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HomeMy WebLinkAbout2022/03/28 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA MARCH 28, 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. 6:30 p.m. STUDY SESSION – council chambers Discussion items 1. 60 min. 2022 Market Value Overview 2. 45 min. Boards and commissions – structure, function, role, authority 5 m in. Communications/updates (verbal) W ritten reports 3. Application for TIF Assistance – Wooddale Avenue Apartments (Ward 2) 4. Unmanned aerial systems (UAS) for public safety use 5. Diversity, equity and inclusion policy in development projects receiving public financial assistance 6. February 2022 monthly financial report 7. Body worn camera annual update 8. 2021 housing activity report The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available after noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952.924 .2525. Meeting: Study session Meeting date: March 28, 2022 Discussion item : 1 Executive summary Title: 2022 Market Value Overview Recommended action: No action needed. This summary report is provided for informational purposes to update Council on the local real estate market dynamics and preparing for the Local Board of Appeal and Equalization process that begins in April. Policy consideration: None at this time. Summary: The assessed market valuation and classification for each property determines their individual tax capacity and thus the overall tax capacity of the community. In addition to fiscal budgeting and property tax implications, the composition of value and trending are important for Council to understand as they focus on overall governance of the community. This review is being made to give the Council additional information on how the community’s real estate is reacting to the significant evolution of the housing stock (single -family, condo, cooperatives, townhomes and apartment complexes), market performance trends for commercial-industrial space, thoughts on the current market cycle, and the foundation to look forward. Pandemic guidance: This overview is reflective of the assessment as of January 2nd with a reminder that in the equitable sense all adjustments are derived from the preceding year market activity. Events occurring during 2021 have been decidedly uneven in terms of real estate values and their outlook. The St. Louis Park Local Board of Appeal and Equalization convenes its organizational meeting on Monday April 11, 2022 with the follow -up meeting, if necessary, tentatively as April 25. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Discussion Prepared by: Cory Bultema, city assessor Reviewed by: Melanie Schmitt, finance director Approved by: Kim Keller, city manager Study session meeting of March 28, 2022 (Item No. 1) Page 2 Title: 2022 Market Value Overview Discussion Overview of the Minnesota Property Tax System Minnesota law establishes a specific process and timeline for the entire property tax system, including the assessment of property. The system is summarized as follows: 1.All real property is valued annually at fee simple market value and classified according to actual use. The owners are notified, generally in March, with informal and multiple formal options for discussion and appeal. 2.State law defines how the value is translated into tax capacity annually via class rate structures, programs, exclusions and credits (e.g. blind, disabled, homestead, veteran exclusion, low -income rental, agricultural et al). These refinements are administratively maintained. 3.Budgets for each taxing jurisdiction are set annually. Funding sources include the property tax levy, voter approved market value referendums, bonding, special assessments, user fees, grants and programs in a variety of operational sources which vary among jurisdictions. 4.In Minnesota, property taxes are a levied budget. The property tax budget levied in each jurisdiction is divided by the total tax capacity of that unique area (e.g. city, county, school district, met council et al). The result is the respective total levy extension multiplier (rate). The multipliers are applied to each individual property in calculating the property taxes in the year following the assessment and setting of the budget. It is essential to understand that the property tax “rate” is simply a math equation and not a full reflection of all revenue sources, tax base composition, service level, efficiency or performance . The Assessing function deals primarily with the first step and portions of the second while our work is such that we often explain the basic system outline to taxpayers/owners. As noted above, the process begins with measurement of market activity as staff renders an opinion of market value and classification annually for 17,000+ parcels in St. Louis Park as of January 2 each year. The assessment must comply with standards established by the Minnesota Department of Revenue, Minnesota law and with review/approval by the Hennepin County Assessor’s Office. Market value is defined in Minnesota Statute 272.03 subd 8 as “the usual selling price at the place where the property to which the term is applied shall be at the time of assessment; being the price which could be obtained at a private sale or an auction sale, if it is determined by the assessor that the price from the auction sale represents an arm's-length transaction. The price obtained at a forced sale shall not be considered.” C lassification of the property use is also defined by Minnesota statute. The rationale for this requirement is that the Minnesota property tax system applies differing classification rates in determining how the value is translated into tax capacity. The classification system greatly favors residential property types (single-family, condo, townhome, apartments) versus business property types (commercial and industrial). This differential is further affected by specific programs and laws such as fiscal disparities and state-wide levies. Study session meeting of March 28, 2022 (Item No. 1) Page 3 Title: 2022 Market Value Overview The assessment process: The purpose of the assessment is to annually render an accurate and equitable opinion of market value of each parcel of property. Doing so requires current information about the properties being assessed and the local real estate market. In addition to the economic forces at work, the individual property location, use and physical characteristics play a major role in the valuation. The St. Louis Park Assessing division maintains a record of every property in the city including its size, location, physical characteristics and condition. As there are 17,000+ parcels in the city, it is impossible to have comp lete knowledge of each property, which may or may not sell each year. The Minnesota property tax system therefore requires periodic inspections. The current cycle of inspection is on a five -year rotating schedule (known as the quintile) which may be altered due to physical change of the property due to new construction, renovations, additions and damage. The goal of the periodic and interim inspection process is to assess the characteristics and corresponding market value of each property as closely as possible versus the property’s competitive position. Due to the pandemic, staff did not conduct interior quintile inspection s during the summer of 2021 although we did return to field inspections for the fall of 2021 to do permit reviews. We will continue to be flexible to current conditions and do anticipate being able to conduct interior inspections at a normal pace for 2022. It is important to know that the initial valuation process for residential properties in the State of Minnesota is based on mass appraisal. The valuations are modeled by a computer assisted mass appraisal (CAMA) methodology. To summarize, the physical characteristics for each property are maintained in a large database which allows recalibration of the individual valuations based upon the location, style and physical characteristics for each property. While sometimes viewed as a mathematical equation to be manipulated, a truly functional CAMA system allows focused modeling on properties with similar marketability . The purpose of modeling is to fashion a mirror image of market performance based on properties that have sold during the comparison time period (time trended and fact-based modeling). Minnesota requires almost all sales to be recorded in an electronic Certificate of Real Estate Value (e -CRV) data system. The sales information is scrutinized and qualified. Initial clerical screening occurs at the city and county level. The sale information is then frequently augmented with more detail from a variety of professional data services and staff may follow -up with direct buyer/seller verifications and re -inspections in cases where we may have imperfect information. Evidence suggesting anything but an arms-length transaction (a forced sale, foreclosure, a sale to a relative, etc.) results in the sales information being excluded from study. This is important as the market information constitutes the measurable database for the statistical comparisons necessary to make the property assessment. The mass appraisal process is different from the individual appraisal system used by banks, mortgage companies and others. Mass appraisal is a modeling exercise using groups of sales to review competitively similar groups of properties. The individual appraisal process is comparing one subject property with a limited number of similar competing properties. In the appeal process , assessing staff looks to both the mass valuation and a current individual appraisal analysis for further review. Study session meeting of March 28, 2022 (Item No. 1) Page 4 Title: 2022 Market Value Overview Big picture of the residential market – realtor perspective Before discussion of the 2022 assessment, we want to provide a big picture overview from the perspective of realtors. The broad spectrum of owner based re sidential real estate is often carried in news media and the industry does comprise a significant variable in the local, regional and national economy. The following chart is an aggregate of single -family homes, condos and townhomes from 2013 through 2021 on an annual basis. This provides a comparative reference for St. Louis Park and our immediate neighbors through the last decade. Historic median sale price – aggregate of single -family homes, condos and townhomes 2013 2014 2015 2016 2017 2018 2019 2020 2021 St. Louis Park 219,000 230,000 239,000 245,000 264,663 287,000 305,000 327,750 340,000 Edina 351,000 380,000 397,000 435,005 460,000 450,000 473,606 520,000 595,000 Golden Valley 247,700 248,700 264,900 290,275 312,750 309,950 343,000 367,450 388,620 Hopkins 181,500 182,000 213,500 215,000 218,650 250,000 259,950 288,000 297,450 Minnetonka 280,000 273,984 300,000 307,350 335,000 347,500 358,250 358,250 437,000 Source: Minneapolis Association of Realtors Sales Data (MAAR) In contemplating the historical figures above, the primary owner-based housing options are included. This aggregate price structure gives an interesting but incomplete perspective for each community. The variation from year-to-year depends on which market segment has more sales as well as the volume of sales with new construction /major renovations. The chart below breaks out the dominant mix of options available and their sale performance in the past year. Annual 2021 market performance: sale volume – median sale price – days on market Single-Family Condominiums Townhomes # Median Days on # Median Days on # Median Days on Sales Sale Price Market Sales Sale Price Market Sales Sale Price Market St. Louis Park 759 375,000 9 228 188,500 24 74 259,800 13 Edina 752 775,000 13 324 210,000 28 40 418,500 22 Golden Valley 331 425,000 10 36 250,000 38 51 250,000 12 Hopkins 116 375,500 12 78 131,250 19 45 255,000 14 Minnetonka 612 545,000 9 223 212,950 21 193 315,000 17 Source: Minneapolis Association of Realtors Sales Data (MAAR) Several facts in the above table are notable. First and often surprising to some is that our annual transaction volume is generally high in terms of turnover rate . This is due in part to our pricing structure , the housing options available, the mix of options available , and the balance between single -family, condo and townhome stock. The most significant fact in the table above, however, is timing of marke t exposure (Days on Market). All of the local communities are clearly showing extremely short exposure times which has continued over multiple years. The move to a seller’s market has been particularly emphasized in recent years from the realtor perspective. While prior value appreciation has been predominantly in the lower priced brackets, market activity in 2020 was appreciating throughout the price points and has intensified for the upper brackets during 2021. How that supply/demand equation is influenced by the general economy, local competition, interest rates and household income is an annual question. Study session meeting of March 28, 2022 (Item No. 1) Page 5 Title: 2022 Market Value Overview Summary of the St. Louis Park 2022 Assessment Roll The Notice of Valuation and Classification commence mailing in March of each year. Each notice reflects the property value and classification for a two-year period with the format as required by the MN Department of Revenue. As of Jan. 2, 2022, the total valuation of the city stands at $9.41 billion versus $8.55 billion in 2021 and $8.13 billion for 2020. Further understanding of the value composition and year-over-year trending is explored in the following chart. Assessed Market Value Change for Dominant Sectors (Comparing 2022 to 2021 Assessment) Single -Family Residential +11.4% Market Basis versus +12.1% with Improvements Condominium + 5.4% Market Basis versus + 5.4% with Improvements Townhomes +18.1% Market Basis versus +18.2% with Improvements Apartments + 9.7% Market Basis versus +13.6% with Improvements Commercial + 1.0% Market Basis versus + 4.0% with Improvements Industrial + 9.2% Market Basis versus +10.0% with Improvements St. Louis Park Total + 9.0% Market Bas is versus +10.6% Gross Change Source : St. Louis Park Assessing Office. The “total” line is subject to slight refinement (0.3% to 0.5% generally) as the state assessed rail and utility values are assumed and not available at report writing. The market driven appreciation reflects a roughly apple-to-apple comparison. This measure is inherently the primary focus for the mass appraisal methodology reflected by review of transactions. There are also factors relating to use change, divisions and exemption changes. Gross change reflects the total valuation movement which includes improvement values arising from new construction, additions, renovations and use repositioning. This metric reflects the full scale of economic activity as assessed and by tax capacity. Improvement values were very strong for the 2022 assessment which partially alleviates the impact of the uneven market forces. Each of the above categories will be explained at further length in the following summary with reminder that that an assessment is fashioning a mirror image of the market. It has included the traditional sales review, extensive qualification review, on -market listings multiple times per year, income -expense relationships and quintile and renovation-based inspections. Study session meeting of March 28, 2022 (Item No. 1) Page 6 Title: 2022 Market Value Overview We begin our review of the overall residential sector by breaking it down into the three dominant categories: low density (single -family homes); mid -to-high density ownership based (condos and townhomes) and apartment units. Sale transactions for the owner-based stock were as follows: Quantile Layer Array - Single Family … Condo … Townhome (Qualified Sales 10-01-2020 thru 09-30-2021) Single -Family Residential (9.8% Time) Condominiums (6.3% Time) Townhomes (12.7% Time) Low High Count Median Low High Count Median Low High Count Median 193,60 0 328,600 143 295,30 0 93,800 144,50 0 51 131,50 0 206,90 0 235,80 0 9 220,90 0 328,90 0 366,700 143 349,70 0 144,90 0 173,60 0 52 159,55 0 237,20 0 249,20 0 9 240,60 0 367,00 0 419,400 145 390,40 0 173,80 0 239,50 0 53 199,50 0 251,10 0 278,50 0 11 270,60 0 419,40 0 497,200 143 446,80 0 239,60 0 312,90 0 52 271,75 0 278,50 0 301,30 0 9 290,90 0 497,80 0 1,417,90 0 143 623,80 0 313,90 0 590,70 0 51 383,30 0 303,00 0 654,00 0 9 483,70 0 Assess 2022 City Median 371,80 0 Assess 2022 City Median 193,50 0 Assess 2022 City Median 272,90 0 Source: St. Louis Park Assessing Office The preceding chart represents the sales used in setting the owned housing stock. The purpose of presenting this array in quantile slices (each line represents roughly 1/5 of the sales) is to provide the reader with insight as to market price niches for each use type and the dense bell curve shape of the city’s housing stock. The sales are time adjusted per MN Department of Revenue standards with breakout for the specific use category. Single Family Homes: Just under one-half of the total housing units are single family homes . The city of St. Louis Park is broken down into 35 distinct neighborhoods which are configured to local history rather than cohesive competitive influences. Of the 32 neighborhoods with single-family properties, the range of marke t driven adjustment was 3.9% to 17.7% with the majority in the 10-14% bracket. The city’s median market value was at 306,400 for assess 2020, at 330,250 for assess 2021 and moving to 371,800 for the 2022 assessment. The majority of market advance was very well spread out across all pricing brackets following multiple years where the lower end stock was moving much more rapidly than the upper brackets. This return to a balanced market is somewhat of a misnomer however as annual appreciation at 12% is not normally viewed as a sustainable market movement. We will see how 2022 plays out. Condominiums: There are 46 distinct condominium complexes in the community. The complexes are a decidedly diverse stock in terms of structural vintage and structural design format (apartment conversions, row-house, lo-rise, hi-rise and most everything in between). As noted in prior years, condos tend to be considerably more volatile year-over-year. This is generally due to four major factors: condos tend to have an in-complex sub-market which can swing quickly ; the complexes compete locally and more readily into nearby cities ; perceptions of Study session meeting of March 28, 2022 (Item No. 1) Page 7 Title: 2022 Market Value Overview value differ between the owner-occupant buyer versus the investor/rental buyer; and sale pricing can be affected in a significant manner by association assessments. This complexity and variety of market options has continued with the 2022 assessment being relatively strong in the aggregate sense. The city-wide median value was at 171,6000 for 2020, at 173,000 for 2021 and now at 193,500 for the 2022 assessment which is an increase of 11.8%. Townhomes: There are 19 distinct complexes in the community. Just under one -half of them are relatively small with fewer than 20 units. The other half are predominantly in the 20-50 unit count bracket with three larger complexes. In general, the market forces at play in this property type are similar to that of the condos with several mitigating factors. They include a higher average unit value which is normally more stable in terms of value consistency. It is also our perception that the physical designs tend to be less problematic while the rate of distressed transactions and on-market listings have tended to be less dramatic. The city -wide median market value for this stock advanced from 211,200 in 2020 to 222,100 in 2021 and is 272,900 for the 2022 assessment – a one year value change of 22.9%. Again, we do not expect that kind of appreciation trending to continue, and we will see how 2022 market activity plays out. The following charts provide additional overview for the 2022 assessment. The first page reflects the single -family neighborhoods over the past five years. The next two pages provide the complex based breakdown of the condos and townhomes also over five years. The charts include a parcel count reference and median market value which allows insight and perspective of the local housing market over a fiv e-year tracking period. Study session meeting of March 28, 2022 (Item No. 1) Page 8 Title: 2022 Market Value Overview St. Louis Park -- Single Family Residential Properties Historical Change of Assessed Market Values (Quintile Cycle) Year of Assessment 2018 2019 2020 2021 2022 a. Median Assessed Value: 274,900 297,800 306,400 330,250 371,800 b. City-Wide Change: 6.9% 6.7% 1.3% 7.8% 12.6% # Neighborhood Reference 2018 2019 2020 2021 2022 Parcels Median 1 Shelard Park N/A N/A N/A N/A N/A N/A N/A 2 Kilmer 6.4% 8.2% 3.9% 6.8% 14.3% 243 325,400 3 Crestview 0.2% 4.4% 2.7% 10.7% 6.3% 68 477,550 4 Westwood Hills 11.6% 0.6% 2.0% 3.7% 13.4% 292 537,450 5 Cedar Manor 7.9% 8.5% -0.7%12.0% 13.1% 573 372,700 6 Northside (x) Willow Park 12.2% 6.1% -4.1%7.8% 17.7% 303 382,200 7 Pennsylvania Park 0.0% 4.2% 9.2% 7.8% 10.9% 304 352,150 8 Eliot 6.9% 8.2% -2.2%13.0% 12.0% 510 341,500 9 Blackstone 4.2% 9.5% 8.1% 13.9% 5.9% 95 278,300 10 Cedarhurst 4.2% 18.3% 3.8% 7.0% 14.4% 48 337,500 11 Eliot View 8.5% 7.0% 5.1% 11.1% 9.1% 165 344,600 12 Cobblecrest 7.2% 10.2% 0.9% 7.9% 12.0% 382 412,200 13 Minnehaha 4.9% 7.8% 2.2% 4.0% 14.7% 129 491,600 14 Amhurst N/A N/A N/A N/A N/A N/A N/A 15 Aquila 10.7% 5.3% 5.0% 12.0% 15.1% 504 323,250 16 Oak Hill 6.8% 11.0% 3.5% 10.3% 10.2% 638 338,950 17 Texa Tonka 7.8% 7.4% 1.9% 5.1% 16.9% 385 322,200 18 Bronx Park 7.2% 6.9% 4.3% 7.8% 10.6% 992 340,800 19 Lenox 8.1% 7.5% 2.3% 10.0% 11.6% 831 344,700 20 Sorenson 11.5% 8.1% 2.0% 3.6% 13.9% 451 359,100 21 Birchwood 11.5% 7.0% 2.8% 6.7% 12.2% 649 369,400 22 Lake Forest 5.9% 3.3% -3.1%3.7% 3.9% 196 673,700 23 Fern Hill 5.2% 4.4% 0.9% 6.1% 12.9% 962 523,750 24 Triangle 5.7% 10.3% 4.5% 6.7% 17.9% 108 347,400 25 Wolfe Park 10.5% 3.8% 5.4% 6.1% 15.8% 16 360,600 26 Minikada Oaks 0.9% 2.3% -1.6%10.2% 10.9% 76 489,300 27 Minikada Vista 3.9% 5.1% -2.5%7.9% 12.2% 798 550,500 28 Browndale 6.2% 7.9% 1.7% 5.5% 9.2% 549 504,100 29 Brookside 7.6% 6.1% -2.9%10.7% 16.9% 328 380,900 30 Brooklawns 6.2% 2.6% -0.4%15.5% 12.4% 149 393,400 31 Elmwood 7.8% 3.7% 5.0% 3.4% 14.3% 267 400,000 32 Meadowbrook N/A N/A N/A N/A N/A N/A N/A 33 South Oak Hill 2.9% 11.4% 8.2% 8.3% 9.4% 291 314,300 34 Westdale 7.0% 14.9% -2.8%6.0% 9.9% 106 329,400 35 Creekside 8.1% 4.4% 1.3% 2.0% 16.8% 172 413,000 Quintile Counts 1,350 2,554 2,281 2,464 2,923 11,580 Study session meeting of March 28, 2022 (Item No. 1) Page 9 Title: 2022 Market Value Overview St. Louis Park -- Condominium Properties Historical Change of Assessed Market Values Year of Assessment 2018 2019 2020 2021 2022 a. Median Assessed Value: 155,100 169,900 171,600 173,000 193,500 b. City-Wide Change: 9.2% 6.5% 4.0% 0.8% 11.8% Code Complex Reference 2018 2019 2020 2021 2022 Units Median MO Monterey Coop 6.4% 6.6% 3.3% 3.8% 5.4% 8 111,700 AC Aquila Commons Coop 6.5% 6.6% 3.3% 0.7% 0.0% 106 230,500 33 3300 On The Park 13.9% 4.4% 3.6% 0.0% 15.4% 128 203,300 35 35th St Condos - Apt Convr 5.7% 0.0% 3.3% 20.0% 16.8% 11 181,200 55 55+ Condos 8.0% 21.1% 6.8% 6.9% -1.1%60 250,750 BK Brookside Lfts - 4100 Vernon 0.0% 15.5% -2.1%0.0% 20.9% 27 292,500 BK Brookside Lfts - 4132 Vernon 0.0% 15.5% -2.1%0.0% 0.0% 14 N/A BR Bridgewalk - Conversion 9.5% 12.0% 2.4% 4.9% 1.4% 92 133,800 CA Calhoun Hill 6.5% 4.9% 3.4% 12.2% -7.1%7 376,000 CH Coach Homes 7.5% 13.7% 10.6% 1.5% 5.0% 128 167,300 CS Cedar Trails - (South TH) 6.7% 9.9% 1.7% 2.3% 9.2% 32 225,650 CT Cedar Trails - (North of CLR) 5.9% 8.6% 3.8% 7.4% 10.6% 280 170,000 CW Cedar Trails - (S-West TH) 4.4% 9.9% 13.4% 0.0% -1.0%48 228,150 EV Elmwood Village 4.5% 6.8% 1.7% 0.0% 7.8% 77 364,200 FH Fern Hill 0.0% -2.9%-7.3%-4.8%26.0% 30 208,200 GR Greensboro Condos - HIA 8.8% 2.1% 22.0% 2.8% 16.4% 164 134,000 HV Harmony Vista (Hoigaards) 6.4% 6.7% 6.9% 3.9% 0.0% 74 238,600 IB Inglewood Boutique 6.5% 3.0% -9.3%5.2% 5.5% 6 369,400 LN Lynn Ave Condos - Apt Convr 6.3% 7.4% 5.1% 3.9% -1.0%12 217,900 LY Lynwood Condos 4.5% 8.9% 8.1% 12.0% 5.5% 11 212,000 MC Monterey Pl - Apt Convers 5.0% 6.9% -0.1%-3.7%3.7% 30 262,600 MR Murphy Ridge Condo TH 5.9% -5.9%3.3% 3.8% 5.4% 4 174,500 MW Monterey West - Condo TH 0.0% -9.0%3.3% 3.9% 5.5% 7 248,800 NP Natchez Pl 0.0% 14.9% 13.7% -2.6%5.4% 27 205,900 OX Oxford Gardens - Apt Convr 0.0% 6.6% 3.3% 3.9% -4.8%12 99,700 P0 Parkside Urban Lfts - 460 Bld 9.1% 2.2% 1.8% 6.1% 1.0% 24 347,300 P2 Parkside Urban Lfts - 462 Bld 9.9% 6.4% -1.1%11.7% 2.6% 22 335,600 P4 Parkside Urban Lfts - 464 Bld 11.3% 2.2% 8.9% -1.1%4.6% 22 320,200 PP Pondview Park - Apt Conver 4.6% 6.7% 14.0% 4.1% 0.2% 30 154,100 PW Pointe West Condos 5.0% 10.3% -2.4%0.0% 5.6% 86 356,100 S1 Sungate 1 - East of Alabama(N) 17.1% 6.6% 5.3% -1.1%5.4% 20 155,600 S2 Sungate 2 - East of Alabama(S) 20.0% 14.9% 0.9% 1.3% 17.1% 26 210,500 S3 Sungate 3 - West of Alabama 2.4% 6.7% 1.4% 0.0% 1.7% 14 221,300 SR Sunset Ridge - HIA 3.2% 9.7% 3.0% 3.1% 7.1% 240 159,000 TF Twin Fountains 15.5% 10.3% 1.1% 7.2% 1.7% 88 143,200 Study session meeting of March 28, 2022 (Item No. 1) Page 10 Title: 2022 Market Value Overview EL Excelsior Lofts (T Joe Site) 10.6% 8.4% -1.5%2.1% -2.2%86 268,200 GW Grand Way (NE Bldg) 9.8% 0.4% 5.6% -4.5%4.0% 124 362,600 TG The Grand NW @ Excelsior 9.8% -4.2%4.4% 0.0% 3.6% 96 451,000 VL Village Lofts 9.0% 9.7% 6.6% 7.7% 4.1% 60 244,000 WE Westmoreland - HIA 22.6% 7.1% 11.3% 2.1% 7.6% 72 122,000 WF Wooddale Flats 4.0% 1.0% 2.9% -9.1%9.1% 33 479,700 WL Wolfe Lake 31.6% 3.8% 2.3% 4.3% -2.9%131 193,450 WM Westmarke Condos 6.4% 6.6% 1.7% 8.1% 2.7% 64 235,900 WO West Oaks 21.4% 10.5% 1.0% 1.2% 3.1% 75 276,700 WV Westwood Villa - HIA 30.3% 19.5% 10.7% 0.0% 4.9% 66 131,800 WY Wynmoor 34.2% 11.2% 3.3% 0.0% 11.0% 56 139,700 Quintile Counts 546 437 693 435 440 2,830 St. Louis Park -- Townhome Properties Historical Change of Assessed Market Values Year of Assessment 2018 2019 2020 2021 2022 a. Median Assessed Value: 174,900 190,200 211,200 222,100 272,900 b. City-Wide Static Change: 4.0% 9.5% 9.5% 5.2% 22.9% Code Complex Reference 2018 2019 2020 2021 2022 Units Median BG Brunswick Gables 7.5% 7.1% 7.9% 3.0% 14.1% 7 312,100 DB Dan-Bar Twnhme 2.7% 4.0% 8.0% 3.0% 14.1% 4 250,300 EW Excelsior Way 25.7% 26.5% 14.0% 5.0% 21.4% 38 273,600 GR Greensboro - HIA 7.0% 10.0% 15.2% 0.5% 9.0% 96 223,600 HE Hampshire Estates 4.9% 10.2% 15.2% -3.0% 16.4%8 214,900 HH Hampshire House 0.0% 8.6% 14.3% 2.9% 11.8% 13 210,900 LL Lamplighter Park 3.6% 6.9% 8.7% -2.2% 14.2%5 475,300 LA Lohmans Amhurst 6.0% 12.8% 7.0% -0.4% 22.9%276 268,800 ME Medley Row 3.4% 7.9% 11.0% 3.0% 14.2% 22 386,000 MP Montery Park 2.4% 7.0% 2.5% 6.8% 14.9% 18 478,850 PC Princeton Court 3.0% 4.8% 1.8% 3.2% 21.7% 13 545,400 QC Quentin Court 2.9% 17.5% 2.3% 3.0% 14.2% 10 503,850 SH Shamrock 2.2% 7.6% 18.8% 1.4% 15.7% 16 237,250 SK Skyehill -6.1% 11.5%9.4% -8.1% 14.2%31 299,600 SW Sungate West 6.5% -0.1% 11.5%-7.6% 21.7%48 235,300 VP Victoria Ponds 1.2% 5.2% 7.7% 1.1% 17.5% 72 464,400 WT Westwood -3.5%3.7% 19.2% 4.6% 22.1% 38 291,200 ZA Zarthan Apt Twnhomes 4.0% 8.4% 16.0% 2.3% 15.3% 18 272,700 ZP Zarthan Park 4.0% 10.3% 16.7% 2.9% 3.5% 16 257,200 Quintile Counts 276 132 293 50 276 749 a: Median assessed market values – aggregate change including improvement values. b: Localized market driven change – does not include improvement values. Source: Annual compilations by the St. Louis Park Assessing Office. Study session meeting of March 28, 2022 (Item No. 1) Page 11 Title: 2022 Market Value Overview Apartments: This sector is largely driven in the historic sense by tenant supply/demand, the income stream and owner return expectations. This use category has exhibited very robust growth for an extended period of time (effectively increasing total unit counts by 40%+ in the last decade with many more projects under construction and in the pipeline ). Thus, we provide a longer historical perspective on market change and improvement values: -F or 2013 – market change at + 8.2% and +13.9% including new construction. -For 2014 – market change at + 8.2% and +20.2% with multiple new complexes on -line. -For 2015 – market change at +12.1% and +13.3% for the next phase of new complexes. -For 2016 – market change at +12.0% and +17.8% including new construction. -For 2017 – market change at + 6.4% and + 9.5% including new construction. -For 2018 – market change at + 7.5% and +13.3% including new construction. -For 2019 – market change at + 8.2% and +11.4% including new construction. -For 2020 – market change at +11.4% and +15.2% including new construction. -For 2021 – market change at + 2.3% and + 3.9% including new construction. -For 2022 – market change at + 9.7% and + 13.6% including new construction. Looking at the above historical pattern presents a very clear picture of both market appreciation and very active renovations including new construction. The totals above reflect aggregate value change which includes mixed market appreciation rates annually for the Class A-B-C stock . The market demand for units is primarily attributed to our location with proximity to Minneapolis , major employers in the west metro area as well as the broader economy. Class A projects have been the primary focus for new construction due to the inter-connected nature of the traditional approaches to valuation… cost to build, income stream and sales. It is important to recognize that the Class A and B stock were severely under-built dating back to the mid -1980 to mid -1990 time periods. The new complexes are helping to diversify the housing stock in that the total unit count is now distributed with approximately half being class C stock (typically less than 3 stories, built circa 1960-1975) and half being Class A and B stock. For your reference, the 2022 median unit values for the stock are: Class A at $282,000 reflecting an increase of 7.5%; the B’s are in a range of $170,000 to $228,000 at overall increase of 9.5%; and the median value for the Class C stock at $117,000 at an overall increase of 11.7%. Value changes for the 2021 assessment were minimal in the Class A and B sectors while the class C properties were left flat in anticipation of the pandemic affecting income collections. Collection losses were minimal due to an influx of government programs implemented to offset hardships caused by the pandemic. The pandemic and social unrest have shifted demand to suburban locales. This, alon g with projects being built near future mass transit and superior amenities have led to stable growth in rental rates and decreased vacancies. Commercial and Industrial: This sector has exhibited continuous market appreciation and new construction growth for an extended period approaching a decade. The 2021 assessment ended the market appreciation streak due to the pandemic with the general economy limitations continuing into the 2022 assessment . Value changes year over year are dependent on how these uses are performing in a range of national, regional and immediately local economies. Commercial and industrial properties are valued across jurisdictional boundaries to a significant extent with the specific use dictating the extent of ge ographic market areas. Study session meeting of March 28, 2022 (Item No. 1) Page 12 Title: 2022 Market Value Overview The overall market adjustment for the 2022 valuation on the commercial properties was 4.0% inclusive of new construction while the market driven adjustment of the existing stock was limited to 1.0% year-over-year. While this group of properties saw an overall gross increase in value due to new construction, many use niches saw no movement in value due to the effects of the pandemic on their business which ripples down to their underlying market value in the fee simple sense … specifically noted as the economic variables of business value, value-in-use, and leased fee may or may not play out the same as fee simple which is the required standard for valuation in the MN property tax system. Most sectors that saw large downward adjustments for the 2021 assessment are now stabilizing. All sub -sectors have been adjusted as closely as possible in relation to market evidence including sales, active usage and leasing. The overall market adjustment for the industrial stock was 9.2% which was predominantly market driven with nominal new construction value for the year. Looking at these figures brings three observations to mind. The first is that value changes in this use category become tricky as demand for buildings previously viewed as functionally obsolescent is varying due to the economy. Whether that use extension beyond economic/physical life will continue is an annual question. Secondly, a significant volume of the current industrial stock is located near the future light rail station areas which are major drivers of value change in terms of use, alterations and interim holding. The two preceding issues bring us to the economic reality of under-lying land values. As a mature inner ring suburb – actively engaged in redevelopment – our land value can be a limiting factor for industrial users. The reason being that industrial uses are typically land intensive and low-rise while our location and associated land values are a self -reinforcing premium driven by density. To close, the commercial sector saw overall growth due to new construction. Segments of this sector saw no movement in value due to the impact of the pandemic. The industrial market saw overall increases in value due to location, especially those close to the future light rail stations and those that allow for outdoor storage which is a very rare commodity in the market. Meeting: Study session Meeting date: March 28, 2022 Discussion item : 2 Executive summary Title: Boards and commissions – structure, function, role, authority Recommended action: No action at this time . Policy consideration: Does the city council want to engage a consultant to evaluate and provide a recommendation related to the structure, role, function, and authority of the city’s boards and commissions? Summary: Boards and commissions provide opportunities for the city to engage people in the democratic process and hear different perspectives that help plan and shape the future of the community. Ideally, boards and commissions bring people together and create space for the expression of viewpoints that might not otherwise be heard. The city currently has ten boards and commissions made up of volunteers with wide -ranging interests and expertise who care about the community and want to participate in public service. The charter authorizes the city council to create commissions with advisory powers to investigate any subject of interest to the city. The city code contains the enacting ordinances for those bodies created with the express purpose of acting in an advisory capacity to the city council. Other boards and commissions derive their authority to conduct specific business from state statute. Membership requirements, composition, scope of work and authority are varied. The city council appoints most, but not all, board and commission members. Over time, the needs and priorities of the community and the city council have evolved. In recent years council has discussed several recurring themes related to the structure, membership, function, and role of the advisory bodies. Staff routinely address similar topics as boards and commissions look to connect with council and better understand their scope of work and ability to impact policy decisions. Given the recent discussions around community and civic engagement, the desire from the council to further examine the ir relation ship with and the role of the city’s boards and commissions, and the goal to recruit and retain a more diverse membership that reflects the community, staff recommends hiring a consultant to conduct an in -depth evaluation and provide a recommendation on how the city’s boards and commissions could be utilized to further advance the city’s strategic priorities, with a strong focus on race equity and inclusion and building social capital through community and civic engagement. The consultant will be asked to conduct a stakeholder analysis, review each board/commission’s current structure, role , and scope of work, examine the recruitment/application/appointment process, and facilitate community conversations. The recommendation would be discussed with council, likely in the fall of 2022, to determine next steps and implement any changes prior to the start of the 2023 recruitment process. Financial or budget considerations: Funds are available in the Administrative Services budget. If council would like to move forward , staff will develop a RFP for consulting services and update the council throughout the process. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Exhibit A – boards and commissions structural overview Prepared by: Melissa Kennedy, city clerk Approve d by: Kim Keller, city manage r Board/Commission Structure Role/Function/Authority Bassett Creek Watershed Management commission •Cohort of 9 member cities •Council appoints 1 commissioner, 1 alternate, and (1) tech advisor •Derives power from watershed management plan and joint powers agreement. •Reports to BCWMC board. •Works to identify water quality improvement and flood control projects within watershed. •No work plan required. Charter Commission •15 members •Appointed by Chief Judge of District Court •Members must be residents •Authority derived from statute . •Maintain city charter and make recommendations on amendments . •No work plan required. Community Technology Advisory Commission •7 regular members - (6) appointed by council, (1) appointed by ISD #283 •(2) youth members •(1) ex-officio member appointed by cable company, non-voting •Council-appointed members must be residents; youth must be high school student at school in city •School board-appointed member must be resident of school district •Authority derived from city code. •Advise and collaborate with the city council and boards and commissions on application and use of technology to improve city services and quality of life. •Work pla n required. Environment & Sustainability Commission •(11) regular members •(2) youth members •All members council-appointed •Regular members must be residents •Preference given to business owners (no residency req.) •Youth members must be high school student at school in city •Authority derived from city code. •Advise council on environment and sustainability issues . •Allowed to conduct community engagement to educate and/or elicit feedback. •Allowed to establish work groups. •Work plan required. Fire Civil Service Commission •3-member commission •Appointed by city council •Authority derived from statute . •Non-advisory body. •Regulates and supervises employment, promotion, discharge, suspension of sworn fire positions •No work plan required. Housing Authority •5-member board •Council appointed •(1) member must be a program participant •Authority derived from statute. •Oversees administration of housing programs and policy authorized by council. •Work plan required. Page 2 Study session meeting of March 28, 2022 (Item No. 2) Title: Boards and commissions – structure, function, role, authority Exhibit A – Boards and commissions structural overview Exhibit A – Boards and commissions structural overview •Members must be residents Human Rights Commission •(8) regular members - (7) appointed by council, (1)of which must be an attorney; (1) appointed by I SD #283 •(2) youth members •Council-appointed members must be residents; youth must be high school student at school in city •School board-appointed member must be resident of school district •Authority derived from city code . •Advise the city council in efforts to ensure protection of human right and equal opportunity for participation in affairs of the community. •Work plan required. Parks & Recreation Advisory Commission •(7) regular members - (4) appointed by council, (3) appointed by ISD #283 •(2) youth members •Council-appointed members must be residents; youth must be high school student at school in city •School board-appointed member s must be resident of school district •Authority derived from city code . •Advise the city council on all matters requested by council. •Consider matters pertaining to recreation programs. •Study and recommend long range park & rec plans for the city. •Evaluate parks and rec programs and community desires/needs for such services. •Work plan required. Planning Commission •7 regular members - (6) appointed by council, (1) appointed by ISD #283 •1 nonvoting youth member, council-appointed •Council-appointed members must be residents; youth must be high school student at school in city •School board-appointed member must be resident of school district •Authority derived from city code . •Advise council on land use, comprehensive planning, zoning, platting, changes in streets , etc. •Prepare comp plan for implementation by council; maintain plan; recommend amendments. •Allowed to initiate, direct and review studies of zoning code and subdivision regulations and make recommendations to council. •Study applications and proposals for amendments to zoning code , applications for special permits , and make recommendations to council. •Study preliminary and final plats and make recommendations to council. •Work plan required. Police Advisory Commission •(11) regular members •(2) youth members •Council-appointed •Members must be residents; youth must be students at school in city •Authority derived from city code . •Under direction of council, enhance awareness of police department capabilities and services; provide opportunity for citizen involvement in police services and encourage exchange between police and community; act in advisory capacity to council. •Work plan required. Page 3 Study session meeting of March 28, 2022 (Item No. 2) Title: Boards and commissions – structure, function, role, authority Meeting: Study session Meeting date: March 28, 2022 Written report: 3 Executive summary Title: Application for TIF Assistance – Wooddale Avenue Apartments (Ward 2) Recommended action: None at this time. This staff report outlines Real Estate Equities’ application for financial assistance . Policy consideration: Is the EDA willing to consider entering a redevelopment contract to reimburse the Developer for up to $940,000 in qualified costs through TIF to enable it to achieve financial feasibility and provide a deferred loan of $850,000 from the Affordable Housing Trust Fund (AHTF) to secure deeper levels of affordability? Summary: Real Estate Equities (REE and “developer”) has a purchase agreement to acquire the Aldersgate Methodist Church property at 3801 Wooddale Avenue . REE’s plan s for the site include removal of the existing church, and construction of a 114-unit, all affordable , workforce housing development. The proposed $34.26 million development includes a mix of one -, two-, and three-bedroom units, including five units at 30% AMI, five units at 50% AMI, and 104 units at 60% AMI for 26 years, exceeding the city’s Inclusionary Housing Policy requirements. Additionally, the development has been awarded Tax Exempt Bonds and a Low -Income Housing Tax Credit (LIHTC) allocation, which requires four additional years of affordability at 60% AMI for all units, for a total of 30 years of affordability. Financial or budget considerations: Based on Ehlers finical analysis, it likely that any affordable housing developer would request financial assistance from the City. REE has sought project financing from a variety of public agencies for the proposed development. It was awarde d up to $17.49 million tax exempt bonds from Minnesota Management and Budget (MMB), Low Income Housing Tax Credits (LIHTC) from Minnesota Housing and are applying for cleanup grants from Hennepin County. Despite these sources, and deferring over 70% of their developer fee, the project’s proforma exhibits a funding gap due to its considerable extraordinary costs. Consequently, REE applied for tax increment financing (TIF) assistance to enable the development to become financially feasible . 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 development to achieve financial feasibility . After review, Ehlers determined that up to $940,000 in TI F assistance is warranted to enable the project to proceed. Such assistance would be provided via a pay-as-you-go TIF Note. Given current estimates of market value, it is estimated that the development’s TIF Note would be paid off in approximately 15 years which means it would be back on the tax roles. Such assistance would derive from a new housing TIF district. In addition, a deferred loan of $850,000 from the city’s AHTF is needed to “buy down” the deeper levels of affordable housing at 30% and 50% AMI in the development. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Jennifer Monson, redevelopment admin., Keith Dahl, municipal advisor, Ehlers Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager/operations and recreation director Study session meeting of March 28, 2022 (Item No. 3) Page 2 Title: Application for TIF Assistance – Wooddale Avenue Apartments Discussion Site information: The subject redevelopment site at 3801 Wooddale Avenue is approximately 2.69 acres in size . The site is located on the west side of Highway 100, east of Wooddale Avenue, and immediately south of the Hwy 100 on/off ramp. Site area (acres): 2.69 acres Current use: Surrounding land uses: church and parking lot North: right of way, commercial East: Fire station 1, Center Park, and single -family residential South: single-family residential West: Highway 100 Current 2040 land use guidance Current zoning CIV - civic R-3 two -family residence Proposed 2040 land use guidance Proposed zoning RH - high density residential PUD planned unit development Study session meeting of March 28, 2022 (Item No. 3 ) Page 3 Title: Application for TIF Assistance – Wooddale Avenue Apartments Background: The existing building at 3801 Wooddale Avenue was constructed in 1950 and used as a place of worship and a daycare. Aldersgate Methodist Church is downsizing and merging with another local church. Aldersgate desire s to leave behind a legacy of affordable housing for the St. Louis Park community. The church has entered into a purchase contract with Real Estate Equities (REE and “developer”) to redevelop the site as an all-affordable workforce housing development. The existing building is currently occupied by Aldersgate Methodist Church and another small congregation which has a short-term lease for the space. Both users in tend to vacate the space in the coming months. Real Estate Equities completed a phase I and phase II environmental assessment of the subject site , and significant environmental remediation is necessary to remove asbestos in the existing structure. The developer is submitting a grant application to Hennepin County to help off-set these clean-up costs. On Jan. 11, 2022, REE was awarded Tax Exempt revenue bonds from Minnesota Management and Budget in the amount of $17,490,550 and was subsequently awarded Low -Income Housing Tax Credit s (LIHTC) from Minnesota Housing. These bond allocations require the developer to receive all financial obligations and close on the project within 180 days . REE’s deadline for the Wooddale Avenue Apartment development is Friday, July 8, 2022. Present considerations: Real Estate Equities has a purchase agreement with Aldersgate Methodist Church and proposes to remove the existing building and re develop the site with an all-affordable, three - to four-story apartment building. The development would include 114 dwelling units that would be affordable at a range of 30 to 60 percent of the area median income (AMI). The plan proposes accessing the site from Wooddale Avenue with driveways both north and south of the cul-de -sac. 117 parking stalls are provided underground, and 89 stalls are proposed in surface lots on the building’s west and north side s. Other proposed site improvements include sidewalks, new landscaping, an underground stormwater management system and a 40-53 kw rooftop solar array. REE submitted applications for a comprehensive plan amendment to re-guide the site ’s land use from civic to high density residential, a preliminary and final plat, and a preliminary and final planned unit development. The planning commission held a public hearing on the applications March 23, 2022, and city council is scheduled to consider the applications on April 4, 2022. As proposed, the development exceeds the city’s inclusionary housing policy as amended in October 2021 and exceeds the city’s green building policy as amended in July 2020, including a rooftop solar array. Study session meeting of March 28, 2022 (Item No. 3 ) Page 4 Title: Application for TIF Assistance – Wooddale Avenue Apartments Rendering of proposed Wooddale Avenue Apartments Wooddale Avenue Apartments would be a single -phase, all-affordable , residential development marketed as workforce housing. The 114-unit building would include a combination of one -, two-, and three-bedroom units with five units affordable at 30 percent area median income (AMI), five units affordable at 50 percent AMI, and 104 units affordable at 60 percent AMI. Unit Type 30% AMI 50% AMI 60% AMI Total units 1-bedroom 2 2 23 27 2-bedroom 2 2 49 53 3-bedroom 1 1 32 34 Total 5 5 104 114 Upon closing on its financing, the developer plans to commence construction in summer 2022 and complete construction by year-end 2024. Real Estate Equities would own and manage the residential development for at least 15 years, through the required tax credit compliant period pertaining to the LIHTC allocation. However, it has indicated that it will likely continue to own the property beyond the required 15 years. Inclusionary housing: As outlined above, the proposed apartment building would be an all- affordable development with rents ranging from 30 percent to 60 percent AMI. The development would exceed the city’s inclusionary housing policy as amended in October 2021, which requires at least 20 percent of the units be affordable at 60 perce nt AMI. Per the Metropolitan Council, the 60 percent AMI for a family of four is $62,940. A development of this size is required to provide at least four three -bedroom units per the city’s inclusionary housing policy . The developer plans to include 34 three -bedroom units in the building’s unit mix, exceeding the policy requirements by 29 units, to further the city’s goals for family -sized housing. Study session meeting of March 28, 2022 (Item No. 3 ) Page 5 Title: Application for TIF Assistance – Wooddale Avenue Apartments As negotiated, the above affordability levels would be maintained for 26 years, as required by the city’s inclusionary housing policy. Given that the development has been allocated Low Income Housing Tax Credits (LIHTC), all the units must remain affordable up to 60 percent AMI for at least 30 years . In summary, the proposed development would provide 114 units of affordable housing for 30 years. Climate Action Plan: The development will exceed the city’s Green Building Policy as amended in July 2020 and intends to follow Enterprise Green Communities/Energy Star Program with the Minnesota Overlay as its design rating system. The development will also include the following sustainable features: • A 40-53 kw rooftop solar array • LED lighting • Low VOC paint and adhesives • Energy Start appliances and windows • High efficiency magic paks • Recycled content in construction material • Recycled construction waste • Low flow water fixtures • Soil and asbestos remediation Additionally, the development will provide 19 level-2 charging stations for residents. There will also be 10 exterior bicycle parking spaces near the main entrance to the building and 175 spaces will be located within the building, for a total of 185 bicycle parking spaces. The site is within ½ mile from the future Wooddale Avenue LRT station which will provid e reliable and efficient public transit for building occupants. This means residents will not need to rely on a single -occupancy vehicle , resulting in reduced vehicle miles traveled and less emissions . G iven the above, the proposed development exceeds the city’s Green Building Policy requirements as amended July 2020. Racial equity and inclusion: The proposed development will provide qualified families (including households of color) with equal access to new, quality housing in proximity to area amenities and multi-modal transportation. As an "Income Averaging" development, all 114 units would be considered affordable to households at incomes ranging from 30% to 60% AMI, with a building average income of less than 60% AMI. Additionally, 30 percent of the proposed units would be three bedrooms which are often appealing to multigenerational households of color. Resultingly, the proposed development provides an opportunity for racial and economic integration consistent with the city’s racial equity and inclusion goals. Real Estate Equities employee base is 50% female and is 46% BIPOC /non-white . In their other developments, their overall resident base is 65% BIPOC/non -white and is 75% female. Real Estate Equities advertises employment positions through various forms of media, including those that are targeted towards the Veteran, Hmong, and African American communities and partners with local organizations that support DEI initiatives, such as Union Gospel Mission and Best Buy Teen Tech Center. The Developer anticipates that its construction practices, and ongoing property management will meet the intent of the city’s diversity, equity, and inclusion policy . Study session meeting of March 28, 2022 (Item No. 3 ) Page 6 Title: Application for TIF Assistance – Wooddale Avenue Apartments In addition, REE’s general contractor, Big – D Construction, intends to bid the development to approximately 50 women and BIPOC owned subcontractors. Big-D is also working on another project in St. Louis Park, 9920 Wayzata Boulevard, and is aware of the city’s DEI goals for hiring women and minority owned businesses and workforce. The Development Team: Real Estate Equities (REE) is a 50-year-old multifamily development and property management company based in the Twin Cities. REE’s primary focus is on the development and management of workforce and senior affordable housing. The company is currently developing projects in Minnesota as well as Arizona. In REE’s history, the company has developed and managed over 12,000 multifamily housing units across the country. REE retains long term ownership of the company’s development projects and provides full-service property and asset management. More information on the applicant can be found at the company website . Some similar recent Real Estate Equities developments include: Sonder House Apartments in Brooklyn Center, Spring House Apartments in Coon Rapids, Press House Apartments in St. Paul, The Winslow in West Saint Paul, and Eastgate Apartments in Rochester. Application for Tax Increment Financing assistance: It is anticipated that the proposed development will incur a number of extraordinary site development costs such as contamination abatement, building demolition and removal, and structured parking. These extraordinary redevelopment costs, along with the all-affordable nature of the housing development (requiring below market rents for 30 years) as we ll as the city -requested sustainable features create a gap in the project’s financial proforma. To mitigate the project’s estimated financial gap, the developer applied for $1.9 million in tax increment financing (TIF) assistance. Tax increment financing uses most of the increased future property taxes generated by a new development to finance certain qualified development costs incurred by that project for a limited period to enable it to achieve financial feas ibility . The EDA’s financial advisor, Ehlers, examined the financial information provided within the developer’s TIF application based on general industry standards for land, construction, and project costs; rents; operating expenses; fees; underwriting and financing criteria; and project cash flow. Based on this analysis, Ehlers and EDA staff determine d the proposed development exhibits a financial gap justifying the provision of TIF assistance. Extraordinary Redevelopment Expenses, Affordable Impact, and sustainability features Amount ($) Demolition $201,000 Asbestos Abatement Work $278,000 Solar panels $287,000 Affordable impact $16,230,906 TOTAL Extraordinary Costs $16,996,906 Construction/Extraordinary Costs: The estimated total development cost (TDC) to construct the proposed Wooddale Avenue Apartments is over $34.2 million or $300,542 per unit which is within industry standards under current market conditions. The $479,000 of extraordinary costs along with the $16.2 million affordability impact* and the $287,000 in city -requested sustainability features constitute the project’s financial gap. Study session meeting of March 28, 2022 (Item No. 3 ) Page 7 Title: Application for TIF Assistance – Wooddale Avenue Apartments *Affordability impact: The affordability impact is calculated by comparing the market rate rents to the affordable rents for the term in which the developer is not receiving any tax increment. Rents for affordable housing units are approximately 44% less than the rents charged for market rate units. The difference between these rents, times the number of affordable units each month for 26 years, significantly reduce the development’s rental income. In this case, it is estimated that the affordability impact over 26 years will amount to $16,230,906 or $142,376 per affordable unit. Due to decreased rental income from 100% of the units over 26 years, there is insufficient cash flow to provide a market rate of return, pay ongoing operating expenses, and service the outstanding debt on the property. This leaves a gap in the funding for the project and makes this housing development financially in feasible without public financial assistance . Under MN TIF statutes, costs to construct affordable housing are an eligible expense that may be reimbursed through tax increment originating from a housing TIF District. Proposed level of assistance: The recommended level of assistance for the project was determined by analyzing the project’s extraordinary site development costs, construction costs , affordability impact over 26 years, city -requested sustainability features, and ensuring all private forms of financing have been maximized. Ehlers concluded that tax increment assistance in the amount of $940,000 and a loan in the amount of $840,000 from the city’s Affordable Housing Trust Fund (AHTF) is necessary to enable the proposed development to become financially feasible . This level of assistance would offset enough of the extraordinary site costs, city -requested sustainability features, and affordability impact described above to allow the proposed project to achieve financial feasibility an d attract private financing thereby enabling it to proceed. The developer has indicated the recommended level of assistance is acceptable. Consistent with previous EDA redevelopment agreements, a "lookback" provision would be incorporated into the redevelopment agreement with the developer. Land Acquisition: Real Estate Equities has a purchase agreement to acquire the subject redevelopment site from the Aldersgate Methodist church for $2.8 million or $24,561 per unit. This land sale price is considered within market compared to other multi-family land sales within the city. TIF Note: The proposed development would take approximately 20 months to construct. It is anticipated that the first increment could be paid in 2024. Given current estimates of market value, it is estimated that a $940,000 TIF Note would be paid off in approximately 15 years (on a net present value basis). It is projected that the Note would terminate with the final payment on February 1, 2039. Payments on the Note would be made on a "pay-as-you-go" basis, which means that as the developer pays the project’s property taxes, a portion of those taxes (the “tax increment”) are paid back semi-annually to the developer under the specified terms of the TIF Note. Thus, payments to the developer would only be made as the project’s property taxes are received. This is the preferred financing method under the city's TIF Policy. Study session meeting of March 28, 2022 (Item No. 3 ) Page 8 Title: Application for TIF Assistance – Wooddale Avenue Apartments TIF district: It is proposed that the tax increment provided to Wooddale Avenue Apartments derive from a new ly established housing TIF district. With 100 percent of the units affordable to households ranging from 30 to 60 percent of area median income , the Wooddale Avenue Apartment development would meet the statutory requirements for establishment of a housing TIF district. Once the tax increment obligation to the developer is paid off, the council will have the option to decertify the district or to keep it open for TIF pooling purposes. Housing TIF Districts allow for up to 100% pooling for affordable housing purposes. Such a TIF district would allow for up to 26 years of tax increment by state statute. Property value and taxes: The subject redevelopment property is currently exempt from property taxes. For tax increment financing purposes, the taxable market value of the property is estimated at $2,616,000. This would be the proposed TIF district’s Base Value. Upon sale of the property to Real Estate Equities, the city, county, and school district would begin receiving property taxes from the Base Value. The estimated market value upon the proposed development’s completion is estimated at approximately $20 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the developer until it is paid off. It is estimated that the development would generate nearly $143,000 in annual property taxes upon completion and full occupancy. The city’s portion would be slightly under $50,000. Analysis of development’s conformity with the city’s TIF Policy: The following table lists the objectives, qualifications, and guidelines for the use of tax increment financing as specified in the city’s TIF Policy as amended in December 2021, as well as how and whether the proposed development meets the majority of those standards. Study session meeting of March 28, 2022 (Item No. 3 ) Page 9 Title: Application for TIF Assistance – Wooddale Avenue Apartments TIF Policy Compliance Table* Factor Requirement/Guideline Proposed Project Met? Applicable TIF District Redevelopment/Renewal & Renovation/ Housing/Economic Development Housing district Yes Statutory TIF district requirements Housing District 40% of the units affordable at 60% AMI 20% of the units affordable at 50% AMI: or 10% of the units affordable at 30% AMI 100% of the units will be affordable between 30% to 60% AMI Yes Use of TIF Proposed costs are statutorily eligible for reimbursement through proposed TIF district. Proposed use of tax increment financing to mitigate the cost of constructing affordable housing is statutorily eligible through housing TIF districts. Yes TIF Objectives TIF Policy requires projects to meet over half of applicable objectives for use of TIF. Proposed project meets nearly all the EDA’s Objectives for the use of TIF Yes Minimum Qualifications Applicable Strategic Priorities Proposed project provides broad range of housing and neighborhood-oriented development. Yes Meets Green Building Policy requirements. Development will exceed the July 2020 Green Bldg Policy requirements. Yes Meets Inclusionary Housing Policy requirements (if applicable). Development will exceed the Oct. 2021 Inclusionary Housing Policy requirements. Yes Meets Diversity, Equity, and Inclusion Policy. The developer’s construction practices, and ongoing management will meet the intent of the city’s diversity, equity, and inclusion policy.* Yes* Consistent with city's Comprehensive Plan and Zoning Ordinance, or approvals pending. The developer is requesting a comprehensive plan amendment and a PUD zoning district. If city council approves these changes, the development will be consistent with city plans and zoning. City council is scheduled to consider the applications on April 4, 2022** Pending** Study session meeting of March 28, 2022 (Item No. 3 ) Page 10 Title: Application for TIF Assistance – Wooddale Avenue Apartments Removes contamination, blight and/or will not generate significant environmental problems. Proposed project removes a vacant building that no longer meets building and fire codes. The new building will also meet 2022 requirements for stormwater and will be a more efficient building exceeding the city’s green building policy requirements. Yes Helps facilitate desired development that would not occur without assistance. Proposed assistance would facilitate desired affordable development and would not occur without such assistance. Yes Developer provided necessary documentation to evaluate TIF need and proposed project. Developer provided necessary documentation to evaluate proposed project and TIF request. Yes Determined not financially feasible "but-for" the use of tax increment financing. Ehlers determined the proposed project is not financially feasible "but-for" the use of tax increment financing Yes Developer has experience and capability to construct proposed project. Developer has extensive experience and capability to construct the proposed project. Yes Developer plans to retain ownership of project long enough to stabilize occupancy (if applicable). Real Estate Equities plans to retain ownership of the project through stabilization and will continue to manage the property. Yes Meets all Minimum Qualifications. The development meets all Min imum Qualifications if the city council votes to approve an amendment to the 2040 comprehensive plan use plan and rezone the property to a PUD. Pending** /Yes Desired Qualifications Incorporates Livable Communities, New Urbanism, TOD, Sustainable Design principles (i.e., mixed -use, urban design, human scale, walkable, public spaces, and sustainable design features). Proposed project incorporates Livable Communities , TOD, and sustainable design principles. Yes Study session meeting of March 28, 2022 (Item No. 3 ) Page 11 Title: Application for TIF Assistance – Wooddale Avenue Apartments High quality development (sound architectural design, quality construction and materials). Proposed project will incorporate high quality design and materials. Yes Provides rents at deeper affordability levels such as 30% or 50% AMI (if applicable). Proposed development will provide 5 units with rents at 30% AMI and 5 units with rents at 50% AMI . The remaining 104 units will have rents affordable to households at 60% AMI Yes Provides units for larger families (i.e., 3- & 4-bedroom units (if applicable )). Thirty -four 3-bedroom units are proposed Yes Complements and/or adds value to neighborhood by providing public elements or placemaking features (if applicable). The project provides economic integration and will add value to the neighborhood by redeveloping a vacant church and large parking lot , into affordable workforce housing. Yes Proposed development will likely stimulate further investment in surrounding area/neighborhood. This site is being redeveloped to replace an existing church which no longer needs this size of property. The majority of the site is surrounded by single -family residential, right of way and older commercial uses to the north. While the Burlington/MicroCenter site might redevelop in the future, it is unlikely this development will stimulate that investment No Provides new, or retained, employment (if applicable). Will provide 2 new FTE employment opportunities. Yes The increase in market value of the property after redevelopment is more than 8 times the original market value. The estimated market value of the site after redevelopment is 7.62 times the original market value.*** No*** Will have a positive community impact. Proposed project will have a significant positive impact on the community by providing 114 affordable housing units, including units that are deeply affordable and larger family - sized units. Yes Will not place extraordinary demands on city services. City departments determined proposed project will not place extraordinary demands on city services. Yes Study session meeting of March 28, 2022 (Item No. 3 ) Page 12 Title: Application for TIF Assistance – Wooddale Avenue Apartments Will not likely generate significant environmental problems and/or cleans up existing contamination. The development will not generate any environmental problems and will clean up existing contamination includes a building filled with asbestos. Yes Land price for project site is within market range. Land price for project site is within market range. Yes Ratio of private to city investment (TIF and grants) is more than $5 to $1. Proposed private to city investment is nearly $19 to $1. Yes The proposed amount of TIF assistance or term of the TIF Note is within range of similar developments which received TIF assistance. The proposed TIF assistance is within range of similar development that received TIF assistance. The proposed term of the TIF Note is at the maximum desired but does not exceed the 15 years desired under the TIF Policy. Yes Proposed TIF assistance will be provided on a pay-as-you-go- basis. Proposed TIF will be provided on a pay-as-you-go-basis. Yes Meets the majority of Desired Qualifications. The development meets the majority of Desired Qualifications Yes *Planning applications were submitted and approved prior to the adoption of the pending diversity equity and inclusion policy . Therefore , the development team is not required to adhere to this policy. However, staff will work with the development team to meet the intent of the policy during construction and ongoing management. Real Estate Equities will be working with Big D construction to construct the building. Both companies are dedicated to helping the city meet DEI goals and will provid e quarterly updates on women and BIPOC owned business enterprises and workforce participation. Both companies have a proven record of furthering DEI initiatives in their companies and in the cities they work. **The site does not currently meet the city’s comprehensive plan or zoning requirements. However, the applicant is requesting a comprehensive plan amendment and a PUD zoning district. If city council approves these changes, the development will be consistent with city plans and zoning. City council is schedule d to consider the applications on April 4, 2022 ***The increase in market value of the property after redevelopment is technically less than 8 times the original market value. However, the property is currently used as a church and is tax exempt, making the market value for taxing entities essentially $0. Taking into consideration the increase in market value from a tax -exempt church to a multifamily development, the value of the property is significantly higher than 8 times the original market value. Study session meeting of March 28, 2022 (Item No. 3 ) Page 13 Title: Application for TIF Assistance – Wooddale Avenue Apartments Given that the proposed development meets statutory requirements, as well as all objectives, qualifications and guidelines as specified in the TIF Policy, staff finds Real Estate Equities’ request for TIF assistance meets the EDA’s requirements for the provision of tax increment financing. Affordable Housing Trust Fund (AHTF): The EDA does not need to take formal action on the amount of funding provided through the AHTF, but will be requested to provide approval of the terms of the contract . The loan of $850,000 would be non-interest bearing and would be repaid upon the earlier of 1) 25 years, 2) refinancing, or 3) sale of the development. In order to qualify for utilization of funds from the AHTF, a rental development needs to provide at least 40 percent of the units affordable to households at 60 percent AMI or at least 20 percent of the units affordable at 50 percent AMI. The proposed development exceeds the requirements of the AHTF policy by providing five units at 30 percent AMI, five units at 50 percent AMI, and the remaining 104 units at 60 percent AMI. By providing additional assistance through the trust fund, this allows the development to achieve deeper levels of affordability for 10 of the units and to incorporate more, larger units. Summary and recommendation: Based upon its analysis of REE’s proforma for Wooddale Avenue Apartments, Ehlers determined that the proposed development has a verified financial gap and is not financially feasible but-for the provision of tax increment financing and a deferred loan from the Affordable Housing Trust Fund. To offset this gap, it is proposed that the EDA consider reimbursing the developer up to $940,000 in pay-as-you-go tax increment generated by the project over a 15-year term. Such assistance would derive from a newly established housing TIF district upon completion of the proposed project and stabilization. It is also proposed that the EDA provide a deferred loan in the amount of $840,000 from the AHTF. Providing tax increme nt financing assistance and a deferred loan through the AHTF to the proposed Wooddale Avenue Apartment development achieves the following: • redevelops an under-utilized church and large parking lot which no longer meet current building or fire codes. • provides the city with a quality, multi-family all-affordable housing development. consistent with many goals of the 2040 Comprehensive Plan, city ’s strategic priorities and council preferences. • further diversifies the city’s housing stock with an additional 114 all-affordable multi- family units , includ ing five deeply affordable units at 30 percent area median income , for 30 years exceeding the city’s Inclusionary Housing Policy requirements , and provides larger, family -sized units. • includes numerous sustainable features (including a solar array) exceeding the city’s Green Building Policy requirements. • brings the subject properties to significantly higher market value than they are currently. • creates a potential new revenue stream to assist future affordable housing developments and programs. Real Estate Equities proposed Wooddale Avenue Apartments meets the city’s requirements for the provision of Tax Increment Financing as specified in the city’s TIF Policy and the provisions to utilize money from the Affordable Housing Trust Fund. As noted above, the project meets nearly Study session meeting of March 28, 2022 (Item No. 3 ) Page 14 Title: Application for TIF Assistance – Wooddale Avenue Apartments all Objectives as well as almost all Minimum and Desired Qualifications for providing TIF assistance. Additionally, it has been demonstrated that the proposed development is not financially feasible but-for the provision of tax increment financing and AHTF. Lastly, the proposed amount of assistance is comparable to other housing developments in which the EDA previously invested. Given these findings, staff supports reimbursing the development team for eligible costs up to $940,000 in pay-as-you-go tax increment generated by the proposed mixed income development and a deferred loan of $840,000 from the AHTF to enable it to become financially feasible . Next steps: As with all TIF applications, it is at the EDA’s discretion as to whether to provide the proposed Wooddale Avenue Apartment development with the requested tax increment assistance at the recommended level. Provided the EDA supports providing such assistance, the EDA will be asked to begin the formal process of establishing a new housing TIF district; the vehicle through which the financial assistance would be provided. The first step of which is to set a public hearing date. It is proposed that date for holding the public hearing for the establishment of the new Aldersgate - Wooddale Avenue TIF District be tentatively scheduled for June 6, 2022. The next steps in the TIF approval process would be as follows: 1. Negotiation of business terms for the provision of tax increment assistance. 2. Review of proposed business terms of contract for private redevelopment contract. 3. Hold public hearing on the establishment of the proposed Aldersgate - Wooddale Avenue TIF District (a housing TIF district). – city council 4. Approval of TIF district plan and contract for private redevelopment – EDA and city council. Meeting: City council Meeting date: March 28, 2022 Written report: 4 Executive summary Title: Unmanned aerial systems (UAS) for public safety use Re commended action: No action required at this time . City council will be asked to approve the policy following a public hearing on April 4, 2022. Policy consideration: Does council wish to approve the proposed use and policy for the Fotokite Unmanned Aerial System (UAS)? Summary: The tethered Fotokite UAS was budgeted to replace an antiquated pole camera on the emergency command vehicle during its recent remodel. The main feature of this device that distinguishes it from other small, unmanned aircraft is its cable, or tether, which is secured onto the device and connects it to a home base. To date, the police department has not deployed a drone. The St. Louis Park Police Department began preparing for a UAS program in 2021 and plans to join numerous other law enforcement agencies in Minnesota in use of the technology. The tethered drones may be used for various police and fire operations to provide video images of scenes to assist in public safety operations. The drones are equipped with a thermal imaging camera that can be used for locating missing people or fugitives outdoors through heat signatures. Other potential applications include documenting severe weather damage , and various public displays and community events. In addition, other city departments are interested in utilizing them for training purposes, structure inspections, engineering site surveys, GIS mapping, and videography. City Attorney Soren Mattick was consulted regarding current federal and state regulations and their applicability to the Fotokite. Mr. Mattick recommended following the state statute guidelines on implementing a UAS by receiving public comment on their use and policy to also include a public hearing that has been scheduled for April 4, 2022 to satisfy this statutory requirement. Financial or budget considerations: The total cost of two Fotokite units were $50,000 and purchased as part of the approved 2021 budget. Strategic priority consideration: Not applicable. Supporting documents: Discussion St. Louis Park police department unmanned aerial system operations policy MN Statute §626.19 Submitted public comments Prepared by: Greg Weigel, police lieutenant Approved by: Mike Harcey , police chief Approve d by: Kim Keller, city manager Study session meeting of March 28, 2022 (Item No. 4) Page 2 Title: Unmanned aerial systems (UAS) for public safety use. Discussion Background: City Attorney Soren Mattick was consulted regarding current federal and state regulations and their applicability to the Fotokite. The following is section provides information on the federal and state regulations on UAS and our compliance plan. Federal regulation: Typically, drones or unmanned aircraft are subject to FAA regulation. However, the Fotokite device does not require additional FAA approval, certification, or certificate of authorization because it is tethered and is owned and operated by the city, a political subdivision of the state (49 U.S. Code 44806(c)(2)). State regulation: It is unclear whether the Fotokite device is subject to Minn. Stat. §626.19 (Effective 08-01-2020), however, we have chosen to take a conservative approach and assume that the statute does apply. As such, the following subdivisions requiring public comment will be satisfied prior to using the device: Subd. 9. Public comment. A law enforcement agency must provide an opportunity for public comment before it purchases or uses a UAV. At a minimum, the agency must accept public comments submitted electronically or by mail. The governing body with jurisdiction over the budget of a local law enforcement agency must provide an opportunity for public comment at a regularly scheduled meeting. Subd. 10. Written policies and procedures required. Prior to the operation of a UAV, the chief officer of every state and local law enforcement agency that uses or proposes to use a UAV must establish and enforce a written policy governing its use, including requests for use from government entities. In developing and adopting the policy, the law enforcement agency must provide for public comment and input as described in subdivision 9. The written policy must be posted on the agency's website, if the agency has a website. Compliance plan: The state statute requires that a law enforcement agency must provide an opportunity for public comment before it purchases or uses an Unmanned Aerial Vehicle (UAV) and the written policy for the use of the UAV. At a minimum, the agency must accept public comments submitted electronically or by mail. To meet this requirement, we have engaged our Police Advisory Commission (PAC) and our Police Multi-cultural Advisory Committee (PMAC). The PAC solicited in -person public comment on Fotokite drone use and policy at their regularly scheduled me eting on Wednesday, March 2, 2022, as well as accepting emailed, mailed and tele phone comments. The proposed policy was made available through the marketing on receiving public comment and has been included as an attachment to this report. The PMAC also discussed the policy and use of the Fotokite drone at their regularly scheduled meeting on February 16, 2022. After a presentation from staff on the program, PMAC members were provide information on how to submit comments through the PAC public comment process. Results of public comment: Of the 22 submitted public comments, 17 supported, 3 opposed and 2 were neutral regarding Fotokite drone use and policy. See supporting documents for copies of submitted public comments. In-person comments from the March 2, 2022 PAC meeting included: “Judith Cook,” city resident: Inquired about warrant requirement; info/explanation provided. Said concerns about privacy protections diminished by prevalence of surveillance cameras throughout city on private residences, stores, etc. Study session meeting of March 28, 2022 (Item No. 4) Page 3 Title: Unmanned aerial systems (UAS) for public safety use. “Shelly Colvin” [sic], city resident: Inquired about cost, cost sharing; info/explanation provided. Also inquired about obsolescence of technology; explained 10-year estimate of product lifespan. Comments from PAC Commissioners: Commissioner Kinney: Recommended display of sign at public events where drone is in use stating, “Video/drone recording in process overhead,” or similar. Question about use in protest/demonstration situations and who would give approval; info/explanation given about Chief’s approval requirement and risk to public/officer safety. Commissioner Morgan: Questions about policy application and data storage, private/public. Explained that any recordings of drone video would be tied to case/investigation and video would be treated similarly to bodycam video before any release, with necessary redactions applied to protect privacy. Commissioner Christenson: Very much supports use of this technology and has confidence in department policy and application. Commissioner Slais: Agree d with Commission er Christenson’s comments. Public hearing: The state statute also requires that the governing body with jurisdiction over the budget of a local law enforcement agency must provide an opportunity for public comment at a regularly scheduled meeting. City Attorney Mattick recommends that a public hearing be held to satisfy the statutory requirement. A public hearing has been scheduled for April 4, 2022. Council will be asked to approve the proposed use and policy for the Fotokite UAS system at the April 18 city council meeting. St. Louis Park Police Department Policy Manual Unmanned Aerial System (UAS) Operations 706.1 PURPOSE AND SCOPE The purpose of this policy is to establish guidelines for the use of an unmanned aerial system (UAS) and for the storage, retrieval, and dissemination of images and data captured by the UAS (Minn. Stat. § 626.19). Minnesota Statutes refer to these systems as "Unmanned Aerial Vehicles" (UAVs), and for purposes of this policy, and any related policies, these terms are understood to be interchangeable. 706.1.1 DEFINITIONS Unmanned Aerial System (UAS) -An unmanned aircraft of any type that is capable of sustaining directed flight, possibly tethered to a control unit supplying power and controls, whether preprogrammed or remotely controlled without the possibility of direct human intervention from within or on the aircraft (commonly referred to as an unmanned aerial vehicle (UAV)), and all of the supporting or attached systems designed for gathering information through imaging, recording, or any other means (Minn. Stat. § 626.19). 706.2 POLICY Unmanned aerial systems may be utilized to enhance the department's mission of protecting lives and property when other means and resources are not available or are less effective. Any use of a UAS will be in strict accordance with constitutional and privacy rights and Federal Aviation Administration (FAA) regulations. 706.3 PRIVACY The use of the UAS potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to FM altitude regulations and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure). Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas where there is a reasonable expectation of privacy. Reasonable precautions can include, for example, deactivating or turning imaging devices away from such areas or persons during UAS operations. 706.4 PROGRAM COORDINATOR The Chief of Police will appoint a program coordinator who will be responsible for the management of the UAS program, if one is in operation. The program coordinator will ensure that policies and procedures conform to current laws, regulations, and best practices and will have the following additional responsibilities: •Coordinating the FM Certificate of Waiver or Authorization (COA) application process and ensuring that the COA is current. •Ensuring that all authorized operators and required observers have completed all required FM and department-approved training in the operation, applicable laws, policies, and procedures regarding use of the UAS. Copyright Lexipol, LLC 2022/01/24, All Rights Reserved. Published with permission by St. Louis Park Police Department Unmanned Aerial System (UAS) Operations - 1 Page 4 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. j St.Louis Park Police Department Policy Manual Unmanned Aerial System (UAS)Operations •Developing uniform protocol for submission and evaluation of requests to deploy a UAS,including urgent requests made during ongoing or emerging incidents. Deployment of a UAS shall require authorization of the Chief of Police or the authorized designee,depending on the type of mission. •Developing protocol for conducting criminal investigations involving a UAS,including documentation of time spent monitoring a subject. •Implementing a system for public notification of UAS deployment. •Developing an operational protocol governing the deployment and operation of a UAS, including but not limited to safety oversight,use of visual observers,establishment of lost link procedures,and secure communication with air traffic control facilities. •Developing a protocol for fully documenting all missions. •Developing a UAS inspection,maintenance,and record-keeping protocol to ensure continuing airworthiness of a UAS,up to and including its overhaul or life limits. •Developing protocols to ensure that all data intended to be used as evidence are accessed,maintained,stored,and retrieved in a manner that ensures its integrity as evidence,including strict adherence to chain of custody requirements.Electronic trails, including encryption,authenticity certificates,and date and time stamping,shall be used as appropriate to preserve individual rights and to ensure the authenticity and maintenance of a secure evidentiary chain of custody. •Developing protocols that ensure retention and purge periods are maintained in accordance with established records retention schedules. •Facilitating law enforcement access to images and data captured by the UAS. •Recommending program enhancements,particularly regarding safety and information security. •Ensuring that established protocols are followed by monitoring and providing annual reports on the program to the Chief of Police. •Developing protocols for reviewing and approving requests for use of the department UAS by government entities (Minn.Stat.§626.19). •Preparing and submitting the required annual report to the Commissioner of Public Safety (Minn.Stat.§626.19). •Posting the department policies and procedures regarding the use of UAV on the department website,as applicable (Minn.Stat. §626.19). •Reviewing the program and UAS use for compliance with Minn.Stat.§626.19. 706.5 USE OF UAS Only authorized operators who have completed the required training shall be permitted to operate the UAS. Use of vision enhancement technology (e.g.,thermal and other imaging equipment not generally available to the public)is permissible in viewing areas only where there is no protected privacy Copyright Lexipol,LLC 2022/01/24,AII Rights Reserved. Published with permission by St.Louis Park Police Department Unmanned Aerial System (UAS)Operations - 2 Page 5 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. St. Louis Park Police Department Policy Manual Unmanned Aerial System (UAS) Operations interest or when in compliance with a search warrant or court order. In all other instances, legal counsel should be consulted and/or a search warrant obtained. UAS operations should only be conducted when lighting and weather conditions do not affect safety, and a UAS should not be flown over populated areas without FAA approval, if required for the type of UAS equipment deployed. Members shall not use a UAS without a search warrant, except (Minn. Stat. § 626.19): (a) During or in the aftermath of an emergency situation or disaster that involves the risk of death or bodily harm to a person. (b) Over a public event where there is a heightened risk to the safety of participants or bystanders. (c) To counter the risk of a terrorist attack by a specific individual or organization if the agency determines that credible intelligence indicates a risk. (d) To prevent the loss of life or property in natural or man-made disasters and to facilitate operation planning, rescue, and recovery operations. (e) To conduct a threat assessment in anticipation of a specific event. (f) To collect information from a public area if there is reasonable suspicion of criminal activity. (g) To collect information for crash reconstruction purposes after a serious or deadly collision occurring on a public road. (h) Over a public area for officer training or public relations purposes. (i) For purposes unrelated to law enforcement at the request of a government entity, provided the request is in writing and specifies the reason for the request and a proposed period of use._ 706.5.1 DOCUMENTATION REQUIRED Each use of a UAS should be properly documented by providing the following (Minn. Stat. § 626.19): (a) (b) A unique case number (or documentation in a form attached to a unique case number) A factual basis for the use of a UAS (c) The applicable exception, unless a warrant was obtained 706.6 PROHIBITED USE The UAS video surveillance equipment shall not be used: •To conduct random surveillance activities. •To target a person based solely on actual or perceived characteristics such as race, ethnicity, national origin, religion, sex, sexual orientation, gender identity or expression, economic status, age, cultural group, or disability. •To harass, intimidate, or discriminate against any individual or group. Copyright Lexipol, LLC 2022/01/24, All Rights Reserved. Published with permission by St. Louis Park Police Department Unmanned Aerial System (UAS) Operations - 3 Page 6 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. St. Louis Park Police Department Policy Manual Unmanned Aerial System (VAS) Operations •To conduct personal business of any type. The UAS shall not be weaponized (Minn. Stat. § 626.19). 706.6.1 ADDITIONAL PROHIBITIONS Unless authorized by a warrant, a UAS shall not be deployed with facial recognition or biometric matching technology (Minn. Stat. § 626.19). Unless authorized by a warrant or for purposes of a permitted use outlined in this policy, a UAS shall not be used to collect data on public protests or demonstrations (Minn. Stat. § 626.19). 706.7 RETENTION OF UAS DATA The Records Section supervisor shall ensure that data collected by the UAS is disclosed or deleted as required by Minn. Stat. § 626.19, including the deletion of collected data as soon as possible, and in no event later than seven days after collection, unless the data is part of an active criminal investigation (Minn. Stat. § 626.19). Copyright Lexipol, LLC 2022/01/24, All Rights Reserved. Published with permission by St. Louis Park Police Department Unmanned Aerial System (UAS) Operations - 4 Page 7 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. 626.19 USE OF UNMANNED AERIAL VEHICLES.​ Subdivision 1.Application; definitions.(a) This section applies to unmanned aerial vehicle data​ collected, created, or maintained by a law enforcement agency and to law enforcement agencies that maintain,​ use, or plan to use an unmanned aerial vehicle in investigations, training, or in response to emergencies,​ incidents, and requests for service. Unmanned aerial vehicle data collected, created, or maintained by a​ government entity is classified under chapter 13.​ (b) For purposes of this section, the following terms have the meanings given:​ (1) "government entity" has the meaning given in section 13.02, subdivision 7a, except that it does not​ include a law enforcement agency;​ (2) "law enforcement agency" has the meaning given in section 626.84, subdivision 1;​ (3) "unmanned aerial vehicle" or "UAV" means an aircraft that is operated without the possibility of​ direct human intervention from within or on the aircraft; and​ (4) "terrorist attack" means a crime that furthers terrorism as defined in section 609.714, subdivision 1.​ Subd. 2.Use of unmanned aerial vehicles limited.Except as provided in subdivision 3, a law​ enforcement agency must not use a UAV without a search warrant issued under this chapter.​ Subd. 3.Authorized use.A law enforcement agency may use a UAV:​ (1) during or in the aftermath of an emergency situation that involves the risk of death or bodily harm​ to a person;​ (2) over a public event where there is a heightened risk to the safety of participants or bystanders;​ (3)to counter the risk of a terrorist attack by a specific individual or organization if the agency determines​ that credible intelligence indicates a risk;​ (4) to prevent the loss of life and property in natural or man-made disasters and to facilitate operational​ planning, rescue, and recovery operations in the aftermath of these disasters;​ (5) to conduct a threat assessment in anticipation of a specific event;​ (6) to collect information from a public area if there is reasonable suspicion of criminal activity;​ (7) to collect information for crash reconstruction purposes after a serious or deadly collision occurring​ on a public road;​ (8) over a public area for officer training or public relations purposes; and​ (9) for purposes unrelated to law enforcement at the request of a government entity provided that the​ government entity makes the request in writing to the law enforcement agency and specifies the reason for​ the request and proposed period of use.​ Subd. 4.Limitations on use.(a) A law enforcement agency using a UAV must comply with all Federal​ Aviation Administration requirements and guidelines.​ (b)A law enforcement agency must not deploy a UAV with facial recognition or other biometric-matching​ technology unless expressly authorized by a warrant.​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 626.19​MINNESOTA STATUTES 2020​1​ Page 8 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. (c) A law enforcement agency must not equip a UAV with weapons.​ (d) A law enforcement agency must not use a UAV to collect data on public protests or demonstrations​ unless expressly authorized by a warrant or an exception applies under subdivision 3.​ Subd. 5.Documentation required.A law enforcement agency must document each use of a UAV,​ connect each deployment to a unique case number, provide a factual basis for the use of a UAV, and identify​ the applicable exception under subdivision 3 unless a warrant was obtained.​ Subd. 6.Data classification; retention.(a) Data collected by a UAV are private data on individuals or​ nonpublic data, subject to the following:​ (1) if the individual requests a copy of the recording, data on other individuals who do not consent to​ its release must be redacted from the copy;​ (2) UAV data may be disclosed as necessary in an emergency situation under subdivision 3, clause (1);​ (3)UAV data may be disclosed to the government entity making a request for UAV use under subdivision​ 3, clause (9);​ (4) UAV data that are criminal investigative data are governed by section 13.82, subdivision 7; and​ (5) UAV data that are not public data under other provisions of chapter 13 retain that classification.​ (b) Section 13.04, subdivision 2, does not apply to data collected by a UAV.​ (c) Notwithstanding section 138.17, a law enforcement agency must delete data collected by a UAV as​ soon as possible, and in no event later than seven days after collection unless the data is part of an active​ criminal investigation.​ Subd. 7.Evidence.Information obtained or collected by a law enforcement agency in violation of this​ section is not admissible as evidence in a criminal, administrative, or civil proceeding against the data subject.​ Subd. 8.Remedies.In addition to any other remedies provided by law, including remedies available​ under chapter 13, an aggrieved party may bring a civil action against a law enforcement agency to prevent​ or remedy a violation of this section.​ Subd. 9.Public comment.A law enforcement agency must provide an opportunity for public comment​ before it purchases or uses a UAV. At a minimum, the agency must accept public comments submitted​ electronically or by mail. The governing body with jurisdiction over the budget of a local law enforcement​ agency must provide an opportunity for public comment at a regularly scheduled meeting.​ Subd. 10.Written policies and procedures required.Prior to the operation of a UAV, the chief officer​ of every state and local law enforcement agency that uses or proposes to use a UAV must establish and​ enforce a written policy governing its use, including requests for use from government entities. In developing​ and adopting the policy, the law enforcement agency must provide for public comment and input as described​ in subdivision 9. The written policy must be posted on the agency's website, if the agency has a website.​ Subd. 11.Notice; disclosure of warrant.(a) Within a reasonable time but not later than 90 days after​ the court unseals a warrant under this subdivision, the issuing or denying judge shall cause to be served on​ the persons named in the warrant and the application an inventory that shall include notice of:​ (1) the issuance of the warrant or application;​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 2​MINNESOTA STATUTES 2020​626.19​ Page 9 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. (2)the date of issuance and the period of authorized, approved, or disapproved collection of information,​ or the denial of the application; and​ (3) whether information was or was not collected during the period.​ (b) A warrant authorizing collection of information with a UAV must direct that:​ (1) the warrant be sealed for a period of 90 days or until the objective of the warrant has been​ accomplished, whichever is shorter; and​ (2) the warrant be filed with the court administrator within ten days of the expiration of the warrant.​ (c)The prosecutor may request that the warrant, supporting affidavits, and any order granting the request​ not be filed. An order must be issued granting the request in whole or in part if, from affidavits, sworn​ testimony, or other evidence, the court finds reasonable grounds exist to believe that filing the warrant may​ cause the search or a related search to be unsuccessful, create a substantial risk of injury to an innocent​ person, or severely hamper an ongoing investigation.​ (d)The warrant must direct that, following the commencement of any criminal proceeding using evidence​ obtained in or as a result of the search, the supporting application or affidavit must be filed either immediately​ or at any other time as the court directs. Until the filing, the documents and materials ordered withheld from​ filing must be retained by the judge or the judge's designee.​ Subd. 12.Reporting.(a) By January 15 of each year, each law enforcement agency that maintains or​ uses a UAV shall report to the commissioner of public safety the following information for the preceding​ calendar year:​ (1) the number of times a UAV was deployed without a search warrant issued under this chapter,​ identifying the date of deployment and the authorized use of the UAV under subdivision 3; and​ (2) the total cost of the agency's UAV program.​ (b) By June 15 of each year, the commissioner of public safety shall compile the reports submitted to​ the commissioner under paragraph (a), organize the reports by law enforcement agency, submit the compiled​ report to the chairs and ranking minority members of the senate and house of representatives committees​ having jurisdiction over data practices and public safety, and make the compiled report public on the​ department's website.​ (c)By January 15 of each year, a judge who has issued or denied approval of a warrant under this section​ that expired during the preceding year shall report to the state court administrator:​ (1) that a warrant or extension was applied for;​ (2) the type of warrant or extension applied for;​ (3) whether the warrant or extension was granted as applied for, modified, or denied;​ (4) the period of UAV use authorized by the warrant and the number and duration of any extensions of​ the warrant;​ (5) the offense specified in the warrant or application or extension of a warrant; and​ (6) the identity of the law enforcement agency making the application and the person authorizing the​ application.​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 626.19​MINNESOTA STATUTES 2020​3​ Page 10 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. (d) By June 15 of each year, the state court administrator shall submit to the chairs and ranking minority​ members of the senate and house of representatives committees or divisions having jurisdiction over data​ practices and public safety and post on the supreme court's website a full and complete report concerning​ the number of applications for warrants authorizing or approving use of UAVs or disclosure of information​ from the use of UAVs under this section and the number of warrants and extensions granted or denied under​ this section during the preceding calendar year. The report must include a summary and analysis of the data​ required to be filed with the state court administrator under paragraph (c).​ History: 2020 c 82 s 5​ NOTE: This section, as added by Laws 2020, chapter 82, section 5, is effective August 1, 2020, provided​ that the chief law enforcement officers adopt the written policy required under subdivision 10 no later than​ February 15, 2021. Laws 2020, chapter 82, section 5, the effective date.​ Official Publication of the State of Minnesota​ Revisor of Statutes​ 4​MINNESOTA STATUTES 2020​626.19​ Page 11 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject Seamus Duffy <seaduffy11@gmail.com> Thursday, February 24, 2022 12:07 PM SLP Police Department In regard to tethered drones CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hello, Is there a write up of all uses for tethered drones as well as restricted use for this technology? Thank you, Seamus 20 Page 12 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject lauren rowe <rowlen4057@gmail.com> Thursday, February 24, 2022 12:09 PM SLP Police Department Tethered drones CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe . . As a citizen of SLP, the use of tethered drones sounds like a helpful tool to assist the police in the jobs and search incidences described in you email. Sincerely, Lauren Rowe 19 Page 13 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject Brenda Wiggins <brenda.w.wiggins@gmail.com> Thursday, February 24, 2022 12:43 PM SLP Police Department Use of Drone Comments CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Yes, I'm impressed these may be used. I would hope drones could be used to monitor for crimes such as the frequent catalyst converted thief s happening all over the area. There are others. Events with large numbers of people may be opportunities to monitor traffic, for disruption of events. The ideas are unlimited. I understand with only 2 drones and being tethered really shorten the list. Policy or ordinance should cover future use or number of drones. I know SLP Police and Fire can find useful opportunities beyond 2 units. Thanks for the opportunity to comment. Electronically Signed. Brenda W Wiggins, 7201 Walker Street Apt 100, 55426. 612-333-2814 m1 18 Page 14 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject Laurie Herman <laurie.herman@aol.com> Thursday, February 24, 2022 12:58 PM SLP Police Department Tethered Drones CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Sounds like a great idea to me!! Laurie Herman 17 Page 15 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject: Leanna Kristoff <leannakristoff@gmail.com> Thursday, February 24, 2022 1 :13 PM SLP Police Department Support for drone use CAUTION: This email originated from outside of the organization. Do not dick links or open attachments unless you recognize the sender and know the content is safe. Good afternoon, I am writing in support of the St. Louis Park Police Department utilizing tethered drones when deemed necessary. While all technology has the potential for misuse, my opinion is that the capability to quickly locate a missing person or to provide information on a dangerous situation outweigh the possible downsides. Sincerely, Leanna Kemp Kristoff 16 Page 16 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From; Sent: To: Subject: Pamela Margolis <pammargo1is1953@gmail.com> Thursday, February 24, 2022 1 :52 PM SLP Police Department Drones CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. I do not live in St. Louis Park as I am on the west side of 169, but have family that live in St. Louis Park and just want to say I think Drones are a great idea to help locate and protect the citizens in the community. Also a thank you to both the Police and Fire department for helping to keep the city safe. Pamela Margolis Cell 612-581-4411 15 Page 17 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject: Rick Q <rqualy@outlook.com> Thursday, February 24, 2022 1 :59 PM SLP Police Department Drone use CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good afternoon, While I am now a resident of Eden Prairie, I grew up in St Louis Park in the 1960's and 1970's. I would like to see the Police Department use drones to the maximum extent there is. Using them for heat signatures would help locate lost persons as well as anyone hiding from the police after bailouts. They are a great asset to any organization. Thank you for keeping us safe and stay safe, Rick Qualy 14 Page 18 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject: Lynette Engebretson <mengebretson1@comcast.net> Thursday, February 24, 2022 2:43 PM SLP Police Department drone usage CAUTION: This email originated from outside of the organization. Do not dick links or open attachments unless you recognize the sender and know the content is safe. two words: Big Brother Is that even legal? 13 Page 19 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject: Claudia Oxley <csox1ey60@gmail.com> Thursday, February 24, 2022 3:15 PM SLP Police Department Drones Feedback CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hello First I want to say how much I appreciate the invitation for feedback to the proposed use of tethered drones. I respect that city staff have researched this idea fully and are offering it to us based on their view of how to service the community best. At this time, I am adamantly opposed to the use of these drones. In general, such technology seems the antithesis to me of community-based policing. It is in no way relational; it interacts with the community as if we were all just data points. Especially in the metro-wide {and national) ongoing conversation about policing methods and community distrust, a movement toward this technology appears to exacerbate every concern community members have. I appreciate the desire to use tax dollars efficiently and can see that this technology might be a nifty way to do that. However, the unintended harm I believe this would cause is enough to kill the idea immediately. Please do not implement this technology. Thank you very much for the opportunity to voice my view. Regards, Claudia Oxley 12 Page 20 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Catherine Bergerson <bergerson39@gmail.com> Thursday, February 24, 2022 3:46 PM SLP Police Department CAUTION: This email originated from outside of the organization. Do not dick links or open attachments unless you recognize the sender and know the content is safe. I'm ALL for the use of drones! Any technology that can help the police catch criminals is just fine with me. Thanks, Catherine Bergerson 11 Page 21 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Marcus Petrik <marcuspetrik@gmail.com> Thursday, February 24, 2022 4:18 PM SLP Police Department CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. I'm a St Louis Park resident and I totally support this technology being used to help curb criminal activity as well as search and rescue situations. Thanks, Marcus 10 Page 22 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject: Jim Remlin <jim.romlin@gmail.com> Thursday, February 24, 2022 9:30 PM SLP Police Department Tethered drones CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. I am in total support of the use of tethered drones for all the reasons spelled out in the email. Staying in the forefront of new/emerging technology makes all the sense in the world. Go for it! Jim Romlin 9 Page 23 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject Jane Ahrens <jmoose58@gmail.com> Thursday, February 24, 2022 9:53 PM SLP Police Department Drone Usage Comment CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. I am in favor of any tool that will help SLP police conduct their duties to keep the citizens of SLP safer, including drones. Jane Ahrens 8 Page 24 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Jim EII-Egermeier <JimEII-Eg@outlook.com> Thursday, February 24, 2022 10:56 PM Mikael Garland; SLP Police Department Sent: To: Subject: My comments on the potential use of tethered drones by the St. Louis Park Police Department CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. After giving this some deep consideration, I think it is a great idea for the SLP Police Department to use these tethered drones. I feel this is an efficient and effective use of technology. Initially my immediate concern was of, "Big Brother", watching us. However after further thought I don't see these tethered drones as being an intrusion on personal privacy. Currently one must assume that anything done outdoors, and especially in a public place, is being recorded. •Fixed surveillance cameras are practically everywhere, including home door bells with Ring. •Google maps our streets and provides aerial views. •Current high resolution satellite images are commercially available. •Certainly the government has real time access to infrared satellite images as well. Also allaying my concerns, these are tethered human controlled drones under discussion. I would feel differently if these were non-tethered drones, or if they were controlled by an Artificial Intelligence application. I feel reassured knowing that a real live Police Officer will physically be present and in control at the other end of each tether. In summary, I feel the benefits of using these tethered drones outweighs potential privacy concerns. Please feel free to share my views with others, including those attending the Police Advisory Commission meeting on March 2n d • I would be glad to attend the Commission meeting remotely, but I'm not comfortable attending in person due to Covid concerns. Jim EII-Egermeier, SLP Resident at 2218 Flag Avenue South P.S., if you would like to speak with me directly, please feel free to call or text my cell at 612-708-2888. Leave a message if I don't pick up, as I may be in a meeting and I generally don't answer calls when I don't recognize the caller ID. 7 Page 25 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. 3350 Yosemite Ave S St Louis Park, MN 55416 612-757-0761 I. bottge@comcast.net February 24, 2022 St. Louis Park Police Department ATTN: UAS Public Comments (Lt. Garland) 3015Raleigh-Ave. & ---- St. Louis Park, MN 55416 Dear Lt. Garland, I really don't want our air space filled with drones. However, if these tethered drones can assist the police, firefighters, and other first responders, I will respond with a "yes". Thank you. Sincerely, '---· 0---:-r(( 0)--go y Lynn Bottge Page 26 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject dwight fellman <fellmad@gmail.com> Friday, February 25, 2022 8:46 AM SLP Police Department YES to tethered drones CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. long-time SLP resident. 66-years old. The tethered drones are new to me but sound very good for law enforcement and fire safety. seems like really good value -as they can observe a lot -and would be really quiet compared to helicopters. I have a non-beginner drone I purchased in 2021 but have not used it yet. I wanted to view gutters and fencing at our townhome association. Will need to register the drone and then learn to fly it. dwight fellman 7909 Victoria Curve, St Louis Park, MN 55426 6 Page 27 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject: dgslp@comcast.net Friday, February 25, 2022 8:17 PM SLP Police Department Tethered drone program -yes! CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. I think the idea of using drones for police and fire work is excellent. It will allow you to gather information without risking human life. I can think of many cases where a drone would be helpful in search and rescue, fire, and patrol situations. let's be safe out there! 5 Page 28 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent: To: Subject: KIMBERLY ANDERSON <NZALLEN@msn.com> Saturday, February 26, 2022 8:15 AM SLP Police Department I support the use of unmanned aerial systems (UAS) in SLP CAUTION: This email originated from outside of the organization. Do not dick links or open attachments unless you recognize the sender and know the content is safe. Kimberly Anderson 3248 Yosemite Avenue South SLP 55416 4 Page 29 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent To: Subject: Linda Trummer <lindatrummer@msn.com> Tuesday, March 1, 2022 2:28 AM SLP Police Department PAC's request for input regarding Drone CAUTION: This email originated from outside of the organization. Do not dick links or open attachments unless you recognize the sender and know the content is safe. I am in favor of adding a Drone to the PD' s arsenal of tools. However, there must be very well-crafted criteria in place as to when and under what circumstances it can be used. That criteria should be developed with community input. I realize the use of drones is likely more commonplace than I even care to know by government and private entities. However, we are living in a time of general mistrust between the public and police. We don't want to provoke those fragile relationships by anyone perceiving that our constitutional rights are being violated by the police. Thanks for the opportunity to give input. Linda Trummer Sent from Mail for Windows 3 Page 30 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent To: Subject tawsif mahmud <tawsifmahmud89@gmail.com> Tuesday, March 1, 2022 9:38 AM SLP Police Department Comments on Drone Program CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hello, I am a citizen of the city of Saint Louis Park and a member of the PMAC as well. I personally think and strongly support the use of technology to help and make life better for the community. But I do have some concern as technology used in the wrong way or by being in the hands of the wrong person can have a significantly dangerous impact. •There must be sufficient sustainable cause. Any tendency for the secret world to encroach into areas unjustified by the scale of potential harm to national interests has to be checked. •There must be integrity of motive. No hidden agendas: the integrity of the whole system throughout the intelligence process must be assured, from collection to analysis and presentation. •There must be right and lawful authority. There must be the right level of sign-off on sensitive operations, with accountability up a recognized chain of command to permit effective oversight. •There should be significant efforts and oversight to ensure non-discrimination. How is the city or the Police planning to address some of these concerns? Thanks, Tawsif Mahmud 507-351-4098 2 Page 31 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Mikael Garland From: Sent To: Subject: Hanna W <naege026@umn.edu> Tuesday, March 1, 2022 9:1 O PM SLP Police Department Drones Opinion CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good evening, I am writing to express my strong opposition to the use of drones by the St.Louis Park police department. I am a citizen of the city, and I cannot support this idea. The use of drones is an infringement on personal privacy, and their use does not benefit our community. We already have an overabundance of police officers -confirmed by the staffing notes in the policy advisory commission meetings. Additionally, the majority of crimes committed in our city are not dangerous crimes, but crimes against property. These sorts of crimes do not incur the need to use a privacy-reducing measure like using drones. It is a dangerous step to take, and one that does not encourage community building or transparency. If your goals are to better serve the community, this is not the way. Thank you, Hanna Williams Ward4 1 Page 32 Study session meeting of March 28, 2022 (Item No. 4) Title: Unmanned aerial systems (UAS) for public safety use. Meeting: Study session Meeting date: March 28, 2022 Written report: 5 Executive summary Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance Recommended action: None at this time. EDA/city council will discuss and provide feedback on the policy later this year as part of the systems approach to study session discussions. Policy consideration: Does the proposed policy meet the intent of the EDA/council? Summary: In an effort to advance the city’s strategic priorit y of being a leader in racial equity and inclusion, the EDA/city council directed staff to develop a diversity, equity, and inclusion policy to promote the inclusion of historically under-represented persons and businesses in development projects receiving public financial assistance through the Economic Development Authority (EDA) or other city funds. The city recognizes the importance of creating opportunities for women, communities of color, and indigenous people to participate more equitably in the workforce and benefit from wealth building opportunities. It is recognized that historical and institutional discrimination and racism has disproportionately created challenges for women and BIPOC/non-white individuals an d businesses in employment and business opportunities which have resulted in significant disparities in wealth building opportunities. The goal of this policy is to address these disparities and to promote inclusive and equitable opportunities for women and BIPOC/non-white individuals and businesses to build wealth. The policy provides specific goals for the hiring of women and BIPOC/non-white business organizations, business enterprises, workforce, and peripheral enterprises for all new and renovated commercial and multifamily residential buildings receiving EDA /city financial assistance, as outlined in the policy. Financial or budget considerations: The cost of implementing and tracking race, equity, and inclusion goal requirements adds increased overhead expenses to project costs. While DEI policies are becoming more commonplace in the development market, the EDA/city’s policy includes the tracking of women and BIPOC/non-white w orkforce, which is above and beyond what most other jurisdictions currently require . This metric will likely add some additional project costs which will be included in any financial analysis performed by the city’s financial consultant. Additionally, tracking and monitoring of this policy will involve increased EDA staff time. 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 Diversity, Equity and Inclusion Policy Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director/EDA executive director Approve d by: Kim Keller, city manager City council meeting of March 28, 2022 (Item No. 5) Page 2 Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance Discussion Background: Based on a request from the EDA /city council, staff drafted a Diversity Equity and Inclusion (DEI) Policy which promotes the inclusion of under-represented persons and businesses in development projects to meet the city council’s strategic priority of being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. The DEI Policy was reviewed by the city attorney and EDA legal counsel. Based on their legal advice, the DEI Policy is not able to include policy requirements, but rather establishes policy goals to create more opportunities in the development community for historically under- represented women and BIPOC/non-white individuals and businesses. Similar to other EDA/city policies, the development must comply with the DEI Policy in effect at the time of the application date of planning and zoning applications and/or signed preliminary development agreements. EDA staff worked with the local development community, including market rate and non-profit developers currently working on projects in St. Louis Park, to develop the DEI Policy . Specifically, input on the policy was obtained from Sherman Associates and their contractor Frana, which is developing the Beltline Station Development ; Opus Development Group which is developing and building Beltline Residences; Saturday Properties and Anderson Companies which are jointly developing the Wooddale Station development; Project for Pride in Living and their contractor for the Union Park Flats development; and Common Bond which is developing the Rise on 7 project. Present considerations: The policy sets goals for the hiring of women and BIPOC/non-white business organizations, business enterprises, workforce, and peripheral enterprises for all new and renovated commercial and multifamily residential buildings receiving $200,000 or more in EDA /city financial assistance. This threshold was determined so as not to curtail smaller fixup loans and grants provided by the EDA/city to small businesses and homeowners which typically involve few vendors and tight time schedules. The goals for business organizations and business enterprises are similar to th e goals established in Minnesota Housing’s Minority or Women Business Enterprises Compliance Guide. These goals are increasingly becoming well known and more widely implemented by Twin Cities area developers and contractors. As a result, area companies have developed systems for tracking and reporting these metrics for metro cities and state agencies. The policy includes goals for workforce and peripheral enterprises to include opportunities for women and BIPOC/non-white construction workers and other businesses hired by the developer in connection with the development (attorneys, financial consultants, accountants, etc.). The workforce and peripheral enterprise goals are unique to developments in St. Louis Park . The above developers reviewed and provided input on these goals and expressed willingness to track and report on these metrics . They also indicated that implementation of these goals would likely add to the overall costs of projects in the city. Developers will be made aware of the policy goals in the initial contact stages so that they can factor these costs into their proposed project proformas. City council meeting of March 28, 2022 (Item No. 5) Page 3 Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance Participation Goals Women BIPOC/non-white Business Organization 10% 13% Business Enterprises 6% 13% Workforce 6% 32% Peripheral Enterprises 6% 13% The above goals for business organization and business enterprises were established to be consistent with those set by Minnesota Housing. The goals for workforce and peripheral enterprises are recommended based on staff’s conversations with the local development community. These goals, particularly for the percentage of women in the workforce category, are aspirational. The developer will be required to use reasonable efforts to meet these business enterprise, workforce, and peripheral enterprise participation goals in conjunction with the development and will be required to track those efforts. Participatio n goals will be applied to the developer’s project as a whole and pertain to the total amount of construction and related contracts. A development agreement will be executed between the EDA and the developer which will formally set forth the requirements related to DEI Policy and achieving diversity, equity, and inclusion goals. Approved Businesses: The policy itself does not specif y the lists of verified women and BIPOC/Non-white businesses to which developers will be referred but will be included in the policy’s user guide. Two lists have been identified and have been requested to be included by developers. These lists include the Disadvantaged Business Enterprises (DBE) list found on the Minnesota Unified Certification Program we bsite (https://mnucp.org/), and businesses approved by the Central (Cert) Certification Program, which is a small business certification program recognized by Hennepin County, Ramsey County, the City of Minneapolis, and the City of St. Paul. The Cert list is found online at www.cert.smwbe.com. Although other lists are available, it was determined that these two lists are considered more reliable as they provide the names of businesses that have been vetted and certified by other agencies and are consistently updated. The MNUCP DBE program is for “business owners that are socially and economically disadvantaged. Women and African Americans, Hispanics, Native Americans, Asian -Pacific and Subcontinent Asian Americans are presumed to be socially and economically disadvantaged.” This program also may qualify other individuals as socially and economically disadvantaged on a case -by-case basis. Per the website, “to be regarded as economically disadvantaged, an individual must have a personal net worth that does not exceed $1.32 million. To be seen as a small business, a firm must meet Small Business Administration size criteria and have average annual gross receipts not to exceed $23.98 million when averaged over a three -year period. The owner must have technical competence and experience directly related to the type of work in which certification is being sought and must be a United States citizen or a lawfully admitted permanent resident of the United States.” To be considered an eligible wom e n or BIPOC/non-white owned business in the CERT program, the business must be at least 51% owned by one or more women or BIPOC/Non-white persons City council meeting of March 28, 2022 (Item No. 5) Page 4 Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance and has its management and daily business operations controlled by one or more women or BIPOC/Non-white persons who own it. Additionally, the business must be at least 51% owned by one or more native or naturalized U.S. citizens , or lawfully admitted permanent residents of the United Stations; is not a broker or manufacturer’s representative , does not operate as a franchisee or under a franchise agreement, and is not a business in which the owner is also owner or part owner of one or more businesses that dominate the same field of operation; performs a commercially useful function; and has been in operation for at least one year, or in operation for less than one year and is able to provide documentation showing that it has an established record of generating revenue . Reporting: The policy establishes a quarterly reporting period, which commences at the date a development agreement is entered into until six months following the city-issued certificate of occupancy. The policy lists the minimum reporting categories including: total number of construction -related business enterprises and the percentage of those that are women and/or BIPOC/non-white owned, and the percentage of total development dollars paid to those business enterprises; total number of construction workforce employees and the percentage of total women and/or BIPOC/non-white employees and the percentage of total construction hours women and BIPOC/non-white workforce employees worked; the list of peripheral enterprises and the percent of women and BIPOC/non-white employees; and a summary of efforts made to reach the participation goals if the goals were not met. Next steps: The policy will take effect March 29, 2022, for all new ly submitted projects requesting financial assistance from the EDA/city. The policy does not apply to applications previously submitted or projects not requesting financial assistance. A presentation on this including an implementation update will take place in our regular cycle through our system discussions later this year. If, during implementation, we have unforeseen impacts, we’ll bring this to the EDA/Council more quickly. Dates on the Housing and Race Equity Systems are yet to be set. Effective March 29, 2022 SA285\3\761965.v2 Diversity, Equity, and Inclusion Policy This policy promotes the inclusion of under-represented persons and businesses in development projects receiving public financing through the Economic Development Authority (“EDA”) and City of St. Louis Park to meet the city council’s strategic priority of being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. The city recognizes the importance of creating opportunities for communities of color and indigenous people to participate more equitably in the workforce and benefit from wealth building opportunities. It is recognized that historical and institutional discrimination and racism has disproportionately created challenges for women and Black, Indigenous, and People of Color (BIPOC)/non-white communities. Women and BIPOC/non-white individuals and businesses have faced discrimination and disadvantages in employment and business opportunities which have resulted in significant disparities in wealth building opportunities. The goal of this policy is to address these disparities and to promote inclusive and equitable opportunities for women and BIPOC/non-white individuals and businesses to build wealth. The goals set forth in this policy further the city’s racial equity priorities. These goals are intended to provide an incentive for developers to seek greater participation by women and the BIPOC community in development projects funded with EDA /city financial assistance. These goals are included in the list of minimum qualifications for projects seeking tax increment financing (TIF) assistance from the St. Louis Park Economic Development Authority. This policy shall be used in conjunction with the established Diversity, Equity, and Inclusion Policy User Guide which provides further guidance on reporting requirements and EDA/city expectations. Page 5 City council meeting of March 28, 2022 (Item No. 5) Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance SA285\3\761965.v2 Effective March 29, 2022 1.Applicability and minimum project size New construction, renovation or reconstruction projects receiving EDA/city financial assistance This policy applies to development projects that receive $200,000 or more in financial assistance from the EDA/city and includes: a)New construction, renovation, or reconstruction of commercial developments b)New construction, renovation, or reconstruction of Industrial developments c)New construction, renovation, or reconstruction of multi-family rental or for-sale housing developments d)New construction, renovation, or reconstruction of mixed -use developments The development must comply with the Diversity, Equity, and Inclusion Policy in effect at the time of the application date of planning and zoning applications and/or a signed preliminary development agreement. If building permits have not been issued within two years of application approvals or the building permits have expired or been canceled, the project must comply with updates to this policy. The EDA/city council may grant an extension of time beyond two years if a written request for a time extension is submitted to staff and approved by the economic development authority and/or city council. Requests for extension of time must be submitted to staff before the termination date. 2.Definitions A)Financial Assistance: The Diversity, Equity & Inclusion Policy applies to all new and renovated commercial and multifamily residential buildings receiving EDA/city financial assistance. Financial Assistance is defined as funds derived from EDA/city and includes, but is not limited to, the following: 1)Tax Increment Financing (TIF) and/or Tax Abatement 2)Land write-downs 3)EDA grants and loans 4)Affordable Housing Trust Fund (AHTF) grants and loans 5)Community Development Block Grant (CDBG) funds 6)Housing Rehabilitation funds 7)Revenue Bonds (private activity bonds are negotiable) 8)Housing Authority (HA) Funds 9)City of St. Louis Park funds Page 6 City council meeting of March 28, 2022 (Item No. 5) Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance SA285\3\761965.v2 Effective March 29, 2022 B)Business Organization: the developer’s business organization, including subsidiaries and parent company. C)Business Enterprises: the contractor(s) and sub-contractor(s) hired by or on behalf of the developer for the project. D)Workforce: Employees of contractor(s) and sub-contractor(s) working on the Project E)Peripheral Enterprise(s): consultants and other businesses hired by the developer, or with whom the developer has a relationship, in conjunction with the project. This includes, but is not limited to, attorneys, financial consultants, financial institutions, suppliers, accountants, etc. F)Project: The development project as defined in the development agreement between the EDA and the developer. 3.Diversity, Equity, and Inclusion participation goals General requirements A development that is subject to this policy shall comply with the following diversity, equity, and inclusion participation business and workforce participation goals: Participation Goals Women BIPOC/non-white Business Organization 10% 13% Business Enterprises 6% 13% Workforce 6% 32% Peripheral Enterprises 6% 13% The developer will be required to use reasonable efforts to meet these business enterprise, workforce, and peripheral enterprise participation goals for women and Black, Indigenous and People of Color (BIPOC)/non-white in conjunction with construction, renovation, or reconstruction of the development. Participation goals will be applied to the developer’s project as a whole and pertain to the total amount of construction and related contracts. Developer must 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 BIPOC/non-white about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance report(s). Refer to the Diversity, Equity, and Inclusion Policy User Guide for more information regarding performance and compliance. Page 7 City council meeting of March 28, 2022 (Item No. 5) Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance SA285\3\761965.v2 Effective March 29, 2022 4.Agreements A development agreement shall be executed between the EDA and the developer, in a form approved by the EDA legal counsel, which formally sets forth development approval and requirements to achieve diversity, equity, and inclusion goals in accordance with this policy. 5.Reporting Requirements The developer will be required to provide written reports to the EDA on a quarterly basis from the date the development agreement is entered into until six months after the project receives its certificate of occupancy from the city. The established Diversity, Equity, and Inclusion Policy User Guide provides further guidance on reporting requirements. At a minimum, the reports must include the following information: 1)Total number of construction-related business enterprises (e.g. general contractor, subcontractors) with a)percentage of women-owned enterprises b)percentage of BIPOC/non-white-owned enterprises c)percentage of total development dollars paid to women-owned enterprises d)percentage of total development dollars paid to BIPOC/non-white -owned enterprises 2)Total number of construction workforce employees with a)percentage of women construction workforce employees b)percentage of BIPOC/non-white construction workforce employees c)percentage of total construction hours women constructio n workforce employees worked d)percentage of total construction hours BIPOC/non-white construction workforce employees worked 3)List of peripheral enterprises with self-reported total number of employees, percentage of women and percentage of BIPOC/non-white employees 4)Summary of efforts made to reach participation goals and ongoing efforts to reach and/or maintain participation goals Page 8 City council meeting of March 28, 2022 (Item No. 5) Title: Diversity, equity and inclusion policy in development projects receiving public financial assistance Meeting: Study session Meeting date: March 28, 2022 Written report: 6 Executive summary Title: February 2022 monthly financial report Recommended action: No action is required. Policy consideration: Monthly financial reporting is part of our financial management policies. Summary: The monthly financial report provides an overview of general fund revenues and departmental expenditures comparing them to budget throughout the year. Financial or budget considerations: Actual e xpenditures should generally be at about 17% of the annual budget at the end of February . G eneral f und expenditures are running approximately 3% under the adopted annual budget through February at about 14%. The only departmental expenditure variance is organized recreation at 23%, which is a temporary overage due to payment of the annual community education contribution of $187,400 to the school district in February. This payment is consistent with prior years. Revenues are harder to measure in the same way since they aren’t spread as evenly during the year, examples of which include property taxes and State aid payments. License and permit revenue s are already at 42% of budget because the majority of the business and liquor license fees have been received and there have been several larger commercial permits issued, including the permit for Beltline Residences in February. The other income of 32% of budget is private activity revenue bond fees from Park Nicollet. Strategic priority consideration: Not applicable. Supporting documents: Summary of revenues and departmental expenditures – general fund Prepared by: Darla Monson, accountant Reviewed by: Melanie Schmitt, chief financial officer Approve d by: Kim Keller, city manager Summary of Revenues & Departmental Expenditures - General Fund As of February 28, 202220222022202020202021202120222022Balance YTD Budget Budget Audited Budget Unaudited Budget YTD Feb Remaining to Actual %General Fund Revenues: General Property Taxes28,393,728$ 28,635,694$ 29,601,811$ 29,446,907$ 30,532,470$ 30,532,470$ 0.00% Licenses and Permits4,660,811 5,294,310 4,621,829 5,005,440 4,750,604 1,975,072 2,775,532 41.58% Fines & Forfeits280,000 126,192 231,000 154,665 231,000 8,342 222,658 3.61% Intergovernmental1,760,082 2,061,267 1,661,549 1,772,115 1,748,770 427,596 1,321,174 24.45% Charges for Services2,273,824 1,600,806 2,013,834 2,285,919 2,284,483 136,064 2,148,419 5.96% Rents & Other Miscellaneous1,456,102 1,201,119 1,499,091 1,476,440 1,589,934 311,681 1,278,253 19.60% Transfers In2,038,338 2,049,976 2,055,017 2,032,017 2,198,477 348,830 1,849,647 15.87% Investment Earnings 210,000 486,468 200,000 (506,561) 200,000 200,000 0.00% Other Income621,280 3,442,900 593,300 606,695 526,829 170,707 356,122 32.40% Use of Fund Balance25,000 250,000 250,000 Total General Fund Revenues41,694,165$ 44,898,732$ 42,502,431$ 42,273,637$ 44,312,567$ 3,378,292$ 40,934,275$ 7.62%General Fund Expenditures: General Government: Administration1,868,599$ 1,472,421$ 1,617,882$ 1,364,823$ 2,010,605$ 156,831$ 1,853,774$ 7.80% Finance1,124,045 1,194,828 1,129,591 1,189,759 1,178,516 163,758 1,014,758 13.90% Assessing808,171 792,277 798,244 767,705 821,530 127,043 694,487 15.46% Human Resources823,209 796,088 837,736 762,448 882,849 97,588 785,261 11.05% Community Development1,571,894 1,536,657 1,576,323 1,443,087 1,606,474 229,280 1,377,194 14.27% Facilities Maintenance1,265,337 1,246,439 1,349,365 1,405,236 1,407,116 206,492 1,200,624 14.67% Information Resources1,709,255 1,596,487 1,683,216 1,650,478 1,622,619 188,356 1,434,263 11.61% Communications & Marketing828,004 710,334 970,934 801,034 974,064 144,397 829,667 14.82%Total General Government9,998,514$ 9,345,531$ 9,963,291$ 9,384,570$ 10,503,773$ 1,313,746$ 9,190,027$ 12.51% Public Safety: Police10,853,821$ 10,611,141$ 11,307,863$ 11,347,501$ 11,846,760$ 1,751,434$ 10,095,326$ 14.78% Fire Protection5,040,703 4,764,337 4,998,636 5,066,748 5,364,179 779,623 4,584,556 14.53% Building 2,696,585 2,321,664 2,571,968 2,493,832 2,712,400 403,557 2,308,843 14.88%Total Public Safety18,591,109$ 17,697,142$ 18,878,467$ 18,908,081$ 19,923,339$ 2,934,614$ 16,988,725$ 14.73% Operations: Public Works Administration273,318$ 216,899$ 249,256$ 239,769$ 255,766$ 35,735$ 220,031$ 13.97% Public Works Operations3,331,966 3,168,538 3,285,820 2,955,669 3,523,669 400,633 3,123,036 11.37% Vehicle Maintenance1,278,827 1,207,998 1,303,159 1,223,164 1,368,929 205,472 1,163,457 15.01% Engineering551,285 531,801 523,547 655,867 556,115 80,765 475,350 14.52%Total Operations5,435,396$ 5,125,236$ 5,361,782$ 5,074,469$ 5,704,479$ 722,605$ 4,981,874$ 12.67% Parks and Recreation: Organized Recreation1,637,002 1,369,309 1,639,358 1,520,420 1,769,060 410,465 1,358,595 23.20% Recreation Center2,061,394 1,864,459 2,082,697 2,198,272 2,274,043 257,016 2,017,027 11.30% Park Maintenance1,906,363 1,802,534 1,916,643 1,856,421 2,034,509 285,234 1,749,275 14.02% Westwood Nature Center748,683 606,378 736,515 652,505 794,170 108,313 685,857 13.64% Natural Resources504,143 433,362 496,497 412,015 612,110 15,175 596,935 2.48%Total Parks and Recreation6,857,585$ 6,076,042$ 6,871,710$ 6,639,633$ 7,483,892$ 1,076,204$ 6,407,688$ 14.38% Other Depts and Non-Departmental: Racial Equity and Inclusion 314,077$ 272,994$ 341,293$ 185,280$ 292,194$ 16,797$ 275,397$ 5.75% Sustainability497,484 244,655 432,043 297,217 404,890 45,080 359,810 11.13% Transfers Out4,878,845 4,450,000 Contingency and Other144,860 225,000 67,183 Total Other Depts and Non-Departmental811,561$ 662,509$ 5,877,181$ 4,999,680$ 697,084$ 61,877$ 635,207$ 8.88%Total General Fund Expenditures41,694,165$ 38,906,460$ 46,952,431$ 45,006,433$ 44,312,567$ 6,109,045$ 38,203,522$ 13.79%Study session meeting of March 28, 2022 (Item No. 6) Title: February 2022 monthly financial reportPage 2 Meeting: Study session Meeting date: March 28, 2022 Written report: 7 Executive summary Title: Body worn camera annual update Re commended action: Review the body worn camera program and revisions to policy . Policy consideration: Does council approve of the direction of the body worn camera program? Summary: Council affirmed the police department body worn camera (BWC) policy on Sept. 4, 2018, and passed Resolution 18-134 directing Chief Harcey to report back to council in six months and annually thereafter regarding: 1.General reflections and learnings from the police department on the implementation and use of BWC’s 2.Criteria tracked to include, at a minimum, hours of utilization, officer compliance, how often reports are filed to document when cameras are not turned on, how often and under what circumstances officers review footage prior to writing reports, requests to view footage and police department response 3.Any police department proposed changes or updates to the use of BWC's policy 4.Other information that would be useful to the city council and the public to help understand and evaluate this initial trial and implementation The report includes information requested by council in Resolution 18-134, based upon the use of the body worn came ras from Jan. 1, 2021, through Dec. 31, 2021. Financial or budget considerations: None at this time. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Discussion Resolution 18-134 Body-worn camera policy In-car camera policy Prepared by: Greg Weigel, police lieutenant Approved by: Mike Harcey , police chief Approve d by: Kim Keller, city manager Page 2 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update Discussion Background: The police department researched and sought community input to develop a Body Worn Camera (BWC) policy that reflects the needs of the community. Council affirmed the BWC policy on Sept. 4, 2018, and passed Resolution 18- 134 directing Chief Harcey to report back to Council in six months and annually thereafter. The police department BWC program went live on April 10, 2019, utilizing 60 body worn cameras and 19 fleet cameras. The information provided in the following section is based upon the use of the BWCs in calendar year 2021 and corresponds to the information requested by council in Resolution 18-134. 1.General reflections and learnings from the police department on the implementation and use of BWC’s. Sin ce implementation , police department staff noted the following reflections and learnings while utilizing the body worn and fleet cameras: •Use – Officers are continuing to err on the side of caution and using BWCs more often than required by policy. •Records management – The current records management system on e vidence.com has simplified our information sharing between partner agencies, city and county prosecutors. There has been no significant impact to date from public data requests. •Internal compliance audits – The trimester supervisory audits have proven to be an effective tool to ensure compliance with policy as well as comprehension of training. 2.Criteria tracked to include, at a minimum, hours of utilization, officer compliance, how often reports are filed to document when cameras are not turned on, how often and under what circumstances officers review footage prior to writing reports, requests to view footage and police department response. Since implementation in 2019, officers utilized the body worn and fle et cameras for 32,535 hours, collecting 127,198 evidence items - equaling 58 terabytes of data. In 2021, officers utilized the body worn and fleet cameras for 12,944 hours, collecting 47,925 evidence items - equaling 23 terabytes of data. Officers responded to 51,620 calls for service in 2021 and wrote 7,894 reports during that same time period. Officers self - reported their failures to activate their body worn cameras when required 14 times by completing the report required by policy. In 2021, supervisors conducted 73 individual audits covering 730 random videos and found one additional, unreported time that an officer failed to activate their body worn camera when required by policy (0.13% audit failure rate). In total, when compared to the number of body-worn and fleet videos for 2021, officers complied with policy 99.97% of the time. In addition, officers reported they reviewed their video 193 times (0.4%) prior to completing their police reports . The police department received six public requests for video in 2021. Two req uests were fulfilled by viewing on site and four were sent digital copies. 3.Any police department proposed changes or updates to the use of BWC's policy. The police department completed the first audit of its BWC program in March 2021. LOGIS was contracted to perform the audit. Page 3 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update Minnesota Statute §13.825 requires law enforcement agencies that use body- worn cameras to conduct biennial independent audits of the data to determine whether data are appropriately classified according to this section, how the data are used, whether the data are destroyed as required under this section, and to verify compliance with the law. Law enforcement must forward a report summarizing the results of the audit to the governing body within the jurisdiction and to the Legislative Commission on Data Practices and Personal Data Privacy. LOGIS completed their audit and found the police department to be compliant with statute and reported their results as required. LOGIS’ only recommendation was the following addition to policy: Notification will be made to the MN Bureau of Criminal Apprehension within ten days of obtaining new surveillance technology that expands the type or scope of the agency's portable recording system. The recommended addition was made to the BWC policy on page 13. Resolution No. 18-134 Resolution prescribing the reporting requirements of the city manager to the city council regarding the St. Louis Park police departments use of body worn cameras Whereas, on September 4, 2018 the city council affirmed the body worn camera (BWC) policy and directed staff to continue to move forward with the implementation of the BWC initiative; and Whereas, transparency and accountability regarding the police departments use of BWC's is important in order to help maintain the public's trust in the department; and Whereas, the city of St. Louis Park values continuous learning and improvement as it goes about providing services to the community. Now therefore be it resolved by the city council of the city of St. Louis Park that in addition to the audit and reporting requirements required by state statute for an agencies use of BWC's, the city manager, with the assistance of the police chief, is directed to provide a report to the city council within six months of the city council's affirmation of the BWC policy and annually thereafter that includes, but is not limited to, the following: •General reflections and learnings from the police department on the implementation and use of BWC's; •Criteria tracked to include, at a minimum, hours of utilization, officer compliance, how often reports are filed to document when cameras are not turned on, how often and under what circumstances officers review footage prior to writing reports, requests to view footage and police department response; •Any police department proposed changes or updates to the "Use of BWC's Policy"; •Other information that would be useful to the city council and the public to help understand and evaluate this initial trial and implementation." administration: ted by the City Council September 4, 2018 Thomas K. Harmening, City Manager Attest: Page 4 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 1 City of St. Louis Park, Minnesota  Use of Body‐Worn Cameras Policy  Purpose  The primary purpose of using body‐worn‐cameras (BWCs) is to:  A.Capture evidence arising from a police‐citizen contact. B.Assist with accurate report writing. C.Allow for transparency and accountability in policing and protect the civil rights of the community. This policy sets forth guidelines governing the use of BWCs and administering the data that  results. Compliance with these guidelines is mandatory, but it is recognized that officers must  also attend to other primary duties and the safety of all concerned, sometimes in circumstances  that are tense, uncertain, and rapidly evolving.   Objectives  The St. Louis Park Police Department has adopted the use of portable audio/video recorders to  accomplish the following objectives:  A.To enhance officer safety. B.To document statements and events during the course of an incident. C.To enhance the officer’s ability to document and review statements and actions for both internal reporting requirements and for courtroom preparation/presentation. D.To preserve audio and visual information for use in current and future investigations. E.To enhance the public trust by preserving factual representations of officer‐citizen interactions in the form of audio‐video recording. F.To promote the civility of police‐civilian encounters G.To provide objective evidence to help resolve civilian complaints against police officers and the City of St. Louis Park. H.To protect the civil rights of the community. I.To assist with training and evaluation of officers. Policy  It is the policy of this department to authorize and require the use of department‐issued BWCs  as set forth below, and to administer BWC data as provided by law.  Page 5 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 2 Scope  This policy governs the use of BWCs in the course of official duties. It does not apply to the use  of squad‐based (dash‐cam) recording systems. The Chief of Police or the chief’s designee may  supersede this policy by providing specific instructions for BWC use to individual officers, or  providing specific instructions pertaining to particular events or classes of events, including but  not limited to political rallies and demonstrations where their use might be perceived as a form  of political or viewpoint‐based surveillance. The chief or designee may also provide specific  instructions or standard operating procedures for BWC use to officers assigned to specialized  details, such as carrying out duties in courts or guarding prisoners or patients in hospitals and  mental health facilities. In the event the chief does supersede policy by providing specific  instructions for use, a written report will be submitted to the City Manager.  Definitions  The following phrases have special meanings as used in this policy:  A.MGDPA or Data Practices Act refers to the Minnesota Government Data Practices Act, Minn. Stat. § 13.01, et seq. B.Records Retention Schedule refers to the General Records Retention Schedule for Minnesota Cities. C.Law enforcement‐related information means information captured or available for capture by use of a BWC that has evidentiary value because it documents events with respect to a stop, arrest, search, citation, or charging decision. D.Evidentiary Value means that the information may be useful as proof in a prosecution or defense of a criminal action, related civil or administrative proceeding, further investigation of an actual or suspected criminal act, or in considering an allegation against a law enforcement agency or officer. E.General Citizen Contact means an informal encounter with a citizen that is not and does not become law enforcement‐related or adversarial, and a recording of the event would not yield information relevant to an ongoing investigation. Examples include, but are not limited to, assisting a motorist with directions, summoning a  tow truck, or receiving generalized concerns from a citizen about crime trends in his or her neighborhood. F.Adversarial means a law enforcement encounter with a person that becomes confrontational, during which at least one person expresses anger, resentment, or hostility toward the other, or at least one person directs toward the other verbal conduct consisting of arguing, threatening, challenging, swearing, yelling, or shouting. Encounters in which a citizen demands to be recorded or initiates recording on his or her own are deemed adversarial. Page 6 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 3 G.Unintentionally recorded footage is a video recording that results from an officer’s inadvertence or neglect in operating the officer’s BWC, provided that no portion of the resulting recording has evidentiary value. Examples of unintentionally recorded footage include, but are not limited to, recordings made in station house locker rooms, restrooms, and recordings made while officers were engaged in conversations of a non‐ business, personal nature with the expectation that the conversation was not being recorded. H.Official duties, for purposes of this policy, means that the officer is on duty and performing authorized law enforcement services on behalf of this agency. Training  All users of a BWC will be trained on the cameras operation and this policy prior to deploying  one.  Use and Documentation  A.Officers may use only department‐issued BWCs in the performance of official duties for this agency or when otherwise performing authorized law enforcement services as an employee of this department. B.All officers working uniform patrol, uniform special details, traffic duties, and uniform school resource officer duties shall use a BWC unless permission has been granted by a supervisor to deviate from this clause. Plain clothes investigators/officers and administrators are allowed to use BWC when interacting with citizens, when appropriate. C.Officers who have deployed a BWC shall operate and use them consistent with this policy. Officers shall conduct a function test of their issued BWCs at the beginning of each shift to make sure the devices are operating properly. Officers noting a malfunction during testing or at any other time shall promptly report the malfunction to the officer’s supervisor. As soon as is practical, the malfunctioning BWC shall be put down for service and the officer should deploy a working BWC. If a BWC malfunctions while recording, is lost, or damaged the circumstances shall be documented in a police report and a supervisor shall be notified.  Supervisors shall take prompt action to address malfunctions and document the steps taken in writing. D.Officers should wear their BWC in a conspicuous manner at the location on their body and manner specified in training. E.Officers must document BWC use and non‐use as follows: Page 7 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 4 1.Whenever an officer makes a recording, the existence of the recording shall be documented in the records management system, an incident report, or a citation if completed. 2.Whenever an officer fails to record an activity that is required to be recorded under this policy or captures only a part of the activity, the officer must document the circumstances and reasons for not recording in the records management system or incident report. Supervisors shall review these reports and initiate any corrective action deemed necessary. F.The department will maintain the following records and documents relating to BWC use, which are classified as public data: 1.The total number of BWCs owned or maintained by the agency; 2.A daily record of the total number of BWCs actually deployed and used by officers and, if applicable, the precincts in which they were used; 3.The total amount of recorded BWC data collected and maintained; and 4.This policy, together with the Records Retention Schedule. General Guidelines for Recording   A.This policy is not intended to describe every possible situation in which the BWC should be activated, although there are many situations where use of the BWC is appropriate. Officers should activate the BWC any time the user believes it would be appropriate or valuable to record an incident. B.Officers shall activate their BWCs when anticipating that they will be involved in, become involved in, or witness other officers of this agency involved in a pursuit, Terry frisks, a traffic stop of a motorist, an investigative stop of a pedestrian, searches, seizures, arrests, response to resistance incidents, any encounter that becomes in any way hostile,  confrontational, or adversarial, and during other activities likely to yield information having evidentiary value. However, officers need not activate their cameras when it would be unsafe, impossible, or impractical to do so, but such instances of not recording when otherwise required must be documented as specified in the Use and Documentation guidelines, part (E)(2) (above). C.Officers have discretion to record or not record general citizen contacts. D.Officers will wear their camera in a conspicuous manner as specified in training. Officers have no affirmative duty to inform people that a BWC is being operated or that the Page 8 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 5 individuals are being recorded. Officers may make an announcement that BWCs are  being used.  E.Once activated, the BWC should continue recording until the conclusion of the incident or encounter, or until it becomes apparent that additional recording is unlikely to capture information having evidentiary value. The supervisor having charge of a scene shall likewise direct the discontinuance of recording when further recording is unlikely to capture additional information having evidentiary value. If the recording is discontinued while an investigation, response, or incident is ongoing, officers shall state the reasons for ceasing the recording on camera before deactivating their BWC. If circumstances change, officers shall reactivate their cameras as required by this policy to capture information having evidentiary value. Any decision to discontinue recording shall be made with respect to the nine policy objectives. F.Officers shall not intentionally block the BWC’s audio or visual recording functionality to defeat the purposes of this policy. This does not prevent an officer from temporarily blocking the visual recording while ensuring audio data is collected during an encounter with persons who are nude or when sensitive human areas are exposed. G.Notwithstanding any other provision in this policy, officers shall not use their BWCs or any other device to record other agency personnel during non‐enforcement related activities, such as during pre‐ and post‐shift time in locker rooms, during meal breaks, or during other private conversations, unless recording is authorized as part of a criminal investigation. Special Guidelines for Recording  Officers may, in the exercise of sound discretion, determine:  A.To use their BWCs to record any police‐citizen encounter if there is reason to believe the recording would potentially yield information having evidentiary value, unless such recording is otherwise expressly prohibited. B.To use their BWCs to take recorded statements from persons believed to be victims of and witnesses to crimes, and persons suspected of committing crimes, considering the needs of the investigation and the circumstances pertaining to the victim, witness, or suspect. The preferred method of recording a formal statement from a victim, witness or suspect is using currently approved audio recording devices/software compatible with records management dictation software. In addition,   Page 9 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 6 C.Officers need not record persons being provided medical care unless there is reason to believe the recording would document information having evidentiary value. When responding to an apparent mental health crisis or event, BWCs shall be activated as necessary to document any response to resistance and the basis for it, and any other information having evidentiary value, but need not be activated when doing so would serve only to record symptoms or behaviors believed to be attributable to the mental health issue. D. Officers should use their BWC and/or squad‐based audio/video systems to record their transportation and the physical transfer of persons in their custody to hospitals, detox and mental health care facilities, juvenile detention centers, and jails, but otherwise should not record in these facilities unless the officer anticipates witnessing a criminal event or being involved in or witnessing an adversarial encounter or response to resistance incident. School Resource Officers  The St. Louis Park Police Department recognizes that the duties and working environment for  School Resource Officers (SRO) are unique within policing. It recognizes the SROs are required  to maintain school safety while keeping the sanctity of the learning environment that the  school provides. SROs are expected to continuously build trusting relationships with students  and staff. SROs often have impromptu interventions with students to deescalate arguments  and/or conflicts. It is with this understanding that the St. Louis Park Police Department provide  special guidelines for SROs and their BWC.  The BWC should be activated in any of the following situations:  (a)When summoned by any individual to respond to an incident where it is likely that law enforcement action will occur when you arrive. (b)Any self‐initiated activity where it is previously known that you will make a custodial arrest. (c)Any self‐initiated activity where it is previously known that you’re questioning / investigation will be used later in a criminal charge. (d)When feasible an SRO shall activate the BWC when the contact becomes adversarial or the subject exhibits unusual behaviors. Nothing in the policy undermines the fact that in many instances SROs are suddenly forced to  take law enforcement action and have no opportunity to activate the BWC. It is also recognized  that SROs have private (confidential) conversations with juveniles. It is not always appropriate  to record these conversations as it diminishes the trust between the individual and the SRO.  Page 10 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 7 Downloading and Categorizing Data  A.Each officer using a BWC is responsible for transferring or assuring the proper transfer of the data from their camera to the BWC server by the end of that officer’s shift. However, if the officer is involved in a shooting, in‐custody death, or other law enforcement activity resulting in death or great bodily harm, a supervisor or investigator shall take custody of the officer’s BWC and consult with their supervisor. B.Officers shall categorize the BWC data files of each video capture and should consult with a supervisor if in doubt as to the appropriate category. The selected category(ies) shall determine the retention times per the general records retention schedule established by the Minnesota Clerks and Finance Officers Association (MCFOA). C.In addition, officers shall categorize each file appropriately, in the manner specified in training, with the appropriate category to indicate the information it contains. Some data subjects may have rights under the MGDPA limiting disclosure of information about them. These individuals include: 1.Victims and alleged victims of criminal sexual conduct and sex trafficking. 2.Victims of child abuse or neglect. 3.Vulnerable adults who are victims of maltreatment. 4.Undercover officers. 5.Informants. 6.When the video is clearly offensive to common sensitivities. 7.Victims of and witnesses to crimes, if the victim or witness has requested not to be identified publicly. 8.Individuals who called 911, and services subscribers whose lines were used to place a call to the 911 system. 9.Mandated reporters. 10.Juvenile witnesses, if the nature of the event or activity justifies protecting the identity of the witness. 11.Juveniles who are or may be delinquent or engaged in criminal acts. Page 11 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 8 12.Individuals who make complaints about violations with respect to the use of real property. 13.Officers and employees who are the subject of a complaint related to the events captured on video. 14.Other individuals whose identities the officer believes may be legally protected from public disclosure. D.Category and flag designations may be corrected or amended based on additional information. Administering Access to BWC Data  A.Data subjects. Under Minnesota law, the following are considered data subjects for purposes of administering access to BWC data: 1.Any person or entity whose image or voice is documented in the data. 2.The officer who collected the data. 3.Any other officer whose voice or image is documented in the data, regardless of whether that officer is or can be identified by the recording. B.BWC data is presumptively private. BWC recordings are classified as private data about the data subjects unless there is a specific law that provides differently. As a result: 1.BWC data pertaining to people is presumed private, as is BWC data pertaining to businesses or other entities. 2.Some BWC data is classified as confidential (see C. below). 3.Some BWC data is classified as public (see D. below). C.Confidential data. BWC data that is collected or created as part of an active criminal investigation is confidential. This classification takes precedence over the “private” classification listed above and the “public” classifications listed below. D.Public data. The following BWC data is public: Page 12 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 9 1.Data documenting the discharge of a firearm by a peace officer in the course of duty, other than for training or the killing of an animal that is sick, injured, or dangerous. 2.Data that documents the use of force by a peace officer that results in substantial bodily harm. 3.Data that a data subject requests to be made accessible to the public, subject to redaction. Data on any data subject (other than a peace officer) who has not consented to the public release must be redacted [if practicable]. In addition, any data on undercover officers must be redacted. 4.Data that documents the final disposition of a disciplinary action against a public employee. However, if another provision of the Data Practices Act classifies data as private or  otherwise not public, the data retains that other classification. For instance, data that  reveals protected identities under Minn. Stat. § 13.82, subd. 17 (e.g., certain victims,  witnesses, and others) should not be released even if it would otherwise fit into one of  the public categories listed above.  E.Access to BWC data by non‐employees. Officers shall refer members of the media or public seeking access to BWC data to the administrative lieutenant or their designee, who shall process the request in accordance with the St. Louis Park Police Department’s applicable processes and policies and other governing laws. In particular: 1.An individual shall be allowed to review recorded BWC data about themselves and other data subjects in the recording, but access shall not be granted: a.If the data was collected or created as part of an active investigation. b.To portions of the data that the agency would otherwise be prohibited by law from disclosing to the person seeking access, such as portions that would reveal identities protected by Minn. Stat. § 13.82, subd. 17. 2.Unless the data is part of an active investigation, an individual data subject shall be provided with a copy of the recording upon request, but subject to the following guidelines on redaction: a.Data on other individuals in the recording who do not consent to the release must be redacted. b.Data that would identify undercover officers must be redacted. Page 13 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 10 c.Data on other officers who are not undercover, and who are on duty and engaged in the performance of official duties, may not be redacted. F.Access by peace officers and law enforcement employees. No employee may have access to the department’s BWC data except for legitimate law enforcement or data administration purposes: 1.Officers may access, share, view and download stored BWC video only when there is a business need for doing so, including the need to defend against an allegation of misconduct or substandard performance. Officers may review video footage of an incident in which they were involved prior to preparing a report, giving a statement, or providing testimony about the incident. Officers shall not use the fact that a recording was made as a reason to write a less detailed report. 2.Personal devices shall not be used to capture, record, transfer, store or view any BWC videos, photos or other evidence. 3.Supervisors may view recordings at any time they are making inquiry into an alleged complaint, performance issue, or policy violation. 4.Agency personnel are prohibited from accessing BWC data for non‐business reasons and from sharing the data for non‐law enforcement related purposes, including but not limited to uploading BWC data recorded or maintained by this agency to public and social media websites. All incidents of access to BWC data are digitally logged. Allegations of inappropriate access to BWC data will be investigated and based on the finding, discipline may result. 5.Employees seeking access to BWC data for non‐business reasons may make a request for it in the same manner as any member of the public. G.Other authorized disclosures of data. Officers may display portions of BWC footage to witnesses as necessary for purposes of investigation as allowed by Minn. Stat. § 13.82, subd. 15, as may be amended from time to time. These displays will generally be limited in order to protect against the incidental disclosure of individuals whose identities are not public. Any displays will take place at the St. Louis Park Police Department with the approval of a supervisor. Protecting against incidental disclosure could involve, for instance, showing only a portion of the video, showing only screen shots, muting the audio, or playing the audio but not displaying video. In addition, 1.An officer may request a supervisor respond to the scene and request approval for a display to take place outside the St. Louis Park Police Department. Page 14 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 11 2.BWC data may be shared with other law enforcement agencies only for legitimate law enforcement purposes that are documented in writing at the time of the disclosure. 3.BWC data shall be made available to prosecutors, courts, and other criminal justice entities as provided by law. Data Security Safeguards   A.Department members shall not intentionally edit, alter, or erase any BWC recording unless otherwise expressly authorized by the Chief of Police or the Chief’s designee. B.As required by Minn. Stat. § 13.825, subd. 9, as may be amended from time to time, this agency shall obtain an independent biennial audit of its BWC program. Agency Use of Data  A.To ensure compliance with this policy and to identify any performance areas in which additional training or guidance is required supervisors will review each officer’s BWC recordings during each officer’s trimester evaluation or more frequently if there is reason to do so. B.In addition, supervisors and other assigned personnel may access BWC data for the purposes of reviewing or investigating a specific incident that has given rise to a complaint or concern about officer misconduct or performance. C.When a video is accessed or reviewed via Evidence.com, a notation shall be entered into the “Notes” section of the screen stating the reason for access. D.Nothing in this policy limits or prohibits the use of BWC data as evidence of misconduct or as a basis for discipline. E.Officers should contact their supervisors to discuss retaining and using BWC footage for training purposes. Officer objections to preserving or using certain footage for training will be considered by the chief of Police on a case‐by‐case basis. Field training officers may utilize BWC data with trainees for the purpose of providing coaching and feedback on the trainees’ performance. Page 15 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 12 Data Retention  A.All BWC data shall be retained for a minimum period of 90 days. There are no exceptions for erroneously recorded or non‐evidentiary data. B.Data documenting the following incidents must be maintained for a minimum period of one year: 1.Discharge of a firearm by a peace officer in the course of duty, other than for training or the killing of an animal that is sick, injured or dangerous. 2.The use of deadly force by a peace officer, or force of a sufficient type or degree to require a response to resistance report or supervisory review. 3.Circumstances that have given rise to a formal complaint against an officer. C.Other data having evidentiary value shall be retained for the period specified in the Records Retention Schedule. When a particular recording is subject to multiple retention periods, it shall be maintained for the longest applicable period. D.Subject to Part F (below), all other BWC footage that is classified as non‐evidentiary, becomes classified as non‐evidentiary, or is not maintained for training shall be destroyed after 90 days. E.Upon written request by a BWC data subject, the agency shall retain a recording pertaining to that subject for an additional time period requested by the subject of up to 1 year. The agency will notify the requestor at the time of the request that the data will then be destroyed unless a new written request is received. F.The department shall maintain an inventory of BWC recordings having evidentiary value. G.The department will post this policy, together with a link to its Records Retention Schedule, on its website. H.In the event that a BWC data file is inaccurately categorized by an officer, or additional information is gained that suggests a data file category should be changed, the officer shall notify their immediate supervisor of the required change(s). Page 16 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 3/30/2021 Body-Worn Cameras Policy Page 13 Compliance  Supervisors shall monitor for compliance with this policy. Depending on the circumstances,  violations of the policy may result in coaching and counseling, oral reprimand, written  reprimand, suspension or termination. The unauthorized access to or disclosure of BWC data  may constitute misconduct and subject individuals to disciplinary action and criminal penalties  pursuant to Minn. Stat. § 13.09.  BCA Notification  Notification will be made to the MN Bureau of Criminal Apprehension within ten days of  obtaining new surveillance technology that expands the type or scope of the agency's portable  recording system.  Page17 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 1 City of St. Louis Park, Minnesota In-Car Camera Policy Purpose The primary purpose of using body-worn-cameras (ICCs) is to: A. Capture evidence arising from a police-citizen contact. B. Assist with accurate report writing. C. Allow for transparency and accountability in policing and protect the civil rights of the community. This policy sets forth guidelines governing the use of ICCs and administering the data that results. Compliance with these guidelines is mandatory, but it is recognized that officers must also attend to other primary duties and the safety of all concerned, sometimes in circumstances that are tense, uncertain, and rapidly evolving. Objectives The St. Louis Park Police Department has adopted the use of portable audio/video recorders to accomplish the following objectives: A. To enhance officer safety. B. To document statements and events during the course of an incident. C. To enhance the officer’s ability to document and review statements and actions for both internal reporting requirements and for courtroom preparation/presentation. D. To preserve audio and visual information for use in current and future investigations. E. To enhance the public trust by preserving factual representations of officer-citizen interactions in the form of audio-video recording. F. To promote the civility of police-civilian encounters G. To provide objective evidence to help resolve civilian complaints against police officers and the City of St. Louis Park. H. To protect the civil rights of the community. I. To assist with training and evaluation of officers. Policy It is the policy of this department to authorize and require the use of department-issued ICCs as set forth below, and to administer ICC data as provided by law. Scope This policy governs the use of ICCs in the course of official duties. The Chief of Police or the chief’s designee may supersede this policy by providing specific instructions for ICC use to Page 18 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 2 individual officers, or providing specific instructions pertaining to particular events or classes of events, including but not limited to political rallies and demonstrations where their use might be perceived as a form of political or viewpoint-based surveillance. The chief or designee may also provide specific instructions or standard operating procedures for ICC use to officers assigned to specialized details, such as carrying out duties in courts or guarding prisoners or patients in hospitals and mental health facilities. In the event the chief does supersede policy by providing specific instructions for use, a written report will be submitted to the City Manager. Definitions The following phrases have special meanings as used in this policy: A.MGDPA or Data Practices Act refers to the Minnesota Government Data Practices Act, Minn. Stat. § 13.01, et seq. B.Records Retention Schedule refers to the General Records Retention Schedule for Minnesota Cities. C.Law enforcement-related information means information captured or available for capture by use of an ICC that has evidentiary value because it documents events with respect to a stop, arrest, search, citation, or charging decision. D.Evidentiary Value means that the information may be useful as proof in a prosecution or defense of a criminal action, related civil or administrative proceeding, further investigation of an actual or suspected criminal act, or in considering an allegation against a law enforcement agency or officer. E.General Citizen Contact means an informal encounter with a citizen that is not and does not become law enforcement-related or adversarial, and a recording of the event would not yield information relevant to an ongoing investigation. Examples include, but are not limited to, assisting a motorist with directions, summoning a tow truck, or receiving generalized concerns from a citizen about crime trends in his or her neighborhood. F.Adversarial means a law enforcement encounter with a person that becomes confrontational, during which at least one person expresses anger, resentment, or hostility toward the other, or at least one person directs toward the other verbal conduct consisting of arguing, threatening, challenging, swearing, yelling, or shouting. Encounters in which a citizen demands to be recorded or initiates recording on his or her own are deemed adversarial. G.Unintentionally recorded footage is a video recording that results from an officer’s inadvertence or neglect in operating the officer’s ICC, provided that no portion of the resulting recording has evidentiary value. Examples of unintentionally recorded footage include, but are not limited to, recordings made in station house locker rooms, restrooms, and recordings made while officers were engaged in conversations of a non-business, personal nature with the expectation that the conversation was not being recorded. Page 19 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 3 H.Official duties, for purposes of this policy, means that the officer is on duty and performing authorized law enforcement services on behalf of this agency. Training All users of an ICC will be trained on the cameras operation and this policy prior to deploying one. Use and Documentation A. Officers may use only department-issued ICCs in the performance of official duties for this agency or when otherwise performing authorized law enforcement services as an employee of this department. B. All officers working uniform patrol, uniform special details, traffic duties, and uniform school resource officer duties shall use an ICC unless permission has been granted by a supervisor to deviate from this clause. Plain clothes investigators/officers and administrators are allowed to use ICC when interacting with citizens, when appropriate. C. Officers who have deployed an ICC shall operate and use them consistent with this policy. Officers shall conduct a function test of their ICCs at the beginning of each shift to make sure the devices are operating properly. Officers noting a malfunction during testing or at any other time shall promptly report the malfunction to the officer’s supervisor. As soon as is practical, the malfunctioning ICC shall be put down for service and the officer should deploy a vehicle with a working ICC. If an ICC malfunctions while recording or is damaged the circumstances shall be documented in a police report and a supervisor shall be notified. Supervisors shall take prompt action to address malfunctions and document the steps taken in writing. D. Officers must document ICC use and non-use as follows: 1. Whenever an officer makes a recording, the existence of the recording shall be documented in the records management system, an incident report, or a citation if completed. 2. Whenever an officer fails to record an activity that is required to be recorded under this policy or captures only a part of the activity, the officer must document the circumstances and reasons for not recording in the records management system or incident report. Supervisors shall review these reports and initiate any corrective action deemed necessary. Page 20 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 4 General Guidelines for Recording A. This policy is not intended to describe every possible situation in which the ICC should be activated, although there are many situations where use of the ICC is appropriate. Officers should activate the ICC any time the user believes it would be appropriate or valuable to record an incident. B. Officers shall activate their ICCs when anticipating that they will be involved in, become involved in, or witness other officers of this agency involved in a pursuit, Terry frisks, a traffic stop of a motorist, an investigative stop of a pedestrian, searches, seizures, arrests, response to resistance incidents, any encounter that becomes in any way hostile, confrontational, or adversarial , and during other activities likely to yield information having evidentiary value. However, officers need not activate their cameras when it would be unsafe, impossible, or impractical to do so, but such instances of not recording when otherwise required must be documented as specified in the Use and Documentation guidelines, part (D)(2) (above). C. When it is reasonable to expect that the citizen contact will occur outside the camera’s field of view, such as in a home or building or other location distant from the patrol car, officers need not activate their ICCs if the officer is using a BWC to document the event. D. Officers have discretion to record or not record general citizen contacts. E. Officers have no affirmative duty to inform people that an ICC is being operated or that the individuals are being recorded. Officers may make an announcement that ICCs are being used. F. Once activated, the ICC should continue recording until the conclusion of the incident or encounter, or until it becomes apparent that additional recording is unlikely to capture information having evidentiary value. The supervisor having charge of a scene shall likewise direct the discontinuance of recording when further recording is unlikely to capture additional information having evidentiary value. If the recording is discontinued while an investigation, response, or incident is ongoing, officers shall state the reasons for ceasing the recording on camera before deactivating their ICC. If circumstances change, officers shall reactivate their cameras as required by this policy to capture information having evidentiary value. Any decision to discontinue recording shall be made with respect to the nine policy objectives. G. Officers shall not intentionally block the ICC’s visual recording functionality to defeat the purposes of this policy. This does not prevent an officer from temporarily blocking the visual recording during an encounter with persons who are nude or when sensitive human areas are exposed. H. Notwithstanding any other provision in this policy, officers shall not use their ICCs or any other device to record other agency personnel during non-enforcement related activities, such as during pre- and post-shift time in locker rooms, during meal breaks, or Page 21 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 5 during other private conversations, unless recording is authorized as part of a criminal investigation. Special Guidelines for Recording Officers may, in the exercise of sound discretion, determine: A. To use their ICCs to record any police-citizen encounter if there is reason to believe the recording would potentially yield information having evidentiary value, unless such recording is otherwise expressly prohibited. In addition, B. Officers need not record persons being provided medical care unless there is reason to believe the recording would document information having evidentiary value. When responding to an apparent mental health crisis or event, ICCs shall be activated as necessary to document any response to resistance and the basis for it, and any other information having evidentiary value, but need not be activated when doing so would serve only to record symptoms or behaviors believed to be attributable to the mental health issue. C. Officers should use their BWC and ICC to record their transportation and the physical transfer of persons in their custody to hospitals, detox and mental health care facilities, juvenile detention centers, and jails, but otherwise should not record in these facilities unless the officer anticipates witnessing a criminal event or being involved in or witnessing an adversarial encounter or response to resistance incident. Downloading and Categorizing Data A. Each officer using an ICC is responsible for transferring or assuring the proper transfer of the data from their camera to the ICC server by the end of that officer’s shift. However, if the officer is involved in a shooting, in-custody death, or other law enforcement activity resulting in death or great bodily harm, a supervisor or investigator shall take custody of the officer’s ICC system and consult with their supervisor. B. Officers shall categorize the ICC data files of each video capture and should consult with a supervisor if in doubt as to the appropriate category. The selected category(ies) shall determine the retention times per the general records retention schedule established by the Minnesota Clerks and Finance Officers Association (MCFOA). C. In addition, officers shall categorize each file appropriately, in the manner specified in training, with the appropriate category to indicate the information it contains. Some data Page 22 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 6 subjects may have rights under the MGDPA limiting disclosure of information about them. These individuals include: 1. Victims and alleged victims of criminal sexual conduct and sex trafficking. 2. Victims of child abuse or neglect. 3. Vulnerable adults who are victims of maltreatment. 4. Undercover officers. 5. Informants. 6. When the video is clearly offensive to common sensitivities. 7. Victims of and witnesses to crimes, if the victim or witness has requested not to be identified publicly. 8. Individuals who called 911, and services subscribers whose lines were used to place a call to the 911 system. 9. Mandated reporters. 10. Juvenile witnesses, if the nature of the event or activity justifies protecting the identity of the witness. 11. Juveniles who are or may be delinquent or engaged in criminal acts. 12. Individuals who make complaints about violations with respect to the use of real property. 13. Officers and employees who are the subject of a complaint related to the events captured on video. 14. Other individuals whose identities the officer believes may be legally protected from public disclosure. D. Category and flag designations may be corrected or amended based on additional information. Administering Access to ICC Data A.Data subjects. Under Minnesota law, the following are considered data subjects for purposes of administering access to ICC data: Page 23 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 7 1. Any person or entity whose image or voice is documented in the data. 2. The officer who collected the data. 3. Any other officer whose voice or image is documented in the data, regardless of whether that officer is or can be identified by the recording. B.ICC data is presumptively private. ICC recordings are classified as private data about the data subjects unless there is a specific law that provides differently. As a result: 1. ICC data pertaining to people is presumed private, as is ICC data pertaining to businesses or other entities. 2. Some ICC data is classified as confidential (see C. below). 3. Some ICC data is classified as public (see D. below). C.Confidential data. ICC data that is collected or created as part of an active criminal investigation is confidential. This classification takes precedence over the “private” classification listed above and the “public” classifications listed below. D.Public data. The following ICC data is public: 1. Data documenting the discharge of a firearm by a peace officer in the course of duty, other than for training or the killing of an animal that is sick, injured, or dangerous. 2. Data that documents the use of force by a peace officer that results in substantial bodily harm. 3. Data that a data subject requests to be made accessible to the public, subject to redaction. Data on any data subject (other than a peace officer) who has not consented to the public release must be redacted [if practicable]. In addition, any data on undercover officers must be redacted. 4. Data that documents the final disposition of a disciplinary action against a public employee. However, if another provision of the Data Practices Act classifies data as private or otherwise not public, the data retains that other classification. For instance, data that reveals protected identities under Minn. Stat. § 13.82, subd. 17 (e.g., certain victims, witnesses, and others) should not be released even if it would otherwise fit into one of the public categories listed above. E.Access to ICC data by non-employees. Officers shall refer members of the media or public seeking access to ICC data to the administrative lieutenant or their designee, who Page 24 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 8 shall process the request in accordance with the St. Louis Park Police Department’s applicable processes and policies and other governing laws. In particular: 1. An individual shall be allowed to review recorded ICC data about themselves and other data subjects in the recording, but access shall not be granted: a. If the data was collected or created as part of an active investigation. b. To portions of the data that the agency would otherwise be prohibited by law from disclosing to the person seeking access, such as portions that would reveal identities protected by Minn. Stat. § 13.82, subd. 17. 2. Unless the data is part of an active investigation, an individual data subject shall be provided with a copy of the recording upon request, but subject to the following guidelines on redaction: a. Data on other individuals in the recording who do not consent to the release must be redacted. b. Data that would identify undercover officers must be redacted. c. Data on other officers who are not undercover, and who are on duty and engaged in the performance of official duties, may not be redacted. F.Access by peace officers and law enforcement employees. No employee may have access to the department’s ICC data except for legitimate law enforcement or data administration purposes: 1. Officers may access, share, view and download stored ICC video only when there is a business need for doing so, including the need to defend against an allegation of misconduct or substandard performance. Officers may review video footage of an incident in which they were involved prior to preparing a report, giving a statement, or providing testimony about the incident. Officers shall not use the fact that a recording was made as a reason to write a less detailed report. 2. Personal devices shall not be used to capture, record, transfer, store or view any ICC videos, photos or other evidence. 3. Supervisors may view recordings at any time they are making inquiry into an alleged complaint, performance issue, or policy violation. 4. Agency personnel are prohibited from accessing ICC data for non-business reasons and from sharing the data for non-law enforcement related purposes, including but not limited to uploading ICC data recorded or maintained by this agency to public and social media websites. All incidents of access to ICC data are digitally logged. Page 25 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 9 Allegations of inappropriate access to ICC data will be investigated and based on the finding, discipline may result. 5. Employees seeking access to ICC data for non-business reasons may make a request for it in the same manner as any member of the public. G.Other authorized disclosures of data. Officers may display portions of ICC footage to witnesses as necessary for purposes of investigation as allowed by Minn. Stat. § 13.82, subd. 15, as may be amended from time to time. These displays will generally be limited in order to protect against the incidental disclosure of individuals whose identities are not public. Any displays will take place at the St. Louis Park Police Department with the approval of a supervisor. Protecting against incidental disclosure could involve, for instance, showing only a portion of the video, showing only screen shots, muting the audio, or playing the audio but not displaying video. In addition, 1. An officer may request a supervisor respond to the scene and request approval for a display to take place outside the St. Louis Park Police Department. 2. ICC data may be shared with other law enforcement agencies only for legitimate law enforcement purposes that are documented in writing at the time of the disclosure. 3. ICC data shall be made available to prosecutors, courts, and other criminal justice entities as provided by law. Data Security Safeguards A. Department members shall not intentionally edit, alter, or erase any BWC recording unless otherwise expressly authorized by the Chief of Police or the Chief’s designee. B. As required by Minn. Stat. § 13.825, subd. 9, as may be amended from time to time, this agency shall obtain an independent biennial audit of its ICC program. Agency Use of Data A. To ensure compliance with this policy and to identify any performance areas in which additional training or guidance is required supervisors will review each officer’s ICC recordings during each officer’s trimester evaluation or more frequently if there is reason to do so. B. In addition, supervisors and other assigned personnel may access ICC data for the purposes of reviewing or investigating a specific incident that has given rise to a complaint or concern about officer misconduct or performance. Page 26 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 10 C. When a video is accessed or reviewed via Evidence.com, a notation shall be entered into the “Notes” section of the screen stating the reason for access. D. Nothing in this policy limits or prohibits the use of ICC data as evidence of misconduct or as a basis for discipline. E. Officers should contact their supervisors to discuss retaining and using ICC footage for training purposes. Officer objections to preserving or using certain footage for training will be considered by the chief of Police on a case-by-case basis. Field training officers may utilize ICC data with trainees for the purpose of providing coaching and feedback on the trainees’ performance. Data Retention A. All ICC data shall be retained for a minimum period of 90 days. There are no exceptions for erroneously recorded or non-evidentiary data. B. Data documenting the following incidents must be maintained for a minimum period of one year: 1. Discharge of a firearm by a peace officer in the course of duty, other than for training or the killing of an animal that is sick, injured or dangerous. 2. The use of deadly force by a peace officer, or force of a sufficient type or degree to require a response to resistance report or supervisory review. 3. Circumstances that have given rise to a formal complaint against an officer. C. Other data having evidentiary value shall be retained for the period specified in the Records Retention Schedule. When a particular recording is subject to multiple retention periods, it shall be maintained for the longest applicable period. D. Subject to Part F (below), all other ICC footage that is classified as non-evidentiary, becomes classified as non-evidentiary, or is not maintained for training shall be destroyed after 90 days. E. Upon written request by a ICC data subject, the agency shall retain a recording pertaining to that subject for an additional time period requested by the subject of up to 1 year. The agency will notify the requestor at the time of the request that the data will then be destroyed unless a new written request is received. F. The department shall maintain an inventory of ICC recordings having evidentiary value. Page 27 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update 9/15/2020 In-Car Camera Policy Page 11 G. In the event that a ICC data file is inaccurately categorized by an officer, or additional information is gained that suggests a data file category should be changed, the officer shall notify their immediate supervisor of the required change(s). Compliance Supervisors shall monitor for compliance with this policy. Depending on the circumstances, violations of the policy may result in coaching and counseling, oral reprimand, written reprimand, suspension or termination. The unauthorized access to or disclosure of ICC data may constitute misconduct and subject individuals to disciplinary action and criminal penalties pursuant to Minn. Stat. § 13.09. Page 28 Study session meeting of March 28, 2022 (Item No. 7) Title: Body worn camera annual update Meeting: Study session Meeting date: March 28, 2022 Written report: 8 Executive summary Title: 2021 housing activity report Recommended action: The purpose of this report is to update council on city housing programs and activity. This report is informational. No action is required. Policy consideration: None at this time Summary: The housing activity report has been presented to council annually since 2005. The executive summary provides a brief overview of the detailed report. The report provides information on new housing policies and initiatives, historical trends, program descriptions, affordable housing data and information on housing programs in St. Louis Park. The policies and programs in the housing activity report can be found on the St. Louis Park city website . Financial or budget considerations: Not applicable Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: 2021 housing activity report Prepared by: Marney Olson, housing supervisor Reviewed by: Karen Barton, community development director Approve d by: Kim Keller, city manager Page 1 2021 Housing Activity Report 2021 Housing Activity Report Executive summary The purpose of this report is to provide city policy makers with an overview of housing program activity during 2021. The report provides information on new initiatives and updates as well as historical trends, program descriptions, and data on city and federally funded housing programs and activity that are in line with the city’s housing goals. 1.New initiatives and updates in 2021 a. First Generation Homeownership Program b.Housing dashboard 2.City housing policies a.Inclusionary Housing (30%, 50% and 60% AMI) b.Tenant Protection Ordinance (60% AMI and below) c.Housing Trust Fund d. NOAH preservation strategies: i.4D tax incentive program (60% AMI and below) ii.Multifamily rental rehab program (60% AMI and below) iii.Legacy program (60% AMI and below) 3.Remodeling activity a.Housing rehab projects (general remodeling) remained steady in 2021, but the permit valuation was up considerably. Most projects were financed without using city loans. b.The city’s Architect Design Services and Remodeling Advisor Services continued to be great tools for residents, and usage is in line with previous years. c.Major remodeling projects continue to be strong in 2021 with increases in additions and major remodels. There were 63 additions and 104 major remodels in 2021 with average valuations at $163,458 and $63,527 respectively. d.The Construction Management Plan program has been in place since November 2014. In 2021, 43 neighborhood notification letters were sent for Construction Management (CMP) plan projects: 37 major additions, four demo/rebuilds, two new builds only and one demo only. A map is included in the report showing the location of these projects. This is an increase in the number of CMP projects. 4.Affordable home ownership, Community Development Block Grants and emergency rental assistance a.There were 24 buyers under the Live Where You Work (LWYW) program during its 10-year run. In 2019, the new Down Payment Assistance (DPA) program provided loans to eight first-time homebuyers in St. Louis Park (120% AMI), 10 loans in 2020 (100%/115% AMI) and 10 in 2021. b.West Hennepin Affordable Housing Land Trust added two homes in St. Louis Park in 2021 and now have 21 affordable homes in the community. c.CDBG funds were used to fund the Deferred Loan Program for low-income residents in St. Louis Park and the West Hennepin Affordable Housing Land Trust (WHAHLT) dba Homes Within Reach. (80% AMI) d.The city provides an emergency repair grant for low-income homeowners in St. Louis Park. There were seven emergency repair grants issued in 2021 (50% AMI). e.Annually, the city provides funds to STEP for emergency rental assistance. In 2021, STEP received $65,000 in rental assistance, in addition to administrative and program-specific funding. Page 2 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 2 2021 Housing Activity Report 5.Housing Matrix a.Owner occupied (no rental license) properties comprise 55% of the housing market with rental properties (units with a rental license) at 46%. b.The single-family home ownership rate is 93%. c.There are nearly 1200 units of senior housing in St. Louis Park. d.Maxfield Research completed their rental study in the end of 2017 and of the 7,000 rental units surveyed 49.3% are affordable at 60% AMI or below. Funds have been budgeted to update the study in 2022. e.The 2021 affordable ownership purchase price was $316,000 and 52% of homes in St. Louis Park are assessed at or below this affordability limit. These homes are comprised of single family, condominiums, and townhomes. 6.Foreclosures a.The foreclosure rate remains extremely low with only four residential foreclosures in 2021. 7. Federally Funded Housing Programs a.The St. Louis Park Housing Authority affordable rental housing and rental assistance programs served approximately 500 households with rental assistance in 2021. Income eligibility limits are 50% AMI for the housing choice voucher (HCV) program and 80% for public housing, although the majority of households served in public housing and the HCV program are below 30% AMI. 79% of households served by the HCV and public housing programs (housing authority rental assistance programs) are at or below 30% AMI and 19% are between 31-50% AMI. b.Family Unification Program and Mainstream Vouchers (50% AMI and below). c.The St. Louis Park Housing Authority, in partnership with Hennepin County, has continued administering the Stable HOME rental assistance program which provides housing assistance to homeless or previously homeless individuals and families in Suburban Hennepin County. 41 households were served in 2021. (50% AMI) d.Kids in the Park program – increased funding and is currently serving 20 families (50% AMI and below). e.Lou Park Apartments – 21 tenants residing at Lou Park with project-based vouchers were transitioned to tenant-based vouchers administered by the Housing Authority (50% and below AMI). Households served by housing authority rental assistance programs as of 12/31/2021 30% AMI 50% AMI 60% AMI 80% AMI Over 80% AMI Number of Households 349 71 11 6 5 Percentage of Households 79% 17% 2% 1% 1% 8.Program Descriptions: This section gives detailed descriptions of the various housing programs. Page 3 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 3 2021 Housing Activity Report 2021 Housing Activity Report 1.New initiative and updates in 2021 First generation program It’s recognized that historical and institutional racism has disproportionately created housing challenges and disparities for Black communities, as well as members of communities who do not identify as white, and other underserved low-income communities. Additionally, the income and education gap between households of color and white households has resulted in difficulty for Black and African American people and households of color to obtain mortgages, leading to ongoing wealth accumulation equity issues. The first-generation homeownership program is designed to address these historic injustices and inequities and to support inclusive and equitable communities by facilitating affordable homeownership and providing a means for wealth-building. The goal is to address housing disparities; build power in communities most impacted by housing challenges and disparities; pilot an innovative program to address housing challenges for Black communities as well as members of communities who don’t identify as white, and other underserved low-income communities. To be considered for the program, a buyer must be a first-generation homeowner meaning they have never owned a home and parents must have never owned a home. The program is available to homebuyers with a maximum household income at or below 80% of area median income. The maximum loan amount is based on the household’s income and purchase price of the homes with a maximum of $75,000. The loan is forgiven at 5% per year over a 20-year owner occupancy period. Housing staff have partnered with several non-profits on the development of the program as well as outreach to first generation homeowners. These non-profits work with first time home buyers and are also dedicated to advancing homeownership equity in Minnesota. The program was launched in November 2021. There have been several inquiries on this program, but no loans were closed in 2021. Housing Dashboard The City of St. Louis Park is committed to promoting quality multifamily development and affordable housing options for low- and moderate-income households. In 2015, the City of St. Louis Park adopted an inclusionary housing policy with the goal of increasing the number of affordable rental units in the city. The multifamily housing dashboard shows the total number of rental units and the number of affordable units created since the inclusionary housing policy was adopted. Note that it does not reflect the total number of affordable rental units in the city, nor does it reflect affordable units that have been approved but have not yet been completed. The dashboard also includes a second tab, affordable housing goals, that shows the progress the city is making towards the affordable housing goals set by the Metropolitan Council. Page 4 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 4 2021 Housing Activity Report 2.City housing policies The City of St. Louis Park has undertaken new initiatives and updates to current policies to address affordable housing needs in the community. Inclusionary housing In June 2015, the city council adopted an Inclusionary Housing Policy that requires the inclusion of affordable housing units for lower income households in new market rate multi-unit residential developments receiving financial assistance from the city. The goal of the Inclusionary Housing Policy is to increase the supply of affordable housing and promote economic and social integration. Updates to the inclusionary housing policy since the adoption of the policy include: •2017; increased the percentage of required affordable units and added a requirement that developments covered by the policy must not discriminate against tenants who pay their rent with government provided Housing Choice Vouchers or other public rent subsidies. •2018; increased the percentage of required affordable units at 60% AMI, added a 30% AMI option, and changed the ownership to require a payment in lieu. Payment in lieu provides the city the opportunity to create long-term affordable homeownership housing, as opposed to the home only being affordable to the initial buyer. The income limit eligibility for existing tenants was amended in 2018 to be consistent with the tax credit income limits. •2019; in an effort to expand the eligibility of developments obligated to comply with the policy requirements and ensure that any NOAH units lost due to multi-family residential development are replaced, the policy was again updated to apply to market rate multi-unit residential developments that receive financial assistance from the city, seek PUD land use approvals or request a comprehensive plan amendment, and includes: a)new developments that create at least 10 multi-family dwelling units; or b)any mixed-use building that creates at least 10 multi-family dwelling units; or Page 5 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 5 2021 Housing Activity Report c)renovation or reconstruction of an existing building that contains multi-family dwelling units that includes at least 10 dwelling units; or d)any change in use of all or part of an existing building from a non-residential use to a residential use that includes at least 10 dwelling units. •2021; based on the council’s interest in creating rental opportunities for larger size families and the need to clarify language related to parking requirements, the policy was updated to require developments with 50 or more units to include a minimum number of family size units (three bedroom or larger) in the development. Parking requirements were also updated in situations where underground or enclosed parking is the only on-site parking option available for residents and requires a discount from the market rate fee. Table 1: Inclusionary housing policy requirements Initial Policy Current Policy Rental Projects •10 % of units at 60% AMI •8% of units at 50% AMI •20% of units at 60% AMI •10% of units at 50% AMI •5% of units at 30% AMI Ownership Projects 10% of units at 80% AMI Payment in lieu Page 6 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 6 2021 Housing Activity Report Table 2: Affordable units created and approved Development Total Num ber of Units Total Number of Affordable Units Affordability Level O-bedroom Affordable Units 1-bedroom Affordable Units 2-bedroom Affordable Units 3-bedroom Affordable Units Completed projects Shoreham 148 30** 50% 4 13 13 4800 Excelsior 164 18 60% 1 10 7 Central Park West Phase 1 119 in SLP (199 total 6* 60% 1 2 2 1 Elan Central Park West Phase 2 164 5* 50% 1 1 2 1 The Quentin 79 8 50% 3 4 1 0 Elmwood 70 17 60% 5 12 Urban Park Apartments 61 0 Parkway 25 112 Totals 917 84 N/A 10 35 37 2 Under construction Via Sol (PLACE) 217 22 130 50% 80% 66 53 17 16 Parkway Residences 235 24 6 50% 60% 1 15 8 6 Totals 452 182 N/A 67 68 31 16 Approved Luxe Residential (approved in 2018) 207 8* 60% 2 3 2 1 Volo at Texa Tonka (approved 2020) 112 23 50% 7 12 4 0 Rise on 7 (approved 2021) 120 19 82 19 30% 60% 80% 57 39 24 Union Congregational Church (2021) 60 10 40 10 30% 60% 80% 3 12 30 15 Risor - 3510 Beltline (2021) 177 18 50% 1 11 5 1 Page 7 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 7 2021 Housing Activity Report Beltline Residences (2021) 250 25 50% 5 15 3 2 9920 Wayzata 233 47 50% 10 19 16 2 Totals 1159 301 N/A 28 129 99 45 *Central Park West Phase 1 and Phase 2 and Luxe were not subject to the Inclusionary Housing Policy but voluntarily included affordable units **Shoreham is a tax credit property resulting in 20% of units affordable at 50% AMI Tenant Protection Ordinance The city council adopted a tenant protection ordinance in 2018. The tenant protection ordinance requires a three- month period following the ownership transfer of a NOAH multifamily residential property during which the new owner would be required to pay relocation benefits to tenants if the rent is increased, existing residents are rescreened, or non-renewals are implemented without cause. NOAH properties are defined as buildings where at least 18% of the units have rents affordable to households with incomes at or below 60% Area Medium Income (AMI) to match the inclusionary housing policy affordability requirements at the time the policy was adopted. The ordinance does not prohibit a new owner from taking the management actions listed above; however, the owner would be required to provide resident relocation benefits if they do take any of those actions during the tenant protection period and a tenant decides to move as a result. The three-month protection period provides a period for residents to work with housing support resources and seek alternative housing if they are facing unaffordable rent increases, new screening criteria requirements that would be problematic for them, or a thirty- day non-renewal without cause notice to vacate. The ordinance requires the new owner of a NOAH building to provide notice of the ordinance protections to tenants of affordable housing units within 30 days of the sale of the building. The three-month tenant protection period begins once the notice has been given to the tenants. NOAH properties required to comply with the tenant protection ordinance: •9 in 2018 •3 in 2019 •3 in 2020 •0 in 2021 Local housing trust fund The city council approved establishing a local affordable housing trust fund in 2018. Housing trust funds are distinct funds established by city, county or state governments that receive ongoing dedicated sources of public funding to support the preservation and production of affordable housing. Housing trust funds can also be a repository for private donations. The Minnesota Legislature passed a bill in 2017 that allows local communities to establish housing trust funds. The housing trust fund may be established by ordinance and administered by the city. Money in a housing trust fund may only be used to: •pay for administrative expenses not to exceed 10% of the balance of the fund; •make grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing; •match other funds from federal, state, or private resources for housing projects; or •provide down-payment assistance, rental assistance, and homebuyer counseling services. The city may finance the fund with any money available to a local government, unless expressly prohibited by state law. The proposed primary source of funding for the city’s trust fund is an annual budgeted allocation of HRA Levy funds, which was available beginning in 2020. The local housing trust fund guide was approved in 2019. Page 8 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 8 2021 Housing Activity Report Land banking Land banking is the practice of aggregating parcels of land for future sale or development. The Economic Development Authority (EDA) has purchased parcels near the Beltline and Wooddale stations to facilitate future redevelopment which will include housing. The EDA also purchased one single-family home on Minnetonka Blvd in 2018, one in 2019 and two additional homes in 2020 for future redevelopment purposes. NOAH Preservation (Naturally Occurring Affordable Housing) Housing staff continued to participate in a Regional Housing Workgroup to review and discuss strategies for preservation of NOAH. Additional preservation strategies including the multifamily rental rehab program, Legacy program and 4D were approved in 2018 and implemented in 2019 to preserve NOAH properties. Legacy program – 60% AMI and below Investors are buying NOAH apartment properties across the Twin Cities, often renovating the properties and increasing the rents. The City of St. Louis Park created the legacy program to encourage multifamily NOAH property owners in our community who are thinking about selling their property to consider connecting with a socially driven investor who will preserve the affordability of their development. The city created a legacy program brochure outlining how an owner can make a difference by providing a legacy of affordable housing in St. Louis Park. The brochure was mailed to all class B and C multifamily rental properties. In 2021, the city expanded the Legacy program to include single family homes to connect potential sellers with Homes Within Reach to expand the land trust program in St. Louis Park and preserve affordable homeownership in the community. Homes Within Reach has communicated with homeowners about the program and are working with one homeowner currently. 4d - 60% AMI and below St. Louis Park’s 4d affordable housing incentive program helps preserve affordable homes in the city by providing financial incentive to qualified apartment owners for state property tax reductions if they agree to keep 20 percent or more of their rental units affordable. The program also offers grants to help owners make energy efficiency and safety improvements to their properties. This program was developed, approved, and marketed in 2018 to preserve affordable housing in St. Louis Park. One apartment building applied for 4d in 2019. No additional 4d properties applied in 2020 or 2021. Multifamily rental rehab program - 60% AMI and below The multifamily rental rehab program provides moderate rehabilitation assistance to eligible owners of St. Louis Park multifamily residential rental properties with three or more units. The targeted properties are NOAH properties that have been maintained, are in good standing, and wish to make improvements to their properties. Buildings must be at least 30 years old and meet the St. Louis Park definition of a NOAH property. The maximum loan amount per qualified rent restricted unit is $5,000 with a maximum loan per building/development of $50,000. Loans have 0% interest and are due upon the sale of the property. Owners must restrict the rents for a 10-year term or until the sale or transfer of the ownership of the property. The goal of this program is to provide a rehab incentive for NOAH properties to improve their property without raising rents above the 60% AMI rent level. No properties participated in this program in 2019. Staff began evaluating the program in 2020 and modifying the program in 2021. In 2022, housing staff will work with the city’s environment and sustainability staff on a grant to evaluate housing and energy efficiency programs for multifamily properties to identify barriers to the use of the current programs and identify what changes would make the programs more beneficial to both property owners and tenants. Page 9 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 9 2021 Housing Activity Report 3.REMODELING ACTIVITY Residential permitted activity measures remodeling and maintenance activity. This section shows historical trends of remodeling activity. Residential properties include apartments. Permit Trends •“Alteration Residential” or General Remodeling General remodeling work includes residential projects with permit valuations less than $37,500. The average value per job in 2021 is just over $10,000, an increase of $1,100 over 2020. Permits include a wide range of projects including remodeling of existing spaces, window and door replacement, drain tile, insulation, foundation work, etc. Chart 1: Trend of General Remodeling Permits valued under $37,500 •Roofing and Siding Activity Reroofing and residing permits are tracked separately. Almost 60% of the homes in the city had roofs replaced between 2008 and 2011 due to storm damage, and we are starting to see increases in roofing and siding permits. Chart 2: Reroofing and Residing Permits 1129 1011 1091 1084 1074 1203 1170 983 996 1044 1001 0 500 1000 1500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Permits IssuedYear Maintenance & Minor Remodeling Permits Alteration Residential (Minor) 761 140 161 131 104 80 107 163 162 296 591 11773 83 70 47 86 62 85 63 122 205 0 500 1000 1500 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Permits IssuedYear Reroofing and Residing Permits Reroof Reside Page 10 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 10 2021 Housing Activity Report •Additions and Major Remodeling The number of major remodeling permits (valued at more than $37,500) and additions increased in 2021. The average permit valuation for additions during 2021 is $163,500, consistent with the 2020 permit valuation. The 2021 average valuation for major remodels is $63,500 which is a decrease in value, but an increase in the number of permits. Chart 3: Number of Addition and Major Remodeling Permits •Permit Valuation The following chart shows historical remodeling permit valuation for additions, major remodels, remodeling and maintenance, garages/decks, reroofs, and siding. Permits with additional valuations were issued for plumbing, heating, and electrical work (not shown here). Chart 4: Permitted Residential Remodeling 48 71 67 73 70 59 67 59 49 49 6346 44 53 69 70 65 69 77 82 85 104 0 40 80 120 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Permits IssuedYear Addition and Major Remodel Permit Activity Addition Residential Major Remodels 26.6 $16.8 $21 $25 $23 $25 $26 $28 $25 $31.4 $40.3 0 20 40 60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Permit Valuation -Million $Year Residential Remodeling Permit Valuation Page 11 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 11 2021 Housing Activity Report City Housing Improvement Services, Loans Trends and Program Descriptions Home Improvement Services. The city’s architectural design service, remodeling advisor and Home Energy Squad Visits are great programs for residents who are considering a remodel or energy improvements to take advantage of. Despite COVID-19, there was an increase in Home Energy Squad visits in 2020, in part due to promotion by the Environment and Sustainability division and the CEE Home Energy Squad intercity challenge that St. Louis Park won in 2020 and were second in 2021 on a per capita basis. Chart 5: Technical, Design and Home Energy Visits Construction Management Plan Major additions (second story additions or additions of 500 square feet or more), demolitions and new construction projects need to comply with the Construction Management Plan (CMP). In 2021, the following neighborhood notifications were sent: 37 major additions, four demo/rebuilds, and two new builds on vacant land. One of the new builds on vacant land was a property that was listed as a demo only in 2020. The total permit valuation for CMP projects in 2021 was $10,603,357. Chart 6: CMP Activity 29 29 37 41 22 31 33 39 52 47 36 82 69 69 95 69 76 76 83 51 45 30 122 153 173 125 170 109 85 130 166 128 020406080100120140160180200 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of VisitsYear Technical Home Improvement Services Architect Services Remodeling Advisor Home Energy Visits 32 37 33 33 17 19 37 18 10 9 7 8 11 43 6 3 2 0 2 2 3 1 0 1 2 1 00 5 10 15 20 25 30 35 40 2015 2016 2017 2018 2019 2020 2021Number of CMP ProjectsYear Construction Management Plan Activity Additions Demo/New Build New Build Demo only Page 12 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 12 2021 Housing Activity Report Page 13 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 13 2021 Housing Activity Report •Home Remodeling Fair and Tour Both the Home Remodeling Fair and Tour were cancelled in 2020 and 2021 due to the pandemic. In 2021, West Metro Home Remodeling Fair formalized the partnerships between the cities of Golden Valley, Minnetonka, and St. Louis Park along with the Hopkins and St. Louis Park school districts through a Joint Powers Agreement in preparation for the 2022 and future fairs. •City Loans and Rebates The following chart shows the number of Move Up Loans, Discount Loans, and Energy Rebates issued in recent years. The city buys down the interest rate on the Minnesota Housing Finance Agency’s community fix up loan for the discount loan with a maximum loan amount of $35,000. In 2020, interest rates dropped below the rate of the city’s buydown rate, so midway through the year no loans needed the city to buy down the rate. This continued in 2021, so there were no discount loans in 2021. The number of discount loans has remained low the past several years partially due to other loan options that do not have income limits or require a mortgage on the property, and the MHFA fix up loan offers a loan up to $75,000, but the city buy down was only for loans less than $35,000. Due to a change in funding sources for 2021, the 50% energy efficient rebate match added an income limit of 115% AMI ($120,650) which reduced the number of rebates in 2021. Chart 7: Use of City Financial Incentives Move-Up in the Park loans are deferred until the sale of the home or forgiven after thirty years. Table 3: Move-Up Transformation Loans Paid off between 2014 and 2017 Year Number of Loans Paid Off Amount of Loans 2014 2 $23,957 2015 4 $78,246 2016 4 $97,970 2017 3 $80,909 2018 3 $66,432 2019 1 $16,250 2020 5 $114,327 2021 4 $77,876 Total paid off 2014-2021 $555,967 10 6 6 6 7 10 6 3 6 1 22226221713116565 0 83 73 113 166 143 108 101 125 94 112 63 0 25 50 75 100 125 150 175 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number Loans -RebatesYear Loans and Rebates Move up loans Discount loans Energy Rebates Page 14 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 14 2021 Housing Activity Report Table 4: Move-Up Participation and Costs YEAR Move-Up Loans Discount Loans Architectural Design Services Remodeling Advisor Services Energy Efficient Rebates Home Energy Squad Down Payment Assistance Loan Total City Cost 2006 27 $591,264 88 $186,205 102 $22,950 157 $20,410 $820,829 2007 27 $620,000 50 $74,000 62 $12,400 179 $23,270 $729,670 2008 18 $330,937 55 $114,129 49 $11,025 130 $16,900 $472,991 2009 17 $329,650 52 $106,000 12 $7,200 126 $16,380 22 $4,095 $463,322 2010 9 $209,769 64 $86,263 30 $6,750 89 $11,510 42 $7,820 $322,112 2011 10 $226,877 22 $29,213 29 $6,525 82 $10,250 83 $15,465 $288,330 2012* 6 $106,232 26 $31,276 29 $6,525 69 $8,970 73 $13,748 112 $7,320 $174,071 2013 6 $145,071 22 $33,063 37 $8,325 69 $8,970 113 $26,000 153 $10,650 $232,079 2014 6 $138,740 17 $26,079 41 $9,225 95 $12,350 166 $37,575 173 $11,390 $234,223 2015 7 $173,000 13 $17,577 22 $4,950 69 $15,525 143 $37,610 125 $6,250 $254,912 2016 10 $231,057 11 $27,001 31 $6,975 76 $17,100 108 $29,304 170 $8,510 $319,947 2017 6 $137,950 6 $5,907 33 $7,425 76 $17,100 101 $22,951 109 $5,450 $266,173 2018 3 $75,000 5 $12,904 39 $8,775 83 $18,865 125 $30,112 85 $4,250 $149,906 2019 6 $142,350 6 $16,577 52 $11,700 51 $11,475 94 $25,631 130 $6,500 8 $87,621 $301,584 2020 1 $25,000 5 $7,506 47 $10.575 45 $10,125 112 $27,491 166 $8,300 10 $135,428 $224,425 2021 2 $50,000 0 0 36 $8,125 30 $7,500 63 $16,662 128 $6,370 10 $127,900 $216,557 Detailed descriptions of each Move-Up Program are listed at the end of the report. Page 15 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 15 2021 Housing Activity Report 4.AFFORDABLE HOME OWNERSHIP, COMMUNITY DEVELOPMENT BLOCK GRANTS AND EMERGENCY RENTAL ASSISTANCE Home ownership - down payment assistance program – 100%/115% AMI and below The city reviewed and evaluated the Live Where You Work (LWYW) program and determined that it was not meeting the goal of the program. 24 LWYW loans were issued in the 10 years the program was offered. The new down payment assistance program (DPA) provides down payment/closing cost assistance to first-time homebuyers, or those that have not owned a home in the last three years, for purchasing a home in St. Louis Park. Employees of St. Louis Park businesses may be eligible for additional funds to encourage them to live where they work. The loan is a zero percent interest deferred loan up to $15,000, not to exceed five percent of the purchase price. An additional $5,000 is available for employees of St. Louis Park businesses and St. Louis Park renters. Income restrictions apply. 10 DPA loans were administered in 2020 and another 10 in 2021. Housing Improvement Area (HIA) The HIA is a finance tool to assist with the preservation of the city’s existing townhome and condominium housing stock. An HIA is a defined area within a city where housing improvements are made, and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. The Association borrows low interest money from the city, improvements are completed, and unit owners repay the loan through fees imposed on their properties and collected with property tax payments. To date, eight HIA’s have been established and nearly fourteen million dollars of improvements have been made to 1218 units. Bridgewalk Condominium Homeowners’ Association submitted an application in 2021 and was approved by the city council in February 2022. The veto period for the Bridgewalk HIA ends in April 2022. Bridgewalk would be the city’s ninth HIA. Emergency Repair Grant (50% AMI) The emergency repair grant that had previously been funded using CDBG funds is now funded with housing rehab dollars. Seven emergency grants were issued in 2021. The maximum grant amount is $4,000. Community Development Block Grant (CDBG) (80% AMI) The CDBG calendar year runs from July 1 – June 30th. FY2021 CDBG allocations included: •$137,562 for the Low-Income Deferred Loan Program administered by Hennepin County •$30,000 for West Hennepin Affordable Housing Land Trust Low-income deferred loan program Hennepin County administers the low-income deferred loan program for St. Louis Park and other suburban cities in Hennepin County. This program is a 15-year deferred loan for low-income homeowners that is forgiven after 15 years if the homeowner remains in the home. West Hennepin Affordable Housing Land Trust, dba Homes Within Reach (HWR) - Two purchased in 2021 (80% AMI) Homes Within Reach is a program of West Hennepin Affordable Housing Land Trust that purchases properties, rehabilitates, and then sells the home to qualified low to moderate income households. Buyers pay for the cost of the home only and lease the land for 99 years. City funds are leveraged with CDBG, Hennepin County Affordable Housing Incentive Fund (AHIF), HOME Partnership, Metropolitan Council, Minnesota Housing, and other funds. Page 16 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 16 2021 Housing Activity Report Homes Within Reach uses the community land trust model to create and preserve affordable homeownership for families in suburban Hennepin County. To date, Homes Within Reach has purchased 21 homes in St. Louis Park. 19 of the homes have been rehabbed and sold to eligible homebuyers. The two homes purchased in 2021 will be sold in 2022. Twin Cities Habitat for Humanity (80% AMI) The city has partnered with Habitat over the years to acquire nine blighted properties for rehab or tear- down for new construction. The city last assisted Habitat with the purchase of a property in 2011. Twin Cities is expanding their services to include financing which may serve more St. Louis Park residents than their traditional program. EMERGENCY RENTAL ASSISTANCE Annually, the City of St. Louis Park provides funding to the St. Louis Park Emergency Program (STEP) for emergency rental assistance (not COVID related). STEP provides rental assistance for residents of St. Louis Park who have an unexpected crisis and cannot pay rent. The crisis mut be resolvable with the ability to pay next month’s rent. Documentation is requested at the time of application. Priority is given to those with gross incomes at or below 50% AMI. STEP also receives Community Development Block Grant funds through the Hennepin County Consolidated RFP for emergency assistance. The City of St. Louis Park provided additional $65,000 in funding to STEP for emergency rental assistance in 2021. Information about STEP, county and state emergency rental assistance programs was shared with property owners and managers utilizing the SPARC e-newsletter. The information was also shared on the city’s website and via social media for residents of St. Louis Park. Page 17 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 17 2021 Housing Activity Report 5.HOUSING MATRIX AND DEVELOPMENT The housing matrix shows the numbers and percentages of housing types, tenure (owner or rental), affordable units, senior-designated units, and large single-family homes. The matrix is a guide to evaluate future housing development proposals. •11,569 units (45% of units) in St. Louis Park have a rental license. •The chart shows percentages of rental vs. owner-occupied units over time. Prior to 2017, the chart reflects homestead vs. non-homesteaded properties. Starting in 2017, the chart uses rental licenses to count the number of rental properties in St. Louis Park since not all non-homesteaded properties are rental. •93% of single-family detached homes were owner-occupied (did not have a rental license), and 80% of condos/townhomes were owner-occupied (no rental license) •The city hired Maxfield Research to update the city’s comprehensive housing analysis. The report was completed and presented to council in 2018. The city entered into an agreement with Maxfield to update the study in 2022. Chart 8: Percentage of Owner Occupied Units *Rental license data used beginning in 2017 Family-size single-family homes One of the city’s housing goals is to increase the number of family-size homes available in the city. “Family-size single-family homes” are being defined as exceeding 1,500 square feet of living space, having 3 or more bedrooms, 2 or more baths, and at minimum a 2-car garage. According to the Assessing Department, 2,441 – or 21% – of SLP single family homes meet this threshold. This is an increase of 40 homes since 2020 (due to additions, demo/rebuilds, and remodels). Although this size home is not considered large when compared to newly constructed housing, in St. Louis Park 74% of single-family homes have a foundation size less than 1,200 square feet and 46% of single-family homes have less than 1,200 square feet above ground. 93 91 89 89 90 89 93 94 94 93 93 75 70 67 66 67 67 78 79 81 83 80 0 50 100 2011 2012 2013 2014 2015 2016 2017*2018*2019 2020 2021Percentage YEAR % Owner Occupied Units Single Family Detached Homes Condos & Townhomes Page 18 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 18 2021 Housing Activity Report Senior housing •Ten senior (including senior preference) housing rental developments, for a total of 1,028 units. •Hamilton House offers a preference for seniors, but disability is another preference so not all residents are seniors. •Three developments are “affordable.” Hamilton House is Public Housing; Menorah West and Menorah Plaza are multi-family subsidized. •One development has a percentage affordable. The Elmwood has 17 affordable housing units required by the inclusionary housing policy. •Two senior ownership developments, for a total of 166 units. •Total rental and home ownership units is 1,194. Table 5: Senior housing table RENTAL Project name Address No. of Units Occp. Date Type of Senior Hamilton House 2400 Nevada Ave S 108 1976 Public Housing (Senior Preference) Menorah West Apts 3600 Phillips Parkway 45 1986 Affordable/Subsidized Menorah Plaza 4925 Minnetonka Blvd 151 1981 Affordable/Subsidized, Assisted Living Offered Parkshore Place 3663 Park Center Blvd 207 1988 Senior Knollwood Place 3630 Phillips Parkway 153 1987 Senior TowerLight 3601 Wooddale Ave 43 29 33 2012 Senior Assisted Living Memory Care Roitenberg Family 3610 Phillips Parkway 52/24 2002 Assisted Living/Memory Care Parkwood Shores 3633 Park Center Blvd 68 23 2001 Assisted Living Memory Care Comfort Residence at St. Louis Park 7115 Wayzata Blvd 12 10 2014 Assisted Living Memory Care The Elmwood 5605 W 36th St 53 17 2021 Market rate senior 17 affordable senior @ 60% AMI TOTAL RENTAL UNITS: 1028 units HOME OWNERSHIP Project name Address No. of Units Occp. Date Type of Senior Aquila Commons 8200 W 33rd St 106 2012 Coop Village in the Park 3600 Wooddale 60 2007 Senior Living TOTAL OWNER UNITS 166 units Page 19 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 19 2021 Housing Activity Report Affordable Housing The Metropolitan Council sets the affordability limits for at 80% of the area median income for both rental and ownership housing. In 2020, the metro area median income (AMI) for a household of four was $103,400. Under these limits, a family of four can earn up to $78,500 (80% AMI) to qualify for affordable housing. Below is a chart showing the number of market-rate affordable (naturally occurring affordable housing) multifamily rental units in St. Louis Park with affordable levels from 30% AMI to 80% AMI based on the Maxfield Research update from 2017. Funding has been allocated to update the study and housing staff are currently working with Maxfield Research on a contract to begin updating the study in late 2022. Among the 7,000+ market-rate units that were inventoried by Maxfield Research by unit mix and monthly rents, 7.9% of the units are considered naturally occurring affordable housing to households at 50% AMI, and an additional 41.4% of the naturally occurring units are affordable at 60% AMI. These combined represent 49.3% of the market-rate rental housing inventory as naturally occurring affordable at 50% to 60% AMI. The St. Louis Park Housing Choice Voucher (HCV) program has 342 vouchers that can be utilized in market-rate rentals reducing the rents to 30% of a voucher holder’s income, and the average HCV client’s income is below 30% AMI. Table 6: Multifamily market-rate rental units by AMI from 2017 # of bedrooms 30% AMI 50% AMI 60% AMI 80% AMI Efficiency 0 106 204 123 1 bedroom 20 370 2466 807 2 bedroom 19 198 879 929 3 bedroom 6 20 48 Total 39 680 3559 1906 Source: Maxfield Research & Consulting, LLC (2017) Affordable housing rental projects The multifamily housing dashboard shows the total number of rental units and the number of affordable units created since the inclusionary housing policy was adopted. Affordable homeownership •The 2021 affordable ownership purchase price is at or below $316,000, which is the affordable homeownership purchase price for households at 80% AMI. The matrix also shows the data for single-family homes, condos, and townhomes valued at $245,300 or less, which is the 60% AMI affordable ownership purchase price. •In 2021, 52% (7,947) of the single-family homes, condos, and townhomes in St. Louis Park were considered affordable at or below 80% AMI based on valuation data from assessing. The affordable ownership purchase price increased by $22,500 over 2020. The Metropolitan Council includes the following assumptions in determining the affordable ownership price: o Fixed-interest, 30-year home loan o Interest rate of 3% o A 29% housing debt-to-household income ratio o A 3.5% down payment o A property tax rate of 1.25% of the property sales price o Mortgage insurance at 0.85% of unpaid principal o $100/month for hazard insurance Page 20 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 20 2021 Housing Activity Report Table 7: St. Louis Park Housing Matrix December 31, 2021 Housing Units by Type Large Single Family Homes, Affordable, and Senior Housing Housing Type Housing Units Owner Occupied (No Rental License) Rental Licenses Family sized single family homes over 1500 square feet 2021 Affordable Market Rate (NOAH) SF, Condo and TH Units 60% | 80% 2017 Maxfield Research Affordable Market Rate (NOAH) Rental Units 60% | 80% Rent restricted units *Does not include tenant based vouchers Senior Designated Single Family Detached 11,698 46% 10,827 871 2,441 803 4989 37 Duplex 436 2% 88 348 Condos and townhomes 3,558 14% 2,835 723 2958 2551 60 Apartments 9,627 38% 9627 4278 6184 546 1028 COOPs 114 <1% 114 106 Totals 25,433 13,864 55% 11,569 45% 2,441 21% 3354 22% 7947 52% 4278 46% 6184 67% 579 5% 1194 5% % of SF Homes % of SF, Condo & TH % of Multifamily % of Rental % of Total Housing Units The rental unit numbers are coming directly from the rental licenses through the building and energy department. The percentage of owner occupied (no rental license) units to rental (units with a rental license) units is 55% owner (no rental license) and 45% of units with a rental license. Met Council revised the affordable housing income standards and now considers both rental and owner occupied housing units affordable at 80% AMI. This chart shows all single family homes, condos and townhomes with an assessed value based on 60% and 80% AMI. The chart also shows multifamily rental units affordable at 60% AMI and 80% AMI based on Maxfield Research data. More data is on the previous page related to affordable rents based on the number of bedrooms in a unit. Rent restricted units include project based vouchers, public housing, and inclusionary housing units. This does not include the tenant based vouchers (Section 8), Kids in the Park, or Stable HOME vouchers which are not tied to a specific unit. Data source: St. Louis Park Community Development, Building and Energy, and Assessing departments and Maxfield Research & Consulting. Page 21 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 21 2021 Housing Activity Report 6.FORECLOSURES Foreclosures are measured by the number of sheriff sales. The number of residential foreclosures in St. Louis Park and throughout Hennepin County has been declining since 2010. Chart 9: St. Louis Park Residential Foreclosures by Year The trend chart below shows foreclosure by housing type over time. Chart 10: Residential Foreclosures by Housing Type *Townhome & DB = Townhome and Double Bungalow/Duplex 163 122 59 54 47 31 36 19 15 4 40 40 80 120 160 200 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number of Sherrif Sales Year Residential Foreclosures by Year 109 82 45 39 28 21 25 16 11 3 2 40 30 9 14 15 6 9 2 4 1 18 10 5 1 4 4 2 1 0 0 10 40 80 120 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Number Sherrif SalesYear Residential Foreclosures by Housing Type Single Family Detached Condos Townhome & DB Page 22 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 22 2021 Housing Activity Report 7.ST. LOUIS PARK HUD FEDERALLY FUNDED HOUSING PROGRAMS and rental assistance The St. Louis Park Housing Authority (HA) administers programs that ensure the availability of safe and desirable affordable housing options in the St. Louis Park community. These programs include the Public Housing program, Housing Choice Voucher rental assistance program, the family self-sufficiency program, Stable HOME, and Kids in the Park programs. The HA currently serves over 560 eligible, low- income households through their housing programs. Public Housing – Restricted to households at or below 80% AMI; however, the majority of public housing residents have incomes below 50% AMI, with a significant number below 30% AMI The Housing Authority (HA) owns Hamilton House, a low-rise apartment building (108 one-bedroom units and two two-bedroom caretaker units) built in 1975, and 37 scattered site single-family units (three to five bedrooms) acquired or constructed between 1974 and 1996. Hamilton House is designated for general occupancy; however, priority is given to elderly and disabled applicants. The single-family scattered units house families with children. The HA also holds the HUD Annual Contributions Contract (ACC) and maintains a waiting list for 12 two-bedroom Public Housing apartment units located at Louisiana Court. The average annual income for households at Hamilton House is $15,982 which is below 30% AMI. The average income for the scattered site single-family homes and Louisiana Court public housing units is $47,140. Family sizes in Louisiana Court and the scattered site houses range from two to 11 people per home. 73% of public housing households have incomes below 30% AMI, and 16% have incomes between 31 and 50% AMI. 4% of public housing households have incomes at 60% AMI, 4% at 80% AMI, and 3% above 80% AMI. If a household’s income rises above the limit, on the second anniversary of being over income (100% AMI), households are given notice that they are no longer eligible for public housing and need to move on from the program. Public housing residents pay 30% of their income towards rent. The 2021 annual budget for Public Housing was $1,493,738 and an award of $281,449 for the 2021 Capital Fund Program (CFP). Table 8: Public Housing Public Housing Total Units 1-BR 2-BR 3-BR 4-BR 5-BR Hamilton House 108 108 Scattered Site Single Family 37 17 17 3 Louisiana Court, Metropolitan Housing Opportunity (MHOP) Units 12 12 Total (bedroom size) 108 12 17 17 3 Total 157 COVID response The CARES Act was signed into Law March 27, 2020, providing the Department of Housing and Urban Development (HUD) with broad authority to waive statutes and regulations for the Public Housing (PH) and Housing Choice Voucher (HCV) programs. These waivers provide administrative flexibility and relief to Housing Authorities (HA) in response to the COVID-19 pandemic. Use of these waivers for the PH and HCV programs is at the discretion of the HA. However, HUD strongly encouraged housing authorities to utilize any and all waivers and alternative requirements as necessary to keep PH and HCV programs operational in both 2020 and 2021. In addition to HUD waivers, the HA is complying with the state and federal eviction moratorium. Page 23 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 23 2021 Housing Activity Report Public Housing waivers •Family income and composition: annual examination, income verification requirements — HA will allow self-certification of income and family composition and conduct recertifications remotely. •Family income and composition: interim examinations — HA will allow self-certification of income and family composition and conduct interim certifications remotely. •Family self-sufficiency (FSS) contract of participation; contract extension — HA will allow extension of FSS contracts for COVID-19 related circumstances. •Community service and self-sufficiency requirement (CSSR) — HA will suspend the community service requirement until December 31, 2021. •Review and revision of utility allowance — The St. Louis Park HA utilizes metro HA’s utility allowance. Waiver will be implemented if needed. •Tenant notifications for changes to project rules and regulations — Advanced notice to tenants of rule changes will be waived except for any changes related to tenant charges. •The housing authority will allow families an additional opportunity to select an income-based or flat rent. Housing Choice Voucher waivers •Family income and composition: annual examination, income verification requirements — HA will allow self-certification of income and family composition and conduct recertifications remotely. •Family income and composition: interim examinations — HA will allow self-certification of income and family composition and conduct interim certifications remotely. •Family self-sufficiency (FSS) contract of participation; contract extension — HA will allow extension of FSS contracts for COVID-19 related circumstances. •Information when family is selected: PHA oral briefing — HCV briefings are being conducted remotely using mail and telephone. •Term of voucher: extensions of term — HA will allow a 30-day extension of the voucher term beyond current adopted policy. •Absence from unit — HA will waive current policy requirements related to a family member being absent from the unit due to COVID-19 related circumstances. •Utility allowance schedule: required review and revision — The St. Louis Park HA utilizes metro HA’s utility allowance. Waiver will be implemented if needed. •HQS inspections: initial, biennial, interim, PBV turnover and contract substitutions, inspection requirements — HA will waive the requirement for conducting an on-site Housing Quality Standard (HQS) inspection prior to putting a unit under or remaining under housing assistance payments (HAP) contract and will allow owner’s certification that the owner has no reasonable basis to have knowledge that life-threatening conditions exist in the unit. •HQS: housing quality standards; space and security — HA will waive space requirements for a participant that needs to add a member to the household due to a COVID-19 related emergency. •Extension of deadline for programmatic obligation and expenditure of capital funds — Although the HA anticipates obligating and expending capital funds within the time period allocated by HUD, the extension will be utilized if needed for COVID-19 related reasons. Page 24 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 24 2021 Housing Activity Report Housing Choice Voucher Program (HCV) – 50% AMI or below The HA is allocated a total of 342 Housing Choice Vouchers from HUD. This rent assistance program provides rent subsidies for low-income individuals and families in privately owned, existing market rate housing units. The rent subsidy is paid directly to the owner of the rental property by the Housing Authority (HA) with funds provided by HUD. The HA administers tenant-based, project-based and newly awarded special program vouchers as noted below. 54 vouchers of the HA’s allocation are designated for use in four privately owned developments (Excelsior & Grand, Vail Place, Wayside, and Perspectives) and are referred to as project-based vouchers. The average income of voucher holder households in St. Louis Park is $16,441 which is below 30% AMI. HCV participants pay 30% of their income towards rent and can choose to pay up to 40%. The 2021 annual budget for HCV was $3,778,980. Despite the number of HCV units allocated to a Housing Authority by HUD, HAs are limited in the number of vouchers that can be administered by the budget authority allocated by HUD. Family Unification Vouchers (FUP) The Housing Authority (HA) was awarded 12 Family Unification Vouchers (FUP) at the end of 2019 and an additional 15 units in 2020. FUP is a program in which Housing Choice Vouchers (HCVs) are provided in order to lease decent, safe, and sanitary housing in the private housing market to: •Families for whom the lack of adequate housing is a primary factor in either: the imminent placement of the family’s child(ren) in out of home care or the delay in the discharge of the child(ren) to the family from out of home care. There is no time limitation on family FUP vouchers, or •Youth who are at least 18 years or and not more than 24 years old who: left foster care at age 16 or older to will leave foster care within 90 days and are homeless or at risk of homelessness. FUP vouchers used by youth were previously limited by statute to 36 months of housing assistance. The CARES Act has changed the limit to 60 months The HA is partnering with Hennepin County on this program. Applicants are provided through the Coordinated Entry process. 24 FUP vouchers were utilized in 2021. Foster Youth to Independence (FYI) – New vouchers awarded – 50% AMI and below The Foster Youth to Independence (FYI) initiative was announced in 2019. The FYI initiative allows Housing Authority’s (HA) who partner with a Public Child Welfare Agency (PCWA) to request targeted Housing Choice Vouchers (HCVs) to serve eligible youth with a history of child welfare involvement that are homeless or at risk of being homeless. Rental assistance and supportive services are provided to qualified youth for a period of up to 36 months. Hennepin County contacted the HA with a request to partner in the administration of the FYI program. The HA will administer the rental assistance vouchers for the participants, while the county is responsible for providing or engaging service agencies to provide the required support services. In addition to St. Louis Park, Hennepin County has entered into agreements with three additional metro area HAs and is seeking to issue up to 100 vouchers. The regulations overseeing the issuance and administration of the FYI rental vouchers are the same as those for Housing Choice Vouchers (HCV) with the exception of the 36-month limit on assistance. HUD is the funding source for both the housing assistance and the administration fees for the program, similar to the HCV program. The program was initially only available to HAs that did not administer FUP vouchers, but it has since been expanded to all HAs with an HCV Annual Contributions Contract (ACC). Funding is available either competitively though an FYI Notice of Funding Availability (NOFA) or noncompetitively on a rolling basis. Hennepin County is receiving vouchers through the noncompetitive process. HAs are limited to 25 vouchers in a fiscal year with the ability to request an additional 25 vouchers for those HAs with 90 percent Page 25 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 25 2021 Housing Activity Report or greater utilization of these vouchers. The City of St. Louis Park was offered 25 vouchers. The first referral will come in spring 2022. Mainstream The Housing Authority (HA) was awarded seven additional Mainstream vouchers via the CARES Act in 2020, adding to the eight mainstream vouchers awarded previously. These Mainstream vouchers provide vouchers to assist non-elderly persons with disabilities who are transitioning out of institutional or other segregated settings, at serious risk of institutionalization, homeless, or at serious risk of homelessness. It was designed to further to the goals of the Americans with Disabilities Act (ADA) by helping persons with disabilities live in the most integrated setting. Families or individuals with a Mainstream voucher must have a household member at least 18 years of age and less than 62 years of age with a disability at the time of eligibility determination. 15 mainstream vouchers were utilized in 2021. The HA is partnering with Hennepin County for referrals for the seven additional vouchers that were awarded. The population being served by this partnership includes those that meet eligibility requirements and were not able to stay in shelter due to COVID 19 concerns and had to be placed in hotels. Lou Park Apartments Lou Park is an apartment complex in St. Louis Park owned and managed by Bigos Management. Bigos notified tenants that in 2018 they would be completing a contract transfer of their 32 project-based units to another property. As of July 1, 2019, tenants were eligible to request to move to the new property or remain at Lou Park using an enhanced voucher administered by the St. Louis Park Housing Authority. This added 32 additional vouchers to the Housing Authority’s allocation. Initially, 31 tenants chose to utilize the tenant protection voucher at Lou Park. As of December 31, 2021, 21 remained at Lou Park, the remainder have chosen to use their voucher to move to a different complex. Perspectives Perspectives is a community non-profit organization located in St. Louis Park that provides supportive housing to low-income families that are homeless and are dual diagnosed (chemical and mental health diagnosis). Perspectives is one of the largest therapeutic supportive housing programs for women and children in Minnesota, housing approximately 75 women and 130 children and has been operational in St. Louis Park for 28 years. HUD notified Perspectives in 2020 that their recent application for funding renewal of the rental subsidy was not selected for funding and their funding would expire 9/30/2020. Perspectives, Inc. made a request to the Housing Authority (HA) for an allocation of twelve (12) project- based units (PBV); two one-bedroom and 10 two-bedroom units. These PBV units would replace current income-based rent subsidies funded through HUD’s Continuum of Care Permanent Rental Assistance program. The HA board approved the additional project-based vouchers and the approval of the contract at the September 2020 meeting. The effective date of the contract for the PBV funding is October 1, 2020, and the initial term of the contract will be 5 years. As of December 31, 2021, all 12 of the units had been filled by Perspectives. Wayside The Housing Authority (HA) has provided project based assistance (PBA) to Wayside House properties located at 1341 and 1349 Jersey Avenue South since 2003. Wayside provides supportive housing and programming for women in recovery. Wayside currently has 16 project based vouchers and they self- subsidize rents on four of their units. Page 26 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 26 2021 Housing Activity Report Table 9: HCV Lease-Up Report Housing Choice Voucher – Lease Up Report December 31, 2021 Units HUD Allocated Vouchers 342 Vouchers Issued (Executed, Pending, Outstanding and Leased Project Based, excludes Port-outs) 267 Unleased Project-Based (PB) 2 Vouchers Outstanding 4 Executed St. Louis Park Contracts: Housing Choice Vouchers 156 Tenant Protection Vouchers 21 (Lou Park) Excelsior & Grand 18 Vail Place 8 Wayside Supportive Housing 12 Perspectives 11 Mainstream 13 FUP 23 263 Port-Ins 30 Port-Outs 69 Pending Port-Outs 4 Executed and Pending 336 Total Administered 332 Summary: % Utilized, Pending, Outstanding & Unleased PB 98% Stable HOME Rental Assistance Program – 50% AMI The Stable HOME program provides rent assistance to low-income singles and families who were homeless or would otherwise be at risk of homelessness. Rent assistance is limited to three years. During the three years, participants must establish good rental histories. They must also work to improve their earnings enough to where they do not need rental assistance. The program is administered by the Housing Authority, but participants are free to choose a rental unit anywhere in Hennepin County except Minneapolis. Participants are referred to the program by Hennepin County. This program is funded with federal HOME funds allocated to the county. 41 families throughout suburban Hennepin County were served by this program 2021. Kids in the Park Rent Assistance Program – 50% AMI and below – city funded Kids in the Park provides rent assistance to households with school-age children for up to four years. Participants receive a flat, monthly rental assistance subsidy that decreases annually over the four-year period. Eligible households must have an income at or below 50% of the area median income, a child attending school in St. Louis Park, one parent or guardian that works a minimum of 28 hours per week, live in rental housing in St. Louis Park, and comply with their lease. Families with disabled and elderly heads of household do not need to comply with the work requirement and due to COVID 19 the Housing Authority temporarily waived the 28 hour per week work requirement for all households. The program was developed in partnership with the St. Louis Park Emergency Program (STEP) and the St. Louis Park School District. The Kids in the Park program began serving 9 families in December 2017. Funding was increased for 2018 to serve 14, 2019 served 17 families and in 2020 that number increased to 20 families. In 2021, the Kids in the Park program remained at 20 families. Page 27 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 27 2021 Housing Activity Report 8. PROGRAM DESCRIPTIONS Technical, Design, and Conservation Services Architectural Design Service – no income restrictions This service provides an architectural consultation for residents to assist with brainstorming remodeling possibilities and to raise the awareness of design possibilities for expansions. Residents select an approved architect from a pool developed in conjunction with the MN Chapter of the American Institute of Architects. All homeowners considering renovations are eligible for this service; however, to ensure committed participants, residents make a $25 co-pay. Remodeling/Rehab Advisor – no income restrictions The intention of this service is to help residents improve their homes (either maintenance or value- added improvements) by providing technical help before and during the construction process. All homeowners are eligible for this service regardless of income. Resident surveys indicated that homeowners valued the service and would recommend it to others. The city contracts with the Center for Energy and Environment (CEE) for this free service to homeowners. Home Energy Squad Enhanced Visit – no income restrictions Home Energy Squad Enhanced program is a comprehensive residential energy program designed to help residents save money and energy and stay comfortable in their homes. The program, which began in March 2012, is administered by the Center for Energy and Environment (CEE). The city pays $50 per resident visit which is leveraged with funds from Xcel Energy, Center Point Energy, and CEE. The cost per resident is $50 per enhanced visit. Free home energy visits are available to low-income households. The home energy squad consultant evaluates energy saving opportunities and installs the energy- efficiency materials the homeowner choses including door weather stripping, water heater blanket, programmable thermostat, compact fluorescent light bulbs, high efficiency shower heads, and faucet aerators. They will also perform diagnostic tests including a blower door test to measure the home for air leaks, complete an insulation inspection, safety check the home’s heating system and water heater and help with next steps such as finding insulation contractors. All single family and duplex homeowners are eligible. Renters qualify for the installed visit ($30) without diagnostic tests. The Home Energy Squad Enhanced visits qualified residents for CEE’s low interest financing and utility rebates, and they also notify residents of the city loan and rebate opportunities. Annual Home Remodeling Fair The cities and school district community education departments of St. Louis Park, Hopkins, Minnetonka, and Golden Valley co-sponsor the annual home remodeling fair. The fair provides residents an opportunity to attend seminars, talk with vendors and city staff about permits, zoning, home improvement loans, and environmental issues related to remodeling. The fair is a self-sustaining event and vendor registration fees cover the costs. Home Remodeling Tour The annual tour is designed to meet the housing goal to remodel and expand single-family owner- occupied homes. The self-guided tour of six homes provides a showcase of a variety of home remodeling projects to provide ideas, information, and inspiration to other residents considering remodeling. Page 28 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report Page 28 2021 Housing Activity Report Construction Management Plan The city recognizes that many households are looking for larger homes and supports keeping families in the city. As a result, significant additions and/or tearing down of existing homes and rebuilding larger homes is becoming more common. Because St. Louis Park is a fully built community, these major additions and construction of new homes impacts the surrounding neighbors. Effective November 15, 2014, major additions (second story additions or additions of 500 square feet or more), demolitions and new construction need to comply with a Construction Management Plan (CMP) per City Code 6-71. Major additions, tear downs and new construction are required to send a written neighborhood notification to neighbors within 200 feet of the property. Demolitions and/or new construction also require a neighborhood meeting and signage. Financial Programs In an effort to encourage growing families to stay in St. Louis Park, the city has developed and implemented a number of programs toward this effort. Discount Loan Program – serves households with incomes at or below $156,000 This program encourages residents to improve their homes by “discounting” the interest rate on the Minnesota Housing Finance Agency (MN Housing) home improvement loans for income eligible residents. Eligible improvements include most home improvement projects with the exception of luxury items such as pools. Implementation of discounting of MHFA loans began in late 1999 as a pilot project. In the past the city would buy down the interest rate for income eligible households. Since 2000 the interest rate has been below the buy down rates, so the city has not had to buy down the interest rate for this program in 2020 or 2021. Residents can apply through CEE to utilize this loan. Move – Up Transformation Loan – 100/115% AMI The purpose of this loan is to encourage residents with incomes at or below 100/115% of median area income ($120,600 for a family of one - four) to expand their homes. The program provides deferred loans for 25% of the applicant’s home expansion project cost, with a maximum loan of $25,000. The revolving loan pool will continue to fund future expansions. This loan requires significant upfront work by the residents, from deciding on the scope of the project to selecting contractors. Loan guidelines are: •Only residents making significant expansions are eligible. The minimum project cost must exceed $35,000. •The maximum loan amount is $25,000. •The loan has 0% interest with a carrying cost fee of 3% paid by the borrower which covers the lender’s administrative fee. •Loan is forgiven after 30 years if homeowner continues to live in the home. Green Remodeling Program & Energy Rebates – 115% AMI $120,600 The Green Remodeling Program includes the Home Energy Squad Enhanced home visit program, use of energy rebates, and access to CEE’s Home Energy Loan. The city provides a match of 50% of gas and electric utility rebates for energy efficient furnaces, water heaters, air conditioners and qualifying air sealing and insulation. CEE also provided low interest loans to residents making qualifying energy improvements and St. Louis Park residents can take advantage of this loan. This energy improvement loan has no income restrictions and there is no cost to the city. Emergency Repair Grant The city offers emergency repair grants for households below 50% area median income to make immediate emergency repairs such as furnace replacement, roof repair, plumbing or electrical emergencies, etc. This program is administered by Sustainable Resources Center (SRC). Page 29 Study session meeting of March 28, 2022 (Item No. 8) Title: 2021 housing activity report