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HomeMy WebLinkAbout2022/02/28 - ADMIN - Agenda Packets - City Council - Study Session AGENDA FEB. 28, 2022 The St. Louis Park City Council is meeting in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. in accordance with the most recent COVID-19 guidelines. Members of the public can attend in person or watch via webstream at bit.ly/watchslpcouncil and on local cable (Comcast SD channel 17 and HD channel 859). Visit bit.ly/slpccagendas to view the agenda and reports. 6:30 p.m. STUDY SESSION – council chambers Discussion items 1. 60 min. Community and civic engagement system introduction 2. 45 min. Business terms for purchase and redevelopment contract with Bigos – 9920 Wayzata, LLC (Ward 4) 5 min. Communications/updates (verbal) Written reports 3. January monthly financial report 4. Fourth quarter investment report (Oct. – Dec. 2021) 5. Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment (Ward 2) 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 28, 2022 Discussion item : 1 Executive summary Title: Community and civic engagement system introduction Recommended action: None. The purpose of this report is to provide an overview and framework of the planned discussions in the study sessions included in the community and civic engagement system. Policy consideration: Throughout the discussions in this system, the council will be asked specific policy questions. During these discussions, staff would like council to reflect on the following questions (not to be answered at this study session): •What is the goal/desired outcome of engagement? What does success look like? •Do the current engagement strategies meet the desired goal/outcome ? Through this specific study session, we are looking for council to have a strong understanding of the IAP2 model. Summary: Over the coming weeks, a series of discussions will be held to address how the city approaches the Vision 3.0 strategic priority of community and civic engagement. Some of these are council directed and others are staff initiated. This report serves as grounding for all the discussions and includes a broad overview of past activity, frameworks used during engagement with the public, and current programming and events. Many factors (includin g COVID and staffing changes) have led to an inflection point that changed both the needs in the community and the ways the city plans engagement. Certain baseline operations have proceeded while others have adapted to the current situation. As the community changes, community engagement will continue to need to change along with it. The framework used to evaluate and plan community engagement is central to the way in which it is ultimately pe rformed. The city currently uses the IAP2 model of engagement. This model is widely used across a broad range of organizations that affect the public interest, although its application takes many different forms as it is adapted to fit specific needs. The city’s current application of the IAP2 model routinely uses three of the five steps (inform, consult, collaborate). Elections serve as the most direct empowerment of the public. A change in strategy would be required to more fully implement the additional two steps, involve, and empower, on the IAP2 model. Financial or budget considerations: Funds are budgeted for community engagement. Should the council desire a change in strategy, additional resources may be required. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion; System schedule; IAP2 spectrum of participation; St. Louis Park community engagement levels (current) Prepared by: Michael Sund, election specialist Reviewed by: Melissa Kennedy, city clerk Approve d by: Kim Keller, city manager Study session meeting of February 28, 2022 (Item No. 1 ) Page 2 Title: Community and civic engagement system introduction Discussion Background: Community is at the center of every function of the government of the City of St. Louis Park. Residents in the community are broadly engaged and work to actively build a place where everyone can live, work and play. Community and civic engagement serve as the system that bridges those internal functions of the city to residents externally. Staff are committed to keeping residents informed and offering opportunities to provide feedback through collaboration. A recurring theme that surfaces when discussing engagement is a desire to provide meaningful opportunities for the public to influence decision making. Civics is also a core value of the community. Residents regularly participate in positions in the city through neighborhood organizations, boards, commissions, school board, city council, and the many opportunities to volunteer. Residents regularly vote in local and regional elections and work to persuade, discuss, and influence one another about issues of importance. A renewed focus on civic activities has forme d in the city. Together civic and community engagement programs function to serve the city as it grows and changes over time. A future for this programming, and the ways in which residents can interact and influence their city government, is a core focus of the upcoming discussions in this system. Attached is an outline of the upcoming discussions. It is important to recognize that the each of these discussions build on and inform each other. Key Ideas: The city utilizes two major programmatic frameworks in the design and implementation of community engagement: • IAP2 (attachment #1) is a model that has broad adoption worldwide from the International Association of Public Participation (IAP2). A version of the core ideas from this model is used to plan events and programs in St. Louis Park . This framework details a five -step model to consider the goal of engagement along a spectrum that will inform, consult, involve, collaborate with , and empower participants. It then “matches” appropriate expectation setting and engagement strategies with each step along the continuum. Staff are very familiar with this model and have a common understanding of how to apply it. Importantly, this model is helpful in situations that can feel intractable or as though there are multiple polarities because it encourages strategies and concepts to aid in t he process of working through difficult or complex subjects while maintaining open access to public participation for all. • Diversity, equity, and inclusion is a commitment by the city to focus on accessibility in all public engagement. Staff use core con cepts learned through professional development opportunities offered by Human Resources and Race Equity and Inclusion staff to apply an inclusive lens to the city’s engagement model. This also typically includes staff professionals to advise and review potential programming to ensure they meet standards for inclusion as well as relationships with community advisors and experts who can guide work on disparity reduction. Though these positions are currently vacant and under review with a consultant, this ongoing work will continue to inform and shape the city’s engagement efforts. Study session meeting of February 28, 2022 (Item No. 1) Page 3 Title: Community and civic engagement system introduction Existing work: Engagement among all departments of the city is a regular function because it is an expectation of the community we serve. The current purpose or application of this work is primarily to inform the public of the city’s activities and the potential impact on their daily life. Opportunities to collaborate through direct feedback or participation, where appropriate , are also generally available. Because decisions are ultimately made by staff or the city council, participation can feel limited to some. Consideration could be given to changing the way public feedback is incorporated into the decision -making process. Beyond official activity , residents are also typically offered opportunities for fun and leisure -based activities to add to the overall sense of community in St. Louis Park. Present considerations: Discussion items listed below all center on community and civic engagement policy and offer opportunities to consider how engagement is structured in the city and if the current model of engagement is sufficient to meet the needs of the community and achieve desired outcomes. These topics will ex amine current programming and offer opportunities, identified by both council and staff, for expansion or adjustment where applicable. Absent any policy changes, city staff will continue to provide our current high levels of engagement in the community. As a result of the Vision 3.0 process, the city p rioritized community engagement as a method of building social capital. These efforts have been largely well-received by the community with an expectation that they continue, adapt, and grow. As city operations evolve in response to changing needs within the community, this moment offers a chance for reconsideration and evaluation of the city’s strategy for future engagement. Next steps: Throughout the discussions in this system, council will be asked to provide policy direction that will shape the overall engagement strategy in the city. The dates outlined below are tentative and often dependent on discussion outcomes from prior study sessions. Community and Civic Engagement System Schedule Topic Meeting Date Description Introduction session to community & civic engagement 2/28/22 Provide a high -level overview of the city’s engagement framework and current conditions. Public process expectations & outcomes 3/21/22 Review of current strategy and activities related to public participation. Discussion related to expectations and outcomes of future engagement efforts. Boards & commissions (pt.1) 3/28/22 Structure, function, role and authority of the city’s advisory boards and commissions. Boards & commissions (pt. 2) 4/11/22 Driving engagement and participation in the city’s advisory boards and commissions. Council rules & procedures 4/11/22 Agenda format, public forums, proclamation policy Boards & commissions (pt. 3) 4/25/22 Consideration of new commissions IAP2 Spectrum of Public Participation © IAP2 International Federation 2018. All rights reserved. 20181112_v1 To provide the public with balanced and objective information to assist them in understanding the problem, alternatives, opportunities and/or solutions. We will keep you informed. PUBLIC PARTICIPATION GOALPROMISE TO THE PUBLICINFORM To obtain public feedback on analysis, alternatives and/or decisions. We will keep you informed, listen to and acknowledge concerns and aspirations, and provide feedback on how public input influenced the decision. CONSULT To work directly with the public throughout the process to ensure that public concerns and aspirations are consistently understood and considered. We will work with you to ensure that your concerns and aspirations are directly reflected in the alternatives developed and provide feedback on how public input influenced the decision. INVOLVE To partner with the public in each aspect of the decision including the development of alternatives and the identification of the preferred solution. We will look to you for advice and innovation in formulating solutions and incorporate your advice and recommendations into the decisions to the maximum extent possible. COLLABORATE To place final decision making in the hands of the public. We will implement what you decide. EMPOWER IAP2’s Spectrum of Public Participation was designed to assist with the selection of the level of participation that defines the public’s role in any public participation process. The Spectrum is used internationally, and it is found in public participation plans around the world. Study session meeting of February 28, 2022 (Item No. 1) Title: Community and civic engagement system introduction Page 4 Community engagement levels There are three levels of community engagement. When you frame your project in step 1 of the process, you will decide which engagement level is required. Note: In some projects, the level of engagement required may change over time. Level 1: Inform -We're making some changes. •Tell people about a decision we've already made. •Push out information to maximize awareness of the decision and its impact. •Help people understand why the decision was made/what problem is being addressed. •Appropriate for projects that are largely, not entirely, shaped by code requirement, laws, and best practices. •Examples: infrastructure maintenance, road closures, fee increases, changes in service, emergency information Level 2: Consult -You guide. We decide. •Tell people about the options being considered. Ask for feedback. •Push out information to maximize awareness of the problem and potential solutions. •Provide mechanisms for people to comment and/or state preferences. •Appropriate for projects where the potential solutions have been developed through a collaborative process. Also works well for projects that will benefit from refinement. •Examples: playground design, proposed ordinances, proposed budget, prioritizing capital improvement projects, infrastructure improvements, planning and development projects Level 3: Collaborate -Let's decide together. •Collaborate with the community from the beginning. •Work together to develop alternative and preferred options. •Provide mechanism for conversations and work sessions. •Appropriate for long-term and visionary projects. •Example: comprehensive plan LEVEL 1 INFORM LEVEL 2 CONSULT LEVEL 3 COLLABORATE Study session meeting of February 28, 2022 (Item No. 1) Title: Community and civic engagement system introduction Page 5 Meeting: Study session Meeting date: February 28, 2022 Discussion item : 2 Executive summary Title: Business terms for purchase and redevelopment contract with Bigos-9920 Wayzata, LLC (Ward 4) Recommended action: Review and discuss proposed business terms for the EDA’s purchase and redevelopment contract with Bigos-9920 Wayzata, LLC related to the proposed 9920 Wayzata Boulevard development scheduled for formal consideration at the March 21, 2022, EDA meeting. Policy consideration: Are the proposed business terms for the provision of tax increment financing assistance to the 9920 Wayzata Boulevard development consistent with the EDA’s expectations and are they acceptable? Summary: Golden Valley -based Bigos Management (“Redeveloper”) intends to acquire land at the northwest quadrant of I-394 and US 169. This includes two vacant parcels located at 9808 and 9920 Wayzata Boulevard, as well as adjacent right -of-way owned by the EDA. Bigos’ plans for the 3.1-acre rede velopment site call for the removal of three billboards and construction of a six -story, 233-unit multifamily housing development tentatively named 9920 Wayzata Boulevard , located in Ward 4. The proposed $68.7 million apartment building would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI) for 26 years, exceeding the city's Inclusionary Housing Policy require ments. The EDA/city council received a staff report detailing the Redeveloper’s TIF Application at the Jan. 10, 2022 study session along with a re commendation for the appropriate level of assistance. Financial or budget considerations: The Redeveloper previously indicated that 9920 Wayzata Boulevards’ financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract financing. To offset this gap, the Redeveloper applied for tax increment financing (TIF) assistance. Ehlers , the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary to enable the project to become viable. After review, Ehlers determined that up to $6.3 million in TIF assistance is warranted to enable the project to achieve a market rate of return and become financially feasible. Such assistance would be provided via a pay-as-you-go TIF Note. Given current estimates of market value, it is estimated that the project’s TIF Note would be paid off in approximately 14.5 years (on a net present value basis). Such assistance would derive from the establishment of a new Housing TIF district. 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 administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approve d by: Kim Keller, city manager Study session meeting of February 28, 2022 (Item No. 2) Page 2 Title: Business terms for purchase and redevelopment contract with Bigos-9920 Wayzata, LLC Discussion Background: Golden Valley -based Bigos Management (“Re developer”) has an option agreement to acquire two vacant parcels located at 9808 and 9920 Wayzata Boulevard in the northwest quadrant of I-394 and US 169, from Bill Stoddard of SLP Park Ventures. The development team plans to remove the three billboards and remaining debris on the subject site and construct a six -story, 371,000 square foot, multi-family housing development. The development includes structured and surface parking, with nearly 20 percent of the parking to have access or future access to electric vehicle charging equipment. Additionally, 30 percent of the site area is designed for active recreation and includes a rooftop deck, a large ground floor amenity deck with a pool and spa, a dog run, a pickleball court, and private landscaped walkway with seating areas. The proposed apartment development would be mixed income with 186 units (80 percent) le asable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI) and would adhere to the city’s inclusionary housing policy as amended in October 2021. Per the Metropolitan Council, the 50 percent AMI for a family of four is $52,450. The inclusionary housing policy as amended in October 2021, requires at least 10 percent of the units be affordable at 50 percent area median income . With 20 percent of the housing units affordable to households at 50 percent of AMI, the proposed development exceeds the city’s inclusionary housing requirements. The Re developer also plans to include seven 3-bedroom units in the building’s unit mix, two of which would be affordable, to further the city’s goals for family -sized housing. The Redeveloper has also agreed to include a number of energy efficient design features and components into the development (including a rooftop solar array installation capable of generating a minimum of 150,000 kWh) which exceed the city’s Green Building Policy requirements as amended July 2020 and consequently the Climate Action Plan. Re ndering of proposed 9920 Wayzata Boulevard Study session meeting of February 28, 2022 (Item No. 2 ) Page 3 Title: Business terms for purchase and redevelopment contract with Bigos-9920 Wayzata, LLC 9920 Wayzata Boulevard would be a single-phased residential development. Pending approval of its financing, the development team plans to commence construction of the building in summer 2022 and complete it by summer 2024. Bigos Management would own and manage the residential development for the long term. On Oct. 18, 2021, city council approved a comprehensive plan amendment to reguide the site from office to high density residential, a preliminary and final plat, and a preliminary and final planned unit development zoning district to allow the proposed mixed income, multi-family residential development. Re developer’s request for tax increment financing assistance: The Re developer previously indicated that 9920 Wayzata Bo ulevard’s financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract financing. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. The EDA received a staff report detailing the TIF Application at the January 10, 2022 study session along with a recommendation for the appropriate amount of financial assistance. Level and type of financial assistance: In summary, the Re developer’s sources and uses statement, income and expense estimates, financing assumptions, cash flow projections, and investor rate of return (ROR) related to the proposed mixed income development were reviewed by staff and Ehlers (the EDA’s financial consultant). Based upon its analysis of the Redeveloper’s financial proforma, Ehlers determined that the proposed development would not be reasonably expected to occur on the site in the foreseeable future but/for the provision of up to $6.3 million in tax increment assistance. The TIF assistance would be committed to reimburse the Re developer for a portion of its Public Redevelopment Costs (which includes the costs of site demolition and clearance , soil remediation and correction as well as construction of affordable housing). Upon completion of the building and verification of the Development Team/Re developer’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Development Team/Re developer on a "pay -as -you-go" basis, which is the preferred financing method under the city's TIF Policy. It is projected that the TIF Note would be paid off in approximately 14.5 years with increment generated by the development consistent with other redevelopments the EDA has previously facilitated. Proposed business terms: The following is a summary of the proposed key business terms between the EDA and Bigos -9920 Wayzata, LLC (“Re developer”), consistent with EDA Policy, past practices and previous discussions with the EDA/city council. The Redevelopment Property consists of the property highlighted in the aerial photo below. Study session meeting of February 28, 2022 (Item No. 2 ) Page 4 Title: Business terms for purchase and redevelopment contract with Bigos-9920 Wayzata, LLC “Redevelopment Property” for proposed 9920 Wayzata Boulevard development 1. The Redeveloper agrees to acquire parcels 9808 and 9920 Way zata Boulevard from SLP Park Ventures LLC. 2. The EDA owns approximately 18,440 square feet of right-of-way required for the construction of the Minimum Improvements (“EDA Property”) and will convey title to and possession of the EDA Property to the Redeveloper subject to the following: o The purchase price for the EDA Property shall be $110,000. o The EDA's obligation to convey the EDA Property to the Redeveloper is subject to satisfaction of the following terms and conditions: a. The Redeveloper having closed on permanent financing at or before Closing on transfer of title to the Development Property from the EDA to the Redeveloper or having received a binding commitment from a lender to provide financing sufficient for construction of the Development or having otherwise provided the EDA with proof of funds available to finance construction of the Development. b. The EDA having received Construction Plans for the Development that have been approved by the City, based on a determination of the EDA , all permits are ready to be issued, and all required City fees in connection therewith have been paid. c. The City having approved any amendments to the City’s Comprehensive Plan, replatting of the property, a PUD, and a Planning Development Contract. d. Redeveloper having approved the state of title to the EDA Property. e. Closing shall occur within 30 days of satisfaction or waiver of the above conditions but no later than July 1, 2022, unless extended by agreement of the parties. f. At Closing, the Redeveloper agrees to pay any outstanding property taxes, including back-taxes along with any related penalties and fees, owed to the Study session meeting of February 28, 2022 (Item No. 2 ) Page 5 Title: Business terms for purchase and redevelopment contract with Bigos-9920 Wayzata, LLC City and all outstanding administrative costs owed to the EDA (for current and previous TIF applications.) g. The Developer acknowledges that the EDA makes no representations or warranties as to the condition of the soils on the Development Property or the fitness of the Development Property for construction of the Minimum Improvements. h. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the EDA, the City, and their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants existing on the Redevelopment Property. 3. The Redeveloper will remove the existing billboards from the Development Property and will not construct any billboards on the site in the future. 4. The Re developer agrees to construct a multifamily housing development on the Redevelopment Property consisting of a 233-unit apartment building with approximately 203 structured parking stalls (the “Development”). The Development shall include a mix of alcove , one-bedroom, one-bedroom plus den, two-bedroom, and three -bedroom units (the “Minimum Improvements”). 5. The EDA agrees to reimburse the Re developer for a portion of its Public Redevelopment Costs (defined as the costs of site demolition and clearance, soil remediation and correction as well as construction of affordable housing) incurred during construction of the Development through tax increment financing (TIF) up to $6,300,000. 6. The EDA agrees to issue a tax increment revenue note (“TIF Note”) to the Re developer in the maximum principal amount of $6,300,000 payable from available tax increment, generated by the Development on a “pay-as -you-go” basis, over a period of approximately 14.5 years. The TIF Note will bear interest at the lesser of 4.25% or Re developer’s actual financing interest rate. 7. In order to provide the tax increment to the Re developer, the EDA agrees to establish a new housing TIF district consisting of two parcels: 9920 Wayzata Boulevard and 9808 Wayzata Boulevard. 8. The EDA will issue the TIF Note to the Re developer upon completion of the Minimum Improvements and Re developer providing the EDA with a statement specifying the Public Redevelopment Costs incurred by the Re developer related to the Development along with evidence that each identified Public Redevelopment Cost has been paid or incurred by the Re developer. 9. The TIF assistance will be subject to a "look back" analysis to be performed by Ehlers, the EDA’s financial consultant, upon: (1) three years after the issuance of the Certificate of Occupancy (2) the date the Development achieves stabilization (95% lease -up) or (3) if Redeveloper sells or refinances the Development within 14.5 years after completion. Under the provision, the Redeveloper would be required to submit final project costs related to the Development and reports detailing the Development’s actual financial performance. The look back provision ensures that if the Development’s total Public Study session meeting of February 28, 2022 (Item No. 2 ) Page 6 Title: Business terms for purchase and redevelopment contract with Bigos-9920 Wayzata, LLC Redevelopment Costs are lower or if the project performs financially better upon stabilization than the Redeveloper’s estimates, the EDA shares economically in the success of the project by reducing the amount of TIF assistance provided. 10. Construction of the Development will commence by Aug. 1, 2022 and will be substantially completed by July 1, 2024. 11. Re developer will construct the Development and maintain it in good condition until the Contract terminates. 12. Re developer will comply with th e city’s Inclusionary Housing Policy in effect at the time of its planning applications. Specifically, Re developer agrees to a 26-year covenant designating at least 47 (20 percent) of the total rental housing units will be reserved for households at or below 50 percent of area median income (AMI) and distribute the affordable units as follows (or as mutually agreed by the parties): 10 alcove units, 16 one-bedroom units, 3 one -bedroom plus den units, 16 two-bedroom units, and 2 three - bedroom units. 13. Re developer will use reasonable efforts to meet the following business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in conjunction with construction of the Development: Participation Goals Women BIPOC Business Enterprises 6% 13% Workforce 6% 32% Participation goals would be applied to the Development as a whole and pertain to the total amount of construction and related contracts. Re developer would provide and use reasonable efforts to cause its contractors/subcontractors to provide certain information and resources to prospective contractors/subcontractors before bidding; to implement procedures designed to notify women and people of color about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance report(s), all as more particularly set forth in the Contract. Failure to achieve these goals would not constitute a breach or default by Re developer. 14. Re developer will comply with the city’s amended Green Building Policy as adopted July 2020 (in effect at the time of submission of its planning applications) and design the Development to Enterprise Green Communities. Sustainability features to be included in the development include: o PC solar array comprising the majority of the level 6 roof, generating approximately 150,000 kWh of Year 1 energy offset o Diversion and recycling of construction and demolition waste o Reduction of potable water consumption utilizing low flow fixtures o Construction Indoor Air Quality Management Plan (IAQ) o Controllable lighting and thermal air s ystems o Daylighting and views of spaces o High efficiency appliances Study session meeting of February 28, 2022 (Item No. 2 ) Page 7 Title: Business terms for purchase and redevelopment contract with Bigos-9920 Wayzata, LLC o Best management practices of stormwater on site Native plantings that are low irrigation and low maintenance 15. Re developer will install the following items, at a minimum, in conformity with the city’s Planning Development Contract: a. 14 Level 1 and 33 Level 2 electric vehicle charging stations and conduits for 33 additional future Level 2 electric vehicle charging stations. b. Landscaping on the Development Property. c. All items required under the City’s Building Readiness Ordinances. 16. Re developer and EDA mutually agree to enter into a Minimum Market Value Assessment Agreement setting a minimum property tax value for the Development. 17. Redeveloper agrees to not discriminate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the Development Property or Minimum Improvements. 18. Redeveloper agrees to certify that the Minimum Improvements have been constructed in accordance with the Purchase and Redevelopment Contract and all applicable local, state, and federal laws and regulations (including but not limited to environmental, zoning, building code, labor, and public health laws and regulations). Additionally, all costs related to the Minimum Improvements and the development of the Redevelopment Property, including payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the Redeveloper’s request for the Certificate of Completion and written lien waivers have been provided from each contractor for all work done and for all materials furnished by it for construction or installation of the Minimum Improvements. 19. Re developer agrees to pay reasonable administrative costs incurred by the EDA, including consultant and attorney fees, in connection with the Development. 20. If Re developer defaults under the Contract, the EDA may (among other things) terminate the TIF Note and the Contract. 21. The Contract and TIF Note will terminate upon the earliest of the final payment of principal and interest on the TIF Note, the required decertification of the TIF District, or an uncured Event of Default under the Contract. The above terms will serve as the basis for, and will be incorporated into, a purchase and redevelopment contract with the Re developer. Such terms are subject to further definition, revision and/or refinement by the EDA’s legal counsel. A copy of the draft purchase and redevelopment contract will be available for review in the community development department. Next steps: Staff will work with the EDA’s legal counsel, Bigos Management, and Bill Stoddard of SLP Park Ventures to finalize the formal purchase and redevelopment contract based on the proposed business terms and any input received by the EDA. Formal consideration of the proposed purchase and redevelopment contract is scheduled for the March 21, 2022, EDA meeting. Meeting: Study session Meeting date: February 28, 2022 Written report: 3 Executive summary Title: January 2022 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 8% of the annual budget at the end of January. G eneral fund expenditures are at 6.3% of the adopted annual budget through January. License and permit revenue is at 27% of budget in January because a large portion of the business and liquor license fees have been received. There were also 6 commercial permits issued in January with over $1 million valuations. The other income of 32% of budget is private activity revenue bond fees from Park Nicollet. Strategic priority consideration: Not applicable. Supporting documents: Summary of revenues and departmental expenditures – general fund Prepared by: Darla Monson, accountant Reviewed by: Melanie Schmitt, chief financial officer Approve d by: Kim Keller, city manager Summary of Revenues & Departmental Expenditures - General Fund As of January 31, 202220222022202020202021202120222022Balance YTD Budget Budget Audited Budget Unaudited Budget YTD Jan Remaining to Actual %General Fund Revenues: General Property Taxes28,393,728$ 28,635,694$ 29,601,811$ 29,455,528$ 30,532,470$ 30,532,470$ 0.00% Licenses and Permits4,660,811 5,294,310 4,621,829 5,004,993 4,750,604 1,274,991 3,475,613 26.84% Fines & Forfeits280,000 126,192 231,000 154,665 231,000 750 230,250 0.32% Intergovernmental1,760,082 2,061,267 1,661,549 1,826,064 1,748,770 1,748,770 0.00% Charges for Services2,273,824 1,600,806 2,013,834 2,285,970 2,284,483 91,573 2,192,910 4.01% Rents & Other Miscellaneous1,456,102 1,201,119 1,499,091 1,476,440 1,589,934 90,947 1,498,987 5.72% Transfers In2,038,338 2,049,976 2,055,017 2,032,017 2,198,477 174,415 2,024,062 7.93% Investment Earnings 210,000 486,468 200,000 (506,561) 200,000 200,000 0.00% Other Income621,280 3,442,900 593,300 606,695 526,829 167,093 359,737 31.72% Use of Fund Balance25,000 250,000 250,000 Total General Fund Revenues41,694,165$ 44,898,732$ 42,502,431$ 42,335,811$ 44,312,567$ 1,799,768$ 42,512,799$ 4.06%General Fund Expenditures: General Government: Administration1,868,599$ 1,472,421$ 1,617,882$ 1,364,686$ 2,010,605$ 61,499$ 1,949,106$ 3.06% Finance1,124,045 1,194,828 1,129,591 1,189,623 1,178,516 79,289 1,099,227 6.73% Assessing808,171 792,277 798,244 767,431 821,530 60,586 760,944 7.37% Human Resources823,209 796,088 837,736 761,798 882,849 48,725 834,124 5.52% Community Development1,571,894 1,536,657 1,576,323 1,443,008 1,606,474 113,443 1,493,031 7.06% Facilities Maintenance1,265,337 1,246,439 1,349,365 1,405,236 1,407,116 74,766 1,332,350 5.31% Information Resources1,709,255 1,596,487 1,683,216 1,650,478 1,622,619 73,318 1,549,301 4.52% Communications & Marketing828,004 710,334 970,934 801,034 974,064 67,910 906,154 6.97%Total General Government9,998,514$ 9,345,531$ 9,963,291$ 9,383,294$ 10,503,773$ 579,534$ 9,924,239$ 5.52% Public Safety: Police10,853,821$ 10,611,141$ 11,307,863$ 11,347,492$ 11,846,760$ 889,280$ 10,957,480$ 7.51% Fire Protection5,040,703 4,764,337 4,998,636 5,066,689 5,364,179 375,912 4,988,267 7.01% Building 2,696,585 2,321,664 2,571,968 2,482,638 2,712,400 196,250 2,516,150 7.24%Total Public Safety18,591,109$ 17,697,142$ 18,878,467$ 18,896,819$ 19,923,339$ 1,461,442$ 18,461,897$ 7.34% Operations: Public Works Administration273,318$ 216,899$ 249,256$ 239,769$ 255,766$ 19,364$ 236,402$ 7.57% Public Works Operations3,331,966 3,168,538 3,285,820 2,955,669 3,523,669 148,196 3,375,473 4.21% Vehicle Maintenance1,278,827 1,207,998 1,303,159 1,221,878 1,368,929 107,925 1,261,004 7.88% Engineering551,285 531,801 523,547 655,867 556,115 31,905 524,210 5.74%Total Operations5,435,396$ 5,125,236$ 5,361,782$ 5,073,183$ 5,704,479$ 307,390$ 5,397,089$ 5.39% Parks and Recreation: Organized Recreation1,637,002 1,369,309 1,639,358 1,518,083 1,769,060 97,513 1,671,547 5.51% Recreation Center2,061,394 1,864,459 2,082,697 2,198,272 2,274,043 105,072 2,168,971 4.62% Park Maintenance1,906,363 1,802,534 1,916,643 1,856,421 2,034,509 151,788 1,882,721 7.46% Westwood Nature Center748,683 606,378 736,515 651,907 794,170 52,771 741,399 6.64% Natural Resources504,143 433,362 496,497 412,015 612,110 7,463 604,647 1.22%Total Parks and Recreation6,857,585$ 6,076,042$ 6,871,710$ 6,636,698$ 7,483,892$ 414,608$ 7,069,284$ 5.54% Other Depts and Non-Departmental: Racial Equity and Inclusion 314,077$ 272,994$ 341,293$ 185,280$ 292,194$ 2,766$ 289,428$ 0.95% Sustainability497,484 244,655 432,043 297,217 404,890 21,091 383,799 5.21% Transfers Out4,878,845 4,450,000 Contingency and Other144,860 225,000 67,183 Total Other Depts and Non-Departmental811,561$ 662,509$ 5,877,181$ 4,999,680$ 697,084$ 23,856$ 673,228$ 3.42%Total General Fund Expenditures41,694,165$ 38,906,460$ 46,952,431$ 44,989,674$ 44,312,567$ 2,786,831$ 41,525,736$ 6.29%Study session meeting of February 28, 2022 (Item No. 3) Title: January 2022 monthly financial reportPage 2 Meeting: Study session Meeting date: February 28, 2022 Written report: 4 Executive summary Title: Fourth quarter investment report (Oct. – Dec. 2021) Recommended action: No action required at this time. Policy consideration: Reporting on investments each quarter is part of our financial management policies. Summary: The quarterly investment report provides an overview of the city’s investment portfolio, including the types of investments held, length of maturity and yield. Financial or budget considerations: The total portfolio value on Dec. 31, 2021 was $92.3 million . Approximately $32 million of the portfolio continues to be invested in securities that include commercial paper, certificates of deposit, U.S. Treasury notes, Federal agency bonds and municipal debt securities. The rest of the portfolio is held in money market accounts for bond project expenditures and operating cashflow needs between property tax settlements, as well as future investment opportunities when interest rates improve . The overall yield to maturity is .52% compared to .61% at the end of the prior quarter and .73% at the end of 2020. Strategic priority consideration: Not applicable. Supporting documents: Discussion Investment portfolio summary Prepared by: Darla Monson, accountant Reviewed by: Melanie Schmitt, chief financial officer Approved by: Kim Keller, city manager Study session meeting of February 28, 2022 (Item No. 4) Page 2 Title: Fourth quarter investment report (Oct. – Dec. 2021) Discussion Background: The city’s investment portfolio is focused on cash flow needs and investment in longer term securities in accordance with Minnesota Statute 118A and the city’s investment policy objectives of: 1) preservation of capital; 2) liquidity; and 3) return on investment. Present considerations: The total portfolio value increased by $12 million to $92.3 million compared to $80.2 million at the end of the prior quarter. The increase was primarily in the money market accounts due to the receipt of the second half tax settlement on December 1. With the continued low interest rate environment, the overall yield to maturity of the portfolio remained nearly the same throughout 2021. The combined yield including both liquid funds held in money market accounts and long-term investments was .52% at December 31. Interest rates on money markets continue to be near zero as they have been for the past year. The yield to maturity on the $32 million of longer-term securities in the portfolio is 1.45%. The two-year Treasury was at .73% on Dec. 31, 2021, which is a typical benchmark used by cities for yield comparison of their portfolio . The money market accounts include $6.75 million of bond proceeds to finish current projects that are in progress as well as upcoming capital improvement projects in 2022. It is also necessary to keep sufficient cash available in money market accounts for on-going cashflow needs for payroll and operating expenses between the June/July and December property tax settlements, as well as having liquidity to purchase longer term investments when interest rates improve. The portfolio ’s $32 million of longer-term securities includ es U.S. Treasury notes ($24.6 mil), Federal agency bonds ($3.1 mil), municipal debt ($2.6 mil), certificates of deposit ($1.2 mil) and commercial paper ($800K). Agency bonds are issued by government agencies such as the Federal Home Loan Bank and Fannie Mae . Municipal bonds are issued by states, local governments or school districts to finance special projects, similar to when the city issues debt. Commercial paper are promissory notes with short maturity periods issued by financial institutions and large corporations and usually have higher rates than money market accounts for investing cash in the shorter term. One agency bond and a Treasury security matured during the quarter and were replaced with 3 municipal debt securities and 3 CDs. Two CDs were also purchased in the 4M Fund with cash from a money market. The CDs all have terms of a year or less with rates from .2% to .35%. The debt securities added to the portfolio range from 1.35% to 1.7% and 5 to 7 years. This table summarizes the City’s portfolio at December 31, 2021: Next steps: None at this time. 9/30/21 12/31/21 <1 Year 69% 77% 1-2 Years 10% 3% 2-3 Years 8% 9% 3-4 Years 10% 9% >4 Years 3% 2% 9/30/21 12/31/21 Money Markets/Cash $48,314,285 $59,961,590 Commercial Paper $799,496 $799,640 Certificates of Deposit $0 $1,234,079 Municipal Debt $877,743 $2,567,479 Agencies/Treasuries $30,244,543 $27,741,466 City of St. Louis Park Investment Portfolio Summary December 31, 2021 Institution/Broker Investment Type CUSIP Maturity Date Yield To Maturity Par Value Market Value at 12/31/2021 Estimated Avg Annual Income 4M Fund Liquid Asset Money Market 0.01%16,821,608 16,821,608 1,682 4M Fund Plus Money Market 0.03%33,002,121 33,002,121 9,901 UBS Institutional Money Market 0.01% 3,379,777 3,379,777 338 UBS Institutional Money Market (bond proceeds)0.01% 6,758,085 6,758,085 676 59,961,590 UBS Comm Paper - Natixis NY 63873KCR6 03/25/2022 0.16% 800,000 799,640 1,280 799,640 UBS CD - Merchants Bank, IN 588493MU7 03/23/2022 0.30% 245,000 245,027 735 UBS CD - Northpointe Bank, MI 666613JY1 03/28/2022 0.30% 245,000 245,029 735 UBS CD - Bank Hapoalim, NY 06251A3L2 06/29/2022 0.35% 245,000 245,123 858 4M Fund CD - Western Alliance / Torrey Pines Bnk, CA 11/16/2022 0.20% 249,400 249,400 499 4M Fund CD - Greenstate Credit Union, IA 11/16/2022 0.20% 249,500 249,500 499 1,234,079 UBS Muni Debt - Minnesota State Txble GO 60412ASE4 08/01/2022 1.76% 200,000 203,054 3,520 UBS Muni Debt - San Jose CA Txbl GO 798135H51 09/01/2023 2.13% 650,000 666,627 13,845 UBS Muni Debt - North Dakota Pub Fin Auth Tax 65887PWD3 12/01/2026 1.35% 500,000 502,630 6,755 UBS Muni Debt - Alabama Fed Aid Hwy Fin Tax 010268CP3 09/01/2027 1.50% 700,000 697,613 10,521 UBS Muni Debt - San Ramon Valley CA Uni Tax 7994082H1 08/01/2028 1.69% 500,000 497,555 8,450 2,567,479 UBS Fannie Mae 3135G0U92 01/11/2022 2.65% 400,000 400,228 10,600 UBS US Treasury Note 912828X47 04/30/2022 2.12% 500,000 502,840 10,600 UBS US Treasury Note 912828X47 04/30/2022 2.18% 800,000 804,544 17,440 UBS US Treasury Note 912828X47 04/30/2022 2.69% 1,300,000 1,307,384 34,970 UBS US Treasury Note 912828TJ9 08/15/2022 2.76% 430,000 433,681 11,868 UBS US Treasury Note 912828N30 12/31/2022 2.78% 925,000 940,355 25,715 UBS US Treasury Note 912828N30 12/31/2022 2.51% 2,550,000 2,592,330 64,005 UBS US Treasury Note 912828N30 12/31/2022 2.55% 1,675,000 1,702,805 42,713 UBS FHLB 3130AJ7E3 02/17/2023 1.44% 620,000 626,653 8,928 UBS US Treasury Note 912828R69 05/31/2023 2.53% 1,000,000 1,015,120 25,300 UBS US Treasury Note 912828R69 05/31/2023 1.83% 350,000 355,292 6,405 UBS US Treasury Note 912828T91 10/31/2023 1.55% 75,000 76,268 1,163 UBS US Treasury Note 912828T91 10/31/2023 1.48% 450,000 457,610 6,660 UBS FHLB 3130AFW94 02/13/2024 2.58% 500,000 518,055 12,900 UBS US Treasury Note 912828XX3 06/30/2024 1.55% 1,050,000 1,079,537 16,275 UBS US Treasury Note 912828XX3 06/30/2024 1.66% 1,150,000 1,182,350 19,090 UBS US Treasury Note 912828XX3 06/30/2024 0.85% 260,000 267,314 2,210 UBS US Treasury Note 912828XX3 06/30/2024 1.36% 350,000 359,846 4,760 UBS US Treasury Note 912828XX3 06/30/2024 1.66% 1,150,000 1,182,350 19,090 UBS US Treasury Note 912828XX3 06/30/2024 0.41% 475,000 488,362 1,948 UBS FHLB 3130AGWK7 08/15/2024 1.55% 175,000 177,846 2,713 UBS US Treasury Note 91282CCT6 08/15/2024 0.41% 850,000 838,976 3,485 UBS US Treasury Note 912828YY0 12/31/2024 0.32% 1,900,000 1,943,871 6,080 UBS Fannie Mae 3135G0X24 01/07/2025 1.69% 650,000 661,876 10,985 UBS Freddie Mac 3137EAEP0 02/12/2025 1.52% 750,000 760,980 11,400 UBS US Treasury Note 912828ZW3 06/30/2025 0.36% 150,000 145,782 540 UBS US Treasury Note 912828ZW3 06/30/2025 0.58% 725,000 704,613 4,205 UBS US Treasury Note 912828ZW3 06/30/2025 0.39% 3,300,000 3,207,204 12,870 UBS US Treasury Note 912828ZW3 06/30/2025 0.72% 575,000 558,831 4,140 UBS US Treasury Note 91282CBC4 12/31/2025 0.75% 725,000 703,054 5,438 UBS US Treasury Note 91282CBC4 12/31/2025 0.70% 750,000 727,298 5,250 UBS US Treasury Note 91282CBC4 12/31/2025 0.82% 350,000 339,406 2,870 UBS US Treasury Note 91282CBC4 12/31/2025 0.57% 700,000 678,811 3,990 27,741,466 GRAND TOTAL 92,304,254 476,896 Current Portfolio Yield To Maturity 0.52% Page 2 Study session meeting of February 28, 2022 (Item No. 4) Title: Fourth quarter investment report (Oct. – Dec. 2021) Meeting: Study session Meeting date: February 28, 2022 Written report: 5 Executive summary Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment (Ward 2) Recommended action: None at this time. Policy consideration: Does the EDA/city council still support staff and the applicant working toward formal applications based on the updated concept plans and project program? Summary: Sherman Associates proposes to construct the following building components on the 6.6-acre site at the southeast corner of CSAH 25 and Beltline Boulevard, located in Ward 2: •Seven-story mixed-use building with six levels of market rate housing (156 units) and approximately 21,000 square feet of neighborhood commercial space, potentially anchored by a grocer. •Five -story market rate apartment building with 146 units and underground parking. •Four-story all affordable apartment building with 82 units and underground parking. Of these, 77 units w ould be available at 60% AMI, five units would be available at 30% AMI and 22 units w ould be three -bedrooms. •A 590-stall parking ramp, including 268 park and ride stalls, 322 residential stalls and approximately 2,000 square feet of retail/commercial space. •Sustainable features including on and off-site solar, greenspace, plazas, and public art distributed throughout the development. The development will adhere to the city’s green building policy as amended July 2020. The EDA/city council received a staff report pertaining to the development in Nov. 2021 which explained high ground water on site and the need to redistribute underground parking to the above ground parking ramp. During the last several months, the development team has been drafting detailed development plans and preparing for formal planning and zoning application submittals. In Jan. 2022, Sherman Associates was awarded $13.7 million in Low Income Housing Tax Credit (LI HTC) bonds from the State of Minnesota to finance a portion of the all-affordable 82-unit building. These bonds require the developer to close on development financing no late r than July 10, 2022, and to start construction shortly thereafter. Due to the timing of approvals by various governing bodies, the developer phased their planning applications and applied for a comprehensive plan amendment on Jan. 18, 2022, and the remainder of the applications on Feb. 16, 2022. City council is scheduled to consider the comprehensive plan amendment on March 7, 2022, and applications for a plat, a PUD, and multiple vacations on April 4, 2022. Financial or budget considerations: See EDA report from June 14, 2021 related to the application for tax increment financing assistance. 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, senior planner Reviewed by: Greg Hunt, economic development manager; Sean Walther, planning manager Karen Barton, community development director Approve d by: Kim Keller, city manager Study session meeting of February 28, 2022 (Item No. 5 ) Page 2 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Discussion Site information: The proposed redevelopment site is in the southeast quadrant of CSAH 25 and Beltline Boulevard. The site is immediately north of the Southwest Light Rail (SWLRT) Beltline Boulevard Station and is in the Triangle neighborhood. Site area (acres): 6.6 acres Current use: Vacant land Surrounding land uses: North: CSAH25 East: General Office Products South: SWLRT Beltline Station West: Beltline Boulevard Current 2040 land use guidance Current zoning TOD - transit oriented development I-G general industrial ROW - right of way Proposed 2040 land use guidance Proposed zoning TOD - transit oriented development PUD planned unit development ROW - right of way Study session meeting of February 28, 2022 (Item No. 5 ) Page 3 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Background: In 2015 the EDA was awarded a $6.4 million -dollar federal grant to construct a multi-level parking ramp in lieu of a large surface parking lot to serve the park and ride needs of the SWLRT at the Beltline Station. In summer 2017, the EDA entered into a preliminary development agreement with Sherman Associates (“developer”) to construct a development that meets the EDA/city’s objectives for the site which included: • Construct a signature, transit-oriented development (TOD). • Tran sform the SWLRT Beltline Boulevard Station Redevelopment Site into an active, TOD-focused place with: − Mixed use development (including multi-family residential, office and small commercial components), − Housing density to support transit ridership, − Mixed income housing (both market rate and affordable), and − High -quality shared site amenities . • Optimize the site’s development and employment potential. • Integrate development with the adjacent SWLRT Beltline Boulevard Station and connect with the surrounding areas. • Build a parking structure for required park-and-ride purposes. • Demonstrate high standards for environmental sustainability. The EDA determined Sherman Associates’ proposal most closely aligned with the EDA/city’s vision, development objectives and preferred programming for the site . Staff and Sherman Associates have been working on details and financing of the project for the past several years. In June 2021, EDA/city council directed staff and Sherman Associates to move forward with the proposed concept plan for the site as presented in a study session. In November 2021 the EDA/city council were presented with a staff report and an updated site plan explaining the high ground water on site and the need to redistribute underground parking to the above ground parking ramp. Present considerations: During the last several months, the development team has been drafting detailed development plans and preparing for formal planning and zoning application submittals for the proposed development concept that was presented to the EDA/city council in November 2021. This proposal includes the following components: • Seven-story mixed-use building with 6 levels of market rate housing (156 units) and approximately 21,000 square feet of neighborhood commercial space, potentially anchored by a grocer. • Five -story market rate apartment building with 146 units and underground parking. • Four-story all affordable apartment building with 82 units and underground parking. Of these, 77 units would be available at 60% AMI , five units would be available at 30% AMI and 22 units would be three -bedrooms. • A 590-stall parking ramp includ ing 268 park and ride stalls, 322 residential stalls and approximately 2,000 square feet of retail/commercial space. • Sustainable features including on and off-site solar, greenspace, plazas, and public art distributed throughout the development. The development will adhere to the city’s green building policy as amended July 2020. Study session meeting of February 28, 2022 (Item No. 5 ) Page 4 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Proposed site plan In January 2022, Sherman Associates was awarded $13.7 million in Low Income Housing Tax Credit (LIHTC) bonds from the State of Minnesota to finance a portion of the all-affordable 82- unit building. These bonds require the developer to close on development financing no later than July 10, 2022, and to start construction shortly thereafter. It is now anticipated that all buildings will be under construction around the same time, with earth and utility work starting in July 2022. Due to the timing of approvals by various governing bodies, the developer phased its planning applications and applied for a comprehensive plan amendment on Jan. 18, 2022, to reguide portions of the site from right-of -way and railroad to transit-oriented development, and from transit-oriented development to right-of-way. These land use changes are necessitated by the infrastructure improvements being constructed as part of the Southwest Light Rail project and are required by the Metropolitan Council. The developer then submitted applications for a preliminary and final plat to combine numerous parcels into four developable lots, and a preliminary and final planned unit development (PUD) to establish the zoning for the site on Feb. 16, 2022. The city also submitted applications on Feb. 22, 2022, for various right-of-way and utility easements that are recorded on the site but are no longer needed for a public purpose. A virtual neighborhood meeting was held on Feb. 10, 2022. The develop ment team presented the proposed re development plans for the site. There were four neighborhood attendees at the meeting who asked questions about rooftop solar, the number of small retail spaces, Study session meeting of February 28, 2022 (Item No. 5 ) Page 5 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment pedestrian access through the site and to the light rail platform, impacts from the delay of the light rail construction, and if there are any interior amenities in the affordable building for children due to Minnesota’s cold winters. The developer answered the attendees’ questions and is going to explore adding interior play areas in the affordable building. Additionally, the developer provided a brief update on the potential, anchor commercial tenant in the mixed -use building. The developer had been in discussions with a co-op grocer but was unable to enter into an agreement with them. The developer is now in negotiations with another locally owned grocer that has about 10 Twin Cities locations. The developer hope s to be able to publicly confirm the grocer in the coming weeks. Overall, the neighborhood had positive comments about the proposed redevelopment. The recording of the meeting is on the city’s development projects webpage. The developer also expressed interest in having further community engagement specifically to seek input on the neighborhood commercial space in the parking ramp. The planning commission held a public hearing on the comprehensive plan amendment on Feb. 16, 2022 and voted 6 to 0 to recommend approval. City council is scheduled to consider the comprehensive plan amendment on March 7, 2022. The planning commission will hold a public hearing and make recommendations regarding the plat and PUD applications on March 16, 2022, and city council is tentatively scheduled to hold a public hearing on the vacations and consider the plat and PUD on April 4, 2022. Conceptual rendering of the Beltline Boulevard Station Redevelopment In addition, EDA staff and the EDA’s financial consultant Ehlers have been working with the development team to refine the financing request for the development and to negotiate the business terms of the Purchase and Redevelopment Contract. It is anticipated the EDA will receive a report on the business terms in late March/early April. The contract needs to be finalized and the sale of the land needs to occur no later than the end of June 2022 to retain the $13.7 million LIHTC bonds for the affordable building. Study session meeting of February 28, 2022 (Item No. 5 ) Page 6 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment A large component of the development is the construction of the parking ramp on the southwest corner of the site. The development team, city staff, and metro transit staff have been meeting bi-weekly to coordinate the design and approvals of the parking ramp. The final design will include the 268 parking spaces for park and ride purposes, 322 stalls dedicated for the residential buildings , approximately 2,000 square feet of leasable commercial space, and a Metro Transit bus driver restroom. 77 spaces are located below grade and are connected to building three via an underground tunnel, the 268 park and ride stalls are located on the middle levels of the ramp, and 229 spaces for building one are in the top floors of the ramp. There are separate ingress and egress points for the various ramp components. The commercial space is located on the southwest corner of the ramp near an elevator and stair tower. Immediately adjacent is a relocated Metro Transit drive r restroom. The restroom was originally planned to be located on the south side of the backage road but will now be incorporated in to the parking structure. Due to the SWLRT transportation easement obtained on the site, it has been determined by Metropolitan Council attorneys and the EDA’s legal counsel, that the park and ride spaces cannot formally be used for private purposes due to legal requirements tied to the federal funding. However, commercial users or residential visitors might occupy the park and ride stalls intermittently throughout the day without consent and it is unclear how Metro Transit will monitor and manage its parking. In accordance with federal funding requirements, it is proposed that the ramp will be owned by the EDA and leased back to Metro Transit and various Sherman Associate LLCs to provide required parking for SWLRT and the development. Metro Transit and Sherman Associates will be responsible for the long-term maintenance and operations of the ramp. A cooperative ramp agreement will be bro ught to the EDA for consideration and approval in the coming months. City council will also be asked to consider approval of a Registered Land Survey to legally define and record the various ownership portions within the ramp. Sherman Associates have also been working with Hennepin County and other utility companies to vacate county right-of-way along CSAH 25 and to vacate any unneeded private utility easements around and through the development site. Inclusionary housing policy: The development is subject to the city’s inclusionary housing policy as amended October 2021. The development would be mixed income with 82 units (20 percent) offered at affordable rents in one building. Specifically, 77 units would offer affordable rents to households at 60% AMI and five units would offer affordable rents to households at 30% AMI, exceeding the city’s inclusionary housing requirements. The development would also provide 22 three -bedroom units (27 percent of the affordable units) to accommodate larger families. • Family sized housing units. o 67 (82%) of the affordable units would be two bedrooms or larger. o 22 units (27%) would be three bedrooms. o The average unit floor area would be 1,029. • More deeply affordable units: Five (5) units at 30% AMI • Well-designed and quality housing units in any product type. Examples include: o Two- and three -bedroom units generally have two baths. Study session meeting of February 28, 2022 (Item No. 5 ) Page 7 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment o Structured/tempered parking. o Ample common area amenities to serve the needs of residents/families including indoor bicycle parking, a fitness room, club room, pet spa, and an amenity deck with an outdoor playground and splash pad. o Exterior building materials that complement and match the adjacent market rate buildings. o Most units would have a balcony or walk out patio. Green building policy: The development will exceed the city’s green building policy require ments as amended in July 2020. Examples of sustainable design standards Sherman has implemented in the past include LEED, Minnesota Green Communities, National Green Building Standards, SB2030/B3 and ENERGY STAR. Sherman developed, owns and operates two solar gardens under the community solar program totaling 6.75 megawatts. Buildings and tenants at Beltline Station could subscribe to Sherman’s solar gardens under the community solar program, which Sherman Associate s offers to its residents at a discounted rate. The developer also intends to provide onsite, rooftop solar. Climate Action Plan: The developer understands the city’s desire to reduce the city’s overall carbon emissions by 55 percent by 2030 and would contribute to the city’s goal of reducing vehicle emissions by 25 percent. The site is adjacent to the SWLRT Beltline Boulevard station and the Cedar Lake LRT Regional Trail creating great multimodal access immediately adjacent and surrounding the site. Mobility access includes LRT, sidewalks, multi-use trails, and frequent bus service once LRT is operational. These modes link the site to the immediate amenities, but also to the greater metro area without needing to rely on a vehicle. Next steps: The planning commission will hold a public hearing and make recommendations regarding the plat and PUD applications March 16, 2022, and city council is tentatively scheduled to hold a public hearing on the vacations and consider the plat and PUD on April 4, 2022. The EDA will receive a report on the business terms of the Purchase and Redevelopment Contract in late March or early April and will be asked to confirm the date to consider the establishment of the proposed TIF district and the Purchase and Redevelopment Contract between the EDA and Sherman Associates. Future actions: There are several approvals needed from the city and other agencies for this project to proceed. Requests for city council/EDA approvals include: 1. Financial assistance request 2. Utility and right-of-way vacations including vacation of the frontage road 3. Comprehensive plan amendment to re -guide right-of-way and railroad to transit- oriented development 4. Preliminary and final plat, including the creation of the right-of -way for the backage road and Monterey Drive 5. Preliminary and final PUD Study session meeting of February 28, 2022 (Item No. 5 ) Page 8 Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment 6. Transfer of the vacated frontage road right-of-way from the city to the EDA then to Sherman 7. Establishment of tax increment financing district 8. Purchase and Redevelopment Contract (including tax increment financing) Requests for other agencies 1. Metropolitan Council approval of comprehensive plan amendment 2. Hennepin County vacation of right of way along CSAH25 3. Metropolitan Council / Hennepin County approvals for relocation of the force sewer main 4. Metropolitan Council approval of the park and ride ramp design 0'40'80'160'240' N ARCHITECTURAL SITE PLAN A0.01 02/14/20222146.02BELTLINE BLVD. Surface Stalls Underground Enclosed Above Grade TOTAL Housing Ratio Building 1 2 0 247 (In Ramp)249 1.60 Building 2 36 59 0 82 1.00 Building 3 5 93 + 77 (In Ramp)0 188 1.29 Parking Ramp 0 See Above 268 (Metro Transit)268 Grocer Lot 53 0 0 53 TOTAL 96 229 497 840 1.35* SITE VEHICLE PARKING DATA * Does not include Metro Transit or Grocer Stalls HOUSING UNITS EXTERIOR SPACES INTERIOR SPACES Building 1 156 140 40 Building 2 82 12 79 Building 3 146 10 155 Grocer 10% of auto spaces 6 TOTAL 384 168 274 BIKE PARKING STALLS Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 9 1/24/2022 AERIAL VIEW FROM NW 2146.02BELTLINE BLVD. A0.10 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 10 1/24/2022 AERIAL VIEW FROM SW 2146.02BELTLINE BLVD. A0.11 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 11 1/24/2022 RENDERING - PARKING RAMP 2146.02BELTLINE BLVD. A0.12 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 12 1/24/2022 RENDERING - BUILDING 1 NW VIEW 2146.02BELTLINE BLVD. A0.13 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 13 1/24/2022 RENDERING - BUILDING 2 SW VIEW 2146.02BELTLINE BLVD. A0.14 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 14 1/24/2022 RENDERING - BUILDING 3 NE VIEW 2146.02BELTLINE BLVD. A0.15 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 15 1/24/2022 RENDERING - BUILDING 1 SE VIEW 2146.02BELTLINE BLVD. A0.16 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 16 1/24/2022 RENDERING - POCKET PARK 2146.02BELTLINE BLVD. A0.17 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 17 1/24/2022 RENDERING - BUILDING 3 SOUTH VIEW 2146.02BELTLINE BLVD. A0.18 02/14/2022 Study session meeting of February 28, 2022 (Item No. 5) Title: Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment Page 18