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HomeMy WebLinkAbout2022/02/14 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA FEB. 14, 2022 The St. Louis Park City Council will hold its meeting on Feb. 14, 2022 via interactive technology/ videoconferencing. Pursuant to Minn. Stat. § 13D.021, subd. 1, and Resolution No. 22-018, the city manager and the city council have determined that an in-person meeting of the St. Louis Park City Council is not practical or prudent because of the COVID-19 health pandemic, and the surge of the Omicron variant. Due to the measures necessary to contain and mitigate the impacts of the pandemic, it has been determined that attendance at the regular meeting location by members of the public is not feasible and that the physical presence at the regular meeting location by at least one member of the body, chief legal counsel, or chief administrative officer is not feasible. All members of the St. Louis Park City Council will participate in the Feb. 14, 2022 study session by electronic device or telephone rather than by being personally present at the city council's regular meeting place at 5005 Minnetonka Blvd. Cisco Webex will be used to conduct videoconference meetings of the city council, with council members and staff participating from multiple locations. Members of the public can monitor the meeting via webstream at bit.ly/watchslpcouncil and on local cable (Comcast SD channel 17 and HD channel 859), or by calling +1-312-535-8110 meeting number (access code): 372 106 61 for audio only. Visit bit.ly/slpccagendas to view the agenda and reports. 6:30 p.m. STUDY SESSION – council chambers Discussion items 1. 20 min. Discover St. Louis Park (DSLP) update 2. 30 min. COVID-19 update 3. 60 min. Federal issues in legislative priorities 5 m in. Communications/updates (verbal) W ritten reports 4 Proposed allocation of 2022 Community Development Block Grant (CDBG) funds 5. Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available after noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952.924 .2525. Meeting: Study session Meeting date: February 14, 2022 Discussion item : 1 Executive summary Title: Discover St. Louis Park (DSLP) update Recommended action: No action required. Becky Bakken, President & CEO of Discover St. Louis Park, will be in attendance to provide an annual update on the activities of our destination marketing organization. Summary: Every year DSLP prepares an annual report on the state of the local tourism industry, their activities , and results. Bakken will present a short annual review and answer any questions. Attached is a copy of the 2021 Year-End Presentation. The challenges the pandemic dealt the hospitality and tourism industry continued in 2021. As you will see in the presentation, the year continued to be challenging for DSLP and the entire sector. The hospitality/tourism industry continues to benchmark itself against 2019. For DSLP the year ended with revenues down 49% over 2019. This is an improvement over 2020 when revenues were down 72%. With the help of grants from a variety of sources, cutting expenses and pivoting its focus to remain vital, DSLP is well positioned to effectively market and promote the area. The efforts of DSLP will ensure a timelier and more aggressive economic comeback as things emerge. Per DSLP’s by-laws, the mayor and city manager have permanent seats on the DSLP board. Financial or budget considerations: Pursuant to state law (M.S. 469.190) a 3% lodging tax is collected on applicable short-short term rentals. The city retains five percent of the lodging tax proceeds collected each month. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: 2021 DSLP YE power point presentation 2021 YE summary Prepared by: Debbie Fischer, administrative services office assistant Reviewed by: Cindy Walsh, deputy city manager/operations and recreation director 11 Around here, life is SWEET! Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 2 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 3 A Destination Marketing Organization Representing St. Louis Park and Golden Valley Discover St. Louis Park’s mission is to strengthen the awareness of St. Louis Park and Golden Valley as a prime meeting and visitor destination, stimulate economic development and support community growth through tourism. Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 4 M.S. 469.190 Local Lodging Tax Ninety-five percent of the gross proceeds from any tax imposed under subdivision 1 shall be used by the statutory or home rule charter city or town to fund a local convention or tourism bureau for the purpose of marketing and promoting the city or town as a tourist or convention center. Minnesota State Statute Discover St. Louis Park is a non-profit organization 501 (c) 6, governed by a board of directors. Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 5 Tourism in Minnesota - 2019 2019 = Banner Year $16.6 billion in gross sales a year 275,000 Minnesota jobs 6.4 billion in wages 18% of all MN sales taxes To fund roads, parks and trails, bridges The average MN household would owe an additional $625 without the tax revenue generated by travel and tourism 11 billion or 70% of all MN tourism revenues were in the metro region. What would 2020 look like? Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 6 Tourism in Minnesota -2020 2020 Travel Spending in MN decreased 8.6 billion (Nearly half of 2019) Hospitality Employment decreased 73,000 (-27%) Hospitality Employment Losses by Sector (2020) •Food & Drink •Accommodations •Arts, Entertainment, Recreation •Total Private Sector (for comparison) Leisure travel is likely to lead the recovery. It is expected to recover more quickly and outperform business travel. -23% -37% -36% -7% Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 7 •Tourism generated $22 million in lodging spending in 2021 and another $88 million in visitor spending throughout our communities. •Tourism will continue to be key to our economic recovery. It employs a high volume of people and supports existing businesses, while stimulating the development of new business and event opportunity. 7 Economic Impact 2021 25% 20% 16% 16% 16% 7% Travel Spending by Sector Food & Beverage Lodging Retail Transportation Recreation Other Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 8 Nine Hotel Properties We track the performance of Discover St. Louis Park hotels on a monthly basis: •AC Hotel by Marriott West End •Courtyard by Marriott Minneapolis West •DoubleTree by Hilton Minneapolis-Park Place •Holiday Inn Express-Golden Valley •Homewood Suites by Hilton West End •Minneapolis Marriott West •Ramada Minneapolis Golden Valley •SpringHill Suites by Marriott-Minneapolis West •TownePlace Suites Minneapolis West 8 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 9 Definitions Occupancy Rooms sold divided by rooms available multiplied by 100. Occupancy is alwaysexpressed as a percentage of rooms occupied. Average Daily Rate (ADR) Room revenue divided by rooms sold, displayed as the average rental rate for a single room. Revenue Per Available Room (RevPAR) Room revenue divided by rooms available. Supply The number of rooms times the number of days in the period. Demand The number of rooms sold or rented (excludes complimentary rooms). Revenue Total room revenue generated from the sale or rental of rooms. 9 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 10 •Hotel occupancy fell by 16% (down 8%) from November, down 10% from December of 2019. Hot el occupancy levels reached recovery levels for the second straight month, at 90% of occupancy in December of 2019. •ADR saw a 5% decrease ($11) from November, down 5% from December of 2019. ADR has rebounded more quickly than any other hotel metric, maintaining recovery levels for the fifth month in a row •RevPAR also decreased from the month prior, down 20% ($11), and down 15% from December 2019. RevPAR will be the slowest to recover, however has maintained recovery levels for the second straight month •DSLP occupancy continued to outperform Minneapolis, but lagged the US average and state of MN •DSLP’s YTD metrics saw a more than 65% increase for the year from 2020 •YTD metrics for DSLP are down less than 50% of 2019 among all metrics, recovering more quickly than Minneapolis, but lagging the broader metro slightly YE Summary 10 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 11 Occupancy 50%59%64%73%74%80%79%81%76%73%57%47%68%47%57%27%11%14%21%23%28%27%26%19%14%26%16%19%27%38%43%56%58%57%55%53%50%42%43%Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2019 2020 2021 11 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 12 Occupancy –Indexed to 2019 12DepressionRecessionRecovery0 10 20 30 40 50 60 70 80 90 100 110 Occupancy at nearly 90% of 2019 performance for second month 2019 OCCUPANCY Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 13 Occupancy –Monthly Comparison 2020 & 2021 13 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% U.S.Minnesota MSP Metro Minneapolis DSLP Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 14 Average Daily Rate (ADR)$117$114$114$149$125$138$138$132$138$135$120$112$129$118$119$113$83$87$91$96$93$89$89$88$80$101$83$86$87$96$97$108$112$121$116$113$111$106$107Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD201920202021 14 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 15 ADR –Indexed to 2019 15DepressionRecessionRecovery0 10 20 30 40 50 60 70 80 90 100 110 Sixth month with ADR levels at 80+% of 2019 rates, Dec ADR at 95% of 2019 2019 ADR Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 16 Revenue Per Available Room $58$67$73$109$92$111$108$107$105$98$68$52$87$55$68$30$9$12$19$22$26$24$23$17$11$26$13$16$24$36$42$61$65$69$63$59$56$44$46Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD201920202021 16 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 17 REVPAR –Indexed to 2019 17DepressionRecessionRecovery0 10 20 30 40 50 60 70 80 90 100 110 2019 ADR RevPAR above 80% of 2019 levels for second month Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 18 Demand 21,06922,35627,17529,81531,02732,82333,13134,17931,10130,69423,11719,67133,616 19,77021,79911,3014,1135,9738,5699,49711,62810,94210,8337,9325,97712,832 6,7447,25711,57015,52618,03623,01924,40924,22122,34222,22620,41717,65221,339Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD201920202021 18 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 19 19 - 20,000.00 40,000.00 60,000.00 80,000.00 100,000.00 120,000.00 2014 2015 2016 2017 2018 2019 2020 2021 DSLP Lodging Tax SLP Summary Collection began in March of 2011 Inventory was relatively consistent through 2017 Two hotels (268 hotel rooms) were added in 2018 Seven Hotels / 1,117 Rooms Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 20 DSLP DSLP Lodging Tax GV SummarySummary 20 Collection began in January 2017 Two Hotels / 244 Rooms 0 5000 10000 15000 20000 25000 2017 2018 2019 2020 2021 Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 21 DSLP Lodging Tax Summary $357,289 $805,421 $828,223 $860,761 $978,573 $1,226,779 $1,268,411 $645,071 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 2014 2015 2016 2017 2018 2019 2020 2021 +32,538 +117,812 21 -911,122+59,172 +22,802 +207,389 +42,067 28% +287,782 51% Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 22 2021 Year-End Summary Lodging Tax Up (+$157,000) •51% of 2019 Operating Expenses Down 2019: $705,991 2020: $241,305 2021: $192,500 2022: $313,000 (budgeted) Grant Income PPP CARES Act ERTC Am. Recovery Act EMT TOTAL $73,590 $85,000 $15,545 $15,000 $21,000 $210,135 Increased Program Spend ($93,000 over budget) Strong Cash Position Reserve Account: $216,000 Maintained Relationships •Community centric •Community vibrancy •More representative of our mission •Enhanced sales tool Deepened Connections New Website Program Expenses Perspective: Compared to Budget Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 23 2022 Goals 23% increase over 2021 Recovery Represented by using 2019 numbers for the hopsitality industry. Program Spending Lodging Tax Revenue 2020 Lodging Tax - 28% 2021 Lodging Tax Budget - 38% 2021 Lodging Tax Actual - 51% 2022 Lodging Tax Budget - 58% Additional Employee Business Development Director Q1 Featured Goals •Return to trade shows / Fully re-engage with partners •Deepen relationships (grants & rebates) •Leverage group interest in the suburbs •Social outings for hotel teams at area venues •Enhance economic impact by keeping visitor spending within our community •New website that fully serves and wows •Enhanced use of social media •Reflect community vibrancy •Partnerships – planner groups, lead distributors, Explore Minnesota Tourism, Hospitality MN, US Travel, and other metro-area DMO’s (specifically Meet Minneapolis and Sports Minneapolis) •Utilize influencers •Google Business / DMO Program Study session meeting of February 14, 2022 (Item No. 1) Title: Discover St. Louis Park (DSLP) update Page 24 Meeting: Study session Meeting date: February 14, 2022 Discussion item : 2 Executive summary Title: COVID-19 update Recommended action: Discuss options regarding current COVID-19 emergency policies Policy consideration: Is the council amenable to allowing the current emergency ordinance related to face coverings and resolution related to remote meetings of public bodies to expire at 11:59 p.m. on Feb . 22, 2022? Summary: On Jan. 18, 2022, the city council enacted two emergency policies to address and mitigate the surge of COVID-19 cases due to the Omicron variant. Both policies are scheduled to expire, without further action by the council, at 11:59 p.m. on Feb . 22, 2022. The cou ncil can decide to extend one or both emergency measures or council can choose to let both expire. If council is interested in an extension, action would need to be taken at the regular meeting on Feb. 22, 2022. Following adoption of emergency ordinance no. 2642-22 establishing a face covering requirement, city staff implemented procedures to educate the public and business community and achieve voluntary compliance. Inspectors, emergency dispatch staff, and front desk staff all worked with community members to resolve questions and address compliance issues. Compliance and enforcement data is included in this report. Following a COVID-19 situation update, staff also prepared a summary of data related to the current 7-day trends of key metrics, including cases rates, hospital capacity, and deaths collected on Feb. 10. Resolution no. 22-018 detailed findings related to the impact of the surge of the Omicron variant and declared that all meetings of the city council and city advisory boards and commissions be conducted remotely under the authority and requirements of Minn. Stat. 13D.021. Since adoption of the resolution, three (3) advisory boards and commissions have conducted meetings remotely, with two (2) additional commissions scheduled to meet remotely during the week of Feb. 14. Staff is in the process of soliciting feedback from board and commission members about their level of comfort with returning to in person meetings and what the city could do, if anything, to mitigate any ongoing health/safety concerns they may have. This information will be shared with council at the meeting. Staff is prepared to facilitate a return to in -person meetings when the existing resolution expires. Financial or budget considerations: Staff time was used to educate the community, respond to complaints and to inspect local compliance with the emergency ordinance. Costs associated with producing and printing public education materials were also incurred. Additional staffing costs were also incurred to facilitate remote meetings of public bodies. Strategic priority consideration: Not applicable. Supporting documents: Discussion Prepared by: Michael Sund, elections specialist Reviewed by: Melissa Kennedy, city clerk Steve Koering, fire chief/emergency management director Approve d by: Cindy Walsh, deputy city manager/operations and recreation director Study session meeting of February 14, 2022 (Item No. 2) Page 2 Title: COVID -19 update Discussion Background: Since the implementation of the face covering requirement on Jan. 18, most local establishments of public accommodation have complied by posting and requesting patrons to wear a face covering when entering their facility. Inspectors from the city visited 110 businessess on educational visits. No issues in compliance were encountered on these visits and signage was promptly displayed. As of Feb. 10, 11 complaints were made to emergency services regarding individuals not complying with the face covering requirement. Calls to emergency services have tapered off following inspector visits and no calls have been received since Feb. 5. Calls to non -emergency front desk staff were primarily informative in nature, asking specific questions related to how it would affect individual circumstances or requesting information on how enforcement functioned. The subject of the requirement was heavily discussed on social media platforms both monitored by the city and controlled by the city, with the public expressing varying opinions on the topic. Case rates identified through testing for COVID-19 have continued to decline in Hennepin County, with a 57.12% decline in the moving average of the previous seven days and are predicted to trend downward. Related statistics and lagging indicators are similarly signaling an abatement to the outbreak related to the Omicron variant. Test positivity rates have declined by 4.79% and overall testing performed has declined 31.53% in the seven-day average. Wastewater data which is sampled by the Met Council indicates an advance signal of a significant downward trend in infection rates, peaking on Jan. 6 and showing an 87% decline to the most recent reporting date of Jan.31. All data related to testing and case rates typically contain reports from ten or more days before the reporting date and are broadly considered to reflect what occurred previously rather than an assessment of the current situation. If trends continue, the situation is expected to resemble infection data similar to that collected before the Delta and Omicron-related statewide outbreaks. Hospital capacity is improving, but is still broadly at crisis levels. ICU capacity has fluctuated with a recent increase in use of 1.91% in the seven-day average while overall bed availability improv ed with a 2.07% decline in use in the seven-day average . Hospitalizations always peak following case rates, and are only beginning to show a decline, however epidemiological predictions f rom Hennepin County Health Department and Minnesota Department of Health indicate a downward trend that mirrors case rates should manifest in the coming weeks. Deaths from COVID-19 began to also show a downward trend in the previous week but have recently leveled off. Present considerations: Other communities in the west metro adopted face covering requirements prior to St. Louis Park . All who implemented requirements did so in response to the emergency presented by the unprecedented peak in infection rates related to the Omicron variant. The St. Louis Park requirement will expire at 11:59 p.m. on Feb . 22, 2022, without further action by council. City Mask mandate e xpiration date Hopkins February 13 Golden Valley Until further notice Minneapolis Until further notice Minnetonka March 19 St. Paul Until further notice Study session meeting of February 14, 2022 (Item No. 2 ) Page 3 Title: COVID -19 update The use of face coverings continues to be recommended by the Centers for Disease Control and the Minnesota Department of Health. The City of St. Louis Park previously passed a resolution encouraging use of face coverings and related programming to promote use. Since the adoption of requirements in certain municipalities in the area, reported rates of mask use from behavioral surveys 1 was at 33% in Minnesota at the start of January to a high of 39% at the end of January. Survey respondents were asked whether they always wear a face covering while going out in public, meaning a positive response may not be a result of masking requirements. As stated earlier, infection rates have dropped. Whether this is directly due to mask use requirements, or a host of factors related to transmission, cannot be isolated in data from survey responses. The Emergency Management Coordinator, Chief Koering, recommends that when the mask mandate expires that the city continue to strongly encourage the use of face coverings until such time that the Minnesota Department of Health and CDC no longer recommend widespread use. Next steps: Without action, the orde rs requiring use of face masks in areas of public accommodation and remote meetings of public bodies will expire at 11:59 p.m. on Feb. 22. If council would like to extend either or both mandates, updated resolutions would need to be drafted and passed at the February 22, 2022 council meeting. Repealing the measures early is functionally possible but would require a noticed special council meeting. Legal noticing requirements mean that the earliest this could happen would be Friday, February 18. With only four days between then and the end of the mandates, staff do not recommend an early repeal. The resolution encouraging the use of face coverings will remain in effect and related outreach and education programming will continue. 1 Data sources: Premise (US only); Delphi Group at Carnegie Mellon University and University of Maryland COVID -19 Trends and Impact Surveys, in partnership with Facebook, Kaiser Family Foundation, and the YouGov COVID -19 Behavior Tracker survey. Accessed Feb. 8, 2022 Meeting: Study session Meeting date: February 14, 2022 Discussion item : 3 Executive summary Title: Federal issues in legislative priorities Recommended action: The purpose of this report is to provide the council with details on three council-proposed additions to the city’s legislative priorities concerning federal issues Policy consideration: Should these federal issues be included in the city’s 2022 legislative priorities document? Summary: At the study session on Nov. 8, 2021, council members requested that staff review two federal policies and corresponding state legislative efforts for inclusion in the 2022 legislative priorities document. Those policies were in support of the Medicare for All Act and the National Popular Vote Interstate Compact. In addition, Council Member Rog requested that council consider adoption of a resolution in support of the Medicare for All Act. During the legislative priorities discussion with representatives on Jan. 10, 2022, Council Member Brausen requested that council also consider adding support of legislation related to the legalization of cannabis for adult use . At the direction of council, staff reviewed the federal policies for consideration as they relate to the City of St. Louis Park and the State of Minnesota. A process for the adoption of legislative priorities of this kind was discussed at the Nov. 8, 2021 study session . Council requested that staff review the issues and determine whether they warrant being brought back for a policy discussion. After review, staff determined that the proposed policies do align with the criteria outlined by council for of inclusion in the city’s legislative priorities. Financial or budget considerations: Funds are set aside in the budget for lobbyists at the state and federal levels. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion Draft resolution supporting the Minnesota Health Plan Prepared by: Michael Sund, election s specialist Reviewed by: Melissa Kennedy, city clerk Cindy Walsh, deputy city manager/operations and recreation director Approved by: Kim Keller, city manager Page 2 Study session meeting of February 14, 2022 (Item No. 3) Title: Federal issues in legislative priorities Discussion Background: Council Member Rog received a constituent request to consider adoption of a resolution affirming health care as a human right and asked that the city council include support of legislation related to that topic in their 2022 legislative priorities. During a discussion on this request at the Nov. 8 study session, the council requested a further review by staff and presentation of this document as a resolution. Staff reviewed the policy as written and drafted a resolution to conform with similar documents previously adopted by the council. If council would like to proceed with adoption of the draft resolution, this could be done at the next regular council meeting. Council Member Kraft requested that the National Popular Vote Interstate Compact be included in the 2022 legislative priorities. The same request had previously been made to include this topic as a legislative priority in 2021. Following a discussion by the council, this issue was identified as being of a similar type of policy consideration as the request relating to health care because it was regarding the inclusion of statements of general principle on federal issues into the 2022 legislative priorities. Council Member Brausen re quested that support of legislation related to the legalization of cannabis for adult use be included in the 2022 legislative priorities. He specified that a compo nent of this legislation should include that a portion of any taxes collected because of legalization be specifically dedicated to public safety and mental health concerns. Staff reviewed the proposed policies for inclusion in the city’s 2022 legislative priorities and found that they appeared to be well-established advocacy issues on which it would be appropriate for the council to determine whether they should be included in the priorities document. The Medicare for All Act of 2021 was introduced in the U.S. House of Representatives on March 17, 2021. The summary of the bill states that: This bill establishes a national health insurance program that is administered by the Department of Health and Human Services (HHS). Among other requirements, the program must (1) cover all U.S. residents; (2) provide for automatic enrollment of individuals upon birth or residency in the United States; and (3) cover items and services that are medically necessary or appropriate to maintain health or to diagnose, treat, or rehabilitate a health condition, including hospital services, prescription drugs, mental health and substance abuse treatment, dental and vision services, and long-term care. The bill prohibits cost-sharing (e.g., deductibles, coinsurance, and copayments) and other charges for covered services. Additionally, private health insurers and employers may only offer coverage that is supplemental to, and not duplicative of, benefits provided under the program. Health insurance exchanges and specified federal health programs terminate upon program implementation. However, the program does not affect coverage provided through the Department of Veterans Affairs or the Indian Health Service. Page 3 Study session meeting of February 14, 2022 (Item No. 3) Title: Federal issues in legislative priorities The bill also establishes a series of implementing provisions relating to (1) health care provider participation; (2) HHS administration; and (3) payments and costs, including the requirement that HHS negotiate prices for prescription drugs. Individuals who are age 18 or younger, age 55 or older, or already enrolled in Medicare may enroll in the program starting one year after enactment of this bill; other individuals may buy into the program at this time. The program must be fully implemented two years after enactment. The National Vote Interstate Compact takes the form of an agreement among the states, meaning that it is adopted state-by-state until enough are included in the compact such that it takes effect. Currently, the office of the President of the United States is elected by use of the electoral college. Representatives from each state, proportional in number to that state’s congressional delegation, are elected to vote at an assembly of members to elect the president. The members of each state delegation are generally determined by a winner-takes-all method, meaning that if the representatives of a particular candidate receive more than any other, they are sent as a delegation to the college. Under the compact, the delegation would instead be determined by the national popular vote for the office of President of the United States, regardless of who won on a state -by-state basis, if enough states agree to the compact whose representative total a majority of the college’s members. Essentially, this compact wou ld circumvent the regular process and instead allow the office of President of the United States to be determined by the national popular vote for that office. Legislation to this effect has been introduced in the Minnesota legislature. Legalizing adult-use Cannabis in Minnesota could occur at a state and federal level. Cannabis is currently a schedule one drug under the Controlled Substances Act of 1970 which means it is illegal to use for recreational or medical purposes at a federal le vel, however, several states have allowed exceptions for those purposes. The State of Minnesota allows for the medical use of cannabis. Several state representatives submitted legislation that is similar in effect to what has been adopted in other states (HF 600) which would allow for recreational use among adults. This measure passed through the Minnesota House of Representatives in 2021 and Governor Walz has announced his support of the issue generally . Page 4 Study session meeting of February 14, 2022 (Item No. 3) Title: Federal issues in legislative priorities Draft Resolution No. 22-____ Resolution supporting the Minnesota Health Plan and Medicare for All Act Whereas, the St. Louis Park city council recognizes the systemic issues and harm residents experience in using the current system of seeking services in a profit-based health care system; Whereas, the St. Louis Park city council affirmed in their Vision 3.0 statement that the city is committed to “being a leader in racial equity and inclusion in order to create a more just and inclusive community for all”; Whereas, the St. Louis Park charter section 1.00 states “Human freedom and human rights are indivisible and the recognition of equality of all people is indispensable in the administration of a just government”; Whereas, the city allocates a portion of the general fund budget annually to pay the costs of health insurance for employees and negotiates those costs; Now therefore be it resolved that the St. Louis Park City Council affirms that health care is a human right and supports the MN Health Plan and the Medicare for All Act. It is further resolved, a statement supporting this legislation will be included in the 2022 Legislative Agenda. Reviewed for administration: Adopted by the city council (date), 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: Study session Meeting date: February 14, 2022 Written report: 4 Executive summary Title: Proposed allocation of 2022 Community Development Block Grant (CDBG) funds Recommended action: No action required at this time. This report is being provide d to inform council of the proposed allocation of 2022 CDBG funds. Policy consideration: Does the city council concur with the recommendations made for the allocation of $167,562 in 2022 CDBG funds ? Summary: Each year the city receives an allocation of Community Development Block Grant funds from the U.S. Housing and Urban Development (HUD) and the city must decide how to use the funds. CDBG funds are funds distributed from HUD through Hennepin County. The city must submit its proposed use of the allocation to Hennepin County. Prior to submittal, the city must hold a public hearing. The hearing and official city council action is scheduled for Feb. 22, 2022. The city has not received our estimated 2022 direct allocation so for planning purposes we are using the 2021 direct allocation amount of $167,562 as an estimate. This year’s proposed use of CDBG funds reflect the city’s priorities to preserve existing affordable housing and increase affordable home ownership opportunities with $137,562 allocated for the low-income deferred rehab loan and $30,000 allocated to Homes Within Reach land trust. Beginning in 2018, 15% of the overall CDBG budget is set aside by Hennepin County for public service activities and awarded through a single combined, competitive RFP covering all the cities in the county program. Financial or budget considerations: CDBG funds allow cities discretion, within HUD guidelines, to fund projects that meet the national low-income objectives and the needs of the cities. The federal budget has not been finalized so the estimate using 2021 funding of $167,562 may change. The 2022 CDBG year runs from July 1, 2022, through June 30, 2023. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Marney Olson, housing supervisor Reviewed by: Karen Barton, community development director Approve d by: Cindy Walsh, deputy city manager/operations and recreation director Study session meeting of February 14, 2022 (Item No. 4) Page 2 Title: Proposed allocation of 2022 Community Development Block Grant (CDBG) funds Discussion Background: The national objectives of the CDBG program are to benefit low - and moderate- income persons, prevention or elimination of slum or blight, and/or to meet a particular urgent community development need. The city council has typically focused CDBG funds on improvements to the housing stock for low-income families or on affordable homeownership. The CDBG program allows for up to 15% of allocated funds to be used to fund public services. Beginning in 2018 Hennepin County sets aside the public service funds to be awarded through a single combined, competitive RFP. Hennepin County advertises the RFP process and sends information to public service providers including past recipients. In the past the city also funded rehabilitation and improvements for affordable housing providers in St. Louis Park. Due to federal regulations requiring Davis Bacon Wage Rates, other regulatory requirements related to the use of federal funding for multifamily properties, and St. Louis Park’s limited CDBG award, small CDBG awards both complicated and increased the costs of these projects. The two programs the city continues to fund with CDBG dollars are for individual owner-occupied properties so the federal regulations that impact multifamily properties do not apply. Present considerations: The proposed use of the $167,562 estimated allocation include s $137,562 for the low -income deferred rehab loan administered by Hennepin County, and $30,000 to Homes Within Reach which is the affordable housing land trust. If there are any increases or decreases to the allocation the deferred rehab loan will be adjusted accordingly. These two programs address the need for affordable housing and with limited CDBG funding and additional federal requirements for multifamily programs these two programs are the best fit for the St. Louis Park CDBG program. The low -income deferred loan program is a program for homeowners with annual incomes at or below 80% area median income. The rehab focuses on improvements to bring homes into code compliance, address deferred maintenance , and provide long-term maintenance-free housing. The maximum loan amount is $30,000 and is deferred until the sale of the home or forgiven after 15 years. As of Dec. 31, 2021, there were 65 households on the waiting list, demonstrating the need to continue allocating CDBG dollars to this program. The county has seen an increase in requests in all of the cities where they administer this program. Staff has had and will continue conversations with Hennepin County about the significant increases to the waiting list and what changes may be needed to address this. Homes Within Reach is a program of the West Hennepin Housing Land Trust (WHAHLT) that purchases homes and sells them to low-income homeowners. Buyers pay for the cost of the building only and lease the land for up to 99 years. St. Louis Park funds are leveraged with Met Council and Hennepin County HOME funds. The city has partnered with Homes Within Reach since 2006. To date, Homes Within Reach has purchased, rehabbed, and sold 19 homes, and purchased two additional homes that have yet to be rehabbed and sold. The St. Louis Park Housing Authority board reviewed the recommended proposal for use of 2022 CDBG funds and supports the allocation as proposed. Next steps: Public hearing and resolution approval of proposed activities Feb. 22, 2022. Meeting: Study session Meeting date: February 14, 2022 Written report: 5 Executive summary Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Recommended action: None at this time. On Feb. 22, 2022, the EDA will be asked to approve a First Amendment to the Preliminary Development Agreement between the EDA and Wooddale Station LLC relative to the Wooddale Station Redevelopment Site. The EDA will also be asked to approve a temporary construction easement between the EDA and the Metropolitan Council to allow for completion of the SWLRT Wooddale Avenue Station. Policy consideration: Does the EDA wish to extend the Preliminary Development Agreement with Wooddale Station LLC so as to continue joint efforts to prepare a mixed-use, transit- oriented development plan for the Wooddale Station Redevelopment Site? Summary: On Feb. 16, 2021, t he EDA approved a Preliminary Development Agreement (PDA) between the EDA and Saturday Properties/Anderson Companies who are partnering to codevelop the site under the redevelopment team, Wooddale Station LLC. During the last year, the parties have been working collaboratively on a joint development vision for the site and the financial assistance necessary to bring it to fruition. On Nov. 22, 2021, the EDA received a staff report on Wooddale Station LLC’s TIF application . Since November, the development team secured a Purchase Agreement for the adjacent 5802 36th Street West property , and a blight analysis of the property was completed. Given the significant progress made to date, the parties wish to continue working toward final plans for the mixed use, mixed income development. The PDA expires March 31, 2022, unless it is extended. The parties wish to extend the PDA to May 31, 2023 (out of an abundance of caution) by which point the goal is to have reached a formal Purchase and Redevelopment Contract. Financial or budget considerations: As noted in the Nov. 22, 2021 EDA staff report, there are considerable extraordinary costs associated with the Wooddale Station Redevelopment Site and other costs associated with meeting city expectations and requirements. The Developer applied to the EDA for tax increment financing (TIF) assistance and 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 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 Site plan Concept images Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director/ EDA executive director Approve d by: Cindy Walsh, deputy city manager/operations and recreation director Study session meeting of February 14, 2022 (Item No. 5) Page 2 Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Discussion Site information: The proposed redevelopment site is located in the northeast quadrant of Wooddale Avenue and 36th Street West, immediately south of the Southwest Light Rail (SWLRT) Wooddale Ave nue Station. The site is in the Elmwood neighborhood. 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 SWLRT Wooddale Avenue Station Redevelopment Site Study session meeting of February 14, 2022 (Item No. 5 ) Page 3 Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment 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 station area 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 near 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 Dec. 14, 2020, study session, the EDA determined Saturday Properties/Anderson Companies’ (“Developers”) 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. The EDA received a staff report on Nov. 22, 2021 outlining Wooddale Station LLC’s TIF application and request for $12.18 million in TIF assistance . Since then, the development team secured a purchase agreement for the adjacent 5802 36th Street West property and staff had a blight analysis of the property completed. The development team is now in the due diligence phase of the project and is in the process of completing a geotechnical report, an ALTA survey, and a Phase I Environmental study for the entire development site. Wooddale Station, LLC hired DJR Architectu re in early 2022 to complete the development’s site and building design. DJR Architecture has worked extensively in St. Louis Park . They were the architects for the Bridgewater Bank Corporate Center which was one of Finance and Commerce’s Top Projects in 2020, and Parkway 25 which is the city’s first and only LEED certified residential building. Study session meeting of February 14, 2022 (Item No. 5 ) Page 4 Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment The development team envisions applying for environmental grants as well as Metropolitan Council LCDA and TOD grants, which will be applied for in the spring and summer of 2022. The development has already received a Hennepin County TOD grant for $250,000. The team continues to reach out to neighborhood groups, non-profits, and other agencies. In addition to an August 2021 meeting with the Human Rights Commission, Wooddale Station LLC has meetings scheduled in February with Perspectives and LISC-Corridor Development Initiatives to solicit their feedback on the project. They are also setting up meetings with St. Louis Park Emergency Program (STEP) and non-profit developer Project for Pride and Living (PPL) which is developing the nearby Union Park Flats all-affordable development to obtain further input on the development’s design and programming. The development team has scheduled a virtual neighborhood meeting for March 3, 2022, at 6:30 p.m. This virtual meeting will be open to the public and was coordinated with Elmwood neighborhood leaders and the ward 2 councilmember. City council will receive an invite from staff in the coming week. Wooddale Station, LLC aims to submit planning applications for a preliminary and final plat and preliminary and final planned unit development in March 2022 to begin the formal process of entitlement approvals. Present conside rations: On Feb. 22, 2022, a First Amendment to the Preliminary Development Agreement between the EDA and Wooddale Station LLC will be brought to the EDA for its co nsideration . Given the significant progress made to date, the parties wish to continue working toward final plans for the mixed use, mixed income development. The PDA expires March 31, 2022, unless it is extended. The parties wish to extend the PDA to May 31, 2023 (out of an abundance of caution) by which point the goal is to reach a mutually acceptable purchase and redevelopment agreement. 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 housing units, 12,600 SF of neighborhood commercial space , and 3,500 SF of co -working/community space. The commercial space would include some smaller siz ed store fronts w hich would be less expensive for small businesses to lease . Staff is exploring with a commercial land trust how a portion of this space could be made even more affordable. The mixed income development would provide 237 market rate units an d 60 affordable units. Also included in the development is a 15,000 SF public plaza located adjacent to the SWLRT Wooddale Ave nue Station providing hard and green space for community gatherings and events along with landscaping, and public art. The project is designed to be open and welcoming to all. The development will be neighborhood-oriented and will be designed to accommodate all users, specifically pedestrians. Study session meeting of February 14, 2022 (Item No. 5 ) Page 5 Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Rendering of proposed Wooddale Station Development Wooddale Station would inclu de 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: 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-bed room 85 11 37% 11 37% 107 36% 2-bed room 41 5 17% 5 17% 51 17% 3-bed room 9 1 3% 1 3% 11 4% Total 237 30 100% 30 100% 297 100% Pending approval of planning entitlements and financing, the Developers plan to commence construction in early 2023. The development team expects to own and operate the development for the long term, and Saturday Properties would be the property 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 of Oct. 2021. 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. Study session meeting of February 14, 2022 (Item No. 5 ) Page 6 Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Climate Action Plan: The Developers will adhere to the city’s Green Building Policy (as amended July 2020) 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 opportunity to access new, quality housing including both market rate and long -term affordable units creating additional housing options for area residents. Staff will work with the development team to ensure it complies with measures included in the forthcoming Diversity, Equity, and Inclusion Policy. The Developers have hosted a neighborhood meeting with the Elmwood and Sorensen neighborhoods and have also presented the development concept to the Human Rights Commission. The meetings were well received. The Developers also intend to have conversations with STEP, Perspectives, neighboring retail tenants, St. Louis Park elected officials, and more discussions with the neighborhood. The Developers seek to build social capital through community engagement during the design process and events hosted on site and after construction completion. The Developers also plan to provide a webpage where the public can learn more about the project, contact them with questions, and stay informed during and after construction. Before construction the Developers intend to host a pre-project informational meeting for women and BIPOC-owned subcontractors and venders to explain the overall project, and opportunities for potential scopes of work. They would then solicit proposals from the women and BIPOC-owned 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 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 development team. 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. Study session meeting of February 14, 2022 (Item No. 5) Page 7 Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Next steps: On Feb. 22, 2022, the EDA will be asked to consider the First Amendment to the Preliminary Development Agreement (PDA), extending the PDA to May 31, 2023. The development team intends to hold a neighborhood meeting in March 2022 and submit its planning and zoning applications soon thereafter. Over the course of the next year, the Developers intend to submit applications to various agencies (DEED, Metropolitan Council and He nnepin County) seeking additional grant funding to fill the development’s remaining financial gap. Following which , staff and the Developers will procced with the formal TIF district and redevelopment contract approval process. A nticipated f ormal EDA/city council approvals include: 1.First Amendment to the Preliminary Development Agreement 2.Temporary Construction Easement with Metropolitan Council 3.Planning approvals including: a.Preliminary and final plat b.Preliminary and final PUD 4.Resolutions of support for various grant applications 5.TIF district along with corresponding Purchase and Redevelopment Contract 20-0430St LouiS Park | M inneS ota 2November 6, 2020Wooddale RFP - Park Central EntryrEndErEd Floor Plan - subgradE Parking Study session meeting of February 14, 2022 (Item No. 5) Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Page 8 EntryEnt ry 20-0430St LouiS Park | M inneS ota 3November 6, 2020Wooddale RFP - Park Central rEndErEd Floor Plan - ground Floor COMMUNITY / COWORKING LOBBY Study session meeting of February 14, 2022 (Item No. 5) Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Page 9 39 39 Saturday Properties + Anderson Companies CITY OF SAINT LOUIS PARK Park Central Exhibit D Preliminary Site Plan 36 th St. W o o d d a l e A v e .Yosemite Ave.East Building West Building East Lobby West Lobby Wooddale Lawn Resident Amenity Deck over Parking Ea s t S k y Dec k West Sky DeckDog Run LRT Dro p Pub l ic Pa r k ing Retail Parkin g Access Reta i lPar k ingAcces s Resident Parking Entry L1 Possible PV ArrayPossible PV Array Resident Parking Entry L0 Bi ke Pa r k ing Bi ke Pa r k ing Bike Parki n g Bike Parking Bypass SWLRT W o o d d al e A v e. St ati o n Bus Stop BNSF H e a v y R ail Cedar L ak e Bik e Tr ail Level 0 Resident Parking below entire building footprint 241 spaces N Level 1 Resident Parking behind active Amenity Spaces and below amenity deck 121 Spaces Level 1 Public Parking 12 angled surface parking and 29 interior spaces 43 total Grade Level of West Building Commercial/Retail and Resident Lobby Study session meeting of February 14, 2022 (Item No. 5) Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Page 10 43 43 Saturday Properties + Anderson Companies CITY OF SAINT LOUIS PARK Park Central Exhibit E Conceptual Images Study session meeting of February 14, 2022 (Item No. 5) Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Page 11 44 44 Saturday Properties + Anderson Companies CITY OF SAINT LOUIS PARK Park Central Corner of 36th and Yosemite Plaza edge along Station Study session meeting of February 14, 2022 (Item No. 5) Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Page 12 45CITY OF SAINT LOUIS PARK Park Central Corner of Wooddale and 36th Overhead of Plaza Exhibit E Conceptual Images Study session meeting of February 14, 2022 (Item No. 5) Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Page 13 46 Saturday Properties + Anderson Companies Movies in the Park Wooddale Lawn Plaza Entry off Wooddale Ave Study session meeting of February 14, 2022 (Item No. 5) Title: Update on Wooddale Station LLC’s proposed Wooddale Station Redevelopment Page 14