HomeMy WebLinkAbout23-015 - ADMIN Resolution - City Council - 2023/01/17Resolution No. 23-015
Resolution approving amendments to Diversity, Equity, and Inclusion Policy
Whereas, the City of St. Louis Park’s racial equity statement says that the City “will strive
for racial equity by building understanding of the issues in our organization and intentionally
and proactively take measures to break down barriers to a just and inclusive community”; and
Whereas, in furtherance of that goal, the City and the Economic Development Authority
created a Diversity, Equity and Inclusion Policy (the “Policy”) that creates goals for women and
black, indigenous, and people of color (BIPOC) and Asian American and Pacific Islander (AAPI)
participation in projects receiving public financial assistance and requires reporting of women
and BIPOC/AAPI participation; and
Whereas, the Board of Commissioners (“Board”) of the St. Louis Park Economic
Development Authority (the “Authority”) has considered certain proposed amendments to the
Policy and has presented such amended and restated Policy (the “Amended Policy”) to the City
Council of the City of St. Louis Park (the “City”) for its review and approval; and
Whereas, the City Council has determined that it is reasonable, expedient and in the
best interest of the public to approve and adopt the Policy in the form attached hereto as
Exhibit A.
Now therefore be it resolved that the City Council hereby approves the Amended Policy
in the form attached to this Resolution as Exhibit A.
Reviewed for Administration: Adopted by the City Council January 17, 2023
Kim Keller, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
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Diversity, Equity, and Inclusion Policy
This policy promotes the inclusion of under-represented persons and businesses in
development projects receiving public financing through the Economic Development Authority
(“EDA”) and City of St. Louis Park (“City”) to meet the city council’s strategic priority of being a
leader in racial equity and inclusion in order to create a more just and inclusive community for
all.
The city recognizes the importance of creating opportunities for communities of color and
indigenous people to participate more equitably in the workforce and benefit from wealth
building opportunities. It is recognized that historical and institutional discrimination and
racism has disproportionately created challenges for women, Black, Indigenous, and People of
Color (BIPOC), and Asian American and Pacific Islander (AAPI) communities. Women and
BIPOC/AAPI individuals and businesses have faced discrimination and disadvantages in
employment and business opportunities which have resulted in significant disparities in wealth
building opportunities.
The goal of this policy is to address these disparities and to promote inclusive and equitable
opportunities for women and BIPOC/AAPI individuals and businesses to build wealth.
The goals set forth in this policy further the city’s racial equity priorities. These goals are
intended to provide an incentive for developers to seek greater participation by women and the
BIPOC community in development projects funded with EDA/city financial assistance.
The reporting requirements in this policy will allow the EDA/city to monitor participation of
women and BIPOC/AAPI individuals and businesses in the EDA/city development contracts. That
way, the EDA/city can determine current overall participation rate and track the participation
rate over time. When compared to availability data, these statistics will allow the EDA/city to
measure the success of this policy and inform potential changes to this policy. In addition,
monitoring outreach to women and BIPOC/AAPI workforce and businesses, and which methods
are most successful will provide helpful anecdotal information to increase the effectiveness of
this policy.
These goals are included in the list of minimum qualifications for projects seeking tax increment
financing (TIF) and other financial assistance from the St. Louis Park Economic Development
Authority.
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This policy shall be used in conjunction with the established Diversity, Equity, and Inclusion
Policy User Guide which provides further guidance on reporting requirements and EDA/city
expectations.
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1.Applicability and minimum project size
New construction, renovation or reconstruction projects receiving EDA/city financial
assistance
This policy applies to development projects that receive $200,000 or more in financial
assistance from the EDA/city and includes:
a)New construction, renovation, or reconstruction of commercial developments
b)New construction, renovation, or reconstruction of Industrial developments
c)New construction, renovation, or reconstruction of multi-family rental or for-sale
housing developments
d)New construction, renovation, or reconstruction of mixed-use developments
The development must comply with the Diversity, Equity, and Inclusion Policy in effect at the
time of the application date of planning and zoning applications and/or a signed preliminary
development agreement. If building permits have not been issued within two years of application
approvals or the building permits have expired or been canceled, the project must comply with
updates to this policy. The EDA/city council may grant an extension of time beyond two years if
a written request for a time extension is submitted to staff and approved by the economic
development authority and/or city council. Requests for extension of time must be submitted to
staff before the termination date.
2.Definitions
A)Financial Assistance: The Diversity, Equity & Inclusion Policy applies to all new and
renovated commercial and multifamily residential buildings receiving EDA/city financial
assistance.
Financial Assistance is defined as funds derived from EDA/city and includes, but is not
limited to, the following:
1)Tax Increment Financing (TIF) and/or Tax Abatement
2)Land write-downs
3)EDA grants and loans
4)Affordable Housing Trust Fund (AHTF) grants and loans
5)Community Development Block Grant (CDBG) funds
6)Housing Rehabilitation funds
7)Revenue Bonds (private activity bonds are negotiable)
8)Housing Authority (HA) Funds
9)City of St. Louis Park funds
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B)Business Organization: the developer’s business organization, including subsidiaries and
parent company.
C)Business Enterprises: the contractor(s) and sub-contractor(s) hired by or on behalf of the
developer for the project.
D)Workforce: Employees of contractor(s) and sub-contractor(s) working on the Project
E)Peripheral Enterprise(s): consultants and other businesses hired by the developer, or with
whom the developer has a relationship, in conjunction with the project. This includes, but
is not limited to, attorneys, financial consultants, financial institutions, suppliers,
accountants, etc.
F)Project: The development project as defined in the development agreement between the
EDA and the developer.
3.Diversity, Equity, and Inclusion participation goals
General requirements
A development that is subject to this policy shall be subject to the following diversity, equity, and
inclusion participation business and workforce participation goals:
Participation Goals Women BIPOC/AAPI
Business Organization 10% 13%
Business Enterprises 6% 13%
Workforce 20% 32%
Peripheral Enterprises 6% 13%
The developer will agree to use reasonable efforts to meet these business enterprise, workforce,
and peripheral enterprise participation goals for women and Black, Indigenous and People of
Color (BIPOC)/AAPI in conjunction with construction, renovation, or reconstruction of the
development.
Participation goals will be measured according to the developer’s project as a whole and pertain
to the total amount of construction and related contracts. Developer must provide and use
reasonable efforts to cause its contractors/subcontractors to provide certain information and
resources to prospective contractors/subcontractors before bidding; to implement procedures
designed to notify women and BIPOC/AAPI about contracting opportunities; to document steps
taken to comply with participation goals and the results of actions taken; and to provide
compliance report(s). Refer to the Diversity, Equity, and Inclusion Policy User Guide for more
information regarding performance and compliance.
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4.Agreements
A development agreement or other agreement shall be executed between the EDA and the
developer, in a form approved by the EDA or City legal counsel, which formally sets forth
development approval and diversity, equity, and inclusion goals in accordance with this policy. A
failure to meet the goals will not result in an event of default under the development agreement.
5. Reporting Requirements
The developer will be required to provide written reports to the EDA on a quarterly basis from
the date the development agreement is entered into until six months after the project receives
its certificate of occupancy from the city. The established Diversity, Equity, and Inclusion Policy
User Guide provides further guidance on reporting requirements. At a minimum, the reports
must include the following information:
1) Total number of construction-related business enterprises (e.g. general contractor,
subcontractors) with
a) percentage of women-owned enterprises
b)percentage of BIPOC/AAPI-owned enterprises
c)percentage of total development dollars paid to women-owned enterprises
d)percentage of total development dollars paid to BIPOC/AAPI-owned enterprises
2) Total number of construction workforce employees with
a) percentage of women construction workforce employees
b)percentage of BIPOC/AAPI construction workforce employees
c)percentage of total construction hours women construction workforce employees
worked
d)percentage of total construction hours BIPOC/AAPI construction workforce employees
worked
3)List of peripheral enterprises with self-reported total number of employees, percentage of
women and percentage of BIPOC/AAPI employees
4)Summary of efforts made to reach participation goals and ongoing efforts to reach and/or
maintain participation goals, highlighting outreach methods that were most effective and
outreach methods that were least effective
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