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HomeMy WebLinkAbout2022/02/28 - ADMIN - Minutes - City Council - Study Session Official minutes City council study session St. Louis Park, Minnesota Feb. 28, 2022 The meeting convened at 6:40 p.m. Councilmembers present: Mayor Jake Spano, Sue Budd, Lynette Dumalag, Larry Kraft, Nadia Mohamed, and Margaret Rog Councilmember absent: Tim Brausen Staff present: City Manager (Ms. Keller), Deputy City Manager/Director of Operations and Recreation (Ms. Walsh), Community Development Director (Ms. Barton), Engineering Director (Ms. Heiser), City Clerk (Ms. Kennedy) Elections Specialist (Mr. Sund), Redevelopment Administrator (Ms. Monson), Economic Development Manager (Mr. Hunt), Communications Manager (Ms. Smith) Guests: 1. Community and civic engagement system introduction Mr. Sund presented the report and gave an overview of how the city has approached community and civic engagement in the past and considerations going forward. Councilmember Budd asked if neighborhood associations fit in with civic engagement. Mr. Sund stated yes, neighborhood associations are a great resource the city utilizes to promote engagement. Councilmember Mohamed asked if the engagement strategy used depends on the project. Mr. Sund stated yes, staff considers what the goals of outreach and engagement are for a particular project or initiative and then designs the strategy based on how the public will be involved in the process. Ms. Kennedy stated as a representative government the city’s role is often to inform residents of council actions. However, engagement is a spectrum, and the city does have opportunities to use strategies that move beyond informing and include consulting, involving, or collaborating. As council discusses topics within this system, staff would like th em to consider if current strategies are meeting the needs of the community and achieving the goals and outcomes the council wants to see. Councilmember Rog asked if technology will be interwoven into these conversations and discussions. She asked how lack of technology and access will play into this. Mr. Sund stated technology and accessibility are very important components when designing engagement strategies because the city wants to provide opportunities that serve a broad audience. Councilmember Rog stated things seem to go better when the city is clear about expectations in communications to the public. She noted it would be good to find ways to help people understand processes better and learn about the opportunities for participat ion and what does or does not impact the decision-making process. She noted there are challenges with public initiatives if a councilmember does not take something on as an issue. She added this might be a place for public forums, outside of things council is initiating. DocuSign Envelope ID: 8EBAFC20-E7E2-4807-A0D2-C51D8456BAC5 Study session minutes -2- Feb. 28, 2022 Ms. Kennedy stated staff is supportive of looking into ways to make processes more accessible and transparent and setting clear expectations with the public on their role and how they can engage with the council. Councilmember Dumalag stated she would be curious to see how consulting could be involved moving forward and looking at being creative on how the city engages with residents. Councilmember Kraft stated he likes the question about the goal of engagement and what does success look like. He asked what staff envisions as an answer to this. Mr. Sund stated staff needs to generally understand what council’s expectations or goals are for community engagement so strategies can be designed to meet those objectives. Councilmember Kraft stated that time will need to be built into the process. He asked staff what they want from council for this topic tonight . Mr. Sund stated staff wanted to begin with an initial overview to start from a place of common understanding in terms of how public participation is discussed and defined. He noted the goal is that the council understands and is supportive of the framework. Councilmember Rog stated engaging the public on developments and pavement management projects is important and something that needs to be discussed specific to certain areas. She noted there is a need to adjust public engagement here and notification s about neighborhood meetings. Mr. Sund stated this will be discussed when talking about process outcomes. Mayor Spano stated by and large the city’s community engagement is excellent. He noted some folks choose not to engage until something comes up, which is fine. He added it would be helpful to know the strategies being used for different projects or initiatives. He stated he appreciates a feedback loop of what worked and what did not. He noted discussing infrastructure projects with residents that are going into neighborhoods seems to be where there is an increase in engagement, and when people seem to feel things are being done to them versus with them. He is very interested in this and exploring ways the council can better support these efforts. He stated he appreciated going through this discussion and did not recall seeing engagement presented like this in the past . Councilmember Mohamed stated she is liking this conversation and noted this will be a shared responsibility and shared ownership of decisions with residents, adding she likes where this is going. She added it is important to always consider who is at the table when decisions are being made. Councilmember Rog noted work groups, or ad hoc groups, along with neighborhood groups, help to engage the community and can be an important tool. Councilmember Dumalag stated she would be interested in expanding existing boards and commissions workplans to include them in the public engagement process. Mayor Spano stated he will be curious if there is a way to try to provide opportunities and resources for people who might not step forward or are hesitant to step forward into a difficult space, how will their voice get heard, and their thoughts reflected. Ms. Kennedy stated DocuSign Envelope ID: 8EBAFC20-E7E2-4807-A0D2-C51D8456BAC5 Study session minutes -3- Feb. 28, 2022 alternative forms of engagement are appreciated when offered and staff continues to look for ways to broaden the scope of opportunities to allow for meaningful communication. Councilmember Budd added she wants to be sure the community is reflected within this process. Mr. Sund stated yes, adding racial equity and inclusion will be reflected within the process. 2. Business terms for purchase and redevelopment contract with Bigos – 9920 Wayzata, LLC (Ward 4) Mayor Spano referenced concerns when Meadowbrook became Era on Excelsior. He noted there is no mechanism to ensure a smooth transition in cases such as this and asked what might staff have in place to avoid issues in the future when in a similar situation. Ms. Monson stated the housing department has adopted several processes that deal with rental properties, turnover, and how it is handled. Ms. Barton added anytime a NOAH property changes hands, the renters are protected for 90 days from eviction without cause or having rents raised. She added the 7-day notice was added due to non-payment of rent or other financial obligations. She noted the city did away with the crime-free requirements as well. Mayor Spano asked how this property is being managed . Ms. Barton stated Bigos accepts more housing choice vouchers than others do, and the city has a good working relationship with Bigos. She added tenants don’t have any issue with Bigos Management and there have been no problems. She stated there have been no concerns and they work through any issues with city staff. Councilmember Rog stated there are 233 units proposed and asked if there are 186 market rate units. Ms. Barton stated yes, that’s correct. Councilmember Rog noted this leaves 47 units that are affordable at 50% AMI and of those, 20 are 1-bedroom, 18 are 2-bedroom, and 2 are 3- bedroom. Mr. Neuman from Bigos stated there are 10 alcove units, 16 are 1-bedroom units, 3 are 1- bedroom plus den units, 16 are 2-bedroom units, and 2 units are 3-bedroom units. Councilmember Rog stated alcove and 1-bedroom plus den would be 1-2 people. She noted the income range to qualify for those affordable units would be $36,000 for 1 person. Ms. Barton stated it depends on the size of the family renting the unit. Councilmember Rog asked if there are other mass transit options near the site. Ms. Monson stated there are rapid bus routes with direct access to downtown and no others planned at this time. She added the Hopkins Crossroad park-and-ride ramp is close, just to the east. Councilmember Rog asked if the city ever looks at transit options for those at 50% AMI that may not have access to vehicles. Ms. Monson stated Met Council reviews all the city’s transit routes every few years to see who they serve and what the routes are. She noted they will review SWLRT routes as well. DocuSign Envelope ID: 8EBAFC20-E7E2-4807-A0D2-C51D8456BAC5 Study session minutes -4- Feb. 28, 2022 Councilmember Rog asked how successful the city is in getting routes set up with Metro Transit . Ms. Monson stated very successful and noted a recent update on the Louisiana Avenue route , where there is a lot of NOAH housing, and those routes provide transit that now serve longer periods of time. Councilmember Rog asked how council can work with staff on requests related to transit routes from community members. Ms. Barton stated passing comments along to staff directly is the best way. Ms. Monson added staff will continue to look at transit route options ongoing . Councilmember Rog stated for the next 15 years, this projects housing will pay into the city $50,000 per year which will be divided between the city, county, and school district. She asked if staff feels this is adequate income to cover the mental health calls, public safety needs, increased traffic, and road construction. Ms. Monson stated as part of the TIF requirements, staff reaches out to public safety staff and asks if they need additional resources related to a development. With this particular development, public safety staff have indicated they do not need any additional resources to serve these households. Councilmember Rog stated there are some amenities and asked if any are public amenities. Ms. Monson stated they are all private. Councilmember Rog asked what the triggers for the inclusionary housing policy are . Ms. Monson stated a TIF request or a PUD rezoning requires developments adhere to the inclusionary housing policy. She mentioned that the developer is proposing doubling the requirements of the inclusionary housing policy. Councilmember Rog asked if the developer was not receiving TIF, would they still be required to provide 10% at 50% AMI. Ms. Monson stated yes because they received a PUD. Councilmember Dumalag asked about the racial equity hiring requirements and how the construction company will be implementing the city’s racial equity goals to this project . Ms. Monson stated staff met with the construction company to go over racial equity goals and noted they have experience providing the business enterprise process in leadership or ownership but have less experience with workforce. She added they are interested in doing this. Councilmember Kraft asked the Bigos team what their overall view and strategy is around affordable housing. Mr. Hedberg of Bigos stated they have 9,500 units in their portfolio and of that 45% are naturally affordable, which is about 4 ,000 units that are lower than 60% AMI. He added they have 5 affordable communities in their portfolio which are Section 8 and have been under their management for over 30 years. He also noted within the last 4 years, they have invested over $4 million into those existing units. Councilmember Kraft asked if it is important to them. Mr. Hedberg stated yes, it is very important to them. Councilmember Kraft asked about Bigos commitment to sustainability of places they build and own. Mr. Hedberg stated they have built a couple buildings in the last few years, adding electric DocuSign Envelope ID: 8EBAFC20-E7E2-4807-A0D2-C51D8456BAC5 Study session minutes -5- Feb. 28, 2022 car charging stations. He noted they are very excited about the city’s requirements for solar and are looking at this more deeply, as well as looking to implement solar on another project as well. Mr. Reardon of ESG Architecture stated they will follow the energy design standards and the city’s green building policy as well as the rating system and SB2030. He added some notable features include 30% reduction in building water usage interior, 50% building reduction on the exterior, low flow fixtures, green materials, and a 75% reduction in construction waste and redirection, as well as the solar on the roof noted earlier. Councilmember Kraft referenced wage theft and unsafe working conditions and asked what they put in place to ensure this does not happen. Mr. Neumann from Bigos stated they have discussed this with city staff and the construction company, noting this has not come up, but they are more than willing to post the labor standards posters at the site, as well as certified payroll, if required. He added they will increase visibility on the site on who to contact if there is a suspicion of wage theft. He stated Bigos is notable as a top workplace and has top ratings, adding safety is something they take seriously. Mr. Hedberg stated the construction company is a national company, has an extremely good rating for safety, and that is one of the main reasons Bigos selected them, noting period safet y checks are also done on all sites. Mr. Bigos stated he is excited to move forward on this project , noting it will be a great addition to the community with 47 affordable units. Councilmember Rog stated she will vote against this TIF request as the city is too generous with TIF. She stated with this project, she is concerned with the low base rate and the impact on tax revenue and levies going forward, adding there is not enough public benefit here with only 47 affordable units, and the majority being alcove and 1-bedroom units which is not necessarily what is needed in St. Louis Park. She noted there will also be greenhouse gas emissions to deal with, and she will not support this. Mayor Spano stated this is a bitter pill to swallow, but he will su pport it because it will be of benefit to the community. He has not had a conversation with Mr. Bigos as to what happened in the transition of Meadowbrook to Era, even though that property needed help and investment. But he noted the way folks were treated there was heartbreaking and difficult, and he wanted to have an opportunity to discuss it . Mr. Bigos stated he appreciated that. He explained they did talk about this internally and what should have been done, but also noted the degree of crime in the building and unsafe issues. He stated they tried to tackle too many things too quickly and that was their mistake . Mayor Spano appreciated Mr. Bigos comments and stated he will support the project as will Councilmember Brausen. DocuSign Envelope ID: 8EBAFC20-E7E2-4807-A0D2-C51D8456BAC5 Study session minutes -6- Feb. 28, 2022 Councilmember Mohamed stated she will not support this either and agreed with Councilmember Rog’s comments. She stated possibly the city’s funding should go into homeownership versus rental. Councilmember Kraft stated he would like to think more about this, but does see some go od things about it, especially since it has been a problematic place. He added it does meet city policy goals and the payback period of 15 years is on the high end, which gives him pause, but he will still consider this project. Mayor Spano asked staff for an estimate on how long it has taken for TIF notes to be paid off. Mr. Hunt stated typically TIF notes are paid off earlier and the city uses very conservative estimates, which do not include inflation. Councilmember Dumalag stated she would like more specifics from staff on the racial equity information related to this project as well as more information on the construction company , who their subs are, and if there have been previous violations. She noted these items would weigh in on her decision whether to support this project or not. Councilmember Budd asked for clarification on the actual yearly TIF amount. Mr. Hunt stated the annual TIF payment to the developer is approximately $616,000 . He stated after 14.5 years it will provide $6.3 million on the net present value. Communications/meeting check-in (verbal) Ms. Keller stated the Park and Rec brochure went to press today, and will be mailed out March 12, while registrations start March 16. Ms. Keller added the Wooddale Station Development Neighborhood meeting will be virtual and is scheduled for March 3 at 6:30 p.m., with more details on the city website. Councilmember Rog noted the Beltline meeting had a very low turnout and she hoped there would be more opportunities for feedback. She noted the developer is asking for feedback from the community and what residents are looking for in the area. She stated she will meet with Ms. Barton about creating more engagement around this project . The meeting adjourned at 8:34 p.m. 3. January monthly financial report 4. Fourth quarter investment report (Oct. – Dec. 2021) 5. Update on Sherman Associates’ proposed Beltline Boulevard Station Redevelopment (Ward 2) ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor DocuSign Envelope ID: 8EBAFC20-E7E2-4807-A0D2-C51D8456BAC5