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HomeMy WebLinkAbout2017/12/11 - ADMIN - Minutes - City Council - Study Session%ff J St. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA DECEMBER 11, 2017 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Gregg Lindberg, Anne Mavity, Thom Miller, and Susan Sanger. Staff present: City Manager (Mr. Harmening), Director of Operations and Recreation (Ms. Walsh), Economic Development Coordinator (Mr. Hunt), Director of Inspections (Mr. Hoffman), Director of Community Development (Ms. Barton), Environment & Sustainability Coordinator (Ms. Pine), Westwood Nature Center Manager (Mr. Oestreich) and Recording Secretary (Ms. Pappas). Guests: Chris Velasco, PLACE; Nancy Blankfard, Glenn Waguespack, Molly Eagen, HGA Architect firm; Derrick Reise, STEP; Government class students from Benilde and St. Louis Park High School. 1. Future Study Session Agenda Planning —January 8, 2017 Mr. Harmening presented the proposed Study Session agenda for January 8, 2017. Councilmember Mavity asked about the status of the crime lab and possible move from the Sherriffs Office to the county or the City of Minneapolis. Mr. Harmening stated that the crime lab is an important service that the city uses, and they do a great job to help solve serious crimes. He added that the St. Louis Park Police Department is concerned about losing this service because the current crime lab is very efficient. Mr. Harmening stated that the important matter is that the quality of the crime lab remains the same. Mr. Harmening stated that for the purposes of best practices, it is important to have the crime lab separate from law enforcement, so as not to have a conflict of interest. Councilmember Mavity asked if there is a concern about quality if the crime lab moves to the City of Minneapolis. Mr. Harmening stated that there is concern because Minneapolis has a high workload in this area, and that could affect St. Louis Park's needs. He stated that more information will be forthcoming at a future study session. Councilmember Mavity stated that a future study session topic about the city's zoning codes; how they relate to store fronts; and how issues can be addressed. 2. Westwood Hills Nature Center Project— Schematic Design Ms. Walsh introduced the architects and design engineers from HGA, who presented the schematic design of the new Westwood Hills Nature Center. Ms. Blankfard fiom HGA pointed out the generous new parking area and open areas near the new nature center. She added that there would be 68 parking spaces, as well as overflow parking areas. She also noted that the nature center would be set at an east -west angle, in order to capture the most from solar energy and pointed out the land's natural topography, walking trails, and waterways. Once the new building is complete, the old building would be demolished in order to take advantage of the slope area. Ms. Blankfard noted the open top bird cages. Mayor Spann asked why the building seems to face toward the parking lot, and not toward the nature area behind the building. Ms. Blankfard pointed out that as one moves through the Study Session -2- December 11, 2017 building, there will be a progression toward nature. She stated that the public will drive in towards the building through a prairie area, with over 100 feet of planting in this zone. Mr. Waguespack stated that the design presents a threshold into nature. The building orientation also maximizes solar and wind, which helps to achieve our Zero Energy goal. Mr. Waguespack pointed out the public entrance and building layout, as well as the exhibit; staff and classroom areas; the raptor care room; and a reading room area. He stated that the exhibit glass area is very open, with the potential for a fireplace and public meeting space connected to the outdoors. He noted that the classroom space can separate into three classrooms but when open, can hold 150 people and could be used for multi-purpose and events. The catering area would be used for food set up. Councilmember Mavity asked about angling the glass, similar to the Elm Creek Preserve, to prevent birds from flying into it. Mr. Waguespack stated that this would be accomplished through patterning and texture of the glass. He added that the plans take advantage of daylight and maximum solar exposure to drive daylight and heat into all spaces. Mr. Waguespack also pointed out stormwater management and rainwater capture as additional elements, directing water down the hillside and toward the existing turtle pond. Mayor Spano asked what the rental space in the staff office would be used for. Mr. Waguespack answered that it would be for rental of snow shoes and other equipment. Mayor Spano asked how often the nature center has three large groups of school children visiting. Mr. Oestreich stated that the center has upwards of 150 school children visiting on a daily basis, with multiple classes at the same time. He added that having the large classroom area that could be divided into three classrooms would be helpful. Additionally, one classroom could be rented out, while two others are in use. Mayor Spano asked if the school district has said they want multiple classrooms and if the space will be utilized. He added that the council had discussed that the nature aspect of the space would be the largest area, with the general public space larger and the classroom area smaller. Ms. Walsh pointed out that while there are many public school children who visit, there are also many home schooled children — both from in and from outside of St. Louis Park -- who utilize the center. Nature Center staff is considering developing a whole curriculum for home schooled children. Councilmember Lindberg stated with nature -based programming, there does need to be enough space for the school district, home schooled children, and other partnership options. Mr. Oestreich also noted that the center is used for birthday party rentals and other events on weekends, so the classroom space will allow for flexibility in programming 7 days per week. Councilmember Mavity stated that she generally likes the design; however, the lounge space feels small. She was hoping for more seating or more small spaces for seating throughout the building. Additionally, she stated that the beams around the glass are unnecessary and feel like clutter, and unnecessary. She would prefer a less obstructive view to the outdoors. Ms. Eagen discussed the center's sustainability goals and zero energy design, stating that while zero energy is a very ambitious goal, it will take optimizing and fine tuning to work with the facilities and identify opportunities. She noted the energy efficiency of the design and the goal of lowering energy use as much as possible, while using renewable energy for heat in the winter. Study Session -3- December 11, 2017 The goal is to balance out the energy use over the year and optimize the layout of the building — with the east -west orientation, which offers more energy efficiency by capturing the sunlight. Ms. Eagen also noted the roof tilt for optimizing solar energy. The goal will be a 60% reduction of energy. Councilmember Mavity asked if with the roof tilt, snow will accumulate on the roof. Mr. Eagen stated that snow will accumulate there but will melt off the solar panels. Mr. Harmening asked the council to think about how far they want to go with the high-level energy efficiencies because the costs to include these measures will be higher. Councilmember Hallfin asked if there are grants related to the energy efficiency that could be applied for. Ms. Walsh stated yes, possibly. Councilmember Hallfin stated that he generally likes the design, adding that because it is being built for the long-term, the higher price for zero energy doesn't bother him. It will pay for itself over time. Councilmember Mavity stated that she would like to see some data on return on investment to see what could be saved over time. She added that she wants to be cautious on adding too many bells and whistles and is concerned about residents paying too much. Councilmember Miller stated that he has been very supportive of this project but is now very concerned about the price tag. He added with all the items the city will be paying for in the near future - including SWLRT - he is concerned about the size and cost of the nature center. He suggested that the council take a step back and consider the city's investment in affordable housing, the Walker Lake District, and a possible civic or community center. He stated that while he likes the design, he is concerned about costs and wonders if there are other options, such as building a smaller building or adding on to the existing building. Councilmember Brausen stated that he is totally supportive of the design, adding that this newly designed nature center would be evidence of the city's commitment to environmental leadership. He stated that it is an investment in our future and shows the community what can be done to move toward zero net energy. He added that over time it will pay for itself, also noting that he — would like to see the use of darker woods on the building. Councilmember Lindberg stated that he agrees with Councilmember Brausen. This project brings to life what the council talks about in policy and vision related to environmental issues. He stated that when looking at the energy code compliance information and using the facility as an educational resource, it is worth it. While he added that he appreciated the concern about tax payer's capacity, this investment is what the community is looking for. Councilmember Miller stated that he would like to see some public input and wants to involve residents early on, before this goes much further. Councilmember Mavity stated that there has been lots of great input on this from the public through the visioning process. Ms. Walsh stated that this is merely the first step. At the December 18 city council meeting, the public will be able to view the design at this stage. After that there will be more check-in with the council, with the design being refined throughout the whole process. Study Session -4- December 11, 2017 Councilmember Mavity asked if there might be an additional public input open house related to the project. Ms. Walsh stated yes, after the council approves the schematic design. Councilmember Brausen stated that he has spoken to many young families in his area about the costs of this project. They were all very positive and willing to pay for it. Mayor Spano stated that there will be a more in depth conversation for the public process. He stated that he is fine with the design. While it will be a high-cost project, the money will be well spent. He added that it is not unreasonable to ask the school district to help with it, especially since it will be used for school children's classes. He stated that he is not interested in naming rights for the center; however, other councilmembers were interested in pursuing this option. Mayor Spano added that he likes sitting at the nature center and looking at the beauty of nature. He added that he would like to further discuss the bird strikes concern. He stated he wants to be certain there are great views of the natural environment from inside the building and would like to see more sitting space for the public. He added that this project feels better for the city than a community center with very large costs. Mr. Harmening stated that the Westwood Hills Nature Center will be included on the agenda for the December 18 meeting as an action item to approve the schematic design. Councilmember Miller reiterated that he is still not supportive of this project; however, it is the consensus of the council to move ahead with it. Councilmember Mavity pointed out that the council will expect the next version to take into account some of the issues discussed tonight. 3. Via (PLACE) Project Update Mr. Hunt stated that a second amendment to the PLACE purchase and redevelopment contract is needed to establish a new closing date and allow for a contingent alternative financing plan for the affordable housing units within the project's north components should it be necessary. Mr. Hunt added that staff asked Ehlers to do an analysis on the Plan B pro forma, and they found it is financially viable and would not require an adjustment to the amount of TIF provided under the Contract. Ms. Barton stated that the developer is still pursuing Plan A assuming that private activity bonds are not eliminated by Congress and that Plan B is a contingency plan. She added that Plan B also still meets the Metropolitan Council's affordable housing criteria. Councilmember Sanger arrived at 8:16 p.m. Councilmember Miller stated that he is very supportive of having a Plan B financing plan in place. Councilmember Mavity asked if the extension was approved on the DEED grant. Mr. Hunt confirmed it had been approved. Councilmember Mavity added that she wants this project to succeed and to keep moving forward. She is relying heavily on staff that this is a financially viable plan. Ms. Ingram, Kennedy & Graven, stated that Ehlers sees this as a viable option but that financing had not been finalized. Study Session -5- December 11, 2017 Mr. Hunt added that if PLACE is able to pull everything together, staff is planning on a December closing date. Councilmember Sanger asked if with the change in the AMI formula there will be more units with higher rents creating more of a parking issue. Ms. Barton stated that the parking requirements would all remain the same, even with the higher AMI. Councilmember Sanger stated that this continues to strike her as being unworkable. Councilmember Brausen appreciated the comments from Ehlers and still is in support of the project and the amendment. Mayor Spano stated that he is also supportive of providing the Plan B financing. Councilmembers Hallfrn and Lindberg also stated they are supportive. Mr. Hunt stated that the second amendment would be brought to the December 18 EDA meeting for consideration. 4. Walker Building and Historical Society Space Options — Continued Discussion Mr. Hunt stated that another party has a purchase agreement pending for the Walker Building but 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. Mr. Hunt explained that STEP is requesting up to $875,000 in financial support to enable it to enter into a purchase agreement for the Walker Building and make initial necessary repairs. STEP is also seeking another $100,000 each year, 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: Councilmember Brausen asked if STEP is in a position to do a campaign to raise the funds. Mr. Reise stated that the funding is needed upfront; however, STEP could do a capital campaign over a few years. He noted that there -is concern about the impact on their programs with this type of investment, adding it might diminish some ability to run their current operations. Councilmember Brausen asked if staff thinks the $100,000 for remodeling is reasonable and what it would be used for. Mr. Hunt noted that it is likely that such building repairs would be necessary. Councilmember Mavity stated that she has the same concerns as before and wants to be sure the council and staff understand what the city would be walking into. She is also concerned that past purchasers have walked away from the building. What did they know that the city may not? Mr. Reiser stated that there is probably $500,000 worth of potential repairs needed if historical renovations and an elevator were included. He noted that STEP wants to do further due diligence on the property, adding that they would also like to have an environmental assessment done. He added that everything would be subject to an appraisal. Councilmember Mavity asked if STEP moved to purchase the building and costs escalated, at what point would it walk away from the deal. Mr. Reiser stated that if the costs got too high, STEP will Study Session -6- December 11, 2017 not be interested in the building. He added that they want to understand the risk they are taking on and what they can handle fiscally. Mr. Harmening stated that if the city wants to pursue this, the council will need to recognize that it will take a minimum of $100,000 to $200,000 to bring the building up to code. To allow maximum use of the building, which would include the need for an elevator, the costs could be upwards of $500,000. He added that he is not saying is it not worth the investment — but it is more of when it will need to happen. Councilmember Sanger stated that she would like to go forward with this and to look for state grant money that is available for historical preservation, which cannot be applied for until the building is owned by STEP. She added that this is not a straight real estate transaction as it is for the oldest building in St. Louis Park, which is of historical significance. Councilmember Miller agreed but added that the council needs the details to better understand the use of the building, adding that he is in favor of this proposal in order to get the building. Councilmember Mavity stated that this is a unique opportunity; however, in order to access grants, there needs to be a National Historic Landmark designation. If a NHL designation is approved, costs will escalate. She stated that she wants to understand this process more before approving. Mr. Rieser added that STEP may not apply for historic designation. Mayor Spano stated that for $1.5 million, he would prefer that the city owned the building and be in control of the process, with STEP running their offices from there. He added that he wants to see STEP focus on their mission to feed and clothe folks and not to be managing a building. Councilmember Sanger stated that she understands the Mayor's viewpoint; however, she is not sure it is the council's job to protect STEP from themselves. Councilmember Hallfin, also a STEP board member, agreed that the city should purchase the building, and STEP could become a tenant, adding that tenants currently in the building should stay until their lease is up. Mayor Spano stated that if the city purchases the building, and lets all the tenants' leases run out, it gives the council time to discuss what to do about the Walker Lake area. He added that he has concerns about putting STEP in a position that would be difficult for them to handle financially, stating that they need to be focused on their mission and their work in the city. Mr. Harmening stated that if the city were interested in long-term ownership, a property management company would have to be hired to manage the building. Councilmember Brausen stated that there are too many unknowns right now for the city to purchase the building, adding he is not sure Walker is the best place for a community center either. Councilmember Lindberg added he still questions if the city should own this building, and he is comfortable with the EDA providing money to STEP for them to handle the building. Councilmember Sanger added that she prefers STEP being the owner, but would support the city buying it, as well. Study Session -7- December 11, 2017 Councilmember Miller added that he would also support the city buying the building. Councilmember Mavity added that she is not in favor of the city being a landlord, but she is willing to have the city participate. It was the consensus of the council to have the EDA be ready to make a purchase offer if the building becomes available. Councilmember Mavity asked staff to do research and present some examples of cities where this type of transaction has been done, adding that she would like to see how it has worked in other communities. Ms. Barton added that staff will need to research the city's uniform relocation and determine the EDA's potential liability. Communications/Meeting Check -In (Verbal) Mr. Harmening asked if the council is supportive of the American Legion project, which includes a special assessment for SAC and WAC. He stated that the agreement was drafted by City Attorney Mattick. Councilmember Miller asked if this is legal because the Legion is not a private owner. Councilmember Sanger stated that she has no problem with this but asked if it would be better to do a policy first. Councilmember Mavity shared these concerns about not having a policy in place, adding it seems that the city is acting as a grant maker to the non -profits in town, and she is worried about fairness on behalf of our residents. She stated that it needs to be a transparent process. Mr. Harmening stated that this is a loan, a special assessment, which goes with their rental -- agreement. IIe added that staff came up with this idea to assist the Legion in completing this project. Mr. Harmening added that the Legion does contribute to the community, and this is a unique situation. Councilmember Lindberg added that this is a creative solution and essentially the same type of loan we provide to residents for sewer line repair. Councilmember Mavity stated that she wants to be careful that the city must be consistent. She noted that having a policy in place for handling future situations would be the most transparent and fair. Councilmember Hallfin stated that he does not think there is need for a policy as this is a one-off, and the council approves this type of situation all the time. Mayor Spano said he likens this to a variance and is fine doing this. He added that if it comes up in the future or a trend is noticeable, then a policy would be needed. Study Session -8- December 11, 2017 Councilmember Brausen added that he would like to have structure on this, just as a variance has structure, and he would like to see a policy developed; however, he does not see it as an urgent need. Mr. Harmening stated that at the December 18 meeting, the council will be asked to approve a resolution on this special assessment. Subsequently staff will come back to council with a policy as to how this type of assistance for non -profits will be handled in the future. The meeting adjourned at 9:45 p.m. Written Reports provided and documented for recording purposes only: 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