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HomeMy WebLinkAbout2017/12/11 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA DECEMBER 11, 2017 5:30 p.m. CLOSED EXECUTIVE SESSION – Community Room Discussion Items 1. 5:30 p.m. 2017 City Manager Performance Evaluation 6:30 p.m. STUDY SESSION – Community Room Discussion Items 1. 6:30 p.m. Future Study Session Agenda Planning – January 8, 2018 2. 6:35 p.m. Westwood Hills Nature Center Project – Schematic Design 3. 7:35 p.m. Via (PLACE) Project Update 4. 8:05 p.m. Walker Building and Historical Society Space Options – Continued Discussion 8:50 p.m. Communications/Updates (Verbal) 8:55 p.m. Adjourn Written Reports 5. 2040 Comprehensive Plan Update 6. City of St. Louis Park/ City of Hopkins Municipal Boundary Adjustment - Blake Road 7. Special Assessment for Water and Sewer Availability Charges 8. 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the Administration Department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Meeting: City Council Closed Executive Session Meeting Date: December 11, 2017 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: 2017 City Manager Performance Evaluation RECOMMENDED ACTION: Consultant Rick Speckmann will facilitate a discussion with the City Manager and Council regarding feedback collected from the 360 degree performance evaluation instrument. Council and City Manager Tom Harmening will review the information and set general direction for 2018. POLICY CONSIDERATION: Not applicable. BACKGROUND: The City Council and City Manager will discuss the City Manager’s performance evaluation in a Closed Executive Session. The results of the 360 degree evaluation will be sent to Council under separate cover. Once completed, final documents will be presented for formal approval at the next regular Council meeting. In accordance with Minnesota open meeting law, this meeting will be audio taped. The law states: “All closed meetings, except those as permitted by the attorney-client privilege, must be electronically recorded at the expense of the public body. Unless otherwise provided by law, the recordings must be preserved for at least three years after the date of the meeting.” FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: None Prepared by: Ali Timpone, HR Manager Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Meeting: Study Session Meeting Date: December 11, 2017 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: Future Study Session Agenda Planning - January 8, 2018 RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for the Regular Study Session on January 8, 2018. POLICY CONSIDERATION: Does the Council agree with the agenda as proposed? SUMMARY: This report summarizes the proposed agenda for the Regular Study Session on January 8, 2018. Also attached to this report is the Study Session Prioritizaton & Tentative Discussion Timeline. FINANCIAL OR BUDGET CONSIDERATION: Not applicable. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Tentative Agenda – January 8, 2018 Study Session Prioritization & Projected Discussion Timeline Prepared by: Debbie Fischer, Administrative Services Office Assistant Approved by: Tom Harmening, City Manager Study Session Meeting of December 11, 2017 (Item No. 1) Page 2 Title: Future Study Session Agenda Planning – January 8, 2018 JANUARY 8, 2018 6:30 p.m. – Study Session – Community Room Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2.Bridgewater Proposal – Community Development (40 minutes) Introduce preliminary redevelopment proposal for property at the NE quadrant of Excelsior Boulevard & Monterey Drive owned by Bridgewater Bank. 3. SLP Policing Model Follow-up Discussion (cont.) PD/Admin (45 minutes) 4. Council Workshop Check-In – Administrative Services (30 minutes) Discuss the proposed agenda for the City Council workshop scheduled for January 18 & 19, 2018. 5.Review Draft of 2018 Legislative Priorities – Administrative Services (30 minutes) Feedback is requested on a draft 2018 Legislative Priorities document in preparation for the Council’s meeting on February 5 with our state legislators, Met Council rep. and Hennepin County Commissioner. Communications/Meeting Check-In – Administrative Services (5 minutes) Time for communications between staff and Council will be set aside on every study session agenda for the purposes of information sharing. Written Reports 6.Platia Place TIF Request End of Meeting: 9:05 p.m. Study Session Meeting of December 11, 2017 (Item No. 1) Page 3 Title: Future Study Session Agenda Planning – January 8, 2018 Study Session Prioritization & Projected Discussion Timeline Priority Discussion Topic Comments Date Scheduled 5 SLP Policing Model/Critical Incident Planning Session 1 of 4 (held on 8/14/17) Completed/Ongoing 5 SLP Policing Model/Critical Incident Planning Session 2 of 4 (held on 9/25/17) Completed/Ongoing 5 SLP Policing Model/Critical Incident Planning Session 3 of 4 (held on 10/16/17) Completed/Ongoing 5 SLP Policing Model/Critical Incident Planning Session 4 of 4 (held on 11/27/17) Completed/Ongoing 4 Preserving the Walker Building Combined w/Walker Lake Branding Discussion (held on 8/28/17 & 11/20/17) Ongoing; next disc December 11, 2017 4 Race Equity Communication to HRC on Outreach & Next Steps Most recently discussed on 9/11/17 Ongoing 4 Race Equity/Inclusion Courageous Conversations Most recently discussed on 9/11/17 Ongoing 4 Affordable Housing Preservation Policies/Ordinance Discussed 9/25/17; Work Group met and meeting again in December. Ongoing 4 Flavored Tobacco Ordinance Second reading approved 12/4/17 Complete 4 Climate Action Plan Consultant updating draft. Review by E&S Commission & staff before Council 1st Qtr 2018 3 Revitalization of Walker/Lake Area Part of Preserving Walker Building report (held on 8/28/17) (report also provided 9/25) Ongoing 3 Utilization of DBE Vendors Discussed on 9/11/17 Ongoing 3 Ranked Choice Voting Sent to Charter Commission on 10/2/17; Second meeting held 12/6/17 Ongoing 3 Policy for Funding Non-Profits Part of 2018 Budget discussion on 10/9/17 Ongoing 3 Field Imprvmts/Girls Fastpitch Softball Design consultant hired Const. starts 2018 3 Historical Society Space Part of Walker Bldg discussions on 8/28/17 & 11/20/17 and 12/11/17 Ongoing 3 The Nest Postponed to 2018 per their request. January 2018 3 Living Streets Policy After Vision 3.0 work is completed 1st Qtr 2018 3 Develop a Youth Advisory Commission 1st Qtr 2018 2 Bird Friendly Glass 2 Dark Skies Ordinance (Light Pollution) 2 Community Center Project ? Overview of Crime Free Ordinance Priority not yet determined. ? ? SEED’s Community Green House / Resiliant Cities Initiative Priority not yet determined ? TH 169 Mobility Study Direction provided on 9/11/17 3 Property Tax Relief for Seniors Part of 2018 Budget item (Councilmember Brausen: "No further study needed.") October 9, 2017 2 Sidewalk Snow Removal Part of 2018 Budget item (Majority of council determined no need to discuss further at this time.) October 9, 2017 2 Active Space Matching Grants w/ Multi- Family Communities Part of 2018 Budget item (Will be included in 2018 Budget Proposal.) October 9, 2017 Priority Key 5 = High priority/discuss ASAP 4 = Discuss sooner than later 3 = Discuss when time allows 2 = Low priority/no rush 1 = No need to discuss Meeting: Study Session Meeting Date: December 11, 2017 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: Westwood Hills Nature Center Project – Schematic Design RECOMMENDED ACTION: Staff and consultants will present the Schematic Design for the Westwood Hills Nature Center project. Based on the outcome of the discussion the Council may be asked to approve the Schematic Design at its December 18 meeting POLICY CONSIDERATION: Does the schematic design meet the Council’s expectations? Does Council want to continue to work towards a Zero Energy building design knowing that the project cost will increase above original estimates? SUMMARY: On May 23, 2016, Council approved the master plan for Westwood Hills Nature Center (WHNC). On June 19, 2017 Council authorized staff to enter into an agreement with Hammel, Green and Abrahamson, Inc. (HGA) to design a new interpretive center. RJM Construction will be providing construction management services for this project. The HGA design team has been using the Master Plan as a guide to create a schematic design. Sustainability strategies and energy analysis have been developed and sustainability rating systems have been reviewed. Based on Council input, the design team is working towards a “Zero Energy” certified building, which means one hundred percent of the building’s energy needs on a net annual basis are supplied by on-site renewable energy https://www.living-future.org/net-zero/certification/. Generally, zero energy is accomplished through maximizing passive climatic opportunities, choosing efficient mechanical systems, and continuing to fine tune the building’s operation to reduce energy loads dramatically. Offsite energy may need to be used during some years as elements that are beyond our control (weather) play a huge role in meeting our sustainability goals. FINANCIAL OR BUDGET CONSIDERATION: At the time the Master Plan was presented to the Council, the initial estimated budget was $12 million, which assumed a building that was energy efficient and met programmatic needs. Based on Council input it became clear that something more than just an energy efficient building was expected, which resulted in the goal of working towards creating a Zero Energy certified building. It’s been determined through the design process that meeting a zero energy goal will increase the cost of the building. At this point in the schematic design, the cost estimate for a building that meets the program needs and works toward zero energy is $13.5 million. Of this, the estimated cost of the zero energy strategies, as currently being considered, total about $1,850,000. VISION CONSIDERATION: St. Louis Park is committed to being a leader in environmental stewardship. We will increase environmental consciousness and responsibility in all areas of city business. SUPPORTING DOCUMENTS: Discussion Site Plan Landscape Plan Prepared by: Jason T. West, Recreation Superintendent Cynthia S. Walsh, Operations and Recreation Director Approved by: Tom Harmening, City Manager Study Session Meeting of December 11, 2017 (Item No. 2) Page 2 Title: Westwood Hills Nature Center Project – Schematic Design DISCUSSION BACKGROUND: On May 23, 2016 Council approved the master plan for Westwood Hills Nature Center (WHNC). The poor conditions of this facility along with the success of the programs we offer at this site, with limited program space, were the impetus behind a master planning process. When it rains, water seeps through the walls causing puddles to form on the floor. The heating system is in poor condition and doesn’t function properly. As a part of the Master Plan work, an extensive public process took place which included public meetings, surveys at special events, online surveys, etc. Citizen input played a key role in shaping this plan. There have also been recent events conducted where input was gathered from the community in regards to the master plan and the proposed interpretive center. FINDINGS FROM THE MASTER PLAN: The common themes that emerged from the master plan are as follows: •Moving the building location closer to the parking lot for convenience and accessibility yet keeping it tucked into the trees to keep a more natural setting as much as possible. •Create a gathering space where people can use the indoor space without interfering with the classrooms. •Increasing the size of meeting rooms to allow for accommodating 50 people in each small multi-purpose rooms and allowing them to open up to have capacity for 150 participants for special events and large gathering space. •Increasing the number of parking stalls to accommodate all the users of the building and outside amenities. •Design the interpretive center building to be energy efficient. •Current interpretive center location would be repurposed as an outdoor education/community gathering space. SCHEMATIC DESIGN COMPONENTS: The proposed schematic design addresses the program and space desires of the Master Plan. Included in the attached schematic design are spaces for: four to five mews for raptors, three classrooms that facilitate 50 people and open up into one larger space that can be used for programs or rentals with room for 150, a catering kitchen for use by people renting the classrooms, exhibit and gathering space, a small lounge area for people to sit and observe nature, a conference room for use by staff or small neighborhood/resident gatherings, staff offices and all the back of house space for storage, mechanical, raptor and animal care etc. This schematic design was presented to the Parks and Recreation Advisory Commission at their November 29th meeting. The Commissioners provided great suggestions about pedestrian flow and trail circulation. They were supportive of a design that works towards zero energy hoping that those elements could be used as teaching tools. They recommended that the schematic design be presented to the City Council. WORK IN PROGRESS: Split Rock Studios has been chosen to design the exhibits with the intent to integrate the building, site and exhibit design to support the nature center educational programming. Designing the exhibits appropriately is important as we consider working towards zero energy since they can be one of the largest energy users. Study Session Meeting of December 11, 2017 (Item No. 2) Page 3 Title: Westwood Hills Nature Center Project – Schematic Design Staff has also been working with consultants to complete the following: • Wetland delineation • Site survey • Trees located within survey area • All utilities • The proposed new building site has been staked SUSTAINABILITY GOAL: As a firm, HGA brings a wealth of knowledge in the area of sustainable design. HGA has also brought on consultant Chris Piche’ from Integral Group. Chris brings a broad understanding of high performance building engineering systems to this project. His approach is rooted in the philosophy that environmentally responsible design must constantly evolve to suit the technology available in balance with the project. To that end, the design of this building currently includes sustainable design that integrates HVAC, plumbing, solar, and a number of other elements to achieve Zero Energy status. As noted earlier in this report, original estimates did not assume the integration of the components necessary to achieve a zero energy building. Staff needs direction from Council on how it wishes to balance the cost of doing so with the realities of the current $12 million budget. Zero Energy buildings are highly energy efficient buildings in which the total consumption of energy from all sources is balanced by onsite renewable energy generation on an annual basis. The Zero Energy Building Certification (ZE) is a newly available certification (as of March 2017), and builds on years of leadership towards zero energy building design from both the International Living Future’s Institute (ILFI) and the New Building Institute (NBI). ILFI is the organization behind the Living Building Challenge –which is arguably the most progressive green building certification available for buildings today. The New Building’s Institute has been a third-party auditor and verifier for zero energy buildings since 2009 and is also responsible for establishing an industry-wide definition for Zero Energy buildings, as well as documenting these projects through the Zero Energy Database. ZE buildings are among the most progressive sustainable design projects in the world today. Due to the new and innovative nature of this goal, St. Louis Park has the opportunity to create a project which is among the first (or perhaps be the first) non-residential Zero Energy Project in Minnesota- -leading the way for future sustainable design work in our cold-climate region. NEXT STEPS: If directed by Council, staff would move forward with this project by engaging in the design development phase. Staff will check in with the City Council midway through the design development phase and affirm direction to move to keep proceeding through this next step. 1. December 18, 2017: Schematic Design presented to City Council 2. January 2018: Design Development commences (with Council approval) 3. Early Fall of 2018: Construction Documents are created and bids let 4. 2019: Construction commences 5. 2020: Finished project Site Plan 1 Main Entry Porch 2 Group Entry Porch 3 Bus Drop-Off 5 Paved Parking Lot (69) 4 Service Entry 6 Overflow “Green” Parking 7 Picnic & Play 8 Bridge 9 Patio 10 Classroom Deck 11 Turtle Pond Connection 12 Bird Watching 13 14 15 16 Primary Trail Connections “Threshold” Prairie Forest “Threshold” Landscape Classroom 1 4 3 98 10 11 12 131413 5 5 7 2 16 15 6 Study Session Meeting of December 11, 2017 (Item No. 2) Title: Westwood Hills Nature Center Project – Schematic Design Page 4 LEGENDADMINCIRCULATIONEDUCATIONEXHIBITEXTERIORSUPPORTCLASSROOM ENTRYACCESS0102030 501005MAIN PUBLIC ENTRYSERVICE ENTRYEXHIBIT/GATHERINGSTAFFOFFICEMGRQUIETRENTALMECHCONFERENCE ROOMUNISEX TLTWELCOMEDISPLAY/ ANIMAL WORK RMCATERING STAGINGSTORSTORSTORRAPTOR CAGES/MEWSRAPTORCAREEXHIBIT TERRACECLASSROOM DECKMTLTWTLTMECHELECTMULTIPURPOSE CLASSROOMSABCEXISTING PICNIC SHELTERMAINTUTILITYPROGRAM STORAGELOUNGESTORAGE CUBBIESTR/RCStudy Session Meeting of December 11, 2017 (Item No. 2) Title: Westwood Hills Nature Center Project – Schematic DesignPage 5 Meeting: Study Session Meeting Date: December 11, 2017 Discussion Item: 3 EXECUTIVE SUMMARY TITLE: Via (PLACE) Project Update RECOMMENDED ACTION: Staff desires to discuss with the Council a Second Amendment to the PLACE Purchase and Redevelopment Contract that includes a new closing date and provisions to allow for a contingent alternative financing plan for the affordable housing units within the project’s North Components, should it be necessary. POLICY CONSIDERATION: Do the potential changes to the project still meet the Council’s objectives? SUMMARY: As noted in the December 4, 2017 staff report, PLACE planned to utilize private activity bonds and low income housing tax credits to finance the affordable housing units of its Via mixed-use project, to be constructed on the north and south sides of the future SWLRT Wooddale Station. The First Amendment to the Purchase and Redevelopment Contract requires PLACE to provide evidence of construction financing for the proposed North Components, including its 152 affordable units. PLACE has secured market-rate construction financing for the project; however, due to the pending federal tax bill and the tenuous status of affordable housing bonds, PLACE was unable to confirm permanent financing specifically for the affordable component of the project’s North Components. Because the affordable housing component is a critical element of the Via project, EDA staff and legal counsel notified PLACE that the EDA was unwilling to waive the requirement of proof of financing. As a result, closing on the sale of the North Parcels, scheduled on or before November 30th, was postponed. Staff requested that PLACE prepare an alternative plan that adequately finances the affordable units in the event tax reform renders private activity bonds and low income tax credits non-viable. In response, PLACE prepared an alternative financing model that retains the same number of affordable units (152 for the north site) as previously approved but adjusts the affordability of those units from 152 units at 60% of Area Median Income (AMI) to 22 units at 50% AMI and the remaining 130 at 80% AMI. Staff requested Ehlers to analyze the financial viability and implications of such a revision to the amount of tax increment financing previously approved for the project. Upon review, Ehlers confirmed that the Plan B model is, in fact, financially viable and no adjustment to the amount of TIF assistance provided under the Contract would likely be necessary. The EDA will be asked to consider a Second Amendment to the Purchase and Redevelopment Contract at the Dec 18th EDA meeting. FINANCIAL OR BUDGET CONSIDERATION: No upward adjustment of the current amount of the TIF Note is proposed at the present time. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Discussion; Draft Second Amendment Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, EDA Executive Director, City Manager Study Session Meeting of December 11, 2017 (Item No. 3) Page 2 Title: Via (PLACE) Project Update DISCUSSION The City’s Inclusionary Housing Policy requires 10% of apartment units to be affordable at 50% AMI or 18% at 60% AMI. In its negotiations with the EDA, PLACE agreed to exceed this requirement, given the low income tax credit (LIHTC) and bond financing secured for permanent financing of the project. The current Purchase and Redevelopment Contract, as amended by the First Amendment, allowed for separate closings on the North Parcels and South Parcels, established November 30th as the “End Date” for closing on the North Parcels, and designated 152 of the 218 apartment units in the North Apartments Component as affordable. The Contract currently provides that PLACE will reserve all 152 affordable apartment units of the North Apartments Component for households at or below 60% AMI. The tax reform bill before Congress, however, has jeopardized the resources PLACE needs to achieve that level of affordability when the building opens in 2019. Given this uncertainty, PLACE canceled its current request for issuance of private activity bonds by the city, and opted for a construction loan utilizing conventional financing, hoping to secure permanent financing through tax-exempt bonds and LIHTCs later. However, PLACE was not able to provide EDA staff with evidence that conventional financing alone could adequately finance the 152 affordable apartments units at 60% AMI. Because the affordable housing component is a critical element of the Via project, EDA staff and legal counsel notified PLACE that the EDA was unwilling to waive the requirement of proof of permanent financing if tax reform forces a revision to its original financing plan. As a result, closing on the sale of the North Parcels, scheduled on or before November 30th, was postponed. Staff and legal counsel then met with PLACE to discuss its contingency plan for financing the affordable units in the event private activity bonds and low income tax credits were no longer available or viable. Staff requested that PLACE prepare an alternative plan that adequately finances the affordable units without the use of tax-exempt bonds or LIHTCs. In response, PLACE has worked with its lenders to re-underwrite the construction loan for the North Components using an alternative mix of affordability levels (Plan B) in the event that tax-exempt bonds and LIHTCs (Plan A) are eliminated or effectively devalued by tax reform. This Plan B financing model retains the same total number of affordable units (152) as previously approved but adjusts the affordability of those units from 152 units at 60% AMI to 22 units at 50% AMI and the other 130 at 80% AMI. Study Session Meeting of December 11, 2017 (Item No. 3) Page 3 Title: Via (PLACE) Project Update The Plan A and B unit mix options are summarized as follows: PLACE North Apartments Component: Unit Mix Options (by % of AMI) Plan A (original plan) Plan B (alternate plan) Percent of Area Median Income (AMI) Units % of Total Units % of Total 50% 0 0% 22 10% 60% 152 70% 0 0% 80% 0 0% 130 60% 90% 0 0% 0 0% Market Rate 65 30% 65 30% Total Units 217 100% 217 100% Financing Model for Plan A In order to fulfill the original Plan A financing model and deliver the required 152 apartments at or below 60% AMI at the time of lease-up in early 2019, PLACE intends to utilize its parked bonds and reserved tax credits for permanent financing, provided they survive tax reform and remain marketable. PLACE has parked $27,185,503 in tax-exempt bonds at Anchor Bank to serve as permanent financing for the affordable units in the event tax-exempt bonds survive the federal tax reform bill. PLACE has until May 22, 2018 to tender the parked bonds. PLACE has arranged to have MHFA issue a letter confirming access to the low income tax credits as originally envisioned under Plan A. Financing Model for Plan B Under Plan B, the total number of market rate and affordable units and the remainder of the North Components remain unchanged. The only portion of the financial model that would change is the mix of 152 affordable apartment rents, and the elimination of sources contingent upon the 60% AMI level of affordability; PLACE has removed LIHTC, AHIF, tax rebate, and bonds from the sources. Under Plan B, conventional permanent financing can support 22 (10%) affordable units at 50% AMI (meeting the minimum requirement under city’s Inclusionary Housing Policy), along with another 130 (60%) being workforce apartments at 80% AMI. This substantially exceeds the requirements of the Inclusionary Housing Policy and retains the same total number of affordable units (152) as originally approved under Plan A. Plan B supports conventional permanent financing without any influx of additional equity or other sources. PLACE has assembled conventional construction financing that is agreeable to its lenders in either of the above permanent loan scenarios. Study Session Meeting of December 11, 2017 (Item No. 3) Page 4 Title: Via (PLACE) Project Update TIF Note Implications Staff directed Ehlers to verify that PLACE’s Plan B is financially feasible and to determine the impact, if any, on the amount of tax increment provided under the Purchase and Redevelopment Contract deriving from the North Apartments Component as a result of the change in affordability mix. Upon review of PLACE’s Plan B pro forma (including revised rents, operating expenses, sources, uses, and preliminary financing terms), Ehlers confirmed that Plan B is a financially viable scenario. They verified that the project still has extraordinary costs and the returns analysis continues to show below market returns, which indicates that financial assistance provided through the Contract remains warranted. Ehlers also determined that no adjustment to the amount of TIF assistance provided under the Contract would be necessary however the estimated term of that assistance may decrease. The TIF analysis remains underway to more precisely estimate the term of the TIF assistance under Plan B. Proposed Second Amendment Given that closing on the sale of the North Parcels did not occur by November 30th as required under the First Amendment, a Second Amendment is necessary to establish a new closing date. Due to contractual obligations and the cost implications of further delays, PLACE wishes to close on the North Parcels and begin construction yet this year. However, out of an abundance of caution, it is proposed that the new closing date be scheduled on or before April 30, 2018 – the original closing date for all of the Redevelopment Property, and the current closing date for the South Parcels. Additionally, the amendment will provide for PLACE’s Plan B affordability mix in the event that private activity bonds and LIHTCs are no longer available or viable. Should Plan B prove necessary, PLACE would still covenant to reserve a total of 152 units in the North Apartments Component as affordable apartments, but the mix and level of affordability would change. Specifically, PLACE would reserve 22 of the affordable units for households at or below 50% of AMI, and would reserve the other 130 units for households at or below 80% of AMI. Implementing Plan B would result in a change to the size of the TIF Note and the total development costs used to calculate the look-back. The Second Amendment will address those changes. The minimum market value of the North Apartments Component would increase if PLACE rented the affordable units at the alternative AMI levels. The Second Amendment will provide that the parties will execute and record a modification of the Assessment Agreement for the North Components to increase the minimum market values if the Redeveloper rents the Affordable Apartments at the alternative AMI levels. It is proposed that the Second Amendment will be brought to the EDA for consideration on December 18th. The North Components of the Via project are particularly time sensitive, as PLACE has organized contracts, financial obligations, materials purchases, etc. Therefore, time is of the essence in bringing the proposed amendment forward for consideration. DEED Grant Update Regarding the recently awarded DEED contamination cleanup grant for the PLACE project (which requires project commencement prior to December 31st), staff discussed PLACE’s financing situation with DEED after which DEED agreed to provide a six-month extension. Study Session Meeting of December 11, 2017 (Item No. 3) Page 5 Title: Via (PLACE) Project Update DRAFT SECOND AMENDMENT TO PURCHASE AND REDEVELOPMENT CONTRACT This Second Amendment to Purchase and Redevelopment Contract (the “Amendment”) is dated as of _____________, 2017, by and between the ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic (the “Authority”), and PLACE E-GENERATION ONE LLC, a Delaware limited liability company (the “Redeveloper”). RECITALS A. The Authority and the Redeveloper executed a certain Purchase and Redevelopment Contract, dated as of May 1, 2017, as amended by a First Amendment thereto dated as of November 6, 2017 (as so amended, the “Agreement”), whereunder the Authority agreed to convey certain property described in the Agreement (the “Redevelopment Property”) to the Redeveloper and pledged Available Tax Increment (as defined in the Agreement) to pay or reimburse certain costs incurred by the Redeveloper in connection with the development of certain North Components, consisting of the North Apartments Component, the North Commercial Space Component, the E-Generation Facility Component, and associated parking; and certain South Components, consisting of the South Apartments Component, the South Commercial Space Component, the Hotel Component, and associated parking (all as defined in the Agreement) on the Redevelopment Property (collectively, the “Minimum Improvements”). B. The Agreement provided for closing on conveyance of the North Components of the Redevelopment Property by a date no later than November 30, 2017, and on the South Components by a date no later than April 30, 2018. C. In order to address certain market uncertainties arising from proposed federal tax reform legislation currently under consideration by the United States Senate and House of Representatives (the “Tax Legislation”), the parties have determined to extend the date of closing on conveyance of the North Components and to amend certain other provisions of the Agreement, as set forth herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1. Amendment of Section 1.1. Section 1.1 of the Agreement is amended to add certain definitions as follows: Study Session Meeting of December 11, 2017 (Item No. 3) Page 6 Title: Via (PLACE) Project Update “Alternative Affordable Apartments” has the meaning provided in Section 4.9(b) hereof. “Tax Legislation” means H.R. 1 (the “Tax Cuts and Jobs Act”), introduced in the United States House of Representatives on November 2, 2017. 2. Amendment of Section 3.3(b). Section 3.3(b) of the Agreement is amended as follows: Section 3.3. Conditions of Conveyance. (b) The closing on conveyance of the North Parcels of the Redevelopment Property from the Authority to the Redeveloper (the “North Closing”) shall occur within thirty (30) days of satisfaction or waiver of conditions (1) through (7) specified in Section 3.3(a) hereof, and subject to the continued satisfaction at the North Closing of condition (8), but no later than April 30, 2018 (the “North End Date”); and the closing on conveyance of the South Parcels of the Redevelopment Property from the Authority to the Redeveloper (the “South Closing”) shall occur within thirty (30) days of satisfaction or waiver of conditions (1) through (7) specified in Section 3.3(a) hereof, and subject to the continued satisfaction at the South Closing of condition (8), but no later than April 30, 2018 (the “South End Date”); provided that the North End Date and South End Date shall be subject to extension upon mutual agreement of the parties. 3. Amendment of Section 3.8(b). Section 3.8(b) of the Agreement is amended as follows: (b) Terms. To reimburse the Public Redevelopment Costs incurred by Redeveloper, the Authority shall issue and the Redeveloper shall purchase one or more Notes in the maximum aggregate principal amount of $5,660,000. The Redeveloper may request separate Notes (the “North Note” and “South Note”) to reimburse the Public Redevelopment Costs incurred by Redeveloper in connection with construction of the North Components and South Components. The maximum principal amount of the North Note shall be $3,396,000, and the maximum principal amount of the South Note shall be $2,264,000. The Authority shall issue and deliver the Note or Notes, as applicable, upon the Redeveloper having: (i) delivered to the Authority one or more certificates signed by the Redeveloper’s duly authorized representative, containing the following: (1) a statement that each cost identified in the certificate is a Public Redevelopment Cost as defined in this Agreement and that no part of such cost has been included in any previous certification; (2) evidence that each identified Public Redevelopment Cost has been paid or incurred by or on behalf of the Redeveloper; (3) evidence that Redeveloper has paid all its contractors and subcontractors in full for all work to be reimbursed as a Public Redevelopment Cost; and (4) a statement that no uncured Event of Default by the Redeveloper has occurred and is continuing under the Agreement. The Authority may, if not satisfied that the conditions described herein have been met, return any certificate with a statement of the reasons why it is not acceptable and requesting such further documentation or clarification as the Authority may reasonably require; (ii) submitted and obtained Authority approval of financing in accordance with Section 7.1 hereof; and Study Session Meeting of December 11, 2017 (Item No. 3) Page 7 Title: Via (PLACE) Project Update (iii) delivered to the Authority an investment letter in a form reasonably satisfactory to the Authority. The terms of each Note will be substantially those set forth in the form of the Note attached to the Authorizing Resolution adopted by the Authority on May 1, 2017, and the Note will be subject to all terms of the Authorizing Resolution, which are incorporated herein by reference. 4. Amendment of Section 3.9. Section 3.9 of the Agreement is amended as follows: Section 3.9. TIF Lookback. (a) Generally. The financial assistance to the Redeveloper under this Agreement is based on certain assumptions regarding likely costs and expenses associated with incurring the Public Redevelopment Costs related to the Minimum Improvements including the Affordable Apartments or Alternative Affordable Apartments, as provided in Schedules D and D-1. The Authority and the Redeveloper agree that those assumptions will be reviewed at the times described in this Section, and that the amount of Tax Increment assistance provided under Section 3.8 hereof will be adjusted accordingly. (b) Lookback Calculation. (i) At the time of completion of construction of the Minimum Improvements, if the aggregate total amount of the Public Redevelopment Costs paid or incurred by the Redeveloper is less than the aggregate total amount of Public Redevelopment Costs projected in Schedule D or D-1, the total assistance provided for reimbursement of the Public Redevelopment Costs will be reduced on a dollar-for-dollar basis in the amount of such deficiency (the “Deficiency”) and the principal amount of the Note will be reduced by the amount of the Deficiency. (ii) Projected total development costs to construct the North Apartments Component and the South Apartments Component with the Affordable Apartments and Alternative Affordable Apartments (the “Projected Total Development Costs”) are provided in Schedules E and E-1. Upon completion of construction of the Minimum Improvements, the Redeveloper will provide the Authority with documentation of actual Total Development Costs, based on construction of Affordable Apartments or Alternative Affordable Apartments, as applicable. If actual Total Development Costs, excluding Public Redevelopment Costs, are less than the Projected Total Development Costs, the principal amount of the Note will be reduced by 50% of the excess of the Projected Total Development Costs over the actual Total Development Costs paid or incurred by or on behalf of the Redeveloper (the “Participation Amount”). 5. Amendment of Section 4.9. Section 4.9 of the Agreement is amended as follows: Section 4.9. Inclusionary Housing. (a) The Redeveloper agrees to comply with the City’s Inclusionary Housing Policy, as adopted June 1, 2015. If, on or prior to March 30, 2018, (i) the Tax Legislation is signed into law in a form that preserves the ability of the Redeveloper to access the proceeds of private activity bonds, specifically any bonds issued by the City (the “Bonds”) to refund the City’s Multifamily Housing Revenue Note (PLACE St. Louis Park Multifamily Housing Project), Series 2017 in order to provide permanent financing for the Study Session Meeting of December 11, 2017 (Item No. 3) Page 8 Title: Via (PLACE) Project Update Affordable Apartments; and (ii) in the opinion of the Redeveloper’s bond counsel, a viable market exists for the issuance of the Bonds and investment in low-income housing tax credits, the Redeveloper shall comply with the following: i. The Redeveloper agrees to reserve 200 of the apartment units (66.8%) within the North Apartments Component and South Apartments Component (collectively, the “Affordable Apartments”) for households earning sixty percent (60%) of Area Median Income (“AMI”) for at least twenty-five (25) years following building occupancy. ii. The monthly rental price for Affordable Apartments shall include rent and utility costs and shall be based on sixty percent (60%) of AMI for the metropolitan area that includes the City adjusted for bedroom size and calculated annually by Minnesota Housing in connection with establishing rent limits for the Housing Tax Credit Program. iii. The size and design of the Affordable Apartments shall be consistent and comparable with the market rate units in the Minimum Improvements and is subject to the approval of the City. The Affordable Apartments shall be distributed throughout the North Apartments Component and the South Apartments Component. iv. The Affordable Apartments shall have a number of bedrooms in the approximate proportion as the market rate units. v. The Redeveloper agrees to prepare an affordable housing plan as defined in the City’s Inclusionary Housing Policy (the “Affordable Housing Plan”). The Affordable Housing Plan shall describe how the Redeveloper complies with each of the applicable requirements of the Inclusionary Housing Policy. The Affordable Housing Plan shall be prepared by the Redeveloper and must be approved by the City prior to or in conjunction with delivery of the Certificate of Completion for the North Apartments Component or the South Apartments Component, whichever is earlier. (b) If, on or prior to March 30, 2018, (i) the Tax Legislation is signed into law in a form that eliminates the ability of the Redeveloper to issue its Bonds; or (ii) the Tax Legislation preserves private activity bonds but in the opinion of the Redeveloper’s bond counsel, a viable market no longer exists for the issuance of the Bonds or investment in low-income housing tax credits, the Redeveloper shall comply with the following: i. The Redeveloper agrees to reserve 200 of the apartment units (66.8%) within the North Apartments Component and South Apartments Component (collectively, the “Alternative Affordable Apartments”) as follows: ten percent (10%) of the apartment units shall be reserved for households earning fifty percent (50%) of AMI for at least twenty-five (25) years following building occupancy, and ninety percent (90%) of the apartment units shall be reserved for households earning eighty percent (80%) of AMI for at least twenty-five (25) years following building occupancy. Study Session Meeting of December 11, 2017 (Item No. 3) Page 9 Title: Via (PLACE) Project Update ii. The monthly rental price for Alternative Affordable Apartments shall include rent and utility costs and shall be based on fifty percent (50%) or eighty percent (80%) of AMI, as applicable, for the metropolitan area that includes the City adjusted for bedroom size and calculated annually by Minnesota Housing in connection with establishing rent limits for the Housing Tax Credit Program. iii. The size and design of the Alternative Affordable Apartments shall be consistent and comparable with the market rate units in the Minimum Improvements and is subject to the approval of the City. The Alternative Affordable Apartments shall be distributed throughout the North Apartments Component and the South Apartments Component. iv. The Alternative Affordable Apartments shall have a number of bedrooms in the approximate proportion as the market rate units. The Redeveloper agrees to prepare an affordable housing plan as defined in the City’s Inclusionary Housing Policy (the “Affordable Housing Plan”). The Affordable Housing Plan shall describe how the Redeveloper complies with each of the applicable requirements of the Inclusionary Housing Policy. The Affordable Housing Plan shall be prepared by the Redeveloper and must be approved by the City prior to or in conjunction with delivery of the Certificate of Completion for the North Apartments Component or the South Apartments Component, whichever is earlier. (c) The Redeveloper agrees to design 99 of the units of the North Apartments Component and South Apartments Component as live/work units (“Live/Work Units”), comprised of Live/Work Type I and Live/Work Type II units. Approximately 94 Live/Work Type I units will include a large working space within the dwelling unit, but no physical storefront, with approximately 18 Live/Work Type I Units will be located in the North Apartments Component and approximately 76 Live/Work Type I Units located in the South Apartments Component. There will be approximately five Live/Work Type II Units, which will include a large work space within the dwelling unit and a storefront, with all Live/Work Type II Units located in the South Apartments Component. 6. Amendment of Section 6.3. Section 6.3 of the Agreement is amended to add Section 6.3(c) as follows: (c) If the North Apartments Component and South Apartments Component include the Alternative Affordable Apartments as provided in Section 4.9(b), the parties shall execute and record a modification to the North Components Assessment Agreement (the “Modified Assessment Agreement”), increasing the minimum market value attributable to the North Apartments Component such that as of January 2, 2019, notwithstanding the status of construction by such date, the amount of the minimum market value for the North Apartments Component shall be $19,530,000, and as of January 2, 2020 and each January 2 thereafter, notwithstanding the status of construction by such date, the amount of the minimum market value for the North Apartments Component shall be $39,060,000. In addition, the parties shall determine a modified minimum market value of the South Apartments Component at or prior to the date of the South Closing, and shall execute and record a South Components Assessment Agreement reflecting such modified value at the South Closing. Nothing in any Assessment Agreement shall limit the discretion of the assessor to assign a market value to any Component of the Redevelopment Property in excess of Study Session Meeting of December 11, 2017 (Item No. 3) Page 10 Title: Via (PLACE) Project Update such assessor’s minimum market value; nothing in this Agreement or in any Assessment Agreement shall limit the right of the Redeveloper, or its successors and assigns, to challenge a market value determination that exceeds the established minimum market value for any Component of the Redevelopment Property. All Assessment Agreements shall remain in force for the period specified in the Assessment Agreements. 7. Amendment of Schedules D and E. Schedules D and E of the Agreement, which support the TIF Lookback calculations described in Section 3.9 of the Agreement, are supplemented with the Schedules D-1 and E-1 attached to this Amendment. 8. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and effect. Upon execution of this Amendment, Redeveloper shall reimburse the Authority for all out-of pocket-costs incurred by the Authority in connection with negotiating, drafting and approval of this Amendment. Study Session Meeting of December 11, 2017 (Item No. 3) Page 11 Title: Via (PLACE) Project Update IN WITNESS WHEREOF, the Authority and the Redeveloper have caused this Amendment to be duly executed by their duly authorized representatives. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _____________, 2017, by Anne Mavity and Thomas K Harmening, the President and Executive Director of the St. Louis Park Economic Development Authority, a public body corporate and politic, on behalf of the Authority. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Kennedy & Graven, Chartered (MNI) 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, Minnesota 55402 Study Session Meeting of December 11, 2017 (Item No. 3) Page 12 Title: Via (PLACE) Project Update PLACE E-GENERATION ONE LLC By ___________________________________ Its President STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ______________, 2017, by Chris Velasco, the President of PLACE E-Generation One LLC, a Delaware limited liability company, on behalf of the company. Notary Public Study Session Meeting of December 11, 2017 (Item No. 3) Page 13 Title: Via (PLACE) Project Update SCHEDULE D-1 [to be inserted] Study Session Meeting of December 11, 2017 (Item No. 3) Page 14 Title: Via (PLACE) Project Update SCHEDULE E-1 [to be inserted] Meeting: Study Session Meeting Date: December 11, 2017 Discussion Item: 4 EXECUTIVE SUMMARY TITLE: Walker Building and Historical Society Space Options – Continued Discussion RECOMMENDED ACTION: Staff seeks feedback from the Council/EDA as to whether it wishes to pursue a funding agreement with STEP to enable STEP to purchase the Walker Building if it becomes available. POLICY CONSIDERATION: Does the EDA wish to pursue a funding agreement with STEP? SUMMARY: At the November 20th Study Session, staff presented five potential options for the Council/EDA to consider relative to the Walker Building and/or the Historical Society’s space needs. Interest centered on pursuing the option that entailed providing STEP with the necessary funds to acquire the Walker Building with the understanding that it would lease space to the Historical Society (and potentially other community organizations as space became available) as well as assume property manager and maintenance responsibilities for the building. It was the consensus of the Council/EDA to have STEP representatives meet with staff and bring back a proposal for further discussion. STEP and staff met and, as a result, STEP prepared the attached Addendum to its November 10, 2017 memo which provides a property acquisition timeline, a draft income and expense pro forma for operating the Walker Building, as well as a specific financial request of the City to provide STEP with up to $975,000. $775,000 of the funding would be used to enable STEP to enter into a purchase agreement to acquire the Walker Building, $100,000 to address the most pressing building repair and renovation needs, and up to an additional $100,000 from the city over the next two years to address other specified renovation and remodeling costs not covered by other grant sources. STEP would assume due diligence, earnest money and legal costs as well as all closing expenses. Walker Building Update: Currently, a purchase agreement is pending with another party for the Walker Building. In the event that agreement does not move forward, it is proposed that staff continue working with STEP on a formal funding agreement which would specify the terms under which the City would provide the financial support necessary to allow STEP to acquire the Walker Building and lease space to the Historical Society. FINANCIAL OR BUDGET CONSIDERATION: STEP is requesting up to $875,000 in financial support to enable them to enter into a purchase agreement to acquire the Walker Building and make initial necessary repairs. STEP is also seeking up to another $100,000 over the next two years to address other specified renovation and remodeling costs not covered by other grant sources to facilitate the Historical Society’s space needs within the building. The source of funding would be the City’s Development Fund. SUPPORTING DOCUMENTS: STEP Addendum to November 10, 2017 Memo STEP Memo of November 10, 2017 Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager and EDA Executive Director Addendum to November 10, 2017 Memo December 4, 2017 STEP and the Community Resource Center Vision for a STEP-led Community Resource Center housed at 6516-6524 Walker Avenue: Preserving the Past, Present and Future Legacy of St. Louis Park •The proposed vision of the building would focus on using the shared community asset to link the early foundations of St. Louis Park to the present and future needs and realities of St. Louis Park. •The core purpose is that the building becomes a collaborative space that serves the missions of STEP, the Historical Society, and other St. Louis Park community partners that may contribute to the vision in a way consistent with STEP’s and the community’s values. Timeline of building’s use: Stage 1 (Years 1-3) o STEP and Historical Society offices and programs occupy ground floor and basement. o Current 2nd floor tenants are invited to stay to help cover building costs. As vacancies occur, leases to be made available to other community-based non-profit tenants. o Historical renovations occur (primarily exterior). o Building improvements to allow public use of ground floor and basement. Stage 2 (Years 4-9) o On 1st floor, “St. Louis Park Living Room” and Community Resource Center would be administered by STEP and function as a resource for individual community members and community organizations. The space would host collaborative activities and serve as a clearinghouse of city, school, and community asset information. o Community partners are invited to join Walker Building in 2nd floor offices and/or 1st floor collaborative spaces. Stage 3 (Years 10+) o On 1st floor, the Historical Society opens a St. Louis Park History Center open to the public. Financial Picture There are two main financial needs for the building: Year-to-year cash flow to not be a drain on STEP’s programs and the capital expenses required for building renovation and remodeling. Pro forma profit and loss draft below shows a virtual break-even for the cash flow of the building. The plan is to rent the 2nd floor at market rates and the Historical Society’s 1st floor space at below- market rates. DRAFT PRO FORMA STEP 6516-6524 Walker Ave GROSS RENTAL INCOME 2nd Floor 44,220 Current rates Study Session Meeting of December 11, 2017 (Item No. 4) Title: Walker Building and Historical Society Space Options – Continued Discussion Page 2 1st Floor 12,000 Under market rate to SLP Historical Society. May credit funds Historical Society helps secure for building improvements. NET GROSS RENTAL INCOME 56,220 ANNUAL OPERATING EXPENSES Real Estate Taxes 21,239 Insurance 3,200 Gas & Electric 12,000 Water & Sewer 1,600 Trash Removal 1,800 Snow, Lawn, Cleaning 2,400 Repairs & Maintenance 12,000 TOTAL ANNUAL OPERATING EXPENSES 54,239 NET OPERATING INCOME 1,981 Capital expenses: STEP’s financial request to the City is not open-ended. To address the financial realities, STEP requests $775,000 (the current listing price) and up to $100,000 for the first three years of renovation and remodeling costs that are not covered by other granting sources. STEP would make every effort to negotiate a competitive price. The sale will be subject to appraisal. Initial anticipated capital costs for City support: Repair Item Cost Estimate Replace Garage Foam Roof with White TPO $40,000 Carpet main floor and hallways upstairs (600yds @$30) Or restore hardwood if restorable (preferable) $18,000 Paint interior prior to move in $10,000 Replace two 2nd floor furnaces $20,000 Scrape and Paint front until Façade Restoration $10,000 Misc. $2,000 Total $100,000 There remain many promising sources of funding for some of the historical renovations costs. STEP will utilize the expertise of the Historical Society in applying for funds. With the promise of the limited City funds for renovations, STEP is capable of managing the financial risk and burden of additional costs. Study Session Meeting of December 11, 2017 (Item No. 4) Title: Walker Building and Historical Society Space Options – Continued Discussion Page 3 Renovation costs may approach $500,000. STEP is in a financial position to mortgage costs in excess of $100,000 if necessary. STEP owns the 6812 West Lake Street building in full. (The building was purchased for $850,000 in 2010 and has had further capital improvements.) At maximum, a $400,000 20-year mortgage at 4.5% interest has a monthly payment of $2,530, or $30,360 annually. This is less than 4% of STEP’s current annual cash expense budget. This ceiling cost would essentially function on the same scale as rent, but with the added benefit of adding to the shared value of the building and potentially increasing rental income. How much funding does STEP really need for the building? Due to the above financial realities, if STEP is assuming the majority of renovation costs and other financial risks of ownership, it would require the purchase price to be completely covered by the City, as well as a portion of initial remodeling. STEP would assume the costs of performing legal counsel, due diligence and putting up the initial earnest money. STEP is not requesting direct City financial assistance of pre-closing expenses. For STEP to run and own a second building, it requires full City investment. If STEP were to purchase the 6516-6524 Walker without City assistance, it would require a $193,750 down payment (25%) and $44,124 annual mortgage rate, plus the costs and risks of renovation. This would not be financially justifiable for STEP. In the absence of the current proposal, STEP will likely seek a smaller expansion space with much lower cost and without the benefits of a facilitating a collaborative community space. Is STEP capable of running a second building? STEP is confident it would be able to manage a second building. STEP has a successful track record of responsibly managing the 6812 West Lake St building. Many of STEP’s building management systems would simply extend to the second building less than 100 yards away. This would include IT, security, cleaning service, snow removal, and other maintenance. STEP would have staff on-site in the building to respond to issues that come up. There would currently only by three, long-time commercial tenants to manage, plus the SLP Historical Society. STEP has expert property management and property law expertise available on its Board of Directors and with pro bono relationships. Study Session Meeting of December 11, 2017 (Item No. 4) Title: Walker Building and Historical Society Space Options – Continued Discussion Page 4 RE: Exploration of options for the Walker Building November 10, 2017 STEP’s interest in the Walker Building STEP is interested in exploring a partnership for the city to finance STEP’s purchase of the Walker Building (6516-6524 Walker St) through either a grant or a forgivable loan. STEP would keep its core operations at its current building (6812 Lake Street) and share use of the Walker Building with other community assets. Staff is presently collecting information to bring to STEP’s Board of Directors. STEP’s contribution would be: •Managing the whole process •Managing the purchase •Managing the building •Managing the remodeling Role of the St. Louis Park Historical Society The Historical Society has been the leader in pushing for solutions to preserve and restore the Walker Building. The Historical Society engaged in conversations with STEP to explore a potential partnership. The concept is that the city would assist STEP in purchasing the building. The arrangement would include the SLP Historical Society being housed in part of the Walker Building, with the long-term goal of creating a St. Louis Park History Museum on part of the main floor of the Walker Building. The Historical Society would be involved in securing historic preservation grants to restore and preserve the building. Initial use STEP would occupy the west side of the ground floor, the garage addition, and much of the basement. The SLP Historical Society will occupy the east side of the ground floor. The second floor will be leased to tenants (which will fund a majority of the building’s operating expenses). Over time, other community entities may be able to move in. What this does for STEP Since 1975 STEP has identified, addressed, and responded to the critical and emergency needs of residents in St. Louis Park. This would strengthen STEP’s promise to the community. Expansion into the Walker Building would allow STEP to expand and improve current operations. •Clothes Closet could be moved to Walker warehouse garage, allowing for greater selection and expansion to household items for residents. •The Holiday Toy Shop and Back to School distributions would be housed in the flexible warehouse garage alongside the Clothes Closet. •New Community Welcome Center. STEP could host a collaborative resource center for all community members, but targeted to new families in our community. It would be a clearinghouse of city, school, and community asset information. •Freed up space at the Lake Street building would allow to expand the food shelf shopping area and warehouse, allowing for more efficient food sourcing and greater selection for residents. •Additional STEP staff offices would allow for additional staff. •Community Room Space could accommodate larger groups, such as group volunteer projects, volunteer training, meetings, classes, and other organizational events. •Partnerships with other services would be available. STEP’s current space limits work with partners. Flexible space for walk-in legal clinics, tax advisors, housing resources, nutrition education, employment services, etc. Study Session Meeting of December 11, 2017 (Item No. 4) Title: Walker Building and Historical Society Space Options – Continued Discussion Page 5 What this does for the city This would benefit the community at large by achieving the following goals: •Support STEP’s mission and solidify current location. •Provides path for restoring historic nature of the Walker Building. •Improves and enlivens Historic Walker Lake district. •Insures that positive entities occupy the building consistent with the vision for the area. •Creates a permanent home for the SLP Historical Society in a self-sustaining manner. •Makes this simply a “funding a place for STEP” transaction for the city council and takes away all the ownership issues, tenant issues and building management and reconstruction issues. Draft timeline for Walker Building initiative NOV 17 STEP enters into purchase agreement with 19th Century Enterprises LLC. Purchase agreement would allow 90-day period for due diligence and an additional 90 days to secure a funding agreement with the City. NOV 17 – FEB 18 STEP performs due diligence including city inspection, title, leasing agreements, and phase 2 environmental review. NOV 17 – FEB 18 STEP draws up preliminary remodel and rehab plan, including cost estimates. NOV 17 – FEB 18 STEP and the SLP Historical Society negotiate anticipated terms of lease relationship and expectations relating to historic renovations decisions and fund seeking. NOV 17 – FEB 18 STEP Board of Directors will decide on any issues that are raised through the due- diligence process. NOV 17 – FEB 18 City will determine whether and how it will financially partner in the initiative. FEB - MAY 18 STEP Board of Directors will decide whether the city financial partnership meets the needs for this initiative. FEB - MAY 18 STEP and City will sign a financing agreement to meet requirements and satisfy funding item in the purchase agreement. MAY 18 Once due diligence and financing has been satisfied, the sale to STEP will close. MAY 18 Upon the sale, STEP will assume current lease agreements under their existing terms. MAY 18 Upon the sale, STEP and the SLP Historical Society will enter into lease agreement. MAY 18 - ? Pre-occupancy remodeling will be performed (primarily on ground floor). After MAY 18 STEP and the SLP Historical Society will begin to occupy the ground floor. Study Session Meeting of December 11, 2017 (Item No. 4) Title: Walker Building and Historical Society Space Options – Continued Discussion Page 6 Meeting: Study Session Meeting Date: December 11, 2017 Written Report: 5 EXECUTIVE SUMMARY TITLE: 2040 Comprehensive Plan Update RECOMMENDED ACTION: None at this time. This report is to inform the City Council of activities related to the city’s Comprehensive Plan update. POLICY CONSIDERATION: None at this time. Please inform staff of any questions. SUMMARY: As part of the process of updating the city’s Comprehensive Plan for 2040, the city held four Neighborhood Planning Workshops in November at several locations around the community. The workshops were well attended, with 140 people participating from nearly every neighborhood in the city. Workshop notices were mailed to every household in the city, as well as hand-distributed to larger rental communities, emailed to city contact lists, and posted on the city’s website and city social media sites. And in an effort to facilitate participation by traditionally underrepresented groups, a light supper, child care, transportation assistance and accommodations as needed, were provided. At the workshops, community members grouped by neighborhood, collaborated on answering questions on a game board displaying a map of their neighborhood. People were very engaged in answering the questions, and several continued their discussions well after the meeting officially adjourned. A community survey with the same questions was also posted on the city’s website at https://www.stlouispark.org/business/why-st-louis-park/comprehensive-plan-2040 to allow for participation by residents who were unable to attend the meetings. The survey will remain available until December 15, 2017. A comprehensive report detailing the information gathered at the Neighborhood Workshops will be completed by the city’s consultant, HKGi, and will be available and shared in a few weeks. Common themes that were heard included: requests for additional and safer pedestrian crossings of high traffic intersections, more pedestrian lighting, affordable housing, revitalizing commercial areas, additional gathering spaces and improvement of natural areas and parks. Additional community engagement opportunities will be provided in the coming months, including several follow-up workshops to be held in the spring of 2018. Staff continues to work on updating and revising the many sections of the Plan and will be holding a number of meetings with the Planning Commission as the primary responsible commission, and with other commissions on specific items. FINANCIAL OR BUDGET CONSIDERATION: The contract for the planning consultant has been executed and funding for this has been allocated in the 2017 and 2018 community development budgets. VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Neighborhood Planning Workshop Photos Prepared by: Meg J. McMonigal, Principal Planner Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager Study Session Meeting of December 11, 2017 (Item No. 5) Title: 2040 Comprehensive Plan Update Page 2 Meeting: Study Session Meeting Date: December 11, 2017 Written Report: 6 EXECUTIVE SUMMARY TITLE: City of St. Louis Park/ City of Hopkins Municipal Boundary Adjustment- Blake Road RECOMMENDED ACTION: No action required. The purpose of this report is to provide the City Council information regarding a proposed municipal boundary adjustment. POLICY CONSIDERATION: Is the concurrent detachment and annexation of certain lands to and from the cities of St. Louis Park and Hopkins in the best interests of St. Louis Park? SUMMARY: In 2018, Hennepin County is reconstructing Blake Road/ Interlachen Boulevard, between Highway 7 and Vernon Avenue South. The 150 feet of Blake Road, just south of Highway 7, is located within the City of St. Louis Park. The rest of the road is located in Hopkins and Edina. Once the reconstruction project is complete, Hennepin County will turn the road jurisdiction over to the cities. With jurisdiction comes the long term responsibility for maintenance and operation of the road. Having jurisdiction over 150 feet of street just south of the Highway 7 intersection, also means that the City is responsible for 25% of the intersection signal system and all of the construction costs incurred within our city boundary. This is a high cost, low benefit responsibility, since the road only serves two parcels of land in St. Louis Park. As a result, staff has been working with the City of Hopkins on executing a jurisdictional boundary adjustment to shift our southern city boundary to exclude Blake Road all together. The adjustment essentially trades land between the two cities whereby the City of St. Louis Park releases certain property in south of Highway 7 to City of Hopkins and the City of Hopkins releases property north of Highway 7. The proposed municipal boundary adjustment is illustrated in the attachment. Next Step: To accomplish a boundary change, a resolution must be passed by each city and filed with the chief administrative law judge. A hearing is then held and the judge issues an order on the request. The Hopkins staff is taking the lead on the adjustment, and will file both Resolutions. The process will take up to 60 days before a decision is made. FINANCIAL OR BUDGET CONSIDERATION: Not applicable at this time. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: Boundary Change Map Prepared by: Joseph Shamla, Senior Engineering Project Manager Reviewed by: Debra Heiser, Engineering Director Sean Walther, Planning & Zoning Supervisor Approved by: Tom Harmening, City Manager BLAKE ROAD (CSAH 20) IMPROVEMENTS CITY BOUNDARY REVISION APRIL 25, 2017 -• - . I" r r r• f, ,. ,. ,. • -�--, _..:......-------'�---------;;;:----r:�"r i Aili 'f'. 'pUif.�}t; • '" . ' --- .. t NIICII. ID. •• -�FLS 12163 1 W PH a.11 .. CAIN Pit •.11,n11110U11 I I I. Ill I 1111 Ill �11111 I I . ..L.J. ,a, -•• SIL& IIIWIIMIIII• LID• I.LP .... ID. 1911121 tt .. , • - D Cl I 0 100 FT 200 FT LEGEND HOPKINS TO ST. LOUIS PARK ST. LOUIS PARK TO HOPKINS Study Session Meeting of December 11, 2017 (Item No. 6) Title: City of St. Louis Park/ City of Hopkins Municipal Boundary Adjustment- Blake Road Page 2 Meeting: Study Session Meeting Date: December 11, 2017 Written Report: 7 EXECUTIVE SUMMARY TITLE: Special Assessment for Water and Sewer Availability Charges RECOMMENDED ACTION: The purpose of this report is to inform Council of the request made by Paul Revere Masonic Center LLC to authorize a special assessment for water and sewer availability charges. This item is scheduled for Council consideration at the December 18, 2017 meeting. POLICY CONSIDERATION: Does the City Council wish to support Paul Revere Masonic LLCs’ special assessment request? SUMMARY: Paul Revere Masonic Center LLC, owner of the commercial building at 6509 Walker Street, has requested the city to authorize a special assessment for the water and sewer availability charges due for the planned new tenant, the American Legion, and to assess the cost against the property. Water and Sewer availability charges (WAC and SAC) are used by the Metropolitan Council and cities as a “buy-in” charge for new development into the existing water and sewer infrastructure. It mitigates existing customers from having to subsidize the impact of new developments on the regions sewer system and the city’s water system. The water system is managed by the city and WAC fees, currently at $750 per unit, are collected and coded to the Water fund. The sewer system is managed by Metropolitan Council (Met Council). The city collects SAC fees, currently at $2,485 per unit and remits them to the Met Council monthly. Met Council’s evaluation of the proposed use of the property by the American Legion resulted in a calculation of fourteen (14) SAC units. Total fees to be paid include: WAC in the amount of $10,500, SAC in the amount of $37,790, and an Administrative Fee of $30, for a total of $45,320. Once paid, the units will stay with the property. The American Legion is planning to complete renovations to the property and the building permit is ready to be issued. However, city policy requires SAC and WAC payment prior to issuance of a building permit, and the Legion does not have the financial resources to pay these fees at this time. The Legion contacted the city to request some financial relief related to these charges to allow them to move forward with the renovations. Given the Legion’s non-profit status, focus on veteran assistance, contributions to the community, and relationship with the city, staff recognized this as a unique situation and developed a solution that would allow the Legion to pay for the water and sewer charges over a ten year period through a special assessment. If approved, the city will pay the SAC fees from the sewer fund to Met Council, forgo collection of WAC fees at this time, and issue a building permit. The city will recoup these fees over the duration of the special assessment. The attached resolution and agreement summarize the details of the assessment. Staff recognizes this as a unique situation and does not foresee extending this type of financing in other situations on a regular basis. FINANCIAL OR BUDGET CONSIDERATION: Staff has determined that adequate funds are available through the Water and Sewer Funds to finance this special assessment. SUPPORTING DOCUMENTS: Discussion; Resolution; Petition for Public Improvement & Assessment Agreement Prepared by: Mark Ebensteiner, Finance Mgr.; Julie Grove, Economic Development Spec. Reviewed by: Tim Simon, CFO; Karen Barton, CD Dir.; Nancy Deno, Deputy City Manager Approved by: Tom Harmening, City Manager Page 2 Study Session Meeting of December 11, 2017 (Item No. 7) Title: Special Assessment for Water and Sewer Availability Charges DISCUSSION BACKGROUND: On September 19, 2017 City Council approved a Conditional Use Permit to allow the American Legion Post 282 to occupy a portion of 6509 & 6515 Walker Street as a place of assembly. The Paul Revere Masonic Center (PRMC) currently owns and operates the building and has an agreement to lease out a portion of it to the Legion. The American Legion was operating at 5605 36th Street, but had to vacate the space in anticipation of the property being redeveloped with the Elmwood mixed use building that was approved by the city in March of 2017. The American Legion has submitted building permit and liquor license applications for the building. It proposes to remodel the east side of the building to operate a kitchen and assembly area where meals and drinks will be served to club members and guests. The building permit is ready to be issued, however the cost of water and sewer access charges was more than anticipated and the Legion had insufficient financial resources to pay these charges upfront. The Legion contacted the city to request some financial relief. In response, staff developed a solution that would allow the Legion to pay for the water and sewer charges over a ten year period through a special assessment. The Masonic Center, as owners of the building, have agreed to request a special assessment against their property to assess the cost for the water and sewer availability charges. All parties have been in discussion and the Masonic Center is willing to accept the special assessment. The city attorney has prepared the proposed petition which will be brought to the City Council for formal consideration on December 18th. Page 3 Study Session Meeting of December 11, 2017 (Item No. 7) Title: Special Assessment for Water and Sewer Availability Charges RESOLUTION NO. 17-____ RESOLUTION AUTHORIZING SPECIAL ASSESSMENT OF WATER AVAILABILITY CHARGE AND SEWER AVAILABILITY CHARGE AT 6509 Walker Street, St. Louis Park, MN 55426 WHEREAS, Paul Revere Masonic Center LLC, the Property Owner at 6509 Walker Street has petitioned the City of St. Louis Park to authorize a special assessment for the Water Availability Charges (WAC) and Sewer Availability Charges (SAC) for the building on the Benefited Property; and WHEREAS, the Property Owner has agreed to waive their right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429 WHEREAS, the Benefitted Property has fourteen (14) units. WHEREAS, the WAC is $750 per unit. WHEREAS, the SAC is $2,485 per unit. NOW THEREFORE BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, that: 1.The petition from the Property Owner requesting the approval and special assessment for WAC and SAC is hereby accepted. 2. The total WAC for all fourteen (14) units will be $10,500. 3. The total SAC for all fourteen (14) units will be $34,790. 4.Property owner shall pay an administrative fee of $30.00 for processing the special assessment, which will be included in the special assessment. 5.The total special assessment against the property for WAC and SAC for all fourteen (14) units and the administrative fee will be $45,320. 6.The Property Owners have agreed to waive their rights to a public hearing, notice and appeal from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 7.The Property Owners agree to pay the City for the cost of the above improvements through a special assessment over a ten (10) year period at four percent (4.0%) interest. 8.The Property Owners agree to execute an agreement with the City and any other documents necessary to implement the special assessment of WAC and SAC and all costs associated therewith. Page 4 Study Session Meeting of December 11, 2017 (Item No. 7) Title: Special Assessment for Water and Sewer Availability Charges Reviewed for Administration: Adopted by the City Council December 18, 2017 City Manager Mayor Attest: City Clerk Page 5 Study Session Meeting of December 11, 2017 (Item No. 7) Title: Special Assessment for Water and Sewer Availability Charges CITY OF ST LOUIS PARK PETITION FOR PUBLIC IMPROVEMENT AND ASSESSMENT AGREEMENT WATER AVAILABILITY CHARGES AND SEWER AVAILABILITY CHARGES FOR PAUL REVERE MASONIC CENTER LLC, PROPERTY LOCATED AT 6509 WALKER STREET, ST. LOUIS PARK, MN 55426 AGREEMENT made as of December 18, 2017 between the City of St. Louis Park, a Minnesota corporation (“City”) and Paul Revere Masonic Center LLC, (Owner). “Property Owner(s)”, concerning special assessment for Water Availability Charges (WAC) and Sewer Availability Charges (SAC) at property located at 6509 Walker Street, Hennepin County P.I.D. number 17-117-21-44-0016, The City and the Property Owner agree as follows: 1)Property Owner(s). The Property Owner is Paul Revere Masonic Center LLC. 2)Subject Property. The Property Owner is the fee owner of the property legally described in attached “Exhibit A” incorporated by reference herein. 3)Purpose of Agreement. Pursuant to Minnesota Statutes, Chapter 429.031 subd. 3 and St. Louis Park Resolution 17- _____ the Property Owner petitioned the City to specially assess the cost of WAC and SAC to its building at the Benefited Property. 4)Administrative Fee. The Property Owner shall pay an administrative fee of $30.00 for the processing of the special assessment. 5)Amount to be assessed. The total estimated cost of WAC and SAC is $45,290 all of which is proposed to be assessed against the Benefited Property as described in Paragraph 2 above. It is hereby agreed that the full cost of WAC and SAC and the administrative fee of $30.00 will be assessed against the property. The total Special Assessment against the property will be $45,320. 6)Waiver of Notice and Hearing. In connection with this improvement, the Property Owner agrees to waive and does waive any and all rights to public hearing and right to any notice, whether provided by Minnesota Statutes, Chapter 429, or any other statute or by ordinance, City Charter, constitution, or common law. 7)Waiver of Right of Appeal. In connection with this improvement, the Property Owner agrees to waive and does waive any and all rights to appeal from the special assessment set forth above, whether provided by Minnesota Statutes, Chapter 429, or any other statute or by ordinance, City Charter, constitution, or common law. 8)Implementation. Each party to this agreement agrees to execute any other documents upon request of the City, necessary to implement the waivers of notice, hearing and right of appeal for the special assessment for the improvement project. Page 6 Study Session Meeting of December 11, 2017 (Item No. 7) Title: Special Assessment for Water and Sewer Availability Charges 9)Payment. The Property Owner agrees to pay the City for the cost of the above WAC and SAC in accordance with the following terms: a)The assessment shall be paid in equal installments over ten (10) years at four percent (4.0%) interest on the unpaid balance and in accordance with all provisions of the City policy for special assessments of WAC and SAC. 10)Indemnification. The Property Owner shall indemnify and hold harmless the City and its officers, agents and employees from and against all claims, damages, losses, or expenses, including attorneys fees, which may be suffered or from which they may be held liable, arising out of or resulting from the assertion against them of any claims, debts or obligations in consequence of the performance of this agreement by the City, its employees, agents or subcontractors. 11)Certification of Encumbrances or Contract for Deed. Each party to this agreement certifies that the property described in Paragraph 2 above, is owned by that party in fee simple and is free and clear of all encumbrances or Contracts for Deed except as follows: None. 12)Right to Record. It is agreed that the City may record this document in the chain of title of the Benefited Property legally described above. This agreement has been entered into as of the 18th day of December 2017. FOR THE CITY OF ST. LOUIS PARK: __________________________________ Mayo r Attest: ____________________________________ __________________________________ City Manager City Clerk (seal) Accounting Records Posted: ___________________________________ Finance Manager Page 7 Study Session Meeting of December 11, 2017 (Item No. 7) Title: Special Assessment for Water and Sewer Availability Charges * FOR THE PROPERTY OWNER: PROPERTY OWNER(S) ___________________________ STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ________________, 2017, by ____________________________________. Property Owner(s) ____________________________________ Notary Public THIS AGREEMENT WAS DRAFTED BY: CAMPBELL KNUTSON, P.A. Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 Telephone: (651) 452-5000 JJM Page 8 Study Session Meeting of December 11, 2017 (Item No. 7) Title: Special Assessment for Water and Sewer Availability Charges EXHIBIT A Lots 1, 2, 3, 4 and 5, Block 35, Rearrangement of St. Louis Park. The West 15 feet of the West ½ of Mound Street, lying between extensions across it of the North and South lines of Lot 1, Block 35, Rearrangement of St. Louis Park. Meeting: Study Session Meeting Date: December 11, 2017 Written Report: 8 EXECUTIVE SUMMARY TITLE: 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update RECOMMENDED ACTION: None at this time. The purpose of this report is to provide the Council with information regarding the progress of the Texas Avenue South and Division Street Reconstruction Project. On December 18 a public hearing is scheduled for this project. At that meeting the Council will be asked to approve a preliminary layout so that final design work can commence. POLICY CONSIDERATION: Is the proposed design consistent with Council expectations? SUMMARY: The City of Hopkins has included a number of streets directly adjacent to the South Oak Hill neighborhood in their 2018 street and utility improvement project. Hopkins streets proposed for improvement include Cambridge Street, Oxford Street, Lake Street NE, Murphy Avenue, and the alley south of Lake Street. Hopkins and St. Louis Park staff have also identified Texas Avenue (from Highway 7 to Lake Street) and Division Street (from Texas Avenue to dead end) for rehabilitation. Texas Avenue and Division Street are border streets, so maintenance responsibility and jurisdiction is shared between the two cities. Both cities are interested in minimizing the inconvenience to the public and completing the work efficiently. Our best option to meet these interests is to complete these streets with the City of Hopkins 2018 Street and Utility Improvement Project. Due to a majority of the project being in Hopkins, on June 19, the City Council authorized a Joint Powers Agreement with the City of Hopkins to designate them as the lead agency for the construction contract. The scope of the project within St. Louis Park includes; street rehabilitation, sidewalk construction, and miscellaneous utility rehabilitation. In addition the project also includes the installation of the bikeway connecting to the Cedar Lake Regional Trail. Bike lanes on Texas Avenue between Highway 7 and Lake Street were approved by the City C ouncil on February 6, 2017. FINANCIAL OR BUDGET CONSIDERATION: The engineer’s estimate for this project is $617,495. This project is included in the CIP for 2018. Funding will be provided by a combination of Pavement Management and Utility Funds, and GO Bonds (sidewalk) VISION CONSIDERATION: St. Louis Park is committed to being a connected and engaged community. SUPPORTING DOCUMENTS: Discussion Location Map Proposed Typical Sections Hopkins Overall 2018 Reconstruction Project Prepared by: Joseph Shamla, Senior Engineering Project Manager Reviewed by: Debra M. Heiser, Engineering Director Approved by: Tom Harmening, City Manager Study Session Meeting of December 11, 2017 (Item No. 8) Page 2 Title: 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update DISCUSSION BACKGROUND: In 2018, Texas Avenue (from Highway 7 to Lake Street) and Division Street (from Texas Avenue to dead end) are proposed to be reconstructed. In general, Texas Avenue is 60% within St. Louis Park and 40% within Hopkins and Division Street is shared equally between the two cities. The City of Hopkins has a larger reconstruction project in the area which includes Cambridge Street, Oxford Street, Lake Street Northeast, Murphy Avenue, and the alley south of Lake Street. Completing Texas Avenue S. and Division Street at this time will provide the City a better price and the residents a better product as both sides of the street will be completed at the same time. In addition to this local street reconstruction project, the Minnesota Department of Transportation (MnDOT) has a mill and over lay project on Highway 7 in 2018. The mill and overlay project limits are from west of the City of St. Louis Park City border to the recently installed pavement on the Louisiana Avenue interchange project that was completed in 2015. Staff has been working with MnDOT to modify the intersection of Highway 7 and Texas Avenue to make a better bike connection for the bike facilities located north and south of the intersection. Texas Avenue was last reconstructed in 1960 and Division Street in 1956. In order to ensure that the reconstructed Texas Avenue meets the needs of the City for another 40 years, staff is taking a look at existing and future transportation in the corridor for the recommended design. Previous Council Actions Due to a majority of the project being in Hopkins, on June 19, the City Council authorized a Joint Powers Agreement with the City of Hopkins to designate them as the lead agency for the construction contract. On February 6, 2017 the City Council approved the installation of bike lanes on Texas Avenue from Highway 7 to Lake Street. This segment will connect into the South Oak Hill Neighborhood via Lake Street and Rhode Island ultimately connecting to the Cedar Lake Regional Trail. Due to this reconstruction project staff delayed the installation of this bikeway 2018. When the bike lanes are installed on Texas Avenue south of Highway 7, a bike facility will be in place on Texas Avenue between 28th Street and the Cedar Lake Regional Trail. Proposed Sidewalk Staff reviewed the traffic on Texas Avenue and Division Street to determine if sidewalk is recommended. Texas Avenue has an average daily traffic (ADT) of 2000 vehicles per day. As a comparison, the Sorenson Neighborhood streets had an average ADT of 275 vehicles per day. Due to the amount of traffic on Texas Avenue, staff is recommending that sidewalk be added on the east side of Texas Avenue between Highway 7 and Lake Street. Staff is also recommending the addition of sidewalk on the west side of Texas Avenue between Highway 7 and Division Street. Division Street is a dead end and has low traffic volume, as a result, staff is not recommending installing a sidewalk on Division Street. Study Session Meeting of December 11, 2017 (Item No. 8) Page 3 Title: 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update Utility Replacement As a part of all of our street rehabilitation projects, the City evaluates the condition of the existing sanitary sewer, storm sewer, and water main. Only minor replacement of this infrastructure is necessary on Texas Avenue and Division Street. This work will be completed with this project. Staff will be meeting with private utility companies on December 15th to inform them of the project and determine if any private utility work will take place prior to the start of this project. Also, the Met Council will be replacing their large diameter forcemain on Lake Street. This project is a continuation of the forcemain replacement which occurred through St. Louis Park from 2014 to 2016. The project limits will extend from west of Blake Road to 200 feet east of Lake Street. The only section within St. Louis Park is 200 feet east on Lake Street. Pavement Rehabilitation The roads being rehabilitated are shared between St. Louis Park and the City of Hopkins. In determining which pavement management preservation technique should be used, the City of Hopkins met with the City of St. Louis Park to decide on a path forward. After reviewing the condition of the road, staff recommends that the city pursue a reconstruction project. Coordinating this project with the City of Hopkins neighborhood project will result in cost savings as well as reduced inconvenience to the property owners and the traveling public. A full reconstruct consists of the removal and replacement of the curb and gutter, and pavement. Tree Impact At this time it is difficult to determine the actual impact to trees. The concept plan identifies 8 trees which may need to be removed to construct the sidewalk on both sides of Texas Avenue. As the project moves into final design, staff will work with the City Forester to ensure as many trees are saved as possible. The City Forester will complete a tree survey to determine the health, species and size of the trees. The first option we use when it comes to trees is to avoid the conflict. In areas where there is a potential conflict, the sidewalk could shift towards the back of the curb to allow less impact to the tree or roots. Once a preliminary layout is approved, staff will be able to identify the conflicts and work on how the final plan can be modified. If a tree needs to be removed it will be replaced on a caliper inch basis. Therefore a 10 caliper inch tree would be replaced by 4 trees which are 2.5 caliper inch per tree. These replacement trees would be located within the Texas Avenue right-of-way as space allows or planted in other locations in the City. The proposed 6 foot boulevard between the sidewalk and the road would be a good spot for planting new trees. Design of Texas Avenue In late 2017, bike lanes were installed on Texas Avenue from Highway 7 to Minnetonka Boulevard. Additional bike facilities will be placed on Texas Avenue north of Minnetonka Boulevard and south east of the intersection of Lake Street and Texas Avenue South connecting to the Cedar Lake Regional Trail in 2018. When all segments of bikeway on Texas are implemented it will provide residents with a safe connection between the north and south regional trails, as well as Texa-Tonka and Knollwood Mall. The bike lane on Texas Avenue South will also connect to Lake Street in the City of Hopkins. Lake Street will also be “share the road” bike way with on street parking from Texas Avenue to Blake Road. Study Session Meeting of December 11, 2017 (Item No. 8) Page 4 Title: 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update A proposed typical section of Texas Avenue South is attached for reference. The area of Texas Avenue within St. Louis Park will have 5 foot wide on-street bike lane. The City of Hopkins has approved a bike facility on the east side of Texas Avenue from Division Street to Lake Street at the City Council meeting on December 5th. The reason for deciding to move forward with “share the road” bike facilities was to allow parking for their residents. A parking survey was completed on Texas Avenue prior to determining whether or not to eliminate parking. Texas Avenue was surveyed on 40 different occasions at different times of the day and on weekends. The most cars parked on Texas Avenue during this period was 2 and only 8 cars total were identified over the 40 surveys. Public Process The City of Hopkins hosted a joint public meeting for this project on September 27, 2017. St. Louis Park also hosted a public meeting on November 14, 2017 just for St. Louis Park residents to gather input prior to starting the preliminary design. We have received the following feedback from residents on the proposed design. • Sidewalks – Some residents are concerned about the addition of sidewalks in the right- of- way in front of their property. Proposed Schedule: In order to ensure there is enough time to construct the improvements in 2018, staff needs direction on whether or not to include the sidewalks proposed with this project. To achieve this, we are asking the City Council to approve a preliminary layout during the December 18th City Council meeting so the consultant can start final design. The following is the proposed schedule: Public Hearing - Approve Preliminary Layout December 18, 2017 60 percent plans January 2018 Public meeting to review final plans February 2018 Approve Plans/ Authorization to Bid by City Council March 2018 Construction April – Nov 2017* *The overall project which includes the larger Hopkins Neighborhood Reconstruction Project will span from April to November. Texas Avenue South and Division Street will be approximately 10 weeks of construction for each during this time period. 20 0.0 Texas Avenue S 1400 Feet Disclaimer: This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. The City of Hopkins is not responsible for any inaccuracies herein contained. © Bolton & Menk, Inc - Web GIS 12/5/2017 4:38 PM Study Session Meeting of December 11, 2017 (Item No. 8) Title: 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update Page 5 4’-4”14’-4”5’-0” WALK PROPOSED6’-0” BOULEVARD PROPOSED PROPOSEDBIKE LANE5’-0”INTEGRAL W/ CURB PROPOSED7’-0”PARKING LANE PROPOSED12’-0” DRIVE LANE PROPOSED 8” CURB 8” CURB 11’-0” DRIVE LANE W/ SHARROWS 66’-0” RIGHT-OF-WAYR.O.W.R.O.W.PROPOSED ROADWAY 35’ CITY LIMITSROADWAYCL Proposed 2018 Improvements Texas Avenue Study Session Meeting of December 11, 2017 (Item No. 8) Title: 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update Page 6 37 8.0 © Bolton & Menk, Inc - Web GIS 0 Legend 2018 Project Area Map This drawing is neither a legally recorded map nor a survey and is not intended to be used as one. This drawing is a compilation of records, information, and data located in various city, county, and state offices, and other sources affecting the area shown, and is to be used for reference purposes only. The City of Hopkins is not responsible for any inaccuracies herein contained. Disclaimer: 6/9/2017 3:40 PM 265 Feet City Limits Protected Waters Public Water Basin Public Water Wetland Protected Waters - Watercourse Parcels (3-1-2017) Lot Lines Study Session Meeting of December 11, 2017 (Item No. 8) Title: 2018 Hopkins Street and Utility Improvement Project (4018-1101) Update Page 49