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HomeMy WebLinkAbout2021/08/23 - ADMIN - Minutes - City Council - Study Session Official minutes City council study session St. Louis Park, Minnesota Aug. 23, 2021 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Lynette Dumalag, Rachel Harris, Larry Kraft, Nadia Mohamed, and Margaret Rog Councilmembers absent: none Staff present: City Manager (Ms. Keller), Interim Deputy City Manager/Director of Operations and Recreation (Ms. Walsh), Engineering Director (Ms. Heiser), CFO (Ms. Schmitt), CIO (Mr. Pires), Director of Community Development (Ms. Barton), Planning Manager (Mr. Walther), Building and Energy Director (Mr. Hoffman), Sustainability Manager (Ms. Ziring), Zoning Administrator (Mr. Morrison) Guests: none 1. Neighborhood-focused commercial activity in public parks Councilmember Rog noted residents, Maria Nilgis and Alex Moen, from the Bronx Park neighborhood, had come to her with this idea. She stated this initial idea is not about their business, but to create public gathering spaces which align with the strategic plan and looking initially at Nelson Park. She stated this request addresses allowing some commercial business in neighborhood parks, like Tin Fish in Minneapolis, but on a smaller scale. She stated this would be a new way to use public spaces and it seems appropriate given the times. She stated this idea aligns as a subcategory under the strategic plan to create broad neighborhood development and promote small locally owned businesses and there is excitement about the potential here. Councilmember Rog stated currently there are food trucks at neighborhood events, which can be very community building. She added people love eating outdoors in tents at restaurants as well and the city just recently extended the tent policy for restaurants. She added residents also appreciate small businesses within the city. Councilmember Rog stated brick and mortar businesses would not be something to be discussed at this time, especially as the city has park shelters, some of which are underutilized . She would like to explore some semi-permanent facilities such as shipping containers, which can be very inviting spaces and are affordable for smaller businesses. She added there should be RFPs for equity residences and supportive funding for BIPOC, St. Louis Park owned businesses, and businesses with creative ideas. She asked which parks would be best for this and noted the program should be piloted first near the regional trails . Councilmember Rog added she would want to refer this to Park and Recreation and Planning commissions to get their input before proceeding. DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -2- Aug. 23, 2021 Councilmember Brausen stated he is not interested in spending any staff time on feasibility and costs of putting private commercial facilities in our parks. He continued this type of construction would require staff time and funding to study, and the comparison to Minneapolis Parks fails as they have a budget of $126 million yearly, while St. Louis Park’s Park and Rec is funded by the City at less than $7 million. He stated food trucks seem sensible and if a private entrepreneur wants to construct a container café on their own, he would be willing to consider this at their cost, but to use limited staff time on this seems like a misuse of city resources . He added he does not see how the city could fund the feasibility study given the current demands of the city’s budget. He stated he does not want to get into the business of selecting vendors and thinks the private market handles this just fine. Councilmember Rog agreed we should not be spending money on creating or erecting structures, and this is about supporting small business by allowing them in spaces where they currently are not allowed to meet demand. Councilmember Brausen stated he does not like spending staff time looking into the planning and zoning of such a project. Councilmember Kraft asked Councilmember Brausen about his being positive about a food truck or spending their own funds on a structure. Councilmember Brausen stated a willingness to consider if they did it on their own but does not support spending city staff time and funds on speculation that a vendor might want to construct a concept the city comes up with. It seems too speculative. Councilmember Kraft stated there would be staff time if there was a specific proposal . Councilmember Brausen agreed if there was a specific proposal, he would then not be opposed to it. Councilmember Dumalag stated she would be more interested in a food truck v ersus a structure. She noted there would be staff time spent on this, and as this is looked at through the lens of racial equity, there would need to be an even rotation v ersus a physical structure and lease arrangement. Councilmember Harris stated she found this idea invigorating and looking at neighborhood parks in a new way. She stated aligning with parks that have restroom facilities would be most appropriate. She would be more inclined at this point to support food trucks versus a structure. She added the community has 1 or 2 commercial kitchens that may be available to the public. For example, the Lenox made their kitchen available to a business that resulted in them opening a restaurant in St. Louis Park. She stated she could see a permit process as a way forward for food trucks or carts. Ms. Keller stated the food trucks can be permitted in the parks currently and can get more information to the council. Councilmember Mohamed stated she supports this, adding it would support the community vibrancy. She would not want anything to take away from the green space the parks currently DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -3- Aug. 23, 2021 have. She stated if a physical building were added to one of the city’s parks, she would want to be sure it would be across all parks. She is interested in looking at this further. Councilmember Kraft asked if trucks are allowed today. Councilmember Rog stated they are allowed, but they must leave at night. Councilmember Kraft stated he thought this was positive, but it does appear there are many intricacies to this, and he likes the idea of referring this to PRAC and asking for recommendations. He is interested in a pilot to keep staff time to a minimum, and he would want to have an electrical hook up versus gas. Mayor Spano stated Councilmember Rog said this is timely now and asked her to explain further. Councilmember Rog stated it is Covid time and folks prefer being outside for social experiences now. Mayor Spano asked why the parks. Councilmember Rog stated this was the idea of a couple in the community specifically for Nelson Park, near the trail, and with community gardens there, plus a lot of green space. She stated this was an idea for folks to come and hang out with their families for ice cream or hot cocoa. She added this made sense and it would then need to be institutionalized. Mayor Spano stated he read the proposal to be the city having a physical structure. Councilmember Rog stated the shipping container was another idea, and something the commercial vendor or business owner would be responsible for . She said this would be another idea for staff to investigate and come back with more details about. Councilmember Rog stated a semi-permanent structure would be a unique idea and also different from a food truck. Mayor Spano stated he sees the potential challenges here and has real concerns in the city investing any money in physical structures. For food trucks, being they are also licensed, and since he has experience with this in the City of St. Paul, he would 100% support this, while the city could market this and bring exposure to it. However, he did say the additional support and access to food trucks in St. Paul, brought on some concern from brick-and-mortar restaurants. Mayor Spano stated he would support food trucks but has concerns about using physical structures within city parks for this and then leasing them out to private businesses noting he would not want the city to become a landlord. Councilmember Rog stated she is not asking the city to fund this at all, or to build infrastructure. The request would be for leasing the land and asking staff to bring ideas back on the potential of this idea in the city. Mayor Spano stated he is not interested in shipping containers or semi-permanent structures in the parks as it becomes a lease arrangement with the city, and the county health department has to be involved. He added it feels like many layers. Councilmember Rog stated it would be the same rules as a restaurant within the city. Mayor Spano stated the city does not lease park land to businesses. DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -4- Aug. 23, 2021 Councilmember Kraft stated he is interested in the idea of a semi-permanent restaurant presence in a park and would like to have PRAC investigate this and make recommendations to the council. Councilmember Harris stated the city does have a special event permit for 14 days. Mr. Morrison stated yes, that is correct, but it is limited to 14 days per calendar year per property. Councilmember Harris stated various groups have asked for special event permits in the past and she is wondering if the best solution would be to have food trucks ask for a special event permit. Mr. Morrison stated food truck permits are issued to the property owner. The permit approves the specific location on the property and is good for the calendar year. The property owner can switch food vendors throughout the year without notifying the city as long as th e truck stays in the approved location. The park and rec department issues permits for one-time events in the parks. It is the food truck operator’s responsibility to be properly licensed and maintained. Councilmember Harris stated she is in favor of staff looking into this further for having food trucks for an extended period of time, either permanent and/or RFP, she leaves this to staff or PRAC to work out. She believes it is an exciting notion which will activate parks and neighborhoods. Councilmember Brausen is opposed stating it will waste valuable staff time and will force the city to pick winners and losers, and there would be unintended consequences especially for folks who live near parks who don’t want it to be a commercial area. It goes beyond the city’s mission. Councilmember Mohamed is in favor of this. Councilmember Dumalag stated she is interested in looking at a pilot for this, and with no investment in semi-permanent structures. She noted if neighbors did not want to have these businesses in the parks near to where they lived, this would then allow the city to course correct if needed. Mayor Spano stated there is interest by council in having staff and/or PRAC look ing into this further. Councilmember Rog stated there are folks who would be interested in pursuing this and support it themselves and it seems the idea is being a bit quashed, and she is a bit disappointed. She will look forward to staff’s report back to council. Ms. Keller stated the council’s question to staff is how can we better support individual food trucks having longevity in neighborhood parks. 2. 2022 budget: info on CIP, debt, long-range financial planning, and preliminary levy request DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -5- Aug. 23, 2021 Ms. Schmitt presented the report. Councilmember Brausen asked if the two MSA projects were planned for Cedar Lake Road east of Louisiana Avenue and Louisiana Avenue, Nevada to Kentucky. Ms. Schmitt stated yes. Councilmember Kraft asked if this is a one-time expense for both of those projects. Ms. Schmitt stated that is correct. Councilmember Kraft asked if the levy impact assumes the projects are bonded. Ms. Schmitt stated the city gets state aid for that, but it depends and MSA money can be used to pay debt or reduce the amount of debt taken out. She added this is why staff is asking council where they want to see the levy go, so staff can work it into the scope of the project . Ms. Schmitt stated the questions before council tonight are:  Support setting the 2022 preliminary tax levy at the historical range of 6-6.5%  Support setting the 2022 preliminary HRA levy at the maximum amount of .0185% of market value  Support establishing an EDA and setting a 2022 preliminary EDA levy of $500,000  Support proposed 2021 fund assignments and transfers Additionally, Ms. Schmitt asked council for their feedback on the following two questions:  What target future levy increases should staff work toward while developing programs and policies?  As staff recommend future years’ usage of ARPA monies, is there interest in using dollars to buy down the levy or invest in other established city priorities? Councilmember Harris asked if there are dollar amounts included with the levy percentages . Ms. Schmitt stated not at this time, but staff can bring this back to the Sept. 13 meeting. Councilmember Kraft referenced the scenarios in the packet and asked if the levy incorporates getting monies in on an annual basis. Ms. Schmitt stated yes. Councilmember Kraft asked if the $1.2 million per year for MSA, will about $400-500,000 of this be used for MSA, and an additional $700,000 could go towards debt payment. Ms. Schmitt stated yes. Councilmember Kraft stated in the future, he would be interested in understanding how much can be fit into the current MSA and for 1 or 2 projects. He asked if what is coming to the city from TIF would be included in the expense budget . Ms. Schmitt stated that’s correct, but the tax base would increase if a district came off. She added this would be in the long-range financial plan but the next one doesn’t come off until 2026 . Councilmember Kraft asked on pavement management how things look so far. Ms. Schmitt stated it’s looking good, but we are at the peak of construction season and some large invoices are starting to come in. Ms. Heiser stated this year there were competitive bids and there have not been any surprises thus far. DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -6- Aug. 23, 2021 Councilmember Kraft stated on future levy increases, the assumed baseline should go up with the rate of inflation plus population and business growth. He added this seems in the 3-4% range and this should be the baseline to aim for. Beyond that, it could go up more if we’re adding services or structures. Councilmember Kraft noted on the 6-6.5% preliminary tax levy he is comfortable with that range. He noted on proposed fund assignments he would ask how things are going and it seems like things are under budget. He added he is comfortable with that number but would want to know if it could be lowered. He noted for solar panels he is supportive of those on the Rec Center and in the parking lot as well. He stated he is less excited about $1.5 million for each of pavement management and sidewalk and trail funds adding he would like to see if this could be reduced. He is ok with the 2022 levy buydown. He noted he is interested with the ARPA funds what could be done on transformative types of investments around climate or rac e equity. On the HRA levy, he is supportive and on EDA it will be difficult for residents to understand the combination of commercial climate investment and development staff salaries, so he is not supportive of this now. He is for the climate investment monies but would rather have it as a regular line item only and not as an EDA levy. Councilmember Dumalag asked on the page 5 fund balance, if this is related to liquor license or construction permit. Ms. Schmitt stated it is and noted budget targets are being hit . Mr. Hoffman stated it is easy for building permit revenue to fluctuate plus or minus $1 million each year, so the city keeps a $500,000 balance in this fund so in a year if it comes in low, it doesn’t put the budget in a deficit, so it is a good buffer. Councilmember Dumalag asked about timing of projects and leveraging of funds . Ms. Heiser stated most capital streets projects are driven by condition. She added policies are when a project is looked at, we look at Living Street policies and set them up accordingly. Councilmember Dumalag asked if some projects were delayed due to Covid and if this was a qualifier here. Ms. Schmitt stated the city has lost a significant amount of revenue from 2019 to 2020 due to covid, so the city could use ARPA to pay for public safety salaries which would free up the levy for other areas. Councilmember Brausen stated he is supportive of the preliminary levy at 6-6.5% and the maximum increase for the HRA levy and supports the EDA levy of $500,000 to fund climate investment and related salaries in economic development and thinks this can be explained to constituents and they will understand. Councilmember Brausen stated his thoughts on future levies and use of ARPA funds targeted for stimulus, not long-term, and he supports use of these funds for capital projects. He stated constructions costs on Cedar Lake Road will not decrease and delaying any longer on these improvements for another decade will be very costly. He is, however, interested in what cost- savings would be on mill and overlay, but these roadways in Ward 4 are instrumental in maintaining an efficient pedestrian and bicycle-friendly roadway in this area. Councilmember Brausen stated he is okay with buying down some of the levy increases as the next 4 years look to be substantial. He noted the 2nd scenario is one he would support and DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -7- Aug. 23, 2021 would prefer the monies be spent on real public works and not the debt services. He supports the staff proposed fund balance transfers and redistribution . Councilmember Harris stated the HRA levy is one of the most important ways to pool money to build more affordable housing and is a wise use of resources. She stated she gets comments from residents to not increase taxes, while they appreciate the quality of life here . She stated with the three scenarios presented and based on feedback from Ward 3 residents, she will support the 5.7% levy increase, with the understanding it can go down, and it usually does, and added the ideal amount is 4.5% which was done last year. She did , however, note the 4.5% would create constraints with expenses of climate action plans, capital improvements, and road construction, all expensive endeavors. Councilmember Harris noted regarding the EDA, how was the pilot different from what is being proposed. Ms. Ziring noted they proposed another year of the solar sundown program, and really no change to the qualifications of the program. It would refer to both commercial and residential. Councilmember Harris stated it seems fitting to continue these efforts and she supports the $500,000 EDA levy. Councilmember Harris added she is in favor of transfers for pavement management and sidewalk and trail funds. She is also in favor of using ARPA monies here as well. She noted if the ARPA can be used to reduce upcoming expenses to households that is a wise use of funds. Councilmember Dumalag supports the 6-6.5% levy with the understanding it will go down. She noted for renters the greatest impact was in Class B this past year and wants to be sure this continues to be lifted up. She does also support the HRA levy at .0185% and the EDA levy as well. She is in favor of a dedicated restricted fund and the fund assignments, is interested in the community survey, and also supports the climate investment fund. She supports buying down the levy and also some allocations. Councilmember Rog asked about the development fund and if its primary purpose is to acquire properties for development. Ms. Barton stated yes, that is correct. Councilmember Rog noted she does not see acquisition of properties included and asked what resources will be available for this. Ms. Barton stated the EDA levy for staff salaries will help creating funding for acquisitions. Councilmember Rog asked if there are sufficient resources now and going forward. Ms. Barton stated some of the fund is tied up in land and there is $12 million in cash in the development fund for any acquisitions. She added it is a concern that ¾ of a million dollars is going out in staff salaries, so that gets depleted. Councilmember Rog referenced page 6 related to utility rates and asked how capital improvement project are related to utilities. Ms. Schmitt stated when a street is worked on and pipes are put in, utility funds take care of this. Water, sanitary and storm are from the utility funds, not the general fund. Councilmember Rog stated she would like a staff report on MSA roads . She stated generally she is supportive over time on Connect the Park. She asked the difference between the climate DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -8- Aug. 23, 2021 investment fund and the EDA levy to cover climate investments. Ms. Schmitt stated the $300,00 from the EDA levy goes into the climate investment fund. Councilmember Rog stated she would like the option of tax relief for the lowest income residents and explore this further. She asked why do we set the preliminary levy higher each year and then reduce it. Ms. Schmitt stated it is a good plan to leave extra in there in case something comes up. Councilmember Rog is supportive of the 6-6.5% levy and the HRA levy. She has concerns about folding salaries into levies and feels it should be part of the general fund. She would not support the EDA levy as described tonight and would want further discussion . She stated on fund assignments and the ARPA, she is not fully supportive of investing in levy buy-downs, especially with the ARPA funds. But generally, she is supportive of the fund balance recommendations made by staff. She wants to see a transformative investment with climate with the ARPA monies and hopes to see this soon. Councilmember Mohamed is supportive of 6-6.5% levy, especially in light of inflation and coming out of Covid. She also supports the HRA levy and the EDA as well. She noted for the fund assignments she does support this but shares similar concerns of Councilmember Kraft here. Regarding buying down the levy and the ARPA funds, she would support both as well as more investment in other city established priorities. Councilmember Kraft noted with the proposed EDA levy the split would be for 2022, $300,000 for climate and $200,000 for development salaries. He asked going forward how would these be split. Ms. Schmitt stated she would leave that to council as a policy decision and it depends on how these develop. Councilmember Kraft asked what kind of restrictions would be included, and if it would be commercial use only. Ms. Schmitt stated yes. Councilmember Kraft stated with the EDA levy he would prefer to have the monies for climate without restrictions. Councilmember Rog agreed with Councilmember Kraft on this. Councilmember Rog stated it is difficult for her to determine the levy and the more detailed information she can get from staff, the more helpful it would be. Mayor Spano stated he supports the EDA and HRA levies and the preliminary 6 -6.5% levy. He added he supports the fund transfers and would support the long -range planning goals staff has presented as well. Councilmember Dumalag stated the EDA seems like a policy question that should be discussed, adding she is curious as to why salaries are included in the EDA . Councilmember Harris recalled that salaries could come from the general fund, which would increase the amount of levy each year and the balance in the fund would then be for projects . Ms. Barton will return with further information on the staff salaries for council discussion at a later date. DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -9- Aug. 23, 2021 Ms. Schmitt stated this will come before council again on Sept. 13 for further discussion. 3. Future study session agenda planning and prioritization Councilmember Rog stated she would like an update on the the Westwood Hills access funds. Additionally, the last policing discussion was in Feb., and she would like another discussion on that. Councilmember Kraft asked about getting a timeline and next steps on policing. He also would like to discuss city staff mask and vaccine mandates among staff and in city facilities. Mayor Spano stated there have been some questions raised by residents. He stated the Secretary of State of MN guidance is we do not deny a person to vote if not wearing a mask . He stated he is not ready to discuss a mandate for staff on this. Ms. Keller stated they are strongly encouraging staff to wear masks and working with the fire department on booster vaccines. Councilmember Brausen stated he is fine with the proposed agenda and asked about the agenda updates discussion, which is a priority and also the nature center access funding. Councilmember Harris stated the transportation commission presentation was to be on Sept . 27 and asked if that changed. Ms. Walsh stated she would look into this and get back to council. Councilmember Brausen stated the week of Labor Day there will be no meeting due to Rosh Hashanah holiday. Councilmember Kraft pointed out this summer the droughts, fires, and summer fires have been strong and climate crisis is here. The United Nations body sets goals on climate and describes scenarios. Up until now, they have not been very definitive, but this last report was very striking and definitive, and there is a limited window to do anything . He would like to discuss declaring a climate emergency in St. Louis Park and involve all of the community and provide leadership around the state, while also providing actionable steps such as a trans-formidable investment and coordinate with other communities. Councilmember Rog supports this discussion for a study session. Councilmember Dumalag is interested in discussing this and asked what does an emergency mean. Councilmember Kraft stated it is up to the council to determine what that means in St. Louis Park. He noted that both Minneapolis and Duluth have declared climate emergencies . Councilmember Harris stated when discussing policy questions, she likes to look at what problem are we trying to solve. She is supportive of having the conversation and welcomes other cities to have the same conversation quickly. Councilmember Mohamed is supportive as well but does not want this to be performative. DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188 Study session minutes -10- Aug. 23, 2021 Councilmember Brausen is also supportive of this discussion and noted it is the transcendent issue in front of all society now. Mayor Spano stated he is interested in the subject, but he would like a written staff report first before discussion to get a sense of this issue. He asked what would be different by declaring this that the city is not doing now. Councilmember Brausen referenced written report #5 and staff recommending $5.2 million of pay as you go TIF. He stated he supports this, which is consistent with city TIF policies and noted this will assist the SWLRT project with payback of 8 years and later, which will assist with affordable housing. Councilmember Dumalag added she was happy to see the addition of paragraph 9 related to our racial equity goals that the council previously discussed. Councilmember Kraft referenced the climate investment fund report and asked if there is a PR plan around it. He also asked about carbon banking and if this is above and beyond what we already do. He stated sometimes there are longer-term benefits that can be looked at. He stated fuel switching and heat pumps also need to be looked at more . Councilmember Rog noted on the 3450 TIF request, she is not satisfied with the 25 affordable units when only 6 units are two-bedroom and above. She is also not happy with the design here and thinks the council may have missed this with the developer . So if there is any opportunity to further discuss, she would like to do so. She added she will not support this TIF request. The meeting adjourned at 8:31 p.m. Written Reports provided and documented for recording purposes only: 4 July 2021 monthly financial report 5. Business terms for redevelopment contract with Opus Development Company, LLC – Beltline Residences. 6. Climate Investment Fund proposed 2022 budget and policy. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: 402C7C30-087D-4676-8909-28A20A44B188