500 residential units. • Over 600,000 square feet of commercial space. • 29 completed condominium projects. • Over $2 billion in real estate development. Sherman has the financial capacity to develop a project of the scale envisioned by the city and is a long-term developer-owner. Application for Tax Increment Financing assistance: It has long been assumed that any major development at Beltline Station would require a sizable amount of financial assistance given numerous known site challenges. This assumption has been borne out through due diligence which verified that there are considerable extraordinary costs associated with redeveloping the subject site along with other requirement costs. These extraordinary costs include but, are not limited to utility relocations (some of which are very large), wetland mitigation, environmental remediation, shoring and other site work; all of which need to be completed at the outset to make the site construction ready. The 82 affordable units with below market rents for 25 years and the sustainability requirements for the development also significantly impact the project’s financial performance. The substantial cost of underground structured parking in all three buildings as well as the costs to meet the city’s vision, strategic priorities and development objectives further contribute to the development’s financial gap. Additionally, constructing the proposed multi-functional ramp to federal and local requirements and including desired commercial space is estimated to cost approximately $13 million. While a portion of that cost is covered by federal and regional sources, a sizable financial gap remains. To mitigate the above costs which all contribute to the gap in the project’s proforma, the Developer applied for tax increment financing (TIF) assistance. During a September 2019 study session, the city council voiced a willingness to provide financial assistance to facilitate the development’s feasibility. Overview of proposed project’s sources and uses: Tax increment financing uses most of the increased future property taxes generated by a new development to finance certain qualified development costs incurred by that project for a limited period to enable the redevelopment to move forward. Ehlers examined the information provided within the Developer’s TIF application based on general industry standards for land, construction, and project costs; rents; operating expenses; fees; underwriting and financing criteria; and project cash flow. Based on this analysis, Ehlers consulted with staff to determine the extent to which the proposed project exhibits a financial gap justifying the provision of TIF assistance According to Ehlers, the above costs created a significant financial gap in the development’s sources and uses statement preventing it from achieving a market level of return and debt service coverage necessary to attract financing. To offset a sufficient portion of these costs and mitigate the development’s estimated financial gap, Ehlers and staff worked with Sherman over the past year to assemble a financial assistance package to enable the major, multi-phase redevelopment to become financially feasible, while preserving city resources to the greatest extent possible. Study session meeting of June 14, 2021 (Item No. 7) Page 8 Title: Application for Tax Increment Financing Assistance – Beltline Station The estimated total development cost (TDC) to construct the housing and mixed-use components of the Beltline Station project is approximately $117.88 million. The project’s anticipated sources and uses are summarized in the tables below along with their respective percentage of the total development cost. Proposed level of assistance: Sherman’s initial request for TIF assistance related to the housing and mixed-use components totaled just over $12.2 million. Ehlers reviewed that initial request and the Developer’s pro forma to confirm assumptions meet industry standards for construction, land, and project costs, market rate rents, operating expenses, developer fees, underwriting and financing criteria, and return on investment. Based on this analysis, Ehlers concluded the above components’ total need for TIF assistance could be reduced to just over $8.7 million if the Developer increased its equity contribution and/or reduced its proposed developer fee, which is slightly higher than typical for city-assisted projects. As noted earlier, the need for tax increment assistance related to the housing and mixed-use components is being driven by four primary forces. These include extraordinary site costs (such as environmental remediation, poor soils, utility relocations, shoring, etc.), funding the desired level of affordable housing, structured and underground parking, and supporting returns on investment to attract necessary capital for the overall development to be successful. The extraordinary costs related to the housing and mixed-use phases total just over $4.5 million. These costs include environmental remediation, utility relocation, geopiers, and site grading to provide integration with the parking garage. The affordable housing on the site will include an 82-unit low income housing tax credit (LIHTC) project which will provide more affordability than the city’s inclusionary housing policy requires. In addition, the project is being built with larger unit sizes, more two- and three- SOURCES Amount Pct.Per Unit First Mortgage 68,394,629 58.0%170,560 TIF Note A - Housing 8,720,762 7.4%21,748 Tax Credit Equity 7,538,359 6.4%18,799 Developer Equity 29,595,813 25.1%73,805 City - AHTF 618,238 0.5%1,542 Other Grants 1,500,000 1.3%3,741 Deferred Developer Fee 1,514,970 1.3%3,778 TOTAL SOURCES 117,882,771 100%293,972 USES Amount Pct.Per Unit Acquisition Costs 6,015,000 5.1%15,000 Construction Costs 92,869,324 78.8%231,594 Extraodrinary Site Costs 4,583,647 3.9%11,431 Professional Services 5,203,685 4.4%12,977 Financing Costs 1,661,098 1.4%4,142 Developer Fee 7,150,017 6.1%17,830 Reserves 400,000 0.3%998 TOTAL USES 117,882,771 100%293,972 Study session meeting of June 14, 2021 (Item No. 7) Page 9 Title: Application for Tax Increment Financing Assistance – Beltline Station bedroom units, and inclusion of a second bathroom in the two- and three-bedroom units. These features are being included to accommodate families. They also result in additional project and operating costs, leaving a gap in the funding for the project and makes this housing development infeasible without financial assistance. In addition, to the proposed TIF, it is proposed that $618,238 in assistance would come from the city’s Affordable Housing Trust fund (AHTF). The trust fund dollars would help the development exceed inclusionary housing goals by providing five units at or below 30% of the area median income (AMI), which meets the AHTF policy guidelines for use. The cost differential for the project to provide the 30% AMI units exceeds $650,000 based on Ehlers’ review. The Developer proposes to pay the EDA a total of $6,015,000 for its land in this development. This land acquisition payment allows the project to balance market value without increasing the need for long-term financial assistance. The proposed assistance would likely include one or more pay-as-you-go TIF Notes in the total amount of $8.7 million to facilitate repayment of the qualified expenses as quickly as possible. Depending on how the Notes are structured, it is estimated that the mixed use and market rate portions of the project could be paid off within 8 years; the affordable component, however, may take up to 26 years. Parking ramp: The total cost for constructing the parking ramp is estimated at $12.8 million. This includes all hard and soft costs, as well the extraordinary site costs attributable to the structure. A federal Construction Mitigation and Air Quality (CMAQ) grant will cover $6,453,054 of the cost. The Cooperative Construction Agreement with the Met Council provides another $2.5 million. This leaves a gap of $3.9 million. The proposed sources and uses for the parking ramp are as follows. As part of the overall TIF package, the Developer has agreed to finance the remaining $3.9 million gap necessary to construct the parking ramp. This will cover the local match required under the CMAQ grant requirements, as well as the remaining gap, meaning the EDA will not have to bond for construction of the ramp or use any Development Fund dollars. Based on Study session meeting of June 14, 2021 (Item No. 7) Page 10 Title: Application for Tax Increment Financing Assistance – Beltline Station current assumptions, the Developer would receive additional tax increment assistance to repay the financing they would obtain to fund the $3.9 million project gap. In addition to the Developer’s willingness to finance the parking ramp, Sherman has already purchased the property on which the ramp is to be constructed. This acquisition was undertaken with a loan from the EDA and has been partially repaid. The remaining loan balance of approximately $877,500 is due on June 30, 2021. As part of the negotiated financing package, that repayment date would be extended to when closing occurs on the financing for all of Phase I. Extension of the loan agreement would be included along with the proposed extension of the Preliminary Development Agreement scheduled for June 21, 2021. Staff and Ehlers carefully evaluated and considered the proposed level of tax increment assistance required to bring this major transit-oriented development to fruition and meet city policy and development objectives for the site. Through detailed analysis and negotiation, the determination was made that a multiphase development of this scale and scope could not proceed without the recommended levels of assistance. Consistent with previous EDA redevelopment agreements, a "lookback" provision would be incorporated into the future purchase and redevelopment contract with the Developer. The lookback provision ensures that if the project’s total development costs are appreciably lower and/or the development’s net operating income is appreciably higher than the estimates provided, the EDA would share economically in the success of the development by reducing the amount of TIF assistance provided. TIF district: The tax increment to be provided to the proposed development would derive from a newly established redevelopment TIF district. Consulting firm LHB conducted a TIF district feasibility analysis to determine if the proposed TIF district for the Beltline Station project qualified as a redevelopment district under Minnesota Statutes, Section 469.174, Subdivision 10. After inspecting the five subject properties, LHB evaluated each against current statutory criteria and concluded in its Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District: St. Louis Park Beltline Redevelopment TIF District dated June 4, 2019 that the proposed TIF district qualifies as a redevelopment district. Such a TIF district would allow for up to 26 years of tax increment by State Statute. Property value and taxes: The current, combined estimated market value of the subject redevelopment site is just over $7.4 million. This would be the proposed TIF district’s Base Value. The combined estimated market value of the site upon the proposed development’s completion (for TIF estimation purposes) is over $106 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Notes to the Developer until they are paid off. The city, county and school district would continue to receive the property taxes collected on the subject site’s Base Value. Analysis of development’s conformity with the city’s TIF Policy: The following table lists the objectives, qualifications and guidelines for the use of tax increment financing as specified in the city’s TIF Policy, as well as how and whether the proposed development meets those standards. Study session meeting of June 14, 2021 (Item No. 7) Page 11 Title: Application for Tax Increment Financing Assistance – Beltline Station TIF Policy Compliance Table Factor Requirement/Guideline Proposed Project Met? Applicable TIF District Redevelopment/Renewal & Renovation/ Housing/Economic Development Redevelopment Yes Statutory TIF district requirements Redevelopment District 70% site coverage, More than 50% of bldgs structurally substandard & are reasonably distributed 76% site coverage, 67% of bldgs found to be structurally substandard reasonably distributed Yes Use of TIF Proposed costs are statutorily eligible for reimbursement through proposed TIF district. Proposed uses of tax increment are statutorily eligible through redevelopment TIF districts. Yes TIF Objectives TIF Policy requires projects to meet one or more of objectives for use of TIF. Project meets all applicable policy objectives. Yes Minimum qualifications Applicable Strategic Priorities Proposed project provides broad range of housing and neighborhood- oriented development; furthers climate action goals, racial equity & inclusion goals, and provides for a variety of options for people to make their way around the city. Yes Meets Inclusionary Housing Policy requirements (if applicable) Project will exceed Inclusionary Housing Policy requirements. Yes Meets Green Building Policy requirements Project will exceed Green Bldg Policy requirements. Yes Consistent with city's Comprehensive Plan and Zoning Ordinances, or approvals pending Project is compatible with & supports existing and future land uses for the site. Yes Removes contamination, blight and/or will not generate significant environmental problems Project removes blight and contamination. Yes Helps facilitate desired development that would not occur without assistance Proposed assistance would facilitate desired development and would not occur without such assistance. Yes Developer has experience and capability to construct proposed project Developer has extensive experience and capability to construct proposed project. Yes Developer plans to retain ownership of project long enough to stabilize occupancy Developer plans to retain ownership of project for the long term. Yes Study session meeting of June 14, 2021 (Item No. 7) Page 12 Title: Application for Tax Increment Financing Assistance – Beltline Station Desired qualifications Incorporates Livable Communities, New Urbanism, TOD principles (i.e. mixed-use, urban design, human scale, walkable, public spaces). Proposed project incorporates Livable Communities, New Urbanism, and TOD design principles. Yes High quality development (sound architectural design, quality construction and materials) Proposed project will incorporate high quality design and materials. Yes Provides rents at deeper affordability levels such as 30% or 50% AMI (if applicable) 5 units will have rents affordable to households at 30% AMI. Yes Provides units for families (i.e. 3- & 4- bedroom units (if applicable) 22 3-bedroom units proposed. Yes Complements and/or adds value to neighborhood by providing public elements or placemaking features (if applicable) Project will complement and add value to neighborhood by providing mixed income housing, commercial businesses, transit and public features. Yes Proposed development will likely stimulate further investment in surrounding neighborhood Project will stimulate further development to the east and south. Yes Provides new, or retained, employment (if applicable) Employment will be created by project’s commercial businesses. Yes The Increase in market value of the site after redevelopment is more than 8 times the original market value The estimated market value of the site after redevelopment is more than 14 times the original market value. Yes Will have a positive community impact Proposed project will have a major positive impact. Yes Will not place extraordinary demands on city services City departments determined proposed project will not place extraordinary demands on city services. Yes Land price for project site is within market range. Land price for project site is within market range. Yes Ratio of private to city investment (TIF and grants) is more than $5 to $1 Proposed private to city investment is $8.85 to $1. Yes The proposed amount of TIF assistance or term of the TIF Note is within range of similar developments which received TIF assistance. The proposed amount of TIF assistance is generally within range of similar developments. Yes Proposed TIF assistance will be provided on a pay-as-you-go-basis. Proposed TIF will be provided on a pay-as-you- go-basis. Yes Study session meeting of June 14, 2021 (Item No. 7) Page 13 Title: Application for Tax Increment Financing Assistance – Beltline Station Given that the proposed development meets statutory requirements, as well as all objectives, qualifications and guidelines as specified in the city’s TIF Policy and is consistent with the Beltline Station Development Objectives, staff finds the Developer’s proposed request for TIF assistance meets the city’s requirements for the use of tax increment financing. Summary and recommendation: Based upon its analysis of the project’s proforma, Ehlers determined that the proposed Beltline Station redevelopment has a verified financial gap and is not financially feasible but-for the provision of tax increment financing. To offset this gap, it is proposed that the EDA consider reimbursing the Developer up to $8.7 million in TIF assistance to facilitate development of the three multifamily housing buildings and $3.9 million in TIF assistance to facilitate development of the park & ride ramp required by the SWLRT project. The assistance would be provided on a pay-as-you-go basis from tax increment generated by the project. The terms of the proposed TIF Notes would range between 7 to 26 years. Such assistance would derive from a new redevelopment TIF district upon completion of the proposed project and stabilization. In summary, providing tax increment financing assistance to the proposed Beltline Station makes it possible to: • Redevelop formerly blighted property that is underutilized and environmentally impacted property at a long-planned, multi-modal transit location within the city. • Provide the city with a major mixed use, mixed income, transit-oriented development consistent the city’s strategic priorities, comprehensive plan, and the vision and development objectives for the Beltline Station. This transformational development will spur additional investment to the east and south. • Further diversify the city’s housing stock with 401 new multifamily housing units adjacent to multi-modal transportation. Of those, five would be affordable to households at 30% AMI, 77 would be affordable to households at 60% AMI and the remaining 319 units would be leased at market rate. The reduced rent units would be kept affordable for at least 25 years. Additionally, 22 of the affordable units would have 3 bedrooms to accommodate larger families. • Add approximately 21,800 square feet of new commercial development to accommodate a prospective grocer and café to the benefit of development residents, the surrounding area as well as the adjacent local and regional trail and light rail. • Include numerous green building features including on-site, roof top solar and off-site solar garden offsetting the majority /entirety of the development’s anticipated electrical needs in support of the city’s climate action goals. • Construct a joint use park & ride structure (instead of a large surface parking lot) as required under agreements with the Metropolitan Council that includes space for a café adjacent to the light rail station as well as local and regional trails. • Provide a pedestrian, bike friendly development with public features and public art. • Facilitate approximately $130 million of new investment, further invigorating the surrounding neighborhood and creating another major destination development within the city. • Bring the subject properties to optimal market value and generate nearly $5 million in property taxes further adding to the city’s tax capacity and economic vitality. • Construct quality buildings (e.g. sound architectural design, quality construction and materials) with structured parking, public features, and sustainable elements. Study session meeting of June 14, 2021 (Item No. 7) Page 14 Title: Application for Tax Increment Financing Assistance – Beltline Station Given these findings, staff supports providing TIF assistance to the Beltline Station development as outlined to enable it to proceed. Next steps: Provided the EDA is supportive of facilitating the proposed Beltline Station development with tax increment assistance at the recommended levels, the next steps in the TIF approval process would be as follows: 1. Consideration of Amendment to Preliminary Development and Loan Agreements (June 21, 2021) 2. Conveyance of vacated city right-of-way to EDA for subsequent conveyance to Developer. 3. Schedule public hearing date for establishment of proposed TIF district. 4. Negotiation of business terms for the provision of tax increment assistance. 5. Review of proposed business terms of purchase and redevelopment contract. 6. Hold public hearing on the establishment of the proposed TIF District. 7. Consideration of TIF district plan – EDA and city council. 8. Consideration of purchase and redevelopment contract – EDA. Meeting: Study session Meeting date: June 14, 2021 Written report: 8 Executive summary Title: Food Access and Insecurity Study update Recommended action: None at this time. This report provides an update on the Wilder Foundation 2018 Food Access and Insecurity Study. Policy consideration: None at this time. Summary: The Food Access and Insecurity Study was undertaken by Wilder Research for the city in 2018 and the report was presented to council in March 2020. The study researched to what extent residents experience food insecurity or lack access to food, what resources and services are available, what are the gaps in access and what the city’s role could be in addressing the issue. The study resulted in a number of recommendations to which staff have been working to develop programs, policies, and initiatives to address those recommendations. Financial or budget considerations: None at this time. Strategic priority considerations: •St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. •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 Prepared by: Laura Smith, wellness and volunteer coordinator Reviewed by: Karen Barton, community development director Approved by: Tom Harmening, city manager Study session meeting of June 14, 2021 (Item No. 8) Page 2 Title: Food Access and Insecurity Study update Discussion Background: The Food Access and Insecurity Study was undertaken by Wilder Research for the city in 2018. The study researched to what extent residents experience food insecurity or lack access to food, what resources and services are available, what are the gaps in access and what the city’s role could be in addressing the issue. As a result of the study, the following recommendations were made by Wilder Research: Recommendations: •Establish and support a local, cross-sector task force to establish priorities and strategies, increase community awareness and guide collaborations. •Identify creative strategies to increase transportation options, including expanding volunteer driver programs and continue to advocate for metro transit to expand transit routes. •Increase awareness of existing food resources, particularly programs and services reaching youth, aging adults, immigrant and refugee communities and residents experiencing economic insecurity. •Assess the feasibility of additional strategies to increase access to healthy, affordable food. •Identify local data sources that can be used to track changes of who is experiencing food insecurity in St. Louis Park. Present considerations: At the time the study was completed, city staff reached out to several groups involved in food-related assistance areas to facilitate the convening of a local, cross- sector task force to establish priorities and strategies, increase community awareness and guide collaborations. Three meetings with STEP took place to discuss the cross-sector task force and staff were advised that a task force may be redundant, as the parties involved already keep in contact with each other and share resources. It was felt that a more formal organization of the group would not necessarily accomplish anything more than what is currently being accomplished by the organizations in collaboration, and suggested the city continue to prioritize factors such as housing, transportation or mental health that impact food insecurity. Additionally, the following activities, initiatives and programs have taken place in relation to the recommended actions: •The fire department has partnered with an organization called Every Meal to provide people with nutritious and nonperishable meals. Meals can be picked up in both fire station lobbies. •The “Be There Initiative” was created by city staff which includes food access resources for our aging community. •Improvements were made on the city website for easier access to community garden information. •The city partnered with SEEDS FEEDS to scope the feasibility of a weekly farmers market. Due to lack of staff time from both SEEDS FEEDS and the city, the decision was made to not pursue a farmer’s market. Next steps: City staff are continuing to work with STEP, other food-access service agencies, and SLP public schools to provide opportunities to address food access and insecurity in St. Louis Park. Meeting: Study session Meeting date: June 14, 2021 Written report: 9 Executive summary Title: Amendments to chapter 6 and chapter 8 of the City Code Recommended action: This report is intended to provide city council with information on upcoming amendments to chapters 6 and 8 of the City Code. No action is required unless Council requests further discussion before first reading. Policy consideration: Does council wish to proceed with the ordinance amendments proposed for building regulations and business licensing? Summary: Regular review of city ordinance language is important to ensure that the code is consistent with state and federal laws, to respond to requests from the community, and to adapt to industry changes. The city attorney has advised staff that a few sections of city ordinances are not in compliance with recent changes in Minnesota state statutes and federal case law. Changes required include administrative updates to reflect clerical changes to the Minnesota State Building Code and revising requirements for solicitor and peddler licensing to align with findings of the U.S. Supreme Court. Staff is currently following the attorney’s recommendations in administering the programs to be in compliance. These revisions are considered a code cleanup action. Some food and beverage establishments have desired to allow dogs to accompany persons patronizing designated outdoor patio areas. The Minnesota Department of Health (MDH) has clarified with the city that adoption of an ordinance permitting dogs within the outdoor patio areas of these establishments is necessary. Staff is proposing changes to simplify the certificate of competency card renewals for contractors working under a mechanical contractor’s license. These changes will align St. Louis Park with other municipalities, making it easier for contractors to comply and for staff to process applications. This set of proposed amendments will provide increased clarity and improved effectiveness in the administration of business licensing and building regulations. Financial or budget considerations: No significant financial expenditures or revenue will occur due to these proposed revisions Strategic priority consideration: Not applicable. Supporting documents: Discussion Prepared by: Michael Pivec, property maintenance & licensing manager Reviewed by: Brian Hoffman, director of building & energy Approved by: Tom Harmening, city manager Study session meeting of June 14, 2021 (Item No. 9) Page 2 Title: Amendments to chapter 6 and chapter 8 of the City Code Discussion Present considerations: Recommended amendments to chapter 6 and chapter 8 of the City Code are detailed below. Chapter 6. Buildings and building regulations, Section 6-66 Minnesota State Building Code. Clean up amendment for adoption language of the Minnesota State Building Code as required by state statute. This will not have any impact on our administration of the state code within the city. Chapter 8. Businesses and licenses, Section 8-1 thru Section 8-580 Clean up amendments to several sections regulating Peddlers, Solicitors, and Transient Merchants: •The proposed amendment would remove people who canvas or solicit from house to house for contributions or support for any charitable, religious, civic, educational, philanthropic, social service, welfare, or organization from the definition of solicitor. The United States Supreme Court has held that seeking donations is a form of advocacy entitled to a high level of First Amendment free speech protection. •The licensure and fee requirement for solicitors is removed because of federal interstate commerce preemption concerns. Under the above amendments only peddlers would be subject to background checks. Federal courts have held that a background check requirement on solicitors is an unconstitutional prior restraint on free speech because solicitors are not able to solicit until the background check is complete. •A two-day time limit is added to determine whether a license application is complete. This is to ensure prompt processing of applications. •The City’s current ordinance contains a curfew prohibiting peddlers and solicitors from conducting business before 9:00 a.m. and after 8:00 p.m. Federal courts have invalidated similar curfew provisions as both content-based regulation of speech and unreasonable time, place, and manner restrictions. •All solicitors will be required to register with the City. Registration is completed using the same form as required for license application, but no fee will be applied. Door to door advocates would not be required to register because courts have found that even a registration requirement is too much of a burden on their free speech rights. Chapter 8. Businesses and licenses, Sections 8-115 (b) and (c) Mechanical Contractor Certificate of Competency: Proposed amendments to the mechanical contractor certificate of competency renewal requirements to align program with other cities, by requiring renewal on an annual basis instead of every three years and removing continuing education requirements. A competency card is required by employees of a licensed mechanical contractor who will be performing mechanical work like gas piping and furnace installations. Study session meeting of June 14, 2021 (Item No. 9) Page 3 Title: Amendments to chapter 6 and chapter 8 of the City Code Chapter 8. Businesses and licenses, Designated outdoor dog areas at Food and Beverage Establishments: Establishes a new licensing section Sections 8-465 through 8-467 for allowing Licensed Food and Beverage Establishments to have a designated dog area in compliance with the MN Food Code. Staff has learned that a city must specifically adopt code provisions for allowing. In the absence, Hennepin County Environmental Health being the delegate restaurant inspection authority by the MDH, may not allow pets in any foods serving area as it is prohibited in the MN Food Code. Proposed code changes include: • Definition aligning with Food code authorizes municipalities to adopt an ordinance to permit food and beverage establishments to allow dogs to accompany persons patronizing designated outdoor areas of food and beverage establishments. • Only Licensed food and beverage service establishments can apply for a license for a designated outdoor dog area to align with MN Statute 157.175. • License required. Licensing designated outdoor dog areas allows city staff to review site location for compliance with other city regulations for location of food/beverage service and other licensing, Staff would also notify the County Health Inspectors of those establishments creating dog areas. Financial considerations: The following fee schedule is proposed with the ordinance. Renewal – Mechanical Contractor certificate of competency: $15 Solicitor Registration: remove fee Designated Outdoor Dog Area: $50 Next steps: Staff will complete drafting the necessary ordinances that will establish or modify the programs. The first reading is planned for council consideration in late July or August.