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HomeMy WebLinkAbout2022/01/10 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JAN. 10, 2022 The St. Louis Park City Council is meeting in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. in accordance with the most recent COVID-19 guidelines. Members of the public can attend in person or watch via webstream at bit.ly/watchslpcouncil and on local cable (Comcast SD channel 17 and HD channel 859). Visit bit.ly/slpccagendas to view the agenda and reports. 6:00 p.m. STUDY SESSION – council chambers Discussion items 1. 60 min. 2022 legislative priorities 2. 30 min. COVID-19 update 5 min. Communications/updates (verbal) Written reports 3. November 2021 monthly financial report 4 Public art update 5. Application for tax increment financing assistance – 9920 Wayzata Boulevard 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 after 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: January 10, 2022 Discussion item : 1 Executive summary Title: 2022 legislative priorities Recommended action: None at this time. The purpose of this report is to provide the council with the final legislative positions and priorities for the 2022 legislative session. Policy consideration: Are the 2022 legislative positions and priorities as prepared acceptable? Summary: The state legislature will reconvene the 92nd session on Monday, Jan. 31, 2022. Staff has prepared a list of legislative priorities for the council at their direction. As the 2022 legislative session progresses, additional issues may arise that can be addressed as necessary. Attached to this report is the full list of priorities and related positions. Special notes mark an advanced state energy code (p.5), small business assistance during COVID-19 (p.8), and race data collected on Minnesota driver’s licenses and state identification (p.17) as high priority issues. During this study session, the council will meet with Representative Cheryl Youakim, Representative Ryan Winkler, and Hennepin County Commissioner Marion Greene to discuss these priorities. Senator Ron Latz is unable to attend this meeting but has prepared a short statement (attached) and is prepared to work with the council during the session based on these priorities. Typically, a representative from the Metropolitan Council would also be present, however, the district six representative that would typically represent the city is currently vacant and in the process of being filled. Once a person is selected for that role by Governor Tim Walz they will be informed of our priorities and positions. Financial or budget considerations: Funding for lobbyists is included in the budget. Strategic priority consideration: The legislative priorities were generated and reviewed with consideration of all five strategic priorities for the city. Supporting documents: Discussion 2022 legislative positions Written statement from Sen. Latz Prepared by: Michael Sund, elections specialist Reviewed by: Melissa Kennedy, city clerk Approved by: Kim Keller, city manager Study session meeting of January 10, 2022 (Item No. 1) Page 2 Title: 2022 legislative priorities Discussion Background: In the council study session meeting on Nov. 8, council members requeste d that staff revi ew two f ed eral policies and corresponding state legislative efforts for inclusion in the 2022 legislative p riorities d ocument. Those p olicies w ere in support of the Medicare for All Act and the National Popular V ote Interstate Compact. In addition, Council Member Rog requested that a resolution of support be adopted by the council in support of the Medicare for All Act. Staff reviewe d both policies for consideration as they relate to the City of St. Louis Park. A process for the adoption of policies of this kind was discussed at that meeting and determined to be a necessary component for inclusion in the city’s legislative priorit ies or to be the subject of adoption in the form of a resolution of support. At the direction of the council, staff reviewed both policies f or inclusion in the 2022 Legislative P rioriti es but has not had the opportunity yet to present them to council. This will occur in future study sessions and, if approved, included in the legislative prioriti es. Additional Resources League of Minnesota Cities: Legislative policies Policy committees Metro Cities: Legislative policies Policy committees City of St. Louis Park 2022 Legislative Priorities Climate, Energy , and Buildings Primary contact Brian Hoffman – Email: bhoffman@stlouispark.org / Phone: (952) 924-2584 The City of St. Louis Park supports innovative strategies in the pursuit of a more sustainable climate worldwide , including the adoption of near-term emission reduction targets as described in the city’s Climate Action Plan. Issue Position Page # Advanced state energy code Support adopting advanced state energy codes and/or allowing for local adoption of more efficient building standards. **This is a high priority issue for the city** 7 Climate action plan Support the statewide adoption of similar goals to those in the St. Louis Park Climate Action Plan. 7 Construction codes Oppose legislation that would reduce the current minimum building and energy code standards or limit future adoptions of improved energy conservation standards. 8 Fee-for-service programs Support maintaining minimum standards for building safety, longevity, and energy conservation, and allow local governments to continue with fee -for-service permitting and inspection. 8 Residential fire sprinklers Oppose efforts that prohibit future adoption of residential fire sprinkler codes. 8 Urban forest management Support an ongoing grant program with at least $5 million per year that is usable for issues related to Emerald Ash Borer and urban forest management. 9 Economic Development Primary contact Kare n Barton – Email: kbarton@stlouispark.org / Phone: (952) 924-2684 The City of St. Louis Park supports a thriving local economy of small and large businesses and strives to create a place where people can live, work , and play. Issue Position Page # DEED program funding Support the continued annual funding of DEED programs at stable, sustainable, or increased levels. 10 Small business assistance during COVID Support financial relief programs particularly including assistance for women and BIPOC-owned businesses. **This is a high priority issue for the city** 10 Special Service Districts Support including multi-family housing in Special Service Districts and Special Service Districts around transit and LRT stations. 10 Telecommunications and information technology Oppose the adoption of state and federal policies that restrict cities’ ability to finance, construct, or operate telecommunications networks. 11 Page 3 Study session meeting of January 10, 2022 (Item No. 1) Page 4 Title: 2022 legislative priorities General Government Primary contact Kim Keller– Email: kkeller@stlouispark.org / Phone: (952) 924-2526 The City of St. Louis Park supports good governance in the form of legal authority to help residents to thrive in the ways they need. Issue Position Page # Cable franchising authority Support congress to recognize, support and maintain the exercise of local franchising authority . 12 Levy limits Oppose a levy limit or other proposed restrictions for local government budgets. 13 Local Control Support local control as a princip le that applies to many issues. N/a Records retention related to correspondence Support inclusion of social media and text messaging and a standard 3-year retention period. 13 Safeguard public code administration employees Support Minnesota League of Cities SD-32 Assaults on Code Enforcement Officials. 14 Housing Primary contact Kare n Barton – Email: kbarton@stlouispark.org / Phone: (952) 924-2684 The City of St. Louis Park supports housing for all residents in the city including policies that build and maintain housing and aid in associated costs. Issue Position Page # Affordable housing fee on new development Support ability to collect an affordable housing fee on new development. 15 Local Housing Trust Fund Support dedicated revenue, state match, and technical assistance for local housing trust funds 15 Prohibition on discriminating against renters Support a statewide prohibition on discrimination against renters receiving rental assistance. 15 Rental rehab loan program Support establishment of a housing rehab loan program for the preservation of NOAH multi-family residential rental properties . 15 Resources for affordable housing Support funding to facilitate, create and preserve affordable housing. 16 TOD Housing Fund Support the creation of a transit-oriented development affordable housing fund. 16 Study session meeting of January 10, 2022 (Item No. 1) Page 5 Title: 2022 legislative priorities Public Safety Primary contact (Police) Mike Harcey Email: mharcey@stlouispark.org / Phone: (952) 924-2128 Primary contact (Fire) Steve Koering Email: skoering@stlouispark.org / Phone: (952) 292-0281 The City of St. Louis Park supports public safety policies and rules that help our front-line workers and ensure equitable and safe outcomes for residents. Issue Position Page # Criminal background checks Support preventing individuals who are not legally able to purchase a gun from doing so without background checks at gun shows, online, or in private transactions. 17 Emergency medical services Support uncoupling professional standards overview by the EMSRB from the service area determination. 17 Expansion of legal fireworks Oppose legislation that expands fireworks in Minnesota. 18 Gun violence protective orders Support allowing law enforcement in certain cases to temporarily remove any guns in an individual's possession and to prohibit new gun purchases for the duration of the order. 18 Health insurance coverage for disabled public safety officers Support that this mandate be fully funded by the state. 18 Mandated law enforcement training Support continuing the POST Board training reimbursement allocation to local agencies 18 Pathway to policing program Support funding increase for this program. 19 Permit to Purchase Firearms/Permit to Carry Support aligning the permit to purchase firearms statutes with a permit to carry statute in terms of the time required for conducting background checks . 19 Race Data Collected on Minnesota Driver's License and State Identification Support the Minnesota Department of Public Safety to require individuals self -identify their race when applying for a driver's license or state identification. **This is a high priority issue for the city** 19 Study session meeting of January 10, 2022 (Item No. 1) Page 6 Title: 2022 legislative priorities Transportation and Infrastructure Primary contact Deb Heiser – Email: dheiser@stlouispark.org / Phone: (952) 924-2551 The City of St. Louis Park supports providing a variety of options for people to make their way around the city comfortably, safely, and reliably. Issue Position Page # Infrastructure Investment and Jobs Act (IIJA) Support the adoption of funding for transportation related projects that allows for the full allocation of additional federal funds for infrastructure projects related to IIJA 21 Railway safety Support accountability, safety, and funding of accident prevention, as well as new rules around railway safety. 21 Redesign CSAH 25 Support Hennepin County’s funding of rehabilitation/reconstruction of CSAH 25. 21 Southwest LRT Support the continued work and completion of the Southwest LRT Project to provide businesses, residents, and visitors with multiple transportation options.  22 Texas Ave . and Minnetonka Blvd. Support Hennepin County partnering for the reconstruction of the Texas Avenue/Minnetonka Blvd intersection. 23 Transit financing Support revenue sources to fund the operating budget for all regional transit providers . 24 Transportation funding Support sufficient statewide transportation funding, for all modes of travel, and local control to serve long-term needs. 24 Study session meeting of January 10, 2022 (Item No. 1) Page 7 Title: 2022 legislative priorities City of St. Louis Park 2022 Legislative Positions Climate, Energy, and Buildings Advanced state energy code (Request directed to State Legislature) Issue: Reducing energy consumption and carbon emissions of buildings is a major component toward achieving the St. Louis Park Climate Action Plan, especially for larger commercial structures. Continuing to construct new buildings to the current MN State energy code is counterproductive as requirements are dated and allow for relatively high energy consumption. Future retrofitting of these buildings to reduce energy and carbon emissions will be costly and difficult. The cities of Bloomington, Edina, Minneapolis, S t. Louis Park, St. Paul, and Rochester (Planning Team cities) began convening a series of meetings during 2019 with other cities from across the state to discuss the topic of how to advance energy performance in new construction and major renovations of buildings in Minnesota. This group is called the Cities Advanced Building Performance Work Group. St. Louis Park and St. Paul staff represented cities on the Minnesota Department of Commerce (Commerce) and the Minnesota Department of Labor and Industry (DLI) Building Efficiency Workgroup. The purpose was to explore potential policy solutions that will enable cities to voluntarily promote or otherwise ensure greater energy performance measures for commercial and multifamily residential buildings. Position: Support legislation to adopt developing a more advanced state energy code and/or allowing for local adoption of more efficient building standards. Environment and sustainability (Climate Action Plan , Request directed to State Legislature, Met Council & Hennepin County) Issue: The city adopted a Climate Action Plan (CAP) in February 2018 with the ambitious goal of achieving carbon neutrality (having a net zero carbon footprint) by 2040. The Climate Action Plan outlines specific activities and goals the city will undertake to reduce greenhouse gas emissions. The plan includes seven mid-term goals by 2030 to keep the city on track, they include: • Reduce energy consumption in large commercial buildings by 30 percent • Reduce energy consumption in small- to mid-size commercial buildings by 30 percent • Design and build all new construction to be net-zero energy Reduce energy consumption in residential buildings 35 percent Achieve 100 percent renewable electricity • Reduce vehicle emissions by 25 percent • Reduce solid waste 50 percent from business as usual Position: The city supports the statewide adoption of similar goals to those in the St. Louis Park Climate Action Plan and requests ongoing support to achieve these goals. The city supports legislation that helps climate action planning by reducing energy usage and greenhouse - gas emissions. In addition, the city supports legislation that provides state funding for energy conservation and renewable energy initiatives. Study session meeting of January 10, 2022 (Item No. 1) Page 8 Title: 2022 legislative priorities Construction codes – limiting local regulatory authority (Request directed to State Legislature) Issue: Recent discussions on affordable housing solutions include agencies advocating for housing programs for primarily multiple family developments, and local home builders pursuing reduced regulatory authority by the state and cities. Last year, the Builders Association of the Twin Cities working through a newly created branch organization called Housing First MN, worked toward a bill that was defeated. Requiring new construction codes that could increase the cost to receive legislative committee approval before being adopted, potentially halting progress in public safety and energy conservation standards. Additionally, these groups proposed restricting or eliminating local land use standards developed by communities for livability. Position: Although St. Louis Park strongly supports and encourages affordable housing, minimum code requirements for energy conservation and building safety should not be compromised on the concept of reducing construction costs to builders. In addition, local land use and zoning standards for establishing quality of life standards in each community should not be limited by legislative action. Maintain local establishment of appropriate fee-for-service programs (Request directed to State Legislature) Issue: Calls for affordable housing by the construction industry mistakes codes and fees as being the cause of rising home values as opposed to other causes like rapidly increasing price of building materials and construction labor. Position: Maintain a consiste nt minimum standard for building safety, longevity, and energy conservation, and allow local government units to continue with fee-for-service programs as currently outlined in statute (e.g., reasonable, and justifiable). Oppose statutory prohibition on residential fire sprinklers (Request directed to State Legislature) Issue: The Appellate Court struck down the Department of Labor and Industries’ (DLI) adoption of the latest International Residential Code (IRC). The IRC is for building new single-family and duplex homes, which had a provision for residential fire sprinklers in newly constructed one - and two-family homes that were 4,500 sq. feet and larger. Analysis: The sprinkler provision was challenged on whether it was done legally and appropriately. Therefore, the requirement to build these homes safer using sprinklers is no longer in effect. This is a concern because, in terms of fire safety, the most dangerous place to be is at home. In addition, most often the victims of a fire are the young and elderly, who have a more difficult time getting out in an emergency situation. Residential fire sprinklers save lives and are cost-effective. Recent studies in Minnesota show the cost of installing residential fire sprinkler systems averages $1.15 per sprinkled square foot, or approximately 1% of new home construction. Position: The city opposes efforts that prohibit future adoption of residential fire sprinkler codes. Study session meeting of January 10, 2022 (Item No. 1) Page 9 Title: 2022 legislative priorities Urban forest management funding - emerald ash borer (Request directed to State Legislature) Issue: Emerald ash borer (EAB) threaten s our investment in trees. The costs for control and removal can be catastrophic and put pressure on city budgets. Specifically, EAB is the most destructive and economically costly forest pest ever to invade North America. Ash trees killed by EAB become brittle very quickly and will begin to fall apart and threaten overhead cables and power lines, vehicles, buildings, and people. Few cities are prepared, and no city can easily afford the costs and the liability threats resulting from EAB. Peer-reviewed studies have confirmed that a coordinated, landscape -based strategy is more cost effective than fighting EAB city by city. In addition, there are new maintenance costs for the hundreds of thousands of new trees that are being installed because of EAB. The lack of juvenile tree maintenance and pruning in maturing trees from the mass plantings after Dutch elm disease presents an opportunity to address this now with EAB infestation programming. The Minnesota De partment of Natural Resources, through its Urban and Community Forestry program, and the Minnesota Department of Agriculture, through its Shade Tree and Invasive Species program, currently has regulatory authority to direct tree sanitation and control programs. Although these programs allow for addressing some tree disease, pest, and other problems, funding levels have been inadequate to meet the need of cities to build capacity for urban tree programs and respond to catastrophic problems. A lack of timely investment in urban forests costs cities significantly more in the long run. Further, more and more cities are facing immediate costs for the identification, removal, replacement, and treatment of EAB as it spreads across the state. The state has no program to assist cities in covering those expenses. Position: St. Louis Park supports funding from the general fund or other appropriate state funds for a state matching grant program to provide technical assistance and grants to communities for EAB management/removal costs and related practices. Specifically, direct grants to cities are desperately needed for the identification, removal, replacement, and treatment of trees related to management of EAB. The state should establish an ongoing grant program with at least $5 million per year that is usable for those activities Study session meeting of January 10, 2022 (Item No. 1) Page 10 Title: 2022 legislative priorities Economic Development DEED Program Funding (Request directed to State Legislature) Issue: The Department of Employment & Economic Development (DEED) is critically important in the support of communities and local economic development initiatives. DEED manages several programs utilized by the city that have positively impacted St. Louis Park. Position: St. Louis Park supports the continued annual funding of DEED programs at stable , sustainable, or increased levels as it is vital to economic growth across Minnesota. Programs administered by DEED and other state agencies include Small Business Development Centers, the Minnesota Investment Fund, the Job Creation Fund, Contamination Cleanup and Investigation Grant Program, Redevelopment Grant Program, Transportation Economic Development Infrastructure Program and proposed new financing tools that support development along transit corridors. The city further supports the continuation of the Angel Tax Credit to spur the startup of high-technology businesses in Minnesota. Communities rely on these programs to remain competitive with neighboring states in their efforts to bring jobs back to Minnesota and expand the tax base. Small business assistance during COVID (Request directed to State Legislature) Issue: Small businesses across Minnesota continue to struggle with the adverse health and financial impacts resulting from COVID-19 and its variants. These businesses, which are both the economic engine of the state and the bedrock of their communities, continue to be vulnerable to significant employee challenges, revenue reductions and ultimately closures stemming from the virus if additional actions are not taken. Continued federal and state funding programs are needed to assist small businesses through the health crisis. Position: The City supports continuing financial relief programs (such as grants and low-interest loans ) to help sustain the state’s small businesses until the global health crisis has been brought further under control. Such funding should particularly include assistance for the state’s women and BIPOC-owned businesses as well as self -employed and sole proprietor entrepreneurs. Special Service Districts Statutory Authority (Request directed to State Legislature) Issue: In 1988, cities were granted general authority under Minn. Stat. § 428A.01 to§ 428A.101 to establish Special Service Districts. As the law is currently written, only commercial properties can financially participate within Special Service Districts. This is challenging for funding additional services within mixed -use project areas as they have multiple types of property. The City of St. Louis Park has established six Special Service Districts, including multiple sections of Excelsior Boulevard. Providing infrastructure improvements and ongoing maintenance at the LRT station near these areas may be impacted by this law. Position: The city supports the inclusion of multi-family housing developments as financial participants within Special Service Districts and the establishment of Special Service Districts around transit and LRT station areas. Study session meeting of January 10, 2022 (Item No. 1) Page 11 Title: 2022 legislative priorities Telecommunications and information technology (Request directed to State Legislature and U.S. Congress) Issue: Telecommunications and information technology is essential public infrastructure for the efficient, equitable, and affordable delivery of local government services to residents and businesses. Telecommunications includes voice, video, data, and services delivered over cable, telephone, fiber-optic, wireless, and all other platforms. Analysis: The city and League of Minnesota Cities support a balanced approach to telecommunications policy that allows new technologies to flourish while preserving local regulatory authority. Regulations and oversight of telecommunications services are important prerogatives for local government to advance community interests, including the provision of high -quality basic services that meet local needs, spur economic development, and are available at affordable rates to all consumers. For the City of St. Louis Park, this is also consistent with its priority efforts to advance racial equity and to be a technology connected community. Supportive policies should also not diminish local authority to work cooperatively with other public agencies, non-profit organizations, and the private sector to broaden choice and competition of telecommunications services to meet local needs. Position: The city opposes the adoption of state and federal policies that restrict cities’ ability to finance, construct, or operate telecommunications networks. Study session meeting of January 10, 2022 (Item No. 1) Page 12 Title: 2022 legislative priorities General Government Cable franchising authority (Request directed to State Legislature and U.S. Congress) Issue: In 2019, the Federal Communications Commission (FCC) issued an Order known as the “621 Order” which took effect with the potential to significantly reduce franchise fee and public, educational and government (PEG) fee revenue received by cities from cable operators. In response, a petition for review was filed in federal court (Sixth Circuit Court of Appeals) seeking review of the 621 Order on the grounds that it is arbitrary and capricious, violates federal law and is otherwise contrary to the law. Oral arguments were schedule d for April 2021. On May 26, 2021, the Sixth Circuit of Appeals issues its decision regarding the 621 order, upholding it in part and reversing it in part as follows: PEG transport and free service to schools and government buildings – “in -kind” services The Court held that noncash (or “in-kind”) cable- related obligations mandated by the Cable Act are not franchise fees. But noncash cable -related exactions such as free cable service or PEG transport that the Cable Act merely permits a franchising authority to impose, are franchise fees and thus count toward the 5% cap. As a result, a city may now be required to pay for these in-kind services. However, the Court softened the impact of this conclusion by holding that when calculating the cost of these in-kind services a cable operator can assign a value equal to the cable operator’s “marginal cost” in providing them. This is a significant victory for local franchising authorities, as the 621 Order had concluded that an operator could charge the “fair market value” of the in-kind obligations. However, calculating marginal cost is a complex proposition and will likely be a source of considerable debate between the cable industry and local franchising authorities. At this time the City of St. Louis Park has not bee n approached by Comcast regarding imposing these marginal costs, and in fact, a new 10-year cable franchise agreement was recently completed with no mention of imposing these fees. Nevertheless, it’s an issue we will continue to monitor. Local authority over broadband services – the ‘Mixed -use ’ rule. The main issue at stake under the ‘mixed-use’ rule is whether the 621 Order’s broad preemption of state and local authority over the ever-expanding broadband services being provided by cable companies is authorized by the Cable Act. The Court held that the imposition of a broadband fee on a cable operator circumvents the Cable Act’s limitations and thus the fee is not “consistent with” the Cable Act and is therefore preempted. This decision on ‘mixed -use ’ likely will not end the debate regarding the imposition of right-of-way fees on broadband services. The Court’s detailed analysis will leave both local governments and the cable industry with plenty to consider as this issue continues to evolve. Local governments and municipal organizations have filed Petitions for Rehearing asking the 6th Circuit Court of Appeals to revisit the May 26, 2021, decision. The Petitions ask the Court for rehearing with respect to the finding that most cable franchise requirements are “franchise fees” under the Cable Act as well as with respect to the preemption portion of the decision as applied to the broadband services provided by cable operators. Position: The City of St. Louis Park participated in the joint appeal of the 621 Order, along with many other cities and cable commissions from Minnesota and across the country. The Legislature, Federal Communications Commission (FCC), and Congress should also continue to recognize, support and maintain the exercise of local franchising authority to encourage increased competition between incumbent cable system operators and new wireline competitive video service providers including: maintaining provisions in Minn. Stat. Ch. 238 that Study session meeting of January 10, 2022 (Item No. 1) Page 13 Title: 2022 legislative priorities establish and uphold local franchising authority, including the authority to receive a gross revenues based franchise fee and local authority over areas including: control and access to public rights-of-way by all video and cable service providers; fees on providers to ensure the provision of public, educational, and governmental (PEG) programming; video channels and video streaming for PEG programming equivalent to that of the local broadcast stations; ensuring programming is accessible and searchable through detailed Electronic Programming Guide listings that are equivalent to that of local broadcast stations; access to capacity on institutional networks (I -Nets) provided by local cable system operators for public safety communications, libraries, schools, and other public institutions; and strengthening local authority to enforce customer service standards and transparency in pricing. Levy limits (Request directed to State Legislature) Issue: During the 2008 legislative session, levy limits were imposed for three years (2009-2011) on cities over 2,500 in population. A one-time levy limit was applied to taxes levied in 2013, payable in 2014. This was in effect for all counties with a population of 5,000 and over and cities with a population of 2,500 and over. All cities with a population less than 2,500, all towns , and all special taxing districts were exempt from the limits. Levy limits replace local accountability with a state judgment about the appropriate level of local taxation and local services. Additionally, state restrictions on local budgets can have a negative effect on a city's bond rating due to the restriction on revenue flexibility. Position: St. Louis Park opposes efforts to establish a levy limit or other proposed restrictions for local government budgets. Based on our legislative policies that strongly support local budgetary decision making, St. Louis Park opposes levy limits of any type. Records retention related to correspondence (Request directed to State Legislature) Issue: HF 1185 was introduced during the 2017 legislative session relating to data practices that included changing the definition of “correspondence” in government record retention law to include social media and text messaging and requiring a minimum three -year retention period for correspondence. Analysis: The proposed bill was designed to provide a statewide standard retention period for correspondence. Concerns with the bill include an unfunded mandate on cities (especially small ones) to meet the new requirements, and the burden of including social media and text messaging in the definition of correspondence. Social media and text messaging capture typically requires separate capture software/hardware than email, and thus contributes to increased costs. Additionally, the various device providers (Verizon, Apple, etc.) typically require separate legal order from the court to obtain text message records for an individual if the message is not actively stored on the device. This contributes to increased legal costs and is overly burdensome on local jurisdictions. Position: The city opposes the bill in its current form. Delaying full inclusion of social media and text messaging to future years so the State can include funding options (and possibly some Study session meeting of January 10, 2022 (Item No. 1) Page 14 Title: 2022 legislative priorities standards) would be helpful. The city does support a standard correspondence retention period and feels the proposed 3 year minimum is reasonable. That said, not every city is funded or technically ready to do this. As a result, the city currently endorses the LMC position on the role that should be fulfilled by existing records retention requirements. The current LMC position is to oppose HF 1185. Safeguard public code administration employees (Request directed to State Legislature) Issue: As public safety regulators, inspectors often face hostility from members of the public. A no tolerance position for abusive behavior should be adopted. Assaults and murder have occurred on code officials in the normal course of performing their duties for a local government unit. Position: Support Minnesota League of Cities SD-32 Assaults on Code Enforcement Officials. The change would move assault charges from the current fifth degree, or misdemeanor, to a more stringent fourth degree, a gross misdemeanor, by expanding the public Employees with Mandated Du ties statute to include code enforcement officials. Study session meeting of January 10, 2022 (Item No. 1) Page 15 Title: 2022 legislative priorities Housing Affordable housing fee on new development (Request directed to State Legislature) Issue: There is an increasing need for affordable housing across the state. Additional funds are needed to create and maintain affordable housing units within the city. An affordable housing fee on new development would help increase funds for future housing projects and initiatives. Position: The city supports legislation that would allow for the collection of an affordable housing fee on new development. Local housing trust funds (LHTF) (Request directed to State Legislature) Issue: The legislature passed lan guage that enables cities, counties, or regions to set up and resource LHTFs. Local affordable housing agencies continue to work on finding consistent funding sources and methods to incentivize communities to take advantage of this locally controlled tool. Position: The city supports legislation that establishes a dedicated revenue source for LHTFs, creates a state match, and provides technical assistance dollars to communities to set up their individual LHTF and encourages them to set up a fund. Statewide prohibition on discriminating against renters receiving rental assistance (Request directed to the State Legislature) Issue: Rental property owners can legally refuse to rent to people based solely on the source of income to pay their rent, leaving many households that receive various types of rental assistance unable to find housing. Position: The city supports a statewide prohibition on discrimination against renters receiving rental assistance. Rental rehab loan program for small to medium size developments in seven-county metropolitan area (Request directed at the State Legislature) Issue: Naturally occurring affordable housing (NOAH) is the largest resource of affordable housing in the metro area. These multi-family residential rental developments which typically have limited amenities are at risk of losing their affordability as investors purchase the properties, renovate, add amenities, and increase rents. As an incentive for current NOAH properties owners to retain the affordability of their properties, a multi-family rehab loan fund should be established to provide funding for rehab and capital investment in the development in exchange for establishing rent restrictions. Position: St. Louis Park strongly supports and encourages affordable housing. The city supports the establishment of a housing rehab loan program to facilitate the preservation of NOAH multi-family residential rental properties and encourage owners to retain the affordability of their developments. Study session meeting of January 10, 2022 (Item No. 1) Page 16 Title: 2022 legislative priorities Continue to provide revenue resources for affordable housing (Request directed to State Legislature) Issue: The need for affordable housing in the State of Minnesota continues to be a crisis, requiring a larger response than local jurisdictions can provide on their own. Increased state level funding is critical to enable local jurisdictions to enact programs to facilitate the creation and preservation of affordable housing, including subsidized and naturally occurring affordable housing. Position: The City supports financing sources and increased funding for local and regional programs to facilitate the creation and preservation of affordable housing. Establish a TOD (transit-oriented development) affordable housing fund (Request directed to State Leg/Hennepin Co) Issue: Efforts are being made to develop a corridor-wide housing strategy for the South West Light Rail Transit (SWLRT ) corridor for providing a full range of housing options specifically within a half- mile of the station areas. An absence of funds is the fundamental issue with traditional approaches to infill and redevelopment, and mixed-income housing production and preservation. Position: The city supports the creation of a TOD affordable housing fund and requests that Hennepin County and the State of Minnesota provide a financial resource to be used to support the preservation and creation of affordable housing along the SWLRT corridor. Study session meeting of January 10, 2022 (Item No. 1) Page 17 Title: 2022 legislative priorities Public Safety Issues Criminal background checks (Request directed to State Legislature) Issue: Every day in Minnesota guns are sold by unlicensed sellers without first conducting a criminal background check to ensure that the buyer is not a prohibited purchaser. Analysis: The federal Gun Control Act of 1968 stipulates that individuals "engaged in the business" of selling firearms must possess a Federal Firearms License (FFL). Holders of FFLs are required to conduct background checks and maintain a record of all their firearm sales. Certain gun sales and transfers between private individuals, however, are exempt from this requirement. Those who would fail a background check can access firearms through these sources. Unlike an FFL, the seller is not required to conduct a background check to determine whether the purchaser is prohibited from purchasing and possessing a gun. Federal, state, local and tribal laws should be enacted to close these loopholes. If all gun sales proceed through an FFL, a single, consistent system for conducting gun sales, including background checks, will be established. Current law to ensure gun purchasers go through FFLs are undermined by oversights in the law that allow individuals prohibited from owning firearms to obtain weapons at events such as gun shows without undergoing a background check. Position: The City supports preventing individuals who are not legally able to purchase a gun from doing so without background checks at gun shows, online, or in private transactions. This proposal would close the online, gun show, and individual sale loophole by requiring all sales to at least have a criminal background check at the point of sale at an FFL before a transaction is legally allowed to occur. Local control of emergency medical services (Request directed to State Legislature) Issue: Current laws regulating emergency medical services (EMS) in Minnesota allow ambulance providers the ability to provide EMS services in an exclusive operating area known as a Primary Service Area (PSA) for an indefinite amount of time with little or no oversight or transparency. Analysis: Ambulance services currently have no response time requirement from the Emergency Medical Services Regulatory Board (EMSRB) - the state's EMS regulatory agency which oversees and issues ambulance licenses. The EMSRB also has no oversight on ambulance billing rates, while ambulance services (both public and private) have the ability to use revenue recapture to receive unpaid bills from an individual's state tax returns. These are only a few of the many examples of the limited oversight of ambulance services in the state. The current system does not require ambulance services to disclose the number of staffed ambulances, where the ambulance is responding from, or any other important data points that would ensure a community is receiving quality ambulance services. While the current structure of Minnesota's EMS regulations is intended to create exclusive operating areas, there are numerous overlapping service areas across the state with no guidance on who has the authority to determine which provider is the primary ambulance service for those overlapped areas. Position: It is our belief that local units of government who are closest to the service delivery area are best positioned to determine who the licensed ambulance provider is, what level of Study session meeting of January 10, 2022 (Item No. 1) Page 18 Title: 2022 legislative priorities service is provided, and should have the authority to ensure there is transparency. The city propose s uncoupling professional standards overview by the EMSRB from the service area determination . This would allow the local unit of government to determine who provides service within their political boundary. This allows the professional standards to continue to be set by the EMSRB which is made up of industry professionals and stakeholders. Oppose expansion of legal fireworks (Request directed to State Legislature) Issue: There is a continued effort to expand the sale and use of a wider variety of fireworks Analysis: Under a proposed bill, the measure would prohibit cities f rom banning the sale of fireworks, but it allows cities to pass ordinances banning people from using fireworks. Exploding fireworks would be available for purchase from June 1 to July 7, the use is not restricted. In the city of St. Louis Park where both business and residential properties are in close proximity there is an unacceptable level of risk given that many buildings are wood frame combustible construction, non-sprinkled and high occupancy. There is an inherent danger in aerial fireworks which cause a number of injuries and pose a serious fire risk. Position: The city o ppose s the following legislation which expands fireworks in Minnesota • Tents (2018 - HF328/SF235) • Bricks and Mortar (2017- HF1395/SF1191 Gun violence protective orders (GVPOS) (Request directed to State Legislature) Position: The city s upports allowing law enforcement, qualified health care practitioners, family members, and intimate partners who believe an individual's dangerous behavior has a substantial likelihood to lead to violence to request an order from a civil court authorizing law enforcement to temporarily remove any guns in the individual's possession and to prohibit new gun purchases for the duration of the order. Continued health insurance coverage for disabled public safety officers (Request directed to State Legislature) Issue: MS299A.465 states that the employer is responsible for continued payment of their contribution for health insurance coverage for police officers, firefighters, and dependents, if applicab le, that were disabled in the line of duty. Although cities may request a reimbursement of the health insurance payments, only a fraction is reimbursed from the Department of Public Safety, resulting in increasing costs due to this functionally unfunded mandate. Position: The city has only been partially reimbursed for the cost of this mandate. Over the past 10 years, the city has paid over $289,000 in health contributions for disabled public safety officers, and only 23% of the city’s 2020 request was reimbursed. The city requests that this mandate be fully funded by the state. Investments for mandated law enforcement training (Request directed to State Legislature) Position: The city s upports continuing the POST Board training reimbursement allocation to local agencies, which began in 2018, into fiscal year 2022-2023 through the Peace Officer Study session meeting of January 10, 2022 (Item No. 1) Page 19 Title: 2022 legislative priorities Training Fund. This funding helps provide mandated training in the areas of recognizing and valuing diversity and cultural differences, conflict management and mediation, crisis intervention and resolving mental Illness crises. Police trainee/non-traditional pathway to policing program (Request directed to State Legislature) Issue: The candidate pool for police officers in Minnesota continues to shrink in number and diversity of candidates. There is a narrowing in the representation of a candidate’s diversity including but not limited to race and ethnicity; gender; age and related life experience; and academic and career development in other disciplines. During the 2017 legislative session $400,000 was appropriated for communities participating in this new program on a 50/50 cost split. The City of St. Louis Park and other cities have used this approach as a tool for diversifying their departments, often partnering together to fill vacancies. Since 2017, St. Louis Park has hired 5 officers (one each year) via this program and finds it to be successful. The need to create a wider and deeper candidate pool will continue to be a long-term challenge for all police departments in the state. Position: The city requests that this funding not only be maintained but increased in future biennia. Permit to Purchase Firearms/Permit to Carry (Request directed to State Legislature) Issue: Currently the Permits to Purchase Firearms statute (MN Stat. 624.7131; 624.7132) requires local law enforcement agencies to complete required background checks within 7 days and the Permit to Carry (MN Stat. 624.714) statute requires a county’s sheriff department to complete the required background checks within 30 days. Analysis: The St. Louis Park Police Department completes approximately 300 permit to purchase background checks per year. In 2020, the St. Louis Park Police Department anticipates having to complete approximately 500 permit to purchase backgrounds checks. Aligning the two statutes to require the background checks be done in 30 days would allow local law enforcement agencies more time to complete thorough background checks and also reduce the number of applicants who attempt to buy a firearm on impulse . Position: St. Louis Park supports aligning the Permit to Purchase Firearms statutes (MN Stat. 624.7131; 624. 7132) with the Permit to Carry (MN Stat. 624.714) statute in terms of the time required for conducting background checks (from 7 to 30 days). Statewide data collection on race and/or ethnicity for stopped motorists (Request directed to State Legislature) Issue: There is not a statewide method of collecting a motorist's race or ethnicity for traffic stops. Some police departments ask officers to report a person's race and/or ethnicity. This option results in officers making assumptions on the motorist's race and/or ethnicity and can lead to inaccurate data. The data would assist law enforcement agencies that are currently or considering collecting and analyzing race data on traffic stops. Having the data available would provide for more reliable race data by not requiring officers to ask the person’s race, which could create an adversarial situation or potentially must guess the subject's race. Study session meeting of January 10, 2022 (Item No. 1) Page 20 Title: 2022 legislative priorities Analysis: A statewide system would allow for agencies to submit, and most importantly review , accurate data to determine whether racial profiling is a problem in cities across the state. This information allows for greater police transparency and accountability. Position: The city supports a statewide system that accurately tracks information on traffic stops, including race and ethnicity, of stopped motorists. Study session meeting of January 10, 2022 (Item No. 1) Page 21 Title: 2022 legislative priorities Transportation Issues Infrastructure Investment and Jobs Act (IIJA) (Request directed to State Legislature)  Analysis: The passage of the Infrastructure Investment and Jobs Act (IIJA) represents a generationally significant investment in roads, jobs, and community connections. These funds, if fully approved as intended, could be used to quickly move forward several key projects that would connect regionally significant areas increasing business and community development. In addition, these resources have the potential to create workforce opportunities for residents in the form of skilled labor jobs. Significant resources are also available in the approved legislation to expand and advance the city's goal of reducing carbon emissions and improving the climate through resources like an electric vehicle charging network. Currently, the funding is contingent on the approval of a federal budget and the approval of the full regular transportation budget for the State of Minnesota.  Position: The City of St. Louis Park supports adoption of a transportation budget that allows for full access to additional resources approved in the IIJA Railway safety of hazardous materials and oil train operations (Request directed to State) Issue: There will be continued flow of hazardous material commodities including but not limited to crude oil and ethanol at current or increased levels in the future in St. Louis Park . Analysis: The demand for these commodities and the proximity of facilities in Minneapolis that use them may make St Louis Park an alternative for managing heavy traffic and staging within the system. The potential risk s across the system include the BNSF, CP and TCW lines. Track improvements that result from the SWLRT will allow for higher speeds and safer options for the rail companies to consider through St Louis Park. Position: St. Louis Park needs to be an active participant in legislative discussions around the accountability, safety and funding of accident prevention and responder training, and information sharing. The city supports funding for community awareness, mitigation, and resiliency efforts as well. Rail companies need to be required to share the needed information for response and mitigation. The city also supports reinstatement of fees on railroads and pipelines as outlined in 2018-HF3775/SF3527. Redesign and reconstruction of CSAH (county state aid highway) 25 (Request directed to Hennepin County) Issue: The city and county have developed a long -term vision to transform the CSAH 25 Corridor from the rural design through-route it is today to a multimodal urban boulevard with well- designed landscape architecture and place -making features. The goal is to transform this Hennepin County road into an amenity rich, pedestrian and bicycle friendly, transit-oriented Boulevard, between Trunk Highway 100 and France Avenue. A clear long-term vision for CSAH 25 will serve to guide both public and private investment in this corridor. Already, the SWLRT Beltline station, park & ride, and proposed Beltline Station Redevelopment project is beginning to transform the west end of this corridor. The Shoreham mixed -use project started the transformation at the east end, followed by Parkway 25 and the current Parkway Residences Study session meeting of January 10, 2022 (Item No. 1) Page 22 Title: 2022 legislative priorities project which continue the redevelopment pattern of the east end. The new concept for CSAH 25, which was developed in concert with Hennepin County, supports a change to a more urban place that provides safe, attractive access to the Beltline LRT station in St. Louis Park and the neighboring W. Lake Street LRT station in Minneapolis. Analysis: The transformation of CSAH 25 into an urban boulevard would include the following actions and considerations: • A commitment from Hennepin County, with involvement from Minneapolis, to changing the corridor. • CSAH 25 serves many important functions and is home to a surprising number of businesses, residents, and property owners. All stakeholders should be informed and involved in the design processes. • Integration of the planned improvements associated with SWLRT between Beltline Boulevard and Lynn Avenue and the W. Lake Street multi-modal transportation plan into the vision for the corridor. • Strong connections to existing and planned bicycle routes, filling the existing gap in access to the Cedar Lake Trail from the north. • Providing space for pedestrians in the corridor and safe connections across CSAH 25 to get to destinations. This includes amenities and landscaping to create a place where people want to walk and spend time. • Addressing storm water drainage and treatment. • Consideration of the east end triangle -shaped area, where Minnetonka Blvd, CSAH 25, France Avenue and W. Lake Street meet. This area presents both opportunities for gateway treatments for both Minneapolis and St Louis Park as well as operational challenges for pedestrians, bicyclists, and local businesses. • Consideration of a new name for the roadway that provides a positive identity while eliminating the currently existing address confusion. Just as CSAH 5 is also named Minnetonka Boulevard, CSAH 25 needs a street name around which an image and identity can be built. In the case of CSAH 25, there is added confusion because of its history of being originally part of MN Highway 7, a name that continues to be used by many. • Development of a funding and phasing plan. Transforming CSAH 25 will be a large project and will take time and significant resources to implement. New development in the corridor may be able to play a significant role in funding the transformation, but timing will be critical for that to happen. Position: We thank Hennepin County for their participation in the redesign process and request the County’s support and funding for the actual rehabilitation/reconstruction of CSAH 25. Southwest LRT   (Directed to State Legislature, Met Council & Hennepin County)  Analysis: The Southwest LRT Project has been a major undertaking in the City of St. Louis Park and promises to connect residents in a new and important  way to the regional economy of the west metro, twin cities and wider metropolitan area. Support for this project has meant residents have accommodated construction and development with the hope of future connections to opportunities. Continued support for the project means ensuring that this and other routes in the LRT system see the completion of stations, connections to Study session meeting of January 10, 2022 (Item No. 1) Page 23 Title: 2022 legislative priorities the transportation network, and development of major housing and business projects. Support from the state of Minnesota , Hennepin County and legislature are vital to completion of the project in a timely manner.  This project also supports the city's goal of offering multimodal transportation options to residents to reduce the use of carbon -based fuel. This project is vital to completion of the cities goal of achieving  net zero carbon emissions by 2040 Position: The City continues to strongly support the Southwest LRT Project and urges the State of Minnesota and Hennepin County to meet planned deadlines for the operation of this line.  Texas avenue/Minnetonka Blvd. intersection reconstruction (Request directed to Hennepin County) Issue: Texas Avenue between Lake Street and Wayzata Boulevard is one of the few continuous north-to-south roadway connections in the City of St. Louis Park. The city reconstructed the section of Texas Avenue from Lake Street to 400 feet south of Minnetonka Boulevard in 2017 and 2018. The new roadway includes bicycle, pedestrian and intersection improvements that have greatly increased the efficiency and safety in this segment of the corridor. The road project stopped short of the Minnetonka Boulevard intersection. In 2016 and 2018 a bikeway was installed along Texas Avenue north of Minnetonka Boulevard. There has been significant private investment in the Texa Tonka area. In 2020, the Texa Tonka shopping center reopened after a two-year renovation. In September 2021, construction started on a multi-family development at the north east corner of this intersection. To complete the upgrade of the Texas Avenue corridor, we would like to partner with Hennepin County on the reconstruction of the in tersection. The new intersection would include separate bicycle facilities, sidewalk improvements, better sightlines for drivers, signal replacement, and ADA upgrades. All things that are much needed at this location. Position: The city is requesting that Hennepin County partner with the City for the reconstruction of the Texas Avenue/Minnetonka Blvd intersection. Analysis: To extend the bicycle, pedestrian and roadway enhancements that were completed to the south and to the north of the Minnetonka Boulevard intersection the following items would need to be addressed. • Sidewalks: The sidewalks require updating to meet ADA requirements for pedestrian ramps, width, and clearance from obstructions. • Bike lanes: In 2018, the county enhanced the bike lanes on Minnetonka Boulevard. However, at the intersection, these lanes do not have adequate space. The same is true for the bikeway on Texas Avenue. Most bicycle related crashes occur at intersections, it is important to maintain the bikeway through the intersection to eliminate confusion for all users of the road. • Intersection modifications: the city has developed a layout for this intersection that will greatly improve the way it operates for all users. Eliminating sightlines issues, creating space f or bicycles and pedestrians. • Replace signal system: The new signal system and intersection geometrics should be updated to include flashing yellow arrows and turn lanes as needed to improve traffic Study session meeting of January 10, 2022 (Item No. 1) Page 24 Title: 2022 legislative priorities flow. The signal should be able to detect bicycles. Finally, the pedestrian push buttons will be replaced to meet ADA requirements. Transit financing (Request directed to State Legislature) Issue: The Twin Cities metropolitan area is served by a regional transit system that is expanding to include rail transit and dedicated busways. Any operating subsidies necessary to support this system should come from a regional or statewide funding source. The property taxpayers of individual cities and counties should not be required to fund the operation of specific transit lines or routes of service within this regional system. Analysis: MVST revenue projections have not been reliable, and the Legislature has repeatedly reduced general fund support for Metropolitan Transit. As a result, the regional transit providers continue to operate at a funding deficit. Shifting demographics in the metropolitan region will mean increased demand for transit in areas with and without current transit service. Position: The city supports stable and growing revenue sources to fund the operating budget for all regional transit providers at a level sufficient to meet the growing operational and capital transit needs of the region and to expand the system to areas that currently have little or no transit options. The city also supports an increase in the regional sales tax to fund the expansion of regular route service, continuing capital expenses, and expanded operational nee ds of the metropolitan transit system. If the increase is accompanied by sufficient local controls over the collection and expenditure of the new revenue and geographic balance is maintained in the expansion of service to allow cities to appropriately plan for growth in population and service needs along new and expanded transit service. The city opposes diversions of the uses of this tax for any other purposes. Transportation funding (Request directed to State Legislature) Issue: A comprehensive transportation system is a vital component in planning for and meeting the physical, social, and economic needs of our state and metropolitan region. Adequate and stable sources of funding are necessary to ensure the development and maintenance of a high quality, efficient and safe transportation system to meet these needs. Position: The city supports: • Stable and sufficient statewide transportation funding, for all modes of travel • Local tools to meet the long-term transportation system needs of the city • Funding to assist cities overburdened by cost participation responsibilities • State funding for state and county highway projects, including congestion and safety improvements • State financial assistance, as well as innovations in design and construction Analysis: Under current transportation financing structures, funding for the existing transportation system in the metropolitan region continues to be inadequate. Our transportation funding relies primarily on local property taxes, local fees, gas tax, and the motor vehicle sales tax (MVST). Automobiles are becoming more fuel efficient and MVST receipts Study session meeting of January 10, 2022 (Item No. 1) Page 25 Title: 2022 legislative priorities continue to lag projections, resulting in funding levels that continually fail to meet needs. Transportation funding and planning must be a high priority for state, regional and local policymakers so that the regional transportation system can sufficiently meet the needs of the state’s residents and businesses and its projected population growth. This includes the municipal state aid system. In addition, cities lack adequate tools and resources for the maintenance and improvement of local systems, with funding sources restricted to property taxes, local fees, and special assessments. Cost participation requirements for state and county roads can overburdened city budgets. It is imperative that alternative revenue generating authority be granted to municipalities and additional state resources be made available for this purpose to relieve the burden on the property tax system. Jan. 6, 2022 From Sen. Latz: Happy New Year to you all! The 2022 legislative session begins January 31, and while there are many issues I could address, I will keep my comments to public safety and the federal money. I have bee n an advocate for background checks and emergency protection orders throughout my career, and I look forward to an opportunity to advocate for these lifesaving policies. I have also advocated for additional training and support for public safety officials s o that our communities can thrive and be safe for all citizens. The divided legislature and continued intransigence of the GOP to even consider such safety measures as previously mentioned continues to be the largest obstacle to these policies, and without a change in the makeup of the leadership, I fail to see meaningful change occurring this year. Despite this, my attempts to force these conversations continued last year and my resolve to do so in the 2022 session is strong. The federal money is a boon to Minnesota and deserves to be carefully mete d out. This is one time money and as we all know, there are billions of worthwhile projects in our state. I support using some of this for infrastructure costs including roads, bridges, and transit e xpansion and repairs. We have little guidance from the federal government and continue to face a global pandemic. Thoughtful investing that be nefits our whole state is an important consideration for all legislators. Thank y ou all for allowing me a bit of space to touch on a few subjects of importance and I look forward to working with all of you in the near future to advance the priorities of our city. Regards, Ron Latz Page 26 Study session meeting of January 10, 2022 (Item No. 1) Title: 2022 legislative priorities Meeting: Study session Meeting date: January 10, 2022 Discussion item: 2 Executive summary Title: COVID-19 update Recommended action: None at this time Policy consideration: This is an update to ensure current practices related to COVID-19 continue to be in alignment with council policy. Summary: With the recent increase in COVID-19 cases due to the Omicron variant, staff wanted to provide an update on current practices related to COVID-19. The city manager, interim deputy city manager and fire chief will be present to answer any questions from the city council. The city continues to follow the lead of state officials, including Gov. Walz and the Minnesota Department of Health, and the Centers for Disease Control and Prevention (CDC) in its practices and guidelines for COVID-19. Face coverings Currently, staff are required to wear face coverings while in common staff and public areas of city facilities, and when they are riding in vehicles with two or more people. All city buildings have signs at entrances asking visitors to wear face coverings regardless of vaccination status. Free face coverings are available in all city facilities. Gov. Walz has stated he is not considering a statewide mask mandate. Vaccinations The St. Louis Park Fire Department provided a vaccination clinic in November for staff and families, with 108 vaccinations administered. A second staff vaccine clinic is set for Jan. 12. The fire department continues to work with long-term care facilities to provide opportunities for vaccinations. Meetings The city’s elected and appointed bodies may not meet virtually, per state statute, as there is no current declared state of emergency. However, boards and commissions with no official business to conduct have been given the latitude to cancel their January meetings. For meetings that continue in person, measures are being taken to allow outside presenters to attend virtually and to institute additional safety measures as needed. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: None Prepared and approved by: Cindy Walsh, interim deputy city manager/ops and rec director Reviewed by: Steve Koering, fire chief; Jacque Smith, communications and marketing manager Meeting: Study session Meeting date: January 10, 2022 Written report: 3 Executive summary Title: Novembe r 2021 monthly financial report Re commended action: No action is required. Policy consideration: Monthly financial reporting is part of our financial management policies. Summary: The monthly financial report provides an overview of general fund revenues and departmental expenditures comparing them to budget throughout the year. Financial or budget considerations: Expenditures should generally be at about 92% of the annual budget through November. General fund expenditures continue to be under budget at 88%. Revenues are difficult to measure in the same way due to the timing of when some are received, examples of which include property taxes and State aid payments. A summary of revenues and departmental expenditures compared to budget is included and a few variance comments are provided below. License and permit revenue is at 103% of budget through November. Larger commercial building permits issued in 2021 include the Luxe, Texa-Tonka Apartments and Nordic Ware. Intergovernmental revenue is at 105% because the police & fire State aid payment on October 1 was higher than the amount budgeted. Police & fire aid is based on several factors including population and census data and homeowner and auto insurance premium surcharges reported by insurance companies. The amount each jurisdiction will receive isn’t know until just a few weeks before the distribution date each year. Finance expenditures will be slightly over budget for the year due to an allocation change of a staff position to the utility funds. Rec center will also have a small expenditure overage at end of year due to higher temporary staffing costs that were more than offset by higher program revenues. The e ngineering expenditure variance is due to a lesser portion of staff time charged to other funds for capital projects in 2021 because of extended staff leaves. Several departments will be well under budget on expenditures in 2021 due in large part to staff turnover and position vacancies, including administration and race equity & inclusion. The December report will be the audit report in June 2022. Strategic priority consideration: Not applicable. Supporting documents: Summary of revenues and departmental expenditures – general fund Prepared by: Darla Monson, accountant Reviewed by: Melanie Schmitt, chief financial off icer Approved by: Kim Keller, city manager Summary of Revenues & Departmental Expenditures - General Fund As of November 30, 2021 20212021201920192020202020212021Balance YTD Budget Budget Audited Budget Audited Budget YTD Nov Remaining to Actual %General Fund Revenues: General Property Taxes26,880,004$ 26,952,306$ 28,393,728$ 28,635,694$ 29,601,811$ 15,170,398$ 14,431,413$ 51.25% Licenses and Permits4,103,424 5,264,659 4,660,811 5,294,310 4,621,829 4,782,552 (160,723) 103.48% Fines & Forfeits279,700 274,340 280,000 126,192 231,000 135,672 95,328 58.73% Intergovernmental1,760,900 1,761,763 1,760,082 2,061,267 1,661,549 1,751,025 (89,476) 105.39% Charges for Services2,187,319 2,160,345 2,273,824 1,600,806 2,013,834 1,989,840 23,994 98.81% Rents & Other Miscellaneous1,367,012 1,500,867 1,456,102 1,201,119 1,499,091 1,255,779 243,312 83.77% Transfers In1,999,877 2,012,706 2,038,338 2,049,976 2,055,017 1,862,682 192,335 90.64% Investment Earnings 180,000 523,124 210,000 486,468 200,000 81,576 118,424 40.79% Other Income31,300 57,274 621,280 3,442,900 593,300 515,773 77,528 86.93% Use of Fund Balance298,156 230,026 25,000 25,000 Total General Fund Revenues39,087,692$ 40,737,411$ 41,694,165$ 44,898,732$ 42,502,431$ 27,545,296$ 14,957,135$ 64.81%General Fund Expenditures: General Government: Administration1,837,620$ 1,673,619$ 1,868,599$ 1,472,421$ 1,617,882$ 1,230,321$ 387,561$ 76.05% Finance1,034,199 1,078,291 1,124,045 1,194,828 1,129,591 1,103,138 26,453 97.66% Assessing772,746 751,737 808,171 792,277 798,244 700,302 97,942 87.73% Human Resources805,620 756,767 823,209 796,088 837,736 674,946 162,790 80.57% Community Development1,502,521 1,515,672 1,571,894 1,536,657 1,576,323 1,327,835 248,488 84.24% Facilities Maintenance1,170,211 1,209,474 1,265,337 1,246,439 1,349,365 1,237,090 112,275 91.68% Information Resources1,674,937 1,474,604 1,709,255 1,596,487 1,683,216 1,505,934 177,282 89.47% Communications & Marketing805,674 786,448 828,004 710,334 970,934 748,611 222,323 77.10%Total General Government9,603,528$ 9,246,612$ 9,998,514$ 9,345,531$ 9,963,291$ 8,528,177$ 1,435,114$ 85.60% Public Safety: Police10,335,497$ 10,452,038$ 10,853,821$ 10,611,141$ 11,307,863$ 10,322,339$ 985,524$ 91.28% Fire Protection4,813,078 4,754,524 5,040,703 4,764,337 4,998,636 4,588,462 410,174 91.79% Building 2,555,335 2,430,473 2,696,585 2,321,664 2,571,968 2,261,450 310,518 87.93%Total Public Safety17,703,910$ 17,637,035$ 18,591,109$ 17,697,142$ 18,878,467$ 17,172,251$ 1,706,216$ 90.96% Operations: Public Works Administration290,753$ 214,436$ 273,318$ 216,899$ 249,256$ 217,643$ 31,613$ 87.32% Public Works Operations3,111,481 3,099,493 3,331,966 3,168,538 3,285,820 2,606,447 679,373 79.32% Vehicle Maintenance1,242,236 1,268,700 1,278,827 1,207,998 1,303,159 1,111,340 191,819 85.28% Engineering570,377 609,567 551,285 531,801 523,547 578,463 (54,916) 110.49%Total Operations5,214,847$ 5,192,196$ 5,435,396$ 5,125,236$ 5,361,782$ 4,513,892$ 847,890$ 84.19% Parks and Recreation: Organized Recreation1,579,569 1,498,462 1,637,002 1,369,309 1,639,358 1,415,992 223,366 86.37% Recreation Center1,949,657 2,041,386 2,061,394 1,864,459 2,082,697 1,998,650 84,047 95.96% Park Maintenance1,833,297 1,820,455 1,906,363 1,802,534 1,916,643 1,684,900 231,743 87.91% Westwood Nature Center643,750 612,266 748,683 606,378 736,515 594,542 141,973 80.72% Natural Resources484,784 429,409 504,143 433,362 496,497 371,564 124,933 74.84%Total Parks and Recreation6,491,057$ 6,401,977$ 6,857,585$ 6,076,042$ 6,871,710$ 6,065,648$ 806,062$ 88.27% Other Depts and Non-Departmental: Racial Equity and Inclusion -$4,592$ 314,077$ 272,994$ 341,293$ 174,709$ 166,584$ 51.19% Sustainability26,283 497,484 244,655 432,043 265,406 166,637 61.43% Transfers Out300,000 4,878,845 4,450,000 91.21% Contingency and Other74,350 121,245 144,860 225,000 Total Other Depts and Non-Departmental74,350$ 452,119$ 811,561$ 662,509$ 5,877,181$ 4,890,115$ 333,221$ 83.21%Total General Fund Expenditures39,087,692$ 38,929,940$ 41,694,165$ 38,906,460$ 46,952,431$ 41,170,084$ 5,128,502$ 87.68%Page 2Study session meeting of January 10, 2022 (Item No. 3) Title: November 2021 monthly financial report Meeting: Study session Meeting date: January 10, 2022 Written report: 4 Executive summary Title: Public art update Re commended action: None at this time. This report is to update the council on the city’s various public art activities. Policy consideration: Does the city council continue to support public art initiatives? Summary: St. Louis Park is dedicated to promoting and integrating arts, culture, and community aesthetics in all city initiatives. Through the years numerous public art programs, activities and works have been conducted or created and several are ongoing. The following discussion provides an update on the city’s public art initiatives during 2021. Financial or budget considerations: None at this time. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion Prepared by: Julie Grove, community and economic development analyst Sean Walther, planning manager Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director Approve d by: Kim Keller, city manager Page 2 Study session meeting of January 10, 2022 (Item No. 4) Title: Public art update Discussion Public Art Map – link The public art map on the city’s website provides locations of public art in the city as well as descriptions of the installations and information about the artists. This map is updated continually to share the community’s most current public artworks. Creative Economic Study Creative Minnesota recently conducted studies in Minnesota cities to report on how nonprofit arts and culture organizations, their audiences, arts, and creative workers impact the state’s quality of life and local economies . St. Louis Park was one of seven local studies conducted in 2021. Typically, the local studies show substantial economic impact from the nonprofit arts and culture sector. Creative Minnesota will share the study and present their findings at an upcoming city co uncil meeting. Friends of the Arts The city has been working with Friends of the Arts (FOTA) in a partnership since 2006. Since that time FOTA has continually expanded its support and services, broadened community programming and events, expanded public art investments in the city. In 2022, the city increased its funding to FOTA from $40,000 to $70,000 which will allow FOTA to expand creative projects that connect neighbors and communities, express local identity, and culture, enliven public spaces, promote personal and environmental health, wellbeing and sustainability, and advance equity and inclusion. A new executive director is currently being hired to replace Jamie Marshall who accepted another position. Strategic Roadmap - Link The St. Louis Park Friends of the Arts (FOTA) and the city worked with a consultant to create the “Strategic Roadmap for Advancing Arts and Culture”. The city and FOTA worked with a steering committee , focus groups and community members to create the roadmap and a vision for the future. The roadmap serves as a blueprint, outlining paths along which St. Louis Park can strengthen the cultural life of the city as an important element of achieving Vision 3.0 to be a place for all people, the city’s livable community principles and its strategic priorities. Recent art installations (these can be viewed on the public art map) Links Historic Walker Lake , Texas Ave and 36th St •Sidewalk poetry: In 2020, the city initiated a sidewalk poetry program as an opportunity to place poetry into the new sidewalks in the Historic Walke r Lake area. Over 52 poems were submitted by residents and St. Louis Park students. The nine poems selected were sandblasted into sidewalk sections along Walker Street and Lake Street. In 2021, new sidewalk poetry was installed near bus stops on Texas Avenue South between Minnetonka Boulevard and 36th Street, and near the bus stops on 36th Street West from Aquila Avenue South to Texas Avenue South. For this round, nearly 70 people that live, work, study or have other meaningful connections to St. Louis Park submitted 101 original poems. Poems were reviewed and selected by a five-person community panel. The 13 poems selected, two of which are in Spanish, were sandblasted into city sidewalks by a locally owned and operated company. A storymap detailing the locations of the poems was created for each location. Page 3 Study session meeting of January 10, 2022 (Item No. 4) Title: Public art update •Bridgewater Bank: Moments of Tangency is the public art piece recently installed in the front plaza at Bridgewater Corporate Center. Artist Craig Snyder and architect Homan Wong sought to create a bold and dynamic sculpture that reflects the sense of connection and relationship that is important to both banking and the St. Louis Park community. •The Elmwood Apartments: Prairie Réseau - sculptures in Mesabi Black Granite. Installed in late summer 2021, these granite sculptures incorporate sandblasted illustrations depicting the Réseau (network) of the local native flo ra and fauna. The artist Craig David provided natural designs of wild life , plants, and waterways in the hope that people will be “re -awakened” to world of nature, by the sculptures. Art in -p rogress Development projects •PLACE: The artist selection process for three art pieces at Via Sol is in process. The locations for the art pieces include a 3D piece in the front of the building along the frontage road, a mural along the southside of the building, and a 3D sculpture within the urban forest. The art pieces are anticipated to be installed by fall of 2022. •Parkway Residences: Forecast Public Art has been selected to lead the art selection process for Parkway Residences. The art will be installed within the publicly accessible trail connection on the north side of Parkway Place. Art in public facilities •Westwood Hills Nature Center o Emily Lavalier's density collage depicts the Westwood Hills Nature Center using recycled books, magazines, WHNC brochures, flyers, and photographs, as well as new photos to capture life in St. Louis Park. o Christopher Tully's artwork uses a combination of two-dimensional painting and three- dimensional relief style sculpting to depict flora and fauna of Westwood Hills Nature Center's woodlands. o Chipmunk and Chickadee. Artist Nick Legeros created a pair of bronze sculptures - a chipmunk mounted on a 3,000-pound slab of Chilton stone and a chickadee companion perched on a #2 pencil made of cedar. These sculptures were made possible by a donation from the St. Louis Park and St. Louis Park Sunrise Rotary Clubs, and through a partnership with St. Louis Park Friends of the Arts. •Louisiana Bridge over Minnehaha Creek: Art for the bridge is being developed by Randy Walker, Gita Ghei, Lori Greene. The artists are currently working on their art pieces which will be installed on the bridge over the creek and along the walkway under the bridge. Installation is anticipated to be completed by late spring 2022. •Dakota Trail Bridge art: Joe DeCamillis has been selected to develop an art panel that will be placed in a column under the bridge at Dakota Park. Joe is currently working with students at Peter Hobart Elementary school on some aspects of the design. The art pieces will be displayed in spring 2022. Page 4 Study session meeting of January 10, 2022 (Item No. 4) Title: Public art update •PLACES (public art and community engagement Southwest): Created in 2015 by Hennepin County SWLRT to facilitate public art SWLRT station areas. o The PLACES committee continues to facilitate public art installations along the SWLRT corridor. o In the past year, PLACES hired an Artist Fellow to develop a temporary pop-up art installation to be used at station areas along the SWLRT line to raise awareness, generate interest and enthusiasm along the transit corridor, and create opportunities to build identity and a sense of belonging among community members. The Fellow is currently completing the temporary art piece and anticipates it will be completed by early spring 2022. On -going art programs Arts and Culture Grant Program The Arts & Culture Grant Program is a collaborative program between the City of St. Louis Park, the St. Louis Park Youth Development Fund and St. Louis Park Friends of the Arts. The program makes grant dollars available every year for music, visual arts, theater, film, multimedia, dance , and other art projects. It provides funding for new arts programs that support community pride, connect artists and the community, and engage people in creative learning. Four grants were awarded for 2022 for the following: Community Storytelling Forum, Minn esoThai cultural celebration, Winter Solstice Lantern Walk at Westwood Hills Nature Center, and a Fall Sound Garden at Texa-Tonka Park. Utility wraps Utility box wraps have been used in cities nationwide to add artistic flare to neighborhoods and communities. St. Louis Park’s utility box wrap program helps create a sense of community connection and pride, while providing a way to add more artistic beauty to the city. This past year two new utility boxes were wrapped. One is located at the corner of Texas Ave and 36th Street behind the Shoppes at Knollwood. The second is located across from Hamilton House at the corner of Cedar Lake Road and Nevada Ave. Hamilton House utility box Knollwood utility box Page 5 Study session meeting of January 10, 2022 (Item No. 4) Title: Public art update Paint the Drain pilot program - Link The paint the drain pilot project installed drain artwork across the street from Aquilla Elementary School. This art project was designed to raise awareness about the importance of keeping our streets and waterways clean. In the Spring and summer of 2022, the city will be partnering with Friends of the Art, local artists, neighborhood groups and others to install several storm drain art pieces around the City. A video was produced about the installation of the first drain art murals, it can be watched at the link above. City hall third floor art The third -floor city hall lobby public art display is used to showcase and elevate local art and artists’ talent. The art display rotates on a four- six -month basis, giving St. Louis Park artists the opportunity to showcase their work throughout the year. The goal is to make the art display more inclusive by forming new relationships and partnerships. The hope is it will increase representation of artists from different backgrounds and disciplines. Next steps: In the spring, Creative MN will present the creative economic study at a future council meeting. City staff and FOTA will continue working to implement the steps outlined in the strategic roadmap for future public art. Meeting: Study session Meeting date: January 10, 2022 Written report: 5 Executive summary Title: Application for tax increment financing assistance – 9920 Wayzata Boulevard Recommended action: This staff report outlines Bigos Management’s/SLP Park Ventures’ application for tax increment financing (TIF) in connection with its proposed re development at 9920 Wayzata Boulevard . Policy consideration: •Is the EDA willing to consider entering into a redevelopment contract to reimburse the Developer for up to $6.3 million in qualified costs through tax increment financing generated by the project to enable it to achieve financial feasibility? •Is the EDA willing t o sell approximately 18,440 square feet of vacated right-of-way to the Developer for $110,000? Summary: Golden Valley -based Bigos Management intends to acquire land at the northwest quadrant of I-394 and US 169. This includes two vacant parcels located at 9808 and 9920 Wayzata Boulevard, as well as adjacent right-of-way owned by the EDA. Bigos’ plans for the 3.1- acre redevelopment site call for the removal of three billboards and construction of a six -story, 233-unit multifamily housing development tentatively named 9920 Wayzata Boulevard . Bigos Management would then own and manage the new apartment building for the long term. The proposed $68.7 million development includes a mix of alcove, one -, two-, and three-bedroom units. The proposed apartment building would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI) for 25 years , exceeding the city's Inclusionary Housing Policy requirements. Financial or budget considerations: The Developer indicated that 9920 Wayzata Boulevard ’s financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract private financing. To offset this gap, the Developer applied for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examin ed the project’s pro forma to determine what, if any, level of financial assistance was necessary to enable it to become viable . After review, Ehlers determined that up to $6.3 million in TIF assistance is warranted to enable the development to achieve financial feasibility . Such assistance would be provided via a pay -as-you-go TIF Note. Given current estimates of market value, it is estimated that the project’s TIF Note would be paid off in approximately 14.5 years (on a net-present value basis). Such assistance would derive from the establishment of a new housing TIF district. The proposed development meets the requirements for the provision of tax increment financing as specified under the EDA ’s amended and restated TIF Policy . Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Jennifer Monson, redevelopment admin., Keith Dahl, municipal advisor, Ehlers Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Page 2 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard Discussion Site information: The subject redevelopment site is approximately 3.1 acres and consists of two parcels , 9808 and 9920 Wayzata Boulevard , owned by SLP Ventures, along with adjacent rights- of-way owned by the EDA. It is located in the upper northwest quadrant of the city within the Shelard Park Neighborhood. It is bounded by the Westmarke Condominiums to the west, the MetroPoint Office Park to the north, US Highway 169 to the east, and I-394 to the south. The subject site is former lakebed and, as a result, has unstable structural soils. Any building beyond a single story will likely require extensive foundation work. A developer looking to construct multi-story buildings on the site will likely incur the following costs: soil excavation, export, and import, as well as some deep system to structurally support the building’s foundation. Depending on the project’s density, these extraordinary costs would likely prevent most multi-story developments from achieving financial feasibility. The subject site was the former location of Santorini’s restaurant (since removed) and is largely vacant with the exception of three billboards. Given its proximity to the highway interchange, it is a highly visible site . The property has been subject to occasional dumping over the years which has created a public nuisance. According to the former St. Louis Park Plan by Neighborhood Input Report, “the most critical neighborhood improvement identified [within the Northwest Neighborhood Planning Area] was decreasing public nuisances, which was primarily related to concerns about [property] maintenance.” Facilitating rede velopment of the subject site as proposed is consistent with this objective. Proposed redevelopment site for 9920 Wayz ata Boulevard Page 3 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard Site area (acres): 3.11 acres Current use: Vacant land Surrounding land uses: North: parking ramp, office park East: right -of-way South: right-of-way West: mixed-use commercial and multi- family residential Current 2040 land use guidance Current & proposed zoning RH - high density residential PUD planned unit development ROW – right of way Background: In March 2018, council approved Bill Stoddard of SLP Venture’s applications for a plat and planned unit development (PUD) to allow redevelopment at 9808 and 9920 Wayzata Boulevard. The approvals allowed a 149-unit, six -story apartment building and 100-key, six -story hotel on the subject site. The EDA also approved a purchase and redevelopment contract with the developer, which among other things, provided for the provision of tax increment financing to enable the proposed projects to achieve financial feasibility. Later, in October 2018, the EDA approved a revised purchase and redevelopment contract with SLP Ventures which was subsequently amended on Feb. 17, 2020. Shortly thereafter, the COVID-19 pandemic severely impacted the hospitality industry in general and the hotel market in particular. The adverse economic conditions facing hotels are projected to continue for the foreseeable future. As a result, the property owner and original developer, Bill Stoddard of SLP Ventures pursued a joint, multifamily housing project with Mortenson Development. Plans for that project were subsequently withdrawn as the EDA and Mortenson were unable to reach agreement on the amount of tax increment required for the development to achieve financial feasibility . Mr. Stoddard then join ed with Bigos Management and prepare d a revised concept for the subject site . Present considerations: Bigos Management has an option agreement to acquire the vacant redevelopment site from Mr. Stoddard (“development team” and “Developer”). Bigos and Mr. Stoddard request tax increment financing to offset the extraordinary costs associated with constructing 9920 Wayzata Boulevard. Bigos and Stoddard also request to purchase approximately 18,440 square feet of vacated right-of-way adjoining the southwest and northeast portions of the subject site from the EDA . The development team plans to remove the three billboards and remaining debris on the subject site and construct a six -story, 371,000 square foot, multi-family housing development. The mixed income apartment building would include a total of 233 housing units; of which 186 units (80 percent) would be leasable at market rate and 47 units (20 percent) would be affordable to households at 50 percent of area median income (AMI). The proposed development would also include numerous sustainable elements, including a roof top renewable energy solar array providing 200,000 kWh . On Oc. 18, 2021, city council approved a comprehensive plan amendment to reguide the site from office to high density residential, a preliminary and final plat, and a preliminary and final planned unit development zoning district to allow the proposed mixed inco me, multi-family residential development. As approved, the development exceeds the city’s inclusionary housing policy as amended in October 2021, and exceeds the city’s green building policy as amended in July 2020, including a rooftop solar array. Page 4 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard Re ndering of proposed 9920 Wayzata Boulevard. 9920 Wayzata Boulevard is a single -phase residential development with one building. The apartment building includes a combination of alcove , one-, two-, and three-bedroom units. Since receiving their planning approvals, the development team has shifted an affordable alcove to a three -bedroom affordable unit to help the city provide additional family -sized affordable units. They have also shifted one alcove and two 1-bedroom units to 2-bedroom units. The unit mix would be as follows: Unit Type Market Rate 50% AMI units Percent 50% AMI Total Units Percent of total units Alcove 40 10 21.3% 50 21.4% 1-bedroom 64 16 34.0% 80 34.3% 1-bedroom + den 12 3 6.4% 15 6.4% 2-bedroom 65 16 34.0% 81 34.8% 3-bedroom 5 2 4.3% 7 3.0% Total 186 47 100.0% 233 100.0% Pending approval of its financing, the development team plans to commence construction in spring 2022 and complete construction by year-end 2023. Bigos Management would own and manage the residential development for the long term. Inclusionary housing: The proposed apartment development would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI), and would adhere to the city’s inclusionary housing policy as amended in October 2021. Per the Metropolitan Council, the 50 percent AMI for a family of four is $52,450. The inclusionary housing policy as amended in October 2021, requires at least 10 percent of the units be affordable at 50 percent area median income, and seven three -bedroom units, with at least one of those units affordable. With 20 percent of the housing units affordable to households at 50 percent of AMI, the proposed development exceeds the city’s inclusionary housing requirements. The affordable units would be spread proportionally through the mix of unit types as required. Page 5 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard 9920 Wayzata Boulevard would be the first new residential development in the Shelard Park neighborhood required to follow the city’s inclusionary housing policy. There are limited redevelopment opportunities in the Shelard Park area, and this development would provide 47 affordable rental units for 25 years. Climate Action Plan: The development will adhere to the city’s Green Building Policy as adopted in July 2020 and intends to follow Enterprise Green Communities for its design tool. The development will also include the following sustainable features: •Native plantings that are low irrigation and low maintenance •PC solar array comprising the majority of the level 6 roof, generating approximately 200,000 kWh of Year 1 energy offset •Diversion and recycling of construction and demolition waste •Reduction of potable water consumption utilizing low flow fixtures •Construction Indoor Air Quality Management Plan (IAQ) •Controllable lighting and thermal air systems •Daylighting and views of spaces •High efficiency appliances •Best management practices of stormwater on site A dditionally, the development will provide 14 level 1 and 12 level 2 charging stations for residents, one level 2 charging station for guests, and conduit serving an additional 33 parking spaces. Nearly 20 percent of the parking stalls will have access or future access to EV charging. Residents who work in the adjacent MetroPoint Office Park and near General Mills’ corporate headquarters could reduce their need for single -occupancy vehicles resulting in reduced vehicle miles traveled and emissions. The development will include 280 bicycle parking spaces in wall-mounted racks in the two structured parking levels, a dedicated bike storage room in the underground parking level, and exterior bike racks near the main pedestrian entrance to the building. This amount of bicycle parking exceeds city zoning requirements. G iven the above, the proposed development exceeds the city’s Green Building Policy requirements as amended July 2020. Racial equity and inclusion: As previously noted, the proposed development will provide a variety of housing types at market rate and at 50% of AMI to create more housing options for residents within the project area for 25 years. Constructing mixed income housing near employment centers provides residents the opportunity to utilize quick and convenient non-motorized transportation to work. Additionally, the proposed development has access to Metro Transit’s 645 bus route and is a bike ride away from a Metro Transit Park & Ride with more frequent bus service to downtown Minneapolis . Furthermore, it is adjacent to the city’s bikeway network. Page 6 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard The Development Team: Bigos Management is a Golden Valley -based real estate development and property management company that has been in business since 1981. Bigos Management has been recognized by the Star Tribune as a top place to work for the past seven years. They own and manage more than 9,500 units in the Twin Cities, of which, 45% are naturally affordable housing below 60% area median income. Bigos Management recently purchased Central Park West in St. Louis Park’s West End in November 2020 and is familiar with the city’s inclusionary housing policy requirements. Bill Stoddard is CEO of Stoddard Companies and SLP Ventures, a developer, owner and manager of luxury apartments and senior living. One of his recent developments is “Hello Apartments” located in Golden Valley on Highway 55 near Highway 169. Application for Tax Increment Financing assistance: As noted above, the subject redevelopment site has three billboards and existing debris requiring removal. The site also has poor structural soils requiring excavation, export, and import, as well as deep piers to support the building’s foundation. These extraordinary redevelopment costs, along with the mixed- income nature of the development and proposed sustainable features create a gap in the project’s financial proforma. To mitigate the project’s estimated financial gap , the Developme nt Team applied for $7.5 million in tax increment financing (TIF) assistance . Tax increment financing uses most of the increased future property taxes generated by a new development to finance certain qualified development costs incurred by that project for a limited period to enable it to achieve financial feasibility . The EDA’s financial advisor, Ehlers, examined the financial information provided within the Development Team’s TIF application based on general industry standards for land, construction, and project costs; rents; operating expenses; fees; underwriting and financing criteria; and project cash flow. Based on this analysis, Ehlers co nsulted with staff to determine the extent to which the proposed project exhibits a financial gap justifying the provision of TIF assistance. TIF Eligible Expenses & Affordable Impact Amount ($) Site clearance, soil correction and stabilization $1,007,249 Aggregate piers $791,000 Green building premium $1,425,000 Solar panels $270,000 Affordable impact $4,442,691 TOTAL Extraordinary Costs $7,935,940 Construction/Extraordinary Costs: The estimated total development cost (TDC) to construct the proposed 9920 Wayzata Boulevard is over $68.7 million or $294,691 per unit. The extraordinary costs including the cost of billboard demolition , asphalt and debris removal, poor structural soil removal, soil import, and foundation piers significantly contribute to the project’s financial gap. *Affordability impact: The affordability impact is calculated by comparing the market rate rents to the affordable rents for the term in which the developer is not receiving any tax increment. Rents for affordable housing units are approximately 44% less than the rents charged for market rate units. The difference between these rents, times the number of affordable units each month for 25 years , significantly reduce the development’s rental income. In this case, it is estimated that the affordability impact over 10.5 years will amount to $4,442,691 or $94,525 per affordable unit. Page 7 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard Due to decreased rental income from 20% of the units over 25 years , there is insufficient cash flow to provide a market rate of return, pay ongoing operating expenses, and service the debt outstanding on the property. This leaves a gap in the funding for the project and makes this housing development financially infeasible without tax increment finance assistance. Under MN TIF statutes, costs to construct affordable housing are an eligible expense that may be reimbursed through tax increment originating from a housing TIF District. Proposed level of assistance: The recommended level of assistance for the project was determined by analyzing the project’s extraordinary site development costs, construction costs and affordability impact over 25 years as well as forecasting the project’s return on investment. Ehlers concluded that tax increment assistance in the amount of $6.3 million is necessary to enable the proposed development to become financially feasible . This level of assistance would offset enough of the extraordinary site costs and affordability impact described above to allow the proposed project to achieve a rate of return sufficient to attract private financing thereby enabling it to proceed. The Developer has indicated the recommended level of assistance is acceptable. Consistent with previous EDA redevelopment agreements, a "lookback" provision would be incorporated into the redevelopment agreement with the development team. The development team would be required to submit verified final project costs and reports detailing the actual financial performance of the project. The lookback provision establishes a benchmark return based on industry standards for similar projects. 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 w ould share economically in the success of the project by reducing the amount of TIF assistance provided. Land Acquisition: Bigos plans to acquire the subject redevelopment site from Mr. Stoddard for $5.825 million or $25,000 per unit. This land sale price is considered within market compared to other multi-family land sales within the city. Bigos also requests to acquire approximately 18,440 square feet of vacated right-of-way from the EDA for $110,00 or $6 per square foot. This property has no other public use and is not large enough to become a stand-alone developable parcel. TIF Note: The 9920 Wayzata Boulevard development will take approximately 17 months to construct. It is anticipated that the first increment could be paid in 2024. Given current estimates of market value, it is estimated that a $6.3 million TIF Note would be paid off in approximately 14.5 years (on a net present value basis). It is projected that the Note would terminate with the final payment on August 1, 2038. Payments on the Note would be made on a "pay -as-you-go" basis, which means that as the development team pays the project’s property taxes, a portion of those taxes (the “tax increment”) are paid back biannually to the development team under the specified terms of the TIF Note. Thus, payments to the development team would only be made as the project’s property taxes are received. This is the preferred financing method under the city's TIF Policy. As with most EDA redevelopment contracts, the development team would be required to execute a Minimum Assessment Agreement for the value utilized for projecting the amount of TIF assistance available. Page 8 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard TIF district: It is proposed that the tax increment provided to 9920 Wayzata Boulevard derive from a newly establish ed housing TIF district. With 20 percent of the units affordable to households at 50 percent of area median income, the 9920 Wayzata Boulevard development would meet the statutory requirements for establishment of a housing TIF district. Once the tax incre ment obligation to the development team is paid off, the council will have the option to decertify the district or to keep it open for TIF pooling purposes. Such a TIF district would allow for up to 26 years of tax increment by state statute. Property value and taxes: The current combined assessed market value of the two parcels constituting the subject redevelopment site is under $3.3 million. This is the p roposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $58.3 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the development team until it is 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 amended in December 2021, as well as how and whether the proposed development meets the majority of those standards. TIF Policy Compliance Table* Factor Requirement/Guideline Proposed Project Met? Applicable TIF District Redevelopment/Renewal & Renovation/ Housing/Economic Development Housing district Yes Statutory TIF district requirements Housing District 40% of the units affordable at 60% AMI 20% of the units affordable at 50% AMI: or 10% of the units affordable at 30% AMI 20% of the units will be affordable at 50% AMI Yes Use of TIF Proposed costs are statutorily eligible for reimbursement through proposed TIF district. Proposed use of tax increment financing to mitigate the cost of constructing affordable housing is statutorily eligible through housing TIF districts. Yes TIF Objectives TIF Policy requires projects to meet over half of applicable objectives for use of TIF. Proposed project meets nearly all the EDA’s objectives for the use of TIF Yes Minimum Qualifications Applicable Strategic Priorities Proposed project provides broad range of housing and neighborhood-oriented development. Yes Meets Green Building Policy requirements . Development will exceed the July 2020 Green Bldg Policy requirements. Yes Meets Inclusionary Housing Policy requirements (if applicable). Development will exceed the Oct. 2021 Inclusionary Housing Policy requirements . Yes Page 9 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard Meets Diversity, Equity, and Inclusion Policy. The Developer’s construction practices, and ongoing management will meet the intent of the city’s diversity, equity, and inclusion policy.* Yes Consistent with city's Comprehensive Plan and Zoning Ordinance, or approvals pending . Proposed project is consistent with city's Comprehensive Plan and Zoning Ordinance. 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 provided necessary documentation to evaluate TIF need and proposed project . Developer provided necessa ry documentation to evaluate proposed project and TIF request. Yes Determined not financially feasible "but - for" the use of tax increment financing . Ehlers determined the proposed project is not financially feasible "but -for" the use of tax increment financing Yes Developer has experience and capability to construct proposed project . Developer has extensive experience and capability to construct the proposed project. Yes Developer plans to retain ownership of project long enough to stabilize occupancy (if applicable). Developer plans to retain ownership of the project through stabilization, and Bigos Management will remain the property manager. Yes Meets all Minimum Qualifications. The development meets all Minimum Qualifications Yes Desired Qualifications Incorporates Livable Communities, New Urbanism, TOD, Sustainable Design principles (i.e., mixed-use, urban design, human scale, walkable, public spaces, and sustainable design features). 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). 47 units will have rents affordable to households at 50% AMI Yes Provides units for larger families (i.e., 3- & 4-bedroom units (if applicable)). Seven 3-bedroom units are 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 surrounding neighborhood by providing mixed income housing , and long - term affordable housing in Shelard Park area near large employment centers. Yes Page 10 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard Proposed development will likely stimulate further investment in surrounding area/neighborhood. This is the last developable parcel in the immediate area, so it is unlikely to spur further development, however additional housing units near large office centers may spur additional investment in existing buildings. Yes Provides new, or retained, employment (if applicable). Will provide 6 new employment opportunities for management and maintenance workers. Yes The increase in market value of the property after redevelopment is more than 8 times the original market value. The estimated market value of the site after redevelopment is 17.8 times the original market value. Yes Will have a positive community impact . Proposed project will have a significant positive impact on the area. It will remove three billboards and blight from a highly visible vacant lot. Yes Will not place extraordinary demands on city services . City departments determined proposed project will not place extraordinary demands on city services. Yes Will not likely generate significant environmental problems and/or cleans - up existing contamination. The development will not generate any environmental problems and will clean up existing contamination and poor soils. 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 nearly $11 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 TIF assistance is within range of similar development that received TIF assistance. 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 Meets the majority of Desired Qualifications. The development meets all Desired Qualifications Yes *Planning applications were submitted and approved prior to the adoption of the pending diversity equity and inclusion policy . Therefore , the development team is not required to adhere to this policy. However, staff will work with the development team to meet the intent of the policy during construction and ongoing management. G iven that the proposed development meets statutory requirements, as well as all objectives, qualifications and guidelines as specified in the TIF Policy, staff finds the Bigos /Stoddard Team’s request for TIF assistance meets the EDA’s requirements for the provision of tax increment financing. Page 11 Study session meeting of January 10, 2022 (Item No. 5) Title: Application for tax increment financing assistance – 9920 W ayzata Boulevard Summary and recommendation: Based upon its analysis of the development team’s proforma for 9920 Wayzata Boulevard , Ehlers determined that the proposed development 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 development team up to $6.3 million in pay -as-you-go tax incre ment generated by the project over a 14.5-year term. Such assistance would derive from a newly established housing TIF district upon completion of the proposed project and stabilization. Providing TIF assistance to the proposed development achieves the following: •remove s three prominent billboards . •redevelops blighted /vacant property that has been underutilized and subject to dumping for numerous years. •provides the city with a quality, multi-family housing development consistent with many goals of the 2040 Comprehensive Plan, city ’s strategic priorities and council preferences. •further diversifies the city’s housing stock with an additional 186 market rate apartments and an additional 47 housing units for moderate income households for 25 years . •includes numerous sustainable features (including a solar array) exceeding the city’s Green Building Policy requirements. •helps support office and retail businesses in the area. •brings the subject properties to significantly higher market value than they are currently. •creates a potential new revenue stream to assist future affordable housing developments and programs. The Bigos /Stoddard Team’s proposed 9920 Wayzata Boulevard development meets the city’s requirements for the provision of Tax Increment Financing as specified in the city’s TIF Policy. As noted above, the project meets nearly all Objectives as well as all Minimum and Desired Qualifications for providing TIF assistance . Additionally, it has been demonstrated that the proposed development is not financially feasible but-for the provision of tax increment financing. Lastly, the proposed amount of TIF assistance is comparable to other housing developments the EDA has previously assisted. Given these findings, staff supports reimbursing the development team for eligible costs up to $6.3 million in pay -as-you-go tax increment generated by the proposed mixed income development to enable it to become financially feasible . Next steps: As with all TIF applications, it is at the EDA’s discretion as to whether to provide the proposed 9920 Wayzata Boulevard development with tax increment assistance at the recommended level. Provided the EDA supports this , the EDA will be asked to begin the process of establishing a new housing TIF district; the vehicle through which the financial assistance would be provided. The first step of which is to set a public hearing date. It is proposed the date for decertifying the Wayzata Boulevard TIF District and holding the public hearing be tentatively scheduled for Spring of 2022. The next steps in the approval process would be as follows: 1.Negotiation of business terms for the provision of tax increment assistance. 2.Review of proposed business terms of purchase and redevelopment contract. 3.Planning commission’s review of conformance with the Comprehensive Plan. 4.Decertif ication of the Wayzata Boulevard TIF District (a redevelopment district). 5.Hold public hearing on the establishment of the proposed 9920 Wayzata TIF District (a housing TIF district). 6.Approval of TIF district plan and purchase & redevelopment contract – EDA and city council.