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HomeMy WebLinkAbout2017/03/27 - ADMIN - Minutes - City Council - Study SessionfWSt• Louis Park MINNESOTA meeting convened at 6:30 p.m. OFFICIAL MINUTES CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA MARCH 27, 2017 Councilmembers present: Mayor Pro Tem Tim Brausen, Gregg Lindberg, Anne Mavity, Thom Miller, and Susan Sanger. Excused Absence: Mayor Jake Spano, Steve Hallfin Staff present: Deputy City Manager/Human Resources Director (Ms. Deno), Director of Engineering (Ms. Heiser), Housing Supervisor (Ms. Schnitker), Director of Community Development (Mr. Locke), Housing Programs Coordinator (Ms. Olson), Economic Development Coordinator (Mr. Hunt), Planning and Zoning Supervisor (Mr. Walther), Sr. Engineering Project Manager (Mr. Sullivan), Environment and Sustainability Coordinator (Ms. Pine), and Recording Secretary (Ms. Pappas). Guests: ESC Members Ryan Griffin, Terry Gips, Judy Voigt, Nancy Rose; Tim Thompson, Attorney for the Housing Justice Project; James Lenhoff, of Ehlers; Dean Dovolis; and, Mr. Marguelies, Elmwood Architect and Developer. 1. Future Study Session Agenda Planning — April 2017 Ms. Deno presented the proposed Study Session agenda for April, 2017. Councilmember Miller asked that the council review the Nest concept with St. Louis Park High School students before they graduate in May. Councilmember Sanger stated both the historical society and the school district are looking for space near the high school. Additionally, Youth Frontiers is looking for space, and the owner of the Walker building — the oldest building in St. Louis Park — may be willing to discuss selling the building to one of these groups. Councilmember Sanger added in light of this, there may be a larger discussion to explore at the next study session. Councilmember Mavity noted the agenda for the April 3 council meeting looks and feels like it might be too much. She asked staff to consider changing the agenda. 2. Living Street Policy Ms. Heiser presented the Living Streets Policy and noted that since April, 2016, staff from Operations and Recreation, Community Development, and Administration have been working with the Environmental and Sustainability Commission's (ESC) Transportation Workgroup on developing this policy. She added the goals of the policy are: • Invest in neighborhood livability • Promote travel by walking or bicycling • Enhance the safety and security of streets • Improve the quality and reduce the quantity of stormwater runoff • Support the urban forest • Improve the aesthetics of streets 0 Reduce life cycle costs Study Session Minutes -2- March 27, 2017 Ms. Heiser explained that the Living Streets Policy will formalize practices used to inform decision-making for transportation projects and define what will be looked at when developing transportation projects for construction. She noted that it is not intended to be prescriptive or a ,,one size fits" all policy. Instead, it identifies principles that staff will apply when developing a project. For each project, specific recommendations will be tailored to the neighborhood and the feedback received during the public process. The draft policy was presented and discussed with the ESC on March 1, 2017. The ESC Transportation Workgroup included comments regarding the draft Living Streets Policy in the packet. Mr. Griffin, Acting Chair of the ESC, stated it has been a pleasure and honor to work with city staff on this policy, adding staff and council have been strong advocates of the commission's work. Mr. Griffin stated the ESC strongly supports the idea of a Living Streets Policy in order to make St. Louis Park more livable and walkable and to reduce the impact on the environment. He added it has been a pleasure participating in this process. Mr. Griffin did note there are a few things missing from the policy. While the commission members are not city planning professionals, they have compared best practices in Living Streets Policies from other communities near St. Louis Park. Mr. Griffin stated the ESC would like to see a stronger vision and stronger wording in the policy. He added that the commission recommends language be inserted into the policy in order to get to the heart of greenhouse gas emissions and how it contributes to climate change. He stated currently gas emissions make up 29% of climate change effects, and there is nothing in the policy on gas emissions. Mr. Griffin stated that the city has adopted a climate resolution and is working on a climate action plan, so he believes that gas emissions should be addressed in the Living Streets Policy, as well. Mr. Griffin added when looking at the Minneapolis Complete Streets policy, it is not as broad as the St. Louis Park policy. He recommended that St. Louis Park rebalance its transportation system. What in the past was built around vehicles needs to be changed to focus on people, as they walk, bike, and transit. He added that the city will need to think about transitioning away from a complete auto -centric environment. Additionally, Mr. Griffin noted that language on plants and trees should be strengthened in the policy. Mt•. Griffin stated these are recommendations, and while the commission members are not experts, they want to present opportunities to improve the policy. He added he does not think the city needs to wait for another visioning process as there is already agreement from the community and the city. Mr. Griffin thanked city staff for including the ESC in this process. Nancy Rose, ESC Member, added this is the essence of what the commission has concluded. She noted she loved Ms. Heiser's presentation and stated that the Edina and Minneapolis policies have stronger language and are more rigorous than the St. Louis Park draft at this time. Councilmember Sanger stated she is fine with everything the ESC proposed and agreed she does not think the policy goes far enough. She added Mr. Griffin and the workgroup have made some really fine suggestions. She continued that she would like to see included in the policy something about installing grass boulevards adjacent to sidewalks on the streets wherever feasible. She noted that narrowing streets to add grass boulevards and adding trees are good goals to work toward. Additionally, she noted that the city ought to be plowing the snow on sidewalks where they are not already plowing to increase walkability and quality of life. Councilmernber Sanger also noted that mass transit is important versus single drivers, and a shuttle bus service in St. Louis Park might be a good concept to look at again. Study Session Minutes -3- March 27, 2017 Councilmember Mavity agreed with Councilmember Sanger, adding that she likes the direction of the staff report and that the work of the ESC is high quality, helpful information. She added this needs to be looked at through the lens of "people before cars" and suggested staff look at including the Minneapolis Complete Streets policy language, which would strengthen the already good framework of the policy. She added pedestrians should always be prioritized over cars, while ensuring safety, and the language on this topic needs to be stronger than the current language. Councilmember Lindberg stated he agreed the draft policy resonates with council priorities. He also appreciates the work that the ESC has done. He noted, however, he has a different view. In relation to what he is hearing from Ward 3 residents, he would not want stronger language in the policy. He added he wanted to make sure there is balance in the policy in order to ensure we do not lose sight of situational concerns that come up on projects. Councilmember Lindberg also noted residents may not agree with the implementation of a very aggressive policy, citing some of the comments he has received regarding the impact of the Texas Avenue project. He added that the approach needs to be tempered, and the council must not lose sight of practical application and citizen feedback. Councilmember Sanger asked Ms. Heiser to explain the timeline for implementation. Councilmember Lindberg asked about the public process. Ms. Heiser stated that staff has already been implementing and refining the principles of the Living Streets Policy as a part of the 2017 project design and public process. She added that during the public process, staff consistently hears concerns from residents about not being asked for their input on the vision that informed the policies and projects being implemented. For this reason, staff was very intentional to reference the 2007 vision when developing this administrative policy. By doing this, staff can point to a robust vetting process with the community. She added that the Vision 3.0 process is currently underway, and from that feedback, the council will make recommendations for an updated city vision. She added that it is staffs recommendation to update the vision section of the policy once the updated vision is established. Councilmember Miller stated he is fully supportive of the Living Streets Policy. He added he agrees with what has been said, asking how this can also be looked at through the race equity lens. Councilmember Miller stated not all streets are living streets, especially in underprivileged areas. He asked that staff and council analyze areas where residents of color live and make these streets a higher priority. He challenged everyone to look harder in these areas. Councilmember Mavity agreed. Mayor Pro Tem Brausen thanked all for the work done on this policy and stated he agreed with the ESC points, especially the gas emissions. He strongly supports the native and low maintenance vegetation, vision, dark skies, and self -driving vehicles. He would like to see St. Louis Park advance a Green Cities level. He stated the city needs to address these issues, adding he is in favor of making it more aspirational, with lofty goals and malting streets environmentally productive for our residents. Councilmember Lindberg supports the policy, but stated we do need to ask ourselves how the costs of Living Streets will affect our budget. He asked for more information regarding what the financial obligations and impacts are. Study Session Minutes -4- March 27, 2017 Mayor Pro Tem Brausen added if a cost benefit analysis is done, staff could also look at carbon analysis over time. Councilmember Mavity added it will be the responsibility of staff to figure out how we get there, while prioritizing pedestrians more than anything else. Councilmember Sanger stated to Councilmember Lindberg, it sounds like he is making the assumption that Living Streets will cost the city more in terms of dollars; however, she added it may cost less, adding that staff can provide information on cost differentials. Ms. Heiser thanked the council for their feedback, adding staff will review the written comments from the ESC and then come back to the council with a revised draft policy at a future study session. 3. Review of the Inclusionary Housing Policy and Advance Notice of Sale Policy Update Ms. Schnitker provided a report to review the existing Inclusionary Housing Policy and the impact it has had on affordable housing development in St. Louis Park, asking if council would like to modify the policy. She also provided an update on work in progress related to an Advance Notice of Sale Policy. Ms. Schnitker explained that in June of 2015, the council adopted an Inclusionary Housing Policy that requires the inclusion of affordable housing units for lower income households in new market rate multi -unit residential developments receiving financial assistance from the city. The primary goal of the policy is to increase the overall supply of affordable housing and to promote economic and social integration. The number of affordable dwelling units within a residential project subject to the policy is: Rental projects — at least 10% of the units shall be affordable for households at 60% Area Median Income, or at least 8% of the units shall be at affordable for households at 50% Area Median Income. Owners Ap projects — at least 10% of units shall be affordable for households at 80% Area Median Income. Ms. Schnitker added the council had stated they were interested in exploring the possibility of increasing the percentage of affordable housing units required per the policy. She added staff is looking at adding an amendment to the policy about not discriminating against persons with a housing voucher. Ms. Schnitker recommended that the council consider increasing the required percentage of affordable units per the policy to 15% at 60% AMI and 10% at 50% AMI. Councilmember Miller stated he has concerns about owner occupied units and would like to review this further at a later date, adding the easiest way to develop wealth is to own a home. Councilmember Sanger noted her issue on the policy is the TIF provided to developers for the affordable policy. She added it is not legal to use TIF to subsidize affordable housing; however, developers need TIF in order to provide affordable units. She added she is concerned the city is Study Session Minutes -5- March 27, 2017 paying for the inclusion of affordable housing, and she does not think it should be used as a financing mechanism. She stated the city is subsidizing affordable units, and this is not acceptable. Councilmember Sanger added the city needs to do a better job when raising TIF for these projects and not assume we are getting affordable units as a freebee for providing TIF. Councilmember Lindberg stated he would like the city attorney's perspective on this issue. Councilmember Mavity asked Mr. Thompson to comment. Mr. Thompson stated he agrees that developers have put affordable units into projects, which are not always that affordable. Mr. Thompson added he is watching what is happening in Minneapolis now related to affordable housing, stating what St. Louis Park is doing with the policy is the right step. Councilmember Sanger stated she is objecting to the inflation of the TIF amount Councilmember Miller noted St. Louis Park is not going far enough and asked if the city is in the middle or bottom when compared to similar city policies. Ms. Schnitker stated there are not many inclusionary policies in the metro, adding that Edina's is at 20%. She added that of 18 policies in the various metro cities outside of Minnesota, 5 are at 10%, 2 are at 12% and 6 are at 15% and 5 are at 20% or greater. Councilmember Miller stated St. Louis Park is just scratching the surface on affordable housing, adding he would like to increase the percentages. He stated he also disagrees with Councilmember Sanger on TIF. If it takes TIF to have affordable housing, then he is all for it, as long as it is legal. Councilmember Miller added the city has some great parcels that will be ready for redevelopment soon, and he would like to see the policy become really beefy to get as much bang for the buck as possible. Councilmember Lindberg stated the policy is good but can be more aggressive, and he agrees with the non-discrimination language. Councilmember Sanger added she does not agree with raising the percentage requirements more than what Ms. Schnitker is proposing. St. Louis Park was one of the very few communities in the metro area with 100% rating on affordable housing from Metropolitan Council. She stated affordable housing is a problem statewide but added it is not up to St. Louis Park to solve it for everyone else. Others must do their part as well. She noted this is her concern. Mayor Pro "Tem Brausen stated he supports the non-discrimination policy and would like to see 18-20% of 60% Area Median Income in the policy. He added the city will need to make a commitment to work on affordable housing. It was the consensus of the council to have staff prepare the policy for 15% at 60% of AMI and 10% at 50% AMI, and at the meeting when this is discussed, the council may then propose to raise it to 18-20%. However, Mayor Pro Tem Brausen added there are two councilmembers absent, who will need to weigh in on this, as well. Councilmember Sanger asked Ms. Schnitker if there is a policy that says landlords cannot advertise that they don't accept Section 8 or if the policy will say that if a developer is provided TIF funding, they have to accept Section 8, and how this could be enforced. Ms. Schnitker stated if a person thinks they are being discriminated against in housing, they can file a report with Housing and Urban Development. City staff would not typically get involved in a fair housing Study Session Minutes -6- March 27, 2017 complaint between a landlord and tenant. Councilmember Sanger asked what if it was made part of the city's TIF policy. Ms. Schnitker stated the city would try to assist if a TIF funded development denied a tenant because they have Section 8. Ms. Schnitker noted there is a work group researching the feasibility of implementing an Advance Notice of Sale Policy, which would require an owner to give advance notice if they were selling a multi -family building or property. She added the advance notice would give the city an opportunity to send that information to preservation buyers and also to check if it is a good use for affordable housing and for the preservation of NOAH property. Ms. Schnitker stated the group is looking at a 90 -day timeframe for this notification. However, they don't want the timeframe to be so lengthy that it encumbers the owner from selling the building. Councilmember Sanger stated it seems there is an assumption built into these policies that whoever is the purchaser will not continue the NOAH status of the building. Likewise, if the owner has to give a 90 -day notice, she asked if we know how many purchasers walk away if they are in a hurry or looking for a lower price. Councilmember Sanger also asked how this policy would help Meadowbrook. Ms. Schnitker stated it would not have helped with Meadowbrook. Mr. Thompson stated there is evidence that much of this type of inventory is at risk, with this value add business model on the rise. He added the 90 -day notice also means the buyer and seller cannot enter into a purchase agreement for 90 days, making it a factor in negotiations which will affect price. He added that many sellers will go to non-profit purchasers first to avoid all of this. Mayor Pro Tem Brausen stated this should be applied to all buildings. He agrees with the 90 -day timeframe and is in favor of enforcement. He also stated he would like to ask the city attorney about a requirement for 60 -day notice on all leases in St. Louis Park and if this can be done on rent increases. Councilmember Sanger added she would like to see how this 90 -day timeframe works in other communities. She stated it does not seem fully formed as an idea yet and won't achieve the practical results some people are hoping for, while being an intrusion on property owners. She added there should also be a public process involved as she would like to hear from some St. Louis Park landlords. Councilmember Mavity stated she supports this but wants to be certain the city has a clear strategy and knows what to do in order to be impactful. She added that affordable housing is what stabilizes families and schools and communities. More resources are needed to create more affordable housing. Councilmember Mavity noted we are at a tipping point to get other cities on board, while more regional tools are needed to move this forward. 4. Connect the Park! CIP Update Mr. Sullivan presented the staff report, which included updates regarding upcoming projects for 2018 implementation, proposed amendments, and other related initiatives. He noted that the city's 10 -year Capital Improvement Plan (CTP) includes adding additional sidewalks, trails, and bikeways throughout the community. Study Session Minutes -7- March 27, 2017 Councilmember Sanger stated she is fine with the projects noted in the report but had a question about the pedestrian bridge over Highway 100 near Beth El Synagogue. She stated when the bridge is modified, there will be a major ADA issue, as the bridge is not in compliance. She suggested to leave the pedestrian bridge as is and add lights, noting they will need to save that bridge. She added that with the proposed bikeway project west of Highway 100 on Minnetonka Boulevard, she has concerns that the county will take on this project. Mr. Sullivan stated the county has this on tier one of their bike routes, adding there is a possibility the majority of the funding may come from the county. Councilmember Sanger stated the bikeway on Louisiana Avenue is also a major problem, and the bike trail there needs to be separated and protected. She added if we cannot do that, we do not want to have a bikeway there. Councilmember Lindberg agreed with Councilmember Sanger on the Minnetonka Boulevard issue and also the timing impact. He added that residents who will be impacted by the 28th Street project will speak up, so it is critical that the project is well -coordinated. Ms. Heiser stated staff will do a feasibility report first as staff knows it will be challenging and might require rerouting. She added we want to make it safe, so it will start with an analysis. She added that the bridge by Methodist Hospital will also need to be rebuilt in 2018. Councilmember Mavity asked if the France Avenue portion, between 39th and 401h Street, was new. Mr. Sullivan stated that part is an amendment because of the change of ownership on that parcel on the west side. He explained that St. Louis Park would be responsible for their portion and Edina for their portion. The cities would then be reimbursed by Hennepin County. He stated that a sidewalk will be added on the west side of France Avenue. Councilmember Mavity asked staff to keep the council updated on any obstacles that face the city before it gets too late in the process. Mr. Sullivan also noted that Monterey Drive will have a user activated crossing added this summer. Mayor Pro Tem Brausen asked with the Bridgewater project now uncertain, will that affect the sidewalk there. Ms. Heiser stated staff is looking at developing a better buffer there. At this point, if Bridgewater does not move ahead, the city will purchase the right-of-way and finish off half of the block. Councilmember Sanger asked if a pedestrian light will be added near Benilde. Mr. Sullivan stated yes. Councilmember Lindberg asked for an update on the Virginia crossing and the north side of Cedar Lake Trail. Mr. Sullivan stated it is slated for bike lanes on 28th, and Three Rivers Park District has agreed to be part of the long-term project in conjunction with whatever the city does there. Councilmember Miller challenged staff to develop a report on the kind of sidewalk segments the city will put in for our economically -challenged areas. He stated these folks depend more on sidewalks to get to bus routes and have fewer vehicles. Councilmember Miller stated he believes it is the city's responsibility to make sure there is equitability and that we identify these areas Study Session Minutes -8- March 27, 2017 first and take care of them. Ms. Deno noted this fits right in with race equity and is good to bring Up. Mayor Pro Tem Brausen stated he is fine with all the proposals and additions in Ward 4, while acknowledging that Louisiana Avenue will be a challenge related to bike lanes. He asked if a feasibility study will be done there, as well. Mr. Sullivan stated yes, it has been completed. Councilmember Mavity added if LRT does not develop, the city will want to look at bike trail crossings in the Beltline area also. 5. 36th Street LLC's Application for TIF Assistance — The Elmwood Apartments Mr. Hunt stated staff would like to review and receive feedback on the 36"' Street LLC's proposed mixed-use redevelopment project located at 5605 361h Street W. called The Elmwood. Additionally, staff is asking if the EDA supports entering into a redevelopment contract to reimburse the developer for qualified costs up to $950,000 in tax increment generated by the project over a maximum term of six years to assist the project's financial feasibility. Councilmembers Mavity and Lindberg expressed support for the TIF request. Councilmember Sanger asked the developer if there was no affordable housing in the project, if there would still be a request for TIE Mr. Margulies stated the developer would still make this request for TIF because the return on investment is simply not high enough to attract capital to the project, and the site development costs are too high. Councilmember Sanger asked if the development went back to the five -story proposal if that would change the TIF request. Mr. Margulies stated he was not sure there would be enough funding to cover the project at five stories either. Councilmember Miller stated he was not in support of the project. Councilmember Sanger noted she supports the project but is not sure she supports the TIF request. Mr. Locke stated that there is a limited list of things that are eligible to be paid for with TIF but having eligible project expenses in and of itself does not qualify a project for assistance. The test for whether a project may receive TIF assistance is its financial need for the assistance. The true test for whether any project can be provided TIF assistance is the "but for" test. The "but for" test requires the City/EDA to make a finding that "but for" the provision of TIF assistance this project would not be feasible. In addition, projects must meet the City's other applicable policies and codes, some of which are unique to St. Louis Park, to be eligible for TIF assistance. To be eligible for assistance projects must meet, among other things, the Green Building Policy, code requirements such as DORA and the Inclusionary Housing Policy. The Elmwood project as proposed meets the "but for" test, includes TIF eligible expenses such as soil corrections, asbestos removal, under -ground parking needs; and, meets the City's policies and codes. Elimination or changes to any of these policies or codes could have an impact on project feasibility, but attempting to isolate the impacts of changing any one policy is challenging because changing one requirement essentially results in a different project with different numbers and the need for a new feasibility/but for test analysis. He explained the only way this project will happen is with TIF assistance. Study Session Minutes -9- March 27, 2017 Mayor Pro Tern Brausen stated the TIF request is under $1 million, and the developer said in advance that they would require TIF. He added the developer increased the affordable units to 20%, which is above the city's requirements, so he is in support of the TIF request. Communications/Meeting Check -In (Verbal) The council discussed several of the written reports noting the Water Treatment Plant #4 project has been extended by six weeks. Mayor Pro Tem Brausen asked for a report of costs for buying water from other communities. Ms. Deno stated Mr. Harmening sent a detailed email to the council on this issue. Councilmember Sanger thanked the Fire Chief for the EMS report and the right sizing included therein. Mayor Pro Tem Brausen noted he would like staff to review how we manage the consent agenda during council meetings. He would like to have a comment period and also present the consent agenda on the broadcast, and list the items out. He stated this increases transparency, and he would like to see the city provide this detail to residents. The meeting adjourned at 9:30 p.m. Written Reports provided and documented for recording purposes only: 6. February 2017 Monthly Financial Report 7. Proposed Terms of Property Purchase Agreement with Hennepin County HRA 8. Proposed TIF Note Assignment — E2 Purchase and Redevelopment contract 9. Update on EMS Initiative 10. Water Treatment Plant #4 Project Updates 11. 2016 Annual Housing Programs Activity Report 12. Proposed Development 9808 and 9920 Wayzata Blvd. (former Santorini's site) Meli a Kenned#�erk Tim Brausen, Ma r Pro Tem