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HomeMy WebLinkAbout2018/03/12 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA MARCH 12, 2018 (Councilmembers Hallfin, Harris & Miller Out) 6:30 p.m. STUDY SESSION – Community Room Discussion Items 1. 6:30 p.m. Future Study Session Agenda Planning – March 19 & 26, 2018 2. 6:35 p.m. Friends of the Arts (FOTA) Annual Update 3. 7:05 p.m. Police Officer Attendance at City Council Meetings 7:35 p.m. Communications/Updates (Verbal) 7:40 p.m. Adjourn Written Reports 4. Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC 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: Study Session Meeting Date: March 12, 2018 Discussion Item: 1 EXECUTIVE SUMMARY TITLE: Future Study Session Agenda Planning March 19 & 26, 2018 RECOMMENDED ACTION: The City Council and the City Manager to set the agenda for the Special Study Session scheduled for March 19 and the regularly scheduled Study Session on March 26, 2018. POLICY CONSIDERATION: Does the Council agree with the agendas as proposed? SUMMARY: This report summarizes the proposed agenda for the Special Study Session scheduled for March 19 and the regularly scheduled Study Session on March 26, 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 – March 19 & 26, 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 March 12, 2018 (Item No. 1) Page 2 Title: Future Study Session Agenda Planning –March 19 & 26, 2018 MARCH 19, 2018 6:15 p.m. – Special Study Session – Community Room Tentative Discussion Items 1. Bridgewater Traffic Study – Community Development (60 minutes) Staff will present a concept multi-modal plan and traffic study for Monterey Dr., and a traffic engineer from SRF Consulting will present the traffic study conducted for Bridgewater Bank Headquarters development proposal. Staff will answer any questions regarding the traffic studies. MARCH 26, 2018 6:30 p.m. – Study Sesssion – Council Chambers Tentative Discussion Items 1. Future Study Session Agenda Planning – Administrative Services (5 minutes) 2.The Nest Update – Community Development (45 minutes) City staff and representatives from the Nest will provide an update on activities that have occurred since the last study session discussion and look for direction from the Council. 3.2018 Bonding Overview and WHNC Financing Update – Administrative Services (60 minutes) Staff, bond attorney, and financial advisor will review the upcoming 2018 bond sale and review the financing options for the WHNC project in 2019. 4.Critical Incident Planning Communication Strategy Follow-Up – Police & IR (60 minutes) Following the four sessions presented to city council in 2017 regarding the Police Department’s service delivery model, the council requested a more in-depth discussion of crisis communication procedures. 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. End of Meeting: 9:25 p.m. Written Reports 5. 2040 Comprehensive Plan Update 6. 2018 February Monthly Financial Report 7.Market Value Overview 8. Ten West End Update Study Session Meeting of March 12, 2018 (Item No. 1) Page 3 Title: Future Study Session Agenda Planning –March 19 & 26, 2018 Study Session Prioritization & Projected Discussion Timeline Priority Discussion Topic Comments Date Scheduled 4 Affordable Housing Preservation Policies/Ordinance First reading of TPO approved on 3/5 2nd reading 4/16 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 Policy for Funding Non-profits Part of 2018 Budget discussion on 10/9/17 April 9, 2018 4 Finalize Outcomes of Council Retreat (Includes Norms) May 7, 2018 3 The Nest Postponed to 2018 per their request March 26, 2018 3 Creating an Affirming Environment for Transgender Individuals 3 Design Guidelines for New Home Construction 3 Develop a Youth Advisory Commission 2nd Qtr 2018 3 Historical Society Space Part of Walker Bldg discussions on 8/28/17 & 11/20/17 and 12/11/17 Ongoing 3 Living Streets Policy After Vision 3.0 work is completed 2nd Qtr 2018 3 Off-sale Liquor License Regulations May, 2018 3 Overview of Crime Free Ordinance 3 Revitalization of Walker/Lake Area Part of Preserving Walker Building Reports: 8/28/17, 9/25/17, 1/22/18 Ongoing; Design Study Feb 12, 2018 3 SEED’s Community Green House / Resiliant Cities Initiative 2 Bird Friendly Glass 2 Dark Skies Ordinance (Light Pollution) 2 Community Center Project Other Comments / Suggested Topics (Not yet prioritized.) Zoning Guidelines for Front-facing Buildings with Windows Not Papered Over Establish a Local Housing Trust Fund Discuss and Evaluate Our Public Process Easy Access to Nature, Across the City, Starting w/ Low-income Neighborhoods 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: March 12, 2018 Discussion Item: 2 EXECUTIVE SUMMARY TITLE: Friends of the Arts (FOTA) Annual Update RECOMMENDED ACTION: No action is needed at this time. POLICY CONSIDERATION: Are the activities and programs being provided by FOTA in keeping with the council’s expectations? SUMMARY: The City has been working with Friends of the Arts in a partnership since 2006. FOTA supports and advocates for the arts on three levels: individual engagement; support of professional artist and arts organizations; and community based programming. These three levels of engagement are served by: Arts for Life Scholarship; Arts & Culture Grants; and community-wide arts projects that feature opportunities for participation, education, and observation. FOTA also serves as the fiscal home of six community based arts organizations: St. Louis Park Community Band; Maggie’s Farm Theater; The Park Theater; Bookmark in the Park; Gift of Music; and the Middle School Theater program. Our Town Sings was the big project for 2017. There were 5 concerts, featuring a diverse group of artists, with different styles and cultures represented. The concerts were held at the Wolfe Park amphitheater and at the ROC. Approximately 1000 people these events. Our Town Sings was so popular that FOTA is planning to continue some of this series and use choirs from St. Louis Park. The 2017 Annual report is attached for your review. FINANCIAL OR BUDGET CONSIDERATION: The City contributes $40,000 annually to FOTA. This money is used for operational purposes and is leveraged to bring in funding from others. FOTA is currently working on its budget and planning for 2018 and is hoping the City will consider funding them at this same level. VISION CONSIDERATION: St. Louis Park is committed to promoting an integrating arts, culture and community aesthetics in all City initiatives, including implementation where appropriate. SUPPORTING DOCUMENTS: FOTA Annual Report Prepared by: Cindy Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager CURRENT FRIENDS OF THE ARTS PROGRAMS Arts for Life Scholarships In July, we honored Friends of the Arts founder and long-time president, Susan Schneck, by renaming the program in her honor, announced at a small fundraising event. We have seen a 33% increase in applications, and have increased awards with fundraising. In 3/4 2017 deadlines, we have awarded $4,462 to 21 recipients. Scholarship recipients are diverse in race/ethnicity. 2016-17 recipients were 34% white, 31% Black or African American, 9% Hispanic, Latinx or Spanish origin, 2% Asian, and 23% other or multiple races. This program serves primarily youth (77%), and achieves our goal of reflecting the diversity of St. Louis Park Public Schools students. Gift of Music In 2017, we have received 44 donated instruments, sending each for inspection and repair when needed. A partnership with St. Louis Park music teachers ensures instruments make it into the hands of students in need. Arts & Culture Grants FOTA partnered with city staff to lead an information session to help expand participation and applications. FOTA also reviewed draft proposals and connected applicants with community groups and leaders. Four awards, including three first-time applicants, are being recommended to City Council for 2018 projects: ¥Caron Bell - $8,631 for a mosaic mural commemorating the ROC ¥Alysha Boie - $5,000 for the inaugural St. Louis Park Arts and Craft Fair ¥The Park Theater Company - $3,500 for a collaborative musical performance at the ROC ¥Twin Cities Community Gospel Choir - $2,869 for a gospel music conference and concert Our Town Sings We hosted five concerts and community sings at the Wolfe Park Amphitheater and the ROC, featuring a di- verse group of artists and musical styles that are not often found in St. Louis Park. Local businesses and community groups served as volunteer ushers for our ~1,000 attendees over the summer. ¥The Twin Cities Community Gospel Choir ¥The Give Get Sistet, an a cappella group of six women of color ¥The Somali Museum of MN Dance Troupe ¥The inaugural St. Louis Park Unity Sing, with Justice Choir – Twin Cities and Prairie Fire Lady Choir ¥Mark Bloom and The Hurst Family Experience, fusion of Jewish and African American gospel music St. Louis Park Unity Sing Building on the success of Our Town Sings, we will produce the second annual St. Louis Park Unity Sing at the ROC in May to bring together the entire singing community of St. Louis Park. A songleader and house band will lead the community in singing from the Justice Choir Songbook, interspersed with diverse local guest choirs from schools, faith communities, and community groups. We will close the Unity Sing with a brand new song, written by local poets and musicians to celebrate the unity and diversity of St. Louis Park, that will be sung by all and recorded. Poetry, Spoken Word, and Storytelling Circles In 2018, we will revive the poetry circles that were started in 2010 with Our Town Verses and Voices. We will host four poetry, spoken word, and storytelling circles, with a goal of inclusivity and diversity of voices City Art Lab We piloted a new program in the summer of 2017 at city parks to provide art-making sessions that engage our local community in the materials and tools of contemporary visual arts. We partnered with a local professional artist and educator to provide materials, tools, and guidance for participants to explore visual arts techniques. Next year, City Art Lab will work with four local artists, each leading a free workshop series provid- ing authentic exploration into the techniques and tools they use in their visual arts practice. City Art Lab will connect our local artists with the St. Louis Park community, and result in the completion of a collaborative public artwork by the four artists and program participants. Study Session Meeting of March 12, 2018 (Item No. 2) Title: Friends of the Arts (FOTA) Annual Update Page 2 UPCOMING PROGRAMS, 2018 Our Town: Stories from the Park: A Community Film Fest The Our Town Community Film Fest will offer a platform for the community to share stories and perspectives on life in St. Louis Park through film. A 4-part workshop in partnership with FilmNorth will bring talented filmmakers and educators to St. Louis Park to work with participants. We will host storytelling and filmmak- ing workshops with service organizations in our community to provide access to arts for underserved and un- derrepresented community members. A celebratory screening at the West End will cap off the Fest. Community Art Exhibit Partnering with our local art gallery, Jean Stephen Gallery, we will produce a community art exhibit in Octo- ber, 2018 featuring professional artists, hobbyists and youth. This responds to the expressed desire for more exhibiting opportunities from local artists who participated in our 2014 exhibit at the West End. Partner Programs, 2017 •Pianos on Parade brought 2 creatively designed and painted pianos into the community to bring beauty and spark creativity in unexpected locations. Partnered with City of SLP, Keys 4/4Kids, local artists Pam Luer and Janice Reuland, Kids Place, and Children First. •Children First Ice Cream Social, we coordinated four performing groups on the main stage and worked with a local artist on an interactive painting activity on one of the Pianos on Parade. • Artist-Designed Utility Boxes were submitted by 19 local artists to graphic wrap city-owned boxes. We chose 3 winners, whose designs are now approved and pre-selected for community groups to choose from. • Public Art at Central Park West: we asked the community their favorite part of life in SLP during each season, worked with Community Poet, Diane Pecoraro, to convert the answers into short poems, and had them each engraved on a bench alongside a new public artwork at the West End. Board, Committee, and Volunteer Development • 1 new board member, and 1 new committee member in 2017 • Formalized bimonthly Programming, Communications, and Fundraising Committees • Currently recruiting new board and committee members with desired skills and experience • Recruiting volunteers and artists to represent FOTA at community events • We continue to have excellent executive committee leadership and committee chairs ArtsLab with Arts Midwest We accepted an invitation to participate in a program by Arts Midwest called ArtsLab with city staff and a resident artist. Along with 12 other metro communities, our St. Louis Park cohort will participate in four re- treats with workshops, case studies, and peer learning to learn new skills for leveraging creativity. Communications • New blog in newsletter and website to tell stories of local artists, called Artists of St. Louis Park • Community arts calendar in newsletter and website with events and activities happening in the community. • Facebook page followers increased 30% in last 1.5 years to over 900. Posts reach 5,000 users per week. • Monthly artTalk e-newsletter sent to 2,500 and opened by 625 (25%). Informs readers of upcoming events, highlights local artists, and tells stories about building community through the arts in St. Louis Park. •Regular press from local media especially, Sun Sailor and City South Magazine. • ParkTV and City of St. Louis Park promote Friends of the Arts events in their communication channels. • Community resource via calls and emails from community members seeking local artists, participatory ac- tivities, or general information about the arts community in St. Louis Park. Fiscal Agencies We provide financial stability through fiscal agency for small arts organizations in the community. Standard agreement in use for Maggie's Farm Theater, Community Band, Jr High Theater, and Bookmark in the Park. The Park Theater Company applied for and received its own 501(c)3 in 2016 after several years with FOTA. Finance • Worked with financial consultant to review financial procedures, reporting, and fiscal agency agreements to ensure financials are meeting non-profit best practices (supported by MRAC grant). • Comprehensive annual budget and projections, with corresponding monthly financial reports • Brian Ortale, treasurer, coordinates annual renewal and tax return with CPA Study Session Meeting of March 12, 2018 (Item No. 2) Title: Friends of the Arts (FOTA) Annual Update Page 3 Meeting: Study Session Meeting Date: March 12, 2018 Discussion Item: 3 EXECUTIVE SUMMARY TITLE: Police Officer Attendance at Council Meetings RECOMMENDED ACTION: No formal action required. This is a topic the council asked be brought back for discussion when time permitted. POLICY CONSIDERATION: None at this time. SUMMARY: Council has asked the police department to discuss the possibility of having an officer attend regular Council meetings and Study Sessions. The police department has the ability to provide either a uniformed or plain clothes officer at these meetings. Scheduling an officer that would normally be working on patrol during the meetings presents challenges to the staffing minimums required to provide quality service to our community. Scheduling an officer to work an overtime detail that does not impact our regular scheduled number of officers on patrol is our preferred method if Council wishes to have an officer present. FINANCIAL OR BUDGET CONSIDERATION: Staff has estimated the current annual cost of providing an officer at each Council and Study session meeting at approximately $14,500.00 in overtime wages. This amount is based on the assumption of four hours a meeting, with the top salary overtime rate of $76.52 hourly. Note the salary was based on a 2017 contract rate and would need to be adjusted with an updated 2018 contract rate when the contract becomes effective. VISION CONSIDERATION: Not applicable. SUPPORTING DOCUMENTS: None Prepared by: Michael Harcey, Chief of Police Approved by: Tom Harmening, City Manager Meeting: Study Session Meeting Date: March 12, 2018 Written Report: 4 EXECUTIVE SUMMARY TITLE: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC RECOMMENDED ACTION: This report presents proposed business terms for the Purchase and Redevelopment Contract with SLP Park Ventures, LLC. The proposed terms are consistent with the discussion held at the February 12th Study Session. Unless otherwise directed, the terms will be incorporated into a Purchase and Redevelopment Contract with SLP Park Ventures, LLC which will be presented for formal consideration at the March 19, 2018 EDA/Council meetings. POLICY CONSIDERATION: Are the proposed business terms for the provision of TIF assistance to the Platia Place redevelopment consistent with the direction provided at the February 12th Study Session and does the EDA/City Council continue to support the project as proposed? SUMMARY: SLP Park Ventures, LLC (“Redeveloper”) has a purchase agreement to acquire 9808 and 9920 Wayzata Blvd (former Santorini’s restaurant property). The Redeveloper proposes to clean up the current vacant site, remove its three billboards and construct a six-story, 205,669 SF multi-family apartment building as well as a six-story, 61,411 SF hotel together called Platia Place. The apartment project would consist of 149 housing units of which 134 would be market rate and 15 (10%) would be affordable at 50% of the Area Median Income (AMI). The hotel would have 100 rooms and offer limited services. Due to the subject site’s poor structural soils, there are considerable extraordinary costs associated with preparing both project sites for redevelopment. These costs impede both projects’ financial feasibility. In order for both projects to achieve a market rate of return, the Redeveloper applied to the EDA for Tax Increment Financing (TIF) assistance. The Redeveloper’s TIF application was reviewed at the February 12th Study Session where it received favorable support. FINANCIAL OR BUDGET CONSIDERATION: Ehlers’ analysis of the Platia Place proforma determined that the apartment building would not be reasonably expected to occur in the foreseeable future but for the provision of $2,760,000 in tax increment and the hotel would not be reasonably expected to occur but for the provision of $714,000 in tax increment. Such assistance is necessary to offset a portion of both projects’ extraordinary site preparation costs. It is proposed that the EDA enter into a Purchase and Redevelopment Contract with SLP Park Ventures, LLC under which the Redeveloper agrees to construct both projects as proposed under the pending PUD and the EDA agrees to reimburse the Redeveloper for qualified redevelopment costs up to $3,474,000 in property tax increment generated by both projects. The financial assistance would be provided on a pay-as-you-go basis over a maximum term of 9 years. Once the TIF Notes are retired the additional property taxes generated by the projects would accrue to the local taxing jurisdictions. Also under the Contract, the EDA would sell vacated right-of-way needed by the projects to the Redeveloper for $73,772. VISION CONSIDERATION: St. Louis Park is committed to providing a well-maintained and diverse housing stock. SUPPORTING DOCUMENTS: Discussion Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager Study Session Meeting of March 12, 2018 (Item No. 4) Page 2 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC DISCUSSION BACKGROUND: SLP Park Ventures, LLC (“Redeveloper”) a real estate development company led by Bill Stoddard of Stoddard Companies, has a purchase agreement to acquire 9808 and 9920 Wayzata Blvd (former Santorini’s restaurant property and “subject site”) located in the northwest quadrant of the I-394/US Highway 169 interchange. The subject site is currently vacant, and given its proximity to the highway interchange, highly visible. The site has been subject to occasional dumping which has created a public nuisance. REDEVELOPMENT PROPOSAL: The Redeveloper proposes to clean up the subject site, remove its three billboards and construct a six-story, 205,669 SF apartment building as well as a six-story, 61,411 SF hotel together called Platia Place. The projects would require the acquisition of approximately 18,440 square feet of vacated right-of-way from the city which is proposed to be sold for $4/SF. The apartment building would consist of 149 housing units of which 134 would be market rate and 15 (10%) would be affordable at 50% of the Area Median Income (AMI) which meets the requirements of the city’s Inclusionary Housing Policy. It would also include five 3- bedroom units of which one would be affordable. The hotel building would have 100 rooms and offer limited services. Both projects will meet the City’s Green Building and Building Readiness policies and consequently the Climate Action Plan. The Final Plat and the First Reading of the Ordinance creating the PUD to allow construction of the proposed projects on the subject site were approved by the City Council on March 5, 2018. Rendering of proposed Platia Place apartment building and hotel Redeveloper’s Request for Public Financing Assistance The cost to construct the apartment building is approximately $37 million and the cost to construct the hotel is $20 million. There are significant extraordinary costs associated with redeveloping the subject site due to its poor structural soils. These include: the removal of three billboards, soil excavation and correction, pilings and a foundation support system. For the apartment building, these costs exceed $3.1 million and for the hotel they are approximately $900,000. These costs prevent both proposed projects from achieving a market rate of return. Consequently the Redeveloper applied to the EDA for Tax Increment Financing (TIF) assistance to offset a portion of these costs so as to enable the projects to proceed. Tax increment financing uses the increased future property taxes generated by a new development to finance certain qualified redevelopment costs incurred during construction of that project for a limited period of time. Study Session Meeting of March 12, 2018 (Item No. 4) Page 3 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC Level and Type of Financial Assistance The Redeveloper’s sources and uses statements, cash flow projections, and investor rate of return (ROR) related to the Platia Place apartment building and hotel projects were reviewed by Staff and Ehlers (the EDA’s financial consultant). Based upon its analysis of the Redeveloper’s financial proforma, Ehlers determined that the proposed apartment building would not be reasonably expected to occur in the foreseeable future but/for the provision of $2,760,000 in tax increment assistance and the hotel would not be reasonably expected to occur but/for the provision of $714,000 in tax increment assistance. The TIF assistance would be provided in the form of two TIF Notes; one for each project and would be made available to exclusively reimburse the Redeveloper for a portion of the extraordinary site preparation costs noted above. Upon project completion, tax increment generated from the increased value of the property would be provided to the Redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the City's TIF Policy. It is projected that the apartment project’s TIF Note would be paid off in approximately 9 years and the hotel project’s TIF Note would be paid off in approximately 8 years with increment generated by the respective projects (on a net present value basis). Conveyance of Remnant City Property The City recently acquired right-of-way along Wayzata Boulevard adjacent to the subject site from the Minnesota Department of Transportation. The land was released to the city in 2013 and conveyed by quit claim deed in August 2017. It is the intention of the City to retain a portion of this property for right-of way purposes with the balance of the right-of-way to be vacated (“Remnant City Property”) and conveyed to the EDA by quit claim deed for reconveyance to the Redeveloper. The Redeveloper has requested to purchase the Remnant City Property as shown in the final Plat from the EDA for $73,772 in order to facilitate the proposed redevelopment. TIF Application Review The EDA/City Council reviewed the Redeveloper’s TIF Application for the proposed projects at the February 12th Study Session. There was consensus support for favorably considering the recommended amounts of financial assistance for both projects. As a result, Staff was directed to call for a public hearing on the proposed sale of vacated right–of-way property needed for both projects and prepare business terms for a formal purchase and redevelopment contract with SLP Park Ventures, LLC. Proposed Business Terms – Platia Place Project The following are proposed business terms between the St. Louis Park Economic Development Authority (“EDA”) and SLP Park Ventures, LLC or permitted successors and assigns (“Redeveloper”) which are consistent with EDA Policy, past practices and previous discussions with the EDA/City Council. Upon mutual agreement of the parties, these terms will be incorporated into a Purchase and Redevelopment Contract (“Contract”) for the Platia Place mixed-use redevelopment (the “Minimum Improvements”) to be constructed at 9808 and 9920 Wayzata Blvd. 1. For purposes of the proposed Purchase and Redevelopment Contract, the following parcels, and “Remnant City Property” shall together be understood as “the Redevelopment Property”: • 9808 Wayzata Blvd • 9920 Wayzata Blvd Study Session Meeting of March 12, 2018 (Item No. 4) Page 4 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC 2. The City owns former MnDOT right-of-way along Wayzata Boulevard adjacent to Redevelopment Property. It is the intention of the City to retain a portion of this property for right-of way purposes with the balance of the right-of-way property (“Remnant City Property”) to be vacated and conveyed to the EDA by quit claim deed for reconveyance to the Redeveloper. 3. Upon vacation and conveyance of the Remnant City Property to the EDA, the EDA agrees to convey title to and possession of the Remnant City Property to the Redeveloper by quit claim deed, subject to the following terms and conditions: (a) Prior to Closing, the Redeveloper shall prepare and obtain City approval of a Final PUD ordinance for the Redevelopment Property and a Final Plat of the Redevelopment Property at Redeveloper’s cost and subject to all City ordinances and procedures. (b) The EDA will use its best efforts to obtain approval by the City Council before Closing of any amendment to the City zoning ordinance in order to permit construction and use of the Minimum Improvements on the Redevelopment Property. 4. The purchase price for the Remnant City Property shall be $73,772. At Closing the Redeveloper shall pay the entirety of the Purchase Price ($73,772) to the EDA. 5. The EDA's obligation to convey the Remnant City Property to the Redeveloper is subject to satisfaction of the following terms and conditions: (1) The Redeveloper having closed on permanent financing at or before Closing on transfer of title to the Redevelopment Property from the EDA to the Redeveloper, or having received a binding commitment from a lender to provide financing sufficient for construction of the Minimum Improvements, or having otherwise provided the EDA with proof of funds available to finance construction of the Minimum Improvements. (2) The City having approved the Final Redevelopment Plat and PUD and the Redeveloper having recorded the Redevelopment Plat at or before Closing. (3) The City having approved all necessary zoning variances to the Redevelopment Property. (4) The EDA having approved Construction Plans for the Minimum Improvements. (5) The Redeveloper having reviewed and approved (or waived objections to) title to the Redevelopment Property and having obtained a commitment from a title company acceptable to the Redeveloper (the “Title Company”) to issue a suitable owner’s policy. (6) The City having conveyed the Remnant City Property to the EDA. (7) The Redeveloper being satisfied with the results of its due diligence inspections and testing with regard to the Redevelopment Property. (8) No events of default under the Contract having occurred. Study Session Meeting of March 12, 2018 (Item No. 4) Page 5 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC 6. Closing on the Remnant City Property shall occur within 30 days of satisfaction or waiver of the above conditions but no later than September 28, 2018 unless extended by agreement of the parties. 7. The Redeveloper shall have the right to enter the Remnant City Property at reasonable times for the purpose of inspection and testing and to determine the feasibility of the Remnant City Property for the Redeveloper’s intended use. The Redeveloper agrees that it shall cause all studies, investigations and inspections performed at the Remnant City Property to be performed in a manner that does not disturb the Remnant City Property and that that the Remnant City Property shall be returned to its original condition after the Redeveloper’s entry, provided that the Redeveloper shall not be responsible for any existing conditions on the Remnant City Property or for any environmental remediation or response actions required as a result of such investigations and inspections. Except for soil borings and test pits, the Redeveloper shall not conduct or cause to be conducted any physically intrusive investigation, examination or study of the Remnant City Property (any such investigation, examination or study hereinafter an Intrusive Investigation as part of its inspection or otherwise without obtaining the prior written consent of the EDA. 8. The Redeveloper acknowledges that the EDA makes no representations or warranties as to the condition of the soils on the Redevelopment Property or the fitness of the Redevelopment Property for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property, and that the assistance provided to the Redeveloper neither implies any responsibility by the EDA or the City for any contamination of the Redevelopment Property nor imposes any obligation on such parties to participate in any cleanup of the Redevelopment Property. 9. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the EDA, the City, and their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants existing on the Redevelopment Property on or after closing. 10. The EDA has determined that, in order to make development of the Minimum Improvements financially feasible, it is necessary to reimburse Redeveloper for a portion of the cost of: site demolition (including billboard removal and disposal), soil excavation, disposal and correction, pilings and/or foundation support system, environmental remediation, utility relocations, and underground structured parking (collectively referred to as “Public Redevelopment Costs”). The tax increment generated from the Wayzata Blvd TIF District will be payable to Redeveloper in the form of two tax increment revenue notes (the “Notes”); one for the apartment building and one for the hotel. The Note for the apartment building would be structured on the following basis:  Issue total: $2,760,000  Type: Pay-as-you-go  Term: Until full repayment – not to exceed 9 years  Interest Rate: 5.5% (subject to Redeveloper’s actual financing)  Admin Fee: 5%  Fiscal Disparities: Paid from within the district The Note for the hotel building would be structured on the following basis: Study Session Meeting of March 12, 2018 (Item No. 4) Page 6 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC  Issue total: $714,000  Type: Pay-as-you-go  Term: Until full repayment – not to exceed 8 years  Interest Rate: 5.5% (subject to Redeveloper’s actual financing)  Admin Fee: 5%  Fiscal Disparities: Paid from within the district The EDA shall issue and deliver each Note upon Redeveloper having: (a) delivered to the EDA written evidence satisfactory to the EDA that Redeveloper has incurred Public Redevelopment Costs in an amount at least equal to the principal amount of the Note, which evidence must include copies of the paid invoices or other comparable evidence for costs of allowable Public Redevelopment Costs; (b) submitted and obtained EDA approval of finance; and (c) delivered to the EDA an investment letter in a form reasonably satisfactory to the EDA. (d) The EDA acknowledges that the Redeveloper may assign one or both Notes to a third party. The EDA consents to such assignments, conditioned upon receipt of an investment letter from such third party in a form reasonably acceptable to the EDA. (e) The Redeveloper understands and acknowledges that all Public Redevelopment Costs must be paid by the Redeveloper and will be reimbursed from Available Tax Increment pursuant to the terms of the Note. The Redeveloper understands and acknowledges that the EDA makes no representations or warranties regarding the amount of Tax Increment, or that revenues pledged to the Notes will be sufficient to pay the principal and interest on the Notes. Any estimates of Tax Increment prepared by the EDA or its financial advisors in connection with the TIF District or this Contract are for the benefit of the EDA, and are not intended as representations on which the Redeveloper may rely. Public Redevelopment Costs exceeding the principal amount of the Notes are the sole responsibility of Redeveloper. 11. The EDA will perform a “lookback” calculation on the Minimum Improvements to verify the requested amounts of TIF assistance were justified similar to those conducted on other projects that received TIF assistance. The precise triggers and formula relative to calculating the lookback are being drafted. 12. Both parties agree that any assistance provided to the Redeveloper under the Purchase and Redevelopment Contract is not expected to constitute a “business subsidy” under Minnesota Statutes because the assistance is for redevelopment. 13. Redeveloper agrees that it will pay the reasonable costs of consultants and attorneys retained by the EDA in connection with the preparation of the TIF Plan, the establishment of the Wayzata Blvd TIF District, the negotiation and preparation of the Purchase and Study Session Meeting of March 12, 2018 (Item No. 4) Page 7 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC Redevelopment Contract and other incidental agreements and documents. Upon termination of the Purchase and Redevelopment Contract the Redeveloper remains obligated for costs incurred through the effective date of termination. 14. Redeveloper agrees to undertake the Minimum Improvements and Redeveloper Public Improvements as shown in the PUD and Planning Development Contract and operate and maintain the Minimum Improvements in good repair and condition. In summary, the Redeveloper agrees to completely remove the three billboards on the Redevelopment Property, construct the Redeveloper Public Improvements, and construct the Minimum Improvements which together consist of a six-story, multi-family apartment building with approximately 149 units of rental housing, and a six-story, limited service hotel building consisting of approximately 100 rooms along with associated surface and structured underground automobile parking, bicycle parking, associated infrastructure, sidewalks, landscaping, designed outdoor recreation areas, and artwork as required under the city’s PUD and Planning Development Contract. 15. Before commencing construction of the Minimum Improvements, the Redeveloper must submit Construction Plans regarding the Minimum Improvements for approval by the EDA. All work on the Minimum Improvements shall be in accordance with the approved Construction Plans and shall comply with all City requirements regarding such improvements. 16. If the Redeveloper desires to make any material change in the Construction Plans after their approval by the EDA, the Redeveloper shall submit the proposed change to the EDA for its approval. The term “material” means changes that increase or decrease construction costs by $500,000 or more. 17. Subject to Unavoidable Delays, Redeveloper agrees to commence construction of the multi-family apartment building and hotel building by October 1, 2018 and substantially complete them both by February 28, 2020. If the Redeveloper anticipates that the above timetable for either building will not be met, Redeveloper shall provide a written and oral presentation to the City Council at a regular City Council meeting at least 45 days prior to the Required Commencement Date or Completion Date. The report must describe the reasons for the expected failure to meet the schedule, evidence of Redeveloper’s due diligence in working toward construction of the Minimum Improvements, and a detailed revised construction schedule. Approval of a modified schedule for construction by the EDA shall not be unreasonably withheld, conditioned or delayed. Failure to timely provide such written and oral report is an Event of Default. 18. The Redeveloper shall comply with the City’s Green Building Policy, adopted by the City Council on February 16, 2010 and updated September 16, 2014 and as such policy may be amended as of the date of issuance of a building permit for the Minimum Improvements. 19. Promptly after completion of each Component of the Minimum Improvements in accordance with those provisions of the Contract relating solely to the obligations of the Redeveloper to construct the Minimum Improvements, the EDA Representative shall deliver to the Redeveloper a Certificate of Completion in recordable form and executed by the EDA. Study Session Meeting of March 12, 2018 (Item No. 4) Page 8 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC 20. The Redeveloper shall at all times engage a property management company with substantial experience in operating multifamily housing and hotel properties. The Redeveloper will submit evidence of such management upon request by the EDA. 21. The Redeveloper agrees to comply with the City’s Inclusionary Housing Policy, as adopted June 1, 2015 and amended May 15, 2017, including without limitation the following: (a) The Redeveloper agrees to reserve at least 15 of the apartment units within the Minimum Improvements for households earning fifty percent (50%) of Area Median Income (“AMI”) (collectively, the “Affordable Apartments”) for at least twenty-five (25) years following building occupancy. (b) The monthly rental price for Affordable Apartments shall include rent and utility costs and shall be based on no more than fifty percent (50%) 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. (c) 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 apartment building. (d) The Affordable Apartments shall have a number of bedrooms in the approximate proportion as the market rate units. (e) 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. 22. The Redeveloper shall install dedicated wired connections from each building’s point of presence to each internal wiring closet, thence to each living and commercial unit in conformity with the terms and specifications provided in the City Planning Development Contract. 23. The Redeveloper shall install a Video Surveillance System to provide complete coverage of the entire parking facility, including entrances to stairs and elevators in conformity with the terms and specifications provided in the City Planning Development Contract. 24. The Redeveloper shall equip both buildings with an approved bi-directional 800 MHz signal enhancement system in conformity with the terms and specifications provided in the City Planning Development Contract. 25. The Redeveloper shall install Electric Vehicle Charging Station Infrastructure in both buildings in conformity with the terms and specifications provided in the City Planning Development Contract. Study Session Meeting of March 12, 2018 (Item No. 4) Page 9 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC 26. The Redeveloper shall construct the roofs of both buildings in such a manner as to allow for Solar Readiness in conformity with the terms and specifications provided in the City Planning Development Contract. 27. The Redeveloper shall construct designed outdoor recreation areas and other public amenities including privately owned artwork on the Redevelopment Property as required under the City Planning Development Contract and as depicted in the approved Site Plan. The parties agree and understand that the Redeveloper shall be responsible for the cost of any maintenance and repair of the amenities and artwork. 28. The Redeveloper agrees to comply with the terms of the Maintenance Plan for the Redevelopment Property as specified in the City Planning Development Contract. 29. The Redeveloper shall, with the EDA, execute an Assessment Agreement specifying an assessor’s minimum market value for the Redevelopment Property and the Minimum Improvements constructed thereon. 30. The EDA agrees to subordinate its rights under the Contract to the Holder of any Mortgage securing construction or permanent financing, in accordance with the terms of a mutually- approved subordination agreement. 31. The Redeveloper agrees not to transfer the Purchase and Redevelopment Contract or the Redevelopment Property (except to an affiliate) prior to receiving a Certificate of Completion without the prior written consent of the EDA, except for construction mortgage financing and/or permanent financing. The EDA's consent shall not be unreasonably withheld, conditioned or delayed. 32. The Redeveloper agrees that any proposed transferee, shall, for itself and its successors and assigns, and expressly for the benefit of the EDA, expressly assume all of the obligations of the Redeveloper under the Contract as to the portion of the Redevelopment Property to be transferred and agrees to be subject to all the conditions and restrictions to which the Redeveloper is subject. 33. The Redeveloper shall undertake all work related to the Minimum Improvements and Redeveloper Public Improvements in compliance with all applicable federal and state laws, including without limitation all applicable state and federal Occupational Safety and Health Act regulations. Any subcontractors retained by Redeveloper shall be subject to the same requirements. All Redeveloper Public Improvements shall be constructed in accordance with the City Ordinance. 34. The Redeveloper agrees that the EDA and the City will not be held liable for any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Redevelopment Property or the Minimum Improvements. 35. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Contract it will comply with all applicable federal, state, and local equal employment and non-discrimination laws and regulations. Study Session Meeting of March 12, 2018 (Item No. 4) Page 10 Title: Business Terms for Purchase and Redevelopment Contract with SLP Park Ventures, LLC 36. The Redeveloper agrees until the Contract Termination Date not to discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property or any improvements erected thereon. The above terms will serve as the basis for and be incorporated into a Purchase and Redevelopment Contract with SLP Park Ventures, LLC. Such terms are subject to further definition, revision and/or refinement as deemed necessary by the EDA’s legal counsel. NEXT STEPS: Staff will work with the EDA’s legal counsel to prepare a formal Purchase and Redevelopment Contract with SLP Park Ventures, LLC based on the proposed business terms and any input provided by the EDA. The Resolutions approving the conveyance of the Remnant City Property to the EDA, the EDA’s acceptance of the Remnant City Property and the Public Hearing for the Purchase and Redevelopment Contract with SLP Park Ventures, LLC are expected to be presented for formal consideration on March 19th; the same evening as the 2nd Reading of the Ordinance creating the Final PUD.