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HomeMy WebLinkAbout2018/04/16 - ADMIN - Minutes - City Council - Study Session�OlSt. Louis Park OFFICIAL MINUTES MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION ST. LOUIS PARK, MINNESOTA APRIL 16, 2018 The meeting convened at 5:35 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. Harmerting), Economic Development Coordinator (Mr. Hunt), Deputy City Manager/Human Resources Director (Ms. Deno), Director of Community Development (Mr. Locke), Planning/Zoning Supervisor (Ms. McMonigal), Community Development Director (Ms. Barton), City Planner (Ms. Monson), Senior Planner (Mr. Walther), Housing Supervisor (Ms. Schnitker), Housing Programs Coordinator (Ms. Olson), and Recording Secretary (Ms. Wirth). Guest: Dave Miller (consultant). Mayor Spano shared that he had sent a donation and letter to a gentleman from Manchester, UK who owns a cafe and organized a day of kindness to counter the `Punish a Muslim' movement. In the letter, he described the impact living in England and a multi -cultural society had on him during an important time in his life. Mayor Spano stated the gentleman e-mailed a reply, called to talk, and asked if the letter could be shared with local media in England. Subsequently, KARE 11 was contacted and interviewed him so there may be some local coverage. 1. 2040 Comprehensive Plan Update Discussion Housing Goals and Strategies Ms. McMonigal presented the staff report and overview of the 2040 comprehensive plan process with the intent to look long range so day-to-day decisions are easier or considered in a long- range context. She indicated all cities work with the Met Council, which is the regional planning agency, and State law requires comprehensive plans to be updated every ten years. She explained the Met Council develops regional plans, owns and operates the sewer system for most of the metro area, and since it does land planning, will not extend sewer unless its requirements are met. It also deals with regional transportation issues, funding, and housing. Ms. McMonigal noted, however, that St. Louis Park is fully developed and close in so it has not had any issues meeting the requirements of the Met Council. Since the Met Council has control of the sewer system, urban sprawl is contained in the metro area, creating methodical development, which is good for planning, efficient systems, and reducing congestion. She explained the livable communities grant program, noting St. Louis Park was one of the first to receive that grant, as it created a walkable neighborhood that was denser and one the Met Council served with transit. In addition, the Met Council has required plan elements relating to housing, parks and trails, transportation, and land use. Study Session Minutes -2- April 16, 2018 Ms. McMonigal reviewed the steps and considerations that have occurred since the 2040 comprehensive plan process started in June of 2017, noting the planning commission will prepare a recommendation on June 6, 2018, and the city council will take action to send it out to surrounding communities on June 18, 2018. During that time, additional review can also be conducted with final plan adoption by the city council in December of 2018. The Housing Chapter is under review tonight. Ms. McMonigal reviewed the additional elements that St. Louis Park has added to describe the `flavor' of the city. Ms. Schnitker described the programs that are city funded, federally funded, and those administered by the housing authority. Councilmember Mavity asked whether CDBG funds were used. Ms. Schnitker answered in the affirmative. Ms. Schnitker reviewed the housing goals, strategies, and inclusions in the plan. She explained this is a long-range plan so items can be changed, as needed or appropriate. The housing goals were approved by the council in 2014 and serve as a basis with strategies then following. The overall housing goal takes into account a balanced and enduring housing stock that offers a continuum of diverse lifecycle housing choices suitable for households of all income levels including affordable, senior, supportive, and mixed -income. The strategies relate to creating a broad range of housing types; review of existing policies, programs, and regulations to remove barriers to innovative and creative housing options; to establish affordable housing policies and provide equitable housing choices; to use data and research to guide and evaluate housing priorities, policies, and programs; and, to use infill and redevelopment opportunities to help meet housing goals. Councilmember Brausen stated his concern is whether the plan adequately reflects the adoption of the climate action plan, thinking strategies should be added in all areas to increase use of renewable energy sources and reduced carbon footprint. Councilmember Mavity agreed. Ms. Olson noted the mention of green building techniques in one of the goals. Councilmember Brausen supported it being an overarching goal as in time, it will be required for all building projects. Councilmember Mavity asked what is meant by a fair housing policy. Ms. Schnitker stated that the proposal would be for the city council to adopt a fair housing policy for the city. Councilmember Mavity commented on the difference between fair housing policies and affordable housing policies, wanting to be careful the city isn't saying it supports the concept of the `fair housing folks.' Ms. Schnitker clarified the intent was not looking at desegregation but looking at equitable housing. Ms. Barton stated staff is looking at implementation down the road. Councilmember Mavity commented on three communities that are suing under the fair housing act because each think they have too much affordable housing. She stated she wants to be cautious of the message being sent out. Councilmember Rog agreed and suggested it be included in the overall listing. Study Session Minutes -3- April 16, 2018 Ms. Schnitker stated the next housing goal relates to single family homes to place a high priority on creating, preserving, and improving the city's single-family housing stock, noting the two additional strategies were added to allow accessory dwelling units on all low-density parcels and allow two-family dwelling units (twin homes and duplexes) on all appropriately -sized single- family parcels. Ms. Barton stated requirements will be added around those items. Councilmember Mavity noted technically you could have three units on one lot. Ms. Barton stated you could either have one or the other. Councilmember Mavity stated her preference to use `and' rather than `or.' Councilmember Mavity drew attention to the goal wording for single-family, home ownership, and preservation, safety and sustainability that indicates `the city places a high priority on...' However, this is different from the wording for multi -family that indicates `the city is committed to promoting...' Councilmember Mavity stated if considering the race equity lens, she wants to challenge that wording and revisit the assumption behind whether or not the council believes that single-family is better, a higher priority, than multi -family. She noted with regard to single- family or multi -family, you can have ownership in either of those categories. Councilmember Mavity stated the city needs to be careful of saying it is better to be an owner and asked what that is saying, whether the city is being inclusive and considering the issue through a race equity lens. She stated the wording read to her as being exclusive. Councilmember Mavity raised the issue of the excess land task force and stated she does not think the city has a lot of excess land on which to build single-family homes so to her, it is a false narrative as the city does not have that as a high priority. However, she noted the city can create ownership opportunities in multi -family situations. Councilmember Brausen agreed, noting a priority was to promote more move -up housing. Councilmember Hallfin stated he also agrees and thinks it is coming from when the council had a priority for move -up housing to address young families who buy a smaller house and want to stay in the city. Because of this, he did not find it to be a false narrative and if the city has opportunity in some places, then this wording should stay in the plan. Councilmember Mavity felt there was opportunity to remodel, but there were no open spaces to build single family. Councilmember Hallfin pointed out there are open spaces where the city could certainly build single-family and that may be a future discussion. Councilmember Rog stated a potential solution is to word the goals more specifically without using `places a high priority on' or `is committed to.' She noted the council can continue the important discussion on content but differently word the goals and strategies. Mayor Spano asked if this will get down to that granularity. Ms. Barton responded if the council agrees with the goal but not as stated, this is the time to ask for it to be changed. Study Session Minutes -4- April 16, 2018 Councilmember Mavity stated these words were previously used with intention. Councilmember Harris asked, with addressing single-family and zoning, is it also the time to explore whether we want to expand to include triplexes and quads. She asked if there has been a discussion in how to be expansive, maximize the land we have, and get more dwelling units without it being a high-rise. Councilmember Brausen stated the wording could be changed to `city wants to preserve and improve.' Councilmember Rog suggested indicating `the city will' instead of `wants to.' Councilmember Miller noted the intent of the goal under discussion is to change single-family homes to make them more than one single-family dwelling. Councilmember Brausen stated previously it was to create more single-family houses and bigger houses so he would like to change the goals. Mayor Spano stated the goal wording does not say it is the highest priority. Councilmember Mavity noted it does not include multi -family so it is sending that message relating to single-family. Ms. Schnitker suggested dropping the words `places a high priority on' from this goal so it reads similar to the multi -family goals. Mayor Spano asked if the city wants to push home ownership over other strategies Councilmember Mavity felt that was the second question, pointing out you can rent single-family homes and own multi -family homes. She asked if the city places different values on single- family or multi -family buildings, and on ownership versus rental. Those are two policy questions. Councilmember Mavity stated she does not agree with the current wording. Councilmember Rog asked if the city should seek a balance. Councilmember Miller stated he doesn't understand why those two questions are important. Councilmember Mavity felt they were important because they drive staff work and in what staff brings forward for council consideration, such as move -up housing. She noted the council had changed the wording to say we still want move -up housing, not as big, but instead sufficient space for the modern family. With energy conservation, the council removed the word `big' and instead call it `family -sized homes.' Councilmember Mavity stated she think this still responds to `big' with two -car garages and instead should support houses expanding in place. Councilmember Miller stated it sounds like the council supports building an affordable component into ownership and rental. He asked whether that is not what accessory units and two-family dwelling units will do, to make them more affordable. Study Session Minutes -5- April 16, 2018 Councilmember Mavity stated it addresses adding more units and eventually it may trickle down to that but the key thing is that this sends the message that a renter is less valued to us as a council. Councilmember Miller stated he does not think that is what it says, noting it will be reworded by staff. Councilmember Harris asked about increasing the income cap to allow more into the move -up housing opportunity. Ms. Olson explained the city cannot change the income levels for the programs with federal or state loans. Mayor Spano stated when viewed through a race equity lens, he does not think they align. Councilmember Mavity stated that is because of the racial disparities in housing, noting Minnesota has the worst homeowner disparities in the USA and that is the case in St. Louis Park as well. She found the wording telegraphs that single-family homes and the narrative on home ownership is valued more so it does not send the inclusive message that she thinks the council wants to send. Mayor Spano asked if it would discourage a person of color or indigenous person from moving to St. Louis Park because the city supports home ownership over renting. Councilmember Mavity stated no one is reading the comprehensive plan when moving into St. Louis Park but she thinks this does not reflect our values if viewed through a race equity lens. Ms. Schnitker clarified the intent is not to say one type of housing is more important, but rather to talk about all housing in the city and 58% of the housing in St. Louis Park is single-family housing. Ms. Barton suggested changing the wording so all is uniform between housing classifications. Councilmember Hallfin stated this is one segment of our housing and it is important, but not saying it is more important than a different segment of housing. All are important. Councilmember Mavity stated all have voiced support to reword to the housing goals to remove `places a high priority on.' Mayor Spano supported a future conversation on diversity in home ownership opportunities that may not happen in this statement. He stated he is not malting that assumption because people of all different backgrounds may not be interested in owning a home and building that equity. Councilmember Rog stated she found the word `blighted' to have a negative connotation and suggested instead to use wording like `functionally obsolete.' She referenced the third bullet point indicating: `Promote high-quality architectural design standards of homes through the use of good design, quality materials, and superior construction.' Councilmember Rog stated she prefers the language used in the land use section indicating: `design complementary and compatible with existing neighborhood character.' Ms. Barton stated that will be revised. Study Session Minutes -6- April 16, 2018 Ms. McMonigal asked if the wording relating to two plus garages should be rewritten. Councilmember Mavity supported removing `bigger' as it is not sustainable and to instead support smart design to support families. She stated the council needs to be careful to not reinforce `McMansion' conversions. Ms. Schnitker stated staff will review and rewrite those sections. Ms. Schnitker presented housing goals and strategies for multi -family, noting it contains existing strategies. Councilmember Rog supported emphasizing family -sized affordable since the city increasingly sees developers are not addressing that need. Ms. Barton suggested addressing it under affordable housing instead. Ms. Schnitker stated it would be appropriate in this section if addressing two- and three-bedroom units. Ms. Schnitker presented home ownership goals and strategies. Councilmember Brausen suggested including `near light rail' because the city wants to avoid loss of affordable housing wherever it may be. Councilmember Mavity noted the council voiced support to remove `places a high priority on' wording. Councilmember Rog asked staff to reword the third bullet point to use `people with disabilities' instead of `disabled residents.' Ms. Schnitker presented affordable housing goals and strategies, noting the change to the first strategy. Councilmember Rog stated concern with using 80% of AMI for some of the units. Ms. Schnitker explained the Met Council uses 80% of AMI as an affordability factor but usually it is for single- family properties. Ms. Schnitker continued review of the affordable housing strategies and sub -strategies. Councilmember Mavity stated support for the third bullet, `promote the inclusion of affordable housing opportunities in new developments located near the Southwest Light Rail Transit Corridor and other transit nodes, retail, and employment centers and commercial mixed-use districts' as it reflects the leadership St. Louis Park has with regional conversations and to assure the conversation is regional and other cities are working together. She suggested adding `resources and tools to create and preserve housing.' Councilmember Rog stated support for a stronger focus on senior housing in this section as she has heard of a great need in St. Louis Park for senior housing options, but she does not see it coming through. She also supported strengthening the last bullet on affordable housing to say, Study Session Minutes -7- April 16, 2018 `emphasize our nonprofit and community partnerships to achieve our funding goals.' Ms. Schnitker stated staff will reword that bullet point. Councilmember Rog stated her understanding of the difference between `affordable housing' and `workforce housing,' is that people working at prevailing wage can afford to live in workforce housing, which is not subsidized. Ms. Schnitker explained the two terms are interchangeable and not something different. She noted if you look at a workforce housing for households with lower incomes, it is probably in the 50-60% median income range and the city targets housing to the income. Councilmember Mavity stated workforce housing is a marketing term so people won't think it's affordable housing. Ms. Schnitker noted the rents would be the same regardless. Ms. Schnitker reviewed the preservation, safety, and sustainability goal, noting it will be reworded to remove `places a high priority on.' She referenced the strategy added to proactively address health hazards in housing and advance design that supports physical and mental health. Councilmember Harris stated as she looks at various goals in the draft copy, rental isn't as specifically called out. She noted the first page of the document talks about the different types of housing, the second page is reflective of income. Given there is 58% home ownership and 42% is rental, she asked whether there should be a section in the housing chapter specifically calling out rental rather than inferring multi -family is rental. Ms. Barton suggested referring to owner and rental in the goals. Councilmember Mavity stated Councilmember Harris' point is correct that it does not specifically address rental. Councilmember Harris stated if included, it may speak to programs being addressed regularly. Councilmember Mavity noted perhaps preservation should be part of that. Ms. Schnitker stated staff will look at how to `beef up' that language. Land Use Goals and Strategies Mr. Walther described the recommendations of the planning commission based on their discussion. In the interest of time, he asked the council to focus their comments on which goals and policies needs to be changed, and on what was missed, and suggested if they want items to be reworded, to ask staff to look at it again. Mr. Walther provided an overview of the land use categories, noting the Transit Oriented Development (TOD) category is new and focuses on two of the light rail stations to allow a higher density range and mixed uses oriented around the stations along the proposed Green Line LRT. Councilmember Mavity asked whether Business Park allows housing. Mr. Walther stated it does not. Mr. Walther reviewed the current density and proposed density ranges (units per acre) for the land use categories. Low density residential would go from 3-7 units per acre to 3-10 units per Study Session Minutes -8- April 16, 2018 acre, accounting for some changes to allow slightly different housing types and accessory uses. Future zoning study will determine the regulations that would accompany those housing types. Councilmember Harris asked if there is a location in St. Louis Park that has a density of 10 units per acre in a low-density residential area. Mr. Walther stated staff can research that information. Councilmember Rog asked if the number of people in the household is addressed. Mr. Walther stated it is not. Councilmember Rog stated she would like to discuss expanding the maximum of unrelated in a household. Councilmember Mavity supported having that conversation Mayor Spano asked if this is talking about adding duplexes in low density residential areas. Mr. Walther stated it is not automatically allowed but this change would allow flexibility to explore that option. Mayor Spano noted a lot of neighbors would have interest in that issue. Mr. Walther agreed and stated the proposed Comprehensive Plan change removes one major barrier to further exploring the idea through future zoning studies and amendments. Councilmember Miller asked if having the TOD classification will reduce the number of PUDs. Mr. Walther stated that will depend on how this is implemented in the zoning code. Currently, there is not a zoning district to allow for 125 units per acre so a PUD is the only way to get there. Councilmember Miller stated the concern is that with a PUD, the city has a considerable amount of control on every aspect of the development. But with TOD, he thinks the city may lose some control over those larger developments. Mr. Walther stated possibly, but it depends on how the city chooses to implement the Comprehensive Plan Transit Oriented Development through the zoning code. Councilmember Miller stated he likes PLACE because of its features and the flexibility given to the council through the PUD that allowed that to be created. He wants to make sure the TOD would not take away or diminish the council's ability and flexibility. Mr. Jeff Miller, HKGi, explained TOD is a land use category; the PUD is a zoning tool. Mr. Walther stated staff suggests removing references to PUDs from the land use plan and address it through zoning. Councilmember Brausen asked if it can be part of the TOD land use category to require a PUD. Mr. Walther indicated best practices would not include a zoning requirement in the comprehensive plan. Ideally, the plan should give people clarity in what to expect in development and the range of density that would be allowed. Councilmember Mavity stated she understands the concern with needing the flexibility and control on what goes in. Mr. Walther presented the livable communities goals and strategies, noting the addition of living streets design principles to enhance the corridors' appearance and environment and to Study Session Minutes -9- April 16, 2018 incorporate Crime Prevention Through Environmental Design (CPTED) principles and practices into building and site design to maximize visibility and eyes on the street. He asked if the council has comments. Mayor Spano asked about the wording of the goal. Mr. Walther suggested it be edited to insert a comma and remove the redundant `and.' Councilmember Rog stated in looking at the climate action plan and racial commitment, more should be incorporated into the wording to reinforce those priorities. Councilmember Harris stated to emphasize celebrating multiple cultures in St. Louis Park goes a long way to preserving and utilizing neighborhood nodes. She stated she is thinking about Texas and Minnetonka where there is diversity of people and unique cafes when compared to the rest of the city. Councilmember Mavity noted Texas is missing from the list of streets. Mr. Walther stated staff will edit that language to indicate more generically `community corridors' instead of listing specific streets by name. Councilmember Harris asked if the language addressed buildings with pedestrians in mind, noting some have papered over their windows. Mr. Walther stated that can be regulated through the zoning. Councilmember Mavity noted it is an ongoing challenge with Fresh Thyme. Councilmember Brausen stated the language does not reference prior comprehensive plans or whether those past goals have been met. Mr. Walther noted each section addresses where "we have been" and "where we are today" and that is an appropriate place in the document to address past accomplishments. Mr. Walther presented commercial and land use goals and strategies, noting Councilmember Harris' comments on neighborhood nodes could be addressed here. Councilmember Rog referenced language addressing commercial surface parking lots and the climate action plan and asked if the plan can discourage parking lots or encourage rain gardens. Ms. Schnitker stated that is what this section speaks to. Councilmember Rog suggested adding the word `environmental.' Councilmember Brausen agreed and suggested requiring commercial and office to comply with the climate action plan. He noted the sooner that is required in the code, the better, as buildings will be coming on line in the next few years will still be here in 2040. Councilmember Mavity suggested adding... `and environmentally sustainable.' Mr. Walther continued presentation of commercial and office land use goals and strategies, noting areas that need some rewording. He explained this addresses areas where a change may be needed and whether some of the C2 general commercial should change to Cl neighborhood commercial. Study Session Minutes -10- April 16, 2018 Councilmember Mavity stated she agrees with the first bullet and thinks it will be helpful with the development community if this is truly what the council envisions. Mr. Walther stated this also addresses, in large commercial areas, looking at circulation through sites for community connections through the property. He noted there is a general plan goal, as industrial properties are turning over to residential and other uses, so the city wants to preserve a portion of industrial as it offers an employment base and diversity. In addition, there are other areas in the city that will be under redevelopment pressure in the future and the city would like to see the difficult buildings with a broader mix of uses within that area so there's viable use of the buildings. He noted that may not be a true manufacturing/industrial use due to building restrictions. Mr. Walther stated that will be discussed in text, not indicated on the zoning map, to allow transition and a variety of use in those areas during the interim. Councilmember Miller asked if that will be identified on a map. Mr. Walther stated it could or it could be described in text what the areas would look like for industrial transitional. Councilmember Mavity stated in general she agrees with having that flexibility as it allows for a richer diversity of uses without getting too fine of a point, to allow it to organically develop on its own. However, she has some concern about the vast mix of zoning categories and now creating another one, especially when it seems to overlap existing. Mr. Miller explained this would be creating a new zoning district, not a new land use category in the Comprehensive Plan. Councilmember Mavity stated she prefers to reduce complexity Councilmember Brausen stated he would like to see additional strategies to increase natural environments on public lands and increase access to public lands for those of diverse backgrounds and income levels. Councilmember Rog stated she supports increasing access and to make it an overarching concept in the land use plan. Mr. Walther stated some study has been done on that including looking at how many households have a park within a certain distance, or commercial, or grocery. Mayor Spano stated he agrees with the green space piece and having more greenery in St. Louis Park, but wants to differentiate green space to what end. If talking about getting people out to enjoy green spaces and public parks, the city will want to be mindful that what is planted in those places also forecloses other uses. He would like to see more green space in and around commercial spaces, but also to be mindful to what end, and if to ineent people to use the spaces, then to plan for that. Councilmember Brausen stated he was thinking about local parks where half is recreational uses and half is mowed, but instead, have it more natural area with trails as kids enjoy that as much as play equipment. Study Session Minutes -11- April 16, 2018 Councilmember Rog asked whether the land use piece talks about affordable commercial the same as it talks about affordable residential, to incent small businesses to operate. Ms. McMonigal noted the economic and redevelopment section addresses that issue. Mr. Walther presented the future land use map, noting recommended changes to current land use designations, including location of TOD areas. Councilmember Miller stated the Sam's Club area seems like a valuable spot and he would hate to miss the opportunity to have it be a TOD. Instead of Industrial Business Park and Commercial, he suggested it reflect what our goals are and then determine what the challenges are (i.e. soil). Mr. Walther noted that is a departure from the land use planning completed with a community advisory committee the city has done recently for the Louisiana Station Area, which emphasizes employment uses around this station area. Councilmember Mavity noted the city has station area plans for all of these, generally this reflects that, and because the area around Louisiana is mostly business, the council had looked at form based zoning to get at a more organic growth pattern and determine what may fit there by building size. She stated she does not know that they are inconsistent, but agrees if we have opportunity with the Sam's Club site to control it and do more creative planning, we should do SO. Councilmember Mavity stated on the Beltline site and mini storage, if it is 10 acres then the maximum would be 300 units. However, some are saying it will be 700 units so it is important to get clear information out on that to the community. She asked staff to provide her with that information and indicated she thinks medium density is appropriate for this area since it is guided to medium. Mr. Walther stated he will provide an example. Councilmember Mavity commented on density bonuses and stated she has not found they have worked well. Mr. Walther agreed and stated it is challenging to put the right number to it so it works and shows the cost benefit. He noted the maximum densities in each land use category reflect the upper limit, even with any density bonuses that may be used in the zoning code. Councilmember Brausen noted the zoning on the south side of Cedar Lake Road and Louisiana Avenue South goes from commercial to mixed use and asked why that is not the case on all four corners. It is the same situation with Texas and Minnetonka. Mr. Walther explained it was based on lot sizes and what staff thinks can be achieved on the site. Councilmember Rog stated with the parcel at Minnetonka Boulevard and Highway 100, she would like significant neighborhood input as there is a lot of interest in that area. Mr. Walther stated it is currently guided for commercial and there is residual land guided for right-of-way. Councilmember Harris asked whether, when parcels go from commercial to mixed use, it is the intention to maximize the development. Ms. Barton stated it is to allow more flexibility. Mr. Walther explained the change to mixed use would require, not just allow, mixed-use development of the property, so it could not be a single use. In general, it would also result in an Study Session Minutes -12- April 16, 2018 increase to what can happen on the site. Mr. Miller added it also presents an opportunity to gain a housing component. Councilmember Harris asked about the timeframe to take effect. Mr. Walther stated the changes will be adopted at the end of the year. Then there is a component to consider whether zoning map or other zoning changes would be required to implement the policies of the plan, which can take at least another six months. Councilmember Brausen asked whether the parcel on the northeast corner of Texas and Minnetonka could be mixed use. Mr. Walther indicated there was a lot of discussion with the planning commission about what was appropriate on that site. The city is undertaking a study of that area and in previous studies, it was suggested as appropriate for medium density multi- family housing, such as townhouses. Councilmember Miller asked how the next steps happen, Mr. Walther stated it will be taken in stages. Mr. Haimening stated it could also be addressed based on the council's priorities. Communications/Meeting Check -In (Verbal) None. The meeting adjourned at 7:20 p.m. Written Reports provided and documented for recording purposes only: