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HomeMy WebLinkAbout2022/06/06 - ADMIN - Minutes - Economic Development Authority - Regular Official minutes EDA meeting St. Louis Park, Minnesota June 6, 2022 1. Call to order President Rog called the meeting to order at 5:15 p.m. 1a. Roll call Commissioners present: President Rog, Tim Brausen, Sue Budd, Lynette Dumalag, Larry Kraft, Nadia Mohamed (arrived 5:25 p.m.), and Jake Spano Commissioners absent: none. Staff present: City Manager (Ms. Keller), Economic Development Manager (Mr. Hunt), Executive Director/Community Development Director (Ms. Barton), City Attorney (Mr. Mattick), Planning Manager (Mr. Walther), Interim Director of Communications and Technology (Ms. Smith) 2. Approval of EDA agenda It was moved by Commissioner Brausen, seconded by Commissioner Dumalag to approve the EDA agenda as presented. The motion passed 6-0 (Commissioner Mohamed absent). 3. Approval of consent calendar 3a. Accept EDA disbursement claims for the period of April 30 through May 27, 2022. 3b. Motion to adopt EDA Resolution No. 22-18 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 EDA Resolution No. 22-19 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. It was moved by Commissioner Brausen, seconded by Commissioner Dumalag, to approve the EDA consent calendar as presented. The motion passed 6-0 (Commissioner Mohamed absent). 4. Approval of EDA minutes DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91 Economic Development Authority -2- June 6, 2022 4a. EDA meeting minutes of May 16, 2022 It was moved by Commissioner Budd, seconded by Commissioner Dumalag, to approve the EDA meeting minutes of May 16, 2022, as presented. The motion passed 6-0 (Commissioner Mohamed absent). 5. Unfinished business – none. 6. New business 6a. Revised green building policy EDA Resolution No. 22-20 Mr. Walther and Ms. Ziring presented the report. Commissioner Kraft asked about council requiring solar, noting he did not remember that this was a requirement and wanted to be sure this is not misinterpreted. Mr. Walther stated in the context of initial reviews of recent developme nt projects, council’s comments regarding solar has been understood by staff to be a requirement and staff have been incorporating it into negotiated financial assistance agreements for new developments and have added it as a requirement into proposed and amended green building policy. Commissioner Kraft stated he asks questions about these items, but does not necessarily require that it be policy, adding he wanted to clarify this. Commissioner Brausen thanked staff for continuing to codify these requirements and their strong efforts here. Commissioner Dumalag stated she is happy to see this being done in other communities as well as St. Louis Park, and she is glad to be part of this partnership and concerted effort. President Rog noted the city’s climate action goal for all new construction to be at net zero by 2030 and asked how this policy moves the city closer to this goal, and what is left to be done to get the city there. Ms. Ziring stated the policy will get the city closer to this goal, especially as the green building standards become more stringent, and the city revisits it in the future. She added this is the best tool the city has, and it is the goal to get there as soon as possible. Ms. Ziring stated the city is limited due to the state’s authority over building code, but this does move things in the right direction. Commissioner Kraft noted that the staff report indicated this may result in developers asking for more TIF to do these things. He noted developers that commit to this policy will differentiate themselves and their buildings, adding this is in their best interest. DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91 Economic Development Authority -3- June 6, 2022 It was moved by Commissioner Kraft, seconded by Commissioner Brausen, to adopt EDA Resolution No. 22-20 approving a revised green building policy. The motion passed 7-0. 6b. Establishment of the Beltline Station 1 Tax Increment Financing District EDA Resolution No. 22-21 and EDA Resolution No. 22-22 Mr. Hunt presented the report. Commissioner Spano asked about the 26-year lifespan of the TIF district and if it is paid off in approximately 10 years. Mr. Hunt stated yes. Commissioner Spano asked what tools the city has outside of TIF to achieve affordable housing and equity goals. Mr. Hunt stated the best tool we have is TIF, adding the city is limited by the state in what can be utilized. He added the affordable housing trust fund also is used for affordable projects that are brought before the EDA. Commissioner Spano asked what other items TIF is used for, such as infrastructure, and what the process is for that. Mr. Hunt stated infrastructure funding is a qualified expense for TIF, particularly as it relates to redevelopment districts versus housing districts. President Rog asked about the 25-year affordability and what happens to that after this expires. Mr. Hunt stated if it is a low income TIF project, it can go for 40 years. Mr. Dahl, Ehlers, stated the term is 30 years for TIF projects, but most are completed in 15 years and then developers go back to make improvements. President Rog noted her concerns on overutilizing TIF. She is support ive of this, however, since this is a signature development with many community benefits such as access to the light rail, as well as affordability and the high number of family units. It was moved by President Rog, seconded by Commissioner Mohamed, to adopt EDA Resolution No. 22-21 approving the establishment of the Beltline Station 1 Tax Increment Financing District (a housing district). The motion passed 7-0. It was moved by Commissioner Kraft, seconded by Commissioner Brausen, to adopt EDA Resolution No. 22-22 authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Beltline Station 1 TIF district. DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91 Economic Development Authority -4- June 6, 2022 The motion passed 7-0. 6c. Establishment of the Beltline Station 2 Tax Increment Financing District EDA Resolution No. 22-23 and EDA Resolution No. 22-24 Mr. Hunt presented the report. Commissioner Budd asked for clarification on the district boundaries. Mr. Hunt stated the northern boundary goes up to Highway 25, which includes the utilities, but not the road itself. President Rog asked if a 7-story parking ramp is necessary, especially in the new reality we are living in related to traveling downtown. Mr. Hunt stated the middle tier is related to the park and ride, and the other areas are for parking for the market -rate building. He added park and ride is required as the city received a grant to help finance the parking for the development, and therefore the parking ramp must be included. It was moved by Commissioner Mohamed, seconded by Commissioner Brausen, to adopt EDA Resolution No. 22-23 approving the establishment of the Beltline Station 2 Tax Increment Financing District (a renewal and renovation district.) The motion passed 7-0. It was moved by Commissioner Dumalag, seconded by Commissioner Mohamed, to adopt EDA Resolution No. 22-24 authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Beltline Station 2 TIF district. The motion passed 7-0. Mr. Hunt noted details of the project and the redevelopment contract will be brought back to the EDA in the coming months for Station 2. 6d. Establishment of the Wooddale Avenue Apartments Tax Increment Financing District EDA Resolution No. 22-25 and EDA Resolution No. 22-26 Mr. Hunt presented the report. It was moved by Commissioner Brausen, seconded by Commissioner Dumalag, to adopt EDA Resolution No. 22-25 approving the establishment of the Wooddale Avenue Tax Increment Financing District (a housing district). The motion passed 7-0. DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91 Economic Development Authority -5- June 6, 2022 It was moved by Commissioner Dumalag, seconded by Commissioner Brausen, to adopt EDA Resolution No. 22-26 authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Wooddale Avenue Apartments TIF district The motion passed 7-0. 6e. Contract for private redevelopment with Real Estate Equities – Wooddale Avenue Apartments EDA Resolution No. 22-27 Mr. Hunt presented the report. It was moved by Commission Dumalag, seconded by Commissioner Brausen, to adopt EDA Resolution No. 22-27 approving the Contract for Private Redevelopment between the EDA and Real Estate Equities (St. Louis Park AHI, LLLP). The motion passed 7-0. 6f. Establishment of the Rise on 7 Tax Increment Financing District EDA Resolution No. 22-28 and EDA Resolution No. 22-29 Ms. Hunt presented the report. Commissioner Kraft noted there are three different TIF initiatives related to the three projects presented and asked for an explanation of this. Mr. Dahl, Ehlers , stated all three projects are unique and they work with each developer to negotiate overcoming certain challenges on each project. He added, however, all have various levels of affordability. Commissioner Kraft noted the daycare and that a good portion of it is reserved for folks living in the apartments. He also noted the city’s values around race equity and how developers work to include those. He highlighted the program that CommonBond has related board membership of BIPOC communities and progress here. Commissioner Kraft added that these are excellent projects and are affordable housing investments we’re making with TIF and these amounts should be brought into when budget discussions are taking place with the council. Commissioner Brausen stated the council has spent years looking at these projects, noting the city is very lucky to be establishing two different TIF districts and that two faith communities turned over their properties for these affordable housing developments, with nominal financial assistance from the city. He thanked all those involved with the financing of these projects. DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91 Economic Development Authority -6- June 6, 2022 It was moved by Commissioner Brausen, seconded by Commissioner Dumalag, to adopt EDA Resolution No. 22-28 approving the establishment of the Rise on 7 Tax Increment Financing District (a housing district). The motion passed 7-0. It was moved by Commissioner Dumalag, seconded by Commissioner Brausen, to adopt EDA Resolution No. 22-29 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. The motion passed 7-0. 6g. Contract for private redevelopment with CommonBond Communities – Rise on 7 EDA Resolution No. 22-30 Mr. Hunt presented the report. Commissioner Brausen asked if the developments base tax value will change based on the market value and if the TIF will be implemented later. Mr. Hunt stated that is correct for all three properties, and the taxes resulting from the base value will be accrued to various overlapping taxing jurisdictions. It was moved by Commissioner Brausen, seconded by Commissioner Dumalag, to adopt EDA Resolution No. 22-30 approving the contract for private redevelopment between the EDA and CommonBond Communities/CB SLP Housing Limited Partnership. The motion passed 7-0. 7. Communications – none 8. Adjournment The meeting adjourned at 6:06 p.m. ______________________________________ ______________________________________ Melissa Kennedy, secretary Margaret Rog, president DocuSign Envelope ID: 2AB6CCDA-AF82-4E54-A3F6-C7D63BC8FC91