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HomeMy WebLinkAbout2021/11/22 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA NOV. 22, 2021 The St. Louis Park City Council is meeting in person in accordance with the most recent COVID- 19 guidelines. Members of the public may attend the Nov. 22, 2021 study session, in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. The meeting may also be viewed live via webstream at bit.ly/watchslpcouncil and on local cable (Comcast SD channel 17/HD channel 859). Visit bit.ly/slpccagendas to view the agenda. 6:30 p.m. STUDY SESSION – council chambers Discussion items 1. 6:30 p.m. Greenhouse gas emissions inventory and analysis 2. 7:30 p.m. Systems project update 8:15 p.m. Communications/updates (verbal) 8:20 p.m. Adjourn Written reports 3. October 2021 monthly financial report 4. MnDOT excess land update – Toledo Avenue and 28th Street 5. Application for Tax Increment Financing Assistance – Wooddale Station 6. Aldersgate resolution of support for Minnesota Housing Finance 7. West Metro Home Remodeling Fair Joint Powers Agreement The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952-924-2525. Meeting: Study session Meeting date: November 22, 2021 Discussion item: 1 Executive summary Title: Greenhouse gas emissions inventory and analysis Recommended action: No action required. Policy consideration: Does Council require any additional information relative to the 2015-2020 Greenhouse Gas Emissions Inventory and Analysis? Summary: Since the city’s Climate Action Plan (CAP) was adopted in February 2018, staff have worked diligently to design and implement the wide-ranging initiatives laid out to reach the plan’s goals. From internal projects to massive programs and public policy, nearly every department has had a hand in working to reach the goals of the CAP. The first five-year greenhouse gas emissions inventory and analysis (attached) finds that while there is significant work remaining to address emissions—particularly from residential and commercial natural gas consumption—the city’s emissions are trending in the right direction due to both the city’s efforts and to external policy efforts. Notably, this reduction in emissions has occurred despite population growth and the construction of many new multifamily buildings. The CAP was written using 2015 as the baseline year. Understanding the baseline emissions from each sector beginning in 2015 (building energy, transportation, waste, and wastewater) allowed targets to be set to decrease emissions over time. LHB, Inc. was hired to complete the greenhouse gas emissions inventory and analysis, which depicts through a narrative and graphics how much progress is being made to reach the 2030 goals. The report focuses on 2016 through 2019 data, with a separate section discussing the effects of the pandemic on 2020 emissions. Staff and Becky Alexander from LHB, Inc. will be present to provide an overview of the report. The greenhouse gas emissions inventory and analysis report is attached for council’s review. Financial or budget considerations: Not applicable. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion 2015-2020 Greenhouse Gas Emissions Inventory and Analysis Prepared by: Emily Ziring, sustainability manager Reviewed by: Brian Hoffman, director of building and energy Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Study session meeting of November 22, 2021 (Item No. 1) Page 2 Title: Greenhouse gas emissions inventory and analysis Discussion Background: In February 2018 the city council formally adopted the city’s Climate Action Plan. The goals of the plan are some of the most robust of any city in Minnesota. The biggest bowl outcome of the plan is for the community to achieve community-wide carbon neutrality by 2040, with seven important midterm goals set for 2030. The goals were set for 2030 as midway point for the city to assess its progress toward becoming carbon neutral by 2040. The strategies within each goal were set up relative to a projected “business-as-usual” (BAU) level, which accounts for anticipated city growth. Specific reduction targets are assigned to each strategy that were calculated using a “wedge diagram” tool that compared potential progress against the anticipated emissions if the city were to take no action to reduce its emissions. Implementation of the strategies under all of the goals will result in a 55% reduction of greenhouse gas emissions from business-as-usual by 2030, and 62% by 2040. The remaining post-2030 emissions reductions will come from fossil fuel use in buildings and travel, including vehicle and air travel. Present considerations: The 2015-2020 greenhouse gas emissions inventory and analysis has been included in the packet for the council’s review. The analysis revealed that St. Louis Park’s emissions decreased 5% from 2015 to 2019 and an additional 17% in 2020. When compared to the BAU reduction target, St. Louis Park’s GHG emissions achieved a 9% reduction in 2019. Next steps: Sustainability staff anticipate returning to council for a study session on Dec. 13, 2021 with a summary of proposed 2022 climate action programs. The proposed programs serve as the city’s response to the greenhouse gas progress report and when combined with existing programs, policies and projects, set the city on a path towards continuous and accelerated emissions reductions. The December discussion will also serve as an opportunity to introduce a draft of a climate emergency resolution. The resolution template was developed by the Minnesota Cities Climate Caucus, a group of municipal and county elected officials from across the state working together on solutions to the climate crisis. It will be adapted by the city’s Environment and Sustainability Commission to highlight the effects of climate change on St. Louis Park and the city’s climate action efforts. Many of the cities represented by the Cities Climate Caucus intend to pass climate emergency resolutions (based off of the same template) as a coordinated effort in January 2022. St. Louis Park 2015-2020 Greenhouse Gas Emissions Inventory and Analysis November 2021 Prepared by: Becky Alexander, LHB Page 3 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis Table of Contents Background 1 Greenhouse Gas Emissions Summary 1 Energy 2 Travel 5 Waste 6 Drivers of Change 7 Residential Electricity 8 Commercial/Industrial Electricity 9 Residential Natural Gas 9 Commercial/Industrial Natural Gas 11 Travel 12 Waste 13 City Comparison 14 Pathway to Carbon Neutrality 15 Building Energy Progress 16 Vehicle Travel Progress 17 Waste Progress 18 Notes 19 Page 4 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 1 Background St. Louis Park’s Climate Action Plan (2018) models a pathway to carbon neutrality by 2040, supported by sector-specific goals, strategies, and actions. The plan is based on nine years of historic community-wide greenhouse gas (GHG) emissions data. This report documents the changes in community-wide emissions since the baseline year of 2015, assesses the drivers of change, and evaluates whether the city is on track to meet its emissions goals. It provides a high-level overview of GHG emissions and is not intended to be a detailed progress report on specific initiatives within the Climate Action Plan. St. Louis Park anticipates that this type of GHG emissions analysis will be undertaken every five years at a minimum. Greenhouse Gas Emissions Summary Community-wide GHG emissions for 2016 through 2020 have been calculated through Minnesota’s Regional Indicators Initiative consistently with the baseline data used in the city’s Climate Action Plan.1 These inventories follow the U.S. Community Protocol, developed by ICLEI Local Governments for Sustainability USA.2 They include electricity and natural gas use, vehicle travel, and waste generated within city boundaries. About 60% of the city’s emissions are from building energy use, 38% from travel, and 2% from waste management (Figure 1). St. Louis Park’s emissions decreased 5% from 2015 to 2019 and an additional 17% in 2020 (Figure 2). The Drivers of Change section below quantifies the reasons for this decrease. Due to the impacts of the COVID-19 pandemic, data from 2020 is considered an anomaly that is discussed separately from 2015-2019 trends. Figure 2. St. Louis Park greenhouse gas emissions by activity from 2007-2020 (left) and 2019 breakdown by activity (right). Figure 1. St. Louis Park 2019 GHG breakdown by activity, fuel type, and sector. 60%Nat. Gas32%Com/Ind37%Elec.28%Res.23%38%38%38%2%2%2%Waste Travel Energy GHG BREAKDOWN Page 5 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 2 ENERGY Buildings generate GHG emissions by using electricity and natural gas. Electricity accounted for 28% and natural gas accounted for 32% of the community’s emissions in 2019 (Figure 1). Electricity is commonly used to power lighting, appliances, and air conditioning, and is increasingly being used for space and water heating via heat pumps. The city’s electric utility provider, Xcel Energy, provided community-wide annual electricity usage data, broken down between residential and commercial/ industrial users. Xcel also publishes their annual emissions factors (tonnes of CO2e per kilowatt-hour of electricity), which account for the different sources of energy used to generate electricity.3 Electricity use decreased 12% from 2015 to 2019 before rising 2% in 2020 – likely due to the transition to remote work during the pandemic without substantial reductions occurring in commercial buildings (Figure 3). With cleaner electricity provided by Xcel Energy, electricity emissions decreased 27% from 2015 to 2019, and another 19% in 2020 (Figure 4). Figure 3. St. Louis Park electricity use by sector for 2007-2020. Figure 4. St. Louis Park electricity emissions by sector for 2007-2020 (left) and 2019 breakdown by sector (right). 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 20072008200920102011201220132014201520162017201820192020million MMBTUELECTRICITY USE Commercial/Industrial Electricity Residential Electricity Page 6 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 3 Natural gas is commonly used for space heating, water heating, and cooking appliances, as well as for some types of commercial equipment. Usage data was provided by the city’s natural gas utility provider, CenterPoint Energy. Unlike electricity, natural gas emissions factors do not vary over time. Natural gas use and emissions varied over the study period, driven primarily by weather (Figure 5). In 2019, natural gas use and emissions were 14% higher than in 2015, though they dropped 12% in 2020 (Figure 6). While this data is not weather- normalized, more information about the impacts of weather is included in the Drivers of Change section below. Figure 6. St. Louis Park natural gas emissions by sector for 2007-2020 (left) and 2019 breakdown by sector (right). Figure 5. St. Louis Park natural gas use by sector for 2007-2020. 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 20072008200920102011201220132014201520162017201820192020million MMBTUNATURAL GAS USE Commercial/Industrial Natural Gas Residential Natural Gas Page 7 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 4 Emissions from building energy use can also be broken out between residential and commercial/industrial uses. Commercial and industrial buildings accounted for 37% of 2019 emissions, while residential buildings were responsible for 23% (Figure 1). Residential users include single-family homes, townhomes, and duplexes. Commercial/industrial includes non-residential energy users, such as businesses, industries, and institutions. Energy used in multi-family residential buildings can fall into either category, depending on whether there are energy meters for each unit (residential) or for the entire building (commercial). In practice, electricity is typically accounted for within the residential sector while natural gas is typically accounted for in the commercial sector. Commercial/industrial energy use increased by 1% from 2015 to 2019 before dropping 8% in 2020 due primarily to a warmer winter. Commercial/industrial emissions decreased 14% from 2015 to 2019 and dropped another 17% in 2020. Residential energy use increased 10% from 2015 to 2019 before dropping 7% in 2020. Residential emissions decreased 2% from 2015 to 2019 and then dropped 12% in 2020. 0 50 100 150 200 250 20072008200920102011201220132014201520162017201820192020thousand tonnes CO2eENERGY EMISSIONS Commercial/Industrial Electricity Commercial/Industrial Natural Gas Residential Electricity Residential Natural Gas Figure 7. St. Louis Park building energy emissions by sector and fuel type for 2007-2020. Figure 8. St. Louis Park building energy emissions by sector/fuel type for 2007-2020 (left) and 2019 breakdown by sector/fuel type (right). Page 8 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 5 TRAVEL St. Louis Park’s travel emissions account for vehicle miles traveled (VMT) within city boundaries, regardless of where each trip started or ended. Travel accounted for 38% of the community’s emissions in 2019 (Figure 1). Vehicles with internal combustion engines emit GHGs from their tailpipes while in use. Electric vehicles may result in GHGs from electricity generation. Vehicle emissions are dependent on miles driven, fuel type, and fuel efficiency. City-specific VMT data is available from the Minnesota Department of Transportation.4 Emissions are estimated using statewide or national averages from ICLEI and the U.S. Federal Highway Administration (FHWA) for vehicle type breakdown, fuel breakdown, fuel economy, and emissions factors by fuel type. Due to population growth and additional travel per capita, VMT increased by 5% from 2015 to 2019. It dropped by 21% in 2020 due to job loss, remote work/school, and other business and lifestyle changes caused by the pandemic (Figure 10). Travel emissions increased by 2% from 2015 to 2019, with some of the increased VMT offset by better fuel economy. Like VMT, travel emissions also dropped 21% from 2019 to 2020 (Figure 9). 0 50 100 150 200 250 300 350 400 450 500 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020million vehicle miles traveledVEHICLE MILES TRAVELED 0 50 100 150 200 250 20072008200920102011201220132014201520162017201820192020thousand tonnes CO2eVEHICLE EMISSIONS Figure 9. St. Louis Park emissions from vehicle travel for 2007-2020. Figure 10. St. Louis Park vehicle miles traveled for 2007-2020. Page 9 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 6 WASTE Landfilled and incinerated solid waste disposal accounted for 2% of the community’s emissions in 2019.5 While St. Louis Park tracks residential waste disposed, it does not currently track non- residential waste.6 Therefore, total citywide waste has been estimated based on the city’s proportion of Hennepin County’s population. Due to this methodological limitation, the data is not granular enough to accurately reflect the impacts of city action. The City is currently exploring ways to rectify this. Residential waste generation (city data) decreased 2% from 2015 to 2019 (Figure 20) and recycling rates rose from 49% to 51% of waste disposed. Residential waste rose 20% in 2020 – with a 56% recycling rate – due to an influx of residents working and preparing meals from home during the COVID-19 pandemic. Conversely, total waste generation (based on county data) increased 12% from 2015 to 2019 before dropping by 18% in 2020 (Figure 12). This drop reflects a decrease in reported commercial recycling, likely due to a combination of pandemic impacts and methodological changes in how recycling data is estimated. Total waste emissions increased 6% from 2015 to 2019 before dropping 7% in 2020 (Figure 11). Figure 12. St. Louis Park municipal solid waste generation by disposal method for 2007-2020 – estimated based on countywide trends – and city-specific residential waste disposed (total of all disposal methods) (left). 2019 breakdown of total waste by disposal method (right). The 2019 residential recycling rate was 51%. Organics recycling is included within the recycling totals. 0 2 4 6 8 10 12 14 16 18 20072008200920102011201220132014201520162017201820192020thousand tonnes CO2eWASTE EMISSIONS Incinerated Landfilled Figure 11. St. Louis Park municipal solid waste emissions by disposal method for 2007-2020, estimated based on countywide trends. Page 10 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 7 Drivers of Change Many factors impact community-wide emissions, from city growth and weather to emissions reduction programs. This analysis determines the biggest drivers of change from the baseline year of 2015 to the year 2019 using the “Greenhouse Gas Contribution Analysis” toolkit developed through the U.S. Department of Energy’s Cities Leading through Energy Analysis and Planning (Cities-LEAP) program.7 Figure 14 shows the top reasons for increases and the top reasons for decreases in community-wide greenhouse gas emissions. The primary reasons for increases are all associated with city growth or external factors (such as weather), while the primary reasons for decreases reflect policies, programs, and action at the federal, regional, and local scale. The following sections show full results for each sector/fuel type. +3% +2% +1% +3% -1% -4% -6% -2% 547 thousand metric tons 520 thousand metric tons -5% 2015 INVENTORY colder winter population growth more buildings other increases cleaner vehicles less electricity use cleaner electricity other decreases 2019 INVENTORY Emissions increases Emissions decreases Total emissions ST. LOUIS PARK GREENHOUSE GAS EMISSIONS DRIVERS OF CHANGE Figure 14. The biggest drivers of change in community-wide emissions from 2015 to 2019 for St. Louis Park. Top three reasons for reductions: 1.Cleaner electricity supplied by Xcel Energy. 2.Electricity efficiency and conservation, especially in commercial/industrial buildings. 3.Improved vehicle fuel economy. Top three reasons for increases: 1.A colder winter increased natural gas use. 2.Population growth increased residential energy use, vehicle travel, and waste. 3.New construction increased multi-family building energy use. Page 11 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 8 RESIDENTIAL ELECTRICITY Despite an increase both in the number of households (in both single-family and multi-family homes, including apartments and condos) and the percentage of households using electricity for space heating, emissions from residential electricity decreased by 23% from 2015 to 2019 (Figure 15). The average household used 9% less electricity in 2019 than in 2015. Most of these savings are beyond what is accounted for from utility conservation program participation and could be due to a combination of occupant behavior, federal appliance standards, and resident action such as lightbulb replacement. Additional savings were achieved through cleaner electricity supplied by Xcel Energy, which reported an 19% drop in emissions per kilowatt-hour of electricity over this time period. This includes a small impact from local investment in renewable electricity through Xcel programs, which rose from 1.8% of residential electricity use in 2015 to 4.0% in 2019.8 While weather does affect the electricity used for residential space heating and cooling, its impact on these two study years is minimal.9 +3% +1% -0% +4% -1% -12% -17% 56k metric tons CO2e 43k metric tons CO2e -23% 2015 INVENTORY more households colder winter cooler summer more households with electric heating utility conservation programs residential electricity efficiency cleaner electricity 2019 INVENTORY Emissions Increases Emissions Decreases Total Emissions ST. LOUIS PARK RESIDENTIAL ELECTRICITY EMISSIONS DRIVERS OF CHANGE Figure 15. Drivers of change for residential electricity emissions from 2015 to 2019 in St. Louis Park. Residential electricity efficiency refers to savings beyond those reported through utility conservation programs. Page 12 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 9 COMMERCIAL/INDUSTRIAL ELECTRICITY Emissions from commercial and industrial electricity decreased by 29% from 2015 to 2019 (Figure 16). Much of this drop is due to energy efficiency, with utility conservation programs recording significant savings. Additionally, cleaner electricity supplied by Xcel Energy caused a significant (19%) reduction in emissions per kilowatt-hour. This includes a small impact from local investment in renewable electricity through Xcel programs, which rose from 0% of commercial/ industrial electricity use in 2015 to 1.7% in 2019.10 No correlation was found between weather and commercial and industrial electricity use, suggesting that it has a negligible impact compared to other factors. +4% 0% 0% -8% -9% -16% 142k metric tons CO2e 101k metric tons CO2e -29% 2015 INVENTORY commercial building growth colder winter cooler summer utility conservation programs commercial electricity efficiency cleaner electricity 2019 INVENTORY Emissions Increases Emissions Decreases Total Emissions ST. LOUIS PARK COMMERCIAL ELECTRICITY EMISSIONS DRIVERS OF CHANGE Figure 16. Drivers of change for commercial/industrial electricity emissions from 2015 to 2019 in St. Louis Park. Commercial electricity efficiency refers to savings beyond those reported through utility conservation programs. Page 13 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 10 RESIDENTIAL NATURAL GAS Residential natural gas emissions increased by 17% from 2015 to 2019 (Figure 17). This is primarily caused by the colder winter; around three-quarters of St. Louis Park’s residential natural gas is estimated to be used for space heating. This vulnerability to changes in the weather suggests there are opportunities for St. Louis Park to improve residential resilience and environmental justice. After accounting for weather, there was a slight increase in natural gas use per household, despite 5% savings reported through utility conservation programs. Possible reasons for this could be a trend toward larger homes, changes in home temperature settings, and/or increased natural gas use for water heaters, cooking appliances, and laundry dryers. Less than 3% of St. Louis Park’s homes use propane, fuel oil, or other fuels for space heating – these uses have a minimal impact on the total.11 +3% -5% +16% -5% +7% +0% 65k metric tons CO2e 75k metric tons CO2e +17% 2015 INVENTORY more households fewer households with gas heat colder winter utility conservation programs more natural gas per household no change in heating fuels mix 2019 INVENTORY Emissions Increases Emissions Decreases Total Emissions ST. LOUIS PARK RESIDENTIAL NATURAL GAS EMISSIONS DRIVERS OF CHANGE Figure 17. Drivers of change for residential natural gas emissions from 2015 to 2019 in St. Louis Park. “More natural gas per household” accounts for savings reported through utility conservation programs (i.e. natural gas per household increased 2% despite 5% savings reported through utility program participation). Page 14 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 11 COMMERCIAL/INDUSTRIAL NATURAL GAS Commercial/industrial natural gas emissions increased by 11% from 2015 to 2019 (Figure 18). This is primarily caused by the colder winter; about 60% of St. Louis Park’s commercial natural gas is estimated to be used for space heating. The construction of new multifamily buildings (which are typically considered commercial users of natural gas) is responsible for additional increases. After accounting for weather and new construction, there was a slight decrease in natural gas use per square foot of building area, though not nearly as much as anticipated based on the 9% savings reported by utility conservation programs. +6% +9% -9% +7% -0% 82k metric tons CO2e 92k metric tons CO2e +11% 2015 INVENTORY more multifamily buildings colder winter utility conservation programs more commercial natural gas no change in heating fuels mix 2019 INVENTORY Emissions Increases Emissions Decreases Total Emissions ST. LOUIS PARK COMMERCIAL NATURAL GAS EMISSIONS DRIVERS OF CHANGE Figure 18. Drivers of change for commercial/industrial natural gas emissions from 2015 to 2019 in St. Louis Park. Page 15 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 12 TRAVEL Vehicle travel emissions increased by 2% from 2015 to 2019 (Figure 19). Increases due to population growth and more travel per person were partially offset by improved vehicle fuel economy. The Climate Action Plan includes numerous strategies aimed at reducing emissions from travel, including vehicle efficiency, adoption of EVs, and reducing VMT through initiatives such as land use changes, car sharing services, wayfinding and implementation of Connect the Park. While there is not a one-to-one inverse relationship between vehicle trips and bike/walk trips, one of the strategies of Connect the Park is to “Make low-carbon and no- carbon travel methods an easy option to access public transit and as an alternative to shorter vehicle trips.” Beginning in 2022, St. Louis Park’s Engineering Department will be collecting data (both bike/pedestrian counts and attitude surveys) to gauge overall trends in use of bicycle and pedestrian facilities moving forward. +3% +1% 0% -2% 193k metric tons CO2e 197k metric tons CO2e +2% 2015 INVENTORY population growth more travel per person no local program impacts cleaner vehicles 2019 INVENTORY Emissions Increases Emissions Decreases Total Emissions ST. LOUIS PARK TRAVEL EMISSIONS DRIVERS OF CHANGE Figure 19. Drivers of change for vehicle travel emissions from 2015 to 2019 in St. Louis Park. Page 16 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 13 WASTE Using County-level data prorated by population, emissions from waste disposal increased by 6% from 2015 to 2019 (Figure 21). This increase can be attributed to a combination of population growth, economic growth, and more waste being generated per person. As total waste emissions data is only available at the county level, it does not reflect the impacts of St. Louis Park’s residential organics and waste reduction programs, commercial and multifamily recycling requirements, or its Zero Waste Packaging ordinance. Using city-specific data, the amount of landfilled or incinerated residential waste per person decreased by 10% over this period (Figure 20). Much of this reduction can be attributed to the collection of food scraps for composting through the city’s organics program in addition to other City programs such as pay- as-you-throw garbage service levels and waste reduction educational initiatives. 0 2 4 6 8 10 12 14 16 18 2007200820092010201120122013201420152016201720182019thousand tonsRESIDENTIAL WASTE Yard Waste Organics Recycling Recycling Garbage Figure 20. St. Louis Park residential solid waste by disposal method for 2007-2019. +4% +1% -2% -1% +4% 10k metric tons CO2e 11k metric tons CO2e +6% 2015 INVENTORY population growth increased GDP per person shift in waste disposal methods incineration emissions factor more waste per person 2019 INVENTORY Emissions Increases Emissions Decreases Total Emissions ST. LOUIS PARK WASTE EMISSIONS DRIVERS OF CHANGE Figure 21. Drivers of change for municipal solid waste emissions from 2015 to 2019 in St. Louis Park, based on countywide data. Page 17 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 14 City Comparison To provide additional context for understanding St. Louis Park’s progress toward its climate goals, its emissions can be compared to other Minnesota communities with climate action plans. Both Northfield and Eden Prairie and have adopted climate action plans (in 2019 and 2020, respectively), are served by the same electric utility as St. Louis Park, and have similar weather trends. Figure 22 shows per capita community-wide emissions for each of these cities from 2015 through 2019. •St. Louis Park: 8% reduction •Eden Prairie: 9% reduction •Northfield: 4% reduction Figure 23 shows how these changes break down by sector and fuel. Eden Prairie’s trends are very similar to St. Louis Park’s. While Northfield’s trends are generally in the same direction, they are a smaller magnitude. Waste is the exception, where St. Louis Park’s and Eden Prairie’s emissions (both using Hennepin County waste management data) grew slightly due to an increase in landfilled waste, while Northfield’s emissions decreased due to a higher recycling rate. -40%-30%-20%-10%0%10%20% Com/Ind Electricity Residential Electricity Com/Ind Natural Gas Residential Natural Gas Vehicle Travel Waste CHANGE IN PER CAPITA EMISSIONS FROM 2015 TO 2019 St. Louis Park Eden Prairie Northfield Figure 23. Percent change in per capita emissions by sector for St. Louis Park, Eden Prairie, and Northfield from 2015 to 2019. Figure 22. Change in per capita community-wide emissions from 2015-2019 for St. Louis Park, Eden Prairie, and Northfield. 0 1 2 3 4 5 6 7 8 9 2015 2016 2017 2018 2019tonnes CO2e per capitaPER CAPITA EMISSIONS Northfield Eden Prairie St. Louis Park Page 18 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 15 Pathway to Carbon Neutrality In 2019, the city was not on track to meet its climate goals (Figure 24). Progress can be evaluated by comparing current emissions (the white dots labeled “Updates” in the following figures) to the GHG emissions reduction plan (the dashed “Strategic Plan” in Figure 26 and Figure 28) representing the impact of all modeled emissions reduction strategies. This comparison can be framed in relation to the business-as-usual (BAU) trajectory (the upper grey line), which reflects a potential scenario if no action is taken. Unlike comparisons to the 2015 baseline presented earlier in this report, comparing to BAU accounts for anticipated city growth. St. Louis Park’s GHG emissions reduction plan called for a 17% reduction from business-as-usual emissions in 2019. It achieved a 9% reduction. See the sections on Building Energy Progress and Vehicle Travel Progress below for more detail. 2020 STATUS In 2020, the city achieved a 24% reduction from BAU, exceeding its plan milestone of a 21% reduction (Figure 24). However, this was due in part to the impacts of the COVID-19 pandemic and is not anticipated to be sustained without additional climate action. Impact of New Growth Projections New population and jobs forecasts for St. Louis Park through 2040 have been released since the City’s Climate Action Plan was developed. While the job forecasts changed less than 0.5%, the population forecasts increased by up to 7%. This will require the community to reduce emissions per capita at a faster rate than previously modeled, achieving approximately 4.6 tonnes CO2e per person in 2030 rather than 4.9 tonnes CO2e per person (from a 2015 baseline of 12.5 tonnes CO2e per person). Another way of thinking about this is the “Business-As-Usual” trajectories shown in Figure 22 through Figure 26 would be growing more steeply than shown, so additional actions will be needed to reach the city’s goals. - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 2005 2010 2015 2020 2025 2030 2035 2040 tonnes CO2e PLANNED EMISSIONS REDUCTIONS BY SECTOR Commercial/Industrial Efficiency Residential Efficiency Electric Grid Mix Renewable Energy Travel Strategies Waste Strategies Advanced Thermal Strategies & Offsets Advanced Travel Strategies & Offsets Business-As-Usual Goal Baseline Updates Figure 24. St. Louis Park emissions reduction scenario, overlaid with progress since 2015. Page 19 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 16 BUILDING ENERGY PROGRESS In 2019, the community was not on track to meet its reduction targets for building energy emissions (Figure 26). St. Louis Park’s GHG emissions reduction plan called for a 38% reduction from business-as-usual (BAU) electricity emissions in 2019. It achieved a 31% reduction, reducing electricity use more quickly than anticipated but not transitioning to clean energy quickly enough to meet plan targets (Figure 25). Since the city’s goal of 100% renewable electricity by 2030 is more aggressive than Xcel’s goal of carbon-free electricity by 2050, significant renewable energy investment within St. Louis Park is needed. Natural gas emissions were 6% higher than BAU in 2019, not meeting the plan’s 10% decrease. Additional efforts are needed to reduce natural gas use, especially in cold years. 2020 STATUS In 2020, the community was much closer to achieving its energy emissions reduction plan, which called for a 32% reduction from BAU. It achieved a 30% reduction through additional electricity efficiency, cleaner electricity supplied by Xcel, and less natural gas used due to the warmer winter (Figure 26). - 100,000 200,000 300,000 400,000 500,000 600,000 2005 2010 2015 2020 2025 2030 2035 2040 tonnes CO2e ENERGY STRATEGIES Commercial/Industrial Efficiency Residential Efficiency Electric Grid Mix Renewable Energy Business-As-Usual Strategic Plan Goal Baseline Updates Figure 26. St. Louis Park building energy emissions reduction scenario, overlaid with progress since 2015. Figure 25. St. Louis Park's progress in 2019 toward the energy targets modeled in the 2018 Climate Action Plan. -40%-35%-30%-25%-20%-15%-10%-5%0%5%10%15%Com/Ind ElectricityRes. ElectricityElectricity Emissions FactorCom/Ind Natural GasRes. Natural Gas% change from business-as-usual2019 ENERGY PROGRESS Plan Actual Page 20 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 17 VEHICLE TRAVEL PROGRESS In 2019, the community was not on track to meet its reduction targets for vehicle travel emissions (Figure 28). St. Louis Park’s GHG emissions reduction plan called for a 5% reduction from business-as-usual (BAU) travel emissions in 2019. It achieved a 2% reduction. With higher population growth than anticipated and slightly higher VMT per capita, VMT was 3% higher than BAU in 2019 (Figure 27). This was offset by a more rapid decrease than anticipated in the vehicle emissions factor (tonnes CO2e per mile traveled) due to assumed improvements in fuel economy.12 VMT reduction and additional progress toward cleaner vehicles are needed to meet the city’s climate goals. 2020 STATUS Impacted by the COVID-19 pandemic in 2020, St. Louis Park achieved a 22% reduction in VMT emissions from BAU, far exceeding the planned 6% (Figure 28).13 Though some ongoing VMT savings are likely to be achieved through a sustained increase in remote work, it is unlikely to remain at 2020 levels without implementing other reduction strategies. 2005 2010 2015 2020 2025 2030 2035 2040 - 50,000 100,000 150,000 200,000 250,000 300,000 2005 2010 2015 2020 2025 2030 2035 2040 tonnes CO2e VEHICLE TRAVEL STRATEGIES Reduce VMT Vehicle Efficiency (CAFE standards) Electric Vehicles Fuel Switching for Heavy Duty Vehicles Baseline Updates Business-As-Usual Strategic Plan Goal Figure 28. St. Louis Park vehicle travel emissions reduction scenario, overlaid with progress since 2015. Figure 27. St. Louis Park's progress in 2019 toward the travel targets modeled in the 2018 Climate Action Plan. -10% -5% 0% 5%Vehicle Miles TraveledVehicle Emissions Factor% change from business-as-usual2019 TRAVEL PROGRESS Plan Actual Page 21 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 18 WASTE PROGRESS Based on countywide data, the community was not on track to meet its reduction targets for waste emissions in 2019. Unlike the other sectors, a wedge diagram showing the impact of emissions reduction strategies on the business-as-usual trajectory was not created for solid waste in the 2018 Climate Action Plan, as the only strategy modeled was a 50% reduction in waste generation by 2030. St. Louis Park’s waste emissions were 3% higher than business- as-usual (BAU) in 2019, rather than the 12% reduction called for in the plan. With higher population growth than anticipated and more waste per capita, 9% more waste was disposed of in 2019 than predicted by the BAU forecast (Figure 29). This was partially offset by a 5% reduction from the BAU waste emissions factor (tonnes CO2e per ton of waste disposed) due to an increased recycling rate. Additional waste reduction and diversion is needed to meet the city’s climate goals, along with revised accounting methodologies to better separate city-specific impacts from countywide data. 2020 STATUS In 2020, the community was still not on track to meet its waste reduction targets, achieving a reduction of 2% from BAU rather than the 15% reduction called for in the plan. Figure 29. St. Louis Park's progress in 2019 toward the waste targets modeled in the 2018 Climate Action Plan. While the plan calls for waste reduction, it does not specify a waste diversion goal (e.g. recycling), which impacts the waste emissions factor. -15% -10% -5% 0% 5% 10%Solid WasteWaste Emissions Factor% change from business-as-usual2019 WASTE PROGRESS Plan Actual Page 22 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 19 Notes 1 St. Louis Park’s GHG emissions can be further explored and benchmarked against other Minnesota cities at the Regional Indicators Initiative website: www.regionalindicatorsmn.com. 2 The U.S. Community Protocol for Accounting and Reporting of Greenhouse Gas Emissions serves as a national standard to define which emissions sources and activities should be included in a community-wide inventory and provides methodologies to account for these emissions. This protocol reflects the sources and activities that local governments are best able to influence, including emissions that occur within the community’s geographic boundaries (also known as Scope 1 emissions) as well as emissions occurring outside the community (also known as Scope 2 and Scope 3 emissions). The U.S. Community Protocol accounts for the six internationally recognized GHGs that directly impact the climate (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride). While these gases have different levels of heat-trapping potential, they are assessed using the common metric of carbon dioxide equivalents (CO2e). 3 Per the U.S. Community Protocol, these inventories use the emissions factors as reported to The Climate Registry, which exclude CO2 from biomass generation. 2019 and 2020 emissions factors are currently undergoing third-party verification and are subject to change when the verification is complete by the end of 2021. These factors are system-wide averages that do not account for community-level differences in local renewable electricity generation or purchase through programs such as WindSource or Renewable*Connect. However, St. Louis Park’s current participation in these programs is low enough (less than 2.5% of total electricity use) that they would not make a noticeable difference in the results shown here. As these programs grow, a methodology will be needed to account for their impact while accurately reflecting renewable energy credit (REC) ownership (which is transferred to the consumer for some programs, but not others) and avoiding double-counting savings (as they are already accounted for in Xcel’s system-wide average). Following the ICLEI Protocol, other market-based solutions such as REC purchases are also excluded from these inventories. 4 VMT data is not available for 2015 due to MnDOT migrating to a new tracking system. VMT was estimated for this year using the average VMT per capita from 2014 and 2016. Emissions were estimated using emissions per mile from 2016, which was much more similar to 2015 values for fuel economy and biofuel content than 2014 was. 5 Emissions from managing municipal solid waste generated within city boundaries are determined based on the quantity of waste, waste composition (e.g. organics, plastics), and the method of disposal (e.g. landfill, incineration, recycling). In Minnesota, municipal solid waste data is tracked at the county level and reported annually to the Minnesota Pollution Control Agency. Emissions from waste incineration are reported by the Hennepin Energy Recovery Center. Landfill emissions are estimated and based on statewide averages for landfill composition and methane recovery rates. Per the U.S. Community Protocol, recycled waste is assigned zero emissions. 6 The city’s residential solid waste program provides organized collection for 12,300 single-family to four-unit homes. 7 This tool accounts for changes in population, size of the built environment, emissions factors, weather, and per capita GDP (for solid waste only). Due to data limitations, the impact of economic cycles on energy use and travel are not included. The analysis also reflects data tracked through local programs. In this case, local data tracked for Xcel Energy and CenterPoint Energy’s conservation improvement programs is included. While these programs report savings from program participation in a given year, savings from all years from 2015 to 2019 were aggregated for this analysis (as savings are presumed to persist into future years). The weather analysis uses monthly energy data from Hennepin County from 2017-2019 to determine how weather- dependent the community’s building stock is likely to be. This data is limited by the billing cycles of the utility companies, which don’t align with calendar months. This may cause some imprecision in the weather normalization. Page 23Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis ST. LOUIS PARK 2015-2020 GREENHOUSE GAS EMISSIONS INVENTORY AND ANALYSIS 20 8 This includes participation in Windsource, Renewable*Connect, Solar*Rewards, and community solar gardens. It does not include other forms of REC purchases. See Note 3 for additional information about how these programs are accounted for in the emissions inventories. 9 The analysis estimates that about 11% of electricity use during these years goes toward space cooling and 6.5% is used for space heating. As 2015 and 2019 were both cooler than average summers, the percentage used for cooling may increase in future years – especially as summer temperatures increase. 10 This includes participation in Windsource, Renewable*Connect, Solar*Rewards, and community solar gardens. It does not include other forms of REC purchases. See Note 3 for additional information about how these programs are accounted for in the emissions inventories. 11 U.S. Census Bureau, American Community Survey, “St. Louis Park House Heating Fuel”. 12 Fuel economy assumptions are based on national data. This does not account for city-specific increases in electric vehicles. However, the current number of electric vehicles registered in St. Louis Park (less than 200) would not make a significant impact on the results. 13 Reductions in 2020 vehicle travel emissions exceeded the amount required to put the community on a linear path to carbon neutrality by 2040 (the dotted “Goal” line in Figure 26). Due to the perceived difficulty in achieving rapid decarbonization of the transportation sector, the GHG emissions reduction strategies modeled in the Climate Action Plan – shown by the dashed “Strategic Plan” line – does not get all the way to carbon neutrality. Instead, a large percentage will need to be addressed through “Advanced Travel Strategies and Offsets,” as shown in Figure 22. Reducing vehicle travel at the extreme rate seen during the COVID-19 pandemic could be one approach to “Advanced Travel Strategies.” Page 24 Study session meeting of November 22, 2021 (Item No. 1) Title: Greenhouse gas emissions inventory and analysis Meeting: Study session Meeting date: November 22, 2021 Discussion item: 2 Executive summary Title: Systems project update Recommended action: None. The purpose of this item is to update council on the status of this project and next steps. Policy consideration: Does council support the proposed calendar and pilot project to test the systems approach? Summary: On Sept. 27, 2021 staff proposed development and implementation of a systems approach to address the existing list of council-requested items and correlate the items to the city’s strategic priorities. Following discussion with council, staff worked on and completed the identified “next steps”.  Phase 1 - Reorganize existing list, develop anticipated timeline, and action plan for council.  Phase 2 – Evaluate current method to propose items to identify opportunities to better facilitate systems thinking, communicate variables, determine sense of urgency, assess value/impact of initiative, assign strategic priority. At the meeting on Nov. 22, 2021 staff will review and discuss the following with council: • Review how council-requested items are sorted/grouped by strategic priority and identify those items which staff believes to be “complete” (work objective has been achieved or the scope of any additional work is outside of the city’s authority). • Briefly highlight process for proposing council-requested items going forward, including use of new automated request form and workflow. • Review and discuss sample 2022 annual calendar for systems approach, including when items could be scheduled, staff rationale, and workflow transitions. • Review proposed pilot with around the Environmental Stewardship strategic priority to test and evaluate this approach, including staff analysis and strategic plan for pilot system. Next steps:  Initiate pilot project and develop evaluation tools and metrics  Test and implement new workflow process for council to request items  Analyze each priority area and how it fits into the 2022 calendar and develop action plan  Develop tracking tool for council to see timeline and pertinent details of each priority area Financial or budget considerations: Staff time; no additional expenditures anticipated. Strategic priority consideration: Not applicable. Supporting documents: Exhibit A – Systems grouping outline Exhibit B – Summary of completed items Prepared by: Melissa Kennedy, city clerk Approved by: Kim Keller, city manager Community & Civic Engagement Housing & Neighborhood- Oriented Development Racial Equity & Inclusion Transit & Mobility Solutions Environmental Stewardship Boards & Commissions •Structure, function, roles •Transportation Commission •Food Security Task Force Public Process Expectations & Outcomes Council Rules & Procedures •Agenda format •Proclamation policy •Public forums at meetings Land Acknowledgments REI req. for developers requesting TIF Corridor Parking Policy Neighborhood-focused Commercial Activity in Parks Climate Action Plan •Greenhouse Gas Emissions •Climate Emergency Resolution •Programming Overview •Climate Champions •Solar Sundown •Tree Planting •Vehicle Idling Policy •Green Building Policy revisions •Zero Waste Packaging updates Policing structural analysis Study session meeting of January 4, 2021 (Item No. 2) Title: Systems project update Page 2 Exhibit A – Systems grouping outline Exhibit B – Summary of council-requested items deemed to be completed Council-requested item Department Staff summary/rationale for disposition Conversion therapy ban Admin Services This was reviewed by council and the HRC extensively. It was determined that passage of a resolution or an ordinance banning the practice in the city would be largely performative and not enforceable. The state subsequently enacted a ban on conversion therapy, which the city is subject to. Public health coordinator role Admin Services A written report was provided to council on 10-26-20 on community health services and connections. As a city that remains responsive to community needs, community health is and continues to be a priority when considering programs, policies , and infrastructure. The city continues to strengthen partnerships with local, county and state agencies to monitor community health and improve access and address needs from the community as they arise. Staff are confident that departments appropriately respond to the unique needs of the community and continue to find innovative and creative ways while partnering with local, county, state, and non-profit agencies. This allows staff to be nimble in response while ultimately serving community health needs. Youth on Commissions Admin Services Ordinance 2603-21 was adopted on 1-19-21. This ordinance expanded youth membership and voting privileges of youth members on all commissions, except the Planning Commission/BOZA. Mint/menthol exemption Building & Energy Litigation was initiated following Edina passing an ordinance to prohibit the sale of mint/menthol tobacco products. Edina prevailed at the District Court level and that Order was immediately appealed to the 8th Circuit Court of Appeals. Oral arguments were held on May 12, 2021 and a decision by the court should be made shortly. The lawsuit occurring is not covered by insurance and Edina is paying for 100% of the fees to defend the decision. This case, and the outcome of any further appeals, will determine if a city can adopt ordinances prohibiting sale of these products. Staff continues to monitor and would bring forward any additional recommendations for council consideration that may arise. Smoking restrictions on outdoor patios Building & Energy Council discussed at the 11-1-21 special study session. The consensus was for staff to develop an educational policy around this issue. Staff is working on the council directive and planning for implementation. Create a housing stabilization fund utilizing CARES Act funds Community Development The city provided STEP with $180,000 in housing stabilization funding which was subsequently reimbursed utilizing CARES Act funds allocated to the city. Create pathways for BIPOC individuals and families to build wealth through home ownership Community Development A homeownership and wealth-building program targeted to BIPOC households was created to assist low-income, first-generation-homebuyer households become homeowners in St. Louis Park. The program will be rolling out by the end of 2021. Require family-size units as part of inclusionary housing policy Community Development The city’s Inclusionary Housing Policy was amended to require family-size units in developments subject to the policy. STEP facilities discussion Community Development STEP has acquired two adjacent buildings to expand their services. If STEP determines they would like to request funding assistance from the city to renovate the buildings, they will contact staff and staff will bring the request to the city council at a future study session. To date, no request for funding assistance has been submitted. Zoning and land use changes at Minnetonka Blvd. & Hwy 100 Community Development This property has been re-guided in the Comp Plan and rezoned per council direction. Semi-trailer truck parking Engineering Ordinance 2623-21 was adopted on August 2, 2021 and granted the city the authority to restrict semi-trucks from parking in non-residential areas. Moving forward, staff will monitor activity and explore ways to address parking needs for truckers. One recent opportunity is a Metro Cities workgroup to discuss city experiences. Staff will be a part of this work group. Meetings will begin in December 2021. WHNC Access Fund Operations & Recreation The school district science team is heading into year two of a three-year review of our E-12 curriculum and instruction for science. They have indicated their plans to center Westwood in the curriculum planning they are looking to unveil in the coming year. With new MN science standards and scope and sequence, they are looking to have greater alignment moving forward. This would provide access to all students to participate in classes at WHNC. Study session meeting of January 4, 2021 (Item No. 2) Title: Systems project update Page 3 Meeting: Study session Meeting date: November 22, 2021 Written report: 3 Executive summary Title: October 2021 monthly financial report Recommended 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 83% of the annual budget through October. General fund expenditures continue to be approximately 5% under budget at 78%. 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. Two large commercial building permits were issued in October for the Luxe and Texa-Tonka Apartments increasing year to date license and permit revenue to 96%. Intergovernmental revenue is at 103% after receiving the police & fire State aid payment on October 1, which was higher than the amount budgeted. There are only two departments exceeding budget year to date. Rec center expenditures are exceeding budget by about 7%, due in part to pool season expenditures that were more than offset by higher pool revenue. The engineering expenditure variance is due to the portion of staff time that has been charged to other funds for projects year to date. Some departments are running well under budget on expenditures due in large part to staff turnover and position vacancies. One of the larger variances is Administration, where expenditures are 18% less than budget due to the unfilled management assistant position and because most of the election expenses won’t be incurred until November. 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 officer Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Summary of Revenues & Departmental Expenditures - General Fund As of October 31, 2021 20212021201920192020202020212021Balance YTD Budget Budget Audited Budget Audited Budget YTD OctRemaining 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 4,447,201 174,628 96.22% Fines & Forfeits279,700 274,340 280,000 126,192 231,000 123,672 107,328 53.54% Intergovernmental1,760,900 1,761,763 1,760,082 2,061,267 1,661,549 1,716,321 (54,772) 103.30% Charges for Services2,187,319 2,160,345 2,273,824 1,600,806 2,013,834 1,787,946 225,888 88.78% Rents & Other Miscellaneous1,367,012 1,500,867 1,456,102 1,201,119 1,499,091 1,179,779 319,312 78.70% Transfers In1,999,877 2,012,706 2,038,338 2,049,976 2,055,017 1,693,348 361,670 82.40% 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 3,442,900 593,300 461,090 132,210 77.72% Use of Fund Balance298,156 230,026 25,000 25,000 0.00%Total General Fund Revenues39,087,692$ 40,737,411$ 41,694,165$ 44,898,732$ 42,502,431$ 26,661,330$ 15,841,101$ 62.73%General Fund Expenditures: General Government: Administration1,837,620$ 1,673,619$ 1,868,599$ 1,472,421$ 1,617,882$ 1,052,035$ 565,847$ 65.03% Finance1,034,199 1,078,291 1,124,045 1,194,828 1,129,591 941,704 187,887 83.37% Assessing772,746 751,737 808,171 792,277 798,244 632,167 166,077 79.19% Human Resources805,620 756,767 823,209 796,088 837,736 618,232 219,504 73.80% Community Development1,502,521 1,515,672 1,571,894 1,536,657 1,576,323 1,205,466 370,857 76.47% Facilities Maintenance1,170,211 1,209,474 1,265,337 1,246,439 1,349,365 1,102,287 247,078 81.69% Information Resources1,674,937 1,474,604 1,709,255 1,596,487 1,683,216 1,374,373 308,843 81.65% Communications & Marketing805,674 786,448 828,004 710,334 970,934 673,654 297,280 69.38%Total General Government9,603,528$ 9,246,612$ 9,998,514$ 9,345,531$ 9,963,291$ 7,599,916$ 2,363,375$ 76.28% Public Safety: Police10,335,497$ 10,452,038$ 10,853,821$ 10,611,141$ 11,307,863$ 9,311,317$ 1,996,546$ 82.34% Fire Protection4,813,078 4,754,524 5,040,703 4,764,337 4,998,636 4,152,403 846,233 83.07% Building 2,555,335 2,430,473 2,696,585 2,321,664 2,571,968 2,027,507 544,461 78.83%Total Public Safety17,703,910$ 17,637,035$ 18,591,109$ 17,697,142$ 18,878,467$ 15,491,227$ 3,387,240$ 82.06% Operations: Public Works Administration290,753$ 214,436$ 273,318$ 216,899$ 249,256$ 189,965$ 59,291$ 76.21% Public Works Operations3,111,481 3,099,493 3,331,966 3,168,538 3,285,820 2,432,041 853,779 74.02% Vehicle Maintenance1,242,236 1,268,700 1,278,827 1,207,998 1,303,159 996,526 306,633 76.47% Engineering570,377 609,567 551,285 531,801 523,547 521,493 2,054 99.61%Total Operations5,214,847$ 5,192,196$ 5,435,396$ 5,125,236$ 5,361,782$ 4,140,024$ 1,221,758$ 77.21% Parks and Recreation: Organized Recreation1,579,569 1,498,462 1,637,002 1,369,309 1,639,358 1,316,316 323,042 80.29% Recreation Center1,949,657 2,041,386 2,061,394 1,864,459 2,082,697 1,871,606 211,091 89.86% Park Maintenance1,833,297 1,820,455 1,906,363 1,802,534 1,916,643 1,511,538 405,105 78.86% Westwood Nature Center643,750 612,266 748,683 606,378 736,515 531,553 204,962 72.17% Natural Resources484,784 429,409 504,143 433,362 496,497 335,783 160,714 67.63%Total Parks and Recreation6,491,057$ 6,401,977$ 6,857,585$ 6,076,042$ 6,871,710$ 5,566,795$ 1,304,915$ 81.01% Other Depts and Non-Departmental: Racial Equity and Inclusion -$4,592$ 314,077$ 272,994$ 341,293$ 224,423$ 116,870$ 65.76% Sustainability26,283 497,484 244,655 432,043 238,382 193,661 55.18% Transfers Out300,000 428,845 0.00% Contingency and Other74,350 121,245 144,860 225,000 0.00%Total Other Depts and Non-Departmental74,350$ 452,119$ 811,561$ 662,509$ 1,427,181$ 462,805$ 310,531$ 32.43%Total General Fund Expenditures39,087,692$ 38,929,940$ 41,694,165$ 38,906,460$ 42,502,431$ 33,260,767$ 8,587,819$ 78.26%Study session meeting of November 22, 2021 (Item No. 3) Title: October 2021 monthly financial reportPage 2 Meeting: Study session Meeting date: November 22, 2021 Written report: 4 Executive summary Title: MnDOT excess land update – Toledo Avenue and 28th Street Recommended action: None at this time. The purpose of this report is to provide the council a status report and background on this property. Policy consideration: None at this time Summary: In late August, MnDOT Metro District reached out to staff to let us know that they have determined that there is not a transportation purpose to keep the right of way west of Toledo Avenue and south of 28th Street. This is the first step in MnDOT’s decision-making process for land release. Their next steps include environmental and historical review. On Sept. 30, city staff met with MnDOT to discuss their position, process and timeline. MnDOT has not formally offered the land to the city at this time. They have only notified the city that they intend to release the land and asked if the city is interested in having control of the property. If the city is interested in taking this property, we would need to send a letter to MnDOT requesting the land. Once we do that, MnDOT will send the city an official offer letter. The city would have six months from the date of the offer letter to accept the land. If the council is interested in asking for this land, staff recommends that we wait until MnDOT has completed their review process. With any land acquisition, it is important that the city does its due diligence. Once MnDOT completes their process and provides the city with their findings, staff will determine if there are additional investigations that need to be done to understand any potential liability if the city should ask for the land. City staff is meeting again with MnDOT in January 2022. MnDOT has targeted having their review process complete by that time. Staff plans to bring this item to the Council for discussion after MnDOT completes their review process. Financial or budget considerations: If the city obtains the land for a public purpose, MnDOT will convey the land to the city for no cost. If the city obtains the land for a private purpose, the it appears that city would be able to purchase the land for Fair Market Value. There would also be additional costs to develop the land for a specific use. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; Location map; Photos of property; St. Louis Park Historical Wayside Park/Beehive Restoration Project Report; Nov. 19, 2012 study session report and minutes Prepared by: Debra Heiser, engineering director Reviewed by: Karen Barton, community development director Brian Hoffman, building & energy director Sean Walther, planning manager Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Study session meeting of November 22, 2021 (Item No. 4) Page 2 Title: MnDOT excess land update – Toledo Avenue and 28th Street Discussion Background: MnDOT contacted city staff regarding their right of way west of Toledo Avenue and south of 28th Street. They have determined they do not need the land for their purposes and are starting their review process to relinquish ownership. MnDOT has not formally offered the land to the city at this time. They have only notified the city that they intend to release the land and have asked us if we are interested in having control of the property. Due to the potential change in status of the land, staff wanted to inform the council of the property’s status and the city’s past preservation efforts. The last time the council discussed this property was during a Highway 100 reconstruction study session on Nov. 19, 2012. At that time, the council provided staff the following direction: “It was the consensus of the City Council that the City should not expend staff resources or money to preserve the Rock Garden.” Staff has been following this direction since that time. Attached is the Council report and the minutes from that meeting. Previous preservation done by the City of St Louis Park:“Lilac Drive” included seven original wayside parks in various communities along the 12.5-mile long Lilac Drive/ Highway 100 corridor. There were two parks in St. Louis Park, the original Lilac Park (Highway 100 and Minnetonka Blvd) and Roadside Park – now called Lilac Park (next to Nordic Ware in the southeast corner of Highway 100 and CSAH 25). Knowing that what remained of the original Lilac Park would be eliminated with the Highway 100 expansion project, the city created the Beehive Relocation Committee in the early 2000s. This group was made up of St. Louis Park staff, MnDOT staff, St. Louis Park Historical Society members, and residents. This group developed recommendations to move and preserve the historic structures located in these wayside parks. From those recommendations, the New Lilac Park (next to Nordic Ware in the southeast corner of Highway 100 and CSAH 25) was created in partnership with MnDOT, Mn State Historic Preservation Office, St. Louis Park Historical Society, Three Rivers Park District, Hennepin County Regional Rail Authority and Nordic Ware. The new park was completed in 2009 and includes a restored Beehive, limestone picnic tables, and the council ring (fire pit). The park also includes trails, a connection to the regional trail and interpretive historical signage. The committee recommended that all salvageable items be moved to the new Lilac Park. What was left on site after this process, was to be removed and disposed of by MnDot. In addition to the development of the new Lilac Park, a documentary was created to commemorate Lilac Drive. MnDOT’s TH100 Project was completed in 2016. However, the remains of the rock garden are still located on MnDOT right of way (on the city street side of the noise wall). Although staff was told that the remains would be removed, MnDOT did not remove what was left of the rock garden. In addition, MnDOT salvaged limestone from an original retaining wall and piled it in this area. Since the project was completed, MnDOT has done minimal maintenance to the area except for recently removing diseased and dead trees. Study session meeting of November 22, 2021 (Item No. 4) Page 3 Title: MnDOT excess land update – Toledo Avenue and 28th Street Present considerations: Land characteristics Area: MnDOT right of way – 73,612 square feet (1.7 acres) City right of way – 28,888 square feet (0.66 acres) Zoning: R2 – single-family residence Comprehensive plan future land use guidance: right of way. Other: Located inside the boundaries of the St. Louis Park Minneapolis Eruv. Community interest: Since the completion of the TH100 project, there has been community interest regarding this right of way and the rock garden. Recently, staff has received 40+ emails asking the city to take over ownership of this land and restore the rock garden. Potential uses: Staff from operations and recreation, building and energy, community development, and engineering reviewed this opportunity and identified the following potential uses for the land. Potential use Strategic priority area Regional stormwater treatment St. Louis Park is committed to continue to lead in environmental stewardship Renewable energy generation St. Louis Park is committed to continue to lead in environmental stewardship Open space St. Louis Park is committed to continue to lead in environmental stewardship Affordable housing St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development What follows is a high-level summary of each of these potential uses. Regional stormwater treatment • Description: Construct a stormwater pond or underground storage chamber to treat runoff from impervious surfaces. • Analysis: Engineering staff reviewed the stormwater pipe network and the topography of the land. There is not a way to direct impervious surface runoff to the land via the pipe network. The rain that falls on the land already soaks into the ground and does not require treatment. No impervious surface drains to the land. Due to this, this would not be a potential use for the land. This would very likely be considered a public use by MnDOT. Renewable energy generation • Description: Create a community solar garden (CSG) on the land. • Analysis: The city has been looking for land suitable for a community solar garden (CSG). A CSG allows community members unable to install roof-top solar an opportunity to subscribe to renewable energy. These are typically between 700kw and 1Mw in size and are operated by a developer. Study session meeting of November 22, 2021 (Item No. 4) Page 4 Title: MnDOT excess land update – Toledo Avenue and 28th Street A CSG typically needs about 5 acres of land to achieve the needed size. This parcel is not large enough to justify a CSG and may have reduced suitable area due to some shading. Other remote parcels possibly could be included depending on electrical connectivity, development cost, power grid capacity, and State rules/Xcel program requirements for CSG developments. This option would need further research. Solar panels are broadly, but not explicitly, allowed as an accessory use in the zoning code. As a principal use of land, a community solar garden is not currently allowed. An ordinance amendment is in process to both explicitly allow solar panels as accessory uses in all districts and to allow community solar gardens as a principal use in industrial zoning districts. If the city wanted to acquire the land for this purpose, MNDOT may consider it as a public use and be willing to transfer the land to the city at no cost. However, this being defined as a public use is less clear than city owned open space/park, stormwater or transportation purposes and could result in MNDOT requiring the city to bid on the land in an open market bidding process. Open space • Description: Obtain the land for use as passive or active open space. • Analysis: The land could be used as passive open space, where the city could develop a sustainability and education opportunity. This could include planting the property with tree species to create a carbon sequestration project, installing plaques to identify the amount of carbon removal. The area could be seeded with native plants to promote pollinators; interpretive information could be posted to educate the public. Due to the small size and linear nature of the space, active park uses such as a dog park or playground would be challenging. Also, the presence of the remains of the rock garden (if they remain) limits the development potential of active park use. If the desired use was ultimately decided to be open space or park, then a comprehensive plan amendment and rezoning would be appropriate. The parks and open space zoning district name does not distinguish between active and passive parks, but in the zoning code, we do define these differently. Parks/open space means passive recreation, including hiking trails, natural areas, wildlife areas, arboretums, open grass areas and tot lots. Parks/recreation means areas for active outdoor recreation activities such as baseball diamonds, tennis courts, basketball courts, playfields, playgrounds, outdoor swimming pools, fitness courses and driving ranges. This would very likely be considered a public use by MnDOT. Affordable housing • Description: Develop affordable housing on the land. • Analysis: This area has been zoned for single-family for many years. Before that, it was zoned for one or two-family uses. That is the use north and east of the site. This may be another opportunity area where the city could pursue a land trust to provide lasting, affordable homeownership opportunities. The city could also explore more dense attached housing products to maximize the number of affordable units that could be Study session meeting of November 22, 2021 (Item No. 4) Page 5 Title: MnDOT excess land update – Toledo Avenue and 28th Street provided or to cluster the development to one part of the site in order to preserve other portions in either public or privately controlled open space. If the city wanted to allow residential development on the land, the comprehensive plan would need to be amended to change from right of way to residential. The zoning district would work for single-family housing but would need to be amended to allow for higher-density housing options. If the city wanted to acquire the land to develop affordable housing specifically, MNDOT may agree that affordable housing is considered a public use of the land and be willing to transfer the land to the city at no cost. However, this being defined as a public use is less clear than park, stormwater or transportation purposes and could result in MNDOT requiring the city to bid on the land in an open market bidding process. The outcome of those discussions would also influence if and how the city pursues acquisition and may entail additional effort to clear the title if the city were to acquire it with a public use restriction. MnDot’s considerations (as seen by staff): Staff have identified several potential paths forward. 1. City use the land for a public purpose. • The land would be city-owned and not transferrable. • Potential public purpose could be (but may not be limited to): streets, sidewalks, trails, utility, park, etc. Other public purposes could be discussed with MnDOT Metro staff. Ultimately the “public purpose” would have to be agreed upon by both parties. • There would be no cost to the city if the land were released for a public purpose. 2. City use the land for a private purpose. • The city would be given an opportunity to purchase the land for Fair Market Value without it going to a public land sale. • The city could sell the land to a second party, with some risk. The title would still have some reference to public purpose; however, there is a way to remove this from the title. • They have not established a fair market value for the land. 3. The land would go to a public land sale. If this occurs: • The city could still bid on the land. • If the city were the successful bidder, there would be no reference to public purpose on the title, eliminating risk. • They have not established a fair market value for the land. 4. The city could choose not to pursue ownership of the land and allow it to be sold through a public land sale. • The city could still influence the land use through the city’s normal comp plan and zoning controls. • Comprehensive plan and zoning controls could be placed on the site either before or after MNDOT releases/ sells the land. Study session meeting of November 22, 2021 (Item No. 4) Page 6 Title: MnDOT excess land update – Toledo Avenue and 28th Street Next steps: If the city is interested in taking this property, we would need to send a letter to MnDOT requesting the land. Staff recommends that we wait until MnDOT has completed their review process. They are targeting to complete this review by our check-in meeting in January 2022. If the City expresses interested in obtaining the property, MnDOT will send the city an official offer letter. The city would have six months from the date of the offer letter to accept the land. With any land acquisition, it is important that the city does our due diligence to invesitigate the current state of the land. Once MnDOT completes their process and provides us with their findings, staff will determine if there are additional investigations that we need to do to understand our potential liability if the city should ask for the land. This could include soil borings and a structural review of the rock island. For these reasons, we believe it is premature to formally ask MnDOT for the land until MnDOT completes their process. SALEM AVE SSALEM AVE SHIGHWAY 100 SHIGHWAY 100 SVERNON AVE SVERNON AVE STOLEDO AVE STOLEDO AVE SUTICA AVE SUTICA AVE SMINNETONKA BLVDMINNETONKA BLVD 29TH ST W29TH ST W 28TH ST W28TH ST W UTICA AVE SUTICA AVE S28TH ST W28TH ST W 0 200 400100 Feet MnDOT Excess Land- Toledo and 28th Street Legend MnDOT right of way City right of way Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 7 City right of way (view facing north at Minnetonka Boulevard) City right of way (facing north just north of the Toledo cul de sac bulb) Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 8 MnDOT right of way (facing north at north boundary of city right of way) South end of MnDOT right of way (facing west from trail along Toledo Avenue) Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 9 Middle of MnDOT right of way (facing west from trail along Toledo Avenue) North end of MnDOT right of way (facing west from trail along Toledo Avenue) Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 10 Remains of limestone wall (facing north) Remains of Rock Garden (facing northeast from noise wall) Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 11 Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 12 !!!! 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(#,( !""& ,($(’&<8(-&,0, :0>) 8’,+ 6!-&&$(’!<( -&, 4?&&, !23<!2<!$)&)4$4)’)!8(( 8 8&&-,5#%4),( #, !"", !"",#7 ,)7$&)!28"$,+,??(,).& (4))&&:#(,+ #’:#($(:#($($-$ 5#%:# ,)#$:&$#($9 9(#,#. !"",)&4( ’4-#%&)(:)’-44,!238$ !""&(4#%(#)&,$8""3$"""() #%(6"",)!238##9()!$8""()# !23’*)!228B6-& !""$(# =: ?!/ ’:)-,#%,& 5&,(#)(,(, !""#% ,7()(#)(&&$$# #7’* &E ,$&,#:$ ,$&)#9##,)9# #(%,)$:$( #,)$&#:$,$(&, ($9:#$(#’ !22B!"- &# ( !""B#,)$(&)#: $,9)#D)#:<"##( ,3:$&$:(& ##(3$8"8,((’!$62"-: D$(’2$<6-$#’$!22-$’$<6-$((’8$<"6-1 ((9(#$#####$((&&’!-$, ’8-$’!-$!22B!-4)5& ,9#/:#(5#)#,, &,)#($"""&!: :’74) (( Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 40 Study session meeting of November 22, 2021 (Item No. 4) Title: MnDOT excess land update – Toledo Avenue and 28th Street Page 41 Meeting: Study session Meeting date: November 22, 2021 Written report: 5 Executive summary Title: Application for Tax Increment Financing Assistance – Wooddale Station Recommended action: This staff report outlines Wooddale Station LLC’s application for Tax Increment Financing (TIF) in connection with its proposed Wooddale Station Development. Policy consideration: Is the EDA willing to consider entering into a purchase and redevelopment contract to reimburse the Developer for up to $12.18 million in qualified costs through tax increment financing (TIF) generated by the project to enable it to achieve financial feasibility? Summary: Saturday Properties and Anderson Companies, collectively known as Wooddale Station LLC, (“Developer”) has a Preliminary Development Agreement with the EDA and city for the SWLRT Wooddale Ave. Station Site located at the northeast corner of Wooddale Ave. and 36th Street W. They also have a purchase agreement to acquire the neighboring property at 8502 36th St. W. Upon assembly of the properties, the Developer plans to construct a single- phase, mixed-use, mixed-income, sustainable, transit-oriented development with 60 affordable units that will be rent restricted below market rate for 25 years. The $88.7 million development would include the following components: •Two, six-story mixed-use buildings with a total of 297 multi-family units including 237 market rate units and 60 affordable units. Specifically, 10% (30) of the units would be affordable to households at 50% AMI and 10% (30) of the units would be affordable to households at 60% AMI. The inclusion of units at 50 percent of AMI would provide deeper affordability than required under the city's Inclusionary Housing Policy. •12,600 SF of commercial space and 3,500 SF of co-working/community space. •Underground parking linking the two buildings. •A 15,000 SF public plaza adjacent to the Wooddale Ave. Station for public events, site amenities, and public art. Financial or budget considerations: It is proposed that the EDA would sell its property located at 5950 W 36th St. to the Developer for $3 million. Due to considerable extraordinary costs associated with the redevelopment site and other costs associated with meeting city expectations and requirements, the Developer applied to the EDA for tax increment financing (TIF) assistance. Tax increment financing uses most of the increased property taxes, generated by a new development, to finance certain qualified costs incurred by that development for a limited period of time. Upon examination of the project’s pro forma, the EDA’s financial consultant determined that up to $12.18 million in TIF assistance is warranted to enable the major transit-oriented development to proceed. Such assistance would derive from the establishment of a new redevelopment TIF district and be provided via a pay-as-you-go TIF Note. 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 Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Study session meeting of November 22, 2021 (Item No. 5) Page 2 Title: Application for Tax Increment Financing Assistance – Wooddale Station Discussion Site information: The SWLRT Wooddale Ave. Station Site is located in the Elmwood neighborhood at the northeast corner of Wooddale Ave. and 36th Street W. It consists of two parcels, 5950 and 5802 W. 36th St., comprising a total of approximately 3.08 acres. 5950 W 36th St. is 1.78 acres and owned by the EDA. It is occupied by a vacant 16,700 SF commercial building (formerly occupied by the Nash Frame shop) and a municipal parking lot. The EDA entered into a Preliminary Development Contract with the Developers in February 2021 to redevelop the site. 5802 W 36th St. is 1.4 acres and is owned by Standal Properties. It is occupied by a one-story, multi-tenant commercial building, cell tower, and parking lot. The Developers have a purchase agreement with Standal Properties to acquire the site for $3.84 million. SWLRT Wooddale Avenue Station Site and adjacent property Study session meeting of November 22, 2021 (Item No. 5) Page 3 Title: Application for Tax Increment Financing Assistance – Wooddale Station Site area (acres): 3.08 acres Current use: Vacant building & municipal Surrounding land uses: parking lot. One-story, neighborhood commercial building, cell tower, surface parking lot North: SWLRT Wooddale Ave. Station East: Yosemite Ave. right-of-way / neighborhood commercial & Douglas Corp. South: 36th Street W. right-of-way / TowerLight Senior Living West: Wooddale Ave. right-of-way Current 2040 land use guidance Current zoning TOD - transit oriented development MX-1 vertical mixed use Proposed zoning PUD planned unit development Background: In August 2020, the EDA conducted a formal Request for Proposals (RFP) to solicit transit-oriented development proposals for the SWLRT Wooddale Avenue Station Site. The RFP envisioned the site to be an active, vibrant, and connected place where people can affordably live, work, and recreate with the opportunities and advantages of proximity to LRT. The site is expected to become an important community hub for mixed-income housing, neighborhood business, and transit including: • Affordable multifamily housing that exceeds the city’s Inclusionary Housing Policy requirements and facilitates multicultural and intergenerational living (i.e. includes larger size units); • Smaller scale, affordable, ground floor commercial spaces conducive for neighborhood businesses; • Attractive, bold and creative architecture; • Building and site designs that incorporate numerous “green” elements including renewable energy sources designed to achieve net zero carbon emissions at the site and serve as a showcase for environmental sustainability; • Numerous accommodations for pedestrians, bicyclists, transit riders, and automobiles, including electric bikes, electric vehicles, and possibly car sharing; • A public plaza and community space with unique community landmark and features; • High quality site amenities and public art; • Connections to nature through green features such as enhanced landscaping, green roofs, or living wall systems. The EDA also sought a development proposal that seamlessly integrates with the adjacent SWLRT Wooddale Avenue Station and connects to the surrounding Elmwood neighborhood. At the December 14, 2020 study session, the EDA determined Saturday Properties/Anderson Companies’ proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. Subsequently the EDA entered into a Preliminary Development Agreement with the Developers on Feb. 16, 2021. Study session meeting of November 22, 2021 (Item No. 5) Page 4 Title: Application for Tax Increment Financing Assistance – Wooddale Station Since that time, staff, the Developers, and the city’s financial advisor, Ehlers, have been working through the financial components of the proposal, specifically the extraordinary costs associated with the redevelopment site and other costs associated with meeting city’s expectations and requirements. The identification of these costs then led to the Developers’ application for tax increment financing. Present considerations: The Developers propose to construct a mixed-use, mixed-income, transit-oriented development with two, six-story mixed-use buildings linked together via underground parking. The development would include a total of 297 multi-family units, 12,600 SF of neighborhood commercial, and 3,500 SF of co-working/community space. The mixed income development would provide 237 market rate units and 60 affordable units. Also included in the development is a 15,000 SF public plaza located adjacent to the Wooddale Ave. Station providing hard and green space for community gatherings, landscaping, and public art. The project is designed to be open and welcoming to all. The development will be neighborhood-oriented with neighborhood commercial and spaces designed for residents and the public. The site will be designed for all users, and specifically pedestrians. Rendering of proposed Wooddale Station Development Wooddale Station would be a single-phased development with two mixed-use buildings connected via underground parking. The buildings include a combination of studio, alcove, one-, two-, and three-bedroom units. The unit mix would be as follows: Study session meeting of November 22, 2021 (Item No. 5) Page 5 Title: Application for Tax Increment Financing Assistance – Wooddale Station Unit Type Market Rate 50% AMI units Percent 50% AMI 60% AMI units Percent 60% AMI Total units Percent of total units Studio 45 6 20% 6 20% 57 19% Alcove 57 7 23% 7 23% 71 24% 1-bedroom 85 11 37% 11 37% 107 36% 2-bedroom 41 5 17% 5 17% 51 17% 3-bedroom 9 1 3% 1 3% 11 4% Total 237 30 100% 30 100% 297 100% Pending approval of planning entitlements and financing, the Developer plans to commence construction in early 2023 and complete construction by the end of 2024. The development team expects to own and operate the development for the long term, and Saturday Properties will be the project manager. Inclusionary housing: The proposed apartment development would be mixed-income with 237 units (80 percent) leasable at market rate, 30 units (10 percent) affordable to households at 50 percent of area median income (AMI), and 30 units (10 percent) affordable to households at 60 percent area median income. The inclusion of units at 50 percent of AMI would provide deeper affordability than required under the city's Inclusionary Housing Policy. The 60 affordable units would be designed with similar features as the market rate units and would be spread proportionally through the mix of unit types. The inclusionary housing units would have their rents restricted below market for 25 years. In addition, 20% of the units would be two bedrooms or larger to provide family sized housing units. Climate Action Plan: The Developer will adhere to the city’s Green Building Policy and will follow Enterprise Green Communities utilizing the Minnesota Overlay as its design criteria. The development will include a rooftop solar array and will likely include the following sustainable features: • Rooftop solar panels • Native plantings that are low irrigation and low maintenance • Diversion and recycling of construction and demolition waste • Low flow fixtures • Daylighting and views of spaces. • Electric vehicle charging stations • Bicycle parking • Parking for shared vehicles and car services • Underground stormwater system for rate control Given the above, the proposed development exceeds the city’s Green Building Policy requirements. Racial equity and inclusion: The mixed income development will provide equal access to new, quality housing including both market rate and affordable units. City staff will work with the development team to ensure they comply with the intent of the forthcoming Diversity, Equity, and Inclusion Policy. Study session meeting of November 22, 2021 (Item No. 5) Page 6 Title: Application for Tax Increment Financing Assistance – Wooddale Station The developer has hosted a neighborhood meeting with the Elmwood and Sorensen neighborhoods and has presented the development concept to the Human Rights Commission. Both meetings were well received. The developer also intends to have conversations with STEP, Perspectives, neighboring retail tenants, St. Louis Park elected officials, and more discussions with the neighborhood. The developer intends to build social capital through community engagement during the design process and events hosted on site and after construction completion. The developer will also provide a webpage where people can learn more about the project, contact them with questions, and stay informed during and after construction. Before construction the developer intends to host a pre-project informational meeting for subcontractors and venders to explain the overall scope of the project, and their potential specific, individual scopes of work. They would then solicit proposals from the subcontractors/ vendors that attended the informational meetings and other certified firms known to be active in the housing industry. The general carpentry/laborer requirements for the project (daily clean-up, traffic control, maintenance of safety installations, etc.) may also be well suited for a related labor pool that would work directly for Wooddale Station LLC and not through a sub or vendor. These opportunities will be investigated more thoroughly by the developer. Constructing mixed income housing near SWLRT provides residents the opportunity to utilize quick, convenient, and reliable transportation to work or recreational activities. The development is also immediately adjacent to the Cedar Lake LRT Regional Trail providing additional options to reach major destinations by bike or foot, and for recreational purposes. The Developer: St. Louis Park based-Saturday Properties and Anderson Companies both have considerable experience developing, constructing, and managing projects in the metro area. Saturday Properties is headquartered at 3546 Dakota Avenue, ½ mile from the Wooddale Station, while Anderson Companies is located one mile away from the Wooddale Station, at 3340 Republic Avenue. Brent Rogers, the owner of Saturday Properties, was instrumental in the development of TowerLight Senior Housing, located across the street from the Wooddale Station Site, and participated as a developer representative on St. Louis Park’s Form Based Zoning Code steering committee. Saturday Properties have recently developed and manage several successful mixed- use developments including the 171-unit Lime project and the 242-unit Blue project at Lyn-lake in Minneapolis, and Nolan Mains, a 100-unit marquee development with 34,000 square feet of commercial at 50th and France in Edina. Anderson Companies redeveloped the Reilly Tar Superfund site, which is now home to Davita Dialysis and Twin Cities Periodontics. Anderson Companies was also the Senior Project Manager for the renovation of the Historic Brookside School in St. Louis Park. They have been in business since 1999 and recently completed the Benedictine Living Community of Shakopee, and Lowa46 in Minneapolis. Application for Tax Increment Financing assistance: There are considerable extraordinary costs associated with the subject redevelopment properties. Specifically, the two structurally substandard, 1950's era buildings on site (containing asbestos) will need to be remediated and removed. Additionally, the site is environmentally challenged, requiring abatement and soil Study session meeting of November 22, 2021 (Item No. 5) Page 7 Title: Application for Tax Increment Financing Assistance – Wooddale Station remediation and the contaminated soil onsite must be removed and disposed off-site. These extraordinary redevelopment costs, along with the cost of structured parking, roof-top solar, a large public plaza adjacent to LRT, and 60 affordable units (with below market rents for 25 years) created a gap in the project’s proforma. The extent of these extraordinary costs adversely impacts the project’s pro forma to the point where it cannot achieve a reasonable market rate of return to attract financing. The Developer applied for $15 million in tax increment financing (TIF) assistance to offset the project’s gap. Tax increment financing uses most of the increased property taxes, generated by a new development, to finance certain qualified costs incurred by that development for a limited period of time. The EDA’s financial consultant, Ehlers, examined the information provided within the developer’s TIF application based on general industry standards for land, construction, and project costs; rents; operating expenses; fees; underwriting and financing criteria; and project cash flow. Based on this analysis, Ehlers and city staff determined the extent to which the proposed project exhibited a financial gap justifying the provision of TIF assistance was in an amount not to exceed $12,180,000. *It is estimated that the affordability impact over 25 years will amount to approximately $7 million or $117,000 per affordable unit. The estimated total development cost (TDC) to construct the proposed mixed-use, mixed income development is approximately $88.7 million or $298,860 per unit. Proposed level of assistance: The recommended level of assistance for the development was determined by analyzing its projected return on investment over the term of the TIF assistance. Ehlers concluded that tax increment assistance in the amount of $12.18 million over an anticipated term of eighteen years is necessary to make the project financially feasible. This level of assistance would offset enough of the extraordinary site costs and affordability impact to allow the proposed project to achieve a rate of return sufficient to attract investors thereby enabling it to proceed. The Developer has indicated the recommended level of assistance is acceptable. TIF Eligible Expenses Amount ($) Building demolition and disposal $190,000 Soil mitigation, removal, and earthwork $350,000 Site Prep/Utilities/Landscape $690,000 Stormwater $340,000 Structured Parking $13,213,000 Total TIF Eligible Expenses $14,783,000 Other Project Specific Extraordinary Expenses Sustainability Impact (per Green Building Policy) $1,783,500 Public Plaza (per Council approved RFP goals) $2,580,000 Affordable Impact* (per Inclusionary Housing Policy) $7,009,502 Total Other Extraordinary Costs $11,373,002 TIF Requested by Developer $15,000,000 TIF Assistance Recommended (not to exceed) $12,180,000 Study session meeting of November 22, 2021 (Item No. 5) Page 8 Title: Application for Tax Increment Financing Assistance – Wooddale Station Consistent with previous EDA redevelopment agreements, a "lookback" provision would be incorporated into the redevelopment contract with the Developer. Under the contract, Wooddale Station LLC would be required to submit verified final project costs and reports detailing the actual financial performance of the development. The lookback analysis ensures that if the project’s total development costs are appreciably lower and/or the development’s net operating income is appreciably higher than the estimates provided, the EDA would share economically in the success of the project by reducing the amount of TIF assistance provided. Financing structure: The Developer anticipates using a conventional 30-year mortgage at an interest rate of 4.00%. Moreover, Wooddale Station LLC has proposed to finance the project with a construction mortgage that is roughly 61% of the total development cost. Based on current underwriting conditions, it appears the Developer is maximizing its construction mortgage. Wooddale Station LLC will bring about $19,939,229 in equity which is roughly 22.5% of the total development costs. City staff will also assist with applications for local and public grants to offset the total development costs to the extent possible. The proposed financing terms and developer fee are typical and reasonable for a project of this nature. Land Acquisition: Wooddale Station LLC intends to acquire two parcels located at 5802 and 5950 and 5802 W. 36th Street. 5802 W 36th Street is owned by Standal Properties, whereas 5950 W 36th Street is owned by the EDA. The Developer would acquire the Standal Properties parcel for $3.84 million and the EDA parcel for $3 million, which would be paid in full at closing. While land acquisition for projects has varied over the years in the city, the average acquisition price per unit has been approximately $24,500 per unit. TIF Note: The Wooddale Station Development will take approximately 18-24 months to construct. It is anticipated that the first increment would be paid in 2025. Given current estimates of market value, it is estimated that a $12.18 million TIF Note would be paid off in approximately eighteen years (on a net present value basis). This term exceeds the 15-year guideline in the city’s TIF Policy however the Developer’s willingness to assume the $2.58 million cost to construct and finance the public plaza is considered a mitigating circumstance justifying the slightly longer term. Payments on the Note would be made on a "pay-as-you-go" basis, which means that as the Developer pays the project’s property taxes, a portion of those taxes (the “tax increment”) are paid back biannually to the Developer under the terms of the TIF Note. Thus, payments to the Developer will only be made as the project’s property taxes are received. This is the preferred financing method under the city's TIF Policy. TIF district: The tax increment to be provided to the proposed Wooddale Station Development would derive from a newly established redevelopment TIF district. The proposed Wooddale Station South TIF District would include two parcels: 5950 and 5802 36th Street W. along with adjacent rights of way. The 5950 36th Street W parcel is parcel is currently included in the Wooddale Station TIF District. Prior to the establishment of the new TIF district this parcel will need to be eliminated from that TIF District. The new redevelopment TIF district would allow for up to 26 years of tax increment by state statute. Consulting firm LHB conducted a TIF district feasibility analysis for 5950 W 36th Street to determine if the proposed TIF district for the Wooddale Station Development qualified as a redevelopment district. After inspecting the subject property, LHB evaluated it against current statutory criteria and concluded that the EDA’s site would quality as a redevelopment TIF Study session meeting of November 22, 2021 (Item No. 5) Page 9 Title: Application for Tax Increment Financing Assistance – Wooddale Station district. LHB conducted a preliminary feasibility analysis for 5802 W 36th Street in November 2021 and will be completing their analysis of the building in the coming weeks. LHB anticipates the entire site will qualify as a redevelopment district. TIF district plan: It is recommended that the TIF Plan for the proposed TIF district authorize the use of tax increment generated by the District to help pay for certain qualifying project expenses and capital improvements associated with the District should they subsequently be proven necessary. Property value and taxes: The current taxable market value of the subject redevelopment property is just over $6.5 million. This would be the proposed TIF district’s Base Value. The estimated market value of the property upon the proposed development’s completion (for TIF estimation purposes) is estimated at approximately $77.5 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 Developer until it is paid off. It is estimated that the development would generate nearly $1.2 million in annual property taxes upon completion and full occupancy. The city, county and school district would continue to receive property taxes collected on the subject site’s Base Value. Analysis of development’s conformity with the city’s TIF Policy: The following table lists the objectives, qualifications, and guidelines for the use of tax increment financing as specified in the city’s TIF Policy, as well as how and whether the proposed development meets the majority of those standards. TIF Policy Compliance Table Factor Requirement/Guideline Proposed Project Met? Applicable TIF District Redevelopment/Renewal & Renovation/ Housing/Economic Development Redevelopment Yes Statutory TIF district requirements Redevelopment District (example) 70% site coverage, More than 50% of bldgs structurally substandard & are reasonably distributed LHB found 5950 36th St. W to qualify as a redevelopment TIF district. LHB’s initial findings show 5802 36th St. W to quality as a redevelopment TIF district. LHB will be finalizing its analysis in the coming weeks. Anticipated yes Use of TIF Proposed costs are statutorily eligible for reimbursement through proposed TIF district. Proposed uses of tax increment are statutorily eligible through redevelopment TIF districts. Yes TIF Objectives TIF Policy requires projects to meet over half of the applicable objectives for use of TIF. Project meets all applicable Policy objectives. Yes Minimum qualifications Applicable Strategic Priorities Proposed project provides broad range of housing and neighborhood- oriented development. Yes Meets Green Building Policy requirements Development will exceed Green Bldg Policy requirements. Yes Meets Inclusionary Housing Policy requirements (if applicable) Development will exceed Inclusionary Housing Policy requirements. Yes Study session meeting of November 22, 2021 (Item No. 5) Page 10 Title: Application for Tax Increment Financing Assistance – Wooddale Station Meets Diversity, Equity, and Inclusion Policy The Developer’s construction practices, and ongoing management will meet 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 necessary documentation to evaluate proposed project and TIF request. Yes Determined not financially feasible "but-for" the use of tax increment financing Ehlers determined 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 Saturday Properties will remain the property manager. 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) 30 units will have rents affordable to households at 50% AMI Yes Provides units for larger families (i.e., 3- & 4-bedroom units (if applicable) Eleven 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, commercial businesses, public amenities, and public art Yes Proposed development will likely stimulate further investment in surrounding area/neighborhood Project will stimulate additional development along 36th Street and in the surrounding Wooddale Station area Yes Study session meeting of November 22, 2021 (Item No. 5) Page 11 Title: Application for Tax Increment Financing Assistance – Wooddale Station Provides new, or retained, employment (if applicable) An estimated 39-59 jobs will be created by project’s commercial businesses. 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 12 times the original market value. Yes Will have a positive community impact Proposed project will have a significant positive impact on the area. Yes Will not place extraordinary demands on city services City departments determined proposed project will not place extraordinary demands on city services. Yes Land price for project site is within market range. Land price for project site is within market range. Yes Ratio of private to city investment (TIF and grants) is more than $5 to $1 Proposed private to city investment is nearly $6 to $1. The proposed amount of TIF assistance or term of the TIF Note is within range of similar developments which received TIF assistance. The proposed amount of TIF assistance reflects the higher amount of extraordinary costs, including the cost of more affordable units, a more sustainable building, and a large public plaza and courtyard adjacent to SWLRT. 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 Given that the proposed development meets statutory requirements, as well as all objectives, qualifications and guidelines as specified in the TIF Policy, staff finds Wooddale Station LLC’s request for TIF assistance meets the EDA’s requirements for the use of tax increment financing. Summary and recommendation: Based upon its analysis of the project’s proforma, Ehlers determined that the proposed Wooddale Station 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 developer up to $12.18 million in TIF assistance to facilitate the proposed mixed-use, mixed-income, transit-oriented development. The assistance would be provided on a pay-as-you-go basis from tax increment generated by the project. The term of the proposed TIF Note would be paid off in approximately eighteen years. Such assistance would derive from a new redevelopment TIF district and be provided upon completion and stabilization of the proposed project. In summary, providing tax increment financing assistance to the proposed Wooddale Station Development makes it possible to: • Redevelop property with a structurally substandard building that is underutilized and environmentally impacted property near a multi-modal transit location within the city. • Provide the city with a major mixed use, mixed income, transit-oriented development consistent the city’s strategic priorities, comprehensive plan, the Elmwood Area Land Use and Transportation Plan, and the Wooddale Station Redevelopment RFP. Study session meeting of November 22, 2021 (Item No. 5) Page 12 Title: Application for Tax Increment Financing Assistance – Wooddale Station • Spur additional investment along 36th Street and adjacent to the SWLRT Wooddale Ave. Station. • Further diversify the city’s housing stock with 297 new multifamily housing units adjacent to multi-modal transportation. • Add 30 housing units that would be affordable to households at 50% AMI, and 30 housing units that would be affordable to households at 60% AMI. The 60 reduced-rent units would be kept affordable for at least 25 years. • 20 percent of the units would be two-bedrooms or larger, with 11 three-bedrooms units to accommodate larger families. • Add approximately 12,600 square feet of new neighborhood commercial development to accommodate local businesses benefitting the surrounding area as well as the adjacent local and regional trail and light rail. • Provide a large public plaza for community gatherings and public art along with indoor space that would be made available for neighborhood meetings/gatherings. • Include numerous green building features including on-site, roof top solar as well as accommodations for bicycles and electric charging stations. • Facilitate approximately $89.3 million of new investment and create 39-59 new jobs further invigorating the Beltline area. • Bring the subject property to optimal market value and generate nearly $1.2 million in annual property taxes further adding to the city’s tax capacity and economic vitality. • Construct a quality building (e.g. sound architectural design, class materials I materials and quality construction) that will substantially enhance the development site’s aesthetics and provide aesthetically pleasing landscape as well as other site features. Given these findings, staff supports providing TIF assistance to the Wooddale Station Development as outlined to enable it to proceed. Next steps: Provided the EDA is supportive of facilitating the proposed development with tax increment assistance at the recommended level, the next steps in the TIF approval process would be as follows: 1. Schedule public hearing date for establishment of the proposed TIF district. 2. Negotiation and review of business terms for the provision of tax increment assistance. 3. Finding that the sale of property is consistent with the comprehensive plan – planning commission. 4. Elimination of 5950 36th Street W property from Wooddale Station TIF District – EDA. 5. Consideration of TIF district plan – EDA . 6. Hold public hearing on the establishment of the TIF District – city council. 7. Consideration of redevelopment contract – EDA. In addition, the Developer will be applying for several land use and zoning entitlements, including a preliminary and final plat to create one buildable lot, and a preliminary and final planned unit development to establish the zoning for the site. A neighborhood meeting was held in February 2021 and additional neighborhood and local meetings will be held as part of the planning process. Meeting: Study session Meeting date: November 22, 2021 Written report: 6 Executive summary Title: Aldersgate resolution of support for Minnesota Housing Finance Recommended action: No action at this time. Staff will bring the resolution of support for the bond application on the Dec. 6, 2021 consent agenda. Policy consideration: Does the city council support Real Estate Equities’ application for housing facility revenue bonds? Summary: Real Estate Equities has requested city council pass a resolution of support for an application for housing facility revenue bonds for redevelopment of the Aldersgate Church site (3801 Wooddale Avenue). The bonds would help finance construction of a proposed 114-unit multifamily rental housing building and facilities functionally related, to be located in the city for occupancy by individuals and families of low and moderate income. The multifamily housing revenue bonds would be issued in a maximum amount not to exceed $19,200,000. This is the first step of the process for Real Estate Equities LLC to secure an allocation of housing bonds from Minnesota Management and Budget (MMB). If the council approves to serve as the conduit for these bonds, Real Estate Equities LLC will submit an application to MMB by Jan. 1, 2022. City council support for the MMB application does not signal or obligate the city to support any planning and zoning applications required for the development, nor financial assistance, and action on this request should not be construed as such. Financial or budget considerations: Issuance of these bonds would not impact the city’s debt capacity, would not constitute a general or moral obligation of the city, and would not be secured by the taxing powers of the city or any assets or property of the city. If the financing goes forward, Real Estate Equities LLC will pay an administration fee in the amount of 1/8th of 1% (.125%) of the outstanding principal of the bonds. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: None Prepared by: Jacquelyn Kramer, associate planner Melanie Schmitt, chief financial officer Reviewed by: Karen Barton, community development director Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Meeting: Study session Meeting date: November 22, 2021 Written report: 7 Executive summary Title: West Metro Home Remodeling Fair Joint Powers Agreement Recommended action: No action required at this time. This report is being provided to inform council of the West Metro Home Remodeling Fair Joint Powers Agreement in preparation for the council report and resolution scheduled for Dec. 6, 2021. Policy consideration: Does the city council support entering into a Joint Powers Agreement for the West Metro Home Remodeling Fair? Summary: The West Metro Home Remodeling Fair is a free event sponsored by the Cities of Golden Valley, St. Louis Park, and Minnetonka, as well as Hopkins and St. Louis Park Community Education. The goal is to provide residents with ideas, information, and resources to promote improvements to housing in each community. The fair features a wide variety of exhibitors with products and services related to home improvement, including remodeling contractors, architects, landscapers, financial lenders, and more. City inspectors and zoning staff are also on hand to answer questions about permits and other project requirements. The West Metro Home Remodeling Fair began in 1993. The fair is held at the Eisenhower Community Center annually with the exception of 2021. Prior to 2015, there were no formal agreements in place related to the fair. The committee and leadership from the cities and schools determined a more formal agreement was needed in relation to the finances. The City of St. Louis Park has been the fiscal agent since November 2015 for the 2016 fair. The city managers of the participating cities had further discussions over the years and requested a more formal partnership be outlined in a Joint Powers Agreement (JPA). The JPA was drafted by the Golden Valley City Attorney, Maria Cisneros. Exhibit A to the JPA is intentionally left blank and will be updated on an annual basis as outlined in the JPA. Financial or budget considerations: Fair operations shall be financed from funds and resources collected from vendor registration fees of other grants or donations. The fair shall be self- sustaining without the need for monetary contributions from the participants. If the need for monetary contributions arises the participating cities and school districts will agree in writing to the terms of such contributions. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Joint Powers Agreement for West Metro Home Remodeling Fair Prepared by: Marney Olson, housing supervisor Reviewed by: Michele Schnitker, housing manager/deputy community development director Karen Barton, community development director Approved by: Cindy Walsh, interim deputy city manager/operations and recreation director Study session meeting of November 22, 2021 (Item No. 7) Page 2 Title: West Metro Home Remodeling Fair Joint Powers Agreement Joint Powers Agreement Between Golden Valley, Minnetonka, Saint Louis Park, Hopkins Community Education, and Saint Louis Park Community Education for West Metro Home Remodeling Fair This Joint Powers Agreement (“Agreement”) is made by and between the City of Golden Valley (“Golden Valley”), the City of Minnetonka (“Minnetonka”), the City of Saint Louis Park (“St. Louis Park”), Hopkins Community Education (“Hopkins Community Ed.”), and Saint Louis Park Community Education (“St. Louis Park Community Ed.”) (referred to herein as the “Party” or “Participant” individually, and collectively as the “Parties” or “Participants”) and effective as of ________________, 2021. RECITALS 1.The Parties are units of government responsible for housing and redevelopment and community education in their respective communities. 2.The Parties desire to jointly host an annual West Metro Home Remodeling Fair (the “Fair”). 3.The goal of the Fair is to provide residents with ideas, information, and resources to promote improvements to housing in the participating communities. The Fair features a wide variety of exhibitors with products and services related to home improvement, including remodeling contractors, architects, landscapers, financial lenders, and City inspectors. 4.The Parties believe the Fair serves an important purpose in the community by encouraging reinvestment in the existing housing stock and providing information to residents regarding local home remodeling resources and opportunities. 5.The Parties wish to reinforce their positive and collaborative relationship by entering into this Agreement. TERMS OF UNDERSTANDING 1.Purpose. The Parties wish to host the Fair annually to promote improvements to housing and provide community education opportunities in the participating communities. 2.Authority. The Parties enter into this Agreement pursuant to the provisions of Minnesota Statutes, section 471.59. 3.The Participants. a.Participation. The Parties shall be the initial Participants. Additional governmental entities may become a Participant upon approval by all of the then existing Participants and execution by the new entity of this Agreement. Study session meeting of November 22, 2021 (Item No. 7) Page 3 Title: West Metro Home Remodeling Fair Joint Powers Agreement b. Change in Participation. i. Any Participant may withdraw from this Agreement upon 30 days’ written notice. ii. The Participants may involuntarily terminate a Participant for any reason upon an affirmative vote of a majority of the then existing Participants. A withdrawing or involuntarily terminated party is entitled to the return of its own property, but is not entitled to any share or portion of Fair funds or assets. In the event of withdrawal or involuntary termination by any member, this Agreement shall remain in full force and effect as to all remaining members. 4. The Parties’ Roles and Responsibilities. The Participants agree to assume the roles and responsibilities set forth in the attached Exhibit A. Each year no later than November first, the Participants shall prepare an updated Exhibit A setting forth the Fair location and each Participant’s obligations for the upcoming year. Updates to Exhibit A shall not require the approval of the Participants’ governing bodies, but all such updates shall be agreed upon by staff annually and filed with the Fair’s official records. 5. Administration. The Participants shall meet at least once annually to discuss work completed during the past year, work proposed for the following year, and any proposed changes to this Agreement or Exhibit A. The Participants agree that records created pursuant to this Agreement shall be retained in a manner that meets each Participant’s respective records retention schedule and shall be subject to the Minnesota Government Data Practices Act. 6. Funding and Finances. a. Fair operations shall be financed from funds and resources collected from vendor registration fees or other grants or donations. The Fair shall be self-sustaining without the need for monetary contributions from the Participants. If the need for monetary contributions arises, no Participant shall be required to contribute funds unless all Participants have agreed in writing to the terms of such contributions. b. St. Louis Park shall serve as the Fair’s fiscal agent and shall be responsible for the following tasks: 1. Serve as the sole administrator of all funds contributed by the Participants or otherwise received to support the Fair, and in such capacity receive all funds for deposit and make disbursements therefrom; 2. Accept grants and donations on behalf of the Fair; 3. Maintain current and accurate records of all obligations and expenditures of Fair funds in accordance with fiscal agent policy and generally accepted accounting principles; 4. Enter into agreements on behalf of the Fair; 5. Prepare regular financial reports as relevant for the duration of the planning, execution, and follow-up of the Fair and disseminate them to the Participants; and 6. Prepare annual financial reports which include the following information: a. The financial condition of the Fair b. The status of all Fair projects c. The business transacted by the Fair Study session meeting of November 22, 2021 (Item No. 7) Page 4 Title: West Metro Home Remodeling Fair Joint Powers Agreement d. Other matters related to the Fair that affect the interests of the Parties. c. The Participants shall each provide all salary, compensation, and benefits to their separate employees. 7. Limitation of Liability. To the fullest extent permitted by law, actions by the Participants pursuant to this Agreement are intended to be and shall be construed as a “cooperative activity,” and it is the intent of the Participants that they shall be deemed a “single governmental unit” for the purposes of liability, all as set forth in Minn. Stat. Section 471.59, Subd. 1a(a). Each Participant agrees that it will be responsible for its own acts and the acts of its employees and any liability resulting therefrom to the extent authorized by law and, for purposes of §471.59, each Participant expressly declines responsibility for the acts or omissions of any other Participant. 8. Insurance. Each Participant acknowledges and agrees that it is insured or self-insured consistent with the requirements of Minnesota law. Each Participant agrees to promptly notify all other Participants if it becomes aware of any potential claims related to the Fair. 9. Term. This Agreement shall continue until terminated in the manner provided herein. 10. Termination. a. This Agreement may terminate upon the occurrence of any one of the following events, whichever occurs first: i. When necessary due to failure to obtain necessary funding from the Participants; or ii. When a majority of Participants agree to terminate the Agreement upon a certain date. b. Upon termination of this Agreement, the Participants shall provide for the distribution of all Fair funds and assets in the following manner: i. The Parties may determine to sell and liquidate non-monetary assets prior to distribution; and ii. Assets and funds shall be distributed to the Participants in proportion to their contributions. Property owned by the Participants shall be returned to the owner upon termination. A Participant who ceases participation prior to termination of this Agreement is entitled to the return of its own property, but is not entitled to any share or portion of Fair funds or assets. 11. Amendment. The Participants may amend this Agreement by mutual written agreement. Any such amendment shall only be effective if duly executed by the authorized representatives of each Participant. 12. Applicable Law and Venue. The laws of the State of Minnesota shall govern the interpretation and enforcement of this Agreement and any actions arising out of or relating to this Agreement shall be brought in Hennepin County District Court in the state of Minnesota. Study session meeting of November 22, 2021 (Item No. 7) Page 5 Title: West Metro Home Remodeling Fair Joint Powers Agreement Executed the day and year first above written, by the parties as follows: CITY OF GOLDEN VALLEY: CITY OF MINNETONKA: By: _________________________________ Shepard M. Harris, Mayor By: _________________________________ Brad Wiersum, Mayor By: _________________________________ Timothy J. Cruikshank, City Manager By: _________________________________ Mike Funk, Acting City Manager CITY OF SAINT LOUIS PARK: HOPKINS COMMUNITY EDUCATION: By: _________________________________ Jake Spano, Mayor By: _________________________________ Rhoda Mhiripiri-Reed, Superintendent By: _________________________________ Kim Keller, City Manager By: _________________________________ Jen Bouchard, School Board Chair ST. LOUIS PARK COMMUNITY EDUCATION: By: _________________________________ Astein Osei, Superintendent By: _________________________________ Mary Tomback, School Board Chair Study session meeting of November 22, 2021 (Item No. 7) Page 6 Title: West Metro Home Remodeling Fair Joint Powers Agreement Exhibit A Roles & Responsibilities Event Date Event Location Task Responsible Party Provide at least one staff member to work at the Home Remodeling Fair on the day of the event (duties assigned in advance) Graphic design Marketing – i.e. sharing social media posts, City newsletters, Community Ed brochures, electronic billboards, and other platforms Signage printing (rotate printing of new signage) Coordinate and recruit volunteers Site operations – need to determine need for Saturday set up; phase out for Jigsaw to take over in the future City/School District booths Event weekend tech support and café coordination Reserve officers to assist with parking and other day of event duties Idea Center Seminars Operation Rescue Room Photography on event day Videography to record seminars on event day Develop ideas for articles for the website Special Circumstances: