HomeMy WebLinkAbout2018/07/09 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
JULY 9, 2018
(City Manager Harmening out)
6:15 p.m. SPECIAL CITY COUNCIL MEETING – Council chambers
1.Call to order
1a. Pledge of allegiance
1b. Roll call
4.Approval of agenda and items on consent calendar
NOTE: The consent calendar lists those items of business which are considered to be routine and/or which
need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a
councilmember or a member of the audience, that item may be moved to an appropriate section of the
regular agenda for discussion. The items for the consent calendar are listed on the last page of the agenda.
Recommended action:
Motion to approve the agenda as presented and items listed on the consent calendar; and to waive
reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the
agenda, or move items from consent calendar to regular agenda for discussion.)
6. Public hearings
6a. Approve first reading of an ordinance vacating portions of drainage and utility
easements and set the second reading of ordinance for July 16, 2018.
6:30 p.m. STUDY SESSION – Community room
Discussion items
1. 6:30 p.m. Future study session agenda planning
2. 6:35 p.m. 2019 municipal elections: ranked-choice voting planning and
implementation
3. 7:35 p.m. Zoning guidelines for transparency requirements
4. 8:05 p.m. Design guidelines for new home construction
8:35 p.m. Communications/updates (verbal)
Written reports
5. Business terms for purchase and redevelopment contract with Bridgewater Bank
6. Special permit minor amendment – Lenox Community Center
7. Community Development Block Grant (CDBG) reallocation for fiscal year 2018
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 of July 9, 2018
City council agenda
CONSENT CALENDAR
4a. Adopt Resolution accepting work and authorizing final payment in the amount of
$135,426.79 for Project 2012-0100 Highway 7 and Louisiana Ave. Interchange with
C.S. McCrossan, Inc., contract no. 65-13.
4b. Authorize execution of a contract for construction administration and observation
services with Short Elliott Hendrickson, Inc. (SEH) in the amount of $379,512 for the
Wooddale Bridge Modifications at Highway 7 – Project No. 4019-9007.
4c. Approve amendment no. 1, between the city and T-Mobile Central LLC, for a
temporary communication antenna on the water tower at 5100 Park Glen Road.
St. Louis Park Economic Development Authority and regular city council meetings are carried live on civic TV cable
channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live
on the internet at www.parktv.org, and saved for video on demand replays. The agenda is posted on Fridays on
the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The
agenda and full packet are available by noon on Friday on the city’s website.
Meeting: Special city council
Meeting date: July 9, 2018
Consent agenda item: 4a
Executive summary
Title: Final payment resolution – Hwy 7 and Louisiana Ave. Interchange – Project 2012-0100
Recommended action: Motion to Adopt Resolution accepting work and authorizing final
payment in the amount of $135,426.79 for Project 2012-0100 Highway 7 and Louisiana Ave.
Interchange with C.S. McCrossan, Inc., contract no. 65-13.
Policy consideration: Not applicable
Summary: On May 20, 2013, the city council awarded a contract in the amount of
$22,295,084.23 for the Highway 7 and Louisiana Ave. Interchange Project. The project included
grade separation of Highway 7 from Louisiana Ave. with the construction of a bridge,
installation of ramps between Highway 7 and Louisiana Ave., removal of three signal systems,
installation of roundabouts, construction of pedestrian and bicycle improvements, upgrade of
city utilities, new pavement, and improved stormwater treatment. This project was identified
as a much needed improvement to meet long term transportation and safety needs of both
MnDOT and the city as well as improving quality of life and supporting redevelopment needs in
this area of the city.
The contractor completed the work in fall 2014, with landscaping installed in spring 2015. The
final contract cost is $25,612,352.36. The final cost includes change orders, quantity overruns,
and other minor changes to the project scope during construction.
Financial or budget considerations:
The final cost of the work performed by the contractor under Contract No. 65-13 has been
calculated as follows:
Original contract $22,295,084.23
Additional work $3,317,268.13
Total construction costs $25,612,352.36
Previous payments $25,476,925.57
Balance due $135,426.79
This project was planned for and included in the city’s adopted Capital Improvement Plan (CIP)
and paid for using a variety of funding sources including: Federal Aid, MnDOT, Municipal State
Aid, HRA Levy, Development fund, utility funds, and Met Council.
Strategic priority consideration: St. Louis Park is committed to providing a variety of options for
people to make their way around the city comfortably, safely and reliably.
Supporting documents: Discussion
Resolution
Prepared by: Joseph Shamla, Sr. Engineering Project Manager
Reviewed by: Debra Heiser, Engineering Director
Approved by: Tom Harmening, City Manager
Special city council meeting of July 9, 2018 (Item No. 4a) Page 2
Title: Final payment resolution – Hwy 7 and Louisiana Ave. Interchange – Project 2012-0100
Discussion
Background: The construction of the Highway 7 and Louisiana Ave. Interchange began in the
summer of 2013. The interchange has been open to traffic since the end of 2014. This
monumental undertaking is the single largest infrastructure construction contract that the city
of St. Louis Park has undertaken.
During construction several unexpected items came up that added to the cost of the project.
The final project cost is $3,317,268.13 (13%) over the original contract amount. Additional
contaminated soil accounted for a significant portion of the extra costs, totaling $2,441,982. In
addition, there was work completed per approved work orders and change orders totaling
$903,932. This additional work was necessary to ensure that the city received a quality product
that will last for many years. What follows is a description of some of additional contract costs:
•The project is located near the Reilly Tar and Chemical Superfund Site. Many
environmental soil borings were completed during the design phase of the project to
determine the extents of the contaminated soils and groundwater. As the groundwater
rose in height from unusual precipitation, it contaminated more soils than were
anticipated. The increase in contaminated soils required more time for the contractor as
they needed to remove the contaminated material and bring in new fill.
•Any sanitary sewer pipe which was installed in or near the contaminated soil needed
special gaskets which would not be affected by the contaminated soil. The gaskets
which come with the pipe would have been damaged due to the contamination from
the Reilly Tar and Chemical Superfund Site.
•In order to keep traffic flowing on Highway 7 and the south Highway 7 frontage road,
super duty silt fence was needed. This type of silt fence works as a temporary retaining
wall as it can hold soil in-place until a more permanent solution can be constructed.
•The plan for the watermain which crossed Highway 7 did not include a steel casing. The
steel casing is necessary so that the watermain can be accessed without disturbing the
footings of the bridge or the northbound lanes of Louisiana Ave.
•When the roundabouts first opened, users were having issues determining who should
yield. We met with a traffic consulting engineer from SEH who suggested additional
pavement markings to limit the confusion of the users of the roundabout.
Financial considerations: The final cost of the work performed by the contractor under
Contract No. 65-13 has been calculated as follow:
Original contract $22,295,084.23
Additional work $3,317,268.13
Total construction costs $25,612,352.36
Previous payments $25,476,925.57
Balance due $135,426.79
The cost of construction exceeded the original contract cost by 13%.
Special city council meeting of July 9, 2018 (Item No. 4a) Page 3
Title: Final payment resolution – Hwy 7 and Louisiana Ave. Interchange – Project 2012-0100
Funding
What follows is a breakdown of the various funding sources used to finance this project.
Final Project Cost
Construction cost $25,604,950.32
Engineering and administration $4,283,620.18
Land acquisition/right-of-way $1,542,455.58
Total $31,431,026.08
Funding Sources
Municipal State Aid $1,270,200.13
Federal Aid $11,152,054.00
Transportation Economic Development (TED) Program Grant $3,000,000.00
MnDOT Access Management $1,000,000.00
MnDOT Cooperative Agreement $594,000.00
Met Council Environmental Services (forcemain) $3,113,274.00
Development Fund (Art) $68,130.00
Utility Funds $314,276.00
HRA Levy $10,919,091.95
Total $31,431,026.08
Special city council meeting of July 9, 2018 (Item No. 4a) Page 4
Title: Final payment resolution – Hwy 7 and Louisiana Ave. Interchange – Project 2012-0100
Resolution No. 18-___
Resolution authorizing final payment
and accepting work for the
Highway 7 and Louisiana Ave. interchange
City Project No. 2012-0100
Contract No. 65-13
Now therefore be it resolved by the City Council of the City of St. Louis Park, Minnesota, as
follows:
1.Pursuant to a written contract with the city dated May 20, 2013, C.S. McCrossan
Construction, Inc. has satisfactorily completed the Highway 7 and Louisiana Ave.
Interchange Project as per Contract No. 65-13.
2.The engineering director has filed her recommendations for final acceptance of the
work.
3.The work completed under this contract is accepted and approved. The final contract
cost is $25,612,352.36.
4.The city manager is directed to make final payment in the amount of $135,426.79 on
this contract, taking the contractor’s receipt in full.
Reviewed for administration: Adopted by the city council July 9, 2018
Thomas K, Harmening, City Manager Jake Spano, Mayor
Attest:
Melissa Kennedy, City Clerk
Meeting: Special city council
Meeting date: July 9, 2018
Consent agenda item: 4b
Executive summary
Title: Approve consultant contract for Wooddale Bridge construction services – project no.
4019-9007
Recommended action: Motion to authorize execution of a contract for construction
administration and observation services with Short Elliott Hendrickson, Inc. (SEH) in the amount
of $379,512 for the Wooddale Bridge Modifications at Highway 7 – Project No. 4019-9007.
Policy consideration: Does the city council wish to move forward with the modifications to the
Wooddale Avenue Bridge?
Summary: Modifications to the Wooddale Avenue Bridge over Highway 7 are expected to start
mid-July. Consultant assistance is needed for construction observation and administration due
to work load and technical demands for this project. Staff recommends using SEH because they
designed the bridge modifications and have a comprehensive understanding of the project.
The overall project budget anticipated the construction administration and observation would
be completed by a consultant due to their expertise in bridge construction inspection.
Financial or budget considerations: This project is included in the city’s Capital Improvement
Plan (CIP) for 2018. Funding for the construction services contract will be provided using tax
increment funds from the Elmwood TIF District and General Obligation Bonds.
Strategic priority consideration: St. Louis Park is committed to providing a variety of options for
people to make their way around the city comfortably, safely and reliably.
Supporting documents: Discussion
Prepared by: Jack Sullivan, Senior Engineering Project Manager
Reviewed by: Joseph Shamla, Senior Engineering Project Manager
Approved by: Nancy Deno, Deputy City Manager/HR Director
Special city council meeting of July 9, 2018 (Item No. 4b) Page 2
Title: Approve consultant contract for Wooddale Bridge construction services – project no. 4019-9007
Discussion
Background: A construction contract in the amount of $2,100,071.16 was awarded to Kraemer
North America, LLC at the June 18, 2018 city council meeting. This contract is to construct the
modifications for the Wooddale Avenue Bridge over Highway 7. The construction services
contract with SEH is necessary to ensure that the contractor builds the bridge per the contract
documents.
Project Costs
$2,100,071.16
$384,655.00
$379,512.00
$2,864,238.16
$15,273.50
$2,848,964.66
Construction cost
Engineering
Construction services
Total
Funding sources
Fiber Conduit (GO Bonds)
Elmwood TIF District
Total $2,864,238.16
Next steps: Construction is expected to begin mid-July and is anticipated to be completed late
fall 2018. There will be lane closures and detours to safely facilitate the modifications to the
bridge. Construction updates will be communicated to the community via our neighborhood
and social media platforms.
Meeting: Special city council
Meeting date: July 9, 2018
Consent agenda item: 4c
Executive summary
Title: Lease amendment no. 1 to city agreement no. 20-17 with T-Mobile
Recommended action: Motion to approve amendment no. 1, between the city and T-Mobile
Central LLC, for a temporary communication antenna on the water tower at 5100 Park Glen
Road.
Policy consideration: Does the city council want to continue collecting revenue from cellular
providers in exchange for allowing them to place antennas on city property?
Summary: Original Agreement - In 1996, the city negotiated an antenna lease agreement with
T-Mobile (f/k/a American Portable Telecom) for placement of six communication antennas on
the Park Glen water tower. The agreement was for a five-year term with the option of three
renewable five-year terms. The original agreement was amended three times. The
amendments revised the ground equipment location, added an E911GPS antenna, upgraded
antennas and added three additional antennas and three additional auxiliary boxes. The
agreement, including amendments, allowed for nine antennas and nine auxiliary boxes on the
water tower. The original agreement, including renewals, expired December 31, 2016.
New Amended and Restated Agreement – With the assistance of the city attorney, staff revised
the lease language and renegotiated a new agreement with T-Mobile. The number of antennas
(nine), number of auxiliary boxes (nine), and other related equipment is not changing. The
agreement is for a five-year term with the option of two renewable five-year terms.
Amendment No. 1 – T-Mobile desires to amend the agreement to temporarily install a one (1)
12-inch diameter microwave dish and one (1) ODU Radio on the mounting pole of one of the
existing antennas along with one (1) ½ inch diameter cable, with the cable running from the
microwave dish and ODU Radio inside the water tower to Lessee’s ground space equipment
area, to expand their communication capabilities. This results from T-Mobile needing to
relocate antennas, from a non-city site, due to LRT land acquisition by the Met Council. The
temporary installation will be in place for approximately six months. The permanent antenna
location will be on the new monopole being constructed at TH 7 and Lake St.
Financial or budget considerations: T-Mobile will pay the city 1,850 for the six-month term of
the contract (July 10, 2018 to January 10, 2019). Rent shall increase $500 per month for each
additional month the microwave equipment is on the water tower beyond the end of the term.
Strategic priority consideration: Not applicable.
Supporting documents: Amendment No. 1 to the agreement
Prepared by: Scott Merkley, Public Works Services Manager
Reviewed by: Cynthia S. Walsh, Director of Operations and Recreation
Approved by: Tom Harmening, City Manager
Special city council meeting of July 9, 2018 (Item No. 4c) Page 2
Title: Lease amendment no. 1 to city agreement no. 20-17 with T-Mobile
City of St. Louis Park
Amendment no. 1 to water tower antenna agreement contract no. 20-17
(T-Mobile Site No. A1P0022A)
This amendment no. 1 to water tower antenna agreement (“Amendment) is made this
______ day of _______________________, 2018, by and between the City of St. Louis Park,
Minnesota (“City”) and T- Mobile Central LLC, a Delaware limited liability company, whose
address is 12920 SE 38th St., Bellevue, WA 98006 (hereinafter referred to as "lessee").
Recitals
A.City and lessee, or their predecessors in interest, are parties to a water tower
antenna amended and restated agreement dated March 6, 2017 (“agreement”) whereby city
has leased a portion of city’s real property (the “property”) and water tower to lessee, along
with access and utility rights.
B.City and lessee desire to amend the agreement to provide for temporary
additional equipment being added to the water tower.
C.The lessee desire to amend the agreement to temporarily install a one (1) 12
inch diameter microwave dish and one (1) ODU Radio on the mounting pole of one of the
existing antennas along with one (1) ½ inch diameter cable (hereinafter referred to as
microwave dish equipment), with the cable running from the microwave dish and ODU Radio
inside the water tower to lessee’s ground space equipment area, to expand their
communication capabilities.
Agreement
Now, therefore, in consideration of the facts contained in the Recitals above, the mutual
covenants and conditions below, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
1.Term. The parties agree to a term of six (6) months, commencing July 10, 2018
and ending January 10, 2019, so that the lessee may use the microwave dish equipment in
addition to the lessee's current antennas and related equipment already allowed under the
terms of the existing amended and restated water tower antenna lease agreement.
2.Plans and specifications. The parties agree the micro dish installation shall be
done, as shown in the "plans and specifications" dated June 6, 2018, attached hereto as
“Exhibit C-1" ("plans and specifications").
3.Rent. The lessee shall pay the city, as rent, one thousand eight hundred fifty and
00/100 dollars ($1,850) per year (“rent”) for the six-month term of the contract, within thirty
(30) days of execution of this amendment, attached hereto as “Exhibit D-1”. Rent shall increase
$500 per month for each additional month the microwave equipment is on the water tower
Special city council meeting of July 9, 2018 (Item No. 4c) Page 3
Title: Lease amendment no. 1 to city agreement no. 20-17 with T-Mobile
beyond the end of the term, until removal and restoration are complete as defined in the plans
and specifications (Exhibit C-1). An additional month is defined as any day within the next
calendar month (e.g. the first additional month is from Jan. 11, 2019 – Feb. 11, 2019, the
second additional month is from Feb. 12 – March 12, 2019, etc.). There will not be any refund if
the equipment is removed prior to the end of the 6-month term.
4.Inspection costs. The lessee is responsible for paying the cost of the consultant,
hired by the city, for plan review and inspection services to ensure that the work authorized by
this amendment is done to city standards and in accordance with the requirements of the
agreement and this amendment.
5.Terms and conditions. Except as specifically modified by this amendment, the
parties agree that all of the terms and conditions of the agreement are in full force and effect
and remain unmodified, and the parties hereby ratify and reaffirm the terms and conditions of
the agreement and agree to perform and comply with the same. In the event of a conflict
between any term or provision of the agreement and this amendment, the terms and
provisions of this amendment shall control. In addition, except as otherwise stated in this
amendment, all initially capitalized terms will have the same respective defined meaning stated
in the agreement.
In witness whereof, city and lessee have caused this amendment to be executed by each
party’s duly authorized representative on the date written below.
City: Lessee:
City of St. Louis Park, Minnesota T-Mobile Central LLC
By: ___________________________ By: _______________________________
Jake Spano, Mayor _________________________ (Print Name)
Its: ___________________________ (Title)
By: ___________________________ Date: _____________________________
Thomas K. Harmening, City Manager
Date: _________________________
Meeting: Special city council
Meeting date: July 9, 2018
Public hearing: 6a
Executive summary
Title: First reading of ordinance vacating portions of drainage and utility easements for 4400
and 4424 Excelsior Blvd. and 3743 Monterey Drive
Recommended action: Mayor to open the public hearing, take testimony, and then close the
public hearing. Motion to approve first reading of an ordinance vacating portions of drainage
and utility easements and set the second reading of ordinance for July 16, 2018.
Policy consideration: Are the drainage and utility easements needed for public purposes?
Summary: The city proposes to vacate portions of utility easements located at 4400 and 4424
Excelsior Boulevard and 3743 Monterey Drive to allow for the construction of the Bridgewater
Bank Corporate Center. Additional right-of-way and new drainage and utility easements will be
dedicated as part of the plat of Bridgewater Addition approved by city council Resolution 18-
082. The portions of easements to be vacated are no longer needed by the city, county, or
public utility companies for any public purpose. The easements must be vacated in order for
the approved development to proceed.
A public hearing is required for the vacation request. The second reading of the ordinance is
scheduled for the July 16, 2018 city council meeting, on the consent agenda.
The ordinance requires an affirmative vote of at least five councilmembers.
Financial or budget considerations: None at this time.
Strategic priority consideration: Not applicable.
Supporting documents: Site location map, map of easements to be vacated, draft ordinance,
Resolution 18-082
Prepared by: Jennifer Monson, Planner
Reviewed by: Sean Walther, Planning and Zoning Supervisor
Karen Barton, Community Development Director
Approved by: Nancy Deno, Deputy City Manager/HR Director
Special city council meeting of July 9, 2018 (Item No. 6a) Page 2
Title: First reading of ordinance vacating portions of drainage and utility easements for 4400 and 4424 Excelsior
Blvd. and 3743 Monterey Drive
Site location map.
Map of utility easements to be vacated.
3743 Monterey
4400 Excelsior
4424 Excelsior
Special city council meeting of July 9, 2018 (Item No. 6a) Page 3
Title: First reading of ordinance vacating portions of drainage and utility easements for 4400 and 4424 Excelsior
Blvd. and 3743 Monterey Drive
Draft ordinance
Ordinance No. ___-18
An ordinance vacating portions of drainage and utility easements
4400 and 4424 Excelsior Boulevard and 3743 Monterey Drive
The City of St. Louis Park does ordain:
Section 1. The petition to vacate the drainage and utility easements was initiated by the
city and supported by Bridgewater Bank. The notice of said petition has been published in the
St. Louis Park Sailor on June 28, 2018 and the city council has conducted a public hearing upon
said petition and has determined that the easements are not needed for public purposes, and
that it is for the best interest of the public that said easements be vacated.
Section 2. The following described easements as now dedicated and laid out within the
corporate limits of the City of St. Louis Park and shown in attachment A, are vacated:
That part of the easement dedicated in Block 2, Minikahda Vista 2nd addition,
according to the recorded plat thereof, Hennepin County, Minnesota, lying 5.00
feet southeasterly of the northwesterly lines of Lots 10, 11, 12, 13, 14, 15 and 16,
said Block 2.
Together with that part of said easement lying 5.00 feet northwesterly of the
southeasterly lines of Lots 17 and 34, said Block 2.
Together with that part of said easement lying 5.00 feet northwesterly of that
part of the southeasterly line of Lot 35, said Block 2, lying south of the westerly
extension of the north line of said Lot 10.
Together with that part of said easement lying 5.00 feet northeasterly of the
southwesterly line of said Lot 34.
Together with that part of said easement lying 5.00 feet southwesterly of the
northeasterly lines of Lots 17, 18 and 19, said Block 2.
Together with that part of said easement lying 5.00 feet southerly of that part of
the northerly 5.00 feet of Lot 20, said Block 2, lying easterly of a line drawn 35.00
feet easterly of and parallel with a line described as beginning at a point 30.00
feet southwesterly of the most southerly corner of said Lot 17, as measured at
right angles to the southwesterly line of said Lot 17; thence northwesterly,
parallel with said southwesterly line, 142.63 feet; thence northwesterly 239.95
feet along a tangential curve having a radius of 4146.90 feet and a central angle
of 3 degrees 18 minutes 55 seconds and said line there terminating.
Special city council meeting of July 9, 2018 (Item No. 6a) Page 4
Title: First reading of ordinance vacating portions of drainage and utility easements for 4400 and 4424 Excelsior
Blvd. and 3743 Monterey Drive
Section 3. The city clerk is instructed to record certified copies of this ordinance in the
Office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be.
Section 4. This ordinance shall take effect fifteen days after its publication.
Reviewed for administration: Adopted by the city council July 16, 2018
Thomas K. Harmening, City Manager Jake Spano, Mayor
Attest: Approved as to form and execution:
Melissa Kennedy, City Clerk Soren Mattick, City Attorney
Public hearing/first reading July 9, 2018
Second reading July 16, 2018
Date of publication July 26, 2018
Date ordinance takes effect August 10, 2018
Special city council meeting of July 9, 2018 (Item No. 6a) Page 5
Title: First reading of ordinance vacating portions of drainage and utility easements for 4400 and 4424 Excelsior
Blvd. and 3743 Monterey Drive
Attachment A
Meeting: Study session
Meeting date: July 9, 2018
Discussion item: 1
Executive summary
Title: Future study session agenda planning
Recommended action: The city council and city manager to set the agenda for the regularly
scheduled study session on July 23, 2018. Note that a special city council meeting is also
scheduled for that evening prior to the study session.
Policy consideration: Not applicable.
Summary: This report summarizes the proposed agenda for the regularly scheduled study
session on July 23, 2018. Also attached to this report is the study session prioritization and
tentative discussion timeline.
Financial or budget considerations: Not applicable.
Strategic priority consideration: Not applicable.
Supporting documents: Tentative agenda – July 23, 2018
Study session prioritization and projected discussion timeline
Prepared by: Debbie Fischer, Administrative Services Office Assistant
Approved by: Nancy Deno, Deputy City Manager/HR Director
Study session meeting of July 9, 2018 (Item No. 1) Page 2
Title: Future study session agenda planning
6:30 p.m. – Study session – Community room
Tentative discussion items
1.Future study session agenda planning – Administrative services (5 minutes)
2.Firearm sales – Administrative services (45 minutes)
Council would like time to discuss regulations and options regarding firearm sales within
the city of St. Louis Park. Chief Harcey will attend the study session.
3.Discuss public process expectations and outcomes – Information resources (60 minutes)
Council requested time at a study session to discuss public process. Communications staff
will provide information related to this discussion.
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.
Written reports
4.June 2018 monthly financial report
5.Second quarter investment report (Apr-June 2018)
6.2019 Cedar Lake Road improvement project update
Study session meeting of July 9, 2018 (Item No. 1) Page 3
Title: Future study session agenda planning
Study session prioritization and projected discussion timeline
Priority Discussion topic Comments Date
4 Revitalization of Walker Lake area
Part of preserving Walker building reports:
8/28/17, 9/25/17, 1/22/18, design study
2/12/18, update 4/23/18
Ongoing
4 Zoning guidelines for front-facing
buildings with windows not papered over 7/9/18
4 Finalize council norms Reviewed on 5/7/18; deferred to a future
study session on 5/21/18 TBD
4 Establish a local housing trust fund Discussed 5/14/18. Staff following up. TBD
4 Policy for funding nonprofits Discussed on 4/9/18. Staff following up. TBD
4 Communication to human rights
commission on council expectations Postponed (B&C discussion) TBD
3 Develop a youth/senior advisory
ii
Postponed (B&C discussion) TBD
3 Historical society space Part of Walker building discussions on
8/28/17, 11/20/17, 12/11/17, 4/23/18 Ongoing
3 Design guidelines - New home construction 7/9/18
3 Discuss and evaluate our public process 7/23/18
3 Living streets policy 3rd Qtr.
2018
3 Minimum wage ordinance Discussed on 6/11/18; continued until fall
after Citizens League study completed Sept/Oct.
3 Retail/service/liquor stores size Discussed on 6/11/18; referred to PC TBD
3 Crime free ordinance/affordable housing
strategies Discussed 5/14/18. Staff following up. TBD
3 Easy access to nature, across city, starting
with low-income neighborhoods TBD
2 SEED’s community greenhouse/resilient
cities initiative TBD
2 Bird friendly glass TBD
2 Dark skies ordinance (light pollution) TBD
2 Community center project TBD
2 Revitalization of Monkey Island TBD
? Firearm sales Discussed 5/21/18. Staff following up. 7/23
? Utility pricing policy TBD
4 Race equity/inclusion courageous
conversations Presented 6/4/18 Completed
4 Creating an affirming environment for
transgender individuals Presented 6/4/18 Completed
3 The Nest Funding agreement approved 6/4/18 Completed
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: July 9, 2018
Discussion item: 2
Executive summary
Title: 2019 municipal elections: ranked-choice voting planning and implementation
Recommended action: None at this time. This is the second in a series of discussions regarding
the development of the rules of conduct for municipal elections.
Policy consideration: Does the city council support allowing voters in St. Louis Park to rank at
least three (3), but not more than six (6), candidates for each office in order of preference?
Summary: On June 11, 2018 the city council agreed with following the Minneapolis model for
the development of the rules for conduct of municipal elections using a ranked-choice
method. As a part of that discussion, the city council also directed staff to define ranked-choice
voting using plain language (see discussion on p. 2 for definition).
In addition to defining ranked-choice voting, the rules must also define the ballot design style
and format to be used in municipal elections. The central question that must be addressed is
the number of rankings a voter will be allowed for a single office. The main factors to consider
about ballot design style and format are:
•In order to ensure voters understand and are comfortable using a RCV ballot, the ballots
should, wherever possible, conform to the ballot format styles established in Minnesota
Statutes and Rules for statewide elections.
•The number of rankings allowed for each race on the ballot must fit within the overall
framework established in state laws and regulations.
•The ballot style and the number of rankings allowed need to be compatible
with existing, certified technology that complies with the tabulation method that has
been tested and used in Minneapolis and administratively supported by
Hennepin County.
•Allow for future opportunities to increase the number of rankings voters are allowed for
a single office as new voting equipment and software become available.
In the Minneapolis model, the ballot format provides for at least three (3) rankings for each
office on the ballot (when at least three (3) candidates have filed for one office).
Staff recommends following the Minneapolis model by allowing at least three (3) rankings and
adding language that not more than (6) rankings will be allowed for any office on the ballot.
This language would allow for a potential increase in the number of rankings allowed at such
time that new equipment or technology is available to tabulate beyond three (3) rankings.
Additionally, allowing for up to six (6) rankings has been shown to reduce the number of
exhausted ballots in large, competitive elections.
Financial or budget considerations: Funds have been included in the 2019 budget for RCV.
Strategic priority consideration: Not applicable.
Supporting documents: None.
Prepared by: Melissa Kennedy, City Clerk
Approved by: Nancy Deno, Deputy City Manager/HR Director
Study session meeting of July 9, 2018 (Item No. 2) Page 2
Title: 2019 municipal elections: ranked-choice voting planning and implementation
Discussion
Key definitions: The following definitions will be used when discussing ballot format:
•Chief election official means the city clerk and includes the city clerk’s designee(s).
•Ranked-choice voting means an election method in which voters rank candidates for an
office in order of their preference and ballots are counted in rounds where votes are
distributed to candidates according to the preferences marked on each ballot until one
(1) candidate meets the threshold, or until two (2) candidates remain and the candidate
with the greater number of votes is declared elected.
•Ranking means the number assigned by a voter to a candidate to express the voter’s
preference for that candidate. Ranking number one (1) is the highest ranking. A ranking
of lower numerical value indicates a greater preference for a candidate than a ranking
of higher numerical value.
Rules for ballot format: The following rules related to ballot format will be included in the final
ordinance. This will allow St. Louis Park to ensure that ballots for municipal elections comply
with state law, are compatible with the existing, certified election equipment used in Hennepin
County, can accommodate school district races (non-ranked-choice) on the same ballot, and
that the results are able to be reproduced via hand count in the event a recount is necessary.
(a) Ballot format.
1.When there are three (3) or more candidates for a single office, a ballot must allow a
voter to rank at least three (3), but not more than six (6), candidates for each office in
order of preference and must also allow the voter to add write-in candidates.
2.A ballot must include instructions to voters that clearly indicate how to mark the ballot
so as to be read by the election judges conducting the count, or if voting equipment is to
be used, so as to be read by the voting equipment used to tabulate results.
3.A ballot must include instructions to voters that clearly indicate how to rank candidates
in order of the voter’s preference.
4.A ballot must indicate the number of seats to be elected for each office.
(b) Mixed-election method ballots. If elections are held in which ranked-choice voting is used in
addition to other methods of voting, the ranked-choice voting and non-ranked-choice voting
elections must be on the same ballot if possible, with ranked-choice voting and non-ranked-
choice voting portions clearly separated on the ballot. If placement of all offices to be elected
cannot be placed on a single ballot, a separate ballot may be used for those offices to be
elected using ranked-choice voting. The city may deviate from the standard ballot order of
offices to allow separation of ranked-choice voting and non-ranked-choice voting elections.
(c) Ballot format rules. The chief election official shall establish administrative rules for ballot
format for each voting mechanism that is selected. All rules shall be adopted in accordance with
this section.
Ballot design considerations:
•Current equipment capabilities – Hennepin County is responsible for the election
definition that accompanies each election event. This includes the responsibility for
programming ballot design, maintaining election equipment, and facilitating election
reporting across all precincts. The systems controlled by Hennepin County are limited in
Study session meeting of July 9, 2018 (Item No. 2) Page 3
Title: 2019 municipal elections: ranked-choice voting planning and implementation
flexibility by the capabilities of the existing equipment and software. Each jurisdiction
within the county must use a single election definition common to all jurisdictions
conducting an election on a given day, current software does not support two distinct
election definitions or ballot designs within the voting system. This creates a
technological barrier that must be factored into any decision related to the design of an
RCV ballot.
• Ballot design styles – In RCV elections across the United States, there are three main
designs used for RCV ballots; a 3-column ballot design, a 3-column “stacked” design, and
a “grid” design, sometimes referred to as a “Cambridge style” ballot. All three ballot
design styles will be reviewed with council at the study session.
• After considering existing state laws and regulations related to ballot design and the
current capabilities of the existing election equipment (hardware, software, and
firmware), it is recommended that St. Louis Park use the 3-column ballot design. This is
the same design currently used in Minneapolis and supported by Hennepin County.
Three-column ballot design (recommended)
The three-column ballot design allows voters to rank up to three (3) choices for a given race on
the ballot. Three choices are recommended at this time because although this design is
consistent with the design of ballots used in state primary and general elections, adding
additional choices to a three-column ballot style would necessitate a multiple page ballot for
each voter. This would present serious technical issues, including the fact that the current
assistive voting technology equipment used in precincts (AutoMARK) cannot process a multi-
page ballot and the Cast Vote Record exportable data file (used to expedite the tabulation
process for RCV elections) cannot reconcile the number of voters to the number of ballots cast.
The three-column ballot design has been successfully used and vetted in Minneapolis for RCV
elections and is currently supported by Hennepin County.
Alternative ballot designs
At this time use of either a three-column “stacked” design or a “grid” design is not
recommended as there are concerns with compliance with current state law. Additionally, the
“grid” design is not supported by current software. Although the county’s current equipment
vendor, ES&S, has designed a software utility as a potential workaround, it is not currently
certified for use in Minnesota. If the “grid” design and software utility was certified and
permissible under state election law, the process to tabulate vote totals would need to be
developed, tested, and vetted to verify the accuracy of votes cast using this design.
Additionally, the city may have to purchase the software utility on its own and discussions
would be required with Hennepin County to determine if they would continue to provide
“back-end” support for election definition, programming, and reporting functions.
Future design considerations
The city’s goal going forward will be pursuing a ballot design which maximizes a voter’s
opportunity to express more than three (3) preferences in any race, potentially to offer as many
as six (6) rankings for each office. We will collaborate with the City of Minneapolis, Hennepin
County, and ES&S to identify and evaluate opportunities for future improvements that could
include changes in ballot design, operating systems, and technical enhancements. Our main
Study session meeting of July 9, 2018 (Item No. 2) Page 4
Title: 2019 municipal elections: ranked-choice voting planning and implementation
focus will continue to be ensuring voters understand and comfortable using the RCV ballot and
we are committed to continual analysis and improvement.
Equity and inclusion considerations: Increasing the diversity of candidates for city offices was a
stated goal of the city council at the time the policy decision was made to switch to the ranked-
choice method. When choosing the number of rankings to allow it is important to be mindful of
the barriers or challenges that come into play before a candidate's name ever appears on a
ballot. Factors that influence a person's decision to run for office may include: age, race,
gender, income level, interest or desire to serve, social network, cost, time commitment, length
of time living in community, language, familial responsibilities, education, and employment.
While allowing voters more choices may help a non-traditional candidate feel that they have a
better chance of being elected and that may factor into their decision to run for office, it is
important to consider whether or not the number of rankings allowed will directly impact the
diversity of the candidate pool. The ranked-choice method is one tool that can be used to try to
remove a barrier for non-traditional candidates. What other tools are available? Can city
policies or procedures influence all of the potential barriers?
Meeting: Study session
Meeting date: July 9, 2018
Discussion item: 3
Executive summary
Title: Zoning guidelines for transparency requirements
Recommended action: Direct the planning commission to explore and propose a zoning
ordinance text amendment regarding minimum transparency standards for street facing
facades on the ground floor.
Policy consideration: What are the city council goals in relation to the transparency standards?
Are there specific areas in the city or specific types of developments that are of higher priority
for implementing transparency standards?
Summary: The city currently regulates the amount of ground-floor transparency in commercial
buildings to increase the interaction between the internal spaces of a building with the public
realm. The goals of this regulation are to allow people inside buildings to easily observe street
life and to improve public safety. Transparency regulations are particularly important in areas
where there is high pedestrian traffic, as transparency can help create a vibrant street. Ground
floor windows and transparent doors may also strengthen the commercial viability of a use by
attracting customers and adding to the enjoyment of the pedestrian’s experience on the street.
The city’s architectural zoning regulations, which regulate all non-residential buildings in the
city, do not currently address ground-floor transparency. However, the city has negotiated
minimum transparency requirements for buildings approved as part of planned unit
developments that were located along streets where high pedestrian traffic was encouraged.
Recent mixed-use development projects have provided between 60% to 70% minimum ground
floor transparency for street-facing facades.
This can be a simple requirement that windows cannot be covered greater than 10%. However,
there are also many nuances to consider in regard to ground-floor transparency, including but
not limited to: minimum window requirements at the pedestrian level, depth of transparency
(ability to see into the building for a certain number of feet), light reflectance standards, use
requirements, and guidelines allowing for the display of merchandise. Also, there are
competing interests where interior layouts that work best for some businesses are in direct
conflict with such transparency requirements.
Staff is requesting city council provide direction regarding the policy considerations listed above
and refer this matter to the planning commission for discussion and recommendations.
Financial or budget considerations: None at this time
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
Prepared by: Jennifer Monson, Planner
Reviewed by: Sean Walther, Planning and Zoning Supervisor
Karen Barton, Community Development Director
Approved by: Nancy Deno, Deputy City Manager/HR Director
Study session meeting of July 9, 2018 (Item No. 3) Page 2
Title: Zoning guidelines for transparency requirements
Discussion
Background: Some cities around the country regulate ground floor transparency in mixed-use
and pedestrian oriented neighborhoods. Requirements generally focus on the street-facing
pedestrian zone, and include standards for minimum transparency, maximum reflectance,
window coverage (signs), and limits for the storage of equipment. Most cities allow the display
of merchandise. In some cases, these requirements are included as part of a form-based code,
which specifically regulates the form of buildings and the interaction of a building with the
public realm (i.e. streets and sidewalks).
Historically St. Louis Park has not regulated ground floor transparency except for developments
that have been approved as part of a planned unit development (PUD) including but not limited
to: The West End, 4800 Excelsior, The Elmwood, PLACE, and the Bridgewater Bank Corporate
Center. These projects have provided a minimum of 60% to 70% ground-floor transparency.
Limits have been placed on window signs, and include a minimum depth of visibility into the
building.
These transparency standards have been negotiated by staff, which has often been a challenge
as retailers are primarily focused on the layout of their spaces within the building, with less
attention paid to the public realm.
One exception is that licenses for the sale of alcoholic beverages include the following
restrictions on covering over windows and doors: 1) the total area of signs in windows shall not
exceed 50% of the total area of windows fronting a street; 2) signs shall not be displayed on
doors; and 3) doors shall not be included in the window area for purposes of determining the
50% maximum coverage.
The West End:
•60% glazing for street facing facades
o Excluded the grocery store
•Max 10% opaque or with signs
•Visibility 3 ft. depth
•Entrance location standards
4800 Excelsior
•Primarily transparent at pedestrian
level
o Applied to Excelsior Blvd frontage
only
•Max 10% opaque
•Visibility 3 ft. depth
Study session meeting of July 9, 2018 (Item No. 3) Page 3
Title: Zoning guidelines for transparency requirements
The Elmwood:
•65% transparency street
facing facades
•Max 10% opaque
•Active uses minimum 15 ft.
•Visibility 10 ft. depth
PLACE
•60% transparency street
facing facades (+woonerf)
•Max 10% opaque
•Active uses minimum 15 ft.
•Visibility 10 ft. depth
Bridgewater Bank
Corporate Center
•70% transparency for
street facing facades
•Max 10% opaque
•Active uses minimum 15 ft.
•Visibility 10 ft. depth
Present considerations: The city would like to explore the possibility of adding new zoning code
architectural design transparency standards. The standards would likely apply to ground level,
street-facing facades, especially in areas with high pedestrian activity. The goal of the
transparency standards would include encouraging more active, vibrant, and safe street life.
Transparency standards may not be desirable in all areas of the community, especially in
industrial areas or commercial zones that are more auto-centric including larger commercial
retail and grocery stores, however more research and discussion is needed.
Study session meeting of July 9, 2018 (Item No. 3) Page 4
Title: Zoning guidelines for transparency requirements
Also, some exceptions or alternatives may need to be considered to address “back of house”
operations, privacy concerns, and product sensitivities.
Understanding specifically what city council hopes to achieve with transparency standards will
help the planning commission and staff direct research and energies appropriately as we
develop the zoning code amendment for council’s consideration. Are there areas in the city or
specific types of developments that are of higher priority for city council with regards to
transparency standards?
Next steps: Staff will present the city council’s input to the planning commission and undertake
a review of ground-floor transparency standards in the coming months, and ask that planning
commission propose a zoning text amendment for city council’s consideration.
Meeting: Study session
Meeting date: July 9, 2018
Discussion item: 4
Executive summary
Title: Design guidelines for new home construction
Recommended action: None at this time
Policy consideration: What questions, concerns, and issues does city council have with regards
to the design of single-family residential houses?
Summary: In 1995, 2006, and 2017 the city completed Vision St. Louis Park, a community-
based strategic plan, where people shared their hopes and dreams for the future of St. Louis
Park to create a community of choice for a lifetime. Providing a wide variety of housing choices,
including “move-up” housing, was highlighted as a priority during each of these processes.
The majority of single-family housing in St. Louis Park was built in the 15 years following the
end of World War II. A significant portion of this housing is considered to be first-time
homebuyer housing by today’s standards. When families desire larger second homes, they are
difficult to find in the community. Several zoning code amendments have been adopted since
the original 1995 Vision St. Louis Park to allow for both the expansion of existing single-family
houses and larger new houses.
The city is in the process of completing a housing market study with the help of Maxfield
Research & Consulting, LLC. Initial findings show a strong demand for new, detached housing.
However, due to land constraints, new single-family housing is mainly confined to infill,
underutilized, teardowns or redevelopment areas. The draft Maxfield Research report, which
when finalized, will be presented to council later this summer, finds the addition of larger
single-family houses will be especially attractive to families who desire to stay in St. Louis Park,
but have outgrown their current home. Many families desire a minimum of three to four
bedrooms, two bathrooms, two-car garages and at least 2,500 square feet.
Single-family residential zoning changes and architectural design standards for new and
remodeled homes are topics that have been explored by city council numerous times over the
years. Further summary of these zoning changes and discussions are provided in this report.
Financial or budget considerations: None at this time
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
Prepared by: Jennifer Monson, Planner
Reviewed by: Sean Walther, Planning and Zoning Supervisor
Karen Barton, Community Development Director
Approved by: Nancy Deno, Deputy City Manager/HR Director
Study session meeting of July 9, 2018 (Item No. 4) Page 2
Title: Design guidelines for new home construction
Discussion
Background: In 1998, city council amended the R1 and R2 zoning districts based on the input
from the 1995 Vision St. Louis Park and the desire to allow for “move-up” housing in the city.
These amendments included a five foot reduction in front yard setbacks, in both the R1 and R2
districts, a ten foot reduction in the R1 rear yard setback, the removal of the maximum floor
area ratio, and the elimination of an additional two foot setback for second stories. Changes
were also made that allowed for an open porch to encroach into the front yard to allow for
greater use of the front yard; allowing more community building opportunities.
These zoning amendments allowed for a greater number of home remodels, however, the city
was still experiencing many variance requests for single-family houses. In 2005 and 2006, St.
Louis Park conducted a housing summit to revisit and consider changes to the city’s policies,
strategies and goals. Several more zoning changes were adopted, and as a result, the number of
variances requested were drastically reduced. A full summary of the housing summit and
zoning changes can be found in the staff report from December 12, 2016: A history of housing
code research and zoning amendments from 2006-2016 written report.
Architectural design standards for new and remodeled houses is a topic that has been explored
by city council numerous times over the years. The most recent discussion was held on January
13, 2014 during a city council study session: agenda and minutes. Each time it was the
consensus of the majority of city council to take no further action towards implementing design
standards as they relate to single-family houses in existing neighborhoods.
Present considerations: City council is interested in discussing design guidelines for new house
construction. City council is also interested in allowing for a greater number of housing choices,
including accessory dwelling units and duplexes in low density residential areas. Allowing
accessory dwelling units and duplexes will require an amendment to the city’s zoning code and
will likely increase the size and massing of homes throughout the city.
The community development department is finalizing a draft of a housing market study
completed by Maxfield Research and Consulting, LLC. This report is a thorough market analysis
of the housing in St. Louis Park, and the findings will be presented to city council late this
summer.
Next steps: If staff is directed to conduct additional research and study, then staff suggests
providing input on the policy consideration, and referring the issue to the planning commission
for further review and recommendation.
Meeting: Study session
Meeting date: July 9, 2018
Written report: 5
Executive summary
Title: Business terms for purchase and redevelopment contract with Bridgewater Bank
Recommended action: Review of proposed business terms for the purchase and
redevelopment contract with Bridgewater Bank, which is scheduled to be presented for formal
consideration at the July 16, 2018 EDA/city council meeting.
Policy consideration: Are the proposed business terms for the provision of tax increment
financing assistance to the Bridgewater Bank Corporate Center project consistent with the
EDA’s expectations and are they acceptable?
Summary: Bridgewater Bank proposes to redevelop three parcels (4424 & 4400 Excelsior
Boulevard and 3743 Monterey Drive) located at the northeast quadrant of Excelsior Boulevard
and Monterey Drive with a 4-story, 84,000 square foot Class A office building that would serve
as its corporate headquarters. As part of the project, Bridgewater Bank proposes to purchase
the vacant EDA property immediately to the north, located at 3743 Monterey Drive.
Additionally, due to extraordinary costs associated with preparing the subject site for the
proposed redevelopment, the Redeveloper has applied to the EDA for Tax Increment Financing
(TIF) assistance. The EDA will be asked hold a public hearing to consider approval of a purchase
and redevelopment contract with Bridgewater Bank and to consider the establishment of the
Bridgewater TIF district on July 16, 2018. A public hearing for and consideration of the
establishment of the Bridgewater TIF district is also scheduled to come before the city council
on July 16, 2018.
Financial or budget considerations: The purchase and redevelopment contract provides for the
sale of the EDA-owned parcel located at 3743 Monterey Drive to the Redeveloper for the
appraised market value of $400,000. The Contract also provides for the provision of $950,000
in tax increment to be reimbursed to the Redeveloper on a "pay-as-you-go" basis, and requires
the redeveloper to reimburse the EDA for all incurred administrative costs associated with the
project.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
April 23, 2018 study session minutes
May 7, 2018 council meeting minutes
Excerpt of unofficial June 4, 2018 city council meeting minutes
Prepared by: Greg Hunt, Economic Development Coordinator
Reviewed by: Karen Barton, Community Development Director
Approved by: Nancy Deno, Deputy EDA Executive Director
Page 2 Study session meeting of July 9, 2018 (Item No. 5)
Title: Business terms for purchase and redevelopment contract with Bridgewater Bank
Discussion
Background: Bridgewater Bank (“redeveloper”) submitted plans to redevelop three properties
totaling 2.42 acres located at the northeast corner of Excelsior Boulevard and Monterey Drive
(“subject site”). Two of the properties, 4400 and 4424 Excelsior Boulevard are owned by
Bridgewater Bank and are occupied by two vacant, structurally substandard, commercial
buildings. The third parcel, 3743 Monterey Drive, is a vacant, remnant property owned by the
EDA which the redeveloper has requested to purchase.
Current proposal: Bridgewater Bank proposes to raze the two structurally substandard
buildings on the subject site and construct a 4-story, 84,000 gross square foot Class A office
building that will serve as its corporate headquarters. The building’s ground floor will include
7,500 square feet of retail/service space, a 7,152 square foot bank branch, and a 4,700 square
foot public area. The middle two floors will serve as the bank’s executive offices. The top floor
will be occupied by a co-working entrepreneurial space designed to foster the growth and
development of small businesses. The project also features a large pedestrian plaza at the
corner of Excelsior Boulevard and Monterey Drive with extensive landscaping, outdoor seating,
and space for public art. The proposed project includes three levels of structured parking with
approximately 280 stalls. The project will be constructed to meet the city’s green building and
building readiness policies, as well as the climate action plan. The second reading of the
ordinance creating the PUD to allow construction of the proposed project on the subject site
was approved by the city council on June 4, 2018 (excerpt of unofficial minutes attached).
Rendering of the proposed Bridgewater Bank Corporate Center
Page 3 Study session meeting of July 9, 2018 (Item No. 5)
Title: Business terms for purchase and redevelopment contract with Bridgewater Bank
Redeveloper’s request for public financing assistance: The total development cost to construct
the proposed office building is approximately $36 million. There are significant extraordinary
costs associated with redeveloping the subject site, including: remediation, demolition and
disposal of two buildings, soil excavation, correction, and shoring. Altogether, these costs
exceed $2.4 million and prevent the proposed project from achieving a market rate of return.
To enable the project to proceed, the Redeveloper applied to the EDA for tax increment
financing (TIF) assistance to offset a portion of these costs.
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 office project was 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 building would not be reasonably
expected to occur in the foreseeable future but/for the provision of $950,000 in tax increment
assistance.
The TIF assistance would be made available to exclusively reimburse the redeveloper for a
portion of the qualified 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 TIF Note would be paid off in approximately 12 years
with increment generated by the redevelopment.
Conveyance of EDA property: As noted above, the EDA owns the .5 acre property at 3743
Monterey, which was acquired in 1996 as part of the land assemblage for the future Excelsior &
Grand project. Bridgewater has requested to acquire the parcel for its appraised market value
of $400,000.
TIF application process: The EDA/city council received a staff report detailing the redeveloper’s
application for TIF Assistance at the April 23, 2018 Study Session. A public hearing on the
establishment of the proposed Bridgewater Bank TIF District was approved to be held on July 2,
2018 and rescheduled to July 16, 2018.
Proposed business terms – Bridgewater Bank’s Corporate Center project: The following is a
summary of the proposed key business terms between the St. Louis Park Economic
Development Authority (“EDA”) and Bridgewater Bank (“redeveloper”), which are consistent
with EDA Policy, past practices and previous discussions with the EDA/city council.
1.The redevelopment property includes the following parcels:
•4424 Excelsior Boulevard
•4400 Excelsior Boulevard
•3743 Monterey Drive. (“Remnant EDA Property”)
2.The project consist of construction of a four-story, 84,000 square foot, mixed-use
building containing office space, retail space, and an entrepreneurial center and related
structured parking.
Page 4 Study session meeting of July 9, 2018 (Item No. 5)
Title: Business terms for purchase and redevelopment contract with Bridgewater Bank
3.Purchase of the Remnant EDA Property no later than December 31, 2018, in the amount
of $400,000 to be paid to the EDA at Closing.
4.Provision of tax increment financing (TIF) to the redeveloper for a portion of the eligible
costs, in an amount up to $950,000. Payment will be made to the redeveloper through
available tax increment generated by the project on a “pay-as-you-go” basis, over a
period not to exceed 12 years and subject to a “lookback” provision verifying the
amount of TIF assistance was justified.
5.Payment of reasonable administrative costs of the EDA by the redeveloper, including
consultant and attorney fees, in connection with the project.
6.Commencement of construction by December 31, 2018 and substantial completion by
December 31, 2020.
7.Compliance with the city’s Green Building Policy/Climate Action Plan requirements.
The above terms will serve as the basis for, and will be incorporated into a purchase and
redevelopment contract with Bridgewater Bank. Such terms are subject to further definition,
revision and/or refinement by the EDA’s legal counsel. A copy of the draft purchase and
redevelopment contract is available for review in the community development department.
Next steps: Staff will work with the EDA’s legal counsel and Bridgewater Bank to finalize the
formal purchase and redevelopment contract based on the proposed business terms and input
received by the EDA. Approval of the proposed purchase and redevelopment contract with
Bridgewater Bank is scheduled for consideration on July 16, 2018.
Page 5 Study session meeting of July 9, 2018 (Item No. 5)
Title: Business terms for purchase and redevelopment contract with Bridgewater Bank
Excerpt of unofficial June 4, 2018 city council meeting minutes
8b. Bridgewater Bank Corporate Center preliminary and final planned unit
development. Ordinance No. 2538-18.
Ms. Monson stated the city council approved the preliminary and final plat and the first
reading of the ordinance on May 21, 2018.
Councilmember Mavity recused herself from the discussion and vote.
Councilmember Brausen stated this is the result of hundreds of hours of meetings and
community discussions, and development plans reviewed over multiple years, adding he
is happy to see this finally come to fruition.
Mayor Spano added he will support this, noting the design of this building is vastly
superior to what has been seen on that site and provides a nice contrast to what is already
there, with good north/south connections. He added it will not be without traffic
challenges; however, much work has been done to mitigate that and adjustments will be
made as needed. He added with Trader Joe’s being across the street as commercial, with
residential, this new development bringing more commercial, and a major anchor
business for day time business and restaurants, there is some balance restored to the
area and in sync with the original master plan.
It was moved by Councilmember Brausen, seconded by Councilmember Hallfin, to adopt
Ordinance No. 2538 - 18 adding Section 36-268-PUD 13 to the Zoning Code and amending
the Zoning Map from C-2 General Commercial and R-4 Multiple Family Residential to PUD
13 for property located at 4424 and 4400 Excelsior Blvd. and 3743 Monterey Drive, and
approve the Summary Ordinance for publication.
The motion passed 6-0-1 (Councilmember Mavity abstained).
Meeting: Study session
Meeting date: July 9, 2018
Choose an item.: 6
Executive summary
Title: Special permit minor amendment – Lenox Community Center
Recommended action: None at this time.
Policy consideration: Does the application meet the requirements for a community center?
Summary: St. Louis Park Public Schools requests a minor amendment to the special permit at
Lenox Community Center, located at 6715 Minnetonka Boulevard. Transition Plus will be
moving into the second floor of the facility. Transition Plus provides services to students with
educational disabilities and transition needs in post-secondary education and training,
employment and independent living.
The community center’s southeast parking lot will be reconstructed with additional parking
stalls, a new, second driveway access onto Georgia Ave. South, a new bus drop-off area and
new outdoor lighting. Landscaping on the site will also be brought into compliance with the
zoning ordinance. Staff have found no negative impacts on the neighborhood due to the
project.
The Lenox Community Center has operated on the property since 1978 under a special permit
(Resolution 6055). Staff finds the plan meets the requirements for a community center,
including: the building is 50 feet from a residential property, outdoor group activity areas are at
least 25 feet from a residential property, off-street passenger loading area is available, and the
proposed parking lot and landscaping comply with city code design requirements. This minor
amendment allows the changes to the parking lot.
Next Step: This item is scheduled to be on the city council’s July 16, 2018 consent agenda. An
affirmative vote of four councilmembers is needed to approve the minor amendment.
Financial or budget considerations: Not applicable.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Attachment: Site Plan
Prepared by: Jacquelyn Kramer, Associate Planner
Reviewed by: Sean Walther, Planning and Zoning Supervisor
Reviewed by: Karen Barton, Community Development Director
Approved by: Nancy Deno, Deputy City Manager/HR Director
Study session meeting of July 9, 2018 (Item No. 6) Page 2
Title: Special permit minor amendment – Lenox Community Center
Site Plan
Meeting: Study session
Meeting date: July 9, 2018
Written report: 7
Executive summary
Title: Community Development Block Grant (CDBG) reallocation for fiscal year 2018
Recommended action: No action required
Policy consideration: Does the council support the reallocation of FY2018 CDBG funds
proposed by staff?
Summary: Community Action Partnership – Hennepin County (CAP-HC) recently notified city
staff that they will no longer administer the city’s Emergency Repair Grant. The program
provides grants to aid low-income homeowners in St. Louis Park who are experiencing
emergency repair needs. City staff is currently working to find a new partner to administer the
program; however, until a new administrator is secured, the housing department will work to
provide assistance to residents in the interim. The city allocated $40,000 of FY2018 CDBG funds
for this program and the funds are directly tied to CAP-HC providing the program. Since CAP-HC
is no longer providing this service moving forward the program will be funded through the
housing rehab budget. This program has been a valuable resource for low-income homeowners
at/below 50% area median income. Typically 10-15 households are assisted annually with an
Emergency Repair Grant.
The CDBG 2018 fiscal year began July 1. Since this program funding was originally allocated
through the CDBG program, the city is required to publish a notification of the program
cancellation in the Sun Sailor and open a 15 day comment period. Staff recommends
reallocating the 2018 CDBG Emergency Repair Grant funding as follows: $30,000 to the Low-
Income Deferred Loan Program and $10,000 to West Hennepin Affordable Land Trust
(WHAHLT)/Homes Within Reach. After the 15 day comment period has elapsed, Hennepin
County will process the change to the 2018 CDBG allocation. Council has strongly supported
funding for WHAHLT and the Low-Income Deferred Loan in the past and several council
members have vocalized their desire to see these funded at higher levels.
Financial or budget considerations: 2018 CDBG funds will be reallocated as follows: $30,000 for
the Low-Income Deferred Loan Program and $10,000 to WHAHLT/Homes Within Reach.
Housing rehab funds will be used for the remainder of 2018 to cover emergency needs. The
2019 housing rehab budget will include an allocation for the Emergency Repair Grant. A portion
of the Emergency Repair Grant budget will be offset by the increase in funds to
WHAHLT/Homes Within Reach which is also a line item in the housing rehab budget.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: none
Prepared by: Marney Olson, Assistant Housing Supervisor
Reviewed by: Karen Barton, Community Development Director
Approved by: Nancy Deno, Deputy City Manager/HR Director