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HomeMy WebLinkAbout2022/03/21 - ADMIN - Agenda Packets - City Council - RegularAGENDA MARCH 21, 2022 The St. Louis Park City Council is meeting in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. Members of the public can attend in person or watch on local cable (Comcast SD channel 17 and HD channel 859) or via webstream at bit.ly/watchslpcouncil. Visit bit.ly/slpccagendas to view the agenda and reports. Due to technical challenges, courtesy call-in public comment is not available for this meeting. You can provide comment on agenda items in person at the council meeting or by emailing your comments to info@stlouispark.org by noon the day of the meeting. Comments must be related to an item on the meeting agenda. The city recognizes the value of the call-in opportunity to provide access to those who can’t attend meetings in person and is working on a reliable solution. 5:20 p.m. SPECIAL STUDY SESSION Discussion item 1. Public process expectations and outcomes Written report 2. Letter of Support to St. Louis Park School Board 6:20 p.m. ECONOMIC DEVELOPMENT AUTHORITY – council chambers 1.Roll call 2.Approval of EDA agenda 3.Approval of consent agenda and items on EDA consent calendar 3a. First amendment to preliminary development agreement – Wooddale Station LLC (Ward 2) Recommended action: Motion to adopt EDA Resolution approving the First Amendment to the Preliminary Development Agreement between the EDA and Wooddale Station LLC relative to the Wooddale Station Redevelopment Site. 4.Approval of EDA minutes -- None 5.Unfinished business – None 6.New business 6a. Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District (Ward 4) •Motion to adopt EDA Resolution decertifying the Wayzata Boulevard Tax Increment Financing District (a redevelopment district). •Motion to adopt EDA Resolution approving the establishment of the 9920 Wayzata Boulevard Tax Increment Financing District (a housing district). •Motion to adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the 9920 Wayzata Boulevard TIF District. Recommended action: Meeting of March 21, 2022 City c ouncil agenda 6b. Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC - Recommended action: Mayor to open the public hearing, take testimony and close the 7.Communications – None 6:30 p.m. CITY COUNCIL MEETING – council chambers 1.Call to order 1a. Pledge of allegiance 1b. Roll call 2.Presentations 2a. SWLRT construction overview and update 2b. Recognition of donations 3.Approval of minutes -- None 4.Approval of agenda and items on consent calendar Recommended action: **Motion to approve the agenda as presented and items listed on the consent calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from consent calendar to regular agenda for discussion.) 4a. Adopt Resolution approving acceptance of donations to the operations and recreation department totaling $793.84. 4b. Adopt Resolution approving the appointment of Dispatch Supervisor Eric Lammle as the primary representative from the police department to the Metropolitan Emergency Services Board (MESB), 9-1-1 Technical Operations Committee (TOC). 4c. Approve a special assessment agreement and adopt Resolution authorizing the special assessment for the Texa-Tonka shopping center sidewalk. 4d. Approve out-of-state travel for the mayor and council members. 4e . Approve for filing human rights commission minutes of Feb. 15, 2022. 5.Boards and commissions -- None 6.Public hearings 6a. Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District (Ward 4) Recommended action: Mayor to open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the 9920 Wayzata Boulevard Tax Increment Financing District (a housing district). 9920 Wayzata Blvd (Ward 4) hearing. Motion to adopt EDA Resolution approving the Purchase and Redevelopment Contract between the EDA and Bigos-9920 Wayzata, LLC. Meeting of March 21, 2022 City c ouncil agenda 7. Requests, petitions, and communications from the public – None 8. Resolutions, ordinances, motions and discussion items 8a. Resolution related to boundaries and polling locations for the 2022 election cycle Recommended action: Motion to adopt Resolution confirming ward boundaries, establishing precinct boundaries, and designating polling locations for the 2022 election cycle. 8b . Resolution accepting city manager’s six -month evaluation and adjusting compensation Recommended action: Motion to adopt Resolution for acceptance of the city manager’s six -month performance evaluation and adjusting compensation effective Feb. 16, 2022. 9. Communications 9a. Proposed study session agenda topics Recommended action: City council and city manager review the proposed study session agenda topics and decide next steps. **NOTE: The consent calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a councilmember or a member of the public, that item may be moved to an appropriate section of the regular agenda for discussion. St. Louis Park Economic Development Authority and regular city council meetings are carried live on civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for video on demand replays. During the COVID-19 pandemic, agendas will be posted on Fridays on the entrance doors to 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: Special study session Meeting date: March 21, 2022 Discussion item : 1 Executive summary Title: Public process expectations and outcomes Recommended action: No action at this time . Action may be required at future study session or council meetings regarding the community and civic engagement system. Policy consideration: This discussion follows the Feb. 28, 2022, study session topic that introduced the community and civic engagement system and framework. To night’s policy questions include: •Does the council still support the public participation policy guidance provided to staff in 2016 (on page 2)? •What outcomes will assure the council that the city has conducted a successful public participation process? Summary: Tonight’s meeting is part of a series of meetings on community and civic engagement. Council is asked to share their thoughts and discuss the policy considerations. Financial or budget considerations: Many capital project budgets include limited funding for creative approaches to public process. Additionally, the communications and marketing budget includes funding for staffing and platforms that allow for public process, including the city website, GovDelivery, mailed publications and others. Defined costs for any of these tools or projects are available on request. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion 2021 public process survey responses Feb. 28, 2022, city council study session report Prepared by: Jacque Smith, interim information resources director Reviewed by: Karen Barton, community development director Deb Heiser, engineering director Michael Sund, elections specialist Cindy Walsh, deputy city manager Approve d by: Kim Keller, city manager Special study session meeting of March 21, 2022 (Item No. 1) Page 2 Title: Public process expectations and outcomes Discussion Background: Tonight’s discussion is about city council expectations and direction for public process and community engagement. In 2016 during a similar discussion, council provided the following feedback: • Public participation means that everyone who wants to be involved can be, that the process is accessible, and that we give people enough time to digest information and respond. • A successful public participation process sets clear expectations about what type of input we’re requesting and what affect that input can have on the outcome of the process. • Successful public participation doesn’t mean that everyone agrees in the end; it means that the city provides adequate opportunity and information to allow community members who are affected and/or passionate about a topic to provide feedback. • Public participation means that staff strive to reach a wide range of people in a variety of creative ways. • Public participation works best for broad visioning. Further, staff have been operating with the understanding that public participation does not mean that everyone agrees at the end of the process and recognition that some people may choose not to participate. The council agreed that the city should use the Public Participation Spectrum from the International Association of Public Participation (IAP2) to identify public participation goals at the start of a project/process. (The IAP2 was reintroduced at the Feb. 28, 2022 study session.) In 2016, council further directed staff to set expectations at public meetings regarding what influence on the decision-making process residents would have, and at what point the council would make decisions . As a result of that discussion, an audit of city community engagement efforts was undertaken, with best practices resulting in a staff engagement tool called “Engage SLP!” This tool uses the public participation spectrum from the IAP2 to guide staff in developing their public processes. It’s available to all staff on the city employee intranet and has been refined and updated regularly. Since that time, staff have formed a community engagement workgroup that meets regularly to discuss upcoming opportunities and to share best practices. Engage SLP! primarily focuses on the pillars of Inform, Consult and Collaborate , although Involve may still be used for community-wide projects such as comprehensive plan development. Empower places final decision making in the hands of the public and often includes decisions the voters decide by ballot, such as elections and referendums. Since adopting this engagement tool, the city has successfully undertaken a variety of projects both large and small that involved intensive public process. Though any process can and often does engage with the public at different touchpoints along the engagement continuum, the example projects below have been plotted within the pillar most representative of the work. Special study session meeting of March 21, 2022 (Item No. 1) Page 3 Title: Public process expectations and outcomes Additionally, staff have used creative solutions to encourage public participation in a variety of routine projects, such as pavement management, playground equipment replacements, development project and others. The global pandemic of the past years has also resulted in new and innovative ways to elicit public participation, including virtual meetings and online tools. To date, results of public participation have been included in reports at council study sessions and meetings where the council is either discussing or deciding on a topic. The input is also used to guide decisions on future public participation processes, or related topics. In 2021, in preparation to revisit the public process discussion with council, staff asked council members to complete a short survey that covered the policy questions listed above. The responses to that survey are included in this report. Present considerations: To day’s discussion will be taken into consideration by staff when examining current public processes and to recommend expansion or adjustment where needed. Inform •Redistricting updates •Property tax assessment updates •Boards + Commissions recruitment Consult •Beltline SWLRT pedestrian improvements •Small area planning for Texa- Tonka and Historic Walker Lake •Dakota Edgewood pedestrian bridge •Ranked-choice voting implementation Involve •2040 Comprehensive Plan •Pavement management projects •Westwood Hills Nature Center interpretive center construction •Cable franchise needs assessment Collaborate •Climate action plan •Vision 3.0 •Race equity neighborhood engagement Special study session meeting of March 21, 2022 (Item No. 1) Page 4 Title: Public process expectations and outcomes Next steps: Additional dates for discussions related to the community and civic engagement system schedule are listed below. The dates are tentative and may be dependent on discussion outcomes from previous study sessions. Topic Meeting Date Description 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 Public participation survey (sent to council in July 2021) Introduction sent with emailed survey In 2016, the council discusse d a public participation process model and expectations for c ity projects and planning. In the five years since, city staff have used using the International Association for Public Participation (IAPP) public participation spectrum, agreed upon at the 2016 discussions with council. City council and staff will revisit this topic August 23, 2021, with a study session discussion of public process expectations and outcomes. The goal is to briefly recap public participation efforts over the past five years; to ensure that staff and city council continue to agree on the goals, methods and outcomes of a successful public participation process; and to make any adjustments necessary going forward. To prepare for the discussion, please complete this short survey about public participation: https://forms.gle/DFrHDbGUAfxQecRZ7. For the purposes of this survey, public participation is defined as processes focused on gathering information and feedback with a goal of m aking a decision. Responses At the highest level, what is the goal of public participation? •No stakeholders are surprised and all stakeholders feel like their perspectives have been considered and valued in a decision. •Major decisions about spending and policy are truly guided by resident input. There's a clear through-line from resident voice to the final product every time. •To create a more cohesive community. •To get information on priorities of the community and crafting policies that reflect this. •Gather insights about current and future desires for public projects. Ensure city council is not making decisions in a vacuum. What does successful public participation look like to you? •For an issue and/or decision: to have all stakeholders be aware of it, have an easy way to provide input, and to feel like they've been heard. A key point is that "easy" is based on the stakeholder's perspective. •A system of gathering public input that people are used to, expect, and engage in routinely and happily because that's part of living here. Clear, simple, user-friendly methods and tools to gather and synthesize that public input. Residents knowing that their input is being gathered and shared at the right time to actually influence spending & policy decisions. To my mind a quality phone app/survey tool could be a great primary tool for this. •Public engagement of all stakeholders. That outreach will look different for everyone. •There is clear understanding about process (show a journey map) and efforts are made to solicit a broad array of perspectives. Page 5 Special study session meeting of March 21, 2022 (Item No. 1) Title: Public process expectations and outcomes Do you have an example of a process or project that was successful in engaging the community? Describe the process or project. •It felt like the engagement on the Beltline Blvd SWLRT pedestrian improvement project from late 2020 was especially good, especially given COVID. I think also the engagement done by the elections team has been excellent, especially in our 2020 election cycle. •Beltline Boulevard pedestrian safety improvements project, during the height of the pandemic. An online survey garnered a lot of responses (not sure the number), and an online meeting drew I believe 40-50 participants who had all their questions well-answered by staff and consultants. •The work that Springboard for the Arts in St. Paul lead with the Irrigate project during light rail construction. This has morphed into the ArtTrain initiative led by Jun-Li Wang at Springboard. We should look at this! •Vision 3.0 seemed like it was a good process - and it didn't follow all of the usual public meeting at City Hall. We were located in areas where we knew stakeholders would be. •TexaTonka small area plan Do you have an example of a process or project that was NOT successful in engaging the community? Describe the process or project. •I came in near the end of the Wooddale bikeway project, so I can't comment on the full process. But it seemed like the engagement extended for too long and wound up being fairly acrimonious. That said, there was a LOT of engagement on it, and much of it that I saw was done quite well. •I don't believe the ROC project successfully engaged the community in ascertaining whether a $10M+ allocation of resources was supported by a broad swath of the community. I was not on c ouncil at the time, but from a residents' perspective, I felt the project benefited a small but vocal minority of residents and that my views and those of my neighbors didn't matter. •Nearly all the Connect the Park segments (through no fault of staff) •I think some of the public meetings right now are challenging. Not everyone has access to internet or timing is off. It could be a COVID-19 thing. •Most bicycle and sidewalk projects If you are in a situation where you have to make a difficult decision about a process or project, what would give you confidence that the city's public participation methods were sufficient? •Personally: That I feel like I've heard all sides of an issue, especially points with which I don't agree. A nd that I have a response to those points. From a Council perspective - I want to make sure that we've all heard all the different perspectives and that all objections to a decision we're making are understood and responded to. •Great question. Part of that would be up to me as a council member - reaching out to people in my ward and inviting their input, which I do regularly, and do get a pretty good response. I think a couple other elements would make it even better - (1) providing the public an opportunity to weigh in on the process or project at a council meeting (both virtual and in-person options), even if it takes a lot of time to hear what they have to say; and (2) being able to review input provided through a phone/online survey that a high number of residents from diverse backgrounds have responded to. •When staff talks about their methodology and rationale for strategy, I feel pretty confident. Page 6 Special study session meeting of March 21, 2022 (Item No. 1) Title: Public process expectations and outcomes Meeting: Special study session Meeting date: March 21, 2022 Written report: 2 Executive summary Title: Letter of Support to St. Louis Park School Board Recommended action: This report explains the human rights commission’s (HRC) recommendation for a co-signed letter of support to the St. Louis Park school board after recent racially motivated incidents at a high school athletic event. Council is asked to provide guidance to the city manager on next steps: co-sign letter of support as is or other next step as identified by council. Policy consideration: Does the city council wish to co -sign the draft letter of support to the St. Louis Park school board as recommended by the human rights commission ? Summary: The HRC’s mission is to advise the council in its efforts to ensure protection of human rights, and to cultivate a community that embraces the principles of equity and respect for all. The commission is comprised of a school board appointee (Superintendent Astein Osei is the current HRC commission member appointed by the school board), two youth members (current S t. Louis Park high school students), and seven regular members. Recently, a racially motivated incident at a St. Louis Park high school hockey game prompted the school’s athletic director to cease competition with a conference rival and call for an end to similar instances. The HRC youth members have said what is important to them is a public statement of support for our students to show that we stand with the school in their decision to end competition with this other district. The HRC has drafted a letter to the St. Louis Park School Board and is recommending that the city council co-sign the letter to show broad city support for our school district’s actions and solidarity with our students. Financial or budget considerations: None Strategic priority consideration: St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. Supporting documents: Discussion Draft letter of support Prepared by: Ali Timpone, HR director/staff liaison to the human rights commission Approved by: Kim Keller, city manager Special study session meeting of March 21, 2022 (Item No. 2) Page 2 Title: Letter of Support to St. Louis Park School Board Discussion Recent incident: The St. Louis Park athletic director sent a letter to the New Prague activities director stating that St. Louis Park would no longer compete with New Prague high school after a racially motivated behavior was directed at St. Louis Park athletes at a boy’s hockey game on February 15. St. Louis Park also removed the New Prague banner from their gymnasium. The incident was publicized widely in the metro area, as Robbinsdale Cooper dealt with a similar incident from New Prague supporters at a girls basketball game. S t. Louis Park Schools indicate that this pause on competition will continue until the “harm that was caused is repaired” and the school can be assured that students “will not be victimized by racism by any New Prague stakeholder in the future.” H RC recommendation: The HRC members, who include the St. Louis Park school superintendent and two youth members, felt that their mission to cultivate a community that embraces the principles of equity and respect for all provided them with the unique opportunity to reach out to the school district with a message of support and an open door for further partnership and collaboration. Councilmember Dumalag has indicated support for the HRC’s recommendation and would be willing to answer questions or provide additional background information. Next steps: Council is asked to provide guidance to the city manager on next steps. Options include: 1.Co-sign the letter (attached) with the HRC or 2.Other action Special study session meeting of March 21, 2022 (Item No. 2) Page 3 Title: Letter of Support to St. Louis Park School Board DRAFT LETTER OF SUPPORT March 22, 2022 St. Louis Park School Board District Office 6311 Wayzata Blvd St. Louis Park, MN 55416 Dear Chair Casey and members of the St. Louis Park School Board: The City of St. Louis Park City Council and Human Rights Commission stand with the St. Louis Park high school students and athletic department in their decision not to compete with the New Prague school district due to a recent racist act. Further, we commend Athletic Director Andrew Ewald for his vocal anti-racist statements and swift action. We also stand in solidarity with other high school sports teams who have endured racist incidents from New Prague and other districts or communities. Racism is not welcome in St. Louis Park, and it is our collective duty to speak up and stand up in the face of injustice. All athletes deserve to play sports in safe and respectful environments. Racism is a cornerstone of our United States history that must be eliminated. Systems of oppression continue to persist in all our communities. Those who wish to denounce racism and its harmful effects must first acknowledge actions that have a racist impact. The human rights commission’s mission is to support the community and city’s strategic priority of racial equity and inclusion. We believe that a just and inclusive community is achievable in St. Louis Park. We work in partnership with other community organizations and with the city council to achieve our mission and vision. We believe that showing our solidarity with St. Louis Park students and athletes is an important part of our work. Please convey our support to the student body at St. Louis Park and reach out to HRC staff liaison Ali Timpone, atimpone@stlouispark.org, if you or your students wish to connect or work together to further advance our mission. S incerely, S t. Louis Park Human Rights Commission St. Louis Park City Council Meeting: Economic development authority Meeting date: March 21, 2022 Consent agenda item: 3a Executive summary Title: First amendment to preliminary development agreement – Wooddale Station LLC (Ward 2) Recommended action: Motion to adopt EDA Resolution approving the First Amendment to the Preliminary Development Agreement between the EDA and Wooddale Station LLC relative to the Wooddale Station Redevelopment Site. 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 mutually accep table mixed -use, transit-oriented development plan for the Wooddale Station Redevelopment Site? Summary: On Feb. 16, 2021, the 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 name , Wooddale Station LLC. In the PDA, all parties pledge d to work cooperatively together toward a mutually acceptable mixed-use redevelopment plan for the Wooddale Station Redevelopment Site. 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 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. 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 they hope to reach a mutually acce ptable purchase and redevelopment agreement. The purpose of the PDA is to formalize the respective parties’ responsibilities relative to further defining a redevelopment plan consistent with the parties’ mutual objectives for the Wooddale Station Development. The PDA provides Wooddale Station LLC with formal permission to access the Site in order to continue conducting its due diligence. The PDA also provides Wooddale Station LLC with exclusive rights to negotiate acquisition of the subject property with the EDA. This is essential as it provides the development team with assurance of its ability to secure the subject property once a mutually acceptable redevelopment plan for the site has been reached. Financial or budget considerations: No other major revisions are proposed to the PDA. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: EDA Resolutio n First Amendment to Preliminary Development Agreement Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Michele Schnitker, housing manager/deputy community development director Approve d by: Cindy Walsh, deputy city manager/operations and recreation director Economic development authority meeting of March 21, 2022 (Item No. 3a) Page 2 Title: First amendment to preliminary development agreement – Wooddale Station LLC St. Louis Park Economic Development Authority EDA Resolution No. 22-____ Resolution Approving a First Amendment to the Preliminary Development Agreement between the St. Louis Park Economic Develo pment Authority and Wooddale Station LLC Whereas, pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1081, as amended, the St. Louis Park Economic Development Authority (the “Authority”) administers its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the redevelopment of certain substandard property within the Project; and Whereas, the Authority owns certain property within the Project (the “Authority Parcel”) and Wooddale Station LLC (the “Developer”) has an executed purchase agreement on certain other property adjacent to the Authority Parcel within the Project (the “Third -Party Parcel” and together with the Authority Parcel, the “Development Property”), all located on the south side of the proposed Southwest LRT Wooddale Station; and Whereas, the Development Property has been the subject of certain preliminary negotiations between the parties for purposes of constructing a mixed-use (multi-family residential and commercial) development on the Development Property , together with related parking (the “Development”); and Whereas, the Authority and the Developer executed a Preliminary Development Agreement, dated as of Feb. 16, 2021 (the “Agreement”), providing for the performance of certain activities on the part of the parties in preparation for the negotiation of a definitive Purchase and Redevelopment Contract in connection with the Development Property; and Whereas, the parties have negotiated and now propose to execute a First Amendment to the Agreement to extend the deadline for the completion of necessary preliminary activities and to reflect additional updates relating to the Development. Now therefore be it resolved by the St. Louis Park Economic Development Authority that the First Amendment to the Agreement as presented to the Board of Commissioners is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the First Amendment to the Agreement by such officials shall be conclusive evidence of approval. It is further resolved that the President and Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment to the Agreement and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. Economic development authority meeting of March 21, 2022 (Item No. 3a) Page 3 Title: First amendment to preliminary development agreement – Wooddale Station LLC It is further resolved that Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Reviewed for Administration: Adopted by the Economic Development Authority March 21, 2022 Karen Barton , e xecutive director Margaret Rog, president Attest Melissa Kennedy, secretary FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT (this “First Amendment”), dated March __, 2022, by and between the ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of the State of Minnesota (the “Authority”), and WOODDALE STATION LLC, a Minnesota limited liability company (the “Developer”); WITNESSETH: WHEREAS, the Authority desires to promote development of certain property within Redevelopment Project No. 1 (the “Project”) in the City of St. Louis Park (the “City”) depicted and described in Exhibit A hereof (the “Property”); and WHEREAS, the Property is made up of two parcels, with the 5950 36th Street West parcel owned by the Authority (the “Authority Parcel”) and the 5802 36th Street West parcel owned by a third party (the “Third-Party Parcel”); and WHEREAS, the Authority previously determined that it is in the best interests of the City that the Developer be designated as the sole developer of the Property during the term of an initial Preliminary Development Agreement between the parties, dated as of February 16, 2021 (the “Agreement”); and WHEREAS, the parties have worked diligently to perform their obligations under the Agreement and now wish to extend the term of the Agreement and update certain provisions of the Agreement pursuant to this First Amendment; and WHEREAS, all capitalized terms set forth in this First Amendment not otherwise defined herein shall have the meanings set forth in the Agreement. NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the Authority and the Developer hereby agree as follows: 1.During the term of this First Amendment, the parties agree to continue working cooperatively toward the goals outlined in the Agreement, pursuant to its terms. 2.Paragraph 2 of the Agreement is hereby deleted in its entirety and replaced with the following: The parties agree to work cooperatively towards defining the Development and its components (including but not limited to site design, building plans and specifications, commercial and community space square footages, number and type of market-rate and affordable residential units, building stories and height, sustainable and Transit Oriented Development (TOD) components, public art and structured parking, stormwater management, streets and sidewalks, and all other necessary public infrastructure improvements), determining its financial feasibility, the infrastructure necessary to service it, and the approvals necessary to bring it to fruition, as well as to negotiate in good faith toward a Page 4 Economic development authority meeting of March 21, 2022 (Item No. 3a) Title: First amendment to preliminary development agreement – Wooddale Station LLC definitive Purchase and Redevelopment Contract (the “Contract”) and a related planning development contract regarding the Development, all generally consistent with the concept proposal for the Development presented to the Authority by the Developer on March 21, 2022 (the “Concept Proposal”). Certain particulars of the Concept Proposal, including initial renderings, site plan, and other development metrics, are attached hereto as Exhibit B. The parties agree that negotiation and approval of the Contract shall be based on the Concept Proposal, including the Exhibit B metrics, to the extent determined to be feasible and warranted based on evaluation and review by the parties of the relevant facts pursuant to this Agreement. 3.Paragraph 5 of the Agreement is hereby deleted and replaced with the following: Developer has executed a purchase agreement (the “Third Party Purchase Agreement”) with the owner of the Third-Party Parcel for Developer’s acquisition of such parcel. Developer understands that the Authority will not exercise any condemnation power or intervene in any way to facilitate the acquisition of the Third-Party Parcel by the Developer, and that any obligation of the parties to proceed to a definitive Contract for the Authority Parcel is subject to Developer’s ability to acquire the Third-Party Parcel in an arms-length transaction with the current owner. To this effect, Developer has secured the Third-Party Purchase Agreement. If the Third-Party Purchase Agreement is found to not be feasible or is terminated for any reason, Developer shall provide notice of the same to Authority, and Developer shall have thirty (30) days after the giving of such notice to propose a revised development (not including the Third- Party Parcel) to the Authority (the “Revised Proposal”). Approval of such Revised Proposal shall be at the sole discretion of the Authority. If the Authority approves the Revised Proposal, this Agreement shall continue according to its terms. If the Authority rejects the Revised Proposal, this Agreement shall terminate pursuant to paragraph 18 hereof. 4.Paragraph 18 of the Agreement is hereby deleted in its entirety and replaced with the following: This Agreement shall terminate by its terms if the Third-Party Purchase Agreement is found to not be feasible or is terminated for any reason and the Revised Proposal has not been preliminarily approved by the Authority within 60 days after receipt of such Revised Proposal from Developer, or if the governing body of the Authority has not approved the Contract by May 31, 2023. Upon such termination, the Developer remains obligated to pay any costs payable pursuant to this Agreement that were incurred by the Authority prior to such date. The Developer acknowledges that all Development Deposit amounts are nonrefundable if this Agreement terminates pursuant to this paragraph or due to the failure of either of the conditions set forth in paragraphs 14(a) or (b), but Developer and the Authority agree that in the event of such termination, all Development Deposit amounts shall be applied to any sums owed by Developer pursuant to Section 15. Time is of the essence of this Agreement. 5.Exhibit B to the Agreement is hereby deleted and replaced with Exhibit B attached hereto. Page 5 Economic development authority meeting of March 21, 2022 (Item No. 3a) Title: First amendment to preliminary development agreement – Wooddale Station LLC 6.Except as amended by this First Amendment, the Agreement shall remain in full force and effect. Upon execution, the Developer shall reimburse the Authority for all reasonable out-of- pocket costs incurred by the Authority in connection with negotiating, drafting and approval of this First Amendment. (The remainder of this page is intentionally left blank.) Page 6 Economic development authority meeting of March 21, 2022 (Item No. 3a) Title: First amendment to preliminary development agreement – Wooddale Station LLC IN WITNESS WHEREOF, the City and Authority have caused this First Amendment to be duly executed in their name and behalf and their seal to be duly affixed hereto and the Developer has caused this First Amendment to be duly executed as of the date and year first above written. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of the State of Minnesota By: _________________________________ Its President By: _________________________________ Its Executive Director Page 7 Economic development authority meeting of March 21, 2022 (Item No. 3a) Title: First amendment to preliminary development agreement – Wooddale Station LLC WOODDALE STATION LLC, a Minnesota limited liability company By: Wooddale Station Manager LLC, a Minnesota limited liability company its Managing Member By: Saturday Properties LLC, a Minnesota limited liability company Its: Member By: ________________________________ Name: _____________________________ Its: ________________________________ By: Anderson Companies Development, LLC a Minnesota limited liability company Its: Member By: ________________________________ Name: _____________________________ Its: ________________________________ Page 8 Economic development authority meeting of March 21, 2022 (Item No. 3a) Title: First amendment to preliminary development agreement – Wooddale Station LLC EXHIBIT A PROPERTY Authority Parcel: Lot 1, Block 3, PLACE St. Louis Park, Hennepin County, Minnesota. Third-Party Parcel: Tract A: (abstract property) Lots 8, 9 and 10, Block 29, St. Louis Park, together with the South ½ of vacated alley adjoining said lots, according to the recorded plat thereof, and situate in Hennepin County, Minnesota. Tract B: (Torrens property) Parcel 1: That part of Lots 12 to 14 inclusive Southerly of Railroad right-of-way, and all of Lots 15 to 19 inclusive, Block 29, Rearrangement of St. Louis Park including ½ of the vacated alley adjoining said Lots 13 to 19 inclusive, according to the plat thereof on file or of record in the office of the Registrar of Deeds in and for said County. Parcel 2: That part of the following described property; That part of Lots 20, 21, 22 and 23, Block 29, “Rearrangement of St. Louis Park” and that part of the adjoining vacated alleys, all described as commencing at a point on the Southwesterly line of Block 30, “Rearrangement of St. Louis Park” distant 2.4 feet Southerly, measured along said Southwesterly line from the Northwesterly corner of said Block 30; thence Northeasterly to a point on the East line of said Block 30 distant 6.67 feet South, measured along said East line from the Northeasterly corner of said Block 30; thence continuing Northeasterly along the last described course distance of 56.97 feet; thence Southeasterly at a right angle 20.57 feet; thence Northeasterly at a right angle 86.47 feet to the actual point of beginning; thence continuing Northeasterly along the last described course to the center line of the vacated alley adjoining the East line of said Lots 20, 21, 22 and 23; thence South along said center line and its extension to the center line of the vacated alley adjoining the South line of said Lot 20; thence West along the last described center line to its intersection with the extension South of a line drawn from the actual point of beginning to a point on the South line of said Lot 20 distant 79 feet East from the Southwest corner of said Lot 20; thence North to the actual point of beginning, which lies Easterly of the East line of Lot 7, said Block 29 extended Northerly, according to the record plat thereof. Abstract and Torrens Property Torrens Certificate No. 1004417 Page 9 Economic development authority meeting of March 21, 2022 (Item No. 3a) Title: First amendment to preliminary development agreement – Wooddale Station LLC EXHIBIT B Page 10 Economic development authority meeting of March 21, 2022 (Item No. 3a) Title: First amendment to preliminary development agreement – Wooddale Station LLC Meeting: Economic development authority Meeting date: March 21, 2022 Action agenda item: 6a Executive summary Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District (Ward 4) Recommended action: •Motion to adopt EDA Resolution decertifying the Wayzata Boulevard Tax Increment Financing District (a redevelopment district). •Motion to adopt EDA Resolution approving the establishment of the 9920 Wayzata Boulevard Tax Increment Financing District (a housing district). •Motion to adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the 9920 Wayzata Boulevard TIF District. Policy consideration: Does the EDA support the establishment of a housing tax increment financing district to facilitate construction of the 9920 Wayzata Boulevard development? Summary: A staff report regarding Bigos -9920 Wayzata, LLC’s application for tax increment financing (TIF) assistance in connection with the proposed 9920 Wayzata Boulevard development was provided at the January 10, 2022 study session. As stated in the report, constructing the 233- unit mixed -income multifamily housing development is not financially feasible but for the use of the proposed tax increment assistance due to extraordinary costs associated with the site and the requirements for affordable housing. Given subsequent EDA consensus support, the proposed financial assistance was advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the housing TIF district and approve the related Purchase and Redevelopment Contract. Such authorizations enable the EDA to designate tax increment generated from the 9920 Wayzata Boulevard development as partial reimbursement for certain qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the 9920 Wayzata Boulevard TIF District does not commit the city to any specific level of financial assistance for the proposed project. Procedurally, it simply creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs incurred in constructing the proposed development. The terms and amount of TIF assistance are specified within the Purchase and Redevelopment Contract with Bigos -9920 Wayzata LLC which is also scheduled for consideration by the EDA March 21, 2022. Authorizing an Interfund Loan in the amount of $50,000 allows the EDA to recoup certain administrative costs in connection with the new TIF District. With a housing TIF district, the EDA has the option to capture additional funding for affordable housing programs, including funding for established programs and owner-occupied affordable housing, once the developer’s TIF Note is paid off . Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution decertifying Wayzata Boulevard TIF District; EDA resolution – TIF District ; EDA resolution – Interfund Loan; TIF District Overview Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Michele Schnitker, housing manager/deputy community development director Approve d by: Cindy Walsh, deputy city manager/operations and recreation director Page 2 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District Discussion Background: Bigos Management intends to acquire land at the northwest quadrant of I-394 and US 169. This includes two vacant parcels located at 9808 and 9920 Wayzata Boulevard, as well as adjacent right -of-way owned by the EDA. Bigos’ plans for the 3.1-acre redevelopment site call for the removal of three billboards and construction of a six-story, 233-unit multifamily housing development tentatively named 9920 Wayzata Boulevard. Bigos Management would then own and manage the new apartment building for the long term. The proposed $68.7 million development includes a mix of alcove, one -, two-, and three- bedroom units. The proposed apartment building would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI) for 25 years , exceeding the city's Inclusionary Housing Policy requirements. Redeveloper’s request for public financing assistance and TIF application review: The subject site is former lakebed and, as a result, has unstable structural soils. Any building constructed on the site beyond a single story would likely require extensive foundation work. A developer looking to construct a multi-story building on the site would likely incur such extraordinary costs as: soil excavation, export and import; and structural piling. Depending on the project’s density, these costs would likely prevent any multistory development from achieving financial feasibility without assistance. Any assistance would likely be provided via a Housing TIF District, which would require a similar amount of affordable housing units, and a similar or higher TIF request. The Redeveloper previously indicated that 9920 Wayzata Boulevard’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. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. After review, Ehlers determined that up to $6.3 million in TIF assistance is warranted to enable the project to proceed. Such assistance would be provided via a pay-as- you-go TIF Note and would derive from the establishment of a new housing TIF district. The EDA/city council received a staff report detailing the Redeveloper’s TIF Application at the January 10, 2022 study session along with the recommendation for the level of assistance for which there was consensus support. Decertification of the Wayzata Boulevard Tax Increment Financing District: In March 2016, the EDA established the Wayzata Boulevard Tax Increment Financing District (a redevelopment district) to incent redevelopment of the subject site given its blighted conditions. The TIF District encompassed the same two parcels (9808 and 9920 Wayzata Boulevard) but not the EDA right of way parcels. Given that qualified redevelopment activity has not occurred within that district within the statutorily required time period, this district can no longer be utilized for the proposed 9920 Wayzata d evelopment. Additionally, the site no longer qualifies as a new redevelopment TIF district because the substandard structures previously occupying the property have been removed. Therefore, a new type of TIF district needs to be established to facilitate the proposed 9920 Wayzata development. Before establishing the proposed 9920 Page 3 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District Wayzata Boulevard TIF District the EDA will need to formally decertify the Wayzata Blvd TIF District. This can occur concurrently with the establishment of the new proposed housing TIF district. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed 9920 Wayzata Boulevard TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger 9920 Wayzata Boulevard TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms of the financial assistance are contained in the separate Purchase and Redevelopment Contract between the parties. Both the TIF Plan and the Purchase and Redevelopment Contract need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed 9920 Wayzata Boulevard TIF District: In order to provide the Redeveloper with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the 9920 Wayzata Boulevard redevelopment site and the proposed 9920 Wayzata Boulev ard TIF District are located within the city, the proposed 9920 Wayzata Boulevard TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed 9920 Wayzata Boulevard TIF District is shown in the map below. Page 4 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District Location of proposed 9920 Wayzata Boulevard TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the subject redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following two parcels and adjace nt roads and internal rights of-way: •9920 Wayzata Boulevard •9808 Wayzata Boulevard Page 5 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District Subject properties within proposed housing TIF district Qualifications of the proposed TIF district: Golden Valley -based Bigos Management intends to acquire land at the northwest quadrant of I-394 and US 169. This includes two vacant parcels located at 9808 and 9920 Wayzata Boulevard, as well as adjacent right -of -way owned by the EDA. Bigos’ plans for the 3.1-acre redevelopment site call for the removal of three billboards and construction of a six-story, 233-unit multifamily housing development tentatively named 9920 Wayzata Boulevard . Bigos Management would then own and manage the new apartment building for the long term. The proposed 233-unit apartment development would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI). The proposed amount of affordable housing exceeds the city’s inclusionary housing requirements. To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 47 housing units (20 percent) affordable to households at or Page 6 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District below 50 percent of AMI, the proposed 9920 Wayzata Boulevard development qualifies under the statute as a housing TIF district. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On October 18, 2021, the city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from O-Office to RH - high density residential. The Metropolitan Council subsequently approved that amendment on February 23, 2022. The density of the proposed 9920 Wayzata Boulevard redevelopment meets the requirements for RH – high density residential land use. On March 16, 2022, the planning commission approved a resolution of approval finding the proposed 9920 Wayzata Boulevard TIF District Plan and sale of EDA -owned properties conform to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. The EDA and city have the option to decertify the district prior to the legally required date. The city’s expressed obligations to the Redeveloper, per the terms of the Redevelopment Contract, are estimated to be satisfied in approximately 14.5 years. Once those obligations are satisfied, the city may terminate the district or elect to retain it to assist other affordable housing projects and programs into the future. In the past, city council has elected to use pooled tax increment collected from h ousing TIF districts to help fund other affordable housing developments and programs throughout the city. Tax increment generated from Housing TIF districts have been used to help fund the Affordable Housing Trust Fund, HIA Programs, Affordable Homeownership Land Trust Program, 1st Time Homebuyer program, wealth building homeownership programs for underserved communities, and some home energy rebates. Property value and taxes: The current combined assessed market value of the two parcels constituting the subject redevelopment site is just over $3.26 million. This is the proposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $68.7 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the Redeveloper until it is paid off (14.5 years). The city, county and school district would continue to receive the property taxes collected on the subject site’s Base Value. Page 7 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District TIF district budget: The 9920 Wayzata Boulevard TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the Redeveloper for qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the 9920 Wayzata Boulevard development. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and not the actual expected project budget. Recommendation: The EDA’s financial consultant, Ehlers, prepared the 9920 Wayzata Boulevard TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the decertification of the Wayzata Boulevard TIF District, establishment the 9920 Wayzata Boulevard Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The purchase and redevelopment contract between the EDA and Bigos -9920 Wayzata, LLC which specifies the terms, conditions and amount of TIF assistance related to the proposed 9920 Wayzata Boulevard project is also scheduled for consideration by the EDA on March 21, 2022. Additionally, that same evening, the city council will be asked to hold a public hearing regarding the establishment of the proposed TIF district. Page 8 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District EDA Resolution No. 22-____ Resolution decertifying the Wayzata Boulevard Tax Increment Financing District and approving termination of Purchase and Development Agreement Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) previously established the Wayzata Boulevard Tax Increment Financing District (the “TIF District”), a redevelopment district within Redevelopment Project No. 1 (the “Project”) in the City; and Whereas, the TIF District is administered by the Authority; and Whereas, pursuant to the terms of the Purchase and Redevelopment Contract, dated October 15, 2018 (the “Contract”), between the Authority and SLP Park Ventures LLC, a Minnesota limited liability company (the “Redeveloper”), the Authority agreed to grant tax increment financing assistance to the Redeveloper in the form of a tax increment revenue note (the “TIF Note”) to reimburse the Redeveloper for certain public redevelopment costs in connection with the acquisition of property within the TIF District (the “Redevelopment Property”) and the construction thereon of a hotel and multifamily housing (the “Minimum Improvements”) within the TIF District; and Whereas, the Contract provided that payments of principal and interest on the TIF Note would commence upon receipt by the Authority of tax increment from the Minimum Improvements to be constructed on the Redevelopment Property; and Whereas, the Redeveloper has not commenced construction of the Minimum Improvements as of the date hereof, and has notified the Authority that it will not construct the Minimum Improvements as set forth in the Contract; and Whereas, the Authority intends to decertify the TIF District and terminate the Contract and finds that such decertification and termination are in the best interest of the Authority and City, because such actions will allow the creation of a housing tax increment financing district encompassing the Redevelopment Property in which a multifamily housing development is contemplated, thereby increasing housing options for City residents; and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1.The Authority hereby approves the decertification of the TIF District and the termination of the Contract. 2.The execution of the Termination of Purchase and Redevelopment Agreement with the Redeveloper as presented to the Board of Commissioners is he reby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Contract by such officials Page 9 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District shall be conclusive evidence of approval. Authority staff and officials are authorized to take all actions necessary to terminate the Contract including without limitation execution of any documents necessary to terminate the Contract. 3.Authority staff is authorized and directed to transmit a copy of this resolution to the Taxpayer Services Division Manager, as County Auditor, of Hennepin County, Minnesota (the “County Auditor”) with instructions to decertify the TIF District as of the date hereof, it being the intent of the City and Authority that any tax increment derived from the TIF District and collected after the date hereof should be redistributed by the County Auditor to the taxing jurisdictions within the TIF District as described below. 4.The TIF District has not generated any tax increment as of the date hereof, but if any tax increment derived from the TIF District is generated and received by the Authority after the date hereof, Authority staff is directed to return such tax increment to the County Auditor for distribution to the taxing jurisdictions within the TIF District. Reviewed for Administration: Adopted by the Economic Development Authority March 21, 2022 Karen Barton , e xecutive director Margaret Rog, president Attest Melissa Kennedy, secretary Page 10 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District EDA Resolution No. 22-____ Resolution approving a modification to the development program for Redevelopment Project No. 1, the establishment of the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development) within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have caused to be created a Development Program (the “Development Program”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1081, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Development Program for the Project (the “Program Modification”) and a tax increment financing plan (the “TIF Plan”) for the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development) (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the Board of Commissioners of the Authority (the “Board”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Program Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the County Auditor of the County; and Whereas, immediately following the meeting of the Authority on the date hereof, the City Council will hold a duly noticed public hearing on the Program Modification and establishment of the TIF District, and is expected to approve the creation of the TIF District and the associated TIF Plan following such public hearing; and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1.Subject to approval by the City Council, the Program Modification, the establishment of the TIF District, and the TIF Plan for the TIF District are hereby approved. Page 11 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District 2.The Board of Commissioners hereby makes all the findings set forth in the resolution to be adopted by the City Council on the date hereof approving the TIF Plan and the findings set forth in the TIF Plan which document is incorporated herein by reference. 3.Authority staff is hereby authorized and directed to file a request for certification of the TIF District with the County Auditor and to file a copy of the TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. 4.The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased. 5.Authority staff, consultants, and legal counsel are authorized to take all actions necessary to implement the TIF Plan and to negotiate, draft, prepare and present to the Board for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Approval of the TIF Plan does not constitute approval of any project or a development agreement with any developer. Reviewed for Administration: Adopted by the Economic Development Authority March 21, 2022 Karen Barton, executive director Margaret Rog, president Attest Melissa Kennedy, secretary Page 12 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District EDA Resolution No. 22-____ Resolution authorizing an interfund loan for advance of certain costs in connection with the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development) Whereas, the City of St. Louis Park, Minnesota (the "City") and the St. Louis Park Economic Development Authority (the “Authority”) intend to establish the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development) (the "TIF District"), a housing district, within Redevelopment Project No. 1 (the "Project") in the City, and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and Whereas, the Authority has determined to use tax increments from the TIF District to pay for certain administrative costs identified in the TIF Plan (the "Qualified Costs"), which costs may be financed on a temporary basis from Authority funds available for such purposes; and Whereas, under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs; and Whereas, the Authority intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (the "Interfund Loan"); and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1.The Authority hereby authorizes the advance of up to $50,000 from any legally authorized Authority fund or so much thereof as may be paid as Qualified Costs. The Authority shall reimburse itself for such advances together with interest at the rate stated below. Intere st accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the Authority, through the date of last receipt of tax increment from the TIF District. Page 13 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increment Financing District 3.Payments on this Interfund Loan are payable solely from "Available Tax Increme nt," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director of the Authority, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Hennepin County, all in accordance with the TIF Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 4.The principal sum and all accrued interest payable under this Interfund Loan are prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 5.This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including without limitation the Authority or the City. Neither the State of Minnesota nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is ple dged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 6.The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Re viewed for Administration: Adopted by the Economic Development Authority March 21, 2022 Karen Barton, executive director Margaret Rog, president Attest Melissa Kennedy, secretary TAX INCREMENT FINANCING DISTRICT OVERVIEW St. Louis Park Economic Development Authority 9920 Wayzata Blvd (Bigos Development) Tax Increment Financing District The following summary contains an overview of the basic elements of the Tax Increment Financing Plan for the 9920 Wayzata Blvd (Bigos Development) Tax Increment Financing District. More detailed information on each of these topics may be found in the complete Tax Increment Financing Plan. Proposed action: •Modification to the Development Program for Redevelopment Project No. 1. The modification represents a continuation of the goals and objectives set forth in the Development Program for Redevelopment Project No. 1. •Establishment of the 9920 Wayzata Blvd (Bigos Development) Tax Increment Financing District (District) and the adoption of a Tax Increment Financing Plan (TIF Plan). Type of TIF District: Housing District Affordability: At least 20% of the units will be occupied by person with incomes less than 50% of the area median income. Parcel Numbers: 01-117-22-14-0018 01-117-22-14-0002 Proposed Development: The District is being created to facilitate the construction of a 233-unit residential apartment building in the City. The EDA intends to enter into an agreement with Bigos-9920 Wayzata, LLC or a development entity or joint venture to be established by Bigos-9920 Wayzata, LLC. Development is anticipated to begin in Summer of 2022. Please see Appendix A of the TIF Plan for a more detailed project description. Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The EDA elects to receive the first tax increment in 2024. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2049, or when the TIF Plan is satisfied. Estimated annual tax increment: Up to $1,446,124 Page 14 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increme nt Financing District City of St. Louis Park 9920 Wayzata Blvd (Bigos Development) TIF District 2 Authorized uses:The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition ..................................... $ 3,000,000 Site Improvements/Preparation ............................ $ 5,000,000 Affordable Housing ............................................... $ 6,000,000 Utilities ................................................................. $ 500,000 Other Qualifying Improvements ............................ $ 2,634,564 Administrative Costs (up to 10%) ......................... $ 2,542,285 PROJECT COSTS TOTAL .................................. $ 19,676,849 Interest ................................................................. $ 8,288,284 PROJECT COSTS TOTAL .................................. $ 27,965,133 See Uses of Funds on page 8 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note and interfund loan. Administrative fee: Up to 5% of annual increment, if costs are justified. Interfund Loan Requirement: The EDA will be approving an interfund loan to pay for administrative expenses that will be incurred prior to receiving the first TIF dollars from the District. 4 Year Activity Rule (§ 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: •Demolition •Rehabilitation •Renovation •Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately April 2026, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule (§ 469.1763 Subd. 3) Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Any obligations in the District made after approximately April 2027, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. Page 15 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increme nt Financing District City of St. Louis Park 9920 Wayzata Blvd (Bigos Development) TIF District 3 Page 16 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increme nt Financing District City of St. Louis Park 9920 Wayzata Blvd (Bigos Development) TIF District 4 Page 17 Economic development authority meeting of March 21, 2022 (Item No. 6a) Title: Establishment of the 9920 Wayzata Boulevard Tax Increme nt Financing District Meeting: Economic d evelopment authority Meeting date: March 21, 2022 Public hearing: 6b Executive summary Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blv d (Ward 4) Recommended action: Mayor to open the public hearing, take testimony and close the hearing. Motion to adopt EDA Resolution approving the Purchase and Redevelopment Contract between the EDA and Bigos-9920 Wayzata, LLC. Policy consideration: Does the EDA wish to approve the proposed Purchase and Redevelopment Contract with Bigos -9920 Wayzata, LLC to f acilitate the proposed 9920 Wayzata Boulevard development? Summary: Gold en Valley -based Bigos Management (“Redeveloper”) intends to acquire two vacant parcels located at 9808 and 9920 Wayzata Boulevard, as well as adjacent right -of -way owned by the EDA. Bigos’ plans for the 3.1-acre redevelopment site call for the removal of three billboards, remediation o f s oils, and construction of a si x-story, 233-unit m ultifamily housing de velopment tentatively named 9920 Wayzata Boul evard. The proposed $68.7 million apartment building would be mixed income with 186 units (80%) leasable at market rate and 47 units (20%) af fordable to households at 50% of are a median income (AMI) for 25 y ears , exceeding the city's Inclusionary Housing Policy requirements. The development would also exceed the city’s Green Building Policy requirements. For the redevelopment to achieve a market rate of return and attract private financing, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. The EDA/city council receiv ed a staff report detailing the Redeveloper’s TIF Application on Jan. 10, 2022, along with a recommendation for the appropriate amount of financial assistance. Key business terms were provided in the staff report and discussed on Feb. 28, 2022. Financial or budget considerations: Under the proposed purchase and redevelopment contract, the Redeveloper agrees to construct the development as specified under the approved PUD. In turn, the EDA agrees to sell right-of-way for $110,000 and r eimburse t he Redeveloper for specified public redevelopment and affordable housing costs in connection with the project up to $6.3 million in pay-as-you-go tax increment generated by the development upon its competition. It is e stimated that a TIF Note in the above amount would be paid off in approximately 14.5 years. Such assistance would derive from the establishment of a new housing TIF district. Due to the extraordinary costs to re mediate poor structural soils and the city’s requirements for affordable housing, any development at this location is likely to request a similar or higher amount of TIF assistance to b ecome f inancially feasibl e. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution; Development team EDI policies Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Michele Schnitker, housing manager/deputy community development director Approve d by: Cindy Walsh, deputy city manager/operations and recreation d irector Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 2 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd Discussion Background: Golden Valley -based Bigos Management (“Redeveloper”) 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 mixed income apartment building would include a total of 233 housing units; of which 186 units (80 percent) would be leasable at market rate and 47 units (20 percent) would be affordable to households at 50 percent of area median income (AMI). The proposed development would also include numerous sustainable elements, including a roof top renewable energy solar array. The proposed $68.7 million development includes a mix of alcove, one -, two-, and three- bedroom units. The development’s proposed mix of unit types is as follows: Unit Type Market Rate 50% AMI units Percent 50% AMI Total Units Percent of total units Alcove 40 10 21.3% 50 21.4% 1-bedroom 64 16 34.0% 80 34.3% 1-bedroom + den 12 3 6.4% 15 6.4% 2-bedroom 65 16 34.0% 81 34.8% 3-bedroom 5 2 4.3% 7 3.0% Total 186 47 100.0% 233 100.0% Inclusionary housing policy: The proposed development exceeds the city’s inclusionary housing requirements with 20 percent of the housing units affordable to households at 50 percent of AMI, including an additional three -bedroom affordable unit. The inclusionary housing policy as amended in October 2021, requires at least 20 percent of the units be affordable at 60 percent area median income or 10 percent of the units be affordable at 50 percent area median income. The proposed apartment development would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI) and would adhere to the city’s inclusionary housing policy as amended in October 2021. Per the Metropolitan Council, the 50 perce nt AMI for a family of four is $52,450. The Redeveloper also plans to include seven three -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 affordable units would be spread proportionally through the mix of unit types as required. Green building policy:, The proposed development exceeds the city’s Green Building Policy requirements as amended July 2020. Constructing housing near employment centers (such as the Metropoint office park) reduces the need for motor vehicles and provides the development’s residents with the option of utilizing non-motorized transportation to work that is inexpensive, quick, convenient, and sustainable. The site is 300 feet away from Metro Transit’s Bus Route 645 which provides all-day express bus service to downtown Minneapolis to the east and Ridgedale, Wayzata, and Mound to the west. The development will adhere to the city’s Green Building Policy as adopted in July 2020 and intends to follow Enterprise Green Communities as its design rating system. The development will also include the following sustainable features: Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 3 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd •PC s olar array comprising the majority of the level 6 roof, generating approximately 150,000 kWh of Year 1 energy offset. (this was previously proposed as 200,000 kWh, but further analysis has been completed as to what will actually fit on the building’s roof). •Diversion and recycling of construction and demolition waste •Reduction of potable water consumption utilizing low flow fixtures •Construction Indoor Air Quality Management Plan (IAQ) •Controllable lighting and thermal air systems •Daylighting and views of spaces •High efficiency appliances •Best management practices of stormwater on site •Native plantings that are low irrigation and low maintenance Add itionally, the development will provide 14 level 1 and 12 level 2 charging stations for residents, one level 2 charging station for guests, and conduit serving an additional 33 parking spaces. Nearly 20 percent of the parking stalls will have access or future access to EV charging. The de veloper’s contractor for the site, Big D Construction, has significant experience constructing sustainable buildings across the county. Big D has completed 77 LEED certified projects and employs over 61 LEED professionals. It has a mission and commitment to GUIDE (G uide, lead, and educate; Understand the impact; Improve the environment; Divert waste; and Exercise energy conservation) sustainable developments. The company will ensure the 9920 Wayzata Boulevard development exceeds the city’s expectations for sustainable buildings. Racial equity and inclusion: Staff is confide nt that Bigos Management and its development team are continuing to work to advance diversity, equity, and inclusion in their developments and businesses. The proposed mixed income development will provide equal opportunity to access new, quality housing that fosters economic and racial inclusiveness. With a variety of unit types (offered at both market rate and at 50% of AMI) 9920 Wayzata will provide additional integrated housing options for area residents for 25 years. Due to the timing of this proposal, the EDA’s DEI policy is not in effect for this development. However, the Redeveloper has agreed to the inclusion of business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in the construction of the development. Additionally, as was noted in Bigos Management's letter to council dated October 29, 2021, “Diversity, equity, and inclusion [has been] an area we started investing more resources in within the last year and a half. We hired a DE&I consultant to help us look at our business and help identify areas we could make meaningful changes in. This consultant also held training seminars for our company managers and senior leaders. We now have an established DE&I committee in place, and we are putting the entire organization through a series of six courses in 2022. In 2021 we went through our operations manual, employee manual, job descriptions and websites to remove exclusive language. Another focus has been to expand our recruiting channels to bring more minority applicants to the table, specifically for management positions.” Bigos Management also accepts Housing Choice Vouchers in its buildings and accepts more of them than nearly any other multifamily housing owner in the city. They own and manage 9,500 Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 4 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd units in the Minneapolis/St. Paul area. 45 percent of these units are naturally occurring affordable housing (NOAH). Bigos Management also owns fiv e fully affordable project-based communities serving 614 households. Four of these communities have been under Bigos Management ownership for nearly thirty years, and they broke ground in November 2021 on a new 47-unit fully affordable project-based building in St. Paul. In addition, Bigos Management has hired Big D Construction as their contractor for the 9920 Wayzata Boulevard development. Big D Construction has a proven track record of creating a diverse, equitable, and inclusive company and workplace, and have significant experience working with and documenting their hiring of women and BIPOC owned businesses (see DEI attachment). They often fragment larger jobs (that would be difficult for one smaller business to complete) into more manageable -sized projects and hire several teams to complete the job. They have also submitted a list of women and BIPOC-owned businesses to which they intend to bid project components. Big D Construction will also increase their onsite efforts to prevent wage theft at 9920 Wayzata Boulevard, including more details about worker rights during their individual project safety orientation, and multiple postings throughout the site with phone numbers for the Department of Labor and the Minnesota Wage Theft Hotline. 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 spring 2022 and complete it by year-end 2023. Bigos Management would own and manage the residential development for the long term. On October 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 plann ed unit development zoning district to allow the proposed mixed income, multi- family residential development. Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 5 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd Re developer’s request for tax increment financing assistance: Due to the extraordinary costs to remediate poor structural soils and the city’s requirements for affordable housing, any development at this location is likely to request a similar or higher amount of TIF assistance to become financially feasible. The subject site is former lakebed and, as a result, has unstable structural soils. Any building constructed on the site beyond a single story would likely require extensive foundation work. A developer looking to construct a multi-story building on the site would likely incur such extraordinary costs as: soil excavation, export and import; and structural piling. Depending on the project’s density, these costs would likely prevent any multistory development from achieving financial feasibility without assistance. Any assistance would likely be provided via a Housing TIF District, which would require a similar amount of affordable housing units, and a similar or higher TIF request. The Re developer previously indicated that 9920 Wayzata Boulevard’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. Housing TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. The EDA and city have the right to decertify the district prior to the legally required date. The city’s expressed obligations to the Redeveloper, per the terms of the Redevelopment Contract, are estimated to be satisfied in approximately 14.5 years. Once those obligations are satisfied, the city may terminate the district or elect to retain it to assist other affordable housing projects and programs into the future. In the past, city council has elected to use the additional tax increment collected from housing TIF districts to help fund other affordable housing developments and programs throughout the city. Tax increment from housing districts has been used to help fund the Affordable Housing Trust Fund, HIA Programs, Affordable Homeownership Land Trust Program, 1st Time Homebuyer program, wealth building homeownership programs for underserved communities, and some home energy rebates. Level and type of financial assistance: In summary, the Re developer’s sources and uses statement, income and expense estimates, fin ancing 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 Redeveloper 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 Redeveloper’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 6 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd Redeveloper 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. Property value and taxes: The current combined assessed market value of the two parcels constituting the subject redevelopment site is just over $3.26 million. This is the proposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $68.7 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the Redeveloper until it is paid off (14.5 years). The city, county and school district would continue to receive the property taxes collected on the subject site’s Base Value. Once the TIF Note to the Redeveloper is paid off, the city would have the option to capture 100 percent of the city property taxes collected on the site’s Base Value as funds to provide affordable housing to the community, including owner-occupied affordable housing. Proposed purchase and redeve lopment contract: Key business terms for providing the proposed financial assistance were provided in the staff report for the February 28, 2022 study session where they were discussed. The proposed purchase and rede velopment contract specifies the mutual obligations between the EDA and Bigos-9920 Wayzata, LLC (“Redeveloper”) as well as the terms of the financial assistance to be provided. The following is a summary of the business terms in the proposed contract 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. Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 7 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd “Re development Property” for proposed 9920 Wayzata Boulevard development 1.The Redeveloper agrees to acquire parcels 9808 and 9920 Wayzata 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. The EDA's obligation to convey the EDA Property to the Redeveloper is subject to satisfaction of the following terms and conditions: o The Redeveloper having closed on permanent financing at or before Closing on transfer of title to the Development Property from the EDA to the Red eveloper 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. o 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. o The City having approved any amendments to the City’s Comprehensive Plan, replatting of the property, a PUD, and a Planning Development Contract. o Redeveloper having approved the state of title to the EDA Property. o Clos ing shall occur within 30 days of satisfaction or waiver of the above conditions but no later than June 21, 2022, unless extended by agreement of the parties. o At Closing, the Redeveloper agrees to pay any outstanding property taxes, including back -taxes along with any related penalties and fees, owed to the City and all outstanding administrative costs owed to the EDA (for current and previous TIF applications). o The Developer acknowledges that the EDA makes no representations or warranties Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 8 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd as to the condition of the soils on the Development Property or the fitness of the Development Property for construction of the Minimum Improvements. o 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 Redeveloper 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 Redeveloper 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. The TIF Note would not constitute a business subsidy because the assistance will meet the housing exception under Minnesota statutes. 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 Redevelopment Costs are lower or if the project performs financially better upon Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 9 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd 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 July 1, 2022 and will be substantially completed by May 31, 2024. 11.Re developer will construct the Development and maintain it in good condition until the Contract terminates. 12.Redeveloper will comply with the city’s Inclusionary Housing Policy in effect at the time of its planning applications. Specifically, Redeveloper agrees to a 25-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, three one-bedroom plus den units, 16 two-bedroom units, and two three -bedroom units. 13.Re developer will use reasonable efforts to meet the following business ente rprise 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. Redeveloper 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 criteria. Sustainability features to be included in the development include: o PC s olar 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 systems o Daylighting and views of spaces Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 10 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd o High efficiency appliances o Best management practices of stormwater on site Native plantings that are lo w 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.Lan dscaping 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 discrim inate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the Development Property or Min imum Improvements. 18.Redeveloper agrees to certify that the Minim um 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. A copy of the redevelopment contract is available for review in the community development department. Summary: As indicated in the January 10, 2022 study session staff report, the proposed $68.7 million 9920 Wayzata Boulevard development has a verified financial gap and is not financially feasible but for the provision of tax increment financing. To offset this gap, it is proposed that the EDA consider reimbursing the Redeveloper up to $6.3 million in pay -as-you-go tax increment generated by the redevelopment for a term of approximately 14.5 years . Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 11 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd Providing tax increment financing assistance to the proposed 9920 Wayzata Boulevard development provides numerous public benefits and makes it possible to: •remove three billboards and cleanup remaining debris on the Redevelopment property. •redevelop underutilized and environmentally impacted property with substandard soils. •further diversify the city’s housing stock with new multi-family apartment offerings consistent with the city’s strategic priorities and Comprehensive Plan. •provide the community with 186 addition al market rate and 47 affordable housing units for 25 years. •facilitate $68.7 million of new investment further invigorating the surrounding neighborhood. •further the city’s sustainability goals by developing a building to Enterprise Green Community standards and providing a rooftop solar array capable of generating up to 150,000 kWh. •bring the subject properties to optimal market value and add to the city’s tax capacity. •construct quality buildings (e.g. sound architectural design, quality construction and materials) with underground parking, public features, and sustainable elements. Bigos Management’s proposed 9920 Wayzata Boulevard development meets the minimum and desired qualifications, and the city’s objectives for the provision of Tax Increment Financing as specified in the city’s TIF Policy. The proposed amount of TIF assistance is consistent with other developments the EDA has previously assisted. Recommendation: Staff supports approval of the proposed purchase and redevelopment contract with Bigos -9920 Wayzata, LLC as outlined above so as to advance the 9920 Wayzata Boulevard development. The attached resolution of approval allows for modifications to the contract that do not alter the substance of the transaction without bringing the contract back to the EDA for amendment. Next steps: Upon execution of the purchase and redevelopment contract, the Redeveloper plans to close on its project financing and commence construction by July 1, 2022. Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 12 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd EDA Resolution No. 22-___ Resolution approving purchase and redevelopment contract, including provision for the conveyance of real property, and authorizing the issuance of a tax increment revenue note to Bigos- 9920 Wayzata, LLC Be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Authorization; award of sale. 1.01. Au thorization . (a)The Authority has heretofore approved the establishment of the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development) (the “TIF District”), a housing district within Redevelopment Project No. 1 (the “Project”), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. (b)Th e City Council of the City of St. Louis Park, Minnesota (the “City”) will consider a resolution approving the TIF District on the date hereof. (c)To facilitate the redevelopment of certain property within the Project and TIF District, the Authority and Bigos-9920 Wayzata, LLC, a Minnesota limited liability company , or an affiliate thereof (the “Owner”), have negotiated a Purchase and Redevelopment Contract (the “Agreement”) which provides for the conveyance of certain Authority-owned property legally described in Exhibit A attached hereto (the “Authority Parcels”) to the Owner, the construction by the Owner of approximately 233 units of multifamily rental housing and approximately 203 structured parking stalls (the “Minimum Improvements”) on certain property, including the Authority Parcels, and the issuance by the Authority of a tax increment revenue note (the “TIF Note ”) to the Owner. (d)On March 16, 2022, the Planning Co mmission of the City reviewed the proposed conveyance of the Authority Parcels and found that such conveyance is consistent with the City’s comprehensive plan. (e)On the date hereof, the Authority conducted a duly noticed public hearing regarding the co nveyance of the Authority Parcels to the Owner pursuant to the Agreement, at which all interested parties were given an opportunity to be heard, and hereby finds that the execution of the Agreement and performance of the Authority’s obligations thereunder, including the conveyance of the Authority Parcels to the Owner, are in the best interest of the City and its residents. 1.02. Approval of Agreement; Conveyance of property. (a)Subject to approval of the TIF District by the City Council, the Agreement is hereby in all respects approved, subject to modifications that do not alter the substance of the Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 13 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd transaction and that are approved by the President and Executive Director, provided that execution of the Agreement by such officials shall be conclusive evidence of approval. The Board hereby approves the conveyance of the Authority Parcels pursuant to the terms of the Agreement. (b)Authority staff and officials are authorized to take all actions necessary to perform the Authority’s obligations under the Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, including but not limited to the quit claim deed, Minimum Assessment Agreement, Declaration of Restrictive Covenants, and any deed or other documents necessary to convey the Authority Parcels to the Owner, all as described in the Agreement. 1.03. Issuance, sale, and terms of note. (a)The Authority hereby authorizes the President and Executive Director to issue the TIF Note in accordance with the Agreement. All capitalized terms in this resolution have the meaning provided in the Agreement unless the context requires otherwise. (b)The TIF Note shall be issued to the Owner in the maximum aggregate principal amount of $6,300,000 in consideration of certain eligible costs incurred by the Owner in connection with construction of the Minimum Improvements under the Agreement. The TIF Note shall be dated the date of delivery thereof, and shall bear interest at the lesser of the rate of 4.25% per annum or the actual rate of the Owner’s mortgage financing, from the date of issue to the earlier of maturity or prepayment. The TIF Note will be issued in the principal amount of Public Redevelopment Costs submitted and approved in accordance with Section 3.6 of the Agreement. The TIF Note is secured by Available Tax Increment, as further described in the form of the TIF Note herein. The Authority hereby delegates to the Executive Director the determination of the date on which the TIF Note is to be delivered, in accordance with the Agreement. S ection 2. Form of TIF Note. The TIF Note shall be in substantially the following form attached hereto as Exhibit B with the blanks to be properly filled in and the principal amount adjusted as of the date of issue. S ection 3. Terms, e xecution and delivery . 3.01. Denomination, payment. The TIF Note shall be issued as a single typewritten note numbered R-1. The TIF Note shall be issuable only in fully registered form. Principal of and interest on the TIF Note shall be p ayable by check or draft issued by the Registrar described herein. 3.02. Dates; interest payment dates. Principal of and interest on the TIF Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration . The Authority hereby appoints the Chief Financial Officer of the City to perform the functions of registrar, transfer agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 14 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd (a)Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the TIF Note and the registration of transfers and exchanges of the TIF Note . (b)Transfer of note . Upon surrender for transfer of the TIF Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new note of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. (c)Cancellation . The TIF Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d)Improper or unauthorized transfer. When the TIF Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on the TIF Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e)Persons deemed owners . The Authority and the Registrar may treat the person in whose name the TIF Note is at any time registered in the bond register as the absolute owner of such TIF Note , whether the TIF Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the TIF Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability of the Authority upon the TIF Note to the extent of the sum or sums so paid. (f)Taxes, f ees and charges . For every transfer or exchange of the TIF Note , the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g)Mutilated, lost, stolen or destroyed note . In case the TIF Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a ne w TIF Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated TIF Note or in lieu of and in substitution for the TIF Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the TIF Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that the TIF Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The TIF Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed TIF Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF Note prior to payment. Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 15 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd 3.04. Preparation and delivery . The TIF Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the TIF Note shall cease to be such officer before the delivery of the TIF Note , such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the TIF Note has been so executed, it shall be delivered by the Executive Director to the Owner thereof in accordance with the Agreement. S ection 4. Security provisions . 4.01. Pledge . The Authority hereby pledges to the payment of the principal of and interest on the TIF Note all Available Tax Increment as defined in the TIF Note . Available Tax Increment shall be applied to payment of the principal of and interest on the TIF Note in accordance with the terms of the form of TIF Note set forth in Section 2 of this resolution. 4.02. Bond fund. Until the date the TIF Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the Authority shall maintain a separate and special “Bond Fund” to be used for no purpose other than the payment of the principal of and interest on the TIF Note . The Authority irrevocably agrees to appropriate to the Bond Fund on or before each Payment Date the Available Tax Increment in an amount equal to the Payment then due, or the actual Available Tax Increment, whichever is less. Any Available Tax Incremen t remaining in the Bond Fund shall be transferred to the Authority’s account for the TIF District upon the termination of the TIF Note in accordance with its terms. S ection 5. Certification of proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of the TIF Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the TIF Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. S ection 6. Effective date . This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority March 21, 2022 Karen Barton, executive director Margaret Rog, president Attest Melissa Kennedy, secretary Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 16 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd Exhibit A Legal description Authority Parcel A: That part of Trunk Highway No. 12 as shown on MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 27-23 described as follows: Beginning at right of way Boundary corner B3; thence on an assumed azimuth of 1 degree 05 minutes 15 seconds along the boundary line of said plat a distance of 86.85 feet to Right of Way Boundary Corner B4; thence deflect to the right 83.74 feet along a non-tangential curve concave to the northwest and passing through Right of Way Boundary Corner B5, having a radius of 2083.24 feet, central angle of 2 degrees 18 minute s 11 seconds, chord azimuth of 48 degrees 18 minutes 24 seconds and chord distance of 83.73 feet; thence on an azimuth of 91 degrees 27 minutes 32 seconds a distance of 98.89 feet; thence southwesterly deflecting to the right on a non- tangential curve concave to the northwest having a radius of 788.53 feet, delta angle of 15 degrees 42 minutes 58 seconds, and a chord azimuth of 229 degrees 07 minutes 59 seconds and chord distance of 215.62 feet to the East line of parcel 44 as shown on said plat 27- 23; the nce north along said East line of Parcel 44 to the point of beginning. AND A uthority Parcel B: That part of Trunk Highway No. 12 as shown on MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 27-23 which lies southwesterly and southerly of Lin e 1, said Line 1 being described as follows: Line 1: Commencing at Right of Way Boundary Corner B212 as shown on said Plat No. 27-23; thence Northerly on an azimuth of 00 degrees 13 minutes 27 seconds along the West line of the boundary of said Plat No. 27-23 a distance of 484.26 feet to Right of Way Boundary Corner B211 and the point of beginning of the line being described; thence Easterly on an azimuth of 101 degrees 20 minutes 23 seconds along the boundary of said Plat No. 27-23 a distance of 214.28 fe et to Right of Way Boundary Corner B1; thence continue on an azimuth of 101 degrees 20 minutes 23 seconds 93.00 feet; thence deflect to the left 350.87 feet on a non- tangential curve, concave to the North and passing through Right of Way Boundary Corner B2 as shown on said Plat No. 27-23, having a radius of 763.94 feet, a delta angle of 26 degrees 18 minutes 56 seconds, and a chord azimuth of 70 degrees 47 minutes 34 seconds to the Easterly line of said Parcel 44; thence on an azimuth of 01 degree 05 minute s 15 seconds 7.37 feet to Right of Way Boundary Corner B3 as shown on said Plat No. 27-23 and there terminating. And northerly of the following described line and its easterly extension: Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 17 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd Commencing at the point of intersection of the West line of the Southeast Quarter of the Northeast Quarter of said Section 1 with the most southerly line of Lot 1, Block 7, SHELARD PARK; thence on an assumed bearing of South 0 degrees 39 minutes 11 seconds West along said West line a distance of 187.99 feet to the point of beginning of the line being described; thence along a non-tangential curve concave to the northeast having a radius of 788.53 feet, central angle of 7 degrees 43 minutes 57 seconds, chord bearing of South 78 degrees 42 minutes 56 seconds East to its intersection with the most westerly extension of the southerly line of said Parcel 44; thence easterly along said extension of the most southerly line of said Parcel 44 to its intersection with Line 1 described above, and said line there ending. Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 18 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd Exhibit B Form of Note U NITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $_____________ TAX INCREMENT REVENUE NOTE SERIES 20__ (BIGOS DEVELOPMENT PROJECT) Date Rate of Original Issue [lesser of 4.25% or Redeveloper’s actual financing rate] ___________, 20__ The St. Louis Park Economic Development Authority (the “Authority”) for value received, certifies that it is indebted and hereby promises to pay to Bigos-9920 Wayzata, LLC, a Minn esota limited liability company, or registered assigns (the “Owner”), the principal sum of $__________ and to pay interest thereon at the rate of ________% per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Purchase and Redevelopment Contract, dated ________________, 2022 (the “Agreement”), between the Authority and the Owner, unless the context requires otherwise. 1.Payments. Principal and interest (the “Payments”) shall be paid on August 1, 2024 and each February 1 and August 1 thereafter, to and including August 1, 2038 (“Payment Dates”), in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. [Simple interest accruing from the date of issue through and including August 1, 2024 shall be added to principal.] Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon thirty (30) days’ written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2.Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a year of three hundred sixty (360) days and charged for actual days principal is unpaid. 3.A vailable tax increment. Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 19 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd (a)Payments on this Note are payable on each Payment Date solely from and in the amount of Available Tax Increment, which shall mean ninety-five percent (95%) of the Tax Increment attributable to the Minimum Improvements and Redevelopment Property that is actually paid to the Authority by Hennepin County, Minnesota in the six (6) months preceding each Payment Date on the Note. Available Tax Increment will not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default under the Agreement. (b)The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment and the failure of the Authority to pay principal or interest on this Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of Available Tax Increment. The Authority shall have no obligation to pay unpaid balance of principal or accrued interest that may remain after the payment of Available Tax Increment from the last payment of Tax Increment the Authority is entitled to receive from Hennepin County with respect to the Redevelopment Property. 4.Default. The Authority’s payment obligations shall be subject to Sections 9.1 and 9.2 of the Agreement and are further subject to the conditions that (i) no Event of Default under Section 9.1 of the Agreement shall have occurred and be continuing at the time payment is otherwise due hereunder; and (ii) the Agreement and this Note shall not have been terminated in accordance with Section 9.2 of the Agreement. Any such suspended and unpaid amounts shall become payable, without interest accruing thereon in the meantime, if this Note has not been terminated in accordance with Section 9.2 of the Agreement and said Event of Default shall thereafter have been cured in accordance with Section 9.2. If pursuant to the occurrence of an Event of Default under the Agreement the Authority elects, in accordance with the Agreement, to cancel and rescind the Agreement and/or this Note, the Authority shall have no further obligation under this Note whatsoever. Reference is hereby made to all of the provisions of the Agreement, for a fuller statement of the rights and obligations of the Authority to pay the principal of this Note and the interest thereon, and said provisions are hereby incorporated into this Note as though set out in full herein. 5.Prepayment. The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Note. 6.N ature of obligation . This Note is one of an issue in the total principal amount of $_________________, issued to aid in financing certain public redevelopment costs and administrative costs of a housin g project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and is issued pursuant to an authorizing resolution (the “Resolution”) duly adopted by the Authority on March 21, 2022, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 through 469.1794, as amended. This Note is a limited obligation of the Authority which is payable solely from Available Tax Increme nt pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota nor any political subdivision thereof shall Economic development authority meeting of March 21, 2022 (Item No. 6b) Page 20 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the tax ing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. THE AUTHORITY MAKES NO REPRESENTATION OR WARRANTY THAT THE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF AND INTEREST ON THIS NOTE. 7.Registration and transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the Chief Financial Officer of the City, by the Owner hereof in person or by such Owner’s attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. Notwithstanding the foregoing, this Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the Authority has been provided with an investment letter in a form satisfactory to the Authority. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the St. Louis Park Economic Development Authority have caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue s pecified above. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY Executive Director President ______________________________________ Registration provisions Economic development authority meeting of March 21, 2022 (Item No. 6b) Pag e 21 Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd The ownership of the unpaid balance of the within Note is registered in the bond register of the Chief Financial Officer of the City, in the name of the person last listed below. Date of Registration Registered Owner Signature of Chief Financial Officer Bigos-9920 Wayzata, LLC Federal Tax I.D. No. _______________ [End of form of note] Bigos Management Brand Promise Statement We are proud to be Bigos Management. We provide quality homes to our residents, create meaningful relationships within our communities, invest in the development of our team, and operate with Integrity, and Responsibility. Core Values We value Relationships. •We foster an open and supportive environment for all employees. •We create genuine connections with industry leaders and local partners to better our community. •We value our residents and strive to provide authentic interactions and sincere service. We value Quality. •We continually invest in our communities to preserve their highest standard of excellence. •We provide exceptional service to those who live, work, and visit our communities. •We create a work environment where exemplary performance is expected and achieved. We value Development. •We promote personal and professional growth through collaboration and continuous learning opportunities. •We develop practices and programs that enrich the resident experience. •We adapt to new opportunities and challenges with a can-do attitude. We value Responsibility. •We practice visible leadership across all levels of our organization. •We seek, embrace, and act on feedback to strengthen our performance. •We build trust by following through on our commitments. Page 22 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purc hase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd Diversity We attract, select, and engage qualified employees who bring unique differences in thought, gender, age, race, and personal identity to help drive business results. •We implemented a new applicant tracking system which allows us to better track applicant sources. This gives us exposure on a larger number of job posting boards in order to attract more diverse applicants. •We have begun company-wide training on DEI (Overview, Unconscious Bias, Allyship) and will continue to have monthly conversations, further building on these foundational blocks. (I.E., this month the organization was invited to view a Ted Talk on how diversity increases innovation in organizations) •We are equipping our managers and leaders with the tools necessary to have conversations with their teams surrounding these topics. Our team is currently attending 16 hours of leadership training with an executive coach to further leadership skills, and to grow confidence in infusing DEI into everyday life. Equity We ensure that processes and programs are impartial, fair, and provide equitable outcomes for every individual. •We completed a pay equity audit in 2022 and found no actionable findings. •Later this year our leadership training will be available for more junior non-leadership roles to provide training to those aspiring to grow within the organization. •We have new leadership in our Human Resources department that is committed to ensure our commitment to equity is upheld through all parts of the employee journey. Inclusion We embrace the depth and breadth of experiences and perspectives that our job candidates’ and employees’ differences bring to our organization and to the communities and customers we serve. •One of our training topics is Allyship, which will educate on the importance of making everyone feel included. It will also educate our team members on what to do when they witness non-inclusive behaviors in the workplace. •Our new onboarding system is working to ensure every employee new to our organization has the same experience. Part of that is knowing who to reach out to for mentorship, and the vast number of resources we have available, including membership on committees and in workgroups. •Our HR department is currently in the process of reviewing and enhancing our performance management process and will infuse DEI competencies into this process. Page 23 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purc hase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd •We are committed to affordable housing. We currently have 9,500 units in our Minneapolis/St. Paul area portfolio, and 45% of these units are naturally affordable (below 60% area median income). We care for these communities as a long-term owner should – making the right decisions for the community rather than short- sighted decisions aimed at near-term profitability. •We have five fully affordable project-based Section 8 communities in our portfolio totaling 614 units. We have owned four of these communities for nearly thirty years and are extremely proud of them. We have invested over $8M in these five sites within the past four years and have received nothing but positive feedback from our residents. •We broke ground in November 2021 on a new 47-unit fully affordable project-based Section 8 building adjacent to our Winslow Commons community in St. Paul –which couldn’t have come to fruition without the support of the St. Paul EDA who sold us some additional land to make the project feasible. Sustainability •Bigos is dedicated to building sustainable communities. Our most recent developments, Galante at Parkside (2018) and Nuvelo at Parkside (2020), both achieved Green Globes Building Certifications for their sustainability features. •The Mera will also have a robust sustainability plan including a PV solar array on most of the level 6 roof generating more than 150,000kWh of energy offset. It will also include EV charging stations, low irrigation and low maintenance native plantings, low flow fixtures to reduce the amount of potable water consumption in the building, controllability of lighting and thermal comfort systems, and a focus on daylighting and views of spaces. •Construction for The Mera also has sustainability in mind, including diversion and recycling of construction and demolition waste by the contractors as well as a full construction indoor air quality management plan. Recognition •Recipient of seven (7) Regional Top Workplace awards. •Recipient of one (1) National Top Workplace award (2022). •Recipient of five (5) Cultural Excellence awards. •Bigos Management, Inc. Profile (topworkplaces.com) Reputation •We partnered with Reputation.com in 2016 which launched our focus on customer experience and engagement. We’ve since increased our Reputation Score from 341 in 2016 to 701. The average Reputation Score for our industry is 540, which shows our commitment to resident satisfaction. •Another key indicator of our commitment to safe and inclusive communities is our lease renewal percentage. We are currently at a 63% renewal rate where the industry average is ~50%. Page 24 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purc hase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd Affordability CITY OF ST. LOUIS PARK | THE MERA 1 EQUAL EMPLOYMENT AND NONDISCRIMINATION The continued success of our company is dependent upon employing the most qualifi ed people and establishing a work environment that is free of discrimination. Big-D and its Companies prohibit unlawful discrimination based on race, color, religion, sex, sexual orientation, pregnancy, marital status, age, national origin, genetic information, disability, military status, veteran status, or any other category protected by federal, state, or local law. This policy also prohibits discrimination based on a perception that anyone has a protected characteristic or is associated with a person who is or who is perceived as having any protected characteristic. Our policy extends to all phases of employment, including hiring, placement, promotion, transfer, compensation, benefi ts, training, and use of facilities. The Company is committed to complying with all applicable laws related to equal employment opportunities and ensuring that there is no unlawful discrimination by any employee of the Company, including offi cers, directors, supervisors, and managers. The Company is committed to a work environment in which everyone is treated with respect, trust, honesty, fairness, and dignity. We are committed to providing a work environment that is free from all forms of unlawful harassment and will not tolerate harassment based on race, color, religion, citizenship, age, national origin, disability, genetic information, sex, pregnancy, sexual orientation, gender identity, veteran or military status, or any other basis protected by federal, state, or local law. INTRODUCTION At Big-D Construction, we understand we have a signifi cant role to improve representation at our company and the communities we work within. The culture we build is a cornerstone for success of the organization and this extends into all our partnerships with subcontractors, vendors, and labor resources within the community. Our mission is to be the most sought-after construction company in the business; for the client, the subcontractors, vendors, labor resources and communities we work within. This approach is rooted in the founders “Big Idea” focused on Respect, People, and Truth: Respect: We are creating an environment that respects and acknowledges the unique backgrounds that people bring to our teams. At Big-D, our employees are valued for their abilities and achievements. Everyone’s role is important to Big-D’s success. People: We are assembling the best people in the business to provide diverse solutions in employment and contracting of services within the community. Our projects, our company, and all trades that we hire share in the diversity goals extending equal opportunities to all qualifi ed people and entities. We understand that all benefi t from having a diverse workforce, leading to a better eff ort to collaborate and share strengths and bridge weaknesses we discover in the construction process. Truth: We are committed to being equitable in our recruiting, hiring, training, promotions, benefi ts, compensation, etc. and providing an equal employment opportunity to all. DIVERSITY, EQUITY AND INCLUSION POLICY AT BIG-D CONSTRUCTION Page 25 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd CITY OF ST. LOUIS PARK | THE MERA2 DIVERSITY, EQUITY AND INCLUSION POLICY AT BIG-D CONSTRUCTION COMMUNITY ENGAGEMENT We believe in promoting values that enrich the lives of our customers, our consultants, our employees, and our community. We’re proud of the community we work and live in. We actively support the construction management and architecture programs at our local universities, and we regularly sponsor pro-bono projects by donating our management services and completing the jobs for cost and materials. CONTACT INFORMATION: Big-D Constructions Equal Employment Opportunity Offi cer: Shaun Orr sorr@big-d.com 801-415-6023 Annual Day of Service with Hearts & Hammers AFFIRMATIVE ACTION PROGRAM Big-D’s EEO offi cer is responsible for directing and implementing our Affi rmative Action program and ensuring that it conforms to the principles of Equal Employment Opportunity. However, we expect all our employees to support this policy as well. Big-D and its companies strives to hire, recruit, train, and promote employees in job classifi cations without regard to race, color, gender, sexual orientation, religion, national origin, disability, or veteran status. Personnel decisions relating to the following issues will be administered without discrimination: compensation, benefi ts, transfer, layoff s or return from layoff , training, company- sponsored education, tuition assistance, social and recreational programs. For promotion opportunities, only valid job requirements will be imposed so that promotion decisions are made according to the principles of equal employment opportunity. AFFIRMATIVE ACTION STATEMENT It is the policy of Big-D and its companies to provide employment, training, compensation levels, transfer or promotion opportunities, and all other aspects of employment without regard to sex/gender, sexual orientation, marital status, race/color, religion/creed, national origin, age, disability, genetic information, current or future military status, or veteran status. When hiring or promotion activity occurs, and in these job categories where we have identifi ed underutilization, we will take affi rmative action to seek out qualifi ed applicants without regard to sex/gender, sexual orientation, race/color, religion/ creed, national origin, age, disability, genetic information, current or future military status, or veteran status. Big-D’s EEO Offi cer is responsible for communicating and implementing the policy. All questions regarding Big-D’s Affi rmative Action Plan or related programs should be directed to that individual. Page 26 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and re development contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd CITY OF ST. LOUIS PARK | THE MERA 3 PROJECT DIVERSITY SAMPLE OF BIG-D RELATIONSHIPS WITH MBE/WBE CERTIFIED SUBS ¾Jackson & Associates (SBE/WBE) ¾Value Plus Flooring (WBE) ¾Above The Rest (WBE) ¾Waterproofing By Experts (WBE) ¾The Caulkers (WBE) ¾Lloyds Construction Services (WBE/SBE) ¾Minneapolis Glass Company (WBE) ¾SCO Roofing (WBE) ¾Preferred Properties (WBE) ¾Onsite Companies (WBE) ¾Safety Signs (WBE/DBE) ¾Pete’s Sewer and Water (MBE) ¾Spec 7 Group (WBE/DBE) ¾Kustom Blinds and Draperies (WBE/DBE) PROPOSED PROJECT TEAM Precon Director: Tim Callahan Project Executive: Chris Grzybowski Sr. Project Manager: Tim Sack Superintendent: Tom Yliemini Safety Director: Cass Licence Subcontractor selection will not begin until the project design is further developed. Big-D prequalifi es all subcontractors to ensure proper safety performance can be expected. Our proposed list of subcontractors invited to qualify an dbid on the project are outlined on page 4. Page 27 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd CITY OF ST. LOUIS PARK | THE MERA4PROPOSED PROJECT BID LISTPage 28 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 Wayzata, LLC – 9920 Wayzata Blvd CITY OF ST. LOUIS PARK | THE MERA 5 ¾Separating sidewalks and site concrete from larger/ complex building concrete packages. ¾Trucking and hauling contracted separately from large onsite earthwork activities. ¾Pass down WBE/MBE and workforce goals to our large subcontractors (over $1MM subcontracts). ¾Examples of potential partnering large subcontractors with smaller WBE/MBE sub-subcontractors could include: ¾Concrete subcontract contracting reinforcing steel work (numerous rebar/PT subcontractors are within the MBE/WBE database) ¾Electrical subcontractor contracting fire alarm or other portions of low voltage work to MBE/WBE subcontractor(s) ¾HVAC subcontractor may subcontract: - Insulation - Controls - Large subcontractors may also have options for WBE/MBE suppliers to furnish material on the project OTHER DEI COMMITMENTS: ¾Our preconstruction team offers bid assistance for WBE/MBE subcontractors. We will host a pre-bid open house at Big-D office and/or via web conference where we will provide project overview of scope, schedule and project expectations and make our Precon team members available to answer questions and guide the bidding community about this and other future opportunities for MBE/WBE subcontractors. ¾While we sit with the owner representatives and the design professionals establishing the goals for the project and structuring the budget the entire team will focus on DEI opportunities that could benefit or be pursued on the project. Participating on this phase of a project is the most effective way for a General Contractor to assist in accomplishing goals as outlined in lieu of the traditional process of Design/Bid/Build. ¾This process engaged with The Bigos Development Team and ESG Architects can effectively accomplish significant goals for the community A challenge often exists when we attempt to utilize subcontractors and vendors that are considered M/WBE entities, the scope of work is often too large. To consider contractors within these defi ned categories we have learned that breaking our work scopes and utilizing sometimes 2-3 diff erent entities to complete a large division of work is the best approach, some examples of how we accomplish this are as follows: WAGE THEFT PREVENTION STRATEGY ¾As part of our individual project safety orientation we intend to add more detail around worker rights. We will specifically call out Dept. of Labor information available on the jobsite, inclusive of the phone number for the MN wage theft hotline at Dept of Labor and Industry. ¾We provide DLI posters around the entire jobsite and the site offices. ¾A continued awareness that starts during the qualification process with all subcontractors and vendors to learn their business and how their installations occur has been successful in avoiding subcontractors that do not legitimately follow the Department of Labor policies. ¾As a large, multi-state firm that has grown for over Fifty-Five (55) years, we have a mature and robust process to ensure that we do not entertain contractors that do not qualify in every region we do business. Page 29 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd BIG-D SCOPE BREAKDOWN STRATEGY CITY OF ST. LOUIS PARK | THE MERA6 THE CONSTRUCTION BUSINESS SHOULD NOT BE RISKY BUSINESS. Big-D Construction takes the safety of our workers and our job sites seriously. Our company’s EMOD rate is 0.62—well below the national average of 1.0. Our incident rate is 0.58—also well below the construction industry rate of 5.0. Why such good numbers? Each employee attends a mandatory Safety Orientation specifi c to your project prior to commencement of any work on the project. No ifs, ands, or buts. Moreover, all on-site employees attend a weekly site safety meeting. Our subcontractors are trained on safe work methods and up-to-the-minute safety regulations for each project, too. The Big-D safety offi cer and on-site safety coordinator cover all bases when it comes to safety on the job site. WE PREFER TO TH!NK FIRST. We use our heads before we use our hands and machinery. With that mandate in mind, our job sites and corporate facilities feature signs that tout our TH!NK process: T–Think through the task H–Hazard recognition I–identify the risks N–Neutralize the hazards K–Keep safety fi rst in all tasks TH!NK is more than a helpful motto and acronym. Our focus on safety includes: ¾SAFETY SHARES: Before any project meeting begins, participants take turns communicating a safety concern that they have seen, heard about, or experienced. ¾SAFETY PLEDGE: Each employee fills out a personal safety pledge confirming their commitment and outlining how they plan on safely performing their work. ¾STAND-DOWNS: We halt without hesitation. All activity related to a task is stopped if recognized as being performed unsafely. This may be any activity performed by an individual, company, or project-wide. ¾ROOT CAUSE ANALYSIS: Incident or near-miss reports are required so we can avoid future incidents. It’s called “learning from your mistakes.” ¾CORRECTIVE ACTION PLANS: We will re-TH!NK the task and prepare a new plan of action. ¾SAFETY ALERT BULLETINS: We publish what we have learned for the benefit of others. ¾YEARLY TRAINING REQUIREMENTS: All management-level employees (field and office) are required to attend 30 hours of OSHA training. ¾DRUG TESTING: Pre-employment drug testing is required with random testing conducted monthly, so that a minimum of 25% of the project workforce is tested annually. ¾PERSONAL PROTECTIVE EQUIPMENT: Our required PPE includes a hard hat, safety glasses, steel-toed work boots, and high visibility vests. Additional PPE may be worn, as the task requires. ¾DISASTER PLAN: A site-specific disaster plan or action is always created. Big-D maintains current emergency contact data for each employee and for our subcontractor’s employees. ¾PRE-PROJECT REVIEW: Safety is step one. Our Field Safety Committee meets with each project team to review potential hazards and risks. ¾SUBCONTRACTOR SELECTION: Only subcontractors who view safety as a core value are selected. Each must attend preconstruction meetings and site safety training. Trainings are provided in English and Spanish to support diversity on our jobsites. ¾WEEKLY SAFETY MEETINGS: These meetings are held to discuss topics that pertain to the work currently being performed. Subcontractors are required to hold their own meetings and submit copies for verification of compliance. ¾HOUSEKEEPING: All job sites are required to be kept clean and organized. It’s a matter of pride, as well as safety. ¾SITE INSPECTIONS: These detailed inspections are conducted frequently by our Site Safety Representative or HSE Superintendent, the Superintendent, Foreman, and Project Managers. During site inspections, all visitors are expected to follow stringent safety guidelines. ¾INJURY PREVENTION PROGRAM: We employ a written Injury and Illness Prevention Program and Hazardous Communication Program. ¾VIOLATIONS: In the last 2 years, Big-D Midwest has received zero (0) Serious, Willful or Repeat OSHA violations. We have received one (1) minor OSHA violation for failure to have the proper quantity of fire extinguishers on a jobsite. Think Through the Hazard Hazard Recognition Identify the Risks Neutralize the Hazards Keep Safety First in All Tasks BIG-D TH!NK SAFETY PROGRAM STATISTICS AND PROCEDURES S A F E T Y THE FOUNDATION WE BUILD ON Page 30 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purc hase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd CITY OF ST. LOUIS PARK | THE MERA 7 GU!DE | LEARN, PRACTICE, & TEACH BIG-D BUYS INTO IT 100%. WE PRACTICE WHAT WE PREACH. Big-D’s Mission Statement To be the most sought after construction company in the business. Big-D’s Green / Sustainability Statement To learn, practice, and teach green / sustainable design and construction as a core responsibility. Commitment Big-D is committed to providing leadership and education for customers, employees, and vendors that will help them understand and implement green / sustainable building practices throughout the design, engineering, procurement, and construction. Goal Our goal is to incorporate best green / sustainable building practices and USGBC LEED® certifi cation standards into 100% of our projects. Result Achieving this goal will add value to every project— positively impacting the environment, building operations, occupants, society, and future generations. Guiding Principle “We do not inherit the Earth from our ancestors, we borrow it from our children.” - Native American Indian Proverb Guide, Lead, & Educate Understand the Impact Improve the Environment Divert Waste Exercise Energy Conservation SUSTAINABILITY LEARN, PRACTICE & TEACH MOTHER EARTH WOULD CALL US A VERY RESPONSIBLE TENANT. Developed by the U.S. Green Building Council (USGBC) in 2000, the LEED (Leadership in Energy and Environmental Design) Green Building Rating System™ is a voluntary, consensus-based national standard for developing high-performance, sustainable buildings. LEED is a self-assessing measurement tool, based on a point system, which focuses on a number of design and construction strategies aimed at reducing a building’s environmental footprint. During construction, we manage and control costs so LEED points can be achieved in a cost-eff ective manner and yield an aesthetically pleasing, energy effi cient project. Big-D’s approach to LEED produces environmentally friendly results for the site, community, and occupants. PROJECTS UNDER CONSTRUCTION: The Rowan Apartments Project in Eagan, MN – LEED Gold (goal) ¾Tracking with a points surplus for a margin of error ¾Client originally outlined the project as Silver ¾Design and Construction Team leveraged the process to achieve Gold Page 31 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd BIG-D GUIDE SUSTAINABILITY PROGRAM CITY OF ST. LOUIS PARK | THE MERA8 U OF U HEALTH SCIENCES EDUCATION BUILDING LEED CERTIFIED SUU CENTER FOR HEALTH & MOLECULAR SCIENCES LEED GOLD LEED EXPERIENCE? BEEN THERE, DONE THAT. By the way, Big-D Construction has completed several LEED certifi ed buildings and is proud to have been a trail blazer on several LEED fi rsts: ¾Swaner EcoCenter – 1st LEED Platinum for New Construction building in Utah ¾Big-D Construction Corporate Office - 1st LEED Gold & 1st Historic Renovation to receive LEED certification in Utah ¾University of Utah Health Sciences Education Building - 1st first LEED Certified project for the University of Utah, the Utah System of Higher Education and the DFCM of Utah (Division of Facilities Construction and Management) ¾Westminster College Meldrum Science Center - 1st LEED Platinum Higher Education Campus Building in Utah ¾Hill Air Force Base 3Bay Fire Station – 1st LEED Gold & 1st building to receive LEED certification at Hill Air Force Base ¾Newpark Town Center – 1st LEED Silver & 1st building to receive LEED for Neighborhood Development certification in Utah ¾Newpark Town Center Best Buy – 1st LEED Silver & only interior to receive LEED for Retail Commercial Interiors certification in Utah SUSTAINABLE CONSTRUCTION MEMBERSHIPS, AFFILIATIONS AND AWARDS: ¾Associated Builders and Contractors (ABC) Certified Green Contractor - One of first four National contractors to participate in and earn this exclusive designation 2009 ¾Salt Lake City Environmentally and Economically Sustainable (e2) Business Program Member ¾Salt Lake City Clean Utah Program Member ¾Utah’s Green Business Awards Company Achievements, Builder - Utah Business Magazine 2010 ¾Top 10 Green Contractors - Mountain States Construction 2010 ¾Top 100 Green Contractors - ENR 2009 - 2018 SUSTAINABLE CONSTRUCTION PROJECTS Prior to the implementation of LEED, Big-D completed the Ogden Nature Center and Utah Botanical Center. Although they’re not LEED Certifi ed, these projects were constructed within the guidelines of LEED. So, without trying to sound egotistical, we were ahead of our time. Additional sustainable projects include: ¾F/A 22 Fueled Composite Aircraft Overhaul/Test Facility - constructed to LEED Silver certifiable criteria ¾F-22 Heavy Maintenance Facility & Composite Backshop - constructed to LEED Silver certifiable criteria ¾Unified State Laboratory - High Performance Green Building (State of Utah equivalent to LEED Silver) WESTMINSTER COLLEGE MELDRUM SCIENCE CENTER LEED PLATINUM Page 32 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd CITY OF ST. LOUIS PARK | THE MERA 9 LEED SILVER – 30 18 CERTIFIED | 12 REGISTERED* ¾Cottonwood Newpark III Office Building ¾Fort Bliss Fire & Military Police Station ¾Fort Riley Training Support Center ¾Hill AFB F/A 22 Fueled Composite Aircraft Overhaul/Test Facility ¾Hill AFB F-22 Heavy Maintenance Facility & Composite Backshop ¾Kennecott Mine Office Building ¾Kirtland AFB Building 415 Addition ¾Loevner House ¾Newpark Town Center Development ¾Palo Alto Art Center Renovation ¾Sears Distribution Center ¾Swire Coca-Cola Plant & Corporate Office Expansion ¾Thanksgiving Park Phase 2 ¾Thanksgiving Park Phase 3 ¾Utah Valley University New Science Building ¾Vernal City Municipal Center ¾Weber State University Davis Campus Professional Classroom Building ¾Utah Data Center ¾Hill AFB F-22 Systems Support Facility ¾Weber State University Lindquist Hall* ¾Traverse Mountain II Office Building* ¾Dugway Proving Ground Life Sciences Test Facility Addition* ¾Holloman Air Force Base Unmanned Aerial System Field Training Unit Complex* ¾Peterson AFB C-130 Squadron Ops Facility* ¾Salt Lake Community College Center for New Media Annex Building* ¾Salt Lake City International Airport Terminal Redevelopment* ¾Vivint Phase II Office Building* ¾Intermountain Healthcare Bountiful Clinic Expansion* ¾Tinker Air Force Base TACAMO E6-B Hangar* ¾Salt Lake City Child Care Center* ¾TACAMO E6-B Hangar* LEED CERTIFIED – 14 8 CERTIFIED | 6 REGISTERED* ¾Yellowstone Club Golf Clubhouse ¾BYU Office of Information Technology ¾Cannon AFB C-130 Maintenance Hangar ¾Ellsworth AFB Add/Alter Deployment Center ¾Home Depot Rapid Deployment Center ¾Kennecott Visitors Center ¾Newpark Town Center - Best Buy ¾University of Utah Health Sciences Education Building ¾Lost Pines Art Center* ¾Intermountain Healthcare Draper Clinic* ¾Intermountain Healthcare Bountiful Clinic* ¾Kennecott Utah Copper Molybdenum Autoclave Project (MAP) Services Complex Building* ¾Scannell/KeHe at Himalaya Commerce Center * ¾Hardware Village* THE BIG-D WAY GU!DE | LEARN, PRACTICE, & TEACH Now, here’s the proof. 77. Big-D Construction has completed 54 LEED certified projects, another 23 that are LEED registered*. Big-D currently employs over 61 LEED Professionals and continually promotes and encourages continued education in green building practices for all employees. LEED PLATINUM – 6 CERTIFIED ¾Anthony C. Beilenson Interagency Visitor Center at King Gillette Ranch ¾Swaner EcoCenter ¾Utah Sports Medicine & Orthopaedic Center ¾Westminster College Meldrum Science Center ¾Wetlands Discovery Point ¾Univ. of Utah S.J. Quinney College of Law ¾Utah State University Botanical Center Wetland Discovery Point LEED GOLD – 27 24 CERTIFIED | 3 REGISTERED* ¾AIA Utah Headquarters ¾AGC Utah Headquarters ¾Big-D Construction Corporate Office ¾Center for Advanced Energy Studies ¾Fort Carson Iron Horse Sports & Fitness Center ¾Gallivan Center ¾Grand Teton National Park Moose Maintenance Phase 1 & 2 Building Rehab ¾Hill AFB 3-Bay Fire Station ¾Lincoln Center ¾Millcreek Community Senior, Library & Recreation Center ¾Natural History Museum of Utah ¾Ogden IRS Dossier Building ¾ProLogis Park Crate & Barrel Dist. Center ¾Rio Tinto Consolidated Warehouse ¾Southern Utah University Center for Health & Molecular Sciences ¾The Children’s Center, Oquirrh School Renovation ¾Tracy Aviary Phase 2B Entrance, Guest Services & Education Buildings ¾Tracy Aviary Phase 2C Bird Holding Building ¾Tracy Aviary Phase 2C Bird Program Building ¾Utah Valley University New Academic Classroom Building ¾Vernal Dinosaur National Monument Quarry Visitor Center Replacement & Exhibit Hall ¾Xactware Corporate Office Building ¾Cornerstone at Cottonwood Phase I ¾Cornerstone at Cottonwood Phase II ¾Intermountain Healthcare Park City Hospital Expansion* ¾Salt Lake City International Airport Terminal Redevelopment* ¾Salt Lake County Health Department* Page 33 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purchase and re development contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd ESG cultivates an environment of passion, respect, and innovation. As designers, we are always learning and improving on past performance, inspiring us to renew and strengthen our commitment to justice, equity, diversity, and inclusion (JEDI) within our firm and our community. Our ongoing efforts include the creation of an employee-driven JEDI Committee, undertaking a firm wide Equity & Inclusion Assessment, and a commitment to increase the diversity of our job applicants, employees, shareholders, contractors, and vendors. ESG believes that diversity strengthens communities, sparks creativity and makes us all around better people. An equitable and inclusive firm culture strengthens our work by allowing employees to bring their full, authentic selves to every project. VENDOR AND PARTNER RESOURCES A dedicated list of BIPOC and women owned businesses help encourage teams to be thoughtful in selecting relationships. TRAINING AND EDUCATION Quarterly trainings on various subjects are available to staff year round to maintain an education on JEDI variables and support actionable change within the industry of design. STAFF DIVERSITY AND RETENTION We’re dedicated to inclusiveness throughout our firm, first by being an equal opportunity employer, but also by contributing to a number of scholarships that help BIPOC students advance into the architectural and design profession. It’s our hope that these efforts will lend to more diversity amongst staff as we continue to evolve. Being equitable, diverse and inclusive is an on-going effort that ESG views as important to the industry and culture. Our efforts will evolve as our knowledge does. With a commitment to advancing our knowledge and practice, ESG is proud to have an in-house JEDI (Justice, Equity, Diversity, Inclusion) Committee created by, and made up of staff who believe in the efforts below. Our primary focus in JEDI lands within the following three categories: JUSTICE, EQUITY, DIVERSITY, INCLUSION 01 02 03 Page 34 Economic development authority meeting of March 21, 2022 (Item No. 6b) Title: Public Hearing - Purc hase and redevelopment contract with Bigos-9920 W ayzata, L LC – 9920 W ayzata Blvd Meeting: City council Meeting date: March 21, 2022 Presentation: 2a Executive summary Title: SWLRT construction overview and update Recommended action: No action necessary at this time. Policy consideration: None at this time. Summary: The Southwest Project Office (SPO) last presented to the city in February of 2021, where they shared that construction challenges in the Kenilworth corridor and the addition of an approximately 1-mile corridor protection barrier between the BNSF freight trains and LRT trains would increase the project timeline. However, specifics related to the extended timeline were not yet available. The SPO now has an agreement in place with the contractor that addresses the new construction schedule and additional costs. Their presentation will focus on the key construction challenges, status of the changes to the construction schedule, updated project costs , an overview of construction activities in St. Louis Park and anticipated construction activities that will occur in 2022. A virtual town hall meeting for St. Louis Park was held on March 14, 2020. Approximately 40 people watched the presentation. The project team is expected to share a similar presentation with council on March 21. SPO has been keeping residents and users in the area apprised of construction changes and closures, as well as sending direct mailed notice s to property owners along the corridor. The Metropolitan Council is transitioning the project name from Southwest LRT to the Metro Green Line Extension to better communicate the transportation network that expands the current Green Line through Minneapolis and St. Paul. Additional information on Metro Green Line Extension can be found at www.greenlineext.org. Anyone can sign up to receive weekly construction updates on this site. The 24-hour hotline number to call for construction-related issues is 612.373.3933. Financial or budget considerations: There are no new financial or budget considerations. The city has already contributed a total of $5.61 million to the project. Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: None Prepared by: Jack Sullivan, e ngineering project manager Reviewed by: Deb Heiser, engineering director Approve d by: Cindy Walsh, Deputy City Manager/Operations and Recreation Director Meeting: City council Meeting date: March 21, 2022 Presentation: 2b Executive summary Title: Recognition of donations Recommended action: Mayor to announce and express thanks and appreciation for the following donation being accepted at the meeting and listed on the consent agenda: From Donation For Leslie Marcus $100 Park enhancements or program needs at Westwood Hills Nature Center Leif Anderson $443.84 Park enhancements or program needs at Westwood Hills Nature Center Linda Mell $250 Memorial tree to be installed in Wolfe Park Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None Prepared by: Debbie Fischer, administrative services office assistant Approve d by: Kim Keller, city manager Meeting: City council Meeting date: March 21, 2022 Consent agenda item: 4a Executive summary Title: Accept donations to the operations and recreation department Recommended action: Motion to adopt Resolution approving acceptance of donations to the operations and recreation department totaling $793.84. Policy consideration: Does the city council wish to accept these gift s with restrictions o n th eir use? Summary: State statute requires city council’s acceptance of donations. This requirement is necessary in order to make sure the city council has knowledge of any restrictions placed on the use of each donation prior to it being expended. Leslie M arcus graciously donate d $100, and Leif Anderson graciously donated $443.84 to Westwood Hills Nature Center. The donations are given with the restriction that they be used for park enhancements or program needs at Westwood Hills Nature Center. Linda M ell graciously donated $250 for a memorial tree to b e in stalled in Wolfe P ark. Financial or budget considerations: The donations from Leslie Marcus and Leif Anderson will be used for park enhancements or program needs at Westwood Hills Nature Center. The donation from Linda M ell will be us ed for a m emorial tree in Wolfe Park. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Resolution Prepared by: Carrie Mandler, secretary program aide Reviewed by: Mark Oestreich, Westwood Hills Nature Center manager Stacy Vo elk er, s enior office assistant Approve d by: Cindy Walsh, deputy city manager/operations and recreation director City council meeting of March 21, 2022 (Item No. 4a) Page 2 Title: Accept donations to the operations and recreation department Resolution No. 22 - ____ Resolution approving acceptance of donations in the amounts of $100 and $443.84 to be used for park enhancements or program needs at Westwood Hills Nature Center, and $250 for a memorial tree in Wolfe Park Whereas, the City of St. Louis Park is required by state statute to authorize acceptance of any donations; and Whereas, the city council must also ratify any restrictions placed on the donation by the donor; and Whereas, Leslie Marcus donated $100.00, Leif Anderson donated $443.84, and Linda Mell donated $250. Now therefore be it resolved by the City Council of the City of St. Louis Park that the se gifts are hereby accepted with thanks to Leslie Marcus and Leif Anderson with the understanding that they must be used for park enhancements or program needs at Westwood Hills Nature Center, and thanks to Linda Mell with the understanding it be used for a memorial tree to be planted in Wolfe Park. Reviewed for administration: Adopted by the City Council March 21, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: March 21, 2022 Consent agenda item: 4b Executive summary Title: Appoint Metropolitan Emergency Services Board 9-1-1 Technical Operations Committee representative Recommended action: Motion to adopt Resolution approving the appointment of Dispatch Supervisor Eric Lammle as the primary representative from the police department to the Metropolitan Emergency Services Board (MESB), 9-1-1 Technical Operations Committee (TOC). Policy consideration: How will participation in this committee benefit the city? Summary: The MESB was established to oversee the 9-1-1 system in the nine-county metropolitan area of Minneapolis and St. Paul. Some of its directives include providing network oversight, establishing standards and guidelines for 9-1-1 services and the region’s interoperable radio system, coordinating the 9-1-1 database to ensure the accuracy, and facilitating meetings for radio users and Public Safety Answering Points (PSAPs). One of the groups facilitated is the 9-1-1 TOC which is tasked with identifying, reviewing, and recommending operating standards that are adopted by the MESB in the area of 9-1-1 and radio operations. The participation of St. Louis Park representatives allows for a single member vote on any motion brought before the 9-1-1 TOC. Additionally, these meetings provid e a valuable platform for issues that are handled by this workgroup which are unique to, or specifically impact , the city of St. Louis Park . The 9-1-1 TOC is currently represented by most PSAPs in the nine -county region . The currently appointed primary representative for St. Louis Park is Marv Solberg. Marv is the lead dispatcher for our PSAP with one of his primary responsibilities involv e s the review and planning for the technical elements of the dispatch center. Eric Lammle will be assuming the newly created role of dispatch supervisor and absorbing many of Marv Solberg’s former responsibilities. Lt. Greg Weigel, who oversees the PSAP as of 1/1/20, is the secondary representative and will remain as such. 9-1-1 TOC by -laws require member appointments and replacements be achieved through resolution by each agency’s governing body. Financial or budget considerations: Not applicable Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. • Ensure the technology framework of our local PSAP is representative of regional and national advancements in orde r to meet the service delivery needs of the public. • Ability to help shape PSAP operating standards adopted throughout the metropolitan area that have the potential to impact the safety and services provided to people in the city of St. Louis Park. Supporting documents: Resolution By-laws of MESB 9-1-1 Technical Operations Committee Prepared by: Greg Weigel, police lieutenant Reviewed by: Mike Harcey , police chief Approve d by: Kim Keller, city manager City council meeting of March 21, 2022 (Item No. 4b ) Page 2 Title: Appoint Metropolitan Emergency Services Board 9-1-1 Technical Operations Committee representative Resolution No. 22-____ Resolution approving the appointment of Dispatch S upervisor Eric Lammle as the primary representative from the police department to the Metropolitan Emergency Services Board, 9-1-1 Technical Operations Committee Whereas, the City desires continued participation on the Metropolitan Emergency Services Board (MESB) 9-1-1 Technical Operations Committee (TOC); and Whereas, the by-laws of the MESB allow for no more than one representative and one designated alternate representative from each primary and secondary Public Safety Answering Point (PSAP) in the metropolitan region; and Whereas, the by-laws of the MESB require the governing body of each PSAP, by resolution, shall appoint its representative to the 9-1-1 Technical Ope rations Committee; and Whereas, the city council has reviewed the proposal to appoint Eric Lammle, dispatch supervisor as the City’s primary TOC representative; and Now therefore be it resolved, the St. Louis Park City Council approves the proposed repre sentative change for the MESB 9-1-1 Technical Operations Committee (TOC). Reviewed for administration: Adopted by the City Council March 21, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk BY- LAWS OF THE METROPOLITAN EMERGENCY SERVICES BOARD 9-1-1 TECHNICAL OPERATIONS COMMITTEESECTION 1: COMPOSITION There shall be a 9-1-1 Technical Operations Committee composed of no more than one representative and one designated alternate representative from each primary and secondary Public Safety Answering Point (PSAP) in the metropolitan region. The governing body of each PSAP, by resolution, shall appoint its representative to the 9-1-1 Technical Operations Committee or the governing body of each PSAP shall, by resolution, designate an appointing authority to make representative appointments. The governing body or appointing authority may also choose to appoint an alternate representative. If alternate representatives are appointed, they shall have the same voting rights as the representative for whom they are appointed to serve as an alternate. SECTION 2. CHAIR The 9-1-1 Technical Operations Committee shall recommend to the Chair of the Board at the annual organizational meeting of the Board a Chair of the 9-1-1 Technical Operations Committee. The Chair of the Board shall appoint the Chair of the 9-1-1 Technical Operations Committee subject to the approval of the Board. The Chair shall preside at all meetings of the 911 Technical Operations Committee and perform the usual duties of a Chair. SECTION 3. VICE CHAIR The 9-1-1 Technical Operations Committee shall recommend to the Chair of the Board at the annual organizational meeting of the Board a Vice Chair of the Committee. The Chair of the Board shall appoint the Vice Chair of the 9-1-1 Technical Operations Committee, subject to the approval of the Board. The Vice Chair shall perform the duties of the Chair in the absence of the Chair or in the event of his or her inability or refusal to act. SECTION 4. POWER AND DUTIES The 9-1-1 Technical Operations Committee shall have the following powers and duties: a. Present to the Board plans, operating standards, studies, and reports, prepared forthe Board purposes and action and recommend to the Board, for adoption, such measures as are deemed necessary to enforce or carry out the powers and duties of the Board. b. Monitor the installation and operations of the regional 9-1-1 system as required by theBoard. Page 3 City council meeting of March 21, 2022 (Item No. 4b ) Title: Appoint Metropolitan Emergency Services Board 9-1-1 Technical Operations Committee representative c. Prepare and submit to the Executive Director by May 1st of each year itsrecommendations for items to be included in the budget request to the Board for the following year. d. Perform other such duties as may be prescribed by the Board.SECTION 5. VOTING Each member of the 9-1-1 Technical Operations Committee may cast one vote on any motion before the 9-1-1 Technical Operations Committee. A simple majority vote of the members present shall be required to pass any motion, provided there is a quorum. Voting can be either by voice or roll call provided that a roll call vote may be called for by any member of the 9-1-1 Technical Operations Committee. Absentee or proxy voting is not permitted. SECTION 6. MEETINGS The 9-1-1 Technical Operations Committee may provide, by resolution, the time and place for holding regular meetings of the 9-1-1 Technical Operations Committee. Notice of regular meetings of the 9-1-1 Technical Operations Committee shall be given to each member of the 9-1-1 Technical Operations Committee at least five (5) days prior to such meeting, and, in all respects, shall comply with the provisions of the open meeting law. Special meetings of the 9-1-1 Technical Operations Committee may be called by the Chair provided that at least three (3) days notice be given to each member of the 9-1-1 Technical Operations Committee and otherwise comply with the provisions of open meeting law. SECTION 7. QUORUM The majority of the members designated by the appointing authorities shall constitute a quorum. SECTION 8. ATTENDANCE 9-1-1 Technical Operations Committee members or their alternates are expected to regularly attend the meetings. In the event that either a regular member, or their designated alternate representative, fails to attend at least 75% of the regular committee meetings held in any calendar year, that member’s appointing authority will be notified and given an opportunity to appoint a new member and/or designated alternate. Page 4 City council meeting of March 21, 2022 (Item No. 4b ) Title: Appoint Metropolitan Emergency Services Board 9-1-1 Technical Operations Committee representative Meeting: City council Meeting date: March 21, 2022 Consent agenda item: 4c Executive summary Title: Accept special assessment: Texa-Tonka shopping ce nter sidewalk (Ward 4) Recommended action: Motion to approve a special assessment agreement and adopt Resolution authorizing the special assessment for the Texa-Tonka shopping center sid ewalk. Policy consideration: The proposed action is consistent with the city charter and Minnesota Statutes Chapter 429. Summary: Representatives for Pastor Properties, owner of the Texa-Tonka shopping center at 8000 Minnetonka Boulevard, have requested the city authorize the construction of co ncrete sidewalk and grass boulevard along Minnetonka Boulevard and assess the cost against the property in accordance with the Minnesota Statutes Chapter 429. Under this agreement, the owners will agree to be assessed for the project, including all costs related to the survey, design, and construction of the sidewalks and the city’s e ngineering and administrative costs associated with the project. The hiring of a contractor and oversight of the sidewalk construction will be completed by city staff. The final bill will be based on the completed work and all associated administrative and engineering work. The total estimate d cost of this project has been determined to be $53,531.25. The assessment will be for 10 years at 3% interest. City council supports active transportation, including bikeways, sidewalks, trails, and constructing a continuous network of active transportation facilities throughout the city. This proj ect q ualifi es f or a special assessment and its approval is in accordance with Minnesota Statutes Chapter 429. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: Sp ecial assessment agreement Resolution Location map Prepared by: Phillip Elkin, engineering services manager Reviewed by: Debra Heiser, engineering director Approve d by: Cindy Walsh, deputy city manager/operations and recreation director City council meeting of March 21, 2022 (Item No. 4c ) Page 2 Title: Accept special assessment: Texa-Tonka shopping center sidewalk PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENT AGREEMENT dated _________, by and between the CITY OF ST. LOUIS PARK a Minnesota municipal corporation ("City") AND TEXA TONKA SHOPPING CENTER LLC , a Minnesota limited liability company (“Owner”). RECITALS A. Owner is the fee owner of the following real property located in the City of St. Louis Park, Hennepin County, Minnesota legally described as: Lots 14 TO 27, Block 2, TEXA TONKA ADDITION And having street address of 8000 Minnetonka Boulevard, St. Louis Park, Minnesota 55426 (the "Subject Property"). B. Owner has requested that the City install concrete sidewalk and boulevard improvements along Minnetonka Boulevard and Virginia Avenue South to serve the Subject Property (the "Public Improvements"). C. Owner has requested that the City assess the total amount of the fees and charges associated with the installation of the Public Improvements in accordance with the term of this Agreement (“Assessment”). D. City is agreeable to completing the Public Improvements if Owner pays for the Public Improvements. NOW, THEREFORE, in consideration of their mutual covenants the parties agree as follows: 1. PUBLIC IMPROVEMENTS. The City will design and construct the Public Improvements to serve the Subject Property (Exhibit A). 2. SPECIAL ASSESSMENT. The Assessment in the total amount of $53,531.25 shall be assessed against the Subject Property for fees and charges for designing and constructing the Public Improvements. The Assessment includes associated legal expenses, engineering administration and staff time, financing (bond issuance), construction observation, surveying, record drawing preparation, permits and publications against their respective properties. Assessment shall be deemed adopted on the date this Agreement has been approved by the City. The assessment shall be deferred over a ten (10) year period in equal annual installments, together with interest of three percent (3%) per year from the date of the adoption of this assessment on the unpaid balance. The deferral shall terminate and the entire unpaid balance shall be due and payable in full upon the sale of any portion of the Subject Property. The first City council meeting of March 21, 2022 (Item No. 4c ) Page 3 Title: Accept special assessment: Texa-Tonka shopping center sidewalk installment shall be payable with taxes paid in 2023 and will include interest from the date of adoption of this assessment through December 31, 2023. 3. WAIVER. Property Owners, their heirs, successors and assigns, waive any and all procedural and substantive objections to the Assessment, including but not limited to hearing requirements and any claim that the Assessment exceeds the benefit to the Subject Property. Property Owners waive any appeal rights otherwise available pursuant to Minn. Stat. § 429.081. 4. BINDING EFFECT; RECORDING. This Agreement shall be binding upon Property Owners and Property Owners’ heirs, successors and assigns. This Agreement shall run with the land and may be recorded against the title to the Subject Property. CITY OF ST. LOUIS PARK BY: _________________________________ Jake Spano, mayor AND ________________________________ Kim Keller, city manager OWNER: TEXA TONKA SHOPPING CENTER LLC. BY: _________________________________ Its STATE OF MINNESOTA ) ( ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______ day of _____________, 2022, by ____________________________ and by ____________________________, respectively the Mayor and City Manager of the City of St. Louis Park, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. ____________________________________ NOTARY PUBLIC City council meeting of March 21, 2022 (Item No. 4c ) Page 4 Title: Accept special assessment: Texa-Tonka shopping center sidewalk STATE OF MINNESOTA ) ( ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______ day of _____________, 2022, by __________________________ the __________________________ of Texa Tonka Shopping Center LLC, a Minnesota limited liability company (“Owner”), on behalf of the company. ___________________________________ NOTARY PUBLIC DRAFTED BY: CAMPBELL KNUTSON Professional Association Grand Oak Office Center 1 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (651) 452-5000 LK City council meeting of March 21, 2022 (Item No. 4c ) Page 5 Title: Accept special assessment: Texa-Tonka shopping center sidewalk Resolution No. 22-____ Resolution approving and adopting a public improvement and special assessment agreement Whereas, Texa Tonka Shopping Center LLC (“Owner”) is the fee owner of property located in the City of St. Louis Park, Hennepin County, Minnesota legally described as: Lots 14 TO 27, Block 2, TEXA TONKA ADDITION And having street address of 8000 Minnetonka Boulevard, St. Louis Park, Minnesota 55426 (the "Subject Property"). Whereas, Owner has requested assessment of the costs associated with installing a concrete sidewalk and boulevard improvements along Minnetonka Boulevard and Virginia Avenue South, together with associated legal expenses, engineering, administration, and staff time, financing (bond issuance), construction observation, surveying, record drawing preparation, permits, and publications against the Subject Property; Whereas, the City has received the attached signed Public Improvement and Special Assessment Agreement, attached hereto as Exhibit A, (“Assessment Agreement”) that includes assessment of the costs of the improvements and waiving all applicable assessment procedural requirements and requesting to be assessment for the public improvement costs in the amount itemized therein against the Subject Property. Now therefore be it resolved by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. The A ssessment Agreement is hereby accepted and approved. 2. A special assessment in the principal amount of $53,531.25.00 is hereby imposed against the Subject Property. 3. Such assessment shall be payable in equal annual installments extending over a period of 10 years, the first of the installments to be payable with the first installment of the 2023 property taxes, and shall bear interest at the rate of 3% per annum. To the first installment shall be added interest on the entire assessment from the date of this resolution until December 31, 2023. The entire unpaid balance of the assessment shall be due and payable in full upon the sale of any portion of the Subject Property. 4. The Owner may, at any time prior to certification of the assessment to the County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of payment, to the City, except that no interest shall be charged if the entire assessment is paid within 60 days from the adoption of this resolution; and the property owner may, at any time City council meeting of March 21, 2022 (Item No. 4c ) P age 6 Title: Accept special assessment: Texa-Tonka shopping center sidewalk thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. 5.The City Clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. Reviewed for Administration: Adopted by the City Council March 21, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk MINNETONKA BLVDMINNETONKA BLVDVIRGINIA AVE SVIRGINIA AVE S0 40 8020 Feet Texa Tonka Sidewalk Project New Sidewalk Boulevard Date: 3/15/2022 Page 7 City council meeting of March 21, 2022 (Item No. 4c ) Title: Accept special assessment: Texa-Tonka shopping center sidewalk Meeting: City council Meeting date: March 21, 2022 Consent agenda item: 4d Executive summary Title: Approval of out-of-state travel for mayor and council members Recommended action: Motion to approve out-of-state travel for the mayor and council members. Policy consideration: Elected officials out-of-state travel must be approved by the governing body. Summary: Staff requests approval from the city council, per the City’s Elected Official Out-of- State Travel policy, to attend the National League of Cities (NLC) Congressional City Conference in Washington, D.C. from March 12-16. And, approval for Mayor Spano to attend the Mayor’s Innovation Project (MIP) 2022 Winter Meeting from March 16-17 while in Washington, D.C. Per the policy, elected officials out-of-state travel must be approved by the governing body. Mayor Spano, Council Member Mohamed, and Council Member Kraft requested attendance at these events in 2022. Financial or budget considerations: The estimated cost is $3,000 per attendee for the NLC Congressional City Conference . The estimated cost is $1,000 for the mayor to attend the MIP 2022 Winter Meeting. The city man ager has confirmed that sufficient funds for the se expense s are included in the city’s 2022 budget. Strategic priority consideration: Not applicable. Supporting documents: None Prepared by: Melanie Schmitt, chief financial officer Approve d by: Cindy Walsh, deputy city manager/operations and recreation director Meeting: City council Meeting date: March 21 , 2022 Consent agenda item: 4e Official minutes Human rights commission February 15, 2022 – 7:00 p.m. Members present: Virginia Mancini, Katie Lawler Turnbull, Astein Osei, Li Livdahl, Andre Barajas, Thomas Scott, Emily Buchholz , Paul Baudhuin (joined at 7:18pm) Members absent: Jaime Chismar, Avi Olitzky Staff present: HR director (Ali Timpone ), Police Lieutenant (Mikael Garland) Guests: None 1. Call to order Chair Mancini called the commission to order at 7:00 pm. Ms. Timpone conducted roll call. 2. Approval of minutes – Human rights commission of November 9, 2021 Minutes were approved as distributed. 3. Approval of agenda Agenda was approved 4. Bias Motivated Crime Review Lt. Garland presented information from the St. Louis Park Police Department (SLPPD) on bias motivated crimes, slides attached. The materials showed a marked increase in bias motivated crimes in 2020 which Lt. Garland said may be attributed to hate crimes against Asian -American Pacific Islanders, Muslims, or other groups stemming from political divides. Lt. Garland noted that only a small number of suspects are ever prosecuted for the crimes listed in the report. What the HRC can do with this data is to reach out to the PD to get more data when a bias motivated crime occurs. The HRC can reach out to the victims with a letter of support. The HRC can use the data to build awareness of citywide trends and design education/outreach in response to crime statistics. Chair Mancini asked Lt. Garland if the Police Advisory Commission and Human Rights Commission could partner and attend each other’s meetings to share resources and collaborate, Lt. Garland agreed and indicated the PAC’s next meeting is March 2, 2022. 5. Election of 2022 Chair and Vice Chair The commission discussed selecting a chair and vice chair for 2022. Co-chairs was also discussed but the commission bylaws require a chair and vice chair. Commissioner Lawler Turnbull indicated willingness to serve as vice chair. The election was tabled until the March meeting as members were encouraged to consider volunteering to provide leadership for the commission. City council meeting of March 21, 2022 (Item No. 4e ) Page 2 Title: Human rights commission meeting minutes of February 15, 2022 6. Kudos • Chair Mancini gave kudos to Commissioner Barajas for an outstanding swim season, and Commissioner Livdahl for her college admissions progress. • Commissioner Barajas gave kudos to Chair Mancini for being in the running for an open school board seat. • Commissioner Baudhuin gave kudos to Commissioner Olitzky on his marriage in recent months, and to the St. Louis Park high school theater program for their performance in the one act festival. 7. Review of 2021 The commission reviewed the great work they accomplished in 2021. This information will be presented to council during the annual meeting. • George Floyd Memorial Walk • Friends of the Arts Art Walk • Twin Cities Film Fest climate film showing • HRC Award presented to Perspectives • Jim Crow of the North film scree ning and panel in support of Just Deeds • Seeds Feeds event • Fire Dept event and other neighborhood outreach events 8. Human Rights Award Ms. Timpone notified the group that it’s time to start soliciting nominations for the 2022 Human Rights Award recipient. The commission requested to view the form (attached) and will discuss at the next meeting to confirm timelines. 9. Staff Report Ms. Timpone provided the staff report: • The city council had passed a mask mandate and remote meeting requirement, both are scheduled to end at 11:59pm on February 22, 2022. This means the next HRC meeting will most likely be in person. In the future, the staff liaison will send these types of citywide policies under consideration to the HRC for awareness and to gather feedback as needed. • Just Deeds project is going well, with about 75 inquiries from property owners to staff about discharging the racial covenants on their properties. • The city has hired a consultant located in SLP (Racially Conscious Collaborations) to reimagine the work they do surrounding racial equity, inclusion and belonging, which includes a report on recommended staffing structure. Boards and commissions are identified as stakeholders and will be involved in the process in the coming weeks. • The city requires interview panelists to complete a training course and become certified. HRC members are invited to take the course and get certified to serve on future interview panels for city staff if needed. Ms. Timpone will provide the link for training to commissioners. City council meeting of March 21, 2022 (Item No. 4e ) Page 3 Title: Human rights commission meeting minutes of February 15, 2022 10.Chair Report Chair Mancini provided what she thought would be her final update, but since the election has been tabled to March, she has agreed to continue to serve as chair until a successor is identified. Chair Mancini identified four main areas in which she wanted to address during her tenure as chair, and work that could be ongoing: •Communication channels with council to provide support. Would like to invite a council member to be a guest at a future meeting on a routine basis. •Supporting partnerships with other boards/commissions and stakeholders. Would like to connect with the Police Advisory Commission and local businesses. Would also like to have speakers come to future HRC meetings on a rotating basis. •Using technology to improve communication among commissioners. Better onboarding of new commissioners is needed and access to documents and archives is needed. •Creating standing task forces for recruiting/retaining HRC members, maintaining partnerships with others, and doing community outreach activities. Commissioners thanked Chair Mancini for her work on behalf of the commission and noted and appreciated the hard work and effort she put into the role. Commissioner Buchholz noted that the task forces could be a great piece of the commission’s 2022 work plan to streamline work. 11.Bylaws Updates The updating of the commission bylaws was tabled for the time being. Ms. Timpone notified the commission that the new city manager and city clerk were working with council on a systems approach to boards and commissions that that further clarity may be coming in the next few months. Ms. Timpone noted that many of the changes that are suggested to the bylaws are not disallowed currently so that commissioners are not prevented from doing these things (for example: outgoing chair assisting with transition for new chair). 12.Book Club Update Ms. Timpone notified the commission that about 100 copies of the book Our Stores Carried Us Here: A Graphic Novel Anthology were delivered to the SLP library and are ready to be distributed. Chair Mancini and Commissioner Chismar will meet with Ms. Timpone to plan roll out of the community book club event which will include marketing and discussion questions. 13.Other business The next meeting is March 15, 2022. The regular April meeting occurs during Passover so Ms. Timpone will reach out to commissioners to find an alternate date. 14.The commission adjourned at 8:34 pm. ______________________________________ Ali Timpone , liaison Crimes Motivated by Bias Presentation to the Human Rights Commission Tues., 2-15-22 | 7pm Lt. Mikael Garland City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 4 What is a Crime Motivated by Bias? •“Hate crimes” •Motivation is key •Committed against others because of the victim’s actual or perceived race, religion, sex, characteristics identified as sexual orientation, disability, age, or national origin City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 5 What types are included? •Assaults •Criminal damage to property/vandalism •Harassment •Stalking crimes City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 6 How are they different from other crimes? •More severe penalty •Same act •No bias motivation… •5th Degree Assault (Misd) •$1,000 fine and/or 90 days in jail •Add bias motivation… •4th Degree Assault (GM) •$3,000 fine and/or 1 year in jail City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 7 Specific bias crimes in MN •GM 4th Degr. Assault •Assault on another person motivated by bias •Felony 4th Degr. Assault •Assault on another person motivated by bias •Within five years of a previous conviction for same •GM 3rd Degr. / Felony 2nd Degr. Criminal Dmg. To Property •Cause intentional damage to another person’s property because of bias •Felony Aggravated Violations •Harassment and Stalking •Reasonable victim feels oppressed, persecuted, intimidated City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 8 Specific bias crimes in MN (Cont.) •Felony Aggravated Violations– Harassment and Stalking •Reasonable victim feels oppressed, persecuted, intimidated •directly or indirectly, or through third parties, manifests a purpose or intent to injure the person, property, or rights of another by the commission of an unlawful act •follows, monitors, or pursues another, whether in person or through any available technological or other means •returns to the property of another if the actor is without claim of right to the property or consent of one with authority to consent; •repeatedly makes telephone calls, sends text messages, or induces a victim to make telephone calls to the actor, whether or not conversation ensues; •makes or causes the telephone of another repeatedly or continuously to ring; •repeatedly mails or delivers or causes the delivery by any means, including electronically, of letters, telegrams, messages, packages, through assistive devices for people with vision impairments or hearing loss, or any communication made through any available technologies or other objects; •uses another's personal information, without consent, to invite, encourage, or solicit a third party to engage in a sexual act with the person. City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 9 Who investigates them? •Most are investigated by local police agencies •Or Sheriff’s Office if occurring outside municipal/incorporated areas •Prosecuted by county or city attorney •Depends on severity •Misdemeanors and Gross Misdemeanors– City Atty •Felonies– County Atty •More than one year in jail or $3,000 fine City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 10 Our Policy 318 | Hate or Bias Crimes •The St. Louis Park Police Department recognizes and places a highpriority on the rights of all individuals guaranteed under theconstitution and the laws of this state. When such rights are infringedupon by violence, threats or other harassment, this department willutilize all available resources to see that justice is served under thelaw. •318.3: Preventing and Preparing for Likely Hate or Bias Crimes •318.4 Procedure for Investigating Hate or Bias Crimes •Reporting: To Minn. Dept. of Public Safety and Federal via NIBRS City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 11 Bias Crime Reports in SLP 0 5 10 15 20 25 30 2015 2016 2017 2018 2019 2020 2021 City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 12 Minnesota Hate Crimes 2020 City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 13 Minnesota Hate Crimes 2018-20 City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 14 What should victims do? •Report crime immediately to the St. Louis Park Police, 952-924-2618, or use 9-1-1 for emergencies •Give detail on facts/observations that show the offender was motivated to act by bias •Give info on witnesses’ identities City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 15 Questions? Thank you. -Lt. Mikael Garland, 952-924-2607 | mgarland@stlouispark.org City council meeting of March 21, 2022 (Item No. 4e) Title: Human rights commission meeting minutes of February 15, 2022 Page 16 St. Louis Park Human Rights Award guidelines-2022 Goal The Human Rights Award recognizes individuals, groups, organizations or businesses that have made an outstanding contribution toward uplifting human rights, justice, equity and inclusion in the community. This award also seeks out those who have fostered increased understanding and cooperation between people of different backgrounds in St. Louis Park. Mission of human rights commission The mission of the human rights commission (HRC) is to support community and St. Louis Park’s strategic priority of racial equity and inclusion. Vision of HRC We believe that a just and inclusive community is achievable in St. Louis Park. Eligibility 1.The nominee’s activities have advanced human rights, justice and/or race equity within St. Louis Park. 2.The nominee’s activities have helped to improve understanding and cooperation in the areas of race, religion, gender identity, national origin, marital status, disability, age, sexual orientation or family status. 3.The nominee’s services may be either voluntary or part of an employee’s job. 4.Members of the St. Louis Park Human Rights Commission are not eligible for the award while serving on the commission. 5.The nominee doesn’t need to live in St. Louis Park as long as the nominee’s activities were a benefit to the St. Louis Park community or undertaken in the City of St. Louis Park. Businesses or organizations must conduct business or provide service in St. Louis Park. 6.Contributed positively to increasing equity surrounding virtual access. 7.The commission seeks submission that align with the HRC’s updated mission and vision statement. Nomination process Nominations may be submitted by either an individual or an organization (e.g., a club, social agency, unit of government, church or synagogue, school, business). Nominations are preferred using the nomination form, but may be submitted as letters, no more than two pages in length. The form is available online at https://www.stlouispark.org/government/boards-commissions/human-rights- commission. Mailed nominations should be addressed to: St. Louis Park Human Rights Commission Attn: Ali Timpone 5005 Minnetonka Blvd. St. Louis Park, MN 55416 Or by email: atimpone@stlouispark.org Nominations are accepted anytime until March 25, 2022. The individual/organization submitting the nomination must designate a contact person and phone number. Page 17 City council meeting of March 21, 2022 (Item No. 4e ) Title: Human rights commission meeting minutes of February 15, 2022 Human Rights Award guidelines | 2 Selection The recipient(s) will be selected by the St. Louis Park Human Rights Commission in 2022. The commission will give added weight to activities that: 1.Have positively impacted St. Louis Park 2.Occurred over an extended period of time 3.Took place in 2021 4.Have had a significant impact on an affected group 5.Are voluntary or above-and-beyond a paid employee’s usual job responsibilities The award will be presented at a city council meeting in 2022. Questions Contact human rights commission staff liaison Ali Timpone at atimpone@stlouispark.org or 952.928.2846. Page 18 City council meeting of March 21, 2022 (Item No. 4e ) Title: Human rights commission meeting minutes of February 15, 2022 Human Rights Commission 2022 Nomination Form St. Louis Park Human Rights Award Person or Organization Nominated: Nominated By: Name: Name: Address: Address: City/State/Zip: City/State/Zip: Organizational Affiliation: Organizational Affiliation: Day Phone: Day Phone: Evening Phone: Evening Phone: Email: Email: Please answer the following questions about the nominee. If you need additional space, attach separate pages. In your answers, please focus on the impact on St. Louis Park. 1.Describe how the nominee’s activities have contribute in uplifting human rights, justice, equity and inclusion in the community? Over  Page 19 City council meeting of March 21, 2022 (Item No. 4e ) Title: Human rights commission meeting minutes of February 15, 2022 2.When and where did the contributions take place? Is the activity or program ongoing? Please describe: 3. Who was the principal beneficiary of the nominee’s efforts? 4.Please provide other information about the nominee that will help the Commission make a decision: 5.Please list any other people, along with their phone numbers, who would support this nomination: Please complete form online or send completed form to: St. Louis Park Human Rights Commission, Attn: Ali Timpone 5005 Minnetonka Blvd. St. Louis Park, MN 55416 or submit via email: atimpone@stlouispark.org by March 25, 2022 Page 20 City council meeting of March 21, 2022 (Item No. 4e ) Title: Human rights commission meeting minutes of February 15, 2022 Meeting: City council Meeting date: March 21, 2022 Public hearing: 6a Executive summary Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District (Ward 4) Recommended action: Mayor to open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the 9920 Wayzata Boulevard Tax Increment Financing District (a housing district). (The EDA will have considered establishment of the 9920 Wayzata Boulevard TIF District and the related Purchase Redevelopment Contract earlier in the evening.) Policy consideration: Does the city council wish to support the establishment of a housing tax increment financing district to facilitate construction the proposed 9920 Wayzata Boule vard development? Summary: A staff report regarding Bigos -9920 Wayzata, LLC’s (an affiliate of Bigos Management and Bill Stoddard “Redeveloper”) application for tax increment financing (TIF) assistance in connection with the proposed 9920 Wayzata Boulevard development was provided at the January 10, 2022 study session. As stated in the report, constructing the 233-unit all mixed- income multifamily housing development is not financially feasible but for the use of the proposed tax increment assistance. Given subsequent EDA consensus support, the proposed financial assistance was advanced for formal approval. It is now time to take the final steps in the TIF process which is to formally authorize the establishment of the housing TIF district and approve the related Purchase and Redevelopment Contract. Such authorizations enable the EDA to designate tax increment generated from the 9920 Wayz ata Boulevard development as partial reimbursement for certain qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the 9920 Wayzata Boulevard TIF District does not, in itself, commit the city to any specific level of financial assistance for the proposed development. Procedurally, it simply creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment Costs. The terms and amount of TIF assistance are specified within the Redevelopment Contract with Bigos -9920 Wayzata LLC which is also scheduled for consideration by the EDA March 21, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Resolution – TIF District TIF District Overview (provided in the related EDA st aff report) Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development coordinator Michele Schnitker, housing manager/deputy community development director Approved by: Cindy Walsh, deputy city manager/ope rations and recreation director City council meeting of March 21, 2022 (Item No. 6a) Page 2 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District Discussion Background: Bigos Management intends to acquire land at the northwest quadrant of I-394 and US 169. This includes two vacant parcels located at 9808 and 9920 Wayzata Boulevard, as well as adjacent right -of-way owned by the EDA. Bigos’ plans for the 3.1-acre redevelopment site call for the removal of three billboards and construction of a six-story, 233-unit multifamily housing development tentatively named 9920 Wayzata Boulevard. Bigos Management would then own and manage the new apartment building for the long term. The proposed $68.7 million development includes a mix of alcove, one -, two-, and three- bedroom units. The proposed apartment building would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI) for 25 years , exceeding the city's Inclusionary Housing Policy requirements. Redeveloper’s request for public financing assistance and TIF application review: The subject site is former lakebed and, as a result, has unstable structural soils. Any building constructed on the site beyond a single story would likely require extensive foundation work. A developer looking to construct a multi-story building on the site would likely incur such extraordinary costs as: soil excavation, export and import; and structural piling. Depending on the project’s density, these costs would likely pre vent any multistory development from achieving financial feasibility without assistance. The Redeveloper previously indicated that 9920 Wayzata Boulevard’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. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. After review, Ehlers determined that up to $6.3 million in TIF assistance is warranted to enable the project to proceed. Such assistance would be provided via a pay-as- you-go TIF Note and would derive from the establishment of a new housing TIF district. The EDA/city council received a staff report detailing the Redeveloper’s TIF Application at the January 10, 2022 study session along with the recommendation for the level of assistance for which there was consensus support. Decertification of the Wayzata Boulevard Tax Increment Financing District: In March 2016, the EDA established the Wayzata Boulevard Tax Increment Financing District (a redevelopment district) to incent redevelopment of the subject site given its blighted conditions. The TIF District encompassed the same two parcels (9808 and 9920 Wayzata Boulevard) but not the EDA right of way parcels. Given that qualified redevelopment activity has not occurred within that district within the statutorily required time period, this district can no longer be utilized for the proposed 9920 Wayzata development. Additionally, the site no longer qualifies as a new redevelopment TIF district because the substandard structures previously occupying the property have been removed. Therefore, a new type of TIF district needs to be established to facilitate the proposed 9920 Wayzata development. Before establishing the proposed 9920 Wayzata Boulevard TIF District the EDA will need to formally decertify the Wayzata Blvd TIF City council meeting of March 21, 2022 (Item No. 6a) Page 3 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District District. This can occur concurrently with the establishment of the new proposed housing TIF district. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed 9920 Wayzata Boulevard TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger 9920 Wayzata Boulevard TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s clas sification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms of the financial assistance are contained in the separate Purchase and Redevelopment Contract between the parties. Both the TIF Plan and the Purchase and Redevelopment Contract need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed 9920 Wayzata Boulevard TIF District: In order to provide the Redeveloper with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the 9920 Wayzata Boulevard redevelopment site and the proposed 9920 Wayzata Boulevard TIF District are located within the city, the proposed 9920 Wayzata Boulevard TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed 9920 Wayzata Boulevard TIF District is shown in the map below. City council meeting of March 21, 2022 (Item No. 6a) Page 4 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District Location of proposed 9920 Wayzata Boulevard TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the subject redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following two parcels and adjacent roads and internal rights of-way: •9920 Wayzata Boulevard •9808 Wayzata Boulevard City council meeting of March 21, 2022 (Item No. 6a) Page 5 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District Subject properties within proposed housing TIF district Qualifications of the proposed TIF district: Golden Valley -based Bigos Management intends to acquire land at the northwest quadrant of I-394 and US 169. This inclu des two vacant parcels located at 9808 and 9920 Wayzata Boulevard, as well as adjacent right -of -way owned by the EDA. Bigos’ plans for the 3.1-acre redevelopment site call for the removal of three billboards and construction of a six-story, 233-unit multif amily housing development tentatively named 9920 Wayzata Boulevard . Bigos Management would then own and manage the new apartment building for the long term. The proposed 233-unit apartment development would be mixed income with 186 units (80 percent) leasable at market rate and 47 units (20 percent) affordable to households at 50 percent of area median income (AMI). The proposed amount of affordable housing exceeds the city’s inclusionary housing requirements. To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 47 housing units (20 percent) affordable to households at or City council meeting of March 21, 2022 (Item No. 6a) Page 6 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District below 50 percent of AMI, the proposed 9920 Wayzata Boulevard development qualifies under the statute as a housing TIF district. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On October 18, 2021, the city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from O-Office to RH - high density residential. The Metropolitan Council subsequently approved that amendment on February 23, 2022. The density of the proposed 9920 Wayzata Boulevard redevelopment meets the requirements for RH – high density residential land use. On March 16, 2022, the planning commission approved a resolution of approval finding the proposed 9920 Wayzata Boulevard TIF District Plan and sale of EDA -owned properties conform to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. The EDA and city have the option to decertify the district prior to the legally required date. The city’s expressed obligations to the Redeveloper, per the terms of the Redevelopment Contract, are estimated to be satisfied in approximately 14.5 years. Once those obligations are satisfied , the city may terminate the district or elect to retain it to assist other affordable housing projects and programs into the future. In the past, city council has elected to use pooled tax increment collected from housing TIF districts to help fund other affordable housing developments and programs throughout the city. Tax increment generated from Housing TIF districts have been used to help fund the Affordable Housing Trust Fund, HIA Programs, Affordable Homeownership Land Trust Program, 1st Time Homebuye r program, wealth building homeownership programs for underserved communities, and some home energy rebates. Property value and taxes: The current combined assessed market value of the two parcels constituting the subject redevelopment site is just over $3.26 million. This is the proposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $68.7 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the Redeveloper until it is paid off (14.5 years). The city, county and school district would continue to receive the property taxes collected on the subject site’s Base Value. City council meeting of March 21, 2022 (Item No. 6a) Page 7 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District TIF district budget: The 9920 Wayzata Boulevard TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the Redeveloper for qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the 9920 Wayzata Boulevard development. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and not the actual expected project budget. Recommendation: The EDA’s financial consultant, Ehlers, prepared the 9920 Wayzata Boulevard TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the decertification of the Wayzata Boulevard TIF District, e stablishment the 9920 Wayzata Boulevard Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The purchase and redevelopment contract between the EDA and Bigos -9920 Wayzata, LLC which specifies the terms, conditions and amount of TIF assistance related to the proposed 9920 Wayzata Boulevard project is also scheduled for consideration by the EDA on March 21, 2022. Additionally, that same evening, the city council will be asked to hold a public hearing regarding the establishment of the proposed TIF district. City council meeting of March 21, 2022 (Item No. 6a) Page 8 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District Resolution No. 22-___ Resolution approving a modification to the development program for Redevelopment Project No. 1, the establishment of the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development) and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have adopted a Development Program (the “Development Program”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1081, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Development Program for the Project (the “Program Modification”) and a tax increment financing plan (the “TIF Plan”) for the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development) (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the City Council of the City (the “City Council”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Program Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were pre sented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the County Auditor of the County at least 30 days prior to the date hereof; and Whereas, on the date hereof, the Board of Commissioners of the Authority (the “Board”) approved the Program Modification and the TIF Plan for the TIF District; and Whereas, the City Council has reviewed the contents of the Program Modification and TIF Plan and on this date conducted a duly noticed public hearing on these documents, at which the views of all interested parties were heard; and Now, therefore, be it resolved by the City Council of the City of St. Louis Park , Minnesota as follows: Section 1. Findings for the program modification for the project. (a)The boundaries of the Project are not being expanded and the Development Program is not being modified other than to incorporate the establishment of the TIF District therein and therefore the City Council reaffirms the f indings and determinations originally City council meeting of March 21, 2022 (Item No. 6a) Page 9 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District made in connection with the establishment of the Project area and the adoption of the Development Program therefor. The purposes and development activities set forth in the Development Program, as modified, are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. (b) It is hereby found and determined that within the Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (c) It is further specifically found and determined that (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Program Modification; (ii) the Program Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Program Modification conforms to the general plan for the development of the City as a whole. Section 2. Findings for the establishment of the TIF district. (a) It is found and determined that it is necessary and desirable for the sound and orderly development of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Project. (b) It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. (c) The proposed development to be financed in part through tax increment financing are necessary to permit the City to realize the full potential of the the Project in terms of housing density, increased housing options in the City, and increased tax base. (d) The TIF Plan conforms to the general plan for development of the City as a whole and will generally serve to implement policies adopted in the City’s comprehensive plan, as the development contemplated in the TIF Plan has gone through extensive planning and zoning approvals and a Planned Unit Development for the development has been approved. (e) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Project by private enterprise because it will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City, result in additional availability of affordable housing units, eliminate and prevent, blight and blighting factors within the Project and City, and help develop an underutilized site in the City. (f) The TIF District is a housing district under Section 469.174, subdivision 11 of the TIF Act. City council meeting of March 21, 2022 (Item No. 6a) Page 10 Title: Public Hearing – Establishment of the 9920 Wayzata Blvd. Tax Increment Financing District (g) Background information and facts supporting all the above findings are set forth in the TIF Plan, including but not limited to Appendix C, and the TIF Plan and all findings set forth therein are incorporated herein by reference. In reaching its conclusions regarding the TIF Plan, the City Council has also relied upon reports and recommendations of its staff and consultants, information submitted by the developer of the proposed development within the TIF District, as well as the knowledge of members of the City Council gained in hearings upon and during consideration of other matters relating to the proposed development. (h) The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. Section 2. Public purpose . The adoption of the TIF Plan conforms in all respects to the requirements of the Act. The TIF Plan will help facilitate development that will create diverse housing opportunities and increase the number and availability of affordable housing units in the City, eliminate blighting factors and underutilized land in the City, and improve the tax base. The City expressly finds that the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 3. Approvals; further proceedings. (a) The TIF Plan for the TIF District and the Program Modification are hereby approved and adopted in substantially the form on file at City Hall. (b) The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the County Auditor and to file a copy of TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. (c) The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and the Program Modification and to negotiate, draft, prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Reviewed for administration: Adopted by the City Council March 21, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: March 21, 2022 Action agenda item: 8a Executive summary Title: Resolution related to boundaries and polling locations for the 2022 election cycle Recommended action: Motion to adopt Resolution confirming ward boundaries, establishing precinct boundaries, and d esignating p olling lo cations for the 2022 election cycle. Policy consideration: Do the proposed ward and precinct boundaries and designate d polling locations meet the requirements of state statute, city charter, and city code? Summary: At the sp ecial study session on Feb. 22, 2022, the city council reviewed the proposed redistricting plan, including a map detailing ward and precinct boundaries. Population s tatistics from the 2020 census were used to create this map. No ward boundary changes are proposed because the data from the decennial census showed that the ward populations are currently balanced within an acceptable threshold. The data also showed that the populations between precincts differed significantly. To more evenly balance precinct populations, elections and GIS staff used the census data to redraw the map so that the population in any precinct was within 10% of any o th er, to the e xtent possible and without unnecessarily dividing census blocks. The propose d boundaries comply with the new legislative districts map. Only one precinct boundary was changed since the previous discussion, in Precinct 8, where an additional census block was added to avoid dividing property lines. Elections staff also consid ered additional factors once wards and precincts were balanced for population. These factors were outlined in the staff report f rom Feb. 22, 2022, link ed b elow , and ultimately contribute d to the recommendation to reduce the total number of precincts from 16 to 12. Following d iscussion, the council expressed support of the proposed ward and precinct map. This proposal was shared with the public with an opportunity to learn how the proposed changes would impact them via an interactive map and to provide feedback via a survey. A postcard was mailed to all residential addresses in the city, information was also shared through GovDelivery, NextDoor, weekly social media posts, on the city website, and a direct message to approximately 750 election workers. Survey feedback and comments received are attached. State law requires the city to approve ward and precinct boundaries by March 29, 2022. Once adopted, the boundaries will take effect for the Aug. 9, 2022 State Primary election. All v ot ers affected by a change will be mailed notice in June. Elections staff also requeste d that the county send a second notice prior to the general election in November. Financial or budget considerations: Budgeted funds were used to purchase redistricting software f rom ArcGIS, printing and postage for the survey postcards, and postage for the mailed notices from Hennepin County. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion; Resolution; Proposed ward and precinct map; Survey feedback and comments; Feb. 22, 2022 special study session staff report Prepared by: Michael Sund, election s p ecialist Reviewed by: Melissa Kennedy, city clerk Approve d by: Cindy Walsh, deputy city manager/operations and recreation director City council meeting of March 21, 2022 (Item No. 8a) Page 2 Title: Resolution related to boundaries and polling locations for the 2022 election cycle Discussion What is redistricting? •Redistricting is the process of redrawing boundaries of election districts to ensure that the people of each district are equally represented. •The process of redistricting begins when the city receives population data from the U.S. Census bureau (census) that breaks down populations by age and race. What is the redistricting authority of the city council? •The city charter requires the council to redetermine ward boundaries after each decennial census of the United States; and that the four ward boundaries shall be adopted based on findings of the council that the wards are of as near equal size in both population and area as practicable. •State statute also requires cities to establish precinct boundaries and declare polling places. This is done by resolution. Statute does not specifically require that populations within a precinct be nearly equal in size and instead references a standard of reasonableness, which in essence means cities should also consider if they are able to adequately serve the voting population in a precinct. •The city council has no authority over state, county, or school district boundaries. What is the city’s current population? •According to the 2020 census, the city’s population is 50,010. What legal and technical guidelines did staff use when evaluating the impact of the 2020 census data on the current ward and precinct boundaries and creating the proposed boundaries? •Precinct boundaries must conform to state legislative and congressional boundaries. •The state and county recommended that cities apply a standard deviation for population distribution between wards of 5%. •When evaluating a standard of reasonableness and considering the city’s ability to effectively serve voters within a precinct, a standard deviation threshold of 10% was used as a guideline for population distribution between precincts. •The smallest area that the census uses to count is a block. These blocks are of varying geographic shapes and do not necessarily conform to street blocks. For this reason, when adjusting ward and precinct boundaries to balance populations, many districts may appear to be possible when in fact they would divide the smallest unit that can be used to determine precincts. While it is possible to divide census blocks, GIS experts strongly recommend against this practice as it becomes impractical to make population estimates in those regions and can lead to invalid boundaries. Did city staff draw the proposed map by hand? •No, staff used ArcGIS software to draw the proposed map using data from the 2020 census. This allows for greater accuracy and precision in drawing boundaries and balancing populations. Did the recent legislative boundary changes impact the city’s proposed map? •On February 15, 2022, a panel of judges released an order related to a group of lawsuits regarding proposed legislative maps. This order contained a new map which the city must use as the legislative boundary for state redistricting. The changes result in the populations City council meeting of March 21, 2022 (Item No. 8a) Page 3 Title: Resolution related to boundaries and polling locations for the 2022 election cycle of the precincts in Ward 2 being outside the proposed threshold. However, rather than drawing the map to balance populations further, which would require significant alterations to ward boundaries, elections staff, in consultation with Hennepin County, determined that precincts may deviate greater than the proposed threshold so long as the difference is not significant or likely to affect voter service. This boundary changes the population totals in precincts 4 and 5. Given the facility designated as the polling location for the new precinct 4 (Rec Center) and based on the voting behavior of this population, staff feels that the change will not negatively impact voter service and the city will be able to effectively staff and administer succe ssful elections under these circumstances. What was the process used to analyze and develop the proposed adjustments to the city’s precinct boundaries? •Precincts determine the polling location that voters use on Election Day and are used to make up many other political districts , including wards and state legislative districts. Although the process of redistricting itself is based on census data, elections staff engaged in a deeper analysis that incorporated factors beyond deviation in mean population when considering configuration of local precincts . Elections staff utilized the census data and the application of other known data (quantitative and qualitative) related to voting statistics, trends, and service considerations to understand and evaluate the implications of changing precinct boundaries. They also used it to determine the best outcome that most closely meets the ten percent population deviation guideline and what would allow for the city to continue to provide service to voters at expected standards. What are polling places? •The polling place is the location voters come to cast their ballots on Election Day. Every precinct must have a designate d polling place that is either located within the precinct or within one mile of a precinct boundary. What are the requirements for polling places? •Federal and state laws detail requirements for polling places. All polling places must be: o Fully accessible ; o Large enough to accommodate election activities; o Free of other, non-election activities ; o Smoking free ; o Liquor free and not adjacent to a liquor service area; o Located within the precinct or within one -mile of a precinct boundary •Federal and state laws re quire that all polling places be fully accessible and usable by elderly or disabled persons. o Paved parking with wide spaces reserved for disabled persons; o Curb cuts or temporary ramps; o Paved main routes free of stairs or with ramp or elevator bypasses; o Entrances/doorways a minimum of 32 inches wide; o Walkways and hallways at least 36 inches wide; o Hallways free of protrusions overhanging the floor; o Handrails on all stairs; o Signs directing voters around obstructed entrances or stairs to accessible routes; City council meeting of March 21, 2022 (Item No. 8a) Page 4 Title: Resolution related to boundaries and polling locations for the 2022 election cycle o Signs outlining the assistance available to voters, and o One or more wheelchair accessible voting booth(s) or station(s) with writing surface 34 inches high. Elections staff routinely visit polling locations to verify that designated locations are accessible and work closely with each facility on setup and signage. When evaluating polling locations, staff must consider all the requirements outlined above and the availability of the facility. Aside from public school facilities, the city cannot require any facility to serve as a polling location. Additional considerations are given to security of the facility, co -occurring uses, availability of parking, disruption to surrounding neighborhoods (traffic, parking), and voter convenience. To the extent possible , elections staff selects locations that limit the distance a person would have to travel to vote on Election Day. Elections staff also publishes transit options (by vehicle, by public transit, by bike) to each polling place on the city website. Will the proposed changes impact where a person goes if they want to vote early? •No, the proposed changes and designated polling places relate to where a person would vote on Election Day. Early votin g services will continue to be available at city hall. These services are for all eligible St. Louis Park voters. City council meeting of March 21, 2022 (Item No. 8a) Page 5 Title: Resolution related to boundaries and polling locations for the 2022 election cycle Resolution No. 22-____ Resolution confirming ward boundaries, establishing precinct boundaries, and designating polling locations Be it resolved by the city council of the City of St. Louis Park, Minnesota, that the ward boundaries previously adopted meet all statutory and local requirements and are of as near equal size in both population and area as practicable. Ward No. 1 is described as follows: Beginning at the intersection of Louisiana Ave. S. and the Burlington Northern Railroad tracks, south along Louisiana Ave. S. to Minnetonka Boulevard, east along Minnetonka Boulevard to the Soo Line Railroad tracks, south along the Soo Line Railroad tracks to State Hwy. 7, north/east along State Hwy. 7 to State Hwy. 100, south along State Hwy. 100 to the Southwest Transit Corridor tracks, north/east along the Southwe st Transit Corridor tracks to the eastern city limit, north along the eastern city limit to the Burlington Northern Railroad tracks, south/west along the Burlington Northern Railroad tracks to the point of beginning. Ward No. 2 is described as follows: Beginning at the intersection of State Hwy. 7 and the southern city limit, following south and east along the southern city limit to the eastern city limit, north along the eastern city limit the Southwest Transit Corridor tracks, south/west along the Southwe st Transit Corridor tracks to State Hwy. 100, north along State Hwy. 100 to State Hwy. 7, south/west along State Hwy. 7 to the point of beginning. Ward No. 3 is described as follows: Beginning at the intersection of the Burlington Northern Railroad tracks and the western city limit, south along the western city limit to the southern city limit, east along the southern city limit to State Hwy. 7, east along State Hwy. 7 to the Soo Line Railroad tracks, north along the Soo Line Railroad tracks to Minnetonka Boulevard, west along Minnetonka Boulevard to Louisiana Ave. S., north along Louisiana Ave. S. to the Burlington Northern Railroad tracks, south/west along the Burlington Northern Railroad tracks to the point of beginning. Ward No. 4 is described as follows: Beginning at the intersection of the northern and western city limits, south along the western city limit to the Burlington Northern Railroad tracks, east along the Burlington Northern Railroad tracks to the eastern city limit, north along the easte rn city limit to the northern city limit, west/north along the northern city limit to the point of beginning. Be it further resolved by the city council of the City of St. Louis Park, Minnesota, that the precinct boundaries and polling locations for the City of St. Louis Park are hereby amended and established as follows: City council meeting of March 21, 2022 (Item No. 8a) Page 6 Title: Resolution related to boundaries and polling locations for the 2022 election cycle WARD ONE Precinct 1 – Beth El Synagogue , 5225 Barry St. W. Beginning at the intersection of State Highway 100 and the Burlington Northern Railroad tracks, south along State Highway 100 to Minnetonka Boulevard, east along Minnetonka Boulevard to the eastern city limit, north along eastern city limit to the Burlington Northern Railroad tracks, south/west along the Burlington Northern Railroad tracks to the point of beginning. Precinct 2 – Wat Thai of Minnesota, 2544 Hwy. 100 S. Beginning at the intersection of Louisiana Ave. S. and the Burlington Northern Railroad tracks, south along Louisiana Ave. S. to Minnetonka Boulevard, east along Minnetonka Boulevard to State Highway 100, north along State Highway 100 to the Burlington Northern Railroad tracks, south/west along the Burlington Northern Railroad tracks to the point of beginning. Precinct 3 – St. Louis Park City Hall, 5005 Minnetonka Blvd. Beginning at the intersection of the Soo Line Railroad tracks and Minnetonka Blvd, south along the railroad tracks to State Highway 7, north/east along State Highway 7 to State Highway 100, south along State Highway 100 to the Southwest Transit Corridor railroad tracks, north/east along the Southwest Transit Corridor railroad tracks to the eastern city limit, north along the eastern city limit to Minnetonka Boulevard, west along Minnetonka Boulevard to the point of beginning. W ARD TWO Precinct 4 – St. Louis Park Rec Center, 3700 Monterey Dr. Beginning at the intersection of State Highway 100 and the Southwest Transit Corridor railroad tracks, south along State Highway 100 to Excelsior Boulevard, north/east along Excelsior Boulevard to Quentin Ave. S., south along Quentin Ave. S. to 40th St. W., east along 40th St. W. to the eastern city limit, north along the eastern city limit to the Southwest Transit Corridor railroad tracks, west along the Southwest Transit Corridor railroad tracks to the point of beginning. Precinct 5 – Vista Lutheran Church, 4003 Wooddale Ave. S. Beginning at the intersection of Excelsior Boulevard and the western city limit, south along the western city limit to the southern city limit, east along the southern city limit to State Highway 100, south to the southern city limit, east along the southern city limit to the eastern city limit, north along the eastern city limit to 40th St. W., west along 40th St. W. to Quentin Ave. S., north along Quentin Ave. S. to Excelsior Boulevard, south/west along Excelsior Boulevard to the point of beginning. Precinct 6 – St. Louis Park Municipal Service Center, 7305 Oxford St. Beginning at the intersection of the State Highway 7 and the western city limit, south/east along the western city limit to the southern city limit/Excelsior Boulevard, east along the southern city limit/Excelsior Boulevard to State Highway 100, north along State Highway 100 to State Highway 7, south/west along State Highway 7 to the point of beginning. City council meeting of March 21, 2022 (Item No. 8a) Page 7 Title: Resolution related to boundaries and polling locations for the 2022 election cycle WARD THREE Precinct 7 – St. Louis Park Senior High School (Field House), 6425 33rd St. W. Beginning at the intersection of Minnetonka Boulevard and Rhode Island Ave. S., south along Rhode Island Ave. S. to 37th St. W., east along 37th St. W. to Pennsylvania Ave S, south on Pennsylvania Ave. S. to State Highway 7, east along State Highway 7 to the Soo Line Railroad tracks, north along the Soo Line Railroad tracks to Minnetonka Boulevard, west along Minnetonka Boulevard to the point of beginning. Precinct 8 – Aquila Elementary School, 8500 31st St. W. Beginning at the intersection of the western city limit and the Burlington Northern Railroad tracks, south along the western city limit to Minnetonka Boulevard, east along Minnetonka Boulev ard to Aquila Ave. S., south along Aquila Ave. S. to 34th St. W., south/east along 34th St. W. to the North Cedar Lake Regional trail, north along the North Cedar Lake Regional trail to 33rd St. W., east along 33rd St. W. to Rhode Island Ave. S., north along Rhode Island Ave. S. to Minnetonka Boulevard, east along Minnetonka Boulevard to Louisiana Ave. S., north along Louisiana Ave. S. to the Burlington Northern Railroad tracks, south/west along the Burlington Northern Railroad tracks to the point of beginning. Precinct 9 – Lenox Community Center, 6715 Minnetonka Blvd. Beginning at the intersection of the western city limit and Minnetonka Boulevard, south along the western city limit to the southern city limit, east along the southern city limit/State Highway 7 to Pennsylvania Ave. S., north along Pennsylvania Ave. S. to 37th St. W., west along 37th St. W. to Rhode Island Ave. S., north along Rhode Island Ave. S. to 33rd St. W., west along 33rd St. W. to the North Cedar Lake Regional trail, south/west along the North Cedar Lake Regional trail to 34th St. W., north/west along 34th St. W. to Aquila Ave. S., north along Aquila Ave. S. to Minnetonka Boulevard, west along Minnetonka Boulevard to the point of beginning. W ARD FOUR P recinct 10 – St. Louis Park Middle School, 2025 Texas Ave. S. Beginning at the intersection of the northern city limit and Louisiana Ave. S., south along Louisiana Ave. S. to Wayzata Boulevard, north/east along Wayzata Boulevard to Jersey Ave. S., south along Jersey Ave. S. to Cedar Lake Rd, north/east along Cedar Lake Rd. to the Soo Line Railroad tracks, south along the Soo Line Railroad tracks to the Burlington Northern Railroad tracks, east along the Burlington Northern Railroad tracks to the eastern city limit, north along the eastern city limits to the northern city limit, west/north along the northern city limit to the point of beginning. P recinct 11 – Park Harbor Church, 1615 Texas Ave. S. Beginning at the intersection of the northern city limit and Texas Ave. S., south along Texas Ave. S. to Cedar Lake Rd, west along Cedar Lake Rd. to the western city limit, south along the western city limit to the Burlington Northern Railroad tracks, north/east along the Burlington Northern Railroad tracks to the Soo Line Railroad tracks, north along the Soo Line Railroad tracks to Cedar Lake Rd., west along Cedar Lake Rd to Jersey Ave S, north along Jersey Ave. S. to Wayzata Boulevard, south/west along Wayzata Boulevard to Louisiana Ave. S., north along City council meeting of March 21, 2022 (Item No. 8a) Page 8 Title: Resolution related to boundaries and polling locations for the 2022 election cycle Louisiana Ave. S. to the northern city limit, west along the northern city limit to the point of beginning. Precinct 12 – Westwood Lutheran Church, 9001 Cedar Lake Rd. Beginning at the intersection of the northern and western city limits, south along the western city limit to Cedar Lake Rd, east along Cedar Lake Rd. to Texas Ave. S., north along Texas Ave. S. to the northern city limit, west/north along the northern city limit to the point of beginning. Be it further resolved that the precinct boundaries shall be effective for the conduct of the August 9, 2022, election. Reviewed for administration: Adopted by the city council March 21, 2022. Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Ward 4 Ward 3 Ward 1 Ward 2 Precinct 12 Precinct 6 Precinct 5 Precinct 1 Precinct 4 Precinct 10 Precinct 11 Precinct 9 Precinct 2 Precinct 7 Precinct 8 Precinct 3 5 5 7 3 3 5 7 17 100 100 394 100 394 394 169 169 169 25 Proposed Redistricting Proposed Precinct Boundary Ward 1 Ward 2 Ward 3 Ward 4 Date: 3/16/2022 Page 9 City council meeting of March 21, 2022 (Item No. 8a) Title: Resolution related to boundaries and polling locations for the 2022 election cycle Comments 1 No change for me, so no comments. It works. Some of precinct 3 should be with precinct 1. 2 I am curious why the number of precincts is going down. This was not explained on the mailer card. O.S. I couldn't get the QR code to work, but that may be my smart phone. I appreciate the work you are doing here. I would like to add that in the survey I indicated I typically vote in person at my polling place. However, going forward due to issues like covid, aging, and an increased movement to digitizing so much (banking, bill paying, shopping, etc.) I am in full support of continued and/or expanded voting by mail. Also, if it could be accomplished securely, online voting. If we can now present our drivers licenses on our phone....why not? Thanks for doing what you do. I was surprised a few years ago, that my voting place was changed from Peter Hobart School (very close to where I live), to the church on the west side of Hwy #100...which is no longer a distance I can walk. Moving voting location back to Peter Hobart school. The current polling location is in inconvenient , limited parking, cramped and dark inside Phone survey: Likes voting at wat thai, will keep doing so and likes that there is no proposed change 3 No one in the precinct should have to cross Minnetonka Blvd. It will make it difficult for those who wish to walk or bike to the poling location. 4 Appreciate the opportunity to take a survey, lived here since 1968 and never asked opinion before about redistricting. As long as my voting place stays the same, the change is 'okay' with me.... in case I want to vote in person/if alternate ways of voting get rescinded in the future. Call over the phone: Like the rec center, they do a good job! I can vote at The REC/ROC where the outdoor pool is in Wolfe Lake...Leave the districts alone. Large volume of my neighbors are rental apartment dwellers and quite transient. I've lived in my rented apartment for 5 years, and I find that very few of my renting neighbors participate in caucus activity. I suspect they probably don't vote, especially in local elections. I'd appreciate a precinct that includes larger proportion of more permanent households. I suppose that can't work when total populations are considered. Oh, well. looks odd. parts of precint 4 and 5 to the east of MN-100 could be 1 precint. Feels like a lot of apts would be clubbed together under 4 The previous map had the apartments/condos/duplexes grouped together while the new proposal includes much more single family homes south of Excelsior Blvd. Different needs and concerns. This appears to make sense. Thank you. Page 10 City council meeting of March 21, 2022 (Item No. 8a) Title: Resolution related to boundaries and polling locations for the 2022 election cycle 5 Call in survey, taken over the phone: Liked going to aldersgate, is fine with Vista Lutheran do NOT like the busyness of Wooddale Ave near Vista Church... no other OPTIONS? sad... I think this will dissuade some in person voters... I wish Minikahda Vista neighborhood was all within one district. My initial reaction is that as a "southeast of 100 & Excelsior" resident I have more common cause with "northeast of 100 & Excelsior" than I do with southwest. Of course I do not know things like why are there 12 precincts (seems like a lot) or what methods were used / considered for drawing. I might have suggested using one of the algorithms in the literature, rather than by hand... New polling place is on opposite side of Highway 100. It is not easy to walk to this location, as there are limited options for crossing the highway. traffic to and from polling stations i'm completely satisfied with this. 6 Call in: no comment, likes MSC as polling place I have no issue with the map. I just don't want my polling location to change from Union Congregational United Church of Christ. Not a fan of being lumped in with the richies in SE SLP None of these materials really explain the actual implications of this change, aside from physically visiting a different place to vote on Election Day. 7 I usually vote at my polling place early because it is on the way to work. I will probably vote by mail now since voting at the school is more hectic. Please reduce the number of precincts as much as possible. This will reduce equipment costs, the number of staff and volunteers needed for elections, reduce logistics of setup for elections, and most importantly, reduce the number of locations that need to be willing to host the precincts. would it make more sense for the boundary to be Louisana Ave and Hwy 100, and eliminate the proposed Precinct 3 (splitting that between proposed 1, 4, and 6 as well)? 8 Hard to comment as I don't know how these new boundaries were decided upon. I now am in a different precinct than many friends. I'd like to see the criteria used to adjust the boundaries published in the St. Louis Park Sailor. Unfortunately the interactive GIS map does not label the old precincts but it seems to show 16 precincts? Why can't we have more congruency in the precint #s? For example #12 becomes #8 for most in existing #12? Page 11 City council meeting of March 21, 2022 (Item No. 8a) Title: Resolution related to boundaries and polling locations for the 2022 election cycle 9 After having to leave a lifetime of voting at Prince of Peace Lutheran church, and then going to the Sholom building complex; Lenox makes a great place to vote a/o exchange old clothes and play cards, or, watch movies. I understand the challenges and appreciate the detailed report which I read, but the oddity of my address is that I will likely drive by Aquila school (my old polling site and likely precinct 8 site) to get to wherever the precinct 9 site is. Not arguing, just point out the oddities of our corner of the city. Mostly votes by mail, feels good about lenox Phone survey: two comments, one their rating is contingent on wait times on eleciton day, won't know that until it happens. Two, they want to commend election staff and council for considering efficiency in government in making the choice of 12, if it works, it should be good. Polling location should be within the precinct. There looks to be no reason why Aquila Park and School can't be included in the precinct, with the school as the polling place. 10 By combing districts, this change will undoubtedly increase waiting time to vote and could make many consider mail in voting. And voting less on local issues. Call in survey: doesn't feel they can change the result but is fine with these changes Hard to comment when we're not sure what the impact of the change will be for us. If it just means a new polling location then seems fine. I do not like to drive all the way to the SLP middle school from Cedar Trails Condominiums. It is VERY inconvenient. I liked it better when the polling place was at the Sabes JCC. The SLP Middle school is not even close to me. That is one of the reasons why I started voting early at the City Hall. I'm disappointed that our polling location is not within the precinct. But I'm also relieved it will no longer be the inaccessible location at Peace Presbyterian. It is too bad there couldn't be a voting precinct at or near the West End. Our polling location isn't in our precinct. I think this would be problematic for people who have limited access to transportation or who rely on walkable locations to a polling site. Especially for those who live on the far east side of the proposed precinct 10, it may limit their ability to vote in person. The boundaries and my polling place are not a big concern to me. I will vote where I am required to at every election I am able to participate in the voting process. 11 Appears to be something of a gerrymander As long as there's excellent communication so everyone knows where they need to go, where our precincts are isn't a big deal. It's easy to get around in St. Louis Park. Call in over the phone: No comment, happy polling place is closer. I am hoping that my polling place will change to be Westwood church....it is literally in my backyard, but not where I get to vote. My polling place did not change, therefore I am ok with the changes. They should have left it the same. This is the worst-drawn precinct on the entire map. It is made up of areas from 4(!) of the existing precincts. It seems like they sacrificed any sense of unity in P11 to balance 10 and 12. Page 12 City council meeting of March 21, 2022 (Item No. 8a) Title: Resolution related to boundaries and polling locations for the 2022 election cycle 12 Call in survey: happy to be back at westwood, no comment. Going forward, I will likely vote early by mail more often. I am fine with this proposal. Having the polling station just down the road from us is nice. In the past, there was a little confusion at first with which polling station to use; SLP middle school or the church down the road from it. Hopefully other precincts have just as clear and easy to stations to go to as we do now. There are fewer polling places for people who vote on election day. Why not have our polling place at the Nature Center, versus on a busy street? Election Judge Comments Melissa, Thank you for doing such a bang-up job with this process. Among all the explanations and surveys I can see your steady hand at the helm, guiding the process to a graceful landing. Kudos to you and the staff for doing such a thorough and transparent job of getting the redistricting done! Todd Hi Michael and Melissa, As voting habits evolve, reducing to 3 precincts per ward is a wise move. I served the old Precinct 4 for the last few years as Judge, Co-Chair and Chair. Merging it with Precinct 3 is clearly the right way to go. It's a shame to break up the team we had there, but that's a small price to pay for a common-sense change. I presume the new Precinct 3 will vote at City Hall. That too makes perfect sense. The good ol' Community Center is not an ideal room or access, and would be even more tucked away in the far corner than it has been. You are a great model for how to run elections fairly, efficiently and pleasantly. It's been a pleasure to work with you for our fellow-citizens. Peace, and Best Wishes for 2022, Paul Page 13 City council meeting of March 21, 2022 (Item No. 8a) Title: Resolution related to boundaries and polling locations for the 2022 election cycle Meeting: City council Meeting date: March 21, 2022 Action agenda item: 8 b Executive summary Title: Resolution accepting city manager’s six -month evaluation and adjusting compensation Recommended action: Motion to adopt Resolution for acceptance of the city manager’s six - month performance evaluation and adjusting compensation effective Feb. 16, 2022. Policy consideration: Does council wish to formally accept the performance evaluation and adjust the compensation of the city manager? Summary: On Monday, March 7, 2022, the council met in a closed executive session to evaluate the city manager’s performance after her first six months of service . Consultant J. Forrest of Employee Strategies, Inc., facilitated the evaluation discussion. The mayor will provide the following summary of the evaluation results, which include an overall above average performance rating for City Manager Kim Keller: • Kim has quickly and effectively transitioned into her role as city manager. • Kim is routinely praised for her systems thinking and “people-first” leadership style . • Collaboration was identified as an exceptionally high strength for Kim, evidenced by her efforts to build relationships and consult diverse stakeholders. • Kim has established a strong foundation of trust with direct reports and council. • Kim is encouraged to progress to the next phase of leadership by taking more swift independent actions. • There is an opportunity to balance the natural tension between the city’s strategic priorities and delegate effectively in order to achieve urgent and important outcomes. • Council unanimously reported that they made the right hiring decision and reaffirmed their support for Kim Keller as city manager. Based on the performance evaluation results, council has also directed staff to prepare a resolution adjusting the compensation for the city manager consistent with the approved compensation plan as it applies to other non-union employees, which provides for a 5% increase in compensation upon completion of six months of service with above average performance. Financial or budget considerations: Salary increases are included in the 2022 general budget. Strategic priority consideration: Not applicable. Supporting documents: Discussion Resolution Prepared by: Ali Timpone, HR director Approved by: Cindy Walsh, deputy city manager/operations and recreation director City council meeting of March 21, 2022 (Item No. 8b ) Page 2 Title: Resolution accepting city manager’s six-month evaluation and adjusting compensation Discussion City manager e mployment agreement requirements: The employment agreement with the city manager states that “The city and manager agree that an initial performance review will be conducted on the manager after six (6) months. The city agrees to consider an increase in compensation to the manager dependent upon the results of the performance evaluation.” Performance evaluation: The city worked with consultant J. Forrest of Employee Strategies, Inc., to conduct the evaluation. Mr. Forrest conducted an electronic survey of the city manager’s direct reports and the city council. Additionally, Mr. Forrest completed one-on-one discussions with each councilmember to prepare for the evaluation discussion. On March 7, 2022, council met in a closed executive session to discuss the evaluation. In accordance with state statute, a summary of the evaluation from the closed session must be prov ided at the next open meeting. The evaluation results were very successful, with council unanimously reporting that they felt they made the right hiring decision and reaffirmed their support for Kim Keller as the St. Louis Park city manager. City manager salary: If council wishes to provide a six -month compensation adjustment for the city manager consistent with how probationary increases are applied for other non-union employees with above average performance, a 5% salary increase is due retroactive to the city manager’s six -month anniversary (Feb. 16, 2022). Compensation must comply with the state mandated salary cap. Below is the current approved city manager compensation: • 2021 city manager annual salary is $180,000 annually, not including car allowance. Car allowance of $500 per month is approved as additional compensation. Total compensation for 2021 is $186,000 annually. This compensation was approved upon hire for City Manager Kim Keller, effective Aug. 16, 2021. How does the state salary cap work? State law limits the amount of compensation political subdivisions may pay employees. Under current law, the maximum pay is 110% of the governor’s salary. Adjustments are made annually based on the Consumer Price Index. Effective Jan. 1, 2022, the compensation limit is $192,144. The City of St. Louis Park requested and received a waver from the compensation limit in 2002, allowing us to pay in excess of the cap up to a new limit. The compensation limit for St. Louis Park’s city manager with wavier for 2022 is $198,297. Items that are excluded from compensation and not subject to the cap are employee benefits that are also provided to all other full-time employees, vacation/sick leave allowances, health/ dental/disability/life insurance, pension benefits, dues paid to civic or professional organizations, reimbursement for expenses, and relocation expenses during initial year of employment. How is the city manager’s pay range set? Keystone Compensation Group and Principal Consultant Saado Abboud developed a regional peer group to survey the base salary for the city manager position and use that information to establish a market value salary range. All cities are outside of Minnesota since Minnesota salaries are capped by state statute. The peer group of comparable cities based on population size and economic group contains 27 cities in seven Midwestern states. City council meeting of March 21, 2022 (Item No. 8b ) Page 3 Title: Resolution accepting city manager’s six-month evaluation and adjusting compensation Although the market shows that the city manager’s market (85th percentile target pay) has increased by 3.5%, due to current economic uncertainties and to maintain consistency with other non-union positions, the recommended 2022 salary range for the city manager would be set consistent with other non-union employees at 3% above 2021, setting the 2022 range at $192,806 - $241,008. What is the recommended 2022 city manager pay? It is recommended that the pay range for the position of city manager be increased by 3% consistent with pay range increases for other non-union staff. It is further recommended that the city manager receive a 5% increase in salary effective Feb. 16, 2022, consistent with how probationary increases are applied for non- union employees with above average performance. Below is the recommended 2022 city manager compensation, effective Feb. 16, 2022: • 2022 salary range set for the city manager at $192,806 - $241,008 (3% increase). • Salary cap for 2022 with SLP waiver is $198,297. • City manager annual salary is increased by 5% to $189,000 annually ($90.865/hour based on 2,080 work hours in 2022). Car allowance of $500 per month ($6,000/year) is additional compensation subject to the salary cap. Total compensation is recommended to be $195,000 effective Feb. 16, 2022. City council meeting of March 21, 2022 (Item No. 8b ) Page 4 Title: Resolution accepting city manager’s six-month evaluation and adjusting compensation Resolution No. 22-___ Resolution accepting the annual city manager evaluation and adjusting compensation effective Feb. 16, 2022 Whereas, the city council provides an opportunity to hold an annual evaluation of the city manager; and Whereas, on March 7, 2022, a closed executive session of the council was held to discuss the six -month performance evaluation , Whereas, council has agreed that City Manager Kim Keller’s six -month performance was above average; Now therefore be it resolved that the City Council of the City of St. Louis Park hereby: • Accepts the six -month performance evaluation of the city manager; and • Confirms a salary of $189,000 for the city manager (based on 2,080-hour year), not including car allowance. This is a 5% increase to the city manager’s salary and is effective upon six -months of employment (retroactive to Feb. 16, 2022). Car allowance of $500/month continues to apply as compensation per the employment agreement. Reviewed for administration: Adopted by the City Council March 21, 2022 Cindy Walsh, deputy city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: March 21, 2022 Discussion item : 9a Executive summary Title: Proposed study session agenda topics Recommended action: City council and city manager review the proposed study session agenda topics and decide next steps. Policy consideration: Does the city council want to move forward with the proposed study session topics? Summary: Two proposed study session agenda topics were submitted for consideration. City staff provided a high-level analysis of each item, including information related to timeline and recommended disposition. The next step in the process is for council to decide, as a group, if they would like to add the proposed topics to a future study session agenda. The items may be included with other items already scheduled for discussion. Topic Proposed by Councilmembers Debt Free Budget – eliminating issuance of debt as a financing tool Lynette Dumalag and Jake Spano Creative Placemaking – managing community relationships around change and development Lynette Dumalag and Jake Spano Please note that proposed study session topics would typically be discussed at a council study session. However, given upcoming councilmember absences, staff included these items on this agenda to keep the process moving forward. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Debt Free Budget proposal and staff analysis Creative Placemaking proposal and staff analysis Prepared by: Melissa Kennedy, city clerk Approved by: Kim Keller, city manager City council meeting of March 21, 2022 (Item No. 9a) Page 2 Title: Proposed study session agenda topics City council meeting of March 21, 2022 (Item No. 9a) Page 3 Title: Proposed study session agenda topics City council meeting of March 21, 2022 (Item No. 9a) Page 4 Title: Proposed study session agenda topics City council meeting of March 21, 2022 (Item No. 9a) Page 5 Title: Proposed study session agenda topics City council meeting of March 21, 2022 (Item No. 9a) Page 6 Title: Proposed study session agenda topics City council meeting of March 21, 2022 (Item No. 9a) Page 7 Title: Proposed study session agenda topics City council meeting of March 21, 2022 (Item No. 9a) Page 8 Title: Proposed study session agenda topics City council meeting of March 21, 2022 (Item No. 9a) Page 9 Title: Proposed study session agenda topics