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HomeMy WebLinkAbout2021/11/08 - ADMIN - Minutes - City Council - Study Session Official minutes City council study session St. Louis Park, Minnesota Nov. 8, 2021 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Lynette Dumalag, Rachel Harris, Larry Kraft, and Margaret Rog Councilmembers absent: Nadia Mohamed Staff present: City Manager (Ms. Keller), CIO (Mr. Pires), Interim Deputy City Manager/Director of Operations and Recreation (Ms. Walsh), Engineering Director (Ms. Heiser), Community Development Director (Ms. Barton), Economic Development Manager (Mr. Hunt), and Elections Specialist (Mr. Sund) Guests: Vic Moore, city lobbyist, Stacy Kvilvang, Martha Ingram; Ehlers 1. 2022 draft legislative positions and priorities Councilmember Brausen asked about legislative redistricting. Mr. Moore stated this is being worked on and the deadline is Feb. 15, 2022, but the likelihood of reaching an agreement between the house and legislature is not good. Mayor Spano asked if there would be big changes on redistricting . Mr. Moore stated generally rural areas are losing populations and some seats will be lost in other areas. He stated the outer ring suburbs will likely have the most changes. Councilmember Harris asked about local option sales tax and when that is discussed at the legislature. Mr. Moore stated the referendum must be done first by the city before it goes to the legislature. Councilmember Rog asked if there are any bonding requests St. Louis Park is involved in . Mr. Moore stated he has not seen anything. Councilmember Rog asked how long it takes to go through this process. Mr. Moore explained it can be an ongoing process and could take years. Mayor Spano asked if the council’s document to the legislature is helpful. Mr. Moore stated it is helpful, but he does have a sense of what council’s priorities are ongoing. He added he monitors legislation for the council to keep them aware of certain bills. Mr. Moore explained he does use the document, but the council does not have to do it just for him, noting it is a lot of work. He stated the document is fine as is, but council could include what they do and do not want passed. Councilmember Rog asked about keeping the local newspaper publishing requirement included in the report. Mr. Moore noted that not every community has a local newspaper, and publishing requirements are a source of reliable revenue for them, so it is helpful to have it as a priority. DocuSign Envelope ID: DDB7B87B-E8A1-4156-98B4-980AFFBC2219 Study session minutes -2- Nov. 8, 2021 Councilmember Dumalag stated she would like to see it remain as a priority for those community members who rely on it. Councilmember Kraft stated he appreciates the report, and the advanced state energy code would be a priority to keep on the list, as well as statewide data collection related to race and traffic stops. Related to climate, he would like to see more on phasing out fossil gas and have the legislature help do this as well as provide a state match to our climate investment fund like we’re requesting for our Affordable Housing Trust Fund . Mr. Moore stated they are not yet sure on funding for infrastructure in the bill, and much of the federal money has not been spent, so maybe this funding could come from that. Councilmember Dumalag commented on development along the corridor and asked where there can be more tree and canopy infrastructure. Mr. Moore stated he can help to put emphasis on this. Mayor Spano referenced comments on state funding and stated the city already has a standard with data collection, so he does not want to lose that standard if the state develops a different standard. He added given SWLRT, it seems like it is time to get more information on this and time is passing so he has concerns. Mr. Moore stated this is a good observation and should be pursued. Councilmember Harris asked to include continued assistance to the city’s small businesses, noting long-term effects. She stated local funds were used to help but she would like this to be a priority and a state request. Councilmember Rog asked about passing a resolution related to universal healthcare on the city’s legislative priorities. Councilmember Harris stated the processes and services provided by the county and city are blurry lines. She noted with the city’s community values as national topics come forward , council should approach policy that is comprehensive. Councilmember Dumalag stated she likes the approach taken with legislative priorities but is not interested in passing a resolution related to it. Councilmember Kraft stated he is in favor of it being on the legislative priorities list, but not interested in a resolution. Mayor Spano stated there does not seem to be consensus on having a resolution related to universal healthcare. Councilmember Harris stated she has concerns about equity. Councilmember Rog asked if this could still be added to the list of priorities. Mr. Sund stated council’s final list of legislative priorities will not be due until the beginning of 2022. DocuSign Envelope ID: DDB7B87B-E8A1-4156-98B4-980AFFBC2219 Study session minutes -3- Nov. 8, 2021 2. Annual TIF district management report and amended and restated TIF Policy Ms. Kvilvang presented a report. Councilmember Kraft stated TIF is very complex and difficult to understand. He stated it feels opaque to him with money in lots of places. He suggested staff aim to make it much easier for residents to understand and look to summarize this, show how much we are investing, the total amount of tax dollars being captured, how much would go to the city, where are dollars going, and also what TIF gets the city, noting it is hard to get to the information and allow for basic understanding. Councilmember Kraft stated a lot of positive is done with TIF, but the report does likely overstate the impact of it as the valuation increase does not consider inflation, nor does it consider if another development would happen. Councilmember Kraft asked about the tax rate and how it is calculated. Ms. Kvilvang explained the tax rate is what it takes to run everything in the city and is applied against all the taxable market value. Councilmember Kraft asked how much of the pooled TIF for affordable housing should be deposited in the AHTF on an annual basis. Ms. Kvilvang stated it’s up to the EDA to decide, but the legislature requires the pooled TIF must be spent on homes, residents, or housing projects. She added she liked Councilmember Kraft’s challenge about presenting information more simply. Councilmember Rog asked about putting funds into affordable housing annually and if there are not projects, would it be best to build up reserves. She added right now the funds are sitting there. Mr. Hunt stated there are city-approved developments planning to submit their final TIF requests. Councilmember Rog asked about the but/for requirement for a dollar-to-dollar comparison, and how this is derived. Ms. Kvilvang explained the existing value and future market value are both looked at and then an estimated market value is developed. She added the numbers are based on today’s values to future assessed values and then the tax increment is applied. Councilmember Rog stated she wasn’t 100% clear on this as there is no way to know what might have been developed if TIF wasn’t used. Mr. Hunt noted the former Santorini site could have been developed as several other things, that would not have required TIF assistance, but would not have met the city’s vision or strategic priorities. By providing TIF, the city is able to incent developments that help achieve the city’s strategic priorities and make optimal use of the property. Ms. Kvilvang stated commercial typically does not provide as much tax revenue as multi-family housing. DocuSign Envelope ID: DDB7B87B-E8A1-4156-98B4-980AFFBC2219 Study session minutes -4- Nov. 8, 2021 Councilmember Brausen stated developers asking for TIF are not guaranteed to get it, however, TIF has allowed the city to increase affordable housing options and meet the city’s strategic priorities. He also noted TIF lets the council have more influence on what the city would like included in each development and is in support. Councilmember Harris asked how the threshold can be reduced to offer a lower TIF amount. Ms. Kvilvang stated the city is very supportive of funding and the city’s track record is helpful. Councilmember Harris noted green policies can be achieved through TIF as well as increased affordable housing. She appreciated making TIF adjustable. She stated she’d like to see what the city receives as a result of using TIF in staff reports. Mr. Hunt stated staff provides council with a list of the benefits of providing TIF in every TIF application staff report. Councilmember Harris stated she is supportive of TIF for affordable housing purposes, adding she is very enthusiastic about the affordable housing program as well as larger units. Councilmember Dumalag stated she supports TIF, the proposed restated TIF policy, and is interested in the racial diversity aspects of TIF. Mayor Spano stated the council is responsible for the high-level policy of TIF, not the details. He stated council is missing the big picture and the details should be left to staff . He agrees that how this is explained to residents is important. Councilmember Rog feels this is an important conversation to have, especially so she can be more comfortable when responding to her constituents regarding TIF . She stated going forward, she would like council to think more strategically about what can go back into the general fund. Councilmember Rog would like to look, in the future, at affordable rentals for the disabled. She would also like to discuss what happens after the 25 years of TIF for developments. She would also like to look at undocumented folks as part of the inclusionary housing policy. It was the consensus of the council to continue to support using pooled TIF for affordable housing purposes and to support the proposed amended and restated TIF Policy. The racial equity piece and inclusion policy is currently being drafted but is referenced in the TIF Policy. 3. Future study session agenda planning and prioritization It was noted that meetings will be held on Nov. 15 and 22, 2021, with no meeting on Nov. 29, 2021. Communications/meeting check-in (verbal) Ms. Keller noted postcards will go out next week relating to snow emergency information and stated Thursday, Nov. 11 is veteran’s day and city offices will be closed. DocuSign Envelope ID: DDB7B87B-E8A1-4156-98B4-980AFFBC2219 Study session minutes -5- Nov. 8, 2021 Mayor Spano noted the Just Deeds discussion taking place on November 16, 2021. He stated that this is related to racial covenants and the program will be using his home as an example and documenting the process. Councilmember Rog noted the Just Deeds discussion will be at Beth-EL from 6:30-8:30 p.m. Councilmember Kraft noted a Friends of the Arts fundraiser on November 17, 2021, from 5-7 p.m. at Westwood Hills Nature Center. The meeting adjourned at 10:00 p.m. Written Reports provided and documented for recording purposes only : Councilmember Rog asked about the status of the SWLRT as it relates to the Sherman Associates proposed development and parking stalls proposed. Ms. Barton responded that staff worked on the reduced number of parking spaces, and at Beltline, the developers are planning to go above and beyond on parking requirements. 4 Sept. 2021 monthly financial report 5. Third quarter investment report (July – Sept. 2021) 6. Update on Sherman Associates’ proposed Beltline Blvd. station redevelopment 7. Sustainability division update for Q4 2021 8. Parking ordinance update ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: DDB7B87B-E8A1-4156-98B4-980AFFBC2219