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HomeMy WebLinkAbout2022/06/06 - ADMIN - Agenda Packets - City Council - Regular AGENDA JUNE 6, 2022 The St. Louis Park City Council is meeting in person at St. Louis Park City Hall, 5005 Minnetonka Blvd. Members of the public can attend in person or watch on local cable (Comcast SD channel 17 and HD channel 859) or via webstream at bit.ly/watchslpcouncil. Visit bit.ly/slpccagendas to view the agenda and reports. Due to technical challenges, courtesy call-in public comment is not available for this meeting. You can provide comment on agenda items in person at the council meeting or by emailing your comments to info@stlouispark.org by noon the day of the meeting. Comments must be related to an item on the meeting agenda. The city recognizes the value of the call-in option to provide access to those who can’t attend meetings in person and is working on a reliable solution. 5:15 p.m. ECONOMIC DEVELOPMENT AUTHORITY – council chambers 1. Roll call 2. Approval of EDA agenda 3. Approval of agenda and items on EDA consent calendar Recommended action:**Motion to approve the agenda as presented and items listed on consent calendar; and waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from agenda or move items from consent calendar to regular agenda for discussion.) 3a. Accept EDA disbursement claims for the period of April 30 through May 27, 2022. 3b. Motion to adopt resolution approving an easement amendment between the EDA and Metropolitan Council regarding permanent transit and utility easements associated with the Wooddale Station Redevelopment Site. 3c. Motion to Adopt Resolution approving the First Amendment to the Purchase and Redevelopment Contract between the EDA and Bigos-9920 Wayzata, LLC relative to its 9920 Wayzata Boulevard development. 4. Approval of EDA minutes 4a. EDA meeting minutes of May 16, 2022 5. Unfinished business – None 6. New business – None 6a. Revised green building policy Recommended action: Motion to adopt EDA Resolution approving a revised green building policy. 6b. Establishment of the Beltline Station 1 Tax Increment Financing District Recommended action: • Motion to adopt EDA resolution approving the establishment of the Beltline Station 1 Tax Increment Financing District (a housing district) • Motion to adopt EDA resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Beltline Station 1 TIF district 6c. Establishment of the Beltline Station 2 Tax Increment Financing District Recommended action: Meeting of June 6, 2022 City council agenda • Motion to adopt EDA resolution approving the establishment of the Beltline Station 2 Tax Increment Financing District (a renewal and renovation district) • Motion to adopt EDA resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Beltline Station 2 TIF district 6d. Establishment of the Wooddale Avenue Apartments Tax Increment Financing District Recommended action: • Motion to adopt EDA resolution approving the establishment of the Wooddale Avenue Tax Increment Financing District (a housing district) • Motion to adopt EDA resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Wooddale Avenue Apartments TIF district 6e. Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments Recommended action: Motion to Adopt EDA resolution approving the Contract for Private Redevelopment between the EDA and Real Estate Equities (St. Louis Park AH I, LLLP). 6f. Establishment of the Rise on 7 Tax Increment Financing District Recommended action: • Motion to adopt EDA resolution approving the establishment of the Rise on 7 Tax Increment Financing District (a housing district) • Motion to adopt EDA resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Rise on 7 TIF district and an Interfund Loan for advance of proceeds of the Affordable Housing Trust Fund (AHTF) deferred loan 6g. Contract for private redevelopment with CommonBond Communities – Rise on 7 Recommended action: Motion to adopt EDA resolution approving the contract for private redevelopment between the EDA and CommonBond Communities/CB SLP Housing Limited Partnership. 7. Communications – None 6:30 p.m. CITY COUNCIL MEETING – council chambers 1. Call to order 1a. Pledge of allegiance 1b. Roll call 2. Presentations 2a. Proclamation recognizing Karen Bjorgan, founder of INSPIRE Program 3. Approval of minutes 3a. Study session minutes of March 28, 2022 3b. Special study session minutes of April 4, 2022 3c. Study session minutes of April 11, 2022 3d. City council meeting minutes of April 18, 2022 3e. Special study session minutes of April 18, 2022 3f. Study session minutes of April 25, 2022 Meeting of June 6, 2022 City council agenda 3g. Study session minutes of May 9, 2022 3h. City council workshop minutes of May 9, 2022 3i. Emergency city council meeting minutes of May 25, 2022 4. Approval of agenda and items on consent calendar Recommended action: **Motion to approve the agenda as presented and items listed on the consent calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda or move items from consent calendar to regular agenda for discussion.) 4a. Accept city disbursement claims for the period of April 30 through May 27, 2022. 4b. Motion to adopt Resolution approving the Contract for Private Redevelopment and the AHTF deferred loan between the city and CommonBond Communities related to the Rise on 7 development. 4c. Motion to adopt Resolution approving the Contract for Private Redevelopment and the AHTF deferred loan between the city and Real Estate Equities (St. Louis Park AH I, LLLP) related to the Wooddale Avenue Apartments development. 4d. Motion to approve first reading of Ordinance amending Chapter 36 pertaining to PUD 10 to amend the site plans for Chick-fil-A and set the second reading for June 20, 2022. 4e. Motion to approve first reading of Ordinance amending Chapter 36 pertaining to electronic signs and set the second reading for June 20, 2022. 4f. Motion to adopt Resolution to recognize Engineering Project Coordinator Tom Pecchia for more than 26 years of service. 4g. Motion to Adopt Resolution approving a revised green building policy. 4h. Motion to adopt Resolution authorizing an annual sign permit authorizing the St. Louis Park Lions Club to place temporary signs within the public right-of-way for it annual pancake breakfast event. 4i. Motion to approve a temporary on-sale intoxicating liquor license for Twin Cities Habitat for Humanity for an event at 6518 Walker Street on June 18, 2022. 4j. Motion to approve an extension until June 15, 2023, for Project for Pride in Living (PPL) to record the final plat of Unity Village Apartments. 4k. Planning commission meeting minutes of April 6, 2022. 5. Boards and commissions – None 6. Public hearings 6a. Public hearing to establish the Beltline Station 1 Tax Increment Financing District Recommended action: Mayor to open public hearing, take testimony, and then close the public hearing. Motion to adopt resolution approving the establishment of the Beltline Station 1 Tax Increment Financing District (a housing district). 6b. Public hearing to establish the Beltline Station 2 Tax Increment Financing District Recommended action: Mayor to open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the Beltline Station 2 Tax Increment Financing District (a renewal and renovation district). 6c. Public hearing to establish the Wooddale Avenue Apartments Tax Increment Financing District Meeting of June 6, 2022 City council agenda Recommended action: Mayor to open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the Wooddale Avenue Apartments Tax Increment Financing District (a housing district). 6d. Public hearing to establish the Rise on 7 Tax Increment Financing District Recommended action: Mayor to open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the Rise on 7 Tax Increment Financing District (a housing district). 6e. Public hearing on Bridgewalk Condominium Homeowners’ Association Revised Housing Improvement Area Recommended action: Mayor to open public hearing, take testimony, then close the public hearing. Motion to approve first reading of an ordinance establishing the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area pursuant to Minnesota statutes, sections 428A.11 to 428A.21 and to set second reading date for June 20, 2022. 7. Requests, petitions, and communications from the public – None 8. Resolutions, ordinances, motions and discussion items 8a. Discuss scope of damage of May 21 water main break and options for impacted residents Recommended action: Adopt staff recommended proposal to sunset the emergency fund program adopted on May 25, 2022, roll any expenses from that program into claims with the League of MN Cities Insurance Trust, and adopt an expanded financial relief program to properties affected by the May 21, 2022, watermain break. 8b. Xchange II Medical Office Building Recommended action: • Motion to adopt resolution approving the preliminary and final plat for Xchange II Medical Office Building • Motion to adopt resolution approving the conditional use permit (CUP) to allow the underground parking level of the Xchange II Medical Office Building to be built in a floodplain below the regulatory flood protection elevation 9. Communications – None **NOTE: The consent calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a councilmember or a member of the public, that item may be moved to an appropriate section of the regular agenda for discussion. St. Louis Park Economic Development Authority and regular city council meetings are carried live on civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for video on demand replays. During the COVID-19 pandemic, agendas will be posted on Fridays on the entrance doors to city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available after noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Economic development authority Meeting date: June 6, 2022 Consent agenda item: 3a Executive summary Title: Approval of EDA disbursements Recommended action: Motion to accept for filing EDA disbursement claims for the period of April 30th through May 27, 2022. Policy consideration: Does the EDA desire to approve EDA disbursements in accordance with Article V – Administration of Finances, of the EDA bylaws? Summary: The finance division prepares this report on a monthly basis for the EDA to review and approve. The attached reports show both EDA disbursements paid by physical check and those by wire transfer or Automated Clearing House (ACH) when applicable. Financial or budget considerations: Review and approval of the information follows the EDA’s charter and provides another layer of oversight to further ensure fiscal stewardship. Strategic priority consideration: Not applicable. Supporting documents: EDA disbursements Prepared by: Kari Mahan, accounting clerk Reviewed by: Melanie Schmitt, finance director Approved by: Cindy Walsh, deputy city manager 6/1/2022CITY OF ST LOUIS PARK 7:16:05R55CKS2 LOGIS400V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 5,762.00BOLTON & MENK INC ELMWOOD VILLAGE G & A OTHER CONTRACTUAL SERVICES 5,762.00 238.00CAMPBELL KNUTSON PROF ASSOC DEVELOPMENT - EDA G&A LEGAL SERVICES 238.00 35.00CITIZENS INDEPENDENT BANK DEVELOPMENT - EDA G&A TRAINING 35.00 130.00EHLERS & ASSOCIATES INC DEVELOPMENT - EDA G&A OTHER CONTRACTUAL SERVICES 130.00 11,427.50HKGIDEVELOPMENT - EDA G&A PLANNING 11,427.50 990.00KENNEDY & GRAVEN CSM TIF DIST G&A LEGAL SERVICES 870.00DEVELOPMENT - EDA G&A LEGAL SERVICES 1,860.00 1,178.12LINDSTROM RESTORATION POLICE G & A GENERAL PROFESSIONAL SERVICES 1,178.12 2,220.00REDIDEVELOPMENT - EDA G&A SUBSCRIPTIONS/MEMBERSHIPS 2,220.00 58,592.75ST LOUIS PARK CONV & VISITORS BUREAU CONVENTION & VISITORS BUREAU COST REIMBURSEMENT-CVB 58,592.75 Report Totals 81,443.37 Economic development authority meeting of June 6, 2022 (Item No. 3a) Title: Approval of EDA disbursements Page 2 Meeting: Economic development authority Meeting date: June 6, 2022 Consent agenda item: 3b Executive summary Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2) Recommended action: Motion to adopt resolution approving an easement amendment between the EDA and Metropolitan Council regarding permanent transit and utility easements associated with the Wooddale Station Redevelopment Site. Policy consideration: Does the EDA wish to approve an amendment approving and restating an easement agreement between the EDA and Metropolitan Council regarding transit and utility easements associated with the Wooddale Station Redevelopment Site? Summary: In 2017, the EDA acquired the SWLRT Wooddale Station Site (former Nash Frame property) at 5950 36th Street West from the Hennepin County Housing and Redevelopment Authority for transit-oriented development purposes. Included with the property acquisition was a Metropolitan Council permanent transportation and utility easement providing public and utility access to the Metro Greenline Extension Wooddale Avenue Station. It was noted recently by light rail staff that the easement unintentionally omitted a portion of a sidewalk serving the station area. Metropolitan Council is requesting an amendment to the easement to make sure all portions of the public sidewalk are included in the easement area. The EDA has a Preliminary Development Agreement with Wooddale Station LLC under which the parties are preparing a mutually acceptable mixed-use, transit-oriented development plan for the property (now referred to as the Wooddale Station Redevelopment Site). Under the amended agreement, the EDA anticipates selling the Site to Wooddale Station LLC in mid-2023. The proposed Easement Amendment would transfer with the land to the new owners, who have reviewed and consented to the easement. The proposed Easement Amendment was reviewed, negotiated, and revised by the EDA’s legal counsel and staff. Both recommend its approval. 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: Easement exhibit; resolution; amended and restated easement agreement Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Economic development authority meeting of June 6, 2022 (Item No. 3b) Page 2 Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2) Easement Exhibit Economic development authority meeting of June 6, 2022 (Item No. 3b) Page 3 Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2) EDA Resolution No. 22- ___ Resolution amending an easement agreement with the Metropolitan Council in connection with the Southwest Light Rail Transit Project (Green Line Extension) Whereas, the City of St. Louis Park (the “City”) and the St. Louis Park Economic Development Authority (the “EDA”) have been working with the Metropolitan Council, host cities, public agencies and public transit funders to plan for the Southwest Light Rail Transit Project (the “Project”); and, Whereas, the Project is an approximately 14.4-mile extension of the METRO Green Line, which would operate from downtown Minneapolis through the cities of St. Louis Park, Hopkins, Minnetonka, and Eden Prairie; and Whereas, the City residents, businesses, and workers will benefit from the Project because it will provide an attractive transportation option for residents and workers, and increase redevelopment opportunities in the City, potentially strengthening the City’s tax base and expanding employment opportunities; and Whereas, the Metropolitan Council, as part of its Project planning and design responsibilities, has identified properties and rights-of-way that are needed for the construction and operation of the Project; and Whereas, the EDA has entered into a preliminary development agreement (the “PDA”) with Wooddale Station LLC, a Minnesota limited liability company, as developer (the “Developer”) for an development near the Wooddale Station light rail station and in connection therewith, the Developer intends to acquire certain property owned by the EDA; and Whereas, in connection with the Project, Hennepin County Regional Railroad Authority (the “HCRRA”) previously approved and authorized the grant and conveyance of a temporary construction easement and a permanent transit and utility easement as further described in the Easement Agreement, dated May 16, 2017, (collectively, the “Original Easement Agreement”) executed by the HCRRA, as grantor, and Metropolitan Council, as grantee, to enable the grantee to construct, operate, and maintain a light rail transit system over certain property owned by the HCRRA (the “Property”); and Whereas, following execution of the Original Easement Agreement, the EDA acquired title to the Property and the Developer intends to acquire the Property from the EDA as contemplated by the PDA; and Whereas, the parties have determined that the legal description of the easement area needed to be updated to include an unintentionally omitted portion and to reflect the Property’s re-platting; and Whereas, the EDA’s Board of Commissioners (the “Board”) is now presented with a form of an Amended and Restated Easement Agreement (the “Amended and Restated Economic development authority meeting of June 6, 2022 (Item No. 3b) Page 4 Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2) Easement Agreement”), between the EDA, the Metropolitan Council, and consented to by the Developer, which amends and restates the Original Easement Agreement to update the easement area; and Now therefore be it resolved, after due consideration, that the EDA hereby approves and authorizes the amendment of the original easement as further described in the Amended and Restated Easement Agreement; and Now therefore be it resolved, that the EDA authorizes the execution of said Amended and Restated Easement Agreement by the President and the Executive Director and the approval hereby given to the Amended and Restated Easement Agreement includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the EDA and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the appropriate officers of the EDA herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf Reviewed for administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary AMENDED AND RESTATED EASEMENT AGREEMENT THIS AMENDED AND RESTATED EASEMENT AGREEMENT is made and entered into this ________ day of _________________, 2022, by and between the St. Louis Park Economic Development Authority, a public body corporate and politic and a political subdivision of the State of Minnesota (“Grantor”) and the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota (“Grantee”). RECITALS 1.Grantee has easement rights in the Grantor is the current fee owner of the real property legally described in Exhibit A of the Easement Agreement, dated May 16, 2017, and filed as Document No. T05445754 with the Hennepin County Office of the Registrar of Titles on May 30, 2017 (“Original Easement Agreement”). Hereinafter, the above property shall be collectively referred to as the “Property.” 2.The purpose of the Original Easement Agreement was to provide Grantee with permanent easement rights for both transit and utility purposes (“Permanent Transit Easement” and “Permanent Utility Easement”, respectively), as well as a temporary construction easement to enable its construction, operation, and maintenance of a light rail transit system (“LRT”) over, under, and across a portion of the Property. 3.Grantor is the current fee owner of the Property. 4.The temporary construction easement and its related extension options set forth in the Original Easement Agreement have lapsed. 5.After the execution and recording of the Original Easement Agreement, the transfer of ownership of the Property to Grantor, and Grantor’s re-platting of the Property, Grantee 1 Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 5 and Grantor have determined that the legal description for the Grantee’s Permanent Transit Easement unintentionally omitted a sidewalk serving the LRT. 6.The parties desire to amend and restate the Original Easement Agreement to amend the scope of the Permanent Transit Easement to include the unintentionally omitted portion of the legal description for the Property that will be used for sidewalk purposes in the Permanent Transit Easement and to update the legal description for the Permanent Utility Easement to reflect the updated legal description resulting from the Property’s re-platting. 8.Grantor intends to sell the Property and the Property is subject to a purchase agreement between Grantor, as seller, and Wooddale Station LLC (Wooddale), as buyer. 9.Wooddale hereby consents to this Amended and Restated Easement Agreement. NOW, THEREFORE, in consideration of the mutual agreements and covenants contained in this Agreement, the parties agree as follows: 1.The parties agree that the legal description and depiction for the Permanent Transit Easement Area shall be amended and restated as described on the attached Exhibit A.1. The legal description and depiction of the Permanent Transit Easement Area identified in the Exhibit A.1 of the Original Easement Agreement and recorded as Document No. T05445754 shall have no further force and effect. 2.The parties agree that the legal description and depiction for the Permanent Utility Easement Area shall be amended and restated as described on the attached Exhibit A.2. The legal description and depiction of the Permanent Utility Easement Area identified in the Exhibit A.2 of the Original Easement Agreement, recorded as Document No. T05445754 shall have no further force and effect. 3.The parties agree that the temporary construction easement and its extension options provided the Original Easement Agreement, recorded as Document T05445754, in Sections 1(c) and 2 and in Sections 3 and 3(a), respectively, and legally described and depicted in Exhibit A.3 have lapsed. Thus, the parties agree that Sections 1(c), 2, 3, 3(a), and 4 and Exhibit A.3 in the Original Easement Agreement are of no further force and effect in the Original Easement Agreement. 4. All other provisions of the Original Easement Agreement set forth in Document No. T05445754 except those specifically identified in this Amended and Restated Easement Agreement shall remain in full force and effect without change. IN WITNESS WHEREOF, the parties have caused this instrument to be executed in their respective names all as of the date first above written. 2 Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 6 METROPOLITAN COUNCIL SIGNATURE PAGE METROPOLITAN COUNCIL By: ____________________________________ Its: Regional Administrator Dated: __________________________________ STATE OF MINNESOTA ) ) ss COUNTY OF RAMSEY ) On the ______ day of __________________, 2022, before me, a notary public within and for the County of Ramsey, personally appeared Mary Bogie, the Regional Administrator of the Metropolitan Council, a public corporation and political subdivision of the State of Minnesota and acknowledged that she executed said instrument on behalf of the Metropolitan Council by authority of its Board. ___________________________________ Notary Public 3 Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 7 ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY SIGNATURE PAGE ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By: ___________________________________ Margaret Rog Its: President Dated: ________________________________ By: ___________________________________ Karen Barton Its: Executive Director Dated: ________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) On the _____ day of __________, 2022, before me, a notary public within and for the County of Hennepin, personally appeared Margaret Rog and Karen Barton, the President and Executive Director, respectively, of the St. Louis Park Economic Development Authority, a public body corporate and politic and a political subdivision of the State of Minnesota. ___________________________________ Notary Public 4 Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 8 CONSENT OF WOODDALE STATION LLC The undersigned Wooddale Station LLC, the purchaser on the property legally described herein and depicted in Exhibits A.1 and A.2 attached hereto, hereby consents to the execution and recording of this Amended and Restated Easement Agreement between St. Louis Park Economic Development Authority, fee owner, and the Metropolitan Council. WOODDALE STATION LLC By: ___________________________________ _______________________________ (name) Its: ___________________________________ _________________________________ (title) Dated: _________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) On the _____ day of __________, 2022, before me, a notary public within and for the County of Hennepin, personally appeared ___________________, the ____________________ of Wooddale Station LLC, a limited liability company under the laws of the State of Minnesota, on behalf of the limited liability company. ___________________________ Notary Public THIS INSTRUMENT WAS DRAFTED BY: Metropolitan Council 390 North Robert Street Saint Paul, MN 55101 5 Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 9 EXHIBIT A.1 Permanent Transit Easement Area A permanent easement for transit purposes over, under and across that part of Lot 1, Block 3, PLACE ST LOUIS PARK, according to the recorded plat thereof, Hennepin County, Minnesota, described as follows: Beginning at the northeast corner of said Lot 1; thence on an assumed bearing of South 64 degrees 21 minutes 45 seconds West, along the northwesterly line of said Lot 1, a distance of 185.28 feet; thence South 64 degrees 17 minutes 59 seconds West, continuing along said northwesterly line, a distance of 440.71 feet to the northwest corner of said Lot 1; thence South 39 degrees 00 minutes 57 seconds East, along the southwesterly line of said Lot 1, a distance of 2.19 feet; thence North 65 degrees 24 minutes 28 seconds East a distance of 242.28 feet; thence South 24 degrees 35 minutes 32 seconds East a distance of 4.73 feet; thence North 64 degrees 24 minutes 00 seconds East a distance of 92.90 feet; thence North 25 degrees 35 minutes 56 seconds West a distance of 4.64 feet; thence North 63 degrees 39 minutes 23 seconds East a distance of 251.14 feet; thence South 84 degrees 18 minutes 46 seconds East a distance of 29.38 feet; thence South 01 degree 03 minutes 00 seconds West a distance of 31.16 feet to the southeasterly line of said Lot 1; thence North 65 degrees 52 minutes 43 seconds East, along said southeast line, a distance of 4.42 feet to the southeast corner of said Lot 1; thence North 01 degree 03 minutes 00 seconds East, along the east line of said Lot 1, a distance of 52.97 feet to the point of beginning. Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 10 HOIGAARDVILLAGE ADD.HOIGAARDVILLAGE 2NDADD.HARMONY VISTACONDO CIC 1817REARRANGEMENTOFST. LOUIS PARK82120191817161514131211109OUTLOT B1BLOCK 3REARRANGEMENTOFST. LOUIS PARK121314151617181920212223BLOCK 29BLOCK 29891023222120191817161514131211BLOCK 28S01°00'49"W6.72S64°22'45"W67.27S64°21'51"W67.15S O O L I N E R A I L R O A DU N P L A T T E DHCRRA PROPERTY MAP NO 5HIGHLAND AVEWOODDALE AVEXENWOO D A V E S YOSEMITE A V E S VACATED A L L E YS64°17'59"W 440.71S64°21'45"W 185.28S61°51'33"W452.75466.09N00°40'40"E S64°21'46"W1013.96N00°40'40"E2178.44SOUTHWEST CORNER OFSEC. 16, T. 117, R. 21WEST QUARTER CORNER OFSEC. 16, T. 117, R. 21N64°23'48"E 464.13 N00°14'47"W 1864.17 N00°14'47"W 486.25 N00°17'25"W 287.68SOUTHEASTCORNER OFSEC. 16,T. 117, R. 21EAST QUARTER CORNER OFSEC. 16, T. 117, R. 21N64°24'00"E92.90N25°35'56"W4.64N63°39'23"E 251.14S84°18'46"E 29 .38S24°35'32"E4.7335TH STREET WS01°03'00"W 31 .16OUTLOT CPLACE ST LOUIS PARKPLACE ST LOUIS PARKN66°27'33"E10.88NE CORNER, LOT 1 , BLOCK 3 , PLACE ST LOU IS PARK (POB)N LINE, LOT 1NW CORNER, LOT 1SW'LY LINE, LOT 1S39°00'57"E2.19N65°24'28"E 242.28N65°52'43"E4.42SE'LY LINE, LOT 1SE CORNER, LOT 1E LINE, LOT 1N01°03'00"E52.97S64°21'45"W 366.58DRAFT-WORK IN PROCESSSOUTHWEST LIGHT RAILRIGHT OF WAY EASEMENTEXHIBITRev 103/28/2022Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 11 EXHIBIT A.2 Permanent Utility Easement Area A permanent easement for utility purposes over, under and across that part of Lot 1, Block 3, PLACE ST LOUIS PARK, according to the recorded plat thereof, Hennepin County, Minnesota, described as follows: Beginning at the northeast corner of said Lot 1; thence on an assumed bearing of South 64 degrees 21 minutes 45 seconds West, along the northwesterly line of said Lot 1, a distance of 185.28 feet; thence South 64 degrees 17 minutes 59 seconds West, continuing along said northwesterly line, a distance of 440.71 feet to the northwest corner of said Lot 1; thence South 39 degrees 00 minutes 57 seconds East, along the southwesterly line of said Lot 1, a distance of 11.44 feet; thence North 64 degrees 24 minutes 00 seconds East a distance of 3.77 feet; thence North 25 degrees 36 minutes 00 seconds West a distance of 5.71 feet; thence North 64 degrees 30 minutes 43 seconds East a distance of 63.03 feet; thence South 38 degrees 56 minutes 34 seconds East a distance of 5.74 feet; thence North 64 degrees 24 minutes 00 seconds East a distance of 516.08 feet; thence South 84 degrees 18 minutes 46 seconds East a distance of 29.68 feet to the east line of said Lot 1; thence North 01 degree 03 minutes 00 seconds East, along said east line, a distance of 30.69 feet to the point of beginning. Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 12 HOIGAARDVILLAGE ADD.HOIGAARDVILLAGE 2NDADD.HARMONY VISTACONDO CIC 1817REARRANGEMENTOFST. LOUIS PARK82120191817161514131211109OUTLOT B1BLOCK 3REARRANGEMENTOFST. LOUIS PARK121314151617181920212223BLOCK 29BLOCK 29891023222120191817161514131211BLOCK 28S01°00'49"W6.72S64°22'45"W67.27S64°21'51"W67.15S O O L I N E R A I L R O A DU N P L A T T E DHCRRA PROPERTY MAP NO 5HIGHLAND AVEWOODDALE AVEXENWOO D A V E S YOSEMITE A V E S VACATED A L L E YS64°17'59"W 440.71S64°21'45"W 185.28S61°51'33"W452.75466.09N00°40'40"E S64°21'46"W1013.96N00°40'40"E2178.44SOUTHWEST CORNER OFSEC. 16, T. 117, R. 21WEST QUARTER CORNER OFSEC. 16, T. 117, R. 21N64°23'48"E 464.13 N00°14'47"W 1864.17 N00°14'47"W 486.25 N00°17'25"W 287.68SOUTHEASTCORNER OFSEC. 16,T. 117, R. 21EAST QUARTER CORNER OFSEC. 16, T. 117, R. 2135TH STREET WS84°18 '46 "E29.68N64°24'00"E 516 .08N64°30'43"E 63.03S38°56'34"E5.74N25°36'00"W 5.71N64°24'00"E 3.77S39°00'57"E11.44OUTLOT CPLACE ST LOUIS PARKPLACE ST LOUIS PARKN66°27'33"E10.88NE CORNER, LOT 1 , BLOCK 3 , PLACE ST LOU IS PARK (POB)N LINE, LOT 1NW CORNER, LOT 1SW'LY LINE, LOT 1SE'LY LINE, LOT 1SE CORNER, LOT 1E LINE, LOT 1S64°21'45"W 366.58N01°03'00"E30.69DRAFT-WORK IN PROCESSSOUTHWEST LIGHT RAILUTILITY EASEMENTEXHIBITRev 104/12/2022Economic development authority meeting of June 6, 2022 (Item No. 3b) Title: Amendment to SWLRT Transportation Easement – Wooddale Station (Ward 2)Page 13 Meeting: Economic development authority Meeting date: June 6, 2022 Consent agenda item: 3c Executive summary Title: First Amendment to the 9920 Wayzata Blvd Redevelopment Contract – Ward 4 Recommended action: Motion to Adopt Resolution approving the First Amendment to the Purchase and Redevelopment Contract between the EDA and Bigos-9920 Wayzata, LLC relative to its 9920 Wayzata Boulevard development. Policy consideration: Does the EDA wish to amend the purchase and construction commencement dates in the approved Purchase and Redevelopment Contract with Bigos-9920 Wayzata, LLC to provide the redeveloper sufficient time to secure required building permits for its proposed 9920 Wayzata Boulevard development? Summary: On March 21, 2022, the EDA approved a Purchase and Redevelopment Contract with Bigos-9920 Wayzata, LLC. Under the contract, the redeveloper agreed to purchase former right- of-way from the EDA and construct a 250-unit apartment building called 9920 Wayzata Blvd. Per the contract, the redeveloper is required to close on the property by July 1, 2022 and commence construction by August 1, 2022. Due to a miscommunication between the architecture team and the redeveloper regarding project timing, the redeveloper is requesting an amendment to these dates within the contract. Per the architect, the building plans will not be ready to be submitted to the city for permit review until July 1, 2022. The review process typically takes about six weeks from the time the permits are submitted until they are ready to be issued. The Contract requires the building plans be ready for permits to be issued before the EDA will sell property to the redeveloper. Due to this timing, the redeveloper will not be able to meet the property closing and project commencement deadlines specified in the Contract. Staff supports amending the purchase and commencement dates to allow the redeveloper sufficient time to secure building permits for the project. To provide sufficient time for the redeveloper to obtain its building permits, staff and the EDA attorney recommend amending the dates within the Purchase and Redevelopment contract to require the developer to close on the EDA-owned right-of-way by November 1, 2022 and start construction no later than November 30, 2022. It is anticipated that the purchase and construction commencement will occur several months earlier than these dates, but staff would like to build in additional time out of an abundance of caution to avoid bringing additional amendments to the EDA. 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: Resolution; amendment available in community development department Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of June 6, 2022 (Item No. 3c) Page 2 Title: First Amendment to the 9920 Wayzata Blvd Redevelopment Contract – Ward 4 EDA Resolution No. 22-____ Resolution Approving a First Amendment to the Purchase and Redevelopment Contract between the St. Louis Park Economic Development Authority and Bigos- 9920 Wayzata, LLC Whereas, the Authority and the City of St. Louis Park, Minnesota have heretofore approved the establishment of the 9920 Wayzata Blvd Tax Increment Financing District (Bigos Development), a housing district (the “TIF District”), within Redevelopment Project No. 1 (the “Project”), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project; and Whereas, the Authority owns certain property (the “Property”) within the Project, which it plans to convey to Bigos-9920 Wayzata, LLC (the “Redeveloper”) and the Authority has agreed to provide certain tax increment financing assistance for purposes of constructing approximately 233 units of multifamily affordable rental housing and approximately 203 structured parking stalls (the “Minimum Improvements”), pursuant to a Purchase and Redevelopment Contract, dated as of March 21, 2022 (the “Contract”); and Whereas, the Authority and the Redeveloper have negotiated and propose to execute a First Amendment to the Purchase and Redevelopment Contract (the “First Amendment”), pursuant to which the deadline for closing on the sale of the Property and the commencement of construction of the Minimum Improvements are extended; and Whereas, the Board has reviewed the First Amendment and finds that the execution thereof and performance of the Authority’s obligations thereunder are in the best interest of the City and its residents. Now therefore be it resolved by the St. Louis Park Economic Development Authority that the First Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the First Amendment by such officials shall be conclusive evidence of approval. It is further resolved that the President and Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. It is further resolved that Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Economic development authority meeting of June 6, 2022 (Item No. 3c) Page 3 Title: First Amendment to the 9920 Wayzata Blvd Redevelopment Contract – Ward 4 Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Meeting: Economic development authority Meeting date: June 6, 2022 Minutes: 4a Unofficial minutes EDA meeting St. Louis Park, Minnesota May 16, 2022 1. Call to order President Rog called the meeting to order at 6:20 p.m. 1a. Roll call Commissioners present: President Rog, Sue Budd, Larry Kraft, Nadia Mohamed (arrived 6:25 p.m.) and Jake Spano Commissioners absent: Tim Brausen and Lynette Dumalag Staff present: City Manager (Ms. Keller), City Attorney (Mr. Shepherd), Interim Information Resources Director (Ms. Smith) 2. Approval of agenda It was moved by Commissioner Spano, seconded by Commissioner Kraft, to approve the EDA agenda as presented. The motion passed 4-0 (Commissioners Brausen, Dumalag and Mohamed absent). 3. Approval of consent agenda and consent calendar 3a. Accept EDA disbursement claims for the period of March 26 through April 29, 2022. 3b. Adopt EDA Resolution 22-16 for Sherman Associates’ application for a Hennepin County Transit Oriented Development (TOD) grant for its Beltline Station Development. 3c. Adopt EDA Resolution 22-17 of support for Wooddale Station LLCs’ application for a Hennepin County Transit Oriented Development (TOD) grant. It was moved by Commissioner Spano, seconded by Commissioner Kraft, to approve the EDA consent agenda as presented. The motion passed 4-0 (Commissioners Brausen, Dumalag and Mohamed absent). 4. Approval of EDA minutes 4a. EDA meeting minutes of April 4, 2022 Economic development authority meeting of June 6, 2022 (Item No. 4a) Page 2 Title: EDA meeting minutes of May 16, 2022 It was moved by Commissioner Kraft, seconded by Commissioner Budd, to approve the EDA meeting minutes of April 4, 2022, as presented. The motion passed 5-0 (Commissioners Brausen and Dumalag absent). 4b. EDA meeting minutes of April 18, 2022 It was moved by Commissioner Spano, seconded by Commissioner Kraft, to approve the EDA meeting minutes of April 18, 2022, as presented. The motion passed 5-0 (Commissioners Brausen and Dumalag absent). 4c. EDA meeting minutes of March 21, 2022 It was moved by Commissioner Spano, seconded by Commissioner Kraft, to approve the EDA meeting minutes of March 21, 2022, as presented. The motion passed 5-0 (Commissioners Brausen and Dumalag absent). 5. Unfinished business – none 6. New business – none 7. Communications – none 8. Adjournment The meeting adjourned at 6:28 p.m. ______________________________________ ______________________________________ Melissa Kennedy, secretary Margaret Rog, president Meeting: Economic development authority Meeting date: June 6, 2022 Action agenda item: 6a Executive summary Title: Revised green building policy Recommended action: Motion to adopt EDA Resolution approving a revised green building policy. Policy consideration: Does the proposed revised green building policy meet the expectations of the economic development authority (EDA)? Summary: The EDA adopted the city’s green building policy in 2010 and amended the policy in 2014 and 2020. The policy includes a set of sustainable building requirements that developers elect to adhere to in exchange for city financial assistance and/or certain voluntary and discretionary zoning approvals. In the past few years, the city has refined its goals and desired requirements for green buildings while building technologies have improved and municipal policy frameworks have been standardized. Staff propose an amended and restated policy that follows a new “third-party rating system plus overlay” framework and requires green building elements that more closely reflect the city’s goals and values. The proposed revisions will streamline the current process and provide flexibility to the developer, utilizing a consistent rating framework, while advancing the city’s environmental stewardship goals. Financial or budget considerations: Adopting the revised green building policy will require that developers design and construct their buildings under a third-party rating system. A higher performing and more sustainable building will provide benefits to the community for many decades, however, the additional costs associated with the third-party rating system chosen and each of the overlay requirements will be incurred by the developer. These additional costs will likely result in higher tax increment financing (TIF) requests from developers and may push those requests beyond the EDA’s preferred 15-year TIF term. Staff intend to continue contracting with a consultant, LHB, for technical assistance services; these costs are budgeted annually in community development and expenditures fluctuate depending on the number of buildings subject to the policy and the amount of technical assistance requested by the developer and city staff. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion EDA Resolution Study session report – May 9, 2022 (pages 17-33) Exhibit A: green building policy Prepared by: Emily Ziring, sustainability manager Julie Grove, community and economic development analyst Sean Walther, planning manager Reviewed by: Brian Hoffman, director of building and energy Karen Barton, community development director/EDA executive director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 2 Title: Revised green building policy Discussion Background: A report (attached) was delivered to city council and the EDA at the May 9, 2022 study session explaining the proposed revised policy in detail. During the May 9 study session on the revised policy, council noted their support for the revisions overall. A few council members expressed discomfort with the notion of developers using the green building policy to justify larger TIF requests, stating that developers would benefit financially from implementation of the policy and therefore should not be requesting or approved for larger amounts of financial assistance from the city for specific projects. In an effort to address this concern, this report aims to provide clarity around who would benefit from the revised policy and how. Present considerations: As detailed in the policy, each requirement comes with its own specific benefits: Requirement Benefit Beneficiary Third-party rating system certification Buildings certified under a rating system and marketed as “green” may attract prospective occupants Developers Renewable energy Additional clean energy on the grid Community Potential to lower electricity bills for building owners and tenants Occupants, owners Building electrification Eliminates greenhouse gas emissions from the extraction and transportation of natural gas Community Prepares building loads to be powered entirely with carbon-free electricity as the grid transitions Community Improves indoor air quality and occupant health Occupants Eliminates cost of natural gas infrastructure Community Electric vehicle service equipment Future-proofs building for coming increase in EV sales and leases Occupants Marketable feature for prospective tenants Developers Waste reduction and management Recaptures embodied carbon Community Reduces need for raw building materials Community Supports material reuse Community Reduces greenhouse gas emissions Community Promotes organics recycling in multifamily buildings Occupants Healthy soils Increases carbon sequestration in soil Community Promotes growth of healthy landscaping, avoiding need to replant Developers Reduces need for pesticides and fertilizers Occupants, owners Increases biodiversity Community Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 3 Title: Revised green building policy Increases water retention, reduces erosion, and prevents polluted storm runoff from contaminating wetlands, lakes and streams Community Supports market for compost Community Stormwater management Flood mitigation Occupants, owners, community Reduces need for potable water for irrigation Occupants, owners Protects environmentally sensitive site features Community Increases water retention, reduces erosion, and prevents polluted storm runoff from contaminating wetlands, lakes and streams Community Efficient building benchmarking Monitoring whole building energy use intensity and comparing to similar buildings annually helps control owners’ costs Occupants, owners Tracking building performance will inform property owners about effects of green building Developers, owners Compliance triggers eligibility for extra city cost sharing incentives for property owners seeking additional energy efficiencies Occupants, owners Commissioning Fewer change orders Developers Maximizes energy efficiency, environmental health and occupant safety Occupants, owners Facilitates efficient on-going operations and maintenance of the facility through training and documentation Owners The city’s plans and policies recognize there is a cost to the community if development does not incorporate the elements of the green building policy. While a few of the policy requirements have the potential for financial benefits to projects (namely marketability of new buildings and streamlined construction), the bulk of the policy elements benefit building occupants and the community at large. They do not necessarily directly payback in the near-term project proforma, which determines if the project is financially feasible to build. However, they are in keeping with the city’s community-wide climate action goals and its commitment to environmental stewardship. Adopting the revised green building policy will require that developers pay to design and construct their buildings under a third-party rating system and pay for additional costs associated with each of the overlay requirements regardless of third-party rating system chosen. The estimated additional upfront cost per square foot for certification under each of the proposed rating systems plus the overlay requirements ranges from $1.11 per square foot to $13.23 per square foot, meaning that adherence to the policy may result in design and construction costs that exceed a developer’s budget and result in larger TIF requests, including some beyond the EDA’s preferred 15-year TIF term. In these cases, council has some options. The revised green building policy was written to very comprehensively address the community’s broad list of strategies for more sustainable development. As has been the case Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 4 Title: Revised green building policy since its inception, the green building policy, and other policies’, requirements may be waived, in whole or in part, by the EDA and/or city council after consideration of the advantages and disadvantages of a waiver, and upon demonstration by the developer of a compelling public purpose. For example, if a developer were able to demonstrate that the expense of one or more of the requirements would be cost prohibitive or not beneficial in specific circumstances and jeopardize an otherwise desirable project entirely, council could decide to waive that requirement. If a developer could demonstrate that supply chain issues would cause excessive delays in installing solar and hold up a Certificate of Occupancy, council could decide to waive the renewable energy requirement. In cases where council is uncomfortable with the amount of TIF requested, council has flexibility to direct staff to reduce the project’s requirements. Next steps: If the city council and EDA adopt the amended and restated green building policy, the revised policy will be effective immediately. Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 5 Title: Revised green building policy EDA Resolution No. 22-____ Resolution approving revised green building policy Whereas, the City of St. Louis Park (the “City”) has previously adopted strategic priorities to guide policies, initiatives, and decisions, including a strategic priority that the City is committed to continue to lead in environmental stewardship; and Whereas, on February 5, 2018, the City adopted a climate action plan with goals to significantly increase building energy efficiency and renewable energy in pursuit of an overall a goal of community-wide carbon neutrality by 2040; and Whereas, the City and the St. Louis Park Economic Development Authority (the “Authority”) have determined that an important area of city business is environmentally sustainable (“green”) building design, and that property owners should be encouraged to incorporate green building design into their plans for building projects within the city; and Whereas, on February 16, 2010 the Authority and the City Council approved a green building policy; and Whereas, there has been presented before the Board of Commissioners (the “Board”) of the Authority an updated green building policy to more closely reflect the city’s goals and values; and Whereas, the Board has determined that it is reasonable, expedient and in the best interest of the public to amend and restate the green building policy in the form attached hereto as Exhibit A. Now therefore be it resolved by the Board of the St. Louis Park Economic Development Authority that the green building policy is hereby amended and restated as attached hereto as Exhibit A. It is further resolved city staff is hereby authorized to take all actions necessary to implement the green building policy with regard to applicable projects initiated from the date of this resolution. Reviewed for administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, city clerk Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 6 Title: Revised green building policy EXHIBIT A City of St. Louis Park Green Building Policy Introduction St. Louis Park is committed to leading in environmental stewardship. This priority is reflected in the comprehensive plan goal to achieve carbon neutrality by 2040 and by the city’s Climate Action Plan, which includes seven midterm goals that will reduce the city’s overall carbon emissions 55% by 2030: 1. Reduce energy consumption in large commercial buildings by 30 percent. 2. Reduce energy consumption in small- to mid-size commercial buildings by 30 percent. 3. Design and build all new construction to be net-zero energy. 4. Reduce energy consumption in residential buildings by 35 percent. 5. Achieve 100 percent renewable electricity. 6. Reduce vehicle emissions by 25 percent. 7. Reduce solid waste by 50 percent from business as usual. These midterm goals guide the city’s development priorities, and the city actively encourages the design and development of sustainable buildings and sites. Sustainable development is defined as development that maintains or enhances economic opportunity and community wellbeing while protecting and restoring the natural environment upon which people depend. Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable or “green” buildings incorporate numerous strategies that result in improved energy efficiencies, reduced water usage as well as increased health and productivity of occupants. Sustainable site design promotes natural settings and results in improved storm water management and reduced water usage. Together these efficiencies can result in cost savings that are beneficial for both the private and public sectors. In addition, the city will pursue policies and practices that advance sustainability using techniques that produce significant measurable results and true return on investment. In the United States, buildings account for approximately: • 72% of total electricity consumption • 39% of total primary energy use • 38% of all carbon dioxide emissions • 170 million tons of construction and demolition waste • 14% of total potable water consumption, or 15 trillion gallons per year (Source: US Green Building Council) In St. Louis Park, emissions from buildings make up 60% of all greenhouse gas emissions. The built environment has a substantial impact on the natural environment, human health, and the economy. By adopting green building strategies, cities can maximize both economic and environmental performance. Potential benefits of green building include: Economic benefits • Reduce operating costs for owners and tenants • Create, expand, and shape markets for green products and services • Improve occupant productivity Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 7 Title: Revised green building policy • Optimize life-cycle economic performance • Reduce municipal infrastructure costs Environmental benefits • Reduce or capture greenhouse gas emissions • Reduce solid waste • Enhance and protect biodiversity and ecosystems • Improve soil health and reduce erosion • Improve air and water quality • Conserve water and restore natural resources Social benefits • Enhance occupant comfort and health • Minimize strain on local infrastructure • Improve site and building aesthetics • Improve overall quality of life • Demonstrate environmental stewardship This Green Building Policy (“policy”) promotes buildings that are energy efficient, economical to operate, environmentally responsible, healthy places to live and work that enhance the quality of life in St. Louis Park and help achieve the community’s Climate Action Plan goals. Definitions The following definitions apply specifically to the policy. Municipal building: Any structure owned, leased, or otherwise occupied by the city and used for a public purpose by the city. Commercial building: A building that is used for commercial activities, including retail, office, services, and food and drink. Commercial property includes office, medical, hotels, retail, entertainment, mixed use, hotel and multifamily residential. Industrial building: A building where products or materials are fabricated, assembled, processed or warehoused. Multifamily residential building: A commercial residential building that contains five or more dwelling units contained within a single structure or development. Under this policy, multifamily buildings are considered commercial buildings. Mixed-use building: A mixed use building may include any combination of two or more uses including housing, office, retail, medical, recreational, commercial or industrial. Under this policy, mixed use buildings are considered commercial buildings. Levelized Cost of Energy (LCOE): LCOE is the cost of generating energy for a particular system. LCOE is calculated as the sum of costs over the lifetime of the system (initial investment, operations and maintenance, cost of fuel, and cost of capital), divided by the sum of energy produced over the same lifetime. The result is an electricity generation cost per unit of energy. This cost excludes all structural upgrades required, transportation, storage and taxes. Deconstruction: The unbuilding of a structure to salvage its reusable materials and components. Skim: To remove valuable components (e.g., built-in furniture, flooring, appliances) for architectural salvage prior to a scheduled demolition. City financial assistance is defined as funds derived from the following sources: • City of St. Louis Park • Housing rehabilitation fund • Reinvestment assistance program Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 8 Title: Revised green building policy • Revenue bonds (private activity bonds are negotiable) • Tax increment financing (TIF) and tax abatement • Housing Authority (HA) funds (excluding federal funding for rental assistance programs) • Affordable housing trust fund • Land write-downs Land use applications that must comply with the policy (regardless of receiving city financial assistance) are: • Projects that receive approval of a planned unit development • Projects seeking certain points toward density bonuses offered in the zoning code For all other definitions, see the City of St. Louis Park’s city code. Project commencement The version of this policy in effect at the time of the application date of planning and zoning applications and/or a signed preliminary development agreement with the economic development authority and/or city shall be the applicable version. 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 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 received by the city before the termination date. The most significant benefits of sustainable buildings and site design are obtained when project design and construction teams take an integrated approach at a project’s outset. Therefore, projects subject to this policy shall undergo a green building review with city staff and consultants at the pre-design or early schematic design stage. Such a review requires one or more coordination meetings with staff and consultants to review policy requirements and to ensure that a building’s proposed design and equipment are appropriate and integrated together to meet sustainability targets. Requirements for commercial, municipal, multifamily residential, and mixed-use buildings Applicability The following municipal, commercial, multifamily residential, and mixed-use building construction projects receiving or using $200,000 or more in city financial assistance and/or receiving approval for the land use applications listed above are required to comply with this policy if they meet any of the criteria below: 1. Municipal construction projects (designed for ongoing occupancy) that meet either of the following thresholds: A. New buildings or additions: 15,000 square feet or greater (gross) B. Renovations: 50,000 square feet or greater (gross) 2. Commercial, multifamily residential, industrial, hotel, and mixed-use construction projects (designed for ongoing occupancy) that meet either of the following thresholds: A. New buildings or additions: 15,000 square feet or greater (gross) B. Renovations: 50,000 square feet or greater (gross) All applicable projects must fulfill the following requirements, which include 1) certification under a third-party rating system and 2) compliance with the city-specific “overlay.” Checklists and handouts will be supplied to provide technical assistance and help project developers and staff with monitoring compliance. Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 9 Title: Revised green building policy Third-party rating system The Developer must choose for the project the current version of one of the following rating systems and levels under which to certify: • LEED Building Design and Construction (LEED BD+C) or LEED Residential BD+C Multifamily o Certified Silver, Gold or Platinum; certification must include a minimum of 13 points within the Energy and Atmosphere: Optimize Energy Performance credit • State of Minnesota B3 Guidelines o Certified Compliant (projects <20,000 gross square feet should discuss applicability of the B3 Small Buildings Method with B3 staff) • Enterprise Green Communities (for multifamily residential rental projects only; projects must have at least one unit that will serve a resident at or below 60 % AMI) o Enterprise Green Communities Certification or Certification Plus • For affordable housing projects that are funded or have tax credits through Minnesota Housing: Minnesota Housing overlay using Enterprise Green Communities Criteria o Confirmed as compliant under Enhanced Sustainability: Tier 1 or higher • Or equivalent rating systems with prior staff approval This menu of rating systems provides a range of options and flexibility for a given project to follow. Regardless of the rating system selected, compliance with rating systems help the city achieve the environmental, social, and public health goals within the Climate Action Plan. Buildings certified under a rating system and marketed as “green” may also attract prospective occupants. Projects are strongly encouraged to utilize Xcel Energy and CenterPoint Energy’s energy design assistance and design review programs (if eligible) to receive free consultations or customized modeling that predicts energy usage, suggests potential energy saving strategies and estimates energy cost savings. This process ensures that the building owner is informed about what energy-cost savings options exist to fully evaluate the life cycle costs of various building components. These programs may also provide equipment rebates to help bring down the capital cost of the project. Proof of registration and continued compliance with the rating system selected must be provided at meetings with city staff. City financial assistance may be withheld in the event of noncompliance. St. Louis Park Overlay In addition to certification with any one of the rating systems listed above, projects complying with the policy must also meet and document additional requirements (the “overlay”). The overlay reflects the most important values of St. Louis Park: energy efficiency, renewable energy, waste reduction, and stewardship of natural resources. The items listed below are required regardless of the rating system selected but may overlap with mandatory or optional points available in some rating systems (noted). 1. Renewable energy (RE) Not required for projects certifying under the State of Minnesota B3 Guidelines; renovation projects may also be exempted with staff approval. Complete an analysis of onsite solar sufficient to offset two percent of predicted energy demand. A. If the design phase calculator determines that the levelized cost of energy (LCOE) from a proposed system is equal to or less than the combined price of grid and/or fossil fuel-supplied energy and carbon, installation of an onsite system meeting two percent of the project’s anticipated energy demand (electricity and natural gas combined) is required. Renewable Energy Credits must be retained by the building owner. Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 10 Title: Revised green building policy B. If the analysis determines that solar is not technically feasible due to shading, orientation or other technical constraints, or that the LCOE is greater than the combined price of grid and/or fossil fuel-supplied energy and carbon, the developer is required to subscribe the project to a utility green power subscription program or power purchase agreement for a minimum of one year at a level that meets 100 percent of the project’s anticipated energy demand and the RE requirement is considered met. See handout for more details on the steps required to complete the RE analysis and a list of commercial solar installer directories. BENEFITS: Additional clean energy on the grid; potential to lower electricity bills for building owners and tenants. 2. Building electrification Examine the cost and feasibility of ground-source heat pumps, cold climate air-source heat pumps and/or variable refrigerant flow systems to provide heating and cooling to the building. Installation is optional. BENEFITS: Eliminates greenhouse gas emissions from the extraction and transportation of natural gas; prepares building loads to be powered entirely with carbon-free electricity as the grid transitions; improves indoor air quality and occupant health; eliminates cost of natural gas infrastructure. 3. Electric vehicle service equipment Install cost-effective electric vehicle charging infrastructure to serve both short and long-term parking needs. See handout for more details on the EVSE requirement. BENEFITS: Future-proofs building for coming increase in EV sales and leases; marketable feature for prospective tenants. 4. Waste reduction and management A. Deconstruction and salvage i. Create a material conservation plan that includes a plan to adaptively reuse an existing structure or salvage and reuse materials from an existing structure being demolished or deconstructed onsite depending on applicability of sections ii and iii below. ii. If a residential dwelling constructed prior to December 31, 1955 (according to building records on file) is currently on the site of the planned new construction/addition or if the residential dwelling has been designated as a historic resource subject to demolition review, the residential building must be fully deconstructed. Building and architectural materials may be sold, donated, or reused on site. State and county funds may be available to subsidize the cost. iii. Any commercial building (of any construction year) or residential dwellings constructed after December 31, 1955 (according to building permit records on file) currently on the site of the planned new construction/addition must be skimmed for salvage of any reusable architectural materials (e.g. doors, molding, fixtures, tiles, cabinets). Salvaged material may be sold, donated, or reused on site. State and county funds may be available to subsidize the cost. B. Construction waste management Not required for projects certifying under the State of Minnesota B3 Guidelines i. Create a construction waste management plan that specifies construction materials to be diverted from disposal by efficient usage, recycling, reuse, manufacturer’s reclamation, or salvage for future use, donation or sale. ii. At least 75% of nonhazardous construction and demolition waste must be diverted from landfill. The percentage of materials diverted can be calculated by weight or volume, but not both. For the purposes Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 11 Title: Revised green building policy of this section, construction materials and waste include, but are not limited to (1) all materials delivered to the site and intended for installation prior to the issuance of the certificate of occupancy, including related packaging; (2) construction materials and waste removal during demolition or razing. For the purposes of this section, construction and waste materials do not include land-clearing debris (including trees, rocks, and vegetation), excavated soils, and fill and base materials such as topsoil, sand, and gravel. Ground concrete reused on site is considered retained construction materials. iii. Compliance with this requirement may be met through either on-site separation of materials OR sending materials to an approved construction & demolition material recovery facility. See handout for a list of construction & demolition material recovery facilities. C. Organics collection i. For all buildings containing five or more dwelling units, designate space for the collection and hauler servicing of organics (food scraps). A central location in a trash room, garage, or enclosure is recommended. Solid waste staff is available to provide guidance on the inclusion of chutes dedicated to organic waste in the building design. Organics service level minimum should start at 25% of trash capacity, and service level should be routinely monitored and adjusted based on the needs of the building and level of tenant participation. At time of close-out, provide a copy of a contract with a hauler for organic waste collection with a minimum term of one year. Training and educational materials for residents and property management on how to properly dispose of waste can be provided by the city’s Solid Waste division upon request. BENEFITS: Recaptures embodied carbon; reduces need for raw building materials; supports material reuse; reduces greenhouse gas emissions; promotes organics recycling in multifamily buildings. 5. Healthy soils Not required for projects certifying under the State of Minnesota B3 Guidelines A. For projects with an area of site disturbance that is 5,000 square feet or larger, soil management and erosion control plans should be created and implemented to protect the soil profile of the current site before, during, and after construction. B. In-site landscaped areas soil should be amended to mimic the physical and biological capabilities of natural and agricultural soils. Organic matter content should achieve a minimum of 5.0% by weight through the incorporation of US Compost Council (USCC) Seal of Testing Assurance (STA)-Certified Compost. See handout for more details on the steps required to incorporate organic matter into soils and a list of USCC STA Certified Compost suppliers. BENEFITS: Increases carbon sequestration in soil; promotes growth of healthy landscaping, avoiding need to replant; reduces need for pesticides and fertilizers; increases biodiversity; increases water retention, reduces erosion, and prevents polluted storm runoff from contaminating wetlands, lakes and streams; supports market for compost. 6. Stormwater management Not required for projects certifying under the State of Minnesota B3 Guidelines Implement current best management practices for stormwater management by following the Minnesota Pollution Control Agency Minimal Impact Design Standards (MIDS). MIDS is based on low impact development, an approach to storm water management that mimics a site’s natural hydrology as the landscape is developed. MIDS requires that for new, nonlinear developments that create more than one acre of new impervious surface on sites without restrictions, to control stormwater runoff volumes and control the volume of post-construction runoff for 1.1 inches of runoff from impervious surfaces. Design can be integrated into existing features of the built environment, which may be rain gardens or bio-filtration basins, reduction in impervious surfaces or permeable pavement, cisterns for holding runoff and water reuse irrigation systems, tree trenches, green roofs, or any other practices that effectively manage stormwater runoff. Stormwater best management practices must Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 12 Title: Revised green building policy be designed to allow for easy ongoing maintenance and operation as well as efficiency and aesthetic appearance. BENEFITS: Flood mitigation; reduces need for potable water for irrigation; protects environmentally sensitive site features; increases water retention, reduces erosion, and prevents polluted storm runoff from contaminating wetlands, lakes and streams. 7. Efficient Building Benchmarking Comply with Article VIII. Efficient Building Benchmarking ordinance of the city code regardless of total building square footage. Multifamily residential buildings with individually metered units must include in the tenant lease authorization for the release of utility bills to the landlord to facilitate building energy use reporting requirements. BENEFITS: Monitoring whole building energy use intensity and comparing to similar buildings annually helps control owners’ costs; tracking building performance will inform property owners about effects of green building; compliance triggers eligibility for extra city cost sharing incentives for property owners seeking additional energy efficiencies. 8. Commissioning Conduct building commissioning per the chosen building certification or standard to ensure that newly installed operating systems are functioning at their maximum capacity and according to their design efficiencies. Commissioning agent must be independent from the project designer and in addition to any design assistance program. BENEFITS: Fewer change orders; maximizes energy efficiency, environmental health and occupant safety; facilitates efficient on-going operations and maintenance of the facility through training and documentation. 9. Submit a summary report of policy compliance to Community Development staff at the time of Certificate of Occupancy approval. BENEFITS: Provides assurance to both project developer and city staff that project meets all requirements. Proof of continued compliance with the overlay must be provided at meetings with city staff. City financial assistance may be withheld in the event of noncompliance. Requirements for residential buildings with 4 units or fewer Applicability The following building construction projects receiving or using city financial assistance are required to comply with this policy: All new and renovated residential building projects with 4 units or fewer receiving $10,000 or more in city financial assistance. All applicable projects must fulfill the following requirements. 1. Renovations: Owners of residential buildings of 4 units or fewer shall have an audit conducted by a utility company or independent approved Home Energy Rating System (HERS) auditor. An audit conducted within the Economic development authority meeting of June 6, 2022 (Item No. 6a) Page 13 Title: Revised green building policy past three years will be accepted. Utility sponsored audits are available for a nominal fee and provide residents information to conserve energy. Income-qualified homeowners undergoing home improvements using city funds will be directed to the local Department of Energy Weatherization Assistance Program service provider who will provide a no-cost audit. The audit must be scheduled before the work proceeds and conducted as soon as possible by the local weatherization provider. In emergencies, the work at these homes may proceed before the audit is conducted. 2. New construction: Project developer must utilize CenterPoint Energy and Xcel Energy’s High Efficiency New Homes program (or equivalent program) to receive free design assistance that predicts energy usage, suggests potential energy savings strategies and estimates energy cost savings. This process ensures that the building owner is informed about what energy-cost savings options exist to fully evaluate the life cycle costs of various building components. These programs may also provide equipment rebates to help bring down the capital cost of the project. Assistance to developers and property owners To guide developers and property owners through the development process, the city will offer the services of staff and experts with in-depth sustainable design experience without charge. These resources will be made available to answer questions, provide clarifications, make suggestions, coordinate with area utility company energy efficiency programs, and assist with specific issues related to meeting policy requirements. Community outreach To further the goal of this policy, the city conducts community outreach to educate the public about the benefits of green building practices, techniques, and resources. Such efforts will utilize the city’s existing staff and promotional resources. Specific audiences to be targeted will be single-family homeowners, neighborhood organizations, and multifamily housing owners as well as businesses and private developers. All projects subject to this Policy, and which incorporate green improvements as a result, will be highly encouraged to showcase those projects upon completion so that others may benefit from lessons learned and be encouraged to make similar sustainable improvements. Other provisions The requirements of this policy may be waived, in whole or in part, by the economic development authority and/or city council after consideration of the advantages and disadvantages of a waiver, and upon demonstration by the developer of a compelling public purpose. Applicable portions of this policy are contingent upon availability of programs at participating utility companies. This policy may be amended or discontinued without prior notice. Adopted by the St. Louis Park Economic Development Authority and the St. Louis Park City Council February 16, 2010. Updated September 16, 2014. Updated July 14, 2020. Meeting: Economic development authority Meeting date: June 6, 2022 Action agenda item: 6b Executive summary Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) Recommended action: • Motion to adopt EDA Resolution approving the establishment of the Beltline Station 1 Tax Increment Financing District (a housing district). • Motion to adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Beltline Station 1 TIF District. Policy consideration: Does the EDA support the establishment of a housing TIF district to facilitate construction of the affordable component of the Beltline Station Development? Summary: A staff report regarding Sherman Associate’s application for tax increment financing (TIF) assistance in connection with the proposed Beltline Station Development was provided at the June 14, 2021 study session, and an update was provided via a staff report at the April 18, 2022 study session. As stated, constructing the Beltline Station Development is not feasible but for the use of the proposed tax increment and affordable housing trust fund financing due to extraordinary costs associated with the site and the requirements for affordable housing. Given subsequent EDA support, the proposed financial assistance is being advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Beltline Station 1 TIF district (a housing district) and approve the related Purchase Contract and a Contract for Private Redevelopment. Such authorizations enable the EDA to designate tax increment generated from the affordable building within the development as partial reimbursement for certain qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the Beltline Station 1 TIF District in and of itself does not commit the city to any specific level of financial assistance for the proposed project. Procedurally, it simply creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs incurred in constructing the proposed affordable component of the development. The terms and amount of TIF assistance are specified within the Purchase Contract and the Contract for Private Redevelopment with Sherman Associates, which are scheduled for consideration by the EDA on June 20, 2022. Authorizing an Interfund Loan in the amount of $50,000 allows the EDA to recoup certain administrative costs in connection with the new TIF District. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution – TIF District; EDA resolution – Interfund Loan; TIF District Overview Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 2 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) Discussion Background: In 2015 the city received a $6.4 million-dollar federal grant to construct a multi- level parking ramp in lieu of a large surface parking lot to serve the park and ride needs of the SWLRT at the Beltline Station. In summer 2017, the EDA entered into a preliminary development agreement with Sherman Associates to construct a development that meets the city’s objectives for the site which included: • Construct a signature, transit-oriented development (TOD). • Transform the SWLRT Beltline Boulevard Station Redevelopment Site into an active, TOD-focused place with: − Mixed use development (including multi-family residential, office and small commercial components), − Housing density to support transit ridership, − Mixed income housing (both market rate and affordable), and − High-quality shared site amenities. • Optimize the site’s development and employment potential. • Integrate development with the adjacent SWLRT Beltline Boulevard Station and connect with the surrounding areas. • Build a parking structure for required park-and-ride purposes. • Demonstrate high standards for environmental sustainability. The EDA determined Sherman Associates’ proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. City staff and Sherman Associates have been working on details and financing of the project for the past several years. The city council approved a comprehensive plan amendment on March 7, 2022, a preliminary and final plat on April 4, 2022, and a planned unit development rezoning on April 18, 2022 to enable to the Beltline Station Development to occur. The next steps in the process include establishing the Beltline Station 1 TIF District to create the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs incurred in constructing the proposed affordable component of the development. Redeveloper’s request for public financing assistance and TIF application review: Sherman Associates previously indicated that the Beltline Station Development’s financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract financing. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. Ehlers determined that the proposed development would not be reasonably expected to occur but/for the provision of tax increment assistance and a deferred loan from the affordable housing trust fund. TIF assistance is needed from Beltline Station 1 TIF District to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of soil remediation and correction as well as construction of affordable housing) associated with the all-affordable Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 3 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) building. Upon completion of the building and verification of the Redeveloper’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the city's TIF Policy. It is projected that the TIF Note would be paid off in approximately 26 years with increment generated by the development. In addition, Ehlers determined that a deferred loan is needed from the affordable housing trust fund (AHTF) to provide for five units affordable at 30% of AMI. The EDA/city council received a report and discussed details of the TIF Application at the June 14, 2021 study session along with the recommendation for the level of assistance for which there was consensus support. The final assistance amounts will be considered at the June 20, 2022 EDA meeting when the EDA considers the Contract for Private Redevelopment. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Beltline Station 1 TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger Beltline Station 1 TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms of the financial assistance are contained in the separate Purchase Contract and the Contract for Private Redevelopment between the parties. Both the TIF Plan and the Contract for Private Redevelopment need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Beltline Station 1 TIF District: In order to provide the Redeveloper with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Beltline Station Development site and the proposed Beltline Station 1 TIF District are located within the city, the proposed Beltline Station 1 TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Beltline Station 1 TIF District is shown in the map below. Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 4 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) Location of proposed Beltline Station 1 TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the affordable component’s redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following two parcels and adjacent roads and internal rights of-way: • 4601 Highway 7 • 3130 Monterey Ave South Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 5 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) Subject properties within proposed housing TIF district Qualifications of the proposed TIF district: Sherman Associates intends to acquire land at 4601 Highway 7 and 3130 Monterey Avenue South from the EDA for the construction of a four-story, 82-unit, all-affordable multifamily development. An affiliate of Sherman Associates would then own and manage the new apartment building for the long term. The proposed 82-unit multi-family building would be all affordable with 77 units affordable at 60 percent area median income (AMI) and five units affordable at 30 percent AMI. The proposed amount of affordable housing exceeds the city’s inclusionary housing requirements, and also exceeds the city’s requirements for providing funding from the affordable housing trust fund (AHTF). To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 82 housing units (100 percent) affordable to households at or Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 6 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) below 60 percent of AMI, the proposed Beltline Station Development Affordable Component qualifies under the statute as a housing TIF district. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On March 7 2022, city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from right-of-way and transit-oriented development to all transit-oriented development. On May 11, 2022, the planning commission approved a resolution of approval finding the proposed sale of EDA-owned properties conform to the general plan for development of the city. On June 6, 2022 the city will be asked to approve a resolution finding the proposed Beltline Station 1 TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The city elects in the Plan to receive the first tax increment in 2025. Thus, the full term of the district is estimated to terminate after 2050. The city’s expressed obligations to the Redeveloper, are subject to the terms of the Redevelopment Contract, which are currently estimated to be satisfied in approximately 26 years. Property value and taxes: The properties are currently owned by the EDA and are tax exempt. Once the properties are sold to Sherman Associates, the combined assessed market value of the two parcels constituting the subject redevelopment site is just over $1.8 million. This is the proposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $20.5 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the Redeveloper until it is paid off (26 years). The city, county and school district would receive the property taxes collected on the subject site’s Base Value. Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 7 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) TIF district budget: The Beltline Station 1 TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the Redeveloper for qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the Beltline Station Development Affordable Component. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and actual revenues and expenditures may be lower. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Beltline Station 1 TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Beltline Station 1 Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The purchase contract and contract for private redevelopment between the EDA and Sherman Associates which specifies the terms, conditions, and amount of TIF assistance related to the Beltline Station Development Affordable Component portion of the project is scheduled for consideration by the EDA on June 20, 2022. Actions/public hearings Governing Body Date Establishment of Beltline Station 1 TIF District • TIF Housing District/TIF Plan • Interfund loan EDA June 6, 2022 Establishment of Beltline Station 2 TIF District • TIF Renewal and Renovation District/TIF Plan • Interfund loan EDA June 6, 2022 Public Hearing and establishment of Beltline Station 1 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public Hearing and establishment of Beltline Station 2 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public hearing and Purchase Agreement between EDA and Sherman Associates for the Beltline Station Development EDA June 20, 2022 Approval of Contracts for Private Redevelopment for Beltline Station 1 TIF District and Beltline Station 2 TIF District. EDA June 20, 2022 Approval of Contracts for Private Development and Beltline Station Development AHTF Disbursement (Consent) City Council June 20, 2022 Planning Commission recommendation of Registered Land Survey Planning Commission TBD Approval of Registered Land Survey City Council TBD Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 8 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) EDA Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of Beltline Station Tax Increment Financing District No. 1 within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have caused to be created a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended; and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for Beltline Station Tax Increment Financing District No. 1 (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the Board of Commissioners of the Authority (the “Board”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of the County (the “County Auditor”); and Whereas, following the meeting of the Authority on the date hereof, the City Council of the City (the “City Council”) will hold a duly noticed public hearing on the Redevelopment Plan Modification and establishment of the TIF District, and is expected to approve the creation of the TIF District and the associated TIF Plan following such public hearing; and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein and therefore the Board reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The Board hereby finds that: (a) the land within the Project would not be Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 9 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) available for redevelopment without the public intervention and financial assistance to be sought under the Redevelopment Plan Modification; (b) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project area by private enterprise; and (c) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification, including without limitation the development of affordable housing within the City. The purposes and development activities set forth in the Redevelopment Plan Modification, are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. 2. The TIF District is in the public interest and is a “housing district” within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portions of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial, retail or other nonresidential uses 3. Subject to approval by the City Council, the Redevelopment Plan Modification, the establishment of the TIF District, and the TIF Plan for the TIF District are hereby approved. 4. The Board hereby finds that the TIF Plan and the Modification to the Redevelopment Plan will promote the public purposes and accomplish the objectives set forth therein; the Board makes all the findings set forth in the resolution to be adopted by the City Council on the date hereof approving the Modification to the Redevelopment Plan and the TIF Plan and the findings set forth in the Modification to the Redevelopment Plan and the TIF Plan which document is incorporated herein by reference. 5. Authority staff is hereby authorized and directed to file a request for certification of the TIF District with the County Auditor and to file a copy of the TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. 6. The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased. 7. Authority staff, consultants, and legal counsel are authorized to take all actions necessary to implement the TIF Plan and to negotiate, draft, prepare and present to the Board for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Approval of the TIF Plan does not constitute approval of any project or a development agreement with any developer. Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 10 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 11 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) EDA Resolution No. 22-______ Resolution authorizing an interfund loan for advance of certain costs in connection with Beltline Station Tax Increment Financing District No. 1 Whereas, the City of St. Louis Park, Minnesota (the "City") and the St. Louis Park Economic Development Authority (the “Authority”) intend to establish Beltline Station Tax Increment Financing District No. 1 (the "TIF District"), a housing district, within Redevelopment Project No. 1 (the "Project") in the City, and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and Whereas, the Authority has determined to use tax increments from the TIF District to pay for certain administrative costs identified in the TIF Plan (the "Qualified Costs"), which costs may be financed on a temporary basis from Authority funds available for such purposes; and Whereas, under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs; and Whereas, the Authority intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (the "Interfund Loan"); and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The Authority hereby authorizes the advance of up to $50,000 from any legally authorized Authority fund or so much thereof as may be paid as Qualified Costs. The Authority shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the Authority, through the date of last receipt of tax increment from the TIF District. Economic development authority meeting of June 6, 2022 (Item No. 6b) Page 12 Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1) 3. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director of the Authority, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Hennepin County, all in accordance with the TIF Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 4. The principal sum and all accrued interest payable under this Interfund Loan are prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 5. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including without limitation the Authority or the City. Neither the State of Minnesota nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 6. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary TAX INCREMENT FINANCING D ISTRICT OVERVIEW St. Louis Park Economic Development Authority Beltline Station Tax Increment Financing District No. 1 The following summary contains an overview of the basic elements of the Tax Increment Financ ing Plan for the Beltline Station Tax Increment Financing District No. 1. More detailed information on each of these topics may be found in the complete Tax Increment Financing Plan. Proposed action: •Modification to the Redevelopment Plan for Redevelopment Project No. 1. The modification represents a continuation of the goals and objectives set forth in the Development Program for Redevelopment Project No. 1. •Establishment of the Beltline Station Tax Increment Financing District No. 1 (District) and the adoption of a Tax Increment Financing Plan (TIF Plan). Type of TIF District: Housing District Affordability: At least 40% of the units will be occupied by person with incomes less than 60% of the area median income. Parcel Numbers: 06-028-24-12-0091 06-028-24-13-0003 Proposed Development: The District is being created to facilitate redevelopment of the Beltline Station Site and construction of 82 units of affordable housing approximately 59 underground parking spaces in the City. The EDA intends to enter into an agreement with Beltline Station Limited Partnership, or another affiliate of Sherman Associates as the developer of the project. Development is anticipated to begin in 2022. Maximum duration: The duration of the District will be 25 years from the date of receipt of the first increment (26 years of increment). The EDA elects to receive the first tax increment in 2025. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2050, or when the TIF Plan is satisfied. Estimated annual tax increment: Up to $264,072 Economic development authority meeting of June 6, 2022 (Item No. 6b) Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1)Page 13 City of St. Louis Park Beltline Station Tax Increment Financing District No. 1 2 Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition ..................................... $ 1 Site Improvements/Preparation ............................ $ 750,000 Affordable Housing ............................................... $ 1,600,000 Utilities ................................................................. $ 250,000 Other Qualifying Improvements ............................ $ 180,098 Administrative Costs (up to 10%) ......................... $ 417,100 PROJECT COSTS TOTAL .................................. $ 3,197,199 Interest ................................................................. $ 1,390,898 PROJECT COSTS TOTAL .................................. $ 4,588,097 See Uses of Funds on page 8 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note and interfund loan. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan Requirement: The EDA will be approving an interfund loan to pay for administrative expenses that will be incurred prior to receiving the first TIF dollars from the District. 4 Year Activity Rule (§ 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately July 2026, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule (§ 469.1763 Subd. 3) Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Any obligations in the District made after approximately July 2027, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. Economic development authority meeting of June 6, 2022 (Item No. 6b) Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1)Page 14 City of St. Louis Park Beltline Station Tax Increment Financing District No. 1 3 Economic development authority meeting of June 6, 2022 (Item No. 6b) Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1)Page 15 City of St. Louis Park Beltline Station Tax Increment Financing District No. 1 4 Economic development authority meeting of June 6, 2022 (Item No. 6b) Title: Establishment of the Beltline Station 1 Tax Increment Financing District (Ward 1)Page 16 Meeting: Economic development authority Meeting date: June 6, 2022 Action agenda item: 6c Executive summary Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) Recommended action: • Motion to adopt EDA Resolution approving the establishment of the Beltline Station 2 Tax Increment Financing District (a renewal and renovation district). • Motion to adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Beltline Station 2 TIF District. Policy consideration: Does the EDA support the establishment of a renewal and renovation TIF district to facilitate construction of the market rate component of the Beltline Station Development? Summary: A staff report regarding Sherman Associate’s application for tax increment financing (TIF) assistance in connection with the proposed Beltline Station Development was provided at the June 14, 2021 study session, and an update was provided via a staff report at the April 18, 2022 study session. As stated, constructing the Beltline Station Development is not feasible but for the use of the proposed tax increment due to extraordinary costs associated with the market rate components of the development and construction of associated parking. Given subsequent EDA support, the proposed financial assistance is being advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Beltline Station 2 TIF district (a renewal and renovation district) and approve the related Contract for Private Redevelopment. Such authorizations enable the EDA to designate tax increment generated from the market rate building and parking garage within the development as partial reimbursement for certain qualified Public Redevelopment Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the Beltline Station 2 TIF District does not in and of itself commit the city to any specific level of financial assistance for the proposed project. Procedurally, it simply creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment Costs incurred in constructing the proposed market rate and parking components of the development. The terms and amount of TIF assistance are specified within the Contract for Private Redevelopment with Sherman Associates, which is scheduled for consideration by the EDA on June 20, 2022. Authorizing an Interfund Loan in the amount of $100,000 allows the EDA to recoup certain administrative costs in connection with the new TIF District. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution – TIF District; EDA resolution – Interfund Loan; TIF District Overview Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 2 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) Discussion Background: In 2015 the city received a $6.4 million-dollar federal grant to construct a multi- level parking ramp in lieu of a large surface parking lot to serve the park and ride needs of the SWLRT at the Beltline Station. In summer 2017, the EDA entered into a preliminary development agreement with Sherman Associates to construct a development that meets the city’s objectives for the site which included: • Construct a signature, transit-oriented development (TOD). • Transform the SWLRT Beltline Boulevard Station Redevelopment Site into an active, TOD-focused place with: − Mixed use development (including multi-family residential, office and small commercial components), − Housing density to support transit ridership, − Mixed income housing (both market rate and affordable), and − High-quality shared site amenities. • Optimize the site’s development and employment potential. • Integrate development with the adjacent SWLRT Beltline Boulevard Station and connect with the surrounding areas. • Build a parking structure for required park-and-ride purposes. • Demonstrate high standards for environmental sustainability. The EDA determined Sherman Associates’ proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. City staff and Sherman Associates have been working on details and financing of the project for the past several years. The city council approved a comprehensive plan amendment on March 7, 2022, a preliminary and final plat on April 4, 2022, and a planned unit development rezoning on April 18, 2022 to enable to the Beltline Station Development to occur. The next steps in the process include establishing the Beltline Station 2 TIF District to create the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment Costs incurred in constructing the proposed development. Redeveloper’s request for public financing assistance and TIF application review: Sherman Associates previously indicated that the Beltline Station Development’s financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract financing. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. Ehlers determined that the proposed development would not be reasonably expected to occur but/for the provision of tax increment assistance and a deferred loan from the affordable housing trust fund for $618,238. TIF assistance is needed from Beltline Station 2 TIF District to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of soil remediation, utility relocation, grading, geopiers, and financing the city’s remaining share of the parking ramp Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 3 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) costs) associated with the mixed-use, market rate, and parking ramp components of the development. Upon completion of the buildings and verification of the Redeveloper’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the city's TIF Policy. The EDA/city council received a report and discussed details of the TIF Application at the June 14, 2021 study session along with the recommendation for the level of assistance for which there was consensus support. The final assistance amounts will be considered at the June 20, 2022 EDA meeting when the EDA considers the Contract for Private Redevelopment. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Beltline Station 2 TIF District (a renewal and renovation district). Additional details of the proposed TIF District may be found in the larger Beltline Station 2 TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms of the financial assistance are contained in the separate Contract for Private Redevelopment between the parties. Both the TIF Plan and the Contract for Private Redevelopment need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Beltline Station 2 TIF District: In order to provide the Redeveloper with the proposed tax increment, a new renewal and renovation TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Beltline Station Development site and the proposed Beltline Station 2 TIF District are located within the city, the proposed Beltline Station 2 TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Beltline Station 2 TIF District is shown in the map below. Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 4 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) Location of proposed Beltline Station 2 TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the Mixed-Use and Market Rate components of the redevelopment site which constitutes the proposed renewal and renovation TIF district. Therefore, the proposed TIF district includes the following six parcels and adjacent roads and internal rights of-way: • 4725 Highway 7 • 4501 Highway 7 • 3130 Monterey Avenue South • 3251 Natchez Avenue South • 3250 Natchez Avenue South • 3200 Lynn Ave Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 5 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) Subject properties within proposed housing TIF district Qualifications of the proposed TIF district: Sherman Associates intends to acquire land at 4601 Highway 7, 3130 Monterey Avenue South, and portions of vacated right-of-way from the EDA for the construction of a seven-story mixed-use building with approximately 20,000 square feet of commercial, a five-story market rate building, and a 6.5 story parking ramp with 268 stalls for SWLRT park and ride purposes and approximately 2,000 square feet of ground floor commercial. Affiliates of Sherman Associates would own and manage the new mixed-use and market rate buildings for the long term. The parking ramp would be owned partially by the mixed-use building owner, partially by the market rate building owner, and partially by the EDA. The portion owned by the EDA would then be leased to the Metropolitan Council for public park and ride purposes. The various ownership areas of the parking ramp would be formally platted through a registered land survey. To qualify as a renewal and renovation TIF district, the MN TIF Act requires that at least 70 percent of the areas of the district must be occupied by buildings, streets, utilities, or other Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 6 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) improvements; 20 percent of the buildings must be structurally substandard, and 30 percent of the other buildings must have conditions that require clearance or substantial renovation. Consulting firm LHB conducted a TIF district feasibility analysis to determine if the subject site qualified as a Renewal and Renovation District under the MN TIF Act. After inspecting and evaluating the subject properties and applying current statutory criteria, LHB made the following findings in its report entitled: Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Renewal and Renovation District: Beltline Station Renewal and Renovation TIF District dated March 31, 2022: • The proposed TIF District has a coverage calculation of 99.9 percent which is above the 70 percent requirement. • 50 percent of the buildings are structurally substandard which is above the 20 percent requirement. • 100 percent of the other buildings require substantial renovation or clearance which is above the 30 percent requirement. • The substandard buildings are reasonably distributed. Thus, the proposed Beltline Station 2 TIF District meets the “coverage test” and “Conditions of Buildings Test” and thereby qualifies under Minnesota Statutes, Section 469.174, Subdivision 10a as a renewal and renovation TIF District. Other findings for the qualification of the proposed TIF District are contained in Appendix D of the TIF Plan. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On March 7, 2022, city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from right-of-way and transit-oriented development to all transit-oriented development. On June 6, 2022 the city will approve a resolution finding the proposed Beltline Station 2 TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of renewal and renovation districts is up to 15 years after receipt of the first increment by the city (a total of 16 years of tax increment). The city elects in the Plan to receive the first tax increment in 2025. Thus, the full term of the district is estimated to terminate after 2040. The city’s expressed obligations to the Redeveloper are subject to the terms of the Redevelopment Contract, which are currently estimated to be satisfied in approximately 16 years. Property value and taxes: A portion of the properties are currently owned by the EDA and are tax exempt. Once the properties are sold to Sherman Associates, the combined assessed market value of the six parcels constituting the subject redevelopment site is just over $7.24 million. This is the proposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $80.175 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the Redeveloper until it is paid off (16 years). The city, county and school district would continue to receive the property taxes collected on the subject site’s Base Value. Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 7 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) TIF district budget: The Beltline Station 2 TIF District Plan authorizes the use of tax increment funds generated by the new renewal and renovation TIF district to reimburse the Redeveloper for qualified Public Redevelopment Costs incurred in connection with the construction of the Beltline Station Development Mixed-Use, Market Rate, and Parking Components. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and not the actual expected project budget. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Beltline Station 2 TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Beltline Station 2 Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The contract for private redevelopment between the EDA and Sherman Associates which specifies the terms, conditions, and amount of TIF assistance related to the Beltline Station Development Mixed-Use, Market Rate, and Parking Components of the project are scheduled for consideration by the EDA on June 20, 2022. Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 8 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) Actions/public hearings Governing Body Date Establishment of Beltline Station 1 TIF District • TIF Housing District/TIF Plan • Interfund loan EDA June 6, 2022 Establishment of Beltline Station 2 TIF District • TIF Renewal and Renovation District/TIF Plan • Interfund loan EDA June 6, 2022 Public Hearing and establishment of Beltline Station 1 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public Hearing and establishment of Beltline Station 2 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public hearing and Purchase Agreement between EDA and Sherman Associates for the Beltline Station Development EDA June 20, 2022 Approval of Contracts for Private Redevelopment for Beltline Station 1 TIF District and Beltline Station 2 TIF District. EDA June 20, 2022 Approval of Contracts for Private Development and Beltline Station Development AHTF Disbursement (Consent) City Council June 20, 2022 Planning Commission recommendation of Registered Land Survey Planning Commission TBD Approval of Registered Land Survey City Council TBD Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 9 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) EDA Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of Beltline Station Tax Increment Financing District No. 2 within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have caused to be created a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for Beltline Station Tax Increment Financing District No. 2 (the “TIF District”), a renewal and renovation district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the Board of Commissioners of the Authority (the “Board”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of Hennepin County, Minnesota (the “County Auditor”); and Whereas, immediately following the meeting of the Authority on the date hereof, the City Council of the City (the “City Council”) will hold a duly noticed public hearing on the Redevelopment Plan Modification and establishment of the TIF District, and is expected to approve the creation of the TIF District and the associated TIF Plan following such public hearing; and Whereas, certain written reports (the ''Reports") relating to the Redevelopment Plan Modification and the TIF Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the Board of Commissioners and/or made a part of the Authority files and proceedings on the Redevelopment Plan Modification and the TIF Plan. The Reports, including the renewal and renovation qualification report prepared by LHB, Inc. on March 31, 2022 and planning documents, include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The Board of Commissioners hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein. Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 10 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District. The Board hereby finds (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Redevelopment Plan Modification; (ii) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole; and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification and the TIF Plan. 2. Subject to approval by the City Council, the Redevelopment Plan Modification, the establishment of the TIF District, and the TIF Plan for the TIF District are hereby approved. 3. The Board hereby finds that the TIF Plan and the Modification to the Redevelopment Plan will promote the public purposes and accomplish the objectives set forth therein; the Board makes all the findings set forth in the resolution to be adopted by the City Council on the date hereof approving the Modification to the Redevelopment Plan and the TIF Plan and the findings set forth in the Modification to the Redevelopment Plan and the TIF Plan which document is incorporated herein by reference. In making this determination, the Board has also relied on the Reports. 4. Authority staff is hereby authorized and directed to file a request for certification of the TIF District with the County Auditor and to file a copy of the TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. 5. The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased. 6. Authority staff, consultants, and legal counsel are authorized to take all actions necessary to implement the TIF Plan and to negotiate, draft, prepare and present to the Board for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Approval of the TIF Plan does not constitute approval of any project or a development agreement with any developer. Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 11 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) Attest: Melissa Kennedy, secretary Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 12 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) EDA Resolution No. 22-______ Resolution authorizing an interfund loan for advance of certain costs in connection with Beltline Station Tax Increment Financing District No. 2 Whereas, the City of St. Louis Park, Minnesota (the "City") and the St. Louis Park Economic Development Authority (the “Authority”) intend to establish Beltline Station Tax Increment Financing District No. 2 (the "TIF District"), a renewal and renovation district, within Redevelopment Project No. 1 (the "Project") in the City, and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and Whereas, the Authority has determined to use tax increments from the TIF District to pay for certain administrative costs identified in the TIF Plan (the "Qualified Costs"), which costs may be financed on a temporary basis from Authority funds available for such purposes; and Whereas, under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs; and Whereas, the Authority intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (the "Interfund Loan"); and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The Authority hereby authorizes the advance of up to $100,000 from any legally authorized Authority fund or so much thereof as may be paid as Qualified Costs. The Authority shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the Authority, through the date of last receipt of tax increment from the TIF District. Economic development authority meeting of June 6, 2022 (Item No. 6c) Page 13 Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1) 3. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director of the Authority, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Hennepin County, all in accordance with the TIF Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 4. The principal sum and all accrued interest payable under this Interfund Loan are prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 5. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including without limitation the Authority or the City. Neither the State of Minnesota nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 6. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest Melissa Kennedy, secretary TAX INCREMENT FINANCING D ISTRICT OVERVIEW St. Louis Park Economic Development Authority Beltline Station Tax Increment Financing District No. 2 The following summary contains an overview of the basic elements of the Tax Increment Financ ing Plan for the Beltline Station Tax Increment Financing District No. 2. More detailed information on each of these topics may be found in the complete Tax Increment Financing Plan. Proposed action: •Modification to the Redevelopment Plan for Redevelopment Project No. 1. The modification represents a continuation of the goals and objectives set forth in the Development Program for Redevelopment Project No. 1. •Establishment of the Beltline Station Tax Increment Financing District No. 2 (District) and the adoption of a Tax Increment Financing Plan (TIF Plan). Type of TIF District: Renewal and Renovation Parcel Numbers: 06-028-24-24-0046 06-028-24-13-0004 06-028-24-24-0003 06-028-24-13-0003 06-028-24-12-0105 06-028-24-12-0091 Proposed Development: The District is being created to facilitate redevelopment of the Beltline Station Site and construction of 302 units of market rate housing, approximately 23,376 sq. ft. of commercial space, and construction of an approximately 546 stall parking structure which will include a public park and ride facility. The EDA intends to enter into an agreement with Sherman Associates as the developer of the project. Development is anticipated to begin in 2022. Maximum duration: The duration of the District will be 15 years from the date of receipt of the first increment (16 years of increment). The EDA elects to receive the first tax increment in 2025. It is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after December 31, 2040, or when the TIF Plan is satisfied. Estimated annual tax increment: Up to $1,970,686 Economic development authority meeting of June 6, 2022 (Item No. 6c) Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1)Page 14 City of St. Louis Park Beltline Station Tax Increment Financing District No. 1 2 Authorized uses: The TIF Plan contains a budget that authorizes the maximum amount that may be expended: Land/Building Acquisition ..................................... $ 6,015,000 Site Improvements/Preparation ............................ $ 8,000,000 Utilities ................................................................. $ 3,000,000 Other Qualifying Improvements ............................ $ 794,406 Administrative Costs (up to 10%) ......................... $ 2,290,408 PROJECT COSTS TOTAL .................................. $ 20,099,814 Interest ................................................................. $ 5,094,670 PROJECT COSTS TOTAL .................................. $ 25,194,484 See Uses of Funds on page 8 of the TIF Plan for the full budget authorization. Form of financing: The project is proposed to be financed by a pay-as-you-go note and interfund loan. Administrative fee: Up to 10% of annual increment, if costs are justified. Interfund Loan Requirement: The EDA will be approving an interfund loan to pay for administrative expenses that will be incurred prior to receiving the first TIF dollars from the District. 4 Year Activity Rule (§ 469.176 Subd. 6) After four years from the date of certification of the District one of the following activities must have been commenced on each parcel in the District: • Demolition • Rehabilitation • Renovation • Other site preparation (not including utility services such as sewer and water) If the activity has not been started by approximately July 2026, no additional tax increment may be taken from that parcel until the commencement of a qualifying activity. 5 Year Rule (§ 469.1763 Subd. 3) Within 5 years of certification revenues derived from tax increments must be expended or obligated to be expended. Any obligations in the District made after approximately July 2027, will not be eligible for repayment from tax increments. The reasons and facts supporting the findings for the adoption of the TIF Plan for the District, as required pursuant to M.S., Section 469.175, Subd. 3, are included in Exhibit A of the City resolution. Economic development authority meeting of June 6, 2022 (Item No. 6c) Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1)Page 15 City of St. Louis Park Beltline Station Tax Increment Financing District No. 1 3 Economic development authority meeting of June 6, 2022 (Item No. 6c) Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1)Page 16 City of St. Louis Park Beltline Station Tax Increment Financing District No. 1 4 Economic development authority meeting of June 6, 2022 (Item No. 6c) Title: Establishment of the Beltline Station 2 Tax Increment Financing District (Ward 1)Page 17 Meeting: Economic development authority Meeting date: June 6, 2022 Action agenda item: 6d Executive summary Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Recommended action: • Motion to adopt EDA Resolution approving the establishment of the Wooddale Avenue Apartments Tax Increment Financing District (a housing district). • Motion to adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Wooddale Avenue Apartments TIF District. Policy consideration: Does the EDA support the establishment of a housing TIF district to facilitate construction of the Wooddale Avenue Apartments development? Summary: A staff report regarding Real Estate Equities’ application for tax increment financing (TIF) assistance in connection with the proposed Wooddale Avenue Apartments development (which will be renamed to Arbor House) was provided at the March 28, 2022 study session. As stated in the report, constructing the Wooddale Avenue Apartments development is not feasible but for the use of the proposed tax increment and affordable housing trust fund financing due to extraordinary costs associated with redeveloping the site as well as the cost of constructing affordable housing with below market rents. Given subsequent EDA support, the proposed financial assistance was advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Wooddale Avenue Apartments TIF district (a housing district) and approve the related Contract for Private Redevelopment. Such authorizations enable the EDA to designate tax increment generated from the new apartment building as partial reimbursement for certain qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the Wooddale Avenue Apartments TIF District does not commit the city to any specific level of financial assistance for the proposed project. Procedurally, it creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs incurred in constructing the proposed development. The terms and amount of TIF assistance are specified within the Redevelopment Contract with Real Estate Equities, which are also scheduled for consideration by the EDA on June 6, 2022. Authorizing an Interfund Loan in the amount of $50,000 allows the EDA to recoup certain administrative costs in connection with the new TIF District. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution – TIF District; EDA resolution – Interfund Loan; TIF District Overview Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 2 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Discussion Background: Real Estate Equities has a purchase agreement with Aldersgate Methodist Church and proposes to remove the church building and redevelop the site with an all-affordable, three- to four-story apartment building. The development would include 114 dwelling units that would be affordable to households between 30 and 60 percent of the area median income (AMI). The plan proposes accessing the site from Wooddale Avenue with a driveway provided north of the cul-de-sac. 117 parking stalls would be provided underground, and 89 stalls would be provided in surface lots on the building’s west and north sides. Other proposed site improvements include sidewalks, new landscaping, an underground stormwater management system and a rooftop solar array generating 40-53 kw. The development would exceed the city’s green building policy as amended in July 2020 and would exceed the inclusionary housing policy as amended in October 2021. The inclusionary housing policy requires at least 20 percent of the units be affordable to households at 60 percent AMI. The proposed apartment building would be an all-affordable development with rents ranging from 30 percent to 60 percent 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 Redeveloper plans to include 37 three-bedroom units in the building’s unit mix, exceeding the policy requirements by 32 units, to further the city’s goals for family-sized housing. City council approved a comprehensive plan amendment and a preliminary and final plat on April 4, 2022 and approved a vacation and a rezoning to a planned unit development on April 18, 2022 to enable the Wooddale Avenue Apartments development to occur. The next steps in the entitlement process include establishing the Wooddale Avenue Apartments TIF District to create the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs incurred in constructing the proposed development. Also on June 6, 2022, the EDA will be asked to consider approval of a Contract for Private Development which specifies the terms and conditions of the proposed financial assistance provided by the city for the development. Additionally, the city council will be asked to hold a public hearing and consider a resolution of approval for the TIF District and an approval finding the proposed Wooddale Avenue Apartments TIF District Plan conforms to the general plan for development of the city. Redeveloper’s request for public financing assistance and TIF application review: Due to the housing development’s extraordinary site preparation costs and 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 development’s funding making it financially infeasible without public financial assistance. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 3 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Ehlers determined that up to $940,000 in TIF assistance is warranted to enable the project to proceed. Such assistance would be provided via a pay-as-you-go TIF Note and would derive from the establishment of a new housing TIF district. The EDA received a staff report detailing the TIF Application at the March 28, 2022 study session along with a recommendation for the appropriate amount of financial assistance for which there was consensus support. In addition, Ehlers determined that $850,000 from the city’s Affordable Housing Trust Fund (AHTF) is necessary to offer lower rents at 50 percent area median income on five units and rents at 30 percent AMI on another five units, and a larger number of three-bedroom units for a period of 26 years. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Wooddale Avenue Apartments TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger Wooddale Avenue Apartments TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms and conditions of the financial assistance are contained in the separate Redevelopment Contract between the parties. Both the TIF Plan and the Redevelopment Contract need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Wooddale Avenue Apartments TIF District: In order to provide the Redeveloper with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Wooddale Avenue Apartments redevelopment site and the proposed Wooddale Avenue Apartments TIF District are located within the city, the proposed Wooddale Avenue Apartments TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Wooddale Avenue Apartments TIF District is shown in the map below. Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 4 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Location of proposed Wooddale Avenue Apartments TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the subject redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following parcel and adjacent roads and internal rights of- way: • 3801 Wooddale Avenue Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 5 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Qualifications of the proposed TIF district: Real Estate Equities has a purchase agreement with Aldersgate Methodist Church to acquire 3801 Wooddale Avenue located west of Highway 100, just south of the Highway 100 slip ramp, and east of Wooddale Avenue. Real Estate Equities intends to redevelop the site with a three to four story all-affordable workforce housing development with 114 dwelling units named currently named Wooddale Avenue Apartments but will be renamed to Arbor House. Real Estate Equities would own and manage the new apartment building for the long term. 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 to households at 60 percent AMI. The proposed all-affordable development includes 114 units, including 104 units affordable to households at 60 percent area median income (AMI), five units affordable to households at 50 percent AMI, and five units affordable to households at 30 percent AMI, for a period of 26 years. Furthermore, due to the LIHTC allocation, the development will provide four additional years of affordability where all of the units will be affordable to households at or below 60 percent AMI, for a total of 30 years of affordable housing. Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 6 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 114 housing units (100 percent) affordable to households at or below 60 percent of AMI, the proposed Wooddale Avenue Apartment development qualifies as a housing TIF district under the statute. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On April 4, 2022, the city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from C-Civic to RH - high density residential. The Metropolitan Council subsequently approved that amendment on May 25, 2022. The density of the proposed Wooddale Avenue Apartments development meets the requirements for RH – high density residential land use. On June 6, 2022, the city council will consider a resolution of approval finding the proposed Wooddale Avenue Apartments TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. The EDA and city have the option to decertify the district prior to the legally required date. The city’s expressed obligations to the Redeveloper, per the terms of the Redevelopment Contract, are estimated to be satisfied in approximately 15 years. Once those obligations are satisfied, the city may terminate the district or elect to retain it to assist other affordable housing projects and programs into the future. In the past, city council has elected to use pooled tax increment collected from housing TIF districts to help fund other affordable housing developments and programs throughout the city. Tax increment generated from Housing TIF districts have been used to help fund the Affordable Housing Trust Fund, HIA Programs, Affordable Homeownership Land Trust Program, 1st Time Homebuyer program, wealth building homeownership programs for underserved communities, and some home energy rebates. 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 of the development upon 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 Redeveloper 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 nearly $50,000. Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 7 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 TIF district budget: The Wooddale Avenue Apartments TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the Redeveloper for qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the Wooddale Avenue Apartments development. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and not the actual expected project budget. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Wooddale Avenue Apartments TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Wooddale Avenue Apartments Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The redevelopment contract between the EDA and Real Estate Equities which specifies the terms, conditions and amount of TIF and AHTF assistance related to the proposed Wooddale Avenue Apartment project is also scheduled for consideration by the EDA on June 6, 2022. Additionally, that same evening, the city council will be asked to hold a public hearing regarding the establishment of the proposed TIF district. Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 8 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Future Actions Governing body Date Establishment of the Wooddale Avenue Apartment TIF District • TIF Housing District/TIF Plan • Interfund loan EDA June 6, 2022 Approval of Contracts for Private Redevelopment for Wooddale Avenue Apartment TIF District. EDA June 6, 2022 Approval of Contract for Private Redevelopment for Wooddale Avenue Apartments and AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 9 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 EDA Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of the Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have caused to be created a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended; and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for the Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the Board of Commissioners of the Authority (the “Board”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of the County (the “County Auditor”); and Whereas, following the meeting of the Authority on the date hereof, the City Council of the City (the “City Council”) will hold a duly noticed public hearing on the Redevelopment Plan Modification and establishment of the TIF District, and is expected to approve the creation of the TIF District and the associated TIF Plan following such public hearing; and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 10 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 and therefore the Board reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The Board hereby finds that: (a) the land within the Project would not be available for redevelopment without the public intervention and financial assistance to be sought under the Redevelopment Plan Modification; (b) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project area by private enterprise; and (c) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification, including without limitation the development of affordable housing within the City. The purposes and development activities set forth in the Redevelopment Plan Modification, are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. 2. The TIF District is in the public interest and is a “housing district” within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portions of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial, retail or other nonresidential uses 3. Subject to approval by the City Council, the Redevelopment Plan Modification, the establishment of the TIF District, and the TIF Plan for the TIF District are hereby approved. 4. The Board hereby finds that the TIF Plan and the Modification to the Redevelopment Plan will promote the public purposes and accomplish the objectives set forth therein; the Board makes all the findings set forth in the resolution to be adopted by the City Council on the date hereof approving the Modification to the Redevelopment Plan and the TIF Plan and the findings set forth in the Modification to the Redevelopment Plan and the TIF Plan which document is incorporated herein by reference. 5. Authority staff is hereby authorized and directed to file a request for certification of the TIF District with the County Auditor and to file a copy of the TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. 6. The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased. 7. Authority staff, consultants, and legal counsel are authorized to take all actions necessary to implement the TIF Plan and to negotiate, draft, prepare and present to the Board for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Approval of the TIF Plan does not constitute approval of any project or a development agreement with any developer. Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 11 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 12 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 EDA Resolution No. 22-______ Resolution authorizing an interfund loan for advance of certain costs in connection with Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District Whereas, the City of St. Louis Park, Minnesota (the "City") and the St. Louis Park Economic Development Authority (the “Authority”) intend to establish the Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District (the "TIF District"), a housing district, within Redevelopment Project No. 1 (the "Project") in the City, and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and Whereas, the Authority has determined to use tax increments from the TIF District to pay for certain administrative costs identified in the TIF Plan (the "Qualified Costs"), which costs may be financed on a temporary basis from Authority funds available for such purposes; and Whereas, under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs; and Whereas, the Authority intends to reimburse itself for the Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (the "Interfund Loan"); and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The Authority hereby authorizes the advance of up to $50,000 from any legally authorized Authority fund or so much thereof as may be paid as Qualified Costs. The Authority shall reimburse itself for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the Authority, through the date of last receipt of tax increment from the TIF District. Economic development authority meeting of June 6, 2022 (Item No. 6d) Page 13 Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 3. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director of the Authority, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the City by Hennepin County, all in accordance with the TIF Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 4. The principal sum and all accrued interest payable under this Interfund Loan are prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 5. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including without limitation the Authority or the City. Neither the State of Minnesota nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 6. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary • • Economic development authority meeting of June 6, 2022 (Item No. 6d) Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Page 14 • • • • Economic development authority meeting of June 6, 2022 (Item No. 6d) Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Page 15 Economic development authority meeting of June 6, 2022 (Item No. 6d) Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Page 16 Economic development authority meeting of June 6, 2022 (Item No. 6d) Title: Establishment of the Wooddale Avenue Apartments Tax Increment Financing District – Ward 2 Page 17 Meeting: Economic development authority Meeting date: June 6, 2022 Action agenda item: 6e Executive summary Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 Recommended action: Motion to Adopt EDA Resolution approving the Contract for Private Redevelopment between the EDA and Real Estate Equities (St. Louis Park AH I, LLLP). Policy consideration: Does the EDA wish to approve the proposed Contract for Private Redevelopment with Real Estate Equities to facilitate the proposed Wooddale Avenue Apartments development? Summary: Real Estate Equities (REE and “Redeveloper”) has a purchase agreement to acquire the Aldersgate Methodist Church property at 3801 Wooddale Avenue. REE’s plans for the site include removal of the church building, 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 affordable to households at 30% AMI, five units affordable to households at 50% AMI, and 104 units affordable to households 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. The development would also exceed the city’s green building policy. Financial or budget considerations: Under the proposed Contract for Private Redevelopment, the Redeveloper agrees to construct the proposed Wooddale Avenue Apartment development (which will be renamed to Arbor House) as specified under the PUD, and the EDA agrees to reimburse the Redeveloper for specified public redevelopment and affordable housing costs in connection with the project up to $940,000 in pay-as-you-go tax increment generated by the development upon its completion. It is estimated that a TIF Note in the above amount would be paid off in approximately 15 years. Such assistance would derive from the establishment of a new housing TIF district. In addition, the EDA agrees to provide a deferred loan of $850,000 from the city’s Affordable Housing Trust Fund (AHTF) to “buy down” the deeper levels of affordable housing and larger family size units. Per the contract, the loan would be non-interest bearing and would be repaid upon the earlier of 1) 25 years, 2) refinancing, or 3) sale of the development. Key business terms of the proposed contracts were provided in the staff report on April 25, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution; contract available in community development department Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 2 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 Discussion 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 desires to leave behind a legacy of affordable housing for the St. Louis Park community. The church has entered into a purchase agreement with Real Estate Equities (REE and “Redeveloper”) 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 intend 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 Redeveloper is submitting a grant application to Hennepin County to help off-set some of 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 Credits (LIHTC) from Minnesota Housing. These bond allocations require the Redeveloper 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. City council approved a comprehensive plan amendment and a preliminary and final plat on April 4, 2022 and approved a vacation and a rezoning to a planned unit development on April 18, 2022 to enable the Wooddale Avenue Apartments development to occur. The proposed $34.26 million development includes a mix of one-, two-, and three-bedroom units. The development’s proposed mixed of unit types is as follows: Unit Type 30% AMI 50% AMI 60% AMI Total units 1-bedroom 2 2 23 27 2-bedroom 2 2 49 50 3-bedroom 1 1 32 37 Total 5 5 104 114 Inclusionary housing: 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 percent AMI. As outlined above, the proposed apartment building would be an all-affordable development with rents ranging from 30 percent to 60 percent 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 Redeveloper plans to include 37 three-bedroom units in the building’s unit mix, exceeding the policy requirements by 33 units, to further the city’s goals for family-sized housing. Since receiving the TIF application staff report on March 28, 2022, the Redeveloper has shifted three two-bedroom units to three three-bedroom units to provide for additional family-sized units. This updated unit mix was approved as part of the planned unit development rezoning for the site. Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 3 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 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 at or below 60 percent AMI for at least 30 years. In summary, the proposed development would provide 114 units of affordable housing for 30 years. Green building policy: 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 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 provide reliable and efficient public transit for building occupants. This means residents will not need to rely on single-occupancy vehicles, resulting in reduced vehicle miles traveled and less emissions. Racial equity and inclusion: The proposed development will provide qualified families of all races and ethnicities 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. Due to the submission timing of this development’s planning applications (March 3, 2022) the EDA’s DEI Policy is not in effect for this development. However, the Redeveloper has agreed to Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 4 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 the inclusion of business enterprise and workforce participation goals for women and Black, indigenous and people of color (BIPOC) in the construction of the development. The Redeveloper anticipates that its construction practices, and ongoing property management will meet the intent of the city’s diversity, equity, and inclusion policy. 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. Rendering of proposed Wooddale Avenue Apartments Wooddale Avenue Apartments would be a single-phased residential development. Pending approval of its financing, the development team plans to commence construction of the building in summer 2022 and complete it by mid-2024. Real Estate Equities would own and manage the residential development for the long term. Redeveloper’s request for tax increment financing assistance: Based on Ehlers’ financial analysis and experience, it likely that any all-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 awarded up to $17.49 million tax exempt bonds from Minnesota Management and Budget (MMB), Low Income Housing Tax Credits (LIHTC) from Minnesota Housing and is 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. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. The EDA received a staff report detailing the TIF Application at the March 28, 2022 study session along with a recommendation for the appropriate amount of financial assistance. Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 5 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 Housing TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. The EDA and city have the right to decertify the district prior to the legally required date. The city’s expressed obligations to the Redeveloper, per the terms of the Redevelopment Contract, are estimated to be satisfied in approximately 15 years. Once those obligations are satisfied, the city may terminate the district or elect to retain it to assist other affordable housing projects and programs into the future. In the past, city council has elected to use the additional taxes collected from housing TIF districts to help fund other affordable housing developments and programs throughout the city. Tax increment from housing districts has been used to help fund the Affordable Housing Trust Fund, HIA Programs, Affordable Homeownership Land Trust Program, 1st Time Homebuyer program, wealth building homeownership programs for underserved communities, and some home energy rebates. Level and type of financial assistance: In summary, the Redeveloper’s sources and uses statement, income and expense estimates, financing assumptions, cash flow projections, and investor rate of return (ROR) related to the proposed mixed income development were reviewed by staff and Ehlers (the EDA’s financial consultant). Based upon its analysis of the Redeveloper’s financial proforma, Ehlers determined that the proposed development would not be reasonably expected to occur on the site in the foreseeable future but/for the provision of up to $940,000 in tax increment assistance and a loan in the amount of $850,000 from the city’s Affordable Housing Trust Fund (AHTF). The TIF assistance would be committed to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of site demolition and clearance, soil remediation and correction as well as construction of affordable housing). Upon completion of the building and verification of the Redeveloper’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the city's TIF Policy. It is projected that the TIF Note would be paid off in approximately 15 years with increment generated by the development. It is projected that the Note would terminate with the final payment on February 1, 2039. The AHTF 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. By providing additional assistance through the trust fund, this allows the development to provide deeper levels of affordability for 10 of the units and to incorporate more, larger units. 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 Redeveloper until it is paid off. It is estimated that the development would Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 6 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 generate nearly $143,000 in annual property taxes upon completion and full occupancy. The city’s portion would be nearly $50,000. Proposed contract for private redevelopment: Key business terms for providing the proposed financial assistance were provided in the staff report for the April 25, 2022 study session. The proposed contract for private redevelopment specifies the mutual obligations between the EDA and Real Estate Equities (“Redeveloper”) as well as the terms and conditions of the financial assistance to be provided. The following is a summary of the business terms in the proposed contract consistent with EDA policy, past practices, and previous discussions with the EDA/city council. The Redevelopment Property consists of the property highlighted in the aerial photo below. Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 7 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 Proposed redevelopment site for Wooddale Avenue Apartments 1. The Redeveloper agrees to construct an all-affordable multifamily rental housing development on the Redevelopment Property consisting of a 114-unit apartment building with approximately 117 underground parking stalls (the “Development”). The Development shall include a mix of one-bedroom, two-bedroom, and three-bedroom units (the “Minimum Improvements”). 2. The EDA agrees to reimburse the Redeveloper for a portion of its Public Redevelopment Costs incurred during construction of the Development through tax increment financing (TIF) up to $940,000. 3. The EDA agrees to issue a tax increment revenue note (“TIF Note”) to the Redeveloper in the maximum principal amount of $940,000 payable from available tax increment, generated by the development on a “pay-as-you-go” basis, over a period of approximately 15 years. The TIF Note will bear interest at 4.3% or the Redeveloper’s actual financing interest rate. 4. In order to provide the tax increment to the Redeveloper, the EDA agrees to establish a new housing TIF district consisting of one parcel: 3801 Wooddale Avenue. 5. The EDA will issue the TIF Note to the Redeveloper upon completion of the Minimum Improvements and Redeveloper providing the EDA with a statement specifying the Public Redevelopment Costs incurred by the Redeveloper related to the Development along with evidence that each identified Public Redevelopment Cost has been paid or incurred by the Redeveloper. 6. The TIF assistance will be subject to a "look back" analysis to be performed by Ehlers, the EDA’s financial consultant. Under the provision, the Redeveloper would be required to submit final project costs related to the construction of the development. The look Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 8 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 back provision ensures that if the Development’s total Public Redevelopment Costs are lower or if the project performs financially better than the Redeveloper’s estimates, the EDA shares economically in the success of the project by reducing the amount of TIF assistance provided. 7. The EDA or the City will provide the Redeveloper an interest-free deferred loan from its Affordable Housing Trust Fund in an amount not to exceed $850,000. • The AHTF loan will be repaid upon the earlier of (i) 25 years, (ii) refinancing/re- syndication of the Affordable Housing Minimum Improvements, or (iii) sale or transfer of the Affordable Housing Minimum Improvements; provided, however, that Redeveloper may transfer the Affordable Housing Minimum Improvements to a related entity to the Redeveloper without such repayment obligation. 8. Construction of the Development will commence by August 31, 2022, and will be substantially completed by August 31, 2024. 9. Redeveloper will construct the Development and maintain it in good condition until the Contract terminates. 10. Redeveloper will comply with the TIF Act and city’s Inclusionary Housing Policy in effect at the time of its planning applications (February 28, 2022). Specifically, Redeveloper agrees to a 26-year covenant beginning on the date a certificate of occupancy is issued providing that (i) at least 40% of the units as affordable to households at or below 60% AMI for purposes of complying with the TIF Act ; (ii) at least 104 of the units will be affordable to households at or below 60% AMI; (iii) at least five units will be affordable to households at or below 50% AMI (two one-bedroom units, two two-bedroom units, and one three-bedroom unit) and such units shall have free surface parking; (iv) at least five units will be affordable to households at or below 30% AMI (two one-bedroom units, two two-bedroom units, and one three-bedroom unit) and such units shall have free surface parking; and (v) households with incomes at or below 60% AMI will have the option to purchase underground parking at a cost not to exceed the greater of 60% of the market rate for underground parking as calculated by the City on an annual basis or $75 per month. Certain affordability requirements will remain in place for 30 years due to the requirements of the low-income housing tax credits to be received by the Redeveloper. 11. Redeveloper will use reasonable efforts to meet the following business enterprise and workforce participation goals for women and Black, indigenous and people of color (BIPOC) in conjunction with construction of the Development: Participation Goals Women BIPOC Business Enterprises 6% 13% Workforce 6% 32% Participation goals would be applied to the Development as a whole and pertain to the total amount of construction and related contracts. Redeveloper would provide and use reasonable efforts to cause its contractors/subcontractors to provide certain information and resources to prospective contractors/subcontractors before bidding; to implement procedures designed to notify women and people of color about contracting Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 9 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance report(s), all as more particularly set forth in the Contract. Failure to achieve these goals would not constitute a breach or default by Redeveloper. 12. Redeveloper will comply with the City’s Green Building Policy in effect at the time of submittal for planning applications (February 28, 2022) and shall use Enterprise Green Communities/Energy Star Program with the Minnesota Overlay as its design rating system to meet the requirements of the policy. Among the sustainability features to be included are: • A rooftop solar array which produces approximately 40-53 kw • 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 13. Redeveloper will install the following items, at a minimum, in conformity with the City’s Planning Development Contract: • 19 Level 2 electric vehicle charging stations. • Landscaping on the Development Property. • All items required under the City’s Building Readiness Ordinances. 14. Redeveloper and EDA mutually agree to enter into a Minimum Market Value Assessment Agreement setting a minimum property tax value for the Development. 15. Redeveloper agrees to not discriminate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the Development Property or Minimum Improvements. 16. Redeveloper agrees to certify that the Minimum Improvements have been constructed in accordance with the Contract for Private Redevelopment and all applicable local, state, and federal laws and regulations (including but not limited to environmental, zoning, building code, labor, public health laws and regulations, and compliance with fair wage, wage theft, and employee safety laws). Additionally, all costs related to the Minimum Improvements and the development of the Redevelopment Property, including payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the Redeveloper’s request for the Certificate of Completion and written lien waivers have been provided from each contractor for all work done and for all materials furnished by it for construction or installation of the Minimum Improvements. 17. Redeveloper agrees to pay reasonable administrative costs incurred by the EDA, including consultant and attorney fees, in connection with the Development. Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 10 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 18. If Redeveloper defaults under the Contract, the EDA may (among other things) terminate the TIF Note and the Contract. 19. The Contract and TIF Note will terminate upon the earliest of the final payment of principal and interest on the TIF Note, the required decertification of the TIF District, or an uncured Event of Default under the Contract. A copy of the redevelopment contract is available for review in the community development department. Summary: As indicated in the March 28, 2022 study session staff report, the proposed $34.26 million Wooddale Avenue Apartments development has a verified financial gap and is not financially feasible but for the provision of financial assistance from the EDA and city. To offset this gap, it is proposed that the EDA consider reimbursing the Redeveloper up to $940,000 in pay-as- you-go tax increment generated by the redevelopment for a term of approximately 15 years and provide a $850,000 deferred loan from the AHTF. Providing financial assistance to the proposed Wooddale Avenue Apartments development provides numerous public benefits and makes it possible to: • provide the community with 114 additional affordable housing units for 30 years at 60% AMI, including five units affordable to households at 50% AMI and five units affordable to households at 30% AMI, which will be more deeply affordable for 26 years. • provide the community with affordable family-sized units, including 50 two-bedroom units and 37 three-bedroom units. • further the city’s sustainability goals by developing a building to Enterprise Green Community standards and providing a rooftop solar array capable of generating up to 43-50 kw. • further diversify the city’s housing stock with new multi-family apartment offerings consistent with the city’s strategic priorities and Comprehensive Plan. • redevelop environmentally impacted property. • facilitate $34.26 million of new investment in the city. • provide additional residential density near the Metro Greenline Extension (formerly SWLRT) Wooddale Avenue Station. • construct quality buildings (e.g., sound architectural design, quality construction and materials) with underground parking, public features, and sustainable elements. • provide evidence to the State of Minnesota Legislature regarding the benefits provided to affordable housing projects by utilizing pooled TIF funds to help fund the city’s Affordable Housing Trust Fund. Real Estate Equities proposed Wooddale Avenue Apartments development meets the minimum and desired qualifications, and the city’s objectives for the provision of Tax Increment Financing as specified in the city’s TIF Policy. The proposed amount of TIF assistance is consistent with other developments the EDA has previously assisted. The development also meets the requirements of the AHTF Policy for utilization of those funds. Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 11 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 Recommendation: Staff supports approval of the proposed contract for private redevelopment with Real Estate Equities as outlined above to advance the Wooddale Avenue Apartments development. The attached resolution of approval allows for modifications to the contract that do not alter the substance of the transaction without bringing the contract back to the EDA for amendment. Next steps: Upon execution of the redevelopment contract, the Redeveloper plans to close on its project financing by July 8, 2022 and commence construction shortly thereafter. uture actions Governing body Date Establishment of the Wooddale Avenue Apartment TIF District • TIF Housing District/TIF Plan Interfund loan EDA June 6, 2022 Approval of Contract for Private Redevelopment for Wooddale Avenue Apartments EDA June 6, 2022 Approval of Contract for Private Redevelopment and Wooddale Avenue Apartments AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 12 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 EDA Resolution No. 22-_____ Resolution approving contract for private development and awarding the sale of, and providing the form, terms, covenants and directions for the issuance of a tax increment revenue note to St. Louis Park AH I, LLLP; and taking other actions in connection therewith Be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Recitals; Approval and Authorization; Award of Sale. 1.01. Subject to approval by the City Council of the City of St. Louis Park, Minnesota (the “City’), the Authority has approved the establishment of the Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District (the “TIF District”), a housing district within Redevelopment Project No. 1 (the “Project”), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. 1.02. The City Council of the City will consider a resolution approving the TIF District after a public hearing on the date hereof. 1.03. To facilitate the development of certain property within the Project and TIF District, the Authority, the City, and St. Louis Park AH I, LLLP, a Minnesota limited liability limited partnership (the “Owner”), have negotiated a Contract for Private Development (the “Agreement”) which provides for the construction by the Owner of an affordable multifamily rental housing facility with underground parking on certain property legally described therein (the “Development Property”), the issuance by the Authority of a tax increment revenue note (the “TIF Note”) to the Owner, and the loan of proceeds of funds from the City’s Affordable Housing Trust Fund in the principal amount not to exceed $850,000 (the “City AHTF Loan”) to the Owner. 1.04. To allow the Owner to perform certain obligations under the Agreement, Cedar Rapids Bank and Trust, an Iowa banking corporation, in its capacity as lender, together with any other permitted co-lenders and their respective successors and/or permitted assigns (collectively, “Senior Lender”), has agreed to provide the Owner with financing by purchasing the tax-exempt conduit revenue obligations to be issued by the City and providing taxable financing in the combined estimated principal amount of $34,000,000 (collectively, the “Senior Financing”). Section 2. The Agreement and Related Documents. 2.01. Subject to approval of the TIF District and the Agreement by the City Council, the Board hereby approves the Agreement in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Agreement including without limitation the Assessment Agreement and the Declaration of Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 13 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 Restrictive Covenants (all as defined in the Agreement) (the “TIF Documents”). In addition, in order to provide the Senior Financing, the Senior Lender requires the execution and delivery by the Authority of the following documents, forms of which are on file with the Authority (the “Additional Lender Documents” and together with the TIF Documents, the “Development Documents”): (i) a Master Subordination Agreement between the Senior Lender, the City, and the Authority, pursuant to which the authority and the City agree to subordinate their right to, title to, and interest in the Property and the rights and the remedies and options of the Authority under the Contract to those of the Senior Lender and the Senior Financing; and (ii) two Collateral Assignments of Payments under Tax Increment Revenue Note between the Owner and the Senior Lender and acknowledged by the Authority, pursuant to which the Authority consents to the assignment of the TIF Note by the Owner to the Senior Lender. 2.02. The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the form on file with the Authority and the approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 2.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Development Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Development Documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. Section 3. Issuance, Sale, and Terms of the TIF Note. 3.01. The Authority hereby authorizes the President and Executive Director to issue the TIF Note in accordance with the Agreement. All capitalized terms in this resolution have the meaning provided in the Agreement unless the context requires otherwise. 3.02. The TIF Note shall be issued to the Owner in the maximum aggregate principal amount of $940,000 in consideration of certain eligible costs incurred by the Owner in connection with construction of the Minimum Improvements under the Agreement. The TIF Note shall be Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 14 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 dated the date of delivery thereof, and shall bear interest at the lesser of the rate of 4.30% per annum or the actual interest rate of the Owner’s mortgage financing, from the date of issue to the earlier of maturity or prepayment. The TIF Note will be issued in the principal amount of Public Development Costs submitted and approved in accordance with Section 3.3 of the Agreement. The TIF Note is secured by Available Tax Increment, as further described in the form of the TIF Note. The Authority hereby delegates to the Executive Director the determination of the date on which the TIF Note is to be delivered, in accordance with the Agreement. 3.03. In the event of legislative changes reducing the tax rate classification of certain qualified low-income rental housing under Minnesota Statutes, Section 273.13, subdivision 25(e), the Authority may reduce the principal amount of the TIF Note in the Agreement to reflect the anticipated reduction in taxes for the Minimum Improvements. The Authority hereby delegates to the Executive Director, in consultation with the Authority’s municipal advisor, the authority to determine of the final amount of the TIF Note in the event such legislation passes. Section 4. Form of TIF Note. The TIF Note shall be in substantially the form attached as an exhibit to the Agreement, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue. Section 5. Terms, Execution and Delivery. 5.01. Denomination, Payment. The TIF Note shall be issued as a single typewritten note numbered R-1. The TIF Note shall be issuable only in fully registered form. Principal of and interest on the TIF Note shall be payable by check or draft issued by the Registrar described herein. 5.02. Dates; Interest Payment Dates. Principal of and interest on the TIF Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 5.03. Registration. The Authority hereby appoints the Finance Director of the City to perform the functions of registrar, transfer agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the TIF Note and the registration of transfers and exchanges of the TIF Note. (b) Cancellation. The TIF Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (c) Improper or Unauthorized Transfer. When the TIF Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on the TIF Note or separate instrument of transfer is legally authorized. The Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 15 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (d) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the TIF Note is at any time registered in the bond register as the absolute owner of such TIF Note, whether the TIF Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the TIF Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability of the Authority upon the TIF Note to the extent of the sum or sums so paid. (e) Taxes, Fees and Charges. For every transfer or exchange of the TIF Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (f) Mutilated, Lost, Stolen or Destroyed TIF Note. In case the TIF Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new TIF Note of like amount, maturity date and tenor in exchange and substitution for and upon cancellation of such mutilated TIF Note or in lieu of and in substitution for the TIF Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the TIF Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that the TIF Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be named as obligees. The TIF Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed TIF Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF Note prior to payment. 5.04. Preparation and Delivery. The TIF Note shall be prepared under the direction of the Finance Director of the City and shall be executed on behalf of the Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the TIF Note shall cease to be such officer before the delivery of the TIF Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the TIF Note has been so executed, it shall be delivered by the Executive Director to the Owner thereof in accordance with the Agreement. Section 6. Security Provisions. 6.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the TIF Note all Available Tax Increment as defined in the TIF Note. Available Tax Increment shall be applied to payment of the principal of and interest on the TIF Note in accordance with the terms of the form of TIF Note. 6.02. Bond Fund. Until the date the TIF Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains Economic development authority meeting of June 6, 2022 (Item No. 6e) Page 16 Title: Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments – Ward 2 unpaid, the Authority shall maintain a separate and special “Bond Fund” to be used for no purpose other than the payment of the principal of and interest on the TIF Note. The Authority irrevocably agrees to appropriate to the Bond Fund on or before each Payment Date the Available Tax Increment in an amount equal to the Payment then due, or the actual Available Tax Increment, whichever is less. Any Available Tax Increment remaining in the Bond Fund shall be transferred to the Authority’s account for the TIF District upon the termination of the TIF Note in accordance with its terms. Section 7. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of the TIF Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality of the TIF Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 8. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Meeting: Economic development authority Meeting date: June 6, 2022 Action agenda item: 6f Executive summary Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Recommended action: • Motion to adopt EDA Resolution approving the establishment of the Rise on 7 Tax Increment Financing District (a housing district). • Motion to adopt EDA Resolution authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Rise on 7 TIF District and an Interfund Loan for advance of proceeds of the Affordable Housing Trust Fund (AHTF) deferred loan. Policy consideration: Does the EDA support the establishment of a housing TIF district to assist with the repayment of a 40-year, $1.8 million deferred loan from the AHTF to facilitate the construction of the Rise on 7 development? Summary: A staff report regarding CommonBond Communities’ request for financial assistance in connection with the proposed Rise on 7 development was provided at the April 11, 2022 study session. As stated in the report, constructing the Rise on 7 development is not feasible but for the use of financial assistance (AHTF and TIF) due to extraordinary costs associated with redeveloping the site as well as the cost of constructing affordable housing with below market rents. Given subsequent EDA support, the proposed financial assistance was advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Rise on 7 TIF district (a housing district) and approve the related Contract for Private Redevelopment. Ehlers recommends providing $1.8 million in financial assistance from the city’s Affordable Housing Trust Fund (AHTF) in the form of a 40-year deferred loan. CommonBond would repay the outstanding balance in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. In addition, to generate annual proceeds to replenish the AHTF earlier than 40 years, the EDA would retain 100% of the annual tax increment generated by the district to being repaying the AHTF and cover administrative costs associated with the district. Financial or budget considerations: Establishing the Rise on 7 TIF District does not commit the city to any specific level of financial assistance for the proposed project. Procedurally, it creates the funding vehicle to reimburse the AHTF with 100% of the annual tax increment generated from a new housing TIF district over 26 years. The terms and amount of financial assistance are specified within the Redevelopment Contract with CommonBond Communities, which is also scheduled for consideration by the EDA on June 6, 2022. Authorizing an Interfund Loan in the amount of $1.8 million allows the city to repay the AHTF with 100% of the annual tax increment generated by the new TIF district. Authorizing an Interfund Loan in the amount of $50,000 allows the EDA to recoup certain administrative costs in connection with the new TIF District. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution – TIF District; EDA resolution – Interfund Loan; TIF District Overview 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 Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 2 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Discussion Background: The existing building at 8115 State Highway No. 7 was built in 1955 and used as a place of worship and a daycare. The site was acquired by CommonBond Communities in 2020 from the former Prince of Peace Lutheran Church congregation. The Prince of Peace congregation merged with another local church and desired to leave behind a legacy of affordable housing for the community. The existing building is currently vacant and would be demolished. The daycare space does not meet current building and fire code requirements for occupancy. CommonBond Communities acquired the redevelopment site in 2020 and proposes to demolish the existing building and develop the site with an all-affordable, five-story mixed-use building. The development would include a daycare and 120 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 the Highway 7 frontage road and provides parking in a surface lot on the north side of the building and one level of structured parking on the ground floor of the building. The plan includes two outdoor play areas, one for the daycare and another for residents, as well as an outdoor recreation area. Other proposed site improvements include new landscaping, installation of new sidewalk connections, an underground stormwater management system and a 20kw rooftop solar array. CommonBond Communities completed a phase I and phase II environmental assessment of the subject site. It indicates debris from the construction of the Highway 7 was likely left on the property. Such debris will need to be removed and any residual contaminants remediated. Additionally, at least one underground storage tank was identified on the property. The tank will need to be properly removed and disposed of prior to the existing building’s demolition. The proposed apartment development exceeds the city’s inclusionary housing policy as amended in October 2021 and creates an all-affordable development with rents ranging from 30 percent area median income (AMI) to 60 percent AMI. Per the Metropolitan Council, the 30 percent AMI for a family of four is $31,450, the 50 percent AMI for a family of four is $52,450, and the 60 percent AMI for a family of four is $62,940. CommonBond plans to include 24 three- bedroom units in the building’s unit mix, including three three-bedroom units affordable at 30 percent AMI to further the city’s goals for affordable family-sized housing. By covenant, the housing would be kept affordable for at least 30 years per the requirements of the allocation for Low Income Housing Tax Credits the development has received. The development will exceed the city’s Green Building Policy as amended in July 2020 and intends to follow Enterprise Green Communities for its design tool. The development will also include the following sustainable features including: a 20kw rooftop solar array, increased efficiency in building envelope, heating and cooling equipment, plumbing and light fixtures, on site stormwater retention system, charging stations for electric vehicles, and bioswale and native plantings along the western yard of the property On June 21, 2021, city council approved a comprehensive plan amendment to re-guide the site’s land use from civic to high density residential, and a preliminary and final plat. On July 6, Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 3 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 2021, city council approved a preliminary and final planned unit development zoning district to allow the proposed all-affordable, multi-family residential development and daycare. The next steps in the entitlement process include establishing the Rise on 7 TIF District to create the funding vehicle to reimburse the Affordable Housing Trust Fund’s (AHTF) deferred loan provided to CommonBond Communities to construct the proposed development. Also on June 6, 2022, the EDA will be asked to consider approval of a Contract for Private Development which specifies the terms and conditions of the proposed financial assistance provided by the city for the development. Additionally, the city council will be asked to hold a public hearing and consider a resolution of approval for the TIF District and an approval finding the proposed Rise on 7 TIF District Plan conforms to the general plan for development of the city. Redeveloper’s request for public financing assistance and TIF application review: Due to decreased rental income from 100% of the units over 26 years, and the extraordinary site preparation costs outlined above, 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 infeasible without public financial assistance. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. Ehlers determined that a 40-year deferred loan in the amount of $1.8 million from the city’s Affordable Housing Trust Fund (AHTF) is necessary to enable the proposed development to become financially feasible. To repay and replenish the AHTF back sooner than 40-years, Ehlers recommends establishing a new housing TIF district on the site. The tax increment generated from the district would be used to pay back a portion of the AHTF loan over 26 years on a "pay-as-you-go" basis, through the establishment of an interfund loan. CommonBond would repay the deferred loan in full plus 1.00% interest, less any tax increment received at the earlier of 40-years, sale, refinance, or re- syndication. The EDA received a staff report detailing the TIF Application at the April 11, 2022 study session along with a recommendation for the appropriate amount of financial assistance for which there was consensus support. Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 4 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Graphic showing the various funding sources and repayment paths TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Rise on 7 TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger Rise on 7 TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms and conditions of the financial assistance are contained in the separate Redevelopment Contract between the parties. Both the TIF Plan and the Redevelopment Contract need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Rise of 7 TIF District: In order to reimburse the city’s AHTF with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Rise on 7 redevelopment site and the proposed Rise on 7 TIF District are located within the city, the proposed Rise on 7 TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Rise on 7 TIF District is shown in the map below. Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 5 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Location of proposed Rise on 7 TIF District The entirety of the tax increment to be generated would be derived from the subject redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following parcel and adjacent roads and internal rights of- way: • 8115 Highway 7 Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 6 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Qualifications of the proposed TIF district: CommonBond Communities acquired the redevelopment site in 2020 and proposes to demolish the existing building and develop the site with an all-affordable, five-story mixed-use building. The development would include a daycare and 120 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 the Highway 7 frontage road and provides parking in a surface lot on the north side of the building and one level of structured parking on the ground floor of the building. There are two outdoor play areas, one for the daycare and another for residents, as well as an outdoor recreation area. Other proposed site improvements include new landscaping, installation of new sidewalk connections, an underground stormwater management system and a 20kw rooftop solar array. 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 to households at 60 percent AMI. The proposed all-affordable development includes 120 units with rents ranging from 30 percent area median income (AMI) to 60 percent AMI. Under the inclusionary housing policy Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 7 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 these units are required to be affordable for 26 years. However, due to the LIHTC allocation, these units will be affordable at the various income levels listed below for a total of 30 years. Unit Type 30% AMI 40% AMI 50% AMI 60% AMI Total units 1-bedroom 14 22 21 57 2-bedroom 2 37 39 3-bedroom 3 21 24 Total 19 22 21 58 120 To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 120 housing units (100 percent) affordable to households at or below 60 percent of AMI, the proposed Rise on 7 development qualifies as a housing TIF district under the statute. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On June 21, 2021, the city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from C-Civic to RH - high density residential. The density of the proposed Rise on 7 development meets the requirements for RH – high density residential land use. On June 6, 2022, the city council will consider a resolution of approval finding the proposed Wooddale Avenue Apartments TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2050. The city intends to keep the district open until its estimated termination date in order to capture 100% of the annual tax increment generated plus interest to repay a portion of the AHTF. The tax increment collected will repay the interfund loan with a 4.00% interest rate to the AHTF. Interfund Loan: In order for the EDA to capture 100% of the tax increment from a newly established TIF district, there needs to be an in-district obligation. The EDA will need to approve an interfund loan of $1.8 million from the AHTF to the TIF district to satisfy the required in- district obligation. In addition, the EDA will need to approve a second interfund loan for $50,000 to recoup certain administrative costs in connection with the new TIF District. Property value and taxes: Until recently, the subject redevelopment property has been tax exempt from property taxes as the site was owned and used as a religious institution, until it was sold to CommonBond Communities. The current taxable market value of the subject redevelopment property is $2,735,000. This would be the proposed TIF district’s Base Value. The estimated market value upon the proposed development’s completion (for TIF estimation purposes) is estimated at approximately $21 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the interfund loan until it is paid off or a triggering event happens where CommonBond is required to repay the deferred Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 8 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 loan in full plus interest. The city, county, and school district would continue to receive the property taxes collected on the subject site’s Base Value. TIF district budget: The Rise on 7 TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the city’s AHTF deferred loan provided in connection with the construction of the Rise on 7 development. Under current tax rates and classifications, it is anticipated over 26 years tax increment generated by the district will repay the AHTF approximately $1.5 million. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Rise on 7 TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Rise on 7 Tax Increment Financing District and authorization of an Interfund Loan of $1.8 million from the AHTF to the TIF district to satisfy the in-district obligation and a second Interfund Loan of $50,000 in connection with the administration of the new TIF District. Next steps: The redevelopment contract between the EDA and CommonBond Communities which specifies the terms, conditions, and amount of TIF and AHTF assistance related to the proposed Rise on 7 project is also scheduled for consideration by the EDA on June 6, 2022. Additionally, that same evening, the city council will be asked to hold a public hearing regarding the establishment of the proposed TIF district. Previous/future actions Governing body Date Establishment of the Rise on 7 TIF District • TIF Housing District/TIF Plan • Interfund loan for AHTF and Administrative costs EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7. EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7 and AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 9 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 EDA Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of the Rise on 7 Tax Increment Financing District within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have caused to be created a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended; and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for the Rise on 7 Tax Increment Financing District (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the Board of Commissioners of the Authority (the “Board”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of the County (the “County Auditor”); and Whereas, following the meeting of the Authority on the date hereof, the City Council of the City (the “City Council”) will hold a duly noticed public hearing on the Redevelopment Plan Modification and establishment of the TIF District, and is expected to approve the creation of the TIF District and the associated TIF Plan following such public hearing; and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein and therefore the Board reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The Board hereby finds that: (a) the land within the Project would not be available for redevelopment without the public intervention and financial assistance to be Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 10 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 sought under the Redevelopment Plan Modification; (b) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project area by private enterprise; and (c) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification, including without limitation the development of affordable housing within the City. The purposes and development activities set forth in the Redevelopment Plan Modification, are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. 2. The TIF District is in the public interest and is a “housing district” within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portions of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial, retail or other nonresidential uses. 3. Subject to approval by the City Council, the Redevelopment Plan Modification, the establishment of the TIF District, and the TIF Plan for the TIF District are hereby approved. 4. The Board hereby finds that the TIF Plan and the Modification to the Redevelopment Plan will promote the public purposes and accomplish the objectives set forth therein; the Board makes all the findings set forth in the resolution to be adopted by the City Council on the date hereof approving the Modification to the Redevelopment Plan and the TIF Plan and the findings set forth in the Modification to the Redevelopment Plan and the TIF Plan which document is incorporated herein by reference. 5. Authority staff is hereby authorized and directed to file a request for certification of the TIF District with the County Auditor and to file a copy of the TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. 6. The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased. 7. Authority staff, consultants, and legal counsel are authorized to take all actions necessary to implement the TIF Plan and to negotiate, draft, prepare and present to the Board for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Approval of the TIF Plan does not constitute approval of any project or a development agreement with any developer. Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 11 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 12 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 EDA Resolution No. 22-______ Resolution authorizing an interfund loan for advance of certain costs in connection with the Rise on 7 Tax Increment Financing District Whereas, the City of St. Louis Park, Minnesota (the "City") and the St. Louis Park Economic Development Authority (the “Authority”) intend to establish the Rise on 7 Tax Increment Financing District (the "TIF District"), a housing district, within Redevelopment Project No. 1 (the "Project") in the City, and will adopt a Tax Increment Financing Plan (the "TIF Plan") on the date hereof for the purpose of financing certain improvements within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”); and Whereas, the Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available Authority funds. Under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act; and Whereas, the Authority intends to enter into a Contract for Private Development (the “Agreement”) with the City and CB SLP Housing Limited Partnership, a Minnesota limited partnership (the “Developer”), pursuant to which the Developer will agree to develop approximately 120 units of multifamily rental housing, approximately 74 underground parking stalls, and approximately 6,600 square feet of space consisting of an early childcare center (the “Minimum Improvements”); and Whereas, to make the Minimum Improvements economically feasible, the Authority has proposed to provide a deferred loan to the Developer in the principal amount of $1,800,000 (the “Deferred Loan”) for certain development costs, including constructing affordable housing, demolition costs and costs of asbestos removal (the “Public Development Costs”) in accordance with the terms of the Agreement; and Whereas, the Authority has determined to pay for the Public Development Costs through the Deferred Loan, which costs may be financed on a temporary basis from Authority funds available for such purposes; and Whereas, the Authority has determined to use tax increments from the TIF District to pay for certain administrative costs identified in the TIF Plan in the principal amount of $50,000 (the "Administrative Costs"), which costs may be financed on a temporary basis from Authority funds available for such purposes; and Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 13 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Whereas, on the date hereof, the City Council of the City will consider a resolution authorizing an interfund loan from the City’s Affordable Housing Trust Fund to the Authority to provide funds for the Authority to make the Deferred Loan to the Developer and provide temporary financing for the Public Development Costs; and Whereas, subject to approval by the City Council, the Authority will make the Deferred Loan with funds from the City’s Affordable Housing Trust Fund; and Whereas, the Authority intends to reimburse itself for the Administrative Costs and intends to reimburse the City’s Affordable Housing Trust Fund from tax increments derived from the TIF District in accordance with the terms of this resolution; and Now, therefore, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority as follows: 1. The Authority hereby authorizes the advance of up to $50,000 from any legally authorized Authority fund or so much thereof as may be paid as Administrative Costs (the “Administrative Costs Portion Interfund Loan”) and the advance of up to $1,800,000 from the City’s Affordable Housing Trust Fund to pay the Deferred Loan (the “AHTF Portion Interfund Loan” and together with the Administrative Costs Portion Interfund Loan, the “Interfund Loan”). The Authority shall reimburse itself for the Administrative Costs and reimburse the City for the amount of the Deferred Loan together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2. Principal and interest ("Payments") on the Interfund Loan shall be paid semi- annually on each August 1 and February 1 (each a "Payment Date") to the City for the AHTF Portion Interfund Loan or the Authority for the Administrative Costs Portion Interfund Loan, respectively, commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the Authority, through the date of last receipt of tax increment from the TIF District. 3. Payments on the Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available, or as otherwise determined by the Executive Director of the Authority, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the Authority by Hennepin County, all in accordance with the TIF Act. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds or notes issued by the Authority and secured in whole or in part with Available Tax Increment. This Interfund Loan shall be paid prior to any pay-as-you-go notes or contracts secured in whole or in part with Available Tax Increment, and any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. Economic development authority meeting of June 6, 2022 (Item No. 6f) Page 14 Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 4. The principal sum and all accrued interest payable under this Interfund Loan are prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 5. This Interfund Loan is evidence of an internal borrowing by the Authority and the City in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including without limitation the Authority or the City. Neither the State of Minnesota, the City, the Authority, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota, the City, the Authority or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. Notwithstanding the foregoing, the Authority shall apply payments received by the Developer or any affiliate thereon on the Deferred Loan in accordance with the Agreement (the “Developer Payments”) to the AHTF Portion Interfund Loan. Any Developer Payments reflecting payments of principal on the Deferred Loan shall be applied against principal of the AHTF Portion Interfund Loan. 6. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. 7. The Authority may from time to time amend the terms of this resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided, however, that the interest rate may not be increased above the maximum specified in Section 469.178, subdivision 7 of the TIF Act. Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary • • Economic development authority meeting of June 6, 2022 (Item No. 6f) Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Page 118 • • • • Economic development authority meeting of June 6, 2022 (Item No. 6f) Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Page 119 Economic development authority meeting of June 6, 2022 (Item No. 6f) Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Page 120 Economic development authority meeting of June 6, 2022 (Item No. 6f) Title: Establishment of the Rise on 7 Tax Increment Financing District – Ward 2 Page 121 Meeting: Economic development authority Meeting date: June 6, 2022 Action agenda item: 6g Executive summary Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 Recommended action: Motion to Adopt EDA Resolution approving the Contract for Private Redevelopment between the EDA and CommonBond Communities/CB SLP Housing Limited Partnership. Policy consideration: Does the EDA wish to approve the proposed Contract for Private Redevelopment with CommonBond Communities to facilitate the proposed Rise on 7 development? Summary: Affordable housing developer CommonBond Communities acquired the former Prince of Peace Lutheran church property at 8115 MN Highway 7 in 2020 with plans to redevelop it. CommonBond proposes removal of the existing building and construction of an all-affordable, five-story, 120-unit multifamily housing development named Rise on 7, including a 6,600 SF daycare with half of the daycare spaces reserved for affordable childcare. The proposed $40.7 million development includes a mix of all-affordable one-, two-, and three- bedroom units ranging from 30% to 60% area median income, 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 for all units, for a total of 30 years of affordability. The development would also exceed the city’s green building policy. Financial or budget considerations: Under the proposed Contract for Private Redevelopment, the Redeveloper agrees to construct the proposed Rise on 7 development as specified under the PUD, and the EDA agrees to provide a $1.8 million deferred loan from the Affordable Housing Trust Fund (AHTF) to reimburse the Redeveloper for specified public redevelopment and affordable housing costs in connection with the project. The EDA would establish a new housing TIF district and would retain 100% of the annual tax increment generated over 26 years to repay portions of the AHTF loan back sooner. In addition, CommonBond would repay the outstanding loan balance in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. Key business terms of the proposed contracts were provided in the staff report on May 9, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; EDA resolution Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 2 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 Discussion Background: The existing building at 8115 State Highway No. 7 was built in 1955 and used as a place of worship and a daycare. The site was acquired by CommonBond Communities in 2020 from the former Prince of Peace Lutheran Church congregation. The Prince of Peace congregation merged with another local church and desired to leave behind a legacy of affordable housing for the community. The existing building is currently vacant and would be demolished. The daycare space does not meet current building and fire code requirements for occupancy. CommonBond Communities (Redeveloper) proposes to remove the existing building and develop the site with an all-affordable, five-story mixed-use building. The $40.7 development would include a 6,600 square foot daycare and 120 dwelling units that would be affordable at a range of 30 to 60 percent of the area median income (AMI). As proposed, the daycare will provide childcare at affordable rates for half the children that attend. Approximately fifteen of the daycare spaces will be reserved for families living on the property. The plan proposes accessing the site from the Highway 7 frontage road and provides parking in a surface lot on the north side of the building along with one level of structured parking on the ground floor. The plan includes two outdoor play areas, one for the daycare and another for residents, as well as an outdoor recreation area. Other proposed site improvements include new landscaping, installation of new sidewalk connections, an underground stormwater management system and a 20kw rooftop solar array. CommonBond Communities completed a phase I and phase II environmental assessment of the subject site. It indicates debris from the construction of the Highway 7 was likely left on the property. Such debris will need to be removed and any residual contaminants remediated. Additionally, at least one underground storage tank was identified on the property. The tank will need to be properly removed and disposed of prior to the existing building’s demolition. On June 21, 2021, city council approved a comprehensive plan amendment to re-guide the site’s land use from civic to high density residential, and a preliminary and final plat. On July 6, 2021, city council approved a preliminary and final planned unit development zoning district to allow the proposed all-affordable, multi-family residential development and daycare. As approved, 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. The development has been awarded a $1.4 million-dollar Livable Communities Demonstration grant from the Metropolitan Council, a $950,000 Transit-oriented development grant from Hennepin County, and a 15-year rental operating subsidy from Hennepin County for the 30 percent area median income units. On January 11, 2022, CommonBond was awarded $20,576,600 in tax exempt revenue bonds from Minnesota Management and Budget and the necessary Low Income Housing Tax Credits (LIHTC) from Minnesota Housing. These bond allocations require the developer to receive all financial obligations within 180 days. The deadline for CommonBond to close on all its project financing is July 8, 2022. These bonds require a covenant that the housing be kept affordable Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 3 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 for at least 30-years, which is four years longer than required by the city’s inclusionary housing policy. The proposed housing development includes a mix of one-, two-, and three-bedroom units. The building’s mix of unit types is as follows: Unit Type 30% AMI 40% AMI 50% AMI 60% AMI Total units 1-bedroom 14 22 21 57 2-bedroom 2 37 39 3-bedroom 3 21 24 Total 19 22 21 58 120 Inclusionary housing: The proposed apartment development exceeds the city’s inclusionary housing policy as amended in October 2021 and creates an all-affordable development with rents ranging from 30 percent area median income (AMI) to 60 percent AMI. Per the Metropolitan Council, the 30 percent AMI for a family of four is $31,450, the 50 percent AMI for a family of four is $52,450, and the 60 percent AMI for a family of four is $62,940. CommonBond plans to include 24 three-bedroom units in the building’s unit mix, including three of the three-bedroom units affordable at 30 percent AMI to further the city’s goals for affordable family-sized housing. By covenant, the housing would be kept affordable for at least 30 years per the requirements of the LITHC allocation. Climate Action Plan: The development will exceed the city’s Green Building Policy as amended in July 2020 and will follow Enterprise Green Communities as its design tool. The development will also include the following sustainable features: • A 20kw rooftop solar array • Increased efficiency in building envelope, heating and cooling equipment, plumbing and light fixtures • On site stormwater retention system • Charging stations for electric vehicles • Bioswale and native plantings along the western yard of the property The Redeveloper has completed energy modeling to ensure the building will meet the requirements of SB 2030 (current requirement is an 80% reduction in energy compared to a standard constructed building). CommonBond has hired Building Knowledge to certify the building to MN Green Communities and Cain Thomas for building commissioning. Additionally, the development will provide 22 level 1 and one level 2 charging stations for residents, and conduit serving an additional 17 parking spaces. There will be 18 exterior bike loops at the north, south and daycare building entrances, and three bike storage rooms containing 42 spaces each for a total of 144 bicycle parking spaces. The site is within ¼ mile of Metro Transit Route 17 and approximately ½ mile from the future Blake Road LRT station which will provide efficient and reliable public transit for building Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 4 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 residents. This means tenants will not need to rely on a single-occupancy vehicle, resulting in reduced vehicle miles traveled and less emissions. Racial equity and inclusion: As previously noted, the proposed development will be 100 percent affordable to households with incomes ranging from 30 percent to 60 percent of AMI, providing qualified families with equal access to new, quality housing. CommonBond serves residents of all ages, races, sexual orientations, and geographies (rural, suburban, and urban). In addition, CommonBond believes that their leadership team and the Board of Directors profile should reflect CommonBond’s resident population and has been working diligently over the past ten years to increase leadership and board representation of BIPOC communities. To enhance representation of diverse communities on their board, they launched the Board Associates program in 2017. The program expands the opportunity for influence, network building, and leadership experience to those who are not traditionally considered board candidates. It builds a cohort of young people (under age 35) who are women, people of color, from low-income families, social and non-profit sector employees, and/or immigrants and provides board experience and mentoring opportunities to ultimately increase the nonprofit leadership talent pool in Minnesota and the Upper Midwest. CommonBond believes that a diversity of perspectives makes for stronger organizations that better understand of the needs of their constituents and the impact of their work. A diversity of perspectives on boards also brings improved cultural competency in policy making and more prudent decision-making. Two of CommonBond’s six executive team members are people of color, and CommonBond’s senior leadership team (director-level and above) is made up of 17% people of color, all Black/African American. Across CommonBond, 41% of staff are people of color, an increase from 26% ten years ago. Due to the submission timing of this development’s planning applications (March 3, 2022), the EDA’s DEI Policy is not in effect for this development. However, the Redeveloper has agreed to the inclusion of business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in the construction of the development. Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 5 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 Rendering of proposed Rise on 7 building. Pending approval of its financing, the Redeveloper plans to commence construction of the building in summer 2022 and complete it by mid-2024. CommonBond Companies would own and manage the residential development for the long term. Redeveloper’s request for public financing assistance and TIF application review: Due to decreased rental income from 100% of the units over 26 years, and the extraordinary site preparation costs outlined above, 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 infeasible without public financial assistance. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the development’s pro forma to determine what, if any, level of financial assistance was necessary for it to become financially feasible. The EDA received a staff report detailing the TIF Application at the April 11, 2022 study session along with a recommendation for the appropriate amount of financial assistance for which there was consensus support. Level and type of financial assistance: In summary, the Redeveloper’s sources and uses statement, income and expense estimates, financing assumptions, cash flow projections, and investor rate of return (ROR) related to the proposed development were reviewed by staff and Ehlers (the EDA’s financial consultant). Based upon its analysis, Ehlers determined that a 40- year deferred loan in the amount of $1.8 million from the city’s Affordable Housing Trust Fund (AHTF) is necessary to enable Rise on 7 to become financially feasible. The AHTF assistance would be committed to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of site demolition and clearance, soil remediation and correction as well as construction of affordable housing). The deferred loan would be provided to the Redeveloper’s title company upon financial closing. The Redeveloper’s title company would then disburse the funds to the Redeveloper upon Redeveloper’s delivery of evidence of $1.8 million in Public Redevelopment Costs. Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 6 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 To repay and replenish the city’s AHTF back sooner than 40-years, Ehlers recommends establishing a new housing TIF district on the site. The tax increment generated from the district would be used to pay back a portion of the AHTF loan over 26 years on a "pay-as-you- go" basis, through the establishment of an interfund loan. CommonBond would repay the deferred loan in full plus 1.00% interest, less any tax increment received at the earlier of 40- years, sale, refinance, or re-syndication. Graphic showing the various funding sources and repayment paths Housing TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. Property value and taxes: Until recently, the subject redevelopment property has been tax exempt from property taxes as the site was owned and used as a religious institution before it was sold to CommonBond Communities. The current taxable market value of the subject redevelopment property is $2,735,000. This would be the proposed TIF district’s Base Value. The estimated market value upon the proposed development’s completion (for TIF estimation purposes) is estimated at approximately $21 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the interfund loan until it is paid off or a triggering event happens where CommonBond is required to repay the deferred loan in full plus interest. The city, county, and school district would receive property taxes collected on the subject site’s Base Value. Proposed contract for private redevelopment: Key business terms for providing the proposed financial assistance were provided in the staff report for the May 9, 2022 study session. The Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 7 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 proposed contract for private redevelopment specifies the mutual obligations between the EDA and CommonBond Communities (“Redeveloper”) as well as the terms and conditions of the financial assistance to be provided. The following is a summary of the business terms in the proposed contract consistent with EDA policy, past practices, and previous discussions with the EDA/city council. The Redevelopment Property consists of the property highlighted in the aerial photo below. “Redevelopment Property” for proposed Rise on 7 1. The Redeveloper agrees to construct an all-affordable multifamily rental housing development on the Redevelopment Property consisting of a 120-unit apartment building with approximately 74 underground parking stalls, and approximately 6,600 square feet of space for an early childcare center (the “Development”). The Development shall include a mix of one-bedroom, two-bedroom, and three-bedroom units (the “Minimum Improvements”). 2. The EDA agrees to reimburse the Redeveloper for a portion of its Public Redevelopment Costs incurred during construction of the all-affordable Development through a $1.8 million, 40-year deferred loan from the city’s Affordable Housing Trust Fund (AHTF). • The Redeveloper shall repay the outstanding principal balance of the Interfund Loan plus interest at the rate of 1.00% upon the earlier of (i) 40 years, (ii) refinancing/re-syndication of the Minimum Improvements, (iii) sale or transfer of the Minimum Improvements, or (iv) in the event of certain uncured defaults under the Contract (the “Repayment Obligation”). Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 8 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 • The Redeveloper’s repayment obligation shall be secured by a promissory note, mortgage, and a guaranty from CommonBond Communities to be released upon delivery of a certificate of completion by the EDA. 3. The EDA agrees to provide the deferred loan to the Redeveloper’s title company to be held in escrow until the Redeveloper has closed on financing for the Development, and provided evidence that restrictive covenants, the mortgage securing the deferred loan, and the assessment agreement have been recorded in Hennepin County. 4. The Redeveloper’s title company will disburse the funds to the Redeveloper upon Redeveloper’s delivery of evidence of $1.8 million in development costs defined as the construction of affordable housing, demolition costs, and costs of asbestos removal. 5. In order to provide the AHTF deferred loan to the Redeveloper, and repay the AHTF earlier than 40 years, the EDA agrees to establish a new housing TIF district consisting of one parcel: 5118 Highway 7. 6. The EDA will issue the Certificate of Completion upon completion of the Minimum Improvements and Redeveloper providing the EDA with a statement specifying the Public Redevelopment Costs incurred by the Redeveloper related to the Development along with evidence that each identified Public Redevelopment Cost has been paid or incurred by the Redeveloper. 7. Construction of the Development will commence by August 31, 2022, and will be substantially completed by August 31, 2024. 8. Redeveloper will construct the Development and maintain it in good condition until the Contract terminates. 9. Redeveloper will comply with the requirements of the TIF Act and the City’s Inclusionary Housing Policy in effect at the time of its planning applications (April 19, 2021) as to income limitations. The Redeveloper will submit an Inclusionary Housing Plan in accordance with the Inclusionary Housing Policy. Specifically, the Redeveloper will agree to a 26-year covenant beginning on the date a certificate of occupancy is issued providing that (i) at least 40% of the units will be affordable to households at or below 60% AMI for purposes of complying with the TIF Act ; (ii) at least 58 of the units will be affordable to households at or below 60% AMI; (iii) at least 21 units will be affordable to households at or below 50% AMI (21 one-bedroom units); (iv) at least 22 units will be affordable to households at or below 40% AMI (22 one-bedroom units); and (v) at least 19 units will be affordable to households at or below 30% AMI (14 one-bedroom units, two two-bedroom units, and three three-bedroom units). 10. Redeveloper will use reasonable efforts to meet the following business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in conjunction with construction of the Development: Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 9 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 Participation Goals Women BIPOC Business Enterprises 6% 13% Workforce 6% 32% Participation goals would be applied to the Development as a whole and pertain to the total amount of construction and related contracts. Redeveloper will provide and use reasonable efforts to cause its contractors/subcontractors to provide certain information and resources to prospective contractors/subcontractors before bidding; to implement procedures designed to notify women and people of color about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance report(s), all as more particularly set forth in the Contract. Failure to achieve these goals would not constitute a breach or default by Redeveloper. 11. Redeveloper will comply with the city’s Green Building Policy as in place at the time of submittal for planning application (April 19, 2021) and shall use Enterprise Green Communities/Energy Star Program with the Minnesota Overlay as its design rating system to meet the requirements of the policy. Among the sustainability features to be included are: • A rooftop solar array generating at least 20kw • Increased efficiency in building envelope, heating and cooling equipment, plumbing and light fixtures. • On site stormwater retention system • Charging stations for electric vehicles including: o 22 level 1 EV stations o One level 2 EV stations o Conduit for 17 EV stations • Bioswale and native plantings along the western yard of the property 12. The Development will contain a daycare and will provide childcare at affordable rates for half the children that attend. Fifteen of the daycare spaces will be reserved for residents of the Development. 13. Redeveloper will install certain improvements in conformity with the city’s Planning Development Contract. 14. Redeveloper and EDA mutually agree to enter into a Minimum Market Value Assessment Agreement setting a minimum property tax value for the Development. 15. Redeveloper agrees to not discriminate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the Development Property or Minimum Improvements. 16. Redeveloper agrees to certify that the Minimum Improvements have been constructed in accordance with the Redevelopment Contract and all applicable local, state, and federal laws and regulations (including but not limited to environmental, zoning, building code, public health laws and regulations, and compliance with fair wage, wage Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 10 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 theft, and employee safety laws). Additionally, all costs related to the Minimum Improvements and the development of the Redevelopment Property, including payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the Redeveloper’s request for the Certificate of Completion and written lien waivers have been provided from each contractor for all work done and for all materials furnished by it for construction or installation of the Minimum Improvements. 17. Redeveloper agrees to pay reasonable administrative costs incurred by the EDA, including consultant and attorney fees, in connection with the Development. 18. If Redeveloper defaults under the Contract, the EDA may (among other things) terminate the TIF Note and the Contract and require the Redeveloper to repay the deferred loan plus interest. 19. The Contract and TIF Note will terminate upon the earliest of the final payment of principal and interest on the TIF Note, the required decertification of the TIF District, or an uncured Event of Default under the Contract. A copy of the redevelopment contract is available for review in the community development department. Summary: As indicated in the April 11, 2022 study session staff report, the proposed $40.7 million Rise on 7 development has a verified financial gap and is not financially feasible but for the provision of financial assistance from the EDA and city. To offset this gap, it is proposed that the EDA consider providing $1.8 million in financial assistance from the city’s Affordable Housing Trust Fund (AHTF) in the form of a 40-year deferred loan. The EDA would then retain 100% of the annual tax increment generated from a new housing TIF district over 26 years to repay an estimated $1.57 million of the AHTF loan. In addition, CommonBond would repay the remaining outstanding balance in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. Providing financial assistance to the proposed Rise on 7 development provides numerous public benefits and makes it possible to: • further diversify the city’s housing stock with a new, modern, multi-family apartment offering consistent with the city’s strategic priorities and Comprehensive Plan. • provide the community with 120 additional affordable housing units for 30 years at or below 60% AMI including: 19 units affordable to households at 30% AMI, 22 units affordable at 40% AMI, 21 units affordable at 50% AMI, and 58 units affordable to households at 60% AMI. • provide the community with affordable family-sized units including 24 affordable three- bedroom units, including three three-bedroom units affordable at 30% AMI. • provide the community with a new 6,600 square foot daycare with half the spaces reserved for affordable childcare. • facilitate $40.7 million of new investment in the city. • further the city’s sustainability goals by developing a building to Enterprise Green Community standards and providing a rooftop solar array capable of generating up to 20 kw. Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 11 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 • provide additional residential density near the Metro Greenline Extension (formerly SWLRT) Blake Avenue Station. • redevelop environmentally impacted property. • construct quality buildings (e.g., sound architectural design, quality construction and materials) with underground parking, public features, and sustainable elements. • provide evidence to the State of Minnesota Legislature regarding the benefits provided to affordable housing projects by utilizing pooled TIF funds to help fund the city’s Affordable Housing Trust Fund. CommonBond Communities’ proposed Rise on 7 development meets requirements of the city’s AHTF Policy for utilization of those funds. Providing this funding upfront and reimbursing the city’s AHTF from pooled TIF generated by a new housing TIF district, allows the project to move forward while also allowing the trust fund to be repaid sooner. The proposed development meets the minimum and desired qualifications, and the city’s objectives for the provision of Tax Increment Financing as specified in the city’s TIF Policy. The proposed amount of financial assistance is consistent with other developments the EDA has previously provided for other all- affordable housing developments. Recommendation: Staff supports approval of the proposed contract for private redevelopment with CommonBond Communities as outlined above to advance the Rise on 7 development. The attached resolution of approval allows for modifications to the contract that do not alter the substance of the transaction without bringing the contract back to the EDA for amendment. Next steps: Upon execution of the redevelopment contract, the Redeveloper plans to close on its project financing by July 8, 2022, and commence construction shortly thereafter. Previous/future actions Governing body Date Establishment of the Rise on 7 TIF District • TIF Housing District/TIF Plan Interfund loan for AHTF and Administrative costs EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7. EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7 and AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 12 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 EDA Resolution No. 22-_____ Resolution approving contract for private development and loans to CB SLP Housing Limited Partnership and taking other actions in connection therewith Be it resolved by the Board of Commissioners (the “Board”) of the St. Louis Park Economic Development Authority (the “Authority”) as follows: Section 1. Recitals. 1.01. Subject to approval by the City Council of the City of St. Louis Park, Minnesota (the “City’), the Authority and the City has approved the establishment of the Rise on 7 Tax Increment Financing District (the “TIF District”), a housing district within Redevelopment Project No. 1 (the “Project”), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. 1.02. The City Council of the City will consider a resolution approving the TIF District after a public hearing on the date hereof. 1.03. To facilitate the development of certain property within the Project and TIF District, the Authority, the City, and CB SLP Housing Limited Partnership, a Minnesota limited partnership (the “Developer”), have negotiated a Contract for Private Development (the “Agreement”) which provides for the construction by the Developer of an approximately 120- unit affordable rental housing facility, underground parking, and an early childcare center (the “Minimum Improvements”) on certain property legally described therein (the “Development Property”) and provides a deferred loan from the Authority in the principal amount of $1,800,000 (the “Deferred Loan”) to the Developer from proceeds of an interfund loan made from the City’s Affordable Housing Trust Fund to the Authority. 1.04. In order to assist with the costs of the Minimum Improvements, the Authority, on behalf of CommonBond Communities, a Minnesota nonprofit corporation (“CommonBond”), and the Developer, applied for and received a Livable Communities Demonstration Account (LCDA) grant in the amount $1,430,000 (the “LCDA Grant”) from the Metropolitan Council and an Environmental Response Grant in the amount of $251,695 (the “ERF Grant”) from the Hennepin County Environment and Energy Department. 1.05. The Metropolitan Council and the Authority entered into a Metropolitan Livable Communities Act Grant Agreement, providing for an award date of November 11, 2020 and an expiration date of December 31, 2023 (the “Grant Agreement”). Proceeds of the LCDA Grant may be used for eligible project components of the Minimum Improvements (the “Grant- Eligible Activities”) as described in the Grant Agreement. 1.06. The Authority intends to loan the proceeds of the LCDA Grant (the “LCDA Loan”) to the Developer to provide financing for the Grant-Eligible Activities. To that end, the Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 13 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 Authority and the Developer have negotiated a Loan Agreement (the “LCDA Loan Agreement”) between the Authority and the Developer. 1.07. The Authority and the Hennepin County Environment and Energy Department have entered into an Environmental Response Fund Grant Agreement (Contract No. PR000040200) describing the use of the proceeds of the ERF Grant. The Authority intends to disburse the proceeds of the ERF Grant to the Developer in accordance with the Agreement. 1.08. To allow the Developer to perform certain obligations under the Agreement, JLL Real Estate Capital, LLC, a Delaware limited liability company, in its capacity as lender, together with any other permitted co-lenders and their respective successors and/or permitted assigns (collectively, “Senior Lender”), has agreed to provide the Developer with financing by providing financing in the combined estimated principal amount of $20,576,600 (collectively, the “Senior Financing”). Section 2. Deferred Loan. 2.01. The Authority agrees to make the Deferred Loan to the Developer in accordance with the terms of Section 3.3 of the Agreement in the maximum principal amount of $1,800,000 in order to help finance the Minimum Improvements. 2.02. The Authority agrees to accept the Promissory Note and the Mortgage, in substantially the forms set forth in the Agreement, from the Developer, as well as the Guaranty, in substantially the form set forth in the Agreement, from CommonBond Communities, as security for the repayment of the Deferred Loan. Section 3. LCDA Loan. 3.01. The Authority agrees to make the LCDA Loan to the Developer in accordance with the terms of the LCDA Loan Agreement. 3.02. The LCDA Loan Agreement is hereby approved in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the LCDA Loan Agreement (the “LCDA Loan Documents”). The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the LCDA Loan Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The LCDA Loan Documents shall be in substantially the forms on file with the Authority and the approval hereby given to the LCDA Loan Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 14 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 accordance with the terms hereof. This resolution shall not constitute an offer and the LCDA Loan Documents shall not be effective until the date of execution thereof as provided herein. 3.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the LCDA Loan Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the LCDA Loan Documents. 3.04. The Authority agrees to accept the Note and the Combination Mortgage and Security Agreement, in substantially the forms on file with the Authority, from the Developer as security for the repayment of the LCDA Loan. Section 4. The Agreement and Senior Lender Documents. 4.01. Subject to approval of the TIF District and the Agreement by the City Council, the Board hereby approves the Agreement in substantially the form presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Agreement including without limitation the Assessment Agreement and the Declaration of Restrictive Covenants, (all as defined in the Agreement) (the “TIF Documents”). Such approval includes the Authority’s authorization of the disbursement of the ERF Grant in accordance with the Agreement. In addition, in order to provide the Senior Financing, the Senior Lender requires the execution and delivery by the Authority of the following documents, forms of which are on file with the Authority (the “Additional Lender Documents” and together with the TIF Documents, the “Development Documents”): (i) a Master Subordination Agreement and Estoppel Certificate between the Senior Lender, the Authority, and the Hennepin County Housing and Redevelopment Authority, pursuant to which the Authority agrees to subordinate its right to, title to, and interest in the Property and certain rights and the remedies and options of the Authority under the Contract to those of the Senior Lender and the Senior Financing; (ii) a Subordination Agreement between the Senior Lender, the Authority, and the Developer, pursuant to which the Authority agrees that the Developer’s obligations with respect to the Deferred Loan are subordinate to the Developer’s obligations with respect to the Senior Financing; (iii) a Subordination Agreement between the Senior Lender, the Authority, and the Developer, pursuant to which the Authority agrees that the Developer’s obligations with respect to the LCDA Loan are subordinate to the Developer’s obligations with respect to the Senior Financing; (iv) a Master Disbursement Agreement and Intercreditor Agreement Regarding Bonds between the Developer, the Senior Lender, U.S. Bank Trust Company, National Association, the Authority, the Hennepin County Housing and Redevelopment Authority, the Greater Minnesota Housing Fund, CommonBond Communities, CB SLP Housing GP LLC, and The North Dakota Guaranty and Title Co., as disbursing agent (the “Disbursing Agent”), relating to the disbursement of the proceeds of the Deferred Loan, the LCDA Loan, the Senior Financing, and the other loans provided by the Senior Lender, the Hennepin County Housing and Redevelopment Authority, the Greater Minnesota Housing Fund, CommonBond Communities, and CB SLP Housing GP LLC; and (v) an AHTF Deferred Loan Disbursement Agreement between the Authority, the Developer, and the Disbursing Agent Economic development authority meeting of June 6, 2022 (Item No. 6g) Page 15 Title: Contract for private redevelopment with CommonBond Communities – Rise on 7 – Ward 2 relating to the disbursement of the proceeds of the Deferred Loan. The Board hereby approves the Additional Lender Documents in substantially the forms presented to the Board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Additional Lender Documents. 4.02. The Board hereby authorizes the President and Executive Director, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the Authority, and to carry out, on behalf of the Authority, the Authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the forms on file with the Authority and the approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the Authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the Authority. The execution of any instrument by the appropriate officers of the Authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 4.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Development Documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the Board to implement the Development Documents. Section 5. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority June 6, 2022 Karen Barton, executive director Margaret Rog, president Attest: Melissa Kennedy, secretary Meeting: City council Meeting date: June 6, 2022 Presentation: 2a Executive summary Title: Proclamation honoring Karen Bjorgan and declaring “Karen Bjorgan Day” Recommended action: Mayor to read and present proclamation recognizing Karen Bjorgan Day Policy consideration: None Summary: Karen Bjorgan helped launch the Park Nicollet INSPIRE program, which provides support and education to stroke and brain injury survivors and their families. After 25 years of dedicated service to INSPIRE, Karen retired May 31, 2022. In recognition of her service to the St. Louis Park Community, to Park Nicollet and to countless stroke and brain injury survivors and their families, she is being honored and recognized by the community and city council with the declaration of June 6, 2022, as “Karen Bjorgan Day.” Financial or budget considerations: Not applicable Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Proclamation Prepared by: Jacque Smith, interim communications and technology director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 2a) Page 2 Title: Proclamation honoring Karen Bjorgan and declaring “Karen Bjorgan Day” Proclamation Declaring “Karen Bjorgan Day” Whereas, Karen Bjorgan, a 1976 graduate of St. Louis Park’s Benilde-St. Margaret’s High School and a former resident of St. Louis Park, helped to launch the INSPIRE Program 25 years ago at Park Nicollet Methodist Hospital; and Whereas, Karen has developed and run numerous INSPIRE support group programs and coordinated several educational opportunities and classes; and Whereas, Karen was part of the INSPIRE Program’s expansion to Regions Hospital and HealthPartners Neuroscience Center, both in St. Paul; and Whereas, since returning in July 2021 after a pause in services due to COVID, INSPIRE began offering virtual support groups, engaging stroke survivors with technology skills to assist other survivors in meeting virtually and accessing INSPIRE; and Whereas, as a survivor of two strokes herself, Karen has inspired the lives of countless stroke and brain injury survivors, as well as their families and caregivers in St. Louis Park and beyond; and Whereas, Karen has ensured that the INSPIRE Program is open to all, regardless of race, religion, social class or sexual orientation; and Whereas, INSPIRE supports the idea that it is the duty of survivors of stroke and brain injury to offer their recoveries as a model of hope and to support to those new to the journey; and Whereas, with this newfound purpose, stroke and brain injury survivors gain confidence, regain a belief in themselves and enter a new phase in their recoveries. Now therefore, let it be known that the Mayor and City Council of the City of St. Louis Park, Minnesota, recognize Karen Bjorgan and ask all to join us in declaring June 6, 2022, as “Karen Bjorgan Day.” Wherefore, I set my hand and cause the Great Seal of the City of St. Louis Park to be affixed this 6th day of June 2022. _________________________________ Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3a Unofficial minutes City council study session St. Louis Park, Minnesota March 28, 2022 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Nadia Mohamed, Margaret Rog Councilmembers absent: Lynette Dumalag, Larry Kraft Staff present: City Manager (Ms. Keller), Deputy City Manager/Director of Operations and Recreation (Ms. Walsh), Finance Director (Ms. Schmidt), City Assessor (Mr. Bultema), City Clerk (Ms. Kennedy), Commercial Appraiser (Ms. Nathanson), Interim Information Resources Director (Ms. Smith) Guests: 1. 2022 Market Value Overview Mr. Bultema presented the overview. Councilmember Rog state she was recently asked why the valuation in St. Louis Park is higher per square foot than in Wayzata and other areas. She asked if this is because St. Louis Park homes are smaller. Mr. Bultema stated yes, that is correct. He added the city’s location is also a factor, in that St. Louis Park is surrounded by higher valuation areas and provides close access to downtown, the highway system, and SWLRT. He noted the housing stock is also lower in a first ring suburb. Mr. Bultema reviewed the appeals process and noted the Local Board of Appeal and Equalization (LBAE) meeting will convene April 11, 2022. Councilmember Rog stated most appeals that come before the LBAE are not supported. She asked what the percentage or ratio is of those supported or denied. Mr. Bultema stated each appeal is a bit different. He stated the board is typically very fair and, as city assessor, if he disagrees with an adjustment the board makes, he can also appeal the decision to the county. He noted this has never occurred in his time with the city. He added the board is to make their decisions based on logic and the true market. Mayor Spano stated in the past people appeared in person, and asked if that is still the case, given COVID. Mr. Bultema stated it is ultimately up to the board, but he encouraged them to be flexible. He noted the 2nd LBAE meeting is scheduled for April 25. Councilmember Rog asked how TIF districts interact with valuation. Mr. Bultema explained the city sets the valuation and, depending on when the TIF district begins and ends, the base City council meeting of June 6, 2022 (Item No. 3a) Page 2 Title: Study session minutes of March 28, 2022 valuation is frozen. The increment of value change serves to reimburse the developers extraordinary expenses. Councilmember Rog asked how TIF plays into the city’s overall tax capacity. Mr. Bultema stated because the Minnesota property tax system is complicated and the information is often not available until later in the annual cycle, an exact answer is difficult to provide. He stated in the end, TIF has a purpose and is a policy decision council makes. He noted St. Louis Park is a great example of how TIF can work effectively, whereas in other cities, sometimes it does not work well. He noted TIF allows the developer to capture some of their expenses. In St. Louis Park many of the developer’s expenses are related to contamination, site clean-up, prep, and parking structures. Councilmember Rog asked if the developer is exempt from the county. Mr. Bultema clarified they are not exempt from the county, and it all goes into the overall tax capacity values the county does, but because of timing, it is difficult to explain the actual mechanics of it. He noted his concerns are most with values versus TIF. Ms. Nathanson spoke about commercial property values. Councilmember Rog asked about the class C apartment sales and if assessing staff work with community development around enforcement of the tenant protection ordinance. Ms. Nathanson stated that is likely covered in the point-of-sale inspection with the city, as well as the title company and their disclosure. Mr. Bultema stated assessing staff do not administer or enforce tenant protection ordinances. He added there have been no issues he is aware of, but if there was an issue, it would be addressed by community development staff. Mayor Spano asked about impacts on LGA and fiscal disparities. Ms. Schmitt stated the last LGA was in 2021. She stated it is not anticipated the city will get any LGA funding in 2023 for this, as it does not qualify, noting that this does not have anything to do with valuation. Mr. Bultema stated that the city is a net contributor to the fiscal disparities program as our commercial industrial stock has grown faster than the city’s peers. Mr. Bultema stated he would investigate this further. Councilmember Budd stated she is asked by residents if they will be gentrified out of their own homes. Mr. Bultema stated generally the city bases the value on data that just occurs. He added the city does everything possible to hold value over time, noting St. Louis Park held value much better than other areas because it is stable, but he cannot predict 10 years into the future. Councilmember Budd asked if there are things the city can do to cap an annual increase on values. Mr. Bultema stated the council controls the city budget, but not a state-wide property tax system, and it is up to the legislature to implement caps. Councilmember Budd asked if the value of properties could be assessed at the time of sale only. Mr. Bultema stated no because all values are assessed due to real estate market movement. City council meeting of June 6, 2022 (Item No. 3a) Page 3 Title: Study session minutes of March 28, 2022 2. Boards and commissions – structure, function, role, authority Ms. Kennedy presented the staff report. She stated the policy question is: 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. Councilmember Budd asked if there is specific ordinance for all board and commissions. Ms. Kennedy stated each advisory board and commission created by the city council has their own enacting ordinance. Several boards and commissions operate and exist under statutory authority. Councilmember Budd asked if this would involve looking only at the advisory boards and commissions created by the council. Ms. Kennedy stated no, this would be looking at the full complement of programming offered by the city. Councilmember Mohamed stated she likes the idea of a consultant and asked if this will be looking into how to make all commissions uniform in scope and more consistent. Ms. Kennedy stated that would be part of the analysis with recommendations as to how that does or does not meet city goals. She added they will not all be the same as they all serve different purposes but bringing some consistency in general to processes and how they interact with council will be helpful. Ms. Kennedy noted staff will develop an RFP, and funds are available in the budget to hire a consultant. Ms. Keller stated it is important to start with an understanding of what the council’s goals are for the boards and commissions so the consultant can evaluate how close the current structure, function, and role is to meeting those goals or if substantive changes need to be considered to achieve the goals. Councilmember Rog noted comments received from Councilmember Kraft on topics he would like to see in the consultant’s analysis including the workplan process, consideration of the appropriate structure for interaction and communication between the council and the commissions, finding opportunities for more people to be involved such as subgroups of each commission that could be open to anyone in the community. Councilmember Rog asked if this would involve code changes. Ms. Kennedy stated yes, even if no substantive changes are made staff would recommend housekeeping upates to the city code, the rules and procedures for boards and commissions, and the bylaws of each body to ensure that all are consistent and in alignment. Councilmember Rog stated she likes the idea of the work of boards and commissions being in alignment with the city’s strategic priorities. She discussed the messaging around the lens of REI, noting it will be important to ensure people do not feel that they are not valued. She stated she supports hiring a consultant to lead this process and trying to include applicants who were not appointed and former board and commission members in the stakeholder analysis. City council meeting of June 6, 2022 (Item No. 3a) Page 4 Title: Study session minutes of March 28, 2022 Councilmember Budd asked if the League of Cities or other networks that use best practices. Ms. Kennedy stated yes, there is a handbook on running meetings that can be reviewed, and also doing a peer review of other cities that have been successful with boards and commissions and how they have worked together over time, is another item the consultant can look at. Mayor Spano stated there are always many great ideas being implemented in other cities, and some are more successful than others. He stated he does not want to assume that anything is broken, and it is important the consultant know that a couple of commissions have asked for more direction and interaction with the council, not all. He added the council needs to focus on the bodies they appoint to do the work council delegates to them. He stated there needs to be a balance and a determination of what problems they are trying to solve by making changes. He noted he would like to have many involved in this process, and suggested that the consultant be very specific in the feedback they want from council. Councilmember Rog stated she is interested in council deepening engagement with the community through boards and commissions. She added the housing authority is frustrated and wants to engage more with council, noting they feel they should be an advisory body to the council. Ms. Kennedy stated members will have an opportunity to provide feedback to the consultant as a part of the stakeholder analysis. Communications/meeting check-in (verbal) Councilmember Rog stated the housing report is full of content and added it might be helpful to post it to the city website for others to review. Ms. Keller stated she will discuss with Ms. Barton. Mayor Spano asked about posting project timelines, information, and staff updates online. He stated these reports, which are great summaries, could be helpful for the public to review. Councilmember Rog stated there are 21 families on the waiting list for the Kids in the Park program, noting the program has been very successful and she hopes those on the list are being served. Councilmember Rog noted energy rebates that have income limits, adding this feels in conflict with the city’s strategic priorities and goals around energy efficiencies. Ms. Keller stated she will investigate this. Councilmember Mohamed stated Ramadan is coming up and she will need to take a break during the council meetings to eat and pray. Ms. Keller stated the council will break during the meetings, adding these breaks will be noted on the agenda and will be approximately 15 minutes long. The meeting adjourned at 8:42 p.m. 3. Application for TIF Assistance – Wooddale Avenue Apartments (Ward 2) 4. Unmanned aerial systems (UAS) for public safety use City council meeting of June 6, 2022 (Item No. 3a) Page 5 Title: Study session minutes of March 28, 2022 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 ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3b Unofficial minutes City council special study session St. Louis Park, Minnesota April 4, 2022 The meeting convened at 5:15 p.m. Councilmembers present: Mayor Pro Tem Tim Brausen, Sue Budd, Lynette Dumalag, Larry Kraft, Nadia Mohamed, Margaret Rog (arrived 5:30 p.m.) Councilmembers absent: Mayor Jake Spano Staff present: City Manager (Ms. Keller), City Attorney (Mr. Mattick), Interim Information Resources Director (Ms. Smith) 1. Legal compliance refresher Mr. Mattick noted items to be covered are open meeting law, data practices act, conflict of interest and gift law. Mayor Pro Tem Brausen asked about after meeting social gatherings and discussions about business taken at meetings, or actions taken by council years earlier. Mr. Mattick stated this is all considered city business and discussions are not allowed after the meetings in social gatherings, even after actions were taken years prior. He cautioned against this practice by councilmembers. Councilmember Budd asked about the scope of the open meeting law. Mr. Mattick stated the open meeting laws cover any municipality but do not cover state jurisdiction. He noted open meetings laws apply to video or conference call meetings as well. He stated violations of the open meeting law may involve fines. Mayor Pro Tem Brausen asked about emails from constituents. Mr. Mattick stated if the email is a communication from a constituent to a councilmember, or vice versa, it can be disclosed by either party. If the email is forwarded to city staff or another councilmember, then it becomes public. Councilmember Kraft asked about text messaging between councilmembers. Mr. Mattick stated his concern is if two councilmembers have a text conversation and then have another conversation with another councilmember and share the text. Councilmember Mohamed noted she has a city phone and a personal phone and keeps them separate. She asked what if she used her personal phone to text another councilmember. Mr. Mattick stated if it is not related to city business, then it is not a problem. If it is related to city business on her personal phone, it is subject to the data practices act. City council meeting of June 6, 2022 (Item No. 3b) Page 2 Title: Special study session minutes of April 4, 2022 Councilmember Mohamed asked about video meetings that are closed and how to handle that. Mr. Mattick stated if a meeting is closed for a reason allowed under state law, it needs to be done in private and should not be video recorded. Mr. Mattick discussed social media activity and stated general comments from councilmembers are fine for social media. He cautioned councilmembers, however, not to say anything about support or lack of support for projects on social media, and not prejudging projects on social media or via email. Mr. Mattick noted data practice laws say that all materials related to city business are public and members of the public are allowed to see anything and everything that is public data. Mr. Mattick discussed conflicts of interest and stated the conflict should be declared by councilmembers as soon as possible or as soon as it is known that a conflict exists. He stated the charter prohibits councilmembers from contracting with the city. Councilmember Rog asked about boards and commissions and noted the ESC has many commission members involved in sustainability in their everyday jobs. Mr. Mattick stated if a commission member worked for a solar company, and then wanted to sell solar to the city, that would be a conflict. It would also be a conflict if commissioners recommended products from their company to council. Mr. Mattick noted the gift policy and stated the charter is very strict on the gifts. He stated if a constituent wanted to take a councilmember out for a cup of coffee, he would prefer the councilmember pay for their own coffee. Councilmember Mohamed asked about accepting refreshments as a member of an elected group of women, outside of the council. Mr. Mattick stated there is not an issue with this. The meeting adjourned at 6:10 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Tim Brausen, mayor pro tem Meeting: City council Meeting date: June 6, 2022 Minutes: 3c Unofficial minutes City council study session St. Louis Park, Minnesota April 11, 2022 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Larry Kraft, and Margaret Rog. Councilmembers absent: Nadia Mohamed Staff present: City Manager (Ms. Keller), Interim Deputy City Manager/Director of Operations and Recreation (Ms. Walsh), Finance Director (Ms. Schmitt), Interim Information Resources Director (Ms. Smith), City Clerk (Ms. Kennedy) Guests: none Councilmember Kraft asked for a discussion related to boards and commissions interviews, noting he felt there had been a change of policy related to interviews and that all applicants who scored high enough should be interviewed, even those seeking reappointment. Mayor Spano asked what has been communicated to applicants. Ms. Kennedy stated candidates had not been notified yet because of the concerns raised by Councilmember Kraft. She continued applicants have been inquiring about their status and are awaiting an update on next steps. Ms. Kennedy stated multiple options were provided to council for candidate pools to interview for each commission. She reviewed the options selected by council. Mayor Spano asked if council wanted to discuss this tonight and or if they should hold this conversation with the consultant when the boards and commissions process is discussed at a later date. Councilmember Brausen stated he would prefer the conversation tonight. Councilmember Kraft stated the policy point he is raising is that all seeking reappointment would be interviewed. Councilmember Brausen agreed and indicated he would like to interview all as well. Mayor Spano stated he is fine with this but noted council must have clarity about the process. Councilmember Kraft agreed and added this should be a discussion point with the consultant as well. City council meeting of June 6, 2022 (Item No. 3c) Page 2 Title: Study session minutes of April 11, 2022 Ms. Kennedy stated status updates would be sent to applicants and interviews would be scheduled. Councilmember Brausen referenced the Dakota Avenue bikeway pilot project written report and noted from his reading of the report, it looks like the impressions of those interviewed perceived they had to slow down, that speeds were slower because of the bollards. He added there is a perception of safety, and people did slow down driving here. He noted anything we can do to slow down traffic is desirable and suggested discussion of this in the future at a study session. Councilmember Rog agreed with Councilmember Brausen and noted the detailed report. She stated she is still struggling with the word “prioritize” for walking and biking and mass transit over vehicles. She explained the reason staff is not recommending continuing is cost, and to her mind if this were truly a priority, it would mean shifting of funds, and how we plow streets, into projects that elevate biking and walking. She would support further discussion in a future study session. Mayor Spano stated he would like to have more discussion on this topic also. Councilmember Kraft noted he agrees this is part of the broader discussion. He stated he is interested in the parking concerns, and noted it was effective at improving speeds, while 61% felt comfort while biking. He stated if the city is looking at how to elevate cycling and pedestrians, the city’s street maintenance approach, rightly so, is optimized for car-centric infrastructure. He stated whenever the city looks at something different from that, the natural result will be an increased cost. He added it may be that to do this right, we will need to re- think our approach and be transformational. He also would like to talk more about this. Councilmember Dumalag agreed and thanked staff for the report, saying it warrants further study. She would like to look at investment and how this would be treated as any other infrastructure project. Mayor Spano noted the written report on Rise on 7 Development and pointed out the council received a request for a letter of support for congressionally directed funding. He stated he wanted to be transparent to the public on this. Councilmember Budd asked if this funding comes through, would it affect this project. Ms. Keller stated if there were funding changes to the project, Ehlers would be involved in the pro forma. Councilmember Brausen asked if this request will come forward for the TIF as an action item and if questions can be asked this evening. Ms. Keller stated there is a tentative public hearing scheduled for June 6 on the TIF district related to this project. Communications/meeting check-in (verbal) Councilmember Rog stated there is meeting tomorrow night at City Hall regarding public workspaces at the Wooddale Station, at 7 p.m., and encouraged residents to attend. City council meeting of June 6, 2022 (Item No. 3c) Page 3 Title: Study session minutes of April 11, 2022 Councilmember Budd stated April 28 is the Walker Lake pop-up event. She added it is to get folks into the streets and Sota Clothing, The Block, and Muddy Paws Cheesecake will be hosting the event. Councilmember Rog noted an open house on Tues., April 26, for Minnetonka Boulevard redesign that will take place at city hall from 4-7 p.m. and public input is requested. Councilmember Rog noted the Minnehaha Creek clean-up event on Sat., April 23, at Knollwood canoe landing with more information on the city website. Councilmember Brausen noted there is an Easter egg hunt on Sat., April 23, at the Nature Center, with more details on the city website. The meeting adjourned at 6:50 p.m. 1. Dakota Avenue Bikeway pilot project 2. Bridgewalk Housing Improvement Area (HIA) update 3. Application for AHTF assistance – Rise on 7 Development ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3d Unofficial minutes City council meeting St. Louis Park, Minnesota April 18, 2022 1. Call to order Mayor Spano called the meeting to order at 6:30 p.m. 1a. Pledge of allegiance 1b. Roll call Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Larry Kraft, Nadia Mohamed, and Margaret Rog Councilmembers absent: Lynette Dumalag Staff present: City Manager (Ms. Keller), City Attorney (Mr. Mattick), Finance Director (Ms. Schmitt), Human Resources Manager (Ms. Timpone), Water Resources Manager (Mr. Francis), Interim Information Resources Director (Ms. Smith) Guests: Scout Troop #282 2. Presentations 2a. Bike month proclamation Mayor Spano read the proclamation in full. 2b. Annual Stormwater Pollution Prevention Program report Mr. Francis presented the report. Councilmember Brausen referenced the comprehensive report, pointing out the storm water management data. He thanked staff for their efforts. Councilmember Kraft asked about the resilient cities group. Mr. Francis noted Ms. Ziring is on one of the subgroups and he would be glad to share more information. Councilmember Kraft commented on a very wet summer and flooding, which happened in the city two years ago, noting this will continue into the future. He asked about stormwater management in light of this and how that is built into this work. Mr. Francis stated the city uses predictive models related to flooding, adding they record data to help calibrate models. He added they also work with FEMA’s community rating system to do outreach and mapping. City council meeting of June 6, 2022 (Item No. 3d) Page 2 Title: City council meeting minutes of April 18, 2022 Councilmember Kraft stated he received an email from a resident recently and there is good public engagement on this issue. He noted there were, however, concerns that planned projects were not available to evaluate during a recent meeting and asked if this is the public forum meeting. Mr. Francis stated that information is made available as soon as possible, noting several projects that are upcoming. Councilmember Kraft asked that going forward information on projects be provided to residents at the public meeting forums. Councilmember Rog commented on heavy precipitation events, the localized public flood screening tool, and overlaying that with a FEMA map. She asked if the city uses this tool as well. Mr. Francis stated staff is aware of this tool but noted the city has its own specific model based on sewer and historical data, which is a level above. He noted it outlines 10–100-year flooding events. He added the city has a lot of survey equipment to manage storm water. Councilmember Brausen noted back in 2015, city staff was working on flooding and stormwater management issues. He pointed out this is not new information, it is years of long work that staff has done, and they have done a good job on it. 2c. 2022 National Small Business Week proclamation Mayor Spano read the proclamation. He thanked the small businesses within the city the past two years and noted much of the city’s CARES funds went to small businesses during the pandemic. 2d. Mental Health Awareness Month proclamation Mayor Spano read the proclamation. He noted a meeting of mayors throughout the state which dealt specifically with this issue and mental health needs, and stated this proclamation is noteworthy. Councilmember Brausen stated the city will honor mental health awareness month by lighting the Louisiana Bridge Green, and on May 24, 2022, a mental health panel will be hosted by the city police department, noting more information is on the city website. 2e. Proclamation recognizing the 75th anniversary of St. Louis Park Rotary Club Mayor Spano read the proclamation. Councilmember Brausen noted an event on April 28, 2022, at the West End and that there is more information on the city website, with all proceeds going to the city’s emergency fund. 2f. Recognition of donations Mayor Spano acknowledged a donation from McDonalds of 150 burgers made to the fire and police departments. City council meeting of June 6, 2022 (Item No. 3d) Page 3 Title: City council meeting minutes of April 18, 2022 3. Approval of minutes - none 4. Approval of agenda and items on consent calendar 4a. •Motion to approve second reading and adopt Ordinance No. 2644-22 vacating a roadway easement located between Highway 100 and Wooddale Avenue and approve the summary ordinance for publication. (Requires 5 affirmative votes) • Motion to approve second reading and adopt Ordinance No. 2645-22 adding section 36-268-PUD 23 to the zoning code and amending zoning map from R3 – two-family residential to PUD 23 and approve the summary ordinance for publication. (Requires 5 affirmative votes) 4b. •Motion to approve second reading and adopt Ordinance No. 2646-22 vacating various highway easements on the southeast corner of CSAH 25 and Beltline Boulevard and approve the Summary Ordinance for publication (Requires 5 affirmative votes); •Motion to approve second reading and adopt Ordinance No. 2647-22 vacating various street easements on the southeast corner of CSAH 25 and Beltline Boulevard and approve the Summary Ordinance for publication (Requires 5 affirmative votes); • Motion to approve second reading and adopt Ordinance No. 2648-22 vacating various alley easements on the southeast corner of CSAH 25 and Beltline Boulevard and approve the Summary Ordinance for publication (Requires 5 affirmative votes); • Motion to approve second reading and adopt Ordinance No. 2649-22 vacating various easements on the southeast corner of CSAH 25 and Beltline Boulevard and approve the Summary Ordinance for publication (Requires 5 affirmative votes); 4c. Approve second reading and adopt Ordinance 2650-22 adding section 36-268- PUD 22 to the zoning code and amending the zoning map from IG – General Industrial to PUD 22 and approve the Summary Ordinance for publication (requires 5 affirmative votes). 4d. Designate G.L. Contracting, Inc. the lowest responsible bidder and authorize execution of a contract with the firm in the amount of $668,896.50 for the Alley Reconstruction Project No. 4022-1500. 4e. Adopt Resolution No. 22-058 approving the Criminal Justice Data Communications Network joint powers agreement and court services subscriber amendment with the State of Minnesota. 4f. Adopt Resolution No. 22-059 approving the Human Trafficking Investigators Task Force joint powers agreement. 4g. Adopt Resolution No. 22-060 approving cancellation of special assessments -7413 Franklin Ave W, St. Louis Park 55426. 4h. Approve US Internet (USI) lease of 3301 Gorham Avenue. 4i. Adopt Resolution No. 22-061 authorizing the special assessment for the repair of the sewer service line at 2909 Dakota Avenue South, St. Louis Park, MN, P.I.D. 09- 117-21-33-0209. 4j. Adopt Resolution No. 22-062 authorizing the special assessment for the repair of the sewer service line at 1811 Jersey Avenue South, St. Louis Park, MN, P.I.D. 05- 117-21-43-0058. City council meeting of June 6, 2022 (Item No. 3d) Page 4 Title: City council meeting minutes of April 18, 2022 4k. Adopt Resolution No. 22-063 accepting donation to the fire and police departments. 4l. Adopt resolution approving labor agreement between the city and the fire bargaining group, establishing terms and conditions of employment for two years, from Jan. 1, 2022 – Dec. 31, 2023. (This item was removed from the consent calendar and considered as regular agenda item 8a) 4m. Adopt Resolution No. 22-064 establishing a special assessment for the installation of a fire suppression sprinkler system at 4906 35th St. W, St. Louis Park, MN. 4n. Adopt Resolution No. 22-065 appointing Kim Keller, city manager, as director, and Jacque Smith, interim information resources director, as alternate director, to the board of directors for the Local Government Information System (LOGIS). 4o. Adopt Resolution No. 22-066 providing approval for the issuance of refunding bonds originally used to finance the Louisiana Court project. 4p. Approve for filing parks & recreation advisory commission minutes of Oct. 6, 2021. 4q. Approve for filing parks & recreation advisory commission minutes of Dec. 8, 2021. 4r. Approve for filing parks & recreation advisory commission minutes of Feb. 16, 2022. 4s. Approve for filing planning commission minutes of March 16, 2022. 4t. Approve for filing planning commission minutes of March 23, 2022. Mayor Spano requested that consent calendar item 4l be removed and placed on the Regular Agenda to 8a. It was moved by Councilmember Brausen, seconded by Councilmember Rog, to approve the agenda and items listed on the consent calendar as amended to move consent calendar item 4l to the regular agenda as item 8a; and to waive reading of all resolutions and ordinances. The motion passed 6-0 (Councilmember Dumalag absent). 5. Boards and commissions - none 6. Public hearings 6a. Resolution No. 22-067 approving the reissuance of the revenue note issued for the benefit of Breck School Ms. Schmitt presented the staff report. Mayor Spano opened the public hearing. No speakers were present. Mayor Spano closed the public hearing. It was moved by Councilmember Brausen, seconded by Councilmember Budd, to adopt Resolution No. 22-067 approving the reissuance of revenue note issued for the benefit of Breck School. City council meeting of June 6, 2022 (Item No. 3d) Page 5 Title: City council meeting minutes of April 18, 2022 The motion passed 6-0 (Councilmember Dumalag absent). 7. Requests, petitions, and communications from the public - none 8. Resolutions, ordinances, motions and discussion items 8a. Resolution No. 22-068 approving labor agreement between the city and the fire bargaining group, establishing terms and conditions of employment for two years, from Jan. 1, 2022 – Dec. 31, 2023 Ms. Timpone presented the report. Mayor Spano acknowledged the equity statement is within the agreement. He noted several years ago there was a wage analysis completed on staff and the largest cost for the city does go to employees. Mayor Spano asked if 3% is typical with what other cities approve. Ms. Timpone stated yes, and the city also wants to stay competitive within the market as well, so as not to fall behind on wages. It was moved by Councilmember Brausen, seconded by Councilmember Mohamed, to adopt Resolution No. 22-068 approving labor agreement between the city and the fire bargaining group, establishing terms and conditions of employment for two years, from Jan. 1, 2022 – Dec. 31, 2023. The motion passed 6-0 (Councilmember Dumalag absent). 9. Communications Ms. Keller noted there is a catalytic converter event on April 28, 2022, with registration beginning on April 20, 2022, and more information is on the city website. Ms. Keller noted May 15, 2022, is the state of the community event at Dakota Bridge. Councilmember Rog noted on April 26, 2022, the Minnetonka Boulevard redesign meeting will be held to look at the two final proposed designs and provide input. She added there will also be an opportunity to provide input on the Beltline Station development related to businesses and what the community would like to see. Also, on April 28, 2022, there is an event to celebrate the Walker Historic District from 4-7 p.m. Councilmember Kraft noted on May 15, 2022, there is an Arbor Day celebration at Keystone Park where tree plantings will be completed. Mayor Spano noted he wanted to point out that last week was the culmination of three faith events on the same weekend, which included Ramadan, Passover, and Easter. 10. Adjournment City council meeting of June 6, 2022 (Item No. 3d) Page 6 Title: City council meeting minutes of April 18, 2022 The meeting adjourned at 7:10 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3e Unofficial minutes City council special study session St. Louis Park, Minnesota Apr. 18, 2022 The meeting convened at 5:15 p.m. Councilmembers present: Mayor Jake Spano (arrived 5:40 p.m.), Tim Brausen, Sue Budd, Larry Kraft, Nadia Mohamed (arrived 5:30 p.m.), and Margaret Rog Councilmembers absent: Lynette Dumalag Staff present: City Manager (Ms. Keller), Interim Information Resources Director (Ms. Smith), Elections Specialist (Mr. Sund), City Clerk (Ms. Kennedy) 1. Driving civic engagement and participation Mr. Sund presented the report. Councilmember Mohamed stated she is in support of the program. She stated when we talk about civic engagement, councilmembers are not engaging with residents, in terms of getting them to attend meetings. She recognized civic engagement was made more difficult during the pandemic because some communities do not do well with virtual meetings. She noted in the past, the city used to do events and updates in person with various groups, which would help engagement. She asked if staff could go back to this in the future, along with finding those that want to participate, in order to build relationships. She stated it is important to be intentional with engagement approaches. Councilmember Mohamed stated racial equity staff was heavily involved and she served on the multi-cultural advisory committee where she called people and invited them to events and the process was heavily reliant on personal relationships. She added it was customized communication to community groups, and police were invited if appropriate. She added she would like to see this type of intentional outreach done. Mr. Sund stated this is a relational model that has intersection with and works to invite different groups. Ms. Kenndy added the pandemic really impacted this effort and interrupted the relational component. She noted staff recognizes the limitations of electronic meetings and they are working on ways to be more intentional to reach specific communities and rebuild relationships. Councilmember Budd asked in the research part of the 3 elements, will it look at those most underrepresented not only racially, but with seniors and faith-based groups, renters versus homeowners along with parents versus non-parents. Ms. Kennedy stated staff is also looking at how this can be applied to define target audiences and identify ways to build relationships. Councilmember Kraft stated he liked the idea of thinking about target markets. He asked what a functioning pathway looks like. Mr. Sund stated one way to look at this is how one’s particular City council meeting of June 6, 2022 (Item No. 3e) Page 2 Title: Special study session minutes of April 18, 2022 pathway works for them. He added when thinking about pathways, whenever a person enters the “front door” that is an opportunity for engagement. He noted a great example of that is in schools and how there is a greater opportunity for additional engagement in other civic areas if the initial opportunity is captured. He added there are many different opportunities for people to engage in the community and get involved, not every pathway needs to end in formal leadership. Councilmember Kraft asked if there would be measurement along the way as pathways are looked at. Mr. Sund stated quantitative information can be looked at, but what is important to him is if one person felt engaged and participated. The qualitative aspect is difficult to measure. Councilmember Kraft stated he likes the qualitative piece but prefers the quantitative piece. He asked what happens to folks who are not picked for boards or commissions. Ms. Kennedy stated they are encouraged to stay involved and look for additional opportunities to participate in activities or work they are passionate about. She noted serving on a board or commission is a more formal opportunity for engagement. There may be opportunities to leverage this interest at the outset and provide more informal opportunities, so more people can be involved at one time. This could help expand networks and engage folks at the same time. So, it will be less about spots to fill on boards and commissions and more about pathways to expand the network overall. Councilmember Kraft stated he is supportive of the work on pathways but noted there are some metrics to track. He added there might be other things residents can do to engage, and the moment someone does that and this is captured, it is a pathway. Councilmember Rog noted when councilmembers are leaving their position, they usually do some outreach in working to find a potential candidate to fill their position. She suggested there could be collaboration around this, with resources or a strategic way to blend efforts to be more effective. Mr. Sund stated before the pandemic staff did host an event for prospective candidates that included an opportunity to talk with former councilmembers, and it was successful. Mr. Kennedy stated staff sees themselves as a resource; there is more brainstorming that can be done around it, but staff cannot be involved in the recruitment of candidates. Councilmember Rog stated she was interested in exploring public financing for campaigns, possibly through a match program, noting this could be an opportunity. She added ad hoc committees can also be helpful and this should be done as much as possible in neighborhoods versus at city hall. Councilmember Rog stated recently she called several residents and invited them to attend a meeting at city hall and they were not planning to attend until she asked. Ms. Kennedy stated this is a perfect example of how engagement can work and the impact of being invited to participate by a trusted person. She noted a lot of this is about building the network, so the reach of the city expands beyond staff. Councilmember Rog stated another way to engage with residents is when new neighbors move into a neighborhood. Mr. Sund stated the city has a welcome packet for new residents that City council meeting of June 6, 2022 (Item No. 3e) Page 3 Title: Special study session minutes of April 18, 2022 includes information and resources. Councilmember Rog stated this is helpful, but also reaching out to those who want to be more engaged would be best and letting them know who they can contact at the city. Councilmember Rog added folks who are objecting to an issue have recently created petitions. She noted she has explained to folks that for various issues, petitions are not appropriate, noting there is some confusion in the community about when to petition and when not to. She stated the city does require petitions for something like stop signs, or for becoming a candidate for city office. However, at other times, they are not the best way to communicate and it can have an opposite effect of disempowerment. Ms. Kennedy stated it may be helpful to create simple resources that focus on how the city functions, how the council makes decisions, and opportunities for people to engage with council, to make participation less intimidating. Councilmember Brausen stated he is supportive of these efforts and noted the pathways are important. He asked if there was a volunteer coordinator on staff and could they help find those who want to serve in the community. He stated the relational model, and the relationships are important in getting more involvement and leveraging those relationships. He added we do have to identify those that have important relationships with community groups and then help them develop those more intentionally. He stated there may need to be some training for front line staff to help folks engage more. Councilmember Brausen noted understanding the public better is a priority for council and then setting realistic expectations for the public’s role in their decision making. Mayor Spano stated staff should be proud of this work and he is excited about the opportunities this presents. He added this provides more work looking externally versus internally and it represents a shift in strategy. He noted there was a lot of effort from staff on this work and he hopes they are not overwhelmed. He understands moving in this direction and agreed this will intentionally be embedded in staff work. Mayor Spano asked about a civics academy. Ms. Smith stated this is something that was planned pre-covid and as soon as it is safe to do so, it will be reintroduced. Mayor Spano stated this will be a good place for the council to become involved as well. Mayor Spano asked about someone staffing this work and encouraged that this does not only look at city government, but also looks at what some of the non-profits that support the community need, as well as the school district. Ms. Keller stated this discussion has created some pillars of civic engagement. She added this is everyone’s work and everyone has a role in it. She noted resources will be looked at as well as how success is defined. Additionally, qualitative and quantitative metrics will be considered, noting the quantitative will not be causation measures of something that is not working well. Councilmember Kraft stated he likes the ideas of pathways and involving other organizations as well. City council meeting of June 6, 2022 (Item No. 3e) Page 4 Title: Special study session minutes of April 18, 2022 Councilmember Rog stated there is list of volunteer opportunities on the city website. Communications/meeting check-in (verbal) The meeting adjourned at 6:16 p.m. 2. Business terms – purchase and redevelopment contract with Sherman Associates (Ward 1). ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3f Unofficial minutes City council study session St. Louis Park, Minnesota April 25, 2022 The meeting convened at 5:45 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Larry Kraft, Nadia Mohamed, and Margaret Rog Councilmembers absent: none Staff present: Interim Deputy City Manager (Ms. Walsh), City Clerk (Ms. Kennedy), Interim Information Resources Director (Ms. Smith) 1. Board and commissions – considering new commissions Ms. Kennedy presented the report. The council agreed with the approach taken by staff on boards and commissions. Councilmember Rog stated having a youth voice is very important and she hopes the consultant will have recommendations about this. Councilmember Budd asked about youth terms. Ms. Kennedy stated the term is for one year, beginning in August so it somewhat coincides with their school year. Councilmember Kraft stated he is supportive and would also want the consultant to look into Northfield and Eden Prairie, which have more formally structured commissions that are integrated with the schools. He noted typically they will have 2-5 youth on their commissions. He added with a youth advisory commission, he would like the consultant to engage with young people on this. He noted in Goshen, Indiana, youth are even participants on the city council. He stated he is not sure which structure works best, but added this plan makes sense. Mayor Spano referenced the Northfield youth commissions and stated he has heard their program is successful as well. Councilmember Rog added years ago there was some lobbying for a senior commission also. Ms. Kennedy stated this can be brought up during the stakeholder analysis. Councilmember Mohamed added she agrees and looks forward to hearing from the consultant as to what the barriers are to youth participation and the solutions. Councilmember Kraft stated the transportation commission should possibly be called the active transportation commission or the mobility transportation commission. Mayor Spano agreed and noted it should be more inclusive than just roads. City council meeting of June 6, 2022 (Item No. 3f) Page 2 Title: Study session minutes of April 25, 2022 2. Proposed study session agenda topic Mayor Spano noted the report on tree canopy percentage goal. Councilmember Brausen stated the report is very thorough. Mayor Spano asked about the staff response, and the recommendation of a study session. Ms. Walsh stated this is a case where the strategic initiatives are not mutually exclusive. She stated the tree canopy idea is great and staff is on board but can limit solar array options. She noted another concern about planting many small trees, is that it doesn’t really gain much ground as the city has trouble maintaining and watering them. She added we incent folks to take care of their boulevard trees, but that’s been a struggle, when some adopt the tree and take care of it, and some don’t. She added this can be a challenge, so it’s better to plant fewer more mature trees that will survive versus a lot of small trees that will not survive. Ms. Kennedy stated a discussion is probably warranted with council to consider establishing a goal, but more work is needed by staff to get a better understanding of the current conditions. Councilmember Brausen added he would like to discuss a legacy tree ordinance, noting it’s sad to see a large healthy tree taken down off a property, because someone is worried it will fall on their house. Councilmember Kraft stated he likes taking the holistic view on this and noted the tree replacement policy needs to be reviewed. He added development around light rail stations will also take away some trees. He noted we are losing 400 trees a year to emerald ash borer, and all city activity on trees needs to be reviewed. Councilmember Dumalag noted a few neighbors have been asking about the city’s tree policy and related to city development. She agreed a tree inventory is what should be done first. Councilmember Kraft stated when looking at full climate mitigation of trees and the shade they provide, they are a tremendous benefit of energy savings, health, along with cleaner air. Councilmember Rog added trees are helpful and beneficial for mental health issues as well. Communications/meeting check-in (verbal) Councilmember Rog reminded folks of the open house from 4-7 p.m. related to Minnetonka Boulevard on Tues., April 26, at city hall. Mayor Spano asked about two written reports noted below. Mayor Spano stated he is fine with the budget process and noted it is similar to what’s been done in the past. He added a discussion on debt-free financing would also be helpful and wanted to be sure it was included in the timeline provided. Ms. Walsh stated it was included in the planned budget discussions. City council meeting of June 6, 2022 (Item No. 3f) Page 3 Title: Study session minutes of April 25, 2022 Mayor Spano referenced the draft sidewalk policy framework report and stated this feels like a big enough issue that it should be a discussion by council. He asked if this would be applied to connect the park projects as well and if staff wants to use this as a pilot that’s fine. Ms. Kennedy stated this will be a discussion in the next system on connected infrastructure. Councilmember Rog noted she is supportive of this pilot project and added if this is ultimately put into policy, it will be helpful as to size of sidewalks and if they are city maintained or not. Councilmember Kraft stated there should be something uniform and it should be done with thoughtful implementation. Councilmember Rog asked about the written report on ARPA funding and how it will be decided if external partner requests for funding will be included. Ms. Walsh stated if council decides on this and wants to discuss policy, it can be reviewed when the budget comes forward. Mayor Spano would like a discussion on the process but noted if funding external entities there needs to be a transparent process. Councilmember Brausen commented on the needed funding for STEP and construction beginning this summer. He stated there should be a council decision on this within the next 6-8 weeks. Councilmember Mohamed added she likes the idea of discussion of the process before making decisions. Councilmember Dumalag agreed and noted council will need to be fair with all organizations, adding she has some concern about accelerating this without a process in place. The meeting adjourned at 6:30 p.m. 3. March 2022 monthly financial report 4. First quarter investment report ( Jan – Mar 2022) 5. Quarterly development update – 2nd Quarter 2022 6. 2023 Budget process and ARPA funding overview 7. Business terms for contract for private redevelopment with Real Estate Equities 8. Draft sidewalk policy framework ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3g Unofficial minutes City council study session St. Louis Park, Minnesota May 9, 2022 The meeting convened at 8:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Larry Kraft, Nadia Mohamed, and Margaret Rog. Councilmembers absent: none. Staff present: City Manager (Ms. Keller), Interim Deputy City Manager (Ms. Walsh), City Attorney (Mr. Mattick), Interim Information Resources Director (Ms. Smith), City Clerk (Ms. Kennedy) Guests: none 1. Council rules & procedures – discussion Ms. Kennedy presented the topic of discussion. Meeting minutes Councilmember Brausen stated he is comfortable with the current level of detail in the minutes, noting they are not meant to be verbatim. He stated more detail is available by watching the video recordings. Councilmember Rog agreed and noted staff often goes back to look at minutes as a historical record adding that can be useful in terms of context. She supports keeping the current system in place. Ms. Kennedy stated staff does refer to minutes when researching past policy decisions. She noted the level of detail provided in historical minutes varies. She added ultimately the minutes reflect the council as a body, so staff is looking for direction on the preferred level of detail. Councilmember Kraft noted there was a comment he made about speed limits, and staff did review the meeting minutes for context. He asked if there is a problem with the current approach. Ms. Keller stated any changes to minutes approved by council are incorporated by staff after the meeting, which does take time. She noted it does, at times, seem that councilmembers want the minutes to be more verbatim than not. This has been a question raised in the past by several members. Again, however, this is a decision that is made by council. City council meeting of June 6, 2022 (Item No. 3g) Page 2 Title: Study session minutes of May 9, 2022 Mayor Spano stated he typically does not make changes to the minutes. He noted substantive changes do need to be made when appropriate, particularly if something is not accurately reflected. At other times there appear to be changes that are not substantive. Councilmember Rog stated she agrees wordsmithing is not a good use of anyone’s time and noted if we are going to have minutes, they should be as accurate as possible. Ms. Kennedy agreed that accuracy is extremely important. The question is not one of accuracy, it is setting an expectation on if the council wants the minutes to be verbatim or if they want the minutes to capture the discussion and action taken by the council, but not be a word for word recitation. Councilmember Mohamed stated since meetings are recorded and broadcast there is no need for the minutes to be verbatim and she is fine with the flow of the conversation as minutes. Ms. Kennedy clarified that the official record of council meetings is the written minutes. Video recordings of meetings are only required to be kept for 3 months after the minutes are approved. She noted the city keeps the recordings for 6 months. A video is not a viable permanent record as every time technology changes the city would be responsible for ensuring the video remains accessible. Councilmember Kraft stated he proposes changes only if they are substantive. He stated he has never seen a councilmember make changes because they wished they had said something different. He stated he likes the current level of detail in the minutes, which has been useful, but is not in favor of going to a transcript as it is not necessary. Councilmember Dumalag noted she typically doesn’t make many changes and is in favor of capturing the spirit of the discussion and the action taken in the meeting minutes. She is not in favor of going to a transcript. Councilmember Budd stated she defers to the other councilmembers preferences. Councilmember Mohamed stated she would like some balance around this and that all will agree to hold themselves accountable to the minutes reflecting the spirit of the discussion and the action taken. Councilmember Rog asked if staff prefers to have changes to the minutes from council prior to the meeting. Ms. Kennedy stated yes, that is helpful. Mayor Spano stated he is not a fan of the minutes as they are written. He stated the council treats them as a transcript, but then do not want a transcript. He stated he would like to know how much a transcription service costs. He reiterated substantive changes are fine, especially if there is an error in the minutes, however he has heard councilmembers read full paragraphs into the record and he does not think the recording secretary missed that much or reflected the entire statement in error. City council meeting of June 6, 2022 (Item No. 3g) Page 3 Title: Study session minutes of May 9, 2022 Councilmember Rog noted her larger changes to the minutes are when something she said is highly complex, and it’s not necessarily summarized correctly, and therefore changes the meaning of her comments. Ms. Kennedy stated the current rules of procedure do not currently reflect how the minutes are approved and staff proposes updating to reflect current practice. She noted the minutes should be approved by a vote of the council, whether there are changes or not. Order of business at regular meetings Ms. Kennedy stated council has suggested that approval of the agenda and consent calendar be combined into one item. Staff supports the proposed change. Councilmember Kraft asked about moving items off the consent agenda and procedures moving forward. Ms. Kennedy stated the council can comment on an item on the consent agenda without removing it and placing it on the regular agenda. If a separate vote is needed or requested for an item on the consent agenda, the item should be removed and placed on the regular agenda. EDA agenda Ms. Kennedy explained a few housekeeping changes are suggested to the EDA bylaws, so the order of business reflects current practice and is more consistent with the order of business for council meetings. This would be a separate item brought back to the EDA for approval. Public comment at council meetings Ms. Kennedy stated this was a council-requested study session topic. Currently, the rules of procedure allow for anyone to speak to an item that is on the agenda. Additionally, the order of business reflected in the rules of procedure has space for requests and communications from the public, however all procedures for placement of items on the agenda still apply and require coordination prior to the meeting. If the council is interested in implementing a public comment period, staff would suggest additional research and development of a recommendation for future council consideration. Councilmember Brausen stated he is opposed to the “open mic” option for the public as it is subject to abuse by an individual. He stated there are significant opportunities already for the public to comment, and they can also submit items directly to councilmembers to bring them forward, through staff. He also noted public comment should be kept to 3 minutes, however, noted the rules state 10 minutes. Ms. Kennedy stated the inconsistency will be corrected when the rules of procedure are updated. Councilmember Kraft asked if the public wants to speak about something and request it in advance, it can be added to the agenda. Ms. Kennedy stated that was correct, it must be added to the agenda. She noted when this happens staff works to see if the item can be addressed in conjunction with something that is already scheduled to be on an agenda or if it can be handled directly by staff, or staff will assist with placing the item on the agenda. City council meeting of June 6, 2022 (Item No. 3g) Page 4 Title: Study session minutes of May 9, 2022 Mayor Spano asked what the issue is they are trying to address. Councilmember Kraft stated when he was not on council, he found that St. Louis Park had a more involved procedure on how to speak at council meetings, compared to other cities. He also noted it was not easy to figure out and there was no clear process. He would like to see it be clearer and easier for the public to be able to speak to council and get items on the agenda. Councilmember Rog agreed and noted it can be difficult to explain how people can address the council on items that may not be on the agenda but that are important for council to know. Ms. Kennedy stated staff has discussed developing tools to help the public better understand council processes and opportunities for public participation. Simple, clear resources that make it the process more transparent and easier to understand. Councilmember Rog asked if the council has an obligation to allow those voices to be heard. Mr. Mattick pointed out there is no public comment section on the agenda, but anyone can comment on something that is on the agenda. Ms. Kennedy reiterated if council wants to explore this further, staff will look at how other communities handle this and come back with a proposal. Councilmember Brausen stated while he doesn’t approve of public comment during council meetings, he does hear from constituents and directs them to staff, and items can then be added to the agenda. He stated this is the nature of a representative democracy. Councilmember Kraft added he recommended to students in the past to not speak to councilmembers first and that speaking at the meeting would be a better approach in order to gain more exposure. Councilmember Dumalag had a business owner ask about speaking at a meeting related to restrictive parking, and there is a process already in place, so she directed them to staff to follow the process. Councilmember Mohamed added she does not approve of an “open mic” style, where council is not aware of the topic or unprepared. She likes the idea of constituents speaking to councilmembers or staff and then finding a way to put their topic on the agenda, so the council is not caught off guard. Mayor Spano stated this can be a double-edged sword, noting that 3 minutes is too short of a time for public comments. He noted referring people to staff can be educational for them, especially if they find out the city is already addressing their issue. He likes the idea of the community coming into a meeting to express their thoughts but would want to rely on staff as it relates to the agenda. He would like to talk to other cities about what they do and allow for participation without barriers. He added the council needs to think about their goals. City council meeting of June 6, 2022 (Item No. 3g) Page 5 Title: Study session minutes of May 9, 2022 Councilmember Budd asked for clarification on public hearings versus public comments at the meeting. Ms. Kennedy explained a public hearing is something is required by statute for specific action items and there are associated public notice requirements. Public comment involves anyone being able to comment on an item that is on the agenda. The question is if council wants to explore creating space for people to be able to speak to the council about any topic, even if it is not on the agenda. Councilmember Kraft stated he agreed with developing a way to make it clearer to the public how to get items on the agenda. He stated restricting comments to 3 minutes is doable and he would like to review the city having an “open mic” at council meetings, erring on the side of more transparency and allowing for public comment at each meeting. He would like to see staff research this further. Mayor Spano stated he is open to public comment, but not to council making decisions after comments. Ms. Keller suggested staff work on enhancing the transparency of the current process to see if that addresses some of the concerns. Additionally, staff will research what other cities do and collect feedback on their experiences and bring the topic back during the next set of community and civic engagement system discussions. Consent agenda – read aloud Councilmember Brausen noted the agenda should be shown on the screen so folks watching from home can see the consent agenda, otherwise, he feels it should be read aloud for transparency. Ms. Kennedy stated the agenda is displayed on the live stream, but not on the cable broadcast. Mayor Spano stated every agenda is readily available online and posted at city hall for the public to view. Copies of the agenda are also available at each meeting. He suggested staff look into ways to make sure the public is aware of how to access the agenda. He noted he can also mention at each meeting that the agenda is available on the website. Councilmember Budd agreed with Mayor Spano that the agenda can be found on the city website and copies can also be requested from staff. Ms. Kennedy stated staff will look into options to display the consent agenda on the cable broadcast. Should resolutions be read aloud at meetings Ms. Kennedy stated the charter currently requires all resolutions and ordinances be read out loud at the meeting, unless the council unanimously decides to waive the requirement. She noted the standard practice has been that council waive the reading requirement. If council wanted to change the requirement a charter amendment would be required. The council agreed that they would not make any changes at this time. City council meeting of June 6, 2022 (Item No. 3g) Page 6 Title: Study session minutes of May 9, 2022 Adding tools of civility to agenda Ms. Kennedy stated this was a council-requested topic. If council wants to explore implementation, staff will research and bring back options for future council consideration. Mayor Spano stated he would like to see this read before every council meeting. Councilmember Brausen stated if it’s read at every meeting, it might become rote. Mayor Spano stated it may not have to be read but adopting and modeling these behaviors would be appropriate. He stated he would like to head off potential problems. Councilmember Mohamed stated she has concerns being a person of color and something being said that is uncalled for, noting it’s a serious concern of hers in an “open mic” situation. Mr. Mattick stated freedom of speech cannot be censored and the public forum issue can be disruptive as people don’t always come with the best intentions, it’s becoming more and more problematic, and is not always pleasant. Councilmember Mohamed added without structure, she has fear about this, wants to discuss how this will be addressed, and what are council’s options. Councilmember Dumalag added she does not need to engage with someone if they make inappropriate comments. Ms. Keller stated if it is on the agenda, staff can be prepared. Councilmember Kraft asked if there is anything that can be done if there are inappropriate comments being made. Mr. Mattick stated there is little that can be done and in some cases, the meeting takes a recess to de-escalate. Ms. Kennedy stated staff will look into this topic further and develop a recommendation. Recording study sessions and preserving the recordings Ms. Kennedy stated study sessions are now all recorded. The video recordings are available for 6 months. Staff would not recommend permanent storage of the video recordings because it would be difficult to maintain the records in such a way that ensures the media remains accessible, particularly as technology changes in the future. Councilmember Brausen asked what the statute of limitations is. Mr. Mattick stated not longer than 30 days. City council meeting of June 6, 2022 (Item No. 3g) Page 7 Title: Study session minutes of May 9, 2022 Next steps Ms. Kennedy explained staff will update the rules of procedure and place it on an upcoming agenda for approval. Communications/meeting check-in (verbal) Councilmember Kraft stated he is uncomfortable with the green building policy being used as a justification for TIF. He noted this is one area of investment that generates return, and it is not being fully captured. Councilmember Rog agreed and stated it is to our advantage to move this through quickly. Councilmember Brausen stated using TIF is leverage on getting folks to use our green building policy. Ms. Keller noted the state of the community event to be held on Sunday, May 15, from 1-4 p.m. and with the mayor’s address starting at 1:45 p.m. The meeting adjourned at 10:07 p.m. 2. Green building policy revisions 3. Rise on 7/Common Bond Business Terms 4. EDA property acquisition ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3h Unofficial minutes City council workshop St. Louis Park, Minnesota May 9, 2022 The workshop convened at 5:40 p.m. in the community room at city hall. Councilmembers present: Mayor Spano, Sue Budd, Tim Brausen, Lynette Dumalag, Larry Kraft, Nadia Mohamed, and Margaret Rog Staff present: City Manager (Ms. Keller), City Attorney (Mr. Mattick) Guests: Consultant Jean Morrison City council participated in discussions that were left unfinished from the January 27-28, 2022 workshop. Consultant Jean Morrison reviewed the council norms that were established in January. Council shared that in general, they feel the norms are working well. The group collaborated to update and refine the language in the norms. Council developed a shared vision for what protocols they should follow in key situations in order to develop more trust and accountability. The areas that were discussed included the proper way to address each other during meetings, public discussion facilitation, clarity on ward member roles, recusals, personal connections between council, spokesperson duties, and the best way to respond to emails from the public in ways that are responsive without violating open meeting law requirements. Mr. Mattick provided legal information and perspective on what other cities do in similar key situations. The meeting adjourned at 8:40 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Minutes: 3i Unofficial minutes City council Emergency meeting St. Louis Park, Minnesota May 25, 2022 1. Call to order at 6:00 pm Councilmembers present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Larry Kraft, Nadia Mohamed (arrived at 6:15 pm), and Margaret Rog. Councilmembers absent: None. Staff present: City Manager (Ms. Keller), Deputy City Manager/Operations and Recreation Director (Ms. Walsh), Public Works Superintendent (Mr. Hanson), Fire Chief (Mr. Koering), Community Development Director (Ms. Barton), Finance Director (Ms. Schmitt), Interim Communications and Technology Director (Ms. Smith), Chief Building Official (Mr. Skallet) Guests: None. 1a. Roll call 2. Presentations- none. 3. Approval of minutes- none. 4. Approval of agenda and items on consent calendar Mayor Spano suggested adding to the agenda a period for public comment, after the staff presentation. It was moved by Councilmember Rog, seconded by Councilmember Budd, to approve the agenda and to allow for public comment following the staff presentation. The motion passed 6-0 (Councilmember Mohamed absent). 5. Boards and commissions – none. 6. Public hearings – none. 7. Requests, petitions, and communications from the public – none. 8. Resolutions, ordinances, motions and discussion items 8a. Discuss the scope of damage to properties affected by the Saturday, May 21 water main break and options the city might provide for impacted residents Ms. Keller stated early on Saturday morning there was a watermain rupture on Minnetonka Blvd. Staff have been hard at work since that time to respond to the emergency and provide support with filing of claims and cleanup. With more claims City council meeting of June 6, 2022 (Item No. 3i) Page 2 Title: Emergency City council meeting minutes of May 25, 2022 coming in on Monday and Tuesday, staff now better understand the extent of the damage residents are experiencing. Mr. Hanson provided background information on the city’s response to the event that occurred on Saturday. He acknowledged the human side of this event and the profound impact it has had on the residents. He provided an overview of city’s infrastructure in the area and the location of the watermain break. He explained because of the watermain break the nearby manhole was breached and that is how the water from the main break got into the sanitary system and made its way through the service laterals and into many of the homes. He stated when staff respon ded to the situation, they worked to shut off three separate valves to isolate and stop the water flow. The pipe that ruptured was a 12” water main. The size of the break was approximately 8” x 16” and it is estimated that 1.1 million gallons of water was lost. There is no known cause of the break, the rupture was located on the bottom of the pipe. Staff was onsite within 30 minutes of receiving the call of a confirmed break and about an hour later the water was off. Mr. Hanson explained when the high volume of water was under pressure coming out of the hole, it needed to go somewhere. When water flows out of a watermain break it follows a path of least resistance to relieve pressure. In this case, the path it followed penetrated the nearest manhole and the water pressure worked its way through the sewer lines and caused the backups in homes. Approximately 55 properties received water through the sewer system, the water levels varied from inches to as much as three feet. He explained the complexity of the work that was required to find the water main valves and get the water shut off. He noted the street repair on Minnetonka Blvd. is still underway and will be completed by the end of the week. Ms. Keller explained the city purchases insurance through the League of MN Cities Insurance Trust. Staff’s understanding is that the city has the best policy available. For claims like these, the coverage insures and individual property for up to $40,000 with an overall cap of $250,000 per event. The city is not aware of any other instance like this in which the city’s insurance has been insufficient to cover the claims from individual properties. The city’s utilities superintendent has shared that in the nine years he has been with the city he has only had one other property with damage from an event like this, and that instance was minimal damage. This is truly an unprecedented situation. The claim amount that can be provided through the city’s insurance is so low because of the high number of properties impacted by this event. Ms. Keller reviewed the proposed financial relief package the city can provide that is above and beyond anything that would be coming through the insurance trust. The first phase of the program would assist with cleanup expenses and would reimburse property owners up to $30,000 to ensure that homes are safe and habitable. Eligible expenses include cleanup, major mechanicals, or hotel stays. The second phase of the program would provide up to a $30,000 loan to assist with restoration costs. Eligible expenses would include things such as sheet rock, flooring, and major appliances. The interest rate would be 0% for people who are at 50% AMI and 2% for those above that income threshold. The interest rate covers the cost to have a third party administer the loan program. The city would not be making money on a 2% loan. She noted there were two commercial properties impacted and the dollar amounts for each phase are different because of the specialized equipment often located in businesses and the relatively larger footprint of the City council meeting of June 6, 2022 (Item No. 3i) Page 3 Title: Emergency City council meeting minutes of May 25, 2022 buildings. The first phase would provide reimbursement up to $60,000 and the second phase would provide a loan up to $75,000. Ms. Keller stated a community meeting is scheduled for May 26 at Lenox Community Center at 6 pm to outline the city’s response and available resources. The Community Emergency Response Team (CERT) will be in the neighborhood tonight to inform residents of the community meeting. Julie North, 3014 Quebec Ave. S., stated her homeowner’s insurance will not cover anything. She questioned how the city arrived at the proposed financial relief of $30,000 because that will not cover the remediation costs. She added she feels the communication from the city has been terrible. Joanne Lefebvre, 3041 Quebec Ave. S., stated her insurance will cover nothing because they are being told by insurance that it isn’t a water issue, it is a sewe r backup issue. She asked if there is anything the city can do to help with insurance claims by explaining that this was the result of the watermain break. Dimitrios Lalos, 2951 Rhode Island Ave. S., asked if any type of alarm system was set off when 1.1 million gallons of water was lost. He also questioned what the proposed loan term was for phase two of the program. He stated he is disappointed this his first opportunity to speak to council and he would have appreciated councilmembers visiting the neighborhood to meet with people. He noted he had 16” of water in his basement and has incurred way more than $30,000 in damages and that will not cover cleanup or restoration. Mr. Hanson stated the city does have an automated system that includes monitoring. A notification of the water loss was received, but on-call staff was already responding because of the calls from dispatch. The city has an elevation sensor in the towers and if it drops a certain amount unexpectedly it triggers an alarm for on-call staff. Ms. Keller stated for residents the loan would be for a 10-year term for businesses it would be a 20-year term. Camille Gipple, 3020 Quebec Ave. S., shared she has depression and anxiety and became suicidal the other night because her home wreaks, and she is on a very tight budget. She state she has no help her remove items from the basement and her insurance will not cover the costs. She noted her basement is still wet and she fears it is not safe to be in the house. All of her belongings are contaminated, and remediation companies won’t touch her water heater or furnace because they say it is contaminated. She added she feels bad for everyone involved and there is a lot of emotional angst over this. She stated she does not have any money to pay for clean up or restoration and asked how quickly the relief could be provided. Adam Snyder, 3010 Quebec Ave. S., stated it seemed like the water kept rising after it was shutoff. He stated $30,000 won’t cover mitigation and he does not understand why they would be responsible for paying the 2% interest on the loan when the issue was not the fault of the property owners. City council meeting of June 6, 2022 (Item No. 3i) Page 4 Title: Emergency City council meeting minutes of May 25, 2022 Mr. Hanson stated the water was shut off on Minnetonka fairly quickly. The silt and fine material worked its way into the gate valve housing and staff could not immediately get the key on the six-inch main on Sumter to shut it off. The debris was removed, and the valve was shut off at approximately 7:15 am. Even though the water was shut off it is possible it was still rising because of the water pressure. Jennifer Snyder, 3010 Quebec Ave. S., stated she does not know how the city arrived at $30,000 for cleanup costs, noting the costs just to remove the water are a minimum of $10,000. She added mitigation involves replacing all of the mechanicals in a home and that will cost more than $30,000. She questioned why residents would have to pay a loan when they didn’t cause the problem. She stated she was disappointed that the council did not acknowledge the crisis until Wednesday. Jeff Withers, 2905 Rhode Island Ave. S., questioned the staff response time and referenced the police dispatch call log. He questioned if city staff working on the system have valid plumbing and mechanical licenses. He stated $30,000 is not enough and questioned why residents would have to repay the city. Jim Lefebvre, 3041 Quebec Ave. S., stated the proposed plan is an insult. He asked where personal property is factored into the program. He explained his home was destroyed by the incident and there are a lot of questions about what might have caused the problem. Susan Bowen, 2945 Rhode Island Ave. S., stated everything in her basement is ruined including the circuit panel, furnace, water heater, washer, dryer, and sump pump. She noted her backyard looks like sewage and she fears she is breathing toxic air. Her basement included a finished bathroom, bedroom and family room and it is all gone. She stated she does not know what her property taxes pay for, adding her sewer backed up in February and questioned why the sewer system is so poor. Denise Mueller, 2941 Rhode Island Ave. S., stated she agrees with her neighbors and believes the city needs to do better for them because this was not their fault. She stated her home has lost value and questioned why residents would have to payback a loan. Jacob Ruhl, 3004 Quebec Ave. S., stated the city should not give better loan terms to businesses than individual property owners. He asked how Paster development was cleared of any wrongdoing so quickly after the incident. Jennifer Snyder, 3010 Quebec Ave. S., stated they are not currently able to live in their home because they have no furnace, hot water, gas, or running water. She questioned why nothing tangible could be done in this moment to help residents. David North, 3014 Quebec Ave. S., asked the council what they would you do if this happened to them. He stated this is has been very devastating for the residents and they simply want back what they had before this disaster happened. City council meeting of June 6, 2022 (Item No. 3i) Page 5 Title: Emergency City council meeting minutes of May 25, 2022 Julie North, 3014 Quebec Ave. S., stated they appreciate the city’s offer to clean the sewer lines, but they already had that done five days ago and questioned if they could be reimbursed for that cost. Mayor Spano stated the residents who are disappointed with council not visiting the neighborhood is a fair criticism. He recognized that Councilmember Budd has been in the neighborhood and trying to meet with as many people as possible. He also acknowledged that staff is doing everything they can to be in the neighborhood and help. He asked how many people have not responded to door knocking or contact attempts. Ms. Keller stated as of this morning (6) homes had not responded to contact attempts. She noted inspections staff visited those homes today and were able to contact four of the homes and left messages for the remaining two. Mr. Skallet stated of the two remaining properties, one is a rental property and the other is currently unoccupied, but the homeowner did respond. Councilmember Budd asked how soon the funds would be available. Ms. Schmitt stated phase one funds could be provided fairly quickly. The city would be able to either reimburse the costs to the homeowner or pay vendors directly. Councilmember Budd stated she understands how devastating and tragic this is for people. She was able to visit some homes and spoke to many residents. She noted she believes it is her job to advocate for residents in the best way possible and she has been a part of the discussions involved to develop the relief program. She stated it is disturbing to hear that people are unsatisfied by the financial relief programs proposed. Councilmember Rog asked if there is an opportunity for the city to advocate with insurance providers that this is a water issue. She also asked staff to clarify if the city’s insurance through the League is a supplemental resource and if the city could reimburse residents for the cost of cleaning the sewer lines. Ms. Keller stated she would follow up with the city attorney on the insurance question and try to have information available at community meeting. She explained the city’s insurance coverage with the League is a supplemental resource, noting it is important to acknowledge the number of claimants and the overall $250,000 cap will result in a minimal amount being received per claimant. She confirmed the city can reimburse for the sewer line cleaning and fold that into whatever the council appropriates. Councilmember Kraft asked if we know what caused the water main break. Mr. Hanson stated it is unknown what caused the break itself. Councilmember Kraft asked if Paster was cleared of responsibility. City council meeting of June 6, 2022 (Item No. 3i) Page 6 Title: Emergency City council meeting minutes of May 25, 2022 Ms. Keller stated it is her understanding that the construction was happening down the road and any utility work associated with Paster Properties had been completed long before and was not connected with this line. Mr. Skallet stated he is aware of the project at the corner of Minnetonka Blvd. and Texas Ave. He explained the utilities for the project are attached to Texas Ave. and are located approximately 300 yards away from the location of the break. He stated it is very unlikely that project would be directly related to this break. Councilmember Kraft asked if we understand why homeowner’s insurance isn’t providing coverage. Ms. Keller stated she can’t speak to specifics of individual homeowner policies because every policy is different. She noted this may require a separate rider for this type of coverage. Councilmember Budd stated she heard from some residents that they did not have the required flood insurance, noting most don’t have coverage required for this incident. Councilmember Dumalag apologized to the residents for what they are experiencing and thanked them for coming to share their stories. She asked staff to explain the methodology behind the terms of each phase of the proposed program. Ms. Barton stated staff researched the average dollar amount of claims made to FEMA for floods in the area as well as the scope of work included in the claims. The proposed interest rate for the phase two loan program cover the cost of administration of the loans by a third party. Councilmember Budd asked what expenses are eligible in each phase of the proposed program. Ms. Barton explained that eligible expenses in phase one would be for health and safety remediation including cleanup, disposal of contaminated items, repair, or replacement of major mechanicals such as furnaces and water heaters. Phase two would include expenses for restoration such as carpet, flooring, washer, dryer, or furniture. Councilmember Mohamed asked how the programs are proposed to be funded and stated she would like more information on future budget implications. She questioned if there would be an opportunity to increase the amount offered at a later date. Ms. Barton stated the programs would be funded through the general levy and ARPA funds. The business loans would come from the development funds. Ms. Schmitt stated the options discussed regarding the 2023 budget would need to be revised if the programs are approved because there would be less funds available to use for special transformative projects. Stated if the proposed phase one program to provide up to $30,000 to each affected property was maxed out, the total cost would be approximately $1.6 million dollars in ARPA funds. General fund dollars would be used City council meeting of June 6, 2022 (Item No. 3i) Page 7 Title: Emergency City council meeting minutes of May 25, 2022 for the loan program. There may be additional money to buy down the levy, but that could leave no additional money for anything else. Councilmember Mohamed stated she is devastated and sorry to hear what residents are going through. She added she is happy they can meet to hear what options are available to help. She explained the council’s first priority is to make sure that resident’s homes are safe and livable. Councilmember Rog stated she would like to know if there are options available for the city to increase the amount of money being proposed for the relief programs and would be open to reconsidering the city’s use of ARPA funds to provide more help to residents to try to make them whole. Councilmember Budd stated she would support increasing the dollar amounts in both phases of the program. Mayor Spano stated the city will not be able to make people whole, their homes have been damaged. He asked if the city could hire a third-party to investigate the break and see if a cause of the break could be determined. He stated he understands there is no known cause at this time, and he also understands that sometimes pipes simply break when they are old, but an investigation should be considered. He asked if there are other technologies or processes the city should be looking at to monitor and control the water system. Ms. Keller stated staff could certainly look into an investigation and come back to the council with a recommendation. Mr. Hanson stated water main breaks are not uncommon, however this type of event and the scope of this event are very uncommon. He explained the city does have a state -of-the-art system to monitor and control the water system and it did function properly. Mayor Spano asked if the city was required to charge interest on the loan program. He stated he is interested in trying to find a way to help close the gap for residents. He added the issue is not liability. The residents need help and the city’s infrastructure broke. Ms. Barton stated the city does not have to charge interest and could absorb the cost to administer the loan. Councilmember Brausen stated this is a catastrophe and he empathized with the residents. He noted an engineering study to try to determine an actual cause may help sort out a lot of questions later. He stated anything the city can do to assist residents in getting coverage from insurance, would be appreciated. He explained the city does not have unlimited resources to make everything right and the initial proposal goal is to try to help as soon as possible and provide some immediate relief. City council meeting of June 6, 2022 (Item No. 3i) Page 8 Title: Emergency City council meeting minutes of May 25, 2022 Motion by Brausen to adopt staff recommendation for phased proposal for financial relief. The motion fails for lack of a second. Councilmember Mohamed asked if there is an opportunity to come back later to appropriate more dollars if necessary. Ms. Keller stated the council does retain the ability to provide additional funding. Councilmember Kraft asked if there were conditions attached to relief program. Ms. Keller stated a release of liability would be attached to the funds. Councilmember Kraft stated he wanted to make sure all of the information is clear and transparent because he knows people are rushing to try to get things done quickly. Councilmember Rog asked staff to outline their protocol for responding to incidents. She noted the city has excellent staff who do the very best they can to be responsive. Mr. Hanson stated at approximately 5 am, on call staff received a call from dispatch about a possible backup. Staff’s understanding from dispatch was that a plumber was being called by the homeowner because the suspicion at the time was there was an internal issue either in the home itself or within the service lateral. If an internal issue is suspected, dispatch is advised to please call immediately if they get another call from a different property because that would immediately trigger a response for a possible sewer backup. On call staff received the second call from dispatch and immediately responded and called in additional staff. The third call was received from dispatch when staff was already en route. Councilmember Budd asked if there is a way to do phase one now to provide immediate relief and hold off on a final solution until more info is known about the release, the investigation, and any new information that is heard at the community meeting. Ms. Keller stated the city should confer with the attorney before taking action to appropriate funds without a release of liability. Councilmember Mohamed stated she wants to be responsive to the needs of impacted residents, but also needs to be responsible to others in city who are expecting council to make the best decisions possible regarding the tax levy. Ms. Keller clarified at last study session council directed staff to set aside ARPA funds to help relieve tax increases that may be coming, it does not mean taxes will be reduced. Councilmember Kraft stated the council directed staff to set aside money from the general fund and ARPA. Ms. Schmitt stated the proposal is to use ARPA money for phase one and general fund dollars for phase two. City council meeting of June 6, 2022 (Item No. 3i) Page 9 Title: Emergency City council meeting minutes of May 25, 2022 Councilmember Budd asked how much would be needed if the amount offered in phase one was increased to up to $50,000. Ms. Schmitt stated the total would be $2.7 million. Councilmember Brausen asked if there is potential for any type of state assistance for disaster relief. Ms. Keller stated staff continues to explore opportunities but have not found any yet. Mayor Spano stated if city is going to provide funds, a waiver is not an unreasonable request. He noted the amounts proposed seem low and suggested $50,000 for remediation or clean-up costs and eliminate the option for a restoration loan. Councilmember Mohamed stated there is a big difference between the two phases and understand why staff separated. She noted life safety issues are different than restoration. She stated she is open to removing the interest on the loan program. Councilmember Kraft asked if the city needed to keep the costs separate. Ms. Keller stated yes, there is a real reason to separate expenses. She explained the city needs to be able to demonstrate that expenditures meet the definition of a public purpose. There is a strong public purpose to ensuring the health and safety risks are remediated. It becomes much harder to identify the public purpose in other expenses related to restoration, which is why the loan option was developed. Councilmember Kraft stated they have a responsibility to balance the financial health of the city and the need to address life safety issues for impacted residents. Councilmember Dumalag asked what the definition is of restoration. Ms. Barton stated use of restoration funds would be at the homeowners’ discretion because it is a loan. For the first phase, expenses must be eligible in order for the city to provide reimbursement so the public purpose can be demonstrated. Councilmember Rog asked if there was dollar range of estimates for damages. Ms. Barton explained due to sense of urgency and short turnaround time, staff based the dollar amounts on estimates of claims submitted to FEMA for flood damage. Councilmember Rog asked if it would make sense to wait until we have a better understanding of the actual costs. She noted she understands the urgency of cleanup to address health and safety concerns and to make homes livable. Ms. Barton stated it is likely most important to get cleanup funds out to people as fast as possible. City council meeting of June 6, 2022 (Item No. 3i) Page 10 Title: Emergency City council meeting minutes of May 25, 2022 Councilmember Rog stated it seems like they are creating a problem for residents by asking them to waive liability in order to secure emergency funds. Councilmember Kraft stated he has a concern about how long it would take to get adequate information. He suggested increasing phase one up to $50,000; and leave the up to $30,000 loan option as is. Councilmember Budd stated she liked Councilmember Kraft’s proposal and offered that the loan be 0% interest. Councilmember Rog questioned if the waiver would still be required. Councilmember Kraft stated yes. His intent was to provide an option that provides immediate relief and balances the council’s fiduciary responsibility to the city. Councilmember Mohamed agreed the waiver is needed because they also need to protect the city. She supported increasing the amount in phase one and is interested in discussion the interest on the loan program. Councilmember Rog confirmed the council could still decide later to appropriate more funds. It was moved by Councilmember Kraft, seconded by Councilmember Rog, to allow for additional public comment. The motion passed 7-0. Jennifer Snyder, 3010 Quebec Ave. S., asked for clarification on what is a cleanup expense versus a restoration expense. She questioned why the city can’t just give $50,000 up front to everyone. Halley, 3004 Quebec Ave., stated her concern with the proposed financial piece is the definition of cleanup and asked if restoration could also be included for free. Jeff Withers, 2905 Rhode Island Ave. S., stated the program is very shortsighted and does not cover or serve people. Denise Mueller, 2941 Rhode Island Ave. S., stated she would rather have more money go towards restoration. She added rather than spending money on why the break occurred, put that money towards the restoration program. Jim Lefebvre, 3041 Quebec Ave. S., asked how much research was done on the neighborhood. He stated it seems council assumes the residents are living paycheck to paycheck and that isn’t the case. He noted they don’t want a loan, they want fairness, justice, and restoration for damages incurred. Jay Ruhl, 3004 Quebec Ave. S., stated he would like to know if there is case law on these types of issues because precedent will be set. City council meeting of June 6, 2022 (Item No. 3i) Page 11 Title: Emergency City council meeting minutes of May 25, 2022 Dimitrios Lalos, 2951 Rhode Island Ave. S., stated he feels like the council is moving to hastily. He noted there are some people who need relief immediately, others have already gone through cleanup process and paid out of pocket and can wait to figure out what the right number is. He asked if there is a way to tailor the program to help those who really need it right now. Joanne Lefebvre, 3041 Quebec Ave. S., stated the insurance adjuster said they would cover the costs if it was classified as a water loss, if it was sewage backup the coverage would be $5,000. Adam Snyder, 3010 Quebec Ave. S. asked if phase one covers the cost for a furnace. Ms. Keller stated yes, major mechanicals and electrical are eligible in phase one. Ms. Schmitt stated the main reason for splitting the program into phases has to do with state statute. Taxpayer money the city expends has to be used for a public purpose. The city does not have the ability to write a check to each person. Making homes safe to live in is a public purpose because if the homes remain unlivable and damaged, they may need to be condemned. Staff’s primary concern is to get folks money who need a safe, clean, dry house and we can legally expend money for that purpose. Councilmember Kraft questioned if that meant on the restoration side that it must be a loan. Ms. Schmitt stated yes. Councilmember Budd asked if anything could be offered in phase two that is not a loan. Ms. Schmitt stated she would need to consult the city attorney, but she did not believe so. Susan Bowen, 2945 Rhode Island Ave. S., questioned how this is different from the insurance process. Ms. Keller stated staff can collect contact information and ask the League’s insurance adjuster to make contact. Jeff Withers, 2905 Rhode Island Ave. S., asked if it would be a public purpose expenditure to prevent a class action lawsuit. Mayor Spano stated the council is prioritizing trying to be responsive and asked staff to find a plan to get money in people’s pockets now. He is hearing from residents the need to slow down, collect more information, and get it right. He asked if there are options for those who do not have money for remediation. Councilmember Budd stated she is torn between the need for immediacy and the danger of making hasty decisions. City council meeting of June 6, 2022 (Item No. 3i) Page 12 Title: Emergency City council meeting minutes of May 25, 2022 Councilmember Kraft stated this is doubly challenging because they need answers to some important legal questions. He continued it feels like it is worthwhile to wait a bit and reach out to make sure those who need have a place to go. He added it also feels like this can’t wait until next week to reconvene. Councilmember Brausen stated he does not think all the questions will be answered in a couple of days. He explained he viewed the staff proposal as a starting point. It was developed to try to provide an immediate response. Ms. Keller stated if there was a desire to create something that people in need could take advantage of right now, the council has the ability to do that and come back and have additional work and conversation with residents who may not have the same sense of financial immediacy. It was moved by Councilmember Brausen, seconded by Councilmember Kraft, to authorize creation of an emergency fund of $150,000 to be used to address immediate health and safety needs for impacted property owners. Motion withdrawn. Councilmember Mohamed stated she does not feel comfortable leaving without providing an option for immediate relief for those in need. Councilmember Rog clarified the proposal is to create a pool of funds for any needs related to health and safety. Councilmember Brausen stated yes. Mayor Spano asked if the intent is to use the criteria of phase one and give the city manager the discretion to assist property owners up to $150,000. Councilmember Brausen stated yes, but it would be used for truly emergency expenses to address immediate health and safety issues. Councilmember Mohamed stated if the concern is immediacy, why doesn’t the council just pass phase one of the program with the intent to revisit the discussion at a later date when more information is known. She added she is opposed to the proposal because it is unclear to her what they would be passing. Ms. Barton stated legally this could not be a grant program because there is much more work involved in administration of the program. The difference is that the phase one program as proposed is a reimbursement program the city is offering due to the unforeseen situation, not a grant program. Councilmember Rog stated this could be appropriate if there are only a small number of people in immediate need. City council meeting of June 6, 2022 (Item No. 3i) Page 13 Title: Emergency City council meeting minutes of May 25, 2022 Ms. Keller suggested authorizing a total amount of $300,000 to ensure the people who need immediate assistance can get it without needing more money appropriated. Councilmember Budd stated she feels the residents would be better served by approving phase one of the program as proposed. Councilmember Mohamed stated she agreed with Councilmember Budd. It was moved by Councilmember Brausen, seconded by Councilmember Kraft, to authorize an initial investment of the phase one reimbursement program of $300K and authorize the city manager to administer the program to address emergency cleanup needs with the intention to revisit and consider future relief options when more information is received, and the scope of need can be better understood. Ayes: 5 Nays: 2 (Budd, Mohamed) 9. Communications – none. 10. Adjournment ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4a Executive summary Title: Approval of city disbursements Recommended action: Motion to accept for filing city disbursement claims for the period of April 30th through May 27, 2022. Policy consideration: Does the city council desire to approve city disbursements in accordance with Section 6.11 – Disbursements – How Made, of the City’s Charter? Summary: The Finance Division prepares this report on a monthly basis for the city council to review and approve. The attached reports show both City disbursements paid by physical check and those by wire transfer or Automated Clearing House (ACH) when applicable. Financial or budget considerations: Review and approval of the information follows the city’s charter and provides another layer of oversight to further ensure fiscal stewardship. Strategic priority consideration: Not applicable. Supporting documents: City disbursements Prepared by: Kari Mahan, accounting clerk Reviewed by: Melanie Schmitt, finance director Approved by:, Cindy Walsh, deputy city manager 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 1Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 2,532.00 EARL F ANDERSEN INC INSTALLATION OTHER IMPROVEMENT SUPPLIES 2,532.00 112.50 MINNEAPOLIS UNITED SOCCER CLUB BALLFIELDS REFUNDS & REIMBURSEMENTS 112.50 845.003CMACOMM & MARKETING G & A SUBSCRIPTIONS/MEMBERSHIPS 845.00 .554 FRONT ENERGY SOLUTIONS BLDG & ENERGY G & A DUE TO OTHER GOVTS 89.25BLDG & ENERGY G & A PLUMBING 89.80 296.25A-1 OUTDOOR POWER INC NATURAL RESOURCES G & A GENERAL SUPPLIES 296.25 3,000.00A350 HOLDINGS, LLC.ESCROWS PMC ESCROW 3,000.00 2,470.62ABDO FINANCIAL SOLUTIONS FINANCE G & A GENERAL PROFESSIONAL SERVICES 2,470.62WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 2,470.62SEWER UTILITY G&A GENERAL PROFESSIONAL SERVICES 2,470.64SOLID WASTE G&A GENERAL PROFESSIONAL SERVICES 9,882.50 20.58ABLE HOSE & RUBBER INC WATER UTILITY G&A GENERAL SUPPLIES 20.58 11,820.30ACCELA INC #774375 GENERAL FUND BALANCE SHEET PREPAID EXPENSES 11,820.30TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 23,640.60 199.00ACME TOOLS WIRING REPAIR OTHER IMPROVEMENT SUPPLIES 199.00 600.00ADS ON BOARDS REC CENTER BUILDING MAINTENANCE 600.00 322.00ADVANCED ENG & ENVIRONMENTAL SRVCS WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 322.00SEWER UTILITY G&A GENERAL PROFESSIONAL SERVICES 322.00STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 2 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 2Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 966.00 292.50ADVANCED GRAPHIX INC INSURANCE FUND G&A UNINSURED LOSS 292.50 3,028.50AKIN JOHN SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 3,028.50 303.39ALI DEGA WATER UTILITY G&A GENERAL CUSTOMERS 303.39 2.80ALL ENERGY SOLAR BLDG & ENERGY G & A DUE TO OTHER GOVTS 168.00BLDG & ENERGY G & A ELECTRICAL 170.80 839.00ALLIANCE MECH SRVCS INC FACILITIES MCTE G & A GENERAL SUPPLIES 11,571.00FACILITIES MCTE G & A BUILDING MTCE SERVICE 1,121.00MUNICIPAL BLDGS G&A IMPROVEMENTS OTHER THAN BUILDI 3,265.00PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 16,796.00 693.52ALTEC INDUSTRIES INC PREVENTATIVE MAINTENANCE EQUIPMENT MTCE SERVICE 693.52 24.65AMAZON CAPITAL SERVICES IT G & A TRAINING 354.24FINANCE G & A OFFICE EQUIPMENT 613.32FACILITIES MCTE G & A GENERAL SUPPLIES 286.80POLICE G & A GENERAL SUPPLIES 144.83POLICE G & A OPERATIONAL SUPPLIES 294.36FIRE OPERATIONS GENERAL SUPPLIES 1,700.38TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 3,418.58 797.00ANCOM TECHNICAL CENTER WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 797.00 68.18ANDERSON TIMOTHY WATER UTILITY G&A GENERAL CUSTOMERS 68.18 5,000.00APPLETON JUSTIN ESCROWS PMC ESCROW 5,000.00 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 3 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 3Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 627.90ARC DOCUMENT SOLUTIONS, LLC TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 627.90 540.00ASPEN EQUIPMENT CO PREVENTATIVE MAINTENANCE EQUIPMENT MTCE SERVICE 540.00 1,141.47ASPEN MILLS FIRE OPERATIONS UNIFORMS 1,141.47 250.37ATIR ELECTRIC CORPORATION FACILITIES MCTE G & A BUILDING MTCE SERVICE 250.37 6,250.00BADGER STATE INSPECTION LLC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 6,250.00 253.41BALL MARY WATER UTILITY G&A GENERAL CUSTOMERS 253.41 153.00BARNA, GUZY & STEFFEN LTD HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 153.00 93.74BARTELL AMBER WATER UTILITY G&A GENERAL CUSTOMERS 93.74 4,144.00BARTLEY SALES CO PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 1,498.00PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 5,642.00 362.61BATTERIES + BULBS FACILITIES MCTE G & A GENERAL SUPPLIES 109.56WATER UTILITY G&A GENERAL SUPPLIES 472.17 937.38BECKER ARENA PRODUCTS REC CENTER BUILDING GENERAL SUPPLIES 937.38 182.83BENSON, BRAD SIDEWALK & TRAILS G&A GENERAL PROFESSIONAL SERVICES 159.98STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 1,051.28PAVEMENT MANAGEMENT G&A GENERAL PROFESSIONAL SERVICES 617.06WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 91.42SEWER CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 4 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 4Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 182.83STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 2,285.40 14,435.00BERGERSON CASWELL INC WATER UTILITY G&A EQUIPMENT MTCE SERVICE 14,435.00 108.00BERNICK LEE BLDG & ENERGY G & A PLUMBING 108.00 69.57BIEGLER KIRK WATER UTILITY G&A GENERAL CUSTOMERS 69.57 94.06BIGLEY LINDA WATER UTILITY G&A GENERAL CUSTOMERS 94.06 675.00BLUE NET, INC.IT G & A TRAINING 675.00 3,000.00BLUNK-PIPER DANIEL ESCROWS PMC ESCROW 3,000.00 84.42BOLTER SHANNON WATER UTILITY G&A GENERAL CUSTOMERS 84.42 18,514.50BOLTON & MENK INC WOODDALE REHAB PROJ (TIF) G&A GENERAL PROFESSIONAL SERVICES 18,514.50 1,203.79BOUND TREE MEDICAL, LLC POLICE G & A OPERATIONAL SUPPLIES 12.09FIRE OPERATIONS OPERATIONAL SUPPLIES 1,215.88 3,280.00BREDEMUS HARDWARE COMPANY INC MUNICIPAL BLDGS G&A IMPROVEMENTS OTHER THAN BUILDI 3,280.00 197.72BRENDEL JODI WATER UTILITY G&A GENERAL CUSTOMERS 197.72 172.76BRENER BENJAMIN WATER UTILITY G&A GENERAL CUSTOMERS 172.76 95.20BUCKEL, KARI FIRE OPERATIONS SEMINARS/CONFERENCES/PRESENTAT City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 5 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 5Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 95.20 664.19BUSINESS ESSENTIALS COMM & MARKETING G & A OFFICE SUPPLIES 664.19 321.60CALUMET BRANDED PRODUCTS FIRE OPERATIONS OPERATIONAL SUPPLIES 321.60 10,595.16CAMPBELL KNUTSON PROF ASSOC ADMINISTRATION G & A LEGAL SERVICES 255.00ENGINEERING G & A LEGAL SERVICES 204.00PUBLIC WORKS OPS G & A GENERAL PROFESSIONAL SERVICES 527.00SIDEWALK & TRAILS G&A IMPROVEMENTS OTHER THAN BUILDI 102.00SEWER CAPITAL PROJ G & A LEGAL SERVICES 11,683.16 287.10CANON FINANCIAL TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 287.10 67.96CAPITAL ONE TRADE CREDIT GENERAL FUND BALANCE SHEET INVENTORY 67.96 5,000.00CARE RESOURCE CONNECTION FIRE OPERATIONS GENERAL PROFESSIONAL SERVICES 5,000.00 291.57CARPATHIAN CAPITAL FUND I LLC WATER UTILITY G&A GENERAL CUSTOMERS 291.57 21,092.00CBIZ BENEFITS & INSURANCE SERVICES INC EMPLOYEE BENEFITS FUND G&A GENERAL PROFESSIONAL SERVICES 21,092.00 5,911.32CDW GOVERNMENT INC TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 5,911.32 2,035.00CENTER FOR ENERGY AND ENVIRONMENT CLIMATE INVESTMENT FUND G & A OTHER CONTRACTUAL SERVICES 40.00HOUSING REHAB G & A OTHER CONTRACTUAL SERVICES 1,250.00MOVE-UP PROGRAM OTHER CONTRACTUAL SERVICES 25,400.00DOWN PYMT ASSISTANCE OTHER CONTRACTUAL SERVICES 28,725.00 2,604.33CENTERPOINT ENERGY FACILITIES MCTE G & A HEATING GAS 2,091.12FACILITY OPERATIONS HEATING GAS City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 6 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 6Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 70.00BLDG & ENERGY G & A MECHANICAL 5,096.97WATER UTILITY G&A HEATING GAS 371.73REILLY G & A HEATING GAS 445.15SEWER UTILITY G&A HEATING GAS 1,323.62PARK MAINTENANCE G & A HEATING GAS 12,002.92 15.00CENTRAL MCGOWAN CONCESSIONS OPERATIONAL SUPPLIES 15.00 11,400.00CENTRAL PENSION FUND EMPLOYEE BENEFITS FUND BAL SHT OTHER RETIREMENT 11,400.00 359.40CENTURY LINK CELLPHONES, IPADS, ETC.TELEPHONE 359.40 87.51CHISMAR JAIME RACE EQUITY & INCLUSION G&A GENERAL SUPPLIES 87.51 239.15CINTAS CORPORATION FACILITIES MCTE G & A OPERATIONAL SUPPLIES 321.62FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 275.44REC CENTER BUILDING GENERAL SUPPLIES 58.68REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 158.65VEHICLE MAINTENANCE G&A OPERATIONAL SUPPLIES 1,053.54 99.70CITIZENS INDEPENDENT BANK GENERAL FUND BALANCE SHEET INVENTORY 7,634.00ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 274.71ADMINISTRATION G & A MEETING EXPENSE 60.65HUMAN RESOURCES ORGANIZATIONAL DEVELOPMENT 404.00HUMAN RESOURCES RECOGNITION 825.00HUMAN RESOURCES TRAINING 53.66HUMAN RESOURCES MEETING EXPENSE 72.76-COMM & MARKETING G & A GENERAL PROFESSIONAL SERVICES 50.40COMM & MARKETING G & A ADVERTISING 113.42COMM & MARKETING G & A SUBSCRIPTIONS/MEMBERSHIPS 21.49IT G & A SUBSCRIPTIONS/MEMBERSHIPS 200.00IT G & A TRAINING 131.00ASSESSING G & A OTHER CONTRACTUAL SERVICES 200.00ASSESSING G & A TRAINING 135.95FINANCE G & A OTHER City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 7 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 7Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 73.00COMM DEV PLANNING G & A TRAINING 90.00COMM DEV G & A TRAINING 54.20POLICE G & A OFFICE SUPPLIES 25.90POLICE G & A OPERATIONAL SUPPLIES 1,184.38POLICE G & A OTHER CONTRACTUAL SERVICES 58.10POLICE G & A POSTAGE 370.00POLICE G & A SUBSCRIPTIONS/MEMBERSHIPS 1,653.00POLICE G & A TRAINING 89.47POLICE G & A SEMINARS/CONFERENCES/PRESENTAT 2,832.55POLICE G & A TRAVEL/MEETINGS 205.35POLICE G & A MEETING EXPENSE 40.00POLICE G & A BANK CHARGES/CREDIT CD FEES 883.90FIRE OPERATIONS GENERAL SUPPLIES 298.10FIRE OPERATIONS OPERATIONAL SUPPLIES 165.00FIRE OPERATIONS UNIFORMS 203.97FIRE OPERATIONS SUBSCRIPTIONS/MEMBERSHIPS 1,074.94FIRE OPERATIONS TRAINING 3,096.84FIRE OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 226.00BLDG & ENERGY G & A SUBSCRIPTIONS/MEMBERSHIPS 250.00BLDG & ENERGY G & A TRAINING 20.00BLDG & ENERGY G & A MEETING EXPENSE 85.00SUSTAINABILITY G&A SUBSCRIPTIONS/MEMBERSHIPS 194.42ENGINEERING G & A OFFICE SUPPLIES 1,300.00ENGINEERING G & A SUBSCRIPTIONS/MEMBERSHIPS 1,092.00ENGINEERING G & A TRAINING 306.56PUBLIC WORKS OPS G & A GENERAL SUPPLIES 149.95PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 430.09PUBLIC WORKS OPS G & A OTHER CONTRACTUAL SERVICES 357.53PUBLIC WORKS OPS G & A TRAINING 90.00PUBLIC WORKS OPS G & A SEMINARS/CONFERENCES/PRESENTAT 616.85TRAININGSEMINARS/CONFERENCES/PRESENTAT 250.00COVID-19 FUNDING G&A MISC EXPENSE 550.00CABLE TV G & A OTHER 1,229.05PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 27.20SIDEWALK & TRAILS G&A GENERAL PROFESSIONAL SERVICES 23.80STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 156.40PAVEMENT MANAGEMENT G&A GENERAL PROFESSIONAL SERVICES 194.94WATER UTILITY G&A OPERATIONAL SUPPLIES 91.80WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 804.26WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 2,140.20WATER UTILITY G&A SEMINARS/CONFERENCES/PRESENTAT City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 8 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 8Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 13.60SEWER CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 190.00SOLID WASTE G&A GENERAL SUPPLIES 520.00SOLID WASTE G&A SEMINARS/CONFERENCES/PRESENTAT 27.20STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 270.84TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 174.54ORGANIZED REC G & A GENERAL SUPPLIES 672.88ORGANIZED REC G & A TRAVEL/MEETINGS 1,200.00ADULT PROGRAMS OPERATIONAL SUPPLIES 431.62SOFTBALLGENERAL SUPPLIES 393.67SPECIAL EVENTS GENERAL SUPPLIES 210.22HOLIDAY PROGRAMS GENERAL SUPPLIES 53.33WARMING HOUSES GENERAL SUPPLIES 96.74LARGE EVENTS - ADMIN FEE GENERAL SUPPLIES 16.12PARK MAINTENANCE G & A SUBSCRIPTIONS/MEMBERSHIPS 186.40PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 128.34WESTWOOD G & A OFFICE SUPPLIES 552.59WESTWOOD G & A GENERAL SUPPLIES 67.41WESTWOOD G & A CONCESSION SUPPLIES 93.00WESTWOOD G & A TRAINING 708.00REC CENTER BUILDING GENERAL SUPPLIES 215.00REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 299.00REC CENTER BUILDING SEMINARS/CONFERENCES/PRESENTAT 64.46REC CENTER BUILDING TRAVEL/MEETINGS 49.15REC CENTER BUILDING MEETING EXPENSE 377.86INSTRUCTIONAL SKATING LESSONS GENERAL SUPPLIES 40,127.94 39,880.38CIVICPLUS, LLC.EQUIP/VEHICLE REPLACEMENT OFFICE EQUIPMENT 39,880.38 149.71CJR SYNDICATE, LLC.WATER UTILITY G&A GENERAL CUSTOMERS 149.71 17,227.29COLICH & ASSOCIATES ADMINISTRATION G & A LEGAL SERVICES 17,227.29 129.71COMCASTFIRE OPERATIONS EMERGENCY PREPAREDNESS 43.41OTHER CITY DEPARTMENTS OTHER CONTRACTUAL SERVICES 30.27REC CENTER BUILDING OTHER CONTRACTUAL SERVICES 203.39 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 9 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 9Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 1,096.36COMMERCIAL ASPHALT COMPANY PATCHING-PERMANENT OTHER IMPROVEMENT SUPPLIES 1,096.36 919.00COMMERCIAL REFRIGERATION SYSTEMS INC REC CENTER BUILDING MAINTENANCE 919.00 300.00COMMISSIONER OF TRANSPORTATION ENGINEERING G & A TRAINING 300.00 8,598.38COMPASS MINERALS AMERICA SANDING/SALTING OTHER IMPROVEMENT SUPPLIES 8,598.38 4,308.57CORE & MAIN LP WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 4,308.57 152.25COREMARKFIRE OPERATIONS TRAINING 204.18WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 356.43 8,750.00CORNERSTONE ADVOCACY SERVICE POLICE G & A OTHER CONTRACTUAL SERVICES 8,750.00 2,268.00CORPORATE MECHANICAL REC CENTER BUILDING BUILDING MTCE SERVICE 2,268.00 58.76COSTANZO ADRIENNE WATER UTILITY G&A GENERAL CUSTOMERS 58.76 278.40COUGHLIN, JUDY FITNESS PROGRAMS OTHER CONTRACTUAL SERVICES 278.40 18.05COURNEYA SARA WATER UTILITY G&A GENERAL CUSTOMERS 18.05 600.00COVERT TRACK GROUP INC POLICE G & A OTHER CONTRACTUAL SERVICES 600.00 1,958.00CROSS NURSERIES INC.REFORESTATION FUND TREE REPLACEMENT 1,958.00 343.99CROWN RENTAL - BURNSVILLE TREE MAINTENANCE SMALL TOOLS City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 10 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 10Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 343.99 5,179.29CRYSTAL CITY OF BASKETBALL OTHER CONTRACTUAL SERVICES 5,179.29 44.42CTW GROUP, INC.WATER UTILITY G&A GENERAL CUSTOMERS 44.42 18.75CUB KNOLLWOOD POLICE G & A OTHER CONTRACTUAL SERVICES 154.70POLICE G & A MEETING EXPENSE 173.45 177.21CUMMINS SALES AND SERVICE FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 2,869.52WATER UTILITY G&A EQUIPMENT MTCE SERVICE 3,629.49SEWER UTILITY G&A EQUIPMENT MTCE SERVICE 6,676.22 1,444.05CUSTOM PRODUCTS & SERVICES SSD 1 G&A OTHER CONTRACTUAL SERVICES 2,085.48SSD 2 G&A OTHER CONTRACTUAL SERVICES 909.00SSD 3 G&A OTHER CONTRACTUAL SERVICES 1,116.00SSD #4 G&A OTHER CONTRACTUAL SERVICES 947.97SSD #5 G&A OTHER CONTRACTUAL SERVICES 6,502.50 787.83DALCO ENTERPRISES INC FACILITIES MCTE G & A CLEANING/WASTE REMOVAL SUPPLY 787.83 229.00DAMA METAL PRODUCTS, INC.FIRE OPERATIONS FIRE PREVENTION SUPPLIES 229.00 14,650.72DELTA FIRE & SAFETY TX FIRE OPERATIONS PROTECTIVE CLOTHING 14,650.72 50.00DEMING DENNIS BLDG & ENERGY G & A LICENSES 50.00 1,645.00DIWHY, LLC.PARK IMPROVE CAPITAL PROJECT OTHER CONTRACTUAL SERVICES 1,645.00 4,890.00DJ ELECTRIC SERVICES INC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 2,900.00PARK EQUIPMENT MAINTENANCE OTHER CONTRACTUAL SERVICES City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 11 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 11Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 351.23WESTWOOD HILLS NATURE CENTER OTHER IMPROVEMENT SUPPLIES 8,141.23 1,653.00DO-GOOD.BIZ INC COMM & MARKETING G & A PRINTING & PUBLISHING 1,807.53SOLID WASTE G&A POSTAGE 4,691.14SOLID WASTE G&A PRINTING & PUBLISHING 8,151.67 295.00DOLAN CONSULTING GROUP POLICE G & A TRAINING 295.00 16.85DOLD SARAH WATER UTILITY G&A GENERAL CUSTOMERS 16.85 300.00DTN, LLC.PUBLIC WORKS OPS G & A OTHER CONTRACTUAL SERVICES 300.00 1,389.00ECM PUBLISHERS INC ADMINISTRATION G & A LEGAL NOTICES 1,389.00 150.00EHLERS & ASSOCIATES INC ESCROWS UNION PARK APTS 2,850.00ESCROWSCSM TRAFFIC STUDY/PLANNING 150.00ESCROWSSATURDAY PROP (S WOOD STATION) 1,875.00ESCROWSSEMBLE EXCAVATING 450.00ESCROWS3801 WOODDALE (ALDERSGATE) 550.00BRIDGWALK HIA OTHER CONTRACTUAL SERVICES 6,025.00 2,358.30ELECTRIC MOTOR REPAIR WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 2,358.30 333.22ELLIS CLAY & LISA WATER UTILITY G&A GENERAL CUSTOMERS 333.22 333.22ELLIS SUSAN WATER UTILITY G&A GENERAL CUSTOMERS 333.22 333.23ELLIS THOMAS WATER UTILITY G&A GENERAL CUSTOMERS 333.23 8,113.60ENTERPRISE FM TRUST EQUIP/VEHICLE REPLACEMENT RENTAL EQUIPMENT City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 12 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 12Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 8,113.60 325.00ESCAPE FIRE PROTECTION LLC FACILITIES MCTE G & A OTHER CONTRACTUAL SERVICES 325.00 438.05FACTORY MOTOR PARTS CO GENERAL FUND BALANCE SHEET INVENTORY 438.05 595.00FARBER SOUND LLC REC CENTER BUILDING BUILDING MTCE SERVICE 595.00 1,300.00FAUL PSYCHOLOGICAL PLLC HUMAN RESOURCES RECRUITMENT 1,300.00 587.00FERGUSON ENTERPRISES INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 587.00 182.14FERGUSON SARA WATER UTILITY G&A GENERAL CUSTOMERS 182.14 1,812.48FERGUSON WATERWORKS PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 4,065.41WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 5,877.89 44.45FERRELLGASVEHICLE MAINTENANCE G&A MOTOR FUELS 44.45 6,000.00FERRIS DANIEL ESCROWS PMC ESCROW 6,000.00 1,000.00FIDELIS SAFETY SOLUTIONS FIRE OPERATIONS GENERAL PROFESSIONAL SERVICES 1,000.00 184.92FILTRATION SYSTEMS INC FACILITIES MCTE G & A GENERAL SUPPLIES 184.92 293.01FINANCE & COMMERCE, INC.PARK IMPROVE CAPITAL PROJECT GENERAL PROFESSIONAL SERVICES 428.26WOODDALE REHAB PROJ (TIF) G&A GENERAL PROFESSIONAL SERVICES 721.27 500.00FIRE SAFETY USA INC GENERAL FUND BALANCE SHEET INVENTORY City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 13 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 13Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 500.00 4,000.00FIREHOUSE GRANTS, LLC.FIRE OPERATIONS GENERAL PROFESSIONAL SERVICES 4,000.00 311.06FIRST ADVANTAGE HUMAN RESOURCES GENERAL PROFESSIONAL SERVICES 311.06 466.21FORCE AMERICA, INC.GENERAL FUND BALANCE SHEET INVENTORY 466.21 20.46FRATTALLONE'S HARDWARE WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 142.91REC CENTER BUILDING OPERATIONAL SUPPLIES 12.72GENERAL REPAIR GENERAL SUPPLIES 176.09 26.98FRATTALLONE'S/SAINT LOUIS PARK REC CENTER BUILDING OPERATIONAL SUPPLIES 26.98 2,238.60GALLS, LLC - DBA UNIFORMS UNLIMITED POLICE G & A OPERATIONAL SUPPLIES 2,238.60 2,570.00GBA SYSTEMS INTEGRATORS TRAINING SEMINARS/CONFERENCES/PRESENTAT 2,570.00 65.04GILMAN DAN WATER UTILITY G&A GENERAL CUSTOMERS 65.04 32.50GITTLEMAN CONSTRUCTION BLDG & ENERGY G & A BUILDING 32.50 356.92GLASSBERG JILL WATER UTILITY G&A GENERAL CUSTOMERS 356.92 140.00GOLDEN BRYAN & KRISTINA BLDG & ENERGY G & A 1&2 SINGLE FAM. RENTAL 140.00 718.40GOLDEN VALLEY CITY OF FITNESS PROGRAMS OTHER CONTRACTUAL SERVICES 718.40 814.00GRAFIX SHOPPE INSURANCE FUND G&A UNINSURED LOSS City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 14 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 14Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 814.00 320.60GRAINGER INC.WATER UTILITY G&A GENERAL SUPPLIES 21.42PARK MAINTENANCE G & A GENERAL SUPPLIES 342.02 17,284.95GRANICUSCOMM & MARKETING G & A OTHER CONTRACTUAL SERVICES 10,806.92CABLE TV G & A OTHER CONTRACTUAL SERVICES 28,091.87 278.57GRAYBAR ELECTRIC CO PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 278.57 15,331.67GRAYSHIFT LLC POLICE G & A OTHER CONTRACTUAL SERVICES 15,331.67 196.11GUARDIAN FLEET SAFETY INSURANCE FUND G&A UNINSURED LOSS 4,441.97EQUIP/VEHICLE REPLACEMENT RENTAL EQUIPMENT 4,638.08 163.52HACH CO WATER UTILITY G&A GENERAL SUPPLIES 163.52 33.51HAGSTROM ALEXANDER WATER UTILITY G&A GENERAL CUSTOMERS 33.51 66.95HAMPTON, BOB FIRE OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 66.95 19.56HAND MATTHEW WATER UTILITY G&A GENERAL CUSTOMERS 19.56 14,292.77HAWKINS INC WATER UTILITY G&A OPERATIONAL SUPPLIES 6,567.53AQUATIC PARK MAINTENANCE OPERATIONAL SUPPLIES 20,860.30 280.00HEALTHPARTNERSHUMAN RESOURCES RECRUITMENT 280.00 877.85HEDBERG AGGREGATES INC STORM WATER UTILITY G&A EQUIPMENT PARTS 877.85 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 15 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 15Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 850.00HENNEPIN COUNTY FIRE CHIEFS ASSOCIATION FIRE OPERATIONS TRAINING 850.00 203.00HENNEPIN COUNTY TREASURER IT G & A COMPUTER SERVICES 10,000.00POLICE G & A GENERAL PROFESSIONAL SERVICES 3,449.16POLICE G & A EQUIPMENT MTCE SERVICE 9,167.08POLICE G & A JAIL/DETENTION SERVICES 2,728.44FIRE OPERATIONS RADIO COMMUNICATIONS 12.00HIA ADMIN OTHER CONTRACTUAL SERVICES 810.80PARK MAINTENANCE G & A GARBAGE/REFUSE SERVICE 26,370.48 2,568.00HENNEPIN HEALTHCARE FIRE OPERATIONS TRAINING 2,568.00 1,340.52HIGHVIEW PLUMBING INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 4,980.00SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 6,320.52 1,681.48HIRSHFIELD'S PAINT MFG INC PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIES 1,681.48 600.00HOLTZ RACHEL ESCROWS PMC ESCROW 600.00 339.16HOME DEPOT CREDIT SERVICES FACILITIES MCTE G & A GENERAL SUPPLIES 679.00WATER UTILITY G&A GENERAL SUPPLIES 1,239.70WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 21.91MUNICIPAL BLDGS G&A IMPROVEMENTS OTHER THAN BUILDI 102.27PARK MAINTENANCE G & A GENERAL SUPPLIES 308.21PARK BUILDING MAINTENANCE BLDG/STRUCTURE SUPPLIES 110.89PLAYGROUND EQUIPMENT MAINTENAN GENERAL SUPPLIES 50.45GRAFFITI CLEAN-UP GENERAL SUPPLIES 151.55NATURAL RESOURCES G & A LANDSCAPING MATERIALS 3,003.14 27.00HOPKINS MCKINZIE WATER UTILITY G&A GENERAL CUSTOMERS 27.00 350.00HORIZON AFO SEMINARS PARK MAINTENANCE G & A TRAINING City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 16 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 16Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 350.00REC CENTER BUILDING TRAINING 700.00 432.54HORIZON COMMERCIAL POOL SUPPLY AQUATIC PARK G & A OPERATIONAL SUPPLIES 432.54 18.62HPA US1, LLC.WATER UTILITY G&A GENERAL CUSTOMERS 18.62 1,715.00I.U.O.E. LOCAL NO 49 EMPLOYEE BENEFITS FUND BAL SHT UNION DUES 1,715.00 22,785.55IMAGETREND, INC TECHNOLOGY REPLACEMENT EQUIPMENT MTCE SERVICE 22,785.55 54.06IMPERIAL SUPPLIES HOLDINGS, INC.VEHICLE MAINTENANCE G&A SMALL TOOLS 54.06 24.59INDELCOWATER UTILITY G&A EQUIPMENT MTCE SERVICE 24.59 385.00INDEPENDENT BLACK DIRT CO PUBLIC WORKS OPS G & A OTHER IMPROVEMENT SUPPLIES 385.00 .15INDIGO SIGN WORKS BLDG & ENERGY G & A DUE TO OTHER GOVTS 75.25BLDG & ENERGY G & A ELECTRICAL 75.40 28,325.00INFOSENSE, INC.SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 28,325.00 691.59INGCO INTERNATIONAL COMM & MARKETING G & A OTHER CONTRACTUAL SERVICES 691.59 91.97INVER GROVE FORD GENERAL FUND BALANCE SHEET INVENTORY 59.99GENERAL REPAIR EQUIPMENT MTCE SERVICE 151.96 75.00ISI SPORTS INDUSTRY INSTRUCTIONAL SKATING LESSONS GENERAL SUPPLIES 177.00INSTRUCTIONAL SKATING LESSONS OPERATIONAL SUPPLIES 252.00 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 17 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 17Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 448.33I-STATE TRUCK CENTER GENERAL FUND BALANCE SHEET INVENTORY 40.88VEHICLE MAINTENANCE G&A POSTAGE 489.21 309.58J. H. LARSON CO.WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 309.58 7,500.00J.P SCHMITZ CONSTRUCTION CO LLC SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 7,500.00 383.00JEFFERSON FIRE & SAFETY INC FIRE OPERATIONS SMALL TOOLS 383.00 28.30JERRY'S HARDWARE SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 77.35WATER UTILITY G&A EQUIPMENT PARTS 193.60PARK MAINTENANCE G & A GENERAL SUPPLIES 24.61NATURAL RESOURCES G & A OTHER IMPROVEMENT SUPPLIES 323.86 66.85JOHNSON JOSHUA AND MADDIE WATER UTILITY G&A GENERAL CUSTOMERS 66.85 1,823.40JOHNSON PAPER & SUPPLY CO.REC CENTER BUILDING GENERAL SUPPLIES 1,823.40 130.60JOHNSON PATRICK WATER UTILITY G&A GENERAL CUSTOMERS 130.60 220.04JOHNSON SARAH DENNEY WATER UTILITY G&A GENERAL CUSTOMERS 220.04 1,500.00JPS HOMES, LLC.ESCROWS PMC ESCROW 1,500.00 175.00KENNEDY & GRAVEN ESCROWS UNION PARK APTS 750.00ESCROWSKNOLLWOOD - INDIRECT SOURCE PR 1,460.00ESCROWSSATURDAY PROP (S WOOD STATION) 7,232.00ESCROWSSEMBLE EXCAVATING 2,100.00ESCROWS3801 WOODDALE (ALDERSGATE) 5,151.00ESCROWSBigos Management-1351-1361 Ham City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 18 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 18Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 16,868.00 56.00KEVTER CONSTRUCTION BLDG & ENERGY G & A ELECTRICAL 56.00 24,382.03KIMLEY-HORN AND ASSOCIATES, INC STREET CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 262.17PAVEMENT MANAGEMENT G&A GENERAL PROFESSIONAL SERVICES 786.52WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 786.52STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 26,217.24 12,387.22KIMLEY-HORN AND ASSOCIATES, INC.SIDEWALK & TRAILS G&A GENERAL PROFESSIONAL SERVICES 12,090.802023 MSA STREET PROJECT G&A GENERAL PROFESSIONAL SERVICES 11,752.652024 MSA STREET PROJECT G&A GENERAL PROFESSIONAL SERVICES 1,189.19WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 311.43SEWER CAPITAL PROJ G & A GENERAL PROFESSIONAL SERVICES 1,271.29STORM WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 39,002.58 65.00KINNEBERG SARAH BASKETBALL REFUNDS & REIMBURSEMENTS 65.00 41,586.20KLEIN UNDERGROUND LLC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 41,586.20 361.39KLINE AARON WATER UTILITY G&A GENERAL CUSTOMERS 361.39 520.00KRAFT LARRY ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 520.00 27.16KRETSINGER SANDRA WATER UTILITY G&A GENERAL CUSTOMERS 27.16 1,320.00KRUELLE, BRYAN EMPLOYEE BENEFITS FUND G&A TUITION 1,320.00 107.50LADEN'S BUSINESS SOLUTIONS INC HUMAN RESOURCES GENERAL SUPPLIES 107.50FINANCE G & A OTHER CONTRACTUAL SERVICES 215.00 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 19 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 19Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 235.84LANGUAGE LINE SERVICES INC POLICE G & A OTHER CONTRACTUAL SERVICES 235.84 2.89LARSON MICHELE WATER UTILITY G&A GENERAL CUSTOMERS 2.89 3,768.28LAW ENFORCEMENT LABOR SERVICES INC EMPLOYEE BENEFITS FUND BAL SHT UNION DUES 3,768.28 98.28LAWRENCE JOE FIRE OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 98.28 80.72LAWSON PRODUCTS INC GENERAL REPAIR GENERAL SUPPLIES 80.72 848.00LEAGUE OF MINNESOTA CITIES ADMINISTRATION G & A SEMINARS/CONFERENCES/PRESENTAT 50.00IT G & A TRAINING 25,159.37EMPLOYEE BENEFITS FUND G&A League of MN Cities dept'l exp 26,057.37 292,207.00LEAGUE OF MN CITIES INSURANCE TRUST EMPLOYEE BENEFITS FUND G&A League of MN Cities dept'l exp 147,796.00INSURANCE FUND BAL SHEET PREPAID EXPENSES 440,003.00 44.94LEE JEFF WATER UTILITY G&A GENERAL CUSTOMERS 44.94 6,296.75LHB INC ESCROWS SATURDAY PROP (S WOOD STATION) 2,800.00ESCROWSSEMBLE EXCAVATING 9,096.75 350.00LIFE SAFETY SYSTEMS FACILITIES MCTE G & A BUILDING MTCE SERVICE 350.00 397.10LIFE SUPPORT INNOVATIONS FIRE OPERATIONS OPERATIONAL SUPPLIES 397.10 300.00LOES CHARLIE ESCROWS PMC ESCROW 300.00 258.24LOFFLERIT G & A EQUIPMENT MTCE SERVICE City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 20 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 20Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 258.24 1,364.19LOFFLER COMPANIES IT G & A EQUIPMENT MTCE SERVICE 1,364.19 5,550.72LOGISIT G & A COMPUTER SERVICES 55,398.00TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 60,948.72 32.29LOMONT NICOLE WATER UTILITY G&A GENERAL CUSTOMERS 32.29 146.57M G INCENTIVES COMM & MARKETING G & A GENERAL SUPPLIES 146.57 891.40M&M HYDRAULIC COMPANY WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 891.40 392.48MACQUEEN EQUIP CO GENERAL FUND BALANCE SHEET INVENTORY 2,862.81FIRE OPERATIONS SMALL TOOLS 20.97SEWER UTILITY G&A OTHER IMPROVEMENT SERVICE 16.97VEHICLE MAINTENANCE G&A POSTAGE 3,293.23 31,850.41MANSFIELD OIL COMPANY OF GAINSVILLE, INC GENERAL FUND BALANCE SHEET INVENTORY 31,850.41 18.70MARIANO RON WATER UTILITY G&A GENERAL CUSTOMERS 18.70 1,660.00MARIE RIDGEWAY LICSW LLC POLICE G & A GENERAL PROFESSIONAL SERVICES 1,660.00 94.46MAURI CHIP WATER UTILITY G&A GENERAL CUSTOMERS 94.46 38.30MENARDSROUTINE MAINTENANCE OTHER IMPROVEMENT SUPPLIES 2.42SYSTEM REPAIR OTHER IMPROVEMENT SUPPLIES 569.45REFORESTATION FUND TREE REPLACEMENT 448.55WATER UTILITY G&A GENERAL SUPPLIES 144.90WESTWOOD G & A GENERAL SUPPLIES City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 21 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 21Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 1,203.62 428.00METRO VOLLEYBALL OFFICIALS ASSOC.VOLLEYBALL OTHER CONTRACTUAL SERVICES 428.00 420,685.65METROPOLITAN COUNCIL BLDG & ENERGY G & A DUE TO OTHER GOVTS 361,200.27OPERATIONSCLEANING/WASTE REMOVAL SERVICE 781,885.92 4,867.50MIDWEST GROUNDCOVER PARK IMPROVE CAPITAL PROJECT BUILDINGS & STRUCTURES 3,982.50PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 8,850.00 250.87MILLER JASON WATER UTILITY G&A GENERAL CUSTOMERS 250.87 848.16MINNESOTA CHILD SUPPORT PYT CTR EMPLOYEE BENEFITS FUND BAL SHT WAGE GARNISHMENTS 848.16 11,421.96MINNESOTA DEPT LABOR & INDUSTRY BLDG & ENERGY G & A DUE TO OTHER GOVTS 11,421.96 1,211.21MINNESOTA EQUIPMENT GENERAL REPAIR EQUIPMENT MTCE SERVICE 1,211.21 5,250.00MINNESOTA NATIVE LANDSCAPES REFORESTATION FUND TREE REPLACEMENT 5,250.00 3.16MINNESOTA RUSCO, INC.BLDG & ENERGY G & A DUE TO OTHER GOVTS 175.00BLDG & ENERGY G & A BUILDING 178.16 120.00MINNESOTA SECRETARY OF STATE- NOTARY COMM & MARKETING G & A SUBSCRIPTIONS/MEMBERSHIPS 120.00 35.00MINUTEMAN PRESS COMM & MARKETING G & A OFFICE SUPPLIES 35.00 687.33M-K GRAPHICS FINANCE G & A OFFICE SUPPLIES 687.33 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 22 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 22Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 120.00MN FIRE SERVICE CERTIFICATION BOARD FIRE OPERATIONS TRAINING 120.00 11,500.69MOHAWK LIFTS, LLC.VEHICLE MAINTENANCE G&A SMALL TOOLS 11,500.69 23.07MOSES JOSEPH WATER UTILITY G&A GENERAL CUSTOMERS 23.07 112.00MOST DEPENDABLE FOUNTAINS PARK EQUIPMENT MAINTENANCE GENERAL SUPPLIES 112.00 143.79MOZEY, WILLIAM WATER UTILITY G&A GENERAL CUSTOMERS 143.79 304.65MPCAFACILITIES MCTE G & A LICENSES 304.65VEHICLE MAINTENANCE G&A SUBSCRIPTIONS/MEMBERSHIPS 609.30 328.00MR CUTTING EDGE REC CENTER BUILDING EQUIPMENT MTCE SERVICE 328.00 14.72MS RELOCATION SERVICES WATER UTILITY G&A GENERAL CUSTOMERS 14.72 114.06MSC INDUSTRIAL SUPPLY CO.GENERAL FUND BALANCE SHEET INVENTORY 114.06 313.59MTI DISTRIBUTING CO GENERAL FUND BALANCE SHEET INVENTORY 32.10VEHICLE MAINTENANCE G&A POSTAGE 345.69 126.51MUNICIPAL EMERGENCY SERVICES FIRE OPERATIONS OPERATIONAL SUPPLIES 126.51 18,371.25NAC MECHANICAL & ELECTRICAL SERVICES MUNICIPAL BLDGS G&A IMPROVEMENTS OTHER THAN BUILDI 18,371.25 267.74NAGEL PATRICK WATER UTILITY G&A GENERAL CUSTOMERS 267.74 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 23 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 23Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 2,289.28NAPA (GENUINE PARTS CO)GENERAL FUND BALANCE SHEET INVENTORY 33.99SEWER UTILITY G&A GENERAL SUPPLIES 70.76GENERAL REPAIR GENERAL SUPPLIES 289.99GENERAL REPAIR SMALL TOOLS 2,684.02 218.04NELSON ERIN WATER UTILITY G&A GENERAL CUSTOMERS 218.04 249.95NOKOMIS SHOE SHOP PARK MAINTENANCE G & A OPERATIONAL SUPPLIES 249.95 64.95NORDBY MATT FIRE OPERATIONS UNIFORMS 64.95 77.52NORDSTROM, TIM FIRE OPERATIONS SEMINARS/CONFERENCES/PRESENTAT 77.52 149.04NORTH AMERICAN SAFETY INC PARK MAINTENANCE G & A GENERAL SUPPLIES 245.20NATURAL RESOURCES G & A GENERAL SUPPLIES 394.24 134.03NORTHERN AIRE POOLS INC WATER UTILITY G&A OPERATIONAL SUPPLIES 134.03 1,109.90NORTHLAND MECHANICAL CONTRACTORS INC FACILITIES MCTE G & A BUILDING MTCE SERVICE 1,109.90 7,073.70NYSTROM PUBLISHING COMM & MARKETING G & A PRINTING & PUBLISHING 4,390.20WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 11,463.90 65.55OFFICE DEPOT ADMINISTRATION G & A OFFICE SUPPLIES 4.62COMM & MARKETING G & A PRINTING & PUBLISHING 71.87FINANCE G & A OFFICE SUPPLIES 128.38COMM DEV PLANNING G & A OFFICE SUPPLIES 384.51POLICE G & A OFFICE SUPPLIES 57.17BLDG & ENERGY G & A OFFICE SUPPLIES 86.55PUBLIC WORKS G & A OFFICE SUPPLIES 62.45ENGINEERING G & A OFFICE SUPPLIES 80.63WESTWOOD G & A OFFICE SUPPLIES City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 24 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 24Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 941.73 9.82OGREN RACHEL WATER UTILITY G&A GENERAL CUSTOMERS 9.82 7.21OLANDER JACE WATER UTILITY G&A GENERAL CUSTOMERS 7.21 320.00-OLSEN CHAIN & CABLE CO INC ROUTINE MAINTENANCE EQUIPMENT PARTS 83.85DAMAGE REPAIR OTHER IMPROVEMENT SUPPLIES 196.20WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 1,090.68CAPITAL REPLACEMENT B/S INVENTORY 1,050.73 80.32OLSON MICHAEL WATER UTILITY G&A GENERAL CUSTOMERS 80.32 301.00ON SITE SANITATION FIELD MAINT OTHER CONTRACTUAL SERVICES 301.00 250.00OPITZ KIM & DAVE MAVIS CLIMATE INVESTMENT FUND G & A OTHER CONTRACTUAL SERVICES 250.00 39.96O'REILLY FIRST CALL GENERAL FUND BALANCE SHEET INVENTORY 39.96 80.00ORSTAD GWEN FITNESS PROGRAMS REFUNDS & REIMBURSEMENTS 80.00 95.37OSMUNDSON LAND CO. LLC WATER UTILITY G&A GENERAL CUSTOMERS 95.37 191.67OSVOG, LOWELL WATER UTILITY G&A GENERAL CUSTOMERS 191.67 247.65OVERHEAD DOOR CO FACILITIES MCTE G & A BUILDING MTCE SERVICE 247.65 453.24OXYGEN SERVICE COMPANY INC FIRE OPERATIONS OPERATIONAL SUPPLIES 453.24 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 25 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 25Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 234.00PACE ANALYTICAL SERVICES INC REILLY G & A OTHER CONTRACTUAL SERVICES 234.00 999.00PAPER ROLL PRODUCTS POLICE G & A OFFICE SUPPLIES 999.00 2,500.00PARENT BUILDERS ESCROWS DEMO / BROOKSIDE TRAFFIC 2,500.00 80.00PER MAR SECURITY SERVICES REC CENTER BUILDING GENERAL SUPPLIES 80.00 2,500.00PETTY CASH GENERAL FUND BALANCE SHEET PETTY 2,500.00 30.30PICKATIME, INC.COMM & MARKETING G & A GENERAL PROFESSIONAL SERVICES 30.30 5,500.00PINK CONSULTING, LLC.RACE EQUITY & INCLUSION G&A MEETING EXPENSE 5,500.00 808.49PIONEER RIM & WHEEL CO GENERAL FUND BALANCE SHEET INVENTORY 808.49 804.25PLAISTED COMPANIES INC PARK GROUNDS MAINTENANCE OTHER IMPROVEMENT SUPPLIES 804.25 1,928.00PLANTRA INC REFORESTATION FUND TREE REPLACEMENT 1,928.00 10,265.00POSTMASTERCOMM & MARKETING G & A POSTAGE 10,265.00 6,050.00PRAIRIE RESTORATIONS INC NATURAL RESOURCES G & A OTHER CONTRACTUAL SERVICES 6,050.00 339.25PRECISE MRM, LLC.PUBLIC WORKS OPS G & A OTHER CONTRACTUAL SERVICES 339.25WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 339.25SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 339.25STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 1,357.00 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 26 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 26Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 20,950.00PRECISION LANDSCAPE AND TREE, INC.TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICE 20,950.00 218.97PREMIUM WATERS INC FIRE OPERATIONS OPERATIONAL SUPPLIES 218.97 3,000.00PRIMACY STRATEGY GROUP LLC.DEVELOPMENT - EDA G&A LEGAL SERVICES 3,000.00 1,995.00PROFESSIONAL DEVELOPMENT ACADEMY, LLC. FIRE OPERATIONS TRAINING 1,995.00 990.00PSC ALLIANCE INC WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 990.00 35,724.00QUALITY FLOW SYSTEMS INC STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 35,724.00 1,200.00R AND L CONSTRUCTION, LLC.FACILITIES MCTE G & A BUILDING MTCE SERVICE 1,200.00 1,000.00RACE FORWARD RACE EQUITY & INCLUSION G&A GENERAL PROFESSIONAL SERVICES 1,000.00 225.56REALTY PROS LLC WATER UTILITY G&A GENERAL CUSTOMERS 225.56 203.99RED WING BUSINESS ADVANTAGE ACCOUNT FACILITIES MCTE G & A OPERATIONAL SUPPLIES 800.94PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 1,004.93 150.00RED WING STORE ENGINEERING G & A OPERATIONAL SUPPLIES 250.00PUBLIC WORKS OPS G & A OPERATIONAL SUPPLIES 400.00 287,846.77REDSTONE CONSTRUCTION, LLC.SIDEWALK & TRAILS BAL SHT RETAINAGE PAYABLE 962.50SIDEWALK & TRAILS G&A IMPROVEMENTS OTHER THAN BUILDI 288,809.27 12,185.13REFERRAL COLLISION INSURANCE FUND G&A UNINSURED LOSS City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 27 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 27Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 12,185.13 77.40REGENCY OFFICE PRODUCTS, LLC.POLICE G & A OFFICE SUPPLIES 77.40 51,750.80REHRIG PACIFIC CO SOLID WASTE G&A OTHER 51,750.80 61.75REMPFER TOMMY BLDG & ENERGY G & A BUILDING 61.75 4,874.80REPUBLIC SERVICES FACILITIES MCTE G & A GARBAGE/REFUSE SERVICE 4,292.06REC CENTER BUILDING GARBAGE/REFUSE SERVICE 9,166.86 48.91RICKE MICHAEL WATER UTILITY G&A GENERAL CUSTOMERS 48.91 424.94RIGID HITCH INC GENERAL FUND BALANCE SHEET INVENTORY 424.94 2,255.65ROBERT HALF TECHNOLOGY FIRE OPERATIONS GENERAL PROFESSIONAL SERVICES 4,799.75BLDG & ENERGY G & A GENERAL PROFESSIONAL SERVICES 7,055.40 26.93RODEHEFFER TYLER WATER UTILITY G&A GENERAL CUSTOMERS 26.93 385.83ROSEVILLE MIDWAY FORD GENERAL FUND BALANCE SHEET INVENTORY 385.83 1,117.50SAFE-FAST, INC.SEWER UTILITY G&A OPERATIONAL SUPPLIES 1,117.50 50.00SARMIENTO ORTEGA SERGIO BLDG & ENERGY G & A LICENSES 50.00 2,889.00SAVATREETREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICE 918.00TREE TRIMMING/PRUNING CLEANING/WASTE REMOVAL SERVICE 3,807.00 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 28 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 28Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 375.00SETS DESIGN INC.POLICE G & A GENERAL SUPPLIES 350.00POLICE G & A OPERATIONAL SUPPLIES 405.00COMMUNICATIONS/DISPATCH OPERATIONAL SUPPLIES 1,130.00 35,002.44SHADYWOOD TREE EXPERTS & LANDSCAPING TREE DISEASE PRIVATE CLEANING/WASTE REMOVAL SERVICE 23,310.00TREE DISEASE PUBLIC CLEANING/WASTE REMOVAL SERVICE 58,312.44 3,706.94SHAPCO PRINTING INC COMM & MARKETING G & A PRINTING & PUBLISHING 3,706.94 5,283.36SHI INTERNATIONAL CORP TECHNOLOGY REPLACEMENT OFFICE EQUIPMENT 5,283.36 238.67SHOGER KIRK WATER UTILITY G&A GENERAL CUSTOMERS 238.67 219.94SHORT ELLIOTT HENDRICKSON, INC.SIDEWALK & TRAILS G&A IMPROVEMENTS OTHER THAN BUILDI 219.94 57.36SHRED-IT ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICES 20.40FINANCE G & A GENERAL PROFESSIONAL SERVICES 593.09POLICE G & A OTHER CONTRACTUAL SERVICES 20.40BLDG & ENERGY G & A GENERAL PROFESSIONAL SERVICES 20.40ORGANIZED REC G & A GENERAL PROFESSIONAL SERVICES 711.65 932.00SIGNATURE MECHANICAL INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 932.00 200.00SILVERMAN CHAD CLIMATE INVESTMENT FUND G & A OTHER CONTRACTUAL SERVICES 200.00 235.37SKALLET, DAVID BLDG & ENERGY G & A MEETING EXPENSE 65.00BLDG & ENERGY G & A LICENSES 300.37 3.83SLOBODYANYUK SLAVA WATER UTILITY G&A GENERAL CUSTOMERS 3.83 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 29 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 29Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 1,971.06SLP FF ASSOC IAFF LOCAL #993 EMPLOYEE BENEFITS FUND BAL SHT UNION DUES 1,971.06 3,995.00SOCCER SHOTS SOCCER OTHER CONTRACTUAL SERVICES 3,995.00 229.00SOCIETY FOR HUMAN RESOURCE MANAGEMENTHUMAN RESOURCES SUBSCRIPTIONS/MEMBERSHIPS 229.00 200.00SONDAY TOM CLIMATE INVESTMENT FUND G & A OTHER CONTRACTUAL SERVICES 200.00 4,077.15SPECIALIZED ENVIRONMENTAL TECH INC SOLID WASTE G&A YARD WASTE SERVICE 4,077.15 850.13SPS COMPANIES INC FACILITIES MCTE G & A GENERAL SUPPLIES 127.06WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 977.19 1,439.11SRF CONSULTING GROUP INC SIDEWALK & TRAILS G&A IMPROVEMENTS OTHER THAN BUILDI 1,439.11 93.00STATE OF MINNESOTA ADMINISTRATION G & A LEGAL SERVICES 93.00 20.40STERICYCLE, INC.ADMINISTRATION G & A GENERAL PROFESSIONAL SERVICES 20.40 1,833.87STREICHER'S POLICE G & A OPERATIONAL SUPPLIES 1,311.65POLICE G & A POLICE EQUIPMENT 3,145.52 22.00STRUSS MICHELE FAMILY PROGRAMS REFUNDS & REIMBURSEMENTS 22.00 1,725.72SUBURBAN TIRE WHOLESALE GENERAL FUND BALANCE SHEET INVENTORY 1,725.72 941.06SUMMIT ENVIROSOLUTIONS INC WATER UTILITY G&A GENERAL PROFESSIONAL SERVICES 6,343.35REILLY G & A GENERAL PROFESSIONAL SERVICES 7,284.41 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 30 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 30Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 82.64SUNDELL AMY WATER UTILITY G&A GENERAL CUSTOMERS 82.64 100.62TELELANGUAGE INC COMM & MARKETING G & A OTHER CONTRACTUAL SERVICES 100.62 49.81TERMINAL SUPPLY CO VEHICLE MAINTENANCE G&A GENERAL SUPPLIES 39.90GENERAL REPAIR GENERAL SUPPLIES 89.71 85.19THE ESTATE OF LEONHARD ANSULIS-WEISNER WATER UTILITY G&A GENERAL CUSTOMERS 85.19 185.71THE MPX GROUP COMM & MARKETING G & A PRINTING & PUBLISHING 185.71 53.45THE SHERWINN WILLIAMS CO FACILITIES MCTE G & A GENERAL SUPPLIES 101.60MUNICIPAL BLDGS G&A IMPROVEMENTS OTHER THAN BUILDI 155.05 616.00THE SIGN PRODUCERS INC FACILITIES MCTE G & A GENERAL SUPPLIES 616.00 90.17THE STANDARD ADMINISTRATION G & A LIFE INSURANCE 93.47ADMINISTRATION G & A LONG TERM DISABILITY 70.87HUMAN RESOURCES LIFE INSURANCE 71.06HUMAN RESOURCES LONG TERM DISABILITY 82.17COMM & MARKETING G & A LIFE INSURANCE 80.51COMM & MARKETING G & A LONG TERM DISABILITY 90.55IT G & A LIFE INSURANCE 88.83IT G & A LONG TERM DISABILITY 113.41ASSESSING G & A LIFE INSURANCE 112.83ASSESSING G & A LONG TERM DISABILITY 119.63FINANCE G & A LIFE INSURANCE 122.48FINANCE G & A LONG TERM DISABILITY 287.27COMM DEV G & A LIFE INSURANCE 297.45COMM DEV G & A LONG TERM DISABILITY 101.07FACILITIES MCTE G & A LIFE INSURANCE 103.64FACILITIES MCTE G & A LONG TERM DISABILITY 1,093.85POLICE G & A LIFE INSURANCE City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 31 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 31Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 1,084.54POLICE G & A LONG TERM DISABILITY 125.10COMMUNICATIONS/DISPATCH LIFE INSURANCE 122.47COMMUNICATIONS/DISPATCH LONG TERM DISABILITY 594.49FIRE OPERATIONS LIFE INSURANCE 589.33FIRE OPERATIONS LONG TERM DISABILITY 330.96BLDG & ENERGY G & A LIFE INSURANCE 340.59BLDG & ENERGY G & A LONG TERM DISABILITY 35.69SUSTAINABILITY G&A LIFE INSURANCE 35.01SUSTAINABILITY G&A LONG TERM DISABILITY 87.12PUBLIC WORKS G & A LIFE INSURANCE 85.41PUBLIC WORKS G & A LONG TERM DISABILITY 245.88ENGINEERING G & A LIFE INSURANCE 253.51ENGINEERING G & A LONG TERM DISABILITY 246.76PUBLIC WORKS OPS G & A LIFE INSURANCE 244.64PUBLIC WORKS OPS G & A LONG TERM DISABILITY 36.16CABLE TV G & A LIFE INSURANCE 40.82CABLE TV G & A LONG TERM DISABILITY 21.84HOUSING REHAB G & A LIFE INSURANCE 21.48HOUSING REHAB G & A LONG TERM DISABILITY 125.98WATER UTILITY G&A LIFE INSURANCE 124.98WATER UTILITY G&A LONG TERM DISABILITY 49.53SEWER UTILITY G&A LIFE INSURANCE 48.49SEWER UTILITY G&A LONG TERM DISABILITY 46.74SOLID WASTE G&A LIFE INSURANCE 45.90SOLID WASTE G&A LONG TERM DISABILITY 94.11STORM WATER UTILITY G&A LIFE INSURANCE 92.14STORM WATER UTILITY G&A LONG TERM DISABILITY 7,787.11EMPLOYEE BENEFITS FUND G&A LIFE INSURANCE 150.24ORGANIZED REC G & A LIFE INSURANCE 152.76ORGANIZED REC G & A LONG TERM DISABILITY 180.59PARK MAINTENANCE G & A LIFE INSURANCE 177.05PARK MAINTENANCE G & A LONG TERM DISABILITY 19.94NATURAL RESOURCES G & A LIFE INSURANCE 19.62NATURAL RESOURCES G & A LONG TERM DISABILITY 79.88WESTWOOD G & A LIFE INSURANCE 78.37WESTWOOD G & A LONG TERM DISABILITY 106.30REC CENTER SALARIES LIFE INSURANCE 104.16REC CENTER SALARIES LONG TERM DISABILITY 93.98VEHICLE MAINTENANCE G&A LIFE INSURANCE 91.87VEHICLE MAINTENANCE G&A LONG TERM DISABILITY 17,230.80 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 32 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 32Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 7.10THE UPS STORE WATER UTILITY G&A OPERATIONAL SUPPLIES 7.10 113,114.70THOMAS AND SONS CONSTRUCTION, INC. STREET CAPITAL PROJ BAL SHEET RETAINAGE PAYABLE 113,114.70 59.54THOMPSON DANIEL WATER UTILITY G&A GENERAL CUSTOMERS 59.54 335.98THOMSON REUTERS WEST PAYMENT CENTER POLICE G & A OTHER CONTRACTUAL SERVICES 335.98 741.78THYSSENKRUPP ELEVATOR REC CENTER BUILDING BUILDING MTCE SERVICE 741.78 1,528.25TIMESAVER OFF SITE SECRETARIAL ADMINISTRATION G & A OTHER CONTRACTUAL SERVICES 190.50COMM DEV PLANNING G & A OTHER CONTRACTUAL SERVICES 454.00SUSTAINABILITY G&A OTHER CONTRACTUAL SERVICES 2,172.75 11.64TOLL GAS & WELDING SUPPLY WATER UTILITY G&A GENERAL SUPPLIES 11.64 2,154.50TOOLE DESIGN GROUP, LLC.ENGINEERING G & A GENERAL PROFESSIONAL SERVICES 2,154.50 56.00TOTAL COMFORT BLDG & ENERGY G & A MECHANICAL 56.00 4,250.00TOUCHSTONE IQ, LLC SUSTAINABILITY G&A GENERAL PROFESSIONAL SERVICES 4,250.00 2.50TRAN KIM BLDG & ENERGY G & A DUE TO OTHER GOVTS 157.50BLDG & ENERGY G & A PLUMBING 160.00 201.33TRI STATE BOBCAT ROUTINE MAINTENANCE EQUIPMENT PARTS 201.33STORM WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 201.34PARK MAINTENANCE G & A GENERAL SUPPLIES 604.00 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 33 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 33Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 4,992.00TRITECH SOFTWARE SYSTEMS POLICE G & A TRAINING 4,992.00 2,873.72TWIN CITY GARAGE DOOR CO FACILITIES MCTE G & A BUILDING MTCE SERVICE 2,873.72 228.93TWIN CITY SAW CO GENERAL FUND BALANCE SHEET INVENTORY 228.93 3,489.00U.S. CONFERENCE OF MAYORS ADMINISTRATION G & A SUBSCRIPTIONS/MEMBERSHIPS 3,489.00 1,272.00UHL CO INC PARK BUILDING MAINTENANCE OTHER CONTRACTUAL SERVICES 1,272.00 199.95ULTIMATE SAFETY CONCEPTS INC FIRE OPERATIONS REPAIRS 199.95 7,925.00UNIVERSAL PAINTING & DRYWALL, INC. PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 7,925.00 637.50US AUTOFORCE GENERAL FUND BALANCE SHEET INVENTORY 637.50 2,823.30UTILITY LOGIC LOCATES/GOPHER ONE OTHER IMPROVEMENT SUPPLIES 2,823.30 3,250.00VALLEY LAKE FLOORING CO INC PARK IMPROVE CAPITAL PROJECT IMPROVEMENTS OTHER THAN BUILDI 3,250.00 10,774.09VALLEY-RICH CO INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 10,774.09 260.00VASASAR RYAN WATER UTILITY G&A GENERAL CUSTOMERS 260.00 20.00VERIFIED CREDENTIALS LLC.HUMAN RESOURCES RECRUITMENT 20.00 12,110.45VERIZONIT G & A DATACOMMUNICATIONS City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 34 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 34Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description 50.04SEWER UTILITY G&A TELEPHONE 7,952.55CELLPHONES, IPADS, ETC.TELEPHONE 20,113.04 4,500.00VETERAN ELECTRIC RECREATION OUTDOOR CENTER OPERATIONAL SUPPLIES 4,500.00 337.65VOIGT JUDY NATURAL RESOURCES G & A LANDSCAPING MATERIALS 337.65 3,248.00WALKER DESIGN STUDIO STREET CAPITAL PROJ G & A OTHER CONTRACTUAL SERVICES 14.00PAVEMENT MANAGEMENT G&A OTHER CONTRACTUAL SERVICES 119.00WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 119.00STORM WATER UTILITY G&A OTHER CONTRACTUAL SERVICES 3,500.00 804.10WARNING LITES OF MN INC WATER UTILITY G&A OTHER IMPROVEMENT SERVICE 804.10 484.75WASTE MANAGEMENT OF MN, INC.SEWER UTILITY G&A OTHER CONTRACTUAL SERVICES 484.75 695.94WINSUPPLY OF EDEN PRAIRIE WIRING REPAIR OTHER IMPROVEMENT SUPPLIES 695.94 6,305.00WSB ASSOC INC ENGINEERING G & A GENERAL PROFESSIONAL SERVICES 6,305.00 15,143.49XCEL ENERGY FACILITIES MCTE G & A ELECTRIC SERVICE 23,636.02PUBLIC WORKS OPS G & A ELECTRIC SERVICE 35,334.83WATER UTILITY G&A ELECTRIC SERVICE 1,543.71REILLY G & A ELECTRIC SERVICE 63.65SEWER UTILITY G&A ELECTRIC SERVICE 2,089.01STORM WATER UTILITY G&A ELECTRIC SERVICE 5,332.64PARK MAINTENANCE G & A ELECTRIC SERVICE 20,717.76REC CENTER BUILDING ELECTRIC SERVICE 103,861.11 506.51ZACKS INC PUBLIC WORKS OPS G & A SMALL TOOLS 506.51 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 35 6/1/2022CITY OF ST LOUIS PARK 7:20:30R55CKS2 LOGIS400V 35Page -Council Check SummaryNote: Payment amount may not reflect the actual amount due to data sequencing and/or data selection. 5/27/20224/30/2022 - Amount ObjectVendorBU Description Report Totals 3,106,751.74 City council meeting of June 6, 2022 (Item No. 4a) Title: Approval of city disbursements Page 36 Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4b Executive summary Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) Recommended action: Motion to adopt Resolution approving the Contract for Private Redevelopment and the AHTF deferred loan between the city and CommonBond Communities related to the Rise on 7 development. Policy consideration: Does city council wish to approve the proposed Contract for Private Redevelopment with CommonBond Communities and to utilize a deferred loan for $1.8 million from the city’s Affordable Housing Trust Fund (AHTF) to facilitate the Rise on 7 development? Summary: Affordable housing developer CommonBond Communities acquired the former Prince of Peace Lutheran church property at 8115 MN Highway 7 in 2020 with plans to construction an all-affordable, five-story, 120-unit multifamily housing development with a 6,600 SF daycare. The proposed $40.7 million development includes a mix of all-affordable one-, two-, and three-bedroom units ranging from 30% to 60% area median income. If CommonBond Communities sells, refinances or resyndicates the affordable building prior to the deferred loan being repaid, they will be required to repay the deferred loan in full. These terms are included in the Contract for Private Redevelopment between the Redeveloper, the EDA, and the City of St. Louis Park. Typically, only the EDA is required to approve redevelopment contracts. However, because the recommended financial assistance includes funding from the AHTF and the terms and conditions of the AHTF assistance are included in the Redevelopment Contract, the City of St. Louis Park is also required to approve the contract and the AHTF amount. Financial or budget considerations: Under the proposed Contract for Private Redevelopment, the Redeveloper agrees to construct the proposed Rise on 7 development as specified under the PUD, and the EDA agrees to provide a $1.8 million deferred loan from the city’s Affordable Housing Trust Fund (AHTF) to reimburse the Redeveloper for specified public redevelopment and affordable housing costs in connection with the project. The EDA would establish a new housing TIF district and would retain 100% of the annual tax increment generated over 26 years to repay portions of the AHTF loan back sooner. In addition, CommonBond would repay the outstanding loan balance in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. The terms and amount of AHTF assistance are specified within the redevelopment contract with Real Estate Equities which is also scheduled for consideration by the EDA on June 6, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; resolution Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager City council meeting of June 6, 2022 (Item No. 4b) Page 2 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) Discussion Background: The existing building at 8115 State Highway No. 7 was built in 1955 and used as a place of worship and a daycare. The site was acquired by CommonBond Communities in 2020 from the former Prince of Peace Lutheran Church congregation. The Prince of Peace congregation merged with another local church and desired to leave behind a legacy of affordable housing for the community. The existing building is currently vacant and would be demolished. The daycare space does not meet current building and fire code requirements for occupancy. CommonBond Communities (Redeveloper) proposes to remove the existing building and develop the site with an all-affordable, five-story mixed-use building. The $40.7 development would include a 6,600 square foot daycare and 120 dwelling units that would be affordable at a range of 30 to 60 percent of the area median income (AMI). As proposed, the daycare will provide childcare at affordable rates for half the children that attend. Approximately fifteen of the daycare spaces will be reserved for families living on the property. The plan proposes accessing the site from the Highway 7 frontage road and provides parking in a surface lot on the north side of the building along with one level of structured parking on the ground floor. The plan includes two outdoor play areas, one for the daycare and another for residents, as well as an outdoor recreation area. Other proposed site improvements include new landscaping, installation of new sidewalk connections, an underground stormwater management system and a 20kw rooftop solar array. CommonBond Communities completed a phase I and phase II environmental assessment of the subject site. It indicates debris from the construction of the Highway 7 was likely left on the property. Such debris will need to be removed and any residual contaminants remediated. Additionally, at least one underground storage tank was identified on the property. The tank will need to be properly removed and disposed of prior to the existing building’s demolition. On June 21, 2021, city council approved a comprehensive plan amendment to re-guide the site’s land use from civic to high density residential, and a preliminary and final plat. On July 6, 2021, city council approved a preliminary and final planned unit development zoning district to allow the proposed all-affordable, multi-family residential development and daycare. As approved, 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. The development has been awarded a $1.4 million-dollar Livable Communities Demonstration grant from the Metropolitan Council, a $950,000 Transit-oriented development grant from Hennepin County, and a 15-year rental operating subsidy from Hennepin County for the 30 percent area median income units. On January 11, 2022, CommonBond was awarded $20,576,600 in tax exempt revenue bonds from Minnesota Management and Budget and the necessary Low Income Housing Tax Credits (LIHTC) from Minnesota Housing. These bond allocations require the developer to receive all financial obligations within 180 days. The deadline for CommonBond to close on all its project financing is July 8, 2022. These bonds require a covenant that the housing be kept affordable City council meeting of June 6, 2022 (Item No. 4b) Page 3 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) for at least 30-years, which is four years longer than required by the city’s inclusionary housing policy. The proposed housing development includes a mix of one-, two-, and three-bedroom units. The building’s mix of unit types is as follows: Unit Type 30% AMI 40% AMI 50% AMI 60% AMI Total units 1-bedroom 14 22 21 57 2-bedroom 2 37 39 3-bedroom 3 21 24 Total 19 22 21 58 120 Inclusionary housing: The proposed apartment development exceeds the city’s inclusionary housing policy as amended in October 2021 and creates an all-affordable development with rents ranging from 30 percent area median income (AMI) to 60 percent AMI. Per the Metropolitan Council, the 30 percent AMI for a family of four is $31,450, the 50 percent AMI for a family of four is $52,450, and the 60 percent AMI for a family of four is $62,940. CommonBond plans to include 24 three-bedroom units in the building’s unit mix, including three three-bedroom units affordable at 30 percent AMI to further the city’s goals for affordable family-sized housing. By covenant, the housing would be kept affordable for at least 30 years per the requirements of the LITHC allocation. Climate Action Plan: The development will exceed the city’s Green Building Policy as amended in July 2020 and will follow Enterprise Green Communities as its design tool. The development will also include the following sustainable features: • A 20kw rooftop solar array • Increased efficiency in building envelope, heating and cooling equipment, plumbing and light fixtures • On site stormwater retention system • Charging stations for electric vehicles • Bioswale and native plantings along the western yard of the property The Redeveloper has completed energy modeling to ensure the building will meet the requirements of SB 2030 (current requirement is an 80% reduction in energy compared to a standard constructed building). CommonBond has hired Building Knowledge to certify the building to MN Green Communities and Cain Thomas for building commissioning. Additionally, the development will provide 22 level 1 and one level 2 charging stations for residents, and conduit serving an additional 17 parking spaces. There will be 18 exterior bike loops at the north, south and daycare building entrances, and three bike storage rooms containing 42 spaces each for a total of 144 bicycle parking spaces. The site is within ¼ mile of Metro Transit Route 17 and approximately ½ mile from the future Blake Road LRT station which will provide efficient and reliable public transit for building City council meeting of June 6, 2022 (Item No. 4b) Page 4 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) residents. This means tenants will not need to rely on a single-occupancy vehicle, resulting in reduced vehicle miles traveled and less emissions. Racial equity and inclusion: As previously noted, the proposed development will be 100 percent affordable to households with incomes ranging from 30 percent to 60 percent of AMI, providing qualified families with equal access to new, quality housing. CommonBond serves residents of all ages, races, sexual orientations, and geographies (rural, suburban, and urban). In addition, CommonBond believes that their leadership team and the Board of Directors profile should reflect CommonBond’s resident population and has been working diligently over the past ten years to increase leadership and board representation of BIPOC communities. To enhance representation of diverse communities on their board, they launched the Board Associates program in 2017. The program expands the opportunity for influence, network building, and leadership experience to those who are not traditionally considered board candidates. It builds a cohort of young people (under age 35) who are women, people of color, from low-income families, social and non-profit sector employees, and/or immigrants and provides board experience and mentoring opportunities to ultimately increase the nonprofit leadership talent pool in Minnesota and the Upper Midwest. CommonBond believes that a diversity of perspectives makes for stronger organizations that better understand of the needs of their constituents and the impact of their work. A diversity of perspectives on boards also brings improved cultural competency in policy making and more prudent decision-making. Two of CommonBond’s six executive team members are people of color, and CommonBond’s senior leadership team (director-level and above) is made up of 17% people of color, all Black/African American. Across CommonBond, 41% of staff are people of color, an increase from 26% ten years ago. Due to the submission timing of this development’s planning applications (March 3, 2022), the EDA’s DEI Policy is not in effect for this development. However, the Redeveloper has agreed to the inclusion of business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in the construction of the development. City council meeting of June 6, 2022 (Item No. 4b) Page 5 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) Rendering of proposed Rise on 7 building. Pending approval of its financing, the Redeveloper plans to commence construction of the building in summer 2022 and complete it by mid-2024. CommonBond Companies would own and manage the residential development for the long term. Redeveloper’s request for public financing assistance and TIF application review: Due to decreased rental income from 100% of the units over 26 years, and the extraordinary site preparation costs outlined above, 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 infeasible without public financial assistance. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the development’s pro forma to determine what, if any, level of financial assistance was necessary for it to become financially feasible. The EDA received a staff report detailing the TIF Application at the April 11, 2022 study session along with a recommendation for the appropriate amount of financial assistance for which there was consensus support. Level and type of financial assistance: In summary, the Redeveloper’s sources and uses statement, income and expense estimates, financing assumptions, cash flow projections, and investor rate of return (ROR) related to the proposed development were reviewed by staff and Ehlers (the EDA’s financial consultant). Based upon its analysis, Ehlers determined that a 40- year deferred loan in the amount of $1.8 million from the city’s Affordable Housing Trust Fund (AHTF) is necessary to enable Rise on 7 to become financially feasible. The AHTF assistance would be committed to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of site demolition and clearance, soil remediation and correction as well as construction of affordable housing). The deferred loan would be provided to the Redeveloper’s title company upon financial closing. The Redeveloper’s title company would then disburse the funds to the Redeveloper upon Redeveloper’s delivery of evidence of $1.8 million in Public Redevelopment Costs. City council meeting of June 6, 2022 (Item No. 4b) Page 6 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) To repay and resplenish the AHTF back sooner than 40-years, Ehlers recommends establishing a new housing TIF district on the site. The tax increment generated from the district would be used to pay back a portion of the AHTF loan over 26 years on a "pay-as-you-go" basis, through the establishment of an interfund loan. CommonBond would repay the deferred loan in full plus 1.00% interest, less any tax increment received at the earlier of 40-years, sale, refinance, or re- syndication. Graphic showing the various funding sources and repayment paths Housing TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. Property value and taxes: Until recently, the subject redevelopment property has been tax exempt from property taxes as the site was owned and used as a religious institution before it was sold to CommonBond Communities. The current taxable market value of the subject redevelopment property is $2,735,000. This would be the proposed TIF district’s Base Value. The estimated market value upon the proposed development’s completion (for TIF estimation purposes) is estimated at approximately $21 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the interfund loan until it is paid off or a triggering event happens where CommonBond is required to repay the deferred loan in full plus interest. The city, county and school district would receive property taxes collected on the subject site’s Base Value. Proposed contract for private redevelopment: Key business terms for providing the proposed financial assistance were provided in the staff report for the May 9, 2022 study session. The City council meeting of June 6, 2022 (Item No. 4b) Page 7 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) proposed contract for private redevelopment specifies the mutual obligations between the EDA and CommonBond Communities (“Redeveloper”) as well as the terms and conditions of the financial assistance to be provided. The following is a summary of the business terms in the proposed contract consistent with EDA policy, past practices, and previous discussions with the EDA/city council. The Redevelopment Property consists of the property highlighted in the aerial photo below. “Redevelopment Property” for proposed Rise on 7 1. The Redeveloper agrees to construct an all-affordable multifamily rental housing development on the Redevelopment Property consisting of a 120-unit apartment building with approximately 74 underground parking stalls, and approximately 6,600 square feet of space for an early childcare center (the “Development”). The Development shall include a mix of one-bedroom, two-bedroom, and three-bedroom units (the “Minimum Improvements”). 2. The EDA agrees to reimburse the Redeveloper for a portion of its Public Redevelopment Costs incurred during construction of the all-affordable Development through a $1.8 million, 40-year deferred loan from the city’s Affordable Housing Trust Fund (AHTF). • The Redeveloper shall repay the outstanding principal balance of the Interfund Loan plus interest at the rate of 1.00% upon the earlier of (i) 40 years, (ii) refinancing/re-syndication of the Minimum Improvements, (iii) sale or transfer of the Minimum Improvements, or (iv) in the event of certain uncured defaults under the Contract (the “Repayment Obligation”). City council meeting of June 6, 2022 (Item No. 4b) Page 8 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) • The Redeveloper’s repayment obligation shall be secured by a promissory note, mortgage, and a guaranty from CommonBond Communities to be released upon delivery of a certificate of completion by the EDA. 3. The EDA agrees to provide the deferred loan to the Redeveloper’s title company to be held in escrow until the Redeveloper has closed on financing for the Development, and provided evidence that restrictive covenants, the mortgage securing the deferred loan, and the assessment agreement have been recorded in Hennepin County. 4. The Redeveloper’s title company will disburse the funds to the Redeveloper upon Redeveloper’s delivery of evidence of $1.8 million in development costs defined as the construction of affordable housing, demolition costs, and costs of asbestos removal. 5. In order to provide the AHTF deferred loan to the Redeveloper, and repay the AHTF earlier than 40 years, the EDA agrees to establish a new housing TIF district consisting of one parcel: 5118 Highway 7. 6. The EDA will issue the Certificate of Completion upon completion of the Minimum Improvements and Redeveloper providing the EDA with a statement specifying the Public Redevelopment Costs incurred by the Redeveloper related to the Development along with evidence that each identified Public Redevelopment Cost has been paid or incurred by the Redeveloper. 7. Construction of the Development will commence by August 31, 2022, and will be substantially completed by August 31, 2024. 8. Redeveloper will construct the Development and maintain it in good condition until the Contract terminates. 9. Redeveloper will comply with the requirements of the TIF Act and the City’s Inclusionary Housing Policy in effect at the time of its planning applications (April 19, 2021) as to income limitations. The Redeveloper will submit an Inclusionary Housing Plan in accordance with the Inclusionary Housing Policy. Specifically, the Redeveloper will agree to a 26-year covenant beginning on the date a certificate of occupancy is issued providing that (i) at least 40% of the units will be affordable to households at or below 60% AMI for purposes of complying with the TIF Act ; (ii) at least 58 of the units will be affordable to households at or below 60% AMI; (iii) at least 21 units will be affordable to households at or below 50% AMI (21 one-bedroom units); (iv) at least 22 units will be affordable to households at or below 40% AMI (22 one-bedroom units); and (v) at least 19 units will be affordable to households at or below 30% AMI (14 one-bedroom units, two two-bedroom units, and three three-bedroom units). 10. Redeveloper will use reasonable efforts to meet the following business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in conjunction with construction of the Development: City council meeting of June 6, 2022 (Item No. 4b) Page 9 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) Participation Goals Women BIPOC Business Enterprises 6% 13% Workforce 6% 32% Participation goals would be applied to the Development as a whole and pertain to the total amount of construction and related contracts. Redeveloper will provide and use reasonable efforts to cause its contractors/subcontractors to provide certain information and resources to prospective contractors/subcontractors before bidding; to implement procedures designed to notify women and people of color about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance report(s), all as more particularly set forth in the Contract. Failure to achieve these goals would not constitute a breach or default by Redeveloper. 11. Redeveloper will comply with the city’s Green Building Policy as in place at the time of submittal for planning application (April 19, 2021) and shall use Enterprise Green Communities/Energy Star Program with the Minnesota Overlay as its design rating system to meet the requirements of the policy. Among the sustainability features to be included are: • A rooftop solar array generating at least 20kw • Increased efficiency in building envelope, heating and cooling equipment, plumbing and light fixtures. • On site stormwater retention system • Charging stations for electric vehicles including: o 22 level 1 EV stations o One level 2 EV stations o Conduit for 17 EV stations • Bioswale and native plantings along the western yard of the property 12. The Development will contain a daycare and will provide childcare at affordable rates for half the children that attend. Fifteen of the daycare spaces will be reserved for residents of the Development. 13. Redeveloper will install certain improvements in conformity with the city’s Planning Development Contract. 14. Redeveloper and EDA mutually agree to enter into a Minimum Market Value Assessment Agreement setting a minimum property tax value for the Development. 15. Redeveloper agrees to not discriminate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the Development Property or Minimum Improvements. 16. Redeveloper agrees to certify that the Minimum Improvements have been constructed in accordance with the Redevelopment Contract and all applicable local, state, and federal laws and regulations (including but not limited to environmental, zoning, building code, labor, public health laws and regulations, and compliance with fair wage, City council meeting of June 6, 2022 (Item No. 4b) Page 10 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) wage theft, and employee safety laws). Additionally, all costs related to the Minimum Improvements and the development of the Redevelopment Property, including payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the Redeveloper’s request for the Certificate of Completion and written lien waivers have been provided from each contractor for all work done and for all materials furnished by it for construction or installation of the Minimum Improvements. 17. Redeveloper agrees to pay reasonable administrative costs incurred by the EDA, including consultant and attorney fees, in connection with the Development. 18. If Redeveloper defaults under the Contract, the EDA may (among other things) terminate the TIF Note and the Contract and require the Redeveloper to repay the deferred loan plus interest. 19. The Contract and TIF Note will terminate upon the earliest of the final payment of principal and interest on the TIF Note, the required decertification of the TIF District, or an uncured Event of Default under the Contract. A copy of the redevelopment contract is available for review in the community development department. Summary: As indicated in the April 11, 2022 study session staff report, the proposed $40.7 million Rise on 7 development has a verified financial gap and is not financially feasible but for the provision of financial assistance from the EDA and city. To offset this gap, it is proposed that the EDA consider providing $1.8 million in financial assistance from the city’s Affordable Housing Trust Fund (AHTF) in the form of a 40-year deferred loan. The EDA would then retain 100% of the annual tax increment generated from a new housing TIF district over 26 years to repay an estimated $1.57 million of the AHTF loan. In addition, CommonBond would repay the remaining outstanding balance in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. Providing financial assistance to the proposed Rise on 7 development provides numerous public benefits and makes it possible to: • further diversify the city’s housing stock with a new, modern, multi-family apartment offering consistent with the city’s strategic priorities and Comprehensive Plan. • provide the community with 120 additional affordable housing units for 30 years at or below 60% AMI including: 19 units affordable to households at 30% AMI, 22 units affordable at 40% AMI, 21 units affordable at 50% AMI, and 58 units affordable to households at 60% AMI. • provide the community with affordable family-sized units including 24 affordable three- bedroom units, including three three-bedroom units affordable at 30% AMI. • provide the community with a new 6,600 square foot daycare with half the spaces reserved for affordable childcare. • facilitate $40.7 million of new investment in the city. • further the city’s sustainability goals by developing a building to Enterprise Green Community standards and providing a rooftop solar array capable of generating up to 20 kw. City council meeting of June 6, 2022 (Item No. 4b) Page 11 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) • provide additional residential density near the Metro Greenline Extension (formerly SWLRT) Blake Avenue Station. • redevelop environmentally impacted property. • construct quality buildings (e.g. sound architectural design, quality construction and materials) with underground parking, public features, and sustainable elements. • provide evidence to the State of Minnesota Legislature regarding the benefits provided to affordable housing projects by utilizing pooled TIF funds to help fund the city’s Affordable Housing Trust Fund. CommonBond Communities’ proposed Rise on 7 development meets requirements of the city’s AHTF Policy for utilization of those funds. Providing this funding upfront and reimbursing the city’s AHTF from pooled TIF generated by a new housing TIF district, allows the project to move forward while also allowing the trust fund to be repaid sooner. The proposed development meets the minimum and desired qualifications, and the city’s objectives for the provision of Tax Increment Financing as specified in the city’s TIF Policy. The proposed amount of financial assistance is consistent with other developments the EDA has previously provided for other all- affordable housing developments. Recommendation: Staff supports approval of the proposed contract for private redevelopment with CommonBond Communities as outlined above to advance the Rise on 7 development. The attached resolution of approval allows for modifications to the contract that do not alter the substance of the transaction without bringing the contract back to the city council for amendment. Next steps: Upon execution of the redevelopment contract, the Redeveloper plans to close on its project financing by July 8, 2022 and commence construction shortly thereafter. Previous/future actions Governing body Date Establishment of the Rise on 7 TIF District • TIF Housing District/TIF Plan • Interfund loan for AHTF and Administrative costs EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7. EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7 and AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 City council meeting of June 6, 2022 (Item No. 4b) Page 12 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) Resolution No. 22-______ Resolution approving contract for private development and an interfund loan from the Affordable Housing Trust Fund for the Rise on 7 development Be it resolved by the City Council (the “City Council”) of the City of St. Louis Park, Minnesota (the “City”) as follows: Section 1. Recitals; Approval and Authorization. 1.01. Recitals. (a) The City and the St. Louis Park Economic Development Authority (the “Authority”) have heretofore approved the establishment of the Rise on 7 Tax Increment Financing District (the “TIF District”), a housing district within Redevelopment Project No. 1 (the “Project”), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project in accordance with Minnesota Statutes, Section 469.174 through 469.1794 (the “TIF Act”). (b) The City has heretofore created an Affordable Housing Trust Fund, which is funded in part with pooled tax increment derived from property within certain tax increment financing districts within the City as provided in Laws of Minnesota 2022, First Special Session, Chapter 14, Article 9, Section 5. The City is authorized to make loans from its Affordable Housing Trust Fund to provide funding for affordable housing developments in the City. (c) To facilitate the development of certain property within the Project and TIF District, the Authority, the City, and CB SLP Housing Limited Partnership, a Minnesota limited partnership (the “Developer”), have negotiated a Contract for Private Development (the “Agreement”) which provides for the construction by the Developer of an approximately 120-unit affordable rental housing facility, underground parking, and an early childcare center (the “Minimum Improvements”) on certain property legally described therein (the “Development Property”). The Agreement includes the provision of a deferred loan from the Authority in the principal amount of $1,800,000 (the “Deferred Loan”) to the Developer from proceeds of an interfund loan made from the City’s Affordable Housing Trust Fund to the Authority. The Deferred Loan will reimburse the Developer for certain costs of the Minimum Improvements including the costs of constructing affordable housing, demolition costs and costs of asbestos removal on the Development Property (the “Public Development Costs”). (d) The Authority may incur certain costs related to the TIF District, which costs may be financed on a temporary basis from available Authority funds. Under Section 469.178, subdivision 7 of the TIF Act, the Authority is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. City council meeting of June 6, 2022 (Item No. 4b) Page 13 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) (e) The Authority has determined to pay for the Public Development Costs through the Deferred Loan, which costs may be financed on a temporary basis from Authority funds available for such purposes. (f) In order to finance the Public Development Costs, the Authority has requested that the City provide funds from the City’s Affordable Housing Trust Fund in the principal amount of up to $1,800,000 to the Authority through an interfund loan (the “Interfund Loan”). (g) The Authority intends to reimburse the City from tax increments derived from the property within the TIF District in accordance with the terms of this resolution, the Agreement, and a resolution adopted by the Board of Commissioners of the Authority on the date hereof (the “EDA Interfund Loan Resolution”) which is incorporated herein by reference. (h) The City will make the Interfund Loan to the Authority from the City’s Affordable Housing Trust Fund in accordance with the terms of this resolution, the Agreement, and the EDA Interfund Loan Resolution. 1.02. Approval of Agreement. (a) The City Council hereby approves the Agreement in substantially the form presented to the City Council, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Agreement (together, the “Development Documents”). (b) The City Council hereby authorizes the Mayor and City Manager, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the City, and to carry out, on behalf of the City, the City’s obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the form on file with the City and the approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the City and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. (c) In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the City Council by any duly designated acting official, or by such other officer or officers of the City Council as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Development Documents, the officers and employees of the City Council are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the City Council to implement the Development Documents, including without limitation the issuance of tax increment revenue obligations thereunder City council meeting of June 6, 2022 (Item No. 4b) Page 14 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. Section 2. Interfund Loan from the Affordable Housing Trust Fund to Authority. (a) The City Council hereby authorizes the Interfund Loan in the principal amount of up to $1,800,000, which will be made from the City’s Affordable Housing Trust Fund in order to support the construction of affordable housing in the City. The Interfund Loan shall be made in accordance with the terms of the EDA Interfund Loan Resolution and the Agreement and repaid from Available Tax Increment (as defined therein) in accordance with the Interfund Loan Resolution and the Agreement. (b) Principal and interest (the “Payments”) on this Interfund Loan shall be paid semiannually on each February 1 and August 1 (each a “Payment Date”), commencing on the first Payment Date on which the Authority has Available Tax Increment (as defined in the EDA Interfund Loan Resolution), or on any other dates determined by the Executive Director of the Authority, through the date of last receipt of tax increment from the TIF District. The Authority will also apply payments, if any, of the Deferred Loan from the Developer or an affiliate thereof in accordance with the Agreement and the EDA Interfund Loan Resolution towards the repayment of the Interfund Loan. (c) The Interfund Loan shall be paid prior to any pay-as-you-go notes or contracts secured in whole or in part with Available Tax Increment, and any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment; provided, however, that this Interfund Loan shall be repaid with Available Tax Increment on a parity basis with the interfund loan approved by the Board of Commissioners of the Authority on the date hereof in the principal amount of $50,000 in accordance with the EDA Interfund Loan Resolution relating to an interfund loan for administrative costs of the TIF District. (d) The City may at any time make a determination to forgive the outstanding principal amount and accrued interest on this Interfund Loan to the extent permissible under law. (e) The City may from time to time amend the terms of this resolution to the extent permitted by law. Section 3. Effective Date. This resolution shall be effective upon approval. City council meeting of June 6, 2022 (Item No. 4b) Page 15 Title: Contract for Private Redevelopment and AHTF disbursement with CommonBond Communities related to the Rise on 7 development (Ward 2) Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4c Executive summary Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) Recommended action: Motion to adopt Resolution approving the Contract for Private Redevelopment and the AHTF deferred loan between the city and Real Estate Equities (St. Louis Park AH I, LLLP) related to the Wooddale Avenue Apartments development. Policy consideration: Does city council wish to approve the proposed Contract for Private Redevelopment with Real Estate Equities and to utilize a deferred loan for $850,000 from the city’s Affordable Housing Trust Fund (AHTF) to facilitate the Wooddale Avenue Apartment development? Summary: Real Estate Equities (REE and “Redeveloper”) has a purchase agreement to acquire the Aldersgate Methodist Church property at 3801 Wooddale Avenue. REE’s plans for the site include removal of the church building, and construction of a 114-unit, all affordable, workforce housing development. As part of the financing, the Redeveloper is requesting $850,000 from the city’s AHTF via a 25- year deferred loan to provide five units affordable to households at 30% (AMI) and five units affordable to households at 50% AMI. If Real Estate Equities sells, refinances, or resyndicates the affordable building prior to the deferred loan being repaid, they will be required to repay the deferred loan in full. These terms are included in the Contract for Private Redevelopment between the Redeveloper, the EDA, and the City of St. Louis Park. Typically, only the EDA is required to approve redevelopment contracts. However, because the recommended financial assistance includes funding from the AHTF and the terms and conditions of the AHTF assistance are included in the Redevelopment Contract, the City of St. Louis Park is also required to approve the contract and the AHTF amount. Financial or budget considerations: Under the proposed redevelopment contract, the Redeveloper agrees to construct the proposed Wooddale Avenue Apartment development (which will be renamed to Arbor House) as specified under the PUD. It is recommended that $940,000 in tax increment financing (TIF) be provided to the development to enable it to become financially feasible. Additionally, it is recommended that $850,000 be provided from the city’s AHTF via a 25-year deferred loan to provide units at a deeper affordability. The terms and amount of AHTF assistance are specified within the redevelopment contract with Real Estate Equities which is also scheduled for consideration by the EDA on June 6, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; resolution Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Cindy Walsh, deputy city manager City council meeting of June 6, 2022 (Item No. 4c) Page 2 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) Discussion 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 desires to leave behind a legacy of affordable housing for the St. Louis Park community. The church has entered into a purchase agreement with Real Estate Equities (REE and “Redeveloper”) 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 intend 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 Redeveloper is submitting a grant application to Hennepin County to help off-set some of 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 Credits (LIHTC) from Minnesota Housing. These bond allocations require the Redeveloper 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. City council approved a comprehensive plan amendment and a preliminary and final plat on April 4, 2022, and approved a vacation and a rezoning to a planned unit development on April 18, 2022 to enable the Wooddale Avenue Apartments development to occur. The proposed $34.26 million development includes a mix of one-, two-, and three-bedroom units. The development’s proposed mixed of unit types is as follows: Unit Type 30% AMI 50% AMI 60% AMI Total units 1-bedroom 2 2 23 27 2-bedroom 2 2 49 50 3-bedroom 1 1 32 37 Total 5 5 104 114 Inclusionary housing: 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 percent AMI. As outlined above, the proposed apartment building would be an all-affordable development with rents ranging from 30 percent to 60 percent 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 Redeveloper plans to include 37 three-bedroom units in the building’s unit mix, exceeding the policy requirements by 33 units, to further the city’s goals for family-sized housing. Since receiving the TIF application staff report on March 28, 2022, the Redeveloper has shifted three two-bedroom units to three three-bedroom units to provide for additional family-sized units. This updated unit mix was approved as part of the planned unit development rezoning for the site. City council meeting of June 6, 2022 (Item No. 4c) Page 3 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) 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 at or below 60 percent AMI for at least 30 years. In summary, the proposed development would provide 114 units of affordable housing for 30 years. Green building policy: 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 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 provide reliable and efficient public transit for building occupants. This means residents will not need to rely on single-occupancy vehicles, resulting in reduced vehicle miles traveled and less emissions. 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. Due to the submission timing of this development’s planning applications (March 3, 2022) the EDA’s DEI Policy is not in effect for this development. However, the Redeveloper has agreed to City council meeting of June 6, 2022 (Item No. 4c) Page 4 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) the inclusion of business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in the construction of the development. The Redeveloper anticipates that its construction practices, and ongoing property management will meet the intent of the city’s diversity, equity, and inclusion policy. 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. Rendering of proposed Wooddale Avenue Apartments Wooddale Avenue Apartments would be a single-phased residential development. Pending approval of its financing, the development team plans to commence construction of the building in summer 2022 and complete it by mid-2024. Real Estate Equities would own and manage the residential development for the long term. Redeveloper’s request for tax increment financing assistance: Based on Ehlers’ financial analysis and experience, it likely that any all-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 awarded up to $17.49 million tax exempt bonds from Minnesota Management and Budget (MMB), Low Income Housing Tax Credits (LIHTC) from Minnesota Housing and is 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. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. The EDA received a staff report detailing the TIF Application at the March 28, 2022 study session along with a recommendation for the appropriate amount of financial assistance. City council meeting of June 6, 2022 (Item No. 4c) Page 5 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) Housing TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. The EDA and city have the right to decertify the district prior to the legally required date. The city’s expressed obligations to the Redeveloper, per the terms of the Redevelopment Contract, are estimated to be satisfied in approximately 15 years. Once those obligations are satisfied, the city may terminate the district or elect to retain it to assist other affordable housing projects and programs into the future. In the past, city council has elected to use the additional taxes collected from housing TIF districts to help fund other affordable housing developments and programs throughout the city. Tax increment from housing districts has been used to help fund the Affordable Housing Trust Fund, HIA Programs, Affordable Homeownership Land Trust Program, 1st Time Homebuyer program, wealth building homeownership programs for underserved communities, and some home energy rebates. Level and type of financial assistance: In summary, the Redeveloper’s sources and uses statement, income and expense estimates, financing assumptions, cash flow projections, and investor rate of return (ROR) related to the proposed mixed income development were reviewed by staff and Ehlers (the EDA’s financial consultant). Based upon its analysis of the Redeveloper’s financial proforma, Ehlers determined that the proposed development would not be reasonably expected to occur on the site in the foreseeable future but/for the provision of up to $940,000 in tax increment assistance and a loan in the amount of $850,000 from the city’s Affordable Housing Trust Fund (AHTF). The TIF assistance would be committed to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of site demolition and clearance, soil remediation and correction as well as construction of affordable housing). Upon completion of the building and verification of the Redeveloper’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the city's TIF Policy. It is projected that the TIF Note would be paid off in approximately 15 years with increment generated by the development. It is projected that the Note would terminate with the final payment on February 1, 2039. The AHTF 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. By providing additional assistance through the trust fund, this allows the development to provide deeper levels of affordability for 10 of the units and to incorporate more, larger units. 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 Redeveloper until it is paid off. It is estimated that the development would City council meeting of June 6, 2022 (Item No. 4c) Page 6 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) generate nearly $143,000 in annual property taxes upon completion and full occupancy. The city’s portion would be nearly $50,000. Proposed contract for private redevelopment: Key business terms for providing the proposed financial assistance were provided in the staff report for the April 25, 2022 study session. The proposed contract for private redevelopment specifies the mutual obligations between the EDA and Real Estate Equities (“Redeveloper”) as well as the terms and conditions of the financial assistance to be provided. The following is a summary of the business terms in the proposed contract consistent with EDA policy, past practices, and previous discussions with the EDA/city council. The Redevelopment Property consists of the property highlighted in the aerial photo below. City council meeting of June 6, 2022 (Item No. 4c) Page 7 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) Proposed redevelopment site for Wooddale Avenue Apartments 1. The Redeveloper agrees to construct an all-affordable multifamily rental housing development on the Redevelopment Property consisting of a 114-unit apartment building with approximately 117 underground parking stalls (the “Development”). The Development shall include a mix of one-bedroom, two-bedroom, and three-bedroom units (the “Minimum Improvements”). 2. The EDA agrees to reimburse the Redeveloper for a portion of its Public Redevelopment Costs incurred during construction of the Development through tax increment financing (TIF) up to $940,000. 3. The EDA agrees to issue a tax increment revenue note (“TIF Note”) to the Redeveloper in the maximum principal amount of $940,000 payable from available tax increment, generated by the development on a “pay-as-you-go” basis, over a period of approximately 15 years. The TIF Note will bear interest at 4.3% or the Redeveloper’s actual financing interest rate. The TIF Note would not constitute a business subsidy because the Redeveloper’s net costs of acquisition of and site improvements on the Redevelopment Property will meet the housing exception under Minnesota statutes. 4. In order to provide the tax increment to the Redeveloper, the EDA agrees to establish a new housing TIF district consisting of one parcel: 3801 Wooddale Avenue. 5. The EDA will issue the TIF Note to the Redeveloper upon completion of the Minimum Improvements and Redeveloper providing the EDA with a statement specifying the Public Redevelopment Costs incurred by the Redeveloper related to the Development along with evidence that each identified Public Redevelopment Cost has been paid or incurred by the Redeveloper. City council meeting of June 6, 2022 (Item No. 4c) Page 8 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) 6. The TIF assistance will be subject to a "look back" analysis to be performed by Ehlers, the EDA’s financial consultant. Under the provision, the Redeveloper would be required to submit final project costs related to the construction of the development. The look back provision ensures that if the Development’s total Public Redevelopment Costs are lower or if the project performs financially better than the Redeveloper’s estimates, the EDA shares economically in the success of the project by reducing the amount of TIF assistance provided. 7. The EDA or the City will provide the Redeveloper an interest-free deferred loan from its Affordable Housing Trust Fund in an amount not to exceed $850,000. • The AHTF loan will be repaid upon the earlier of (i) 25 years, (ii) refinancing/re- syndication of the Affordable Housing Minimum Improvements, or (iii) sale or transfer of the Affordable Housing Minimum Improvements; provided, however, that Redeveloper may transfer the Affordable Housing Minimum Improvements to a related entity to the Redeveloper without such repayment obligation. 8. Construction of the Development will commence by August 31, 2022, and will be substantially completed by August 31, 2024. 9. Redeveloper will construct the Development and maintain it in good condition until the Contract terminates. 10. Redeveloper will comply with the TIF Act and city’s Inclusionary Housing Policy in effect at the time of its planning applications (February 28, 2022). Specifically, Redeveloper agrees to a 26-year covenant beginning on the date a certificate of occupancy is issued providing that (i) at least 40% of the units as affordable to households at or below 60% AMI for purposes of complying with the TIF Act ; (ii) at least 104 of the units will be affordable to households at or below 60% AMI; (iii) at least five units will be affordable to households at or below 50% AMI (two one-bedroom units, two two-bedroom units, and one three-bedroom unit) and such units shall have free surface parking; (iv) at least five units will be affordable to households at or below 30% AMI (two one-bedroom units, two two-bedroom units, and one three-bedroom unit) and such units shall have free surface parking; and (v) households with incomes at or below 60% AMI will have the option to purchase underground parking at a cost not to exceed the greater of 60% of the market rate for underground parking as calculated by the City on an annual basis or $75 per month. Certain affordability requirements will remain in place for 30 years due to the requirements of the low-income housing tax credits to be received by the Redeveloper. 11. Redeveloper will use reasonable efforts to meet the following business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in conjunction with construction of the Development: Participation Goals Women BIPOC Business Enterprises 6% 13% Workforce 6% 32% Participation goals would be applied to the Development as a whole and pertain to the total amount of construction and related contracts. Redeveloper would provide and use City council meeting of June 6, 2022 (Item No. 4c) Page 9 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) reasonable efforts to cause its contractors/subcontractors to provide certain information and resources to prospective contractors/subcontractors before bidding; to implement procedures designed to notify women and people of color about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance report(s), all as more particularly set forth in the Contract. Failure to achieve these goals would not constitute a breach or default by Redeveloper. 12. Redeveloper will comply with the City’s Green Building Policy in effect at the time of submittal for planning applications (February 28, 2022) and shall use Enterprise Green Communities/Energy Star Program with the Minnesota Overlay as its design rating system to meet the requirements of the policy. Among the sustainability features to be included are: • A rooftop solar array which produces approximately 40-53 kw • 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 13. Redeveloper will install the following items, at a minimum, in conformity with the City’s Planning Development Contract: • 19 Level 2 electric vehicle charging stations. • Landscaping on the Development Property. • All items required under the City’s Building Readiness Ordinances. 14. Redeveloper and EDA mutually agree to enter into a Minimum Market Value Assessment Agreement setting a minimum property tax value for the Development. 15. Redeveloper agrees to not discriminate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the Development Property or Minimum Improvements. 16. Redeveloper agrees to certify that the Minimum Improvements have been constructed in accordance with the Contract for Private Redevelopment and all applicable local, state, and federal laws and regulations (including but not limited to environmental, zoning, building code, labor, public health laws and regulations, and compliance with fair wage, wage theft, and employee safety laws). Additionally, all costs related to the Minimum Improvements and the development of the Redevelopment Property, including payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the Redeveloper’s request for the Certificate of Completion and written lien waivers have been provided from each contractor for all work done and for all materials furnished by it for construction or installation of the Minimum Improvements. City council meeting of June 6, 2022 (Item No. 4c) Page 10 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) 17. Redeveloper agrees to pay reasonable administrative costs incurred by the EDA, including consultant and attorney fees, in connection with the Development. 18. If Redeveloper defaults under the Contract, the EDA may (among other things) terminate the TIF Note and the Contract. 19. The Contract and TIF Note will terminate upon the earliest of the final payment of principal and interest on the TIF Note, the required decertification of the TIF District, or an uncured Event of Default under the Contract. A copy of the redevelopment contract is available for review in the community development department. Summary: As indicated in the March 28, 2022 study session staff report, the proposed $34.26 million Wooddale Avenue Apartments development has a verified financial gap and is not financially feasible but for the provision of financial assistance from the EDA and city. To offset this gap, it is proposed that the EDA consider reimbursing the Redeveloper up to $940,000 in pay-as- you-go tax increment generated by the redevelopment for a term of approximately 15 years and provide a $850,000 deferred loan from the AHTF. Providing financial assistance to the proposed Wooddale Avenue Apartments development provides numerous public benefits and makes it possible to: • further diversify the city’s housing stock with new multi-family apartment offerings consistent with the city’s strategic priorities and Comprehensive Plan. • provide the community with 114 additional affordable housing units for 30 years at 60% AMI, including five units affordable to households at 50% AMI and five units affordable to households at 30% AMI, which will be more deeply affordable for 26 years. • provide the community with affordable family-sized units, including 50 two-bedroom units and 37 three-bedroom units. • facilitate $34.26 million of new investment in the city. • further the city’s sustainability goals by developing a building to Enterprise Green Community standards and providing a rooftop solar array capable of generating up to 43-50 kw. • provide additional residential density near the Metro Greenline Extension (formerly SWLRT) Wooddale Avenue Station. • redevelop environmentally impacted property. • construct quality buildings (e.g. sound architectural design, quality construction and materials) with underground parking, public features, and sustainable elements. • provide evidence to the State of Minnesota Legislature regarding the benefits provided to affordable housing projects by utilizing pooled TIF funds to help fund the city’s Affordable Housing Trust Fund. Real Estate Equities proposed Wooddale Avenue Apartments development meets the minimum and desired qualifications, and the city’s objectives for the provision of Tax Increment Financing as specified in the city’s TIF Policy. The proposed amount of TIF assistance is consistent with City council meeting of June 6, 2022 (Item No. 4c) Page 11 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) other developments the EDA has previously assisted. The development also meets the requirements of the AHTF Policy for utilization of those funds. Recommendation: Staff supports approval of the proposed contract for private redevelopment with Real Estate Equities as outlined above to advance the Wooddale Avenue Apartments development. The attached resolution of approval allows for modifications to the contract that do not alter the substance of the transaction without bringing the contract back to the EDA for amendment. Next steps: Upon execution of the redevelopment contract, the Redeveloper plans to close on its project financing by July 8, 2022 and commence construction shortly thereafter. Previous/future actions Governing body Date Establishment of the Wooddale Avenue Apartment TIF District • TIF Housing District/TIF Plan Interfund loan EDA June 6, 2022 Approval of Contract for Private Redevelopment for Wooddale Avenue Apartments EDA June 6, 2022 Approval of Contract for Private Redevelopment and Wooddale Avenue Apartments AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 City council meeting of June 6, 2022 (Item No. 4c) Page 12 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) Resolution No. 22-______ Resolution approving contract for private development and a loan to St. Louis Park AH I, LLLP from the Affordable Housing Trust Fund Be it resolved by the City Council (the “City Council”) of the City of St. Louis Park, Minnesota (the “City”) as follows: Section 1. Recitals; Approval and Authorization. 1.01. The City and the St. Louis Park Economic Development Authority (the “Authority”) will establish the Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District (the “TIF District”), a housing district within Redevelopment Project No. 1 (the “Project”), and will adopt a tax increment financing plan for the purpose of financing certain improvements within the Project. 1.02. The City has heretofore created an Affordable Housing Trust Fund, which is funded in part with pooled tax increment derived from property within certain tax increment financing districts within the City as provided in Laws of Minnesota 2022, First Special Session, Chapter 14, Article 9, Section 5. 1.03. To facilitate the development of certain property within the Project and TIF District, the Authority, the City, and St. Louis Park AH I, LLLP, a Minnesota limited liability limited partnership (the “Developer”), have negotiated a Contract for Private Development (the “Agreement”) which provides for the construction by the Developer of an affordable multifamily rental housing facility with underground parking on certain property legally described therein (the “Development Property”), the issuance by the Authority of a tax increment revenue note to the Developer, and the loan of proceeds of funds from the City’s Affordable Housing Trust Fund in the principal amount not to exceed $850,000 (the “City AHTF Loan”) to the Developer. 1.04. To allow the Developer to perform certain obligations under the Agreement, Cedar Rapids Bank and Trust, an Iowa banking corporation, in its capacity as lender, together with any other permitted co-lenders and their respective successors and/or permitted assigns (collectively, “Senior Lender”), has agreed to provide the Developer with financing by purchasing the tax- exempt conduit revenue obligations to be issued by the City and providing taxable financing in the combined estimated principal amount of $34,000,000 (collectively, the “Senior Financing”). Section 2. Approval of City AHTF Loan. 2.01. The City agrees to make the City AHTF Loan to the Developer from the City’s Affordable Housing Trust Fund in accordance with the terms of Section 3.5 of the Agreement in the maximum principal amount of $850,000. City council meeting of June 6, 2022 (Item No. 4c) Page 13 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) 2.02. The City agrees to accept the Promissory Note and the Mortgage, in substantially the forms set forth in the Agreement, from the Developer as security for the repayment of the City AHTF Loan. Section 3. The Agreement and Related Documents. 3.01. The City Council hereby approves the Agreement in substantially the form presented to the City Council, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the Agreement, including without limitation the Mortgage and Promissory Note (all as defined in the Agreement) (the “AHTF Loan Documents”). In addition, in order to provide the Senior Financing, the Senior Lender requires the execution and delivery by the City of the following documents, forms of which are on file with the City (the “Additional Lender Documents” and together with the AHTF Loan Documents, the “Development Documents”): (i) a Master Subordination Agreement between the Senior Lender, the City, and the Authority, pursuant to which the Authority and the City agree to subordinate their right to, title to, and interest in the Property and the rights and the remedies and options of the City under the Agreement to those of the Senior Lender and the Senior Financing; and (ii) a Master Loan Disbursement Agreement between the Developer, the Senior Lender, the City, and a title company selected by the Developer, in order to disburse the proceeds of the City AHTF Loan. 3.02. The City Council hereby authorizes the Mayor and City Manager, in their discretion and at such time, if any, as they may deem appropriate, to execute the Development Documents on behalf of the City, and to carry out, on behalf of the City, the City’s obligations thereunder when all conditions precedent thereto have been satisfied. The Development Documents shall be in substantially the form on file with the City and the approval hereby given to the Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the City and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the Development Documents shall not be effective until the date of execution thereof as provided herein. 3.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the City Council by any duly designated acting official, or by such other officer or officers of the City Council as, in the opinion of the City Attorney, may act in their behalf. Upon execution and delivery of the Development Documents, the officers and employees of the City Council are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the City Council to implement the Development Documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. City council meeting of June 6, 2022 (Item No. 4c) Page 14 Title: Contract for Private Redevelopment and AHTF disbursement with Real Estate Equities related to Wooddale Avenue Apartments (Ward 2) Section 4. Effective Date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4d Executive summary Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Recommended action: Motion to approve first reading of Ordinance amending Chapter 36 pertaining to PUD 10 to amend the site plans for Chick-fil-A and set the second reading for June 20, 2022. Policy consideration: Does city council support the proposed ordinance amending PUD 10 to amend the site plan for Chick-fil-A to allow canopies over portions of the drive-through and to expand a portion of the drive-through to a dual drive-through. Summary: Chick-fil-A requests city approval for an amendment to PUD-10 – Shoppes at Knollwood, to expand a portion of the existing drive-through lane to two lanes and add canopies over the drive-through lanes on the north and south sides of the building. Site information: The Chick-fil-A restaurant was approved by the city council on May 15, 2017, for the property located at 8020 Hwy 7 zoned PUD 10. The restaurant was approved with a dual lane drive-through along the south and part of east side of the building. The drive-through, however, reduces to one lane on the east side and continues as one lane on the north side. While covid related dining restrictions were in place, Chick-fil-A utilized a large tent over the order taking portion of the drive-through to shelter staff as they took orders. The tent was removed when the covid related dining restrictions ended. Present considerations: The applicant proposes to amend the PUD to expand the one lane portion of the drive-through to two lanes, and to add permanent canopies on the southern and northern sides of the existing building over the drive-through lanes. The canopy on the north side will cover portions of one of the lanes only due to a private utility easement. The property owner will not allow it to extend over both lanes due to the easement. The purpose of the expanded drive-through lanes is to reduce waiting times in the drive- through lines. The purpose of the canopies is to provide shelter for their employees as they take and deliver orders. The planning commission conducted a public hearing on May 11, 2022. No comments were received and the planning commission recommended approval. Financial or budget considerations: None Strategic priority consideration: Not applicable. Supporting documents: discussion, draft ordinance, development plans Prepared by: Gary Morrison, zoning administrator Reviewed by: Sean Walther, planning manager Karen Barton, community development director Approved by: Cindy Walsh, deputy city manager City council meeting of June 6, 2022 (Item No. 4d) Page 2 Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Discussion Site information: Site area (acres): Property: 0.700 acres Building: 5,000 square feet Current use: Chick-fil-A drive-through restaurant Surrounding land uses: North: PUD- Commercial East: PUD- Commercial South: O- Office West: PUD- Commercial Current 2040 land use guidance Current zoning COM - commercial PUD planned unit development Proposed 2040 land use guidance Proposed zoning COM - commercial PUD planned unit development Background: The Chick-fil-A restaurant was approved by the city council on May 15, 2017, for the property located at 8020 Hwy 7 zoned PUD 10. The restaurant was approved with a dual lane drive-through along the south and part of east side of the building. The drive-through, however, reduces to one lane on the east side and continues as one lane on the north side. While covid related dining restrictions were in place, Chick-fil-A utilized a large tent over the order taking portion of the drive-through to shelter staff as they took orders. The tent was removed when the covid related dining restrictions ended. City council meeting of June 6, 2022 (Item No. 4d) Page 3 Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Present considerations: The applicant proposes to amend the PUD to expand the one lane portion of the drive-through to two lanes, and to add canopies on the southern and northern sides of the existing building over the drive-through lanes. The purpose of the expanded drive-through lanes is to reduce waiting times in the drive- through lines. The purpose of the canopies is to provide shelter for their employees as they take and deliver orders. The canopies will provide shelter from the weather for employees working in the lanes taking orders and delivering product. The canopy on the north side of the building will cover only a portion of the south lane due to a utility easement over the proposed second drive lane. The utility easement is a private easement servicing the Shoppes at Knollwood mall. The water and electric utility servicing the mall is located within this easement. The property owner is not allowing the canopy to extend over the easement. Zoning analysis: Section 36-268-PUD 10: PUD 10 (6) allows for in-vehicle sales or service as a permitted accessory use with the following conditions: 1. Is not located within 100 feet of any parcel that is zoned residential ((6)a.). The proposed drive-through will be located more than 120 feet from the closest parcel zoned residential. 2. Allows stacking for six cars per customer service point ((6)b.), Each lane provides space for ten vehicles to be stacked prior to the fixed ordering station. 3. Will not have significant adverse effects on existing level of service on adjacent streets ((6)c.), The drive-through entrance is from the large Shoppes at Knollwood parking lot, and does not impact adjacent streets and intersections. 4. Does not impede traffic or impair vehicular and pedestrian traffic movement ((6)d.), Pedestrian improvements were made when Chick-fil-A was constructed that includes a sidewalk from Texas Ave. S., across the Chick-fil-A property, then connecting to the mall. It is staff’s opinion that the modifications will not impede vehicular and pedestrian traffic movements. 5. Provides access from a collector or arterial roadway, or be otherwise located so that access can be provided without generating significant traffic on local residential streets ((6)e.) The drive-through property is accessed from the Shoppes at Knollwood parking lot, which is in turn accessed from Texas Ave. S., which is designated as a major collector. 6. Canopy is constructed in a way that is compatible with the architectural design and materials of the principle structure ((6)f.), The proposed canopy is consistent with the design of the existing building. 7. Is in conformance with the comprehensive plan, including any provisions of the redevelopment chapter and the plan by neighborhood policies for the neighborhood in which it is located and conditions of approval may be added as a means of satisfying this requirement ((6)e.) The restaurant is consistent with the comprehensive plan. Staff find that the proposed two-lane drive-through configuration and addition of a canopy structure over the drive-through lanes are consistent with the above standards. The architectural design and materials of the canopy will match the existing design and materials of City council meeting of June 6, 2022 (Item No. 4d) Page 4 Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 the building’s existing entrance canopies and drive-through order board structures. PUD 10 Special Performance Standards. PUD 10 requires that awnings be constructed of heavy canvas fabric, metal, and/or glass. Plastic, vinyl, and backlit awnings are prohibited. The Chick- fil-A proposed canopy will be constructed of prefinished metal. Landscaping. Chick-fil-A was approved with eight overstory trees. The proposed improvements will require the relocation of one tree on the east side of the building. Four additional trees will be planted along the north property line to provide a tree-lined parking lot entrance to the Shoppes at Knollwood. Next steps: If the first reading is approved, then the second reading will be scheduled for the council on June 20, 2022. Previous/future actions Governing body Date Public hearing conducted. Recommendation of approval passed. Planning commission 5/11/2022 First Reading City Council 6/6/2022 Second reading City council 6/20/2022 City council meeting of June 6, 2022 (Item No. 4d) Page 5 Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Ordinance No. ____-22 An ordinance amending the St. Louis Park zoning ordinance regarding PUD 10 The City of St. Louis Park does ordain: Whereas, the planning commission conducted a public hearing on May 11, 2022 regarding the ordinance, and Whereas, the City Council has considered the advice and recommendation of the planning commission (case no. 22-13-PUD), and Whereas, the ordinance approves site improvements for the Chick-fil-A restaurant to add a second drive-through lane at the second half of the drive-through and to add canopies over portions of the drive-through. Whereas, the ordinance authorizes the exhibits pertaining to the Chick-fil-A restaurant to be updated with the exhibits approved by this ordinance. Now, therefore be it resolved that no changes to the existing text of PUD 10 are changed as a result of this ordinance. Now, therefore be it further resolved that the following PUD 10 exhibits shall be updated by adding the approved exhibits reflecting changes made to the Chick-fil-A restaurant: 1. Site Plans 2. Landscaping Plans 3. Grading Plans 4. Building Plans Section 1. This ordinance shall take effect 15 days after publication. Reviewed for administration: Adopted by the City Council June 20, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Approved as to form and execution: Melissa Kennedy, city clerk Soren Mattick, city attorney First reading June 6, 2022 Second reading June 20, 2022 Date of publication June 30, 2022 Date ordinance takes effect July 15, 2022 Information contained on this drawing and in all digital files produced for above named project may not be reproduced in any manner without express written or verbal consent from authorized project representatives. ENGINEER'S PROJECT # PRINTED FOR DATE SHEET SHEET NUMBER DRAWN BY: Chick-fil-A 5200 Buffington Road Atlanta, Georgia 30349-2998 REVISION SCHEDULE FSR#CHICK-FIL-A211728 PRELIMINARY 03/01/2022KNOLLWOOD FSUPRELIMINARY03600 NO. DATE DESCRIPTION CHECKED BY: FDT JFV 8020 HIGHWAY 7ST. LOUIS PARK, MN 55426C-002 EXISTING CONDITIONS PLAN City council meeting of June 6, 2022 (Item No. 4d) Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Page 6 DRIVETHRUDRIVETHRUInformation contained on this drawing and in all digital files produced for above named project may not be reproduced in any manner without express written or verbal consent from authorized project representatives. ENGINEER'S PROJECT # PRINTED FOR DATE SHEET SHEET NUMBER DRAWN BY: Chick-fil-A 5200 Buffington Road Atlanta, Georgia 30349-2998 REVISION SCHEDULE FSR#CHICK-FIL-A211728 PRELIMINARY 03/01/2022KNOLLWOOD FSUPRELIMINARY03600 NO. DATE DESCRIPTION CHECKED BY: FDT JFV 8020 HIGHWAY 7ST. LOUIS PARK, MN 55426C-200 SITE PLAN DIGGERS HOTLINE City council meeting of June 6, 2022 (Item No. 4d) Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Page 7 STªE=.ST  L.N +T SS RC5  %  STªE=.ST STM CB R.M "  .NV "  <  .NV "  NE  .NV "  N  TO BE CORED STªE=.ST  L.N +T SS RC5  %  STªE=.ST STM CB R.M "  .NV "  S<  .NV "  N  STªE=.ST  L.N +T SS RC5  %  STªE=.ST STM CB RE5LACE E=.ST + , </ O5EN L.D Rª T> D OR E6UAL E=.ST R.M "  5RO5 R.M "  .NV "  S  .NV "  N<  .NV "  <  STªE=.ST  L.N +T SS RC5  %  STªE=.ST STM CB RE5LACE E=.ST + , </ CLOSED L.D Rª OR E6UAL E=.ST R.M "  5RO5 R.M "  .NV "  SE  .NV "  NE  TO BE CORED .NV "  NE  TO BE CORED STª L.N +T SS RC5  %  STªSTM S<R CB  D.A Rª T> A ,RATE T/C "  .NV "  S<  RC5 STª  L.N +T SS 5VC SDRª  CANO5> DRA.N %  .NV % DO<NS5OUT "   STª L.N +T SS 5VC SDRª  CANO5> DRA.N %  .NV % STª "  .NV % DO<NS5OUT "  STª L.N +T SS 5VC SDRª  CANO5> DRA.N %  .NV % < DO<NS5OUT "  STª L.N +T SS 5VC SDRª  CANO5> DRA.N %  .NV % STª "  .NV % DO<NS5OUT "  Information contained on this drawing and in all digital files produced for above named project may not be reproduced in any manner without express written or verbal consent from authorized project representatives. ENGINEER'S PROJECT # PRINTED FOR DATE SHEET SHEET NUMBER DRAWN BY: Chick-fil-A 5200 Buffington Road Atlanta, Georgia 30349-2998 REVISION SCHEDULE FSR#CHICK-FIL-A211728 PRELIMINARY 03/01/2022KNOLLWOOD FSUPRELIMINARY03600 NO. DATE DESCRIPTION CHECKED BY: FDT JFV 8020 HIGHWAY 7ST. LOUIS PARK, MN 55426C-300 GRADING PLAN DIGGERS HOTLINE City council meeting of June 6, 2022 (Item No. 4d) Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Page 8 Information contained on this drawing and in all digital files produced for above named project may not be reproduced in any manner without express written or verbal consent from authorized project representatives. ENGINEER'S PROJECT # PRINTED FOR DATE SHEET SHEET NUMBER DRAWN BY: Chick-fil-A 5200 Buffington Road Atlanta, Georgia 30349-2998 REVISION SCHEDULE FSR#CHICK-FIL-A211728 PRELIMINARY 03/01/2022KNOLLWOOD FSUPRELIMINARY03600 NO. DATE DESCRIPTION CHECKED BY: FDT JFV 8020 HIGHWAY 7ST. LOUIS PARK, MN 55426C-301 GRADING DETAILS & EROSION CONTROL PLAN DIGGERS HOTLINE City council meeting of June 6, 2022 (Item No. 4d) Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Page 9 DRIVETHRUDRIVETHRUEX. TRANSFORMER EX. GREASE TRAP EX. LIGHT POLE (TYP.) COVERED STRUCTURE EX. TRASH ENCLOSURE PR. SIGN (TYP.) EX. CLEARANCE BAR (TYP.) EX. FLAG POLE EX. BIKE RACK EX. MENU BOARDS & ORDERING AREA CN 14 GG 27 SH 24 CA 7 JC 16 TEXAS AVENUE SOUTHCA 18 CN 15 TO 3 GT 1 GT 3 EXISTING TREE TO REMAIN CN 15 SH 11 GG 53 TO 5 GG 38 TO 6 CN 7 TO 3 JC 4 CA 8 CA 8 JC 4 CA 4 GG 28 JC 12 GG 28 JC 2 CA 13 HF 21 HF 18 CA 12 SH 16 TO 5 CN 11 CA 13 JC 7 SOD SOD SOD EXISTING SOD EXISTING SOD HM 6 HP 20 HE 26 HM 15 HP 18 HE 23 HE 22 EXISTING LANDSCAPE TO REMAIN EXISTING LANDSCAPE TO REMAIN EXISTING LANDSCAPE TO REMAIN EXISTING LANDSCAPE TO REMAIN EXISTING LANDSCAPE TO REMAIN CS 1 COVERED STRUCTURE EX. LIGHT POLE (TYP.) CA 14 SOD CA 19 KNOLLWOOD CHICK-FIL-A, ST. LOUIS PARK, MN March 11, 2022 MATERIALS SCHEDULE QTY KEY BOTANICAL NAME/ITEM COMMON NAME SIZE COND REMARKS MATURE SIZE DECIDUOUS TREES 6 GT GLEDITSIA TRIACANTHOS 'DRAVES'STREET KEEPER HONEYLOCUST 2.5" CAL. B&B CENTRAL LEADER; MATCHED 45'H X 18'W 2 CS MALUS 'SELECT A FIREBIRD'CRABAPPLE 1.5" CAL. B&B CENTRAL LEADER; MATCHED 50'H X 25'W 3 QR QUERCUS ROBUR ENGLISH OAK 2.5" CAL. B&B CENTRAL LEADER; MATCHED 40-70'H X 40-70'W DECIDUOUS SHRUBS 32 HM HYDRANGEA MACROPHYLLA 'BLUSHING BRIDE' ENDLESS SUMMER HYDRANGEA #5 CONT. 3' O.C.; MATCHED 3-4'H X 3-4'W 42 RA RHUS AROMATICA 'GROW-LOW'SUMAC #5 CONT. 3' O.C.; MATCHED 3-4'H X 6-8'W EVERGREEN SHRUBS 68 JC JUNIPER CHINENSIS 'GOLD LACE'JUNIPER #5 CONT. 4' O.C.; MATCHED 3-4'H X 4-6'W 36 TO THUJA OCCIDENTALIS 'BAILJOHN'TECHNITO ARBORVITAE #5 CONT. 3' O.C.; MATCHED 6-8'H X 24-36"W PERENNIALS, GRASSES & GROUNDCOVER 169 CA CALAMAGROSTIS X ACUTIFLORA 'KARL FOERSTER' FEATHER REED GRASS #1 CONT. 24" O.C.; MATCHED 4-6'H X 24-36"W 62 CN CALAMINTHA NEPETA LESSER CALAMINT #1 CONT. 18" O.C.; MATCHED 18-24"H X 18-24"W 177 GG GAILLARDIA X GRANDIFLORA 'ARIZONA SUN'BLANKET FLOWER #1 CONT. 12" O.C.; MATCHED 8-12"H X-8-12"W 71 HE HEUCHERA 'PALACE PURPLE'CORALBELLS #1 CONT. 18" O.C.; MATCHED 12-18"H X 12-18"W 102 HF HEMEROCALLIS 'FRAGRANT RETURNS'DAYLILY #1 CONT. 18" O.C.; MATCHED 18-24" H X 18-24"W 35 HP HOSTA 'FRANCEE'HOSTA #1 CONT. 24" O.C.; MATCHED 18-24"H X 24-36"W 77 SH SPOROBOLUS HETEROLEPIS PRAIRIE DROPSEED #1 CONT. 24" O.C.; MATCHED 24-36"H X 24-36"W MISCELLANEOUS 312 SOD SEE NOTE BELOW SY 26 MULCH 3" DEEP SHREDDED HARDWOOD MULCH CY 15 ROCK 3" DEEP 1-3" DIAMETER RIVER ROCK MULCH CY GENERAL NOTES: 1. PROVIDE STRONGLY ROOTED SOD, NOT LESS THAN 2 YEARS OLD AND FREE OF WEEDS AND UNDESIRABLE NATIVE GRASSES. PROVIDE ONLY SOD CAPABLE OF GROWTH AND DEVELOPMENT WHEN PLANTED (VIABLE, NOT DORMANT). PROVIDE SOD COMPOSED PRINCIPALLY OF AN APPROVED KENTUCKY BLUE GRASS BLEND CONTAINING A MINIMUM OF FOUR IMPROVED VARIETIES. Information contained on this drawing and in all digital files produced for above named project may not be reproduced in any manner without express written or verbal consent from authorized project representatives. ENGINEER'S PROJECT # PRINTED FOR DATE SHEET SHEET NUMBER DRAWN BY: Chick-fil-A 5200 Buffington Road Atlanta, Georgia 30349-2998 REVISION SCHEDULE FSR#CHICK-FIL-A211728 PRELIMINARY 03/01/2022 KNOLLWOOD FSUPRELIMINARY03600 NO. DATE DESCRIPTION CHECKED BY: FDT JFV 8020 HIGHWAY 7ST. LOUIS PARK, MN 55426JTK JFRSTATE O F MISS OU RI LAND S CAPE A R C H ITECT2010035717 NUMBER DAVID L. REITZ Landscape Plan L.01 03/21/2022 City council meeting of June 6, 2022 (Item No. 4d) Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Page 10 9'-8" 9'-8" 9'-8" 9'-8" 9'-8"9'-8" OP CANOPY FINISHES PREFINISHED METAL COLOR: DARK BRONZE M ETAL DECKING COLOR: WHITE CP-1 CP-2 E+H ARCHITECTS P.C. 750 O LD HICKORY BLVD. SUITE 250 BRENTWOOD, TN 37027 PHO NE: 615.377.3111 FAX: 615.377.0978 EM AIL: CFATEAM@EANDHARCH.COM Chick-fil-A 5200 Buffington Road Atlanta, Georgia 30349-2998 Information contained on this drawing and in all digital files produced for above named project may not be reproduced in any manner without express written or verbal consent from authorized project representatives. CONSULTANT PROJECT # PRINTED FOR DATE SHEET SHEET NUMBER DRAWN BY REVISION SCHEDULE A 12 3 4 B C D E A B C D E 12 3 4 BUILDING TYPE / SIZE: RELEASE: #3/16/2022 3:34:45 PMC:\Users\Maria Hernandez\Documents\03600 MN KNOLLWOOD FSU_P12_SE_ARC_mariahWE8ZS.rvtD-001 COLOR CANOPY ELEVATIONS CANOPY APPROVALS 03/16/2022 DesignerKNOLLWOOD FSUCANOPY APPROVALS03600ST. LOUIS PARK, MN 55426P12 SE-03600-D-001-COLOR CANOPY ELEVATIONSP12 SE PROTO TYPICAL SET NOT FOR REGULATORY APPROVAL, BIDDING, OR CONSTRUCTION NO. DATE DESCRIPTION 3/16" = 1'-0" ELEVATION - ENTRY1 N.T.S. ELEVATION - DRIVE-THRU 2 N.T.S. ELEVATION - SIDE3 3/16" = 1'-0" ELEVATION - REAR4 8020 HIGHWAY 7FSR City council meeting of June 6, 2022 (Item No. 4d) Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Page 11 E+H ARCHITECTS P.C. 750 OLD HICKORY BLVD. SUITE 250 BRENTWOOD, TN 37027 PHONE: 615.377.3111 FAX: 615.377.0978 EM AIL: CFATEAM@EANDHARCH.COM Chick-fil-A 5200 Buffington Road Atlanta, Georgia 30349-2998 Information contained on this drawing and in all digital files produced for above named project may not be reproduced in any manner without express written or verbal consent from authorized project representatives. CONSULTANT PROJECT # PRINTED FOR DATE SHEET SHEET NUMBER DRAWN BY REVISION SCHEDULE A 12 3 4 B C D E A B C D E 12 3 4 BUILDING TYPE / SIZE: RELEASE: #3/16/2022 3:34:49 PMC:\Users\Maria Hernandez\Documents\03600 MN KNOLLWOOD FSU_P12_SE_ARC_mariahWE8ZS.rvtD-002 CANOPY PERSPECTIVES CANOPY APPROVALS 03/16/2022 DesignerKNOLLWOOD FSUCANOPY APPROVALS03600ST. LOUIS PARK, MN 55426P12 SE-03600-D-002-CANOPY PERSPECTIVESP12 SE PROTOTYPICAL SET NOT FOR REGULATORY APPROVAL, BIDDING, OR CONSTRUCTION NO. DATE DESCRIPTION EXTERIOR PERSPECTIVE - NORTH W EST CORNER EXTERIOR PERSPECTIVE - SOUTH EAST CORNER EXTERIOR PERSPECTIVE - SOUTH WEST CORNER EXTERIOR PERSPECTIVE - NORTH EAST CORNER 8020 HIGHWAY 7FSR City council meeting of June 6, 2022 (Item No. 4d) Title: Zoning ordinance amendment PUD 10 - Chick-fil-A – Ward 3 Page 12 Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4e Executive summary Title: Zoning text amendment – electronic signs Recommended action: Motion to approve first reading of Ordinance amending Chapter 36 pertaining to electronic signs and set the second reading for June 20, 2022. Policy consideration: Does the council support the proposed ordinance amending regulations in the zoning ordinance pertaining to electronic signs? Summary: The city proposes to install two double sided electronic signs at the Rec Center, each sign would be 40 square feet in area. City code, however, limits the size to 20 square feet in area. Upon review of the current zoning ordinance, staff determined increasing the size limit to 40 square feet would be consistent with the maximum currently allowed in all non-residential districts. Therefore, the city proposes to amend the zoning ordinance to permit electronic signs up to 40 square feet in area on parcels over 20 acres and zoned residential or park and open space. The operations and recreation department conducts several recreational activities at the Rec Center both within the building and at Wolfe Park. The signs would be used to advertise these events. The operations and recreation department would like to utilize two 40-square-foot double sided electronic signs (four sign faces) to advertise recreational and public announcements. One sign would be placed at the driveway entrance located at the new roundabout on 36th Street West and Beltline Blvd. The other sign would be placed at the Monterey Drive entrance. The driveways are approximately 550 feet apart. The planning commission conducted a public hearing on May 11, 2022. No comments were received, and the planning commission recommended approval. Financial or budget considerations: None. Strategic priority consideration: Not applicable. Supporting documents: discussion, map showing location of eligible properties, draft ordinance, Rec Center sign proposal Prepared by: Gary Morrison, zoning administrator Reviewed by: Sean Walther, planning manager Karen Barton, community development director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 4e) Page 2 Title: Zoning text amendment – electronic signs Site information: The operations and recreation department would like to install two freestanding signs that each include double sided electronic signs at the rec center located at 3700 Monterey Dr. Site area (acres): 31.65 acres Current uses: Surrounding land uses: Parks/recreation, community center North: commercial/office East: multi-family residential South: multi-family residential West: multi-family residential Current 2040 land use guidance Current zoning PRK - park and open space POS park and open space Analysis: The zoning ordinance currently allows electronic signs as follows: a. The sign face shall not exceed: 1. 20 square feet in a residential district and the Park and Open Space District. 2. 40 square feet in all other districts. b. The maximum sign face established above shall not be in excess of the maximum sign area allowed in table 36-362A. c. No more than one sign face may be visible from any same location off-site. d. Messages and/or images must be displayed for at least three seconds. e. Electronic signs existing on May 28, 2010 must comply with this section, except that electronic signs that exceed the maximum size limit above may continue as a non- conforming sign as to size. f. Messages or displays must change instantaneously. Using any type of special effect to change from one message or display to another is prohibited. City council meeting of June 6, 2022 (Item No. 4e) Page 3 Title: Zoning text amendment – electronic signs The city proposes the following amendment to allow the signs requested by the operations and recreation department: a. The sign face shall not exceed: 1. 20 square feet for properties less than 20 acres in area in a residential district and the Park and Open Space District. 2. 40 square feet for properties 20 acres or greater in area for properties zoned residential or Park and Open Space. 32. 40 square feet in all other districts. b. The maximum sign face established above shall not be in excess of the maximum sign area allowed in table 36-362A. c. No more than one sign face may be visible from any same location off-site unless the signs are more than 500 feet apart. d. Messages and/or images must be displayed for at least three seconds. e. Electronic signs existing on May 28, 2010 must comply with this section, except that electronic signs that exceed the maximum size limit above may continue as a non- conforming sign as to size. f. Messages or displays must change instantaneously. Using any type of special effect to change from one message or display to another is prohibited. The amendment proposes to allow properties 20 acres or larger and zoned residential and park and open space to have up to 40 square feet of electronic sign face area instead of 20 square feet currently allowed by code. The following properties would be eligible to utilize this provision: The Rec Center/Wolfe Park The Westwood Nature Center St. Louis Park High School Benilde-St. Margaret’s Jewish Community Center Methodist Hospital Dakota Park Twin Lakes Park Aquila Park Oak Hill Park Bass Lake Preserve The Minneapolis Golf Club Meadowbrook Golf Course Although they would be eligible for the larger electronic sign faces, the city does not propose additional signs at the other public park lands listed above. The locations of all the above properties are shown on the attached city map. Electronic signs are subject to the same performance criteria as are required for standard signs. This includes setbacks and brightness standards. Signs in the residential and park and open space districts are required to be at least 10 feet from the property line. The distance from the street curb to the property line (boulevard) varies around the city but is typically approximately 14 feet. This distance could be less in some areas of the city. The 14-foot boulevard plus the 10- City council meeting of June 6, 2022 (Item No. 4e) Page 4 Title: Zoning text amendment – electronic signs foot setback means the sign would typically be around 24 feet from the street curb. The existing Rec Center sign on Monterey Drive is approximately 18 feet from the street curb, 10-13 feet from property line. The location for the proposed sign at the new roundabout has not been finalized at this time. Staff needs to determine where the sign can be located and maintain its effectiveness and meet sight triangle visibility and setback requirements. Previous/future actions Governing body Date Public hearing conducted. Recommended approval. Planning commission 5/11/2022 Second reading of ordinance City council 6/20/2022 City council meeting of June 6, 2022 (Item No. 4e) Page 5 Title: Zoning text amendment – electronic signs City council meeting of June 6, 2022 (Item No. 4e) Page 6 Title: Zoning text amendment – electronic signs Ordinance No. ____-22 Ordinance regarding electronic signs The City of St. Louis Park does ordain: Whereas, the planning commission conducted a public hearing on May 11, 2022 regarding the ordinance, and Whereas, the City Council has considered the advice and recommendation of the planning commission (case no. 22-12-ZA), and Now, therefore be it resolved that the following amendments shall be made to the City Code: Section 1. Chapter 36-362(h)(8) of the St. Louis Park City Code pertaining to electronic signage is hereby amended to delete the struck-out language and to add the following underlined text: a. The sign face shall not exceed: 1. 20 square feet for properties less than 20 acres in area in a residential district and the Park and Open Space District. 2. 40 square feet for properties 20 acres or greater in area for properties zoned residential or Park and Open Space. 32. 40 square feet in all other districts. b. The maximum sign face established above shall not be in excess of the maximum sign area allowed in table 36-362A. c. No more than one sign face may be visible from any same location off-site unless the signs are more than 500 feet apart. d. Messages and/or images must be displayed for at least three seconds. e. Electronic signs existing on May 28, 2010 must comply with this section, except that electronic signs that exceed the maximum size limit above may continue as a non- conforming sign as to size. f. Messages or displays must change instantaneously. Using any type of special effect to change from one message or display to another is prohibited. Section 2. This ordinance shall take effect 15 days after publication. First reading June 6, 2022 Second reading June 20, 2022 Date of publication June 30, 2022 Date ordinance takes effect July 15, 2022 City council meeting of June 6, 2022 (Item No. 4e) Page 7 Title: Zoning text amendment – electronic signs Reviewed for administration: Adopted by the City Council June 20, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Approved as to form and execution: Melissa Kennedy, city clerk Soren Mattick, city attorney Mike Kasbohm 612-719-1990 ThinkDigitalSigns.com March - 2022 1 SLP Rec Center 3700 Monterey Drive St. Louis Park, MN 55416 Proposed Sign Plan City council meeting of June 6, 2022 (Item No. 4e) Title: Zoning text amendment – electronic signs Page 8 Mike Kasbohm 612-719-1990 ThinkDigitalSigns.com2 Free-Standing Sign Location 1: Existing Sign is Setback ~13’ 1 City council meeting of June 6, 2022 (Item No. 4e) Title: Zoning text amendment – electronic signs Page 9 Mike Kasbohm 612-719-1990 ThinkDigitalSigns.com3 Free-Standing Sign Location 1: Remove Existing & Replace with New (Same Location) New -Side BExisting Monument Sign 40 SF Dynamic 29 SF Static 69 SF per Side = 138 SF 10’ + Setback from Property line 10'-0" 12'-3 1/2" City council meeting of June 6, 2022 (Item No. 4e) Title: Zoning text amendment – electronic signs Page 10 Mike Kasbohm 612-719-1990 ThinkDigitalSigns.com4 Free-Standing Monument Signs: Renderings Side A & B City council meeting of June 6, 2022 (Item No. 4e) Title: Zoning text amendment – electronic signs Page 11 Mike Kasbohm 612-719-1990 ThinkDigitalSigns.com5 Free-Standing Sign Location 2: 2 Showing new Roundabout Super Imposed over Property lines (need to establish setback). 2 City council meeting of June 6, 2022 (Item No. 4e) Title: Zoning text amendment – electronic signs Page 12 Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4f Executive summary Title: Retirement recognition for Engineering Project Coordinator Tom Pecchia Recommended action: Motion to adopt Resolution to recognize Engineering Project Coordinator Tom Pecchia for more than 26 years of service. Policy consideration: None at this time Summary: City policy states that employees who retire or resign in good standing with over 20 years of service will be presented with a resolution from the mayor, city manager and the city council. Tom has chosen not to be honored with a presentation and will not be attending the council meeting. This consent item will officially adopt the resolution that honors Tom for his years of service. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Joseph Shamla, engineering project manager Reviewed by: Debra Heiser, engineering director Approved by: Cindy Walsh, deputy city manager City council meeting of June 6, 2022 (Item No. 4f) Page 2 Title: Tom Pecchia Retirement Recognition Resolution No. 22-____ Resolution of the City Council of the City of St. Louis Park, Minnesota recognizing the contributions and expressing appreciation to Engineering Project Coordinator Tom Pecchia Whereas, Tom began his employment with the City of St. Louis Park over 26 years ago on September 5, 1995; and Whereas, Tom has been a project coordinator/inspector in a professional and responsible manner, helping other city departments and collaborating with others to ensure that the city’s business needs were met; and Whereas, Tom has provided exceptional and responsive customer service to both internal and external customers, meeting with contractors and residents to answer questions and continuously proving his willingness to help residents navigate a construction project; and Whereas, Tom has worked on every major road within the city at least once (and sometimes twice), showcasing his impressive knowledge and understanding of the operations and utilities in the city; and Whereas, Tom has worked on many award winning projects (including the Louisiana Avenue Bridge project which will be completed after Tom’s retirement) and traveling through the city proves Tom’s commitment to quality in each of his projects; Now therefore be it resolved that the City Council of the City of St. Louis Park, Minnesota, by this resolution and public record, would like to thank Tom Pecchia for his great contributions and more than 26 years of dedicated service to the City of St. Louis Park and we wish him the best in his retirement. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4g Executive summary Title: Revised green building policy Recommended action: Motion to Adopt Resolution approving a revised green building policy. Policy consideration: Does the proposed revised green building policy meet the expectations of the city council? Summary: The economic development authority (EDA) adopted the city’s green building policy in 2010 and amended the policy in 2014 and 2020. The policy includes a set of sustainable building requirements that developers elect to adhere to in exchange for city financial assistance and/or certain voluntary and discretionary zoning approvals. In the past few years, the city has refined its goals and desired requirements for green buildings while building technologies have improved and municipal policy frameworks have been standardized. Staff propose an amended and restated policy that follows a new “third-party rating system plus overlay” framework and requires green building elements that more closely reflect the city’s goals and values. The proposed revisions will streamline the current process and provide flexibility to the developer, utilizing a consistent rating framework, while advancing the city’s environmental stewardship goals. Staff provided more details in previous reports, including the May 9, 2022 study session report (pages 17-33) and EDA report for discussion June 6, 2022. Financial or budget considerations: Adopting the revised green building policy will require that developers design and construct their buildings under a third-party rating system. A higher performing and more sustainable building will provide benefits to the community for many decades, however, the additional costs associated with the third-party rating system chosen and each of the overlay requirements will be incurred by the developer. These additional costs will likely result in higher tax increment financing (TIF) requests from developers and may push those requests beyond the EDA’s preferred 15-year TIF term. Staff intends to continue contracting with a consultant, LHB, for technical assistance services; these costs are budgeted annually in community development and expenditures fluctuate depending on the number of buildings subject to the policy and the amount of technical assistance requested by the developer and city staff. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Resolution Exhibit A: green building policy Prepared by: Emily Ziring, sustainability manager Julie Grove, community and economic development analyst Sean Walther, planning and zoning supervisor Reviewed by: Brian Hoffman, director of building and energy Karen Barton, community development director/EDA executive director Approved by: Cindy Walsh, deputy city manager City council meeting of June 6, 2022 (Item No. 4g) Page 2 Title: Revised green building policy Resolution No. 22-____ Resolution approving revised green building policy Whereas, the City of St. Louis Park (the “City”) has previously adopted strategic priorities to guide policies, initiatives, and decisions, including a strategic priority that the City is committed to continue to lead in environmental stewardship; and Whereas, on February 5, 2018, the City adopted a climate action plan with goals to significantly increase building energy efficiency and renewable energy in pursuit of an overall a goal of community-wide carbon neutrality by 2040; and Whereas, the City and the St. Louis Park Economic Development Authority (the “Authority”) have determined that an important area of city business is environmentally sustainable (“green”) building design, and that property owners should be encouraged to incorporate green building design into their plans for building projects within the city; and Whereas, on February 16, 2010 the Authority and the City Council approved a green building policy; and Whereas, there has been presented before the City Council an updated green building policy to more closely reflect the city’s goals and values; and Whereas, the City Council has determined that it is reasonable, expedient and in the best interest of the public to amend and restate the green building policy in the form attached hereto as Exhibit A. Now therefore be it resolved by the City Council of the City of St. Louis Park that the green building policy is hereby amended and restated as attached hereto as Exhibit A. It is further resolved city staff is hereby authorized to take all actions necessary to implement the green building policy with regard to applicable projects initiated from the date of this resolution. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, city clerk City council meeting of June 6, 2022 (Item No. 4g) Page 3 Title: Revised green building policy EXHIBIT A City of St. Louis Park Green Building Policy Introduction St. Louis Park is committed to leading in environmental stewardship. This priority is reflected in the comprehensive plan goal to achieve carbon neutrality by 2040 and by the city’s Climate Action Plan, which includes seven midterm goals that will reduce the city’s overall carbon emissions 55% by 2030: 1. Reduce energy consumption in large commercial buildings by 30 percent. 2. Reduce energy consumption in small- to mid-size commercial buildings by 30 percent. 3. Design and build all new construction to be net-zero energy. 4. Reduce energy consumption in residential buildings by 35 percent. 5. Achieve 100 percent renewable electricity. 6. Reduce vehicle emissions by 25 percent. 7. Reduce solid waste by 50 percent from business as usual. These midterm goals guide the city’s development priorities, and the city actively encourages the design and development of sustainable buildings and sites. Sustainable development is defined as development that maintains or enhances economic opportunity and community wellbeing while protecting and restoring the natural environment upon which people depend. Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable or “green” buildings incorporate numerous strategies that result in improved energy efficiencies, reduced water usage as well as increased health and productivity of occupants. Sustainable site design promotes natural settings and results in improved storm water management and reduced water usage. Together these efficiencies can result in cost savings that are beneficial for both the private and public sectors. In addition, the city will pursue policies and practices that advance sustainability using techniques that produce significant measurable results and true return on investment. In the United States, buildings account for approximately: • 72% of total electricity consumption • 39% of total primary energy use • 38% of all carbon dioxide emissions • 170 million tons of construction and demolition waste • 14% of total potable water consumption, or 15 trillion gallons per year (Source: US Green Building Council) In St. Louis Park, emissions from buildings make up 60% of all greenhouse gas emissions. The built environment has a substantial impact on the natural environment, human health, and the economy. By adopting green building strategies, cities can maximize both economic and environmental performance. Potential benefits of green building include: Economic benefits • Reduce operating costs for owners and tenants • Create, expand, and shape markets for green products and services • Improve occupant productivity City council meeting of June 6, 2022 (Item No. 4g) Page 4 Title: Revised green building policy • Optimize life-cycle economic performance • Reduce municipal infrastructure costs Environmental benefits • Reduce or capture greenhouse gas emissions • Reduce solid waste • Enhance and protect biodiversity and ecosystems • Improve soil health and reduce erosion • Improve air and water quality • Conserve water and restore natural resources Social benefits • Enhance occupant comfort and health • Minimize strain on local infrastructure • Improve site and building aesthetics • Improve overall quality of life • Demonstrate environmental stewardship This Green Building Policy (“policy”) promotes buildings that are energy efficient, economical to operate, environmentally responsible, healthy places to live and work that enhance the quality of life in St. Louis Park and help achieve the community’s Climate Action Plan goals. Definitions The following definitions apply specifically to the policy. Municipal building: Any structure owned, leased, or otherwise occupied by the city and used for a public purpose by the city. Commercial building: A building that is used for commercial activities, including retail, office, services, and food and drink. Commercial property includes office, medical, hotels, retail, entertainment, mixed use, hotel and multifamily residential. Industrial building: A building where products or materials are fabricated, assembled, processed or warehoused. Multifamily residential building: A commercial residential building that contains five or more dwelling units contained within a single structure or development. Under this policy, multifamily buildings are considered commercial buildings. Mixed-use building: A mixed use building may include any combination of two or more uses including housing, office, retail, medical, recreational, commercial or industrial. Under this policy, mixed use buildings are considered commercial buildings. Levelized Cost of Energy (LCOE): LCOE is the cost of generating energy for a particular system. LCOE is calculated as the sum of costs over the lifetime of the system (initial investment, operations and maintenance, cost of fuel, and cost of capital), divided by the sum of energy produced over the same lifetime. The result is an electricity generation cost per unit of energy. This cost excludes all structural upgrades required, transportation, storage and taxes. Deconstruction: The unbuilding of a structure to salvage its reusable materials and components. Skim: To remove valuable components (e.g., built-in furniture, flooring, appliances) for architectural salvage prior to a scheduled demolition. City financial assistance is defined as funds derived from the following sources: • City of St. Louis Park • Housing rehabilitation fund • Reinvestment assistance program City council meeting of June 6, 2022 (Item No. 4g) Page 5 Title: Revised green building policy • Revenue bonds (private activity bonds are negotiable) • Tax increment financing (TIF) and tax abatement • Housing Authority (HA) funds (excluding federal funding for rental assistance programs) • Affordable housing trust fund • Land write-downs Land use applications that must comply with the policy (regardless of receiving city financial assistance) are: • Projects that receive approval of a planned unit development • Projects seeking certain points toward density bonuses offered in the zoning code For all other definitions, see the City of St. Louis Park’s city code. Project commencement The version of this policy in effect at the time of the application date of planning and zoning applications and/or a signed preliminary development agreement with the economic development authority and/or city shall be the applicable version. 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 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 received by the city before the termination date. The most significant benefits of sustainable buildings and site design are obtained when project design and construction teams take an integrated approach at a project’s outset. Therefore, projects subject to this policy shall undergo a green building review with city staff and consultants at the pre-design or early schematic design stage. Such a review requires one or more coordination meetings with staff and consultants to review policy requirements and to ensure that a building’s proposed design and equipment are appropriate and integrated together to meet sustainability targets. Requirements for commercial, municipal, multifamily residential, and mixed-use buildings Applicability The following municipal, commercial, multifamily residential, and mixed-use building construction projects receiving or using $200,000 or more in city financial assistance and/or receiving approval for the land use applications listed above are required to comply with this policy if they meet any of the criteria below: 1. Municipal construction projects (designed for ongoing occupancy) that meet either of the following thresholds: A. New buildings or additions: 15,000 square feet or greater (gross) B. Renovations: 50,000 square feet or greater (gross) 2. Commercial, multifamily residential, industrial, hotel, and mixed-use construction projects (designed for ongoing occupancy) that meet either of the following thresholds: A. New buildings or additions: 15,000 square feet or greater (gross) B. Renovations: 50,000 square feet or greater (gross) All applicable projects must fulfill the following requirements, which include 1) certification under a third-party rating system and 2) compliance with the city-specific “overlay.” Checklists and handouts will be supplied to provide technical assistance and help project developers and staff with monitoring compliance. City council meeting of June 6, 2022 (Item No. 4g) Page 6 Title: Revised green building policy Third-party rating system The Developer must choose for the project the current version of one of the following rating systems and levels under which to certify: • LEED Building Design and Construction (LEED BD+C) or LEED Residential BD+C Multifamily o Certified Silver, Gold or Platinum; certification must include a minimum of 13 points within the Energy and Atmosphere: Optimize Energy Performance credit • State of Minnesota B3 Guidelines o Certified Compliant (projects <20,000 gross square feet should discuss applicability of the B3 Small Buildings Method with B3 staff) • Enterprise Green Communities (for multifamily residential rental projects only; projects must have at least one unit that will serve a resident at or below 60 % AMI) o Enterprise Green Communities Certification or Certification Plus • For affordable housing projects that are funded or have tax credits through Minnesota Housing: Minnesota Housing overlay using Enterprise Green Communities Criteria o Confirmed as compliant under Enhanced Sustainability: Tier 1 or higher • Or equivalent rating systems with prior staff approval This menu of rating systems provides a range of options and flexibility for a given project to follow. Regardless of the rating system selected, compliance with rating systems help the city achieve the environmental, social, and public health goals within the Climate Action Plan. Buildings certified under a rating system and marketed as “green” may also attract prospective occupants. Projects are strongly encouraged to utilize Xcel Energy and CenterPoint Energy’s energy design assistance and design review programs (if eligible) to receive free consultations or customized modeling that predicts energy usage, suggests potential energy saving strategies and estimates energy cost savings. This process ensures that the building owner is informed about what energy-cost savings options exist to fully evaluate the life cycle costs of various building components. These programs may also provide equipment rebates to help bring down the capital cost of the project. Proof of registration and continued compliance with the rating system selected must be provided at meetings with city staff. City financial assistance may be withheld in the event of noncompliance. St. Louis Park Overlay In addition to certification with any one of the rating systems listed above, projects complying with the policy must also meet and document additional requirements (the “overlay”). The overlay reflects the most important values of St. Louis Park: energy efficiency, renewable energy, waste reduction, and stewardship of natural resources. The items listed below are required regardless of the rating system selected but may overlap with mandatory or optional points available in some rating systems (noted). 1. Renewable energy (RE) Not required for projects certifying under the State of Minnesota B3 Guidelines; renovation projects may also be exempted with staff approval. Complete an analysis of onsite solar sufficient to offset two percent of predicted energy demand. A. If the design phase calculator determines that the levelized cost of energy (LCOE) from a proposed system is equal to or less than the combined price of grid and/or fossil fuel-supplied energy and carbon, installation of an onsite system meeting two percent of the project’s anticipated energy demand (electricity and natural gas combined) is required. Renewable Energy Credits must be retained by the building owner. City council meeting of June 6, 2022 (Item No. 4g) Page 7 Title: Revised green building policy B. If the analysis determines that solar is not technically feasible due to shading, orientation or other technical constraints, or that the LCOE is greater than the combined price of grid and/or fossil fuel-supplied energy and carbon, the developer is required to subscribe the project to a utility green power subscription program or power purchase agreement for a minimum of one year at a level that meets 100 percent of the project’s anticipated energy demand and the RE requirement is considered met. See handout for more details on the steps required to complete the RE analysis and a list of commercial solar installer directories. BENEFITS: Additional clean energy on the grid; potential to lower electricity bills for building owners and tenants. 2. Building electrification Examine the cost and feasibility of ground-source heat pumps, cold climate air-source heat pumps and/or variable refrigerant flow systems to provide heating and cooling to the building. Installation is optional. BENEFITS: Eliminates greenhouse gas emissions from the extraction and transportation of natural gas; prepares building loads to be powered entirely with carbon-free electricity as the grid transitions; improves indoor air quality and occupant health; eliminates cost of natural gas infrastructure. 3. Electric vehicle service equipment Install cost-effective electric vehicle charging infrastructure to serve both short and long-term parking needs. See handout for more details on the EVSE requirement. BENEFITS: Future-proofs building for coming increase in EV sales and leases; marketable feature for prospective tenants. 4. Waste reduction and management A. Deconstruction and salvage i. Create a material conservation plan that includes a plan to adaptively reuse an existing structure or salvage and reuse materials from an existing structure being demolished or deconstructed onsite depending on applicability of sections ii and iii below. ii. If a residential dwelling constructed prior to December 31, 1955 (according to building records on file) is currently on the site of the planned new construction/addition or if the residential dwelling has been designated as a historic resource subject to demolition review, the residential building must be fully deconstructed. Building and architectural materials may be sold, donated, or reused on site. State and county funds may be available to subsidize the cost. iii. Any commercial building (of any construction year) or residential dwellings constructed after December 31, 1955 (according to building permit records on file) currently on the site of the planned new construction/addition must be skimmed for salvage of any reusable architectural materials (e.g. doors, molding, fixtures, tiles, cabinets). Salvaged material may be sold, donated, or reused on site. State and county funds may be available to subsidize the cost. B. Construction waste management Not required for projects certifying under the State of Minnesota B3 Guidelines i. Create a construction waste management plan that specifies construction materials to be diverted from disposal by efficient usage, recycling, reuse, manufacturer’s reclamation, or salvage for future use, donation or sale. ii. At least 75% of nonhazardous construction and demolition waste must be diverted from landfill. The percentage of materials diverted can be calculated by weight or volume, but not both. For the purposes City council meeting of June 6, 2022 (Item No. 4g) Page 8 Title: Revised green building policy of this section, construction materials and waste include, but are not limited to (1) all materials delivered to the site and intended for installation prior to the issuance of the certificate of occupancy, including related packaging; (2) construction materials and waste removal during demolition or razing. For the purposes of this section, construction and waste materials do not include land-clearing debris (including trees, rocks, and vegetation), excavated soils, and fill and base materials such as topsoil, sand, and gravel. Ground concrete reused on site is considered retained construction materials. iii. Compliance with this requirement may be met through either on-site separation of materials OR sending materials to an approved construction & demolition material recovery facility. See handout for a list of construction & demolition material recovery facilities. C. Organics collection i. For all buildings containing five or more dwelling units, designate space for the collection and hauler servicing of organics (food scraps). A central location in a trash room, garage, or enclosure is recommended. Solid waste staff is available to provide guidance on the inclusion of chutes dedicated to organic waste in the building design. Organics service level minimum should start at 25% of trash capacity, and service level should be routinely monitored and adjusted based on the needs of the building and level of tenant participation. At time of close-out, provide a copy of a contract with a hauler for organic waste collection with a minimum term of one year. Training and educational materials for residents and property management on how to properly dispose of waste can be provided by the city’s Solid Waste division upon request. BENEFITS: Recaptures embodied carbon; reduces need for raw building materials; supports material reuse; reduces greenhouse gas emissions; promotes organics recycling in multifamily buildings. 5. Healthy soils Not required for projects certifying under the State of Minnesota B3 Guidelines A. For projects with an area of site disturbance that is 5,000 square feet or larger, soil management and erosion control plans should be created and implemented to protect the soil profile of the current site before, during, and after construction. B. In-site landscaped areas soil should be amended to mimic the physical and biological capabilities of natural and agricultural soils. Organic matter content should achieve a minimum of 5.0% by weight through the incorporation of US Compost Council (USCC) Seal of Testing Assurance (STA)-Certified Compost. See handout for more details on the steps required to incorporate organic matter into soils and a list of USCC STA Certified Compost suppliers. BENEFITS: Increases carbon sequestration in soil; promotes growth of healthy landscaping, avoiding need to replant; reduces need for pesticides and fertilizers; increases biodiversity; increases water retention, reduces erosion, and prevents polluted storm runoff from contaminating wetlands, lakes and streams; supports market for compost. 6. Stormwater management Not required for projects certifying under the State of Minnesota B3 Guidelines Implement current best management practices for stormwater management by following the Minnesota Pollution Control Agency Minimal Impact Design Standards (MIDS). MIDS is based on low impact development, an approach to storm water management that mimics a site’s natural hydrology as the landscape is developed. MIDS requires that for new, nonlinear developments that create more than one acre of new impervious surface on sites without restrictions, to control stormwater runoff volumes and control the volume of post-construction runoff for 1.1 inches of runoff from impervious surfaces. Design can be integrated into existing features of the built environment, which may be rain gardens or bio-filtration basins, reduction in impervious surfaces or permeable pavement, cisterns for holding runoff and water reuse irrigation systems, tree trenches, green roofs, or any other practices that effectively manage stormwater runoff. Stormwater best management practices must City council meeting of June 6, 2022 (Item No. 4g) Page 9 Title: Revised green building policy be designed to allow for easy ongoing maintenance and operation as well as efficiency and aesthetic appearance. BENEFITS: Flood mitigation; reduces need for potable water for irrigation; protects environmentally sensitive site features; increases water retention, reduces erosion, and prevents polluted storm runoff from contaminating wetlands, lakes and streams. 7. Efficient Building Benchmarking Comply with Article VIII. Efficient Building Benchmarking ordinance of the city code regardless of total building square footage. Multifamily residential buildings with individually metered units must include in the tenant lease authorization for the release of utility bills to the landlord to facilitate building energy use reporting requirements. BENEFITS: Monitoring whole building energy use intensity and comparing to similar buildings annually helps control owners’ costs; tracking building performance will inform property owners about effects of green building; compliance triggers eligibility for extra city cost sharing incentives for property owners seeking additional energy efficiencies. 8. Commissioning Conduct building commissioning per the chosen building certification or standard to ensure that newly installed operating systems are functioning at their maximum capacity and according to their design efficiencies. Commissioning agent must be independent from the project designer and in addition to any design assistance program. BENEFITS: Fewer change orders; maximizes energy efficiency, environmental health and occupant safety; facilitates efficient on-going operations and maintenance of the facility through training and documentation. 9. Submit a summary report of policy compliance to Community Development staff at the time of Certificate of Occupancy approval. BENEFITS: Provides assurance to both project developer and city staff that project meets all requirements. Proof of continued compliance with the overlay must be provided at meetings with city staff. City financial assistance may be withheld in the event of noncompliance. Requirements for residential buildings with 4 units or fewer Applicability The following building construction projects receiving or using city financial assistance are required to comply with this policy: All new and renovated residential building projects with 4 units or fewer receiving $10,000 or more in city financial assistance. All applicable projects must fulfill the following requirements. 1. Renovations: Owners of residential buildings of 4 units or fewer shall have an audit conducted by a utility company or independent approved Home Energy Rating System (HERS) auditor. An audit conducted within the City council meeting of June 6, 2022 (Item No. 4g) Page 10 Title: Revised green building policy past three years will be accepted. Utility sponsored audits are available for a nominal fee and provide residents information to conserve energy. Income-qualified homeowners undergoing home improvements using city funds will be directed to the local Department of Energy Weatherization Assistance Program service provider who will provide a no-cost audit. The audit must be scheduled before the work proceeds and conducted as soon as possible by the local weatherization provider. In emergencies, the work at these homes may proceed before the audit is conducted. 2. New construction: Project developer must utilize CenterPoint Energy and Xcel Energy’s High Efficiency New Homes program (or equivalent program) to receive free design assistance that predicts energy usage, suggests potential energy savings strategies and estimates energy cost savings. This process ensures that the building owner is informed about what energy-cost savings options exist to fully evaluate the life cycle costs of various building components. These programs may also provide equipment rebates to help bring down the capital cost of the project. Assistance to developers and property owners To guide developers and property owners through the development process, the city will offer the services of staff and experts with in-depth sustainable design experience without charge. These resources will be made available to answer questions, provide clarifications, make suggestions, coordinate with area utility company energy efficiency programs, and assist with specific issues related to meeting policy requirements. Community outreach To further the goal of this policy, the city conducts community outreach to educate the public about the benefits of green building practices, techniques, and resources. Such efforts will utilize the city’s existing staff and promotional resources. Specific audiences to be targeted will be single-family homeowners, neighborhood organizations, and multifamily housing owners as well as businesses and private developers. All projects subject to this Policy, and which incorporate green improvements as a result, will be highly encouraged to showcase those projects upon completion so that others may benefit from lessons learned and be encouraged to make similar sustainable improvements. Other provisions The requirements of this policy may be waived, in whole or in part, by the economic development authority and/or city council after consideration of the advantages and disadvantages of a waiver, and upon demonstration by the developer of a compelling public purpose. Applicable portions of this policy are contingent upon availability of programs at participating utility companies. This policy may be amended or discontinued without prior notice. Adopted by the St. Louis Park Economic Development Authority and the St. Louis Park City Council February 16, 2010. Updated September 16, 2014. Updated July 14, 2020. Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4h Executive summary Title: St. Louis Park Lions Club temporary signs in the public right-of-way Recommended action: Motion to adopt Resolution authorizing an annual sign permit authorizing the St. Louis Park Lions Club to place temporary signs within the public right-of-way for it annual pancake breakfast event. Policy consideration: None. Summary: The St. Louis Park Lions Club has requested permission to install temporary signs in the public right-of-way for their annual pancake and sausage breakfast event. The council has been granting a similar request for the Lion’s pancake breakfast event every year since 2005. Section 36-362(e)(2) of the zoning code states that prohibited signs include, “Signs on or over the public right-of-way unless the council grants permission for a temporary sign on or over the public right-of-way for a period not to exceed ten days.” The Lions Club is a non-profit community-based organization that provides services and resources to the people of St. Louis Park. The requested signs advertise the Lions Club’s Annual Pancake and Sausage Breakfast to be held on Sunday, June 12, 2022. This activity is a fund raiser for services and resources provided to the residents of St. Louis Park. The request is to install 20 sandwich board style signs (two feet wide by three feet tall) in public right-of-way up to 10 days before the event. Up to 28 smaller signs (24 inches wide by 18 inches tall) will be installed in the public right-of-way at local places of worship on the of the day of the event only. All signs will be removed immediately following and on the day of the event. If approved, the attached Resolution would authorize an annual sign permit to place signs within the public right-of-way for the pancake breakfast. The approval would be for an annual permit, so the Lions Club would not have to apply to the council each year. Financial or budget considerations: None. Strategic priority consideration: Not applicable. Supporting documents: Resolution Letter from Lions Club Sign plan Prepared by: Gary Morrison, assistant zoning administrator Reviewed by: Sean Walther, planning manager Karen Barton, community development director Approved by: Cindy Walsh, deputy city manager City council meeting of June 6, 2022 (Item No. 4h) Page 2 Title: St. Louis Park Lions Club temporary signs in the public right-of-way Resolution No. 22-___ Resolution approving an annual sign permit for the St. Louis Park Lions Club’s to place temporary signs within the public right-of-way Whereas, The St. Louis Park Lions Club made application for the placement of 20 temporary sandwich board type signs (up to two feet wide by three feet tall) for up to 10 days before the date of the event, and up to 28 “stick in the ground” type signs (24 inches wide by 18 inches tall), within the public right-of-way once per year; and Whereas, pursuant to Section 36-362€(2) of the St. Louis Park Zoning Ordinance, the City Council may approve the placement of temporary signs within the public right-of-way for a period not to exceed 10 days per calendar year; Whereas, The City Council has approved a similar request since 2005, and there have been no complaints or incidents with the prior approvals; Now, therefore, be it resolved by the City Council of the City of St. Louis Park, Minnesota, that the City Council approves the St. Louis Park Lions Club's application for the placement of 20 sandwich board type temporary signs within the public right-of-way beginning 10 days before the date of the event, and up to 28 smaller signs to be displayed on the date of the event only. All signs shall be removed by the end of the day on the date of the event. Be it further resolved by the City Council of the City of St. Louis Park, Minnesota, that the Lions Club may install signs within the public right-of-way for up to 10 days each year for the Lion’s Club pancake breakfast event provided they do so in a manner substantially similar to the current request, without violations, and provided the request remains in compliance with city code requirements, as amended from time to time. Be it further resolved that the size and placement of the 20 sandwich board temporary signs and 25 push in the ground type temporary signs are approved as shown on the attached sign plan (Exhibit A). Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk May 11,2022 Mr.Gary Morrison Zoning Administrator City of St.Louis Park 5005 Minnetonka Blvd. St.Louis Park,Minnesota 55416 Dear Mr.Morrison: ST.LOUIS PARK LIONS C LUB "THE TAIL CLUB" St.Louis Park Inspections MAY 112077 RECEIVED The St.Louis Park Lions Club is sponsoring its Annual Pancake and Sausage Breakfast Sunday morning,June 12th,at the ROC.This is one of our major fund raising events for the year. Part of the effort associated with conducting an event like this is informing the public about it in a timely way.We intend to do that in a variety of ways such as with a social media,newspaper ads,posters in local stores,notices in neighborhood newsletters and church bulletins,and limited signage in the community. On behalf of the St.Louis Park Lions,I am hereby requesting the City grant us permission to install signs on public right of way.The signs and signing plan is the same as previous years (2018 &2019).The total usage (numbers)of signs will be 18 -2'x3'boards,and 18 small signs at church entrances.I have attached a map and a sign listing providing sign type and location details. As part of our public information process,we would like to put up the 18 large temporary signs one week prior to the event and 18 small temporary signs the day of the event.We plan to remove all of the signs the afternoon of the event.We would like City approval of our signing request as soon as reasonably possible. I will be happy to work with you in any way necessary in order to have this considered in a timely manner. Sincerely, Kelli Brown St.Louis Park Lions Enclosures -Location Map -Sign List -Pancake Breakfast Poster City council meeting of June 6, 2022 (Item No. 4h) Title: St. Louis Park Lions Club temporary signs in the public right-of-way Page 3 St. Louis Par Inspections MAY 11 2022 V Q A 2 161514131211 0.5 10 0 City of St.Louis Park 1 2022 a s City Street Ramps ----Private Road --Interstate US Highway Community Center --State Highway Fire Station --County Highway@ Legend City Building Clinic +Hospital Mall Police Station School w Excelsior &Grand Milesl~;~;~~;~==;====r===1,--=--,~-T--;--r----;-T~;-7--;;--r----;-;--1--;;--[~~I=~J=~=I~~J="'~':C•:"c'"":":';'·:":''JOc[to[be:•22~.~200=~7v-Pedestrian Bridge 10 11 12 13 14 15 16 17 18 19 20 R A / City council meeting of June 6, 2022 (Item No. 4h) Title: St. Louis Park Lions Club temporary signs in the public right-of-way Page 4 2'3'B Cedar Lake Rd@ Flag Ave (east@ Bus Shelter) 2'3'I C Old Cedar Lake Road @ Quentin Ave S (north of apt bldg) 2'3'l D Cedar Lake Rd @ Zarthan Ave (w corner of intersection) 2'3'I E Minnetonka Blvd @ Louisiana Ave (sw corner of intersection)+2'3'I F W36th Street@ Phillips Parkway (n side 36th St,east of Flag Ave) 2'3'G Beltline Blvd @ County Rd 25 (nw only because of construction) 2'3''H Excelsior Blvd @ Louisiana Ave (ne corner) 2'3'I I Wooddale Ave@W41st Street (e side 40'south) 2'3'"Louisiana Ave @WLake St (e side south of roundabout) 2'3'K Louisiana Ave @ N Side Park (w side by bench over looking park) 2'3'L Minnetonka Blvd @ Regional Trail (s side over trail) 2'3'M Louisiana Ave@ Park Tavern (e side 75's of Oak Leaf Dr) 2'3'N W 16th St @ Costco (n side 200'west of entrance) 2'3'0 Minnetonka Blvd @ Hampshire (s side 20'e of bus shelter) 2'3'p France Ave@ W26th Street (e sides of W26th st) 2'3'Q County Rd 25@ Inglewood (e of intersection in median) 2'3'R Cedar Lake Road@ Quebec Ave (n side east in front of church) 2'3's Texas Ave@ Wayzata Blvd (sw corner) St.Louis Park Lions Club Pancake Breakfast Sign lstallations 11-May-22 -Width '.Height l Map Location #I Map Location 2'3'A Monterey Drive@ W36 1/2 Street (south of park trail) Number!~ 1 Two sided /board type 1 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 2 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 Two sided /board type 1 ·ITwo sided/board type 1 Two sided /board type 20 1-18l see et18"24"18 Two sided step in type (Church parking lot entrances) Legend:Installed 8 days prior to event. Removed by 4:00 pm day of the event. Installedat 7.00am and removed by 4:00 pm day of the event. I I c:\my documentslpersonalllionslprojectslpancake breakfast\Signs Inventory -2022.xls J 0 =.0m>3 rOre li 3om2%-kt-.<N3 gmhodI3"3O73 5/10/2022 City council meeting of June 6, 2022 (Item No. 4h) Title: St. Louis Park Lions Club temporary signs in the public right-of-way Page 5 I 1615 Texas Ave S St.Louis Park MN 55426 I 9500 Minnetonka Blvd St. Louis Park MN 55426 t 5224 Minnetonka Blvd St.Louis Park MN 55416 ■ (formerly Ascension Lutheran) 6719 Cedar Lake Road St. Louis Park MN 55426 13 Aldersgate Methodist 3801 Wooddale Ave S St. Louis Park MN 55416 16 (formerly Lutheran Church of the Reformation) 2544 Hwy 100 St. Louis Park MN 55416 I (formerly First Lutheran Church) 5801 Minnetonka Blvd St.Louis Park MN 55416 5 Anglican Church of St.Dunatans 4241 Brookside Ave S St.Louis Park MN 55426 8 Slavic Church (formerly St.Luke's Lutheran) 5524 W 41 st Street St. Louis Park MN 55416■ 3208 Xenwood Ave S St.Louis Park MN 55416 14 Union Congregational Church 3700 Alabama Ave S St. Louis Park MN 55416 ■ 7624 Cedar Lake Road St.Louis Park MN 55426 I 9001 Cedar Lake Road St.Louis Park MN 55426 I 5900 W Lake Street St.Louis Park MN 55416 9 Vista (formerly Wooddale Lutheran) 4003 Wooddale Ave S St. Louis Park MN 55416 12 Knollwood Church of Christ 3639 Quebec Ave S St.Louis Park MN 55426 ■ 7814 Minnetonka Blvd St.Louis Park MN 55426 ■ (formerly SLP Evangelican Free Church) 6805 Minnetonka Blvd St.Louis Park MN 55426 St Louis ParkInspections MAY 1 1 70722 RECEIVED City council meeting of June 6, 2022 (Item No. 4h) Title: St. Louis Park Lions Club temporary signs in the public right-of-way Page 6 St.Louis Park Lions 62"%Annual *was cancelled in 2020 &2021 due to COVID Pancake &Sausage Breakfast Sunday,June 12,2022 #z± 8 00 t 11 00 MAY 112022:a.m.o :a.m. RECEIVED St.Louis Park Rec Center (3700 M onterey Drive) Tickets $9 5 &under FREE! Contact: slplions@gmail.com FREE Vision Screening for Kids 6 months to 6 years. Because Every Child Deserves To See Clearly! We Serve! All proceeds are returned to the community through Lions sponsored service projects City council meeting of June 6, 2022 (Item No. 4h) Title: St. Louis Park Lions Club temporary signs in the public right-of-way Page 7 Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4i Executive summary Title: Temporary on-sale intoxicating liquor license – Twin Cities Habitat for Humanity – Ward 1 Recommended action: Motion to approve a temporary on-sale intoxicating liquor license for Twin Cities Habitat for Humanity for an event at 6518 Walker Street on June 18, 2022. Policy consideration: Does the applicant meet the requirements for the issuance of a temporary on-sale intoxicating liquor license? Summary: The city received an application from Twin Cities Habitat for Humanity for a temporary on-sale intoxicating liquor license for a fundraising event on June 18, 2022, at Sota Clothing, 6518 Walker Steet. Twin Cities Habitat for Humanity will be partnering with OMNI Brewing for the event. Alcohol will be available from noon to 7 p.m. and the applicant will be carrying the liability insurance. During this event guests will be able to shop at Sota Clothing and enjoy live music and food trucks onsite. This event is open to the public and proceeds will go to Twin Cities Habitat for Humanity. The police department completed a background investigation on the principals and found no reason to deny the temporary license. The applicant meets all requirements for the issuance of the license, and staff recommends approval. Financial or budget considerations: The fee for a temporary liquor license is $100 per day of the event. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None Prepared by: Chase Peterson-Etem, office assistant Reviewed by: Melissa Kennedy, city clerk Approved by: Cindy Walsh, deputy city manager Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4j Executive summary Title: Union Park Flats final plat time extension – Ward 2 Recommended action: Motion to approve an extension until June 15, 2023, for Project for Pride in Living (PPL) to record the final plat of Unity Village Apartments. Policy consideration: Does the council wish to allow PPL an additional year to record the final plat of Unity Village Apartments? Summary: Per the city code, applicants must record a final plat within two years of receiving city council approval. The council approved this plat on June 15, 2020. The code allows the applicant to request an extension. The city received a written request from PPL for an extension until June 15, 2023, to record the final plat. City council approved applications from PPL to subdivide the property at 3700 Alabama Ave. S. The site is currently owned and operated by Union Congregational Church. The plat subdivides the property into two lots. The church will sell the northern lot to an affiliate of PPL (PPL SLP LLC). PPL will build, own, and manage a new three story, 60-unit affordable apartment building. The church will use the proceeds from the land sale to renovate the existing church sanctuary and narthex to preserve the 1940s building while making it more welcoming and accommodating. This extension request is not unusual, especially with affordable housing developments which generally take longer to assemble financing. Since approval of the final plat, PPL has diligently pursued the development and they still intend to proceed. The other approvals granted for the development do not expire. City staff have not identified any changes in circumstances related to the approved plat and recommend approval of the extension. Financial or budget considerations: Not applicable. There are no financial or budget impacts to extending the time for PPL to file the final plat. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: extension request letter Prepared by: Sean Walther, planning manager Reviewed by: Karen Barton, community development director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 4j) Title: Update on Wooddale Station LLC’s proposed Wooddale Station RedevelopmentPage 2 Meeting: City council Meeting date: June 6, 2022 Consent agenda item: 4k Official minutes Planning commission April 6, 2022 – 6 p.m. Members present: Jim Beneke, Matt Eckholm, Jessica Kraft, Michael Salzer, Tom Weber Members absent: Joffrey Wilson Staff present: Gary Morrison, Sean Walther, Jennifer Monson, Laura Chamberlain Guests: Derek Reise, Executive Director STEP 1. Call to order 2. Approval of minutes – March 16 and March 23, 2022 Commissioner Salzer noted the misspelling of his last name. Commissioner Salzer made a motion, seconded by Commissioner Eckholm to approve both sets of minutes as amended. The motion passed unanimously. 3. Hearings 3a. STEP Expansion preliminary and final plat Applicant: Derek Reise on behalf of St. Louis Park Emergency Program (STEP) Case No: 22-08-S Mr. Morrison presented the staff report. Commissioner Salzer asked if the easement is changed. Mr. Morrison stated currently there are no drainage utilities along the perimeter and the easements are required for utilities and along the street, as can be accommodated. Chair Beneke opened the public hearing. There were no speakers from the public. The applicant, Mr. Reise, Executive Director of STEP, stated this is part of an expansion to serve the community and STEP appreciates the commissions consideration. Commissioner Salzer asked if there will be openings between the two buildings with the expansion. Mr. Reise stated the plan is to make two openings between the current building and the new building. One for the client-facing area and another for the warehouse area. Commissioner Salzer asked if STEP will continue to use the loading dock door at the existing facility. Mr. Reise stated yes, adding there is a second door facing the alley in City council meeting of June 6, 2022 (Item No. 4k) Page 2 Title: Planning commission minutes of April 6, 2022 the new building that will also be used for incoming donations. He added there are two doors facing Library Lane, noting one will not be used going forward. Chair Beneke closed the public hearing. Commissioner Weber thanked STEP for what they do for the community. Commissioner Weber made a motion, seconded by Commissioner Salzer to recommend approval of the STEP expansion preliminary and final plat as presented by staff. The motion passed 5-0 (Commissioner Wilson absent). 4. Other Business - none 5. Communications Mr. Walther stated city council approved the first round of the Beltline Station and the Wooddale Avenue Apartments. He noted the State of the City is planned for Sunday, May 15 from 1-4 p.m. at Dakota Park and commissioners are invited to attend, as well as the public. Mr. Walther stated the April 20 meeting is cancelled and the first meeting in May will be held May 11. 6. Adjournment - 6:10 p.m. Study Session 1. Wooddale Station Development discussion Greg Anderson, Anderson Properties, the co-developer of the project introduced himself. Ahti Westphal and David Horner with DJR Architects, as well as Mark Laverty and Nate Brice with Saturday Properties were present for the discussion. Mr. Anderson stated tonight the developers and architect firm would like feedback from the Planning Commission, prior to them submitting their proposal to the city. Mr. Laverty noted their firm was involved in the Nolan Mains development in Edina. He stated everything is designated for bikes and pedestrian traffic at the Wooddale Station site, noting there will also be retail, deliveries and vehicle entrances. He noted access to parking and surface parking will be included, for businesses in the development. Ms. Monson pointed out the entrance into the development off 36th Street will only be for commercial businesses and not for the residential units. City council meeting of June 6, 2022 (Item No. 4k) Page 3 Title: Planning commission minutes of April 6, 2022 Mr. Westphal presented several projects DJR has done in St. Louis Park including Bridgewater Bank building on Excelsior Boulevard. He noted they wanted feedback on the desire for the city wanting more iconic art on the facade and within the courtyard area, to connect it to the landscaping of the light rail. He noted the courtyard area presents great opportunity, noting they are working on some ideas there and with stormwater. Commissioner Weber asked if the middle block will be redeveloped in this location eventually also. Mr. Walther stated yes that is expected over time per the Elmwood Neighborhood plan. This was discussed and reinforced with the streetscape in the area, as well as new stormwater management, and street design changes. He noted some industrial design elements have been incorporated into the amenities and buildings. Commissioner Eckholm stated he would like to see something that resembles buildings in the north loop of Minneapolis. He added he would like to see electric chargers included and incentivizing folks to park there. He stated he likes the plaza inspired by the Bridgewater Bank site, which turned out well. Commissioner Weber asked if there will be pedestrian access near the light rail platform and also near the plaza. Mr. Walther clarified on the drawing where pedestrian traffic to and from the LRT platform would be located. Commissioner Weber stated he was asking related to pedestrian safety as it relates to the light rail platform. Mr. Walther stated the driveway around the building will be wide enough to accommodate for drop-offs to the light rail as well, though the designated space to do so in the LRT plans is on Yosemite. Commissioner Kraft asked about the crosswalk and dropping off across the street from the light rail. Mr. Walther stated drop offs would be best avoided at Wooddale Avenue and 36th Street and elements in the landscaping may help deter that. Commissioner Weber asked if Nash Frames was an iconic corner and if they have a place in the city’s history, is there a way to use the name of the building in the new development. He asked also about the Skippy factory, and if that could be incorporated also. He stated he loves and appreciates when the history of the area can play into a new development. Mr. Laverty noted how the windows will also be weighed against the landscape and how the reflectivity can be incorporated into the buildings as well. Commissioner Kraft added she likes the idea of the facades with ribbon windows and different sizes, which is not similar to other buildings in the area. She added she likes interesting ways to break up the facades and the green space proposed an area that can be used by the nearby daycare. City council meeting of June 6, 2022 (Item No. 4k) Page 4 Title: Planning commission minutes of April 6, 2022 Chair Beneke added he would like the development to be different and not similar to the others in the area. He noted he would like to see solar panels added, as well. The developer stated the proposals will be submitted to the city by the end of April so they are working to get as much feedback as possible prior to then. He added 20% of the units will be affordable. He stated construction could begin as early as March or April of 2023. Ms. Monson stated the plaza levels help to make it more activated. Commissioner Eckholm agreed adding this can also create more intimacy in the plaza space. It was noted a 2nd community workshop will be held at city hall next week and all are encouraged to attend. Mr. Walther noted two attached written reports for the commission’s review. 2. Comprehensive plan implementation – diversity, equity, and inclusion policy report 3. Comprehensive plan implementation update – housing activity report Commissioner Weber asked if ADUs status within the city should be added to the housing activity report so folks do not forget it exists. Mr. Walther stated the ADUs information will be brought back to the commission and council with a progress report in 2022. 4. Communications Mr. Walther noted that Commissioner Wilson has decided not to reapply for a position on the commission after his term is up at the end of May. Mr. Walther stated two commissioners will be appointed by the city council from the pool of applicants, with alternates possible also. 5. Adjournment – 7:20 p.m. Sean Walther Jim Beneke ______________________________________ ______________________________________ Sean Walther, liaison Jim Beneke, chair member Meeting: City council Meeting date: June 6, 2022 Public hearing: 6a Executive summary Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 Recommended action: Open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the Beltline Station 1 Tax Increment Financing District (a housing district). (The EDA will have considered establishment of the Beltline Station 1 TIF District earlier in the evening and will consider the related Purchase Agreement and the Contract for Private Development Contract on June 20, 2022.) Policy consideration: Does the city council wish to support the establishment of a housing tax increment financing district to facilitate construction the proposed Beltline Station 1 TIF district associated with the affordable components of the Beltline Station Development? Summary: A staff report regarding Sherman Associates’ application for tax increment financing (TIF) assistance in connection with the proposed Beltline Station Development was provided at the June 14, 2022 study session and an update was provided via a staff report at the April 18, 2022 study session. As stated in the reports, constructing the Beltline Station Development affordable component is not feasible but for the use of the proposed tax increment and affordable housing trust fund financing due to extraordinary costs associated with redeveloping the site as well as the cost of constructing affordable housing with below market rents. Given subsequent EDA support, the proposed financial assistance is being advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Beltline Station 1 TIF district (a housing district) and approve the related Contract for Private Redevelopment. Such authorizations enable the EDA to designate tax increment generated from the new apartment building as partial reimbursement for certain qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the Beltline Station 1 TIF District does not in itself commit the city to any specific level of financial assistance for the proposed affordable components of the development. Procedurally, it simply creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment Costs. The terms and amount of TIF assistance are specified within the Redevelopment Contract with Sherman Associates which is scheduled for consideration by the EDA on June 20, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Resolution – TIF District TIF District Overview (provided in the related EDA staff report) Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 6a) Page 2 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 Discussion Background: In 2015 the city received a $6.4 million-dollar federal grant to construct a multi- level parking ramp in lieu of a large surface parking lot to serve the park and ride needs of the SWLRT at the Beltline Station. In summer 2017, the EDA entered into a preliminary development agreement with Sherman Associates to construct a development that meets the city’s objectives for the site which included: • Construct a signature, transit-oriented development (TOD). • Transform the SWLRT Beltline Boulevard Station Redevelopment Site into an active, TOD-focused place with: − Mixed use development (including multi-family residential, office and small commercial components), − Housing density to support transit ridership, − Mixed income housing (both market rate and affordable), and − High-quality shared site amenities. • Optimize the site’s development and employment potential. • Integrate development with the adjacent SWLRT Beltline Boulevard Station and connect with the surrounding areas. • Build a parking structure for required park-and-ride purposes. • Demonstrate high standards for environmental sustainability. The EDA determined Sherman Associates’ proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. City staff and Sherman Associates have been working on details and financing of the project for the past several years. The city council approved a comprehensive plan amendment on March 7, 2022, a preliminary and final plat on April 4, 2022, and a planned unit development rezoning on April 18, 2022 to enable to the Beltline Station Development to occur. The next steps in the process include establishing the Beltline Station 1 TIF District to create the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs incurred in constructing the proposed affordable component of the development. Redeveloper’s request for public financing assistance and TIF application review: Sherman Associates previously indicated that the Beltline Station Development’s financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract financing. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. Ehlers determined that the proposed development would not be reasonably expected to occur but/for the provision of tax increment assistance and a deferred loan from the affordable housing trust fund. TIF assistance is needed from Beltline Station 1 TIF District to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of soil remediation and correction as well as construction of affordable housing) associated with the all-affordable City council meeting of June 6, 2022 (Item No. 6a) Page 3 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 building. Upon completion of the building and verification of the Redeveloper’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the city's TIF Policy. It is projected that the TIF Note would be paid off in approximately 26 years with increment generated by the development. In addition, Ehlers determined that a deferred loan is needed from the affordable housing trust fund (AHTF) to provide for five units affordable at 30% of AMI. The EDA/city council received a report and discussed details of the TIF Application at the June 14, 2021 study session along with the recommendation for the level of assistance for which there was consensus support. The final assistance amounts will be considered at the June 20, 2022 EDA meeting when the EDA considers the Contract for Private Redevelopment. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Beltline Station 1 TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger Beltline Station 1 TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms of the financial assistance are contained in the separate Purchase Contract and the Contract for Private Redevelopment between the parties. Both the TIF Plan and the Contract for Private Redevelopment need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Beltline Station 1 TIF District: In order to provide the Redeveloper with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Beltline Station Development site and the proposed Beltline Station 1 TIF District are located within the city, the proposed Beltline Station 1 TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Beltline Station 1 TIF District is shown in the map below. City council meeting of June 6, 2022 (Item No. 6a) Page 4 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 Location of proposed Beltline Station 1 TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the affordable component’s redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following two parcels and adjacent roads and internal rights of-way: • 4601 Highway 7 • 3130 Monterey Ave South City council meeting of June 6, 2022 (Item No. 6a) Page 5 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 Subject properties within proposed housing TIF district Qualifications of the proposed TIF district: Sherman Associates intends to acquire land at 4601 Highway 7 and 3130 Monterey Avenue South from the EDA for the construction of a four-story, 82-unit, all-affordable multifamily development. An affiliate of Sherman Associates would then own and manage the new apartment building for the long term. The proposed 82-unit multi-family building would be all affordable with 77 units affordable at 60 percent area median income (AMI) and five units affordable at 30 percent AMI. The proposed amount of affordable housing exceeds the city’s inclusionary housing requirements, and also exceeds the city’s requirements for providing funding from the affordable housing trust fund (AHTF). To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 82 housing units (100 percent) affordable to households at or City council meeting of June 6, 2022 (Item No. 6a) Page 6 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 below 60 percent of AMI, the proposed Beltline Station Development Affordable Component qualifies under the statute as a housing TIF district. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On March 7 2022, city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from right-of-way and transit-oriented development to all transit-oriented development. On May 11, 2022, the planning commission approved a resolution of approval finding the proposed sale of EDA-owned properties conform to the general plan for development of the city. On June 6, 2022 the city will be asked to approve a resolution finding the proposed Beltline Station 1 TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The city elects in the Plan to receive the first tax increment in 2025. Thus, the full term of the district is estimated to terminate after 2050. The city’s expressed obligations to the Redeveloper, are subject to the terms of the Redevelopment Contract, which are currently estimated to be satisfied in approximately 26 years. Property value and taxes: The properties are currently owned by the EDA and are tax exempt. Once the properties are sold to Sherman Associates, the combined assessed market value of the two parcels constituting the subject redevelopment site is just over $1.8 million. This is the proposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $20.5 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the Redeveloper until it is paid off (26 years). The city, county and school district would receive the property taxes collected on the subject site’s Base Value. City council meeting of June 6, 2022 (Item No. 6a) Page 7 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 TIF district budget: The Beltline Station 1 TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the Redeveloper for qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the Beltline Station Development Affordable Component. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and actual revenues and expenditures may be lower. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Beltline Station 1 TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Beltline Station 1 Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The purchase contract and contract for private redevelopment between the EDA and Sherman Associates which specifies the terms, conditions and amount of TIF assistance related to the Beltline Station Development Affordable Component portion of the project is scheduled for consideration by the EDA on June 20, 2022. Actions/public hearings Governing Body Date Establishment of Beltline Station 1 TIF District • TIF Housing District/TIF Plan • Interfund loan EDA June 6, 2022 Establishment of Beltline Station 2 TIF District • TIF Renewal and Renovation District/TIF Plan • Interfund loan EDA June 6, 2022 Public Hearing and establishment of Beltline Station 1 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public Hearing and establishment of Beltline Station 2 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public hearing and Purchase Agreement between EDA and Sherman Associates for the Beltline Station Development EDA June 20, 2022 Approval of Contracts for Private Redevelopment for Beltline Station 1 TIF District and Beltline Station 2 TIF District. EDA June 20, 2022 Approval of Contracts for Private Development and Beltline Station Development AHTF Disbursement (Consent) City Council June 20, 2022 Planning Commission recommendation of Registered Land Survey Planning Commission TBD Approval of Registered Land Survey City Council TBD City council meeting of June 6, 2022 (Item No. 6a) Page 8 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of Beltline Station Tax Increment Financing District No. 1 within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have adopted a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for Beltline Station Tax Increment Financing District No. 1 (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the City Council of the City (the “City Council”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of the County (the “County Auditor”); and Whereas, on the date hereof, the Board of Commissioners of the Authority (the “Board”) approved the Redevelopment Plan Modification and the TIF Plan for the TIF District; and Whereas, the City Council has reviewed the contents of the Redevelopment Plan Modification and TIF Plan and on this date conducted a duly noticed public hearing on these documents, at which the views of all interested parties were heard; and Now, therefore, be it resolved by the City Council of the City of St. Louis Park, Minnesota as follows: City council meeting of June 6, 2022 (Item No. 6a) Page 9 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 Section 1. Findings for the Redevelopment Plan Modification for the Project. (a) The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein and therefore the City Council reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The purposes and development activities set forth in the proposed Redevelopment Plan Modification are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. (b) It is hereby found and determined that within the Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (c) It is further specifically found and determined that (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Redevelopment Plan Modification; (ii) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification, including without limitation the development of affordable housing within the City. Section 2. Findings for the Establishment of the TIF District. (a) It is found and determined that it is necessary and desirable for the sound and orderly development of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Project. (b) The TIF District is a housing district within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portions of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial, retail or other nonresidential use. (c) It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. (d) The proposed development to be financed in part through tax increment financing is necessary to permit the City to realize the full potential of the Project in terms of City council meeting of June 6, 2022 (Item No. 6a) Page 10 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 housing density, increased housing options in the City, transit-oriented development, and increased tax base. (e) The TIF Plan conforms to the general plan for development of the City as a whole and will generally serve to implement policies adopted in the City’s comprehensive plan, as the development contemplated in the TIF Plan has gone through extensive planning and zoning approvals and a Planned Unit Development for the development has been approved. (f) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Project by private enterprise because it will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City; result in additional availability of affordable housing units; eliminate and prevent blight and blighting factors within the Project and City; and help develop an underutilized site in the City. In addition, the TIF Plan will help the City and the Authority work towards the goals of providing more affordable housing units in the City. (g) Background information and facts supporting all the above findings are set forth in the TIF Plan, including but not limited to Appendix C, and the TIF Plan and all findings set forth therein are incorporated herein by reference. In reaching its conclusions regarding the TIF Plan, the City Council has also relied upon reports and recommendations of its staff and consultants, information submitted by the developer of the proposed development within the TIF District, as well as the knowledge of members of the City Council gained in hearings upon and during consideration of other matters relating to the proposed development. (h) The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. Section 3. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the Act. The TIF Plan will help facilitate development that will create diverse housing opportunities and increase the number and availability of affordable housing units in the City, eliminate blighting factors and underutilized land in the City, and improve the tax base. The City expressly finds that any private benefit to be received by a private developer is incidental, as the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 4. Approvals; Further Proceedings. (a) The TIF Plan for the TIF District and the Redevelopment Plan Modification are hereby approved and adopted in substantially the form on file at City Hall. (b) The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the County Auditor and to file a copy of TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. City council meeting of June 6, 2022 (Item No. 6a) Page 11 Title: Public Hearing – Establishment of the Beltline Station 1 Tax Increment Financing District - Ward 2 (c) The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and the Redevelopment Plan Modification and to negotiate, draft, prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: June 6, 2022 Public hearing: 6b Executive summary Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 Recommended action: Open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the Beltline Station 2 Tax Increment Financing District (a renewal and renovation district). (The EDA will have considered establishment of the Beltline Station 2 TIF District earlier in the evening and the related Contract for Private Development Contract will be considered on June 20, 2022.) Policy consideration: Does the city council wish to support the establishment of a renewal and renovation tax increment financing district to facilitate construction the proposed Beltline Station 2 TIF district associated with the market rate and parking components of the Beltline Station Development? Summary: A staff report regarding Sherman Associate’s application for tax increment financing (TIF) assistance in connection with the proposed Beltline Station Development was provided at the June 14, 2021 study session, and an update was provided via a staff report at the April 18, 2022 study session. As stated, constructing the Beltline Station Development is not feasible but for the use of the proposed tax increment due to extraordinary costs associated with the market rate components of the development and construction of associated parking. Given subsequent EDA support, the proposed financial assistance was advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Beltline Station 2 TIF district (a renewal and renovation district) and approve the related Contract for Private Redevelopment. Such authorizations enable the EDA to designate tax increment generated from the market rate building and parking garage within the development as partial reimbursement for certain qualified Public Redevelopment Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the Beltline Station 2 TIF District does not in itself commit the city to any specific level of financial assistance for the proposed market rate and parking components of the development. Procedurally, it simply creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment Costs. The terms and amount of TIF assistance are specified within the Redevelopment Contract with Sherman Associates which is scheduled for consideration by the EDA on June 20, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Resolution – TIF District TIF District Overview (provided in the related EDA staff report) Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 6b) Page 2 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 Discussion Background: In 2015 the city received a $6.4 million-dollar federal grant to construct a multi- level parking ramp in lieu of a large surface parking lot to serve the park and ride needs of the SWLRT at the Beltline Station. In summer 2017, the EDA entered into a preliminary development agreement with Sherman Associates to construct a development that meets the city’s objectives for the site which included: • Construct a signature, transit-oriented development (TOD). • Transform the SWLRT Beltline Boulevard Station Redevelopment Site into an active, TOD-focused place with: − Mixed use development (including multi-family residential, office and small commercial components), − Housing density to support transit ridership, − Mixed income housing (both market rate and affordable), and − High-quality shared site amenities. • Optimize the site’s development and employment potential. • Integrate development with the adjacent SWLRT Beltline Boulevard Station and connect with the surrounding areas. • Build a parking structure for required park-and-ride purposes. • Demonstrate high standards for environmental sustainability. The EDA determined Sherman Associates’ proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. City staff and Sherman Associates have been working on details and financing of the project for the past several years. The city council approved a comprehensive plan amendment on March 7, 2022, a preliminary and final plat on April 4, 2022, and a planned unit development rezoning on April 18, 2022 to enable to the Beltline Station Development to occur. The next steps in the process include establishing the Beltline Station 2 TIF District to create the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment Costs incurred in constructing the proposed development. Redeveloper’s request for public financing assistance and TIF application review: Sherman Associates previously indicated that the Beltline Station Development’s financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract financing. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. Ehlers determined that the proposed development would not be reasonably expected to occur but/for the provision of tax increment assistance and a deferred loan from the affordable housing trust fund for $618,238. TIF assistance is needed from Beltline Station 2 TIF District to reimburse the Redeveloper for a portion of its Public Redevelopment Costs (which includes the costs of soil remediation, utility relocation, grading, geopiers, and financing the city’s remaining share of the parking ramp City council meeting of June 6, 2022 (Item No. 6b) Page 3 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 costs) associated with the mixed-use, market rate, and parking ramp components of the development. Upon completion of the buildings and verification of the Redeveloper’s qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the city's TIF Policy. The EDA/city council received a report and discussed details of the TIF Application at the June 14, 2021 study session along with the recommendation for the level of assistance for which there was consensus support. The final assistance amounts will be considered at the June 20, 2022 EDA meeting when the EDA considers the Contract for Private Redevelopment. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Beltline Station 2 TIF District (a renewal and renovation district). Additional details of the proposed TIF District may be found in the larger Beltline Station 2 TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms of the financial assistance are contained in the separate Contract for Private Redevelopment between the parties. Both the TIF Plan and the Contract for Private Redevelopment need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Beltline Station 2 TIF District: In order to provide the Redeveloper with the proposed tax increment, a new renewal and renovation TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Beltline Station Development site and the proposed Beltline Station 2 TIF District are located within the city, the proposed Beltline Station 2 TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Beltline Station 2 TIF District is shown in the map below. City council meeting of June 6, 2022 (Item No. 6b) Page 4 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 Location of proposed Beltline Station 2 TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the Mixed-Use and Market Rate components of the redevelopment site which constitutes the proposed renewal and renovation TIF district. Therefore, the proposed TIF district includes the following six parcels and adjacent roads and internal rights of-way: • 4725 Highway 7 • 4501 Highway 7 • 3130 Monterey Avenue South • 3251 Natchez Avenue South • 3250 Natchez Avenue South • 3200 Lynn Ave City council meeting of June 6, 2022 (Item No. 6b) Page 5 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 Subject properties within proposed housing TIF district Qualifications of the proposed TIF district: Sherman Associates intends to acquire land at 4601 Highway 7, 3130 Monterey Avenue South, and portions of vacated right-of-way from the EDA for the construction of a seven-story mixed-use building with approximately 20,000 square feet of commercial, a five-story market rate building, and a 6.5 story parking ramp with 268 stalls for SWLRT park and ride purposes and approximately 2,000 square feet of ground floor commercial. Affiliates of Sherman Associates would own and manage the new mixed-use and market rate buildings for the long term. The parking ramp would be owned partially by the mixed-use building owner, partially by the market rate building owner, and partially by the EDA. The portion owned by the EDA would then be leased to the Metropolitan Council for public park and ride purposes. The various ownership areas of the parking ramp would be formally platted through a registered land survey. To qualify as a renewal and renovation TIF district, the MN TIF Act requires that at least 70 percent of the areas of the district must be occupied by buildings, streets, utilities, or other City council meeting of June 6, 2022 (Item No. 6b) Page 6 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 improvements; 20 percent of the buildings must be structurally substandard, and 30 percent of the other buildings must have conditions that require clearance or substantial renovation. Consulting firm LHB conducted a TIF district feasibility analysis to determine if the subject site qualified as a Renewal and Renovation District under the MN TIF Act. After inspecting and evaluating the subject properties and applying current statutory criteria, LHB made the following findings in its report entitled: Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Renewal and Renovation District: Beltline Station Renewal and Renovation TIF District dated March 31, 2022: • The proposed TIF District has a coverage calculation of 99.9 percent which is above the 70 percent requirement. • 50 percent of the buildings are structurally substandard which is above the 20 percent requirement. • 100 percent of the other buildings require substantial renovation or clearance which is above the 30 percent requirement. • The substandard buildings are reasonably distributed. Thus, the proposed Beltline Station 2 TIF District meets the “coverage test” and “Conditions of Buildings Test” and thereby qualifies under Minnesota Statutes, Section 469.174, Subdivision 10a as a renewal and renovation TIF District. Other findings for the qualification of the proposed TIF District are contained in Appendix D of the TIF Plan. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On March 7, 2022, city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from right-of-way and transit-oriented development to all transit-oriented development. On June 6, 2022 the city will approve a resolution finding the proposed Beltline Station 2 TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of renewal and renovation districts is up to 15 years after receipt of the first increment by the city (a total of 16 years of tax increment). The city elects in the Plan to receive the first tax increment in 2025. Thus, the full term of the district is estimated to terminate after 2040. The city’s expressed obligations to the Redeveloper are subject to the terms of the Redevelopment Contract, which are currently estimated to be satisfied in approximately 16 years. Property value and taxes: A portion of the properties are currently owned by the EDA and are tax exempt. Once the properties are sold to Sherman Associates, the combined assessed market value of the six parcels constituting the subject redevelopment site is just over $7.24 million. This is the proposed TIF district’s Base Value. The combined estimated market value of these properties upon the proposed development’s completion (for TIF estimation purposes) is $80.175 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the TIF Note to the Redeveloper until it is paid off (16 years). The city, county and school district would continue to receive the property taxes collected on the subject site’s Base Value. City council meeting of June 6, 2022 (Item No. 6b) Page 7 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 TIF district budget: The Beltline Station 2 TIF District Plan authorizes the use of tax increment funds generated by the new renewal and renovation TIF district to reimburse the Redeveloper for qualified Public Redevelopment Costs incurred in connection with the construction of the Beltline Station Development Mixed-Use, Market Rate, and Parking Components. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and not the actual expected project budget. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Beltline Station 2 TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Beltline Station 2 Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The contract for private redevelopment between the EDA and Sherman Associates which specifies the terms, conditions and amount of TIF assistance related to the Beltline Station Development Mixed-Use, Market Rate, and Parking Components of the project are scheduled for consideration by the EDA on June 20, 2022. Actions/public hearings Governing Body Date Establishment of Beltline Station 1 TIF District • TIF Housing District/TIF Plan • Interfund loan EDA June 6, 2022 Establishment of Beltline Station 2 TIF District • TIF Renewal and Renovation District/TIF Plan EDA June 6, 2022 City council meeting of June 6, 2022 (Item No. 6b) Page 8 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 • Interfund loan Public Hearing and establishment of Beltline Station 1 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public Hearing and establishment of Beltline Station 2 TIF District and conformance with comprehensive plan City Council June 6, 2022 Public hearing and Purchase Agreement between EDA and Sherman Associates for the Beltline Station Development EDA June 20, 2022 Approval of Contracts for Private Redevelopment for Beltline Station 1 TIF District and Beltline Station 2 TIF District. EDA June 20, 2022 Approval of Contracts for Private Development and Beltline Station Development AHTF Disbursement (Consent) City Council June 20, 2022 Planning Commission recommendation of Registered Land Survey Planning Commission TBD Approval of Registered Land Survey City Council TBD City council meeting of June 6, 2022 (Item No. 6b) Page 9 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of Beltline Station Tax Increment Financing District No. 2 within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have adopted a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for Beltline Station Tax Increment Financing District No. 2 (the “TIF District”), a renewal and renovation district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the City Council of the City (the “City Council”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of Hennepin County, Minnesota (the “County Auditor”); and Whereas, on the date hereof, the Board of Commissioners of the Authority (the “Board”) approved the Redevelopment Plan Modification and the TIF Plan for the TIF District; and Whereas, certain written reports (the ''Reports") relating to the Redevelopment Plan Modification and the TIF Plan and to the activities contemplated therein have heretofore been prepared by staff and consultants and submitted to the City Council and/or made a part of the City files and proceedings on the Redevelopment Plan Modification and the TIF Plan. The Reports, including the renewal and renovation qualification report prepared by LHB, Inc. on March 31, 2022 and planning documents, include data, information and/or substantiation constituting or relating to the basis for the other findings and determinations made in this resolution. The City Council hereby confirms, ratifies and adopts the Reports, which are hereby incorporated into and made as fully a part of this resolution to the same extent as if set forth in full herein; and City council meeting of June 6, 2022 (Item No. 6b) Page 10 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 Whereas, the City Council has reviewed the contents of the Redevelopment Plan Modification and TIF Plan and on this date conducted a duly noticed public hearing on these documents, at which the views of all interested parties were heard; and Now, therefore, be it resolved by the City Council of the City of St. Louis Park, Minnesota as follows: Section 1. Findings for the Redevelopment Plan Modification for the Project. (a) The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein and therefore the City Council reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The purposes and development activities set forth in the proposed Redevelopment Plan Modification are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. (b) It is hereby found and determined that within the Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (c) It is further specifically found and determined that (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Redevelopment Plan Modification; (ii) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole; and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification and the TIF Plan, including without limitation the development of a range of housing and promoting transit oriented development within the City. Section 2. Findings for the Establishment of the TIF District. (a) It is found and determined that it is necessary and desirable for the sound and orderly development and redevelopment of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Project. (b) It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value expected to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. City council meeting of June 6, 2022 (Item No. 6b) Page 11 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 (c) The proposed development to be financed in part through tax increment financing are necessary to permit the City to realize the full potential of the Project in terms of removal and/or renovation of substandard properties, housing density, transit-oriented development, increased housing options in the City, and increased tax base. (d) The TIF Plan conforms to the general plan for development of the City as a whole and will generally serve to implement policies adopted in the City’s comprehensive plan, as the development contemplated in the TIF Plan has gone through extensive planning and zoning approvals and a Planned Unit Development for the development has been approved. (e) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Project by private enterprise because it will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City; result in additional availability of housing units; eliminate and prevent blight and blighting factors within the Project and City; and help develop an underutilized site with substandard buildings in the City. (f) The TIF District is a renewal and renovation district under Section 469.174, subdivision 10a of the TIF Act. (g) Background information and facts supporting all the above findings are set forth in the TIF Plan, including but not limited to Appendix C, and the TIF Plan and all findings set forth therein are incorporated herein by reference. In reaching its conclusions regarding the TIF Plan, the City Council has also relied upon the Reports, the reports and recommendations of its staff and consultants, information submitted by the developer of the proposed development within the TIF District, as well as the knowledge of members of the City Council gained in hearings upon and during consideration of other matters relating to the proposed development. (h) The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. Section 3. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the Act. The TIF Plan will help facilitate development and redevelopment that will create diverse housing opportunities, eliminate blighting factors and underutilized land in the City, and improve the tax base. The City expressly finds that any private benefit to be received by a private developer is incidental, as the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 4. Approvals; Further Proceedings. (a) The TIF Plan for the TIF District and the Redevelopment Plan Modification are hereby approved and adopted in substantially the form on file at City Hall. City council meeting of June 6, 2022 (Item No. 6b) Page 12 Title: Public Hearing – Establishment of the Beltline Station 2 Tax Increment Financing District - Ward 2 (b) The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the County Auditor and to file a copy of TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. (c) The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and the Redevelopment Plan Modification and to negotiate, draft, prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: June 6, 2022 Public hearing: 6c Executive summary Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Recommended action: Open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the Wooddale Avenue Apartments Tax Increment Financing District (a housing district). (The EDA will have considered establishment of the Wooddale Avenue Apartment TIF District and the related Contract for Private Redevelopment earlier in the evening.) Policy consideration: Does the city council wish to support the establishment of a housing tax increment financing district to facilitate construction the proposed Wooddale Avenue Apartments development? Summary: A staff report regarding Real Estate Equities’ application for tax increment financing (TIF) assistance in connection with the proposed Wooddale Avenue Apartments development (which will be renamed to Arbor House) was provided at the March 28, 2022 study session. As stated in the report, constructing the Wooddale Avenue Apartments development is not feasible but for the use of the proposed tax increment and affordable housing trust fund financing due to extraordinary costs associated with redeveloping the site as well as the cost of constructing affordable housing with below market rents. Given subsequent EDA support, the proposed financial assistance was advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Wooddale Avenue Apartments TIF district (a housing district) and approve the related Contract for Private Redevelopment. Such authorizations enable the EDA to designate tax increment generated from the new apartment building as partial reimbursement for certain qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the project to make it financially feasible. Financial or budget considerations: Establishing the Wooddale Avenue Apartments TIF District does not commit the city to any specific level of financial assistance for the proposed project. Procedurally, it creates the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs. The terms and amount of TIF assistance are specified within the Redevelopment Contract with Real Estate Equities, which is also scheduled for consideration by the EDA on June 6, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion, resolution – TIF District, TIF District Overview (provided in the related EDA staff report) Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 6c) Page 2 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Discussion Background: Real Estate Equities has a purchase agreement with Aldersgate Methodist Church and proposes to remove the church building and redevelop the site with an all-affordable, three- to four-story apartment building. The development would include 114 dwelling units that would be affordable to households between 30 and 60 percent of the area median income (AMI). The plan proposes accessing the site from Wooddale Avenue with a driveway provided north of the cul-de-sac. 117 parking stalls would be provided underground, and 89 stalls would be provided in surface lots on the building’s west and north sides. Other proposed site improvements include sidewalks, new landscaping, an underground stormwater management system and a rooftop solar array generating 40-53 kw. The development would exceed the city’s green building policy as amended in July 2020 and would exceed the inclusionary housing policy as amended in October 2021. The inclusionary housing policy requires at least 20 percent of the units be affordable to households at 60 percent AMI. The proposed apartment building would be an all-affordable development with rents ranging from 30 percent to 60 percent 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 Redeveloper plans to include 37 three-bedroom units in the building’s unit mix, exceeding the policy requirements by 32 units in furtherance of the city’s goals for family-sized housing. City council approved a comprehensive plan amendment and a preliminary and final plat on April 4, 2022, and approved a vacation and a rezoning to a planned unit development on April 18, 2022 to enable the Wooddale Avenue Apartments development to occur. The next steps in the entitlement process include establishing the Wooddale Avenue Apartments TIF District to create the funding vehicle to reimburse the Redeveloper for a portion of its qualified Public Redevelopment and Affordable Housing Costs incurred in constructing the proposed development. Also on June 6, 2022, the EDA will be asked to consider approval of a Contract for Private Development which specifies the terms and conditions of the proposed financial assistance provided by the city for the development. Additionally, the city council will be asked to hold a public hearing and consider a resolution of approval for the TIF District and an approval finding the proposed Wooddale Avenue Apartments TIF District Plan conforms to the general plan for development of the city. Redeveloper’s request for public financing assistance and TIF application review: Due to the housing development’s extraordinary site preparation costs and 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 development’s funding making it financially infeasible without public financial assistance. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. City council meeting of June 6, 2022 (Item No. 6c) Page 3 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Ehlers determined that up to $940,000 in TIF assistance is warranted to enable the project to proceed. Such assistance would be provided via a pay-as-you-go TIF Note and would derive from the establishment of a new housing TIF district. The EDA received a staff report detailing the TIF Application at the March 28, 2022 study session along with a recommendation for the appropriate amount of financial assistance for which there was consensus support. In addition, Ehlers determined that $850,000 from the city’s Affordable Housing Trust Fund (AHTF) is necessary to offer rents at 50 percent area median income on five units and rents at 30 percent AMI on another five units for a period of 26 years and include an additional 32 three- bedroom units in the project. TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Wooddale Avenue Apartments TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger Wooddale Avenue Apartments TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms and conditions of the financial assistance are contained in the separate Redevelopment Contract between the parties. Both the TIF Plan and the Redevelopment Contract need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Wooddale Avenue Apartments TIF District: In order to provide the Redeveloper with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Wooddale Avenue Apartments redevelopment site and the proposed Wooddale Avenue Apartments TIF District are located within the city, the proposed Wooddale Avenue Apartments TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Wooddale Avenue Apartments TIF District is shown in the map below. City council meeting of June 6, 2022 (Item No. 6c) Page 4 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Location of proposed Wooddale Avenue Apartments TIF District The entirety of the tax increment to be provided to the Redeveloper would be derived from the subject redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following parcel and adjacent roads and internal rights of- way: • 3801 Wooddale Avenue City council meeting of June 6, 2022 (Item No. 6c) Page 5 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Qualifications of the proposed TIF district: Real Estate Equities has a purchase agreement with Aldersgate Methodist Church to acquire 3801 Wooddale Avenue located west of Highway 100, just south of the Highway 100 slip ramp, and east of Wooddale Avenue. Real Estate Equities intends to redevelop the site with a three to four story all-affordable workforce housing development with 114 dwelling units named Wooddale Avenue Apartments. Real Estate Equities would own and manage the new apartment building for the long term. 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 to households at 60 percent AMI. The proposed all-affordable development includes 114 units, including 104 units affordable to households at 60 percent area median income (AMI), five units affordable to households at 50 percent AMI, and five units affordable to households at 30 percent AMI, for a period of 26 years. Furthermore, due to the LIHTC allocation, the development will provide four additional years of affordability where all of the units will be affordable to households at or below 60 percent AMI, for a total of 30 years of affordable housing. City council meeting of June 6, 2022 (Item No. 6c) Page 6 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 114 housing units (100 percent) affordable to households at or below 60 percent of AMI, the proposed Wooddale Avenue Apartment development qualifies as a housing TIF district under the statute. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On April 4, 2022, the city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from C-Civic to RH - high density residential. The Metropolitan Council subsequently approved that amendment on May 25, 2022. The density of the proposed Wooddale Avenue Apartments development meets the requirements for RH – high density residential land use. On June 6, 2022, the city council will consider a resolution of approval finding the proposed Wooddale Avenue Apartments TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2049. The EDA and city have the option to decertify the district prior to the legally required date. The city’s expressed obligations to the Redeveloper, per the terms of the Redevelopment Contract, are estimated to be satisfied in approximately 15 years. Once those obligations are satisfied, the city may terminate the district or elect to retain it to assist other affordable housing projects and programs into the future. In the past, city council has elected to use pooled tax increment collected from housing TIF districts to help fund other affordable housing developments and programs throughout the city. Tax increment generated from Housing TIF districts have been used to help fund the Affordable Housing Trust Fund, HIA Programs, Affordable Homeownership Land Trust Program, 1st Time Homebuyer program, wealth building homeownership programs for underserved communities, and some home energy rebates. 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 of the development upon 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 Redeveloper 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 nearly $50,000. City council meeting of June 6, 2022 (Item No. 6c) Page 7 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) TIF district budget: The Wooddale Avenue Apartments TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the Redeveloper for qualified Public Redevelopment and Affordable Housing Costs incurred in connection with the construction of the Wooddale Avenue Apartments development. It should be noted that the Sources of Revenue and Uses of Funds within the TIF Plan is a not-to-exceed budget and not the actual expected project budget. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Wooddale Avenue Apartments TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Wooddale Avenue Apartments Tax Increment Financing District and authorization of an Interfund Loan in connection with the administration of the new TIF District. Next steps: The redevelopment contract between the EDA and Real Estate Equities which specifies the terms, conditions, and amount of TIF and AHTF assistance related to the proposed Wooddale Avenue Apartment project is also scheduled for consideration by the EDA on June 6, 2022. Additionally, that same evening, the city council will be asked to hold a public hearing regarding the establishment of the proposed TIF district. City council meeting of June 6, 2022 (Item No. 6c) Page 8 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Previous/future actions Governing body Date Establishment of the Wooddale Avenue Apartment TIF District • TIF Housing District/TIF Plan • Interfund loan EDA June 6, 2022 Approval of Contracts for Private Redevelopment for Wooddale Avenue Apartment TIF District. EDA June 6, 2022 Approval of Contract for Private Redevelopment for Wooddale Avenue Apartments and AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 City council meeting of June 6, 2022 (Item No. 6c) Page 9 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of the Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have adopted a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for the Wooddale Ave Apartments (Real Estate Equities) Tax Increment Financing District (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the City Council of the City (the “City Council”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of the County (the “County Auditor”); and Whereas, on the date hereof, the Board of Commissioners of the Authority (the “Board”) approved the Redevelopment Plan Modification and the TIF Plan for the TIF District; and Whereas, the City Council has reviewed the contents of the Redevelopment Plan Modification and TIF Plan and on this date conducted a duly noticed public hearing on these documents, at which the views of all interested parties were heard; and Now, therefore, be it resolved by the City Council of the City of St. Louis Park, Minnesota as follows: City council meeting of June 6, 2022 (Item No. 6c) Page 10 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Section 1. Findings for the Redevelopment Plan Modification for the Project. (a) The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein and therefore the City Council reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The purposes and development activities set forth in the proposed Redevelopment Plan Modification are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. (b) It is hereby found and determined that within the Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (c) It is further specifically found and determined that (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Redevelopment Plan Modification; (ii) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification, including without limitation the development of affordable housing within the City. Section 2. Findings for the Establishment of the TIF District. (a) It is found and determined that it is necessary and desirable for the sound and orderly development of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Project. (b) The TIF District is a housing district within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portions of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial, retail or other nonresidential use. (c) It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. City council meeting of June 6, 2022 (Item No. 6c) Page 11 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) (d) The proposed development to be financed in part through tax increment financing is necessary to permit the City to realize the full potential of the Project in terms of housing density, increased housing options in the City, and increased tax base. (e) The TIF Plan conforms to the general plan for development of the City as a whole and will generally serve to implement policies adopted in the City’s comprehensive plan, as the development contemplated in the TIF Plan has gone through extensive planning and zoning approvals and a Planned Unit Development for the development has been approved. (f) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Project by private enterprise because it will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City; result in additional availability of affordable housing units; eliminate and prevent blight and blighting factors within the Project and City; and help develop an underutilized site in the City. In addition, the TIF Plan will help the City and the Authority work towards the goals of providing more affordable housing units in the City. (g) Background information and facts supporting all the above findings are set forth in the TIF Plan, including but not limited to Appendix C, and the TIF Plan and all findings set forth therein are incorporated herein by reference. In reaching its conclusions regarding the TIF Plan, the City Council has also relied upon reports and recommendations of its staff and consultants, information submitted by the developer of the proposed development within the TIF District, as well as the knowledge of members of the City Council gained in hearings upon and during consideration of other matters relating to the proposed development. (h) The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. Section 3. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the Act. The TIF Plan will help facilitate development that will create diverse housing opportunities and increase the number and availability of affordable housing units in the City, eliminate blighting factors and underutilized land in the City, and improve the tax base. The City expressly finds that any private benefit to be received by a private developer is incidental, as the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 4. Approvals; Further Proceedings. (a) The TIF Plan for the TIF District and the Redevelopment Plan Modification are hereby approved and adopted in substantially the form on file at City Hall. (b) The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the County Auditor and to file a copy of TIF Plan with the City council meeting of June 6, 2022 (Item No. 6c) Page 12 Title: Public Hearing – Establishment of the Wooddale Avenue Apartments Tax Increment Financing District (Ward 2) Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. (c) The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and the Redevelopment Plan Modification and to negotiate, draft, prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: June 6, 2022 Public hearing: 6d Executive summary Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Recommended action: Open public hearing, take testimony, and then close the public hearing. Motion to adopt Resolution approving the establishment of the Rise on 7 Tax Increment Financing District (a housing district). (The EDA will have considered establishment of the Rise on 7 TIF District and the related Contract for Private Redevelopment earlier in the evening.) Policy consideration: Does the city council wish to support the establishment of a housing tax increment financing district to facilitate construction the proposed Rise on 7 development? Summary: A staff report regarding CommonBond Communities’ request for financial assistance in connection with the proposed Rise on 7 development was provided at the April 11, 2022 study session. As stated in the report, constructing the Rise on 7 development is not feasible but for the use of financial assistance (AHTF and TIF) due to extraordinary costs associated with redeveloping the site as well as the cost of constructing affordable housing with below market rents. Given subsequent EDA support, the proposed financial assistance was advanced for formal approval. It is now time to take the final steps in the TIF approval process to formally authorize the establishment of the Rise on 7 TIF district (a housing district) and approve the related Contract for Private Redevelopment. Such authorizations enable the EDA to designate tax increment generated from the new apartment building to repay the AHTF loan provided in connection with the construction of the development to make it financially feasible. Financial or budget considerations: Establishing the Rise on 7 TIF District does not commit the city to any specific level of financial assistance for the proposed project. Procedurally, it creates the funding vehicle to reimburse the AHTF with 100% of the annual tax increment generated from a new housing TIF district over 26 years. The terms and amount of financial assistance are specified within the Redevelopment Contract with CommonBond Communities, which is also scheduled for consideration by the EDA on June 6, 2022. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion, resolution – TIF District, TIF District Overview (provided in the related EDA staff report) Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 6d) Page 2 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Discussion Background: The existing building at 8115 State Highway No. 7 was built in 1955 and used as a place of worship and a daycare. The site was acquired by CommonBond Communities in 2020 from the former Prince of Peace Lutheran Church congregation. The Prince of Peace congregation merged with another local church and desired to leave behind a legacy of affordable housing for the community. The existing building is currently vacant and would be demolished. The daycare space does not meet current building and fire code requirements for occupancy. CommonBond Communities acquired the redevelopment site in 2020 and proposes to demolish the existing building and develop the site with an all-affordable, five-story mixed-use building. The development would include a daycare and 120 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 the Highway 7 frontage road and provides parking in a surface lot on the north side of the building and one level of structured parking on the ground floor of the building. The plan includes two outdoor play areas, one for the daycare and another for residents, as well as an outdoor recreation area. Other proposed site improvements include new landscaping, installation of new sidewalk connections, an underground stormwater management system and a 20kw rooftop solar array. CommonBond Communities completed a phase I and phase II environmental assessment of the subject site. It indicates debris from the construction of the Highway 7 was likely left on the property. Such debris will need to be removed and any residual contaminants remediated. Additionally, at least one underground storage tank was identified on the property. The tank will need to be properly removed and disposed of prior to the existing building’s demolition. The proposed apartment development exceeds the city’s inclusionary housing policy as amended in October 2021 and creates an all-affordable development with rents ranging from 30 percent area median income (AMI) to 60 percent AMI. Per the Metropolitan Council, the 30 percent AMI for a family of four is $31,450, the 50 percent AMI for a family of four is $52,450, and the 60 percent AMI for a family of four is $62,940. CommonBond plans to include 24 three- bedroom units in the building’s unit mix, including three three-bedroom units affordable at 30 percent AMI to further the city’s goals for affordable family-sized housing. By covenant, the housing would be kept affordable for at least 30 years per the requirements of the allocation for Low Income Housing Tax Credits the development has received. The development will exceed the city’s Green Building Policy as amended in July 2020 and intends to follow Enterprise Green Communities for its design tool. The development will also include the following sustainable features including: a 20kw rooftop solar array, increased efficiency in building envelope, heating and cooling equipment, plumbing and light fixtures, on site stormwater retention system, charging stations for electric vehicles, and bioswale and native plantings along the western yard of the property On June 21, 2021, city council approved a comprehensive plan amendment to re-guide the site’s land use from civic to high density residential, and a preliminary and final plat. On July 6, City council meeting of June 6, 2022 (Item No. 6d) Page 3 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) 2021, city council approved a preliminary and final planned unit development zoning district to allow the proposed all-affordable, multi-family residential development and daycare. The next steps in the entitlement process include establishing the Rise on 7 TIF District to create the funding vehicle to reimburse the Affordable Housing Trust Fund’s deferred loan provided to CommonBond Communities to construct the proposed development. Also on June 6, 2022, the EDA will be asked to consider approval of a Contract for Private Development which specifies the terms and conditions of the proposed financial assistance provided by the city for the development. Additionally, the city council will be asked to hold a public hearing and consider a resolution of approval for the TIF District and an approval finding the proposed Rise on 7 TIF District Plan conforms to the general plan for development of the city. Redeveloper’s request for public financing assistance and TIF application review: Due to decreased rental income from 100% of the units over 26 years, and the extraordinary site preparation costs outlined above, 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 infeasible without public financial assistance. To offset this gap, the Redeveloper applied to the EDA for tax increment financing (TIF) assistance. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary for the project to become financially feasible. Ehlers determined that a 40-year deferred loan in the amount of $1.8 million from the city’s Affordable Housing Trust Fund (AHTF) is necessary to enable the proposed development to become financially feasible. To repay the AHTF back sooner than 40-years, Ehlers recommends establishing a new housing TIF district on the site. The tax increment generated from the district would be used to pay back a portion of the AHTF loan over 26 years on a "pay-as-you-go" basis, through the establishment of an interfund loan. CommonBond would repay the deferred loan in full plus 1.00% interest, less any tax increment received at the earlier of 40-years, sale, refinance, or re-syndication. The EDA received a staff report detailing the TIF Application at the April 11, 2022 study session along with a recommendation for the appropriate amount of financial assistance for which there was consensus support. City council meeting of June 6, 2022 (Item No. 6d) Page 4 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Graphic showing the various funding sources and repayment paths TIF District Overview and Plan: The attached Tax Increment Financing District Overview summarizes the basic elements of the proposed Rise on 7 TIF District (a housing district). Additional details of the proposed TIF District may be found in the larger Rise on 7 TIF District Plan (available by contacting the Community Development Department). Both the Overview and TIF Plan were prepared by Ehlers. In a general sense, TIF Plans may be viewed as enabling legislation. They establish the proposed TIF district’s classification, geographic boundaries, maximum duration, maximum budget authority for tax increment revenues and expenditures, fiscal disparities election as well as estimated impact on various taxing jurisdictions along with findings which statutorily qualify the district. The specific mutual obligations between the EDA and the Redeveloper as well as the specific terms and conditions of the financial assistance are contained in the separate Redevelopment Contract between the parties. Both the TIF Plan and the Redevelopment Contract need to be approved for redevelopment projects requiring tax increment to proceed. Synopsis of the proposed Rise of 7 TIF District: In order to reimburse the city’s AHTF with the proposed tax increment, a new housing TIF district needs to be established. The MN TIF Act requires that proposed TIF districts must be located within a city’s Redevelopment Project Area(s). The boundaries of St. Louis Park’s Redevelopment Project Area No. 1 are coterminous with the municipal boundaries of the city. Given that the Rise on 7 redevelopment site and the proposed Rise on 7 TIF District are located within the city, the proposed Rise on 7 TIF District is also located within the city’s Redevelopment Project Area No. 1 as required. The location of the proposed Rise on 7 TIF District is shown in the map below. City council meeting of June 6, 2022 (Item No. 6d) Page 5 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Location of proposed Rise on 7 TIF District The entirety of the tax increment to be generated would be derived from the subject redevelopment site which constitutes the proposed housing TIF district. Therefore, the proposed TIF district includes the following parcel and adjacent roads and internal rights of- way: • 8115 Highway 7 City council meeting of June 6, 2022 (Item No. 6d) Page 6 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Qualifications of the proposed TIF district: CommonBond Communities acquired the redevelopment site in 2020 and proposes to demolish the existing building and develop the site with an all-affordable, five-story mixed-use building. The development would include a daycare and 120 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 the Highway 7 frontage road and provides parking in a surface lot on the north side of the building and one level of structured parking on the ground floor of the building. There are two outdoor play areas, one for the daycare and another for residents, as well as an outdoor recreation area. Other proposed site improvements include new landscaping, installation of new sidewalk connections, an underground stormwater management system and a 20kw rooftop solar array. 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 to households at 60 percent AMI. The proposed all-affordable development includes 120 units with rents ranging from 30 percent area median income (AMI) to 60 percent AMI. Under the inclusionary housing policy City council meeting of June 6, 2022 (Item No. 6d) Page 7 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) these units are required to be affordable for 26 years. However, due to the LIHTC allocation, these units will be affordable at the various income levels listed below for a total of 30 years. Unit Type 30% AMI 40% AMI 50% AMI 60% AMI Total units 1-bedroom 14 22 21 57 2-bedroom 2 37 39 3-bedroom 3 21 24 Total 19 22 21 58 120 To qualify as a housing TIF district, the MN TIF Act requires that at least 20 percent of the proposed units within a housing development must be affordable to households at or below 50 percent of AMI or 40 percent of the proposed units must be affordable to households at or below 60 percent of AMI. With 120 housing units (100 percent) affordable to households at or below 60 percent of AMI, the proposed Rise on 7 development qualifies as a housing TIF district under the statute. The MN TIF Act also requires cities to determine if a proposed TIF district is in conformance with its city’s Comprehensive Plan. On June 21, 2021, the city council approved an amendment to the 2040 Comprehensive Plan Future Land Use Plan which revised the future land use designation of the subject redevelopment site from C-Civic to RH - high density residential. The density of the proposed Rise on 7 development meets the requirements for RH – high density residential land use. On June 6, 2022, the city council will consider a resolution of approval finding the proposed Wooddale Avenue Apartments TIF District Plan conforms to the general plan for development of the city. Duration of the proposed TIF district: Under the MN TIF Act, the duration of housing districts is up to 25 years after receipt of the first increment by the city (a total of 26 years of tax increment). The first tax increment for this development is expected to be received in 2024. Thus, the full term of the district is estimated to terminate after 2050. The city intends to keep the district open until its estimated termination date in order to capture 100% of the annual tax increment generated plus interest to repay a portion of the AHTF. The tax increment collected will repay the interfund loan with a 4.00% interest rate to the AHTF. Interfund Loan: In order for the EDA to capture 100% of the tax increment from a newly established TIF district, there needs to be an in-district obligation. The EDA will need to approve an interfund loan of $1.8 million from the AHTF to the TIF district to satisfy the required in- district obligation. In addition, the EDA will need to approve a second interfund loan for $50,000 to recoup certain administrative costs in connection with the new TIF District. Property value and taxes: Until recently, the subject redevelopment property has been tax exempt from property taxes as the site was owned and used as a religious institution, until it was sold to CommonBond Communities. The current taxable market value of the subject redevelopment property is $2,735,000. This would be the proposed TIF district’s Base Value. The estimated market value upon the proposed development’s completion (for TIF estimation purposes) is estimated at approximately $21 million. Most of this value (minus the Base Value) would be captured as tax increment and used to make payments on the interfund loan until it is paid off or a triggering event happens where CommonBond is required to repay the deferred City council meeting of June 6, 2022 (Item No. 6d) Page 8 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) loan in full plus interest. The city, county and school district would continue to receive the property taxes collected on the subject site’s Base Value. TIF district budget: The Rise on 7 TIF District Plan authorizes the use of tax increment funds generated by the new housing TIF district to reimburse the city’s AHTF deferred loan provided in connection with the construction of the Rise on 7 development. Under current tax rates and classifications, it is anticipated over 26 years tax increment generated by the district will repay the AHTF approximately $1.5 million. Recommendation: The EDA’s financial consultant, Ehlers, prepared the Rise on 7 TIF District Plan in consultation with the EDA’s legal counsel, Kennedy & Graven and staff; all of whom recommend approval of the establishment the Rise on 7 Tax Increment Financing District and authorization of an Interfund Loan of $1.8 million from the AHTF to the TIF district to satisfy the in-district obligation and a second Interfund Loan of $50,000 in connection with the administration of the new TIF District. Next steps: The redevelopment contract between the EDA and CommonBond Communities which specifies the terms, conditions, and amount of TIF and AHTF assistance related to the proposed Rise on 7 project is also scheduled for consideration by the EDA on June 6, 2022. Additionally, that same evening, the city council will be asked to hold a public hearing regarding the establishment of the proposed TIF district. Previous/future actions Governing body Date Establishment of the Rise on 7 TIF District • TIF Housing District/TIF Plan Interfund loan for AHTF and Administrative costs EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7. EDA June 6, 2022 Approval of Contract for Private Redevelopment for Rise on 7 and AHTF Disbursement (Consent) City Council June 6, 2022 Public Hearing and establishment of Wooddale Avenue Apartments TIF District and conformance with comprehensive plan City Council June 6, 2022 City council meeting of June 6, 2022 (Item No. 6d) Page 9 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Resolution No. 22-______ Resolution approving a modification to the redevelopment plan for Redevelopment Project No. 1, the establishment of the Rise on 7 Tax Increment Financing District within the redevelopment project, and a tax increment financing plan therefor Whereas, the City of St. Louis Park, Minnesota (the “City”) and the St. Louis Park Economic Development Authority (the “Authority”) have previously established Redevelopment Project No. 1 (the “Project”) within the City and have adopted a Redevelopment Plan (the “Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended (together, the “Act”); and Whereas, the City and the Authority have proposed to approve a Modification to the Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and the Tax Increment Financing (TIF) Plan (the “TIF Plan”) for the Rise on 7 Tax Increment Financing District (the “TIF District”), a housing district, within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”), all as described in a plan document presented to the City Council of the City (the “City Council”) on the date hereof; and Whereas, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”) representing the area to be included in the TIF District at least 30 days before the publication of the notice of public hearing; and Whereas, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School District No. 283 (St. Louis Park Public Schools) and to the Taxpayer Services Division Manager, as county auditor, of the County (the “County Auditor”); and Whereas, on the date hereof, the Board of Commissioners of the Authority (the “Board”) approved the Redevelopment Plan Modification and the TIF Plan for the TIF District; and Whereas, the City Council has reviewed the contents of the Redevelopment Plan Modification and TIF Plan and on this date conducted a duly noticed public hearing on these documents, at which the views of all interested parties were heard; and Now, therefore, be it resolved by the City Council of the City of St. Louis Park, Minnesota as follows: City council meeting of June 6, 2022 (Item No. 6d) Page 10 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Section 1. Findings for the Redevelopment Plan Modification for the Project. (a) The boundaries of the Project are not being expanded and the Redevelopment Plan is not being modified other than to incorporate the establishment of the TIF District therein and therefore the City Council reaffirms the findings and determinations originally made in connection with the establishment of the Project area and the adoption of the Redevelopment Plan therefor. The purposes and development activities set forth in the proposed Redevelopment Plan Modification are hereby expanded by to include all development and redevelopment activities occurring within the TIF District. (b) It is hereby found and determined that within the Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (c) It is further specifically found and determined that (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Redevelopment Plan Modification; (ii) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole, and otherwise promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan Modification, including without limitation the development of affordable housing within the City. Section 2. Findings for the Establishment of the TIF District. (a) It is found and determined that it is necessary and desirable for the sound and orderly development of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Project. (b) The TIF District is a housing district within the meaning of Minnesota Statutes, Section 469.174, Subdivision 11, because it consists of a project or portions of a project intended for occupancy, in part, by persons or families of low and moderate income as defined in Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other similar present or future federal, state or municipal legislation or the regulations promulgated under any of those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments will consist of commercial, retail or other nonresidential use. (c) It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. City council meeting of June 6, 2022 (Item No. 6d) Page 11 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) (d) The proposed development to be financed in part through tax increment financing is necessary to permit the City to realize the full potential of the Project in terms of housing density, increased housing options in the City, and increased tax base. (e) The TIF Plan conforms to the general plan for development of the City as a whole and will generally serve to implement policies adopted in the City’s comprehensive plan, as the development contemplated in the TIF Plan has gone through extensive planning and zoning approvals and a Planned Unit Development for the development has been approved. (f) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Project by private enterprise because it will provide an impetus for residential development, which is desirable or necessary for increased population and an increased need for life-cycle housing within the City; result in additional availability of affordable housing units; eliminate and prevent blight and blighting factors within the Project and City; and help develop an underutilized site in the City. In addition, the TIF Plan will help the City and the Authority work towards the goals of providing more affordable housing units in the City. (g) Background information and facts supporting all the above findings are set forth in the TIF Plan, including but not limited to Appendix C, and the TIF Plan and all findings set forth therein are incorporated herein by reference. In reaching its conclusions regarding the TIF Plan, the City Council has also relied upon reports and recommendations of its staff and consultants, information submitted by the developer of the proposed development within the TIF District, as well as the knowledge of members of the City Council gained in hearings upon and during consideration of other matters relating to the proposed development. (h) The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. Section 3. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the Act. The TIF Plan will help facilitate development that will create diverse housing opportunities and increase the number and availability of affordable housing units in the City, eliminate blighting factors and underutilized land in the City, and improve the tax base. The City expressly finds that any private benefit to be received by a private developer is incidental, as the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 4. Approvals; Further Proceedings. (a) The TIF Plan for the TIF District and the Redevelopment Plan Modification are hereby approved and adopted in substantially the form on file at City Hall. (b) The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the County Auditor and to file a copy of TIF Plan with the City council meeting of June 6, 2022 (Item No. 6d) Page 12 Title: Public Hearing – Establishment of the Rise on 7 Tax Increment Financing District (Ward 2) Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. (c) The County Auditor is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and the Redevelopment Plan Modification and to negotiate, draft, prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: June 6, 2022 Public hearing: 6e Executive summary Title: Public hearing on Bridgewalk Condominium Homeowners’ Association Revised Housing Improvement Area (HIA) – Ward 4 Recommended action: Mayor to open public hearing, take testimony, then close the public hearing. Motion to approve first reading of an ordinance establishing the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area pursuant to Minnesota statutes, sections 428A.11 to 428A.21 and to set second reading date for June 20, 2022. Policy consideration: Does the city council support the creation of the Housing Improvement Area for the Bridgewalk Condominium Homeowners’ Association? Summary: The city is authorized by state statute to establish HIAs as a finance tool for private housing improvements. 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 city adopted an HIA policy in 2001 and has previously established eight HIAs. The city council held a public hearing February 7, 2022 and adopted the ordinance establishing the Bridgewalk HIA and fee resolution for $5.97 million at the February 22, 2022 council meeting. Bids for the project came in significantly higher than original estimates; therefore, the scope of work needed to be reduced to accommodate the budget. The city is required to hold a new public hearing, adopt a new ordinance and resolution and allow for a 45-day veto period based on the new list of proposed improvements. The petitions are still valid and meet the city threshold of 70% of homeowners petitioning the city council for the establishment of the HIA. The project budget increased $10,000 to $5.98 million due to additional bond issuance costs and city fees. Financial or budget considerations: If approved the HIA would be funded with a combination of bonds and an EDA internal loan. The maximum HIA amount would be $5.98 million. The council already approved $5.97 million for this HIA. The new budget is an increase of $10,000. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion HIA fee structure Resolution Ordinance Prepared by: Marney Olson, housing supervisor Reviewed by: Melanie Schmitt, finance director Michele Schnitker, housing manager/deputy CD director Karen Barton, community development director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 6e) Page 2 Title: Public hearing on Bridgewalk Condominium Homeowners’ Association Revised Housing Improvement Area (HIA) – Ward 4 Discussion Background: The city is authorized by state statute to establish Housing Improvement Areas (HIAs) as a finance tool for private housing improvements. 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 city adopted an HIA policy in 2001 and has previously established eight HIAs. The city council adopted the ordinance establishing the Bridgewalk HIA along with the fee resolution for $5.97 million on February 22, 2022. The association submitted an application on October 5, 2021, for $5.77 million dollars to create a Housing Improvement Area. With city fees and soft costs, the total request was $5.97 million. Bridgewalk is a 92-unit condominium building built in 1972 in need of significant improvements. The association hired Encompass to evaluate the repairs needed at Bridgewalk along with a budget estimate. The application also included a reserve plan, financial plan, and reserve study conducted by Reserve Advisors. The reserve plan and financial plan demonstrate how the association will ensure that they will adequately plan for future improvements and ongoing maintenance. Present considerations: Bids for the project came in significantly higher than original estimates; therefore, the scope of work needed to be reduced to accommodate the budget. Because the original public hearing included more projects than the budget allows, the city is required to hold a new public hearing, adopt a new ordinance and resolution, and allow for a 45-day veto period based on the new list of proposed improvements. The petitions are still valid and meet the city threshold of 70% of homeowners petitioning the city council for the establishment of the HIA. The project budget increased $10,000 to $5.98 million dollars due to additional bond issuance costs and city fees. The improvements remain critical for the association to complete. There is still strong support from homeowners at Bridgewalk to move forward with this project. Proposed improvements: There is extensive work needed at Bridgewalk which was identified in the reserve study and the comprehensive assessment completed by Encompass. Although the association is not able to undertake all of the original proposed projects from the February 7 public hearing, they will still be able to complete all of the critical components of the HIA project. In addition, they have updated their long-range reserve study to reflect the work that will need to be completed in the future. Revised proposed improvements to begin in 2022: Exterior building elements, including improvements to, replacements of or repair of flat roofs over portion of pool area, north and south buildings and vestibule; main entry improvements including but not limited to an ADA access ramp at main entrance; balconies; exterior siding; masonry; common area windows and doors. Interior building elements, including improvements to the lobby vestibule and doors; common area carpeting and paint. Building service elements, including improvements to, replacements of or repair of electrical panel in boiler room; upgrade control system for heating boilers. Pool elements, including west wall replacement; pool HVAC improvements. City council meeting of June 6, 2022 (Item No. 6e) Page 3 Title: Public hearing on Bridgewalk Condominium Homeowners’ Association Revised Housing Improvement Area (HIA) – Ward 4 Garage elements, including improvements to, replacements of, and repair to exhaust and heating systems. Property site elements, including improvements to retaining walls. Unit elements, including improvements to or replacement of unit windows and patio doors (low-E glass) Additional improvements: Should there be additional HIA funds left over after all proposed improvements are complete, the Association may use the remaining funds for the following additional improvements: an overhaul of the south elevator, upgrades to the life safety system, paint stairwells and replace stairwell railings, and replace the concrete ramps to the parking garages. Funding: The HIA will be funded using a combination of an internal EDA loan and general obligation special assessment debt for HIAs. The EDA loan will cover the amount of anticipated hardship deferrals and the balance will be bonds. Due to increased costs and the need to hold another public hearing, the association has decided not to use a construction loan as previously requested. The primary purpose for requesting the construction loan was to reduce the HIA fees if costs came in under budget. With the increased project costs the association has identified additional projects to be undertaken if they have any leftover money in the budget eliminating the primary benefit of the construction loan. Association information: Bridgewalk is located at 450 Ford Road • 92 condominium units built in 1972 with 35 one-bedroom units, 50 two-bedroom units, and seven three-bedroom units. • The 2021 median estimated market value (EMV) is $133,800 and the range of EMV is $97,000 to 190,400. These units meet the affordable homeownership limit set by the met council. • 72 of the 92 units (78%) are homesteaded The creation of the Bridgewalk HIA will preserve affordable homeownership in St. Louis Park. Total Loan Amount The total loan amount is $5,980,000: $5,770,000 common costs, $153,520 for costs associated with bond issuance, and $56,480 for city administrative, legal, financial costs, and rounding. Bridgewalk HIA Sources & Uses 20 Years Sources of Funds Par Amount of Bonds $5,210,000 EDA Cash Contribution $770,000 Total Sources $5,980,000 Uses of Funds Common costs $5,770,000 Total Underwriter’s Discount (1.200%) $62,520 Costs of Issuance $91,000 Rounding $2,505 City Admin Fee (0.5%) $28,975 EDA Soft Costs $25,000 City council meeting of June 6, 2022 (Item No. 6e) Page 4 Title: Public hearing on Bridgewalk Condominium Homeowners’ Association Revised Housing Improvement Area (HIA) – Ward 4 Total project costs $5,980,000 The term of the loan and imposed fees would be 20 years. The loan will be repaid by a fee attached to each property unit. The county will receive the payments through the property tax system and pass back to the city. This is a low-risk way for the city to assist with bringing the property up to date to ensure many years of continued use for current and future owners. Preliminary estimates of the fees to be imposed on housing units in the Bridgewalk Condominium Homeowner’s Association are based on an interest rate of approximately 6.00%. This interest rate is subject to change based on market conditions. Amount to be charged against each housing unit: Estimates of the Housing Improvement Fee to be imposed on housing units in the Bridgewalk HIA range from $41,322 to $113,022 as shown in the attached table. Fees per unit are based on square footage (percentage of individed ownership) as prescribed in Exhibit A to the Bridgewalk Condominium Declaration. Unless prepaid by August 5, 2022, interest on the per-unit fees will be charged at a rate of 6.00% per annum. Payments in full are allowed in future years by November 15 of each year. No partial payments are allowed. At the time of sale, the HIA fee can remain with the unit or be paid off. Filing an objection and veto period: Housing unit owners subject to the Housing Improvement Fee have a right to veto either the ordinance, resolution, or both if owners of at least 45 percent of the housing units within the Bridgewalk HIA file a written objection with the city clerk before the effective date of the ordinance or resolution which is August 4, 2022. Next steps: The next step in the HIA process is the public hearing and first reading of the ordinance scheduled for June 6. Bridgewalk proposed HIA timeline: June 20, 2022 Second reading/adoption of ordinance and resolution By June 24, 2022 Mail summary of ordinance to unit owners By July 5, 2022 Mail ordinance to Commissioner of Revenue July 8, 2022 July 18, 2022 August 1, 2022 August 4, 2022 Hardship deferral applications due Presale of bonds Development agreement Veto period ends August 5, 2022 Prepayments due August 15, 2022 Council approves bond sale and EDA loan Resolution No. 22-____ Resolution approving a housing improvement fee for the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area pursuant to Minnesota Statutes, Sections 428A.11 to 428A.21 BE IT RESOLVED by the City Council of the City of St. Louis Park as follows: Section 1. Recitals. 1.01. The City of St. Louis Park (the "city") is authorized under Minnesota Statutes, Sections 428A.11 to 428A.21 (the "Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. 1.02. The City Council of the city (the “council”) adopted a Housing Improvement Area policy on July 16, 2001 (the “HIA Policy”). 1.03. By Ordinance No. _________ adopted on February 22 June 20, 2022 (the "Enabling Ordinance"), the council has established the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area (the “Bridgewalk HIA”) in order to facilitate certain improvements requested by the Bridgewalk Condominium Homeowners’ Association, Inc. (the “Association”) to property known as the Bridgewalk Condominium and constituting the Bridgewalk HIA, all in accordance with the HIA Policy and the Act. 1.04. In accordance with Section 428A.12 of the Act and with the HIA Policy, owners of at least 70 percent of the housing units within the Bridgewalk HIA have filed petitions with the City Clerk of the city requesting a public hearing regarding imposition of a housing improvement fee for the Bridgewalk HIA. 1.05. In accordance with Section 428A.13 of the Act, the council held a duly noticed public hearing on February 7 June 6, 2022 regarding adoption of this resolution, at which all persons, including owners of property within the Bridgewalk HIA, were given an opportunity to be heard. 1.06. The council finds that the Bridgewalk HIA meets each of the approval criteria contained in the HIA Policy (listed as 5.01A- 5.01M), including the criterion that a majority of the Association owners support the project and the financing thereof. 1.07. Prior to the date hereof, the Association has submitted to the city a financial plan prepared by Reserve Advisors, an independent third party, that provides for the Association to finance maintenance and operation of the Common Elements (as defined in the Association’s bylaws) in the Bridgewalk HIA, and a long-range plan to conduct and finance capital improvements therein, all in accordance with Section 428A.14 of the Act. 1.08. For the purposes of this resolution, the terms "Bridgewalk HIA" and "Housing Improvements" have the meanings provided in the Enabling Ordinance. Section 2. Housing Improvement Fee Imposed. 2.01. The total cost of the Housing Improvements are $5,980,000 including construction costs, soft costs, costs of issuing bonds to finance the improvements, and capitalized interest. The city hereby imposes a fee on each housing unit within the Bridgewalk HIA (the "Housing Improvement Fee"), in the maximum amount specified in Exhibit A attached hereto, which is imposed for Housing Improvements as a percentage of undivided ownership interest of each unit, all as prescribed in the Amended and Restated Declaration of Bridgewalk Association. 2.02. The council hereby finds that the Housing Improvement Fee for units in the Bridgewalk HIA is being imposed based on square footage (percentage of undivided ownership interest) as prescribed in Exhibit A to the Bridgewalk Condominium Declaration. 2.03. Housing unit owners may prepay the Housing Improvement Fee in total and without interest thereon between the effective date of this resolution and August 1, 2022. The amount of the prepayment is shown under the heading “Total Cost (Prepayment Amount)” in Exhibit A attached hereto. Partial prepayment of the Housing Improvement Fee shall not be permitted. Prepayment must be made to the City Treasurer. Housing unit owners may also fully prepay the unpaid portion of their Housing Improvement Fee in any subsequent year. If a prepayment is made by November 15 of any year, the amount must include interest at the rate of 4.83 6.00% through the end of that calendar year. If the prepayment is made after November 15, the amount must include interest through the end of the following calendar year. 2.04. If the total Housing Improvement Fee is not prepaid between the effective date of this resolution and August 1 5, 2022, the Housing Improvement Fee shall be imposed as an annual fee, in an amount not to exceed the amount shown under the heading “Annual Fee” in Exhibit A, subject to adjustment as provided in Section 5 hereof. The Housing Improvement Fee shall be imposed to pay principal and interest on certain bonds to be issued by the city to finance a portion of the Housing Improvements (the “Bonds”) and on an internal loan to be made by the City to the Association to finance a portion of the Housing Improvements, in accordance with the Enabling Ordinance and the Act. The Annual Fee shall be imposed in equal installments, beginning in 2023, for a period no greater than 20 years after the first installment is due and payable. The Annual Fee shall be deemed to include interest on the unpaid portion of the total Housing Improvement Fee. Interest at an annual interest rate of 4.83 6.00 percent per annum shall begin to accrue on the Housing Improvement Fee from the date of closing on the Bonds. Upon issuance of the Bonds, the City Clerk shall cause to be prepared a schedule indicating the finalized Annual Fee for each Housing Unit for which the Housing Improvement Fee has not been prepaid, which schedule shall be attached as Exhibit B to this Resolution in the city’s official records. The Annual Fee shall be structured such that estimated collection of the Annual Fee will produce at least five percent in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and internal loan. 2.05. Unless prepaid between the effective date of this resolution and August 1 5, 2022, the Housing Improvement Fee shall be payable at the same time and in the same manner as provided for payment and collection of ad valorem taxes, as provided in Sections 428A.15 and 428A.05 of the Act. As set forth therein, the Housing Improvement Fee is not included in the calculation of levies or limits on levies imposed under any law or charter. 2.06. The Housing Improvement Fee imposed against each housing unit shall not exceed the amount specified in Exhibit A hereto; provided, however, that the Housing Improvement Fee may be reduced at any time before issuance of the Bonds, which reduction shall be applied pro rata to each housing unit's Housing Improvement Fee on the basis described in Section 2.01 hereof; and further provided that if any housing unit owners have prepaid the Housing Improvement Fee prior to any reduction in that fee, the City shall promptly reimburse such housing unit owner in the amount of the pro rata share of any reduction in the fee amount. Upon any reduction in the Housing Improvement Fee, the City Clerk shall cause to be prepared a revised copy of Exhibit A hereto, which shall be attached to this Resolution in the City's official records and shall be promptly mailed to all housing unit owners within the Housing Improvement Area. Within 30 days after issuance of the Bonds the City Clerk shall mail to each housing unit owner a copy of Exhibit B to this Resolution showing the final annual fee imposed against each housing unit for which the Housing Improvement Fee has not been prepaid. 2.07. A de minimis fee may be imposed by Hennepin County for services in connection to administration required in order for the fee to be made payable at the same time and in the same manner as provided for payment and collection of ad valorem taxes. Section 3. Notice of Right to File Objections. 3.01. Within five days after the adoption of this resolution, the City Clerk is authorized and directed to mail to the owner of each housing unit in the Bridgewalk HIA: a summary of this resolution, notice that owners subject to the Housing Improvement Fee have a right to veto this resolution if owners of at least 45 percent of the housing units within the Bridgewalk HIA file a written objection with the City Clerk before the effective date of this resolution, and notice that a copy of this resolution is on file with the City Clerk for public inspection. Section 4. Effective Date. 4.01. This Resolution shall be effective 45 days after adoption hereof, subject to (a) the veto rights of housing unit owners under Section 428A.18 of the Act; and (b) execution in full of a development agreement between the City and the Association, providing for construction of the Housing Improvements. Section 5. Filing of Housing Improvement Fee. 5.01. Upon issuance of the Bonds, the City Clerk shall file a certified copy of this resolution together with a final update of Exhibits A and B hereto to the Hennepin County Director of Taxation to be recorded on the property tax lists of the county for taxes payable in 2023 and thereafter. Section 6. Prior Resolution. 6.01 This resolution amends, replaces and supersedes Resolution No. 22-029 for the Bridgewalk HIA adopted on February 22, 2022. Reviewed for administration: Adopted by the City Council February 22, June 20 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Exhibit A to Resolution No. _______ City of St. Louis Park Housing Improvement Area - Bridgewalk HIA Assessment Allocation Unit No. Percentage Interest Total Common Area Construction Cost Total Financing & Soft Costs TOTAL COSTS (PREPAYMENT AMOUNT) * Annual Fee (105% of Total Costs) Total P & I Paid Per Unit (105%) - Non prepaid only 101 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 102 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 103 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 104 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 105 0.01678 $96,821 $3,524 $100,344 $9,185.91 $183,718.12 106 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 107 0.01102 $63,585 $2,314 $65,900 $6,032.70 $120,653.98 108 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 109 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 110 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 111 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 112 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 113 0.01412 $81,472 $2,965 $84,438 $7,729.74 $154,594.75 114 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00 115 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 116 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00 117 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 118 0.01678 $96,821 $3,524 $100,344 $9,185.91 $183,718.12 119 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 120 0.01371 $79,107 $2,879 $81,986 $7,505.29 $150,105.81 121 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 122 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 123 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 124 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 125 0.01106 $63,816 $2,323 $66,139 $6,054.60 $121,091.92 126 0.01412 $81,472 $2,965 $84,438 $7,729.74 $154,594.75 127 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 128 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00 129 0.00850 $49,045 $1,785 $50,830 $4,653.17 $93,063.41 130 0.01100 $63,470 $2,310 $65,780 $6,021.75 $120,435.00 201 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 202 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 203 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 204 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 205 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 206 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90 207 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 208 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 209 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 210 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 211 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 212 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 213 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 214 0.01454 $83,896 $3,053 $86,949 $7,959.66 $159,193.18 215 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 216 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65 217 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 218 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65 219 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90 220 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 221 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 222 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 223 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 224 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 225 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 226 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 227 0.01454 $83,896 $3,053 $86,949 $7,959.66 $159,193.18 228 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65 229 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 230 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65 231 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 301 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 302 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 303 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 304 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 305 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 306 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90 307 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 308 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 309 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 310 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 311 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 312 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 313 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 314 0.01454 $83,896 $3,053 $86,949 $7,959.66 $159,193.18 315 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 316 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65 317 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 318 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65 319 0.01731 $99,879 $3,635 $103,514 $9,476.05 $189,520.90 320 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 321 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 322 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 323 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 324 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 325 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 326 0.01133 $65,374 $2,379 $67,753 $6,202.40 $124,048.05 327 0.01890 $109,053 $3,969 $113,022 $10,346.46 $206,929.23 328 0.00691 $39,871 $1,451 $41,322 $3,782.75 $75,655.08 329 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 330 0.01126 $64,970 $2,365 $67,335 $6,164.08 $123,281.65 331 0.00863 $49,795 $1,812 $51,607 $4,724.34 $94,486.73 GRAND TOTAL 100.00% $5,770,000.00 $210,000.00 $5,980,000.00 $547,431.83 $10,948,636.67 * Note: Annual fee amount is calculated based upon payment of total costs at 105% City of St. Louis Park Housing Improvement Area - Bridgewalk HIA Assessment Allocation Unit No. Percentage Interest Total Common Area Construction Cost Total Financing & Soft Costs TOTAL COSTS (PREPAYMENT AMOUNT) * Annual Fee (105% of Total Costs) Total P & I Paid Per Unit (105%) - Non prepaid only 101 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 102 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 103 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 104 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 105 0.01678 $96,821 $3,356 $100,177 $8,318.34 $166,366.72 106 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 107 0.01102 $63,585 $2,204 $65,789 $5,462.94 $109,258.72 108 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 109 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 110 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 111 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 112 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 113 0.01412 $81,472 $2,824 $84,296 $6,999.70 $139,993.93 114 0.01100 $63,470 $2,200 $65,670 $5,453.02 $109,060.43 115 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 116 0.01100 $63,470 $2,200 $65,670 $5,453.02 $109,060.43 117 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 118 0.01678 $96,821 $3,356 $100,177 $8,318.34 $166,366.72 119 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 120 0.01371 $79,107 $2,742 $81,849 $6,796.45 $135,928.95 121 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 122 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 123 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 124 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 125 0.01106 $63,816 $2,212 $66,028 $5,482.77 $109,655.30 126 0.01412 $81,472 $2,824 $84,296 $6,999.70 $139,993.93 127 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 128 0.01100 $63,470 $2,200 $65,670 $5,453.02 $109,060.43 129 0.00850 $49,045 $1,700 $50,745 $4,213.70 $84,273.97 130 0.01100 $63,470 $2,200 $65,670 $5,453.02 $109,060.43 201 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 202 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 203 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 204 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 205 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 206 0.01731 $99,879 $3,462 $103,341 $8,581.07 $171,621.45 207 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 208 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 209 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 210 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 211 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 212 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 213 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 214 0.01454 $83,896 $2,908 $86,804 $7,207.90 $144,158.05 215 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 216 0.01126 $64,970 $2,252 $67,222 $5,581.91 $111,638.22 217 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 218 0.01126 $64,970 $2,252 $67,222 $5,581.91 $111,638.22 219 0.01731 $99,879 $3,462 $103,341 $8,581.07 $171,621.45 220 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 221 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 222 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 223 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 224 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 225 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 226 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 227 0.01454 $83,896 $2,908 $86,804 $7,207.90 $144,158.05 228 0.01126 $64,970 $2,252 $67,222 $5,581.91 $111,638.22 229 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 230 0.01126 $64,970 $2,252 $67,222 $5,581.91 $111,638.22 231 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 301 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 302 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 303 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 304 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 305 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 306 0.01731 $99,879 $3,462 $103,341 $8,581.07 $171,621.45 307 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 308 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 309 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 310 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 311 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 312 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 313 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 314 0.01454 $83,896 $2,908 $86,804 $7,207.90 $144,158.05 315 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 316 0.01126 $64,970 $2,252 $67,222 $5,581.91 $111,638.22 317 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 318 0.01126 $64,970 $2,252 $67,222 $5,581.91 $111,638.22 319 0.01731 $99,879 $3,462 $103,341 $8,581.07 $171,621.45 320 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 321 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 322 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 323 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 324 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 325 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 326 0.01133 $65,374 $2,266 $67,640 $5,616.61 $112,332.24 327 0.01890 $109,053 $3,780 $112,833 $9,369.28 $187,385.64 328 0.00691 $39,871 $1,382 $41,253 $3,425.49 $68,509.78 329 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 330 0.01126 $64,970 $2,252 $67,222 $5,581.91 $111,638.22 331 0.00863 $49,795 $1,726 $51,521 $4,278.14 $85,562.86 GRAND TOTAL 100.00% $5,770,000.00 $200,000.00 $5,970,000.00 $495,729.21 $9,914,584.14 Ordinance No. ___ Ordinance establishing the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area pursuant to Minnesota Statutes, Sections 428A.11 to 428A.21 The City of St. Louis Park does hereby ordain: Section 1. Recitals. 1.01. The City of St. Louis Park (the "city") is authorized under Minnesota Statutes, Sections 428A.11 to 428A.21 (the "Act") to establish by ordinance a housing improvement area within which housing improvements are made or constructed and the costs of the improvements are paid in whole or in part from fees imposed within the area. 1.02. The City Council of the city (the “council”) adopted a Housing Improvement Area policy on July 16, 2001 (the “HIA Policy”). 1.03. The city has determined a need to establish the Bridgewalk Condominium Homeowners’ Association Housing Improvement Area (Bridgewalk HIA) as further defined herein, in order to facilitate certain improvements to property known as Bridgewalk Condominium, all in accordance with the HIA Policy and the Act. 1.04. The city has consulted with the Bridgewalk Condominium Owners’ Association (the “Association”) and with residents in the proposed Bridgewalk HIA regarding the establishment of the Bridgewalk HIA and the housing improvements to be constructed and financed under this ordinance. Section 2. Findings. 2.01. The council finds that, in accordance with Section 428A.12 of the Act and with the city’s HIA Policy, owners of at least 70 percent of the housing units within the proposed Bridgewalk HIA have filed a petition with the City Clerk requesting a public hearing regarding the establishment of the Bridgewalk HIA. 2.02. In accordance with Section 428A.13 of the Act, the council held a duly noticed public hearing on February 7 June 6, 2022 regarding adoption of this ordinance, at which all persons, including owners of property within the proposed Bridgewalk HIA, were given an opportunity to be heard. 2.03. The council finds that, without establishment of the Bridgewalk HIA, the Housing Improvements (as hereinafter defined) could not be made by the Association or the owners of housing units within the Bridgewalk Condominum. 2.04. The council further finds that designation of the Bridgewalk HIA is needed to maintain and preserve the housing units within such area. 2.05. The council further finds that by Resolution No. _____ adopted on the date hereof (the “Fee Resolution”), the city has provided full disclosure of public expenditures, loans, or other financing arrangements in connection with the Bridgewalk HIA, and has determined that the Association will contract for the Housing Improvements. 2.06. The city will be the implementing entity for the Bridgewalk HIA and the Housing Improvement Fee (as set forth in the Fee Resolution and Section 5 below). 2.07. The council finds that the Bridgewalk HIA meets each of the approval criteria contained in the HIA Policy (listed as 4.01A- 4.01N), including the criterion that a majority of the association owners support the project and the financing thereof. The Association presented evidence to the council adequate to demonstrate that these criteria were met, including presentation to the council of the petitions described in 2.01 above. 2.08 In accordance with Section 428A.13, subd. 1a(2) of the Housing Improvement Act, the City Council determines that the Association will contract for construction of the Housing Improvements. Section 3. Housing Improvement Area Defined. 3.01. The Bridgewalk HIA is hereby defined as the area of the city legally described in Exhibit A attached hereto. 3.02. The Bridgewalk HIA contains 92 housing units as of the date of adoption of this ordinance, along with underground garage and common areas. Section 4. Housing Improvements Defined. 4.01. For the purposes of this ordinance, the Fee Resolution, and the Bridgewalk HIA, the term "Housing Improvements" shall mean the following improvements to housing units and common areas within the Bridgewalk HIA: Exterior building elements, including improvements to, replacement of or repair of flat roofs over portion of pool area, north and south buildings and vestibule; main entry improvements including but not limited to an ADA access ramp at main entrance; balconies; exterior siding; masonry; common area windows and doors. Interior building elements, including improvements to the lobby vestibule and doors; elevator improvements; common area carpeting and paint; unit hallway doors; locker rooms renovation; party/community room renovation. Building service elements, including improvements to, replacement of or repair of electrical panel in boiler room; upgrade control system for heating boilers. security systems upgrade; common area air handling units; hot water boilers and storage tank; boiler room upgrades; life safety system. Pool elements, including west wall replacement; pool refurbishment (pool & hot tub interiors plus deck); pool equipment; pool HVAC. Garage elements, including improvements to, replacement of and repair to lighting, waterproofing; wall paint; ceiling cleaning; exhaust and heating systems. Property site elements, including improvements to retaining walls. asphalt (mill & overlay); concrete bridge at southwest corner of building; concrete ramps and aprons; privacy fences between unit patios; courtyard/patio improvements. Unit elements constituting Limited Common Elements, including unit windows and patio doors (low-E glass) Additional Improvements: Should there be additional HIA funds left over after all proposed improvements are complete, the Association may use the remaining funds for the following additional improvements: an overhaul of the south elevator, upgrades to the life safety system, paint stairwells and replace stairwell railings, and replace the concrete ramps to the parking garages. 4.02. The Housing Improvements shall also be deemed to include: (a) all costs of architectural and engineering services in connection with the activities described in Section 4.01 hereof; (b) all administration, legal and consultant costs in connection with the Bridgewalk HIA; including without limitation all costs related to financing or issuance of bonds, if any; (bc) costs of arranging financing for the Housing Improvements under the Act, including without limitation costs associated with the issuance of any general obligation bonds to finance the Housing Improvement; and (cd) interest on the internal loan as described in Section 6.01. Section 5. Housing Improvement Fee. 5.01. The city may, by resolution adopted in accordance with the petitions, hearing and notice procedures required under Section 428A.14 of the Act, impose a fee on the housing units within the Bridgewalk HIA, at a rate, term or amount sufficient to produce revenues required to finance the construction of the Housing Improvements (hereinafter referred to as the "Housing Improvement Fee"), subject to the terms and conditions set forth in this Section. 5.02. The Housing Improvement Fee shall be imposed on housing units in the Bridgewalk HIA based on square footage (percentage of undivided ownership) as prescribed in Exhibit A to the Bridgewalk Condominium Declaration. 5.03. The Housing Improvement Fee shall be imposed and payable for a period no greater than 20 years after the first installment is due and payable. 5.04. Housing unit owners shall be permitted to prepay the Housing Improvement Fee in accordance with the terms specified in the Fee Resolution. 5.05. The Housing Improvement Fee shall not exceed the amount specified in the notice of public hearing regarding the approval of such fee; provided, however, that the Housing Improvement Fee may be reduced after approval of the Fee Resolution setting the Housing Improvement Fee based on actual financing terms, in the manner specified in such resolution. Section 6. Housing Improvement Area Loan and Bonds. 6.01. At any time after a contract with the Association for construction of all or part of the Housing Improvements has been entered into or the work has been ordered, and the period for prepayment without interest of the Housing Improvement Fee has begun as described in Section 5.04 hereof, the council may begin disbursement to the Association of the proceeds of an internal loan (the “Loan”) of available city funds in the principal amounts necessary to finance all or a portion of the cost of the Housing Improvements that have not been prepaid, together with administrative costs. The Loan will be repayable from the Housing Improvement Fee paid by unit owners, all in accordance with the Council resolution imposing the Housing Improvement Fee. 6.02. In addition to the Loan, at any time after the period for prepayment without interest of the Housing Improvement Fee has ended, the City may issue its bonds secured by Housing Improvement Fees, as authorized pursuant to Section 428A.16 of the Act, in a principal amount necessary to finance the portion of the cost of the Housing Improvements not financed through the Loan. Such financing shall be issued pursuant to and in accordance with Section 428A.16 of the Act. Section 7. Annual Reports. 7.01. No later than August 15, 2023, and each August 15 thereafter until there are no longer any outstanding obligations issued under the Act in connection with the Bridgewalk HIA, the Association (and any successor in interest) shall submit to the City Clerk a copy of the Association's audited financial statements. 7.02. The Association (and any successor in interest) shall also submit to the city any other reports or information at the times and as required by any contract entered into between the Association and the city, or as the city may request. Section 8. Notice of Right to File Objections. 8.01. Within five days after the adoption of this ordinance, the City Clerk is authorized and directed to mail to the owner of each housing unit in the Bridgewalk HIA: a summary of this ordinance; notice that owners subject to the proposed Housing Improvement Fee have a right to veto this ordinance if owners of at least 45 percent of the housing units within the Bridgewalk HIA file a written objection with the City Clerk before the effective date of this ordinance; and notice that a copy of this ordinance is on file with the City Clerk for public inspection. Section 9. Amendment. 9.01. This ordinance may be amended by the council upon compliance with the public hearing and notice requirements set forth in Section 428A.13 of the Act. Section 10. Prior Ordinance. 10.01. This ordinance amends, replaces and supersedes Ordinance No. 2643-22 for the Bridgewalk HIA adopted on February 22, 2022. Section 1011. This ordinance shall take effect 45 days after adoption hereof subject to the veto rights of housing unit owners under Section 428A.18 of the Housing Improvement Act. First reading February 7 June 6, 2022 Second reading February 22 June 20, 2022 Date of publication March 3 June 30, 2022 Date ordinance takes effect April 9 August 4, 2022 Reviewed for administration: Adopted by the City Council February 22 June 20, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Approved as to form and execution: Melissa Kennedy, city clerk Soren Mattick, city attorney Exhibit A to Ordinance No. ____-20 Legal description That part of Lots 1 and 2, Block 5, Shelard Park, lying westerly of a line drawn from a point on the Northerly line of said Lot 1, distant 32.5 feet easterly of the most Westerly corner thereof, to a point on the Southerly line of said Lot 2, distant 32.5 feet westerly of the most Easterly corner thereof; and lying easterly of a line drawn from a point on the Northerly line of said Lot2, distant 153.75 feet easterly of the Northwesterly corner of said Lot 2, to a point on the curved Southeasterly line of said Lot 2, an arc distance of 72.47 feet northeasterly from the most Southerly corner thereof. Meeting: City council Meeting date: June 6, 2022 Action agenda item: 8a Executive summary Title: Discuss scope of damage of May 21 water main break and options for impacted residents Recommended action: Adopt staff recommended proposal to sunset the emergency fund program adopted on May 25, 2022, roll any expenses from that program into claims with the League of MN Cities Insurance Trust, and adopt an expanded financial relief program to properties affected by the May 21, 2022, watermain break. Summary: On May 25, 2022, the city council held an emergency meeting to discuss the Minnetonka Boulevard water main break and options for impacted residents. At that meeting the council voted to establish an emergency reimbursement fund of $300,000 to help affected property owners with immediate measures to ensure homes are safe and habitable, up to a limit of $30,000 per household. The council directed staff to consider additional future relief options which are detailed in this report. A community meeting was held on May 26 to provide an overview of the city’s response to the watermain break and to collect additional information from impacted property owners to identify the most critical needs and areas of concern. Initially, the League of Minnesota Cities Insurance Trust (LMCIT) believed that this incident was only covered under the Water Main Break portion of the city’s coverage, which has a $250,000 per occurrence limit. In the last week, staff has met with the LMCIT and the LMCIT has determined that the Sewer Back Up portion of the city’s elected coverage of No-Fault Sewer Back Up and Water Main Break Coverage should be applied instead, which has a $2 million per occurrence limit. It’s secondary to any other homeowners or property insurance coverage that may be available. Therefore, funds from LMCIT will only be available to homeowners that can provide proof that their insurance provider has declined coverage or that their claims exceed the limits established by their homeowner’s insurance. Since the May 21 event, city staff continue to assist residents in submitting claims to the LMCIT and identifying resources to assist with cleanup and mitigation of damage, including televising and cleaning of sewer lines, reimbursement for property owners who paid to have their lines cleaned because of the break, and providing bagsters that residents can use for debris. Staff have also developed a webpage dedicated to sharing timely information on this situation, including a FAQ. Financial or budget considerations: Though dollars have been leveraged via verbal commitment, the city has not as of this time expended funds in the emergency relief program. Up to $2,000,000 of insurance in an aggregate amount is available with a maximum of $40,000 per building through the city’s insurance policy with the League of Minnesota Cities. For damages above the amount of insurance coverage, additional assistance is being proposed of up to $30,000 for reimbursement of eligible expenses. Additionally, low interest loan programs are recommended (details in the discussion below). If programming is adopted as outlined, it is recommended the council start by assigning $1 million of general fund balance. Supporting documents: Discussion, 5/25/2022 council report Prepared by: Debra Heiser, Karen Barton, Melissa Kennedy, Melanie Schmitt Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 8a) Page 2 Title: Discuss scope of damage of May 21 water main break and options for impacted residents Discussion Background: On Saturday May 21, 2022, city crews were called to the site of a water main break reported on Minnetonka Boulevard between Texas and Sumter Avenues south. Due to the rupture, water flowed underground penetrating a nearby sanitary sewer manhole flowing through the sanitary sewer and emerging in the basements of nearby homes and businesses. It is estimated that 1.1 million gallons of water was released due to this break. Once the immediate emergency was addressed, city staff went door to door through the neighborhood to assess the impact to the properties in the area. Initial estimates were that 40- 45 homes and businesses were affected on Quebec, Sumter, and Rhode Island Avenues and on Minnetonka Boulevard. Since Saturday, as residents assess their damage and more information is gathered through the claims process, the scope of properties impacted has increased to 55 properties. This represents unprecedented damage from a water main break in the city. Since the event, city staff continue to assist residents in submitting claims to the League of Minnesota Cities Insurance Trust (LMCIT) and identifying resources to assist with cleanup and mitigation of damage, including televising and cleaning of sewer lines, reimbursement for property owners who paid to have their lines cleaned because of the break, and bagsters that residents can use for debris. On Wednesday, May 25, the city council held an emergency meeting to discuss the Minnetonka Boulevard water main break and options for impacted residents. At that meeting the council voted to establish an emergency reimbursement fund of $300,000 to help affected property owners with immediate measures to ensure homes are safe and habitable, up to a limit of $30,000 per household. The council directed staff to consider additional future relief options. A community meeting was held on Thursday, May 26 at the Lenox community center to provide an overview of the city’s response to the watermain break and to collect additional information from impacted property owners to identify the most critical needs and areas of concern. Based on feedback and questions received at the community meeting, city staff established a dedicated page on the city’s website to provide updated information to affected property owners throughout the recovery process. The page includes a FAQ as well as information on resources available, including the emergency reimbursement fund. Additionally, a dedicated email and distribution list was created so the city can provide ongoing updates and communicate directly with affected residents. On June 2, 2022, the LMCIT returned a finding of the city not being liable for the break. Even so, the impact has had a profound effect on the lives of residents and the city is taking measures to respond quickly, communicate with residents, and provide relief to those impacted. Current situation: Our priority in response to this incident is to assist residents as they stabilize their property. The extent of the damage for many properties is significant with more than 1 foot of wastewater in their basements. This amount of water will cause damage to furnaces, water heaters, washers, dryers, floor covering, dry wall, furniture, and anything else stored in the basement. City council meeting of June 6, 2022 (Item No. 8a) Page 3 Title: Discuss scope of damage of May 21 water main break and options for impacted residents League of MN Cities update: As of June 2, 2022, the LMCIT has received 37 claims for damage. Information from the LMCIT about the extent of claims is still being compiled and is not available at this time. Since the May 25 meeting we have been in consultation with the LMCIT. Initially, the LMCIT believed that this incident was only covered under the Water Main Break portion of the coverage, which has a $250,000 per occurrence limit. In the last week, city and LMCIT staff have met and the LMCIT has determined that this incident falls under the Sewer Back Up portion of the city’s elected coverage of No-Fault Sewer Back Up and Water Main Break Coverage, which has a $2 million per occurrence limit, and up to $40,000 per affected property. It’s secondary to any other homeowners or property insurance coverage residents may have available. Proposed financial response: In recognition of the unprecedented nature of the event and resulting damage of private property, and following direction from council, staff is proposing the following approach to assist homes and businesses impacted by the watermain break and sewer backup. Alternatively, council could determine the best course is to see what overall claim level is reached before committing programming dollars. The image below is a visual representation of the residential program outline and flow. Details about the residential and commercial program are outlined in the text that follows. Please note that additional program specifics will be developed after council adoption of programming. City council meeting of June 6, 2022 (Item No. 8a) Page 4 Title: Discuss scope of damage of May 21 water main break and options for impacted residents Homeowners/property owners insurance: Personally held insurance is the primary insurance in events like these and access of additional supports, including coverage from the LMCIT, requires a letter from property owners’ insurance company showing denial of coverage or claim level above the level of reimbursement. League of MN Cities insurance: The LMCIT has found that the city was not liable for this event. For many years, the city has elected to purchase “no fault” insurance which provides coverage for property owners in situations like these. The city’s No-Fault Sewer Back Up and Watermain break coverage means that each building that was impacted by the resulting sewer back up is eligible for up to $40,000 per building for damage to property that is above an individual City Loan Program Up to $30K zero interest loan Available to those with claims above the city reimbursement program coverage Uses the LMCIT's eligibility list as a guide City Reimbursement Program Up to $30K coverage Available to those with claims above LMCIT coverage Uses the LMCIT's eligibility list as a guide, plus permit fees and deductibles Release of liability included Launches after the LMCIT claim work is concluded League of MN Cities Insurance Trust Up to $40K coverage with $2M overall cap Dispersed in multiple phases Homeowners Insurance Privately held Every policy is different City council meeting of June 6, 2022 (Item No. 8a) Page 5 Title: Discuss scope of damage of May 21 water main break and options for impacted residents homeowner’s policy, up to a maximum total payout of $2 million. This includes items such as removal, disposal, and clean-up costs, major mechanicals, construction costs, and assistance toward replacement of personal property. If the total amount payable for damage to all affected buildings exceeds $2 million, LMCIT will need to determine a pro-rated portion of each building’s portion of their potential $40,000 limit. With so many affected buildings and claims continuing to be submitted, the LMCIT is not yet able to determine if the $2 million cap will be reached. Residents need time to submit their claims and the LMCIT time to assess them. However, understanding that residents need immediate relief, the League is willing to make an initial, partial, payment to residents who have submitted claims. They are willing to make payments of 50% of the covered damages, not to exceed $20,000, per building. The balance will take longer as the League will need to wait for claim information submittal to understand the full scope and ensure the $2 million dollar limit is not exceeded. City reimbursement program: City to provide reimbursement to homeowners for eligible expenses exceeding any reimbursement from their homeowner's insurance coverage and the no-fault LMCIT insurance coverage, up to a maximum of $30,000 per residential property. Reimbursement for the same would also be provided to businesses up to $60,000 per business property. The higher reimbursement threshold for businesses is due to larger building areas impacted and higher equipment replacement costs, among other factors. Residents and businesses would have to sign a release in exchange for the reimbursements. Residents and businesses will not be expected to repay these funds. City loan program: Offer a loan program to the affected homeowners to facilitate restoration of their homes. These restoration loans would provide up to $30,000 at 0% interest over a 10-year period. There is no income limit for the 0% loans. These loans would require monthly payments over the 10-year amortization and would be subject to repayment in full at time of sale or title transfer of the property. The EDA currently offers a low-interest loan program that the affected businesses would be able to access to aid in restoration of their buildings. These loans are provided through the Metropolitan Consortium of Community Developers at a 2% interest over up to a 20-year period, with a maximum loan amount of $75,000. It is recommended to use general fund balance to fund the residential loan programming. The business loan programming will be funded through the development fund. Larger financial context: As council knows, the city is in the middle of the 2023 budget process and allocation of ARPA funds. Council previously directed staff to set aside $2.5 million of general fund balance and/or ARPA funding to relieve pressure on the general levy. Staff can make funds available for the programming outlined in this report; at the same time, allocation in this way does have impacts on other priorities of the city. Some impacts may include fewer dollars available for: nonprofit requested ARPA funding, other community or staff requested initiatives utilizing ARPA dollars, and reduction of the forecasted levy increase. City council meeting of June 6, 2022 (Item No. 8a) Page 6 Title: Discuss scope of damage of May 21 water main break and options for impacted residents Next steps: Tonight, council can direct staff to sunset the emergency fund program adopted on May 25, 2022, roll any expenses from that program into claims with the LMCIT, and adopt an expanded financial relief program to properties affected by the May 21, 2022, watermain break. During the time the LMCIT reviews claims, staff will finalize the programs and bring back a resolution encumbering the funding for the program. ($1 million assigned general fund balance.) Wednesday, June 8, the city will host a community meeting for affected residents at 6 p.m. at Lenox Community Center. At this meeting, residents will hear from the LMCIT about their process and from the city about any relevant next steps based on action taken by council. Residents impacted by the water main break will also be able to request the additional assistance (e.g. bagsters, sewer line reimbursement) from the city as described in the report. Meeting: City council Meeting date: June 6, 2022 Action agenda item: 8b Executive summary Title: Xchange II Medical Office Building – Ward 4 Recommended action: • Motion to adopt Resolution approving the preliminary and final plat for Xchange II Medical Office Building; and • Motion to adopt Resolution approving the conditional use permit (CUP) to allow the underground parking level of the Xchange II Medical Office Building to be built in a floodplain below the regulatory flood protection elevation. Policy consideration: Does the project meet the requirements for a preliminary and final plat and a conditional use permit (CUP)? Summary: Davis Healthcare Real Estate Services requests approval of a preliminary and final plat to combine five parcels into one parcel, and a CUP to construct a building in a floodplain below the regulatory flood protection elevation, to develop a two-story building (first floor/underground parking and main floor medical office) that provides 17,000 square feet of medical office space for one or more tenants. The planning commission held a public hearing on May 11, 2022, and no members of the public spoke. The commission voted 6 to 0 to recommend approval of the preliminary and final plat and CUP. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: discussion; aerial photograph of project site; preliminary and final plat resolution; CUP resolution; development plans Prepared by: Natalie Brown, consulting planner Jeff Miller, consulting planner Reviewed by: Sean Walther, planning manager Karen Barton, community development director Approved by: Kim Keller, city manager City council meeting of June 6, 2022 (Item No. 8b) Page 2 Title: Xchange II Medical Office Building – Ward 4 Discussion Background: The proposed development site is a combination of five separate lots with existing one and two-story commercial buildings on the south side of Wayzata Boulevard, situated between Colorado Avenue to the east, Dakota Avenue to the west, and 14th Street West to the south. The two existing buildings and two parking lots will be removed. Present considerations: The applicant requests the city: 1. Approve a preliminary and final plat to combine five existing lots into one lot. 2. Approve a conditional use permit (CUP) to allow for the underground parking level of the building to be built in a floodplain below the regulatory flood protection elevation. Preliminary and final plat: Davis Healthcare Real Estate requests a preliminary and final plat to combine five lots into one lot. Lots: The plat proposal will create one lot. Lot 1, Block 1, Xchange MOB II will have an area of 1.23 acres or 53,542 square feet. Easements: The plat dedicates drainage and utility easements along all property lines per city code, including ten feet wide easements along public right-of-way and five feet wide easements along internal property lines. An easement will be required along Colorado Avenue for the portion of the five feet wide sidewalk that lies outside of the public right-of-way. Right of way: No additional right-of-way is being dedicated as part of this application. Park dedication: The properties were previously platted lots in the John A Johnson’s Addition; no additional park dedication is required at this time. Staff find the preliminary and final plat meet the city requirements. Zoning analysis: The applicant seeks approvals to construct a 17,000 square foot, two-story medical office building with 53 surface parking spaces and 27 underground parking spaces, for a total of 80 spaces. Office zoning district: Medical office buildings are permitted in the O – office zoning district, however, additional approvals are required for the proposed development. The development requires a CUP to construct a building below the regulatory flood protection elevation (RFPE) within the floodplain. Floodplain overlay district: Most of this property lies within the Federal Emergency Management Agency (FEMA) Floodzone A. Floodzone A, is a portion of the 100-year floodplain and FEMA’s flood map delineations are not precise. Floodzone A requires local jurisdictions to use the best available data to determine the base flood elevation for an area. The base flood elevation in this area is 876 feet above sea level. Compensatory flood storage is required onsite for portions of the site that are below the base flood elevation. The applicant proposes to provide flood storage both in a storm vault underneath the surface parking lot (67%) and above ground in areas between 874 feet and 876 feet (33%), primarily the eastern portion of the surface parking lot and west of the building. City council meeting of June 6, 2022 (Item No. 8b) Page 3 Title: Xchange II Medical Office Building – Ward 4 Sec. 36-297(c) allows for any structure that is not elevated on fill above the regulatory flood protection elevation (RFPE) to be approved as a CUP. All areas or nonresidential structures, including basements, to be placed below the RFPE must be floodproofed in accordance with the structurally dry floodproofing classifications in the State Building Code. Structurally dry floodproofing must meet the FP1 or FP2 floodproofing classification in the State Building Code, which requires making the structure watertight with the walls substantially impermeable to the passage of water and with structural components capable of resisting hydrostatic and hydrodynamic loads and the effects of buoyancy. Traffic demand management overlay district: The cities of St. Louis Park and Golden Valley have a joint powers agreement and administer travel demand management (TDM) overlay districts in both cities along the Interstate 394 corridor. All developments in a TDM district which contain more than 0.6 square foot of gross floor area per each square foot of land area within a lot or parcel, also known as the floor area ratio (FAR), in the I-394 corridor, are subject to TDM requirements. If a development exceeds this threshold, a conditional use permit with additional conditions related to traffic management is required. The proposed building will result in a FAR of 0.32, so the project does not trigger any additional TDM district requirements and no TDM fees are required for this project. Building design: The building design complies with the city’s architectural material standards with a minimum of 60% class 1 materials on all building elevations including brick, stone, and glass. Parking: The plan would provide 80 off-street parking spaces, electric vehicle charging stations serving four parking spaces, and conduit for future electric vehicle charging stations serving 39 more spaces. Two of the served spaces are in the garage and two in the surface parking lot. The future served spaces are similarly split between the garage and surface lot. The plan also includes 10 bicycle parking spaces. The project meets vehicle, bicycle, and electric vehicle parking requirements. Lighting: The plan shows lighting would not exceed 1.0 footcandles on any property line and meets all city lighting city requirements. Signs: The preliminary sign plan appears to meet all sign requirements in the zoning code. A separate sign permit will be required before any new signs may be installed on the site. Designed Outdoor Recreation Area (DORA): The DORA requirement 12% of the lot area for this proposal, or 6,426 square feet. The project meets this requirement by providing 6,509 square feet of DORA in the front, rear, and east side yards. Conditional use permit: The project must meet the following general requirements for conditional use permits: 1. Consistency with city plans. Medical office is consistent with and supportive of principles, goals, objectives, land use designations, redevelopment plans, neighborhood objectives, and implementation strategies of the comprehensive plan. The property is City council meeting of June 6, 2022 (Item No. 8b) Page 4 Title: Xchange II Medical Office Building – Ward 4 guided office in the comprehensive plan which allows the proposed medical office use. This condition is met. 2. Nuisance. The project is not detrimental to the health, safety, morals, and general welfare of the community. It will not have undue adverse impacts on the use and enjoyment of properties, existing and anticipated traffic conditions, parking facilities on adjacent streets, and values of properties near the conditional use. Staff are not aware of any complaints regarding the current office uses, and do not anticipate negative effects from the proposed medical office use. The current buildings are in poor condition and not very marketable. This development will improve several properties. This condition is met. 3. Compliance with code. The project is consistent with the regulations, intent and purpose of city code and the office zoning district in which the use is located. 4. Consistency with service capacity. The project will not have undue adverse impacts on governmental facilities, services or improvements which are either existing or proposed. Services will not be impacted by the proposed medical office development. 5. Site design. The site plans meet city code and were prepared by or under the direction of a professional landscape architect or civil engineer registered in the state 6. Consistency with utilities. The project is consistent with all city stormwater, sanitary sewer, and water plans. Specific standards for floodplain conditional uses: 1. All areas of nonresidential structures, including basements, to be placed below the regulatory flood protection elevation must be floodproofed in accordance with the structurally dry floodproofing classifications in the State Building Code. Structurally dry floodproofing must meet the FP1 or FP2 floodproofing classification in the State Building Code, which requires making the structure watertight with the walls substantially impermeable to the passage of water and with structural components capable of resisting hydrostatic and hydrodynamic loads and the effects of buoyancy. 2. Alternative elevation methods other than the use of fill may be utilized to elevate a structure's lowest floor above the regulatory flood protection elevation. The base or floor of an enclosed area shall be considered above-grade and not a structure’s basement or lowest floor if: 1) the enclosed area is above-grade on at least one side of the structure; 2) it is designed to internally flood and is constructed with flood resistant materials; and 3) it is used solely for parking of vehicles, building access or storage. The above-noted alternative elevation methods are subject to the following additional standards: a. Design and certification - The structure’s design and as-built condition must be certified by a registered professional engineer as being in compliance with the general design standards of the State Building Code and, specifically, that all electrical, heating, ventilation, plumbing and air conditioning equipment and other service facilities must be at or above the regulatory flood protection elevation or be designed to prevent flood water from entering or accumulating within these components during times of flooding. b. Specific standards for above-grade, enclosed areas - Above-grade, fully enclosed areas such as crawl spaces or tuck under garages must be designed to internally flood and the design plans must stipulate: City council meeting of June 6, 2022 (Item No. 8b) Page 5 Title: Xchange II Medical Office Building – Ward 4 i. The minimum area of openings in the walls where internal flooding is to be used as a floodproofing technique. There shall be a minimum of two openings on at least two sides of the structure and the bottom of all openings shall be no higher than one foot above grade. The automatic openings shall have a minimum net area of not less than one square inch for every square foot of enclosed area subject to flooding unless a registered professional engineer or architect certifies that a smaller net area would suffice. The automatic openings may be equipped with screens, louvers, valves, or other coverings or devices provided that they permit the automatic entry and exit of flood waters without any form of human intervention; and ii. That the enclosed area will be designed of flood resistant materials in accordance with the FP3 or FP4 classifications in the State Building Code and shall be used solely for building access, parking of vehicles or storage. All the above floodplain standards are included as conditions of approval in the resolution. Public outreach: All property owners within 350 feet of the property were mailed notices of the public hearing. A legal notice was published in the official newspaper regarding the public hearing. Project and meeting information was shared on the city website. A “proposed development” sign with contact information was posted on the property. Planning commission: The planning commission held a public hearing on May 11, 2022, no members of the public spoke, and one neighboring property owner submitted written comments in favor of the development. The commission voted 6 to 0 to recommend approval of the preliminary and final plat and conditional use permit (CUP). Recommendations: Staff recommends approval of the preliminary and final plat and the conditional use permit, all subject to the conditions recommended in the resolutions. City council meeting of June 6, 2022 (Item No. 8b) Page 6 Title: Xchange II Medical Office Building – Ward 4 Aerial photo of the project site City council meeting of June 6, 2022 (Item No. 8b) Page 7 Title: Xchange II Medical Office Building – Ward 4 Resolution No. 22-____ Resolution approving preliminary and final plat of Xchange II Medical Office Building (Xchange MOB II) 6301 Wayzata Boulevard, 1332 Colorado Avenue South, 1336 Colorado Avenue South, 1342 Colorado Avenue South, and 1343 Dakota Avenue South Whereas, Patrick Giordana on behalf of SLP Investment Partners LLC C/O The Davis Group, owner of land proposed to be platted as Xchange MOB II has submitted an application for approval of preliminary and final plat in the manner required for platting of land under the St. Louis Park Code of Ordinances, and all proceedings have been duly had thereunder; and Whereas, the proposed preliminary and final plat has been found to be in all respects consistent with the Comprehensive Plan and the regulations and requirements of the laws of the State of Minnesota and the ordinances of the City of St. Louis Park; and Whereas, the proposed plat is situated upon lands in Hennepin County, Minnesota, legally described in “Exhibit A” attached hereto. Now therefore be it resolved the proposed preliminary and final plat of Xchange MOB II is hereby approved and accepted by the City as being in accord and conformity with all ordinances, City plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, provided, however, that this approval is made subject to the opinion of the City Attorney and Certification by the City Clerk and subject to the following conditions: 1. A public easement in favor of the City shall be put in place for the portion of the sidewalk that lies outside of the public right-of-way along Colorado Avenue South. The easement shall cover the sidewalk plus one foot in width. 2. Applicant shall revise sanitary sewer plan to meet standards and approval of City Engineer and City Building Official. 3. The site shall be developed, used and maintained in accordance with the conditions of this resolution, approved Official Exhibits, and City Code. 4. All utility service structures shall be buried. If any utility service structure cannot be buried (i.e. electric transformer), it shall be integrated into the building design and 100% screened from off-site with materials consistent with the primary façade materials. 5. Prior to the City signing and releasing the final plat to the developer for filing with Hennepin County: a. A financial security in the form of a cash escrow or letter of credit in the amount of $1,000 shall be submitted to the city to ensure that a signed Mylar copy of the final plat is provided to the city. b. A Planning Development Contract shall be executed between the city and developer that addresses, at a minimum: i. The installation of all public improvements including, but not limited to: sidewalks, boulevards, and the execution of necessary easements related to such improvements. City council meeting of June 6, 2022 (Item No. 8b) Page 8 Title: Xchange II Medical Office Building – Ward 4 ii. A performance guarantee in the form of cash escrow or irrevocable letter of credit shall be provided to the City of St. Louis Park in the amount of 1.25 times the estimated costs for the installation of all public improvements (sidewalks and boulevards), placement of iron monuments at property corners, and the private site stormwater management system and landscaping. iii. The applicant shall reimburse City Attorney’s fees in drafting/reviewing such documents as required in the final plat approval. iv. The Mayor and City Manager are authorized to execute the Planning Development Contract. 6. Prior to starting any land disturbing activities, the following conditions shall be met: a. Proof of recording the final plat shall be submitted to the City. b. A preconstruction meeting shall be held with the appropriate development, construction, private utility, and city representatives. c. All necessary permits shall be obtained. d. A performance guarantee in the form of cash escrow or irrevocable letter of credit shall be provided to the City of St. Louis Park in the amount of 125% of the cost for all public improvements (street, sidewalks, boulevards, utility, etc.) and landscaping including irrigation, placement of iron monuments at property corners, and the private site stormwater management system. 7. The on-site underground storm water management systems shall be privately-owned and privately maintained. Access to the system shall be provided to the city for cleanout and inspection purposes when warranted. It is further resolved, that the City Clerk is hereby directed to supply two certified copies of this resolution to the above-named owner and subdivider, who is the applicant herein. The Mayor and City Manager are hereby authorized to execute all contracts required herein, and the City Clerk is hereby directed to execute the certificate of approval on behalf of the City Council upon the said plat when all of the conditions set forth have been fulfilled. Such execution of the certificate upon said plat by the City Clerk, as required under Section 26- 123(1)j of the St. Louis Park Code of Ordinances, shall be conclusive showing proper compliance therewith by the subdivider and City officials charged with duties above described and shall entitle such plat to be placed on record forthwith without further formality. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. City council meeting of June 6, 2022 (Item No. 8b) Page 9 Title: Xchange II Medical Office Building – Ward 4 Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of June 6, 2022 (Item No. 8b) Page 10 Title: Xchange II Medical Office Building – Ward 4 EXHIBIT “A” LEGAL DESCRIPTION Lots 12, 13, 14, 15, 16, 17, 18 and 19, Block 2, JOHN A JOHNSON'S ADDITION Hennepin County, Minnesota Abstract and Torrens Property City council meeting of June 6, 2022 (Item No. 8b) Page 11 Title: Xchange II Medical Office Building – Ward 4 Resolution No. 22-____ Resolution approving a conditional use permit for 6301 Wayzata Boulevard, 1332 Colorado Avenue South, 1336 Colorado Avenue South, 1342 Colorado Avenue South, and 1343 Dakota Avenue South to allow for the underground parking level of the building to be built in a floodplain below the regulatory flood protection elevation Whereas, Patrick Giordana on behalf of SLP Investment Partners LLC C/O The Davis Group, applied for a conditional use permit for the purpose of allowing for the underground parking level of the building to be built in a floodplain below the regulatory flood protection elevation at 6301 Wayzata Boulevard, 1332, 1336, and 1342 Colorado Avenue South, and 1343 Dakota Avenue South; the property is legally described as follows, to-wit: Lot 1, Block 1, XCHANGE MOB II, Hennepin County, Minnesota Whereas, the property is guided OFC – Office in the 2040 Comprehensive Plan future land use map; and Whereas, the property is located in the O – Office zoning district, the Travel Demand Management overlay district (Zone B), and the Floodplain overlay district; and Whereas, a medical office building is a permitted use in the O – Office zoning district, and Whereas, the proposed building does not meet the required thresholds for travel demand management mitigation; and Whereas, the city council has considered the advice and recommendations of the planning commission (22-11-CUP) and has determined that the construction of the building will not be detrimental to the health, safety, or welfare of the community, is consistent with the Comprehensive Plan, and compliant with the intent of the Zoning Ordinance; and Whereas, the use will not have undue adverse impacts on the use and enjoyment of properties, existing and anticipated traffic conditions, parking facilities on adjacent streets, and values of properties in close proximity to the conditional use; and Whereas, the use will not have undue adverse impacts of governmental facilities, services or improvements that are existing or proposed, and the use is consistent with city utility plans; and Whereas, the site is consistent with the design and other requirements of the site and landscape plans, which have been prepared by the direction of a professional landscape architect or civil engineer registered in the state and adopted as part of the conditions imposed on the use by the city council; and City council meeting of June 6, 2022 (Item No. 8b) Page 12 Title: Xchange II Medical Office Building – Ward 4 Whereas, the contents of the Planning Case File 22-11-CUP are hereby entered into and made part of the public hearing record and record of decision for this case; and Whereas, the site is developed, used, and maintained in conformance with Official Exhibits and required permits are obtained prior to construction. Now therefore be it resolved, that the St. Louis Park City Council hereby approves a Conditional Use Permit to construct a medical office building with an underground parking level that is built in a floodplain below the regulatory flood protection elevation at 6301 Wayzata Boulevard, 1332, 1336, and 1342 Colorado Avenue South, and 1343 Dakota Avenue South, subject to the following conditions: 1. The adoption of Resolution No. ___ approving preliminary and final plat of Xchange II Medical Office Building (Xchange MOB II). 2. All areas of nonresidential structures, including basements, to be placed below the regulatory flood protection elevation must be floodproofed in accordance with the structurally dry floodproofing classifications in the State Building Code. Structurally dry floodproofing must meet the FP1 or FP2 floodproofing classification in the State Building Code, which requires making the structure watertight with the walls substantially impermeable to the passage of water and with structural components capable of resisting hydrostatic and hydrodynamic loads and the effects of buoyancy. 3. Alternative elevation methods other than the use of fill may be utilized to elevate a structure's lowest floor above the regulatory flood protection elevation. The base or floor of an enclosed area shall be considered above-grade and not a structure’s basement or lowest floor if: 1) the enclosed area is above-grade on at least one side of the structure; 2) it is designed to internally flood and is constructed with flood resistant materials; and 3) it is used solely for parking of vehicles, building access or storage. The above-noted alternative elevation methods are subject to the following additional standards: a. Design and certification - The structure’s design and as-built condition must be certified by a registered professional engineer as being in compliance with the general design standards of the State Building Code and, specifically, that all electrical, heating, ventilation, plumbing and air conditioning equipment and other service facilities must be at or above the regulatory flood protection elevation or be designed to prevent flood water from entering or accumulating within these components during times of flooding. b. Specific standards for above-grade, enclosed areas - Above-grade, fully enclosed areas such as crawl spaces or tuck under garages must be designed to internally flood and the design plans must stipulate: i. The minimum area of openings in the walls where internal flooding is to be used as a floodproofing technique. There shall be a minimum of two openings on at least two sides of the structure and the bottom of all openings shall be no higher than one foot above grade. The automatic openings shall have a minimum net area of not less than one square inch for every square foot of enclosed area subject to flooding unless a registered professional engineer or architect certifies that a smaller net area would suffice. The automatic openings may be equipped with City council meeting of June 6, 2022 (Item No. 8b) Page 13 Title: Xchange II Medical Office Building – Ward 4 screens, louvers, valves, or other coverings or devices provided that they permit the automatic entry and exit of flood waters without any form of human intervention; and ii. That the enclosed area will be designed of flood resistant materials in accordance with the FP3 or FP4 classifications in the State Building Code and shall be used solely for building access, parking of vehicles or storage. 4. At time of building permit, an elevation certificate shall be required to verify the building’s grade above the flood elevation. Additionally, all portions of the building located within the floodplain shall be floodproofed. 5. The site shall be developed, used and maintained in accordance with the conditions of this ordinance, approved official exhibits and city code. 6. Construction and staging information will be provided to staff for review and approval before building permits are issued. 7. All new utility service structures shall be buried. 8. Prior to starting any land disturbing activities, excluding demolition, the following conditions shall be met: a. A preconstruction meeting shall be held with the appropriate development, construction, private utility, and city representatives. b. All necessary permits shall be obtained. 9. Prior to issuance of building permits, excluding demolition permits, the following conditions shall be met: a. Final construction plans for all public improvements and private stormwater system shall be signed by a registered engineer and approved by the city engineer. b. A performance guarantee in the form of cash escrow or irrevocable letter of credit shall be provided to the City of St. Louis Park in the amount of 1.25 times the estimated costs for the installation of all public improvements (sidewalks and boulevards), placement of iron monuments at property corners, the private landscaping including irrigation, and private stormwater management system. 10. The developer shall comply with the following conditions during construction: a. All city noise ordinances shall be complied with, including that there be no construction activity between the hours of 10 p.m. and 7 a.m. Monday through Friday, and between 10 p.m. and 9 a.m. on weekends and holidays. b. The site shall be kept free of dust and debris that could blow onto neighboring properties. c. Public streets shall be maintained free of dirt and shall be cleaned as necessary. d. The City shall be contacted a minimum of 72 hours prior to any work in a public street. e. Work in a public street shall take place only upon the determination by the city engineer (or designee) that appropriate safety measures have been taken to ensure motorist and pedestrian safety. City council meeting of June 6, 2022 (Item No. 8b) Page 14 Title: Xchange II Medical Office Building – Ward 4 f. The developer shall install and maintain chain link security fencing that is at least six feet tall along the perimeter of the site. All gates and access points shall be locked during non-working hours. g. Temporary electric power connections shall not adversely impact surrounding neighborhood service. 11. Prior to the issuance of any permanent certificate of occupancy permit the public improvements, private utilities, site landscaping and irrigation, and storm water management system shall be installed in accordance with the official exhibits. 12. Upon city approval of and acceptance of the public sidewalks, the developer shall provide a one-year warranty and cash escrow or letter of credit for 25% of the final construction costs of the public sidewalk. 13. As-builts shall be submitted to the city that comply with city engineering specifications within 30 days of the final certificate of occupancy. 14. In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. 15. The conditional use permit shall be revoked and cancelled if the building or structure for which the conditional use permit is granted is removed. The City Clerk is instructed to record certified copies of this resolution in the Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for administration: Adopted by the City Council June 6, 2022 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk 5 4 5 CADD files prepared by the Consultant for this project are instruments of the Consultant professional services for use solely with respect to this project. These CADD files shall not be used on other projects, for additions to this project, or for completion of this project by others without written approval by the Consultant. With the Consultant's approval, others may be permitted to obtain copies of the CADD drawing files for information and reference only. All intentional or unintentional revisions, additions, or deletions to these CADD files shall be made at the full risk of that party making such revisions, additions or deletions and that party shall hold harmless and indemnify the Consultant from any & all responsibilities, claims, and liabilities. PLANNING CIVIL ENGINEERING LAND SURVEYING LANDSCAPE ARCHITECTURE ENVIRONMENTAL 7200 Hemlock Lane, Suite 300 Maple Grove, MN 55369 763.424.5505 www.loucksinc.com Plotted: 05 /03 / 2022 12:10 PMW:\2015\15577\CADD DATA\SURVEY\_dwg Sheet Files\15577A-PrePlatOUCKSL CADD QUALIFICATION QUALITY CONTROL PROFESSIONAL SIGNATURE SUBMITTAL/REVISIONS XCHANGE MOB II ST LOUIS PARK, MN 55416 33 SOUTH 6TH STREET SUITE 4650 MINNEAPOLIS, MN 55402 N SCALE IN FEET 0 20 40 SPOT ELEVATION SIGN LIGHT POLE POWER POLE WATER MANHOLE / WELL CATCH BASIN CONTOUR CONCRETE CURB STORM SEWER SANITARY SEWER UNDERGROUND CABLE TV UNDERGROUND FIBER OPTIC WATERMAIN UNDERGROUND ELECTRIC CONCRETE CABLE TV PEDESTAL ELECTRIC TRANSFORMER TELEPHONE PEDESTAL ELECTRIC MANHOLE UTILITY MANHOLE ELECTRIC METER GAS METER HAND HOLE UNDERGROUND TELEPHONE UNDERGROUND GAS SANITARY SEWER SERVICE WATER SERVICE YARD LIGHT GUY WIRE GAS VALVE GUARD POST ELM HACKBERRY MAPLE CONIFEROUS TREE DECIDUOUS TREE OVERHEAD UTILITY ELEV @ THRESHOLD GUARDRAIL / HANDRAIL ROOF DRAIN ELECTRIC OUTLET TREE LINE CLEANOUT PARKING STALL COUNT CURB STOP DISABLED PARKING STALL TOP OF CURB FOUND 1/2 INCH OPEN IRON VAULT PAVERS FOUND PK NAIL AIR CONDITIONING UNIT TOP NUT HYDRANT SPLIT RAIL FENCE 1 SCHEDULE B II ITEM SPIGOT 2 EXISTING BUILDING RETAINING WALL STORM MANHOLE SANITARY MANHOLE HYDRANT MONUMENT NO PARKING FIRE CONNECTION BITUMINOUS CURB CUT UTILITY VALVE RECORD DIMENSION PER PLAT GUY POLE License No. Date I hereby certify that this survey, plan or report was prepared by me or under my direct supervision and that I am a duly Licensed Land Surveyor under the laws of the State of VICINITY MAP Field Crew Max L. Stanislowski - PLS 48988 Project Lead Drawn By Checked By Loucks Project No. Minnesota. 15577A MLS SFM MLS DJP 03/03/22 SURVEY LEGEND 03/03/22 SURVEY ISSUED LAST ISSUED BY STEVE HOUGH 05/03/22 CITY COMMENTS PRELIMINARY PLAT 1 OF 1 SITE Lots 12, 13, 14, 15, 16, 17, 18 and 19, Block 2, JOHN A JOHNSON'S ADDITION. Hennepin County, Minnesota Abstract and Torrens Property LEGAL DESCRIPTION GENERAL NOTES SURVEYOR: Loucks 7200 Hemlock Lane, Suite 300 Maple Grove, MN 55330 763-424-5505 1.Preliminary plat of XCHANGE MOB II 2. Prepared March 3, 2022. 3. The addresses, as disclosed in documents provided to the surveyor, obtained by the surveyor, or observed while conducting the fieldwork are 6301 Wayzata Blvd, 1332 Colorado Ave S, 1336 Colorado Ave S, 1342 Colorado Ave S and 1343 Dakota Ave S, St Louis Park, Minnesota 55416. 4. The bearings for this survey are based on the Hennepin County Coordinate System NAD 83 (1986 Adjust). 5. Benchmark: MnDOT - 2789 N In Saint Louis Park, 0.4 mile west of I-394 South Frontage Road from Vernon Avenue, then 100 feet south on railroad, station is chiseled X on top of northeast bolt in concrete base of Electrical Transmission Tower 8 Elevation = 890.86 feet (NGVD29) Site Benchmark: Top nut of hydrant located at intersection of Colorado Ave. S & 14th St., as shown hereon. Elevation = 881.00 feet (NGVD29) 6. This property is contained in Zone A (no base elevations determined) and Zone X (areas determined to be outside the 0.2% annual chance floodplain) per Flood Insurance Rate Map No. 27053C0351F, Community Panel No. 270184 0351 F, effective date of September 4, 2016. 7. The Gross land area is 53,542 +/- square feet or 1.23 +/- acres. 8. The field work was completed on February 9, 2022. OWNER/DEVELOPER: DAVIS 33 South 6th Street, Suite 4650 Minneapols, MN 55402 612-341-3242 Current Zoning: O (Office District) Any zoning classification, setback requirements, height and floor space area restrictions, and parking requirements, shown hereon, was researched to the best of our ability and is open to interpretation. Per the City of St. Louis Park Zoning Map and City Code, on March 2, 2022, information for the subject property is as follows: Current Setbacks: Front 20 feet or a distance equal to building height, whichever is greater. Side 15 feet Rear 15 feet for buildings under 40 feet. Buildings over 40 feet shall be half the building height. Height 20 stories or 240 feet ZONING INFORMATION TOP OF WALL City council meeting of June 6, 2022 (Item No. 8b) Title: Xchange II Medical Office Building - Ward 4 Page 15 KNOW ALL PERSONS BY THESE PRESENTS: That Xchange MOB II LLC, a Minnesota limited liability company, owner of the following described property situated in the County of Hennepin, State of Minnesota, to wit: Lots 12, 13, 14, 15, 16, 17, 18 and 19, Block 2, JOHN A JOHNSON'S ADDITION Has caused the same to be surveyed and platted as XCHANGE MOB II, and does hereby dedicate to the public for public use the drainage and utility easements as created by this plat. In witness whereof said Xchange MOB II LLC, a Minnesota limited liability company, has caused these presents to be signed by its proper officer this _______ day of _________________________, 20______. XCHANGE MOB II LLC ___________________________________ ______________________________________________ Signature Printed Name, Title STATE OF ______________________ COUNTY OF ____________________ This instrument was acknowledged before me this ________ day of _________________________, 20______, by ________________________, as ______________________ of Xchange MOB II LLC, a Minnesota limited liability company, on behalf of the company. ___________________________________ ______________________________________________ Signature Printed Name, Notary Notary Public, _______________________ County, ______________________ My Commission Expires _________________________ SURVEYORS CERTIFICATION I Steven F. Hough do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed Land Surveyor in the State of Minnesota; that this plat is a correct representation of the boundary survey; that all mathematical data and labels are correctly designated on this plat; that all monuments depicted on this plat have been, or will be correctly set within one year; that all water boundaries and wet lands, as defined in Minnesota Statutes, Section 505.01, Subd. 3, as of the date of this certificate are shown and labeled on this plat; and all public ways are shown and labeled on this plat. Dated this ________ day of _________________________, 20______. ______________________________________________ Steven F. Hough, Licensed Land Surveyor Minnesota License No. 54850 STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this ________ day of _________________________, 20______, by Steven F. Hough. ___________________________________ ______________________________________________ Signature Printed Name, Notary Notary Public, ______________________ County, Minnesota My Commission Expires January 31, 2025 LOUCKS SHEET 1 OF 2 SHEETS CITY COUNCIL, CITY OF ST. LOUIS PARK, MINNESOTA This plat of XCHANGE MOB II was approved and accepted by the City Council of the City of City Name, Minnesota, at a regular meeting thereof held this ________ day of _________________________, 20______, and said plat is in compliance with the provisions of Minnesota Statutes, Section 505.03, Subdivision 2. City Council, City of St. Louis Park, Minnesota By: ________________________________________, Mayor By: _________________________________________, Clerk RESIDENT AND REAL ESTATE SERVICES, Hennepin County, Minnesota I hereby certify that taxes payable in 20______ and prior years have been paid for land described on this plat, dated this ________ day of _________________________, 20______. Mark V. Chapin, County Auditor By: ________________________________________, Deputy SURVEY DIVISION, Hennepin County, Minnesota Pursuant to Minnesota Statutes Section 383B.565 (1969), this plat has been approved this ________ day of _________________________, 20______. Chris F. Mavis, County Surveyor By: ________________________________________ REGISTRAR OF TITLES, Hennepin County, Minnesota I hereby certify that the within plat of XCHANGE MOB II was filed in this office this ________ day of _________________________, 20______, at ______ o'clock _____.M. Martin McCormick, Registrar of Titles By: ________________________________________, Deputy COUNTY RECORDER, Hennepin County, Minnesota I hereby certify that the within plat of XCHANGE MOB II was recorded in this office this ________ day of _________________________, 20______, at ______ o'clock _____.M. Martin McCormick, County Recorder By: ________________________________________, Deputy R.T. DOC. NO. C.R. DOC. NO. City council meeting of June 6, 2022 (Item No. 8b) Title: Xchange II Medical Office Building - Ward 4 Page 16 LOUCKS SHEET 2 OF 2 SHEETS BEING 5 FEET IN WIDTH, UNLESS OTHERWISE INDICATED AND ADJOINING LOT LINES, AND BEING 10 FEET IN WIDTH, UNLESS OTHERWISE INDICATED, AND ADJOINING RIGHT-OF-WAY LINES, AS SHOWN ON THE PLAT. DRAINAGE AND UTILITY EASEMENTS ARE SHOWN THUS: BEARINGS ARE BASED ON THE WEST LINE OF SW 1/4, SEC 4, TWP 117, RNG 21 HAVING A BEARING OF SOUTH 2°08'52" WEST. DENOTES FOUND 1/2 INCH IRON MONUMENT DENOTES FOUND HENNEPIN COUNTY CAST IRON MONUMENT N DENOTES FOUND "PK NAIL" ( P) DENOTES DATA PER PLAT OF "John A. Johnsons Addition" (M) DENOTES MEASURED DATA SCALE IN FEET 0 30 60 R.T. DOC. NO. C.R. DOC. NO. City council meeting of June 6, 2022 (Item No. 8b) Title: Xchange II Medical Office Building - Ward 4 Page 17 NO PARKINGNO PARKING 10 9 28 6 FFE-887.08 GFE-876.2 PROPOSED BUILDING 5.0 12.8 23.5 SEE ARCH PLANS FOR STOOP INFORMATION GARAGE ENTRANCE 31.0 SEE ARCH PLANS FOR STOOP INFORMATION 10' CURB TAPER FLAT CURB (SEE DETAIL) 3' CURB TAPER SEE ARCH PLANS FOR STOOP INFORMATIONBENCHES (SEE DETAILS) CONCRETE APRON (SEE DETAIL) 5.0 24.0 24.024.0 18.0 24.0 18.0 24.0 CONCRETE APRON (SEE DETAIL) 24.0 9.0 9.0 9.0 9.0 7.0 CONCRETE PAD (TRASH/RECYCLING ENCLOSURE) B612 CURB/GUTTER-TYP (SEE DETAIL) HC SIGNAGE-TYP (SEE DETAIL) 5.3 SPECIALTY PAVEMENT (SEE LEGEND) OUTDOOR TABLE/CHAIRS-TYP (SEE DETAIL) BENCHES (SEE DETAIL) CURB/GUTTER STYLE TO MATCH EXISTING CURB/GUTTER STYLE TO MATCH EXISTING CONCRETE WALK (TO MATCH EXISTING PACEMENT SECTION) CURB/GUTTER STYLE TO MATCH EXISTING 5.0 5.3 5.0 25.6 5.0 HC RAMP (SEE DETAIL) CURB/GUTTER STYLE TO MATCH EXISTING R8.0 R8.0 R3.0 R4.5 R3.0 R3.0R4.5 R3.0 R3.0 R3.0 R10.0 R4.5 R8.0 R8.0R8.0 R3.0 CURB TAPERS FOR SIDEWALK LIGHT POLE-TYP R3.0 R4.5R3.0 R15.1 R10.0 PAVEMENT SECTION TO MATCH EXISTING MONUMENT SIGN (BY OTHERS) 15.0 20.0 11.5 125.7 125.7 CAR CHARGING STATION (SEE ARCH PLANS) 10.0 MODULAR BLOCK WALL W/ 42" HEIGHT BLACK PROTECTIVE FENCE BENCHES (SEE DETAIL) HC RAMP (SEE DETAIL) 5.0 5.0 5.0 5.0 PROTECT REMAINING WOOD WALL FROM DAMAGE PROTECT REMAINING WOOD WALL FROM DAMAGE N SCALE IN FEET 0 20 40 03/07/22 CITY SUBMITTAL 04/11/22 CITY SUBMITTAL 05/03/22 CITY RE-SUBMITTAL 05/11/22 CITY RE-SUBMITTAL Review Date SHEET INDEX License No. Date I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. PJ Disch - PE 49933 Project Lead Drawn By Checked By Loucks Project No.15577B PJD DDL PJD 05/11/22 - LOUCKS W:\2015\15577B\CADD DATA\CIVIL\_dwg Sheet Files\C2-1 Site PlanPlotted: 05 /11 / 2022 11:5 AM7200 Hemlock Lane, Suite 300 Maple Grove, MN 55369 763.424.5505 www.loucksinc.com PLANNING CIVIL ENGINEERING LAND SURVEYING LANDSCAPE ARCHITECTURE ENVIRONMENTAL SUBMITTAL/REVISIONS PROFESSIONAL SIGNATURE QUALITY CONTROL CADD files prepared by the Consultant for this project are instruments of the Consultant professional services for use solely with respect to this project. These CADD files shall not be used on other projects, for additions to this project, or for completion of this project by others without written approval by the Consultant. With the Consultant's approval, others may be permitted to obtain copies of the CADD drawing files for information and reference only. All intentional or unintentional revisions, additions, or deletions to these CADD files shall be made at the full risk of that party making such revisions, additions or deletions and that party shall hold harmless and indemnify the Consultant from any & all responsibilities, claims, and liabilities. CADD QUALIFICATION XCHANGE II MEDICAL OFFICE BUILDING St. Louis Park, MN 33 SOUTH 6TH STREET, SUITE 4650 MINNEAPOLIS, MN 55402 C1-1 C2-1 C3-1 C3-2 C3-3 C4-1 C4-2 C8-1 C8-2 L1-1 L1-2 DEMOLITION PLAN SITE PLAN GRADING PLAN SWPPP SWPPP NOTES SANITARY & WATERMAIN STORM SEWER CITY DETAILS CIVIL DETAILS LANDSCAPE PLAN LANDSCAPE PLAN & DETAILS SITE PLAN C2-1 PARKING STALL COUNT ACCESSIBLE PARKING STALL 2 LEGEND CATCH BASIN STORM SEWER SANITARY SEWER WATERMAIN STORM MANHOLE SANITARY MANHOLE HYDRANT GATE VALVE SPOT ELEVATION SIGN LIGHT POLE POWER POLE WATER MANHOLE / WELL CONTOUR CONCRETE CURB UNDERGROUND ELECTRIC CONCRETE TELEPHONE PEDESTAL UNDERGROUND TELEPHONE UNDERGROUND GAS OVERHEAD UTILITY CHAIN LINK FENCE BUILDING RETAINING WALL NO PARKING UNDERGROUND FIBER OPTIC SANITARY SEWER SERVICE WATER SERVICE ELECTRIC METER GAS METER TREE LINE EXISTING PROPOSED 972 DRAINTILE FORCEMAIN 373PARKING SETBACK LINE BUILDING SETBACK LINE 2 FENCE FLARED END SECTION POST INDICATOR VALVE BENCHMARK SOIL BORING 3DIRECTION OF FLOW 1.0% 972.5 TOLL FREE: 1-800-252-1166 TWIN CITY AREA: 651-454-0002 Gopher State One Call CALL BEFORE YOU DIG! WARNING: THE CONTRACTOR SHALL BE RESPONSIBLE FOR CALLING FOR LOCATIONS OF ALL EXISTING UTILITIES. THEY SHALL COOPERATE WITH ALL UTILITY COMPANIES IN MAINTAINING THEIR SERVICE AND / OR RELOCATION OF LINES. THE CONTRACTOR SHALL CONTACT GOPHER STATE ONE CALL AT 651-454-0002 AT LEAST 48 HOURS IN ADVANCE FOR THE LOCATIONS OF ALL UNDERGROUND WIRES, CABLES, CONDUITS, PIPES, MANHOLES, VALVES OR OTHER BURIED STRUCTURES BEFORE DIGGING. THE CONTRACTOR SHALL REPAIR OR REPLACE THE ABOVE WHEN DAMAGED DURING CONSTRUCTION AT NO COST TO THE OWNER. DENOTES CONCRETE PAVEMENT DENOTES SPECIALTY PAVEMENT TBD DENOTES BITUMINOUS PAVEMENT PAVEMENT LEGEND CURRENT ZONING:O - OFFICE PROPERTY AREA:53,547 SF. EXISTING IMPERVIOUS AREA:23,456 SF. (43.8%) PROPOSED IMPERVIOUS AREA:40,347 SF. (75.3%) 1.ALL PAVING, CONCRETE CURB, GUTTER AND SIDEWALK SHALL BE FURNISHED AND INSTALLED IN ACCORDANCE WITH THE DETAILS SHOWN PER THE DETAIL SHEET(S) AND STATE/LOCAL JURISDICTION REQUIREMENTS. SEE ARCHITECTURAL ALTERNATE #10 FOR SITE CONCRETE SEAL COATING. 2.ACCESSIBLE PARKING AND ACCESSIBLE ROUTES SHALL BE PROVIDED PER CURRENT ADA STANDARDS AND LOCAL/STATE REQUIREMENTS. 3.ALL CURB DIMENSIONS SHOWN ARE TO THE FACE OF CURB UNLESS OTHERWISE NOTED. 4.ALL BUILDING DIMENSIONS ARE TO THE OUTSIDE FACE OF WALL UNLESS OTHERWISE NOTED. 5.TYPICAL FULL SIZED PARKING STALL IS 9' X 18' WITH A 24' WIDE TWO WAY DRIVE OR 9'X18' WITH CURB OVERHANG 6.ALL CURB RADII SHALL BE 3.0' UNLESS OTHERWISE NOTED. 7.BITUMINOUS IMPREGNATED FIBER BOARD TO BE PLACED AT FULL DEPTH OF CONCRETE ADJACENT TO EXISTING STRUCTURES AND BEHIND CURB ADJACENT TO DRIVEWAYS AND SIDEWALKS. 8.SEE SITE LIGHTING PLAN SL-1 FOR SITE LIGHTING AND STRUCTURAL 10/S301 FOR LIGHT POLE BASES. 9.ALL SIGN POSTS TO BE 2" x 2" SQUARE POSTS PAINTED DARK GREY OR GALVANIZED. 10.THE GAP BETWEEN THE SIDEWALK AND CONCRETE CURB (B612 OR FLUSH CURB) TO BE A MAXIMUM OF 1 4" WITH TYPICAL PRE-MOLDED EXPANSION JOINT MATERIAL - NO PLASTIC INSETS. 11. ALL DRIVE LANES TO BE HEAVY-DUTY BITUMINOUS PAVEMENT AND PARKING STALLS TO BE STANDARD DUTY BITUMINOUS. SEE DETAIL ON C8-2. OFF-STREET PARKING CALCULATIONS PROPOSED ACCESSIBLE SURFACE PARKING:4 STALLS REQUIRED ACCESSIBLE PARKING: 4 STALLS** **REQUIRED MINIMUM NUMBER OF ACCESSIBLE SPACES FOR 76 TO 100 STALLS ACCESSIBLE PARKING CITY PARKING REQUIREMENT: ONE STALLS PER 200 SF MINUS 10% REDUCTION ON TRANSIT LINE REQUIRED STALLS = 17,000 SF / 200 x 90% = 77 STALLS PROPOSED SURFACE STALLS = 53 PROPOSED GARAGE STALLS = 27 TOTAL STALLS = 80 SITE NOTES SITE DATA DENOTES HEAVY DUTY CONCRETE PAVEMENT DENOTES COLOR CONCRETE W/ SLATE STAMP CEMSTONE - HARBOR MIST - CP102L City council meeting of June 6, 2022 (Item No. 8b) Title: Xchange II Medical Office Building - Ward 4 Page 18 5 4 5 876 FLOODPLAIN ELEVATION 876 FLOODPLAIN ELEVATION N SCALE IN FEET 0 20 40 03/07/22 CITY SUBMITTAL 04/11/22 CITY SUBMITTAL 05/03/22 CITY RE-SUBMITTAL Review Date SHEET INDEX License No. Date I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. PJ Disch - PE 49933 Project Lead Drawn By Checked By Loucks Project No.15577B PJD DDL PJD 05/03/22 - LOUCKS W:\2015\15577B\CADD DATA\CIVIL\_dwg Sheet Files\Existing Flood PlainPlotted: 05 /03 / 2022 2:8 PM7200 Hemlock Lane, Suite 300 Maple Grove, MN 55369 763.424.5505 www.loucksinc.com PLANNING CIVIL ENGINEERING LAND SURVEYING LANDSCAPE ARCHITECTURE ENVIRONMENTAL SUBMITTAL/REVISIONS PROFESSIONAL SIGNATURE QUALITY CONTROL CADD files prepared by the Consultant for this project are instruments of the Consultant professional services for use solely with respect to this project. These CADD files shall not be used on other projects, for additions to this project, or for completion of this project by others without written approval by the Consultant. With the Consultant's approval, others may be permitted to obtain copies of the CADD drawing files for information and reference only. All intentional or unintentional revisions, additions, or deletions to these CADD files shall be made at the full risk of that party making such revisions, additions or deletions and that party shall hold harmless and indemnify the Consultant from any & all responsibilities, claims, and liabilities. CADD QUALIFICATION XCHANGE II MEDICAL OFFICE BUILDING St. Louis Park, MN 33 SOUTH 6TH STREET, SUITE 4650 MINNEAPOLIS, MN 55402 C1-1 C2-1 C3-1 C3-2 C3-3 C4-1 C4-2 C8-1 C8-2 L1-1 L1-2 DEMOLITION PLAN SITE PLAN GRADING PLAN SWPPP SWPPP NOTES SANITARY & WATERMAIN STORM SEWER CITY DETAILS CIVIL DETAILS LANDSCAPE PLAN LANDSCAPE PLAN & DETAILS EXISTING SITE FLOOD PLAIN EXH TOLL FREE: 1-800-252-1166 TWIN CITY AREA: 651-454-0002 Gopher State One Call CALL BEFORE YOU DIG! WARNING: THE CONTRACTOR SHALL BE RESPONSIBLE FOR CALLING FOR LOCATIONS OF ALL EXISTING UTILITIES. THEY SHALL COOPERATE WITH ALL UTILITY COMPANIES IN MAINTAINING THEIR SERVICE AND / OR RELOCATION OF LINES. THE CONTRACTOR SHALL CONTACT GOPHER STATE ONE CALL AT 651-454-0002 AT LEAST 48 HOURS IN ADVANCE FOR THE LOCATIONS OF ALL UNDERGROUND WIRES, CABLES, CONDUITS, PIPES, MANHOLES, VALVES OR OTHER BURIED STRUCTURES BEFORE DIGGING. THE CONTRACTOR SHALL REPAIR OR REPLACE THE ABOVE WHEN DAMAGED DURING CONSTRUCTION AT NO COST TO THE OWNER. FLOOD ZONE VOLUME BELOW 876.00 EXISTING SITE TOTAL = 865 CY FLOODPLAIN AREA FLOOD PLAIN DATA City council meeting of June 6, 2022 (Item No. 8b) Title: Xchange II Medical Office Building - Ward 4 Page 19 NO PARKINGNO PARKING FFE-887.08 GFE-876.2 PROPOSED BUILDING 875.63 875.93 875.85 1.1%875.75 1.9%3.1%875.02 875.29 874.59 875.12 876.13 876.05 876.05876.10 876.17 876.39 876.46 875.17878.01 877.94878.16 877.89 877.60 877.50 877.52877.10 876.80 877.20 877.37 877.70 875.77875.83 875.91 876.20 876.20 876.20 876.20 875.75 875.30 875.27 875.05 875.10 875.30874.78 874.37 874.88 875.15 875876877876 875 8 8 0 87487 6 8 7 7 8 7 8 87 9 8 8 1 8 8 2 8 8 3 8 8 4 88 3 884 885.00 884.91 884.62 884.50 884.45 883.78 884.20 884.46 882.74 883.26 881.75 1.3%4.2%2.4% 2.9% 2.6%1.3%1.2%1.2%1.5%0.5%1.5%3.0% 3.0%1.3%1.5% 877.09 877.35 1.2%876876875880877878879881882883884876.20874.50 885.00 883.00 876.00 876.90 874.30 1.3%1.5% 1.6%1.0% 2.0% 1.6%877876875 8781.0%874.72 1.7% 875.37 876 877 876 878877878 884876.07 8 8 8 88888888 888876.24 8878.74 878.30 877.20 876.19 875.60 875.35 875.41 875.51 880.18 877.65 877.00 877.35 876.50 876.25 875.54 877.25876.55876.35876.40 876.43 876.55876.55 877.20 877.28 876.56 876.52 873.00 TW=884.00 GW=880.50 TW=884.00 GW=880.50 TW=881.00 GW=880.50TW=880.50 GW=880.50 TW=884.50 TW=884.50 MATCH EXISTING GRADES MATCH EXISTING GRADES MATCH EXISTING GRADES MATCH EXISTING GRADES 876 FLOODPLAIN ELEVATION 878 REGULATORY FLOOD PROTECTION ELEVATION 878 REGULATORY FLOOD PROTECTION ELEVATION 876 FLOODPLAIN ELEVATION 876 FLOODPLAIN ELEVATION N SCALE IN FEET 0 20 40 03/07/22 CITY SUBMITTAL 04/11/22 CITY SUBMITTAL 05/03/22 CITY RE-SUBMITTAL Review Date SHEET INDEX License No. Date I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. PJ Disch - PE 49933 Project Lead Drawn By Checked By Loucks Project No.15577B PJD DDL PJD 05/03/22 - LOUCKS W:\2015\15577B\CADD DATA\CIVIL\_dwg Sheet Files\Proposed Flood PlainPlotted: 05 /03 / 2022 2:1 PM7200 Hemlock Lane, Suite 300 Maple Grove, MN 55369 763.424.5505 www.loucksinc.com PLANNING CIVIL ENGINEERING LAND SURVEYING LANDSCAPE ARCHITECTURE ENVIRONMENTAL SUBMITTAL/REVISIONS PROFESSIONAL SIGNATURE QUALITY CONTROL CADD files prepared by the Consultant for this project are instruments of the Consultant professional services for use solely with respect to this project. These CADD files shall not be used on other projects, for additions to this project, or for completion of this project by others without written approval by the Consultant. With the Consultant's approval, others may be permitted to obtain copies of the CADD drawing files for information and reference only. All intentional or unintentional revisions, additions, or deletions to these CADD files shall be made at the full risk of that party making such revisions, additions or deletions and that party shall hold harmless and indemnify the Consultant from any & all responsibilities, claims, and liabilities. CADD QUALIFICATION XCHANGE II MEDICAL OFFICE BUILDING St. Louis Park, MN 33 SOUTH 6TH STREET, SUITE 4650 MINNEAPOLIS, MN 55402 C1-1 C2-1 C3-1 C3-2 C3-3 C4-1 C4-2 C8-1 C8-2 L1-1 L1-2 DEMOLITION PLAN SITE PLAN GRADING PLAN SWPPP SWPPP NOTES SANITARY & WATERMAIN STORM SEWER CITY DETAILS CIVIL DETAILS LANDSCAPE PLAN LANDSCAPE PLAN & DETAILS Review Date SHEET INDEX License No. Date I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Landscape Architect under the laws of the State of Minnesota. Douglas D. Loken - LA 45591 Project Lead Drawn By Checked By Loucks Project No.15577B PJD DDL DDL 05/03/22 - PROPOSED SITE FLOOD PLAIN EXH PARKING STALL COUNT ACCESSIBLE PARKING STALL 2 LEGEND CATCH BASIN STORM SEWER SANITARY SEWER WATERMAIN STORM MANHOLE SANITARY MANHOLE HYDRANT GATE VALVE SPOT ELEVATION SIGN LIGHT POLE POWER POLE WATER MANHOLE / WELL CONTOUR CONCRETE CURB UNDERGROUND ELECTRIC CONCRETE TELEPHONE PEDESTAL UNDERGROUND TELEPHONE UNDERGROUND GAS OVERHEAD UTILITY CHAIN LINK FENCE BUILDING RETAINING WALL NO PARKING UNDERGROUND FIBER OPTIC SANITARY SEWER SERVICE WATER SERVICE ELECTRIC METER GAS METER TREE LINE EXISTING PROPOSED 972 DRAINTILE FORCEMAIN 373PARKING SETBACK LINE BUILDING SETBACK LINE 2 FENCE FLARED END SECTION POST INDICATOR VALVE BENCHMARK SOIL BORING 3DIRECTION OF FLOW 1.0% 972.5 TOLL FREE: 1-800-252-1166 TWIN CITY AREA: 651-454-0002 Gopher State One Call CALL BEFORE YOU DIG! WARNING: THE CONTRACTOR SHALL BE RESPONSIBLE FOR CALLING FOR LOCATIONS OF ALL EXISTING UTILITIES. THEY SHALL COOPERATE WITH ALL UTILITY COMPANIES IN MAINTAINING THEIR SERVICE AND / OR RELOCATION OF LINES. THE CONTRACTOR SHALL CONTACT GOPHER STATE ONE CALL AT 651-454-0002 AT LEAST 48 HOURS IN ADVANCE FOR THE LOCATIONS OF ALL UNDERGROUND WIRES, CABLES, CONDUITS, PIPES, MANHOLES, VALVES OR OTHER BURIED STRUCTURES BEFORE DIGGING. THE CONTRACTOR SHALL REPAIR OR REPLACE THE ABOVE WHEN DAMAGED DURING CONSTRUCTION AT NO COST TO THE OWNER. FLOOD ZONE VOLUME BELOW 876.0 EXISTING SITE = 865 CY PROPOSED SITE ABOVE GROUND 874.0 - 876.0 = 297 CY STORM VAULT 871.4- 876.0 = 594 CY PROPOSED SITE TOTAL = 891 CY FLOOD PLAIN DATA City council meeting of June 6, 2022 (Item No. 8b) Title: Xchange II Medical Office Building - Ward 4 Page 20 NO PARKINGNO PARKING PROPOSED BUILDING 875876877876 875 88 0 87487 6 8 7 7 8 7 8 87 9 8 8 1 8 8 2 8 8 3 8 8 4 88 3 884 876876875880877878879881882883884877876875 878876 877 876 878877878 8848 8 8 88888888 884 881 SKH 1 CH 2 SP 2 BS 2 NM 2 SKH 2 SKH 1 AM 1 SKH 2 BS 1 RR 3 RC 4 TH 1 Jm 11 AUH 3 Jm 10 AUH 6 CV 5 PHO 7 AUH 7 NY 9 WPA 4 INH 5 TY 12 FG 14 PR 13 WC 5 AFS 19 PR 6 AFS 7 GAC 12 CV 7 GAC 3 Jm 5 MJJ 3 GS 3 ML 7 AUH 7 CV 12 GAC 7 CV 7 MJJ 1 AM 3 Jm 35 FG 14 FG 1 QB 1 QB 1 NM 1 CH 1 CH 18 FG 5 FG 15 LS 7 GC 5 MJJ 22 GC 5 MJJ 10 GC 4 GC 5 MJJ 5 GC 7 GC 4 MJJ 7 GC ROCK MULCH OVER FABRIC IN ISLANDS EDGER-TYP EDGER EDGER-TYP EDGER OUTDOOR PATIO SPACE BENCH-TYP DORA SPACE (SEE NOTES) DORA SPACE (SEE NOTES) DECIDUOUS TREES QTY COMMON NAME BOTANICAL NAME CONT SIZE AM 2 ARMSTRONG MAPLE Acer freemanii `Armstrong`B & B 2.5"Cal CH 3 COMMON HACKBERRY Celtis occidentalis B & B 2.5"Cal NM 3 NORTHWOOD MAPLE Acer rubrum `Northwood`B & B 2.5"Cal RR 1 RENAISSANCE REFLECTION BIRCH Betula papyrifera `Renaissance Reflection`B & B 8` HGT SKH 6 SKYLINE HONEYLOCUST Gleditsia triacanthos `Skycole`B & B 2.5"Cal QB 2 SWAMP WHITE OAK Quercus bicolor B & B 2.5"Cal EVERGREEN TREES QTY COMMON NAME BOTANICAL NAME CONT SIZE BS 4 BLACK HILLS SPRUCE FULL FORM Picea glauca `Densata`B & B 6` HGT SP 2 SWISS PINE FULL FORM Pinus cembra B & B 6` HGT ORNAMENTAL TREES QTY COMMON NAME BOTANICAL NAME CONT SIZE RC 3 RED JEWEL CRABAPPLE Malus x `Jewelcole` TM B & B 1.5"Cal TH 4 THORNLESS HAWTHORN Crataegus crus-galli `Inermis`B & B 1.5"Cal SHRUBS QTY COMMON NAME BOTANICAL NAME MIN CONT MIN SIZE SPACING CV 32 COMPACT AMERICAN VIBURNUM Viburnum trilobum `Bailey Compact` 5 gal 24" HGT 60" o.c. GC 62 GLOSSY BLACK CHOKEBERRY Aronia melanocarpa elata 5 gal 24" HGT 48" o.c. GS 3 GOLDFLAME SPIREA Spirea x bumalda `Goldflame`5 gal 24" HGT 48" o.c. GAC 26 GREEN MOUND ALPINE CURRANT Ribes alpinum `Green Mound`5 gal 24" HGT 48" o.c. INH 4 INCREDIBALL HYDRANGEA Hydrangea arborescens `Incrediball` 5 gal 24" HGT 48" o.c. ML 3 MISS KIM LILAC Syringa patula `Miss Kim`5 gal 24" HGT 54" o.c. GRASSES QTY COMMON NAME BOTANICAL NAME MIN CONT MIN SIZE SPACING FG 84 FEATHER REED GRASS Calamagrostis x acutiflora `Karl Foerster` 1 gal 24" o.c. CONIFEROUS SHRUBS QTY COMMON NAME BOTANICAL NAME MIN CONT MIN SIZE SPACING Jm 10 MEDORA JUNIPER Juniperus scopulorum 'Medora'10 gal 6` HGT 48" o.c. MJJ 31 MINT JULEP JUNIPER Juniperus chinensis `Monlep`5 gal 18" SPRD 60" o.c. NY 7 NOVA YEW Taxus cuspidata `Nova`5 gal 18" SPRD 48" o.c. TY 5 TAUNTON YEW Taxus x media `Taunton`5 gal 18" SPRD 48" o.c. PERENNIALS QTY COMMON NAME BOTANICAL NAME MIN CONT MIN SIZE SPACING AUH 35 AUREOMARGINATA HOSTA Hosta montana `Aureomarginata`1 gal 36" o.c. AFS 11 AUTUMN FIRE SEDUM Sedum x `Autumn Fire`1 gal 24" o.c. LS 15 LITTLE SPIRE RUSSIAN SAGE Perovskia x `Little Spire`1 gal 24" o.c. PHO 5 PATRIOT HOSTA Hosta x `Patriot`1 gal 24" o.c. PR 33 POT OF GOLD RUDBECKIA Rudbeckia fulgida `Pot of Gold`1 gal 24" o.c. WC 13 WALKERS LOW CATMINT Nepeta x faassenii `Walkers Low`1 gal 24" o.c. WPA 9 WOODS PURPLE ASTER Aster x `Woods Purple`1 gal 18" o.c. GROUND COVERS CODE COMMON NAME BOTANICAL NAME SOD TURF SOD Wm WOOD MULCH PLACE OVER GEOTEXTILE FABRIC. MULCH COLOR TO BE DARK BROWN PLANT SCHEDULE N SCALE IN FEET 0 20 40 GENERAL NOTES CONTRACTOR SHALL VISIT SITE PRIOR TO SUBMITTING BID. HE SHALL INSPECT SITE AND BECOME FAMILIAR WITH EXISTING CONDITIONS RELATING TO THE NATURE AND SCOPE OF WORK. VERIFY LAYOUT AND ANY DIMENSIONS SHOWN AND BRING TO THE ATTENTION OF THE LANDSCAPE ARCHITECT ANY DISCREPANCIES WHICH MAY COMPROMISE THE DESIGN AND/OR INTENT OF THE PROJECT'S LAYOUT. ASSURE COMPLIANCE WITH ALL APPLICABLE CODES AND REGULATIONS GOVERNING THE WORK OR MATERIALS SUPPLIED. CONTRACTOR SHALL PROTECT ALL EXISTING ROADS, CURBS/GUTTERS, TRAILS, TREES, LAWNS AND SITE ELEMENTS DURING PLANTING OPERATIONS. ANY DAMAGE TO SAME SHALL BE REPAIRED AT NO COST TO THE OWNER. CONTRACTOR SHALL VERIFY ALIGNMENT AND LOCATION OF ALL UNDERGROUND AND ABOVE GRADE UTILITIES AND PROVIDE THE NECESSARY PROTECTION FOR SAME BEFORE CONSTRUCTION / MATERIAL INSTALLATION BEGINS (MINIMUM 10' - 0" CLEARANCE). ALL UNDERGROUND UTILITIES SHALL BE LAID SO THAT TRENCHES DO NOT CUT THROUGH ROOT SYSTEMS OF ANY EXISTING TREES TO REMAIN. EXISTING CONTOURS, TRAILS, VEGETATION, CURB/GUTTER AND OTHER EXISTING ELEMENTS BASED UPON INFORMATION SUPPLIED TO LANDSCAPE ARCHITECT BY OTHERS. CONTRACTOR SHALL VERIFY ANY AND ALL DISCREPANCIES PRIOR TO CONSTRUCTION AND NOTIFY LANDSCAPE ARCHITECT OF SAME. THE ALIGNMENT AND GRADES OF THE PROPOSED WALKS, TRAILS AND/OR ROADWAYS ARE SUBJECT TO FIELD ADJUSTMENT REQUIRED TO CONFORM TO LOCALIZED TOPOGRAPHIC CONDITIONS AND TO MINIMIZE TREE REMOVAL AND GRADING. ANY CHANGE IN ALIGNMENT MUST BE APPROVED BY LANDSCAPE ARCHITECT. IRRIGATION NOTES: LANDSCAPE CONTRACTOR SHALL BE RESPONSIBLE FOR PROVIDING AN IRRIGATION LAYOUT PLAN AND SPECIFICATION AS A PART OF THE SCOPE OF WORK WHEN BIDDING. THESE SHALL BE APPROVED BY THE LANDSCAPE ARCHITECT PRIOR TO ORDER AND/OR INSTALLATION. IRRIGATION LAYOUT WILL BE SUBMITTED TO THE CITY OF ST. LOUIS PARK BY THE LANDSCAPE ARCHITECTURE FOR APPROVAL PRIOR TO CONSTRUCTION. IT SHALL BE THE LANDSCAPE CONTRACTORS RESPONSIBILITY TO INSURE THAT ALL SODDED/SEEDED AND PLANTED AREAS ARE IRRIGATED PROPERLY, INCLUDING THOSE AREAS DIRECTLY AROUND AND ABUTTING BUILDING FOUNDATION. CONTRACTOR TO CONFIRM COMPLETE LIMITS OF IRRIGATION PRIOR TO SUPPLYING SHOP DRAWINGS. THE LANDSCAPE CONTRACTOR SHALL PROVIDE THE OWNER WITH AN IRRIGATION SCHEDULE APPROPRIATE TO THE PROJECT SITE CONDITIONS AND TO PLANT MATERIAL GROWTH REQUIREMENTS. IRRIGATION SYSTEM IS NOT TO SPRINKLE ACROSS PAVEMENT. THE SYSTEM SHALL INCORPORATE A RAIN SENSOR INTO IRRIGATION SYSTEM. IRRIGATION SYSTEM TO NOT SPRAY THE BUILDING. PLANTINGS OUTSIDE THE LIMITS OF IRRIGATION ARE TO BE WATERED REGULARLY UNTIL PLANTING/SOD/SEED HAS BEEN ESTABLISHED. LANDSCAPE REQUIREMENTS: 1- TREE PER 1,000 SF OF GROSS BUILDING FLOOR AREA (GROSS FLOOR AREA = 17,000) 17,000 /1,000 = 17 REQUIRED TREES = 17 TREES 6-SHRUBS PER 1,000 SF OF GROSS BUILDING FLOOR AREA (GROSS FLOOR AREA = 17,000) 17 X 6 = 102 SHRUBS PERIMETER - 1,129 LF TREE REQUIREMENT - 1 TREE / 50 LF PERIMETER = 23 REQUIRED TREES 23 PROPOSED TREES SHRUB REQUIREMENT - 6 SHRUBS / 50 LF PERIMETER = 135 REQUIRED SHRUBS 135 PROPOSED SHRUBS TREE MITIGATION REQUIRED = 43 INCHES TREE MITIGATION PROPOED = 0 INCHES NOTE: DEVELOPER TO PAY CASH PER INCH IN LIEU OF INCHES. DORA CALCULATIONS: BUILDING AREA = 17,000 SQ.FT. DORA REQUIRED (12% OF GROSS FLOOR AREA) = 2,040 SQ.FT. (NOT USED) OR DORA REQUIRED (12% OF LOT AREA) = 53,542 * .12 = 6,425 SQ. FT. DORA PROPOSED = 6,509 SQ.FT. (MARKED ON PLAN WITH HATCH) TOLL FREE: 1-800-252-1166 TWIN CITY AREA: 651-454-0002 Gopher State One Call CALL BEFORE YOU DIG! WARNING: THE CONTRACTOR SHALL BE RESPONSIBLE FOR CALLING FOR LOCATIONS OF ALL EXISTING UTILITIES. THEY SHALL COOPERATE WITH ALL UTILITY COMPANIES IN MAINTAINING THEIR SERVICE AND / OR RELOCATION OF LINES. THE CONTRACTOR SHALL CONTACT GOPHER STATE ONE CALL AT 651-454-0002 AT LEAST 48 HOURS IN ADVANCE FOR THE LOCATIONS OF ALL UNDERGROUND WIRES, CABLES, CONDUITS, PIPES, MANHOLES, VALVES OR OTHER BURIED STRUCTURES BEFORE DIGGING. THE CONTRACTOR SHALL REPAIR OR REPLACE THE ABOVE WHEN DAMAGED DURING CONSTRUCTION AT NO COST TO THE OWNER. 03/07/22 CITY SUBMITTAL 04/11/22 CITY SUBMITTAL 05/03/22 CITY RE-SUBMITTAL 05/11/22 CITY RE-SUBMITTAL 05/24/22 CITY RE-SUBMITTAL LOUCKS W:\2015\15577B\CADD DATA\LANDSCAPE\_dwg Sheet Files\L1-1-LANDSCAPE PLANPlotted: 05 /24 / 2022 3:37 PM7200 Hemlock Lane, Suite 300 Maple Grove, MN 55369 763.424.5505 www.loucksinc.com PLANNING CIVIL ENGINEERING LAND SURVEYING LANDSCAPE ARCHITECTURE ENVIRONMENTAL SUBMITTAL/REVISIONS PROFESSIONAL SIGNATURE QUALITY CONTROL CADD files prepared by the Consultant for this project are instruments of the Consultant professional services for use solely with respect to this project. These CADD files shall not be used on other projects, for additions to this project, or for completion of this project by others without written approval by the Consultant. With the Consultant's approval, others may be permitted to obtain copies of the CADD drawing files for information and reference only. All intentional or unintentional revisions, additions, or deletions to these CADD files shall be made at the full risk of that party making such revisions, additions or deletions and that party shall hold harmless and indemnify the Consultant from any & all responsibilities, claims, and liabilities. CADD QUALIFICATION XCHANGE II MEDICAL OFFICE BUILDING St. Louis Park, MN 33 SOUTH 6TH STREET, SUITE 4650 MINNEAPOLIS, MN 55402 C1-1 C2-1 C3-1 C3-2 C3-3 C4-1 C4-2 C8-1 C8-2 L1-1 L1-2 DEMOLITION PLAN SITE PLAN GRADING PLAN SWPPP SWPPP NOTES SANITARY & WATERMAIN STORM SEWER CITY DETAILS CIVIL DETAILS LANDSCAPE PLAN LANDSCAPE PLAN & DETAILS Review Date SHEET INDEX License No. Date I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Landscape Architect under the laws of the State of Minnesota. Douglas D. Loken - LA 45591 Project Lead Drawn By Checked By Loucks Project No.15577B PJD DDL DDL 05/24/22 - LANDSCAPE PLAN L1-1 City council meeting of June 6, 2022 (Item No. 8b) Title: Xchange II Medical Office Building - Ward 4 Page 21