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HomeMy WebLinkAbout2018/02/12 - ADMIN - Minutes - City Council - Study SessionSR. Louis Park OFFICIAL MINUTES M I N N E S 0 T A CITY COUNCIL STUDY SESSION ST. LOUIS PARK, MINNESOTA FEBRUARY 12, 2018 The meeting convened at 5:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Rachel Harris, Anne Mavity, Thom Miller, and Margaret Rog. Staff present: City Manager (Mr. Harmening), Engineering Director (Ms. Heiser), Senior Engineering Project Manager (Mr. Shamla), Economic Development Coordinator (Mr. Hunt), City Attorney (Mr. Mattick), Community Development Director (Ms. Barton), Housing Supervisor (Ms. Schnitker), Communications Manager (Ms. Larson), and Recording Secretary (Ms. Pappas). Guests: Rachel Robinson, Julie Schmelzer & Lukas Wrede - The Nest; Bill Stoddard - Stoddard Developers; James Lenhoff - Ehlers; Mike McGarvey & Shawn Gergens - SRF Consultants; Matt Higgins - Kimley Horn. 1. Future Study Session Agenda Planning — February 20 & 26, 2018 Mr. Harmening presented the proposed Study Session agenda for February 20 and 26, 2018. Councilmember Mavity asked about the March 12 meeting date, and how it will be handled since 3 councilmembers will not be in attendance that evening. Mr. Harmening stated that the Bridgewater discussion will be moved to March 26. He added that he will shuffle topics, and if the discussions for March 12 need to be moved to a different date, he will make those changes. Mayor Spano stated that he prefers the joint meeting with the school board to be held on a different day so that he can attend. Councilmember Rog asked why there is another 45 -minute discussion on the new solid waste contract scheduled. Mr. Harmening stated that the 5 -year contract will expire, so all proposals, including cost considerations, must be reviewed with the council before April 1 in order to prepare for the new contract start date of September 30. 2. Proposed Tenant Protection Ordinance and NOAH Preservation Workgroup Initiatives Ms. Schnitker explained that at the September 25, 2017, council study session, staff presented a draft ordinance that would implement an Advance Notice of Sale requirement for owners of multi -family residential rental buildings. The ordinance required owners to give advance notice to the city prior to entering into a purchase agreement for the sale of the building. Staff also provided an update on the status of several other NOAH preservation strategies being considered by the council, along with a summary of the input from the two rental community meetings. Council directed staff to convene a workgroup with representatives from Minnesota Multi - housing Association; the St. Louis Park rental industry; and representatives from agencies Study Session Minutes -2- February 12, 2018 advocating for NOAH preservation strategies to discuss strategies being considered by the council and determine if there is middle ground for a workable solution. Ms. Schnitker stated that the workgroup met three times, generated several strategies for preservation, and reached general agreement to move forward. She noted that tonight the council would review a draft ordinance implementing a three-month tenant protection policy for NOAH property residents when there is a transfer of ownership. Staff will also provide council with an update on the Legacy Program, which encourages owners to transfer ownership of their NOAH properties to preservation buyers. Councilmember Miller asked staff to explain the 4D tax classification. Ms. Schnitker stated that it is a property tax classification for properties that have received funding from a government agency, and they must then provide rent restricted units. The owner receives a lower tax classification on the rent restricted units. She added that the benefit to the property owner is $40 per month per unit in tax savings. She noted this tax savings is provided by the state to owners. Councilmember Miller stated he assumes the workgroup is in favor of the ordinance. Ms. Schnitker stated yes, in general they are supportive. Councilmember Mavity asked about the 90 -day notice and when it is triggered. Ms. Schnitker stated that it starts on the first of the month following the month in which the owner sends out the required notice Councilmember Miller asked what constitutes ownership change. Mr. Mattick stated it is when there is a title transfer. Councilmember Brausen asked about a clear definition for affordable housing, and if it is necessary. Ms. Schnitker stated that it is strictly defined by the rent amount, utilizing the HUD rent indexes and not the individual household income of residents. Councilmember Brausen stated he would prefer there is clarity around "affordable," so everyone knows what that means. Councilmember Brausen asked how long the 90 -day notice is binding. Mr. Mattick stated after 91 days, there are no tenant protections. With regard to relocation costs for tenants, if the owner is in violation, they will pay the relocation costs, plus a $500 penalty. Councilmember Mavity asked if the landlord does not pay the relocation costs within 30 days, can the fines be increased. Councilmember Harris asked also if this could be tied to the landlord's rental licensing. Mr. Mattick stated that the rental license could be revoked; however, he reminded the council that if the landlord's license is taken away, if affects everyone living in that building. Councilmember Mavity understood this but stated that she wants to be sure the landlord will not repeat the violation. Councilmember Brausen stated he is totally supportive of this ordinance and thanked staff and the workgroup for their work. Councilmember Rog said that she, too, is in support of the ordinance. She stated that it moves the city in the right direction, adding that high impact solutions will take an investment of city resources. She noted that the city could incentivize the construction of more affordable housing and also fund more avenues to home ownership. She added that the city needs to get bolder with inclusionary housing and to look at servicing those in lower housing brackets. She thanked the group for their work. Shady Session Minutes -3- February 12, 2018 Councilmember Mavity added that she too is grateful to staff and the workgroup for this process, adding it is a real model on how the city does its work. She stated as the city moves forward, she wants to make sure the voices of the tenants who are impacted are at the discussion table. Ms. Schnitker noted that there are tenant advocates participating in the work group. Councilmember Hallfin asked if there were other issues noted, aside from Meadowbrook. Ms. Schnitker stated there were no other issues that staff was aware of. Councilmember Hallfrn appreciated the work done, adding that it makes perfect sense to him and is a good first step. Councilmember Harris thanked the staff and workgroup for their proactive approach of getting multiple groups together, stating that she was impressed with their efforts. She stated that she has met with residents and noted that the city has more to do, especially with many in Ward 3 who are low-income families. She stated that these people need more help, and the ordinance is a great first step. She supports the ordinance and looks forward to more discussion. Councilmember Miller stated that he is also supportive and asked if the 90 days was increased to 180 days, would that change the workgroup's perception. He stated that he doesn't feel 90 days is enough time, adding there are many vulnerable people in our city. Ms. Schnitker replied saying that is a significant change, and the workgroup would need to reconvene to discuss that further. Councilmember Miller asked about the financial incentive for legacy transfer. Ms. Schnitker stated that she is not able to answer that yet, but noted that it is a way to preserve NOAH properties. Many owners said they like their tenants and would like to see their property remain a NOAH property. A workgroup is meeting in March to begin work on this strategy. Mayor Spano said that he is also supportive and appreciative of the work done. He added that it is a good first step. He added Minneapolis Mayor Frey will be working to implement tenant protection regionally, and St. Louis Park is now ahead of the game. He stated that we need other communities around us to do the same. It will be interesting to see how it unfolds. Councilmember Mavity noted the legacy program and tenant protections, asking staff if the city lets people know about notice times in their own languages. Ms. Schnitker stated that prior to the July effective date, the city will inform owners of the ordinance and give them a packet of information, with the option for translation available if needed by calling the city. Councilmember Mavity added that the 4d tax classification makes sense, adding that she wants to be cognizant of protections for tenants. She pointed out that the "non -renewal for cause" may not be the best option, and the city will need to be cautious. Councilmember Rog stated that at the end of the year, it would be helpful to know how many people were impacted. Councilmember Harris asked how many buildings in St. Louis Park are NOAH. Councilmember Miller noted that there are 71 B and C classes. Ms. Schnitker added that C class buildings are typically NOAH buildings. Councilmember Harris asked how many property owners are aware of these proactive tenant protections. Ms. Schnitker stated that they should all be aware because there were two open meetings for owners, and about 60 owners attended. She added that staff has also received emails and phone calls from owners. Councilmember Miller stated that he would like staff to look at rehab financing, as well as legacy transfer and more ways to directly invest in this issue. He stated that it is the city's Study Session Minutes -4- February 12, 2018 responsibility to provide relief and to help our residents find more ways to relieve financial strains. Councilmember Brausen added that the city has a high percentage of affordable housing in both the single-family homes and condo markets. He asked for strategies for the city to assist in the multi -family residential rental market, also. Ms. Schnitker stated that the city currently has two affordable home programs and that a plan to explore expansion of these programs is on staff s work plan for 2018. Councilmember Rog noted Oxford Crossing in Hopkins, which is 100% workforce housing. She asked why St. Louis Park had not been approached on a similar project near the light rail. Ms. Schnitker stated that we have been contacted by both Project for Pride in Living and Aeon to discuss possible housing development sites. Councilmember Mavity pointed out that workforce housing is actually affordable housing, adding that PLACE approached the city about affordable housing near the light rail, and the city accepted the proposal. Mr. Harmening stated that this topic will come back to the council for the first reading March 5 and will be effective July 1. 3. Request for Funding for the SLP Nest Ms. Barton noted the report and introduced Mr. Wrede, St. Louis Park High School student, and Ms. Schmelzer, parent volunteer. Ms. Schmelzer provided an update on the activities relating to the creation of the SLP Nest and stated that the group of high school students has organized to become a 501(c)(3) non-profit. She added that they have built awareness and created important community partnerships, raising over $7,000 in donations to date. The students have created a brand logo and tagline; entered into the preliminary business agreement with Muddy Paws Cheesecake Company; and partnered with the school district's College and Career Office to design accredited internships for students involved in the SLP Nest. Mr. Wrede spoke about the group's vision, mission and purpose for The Nest - allowing and encouraging expression for all students in St. Louis Park. He stated that The Nest will support students, and students will want to make it their own at this crucial stage of their lives. Ms. Schmelzer stated that the plan is to open their doors on September 4, 2018, adding they are looking at three options — Library Lane, West Lake Street, and Wooddale — all locations within walking distance of the high school. She stated that they are in the process of making presentations to community non -profits, including Park Nicollet Foundation, St. Louis Park Rotary, Hennepin County, and other community groups, including the city council tonight. Ms. Schmelzer stated that they are asking the council for seed money of $25,000 to fund rental costs for the first year of operation and will also be asking the school board for funding. Councihnember Miller stated that he has been working as an advisor to the group, and it has been an enjoyable experience. He stated that seed money is critical to helping the group take the next steps. Study Session Minutes -5- February 12, 2018 Councilmember Rog added that she is excited about this idea and appreciates the power of seed money to get a project going. She stated that it is the council's right, responsibility, and duty to help fund this project. Councilmember Brausen stated that The Nest is the type of community building request that he would generally support, but he is uncomfortable with the council providing the funding for one year of rent. He added, however, that assuming it is seed money, he would be in favor. Councilmember Harris thanked the students and parents for their work, adding that it is an exciting project. She stated that she is learning about all the non-profit groups that come to the council with monetary requests, and did some investigation into The Depot to learn more about how this might work. She stated that it is a big idea, and she wants to hear more about it, along with their plan for future funding. She noted that there might be opportunities to eliminate overhead costs by utilizing already existing public buildings in the city versus renting and renovating. She suggested the Lennox Community Center as an option. Mr. Wrede noted that the Lennox building would not feel like it was the students' own, and they would hope to create their own space in their own location. Ms. Schmelzer added that the location must be within walking distance of the high school, and that is why they are looking in the Walker Lake area. She noted that they would need $200,000 total on an annual basis to keep The Nest running, including having a part-time staff person. Later an executive director and full-time staff person would be added. Councilmember Mavity stated that she loves that the group is so entrepreneurial; however, she has concerns with the implementation. She stated that in some ways, the group is asking the council to be a venture capitalist and take a high risk here. She noted that when the council is asked for funding, usually the requests are from already well-established non-profit organizations. She stated that a $200,000 budget is a heavy lift, and she has concerns about the sustainability of this business model. She asked if the group had talked with "Open for Business" yet. Ms. Schmelzer stated that they have. Councilmember Mavity stated that the school board providing money will be a challenge, as well. She stated that she needs more clarity on what this means long-term. Would there be an annual request to the city or just this initial request for seed money? Is there a plan in place to replace that? Ms. Schmelzer stated that the group would anticipate coming back each year for a couple of years. After three years, they would have resources lined up. She stated that they are continuing to work on pursuing future funding; however, they are not certain what that will look like yet. She stated that they hope to find a place first and then pursue the funding. Councilmember Mavity stated that she is concerned about the sustainability of the business model. While she is not opposed to taking risks, if the council approves this, she would want it to be contingent on the group raising matching dollars. Ms. Schmelzer added that the matching component may also spur folks on to donate more. Councilmember Hallfin stated that $25,000 is not a lot of money and is within the discretionary spending limit of the City Manager. He said this is a great unknown. He is torn but appreciates all the work that has been done. He added that since he was in high school, many projects like this have come and gone in the city. While it's a great idea, similar ones have failed time and time again. He stated that he is not saying that he will not support the council giving financial help, but the group has no track record and other requesting non -profits do. Councilmember Miller agreed that the group is asking the council to take a gamble on this idea Study Session Minutes -6- February 12, 2018 Mayor Spano stated he is in favor of providing the $25,000 for one year but added that the council will treat the group like young adults. They will be under a level of scrutiny by the council, as are all non -profits who request this type of assistance from the city. He added that the council wants the group to be successful, but added that the council needs to rely on their past experience. Mayor Spano stated he has spoken to the Hopkins mayor and also the person who runs The Depot. The Depot has four different funding partners, who provide 70% of their operating capital. He stated that he is not sure the group can be successful without the school district, and the city cannot be their only public support. He added that foot traffic is very critical to The Depot's business, as well. He asked if this is a student -focused program, what happens in the summer. What happens if Muddy Paws pulls out of the project at a later date? What happens if the draw is not there to help bring youth in? He noted that he is glad that the group will speak to the school district and rotary, and he offered a contact to them from Twin West and Friends of the Arts as well. He stated that he is fine with providing the $25,000 seed money for one year, but with the understanding that they return and explain to the council how they will get the rest of the money needed. He added that it seems like a lot of work to meet the opening date of September 4. Mr. Harmening asked when they would need the $25,000 from the city. Ms. Schmelzer stated most likely in June or July, depending on the lease agreement. Mr. Harmening stated that he is hearing varying levels of support from the council. He said that staff will come up with a draft agreement, with benchmarks for gathering other matching monies and an established set of rules. This agreement will then be brought to the council for review. Ms. Schmelzer added that the students are becoming entrepreneurs and setting up a Go Fund Me page. She stated that they need a place where they can put down their cell phones and work on becoming better humans, and they hope to use this space to do that. 4. SLP Park Ventures, LLC's Application for TIF Assistance — Platia Place Apts & Hotel Mr. Hunt presented the report. This project is proposed at 9808 and 9920 Wayzata Blvd. and is an application to the IrDA for consideration of a purchase and redevelopment contract to reimburse the developer for up to $3,474,000 in extraordinary site preparation costs through TIF, generated by the apartment and hotel projects outlined in the staff report. Mr. Stoddard noted that the project is at the former Santorini Restaurant site at the northwest quadrant of Highways 394 and 169. The project will be a six -story hotel and six -story apartment with 149 units, 15 of which will be affordable at 10% or 50% AMI. Mr. Stoddard added that the hotel will have 100 rooms. Mr. Hunt stated that with this redevelopment, the preliminary plat and PUD will come back in March to the council for final approval. He also noted that the area has poor structural soils on top of a water bed, so the buildings will have pilings. He added that the city is hoping to maximize the potential on this site, and therefore was not interested in a single -story height building. This project meets with that vision. Mr. Stoddard thanked staff and the council and noted that SLP Park Ventures will need TIF in order to move forward with this project. Study Session Minutes -7- February 12, 2018 Councilmember Brausen stated that the 10% affordable is acceptable. The request seems like a reasonable amount on the city's bonding dollars, and he will support the TIF. Councilmember Miller also was in favor, adding that while he typically prefers low-density projects, this is an exception. He wondered why they are not able to construct a taller building there. Mr. Stoddard stated that anything over 7 stories is not in demand. It is also more difficult to find a lender who will support this type of project because of the construction costs. Councilmember Rog thanked Mr. Stoddard for including the 10% affordable housing, which is the minimum required. She asked if he could provide more three-bedroom units, which would be very helpful to families in St. Louis Park. Mr. Stoddard stated that they put in five 3 -bedroom units, and 1 is affordable, but that is all that is required. Typically, they are more difficult to rent. Councilmember Harris stated what was presented is a great investment, and she is in support of the TIF request. Councilmember Mavity and Mayor Spano were also both in favor of the TIF request Councilmember Rog pointed out with the recent passage of the city's Climate Action Plan, the city is now positioned to adhere to our commitments, and the developers should be advised of this, as well. Mr. Hunt replied that the developers are aware of our green building policy. They are at 70% more compliance currently than what the Climate Action Plan calls for at this time. Mr. Stoddard added that the apartments will be solar ready, and both apartments and hotel will have electrical charger stations and DORA. Mayor Pro Tem Mavity (Mayor Spano stepped out of the room) stated that it is the consensus of the council to move forward with next steps on this project. Mr. Hunt stated that staff will bring business terms and the final contract for formal approval, including the final PUD and Preliminary Plat approvals, to the council at a future date. 5. Louisiana Avenue Preliminary Layout Discussion — Project No. 4018-1700 Mr. Shamla presented the staff report. He noted that in 2019 the Louisiana Avenue Bridge over Minnehaha Creek is proposed to be replaced, along with the rehabilitation of Louisiana Avenue between Louisiana Circle and Excelsior Boulevard. Mr. Shamla explained that a corridor study was done just north of Oxford Street to ensure the bridge reconstruction project fits well with the future SWLRT and with the station area redevelopment study. Kimley Horn has developed a preliminary layout for the entire corridor. The scope of the project includes: • Bridge Replacement • Construction of a trail connection under Louisiana Avenue at Minnehaha Creek • Street reconstruction • Bikeway along Louisiana Avenue (cycle track) Study Session Minutes -8- February 12, 2018 • Sidewalk reconstruction • Streetlight replacement • Intersection updates at Louisiana Circle and Oxford Street • Water main replacement • Storm sewer replacement Mr. Shamla stated that total project costs are $11,222,800, and funding will be provided by a combination of MSA, pavement management funds, state bonding funds, utility funds, and General Obligation Bonds. He continued that the project is proposed to be constructed in three phases. Councilmember Mavity asked about the golf course and if there is a trail there to connect to the creek. Ms. Heiser stated that Minnehaha Creek Watershed is interested in building a connection to Excelsior; however it would not fit under the Excelsior Avenue Bridge. She noted that this design would make things ready to connect to the creek. Councilmember Mavity asked where the bike trail would connect. Ms. Heiser stated that she will get that information to the council. Mr. Shamla stated that traffic on Louisiana is 13,000 vehicles per day and projected to go up to 19,000. The street is currently not wide enough to accommodate a bikeway, and the recommended design would cost about $1,580,000. Mr. Harmening stated that to provide a bikeway on Louisiana Avenue would require widening the street. Councilmember Brausen asked since Louisiana is a state aid road if there would be substantial funding from the state for the project. Ms. Heiser stated yes, and staff is actively pursuing it. She added that the majority of funding will be paid from state aid funds and General Obligation Bonds. Mr. Harmening added funding requests for this project will require the city to borrow against future allocations. Councilmember Hallfrn stated that this project was on the agenda at the retreat and has been in planning for a while. He said that he hopes the city's share of costs will be lower than the $11 million, adding he likes the possible calming effect of the roundabout at the hospital entrance. He asked how old the current bridge is and how long the new bridge would last. Mr. Shamla stated that the old one is 50 years old, and the new one would last about 70+ years. Councilmember Rog asked about access to the trail from Meadowbrook and providing a comiection to the ERA Apartments. Ms. Heiser stated that staff is still working to contact ERA to discuss it. Councilmember Rog stated that in line with the city's racial equity goals, we will need to make sure that access to the trail is a priority. Mr. Harmening stated that there is currently access. Ms. Heiser said that there is also a bridge at the MSC, which is maintained by the city. Councilmember Miller asked if the height of the bridge decision is urgent. Ms. Heiser stated yes, and with the trail under the bridge. Mr. Harmening also pointed out that it will be important to do more cost benefit analysis of roundabouts versus signals. Councilmember Harris asked how bikeways work in the roundabout. Ms. Heiser pointed out that there is a slip ramp/trail that a biker can drive into in a roundabout to be safe from traffic. Study Session Minutes -9- February 12, 2018 Councilmember Brausen agreed with the proposed plan, noting that this is a major thoroughfare, and he is in favor of lights versus two roundabouts there. Mayor Spano stated that the phase 2 timing will not occur until SWLRT is constructed. Ms. Heiser also pointed out that with one of Methodist Hospital's entrances on this corridor, access to the hospital will need to be maintained. This will need to be coordinated in the SWLRT project. Ms. Heiser stated staff will bring this back to council at the public hearing on March 5. 6. Update on Activities/Initiatives in Historic Walker -Lake Area Ms. Heiser introduced Mike McGarvey and Shawn Gergens, landscape architects with SRF Consulting. Mr. McGarvey presented the preliminary plan ideas to the council for review. He pointed out opportunities for public art; rail corridor screening; pedestrian crossing; streetscape character; a potential pedestrian street area (woonerf); green alley; stormwater; lighting and furnishings. Mr. McGarvey also noted a plan for bicycle facilities along Wooddale and Lake Street; a mini roundabout at the Wooddale and Lake Street intersection for slowing traffic; and potential public gathering space. Councilmember Harris appreciated the bikeway on Lake Street and asked for clarification of the bikeway design. Ms. Heiser stated that in order to be consistent for the corridor, the bikeway installed would be one or the other. Councilmember Rog stated the plan was exciting to see. She loves the woonerf but doesn't see any additional sidewalks proposed. Mr. McCarthy pointed out that there are sidewalks along the east side of Lake Street near the stadium, with a connection to the stadium. Councilmember Rog liked the ideas and recommended small businesses; historic signage; partrrering with the historical society for landscaping; and a railroad track barrier. She added that this plan will be such a bonus for STEP clients, as well. Councilmember Miller stated that this is a very exciting first step and liked all the elements. He stated that he likes the head -in parking, as it goes well with this area, and the idea of historic lighting; historic furniture; and enhanced branding, with plaques which display the area's history. He likes the roundabout and approves of anything to enhance slowing traffic there. I -Ie added that he likes the sidewalks near the stadium and would like to see more businesses in the area, also. Councilmember Harris stated that part of this is in Ward 3, and she is very interested. The design is exciting, and she likes the idea that the area will be walkable. It is a tremendous facelift to the area. She asked what the green alley is. Mr. McCarthy stated that the green alley space is a way to facilitate storm water treatment and add elements of green space or narrow areas of plants and infiltration. Councilmember Brausen liked the concepts and design ideas, adding that he is interested in the price tags, as well. Ms. Heiser stated that staff will come back with costs and potential funding after working through the design with stakeholders. Councilmember Mavity stated that she generally likes the concepts, the businesses, and the green alley. She asked what redevelopment possibilities are in this area. She wants to be sure there is Study Session Minutes -10- February 12, 2018 enough street structure and a way to draw people - like perhaps a dog run or park, food trucks, or Farmer's Markets on the green space. Mr. Harmening also pointed out the large green space and the stadium area as places that can be utilized on game days. Mr. Harmening noted that this can be discussed further in the meeting with the school district. Councilmember Rog added that the city needs to be proactive around Central Community Center, especially with the Spanish Immersion School leaving soon. Communications/Meeting Check -In (Verbal) Councihmember Brausen noted the CDBG written report and stated in the future the council will need to look at food security issues, along with affordable housing. Mayor Spano asked if the new solid waste contract will have any impact on residents' utility bills. Mr. Harmening stated that it depends on the contract the city enters into for solid waste collection in October, adding that the council will have an opportunity to review it. Councihmember Brausen stated that the city should look at the option of doing organics recycling herein St Louis Park. Mr. Harmening disagreed, stating that would be problematic with the high volume of trucks and the smell that would be created. Mr. Harmening distributed a list of subject priorities for meeting agendas for upcoming council meetings. He noted that items could be added. The meeting adjourned at 10:00 p.m. Written Reports provided and documented for recording purposes only: 7. Proposed Allocation of 2018 Community Development Block Grant (CDBG) 8. Health in the Park Update 9. 2018-2022 Organics and Yard Waste Processing Proposals 10. Temporary Suspension of Local Gambling Tax Melissa enned , City Clerk