HomeMy WebLinkAbout2016/10/24 - ADMIN - Minutes - City Council - Study SessionIII St. Louis Park
MINNESOTA
The meeting convened at 6:30 p.m.
OFFICIAL MINUTES
CITY COUNCIL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
OCTOBER 24, 2016
Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg,
Anne Mavity, Thom Miller, and Susan Sanger.
Staff present: City Manager (Mr. Harmening), Engineering Director (Ms. Heiser), Economic
Development Coordinator (Mr. Hunt), Senior Planner (Mr. Walther), Economic Development
Specialist (Ms. Grove), Planner (Ms. Monson), and Recording Secretary (Ms. Pappas).
Guest: Mr. Ron Mehl, Developer, Bridgewater/Dominium; Don Kasbohm, Developer, 36'h Street
LLC; Stacie Kvilvang, Ehlers.
Future Study Session Agenda Planning — November 7 & 14, 2016
Mr. Harmening presented the proposed Study Session agenda for November 7 and 14, 2016. He
noted that Preservation of Naturally Occurring Affordable Housing will be discussed on
November 14, as well as a Race and Equity update.
Councilmember Lindberg asked if staff would invite the Human Rights Commission members,
as well as the Multicultural Advisory Group, to the November 14 meeting.
Councilmember Sanger asked if the agenda was too long for the November 14 meeting and if all
topics listed needed to be addressed at this meeting.
Mr. Harmening stated he appreciated Councilmember Sanger's comments and found them
helpful. He noted there are topics that can be removed and presented at later dates, such as the
Council Chambers remodel. However, he would like Chief Luse to present an update on body
cameras before he retires at the end of the year.
Councilmember Miller asked about adding the plan to put air strippers into the water system to
reduce VSCs, as a discussion topic as it relates to the 2017 budget. He asked if the council could
use Mr. Simon's budget tool in order to see how this project could be funded in the 2017 budget.
Mayor Spano stated he is okay with this, but having seen how state and federal agencies provide
funding, if the council is comfortable with these safety issues, he would like to hold to be sure
not to jeopardize the $5 million in funding.
Councilmember Sanger stated she shares these concerns.
Councilmember Brausen added he would like to leave it alone for now, noting the fix is built into
the budget.
Councilmember Hallfin stated he is fine having the conversation
Councilmember Lindberg agreed with Mayor Spano, and while he has no problem having the
conversation, he also wants to be sure funding is not jeopardized. He added he wants to make
sure the conversation is that St. Louis Park water is safe, and plans are being made to make it
better, while being careful in how this is communicated.
Study Session Minutes -2- October 24, 2016
Councilmember Mavity added she is not inclined to bring this up, and that the city water is safe.
She added staff has developed the improvements and prioritized this project.
Mayor Spann asked Mr. Harmening for a written report, with financial information included, to
present to council for review.
Councilmember Miller asked about further discussion on the topic of the girls' softball fields. He
noted the group is pulling together a task force to see what is needed. He also asked if this
project could be assigned in the budget in the $10,000-$20,000 range, and see if it could be
completed in 2018.
Councilmember Brausen stated the City Manager has discretion on this, adding he is not
convinced there is a need for four fields and would like to see more information on the project
before making a decision.
Councilmember Mavity agreed there is a need to move forward with this plan; however, there is
no clear timeline, and there is a need to be able to communicate a plan to residents. Additionally,
she noted that because of differences of opinion between community stakeholders, the task force
has been comprised. She would like them to vote on who their representatives are and report
back, before moving forward on this.
Councilmember Hallfin added he did not think it was necessary to earmark funds, as he assumed
discretionary funds would be used. He agreed with Councilmember Mavity that the group needs
to report back to staff and council as soon as possible on this issue.
Councilmember Sanger added it is important to move forward on this. She added if the city has
discretionary funds for this, she is fine with it. She also asked if existing fields can be
reconfigured in order to meet the needs of the group.
Councilmember Hallfin stated the task force can look further into this question.
Mayor Spano agreed that the city has discretionary funds for this and also noted that the girls'
softball association needs to speak in a uniform voice to be able to move forward.
Councilmember Mavity added the Parks and Recreation Advisory Commission is leading on this
and asked Mr. Harmening for another written report on the topic in order to see a current
timeline.
2. Excelsior & Monterey Redevelopment (Bridgewater/Dominium)
Mr. Walther introduced the developer, Mr. Ron Mehl with Dominium. Mr. Walther stated that
Dominium and Bridgewater Bank have applied for development approvals for the properties at
4424 and 4400 Excelsior Blvd., and 3743 Monterey Drive. He added that Bridgewater is
working with Dominium as the developer for the site. The city approved a Comprehensive Plan
amendment to guide the property for mixed use, and the city is also processing applications for a
preliminary plat, variances, and preliminary planned unit development (PUD). A public hearing
was held and the Planning Commission recommended approval of the applications on March 16,
2016.
Study Session Minutes -3- October 24, 2016
Mr. Walther added that the city council last discussed the proposal in April, 2016, and
Dominium has made revisions to the development proposal based on the city council's
discussions. These changes include:
• Reduced from 167 to 163 dwelling units
• Reduced overall density from 69.9 to 68.2 units per acre
• Removed units from the sixth floor on the northeast corner of the building
• Changed the access on Monterey Drive across from Park Commons Drive to an entrance
only driveway
• Added a raised landscape planter in the boulevard of Monterey Drive to discourage
pedestrian crossings
Mr. Walther noted the development continues to include a substantial affordability component
with at least 33 units (20% of the total units) affordable at 50% of the area median income. It
continues to include 17,500 square feet of commercial space on the first floor, and Bridgewater
Bank would occupy 10,000 square feet of that space. It also continues to include three levels of
structured parking and ranges from three to six stories tall. Additionally, the redevelopment
would require acquisition of the EDA's property located at 3743 Monterey Drive. It is the FDA's
practice to sell property at market rate. In order for redevelopment to occur on the assembled site
at the proposed scale and density, approximately $4.5 million in TIF is requested.
Mr. Mehl noted that previous feedback from the council expressed concerns with the
development related to traffic, building density, building height, and outdoor greenspace. Mr.
Mehl presented the design showing the proposed building set back from the curb, along with
planters and landscaping. He noted that several units were removed, which lowers the building
height. The terrace is back farther, and the unit mix will include 20% affordable housing at 50%
of area median income (AMI), while the city's requirement is 10% and 60% of AMI. He
presented images of landscaping and a rooftop courtyard and noted that the 14% Designed
Outdoor Recreation Area exceeds the city requirements.
Councilmember Lindberg asked about the width of the area between the street and planters. The
developer stated it varies from 7-9 feet.
Councilmember Miller asked if that is the same as the current footprint. The developer stated it
will be recessed back a bit from the footprint.
Mr. Mehl also noted there is a placcholder for artwork and sculpture at the development along
Monterey. Additionally, with the building set back being farther than what currently exists along
Monterey Drive, there will be more sidewalk space for pedestrians.
Councilmember Mavity noted the large number of residents in attendance at the meeting tonight,
and stated they have been paying attention to this project from the beginning. She stated that
some of the concerns have been addressed today, but some improvements may not go the
distance to satisfy what people are concerned about.
Councilmember Mavity stated that something will be developed on the corner of Excelsior and
Monterey, and how can the city be sure it is the right fit and right scale compared to other
buildings located there. She stated there are concerns about circulation and traffic and how
residents will move around, as well as have a safe, more comfortable pedestrian experience. She
noted the council would like to see plans related to this corner from staff, also.
Study Session Minutes 4- October 24, 2016
Councilmember Mavity asked about the bike lanes presented in the design and said she does not
understand how they fit into the full plan, especially with the current narrow turn from Excelsior
to Monterey. She would like staff to speak to this, also. She noted while the entrance proposed
across from Trader Joe's looks like an improvement, she is not certain entrances and exits can be
closed here.
Additionally, Councilmember Mavity stated that after Highway 100 is completely reopened, she
hopes Ward 2 will receive some relief from the heavy traffic they have had for the past two
years. She stated everyone will need to reconsider what normal traffic is in the area. She also
noted that the 36%2 Street intersection will need to be made safe for pedestrian crossing.
Councilmember Mavity stated that density is also a concern. A large group of neighbors believe
there is too much density on this corner. Additionally, many think that six stories is too high. She
is not certain the developer has listened to these concerns.
Councilmember Mavity stressed that the council has discussed the process for St. Louis Park's
vision, and through this process she invited all to participate to include their vision for the
Comprehensive Plan. This process will begin soon and extend through June of 2017, and she
encouraged all to participate.
Mr. Mehl noted they have worked on the entrance and landscaping of the development, and
understand the concerns about the scale of the building, but noted the area is zoned for six
stories.
Mr. Harmening noted one clarification on the pedestrian signal at the crossing from the Rec
Center and also the sidewalk from 36'/2 Street. He stated a meeting will be held related to this
area, to address the sharp grade that drops into the parking lot there. Staff realizes this needs to
be improved for the multi -family community.
Mr. Walther noted the width on Monterey east of the median is 18 feet and is wide enough for a
bike lane to be added. He also noted on the west side of Monterey, additional work would need
to be done in order to accommodate a southbound bike lane.
Councilmember Lindberg asked when a bike lane is scheduled for Monterey Avenue. Ms. Heiser
answered 2018.
Councilmember Lindberg added to Councilmember Mavity's point that coordinating the
planning and creating active pedestrian crossings need to be part of conversations with residents.
He asked if the access through easement on the neighboring property will still be included or if
the entrance or exit will be removed. The developer stated it has not been removed, and they are
speaking with Park Health on improvements to widen the easement driveway. The developer
added that the entrance/exit onto Excelsior would be the sante as it is now, and residents would
move in and out farther to the north, with parking areas also included for visitors.
Councilmember Lindberg noted he has concerns about traffic using the easement because of the
emergency vehicles that use that area.
Councilmember Brausen stated he is generally supportive of this project. He added that on
Excelsior Boulevard and with light rail he does see high density making sense. After seeing the
traffic study, the intersection improvements look fine and the bike lanes look like they can work.
Study Session Minutes -5- October 24, 2016
He is glad they are programmed in, as St. Louis Park is building a system here, which was noted
at last week's meeting with the discussion related to Texas Avenue. Councilmember Brausen
added he is, however, not impressed with the building colors and is tired of brown.
Councilmember Sanger asked about affordable housing at the development and how long the
units will remain affordable. The developer noted they would remain affordable for the same
term as the requested amount of TIF, which is 15 years. He added, after that time, they could go
for market rate.
Mr. Hunt pointed out that in compliance with the Inclusionary Housing Policy, the
redevelopment contract would require 25 years of affordable housing, not 15, with the caveat
that after 15 years the number of affordable units could be reduced from 20% to 10% of the
units.
Councilmember Sanger asked when building affordable housing if they are the same finishes and
quality as market rate developments. The developer stated, yes, they are exactly the same.
Councilmember Sanger noted she is concerned about traffic implications at the site, noting the
developer only moved the traffic a bit with the entrance -only driveway, and this does not solve
the problem. She also has concerns about density and height. She added she is not as concerned
about having five stories, but would rather have a smaller footprint with more green space.
Councilmember Sanger added that too many units create too much traffic, noting that on
Monterey there will still be a lot of traffic. She is concerned that drivers will want to cross over
Monterey from Park Commons to get to the entrance of the development, and this will create
three different traffic movements on the street. She is also concerned about adding more traffic to
this intersection and Excelsior Boulevard in general and stated she cannot support the plan as it
is.
Councilmember Mavity agreed on this point, and stated she would like staff to look at this again.
Ms. Heiser stated staff would review this again.
Councilmember Sanger stated she also does not like the look of the proposed building.
Mayor Spano stated he is frustrated hearing this, and council has had this discussion in the past.
He added that consensus was that the council is not supposed to deal with design elements as
they relate to colors of buildings.
Councilmember Miller stated that while he was not on the council when this project was first
proposed, the whole area of Excelsior and Grand was meant to be pedestrian friendly, with wide
setbacks, similar to the 501h and France area. Ile stated this is not the case on Excelsior, and he
would have appreciated wider setbacks and more pedestrian -friendly sidewalks. He added the
development is much too large, dense, and tall for this area.
Mayor Spano stated the idea of varying the depth of the pedestrian experience is a valid point. It
creates points to stop, gather and chat. He added that be is less concerned about green space
because this development sits right next to Wolfe Park. He stated he has been driving in this area
to review the turn width, especially during rush hour, and noted the turn creates a different
dynamic and accommodating a future bike lane. He added he is not concerned about the height
or footprint but had hoped to see the units reduced by 10-15, and is concerned about density.
Study Session Minutes -6- October 24, 2016
Mayor Spano stated this development is an improvement to the area. The city had more
flexibility at the West End, but there is not as much space available on Excelsior Boulevard.
Councilmember Lindberg stated when comparing this project to Texas Avenue, he has concerns
that the city is stopping short of Minnetonka Boulevard on the Texas Avenue project. There is a
need to look further at this in light of the Connect the Park project. Councilmember Lindberg
stated it is tough for pedestrians to feel safe on Excelsior, and this project is massive. He added
that he would like to see more progress in lowering density.
Councilmember Sanger asked if bikers on Monterey will be expected to use Excelsior
Boulevard. Mr. Walther stated they will most likely come from the north and south
neighborhoods, rather than using Excelsior Boulevard. Councilmember Sanger pointed out to the
developer that they may need to have some fresh eyes look at this project in order to meet the
concerns being raised.
Councilmember Brausen stated he thinks this is a good plan and asked if it is zoned for offices,
also. Mr. Walther answered, yes, offices are permitted there.
Councilmember Brausen asked what the setbacks would be on an office that is six stories in the
same area. Mr. Walther commented the height of the building would influence the setback, but
six -story buildings are allowed in the district.
Councilmember Mavity noted the council is hearing a lot of consistent themes here, including
massing and density, and while neighbors may like the development and walkability of the
project, the height is a bit much and traffic is a concern also. She added she is also hearing there
is a willingness to consider how the city partners with affordability, but this needs to be reduced
to something more manageable, which will take more work from the developer.
Councilmember Hallfin reminded the council and residents that the Highways 100 and 7 projects
will be completed soon and that this development may be very different related to traffic after the
completion of Highways 100 and 7. Councilmember Hallfin added that in a few weeks, it might
feel very different driving down Excelsior. Mr. Walther noted the traffic studies for this project
controlled for the temporary construction disruptions created from the Highways 100 and 7
projects.
Councilmember Miller stated the TIF and density are still a long way off. Councilmember
Sanger agreed.
3. Development Concept Plan for "The Elmwood"
Ms. Monson gave a brief overview of the project. She noted that 36th Street, LLC, has acquired
5605 W. 36th Street (36th Street Business Center/American Legion) for The Elmwood
development, a mixed-use building marketed toward St. Louis Park's active senior residents. The
developer would like to raze the existing American Legion building and construct a 5 -story, 70 -
unit mixed-use active senior apartment building on the one acre site.
The developer Mr. Kasbohra was present to answer questions and provide information to the
council regarding the redevelopment. Ms. Monson noted staff and the developer are interested in
council's input regarding the amount of commercial on the first floor, parking circulation, and
any thoughts on the proposed development. Additionally, the development would require several
Study Session Minutes -7- October 24, 2016
discretionary approvals from the council, including rezoning to PUD; allowing a PUD less than 2
acres in size; allowing an increase in residential density from 50 units per acre to 70 units per
acre; vacation of a city alley; and Tax Increment Financing (TIF).
Mr. Kasbohm added that in order for the redevelopment to occur at the proposed scale and
density, an application for TIF assistance is pending to defray a portion of the building
demolition, site preparation, and structured parking costs. The developer believes that $950,000
may be necessary to make the project financially feasible. A traffic study was completed, and the
design would accommodate the City's plans for on -street parking and bike lanes on 36'h Street.
Councilmember Mavity stated the project appears to be appropriate in size and use and seems to
be well suited for active seniors. She stated it seems a good fit for this area, and she is willing to
leave the PUD question to staff. She added that since it is across from light rail, she would prefer
to go light on parking, with one per unit vs. one per bedroom. She added that the alley is
included in order to ensure the future development of the Burlington site.
Ms. Monson noted that there is an existing and proposed retaining wall that separates the
Burlington site from the development. A future connection between the two sites could be
explored.
Councilmember Lindberg asked about the affordability plan for this site and the market rate on
average. Mr. Murray stated the units will be $1,600/month. Ms. Monson added that 10% of the
units would be affordable at 60% of area median income per the city's inclusionary housing
policy.
Councilmember Lindberg stated he likes the idea of senior housing and senior affordable
housing but has concerns on the size of the building, how residents interact, and the types of
services offered in the facility. He asked if there are dining services and what level of amenities
are available with active senior living. Ms. Monson stated along with light commercial office
space, there will be an exercise facility, yoga room, party room, club rooms, bike workroom and
large Designed Outdoor Recreation Area at grade south of the building, as well as a rooftop deck
with a view of downtown.
Mt•. Walther noted this is independent living with no care services.
Councilmember Sanger stated in general she is okay with the idea, stating that it makes sense.
She is fine with vacating the alley way and also positive on having a couple units on first floor,
especially if they have separate entrances. She added, however, she did not believe the green
space was adequate for seniors who may have grandchildren over or who may want to walk
dogs. The developer noted the DORA space is 11,000 square feet, which is one-quarter of an
acre.
Councilmember Sanger stated she is not sure what the advantage is of proposing a PUD here and
asked what the long-term plan is for Burlington and the Micro Center site. Mr. Walther stated the
redevelopment plan for the area anticipated more commercial and office development on the
American Legion site, but during the Comprehensive Planning process, the site was instead
guided Mixed Use, which would allow for either office or residential uses over commercial on
the first floor. The redevelopment plan expected fixture office redevelopment at the Burlington
site, and the city has subsequently re -guided it to office and rezoned it from C2 to Office zoning.
Study Session Minutes -8- October 24, 2016
Councilmember Hallfin stated he remembered this rezoning for future development. He stated a
PUD usually needs two acres, so why is the council being asked to rezone for a PUD for one
acre. Mr. Walther stated because it cannot be developed at the proposed density of 70 units per
acre under the current Comprehensive Plan, except with a PUD. Although the site is less than 2
acres, the code allows the Council to waive that requirement. Staff thought the City Council may
be open to this smaller PUD because it is generally consistent with the redevelopment plan and
Comprehensive Plan designation. The redevelopment plan, however, generally expected the
subject property and the Burlington site to be combined and redevelop at the same time. He
asked if council is comfortable with development of the American Legion site at this time, not
knowing what the future site will hold.
Mr. Kasbohm stated he has followed the planning process for the area and listened to the
council's goals for a more affordable senior project, and he tried to incorporate this at the site.
He added that One Liberty has purchased the Burlington site, and they have no interest currently
in redevelopment at the site; however, they might do some improvements. He added his firm is
asking the council for 70 units, adding they need the density in order to keep employees there,
including a full-time manager and maintenance workers. He added being a senior project, there
will be less traffic.
Councilmember Hallfin asked if this project has gone to the Planning Commission. Mr. Walther
stated the project had not yet been considered by the Planning Commission. Councilmember
Hallfin asked what the height is at the Hoigaard's development across the street. Mr. Walther
answered five stories. Councilmember Hallfin asked if the city ever had a project on a less than
one acre PUD. Mr. Walther answered, yes, at the Ellipse II. That site similarly was part of the
broader redevelopment plan that included the Ellipse on Excelsior property.
Councilmember Brausen stated the PUD makes more sense to him in order to have more control
on what happens on the site, adding he views it as a guideline. He stated the density near the
light rail makes sense to him, and he would like to see 10 units at affordable rates. He noted he
would consider more TIF there and would also consider reducing parking. He asked why street
parking is allowed there. Mr. Walther stated it is needed and encouraged to support commercial
businesses in the area.
Councilmember Brausen added he is fine with the green space, as there will be urban forest on
the other side of light rail near this location. He added most people won't live at this
development with the idea of there being a lot of green space.
Councilmember Miller asked why this is called senior living, noting that no amenities there are
different. Mr. Kasbohm noted the 55+ designation caters to those who are selling their homes,
want to travel more, and want to be near the action in the city.
Councilmember Miller added this project feels like a one-off, and he doesn't feel there is a
concept plan in this area. He noted this project might be blocking the city from doing something
else there, and it will be premium land near light rail. He added he does not feel this offers a lot
to the community.
Councilmember Lindberg stated he had earlier concerns; however, he does understand the
branding and noted the council needs to consider who this development is for and how it fits into
the current fabric of our community. He added he shares concerns that owners of Burlington and
Study Session Minutes -9- October 24, 2016
Microcenter are happy with their current use, noting possibly this senior living project could go
in a different area. He added he has thought a great deal about senior affordable housing.
Councilmember Lindberg added that people want options in St. Louis Park, but either it's too
expensive or their current house is not affordable. He added he wants to be certain the services
will be favorable to seniors and meet their needs. He also noted he has concerns about parking
there and wants to be certain the council is not assuming that less is more.
Mr. Kasbohm added he has spoken with Ebenezer, Tower Light, Parkshore, and Silvercrest
properties, noting these properties are all full, and they are $2,800 for a two bedroom. He noted
his development will be more affordable, with nicer amenities. He added that as seniors in this
development feel they need more care, they can feed into Parkshore, noting there is a market for
active senior living, with plenty of supportive properties close by if needed.
Councilmember Sanger asked about the monthly rental rates. Mr. Kasbohm stated rates will be
starting at $1,200 for one bedroom, and up to $2,000 for two bedrooms plus den, noting this all
includes parking. He also pointed out at least one resident must be 55+ in order to live there.
Councilmember Mavity noted that Councilmember Miller stated this project feels like a one-off,
however, this redevelopment plan has been in motion since 2003, when the whole area started to
be developed. She added this feels like the continuation of that plan and is consistent and part of
the larger plan and vision. With regard to Councilmember Sanger's questions about green space,
Councilmember Mavity feels there is enough green space in the area, with the Rec Center and
Wolfe Park.
Mr. Kasbohm added he will talk to MnDOT about using adjacent right-of-way for gardening or a
dog run.
Mayor Spano stated he thinks this is entirely consistent with the area and serves a niche with
affordable housing for seniors. He anticipates there is no problem with the PUD.
Councilmember Hallfin asked if there would be cash in lieu of land dedication for park and
recreation on this project. Mr. Walther stated this would be about $100,000 and is based on the
number of units.
Mr. Hannening stated this discussion will continue at a future study session when the Tax
Increment Financing request has been evaluated in more detail.
4. Walker -Lake Street Initiatives
Ms. Grove presented the report, noting that over the past year and a half, staff has been working
with the businesses, high school, and community members in the Walker -Lake Street area to
promote the area businesses and further define the neighborhood's identity. She noted as an older
business center, it has had a wide variety of commercial uses and is now poised to raise its
profile to become a more dynamic and identifiable commercial area. She continued, the intent is
not necessarily to change the area, but rather to enhance its visibility and viability. She noted a
recent event brought several hundred people to the area to enjoy live music and food. The city
received positive feedback, and business owners also were very positive about the event.
Study Session Minutes -10- October 24, 2016
Ms. Grove noted that in October, 2015, the city applied for a Business District Initiative (BDI)
grant from Hennepin Country, with the intent of using the funds to make improvements to the
Walker -Lake Street commercial area. The city did not receive the grant; however, since that time
staff has continued to work with area stakeholders and has searched for additional funding
opportunities to enhance the area. This past summer, after more discussion, Hennepin County
offered to provide the city a Moving the Market grant in the amount of $35,000. These funds will
be used on measures to reactivate the business area, do brand development, and install place
making elements that could include signage and benches. Staff is also in discussions with area
businesses working to determine the feasibility of developing an organized business
partnership/business district.
Councilmember Miller commented he thought the event was fantastic and a great area for a
street event, with the athletic fields in the background. He asked when a plan for the area would
be discussed and when this grant would be provided. Ms. Grove stated this could all be reviewed
during the visioning process for the Comprehensive Plan. Mr. Hunt added the project will focus
on creating new energy in the area - not redeveloping it, but infusing it with more energy.
Councilmember Miller asked if a TIF district might be created there to improve businesses
without redevelopment. Mr. Hunt stated a special service district might be implemented, but it
would be asking business owners to create a self-imposed tax on themselves for beautification of
the area. Mr. Hunt stated the city needs to be respectful of the business owners' needs. If there is
no redevelopment going on there, it would be difficult to create a TIF
Councilmember Miller asked if the city would be open to doing a matching grant for the area.
Councilmember Sanger said she thinks the plan is fine, but it doesn't go far enough. She noted
that one of the business owners asked for a crosswalk painted on the street to make it easier and
safer for students to cross over to businesses. Councilmember Sanger added that some of the
buildings could also use paint on their trim and asked if it would be possible to do an incentive
program, giving $2,000 to owners to make some improvements to their buildings.
Councilmember Mavity added she supports this effort, noting she'd like to see the area made a
little edgier with benches, stone, and places to play chess, or other things to energize it in a
different way. She prefers doing things that might be cemented into the area, to create an old
time feel. She added that with light rail in the area, possibly some glow in the dark trails would
work in getting people there.
Mr. Harmening stated Walker -Lake Street draws a lot of people for events, and doing work on it
would help the businesses there, also.
Councilmember Lindberg agreed that this area should be supported. He noted the importance of
investing to help these businesses succeed and also to freshen up the area in order to keep it
vibrant and lively, yet in a way that maintains the existing character and considers how neighbors
use the area. He added this is a perfect way to engage residents, adding that doing similar things
in the Texa-Tonka area would also be smart and encouraging. He is not speaking of massive
redevelopment there, but encouraging clean-up and enhancements.
Councilmember Hallfin stated he is on board with this project and asked if the city pulled
permits for the fires on the street during the recent event. Ms. Grove answered yes.
Study Session Minutes -11- October 24, 2016
Councilmember Brausen stated he agrees with this work and location, and the project should be
considered for a future study session.
Mayor Spano stated he is supportive of this project, adding that the city will need to be sure the
business owners are on board with it, noting it cannot just be the council's idea. He trusts this
will be done through the process, noting there are also residents who live above the business
units, and their wishes will need to be considered as well. Staff agreed on this point, and noted
they have been speaking with the owners of buildings with residential units.
Councilmember Sanger added she would like to make sure staff is consulting with the historical
society throughout this project. Staff indicated they have been doing this.
5. Annual TIF District Management Report
Mr. Simon and Mr. Hunt presented the annual report, along with Stacie Kvilvang from Ehlers.
Ms. Kvilvang discussed the Management Review and Analysis Tax Increment Financing
Districts report at a high level. The purpose of the report is to review the status, financial
condition, debt management, and future value of the city's Tax Increment Financing Districts.
The report also describes the revenues generated from each TIF district and presents
recommendations. Additionally, portions of the report are used by staff throughout the year to
provide a quick reference guide when making recommendations to the council or EDA.
Ms. Kvilvang presented the 17 TIF districts and explained them to the council. She noted that St.
Louis Park has a AAA rating and is pointed to as an example by other communities as a place
where great development occurs, making it a sustainable community through tax increment. She
noted that the city is currently at an 814% increase in market value over the original market
value.
Mr. Harmening added that St. Louis Park seems to be very aggressive in their redevelopment,
which allows for an increase to the tax base, and the community is better for it.
Ms. Kvilvang noted 69% of the obligations are within two districts, the West End and Excelsior
and Grand. She stated pooling is recommended in order to support other districts within the city
that want to do development projects. Additional recommendations include using TIF in districts
with on-going cash balances; returning the fund balance in Victoria Ponds to the county for
redistribution to the city, county and school district; and making use of the five-year and six-year
rules in order to avoid lost opportunities for new projects within the district boundaries. Along
with these items, further discussion should be conducted to determine timing, use and potential
increments available for pooling for the interfund loan for Elmwood.
Additionally, Ms. Kvilvang explained that excess increment is a new law that impacts the ability
to use increment above any outstanding budgeted or actual obligations, and calculations are
required each year. She added that based on 2015 TIF reports, no districts show an excess
increment issue; however, total budgets should continue to be monitored carefully to avoid
excess increment. Ms. Kvilvang noted that the city's TIF districts are in good financial health.
Councilmember Sanger stated this is a good story for the city and should be communicated to all
residents, as the public has no idea of how well this is working in St. Louis Park.
Study Session Minutes -12- October 24, 2016
Councilmember Lindberg asked if council needs to be concerned about numbers sliding up as the
City continues to add districts. Ms. Kvilvang stated there is no need for concern as St. Louis
Park's use of TIF has been very strategic. She added that the success of big investments like
Excelsior and Grand and the West End have paid off.
Councilmember Mavity asked if TIF could be further reviewed at the council's upcoming retreat.
Mr. Hunt noted PLACE will be returning to discuss the TIF in more detail with council.
Councilmember Brausen thanked Mr. Kvilvang and Ehlers for all their work on this.
Communications/Meeting Check -In (Verbal)
Mr. Harmening updated the City Council on the retreat, noting he had sent a summary of
discussion ideas to the council for review. He noted there were some themes that emerged, and a
sub -committee of the council will be established to prepare for the retreat and components of the
meeting.. Councilmembers Sanger, Miller, and Brausen volunteered to be this sub -committee.
Additionally, it was noted that Mark Johnson's mother passed away, and a memorial service will
be held.
Mr. Harmening added that he is wrapping up the process now on the police chief recruitment,
and interviews have been completed. He asked for input from the commissions and all block
captains, noting this was a very helpful way to gain information.
Councilmember Sanger asked if the city had been asked for police assistance for the protests in
North Dakota at the Dakota Access pipeline. Mr. Harmening stated no, but he would check on
this.
The meeting was adjourned at 9:45 p.m.
Written Reports provided and documented for recording purposes only:
6. EDA Redevelopment Contract Status Report
7. September 2016 Monthly Financial Report
8. Third Quarter Investment Report (July — September 2016)
9. Update: Future Housing Discussion Topics
10. Task Force Process for Girls' Fastpitcb Softball Field Improvements
11. Metropolitan Airport commission (MAC) Response to City Council Questions
12. Update on Grant Applications Related(to\the PLACE Redevelopment
�111_K k_� I, - IIAAA-11 116-
Meliss k Kennedy, City Clerk