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HomeMy WebLinkAbout2017/05/01 - ADMIN - Minutes - Economic Development Authority - RegularIfISt. Louis Park OFFICIAL MINUTES M INN ES 0 7 A ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINNESOTA MAY 1, 2017 1. Call to Order President Mavity called the meeting to order at 7:15 p.m. Commissioners present: President Anne Mavity, Tim Brausen, Steve Hallfin, Thom Miller, Susan Sanger, and Jake Spano. Commissioners absent: Gregg Lindberg. Staff present: Executive Director (Mr. Harmening), City Attorney (Mr. Mattick), Economic Development Coordinator (Mr. Hunt), Assistant Zoning Administrator (Mr. Morrison), Senior Planner (Mr. Walther), Transportation Coordinator (Mr. Sullivan), Community Development Director (Mr. Locke), and Recording Secretary (Ms. Pappas). 2. Roll Call 3. Approval of Minutes 3a. Economic Development Authority Meeting Minutes April 3, 2017 It was moved by Commissioner Spano, seconded by Commissioner !Culler, to approve the EDA minutes as presented. The motion passed 6-0 (Lindberg absent). 3b. Economic Development Authority Meeting Minutes April 17, 2017 It was moved by Commissioner !Culler, seconded by Commissioner Spano, to approve the EDA minutes as presented. The motion passed 6-0 (Lindberg absent). 4. Approval of Agenda It was moved by Commissioner Brausen, seconded by Commissioner Hallfin, to approve the EDA agenda as presented, The motion passed 6-0 (Lindberg absent). S. Reports 5a. Approval of EDA Disbursements It was moved by Commissioner Brausen, seconded by Commissioner Miller, to approve the EDA Disbursements. The motion passed 6-0 (Lindberg absent). Economic Development Authority -2- May 1, 2017 b. Old Business - None 7. New Business 7a. Establishment of the WooddaIe Station Tax Increment Financing District. Resolution No. 17-11, Resolution No. 17-12, and Resolution No. 17-13 Mr. Hunt presented the staff report and application from PLACE for Tax Increment Financing (TIF) assistance in connection with its proposed redevelopment at the southeast quadrant of Highway 7 and Wooddale Avenue and the northeast corner of W 36"' Street and Wooddale Avenue. He noted this project has been extensively reviewed at multiple study sessions, EDA and city council meetings over the past four years. He stated the redeveloper's application for tax increment assistance was reviewed at the February 13 Study Session, as well as the April 3 Special Study Session, where it received consensus support. Additionally, he stated that construction of the PLACE project is not financially feasible without the use of tax increment assistance. At the March 20 city council meeting, a public hearing date of May 1 was set for consideration of the proposed Wooddale Station Redevelopment TIF District. This evening will be the final step in the TIF process and will formally authorize the creation of the TIF district. Such authorization enables the EDA to designate tax increment generated from the completed PLACE redevelopment as partial reimbursement of certain qualified redevelopment costs incurred in connection with the construction of the project. Commissioner Sanger stated she will not support the motion, adding she has spoken at great length at other meetings about the PLACE project. She added that she is not in support of the TIF district, but if it were a different project, she would support establishment of the TIF district. She will discuss her view on the PLACE project later this evening. It was moved by Commissioner Brausen, seconded by Commissioner Miller, to waive the reading and adopt EDA Resolution No. 17-11, approving the elimination of a parcel from the Elmwood Redevelopment Tax Increment Financing District (Hennepin County TIF District No. 1312), within Redevelopment Project No. 1, in the City of St. Louis Park). The motion passed 5-1 (Commissioner Lindberg absent, Commissioner Sanger opposed). It was moved by Commissioner Spano, seconded by Commissioner Brausen, to waive the reading and adopt EDA Resolution No. 1712, approving the establishment of the Wooddale Station Tax Increment Financing District within Redevelopment Project No. I (a redevelopment district). The motion passed 5-I (Commissioner Lindberg absent, Commissioner Sanger opposed). It was moved by Commissioner Brausen, seconded by Commissioner Hallfan, to waive the reading and adopt EDA Resolution No. 1713, authorizing an Interfund Loan for advance of certain costs in connection with the administration of the Wooddale Station TIF District. The motion passed 5-1 (Commissioner Lindberg absent, Commissioner Sanger opposed), Economic Development Authority -3- May 1, 2017 7b. Public Hearing — Purchase and Redevelopment Contract with PLACE E - Generation One, LLC. Resolution No. 17-14 Mr. Hunt presented the staff report and PLACE E -Generation One, LLC's proposal to purchase 9 properties from the EDA and to construct a major mixed-use redevelopment at the southeast quadrant of Highway 7 and Wooddale Avenue and the northeast corner of W 36th Street and Wooddale Avenue. He stated PLACE agrees to purchase the assembled redevelopment site from the EDA for $6,245,000; to construct the project as proposed in the Final PUD; and then to be reimbursed for qualified site preparation costs up to $5,660,000 in pay-as-you-go tax increment generated by the project over a maximum term of 15 years. Mr. Hunt noted that Kim Anderson, 3248 Yosemite Ave. S., submitted an email to staff regarding EDA agenda item 7b for the purchase and redevelopment contract with PLACE E -Generation One, LLC, and requested it be entered into the public record. This email and attached documents are Clerk's File No. 57 and are on file in the City Clerk's Office. Commissioner Brausen asked Mr. Hunt if this is a standard finance mechanism the city uses to assist development projects. Mr. Hunt said yes. Commissioner Brausen also asked for clarification from Mr. Hunt, regarding if the city will take the additional tax revenue generated and utilize it as a loan for the developer under these extraordinary circumstances. Mr. Hunt stated it is technically a reimbursement of a portion of their property taxes to pay for certain extraordinary costs incurred during construction of the project. Commissioner Brausen also inquired if the amount generated during the term will be approximately $13 million in additional tax increment and if the proposal is to lend the developer $5.6 million. Mr. Hunt confirmed the amount of financial assistance recommended by the EDA's consultant is $5,660,000. That represents 15 years' worth of tax increment generated by the 26 -year district. Commissioner Sanger asked if there will be time for the public to comment on the Environmental Assessment Worksheet (EAW). President Mavity deferred to Commissioner Spano on this question, as the item is not a public hearing item on the city council agenda. Commissioner Spano stated that the council will take comments from the public and not turn them away. President Mavity opened the public hearing. Kim Anderson, 3248 Yosemite Ave. S., stated she is from the Sorenson Neighborhood. She stated she spoke to the director of the art school during a visit to the artist community at the PLACE project in California. She noted that this project does not run in the black and typically rums on reserves. She added there are concerns about the sustainability of the project. She stated it will be important for the city to establish mutual expectations with the developer on the front end of the project. She added that it is critical for the community to know what they want and how to hold this non-profit accountable, adding artists are not the only ones who need affordable housing. There are people from all areas that need affordable housing. James McDonaugh, 2840 Cavell Ave. S., stated he has been a homeowner in St. Louis Park for 42 years, and this week marks that anniversary. He is a building owner and has also served on many boards and commissions in the city. He has seen a tremendous Economic Development Authority -4- May 1, 2017 amount of development. He stated he is fully supportive of this development and pointed out an article in the Star Tribune which draws attention to St. Louis Park for seniors and others. He added that he intends to be active in the arts in St. Louis Park. Jamie Marshall, 2305 Aldrich Ave. S., 43, Minneapolis, stated he is the director of the St. Louis Park Friends of the Arts group. He noted that he encourages citizen engagement and connections and has been pleased with the whole process so far related to PLACE. I -Ie stated the project sets a great tone and expectation and has created healthy discourse. He added that the developer has received community feedback and acted on it. Local artists have also been invited into the conversation and have helped shape this project. He stated the affordable housing and studio component, along with retail display space for artists to show their local artwork, are wonderful, as is the performance space black box theater, which has now been added to the plans. The coffee shop adds to the casual event space, and he sees PLACE as committed to the arts and a partner and resource to the city and to Friends of the Arts. Mr. Velasco, PLACE developer, entered letters he had received about the development into the record. These letters are also are Clerk's File No. 57 and are on file in the City Clerk's Office. John Smith Koppes, 3640 Woodale Ave. S., stated he lives adjacent to the proposed development and is very encouraged by its sustainability and openness to other individuals, noting that he has submitted a letter of support to staff, also. Bob Ash, Minnetonka resident, stated he supports the project and has been involved in marketing for PLACE for over 5 years. He stated this is truly a design for the people and by the people. He stated that he plans to move into the development and at that time will reduce to one car or to no car. John Standal, 9955 Spring Road, Eden Prairie, stated he owns two buildings on West 36th Street and has owned one of them for 40 years. He stated that over the years, he has leased to many businesses but not any cafes. He stated this makes him think the whole thing is based on a fantasy, and he does not understand why the council does not see it. He stated he has a big investment on that street and has had a good relationship with the city these many years. If the project goes through, he will work with Mr. Valasco, although he is nervous about it. Sonja Almi, 3524 Webster Ave. S., stated she was involved in development and site clean-up for the Park Nicollet in St. Louis Park. At that time, reassurance was given that the development would never do anything that would that would harm the residents of St. Louis Park. Today she sees the intersection of Excelsior and Highway 100 out her window, and has seen five car accidents in one day. She asked how the PLACE development neighborhood can sustain 110 hotel units and 299 residential units, with no light rail (at this time), limited bus service, and a terrible interchange with Highway 7. She stated there was a coffee shop in Hoigaard Village which closed. Multiple businesses have closed along 36th Street, and are not sustainable. She stated if the city is brokering tax payer money, then it needs to be done differently. Economic Development Authority -5- May 1, 2017 Russell Griesmer, 3700 Wooddale Ave S., stated he is very excited for this development. He is in the children's books publishing business. If the project could add a free library as well, that would be awesome. Joanne Mesera, 6304 351h St. W., stated if this project is approved, she and her husband are considering moving due to the traffic and the intersection. She stated they love St. Louis Park and have been here four years; however, this is not the place to add that amount of traffic. Danielle Griesmer, 3700 Wooddale Ave. S., stated she is excited about the development and as a public health nurse, is happy to be here to voice her support for the project. Jeff Persigel, 3000 Hwy. 100 S., stated he applauds these efforts and is in favor of the development. He likes the idea of mixed use but is concerned about how light rail and parking will work. He asked if there will be additional parking or a park and ride structure. He stated that these concerns have not been adequately addressed. Additionally, he noted that PLACE is selling the council this idea but falling short on the details. That is concerning to neighbors, adding it is a bit of smoke and mirrors and a bait and switch. He would like the council to look at all the details before the vote. Kristine Viard stated she was here for the February 23 meeting, also. She asked why citizen's rights get subjugated on development after development, especially when this is not what residents want. She stated she is tired of the lack of planning, adding that the Cedar Lake Development was another project that was forced on residents. She stated there is no one on Texas who rides a bike, and this project will be an inconvenience to those who live there. She asked if St. Louis Park is going to become a sanctuary city like cities out west, noting that the council has not listened to the city's residents. She stated she wants to talk to the Governor about this, adding the council only agrees with the Metro Transit group and does what they want. President Mavity closed the public hearing. Commissioner Brausen stated he appreciated all the people who shared during the public comments. He assured the group that the council has been studying this project for a long time and has heard many opinions - both pro and con. He added that the council takes all comments seriously and won't be able to make a decision that everyone agrees with. He said that for those who have concerns about accountability on this development, the plan has performance guarantees and cost reimbursements in place. He stated that city staff has worked on complicated projects in the past like the West End and Excelsior & Grand and has made the plans work. He noted there will be 447 parking spaces but added that the idea is that this will be a transit -oriented development that encourages people to ride the light rail and to use the bike path. He noted the project was developed on the assumption that light rail would be in place. Commissioner Brausen added the development will have significant cost; however, it will create more than 100 new jobs. He stated the project is in an area of market demand; has affordable options; and includes environmental initiatives, with clean source energy on site. He stated that the development will be a community, which will hopefully be a model project. More traditional development is not necessarily meeting the needs of our evolving city. He added that he will vote in favor of the motion. Economic Development Authority -6- May 1, 2017 Commissioner Miller stated he has voiced a great deal of support for this development over several months, adding that he wants to talk about the TIF. He stated that the financing seems to denote debt, but it is simply reimbursing the developer for a portion of the property taxes they pay from the redevelopment. Over the course of 15 years, the developer will receive back $5.6 million in reimbursed property taxes. At that point, the city and others start collecting $1 million per year in property taxes, which goes to city roads, water, parks and recreation, etc. He stated that he fully supports this development. Commissioner Sanger stated that she has spoken at length about this project and appreciated the earlier comments from Ms. Anderson. She stated it is important for the entire community to hear what Ms. Anderson found out. She pointed out four themes that are of concern, including the huge parking issue and the assumption that many people would like to live without a car, or take mass transit. She stated that this assumption did not prove to be true in Venture, California, as there are significant parking problems, which have affected the vacancy rates in businesses there. Commissioner Sanger added that people want to drive, and many of the residents in the California development have 2-3 cars per unit, which is problematic. Commissioner Sanger also pointed out there was marketing hype for the development in California, adding that PLACE over promised and under delivered. Finally, she noted that the PLACE financial sustainability plan did not work, and there are serious financial challenges. She believes these are problems that will be seen at the PLACE project in St. Louis Park, as well, and she is distressed that city staff did not discover this information earlier when they did their due diligence work. Commissioner Sanger added there may be some good ideas in the project, but the city must pay attention to the details and how this project will negatively impact the wider community related to traffic and parking. She stated she will vote against it. Commissioner Spano stated he will support this project and noted that Commissioner Hallfin states quite often, "We look at these projects individually," and he is glad for that. He also thanked Ms. Anderson for the details she provided; however, he noted that the location and timing of the Ventura project is very different than the location and timing of the project in St. Louis Park. He added that the economy was different at the time the Ventura project was developed. He stated that he drives in the area four times per day. Over the last two to three weeks, he has timed how long it takes to get through the light, noting it is about 45 seconds. He added that the Excelsior & Grand project also had its concerns, and these were addressed, as were those at the West End. Commissioner Spano stated that when challenges come up, we adapt. He added that he understands many are not in favor of the project and recognizes the concerns. However, this is a project that is will build more incentive for people to walk, noting he would like to live in a place like this. He is in favor of the development. President Mavity stated she is ward council member in this area and has been engaging with community members regarding this development for the last 3-4 years. She stated it all began with the McGarvey site redevelopment and potential of light rail coming in. The city wanted to be smarter about envisioning a new community in this area. She stated she understands concerns raised but added that this developer has been one of the most responsive the city has ever worked with. Today it does not look like the same project that was introduced 3 years ago. She stated it is different because of input from the community. We will partner with the community and address things that come along the way. President Mavity added that traffic studies have been conducted, and while we acknowledge that the bridge over Highway 7 at Wooddale is not working well, the city is Economic Development Authority -7- May 1, 2017 working to make it safer, with better traffic patterns and bike trails that will go under the street. We are listening and making adjustments along the way. She stated the city is currently in the midst of Vision 3.0. The topic of the PLACE development has arisen in the visioning processes. She noted that participating in visioning is a great way for residents to impact the future of the city. She added that she is excited about this project. While it is extraordinarily complex, the city does not have as much financial risk as the developer has. She stated with light rail coming, PLACE will be a gem to show other communities what is possible. it was moved by Commissioner Brausen, seconded by Commissioner Miller, to waive the reading and adopt EDA Resolution No. 17-14, approving the Purchase and Redevelopment Contract between the EDA and PLACE E -Generation One, LLC. The motion passed 5-1 (Commissioner Sanger opposed, Commissioner Lindberg absent). 8. Adjournment The meeting adjourned at 8:25 p.m. Melissa Kennedy, Secretary Anne Mavity, President