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HomeMy WebLinkAbout2023/01/23 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA JAN. 23, 2023 Members of the public can attend the meeting in person, watch by webstream at bit.ly/watchslpcouncil, or watch on local cable (Comcast SD channel 17/HD channel 859). Recordings are available to watch on the city’s YouTube channel at https://www.youtube.com/user/slpcable, usually within 24 hours of the end of the council meeting or study session. 5:30 p.m. STUDY SESSION – council chambers Discussion items 1. 180 min. City council vacancy interview and appointment process – second-round Written reports 2. Quarterly development update – 1st Quarter 2023 3. Application for financial assistance – Union Park Flats 4. Dakota Park bridge improvements – project update (city project no. 2122-1806) 5. Business terms – purchase and redevelopment contract for OlyHi development 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 after noon on Friday on the city’s website. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Study session Meeting date: January 23, 2023 Discussion item: 1 Executive summary Title: City council vacancy interview and appointment process Recommended action: None at this time. The council will conduct second-round interviews for the council member at large A vacancy. Summary: On Nov. 21, 2022, the city council adopted Resolution No. 22-177 accepting the resignation of Council Member Larry Kraft effective Dec. 30, 2022 and declaring a vacancy for the office of council member at large A. Council Member Kraft resigned following his election to the Minnesota Legislature. The city council is required to appoint a person to the seat for the remainder of the term expiring Jan. 2, 2024. Following the declaration of a vacancy, an application period was open Nov. 22 – Dec. 6, 2022. A total of 24 applications were received. Since that time, seven (7) applicants withdrew from the process. The council previously directed staff to develop an interview process that would allow all eligible applicants an opportunity to interview for the vacancy. The city council met in special study session on January 3, 2022, to discuss the criteria they will use to evaluate applicants. Interviews will be conducted in multiple rounds. First-round interviews were held on January 10, 2023. The council interviewed the remaining 17 applicants and invited seven (7) applicants to participate in the second round of interviews. All interview sessions will be televised. It is anticipated that the council will approve an appointment and that the new member will take office in February 2023. Additional information and updates regarding the interview and appointment process will be posted as they become available on the city website and social media accounts. Financial or budget considerations: N/A Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Round 2 interview schedule outline Interview questions Applications Prepared by: Melissa Kennedy, city clerk Approved by: Kim Keller, city manager Study session meeting of January 23, 2023 (Item No. 1) Page 2 Title: City council vacancy interview and appointment process Round 2 interview schedule outline January 23, 2023 St. Louis Park City Hall, city council chambers Q+A session with council 5:30 – 5:55 p.m. (2) Applicants will participate in a question + answer session with council BREAK Q+A session with council 6:00 – 6:35 p.m. (3) Applicants will participate in a question + answer session with council BREAK Q+A session with council 6:40 – 7:05 p.m. (2) Applicants will participate in a question + answer session with council BREAK Facilitated practical exercise 7:10– 7:55 p.m. Applicants will participate as a group in a simulated study session discussion. The exercise will be facilitated by staff and the mayor. BREAK Council debrief discussion 8:00 – 8:30 p.m. Council will share their thoughts following the second-round interviews and discuss next steps. Study session meeting of January 23, 2023 (Item No. 1) Page 3 Title: City council vacancy interview and appointment process Round 2 Interview Questions 1. The cost of providing essential and necessary services to the community goes up every year. Would you propose any new programs for St. Louis Park, and if so, how would you fund them? 2. Tell us about a time you took responsibility/accountability for something you did or said that offended another person and how you handled the situation. 3. What's your position on property taxes in SLP? How do you see yourself navigating decisions between making new investments, for example in climate action, housing, and infrastructure, and the tax impacts of those investments on residents and businesses? 4. Scenario: A person goes on social media attacking you and a vote took on the council. The post is angry and calling on you to “rectify” this with some specific action. Question: Do you respond to the person and if so, how? If not, why? Would your response be different if it was a group of 5 people? 10 people? People from your own neighborhood? 5. Tell us about a time you had to make a decision without a full understanding of all the details. How did you handle that? 6. Please provide an example of the work you've done around racial equity. Please provide an example of work you've done personally (internal) and with your organization and community (external). Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 4 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 5 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 6 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 7 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 8 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 9 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 10 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 11 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 12 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 13 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 14 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 15 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 16 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 17 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 18 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 19 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 20 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 21 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 22 Amplify Mission Network 7601 France Avenue South Ste 140, Edina, MN 55435 Dear City Council Members, My name is Julie Eide and I am president of Amplify Mission Network, a nonprofit dedicated to connecting Christian business leaders with emerging nonprofits to help them move to the next stage of their growth. I am writing today to strongly recommend Karen McCarren for the At Large A seat on the council. I met Karen several years ago when she started attending Amplify meetings where she quickly became involved as a coach and mentor for several young nonprofits. Additionally, Karen often facilitated brainstorming sessions at our partner meetings around strategic challenges presented by the emerging nonprofits. Karen also currently serves on an advisory board for one of the nonprofits she coached operating in North Minneapolis and lead them to a more sustainable and impactful organization. Karen is a delight to work with. She has a strong work ethic, attention to detail, amazing creative ideas and follow through. Karen is full of passion and compassion in all the projects I have seen her tackle. Karen’s communication skills are outstanding as is her ability to think strategically, operationally and tactically all while staying a grounded team player engaging diverse voices and communities. When she is in, she is all in! I live very near St. Louis Park, have many friends in that community and have witnessed Karen’s passion for the city and her dedicated involvement in the schools, activities and community at large. I have hired many people over the course of my career and would not hesitate to hire Karen who not only would be an amazing fit culturally to your council but bring the necessary skills, talents, connections and vision to lead with enthusiasm and heart all day long. Please reach out if I can be of further assistance. With joy, Julie Eide President Amplify Mission Network Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 23 From:Jake Spano To:Julie Yakes Cc:Nadia Mohamed; Lynette Dumalag; Margaret Rog; Sue Budd; Tim Brausen; Melissa Kennedy; Kim Keller Subject:Re: Letter of recommendation - Karen McCarren Date:Sunday, December 11, 2022 3:34:16 PM Thank you for taking time to share this with us Julie. We’ll be considering the applicants in the coming days/weeks so I’m adding city staff on this for inclusion in the official record for Karen’s application. Have a great remainder of your weekend! Jake Spano Mayor St. Louis Park, MN (he/him/his) 952-928-1448 (direct) On Dec 11, 2022, at 3:23 PM, Julie Yakes <yakesmail@gmail.com> wrote: CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Mayor Spano and SLP City Council Members, I'd like to share how I know Karen McCarren and why I know she'll make an outstanding member of the St. Louis Park City Council if chosen for the at large A seat . Karen and I parallel pathed through our kids' elementary school for the first few years leading and serving in various capacities. She led things like an annual Carnival that raised half our needed funds and was always first in line to lead or help with various important work that drove the mission of serving every student. During that time, I knew of her and that she was tireless, selfless and respected but we'd never worked directly together. It was midway through we were both tapped to lead the PSI PTO. From the first time we met to figure out our game plan, I knew what a special leader and person she was. She is collaborative while having a strategic vision. She can both get her hands dirty with the work but always knows the bigger picture and connects dots instantaneously to lead to a better solution. She knows how to unleash the talent of an entire community, give them the right level of guidance and turn them loose to do great things. She is calm under pressure, brings a sense of fun to every challenge and focuses on the mission and the people behind the mission vs herself. Another thing I admire is that she always leaves a legacy. During our 3 years serving together, we quickly built documents, processes and timelines we could hand to the next crew. Not only did her forward thinking create efficiencies, it also became a powerful recruiting tool and most importantly meant that serving the students and Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 24 fulfilling the key mission was achieved that much faster. Karen and I have served on boards together on and off. She's connected me to a few organizations she was highly involved in like Treehouse. We are currently leading a celebration for the class of 2023. While I had planned to not take on anything else, the chance to lead with her again was a draw. She is an outstanding servant leader and citizen of St. Louis Park. Having graduated from Park and been a long term resident, she knows this community. She cares deeply for it and for every citizen. Her desire to serve is innate and SLP will continue to be a lucky recipient of her abilities and willingness to make our city an even better and more inclusive place. I can't think of a better person to fill the at large A seat. Thank you for considering her for this important role. We are fortunate to have so many fine leaders such as yourselves who care deeply for St. Louis Park. Karen McCarren would not only complement your team but work tirelessly to raise the bar even higher. Julie Yakes 2001 Virginia Ave S SLP 55426 612-210-5196 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 25 December 14, 2022 Dear Jake, Nadia, Margaret, Lynette, Sue and Tim – My name is Liz Tigelaar, I am a television writer/showrunner (Little Fires Everywhere, The Morning Show) who currently lives in Los Angeles, and I am writing in support of one of my oldest and dearest friends, Karen McCarren, who has submitted an application for a position (large A) on the SLP City Council. As you look over her application and resumé, and digest her enthusiastic letters of support, I’m here to offer my own unique insight and perspective that comes from loving and admiring her, which is rooted in a deep knowledge that she is meant for this work. I know you have many wonderful candidates to choose from but should you select her for this esteemed position, you are getting someone who wants to spend the rest of her life serving the people of Minnesota, who will dig in and do the work to make their lives better and this community stronger. Karen is Minnesota through and through. I first met Karen in the summer of 1994, at our freshman orientation at Ithaca College in Upstate New York. Sitting in a circle, I immediately noticed her blonde hair, blue eyes, and distinct Minnesota accent. And to be honest, I thought: Minnesota, isn’t it freezing there? Who lives in Minnesota? But to know Karen is to know her Minnesotan roots and when you come home with her, it’s easy to fall in love with it. Who didn’t want to rollerblade around Lake Harriet on a glorious spring day in the late 90s? And I wasn’t the only one. Another friend of ours relocated to Saint Louis Park for her college internship and within a few years, Karen’s boyfriend was getting a job there “just to see.” (Spoiler alert: She married him and he never left). The point is: she drew us all to it – and it wasn’t just the place. It was her love of the place and her desire to return home and embed herself in the community that raised her. To me, when looking for someone to represent and reflect a community, who is more valuable than a person born into it and whose life has been completely shaped and molded by it? As college progressed, my friendship with Karen deepened, and I could see her values and moral compass even back then. She was a loyal, compassionate, reliable friend who carried herself with grace, thoughtfulness and integrity. I remember I used to drive her crazy in the dining hall – where I’d take heaps of food that I’d inevitably throw out. Even at 19, she encouraged me to only take what I needed and leave the rest for someone else – a profound metaphor for a gluttonous teenager. Not only were we housemates, we were teammates too. We both joined the crew team freshman year. I, with zero athletic ability, was the coxswain (the little person who yells “Row!”); Karen was a powerhouse rower in a boat where she was one of eight. If you aren’t familiar with the sport, the idea is to move in unison – in perfect sync. To do that, you have to pull equal weight. If you don’t, the boat veers off course. And Karen was easily the lightest rower in the heavyweight boat. Which meant she had to pull harder than everyone else just to keep the boat on course. And that is so who she is. Whether it’s in the boat, as a mother of three, or founding her own healthcare consulting firm, she does the work, she finds that extra strength, she pulls her weight and more. Over the course of four years, she worked her way up to the front of the boat, into the stroke – or leader – position. With time, it became Karen who set the pace, articulated our goals, and led us to accomplishing them. Even at that young age, she had a keen awareness of her place – when she needed to row in unison and when it was time to step up to lead. I feel like this quality – understanding both roles deeply – would be one of her biggest strengths on the City Council. Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 26 And finally, I believe that Karen will be a Council Member with the readiness and expertise to meet the challenge of the moment we’re in. Back in 2020, when George Floyd was murdered and Minneapolis became an explosive epicenter of the Black Lives Matter movement as a racial reckoning and awareness swept across the country, Karen was already knee deep in this important work. After her three kids – Jack, Ted, and Maeve – began participating in courageous conversations at their SLP schools, Karen wanted to become more intentional about her own work in this area. She strove to understand her own identity, how her lived experience informed her own biases, and finally how she could use that understanding and insight to shift her own thinking in order to advocate for others, especially those whose voices were historically marginalized. Five years ago – well before many of us were doing this important work – Karen and her daughter, Maeve, participated in one of the first cohorts of HOPE Speaks, a small non-profit that began in St. Louis Park. The goal of the group was to facilitate conversations about anti-racism and bring those conversations to the forefront at home so as a family, they could learn to identify systems of power and inequities within them. So, as you see, Karen has really worked from the inside out. First, getting the tools to have these conversations at home, then to bring those same tools into her professional life – whether in her own practice as a physical therapist or as a strategic consultant of patient experience at Health Partners and now, hopefully, as a member of the City Council. And while Karen’s desire to have an impactful career in healthcare stemmed from a deep desire to help others, what she’s learned in her decades of work is that in order to truly help, the biases and the lenses through which people see things must be uncovered so that systems, practices, and policy can be fair and equitable. Since I’ve known her, I’ve watched her go from having a big heart to knowing how to use that big heart – to be an agent of change with a very clear, intentional, compassionate, collaborative approach as she shows up and digs in. Because the passion for this work comes from such an authentic place inside of her, because her experience is so fast, and because this community is so embedded within her, I have no doubt she would be an inspiring and devoted addition to the SLP City Council. Best, Liz Tigelaar Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 27 9400 Cedar Lake Rd., St. Louis Park, MN 55426 | Phone: (952) 928-6555 | Fax: (952) 928-6556 | www.slpschools.org/psi December 19, 2022 To Whom It May Concern: It is my sincere pleasure to be asked to write a letter of support on behalf of Ms. Karen McCarren for the open City Council Position. I had the privilege of working closely with Karen for over a decade as a parent leader at Park Spanish Immersion Elementary School. During this time, Karen has proven to be an invaluable community member of our team and a trusted collaborator. She is a consummate professional: hard-working, kind, intuitive, and very flexible in her approach. While observing Karen working with many different stakeholders, I can share with great enthusiasm that she has an abundance of strengths. She asks good questions which allow for better understanding, and her questions deepen conversations. She absolutely understands the balance of “big picture” and details. Through trial and error, advocacy, and relationship building, Karen always works hard to hear multiple perspectives to find common ground and helped us further our equity goals. Even in challenging situations, I have watched Karen remain centered, supportive of those around her, and she has worked to find positive solutions for all involved. While Karen’s children have grown up, and she has left the elementary school setting, the work she helped support continues. Throughout all of her decisions, she always keeps the students at the forefront of her mind. Her optimistic passion for our school and the St. Louis Park community, reflective nature, compassion, and flexibility are reflected in all that she does, and it is a privilege to have worked with her both professionally and personally. She would make an amazing St. Louis Park City Council member; please do not hesitate to contact me with any questions that may arise. Sincerely, Dr. Corey Maslowski Principal 952-928-6558 maslowski.corey@slpschools.org Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 28 From:Lynette Dumalag To:Ruth E. Merle-Doyle; Kim Keller; Cindy Walsh; Melissa Kennedy Subject:Re: Letter of support for Karen McCarren to fill City Council Seat Date:Monday, December 19, 2022 9:35:10 PM Hi Ruth, Thank you for that glowing letter of recommendation for Karen! I'm copying staff so there is an official record of this. Have a wonderful holidays and take care! Lynette Dumalag From: Ruth E. Merle-Doyle <rem64@cornell.edu> Sent: Monday, December 19, 2022 3:12 PM To: Lynette Dumalag <LDumalag@stlouisparkmn.gov> Subject: Letter of support for Karen McCarren to fill City Council Seat CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Council Member Dumalag, Karen McCarren has been a beloved part of my human circle for many decades, and for this, I am most fortunate. You see, Karen brings an authenticity, compassion and bravery to human connection that I do not often encounter. There are moments when she pushes my thinking and holds space for courageous conversations on really hard topics like our social justice reckoning, living your values and fostering communities where all people have a sense of belonging. As a Work Life Program Manager on the Work Life team at Cornell University, these kinds of topics come up in wellbeing conversation often, but Karen’s passion and expertise in this realm, along with her natural tendency to leadership, create a powerful cocktail of traits that would serve the Saint Louis Park (SLP) City Council well. As I review the city’s strategic priorities, I find myself thinking about Karen’s character more than any criteria that can be found on an application. With the complex issues and challenging priorities that the SLP City Council will face, I see Karen as a council member who will be prepared with evidence- based knowledge and a keen awareness of the human experience that people of diverse backgrounds are navigating. She will be able to facilitate difficult conversations with honest and courageous opinion in the most articulate and empathetic way in order to make your SLP community one that stands out and is a leader in inclusion, equity and community engagement. As roommates at Ithaca College, we were concerned with matters that most college students are, and those topics are worlds away from Karen’s focus in this moment of her life. She has found a passion in the equity space and she threads her wisdom into our informal conversations deftly, so that I find myself coming back to what she shares in my professional work. After the murder of Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 29 George Floyd, I distinctly remember having an emotional conversation with Karen, where I shared my own privileged reaction. She held compassionate space while acknowledging my emotion and experience, then nudged me toward the things that mattered most. I see that ability to hold space, then move toward action as a paramount skill for your city council. Lastly, I feel compelled to share how Karen truly embodies and lives her values, and in turn, is raising children who will be changemakers. She and her family prioritize service trips in times when most families prefer vacation style breaks. Now, I am all for restoration and recovery in my wellbeing work, and I am most impressed with how Karen gives the gift of volunteer experience to her children. Recently, she and her family spent time in Costa Rica visiting a family that benefited from a Bricks to Bread oven for their livelihood. Her children experienced how being of service to those in need can have a life changing outcome. As a parent, I see that as bravely and authentically living your values. I could go on for some time, but will simply say, Karen McCarren will be a tremendous asset to your city council. I feel lucky to have her in my life, and I suspect your community members will feel the same. Warmly, Ruth Ruth Merle-Doyle, M.S. Work/Life Program Manager Work Life Team | Division of Human Resources | Cornell University she | her rem64@cornell.edu | p. 607-255-1917 hr.cornell.edu | Follow Working at Cornell on Facebook! Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 30 From:Jake Spano To:charlie poulter Cc:Nadia Mohamed; Margaret Rog; dumalag@stlouispark.org; Sue Budd; Tim Brausen; Melissa Kennedy; Kim Keller Subject:Re: letter of Recommendation for Karen McCarren Date:Wednesday, December 21, 2022 6:30:30 AM Charlie- Thank you for the note regarding Karen’s potential service on the council. We appreciate you taking the time to reach out to us. By way of cc I’m adding Melissa Kennedy, our city clerk who can ensure that it is a part of the public record. Give your mom and dad and Ellen my best! Jake Spano Mayor St. Louis Park, MN (he/him/his) 952-928-1448 (direct) On Dec 20, 2022, at 11:36 PM, charlie poulter <charliepoulter26@gmail.com> wrote: CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. My name is Charlie Poulter and I am a senior at St Louis Park High School. I’ve lived in St Louis Park my whole life and have attended St Louis Park public schools for the entirety of my educationl. I’m someone who has always loved to be a part of the community in St Louis park and always felt comfortable in St Louis Park and felt comfortable being myself both in and outside of school. I’ve been fortunate enough to know Karen McCarren since I was six years old. Karen has always been someone who I’ve been very comfortable talking to no matter the topic. There’s been multiple times where I’ve found myself going over to her house and getting into such important topics with Karen, we would talk for extended amounts of time. The stuff we would talk about is always something that I don’t just talk to any adult about. I believe that the way that Karen carries herself is very helpful when it comes to really trying to figure out different problems. When I was diagnosed with epilepsy she was one of the people that I talked to about it constantly. The reason I talked to her wasn’t only because she is educated in the medical field Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 31 so it made me feel like what I was saying truly made sense, but it also has to do with Karen’s Emotional Quotient. I believe that someone who has a high EQ would hugely benefit the community of St. Louis park especially when talking to high schoolers or people their age or elders. When talking to Karen it was never a conversation where I thought she just felt bad for me or felt like she was tired of hearing me talk, Karen is someone who looks for solutions no matter the situation. When it came to seizures that’s something that when I talk about to parents most people feel a little uncomfortable talking about solutions and ways to help my side affects from medicine but every time Karen would try her hardest to think of a new way to help me. Something that Karen has talked to all of my friends about, is just being good people, and trying to be kind to people. That sounds like something that’s obvious and should go without having to say, but nowadays we need people who aren’t afraid to talk about things that are truly important to having a stronger community. Karen always seems happy whenever I’m around, but that doesn’t mean that she backs away from tough topics when she overheard me talking to my mom about college application she was quick to step in and help my mom out and call me out.I was saying that it’s just hard for me to type things out, and it would be easier for me to just call them. Her response was something that I’ll always remember because it helped me so much, she said well then Charlie here’s what we’re gonna do, record yourself talking about it on your phone and then go back and type everything out. Seems simple but with all do respect sometimes the answers to some of our issues in our schools and city are simpler than some of the parents think. Karen is lucky enough to see her kids go through the school so she gets a glimpse Im sure almost everyday from at least one of them. She also is lucky enough to have seen her kids go from school to school and now with her son being a senior shes truly seen every stage of St Louis park schools. Im not old enough to look at a resume and really have it make sense but Karen asked me if that would be helpful so I said maybe, so she sent me a pdf. Looking through the different hospitals shes worked at it was definetly impressive and that shows that she has great intelligence and I think that we have so much to apreciate when it comes to our hospital workers, But the thing that made me the happiest to see was list of the things that shes doing outside of her paid job. This shows someone who is well rounded and overall someone who cares about their community and is wanting to make a change. I am not someone who really tends to get excited when it comes to politics. Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 32 When I got a phone call from Karen I had no idea what it was about, but when she asked me to write her a letter of approval for her to run for this position I was excited for the future changes that she could make in this community. What this city needs is someone like Karen to connect with the kids and be a positive influence on their lifes and understanding of what changes we need to make. I think Karen would be great for the youth of St Louis Park and thats really all I can speak for. Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 33 From:Jake Spano To:Molly Carpenter Cc:Lynette Dumalag; Nadia Mohamed; Margaret Rog; Sue Budd; Tim Brausen; carp1479@stthomas.edu; Melissa Kennedy; Kim Keller Subject:Re: Letter of support for Karen McCarren, SLP City Council candidate Date:Wednesday, December 21, 2022 6:33:47 AM Molly- Thank you for the note regarding Karen’s potential service on the council. We appreciate you taking the time to reach out to us. By way of cc I’m adding Melissa Kennedy, our city clerk who can ensure that it is a part of the public record. Stay warm and safe this week! Jake Spano Mayor St. Louis Park, MN (he/him/his) 952-928-1448 (direct) On Dec 20, 2022, at 10:37 AM, Molly Carpenter <mollycarpenter76@gmail.com> wrote: CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good morning Mayor Spano and members of the St. Louis Park City Council, Please see our letter below in support of Karen McCarren for the vacant SLP City Council seat. If you have any questions or would like to learn more about our support of her candidacy, please let us know. Respectfully, Molly and Ben Carpenter cell: 612-226.5850 email: mollycarpenter76@gmail.com Dear St. Louis Park City Council Committee, We are honored to write a letter in support of Karen McCarren for the open seat on the SLP City Council. Ben and I have lived in St. Louis Park since 2005, when we bought our first home in Minikahda Vista. Seventeen years later, we have three children who we’ve raised in St. Louis Park (ages fifteen, thirteen, Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 34 and seven), and now live in the Westwood Hills neighborhood. As so many St. Louis Park residents eagerly share, this city has become our home and community, and we treasure so many aspects of living and raising our family in St. Louis Park. We met Karen in the winter of 2012 when we were exploring school options for our rising kindergartener. A mutual friend connected us with Karen as a parent and community member who might offer us wise counsel. That introduction has been a tremendous gift in our lives over the past ten years. In that first conversation with Karen, she revealed some of her greatest attributes to us: level-headed, data driven, open-minded, warm-hearted, and relationship invested. Karen shared her personal experiences with Park Spanish Immersion Elementary, as her oldest child was in first grade at PSI. Karen also directed us to families with older children to glean more insights, and to the principal at PSI. In addition, Karen shared what she knew about Susan Lindgren, our neighborhood school at the time, and pointed us again to families who had more information than she did. These actions highlighted her resourcefulness, humility, and deep bench of relationships within this community. During this time, Ben and I felt empowered to make the best choice for our family, as Karen equipped us with information and guidance without becoming personally invested. We knew from that experience that we had two wonderful options within the SLP school district, and that we had a trusted “go-to” person in our community. Karen’s warmth, approachability, and kind demeanor drew us in initially. Equally instructive were her critical nature and knowledge as a lifelong resident of SLP. These attributes have shown up again and again in our relationship with Karen. It is clear Karen has built many lasting relationships in St. Louis Park and she has tremendous pride in SLP and all that it stands for – but Karen also brings an extremely analytical lens to every endeavor. She is trusting, but asks hard questions; she is optimistic, but first considers all angles. Simply put, she is a reliable and courageous leader. I personally witnessed her leadership during our overlapping time as PSI parent volunteers and our partnership to introduce and lead the Girls on the Run program at PSI in 2019. Whether it’s as PTO chair, in her current role at Health Partners, or her commitment to understand and enhance the lived experiences of children and families in St. Louis Park, she pours herself into her responsibilities and is accountable. As her interest in the open SLP City Council seat indicates, Karen seeks experiences that stretch her personally and professionally, and she remains dedicated to the difficult work that accompanies such experiences. Another Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 35 example is her commitment to diversity, equity, and inclusion initiatives. Karen and her daughter enrolled in one of the first HOPE Speaks Project cohorts, and she influenced us to enroll with our daughter in fifth grade. We know this is one of many initiatives that demonstrate her commitment to learning, growing, and improving. Karen embodies these values and in turn makes the circles she touches stronger. We eagerly endorse Karen McCarren as a candidate for St. Louis Park City Council and can confidently say our city council would be lucky to have her as a member. Respectfully, Molly and Ben Carpenter Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 36 December 20, 2022 Dear Mayor Spano, It is an honor to write a letter of support for Karen McCarren as she pursues the St. Louis Park City At Large Seat A Council Member position. I’ve known Karen for 15 years and have had the good fortune to work with her in a variety of volunteer capacities. Most notably, Karen and I served as board members on the TreeHouse Community Development Team (CDT) for five years. In her tenure as a CDT member, I was impressed with Karen’s ability to see the big picture and envision positive change and outcomes through thoughtful analysis of existing systems and processes. This approach allowed us to accomplish a variety of initiatives in support of our key strategic plan; to increase SLP community partnerships and awareness in our mission to end hopelessness among teens. Her focused and intentional efforts to develop authentic partnerships with members of the board, the corporate team, and the community at large, yielded strong and lasting stakeholder relationships. A proud, lifelong resident, Karen’s values align with St. Louis Park’s strategic priority in creating racially equitable policies and structures that foster a true sense of belonging within our community. She has the unique perspective of understanding St. Louis Park’s past, present, and can offer innovative vision for the future. There is tremendous intrinsic value in having a council member who has experienced St. Louis Park at every juncture of her life. I trust in Karen’s ability to serve as a resilient and visionary leader who can positively contribute to the bright future of our remarkable city. Karen possesses many qualities that make her an ideal candidate for this role. I have witnessed the positive impact that her authentic community engagement has had on our youth. Karen’s extensive healthcare experience coupled with community leadership roles will allow her to establish cross-sector partnerships that leverage combined resources to amplify the strategic mission of the city. Deeply committed to racial equity work, Karen understands that honoring shared histories, multiple perspectives, and diverse racial and ethnic identities must be at the core of her work. She is open-minded and approaches all endeavors with empathy and integrity. These qualities will have a direct result in seeing, inspiring, and empowering our residents to live their brilliance in a way that echoes positively through the community. Please do not hesitate to contact me at 952.928.6778 or scott.erika@slpschools.org with any further questions. Sincerely, Erika Scott Early Learning Program Supervisor Central Early Learning Center 6300 Walker Street St. Louis Park, MN 55416 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 37 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 38 December 2022 I am writing to recommend Karen McCarren to the SLP City Council at large A position. Karen and I served together for 7 years on the Tree House SLP community development team. What struck me when I first met her and still is true today, is her love for the SLP community, her strong desire to serve and the collaborative manner in which she solves new and age-old challenges. As the Tree House board president, I quickly identified Karen for her outstanding leadership and initiative and requested that she led a key strategic plank for us: To increase SLP community partnership and awareness in support of our mission to end hopelessness among teens. Her connections in the community and resolve to get us involved in key community activities was instrumental to our success. Several years ago, we hosted our first-ever Tree House breakfast, to educate SLP community business leaders, educators, police, and municipal leaders on what we do. We were also looking for their insights and connections on ways to grow our volunteer base and reach more teens. Karen was instrumental in the planning and orchestration of this event and helping us exceed our goal by getting 65 people to the breakfast. It was very clear to me that Karen’s over 25 contacts came because they knew her, respected her, and wanted to learn and experience what Karen is passionate about. There are several qualities in addition to Karen’s involvement in the community that make her an exceptional candidate for this position. First, she is a courageous leader who is trusted and respected by her colleagues. She readily sees the big picture, works collaboratively with her teammates to deliver a successful outcome and is able to rally others to support her cause. Finally, Karen enjoys a successful career in healthcare and a busy homelife with her family. However, she is never too busy to serve, as evidenced by the numerous organizations she has been involved with. Karen is a huge supporter of social justice, works hard to represent those who don’t have a voice, and she deeply believes and supports the SLP school system. I am confident the SLP City council would benefit tremendously by Karen’s leadership and personal commitment to your organization. Please do not hesitate to contact me at 612-280-8384 or at sallymccarthy912@gmail.com, should you have any questions. With great pleasure, Sally McCarthy Procter and Gamble retired Executive- 36 years Tree House Board president Amplify Board member Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 39 From:Jake Spano To:Thia Bryan; nmohamed@stlouispark.oreg; Margaret Rog; Lynette Dumalag; Sue Budd; Tim Brausen; Melissa Kennedy Subject:RE: Support for Karen McCarren"s At Large City Council Application Date:Wednesday, December 28, 2022 8:43:46 AM Thank you Thia for taking the time to reach out to us on this. I’ve cc’d our city clerk so your note can be entered into the public record. Have an excellent end to your 2022! Jake Spano He/Him/His (Curious about pronouns? Check this out for helpful info) Mayor, City of St. Louis Park 5005 Minnetonka Boulevard St. Louis Park, MN 55426 Direct - 952-928-1448 Twitter - @spanojake From: Thia Bryan Sent: Tuesday, December 27, 2022 7:31 PM To: Jake Spano; nmohamed@stlouispark.oreg; Margaret Rog; Lynette Dumalag; Sue Budd; Tim Brausen Subject: Support for Karen McCarren's At Large City Council Application CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Mayor Spano and Saint Louis Park Council Members, I am writing to submit a letter of support for Karen McCarren's appointment to the At-Large Saint Louis Park City Council open seat. Karen McCarren is a neighbor, a fellow Saint Louis Park Schools parent, and a HealthPartners colleague and friend. I have gotten to know Karen over the past several years as a neighbor and fellow Park Spanish Immersion Elementary and Middle School parent, especially through our collaborative work on the Saint Louis Park Middle School Site Council Racial Equity Subcommittee. Recently, Karen and I have also worked professionally on some of the same HealthPartners initiatives, including bias and anti-racism organizational trainings, as well as a leadership strategy group on trauma-responsive worksite environment and practices. As is clearly evident through her application and resume, Karen's transferable knowledge and the experience that she could bring to the Council opportunity shines through. Through my work with Karen, I have observed her to be thoughtful, attentive, engaged, committed and motivated. She has been effective at carefully listening, including and engaging diverse and important perspectives, and helping to create end results that meet strategic goals towards change. As she was preparing to submit her application for the At-Large Council roie, Karen and I Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 40 discussed the opportunity and how her background and current professional and community leadership focus would be excellent support and knowledge to help step into the role and expand her learning through the new Council experience. Additionally, Karen's deep Saint Louis Park roots and healthcare connections and experience position Karen well to help the Council and our City to continue and expand strategic work already in progress. Thanks in advance for your consideration of Karen McCarren for the role. Please feel free to reach out directly with any additional questions. Thia Bryan Thia Bryan, MA, IBCLC, NASM CPT Ward 2 Saint Louis Park Resident Park Spanish Immersion and Saint Louis Park Middle School Parent Community Health & Well-being Partnership Manager, HealthPartners (612) 990-6563 tabryan24@gmail.com Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 41 From:Jake Spano To:Amity Erickson Cc:Tim Brausen; Sue Budd; Lynette Dumalag; Margaret Rog; Nadia Mohamed; Melissa Kennedy Subject:Re: Consideration for Karen McCarren for the Vacant City Council Seat - Thank You Date:Friday, December 30, 2022 2:22:22 PM Thank you for taking the time to send us this email Amity and for your efforts to support our community and neighbors. By way of cc, I’m including our city clerk who can make sure this is part of the public record on Karen’s application. Thank you again and stay warm! Jake Spano Mayor St. Louis Park, MN (he/him/his) 952-928-1448 (direct) On Dec 30, 2022, at 9:27 AM, Amity Erickson <Amity.M.Erickson@hotmail.com> wrote: CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good Morning, I am honored to take a moment to express my support and recommendation for Karen McCarren for St Louis Park, City Council. I met Karen early in my tenure at our shared employer. Karen became a key partner for me within our roles at our organization and for focused efforts in Diversity, Equity & Inclusion. I quickly observed Karen's passion for humans and the human experience overall, while bringing her learning from her own personal journey into conversations, leader and employee meetings, building curriculum and our overall partnership. What is so impactful about Karen's skill set is her ability to understand and keep in view large systems while maintaining a focus to people within the system and impact. Karen is kind, compassionate, very self-aware and open to being a lifelong learner, seeking feedback and consult. Karen is one of the few white women who I can say is utilizing her privilege and position of power to amplify the community around her both in her professional and personal spaces. In fact, Karen is partnering with me and additional colleagues on a potential connection with St Louis Park High School and Methodist Hospital. I am happy to discuss further Karen, as there is much more to say. Thank you for Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 42 your time and consideration. Amity Erickson Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 43 From:Jake Spano To:Kristen Hara Cc:Nadia Mohamed; Margaret Rog; Lynette Dumalag; Sue Budd; Tim Brausen; Melissa Kennedy Subject:Re: City Council Open Seat Date:Sunday, January 8, 2023 12:52:30 PM Kristen- Thanks for the email and for sharing your thoughts with us! I’ve ccd our city clerk to make sure this is part of the public record on Karen’s application. Have a great weekend Kristen, Jake Spano Mayor St. Louis Park, MN (he/him/his) 952-928-1448 (direct) On Jan 7, 2023, at 11:59 AM, Kristen Hara <k2hara@hotmail.com> wrote:  CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Dear Mayor Spano and City Council Members, As a current St. Louis Park resident and an employee in our public school district, I want to first offer my deep gratitude to each of you for your service and commitment to our community. Being a direct descendant of Japanese incarceration camp survivors, I am particularly grateful to live in a city where racial equity is a Strategic Priority. I appreciate the city's continued efforts to right the wrongs of our racist past and find equitable ways to ensure our most historically marginalized community members can thrive. I'm writing to support an upcoming candidate for the at large seat A, Karen McCarren. I initially met Karen through the friendship of our daughters who are current 7th graders at the middle school, but I really got to know Karen's heart through her participation in the HOPE Speaks Project. Karen participated with her daughter in a class designed to unpack the invisible and explicit ways race impacts our lived experiences and what we can do to disrupt patterns and system of oppression. To me, Karen demonstrated the vulnerability, courage, and compassion needed for a lifetime commitment to racial equity. Through the years, she has demonstrated this commitment in her personal and professional life, and I am confident that she will carry this work forward in her role as a city Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 44 council member. As a longtime resident and active member of the community, Karen has developed deep roots and a strong connection to St. Louis Park through her many relationships, her long history of volunteer work and family engagement, and her desire to live and grow in a thriving, inclusive, and environmentally caring and responsible city. I have known Karen to act with integrity, be open to feedback and new ideas, show a willingness to learn from and collaborate with others, and go the extra mile to help out when needed. For all of these reasons and more, I believe Karen will be a strong leader to fill the vacant city council seat. Thanks again for leadership and service to our community, Kristen Hara Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 45 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 46 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 47 Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 48 4       Thank you,  St. Louis Park, MN   This is an automated message generated by Granicus. Please do not reply directly to this email.  Study session meeting of January 23, 2023 (Item No. 1) Title: City council vacancy interview and appointment process Page 49 Meeting: Study session Meeting date: January 23, 2023 Written report: 2 Executive summary Title: Quarterly development update – 1st Quarter 2023 Recommended action: None. The attached report summarizes the status of major development projects in St. Louis Park. Policy consideration: Not applicable. Contact staff with any questions. Summary: The attached report is meant to keep the EDA/city council informed on a quarterly basis as to the metrics and tentative schedule of major development projects occurring in the city. For clarity, “Proposed developments” are those that are working through the planning entitlement process such as platting, PUDs, variances, and have not yet been approved. “Approved developments” are those whose planning applications have been approved by the city council and have not yet commenced construction (but whose financial assistance agreements may or may not yet have been approved). “Completed developments” are those which have received their certificates of occupancy. More detailed information can be found on the interactive development dashboard on the city’s website. The dashboard provides project metrics for all large developments or additions that have been approved, under construction, or completed within the city since 2010. The dashboard includes website links, market rate and affordable unit counts by bedroom size, parking information for overall stalls, bike facilities, and electric vehicle charging stations, and more. 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. Supporting documents: Major developments in St. Louis Park – 1st Quarter 2023 Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Study session meeting of January 23, 2023 (Item No. 2) Page 2 Title: Quarterly development update – 1st Quarter 2023 Major Developments in St. Louis Park 1st Quarter 2023 Multifamily housing development summary Total Market rate Affordable Proposed units 8 0 8 Approved units 950 745 205 Units under construction 1,460 952 508 Recently completed units (last two years) 499 439 60 All units 2,917 2,136 781 Total Development Costs (TDC)* $898.4 million *TDC includes all developments in the above categories to the extent known For additional information please see Development Projects on the city’s web site. Proposed developments Project, location & developer Project Description Tentative Schedule Minnetonka Blvd redevelopment 5707 – 5639 Minnetonka Blvd. GMHC (Greater Metropolitan Housing Corporation) & (WHAHLT) West Hennepin Affordable Housing Land Trust Proposed is the removal of four modest single-family houses and construction of four twin homes (eight-units), providing eight affordable home-ownership opportunities. Estimated total development cost $3.7 million Website: NA – too early in the process. Project plans could be presented to council by Q3 2023. Construction commencement Q4, 2023 upon GMHC securing LIHTC financing. Study session meeting of January 23, 2023 (Item No. 2) Page 3 Title: Quarterly development update – 1st Quarter 2023 Approved developments Project, location & developer Project Description Tentative Schedule 2625 Louisiana Avenue 2625 Louisiana Ave. Web Development LLC Largely vacant parcel adjacent to North Cedar Lake Regional Trail to be redeveloped with a 57-unit, four-story, mixed-use market-rate building with approximately 4,000 square feet of ground floor commercial space along with underground and surface parking. Project includes a public path connecting Louisiana Avenue to the Regional Trail. Estimated total development cost: $TBD Planning entitlements approved. Construction commencement by Q2, 2023. Arlington Row East & West 7705 Wayzata Blvd. & 7905 Wayzata Blvd. Melrose Company Two development sites: • 7905 Wayzata includes two three-story apartment buildings with 34 units total and off-street parking covered by a solar power carport. • 7705 Wayzata includes a three-story apartment building with 27 units and surface parking. Estimated construction cost: $TBD Planning applications approved. Tentative construction commencement TBD. Study session meeting of January 23, 2023 (Item No. 2) Page 4 Title: Quarterly development update – 1st Quarter 2023 Approved developments Project, location & developer Project Description Tentative Schedule Beltline Blvd Station Site SE quadrant of CSAH 25 & Beltline Blvd. Sherman Associates Major mixed-use, mixed income, transit-oriented, multi-phase development adjacent to SWLRT Beltline Blvd. Station. Building I includes: • Seven-story mixed-use building with six levels of market rate housing (156 units) and 20,000 square feet of neighborhood commercial space • A 592-stall parking ramp, which would include 268 park & ride stalls, 326 residential stalls and approximately 2,000 square feet of commercial space. Estimated development cost: $55 million Building 2 includes: • Four-story all affordable apartment building with 82 units, 77 units will be affordable to households at 60% AMI and five units will be affordable to households at 30% AMI. 22 units will have three-bedrooms. Estimated development cost: $25 million Building 3 includes: • Five-story market rate apartment building with 146 units. Estimated development cost: $47 million Altogether, the multi-phase redevelopment will have 384 apartment units of which 82 (21%) would be affordable. Estimated total development cost: $150 million Awarded $13.7 million in LIHTC bonds January 2022 for affordable component. Planning applications approved April 18, 2022. Financial assistance agreements approved June 20, 2022, with remaining agreements expected Q1 2023. Anticipated construction: • Grading winter/spring 2023 • Building 2 Q3, 2023 • Building 1 Q3, 2023 • Building 3 Q3, 2023 • Ramp Q4, 2023 Construction completion all phases Q1, 2025. Study session meeting of January 23, 2023 (Item No. 2) Page 5 Title: Quarterly development update – 1st Quarter 2023 Approved developments Project, location & developer Project Description Tentative Schedule OlyHi Wooddale Ave Station redevelopment site  5950 W. 36th St. & 5802 36th St. Saturday Properties and Anderson Companies Mixed-use, mixed income, transit-oriented development next to SWLRT Wooddale Avenue Station. Two, six-story, mixed use buildings with a total of 315 apartment units. • 252 market rate units. • 32 units affordable to households @ 50% AMI. • 31 units affordable to households @ 60% AMI. • 12,000 square feet of ground floor commercial space. • 3,500 square feet of co-working/community space. • 17,000 square feet public plaza for public events, site amenities, and public art. Estimated total development cost: $105.3 million Planning entitlements approved. TIF request to be considered Q1, 2023. Construction commencement Q3, 2023. Union Park Flats 3700 Alabama Ave. & 6027 37th St. W. PPL (Project for Pride in Living) Redevelopment of the north portion of the Union Congregational Church property with a three story, 60-unit affordable apartment building on the north half of the property. All unit rents would be affordable to households ranging from 30%-80% AMI. Union Congregational Church plans to remain on the south portion of the property. Estimated total development cost: $28.6 million Planning applications approved July 6, 2020. Received funding from MHFA in June 2022 and fall 2022. SLP AHTF request to be considered Q1, 2023. Construction commencement Q2, 2023 upon city AHTF approvals. Study session meeting of January 23, 2023 (Item No. 2) Page 6 Title: Quarterly development update – 1st Quarter 2023 Under construction Project, location & developer Project Description Tentative Schedule Arbor House 3801 Wooddale Ave. S. Real Estate Equities LLC Redevelopment of former Aldersgate Church property adjacent to Burlington Coat/Micro Center and Highway 100. All affordable housing development includes 114-units, with 205 parking stalls, of which 117 stalls would be underground. • Five units affordable to households at 30% AMI • Five units affordable to households at 50% AMI • 104 units affordable to households at 60% AMI Estimated total development cost $30.1 million Awarded $17.5 million in LIHTC bonds January 2022. Construction commencement August 2022. Bremer Bank 7924 Hwy. 7 Frauenshuh The retail building containing Knollwood Liquor and Papa Murphy’s Pizza to be removed and replaced with a two-story, 5,850 square foot office building to be occupied by Bremer Bank. Construction commencement November 2022. Study session meeting of January 23, 2023 (Item No. 2) Page 7 Title: Quarterly development update – 1st Quarter 2023 Under construction Project, location & developer Project Description Tentative Schedule Caraway (Formerly Luxe Residential) 5235 Wayzata Blvd. (Phase VI of Central Park West) Greystar Real Estate Partners Redevelopment of former Olive Garden property in The West End area. Luxe Residential is a six-story, 207-unit, apartment building (including eight units affordable to households at 60% AMI) along with two levels of underground parking. The development also includes a new pocket park along 16th Street and pedestrian improvements connecting the apartment building to the rest of The West End area. Estimated construction cost: $51.8 million Construction commencement October 2021 to be completed by September 30, 2023. Corsa (Formerly Beltline Residences) 3440 Beltline Blvd. Opus Group Five-story, 250-unit mixed-use, mixed income development with two retail spaces totaling 7,445 square feet and six live/work units. 10% of the units (25) will be affordable to households at 50% AMI. Estimated total development cost: $78.1 million Construction commencement March 2022 to be completed by October 2023. Study session meeting of January 23, 2023 (Item No. 2) Page 8 Title: Quarterly development update – 1st Quarter 2023 Under construction Project, location & developer Project Description Tentative Schedule Mera (Formerly 9920 Wayzata) 9808 & 9920 Wayzata Blvd. Bigos Management Redevelopment of former Santorini’s restaurant property at northwest quadrant of I-394 & US 169. Six-story, 233-unit, mixed income apartment building with 20% (47) of the units affordable to households at 50% AMI. Estimated total development cost: $68.6 million Construction commenced September 2022 to be completed by July 2024. Parkway Residences W 31st St. between Inglewood Ave. & Glenhurst Ave. Sela Group & Affiliates Multi-phase redevelopment includes four, multi-family buildings with 211 units. The affordable housing includes 24 rehabilitated units at 50% AMI, and six new units at 60% AMI. Phase II: Parkway Commons: Four-story, 37-unit apartment building. Estimated development cost: $14.6 million Phase III: Eleven-story, 73-unit apartment building. Estimated development cost: $36.2 million Estimated total development cost (all phases): $91.4 million Phase III (Parkway Commons) Anticipated completion February 2023. Phase III commencement Spring 2024. Study session meeting of January 23, 2023 (Item No. 2) Page 9 Title: Quarterly development update – 1st Quarter 2023 Under construction Project, location & developer Project Description Tentative Schedule Rise on 7 8115 Hwy. 7 CommonBond Redevelopment of former Prince of Peace church property across from Shops at Knollwood. Includes a four-story, 120-unit, all affordable apartment building with income restrictions ranging between 30%-80% AMI along with a 6,600 square foot “affordable” early childhood center. Estimated total development cost: $40.7 million Awarded $17.7 million in LIHTC bonds January 2022. Construction commencement August 2022 to be completed by August 2024. Risor 3510 Beltline Blvd. Roers Company Six-story, 170-unit apartment building with 4,100 square feet of ground floor commercial space and 14 ground floor live- work units. The development will be an age restricted (55+) community with 10% (18) of the units affordable to households at 50% AMI. Estimated construction cost: $56.5 million Construction commencement April 2022. Study session meeting of January 23, 2023 (Item No. 2) Page 10 Title: Quarterly development update – 1st Quarter 2023 Under construction Project, location & developer Project Description Tentative Schedule VIA Sol SE quadrant Hwy. 7 & Wooddale Ave. 5855 Hwy. 7 PLACE Mixed-use, mixed-income, transit-oriented development including a five-story, 217-unit apartment building (65 market rate units, 22 units affordable to households at 50% AMI, and 130 units affordable to households at 80% AMI), e-generation, wind turbine, solar panels, and one-acre urban forest. Estimated total development cost: $88.4 million Commenced January 2020. Closed on additional financing January 2022. Apartments complete August 2022. Complete E-Generation building by June 30, 2023. Volo at Texa-Tonka NE corner Texas Ave. & Minnetonka Blvd. Paster Development Mixed income redevelopment includes 101 apartment units in a three- to four-story building, and 11 walk-up style townhome units located in two two-story buildings on the northern end of the site. Twenty percent (23) of the units would be affordable to households at 50% AMI. Estimated total development cost: $26.6 million Construction commencement September 2021 to be completed by Spring 2023. Certificate of Occupancy issued for 11 townhome units Q4, 2022. Study session meeting of January 23, 2023 (Item No. 2) Page 11 Title: Quarterly development update – 1st Quarter 2023 Recently completed developments Project, location & developer Project Description Tentative Schedule 10 West End (Phase IV of Central Park West) 1601 Utica Ave. S. Excelsior Group and Ryan Co. Award winning eleven story, 343,000 square foot Class A, LEED certified, office building with 3,500 square feet of ground floor commercial space, 5,000 square feet of shared outdoor amenity space and 1,214 stall parking structure. Estimated construction cost: $55.8 million Completed January 2021. The Elmwood 5605 W. 36th St. Main Street Companies Five story, 70-unit, mixed-use, mixed income, age restricted development (53 market rate and 17 units affordable to households at 60% AMI), 4,400 square feet of ground floor office/commercial space. Estimated total development cost: $24.6 million Completed August 2021. Study session meeting of January 23, 2023 (Item No. 2) Page 12 Title: Quarterly development update – 1st Quarter 2023 Recently completed developments Project, location & developer Project Description Tentative Schedule Louisiana Crossing 3745 Louisiana Ave. Loffler Companies Loffler Companies is renovating the 132,485 square foot former Sam’s Club building. The Midwest’s largest office- technology and IT-services company is consolidating its headquarters and warehouse operations at this new location resulting in over 500 jobs. Loffler is leasing out 30,000 square feet in the building and may eventually sell the south end of the 13-acre property for multifamily housing. Estimated construction cost: $TBD Warehouse operations moved in Q4, 2021. Office renovation completed in Q4, 2022. Parkway Residences W 31st St. between Inglewood Ave. & Glenhurst Ave. Sela Group & Affiliates Multi-phase redevelopment includes four, multi-family buildings with 211 units. The affordable housing includes 24 rehabilitated units at 50% AMI, and six new units at 60% AMI. Phase I: • Parkway Place: Four-story, 95-unit apartment building. • Parkway Flats: Six-unit apartment building. • Rehab of 24 NOAH apartment units. Estimated development cost: $40.6 million Parkway Place & rehab commenced May 2020 completed April 30, 2022. Parkway Flat commenced October 2021 completed October 2022. Study session meeting of January 23, 2023 (Item No. 2) Page 13 Title: Quarterly development update – 1st Quarter 2023 Recently completed developments Project, location & developer Project Description Tentative Schedule The Quentin 4900 Cedar Lake Rd. Crowe Companies LLC Project included the removal of three substandard buildings and construction of a five story, 79-unit sustainable apartment building that includes two levels of structured parking. The housing includes eight units affordable to households at 50% AMI. Estimated total development cost: $21.3 million. Completed August 2021. Xchange Medical Office 6009 Wayzata Blvd. Davis Group Three-story, Class A, medical office development fronting I-394. Ear Nose & Throat Specialty Care (ENTSC) and Surgical Care Affiliates (SCA) anchor the 77,996-square foot medical office building. Includes one level of underground parking with 51 stalls and 253 surface parking stalls on the building’s south side. Estimated construction cost: $13 million Completed November 2021. Study session meeting of January 23, 2023 (Item No. 2) Page 14 Title: Quarterly development update – 1st Quarter 2023 Recently completed developments Project, location & developer Project Description Tentative Schedule Nordic Ware expansions  Buildings 8 & 9 5005 CSAH 25 Dalquist Properties LLC 21,853-square-foot warehouse and loading dock addition to Building 8. 45,000 square foot warehouse and loading dock addition to Building 9 along with a small café and outdoor patio on the property’s south side facing the regional trail. Estimated construction cost: $11.6 million Completed Q2, 2022. Meeting: Study session Meeting date: January 23, 2023 Written report: 3 Executive summary Title: Application for financial assistance – Union Park Flats Recommended action: This staff report outlines Project for Pride in Living’s (PPL) application for financial assistance in connection with its proposed Union Park Flats redevelopment. Policy consideration: Is the EDA/city council willing to consider entering into a redevelopment contract to provide a 40-year deferred loan for $450,000 from the Affordable Housing Trust Fund to enable the project to achieve financial feasibility? Summary: Nonprofit Redeveloper, Project for Pride in Living (PPL) (“Redeveloper”), has a purchase agreement to acquire approximately the north half of the block at 3700 Alabama Ave, which is owned and occupied by Union Congregational Church. PPL’s proposed plans call for the removal of the church’s education building and adjacent parking lot and construction of a three-story apartment building providing 60 units of affordable multi-family housing. The proposed $28.5 million project includes a mix of studios, one- two- three- and four- bedroom units. All units would be affordable to households between 30% of the area median income (AMI) to 60% AMI, exceeding the city's Inclusionary Housing Policy requirements. The development includes 16 deeply affordable units at 30% AMI and 15 family-sized units. The EDA received a staff report outlining PPL’s original request for financial assistance in June 2020 and an update in April 2022. At both times, the EDA approved resolutions of support to provide financial assistance to the development. PPL is now ready to move forward with formal approvals of the pledged financial assistance. Provided in this report is an analysis of PPL’s financial request utilizing the city’s 2021 updated TIF policy criteria and the recommended level of assistance even though there is no TIF assistance being recommended. Financial or budget considerations: PPL has been awarded $19.57 million in tax credit funding from Minnesota Housing Finance Agency (MHFA) and funding through various grants. Despite these sources, PPL maintains the project’s proforma exhibits a funding gap. Consequently, PPL applied for financial assistance from the EDA/city to address the remaining gap. Ehlers, the EDA’s financial consultant, and staff reviewed the project’s proforma and determined that $450,000 in financial assistance is warranted to enable the project to proceed. Given the relatively modest amount of assistance required staff is recommending the assistance be derived from the Affordable Housing Trust Fund (AHTF), in lieu of creating another TIF district. PPL would repay the outstanding balance in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. The project meets the city’s requirements for providing AHTF financing. 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, redevelopment admin., Keith Dahl, municipal advisor, Ehlers Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Study session meeting of January 23, 2023 (Item No. 3) Page 2 Title: Application for financial assistance – Union Park Flats Discussion Site information: The proposed redevelopment site (6027 37th Street West and approximately the north half of 3700 Alabama Avenue South) is located along the south side of 37th Street West between Alabama and Brunswick Avenues in the Elmwood neighborhood. It is occupied by Union Congregational Church’s single-story education building and adjacent parking lot. The redevelopment site is approximately 1.2 acres and is underutilized from a market value perspective, given the multi-story office building across the street to the north, the multi-family residential development (Village in the Park) to the east and its approximate 3-block proximity to the future SWLRT Wooddale Avenue Station. Proposed redevelopment location: Proposed redevelopment site for Union Park Flats Site area (acres): 1.19 acres Current use: religious institution Surrounding land uses: Neighborhood: Elmwood North: General Industrial East: Multi-family residential, office South: single-family residential West: single-family residential Project site Oxford Street West 37th Street Church site Study session meeting of January 23, 2023 (Item No. 3) Page 3 Title: Application for financial assistance – Union Park Flats Background: A summary of all previous actions is provided in the following table. More specific details on the various actions are provided below the table. Previous actions Governing body Date Approved an amendment to the 2040 Comprehensive Plan Future Land Use Map and approved a preliminary and final plat. City council June 15, 2020 EDA approved a resolution of support for TIF assistance not to exceed $600,000 EDA July 6, 2020 Approved the 2nd Reading of the preliminary and final planned unit development ordinance City Council July 6, 2020 PPL applied to MHFA for tax credits and were not selected. PPL Summer 2020/ January 2021 PPL applied to MHFA for tax credits PPL Summer 2021 MHFA awarded tax credits to PPL’s Union Park Flats development MHFA January 2022 Ehlers, the EDA’s financial consultant, reexamined PPL’s request for TIF, and recommended changing the city’s financial assistance from TIF to AHTF Ehlers/EDA January 2022 EDA approved a resolution of support for AHTF assistance not to exceed $450,000 EDA April 2022 PPL submitted another application to MHFA for additional tax credits due to rising interest rates and construction costs, taking into account adjustment to the city’s financial assistance from TIF to AHTF PPL Summer 2022 MHFA awarded additional tax credits to Union Park Flats MHFA Fall 2022 Detailed summary of past actions: On July 6, 2020, the EDA approved a resolution of support for tax increment financing assistance (TIF) in an amount not to exceed $600,000 to support PPL’s proposed all-affordable housing development at 3700 Alabama Avenue; Union Park Flats. The city council also approved a comprehensive plan amendment, a preliminary and final plat and approved the zoning for the development via a preliminary and final planned unit development. In January 2022, PPL was awarded tax credits from MHFA, however several factors, including tax classification changes, interest rate increases, and rising construction costs required them to apply for additional tax credits. At this time, Ehlers, the EDA’s financial consultant, reexamined PPL’s financial request and recommended altering the city’s financial assistance. Rather than establishing a new TIF district for the project, Ehlers recommended providing assistance via the Affordable Housing Trust Fund (AHTF). Per Ehlers, providing funding through the AHTF, rather than TIF, would be more cost effective for the project and would help lower the project’s total development costs. On April 4, 2022, the EDA approved a resolution of support for PPL’s second application to MHFA and pledged to provide up to $450,000 in financial assistance through the AHTF. In fall 2022, PPL was awarded additional tax credits from a rollover of unused funds from previous years. PPL is now requesting the EDA/city council formally resume the process of providing Study session meeting of January 23, 2023 (Item No. 3) Page 4 Title: Application for financial assistance – Union Park Flats financial assistance to the proposed project. Provided in the staff report below is an analysis of PPL’s financial request utilizing the city’s updated TIF policy criteria (adopted Fall 2021). Present considerations: Nonprofit Redeveloper Project for Pride in Living (PPL) (“Redeveloper”) has a purchase agreement to acquire 6027 37th Street West and approximately the north half of 3700 Alabama Avenue South from the Union Congregational Church. PPL’s proposed plans call for the removal of the church’s education building and adjacent parking lot and construction of a three story, 60-unit apartment building. Walk-up units with covered porches would be located along the public streets. Pedestrian walkways, a play area, and an educational stormwater pollinator garden would be located on the building’s southside. Structured parking would be provided below grade and would be accessed from Alabama Avenue. The development will also provide a meeting room available for use by the community, located on the first floor along 37th Avenue. An affiliate of PPL would own and manage the new housing for the long term. Union Congregational intends to use the land sale proceeds to preserve and renovate the church’s sanctuary to make it more welcoming and accommodating. Rendering of proposed Union Park Flats Union Park Flats will be a single-phase, all-affordable residential development and will include a combination of studio, one-, two-, three- and four-bedroom units, including 16 deeply affordable units at 30% area median income. There are 15 units designed for larger families including ten three-bedroom units and five four-bedroom units. Unit Type 30% AMI 50% AMI 60% AMI Total units Studio 10 10 1-bedroom 4 1 5 2-bedroom 1 21 8 30 3-bedroom 1 2 7 10 4-bedroom 3 2 5 Total 16 27 17 60 Study session meeting of January 23, 2023 (Item No. 3) Page 5 Title: Application for financial assistance – Union Park Flats Upon closing on its financing, the development team plans to commence construction in spring 2023 and complete construction by summer 2024. Project for Pride in Living would own and manage the development for the long term. Inclusionary housing: The redevelopment’s focus is to provide affordable housing for families, with units ranging from studios to four-bedrooms. The units would be considered affordable to households at incomes ranging from 30% of the Area Median Income (AMI) (or $35,190 for a household of 4) to 60% of AMI (or $70,380 for a household of 4). This level of affordability exceeds the city’s Inclusionary Housing Policy requirements. The development will be 100% affordable for 26 years and PPL has agreed to provide at least 40% of the units affordable at 60% AMI for 50 years, also exceeding the city’s policy. Climate Action Plan: The proposed Union Park Flats will exceed with the city's Green Building Policy (as amended in 2018) by meeting SB 2030 goals and following the Enterprise Green Communities Criteria ('GCC'). The project has a goal of obtaining over 105 points through the GCC, compared to 35 points for a typical GCC project. Some of the project's specific sustainable elements are explained below. • Reuse of a likely brownfield site (former parking lot with possible contamination and buried debris from decades-old demolition). • Access to bus and light transit at the Wooddale Avenue LRT Station approximately three blocks away. This frequent transit service reduces the need for single-occupancy vehicles and vehicle miles traveled to reduce vehicle emissions. • Access to bike lanes (i.e. along Alabama Avenue) and regional trails. • A new, advanced stormwater management system will replace the highly impervious parking lot that covers much of the site currently. Stormwater will be held on site for re- use in irrigation, preserving potable water for domestic use with a goal of 50% of irrigation needs covered by re-used stormwater. • The project will meet SB 2030 requirements. Exactly how the project will achieve the required performance standard will be determined through energy modeling and building design, but areas that will be considered as part of the energy design package will include: mechanical systems; electrical systems and controls; building envelope, including insulation, roof and windows. • Water Sense labeled toilets, showerheads, and faucets. • Low volatile organic compound and asthmagen-free interior finish materials. • Construction waste recycling. • The building has been sited to take advantage of a “high spot” along 37th Avenue for the primary first-floor building entrance, and a “low spot” along Alabama Avenue for the vehicular access to lower-level parking. PPL has allowed for a low-slope garage entrance ramp that does not need to be heated for safety reasons - to melt winter snow and ice – which would save energy. • The project received grant funding from the Metropolitan Council which will be funding a solar photovoltaic array. Additional community design attributes: Additional urban design elements that enhance the neighborhood include: Study session meeting of January 23, 2023 (Item No. 3) Page 6 Title: Application for financial assistance – Union Park Flats • Buildings are appropriately scaled to blend into the existing neighborhood and feature underground versus surface parking. • Extensive landscaping and hardscaping. • A new mid-block sidewalk with pedestrian amenities including benches, shade trees, and lighting. • Extensive bike parking, bike storage, and repair stations--including bike facilities that serve the community. • Pedestrian-scaled and designed to encourage community interactions at the street level. • A variety of quality, exterior building materials in natural colors, abundant windows, and decorative lighting. • A community room located on the first floor of the building along 37th Avenue that will be available for use by the community. Racial equity and inclusion: PPL predominantly serves people disproportionately affected by systemic inequities. 88% of PPL’s residents are Black, Indigenous, or People of Color (BIPOC). Knowing that Minnesota has some of the highest racial disparities in the U.S. in various measures of life, PPL has been on a deliberate journey to advance race equity since 2015. PPL’s strategic plan recognizes the importance of diversity, equity, and inclusion. Since 2016, PPL has invested in assessments and training to make the hard conversations about race part of their everyday culture. They used the Intercultural Development Inventory (IDI) to understand their cultural competence and created development plans for each employee. Their Diversity, Equity, and Inclusion staff committee, along with a director of equity and engagement, have created a robust training and dialogue process to continue this growth. In 2018, they adopted an equity statement that states, “PPL strives to be an equitable and inclusive organization committed to elevating the voices of the communities we serve that are disproportionately affected by systemic inequities.” PPL’s strategic DEI goals include: • Continue to define what we mean by DEI and racial equity. • Leverage assessment tools to boost cultural competency. • Grow partnerships. • Adopt a DEI/racial equity framework and strengthen the internal equity culture. At the end of 2020, 59% of PPL staff were BIPOC, 30% of PPL leadership staff were BIPOC, and 36% of PPL’s Board were BIPOC. PPL is beginning to see an organic shift as staff across the organization leverage their learning to improve PPL’s practices and implement equity-advancing strategies. The Developer: PPL has developed more than 2,500 affordable housing units, both rental and for-sale, over its’s nearly 50-year history of renovating and building homes. PPL’s mission “is to build the hope, assets, and self-reliance of individuals and families who have lower incomes by providing transformative affordable housing and career readiness services.” Some similar recent PPL developments include: Oxford Village in Hopkins, that was completed in 2017 and provides 51 units of affordable family-sized housing, Maya Commons, a 50 units development in Minneapolis which was completed in 2020, Hawthorne EcoVillage Apartments a 75 unit Study session meeting of January 23, 2023 (Item No. 3) Page 7 Title: Application for financial assistance – Union Park Flats development in Minneapolis, and Hamline Station a 108 unit development in St. Paul. PPL also just closed on two projects at Highland Bridge on the old Ford Motors site in St. Paul. Financial need: The proposed project will be funded using Low-Income Housing Tax Credits, and a combination of other sources including those from: Metropolitan Council Livable Communities Demonstration Account, MN Brownfields, MN Housing’s deferred loan program, Hennepin County’s Affordable Housing Incentive Fund, Environmental Response Fund programs, and Transit-Oriented Development programs, and a first mortgage maximized by the MN Housing LMIR program. There are a number of extraordinary costs, including building demolition and removal, site contamination from a previous 8,000-gallon fuel oil tank that was removed in 1989, buried debris from homes demolished on the site in the 1980s, and structured parking, that are associated with the redevelopment which would prohibit the project from happening in the reasonably foreseeable future without additional public financial assistance. These extraordinary redevelopment costs, along with the all-affordable nature of the development and proposed sustainable features create a gap in the project’s financial proforma. To mitigate the project’s estimated financial gap, PPL applied for $1.16 million in tax increment financing (TIF) assistance*. On July 6, 2020, the EDA approved a resolution of support for tax increment financing assistance in an amount not to exceed $600,000 contingent upon verification of financial need based on the project’s final proforma. *TIF uses most of the increased future property taxes generated by a new development to finance certain qualified development costs incurred by that project for a limited period of time to enable it to achieve financial feasibility. In January 2022, PPL was awarded tax credits from Minnesota Housing Finance Agency (MHFA). Developers are awarded tax credits, through a competitive application process, and then sell them to investors to generate equity for the construction of affordable housing. Without the tax-credit incentive to investors, affordable apartment projects would not be constructed since they do not generate sufficient cashflow to pay operating expenses, debt service, and provide an investor a reasonable return on investment. After the MHFA award, Ehlers reexamined PPL’s financial request and recommended altering the city’s financial assistance. Rather than establishing a new TIF district for the project, Ehlers recommends providing assistance via the Affordable Housing Trust Fund (AHTF). Per Ehlers, providing funding through the AHTF, rather than TIF, would be more cost effective for the project and would help lower the project’s total development costs. Due to construction cost increases, rising inflation, interest rates hikes and an adjustment to the city’s financial assistance, PPL submitted a second application from MHFA for additional tax credits in summer 2022, and were awarded additional MHFA funding in fall 2022, for a total of $19.57 million in tax credits. Public financial assistance analysis: Since the city’s AHTF is funded, in part, through pooled TIF, staff and Ehlers analyzed PPL’s financial request based on general industry standards for land, construction, and project costs; tax credit pricing, deferred developer fees; rents; operating expenses; fees; underwriting and financing criteria; and project cash flow. Based on this analysis, Ehlers consulted with staff to determine the extent to which the proposed project continues to show a financial gap justifying the provision of AHTF assistance. Study session meeting of January 23, 2023 (Item No. 3) Page 8 Title: Application for financial assistance – Union Park Flats Extraordinary Costs Amount ($) Demolition $142,000 Asbestos Abatement Work $262,825 Soil Remediation Work $172,394 TOTAL Extraordinary Costs $577,219 Construction/Extraordinary Costs: The estimated total development cost (TDC) to construct the proposed Union Park Flats development is over $28.5 million or $474,000 per unit. Proposed level of assistance: The recommended level of assistance for the project was determined by analyzing private sources of financing, the project’s extraordinary site development costs, construction costs, required energy and sustainability improvements, and comparison to other tax credit projects. Ehlers concluded that AHTF assistance in the amount of $450,000 is necessary to enable the proposed development to become financially feasible. This level of assistance would sufficiently close the remaining financial gap to allow the proposed development to proceed. The Developer has indicated the recommended level of assistance is acceptable. Consistent with previous EDA redevelopment agreements, a "lookback" provision will be incorporated into the redevelopment agreement with the developer. The lookback will be tied to sale, refinance, or re-syndication of the project. If one of those events were to occur, the AHTF loan would be required to be repaid in full with interest. AHTF Deferred Loan: A deferred loan in the amount of $450,000 would be provided to PPL for the construction of affordable housing units. PPL would repay the outstanding balance in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. Analysis of development’s conformity with the city’s TIF Policy: There will be no new TIF districts established to provided funding to Union Park Flats. However, the AHTF is funded in part through pooled TIF. As such, the following table lists the objectives, qualifications, and guidelines for the use of tax increment financing as specified in the city’s TIF Policy as amended in December 2021, as well as how and whether the proposed development meets the majority of those standards. TIF Policy Compliance Table* Factor Requirement/Guideline Proposed Project Met? Applicable TIF District Redevelopment/Renewal & Renovation/ Housing/Economic Development Not applicable. NA Statutory TIF district requirements Housing District 40% of the units affordable at 60% AMI 20% of the units affordable at 50% AMI: or 10% of the units affordable at 30% AMI Not applicable. NA Use of TIF Proposed costs are statutorily eligible for reimbursement through proposed TIF district. Not applicable. NA Study session meeting of January 23, 2023 (Item No. 3) Page 9 Title: Application for financial assistance – Union Park Flats TIF Objectives TIF Policy requires projects to meet over half of applicable objectives for use of TIF. Proposed project meets nearly all the EDA’s Objectives for the use of TIF. Yes Minimum Qualifications Applicable Strategic Priorities. Proposed project provides broad range of housing and neighborhood-oriented development. Yes Meets Green Building Policy requirements. Development will exceed the Oct 2018 Green Bldg Policy requirements, and will be designed to exceed Green Community standards. Yes Meets Inclusionary Housing Policy requirements (if applicable). Development will exceed the Oct. 2021 Inclusionary Housing Policy requirements. Yes Meets Diversity, Equity, and Inclusion Policy. The Developer’s construction practices, and ongoing management will meet the intent of the city’s diversity, equity, and inclusion policy.* Yes* Consistent with city's Comprehensive Plan and Zoning Ordinance, or approvals pending. Proposed project is consistent with the city's Comprehensive Plan and Zoning Ordinance. Yes Removes contamination, blight and/or will not generate significant environmental problems. The project will not generate significant environmental problems, and will remove existing contamination. Yes Helps facilitate desired development that would not occur without assistance. Proposed assistance would facilitate desired affordable development and would not occur without such assistance. Yes Developer provided necessary documentation to evaluate TIF need and proposed project. Developer provided necessary documentation to evaluate proposed project and financial request. Yes Determined not financially feasible "but-for" the use of tax increment financing. Ehlers determined the proposed project is not financially feasible "but- Yes Study session meeting of January 23, 2023 (Item No. 3) Page 10 Title: Application for financial assistance – Union Park Flats for" the use of city financial assistance. Developer has experience and capability to construct proposed project. Developer has extensive experience and capability to construct the proposed project. Yes Developer plans to retain ownership of project long enough to stabilize occupancy (if applicable). PPL plans to retain ownership of the project through stabilization and will continue to manage the property. Yes Meets all Minimum Qualifications. The development meets all Minimum Qualifications Yes Desired Qualifications Incorporates Livable Communities, New Urbanism, TOD, Sustainable Design principles (i.e., mixed-use, urban design, human scale, walkable, public spaces, and sustainable design features). Proposed project incorporates Livable Communities, New Urbanism, and TOD design principles. Yes High quality development (sound architectural design, quality construction and materials). Proposed project will incorporate high quality design and materials. Yes Provides rents at deeper affordability levels such as 30% or 50% AMI (if applicable). 60 units (100%) will have rents affordable to households between 30% to 60% AMI. 16 units @ 30% AMI 27 units @ 50% AMI 17 units @ 60% AMI Yes Provides units for larger families (i.e., 3- & 4- bedroom units (if applicable)). 10 3-bedroom units and 5 4-bedroom units are proposed. Yes Complements and/or adds value to neighborhood by providing public elements or placemaking features (if applicable). The project has been scaled and designed to blend in with the adjacent neighborhood. Yes Proposed development will likely stimulate further investment in surrounding area/neighborhood. The redevelopment may stimulate some reinvestment in commercial area to the north and will provide funding for improvements to the existing union congregational church. Yes Provides new, or retained, employment (if applicable). The development will provide funding for the church to retain 2.6 FTEs through the land sale Yes Study session meeting of January 23, 2023 (Item No. 3) Page 11 Title: Application for financial assistance – Union Park Flats and the residential component will provide 2 new employment opportunities: 1 property manager and 1 maintenance technician. The increase in market value of the property after redevelopment is more than 8 times the original market value. The estimated market value of the site after redevelopment is 4.09 times the original market value.** No** Will have a positive community impact. Proposed project will have a significant positive impact by providing 60 affordable living units, including deeply affordable and family-sized units. Yes Will not place extraordinary demands on city services. City departments determined proposed project will not place extraordinary demands on city services. Yes Will not likely generate significant environmental problems and/or cleans-up existing contamination. The development will not generate any environmental problems and will clean up existing contamination. Yes Land price for project site is within market range. Land price for the project site is reasonable under current market conditions. Yes Ratio of private to city investment (TIF and grants) is more than $5 to $1. Proposed private to city investment is $53 to $1. Yes*** The proposed amount of TIF assistance or term of the TIF Note is within range of similar developments which received TIF assistance. Not applicable. Funding is being provided through the AHTF However, the proposed amount of financial AHTF assistance and terms of repayment is within range of similar developments. N/A Proposed TIF assistance will be provided on a pay-as-you-go-basis. Not applicable. Funding is being provided through the AHTF. NA Meets the majority of Desired Qualifications. The development meets the majority of Desired Qualifications Yes Study session meeting of January 23, 2023 (Item No. 3) Page 12 Title: Application for financial assistance – Union Park Flats *Planning applications were submitted and approved prior to the adoption of the diversity equity and inclusion policy (March 2022). Therefore, the development team is not required to adhere to this policy. However, staff will work with the development team to meet the intent of the policy during construction and ongoing management. Project for Pride in Living has extensive experience leading in Race, Equity and Inclusion initiatives and will continue to lead by example during the construction and operation of Union Park Flats. See section above pertaining to Race Equity and Inclusion. **The increase in market value of the property after redevelopment is less than 8 times the original market value. However, once sold to PPL, the property will no longer be tax exempt, making the market value for taxing entities greater than $0. Taking this into consideration, the value of the property will likely increase significantly more than if the tax-exempt church was sold to another entity to be used “as is”. *** While total development costs are slightly under $28.5 million, PPL has a considerable amount of public sources of financing from other governmental and quasi-governmental entities. The amount of private sources (i.e., first mortgage, tax credit equity, and deferred developer fee) is approximately $23.9 million. This amount was used for the ratio of private to city investment above. Union Park Flats meets the requirements for the provision of financial assistance under the AHTF. Additionally, it meets the majority of the objectives, qualifications, and guidelines as specified in the TIF Policy. Therefore, staff recommends approval of a $450,000 deferred loan to PPL from the AHTF to facilitate the proposed development. Summary and recommendations: Based upon its analysis of the developer’s proforma for Union Park Flats, Ehlers determined that the proposed development has a verified financial gap and is not financially feasible but-for the provision of city financial assistance through the AHTF. To offset this gap, it is proposed that the city consider utilizing a $450,000 deferred loan from the AHTF which would be repaid in full, plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. Providing financial assistance to the proposed Union Park Flats development achieves the following: • Provides the city with a quality, multi-family all-affordable housing development consistent with many goals of the 2040 Comprehensive Plan, city’s strategic priorities and council preferences. • Further diversifies the city’s housing stock with an additional 60 all-affordable multi- family units, including 16 deeply affordable units at 30 percent area median income, and ten three-bedroom and five four-bedroom units, exceeding the city’s Inclusionary Housing Policy requirements. • Provides a community room along 37th Avenue that is available for community uses. • Includes numerous sustainable features exceeding the city’s 2018 Green Building Policy requirements. • Brings the subject properties to significantly higher market value than they are currently. Study session meeting of January 23, 2023 (Item No. 3) Page 13 Title: Application for financial assistance – Union Park Flats • Utilizes the city’s affordable housing trust fund to assist future affordable housing developments and programs. • Redevelops an underutilized portion of a church property, allowing the church to reinvest in its building, bringing the structure up to current building and fire codes. PPL’s proposed Union Park Flats development meets the provision of Affordable Housing Trust Fund dollars per the AHTF Policy. Additionally, it has been demonstrated that the proposed development is not financially feasible but-for the provision of city financing. Lastly, due to the large amount of public dollars invested via other entities, the proposed amount of assistance is substantially less than other all-affordable housing developments in which the EDA previously invested. Given these findings, staff supports providing a $450,000 deferred loan for eligible costs associated with the construction of Union Park Flats. The deferred loan would be repaid plus interest at the earlier of 40 years, at sale, or at refinance or re-syndication of the project. Next steps: Provided the EDA/city council support providing such financial assistance as outlined in this report, the EDA/city council will be asked to begin the formal process of preparing a contract for private development with PPL for the allocation of the affordable housing trust fund dollars. The next steps in the financial assistance approval process would be as follows: 1. Negotiation of business terms for the provision of Affordable Housing Trust Fund dollars. 2. EDA/city council review of proposed business terms of the redevelopment contract. 3. EDA/city council consider approval of the contract for private development. Previous/future actions Governing body Date EDA approved a resolution of support for TIF assistance not to exceed $600,000 EDA July 6, 2020 EDA approved a resolution of support for AHTF assistance not to exceed $450,000 EDA April 2022 EDA received a report outlining PPL’s formal request for financial assistance EDA Jan 23, 2023 EDA/city council will receive a report outlining the business terms for the provision of AHTF assistance EDA February 2023 EDA/city council will consider the Contract for Private Development with PPL EDA/City council March 2023 Meeting: Study session Meeting date: January 23, 2023 Written report: 4 Executive summary Title: Dakota Park bridge improvements – project update (city project no. 2122-1806) – Ward 1 Recommended action: None at this time. This report is intended to provide an update and overview of the Dakota Park bridge improvement project prior to proceeding with public engagement. Policy consideration: Does the city council support staff presenting multiple options to the community for replacing the bridge in Dakota Park? Summary: The pedestrian bridge in Dakota Park has been programmed for replacement since 2018 after a formal bridge inspection recommended replacement due to the poor condition of the bridge and footings. The replacement of approximately 350 feet of sanitary sewer near the pedestrian bridge is also recommended to be completed to prevent sewer backups. Due to the proximity of these two projects, staff has combined them into one project. During the Nov. 14, 2022 council study session discussing the 2023 capital improvement plan and city budget, staff shared that inflation and material costs have increased the estimate to replace the bridge by $220,000. To cover the cost, staff recommended utilizing $110,000 in American Rescue Plan Act (ARPA) funds and storm utility funds for the remainder. The approved 2023 CIP included the updated funding. Council shared concerns regarding the increase in the bridge replacement cost estimate. To address these concerns, staff explored design options that would reduce the cost of the project while still providing the connection. This report provides information on these additional design options. Due to the concerns shared with staff regarding the increased cost for the bridge replacement, we are requesting council direction prior to starting community engagement for this project. Financial or budget considerations: This project is included in the city's capital improvement plan (CIP). The total cost for the project is estimated to be $961,500 and includes both bridge and sanitary sewer replacement. The project will be paid for using park improvement, ARPA, and utility funds. Detailed information on the estimate can be found in the discussion section of the report. 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 Exhibit A Prepared by: Jack Sullivan, engineering project manager Jason West, parks and recreation director Reviewed by: Debra Heiser, engineering director Approved by: Kim Keller, city manager Study session meeting of January 23, 2023 (Item No. 4) Page 2 Title: Dakota Park bridge improvements – project update (city project no. 2122-1806) Discussion Background The Dakota Park bridge improvement project includes: • replacement of the bridge that connects the playground to the dog park and spans over a stormwater retention area. • replacement of approximately 350 feet of sanitary sewer pipe that runs under the south softball field just north of the pedestrian bridge. These two improvements are combined into one project due to their proximity to each other and to limit the impact on the park and ballfields. See Exhibit A attached to this report for more information on the location of the work within Dakota Park. Additional information on each of the improvements can be found in the following discussion. Bridge replacement There is a pedestrian bridge that connects the Dakota Park playground to the dog park that spans over a stormwater retention area. This bridge is a 65-foot single-span pedestrian truss with a 6-foot walkway width (see Figure 1). The bridge was placed on a shallow timber abutment and it is unknown if there are any deeper foundations to support the bridge. The bridge was relocated from an unknown location in St. Louis Park and installed in Dakota Park sometime in the 1990s. Figure 1 - Existing bridge Bridge inspection The consultant firm of WSB & Associates, Inc. completed an inspection in 2016 that revealed deterioration of the steel truss and wood deck. They recommended continuing to monitor the bridge annually for deterioration and placing the bridge in the city’s capital improvement plan (CIP) for complete replacement. The initial cost estimates to replace the bridge were added to the city’s CIP in 2018 based on a feasibility report from WSB & Associates, Inc. The bridge was last inspected in the summer of 2021; there has not been a significant change in condition. However, due to the condition of the bridge and the foundation, they continue to recommend the replacement of the bridge as the deterioration of the main steel truss members is not repairable. Study session meeting of January 23, 2023 (Item No. 4) Page 3 Title: Dakota Park bridge improvements – project update (city project no. 2122-1806) On-going observations and repair The Parks and Recreation department makes regular checks of the wooden deck to ensure a safe traveling surface. They completed the most recent repairs to the deck in 2021 to create a safe walking surface and extend the life of the bridge deck. Due to the structural strength and narrow width of this bridge, it is challenging to clear snow from the bridge and maintain the same level of winter maintenance as the other trails within Dakota Park. Snow is removed by hand shoveling, which takes many staff hours. Bridge replacement schedule This bridge was initially planned to be replaced at the same time as the construction of the new Dakota-Edgewood Trail bridge that spans the BNSF Railroad. However, during project development, it was determined that park access and circulation would be negatively impacted if this bridge was under construction at the same time as the larger bridge over the BNSF railroad. Once construction of the Dakota-Edgewood Trail bridge was complete, staff started preliminary design to replace this bridge. It was during the preliminary design that public works staff requested the replacement of a sanitary sewer main near the pedestrian bridge. Sanitary sewer main replacement Public works determined that a 350-foot segment of sanitary sewer had sagged and required replacement. The current line requires weekly monitoring to ensure that flow is not backing up in the pipe. The line experiences backups about once a year that require jetting. If not addressed, a backup on the main could potentially result in a backup into the basements of homes that rely on this line for service. The sanitary sewer runs from the pedestrian bridge north under the west softball field to a larger main that runs between the west and east softball fields. See Exhibit A for the location of the sanitary sewer replacement. Combining the two improvements Due to their proximity, staff has combined the bridge and sanitary sewer replacement into one project to minimize disturbance to the park and provide some overall cost savings. The project is planned to start in August of 2023 after the summer softball season is complete. This will minimize impacts to the softball leagues that use the west field. Reconstruction of the sanitary sewer is anticipated to be completed in the fall of 2023 to allow time to reestablish the turf outfield. The bridge would be installed near the end of the sewer work. Dakota bridge replacement options Staff has evaluated three different design options for consideration. The three options are: no- build, timber boardwalk, and the prefabricated steel truss bridge. More information on each of these options can be found below. No-build With this option, the existing bridge would be removed entirely. The connection would be achieved by constructing a multi-use trail on the west side of the stormwater retention area south to 27th Street and then over to the existing trail on the east side of the stormwater retention area. The existing sidewalk along the south side of the park would be widened from 6 feet to 10 feet for consistency with the park trail network. The trail reroute would be designed to meet ADA requirements and is shown in Figure 2. This design would provide a similar trail connection without spanning the stormwater retention area. Study session meeting of January 23, 2023 (Item No. 4) Page 4 Title: Dakota Park bridge improvements – project update (city project no. 2122-1806) Figure 2 – No-build, trail reroute Timber boardwalk The existing bridge would be removed and replaced with a timber boardwalk that includes a timber deck and railing. This structure would be rated for 5 tons to allow snow removal machinery, such as a pickup truck, to remove the snow from the deck. An example of this type of structure is shown in Figures 3 and 4. This structure would have pier foundations at 20-foot intervals across the stormwater retention area. Figure 3 – Timber boardwalk with wood railing Study session meeting of January 23, 2023 (Item No. 4) Page 5 Title: Dakota Park bridge improvements – project update (city project no. 2122-1806) Figure 4 – Timber decking on boardwalk Prefabricated steel truss bridge This is the option that is included in the 2023 CIP. The existing bridge would be removed and replaced with a prefabricated steel truss bridge that includes a timber deck and metal railings. This would be a similar look to the existing bridge. This structure would be rated for 5 tons to allow snow removal machinery, such as a pickup truck, to remove the snow from the deck. An example of this type of structure is shown in Figure 5. Figure 5 – Prefabricated steel truss bridge with timber decking Study session meeting of January 23, 2023 (Item No. 4) Page 6 Title: Dakota Park bridge improvements – project update (city project no. 2122-1806) Financial or budget considerations Bridge replacement cost Since the initial feasibility report was completed in 2018, there has been additional information available that helped create an updated cost estimate. During the design and construction of the Dakota-Edgewood Trail bridge, soil borings were done, and the poor soils in the area require significant structural support. The need for deep foundations for this bridge were not included in the early feasibility estimates. In addition, the inflationary cost associated with steel, concrete and construction activities has created an increase in the cost estimate. Park and recreation staff is recommending that if a new bridge be built, that it be designed to allow for snow removal by a pickup plow truck to provide the same level of winter maintenance as the rest of Dakota Park. This requires a width of 10 feet and structural strength of at least 5 tons. Both the timber boardwalk and the prefabricated steel truss bridge can be expected to have a service life of 75 years with programmed maintenance. However, the city can also expect that they will require different maintenance intervals during their lifespan, with the boardwalk requiring more work than the steel truss bridge. Should council provide staff direction to move forward with including the steel truss option in community engagement, staff will conduct more specific forecasting as part of the technical anayisys. This deeper understanding of each structure’s maintenance costs would be a factor in the final staff recommendation. During the Nov. 14, 2022 council study session discussing the 2023 CIP and city budget, staff shared that inflation and material costs have increased the project estimate by $220,000. To cover the cost, staff recommended utilizing American Rescue Plan Act (ARPA) funds for $110,000 of this gap and storm utility funds for the remainder. The approved 2023 CIP included the updated funding. To address concerns about the cost of the steel truss bridge, staff began exploring design options that would reduce the project cost. To provide a year-round, maintainable system within the park, staff evaluated a no-build and a timber boardwalk design. The estimated costs for each design option can be found in the table below. The estimate from Nov. 14, 2022 was for the installation of a prefabricated steel truss bridge. Bridge design options Estimated installation cost No-build – remove the bridge and build a trail connection $192,100 Timber boardwalk $436,500 Prefabricated steel truss bridge $545,000 Sanitary sewer main replacement cost The cost to replace the sanitary sewer main is estimated to be $416,500. This is included in the CIP and will be paid for using sanitary sewer utility funds. This work is necessary and is recommended to be completed regardless of what bridge design option is chosen. Next Steps Due to the impacts to the west softball field, there is some coordination that is required to minimize the impacts of the sanitary sewer construction. Staff is recommending a decision on Study session meeting of January 23, 2023 (Item No. 4) Page 7 Title: Dakota Park bridge improvements – project update (city project no. 2122-1806) the bridge design occur yet this spring to provide enough time to coordinate schedules and to complete the project in 2023. Staff is requesting council direction prior to starting community engagement for this project. If the council has concerns with staff sharing the option in the CIP, due to cost, staff would remove it from consideration prior to sharing it with the community. Depending on the direction provided by council, staff would bring bridge options to community members in early February and then to the Parks and Recreation Advisory Commission at their February meeting. The feedback from these meetings would be summarized and a recommendation regarding which option to build would be provided to council for consideration. Exhibit A - Dakota Park Bridge Improvements GEORGIA AVE S26TH ST W 27TH ST WFLORIDA AVE SBRUNSWICK AVE SDAKOTAAVESCOLORADO AVE SEDGEWOOD AVE S0 500 1,000250 Feet 1/18/2023 Peter Hobart Elementary School Nelson Park Sanitary sewer work Dakota Park Bridge Nelson Park Dog Park East Field Keller Field West Field Study session meeting of January 23, 2023 (Item No. 4) Title: Dakota Park bridge improvements – project update (city project no. 2122-1806)Page 8 Meeting: Study session Meeting date: January 23, 2023 Written report: 5 Executive summary Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) Recommended action: Review proposed business terms for the EDA’s purchase and redevelopment contract with Wooddale Station LLC related to the proposed OlyHi development scheduled for formal consideration at the February 6, 2022, EDA meeting. Policy consideration: Are the proposed business terms for financial assistance for the OlyHi development (formerly named Wooddale Avenue Station) consistent with the EDA’s expectations and are they acceptable? Summary: Saturday Properties and Anderson Companies, collectively known as Wooddale Station LLC, (“Developers”) have a preliminary development agreement with the EDA and city for the SWLRT Wooddale Ave. Station site located at the northeast corner of Wooddale Ave. and 36th Street W. They also have a purchase agreement to acquire the neighboring property at 8502 36th St. W. Upon assembly, the proposed $105 million OlyHi development would include: • Two, six-story mixed-use, mixed income buildings with underground parking. • A total of 315 multi-family housing units including 252 market rate units and 63 affordable units. Specifically, 10% (32) of the units would be affordable to households at 50% AMI and 10% (31) of the units would be affordable to households at 60% AMI, exceeding the city’s inclusionary housing policy requirements. o 69 units would be marketed toward people aged 55 and over. • 12,000 SF of neighborhood commercial space (including a space for community gatherings). • Underground parking linking the two buildings. • A 17,000 SF public plaza adjacent to the Wooddale Ave. Station. Financial or budget considerations: The Developers would purchase the EDA property located at 5950 W 36th St. for $3 million. As noted in the November 22, 2021, EDA staff report, there are considerable extraordinary costs associated with the site and other costs associated with meeting city expectations and requirements. The Developers previously indicated that OlyHi’s financial proforma exhibited a gap preventing it from achieving a market rate of return sufficient to attract financing and applied to the EDA for tax increment financing (TIF) assistance. Upon examination of the project’s pro forma, the EDA’s financial consultant determined that up to $12.18 million in TIF assistance is warranted to enable the major transit- oriented development to proceed. It is estimated that the project’s TIF Note would be paid off in approximately 18.5 years. Such assistance would derive from the establishment of a new redevelopment TIF district and be provided via a pay-as-you-go TIF Note. 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, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director/EDA executive director Approved by: Kim Keller, city manager Study session meeting of January 23, 2023 (Item No. 5) Page 2 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) Discussion Site information: The proposed redevelopment site is located in the Elmwood neighborhood on the northeast corner of Wooddale Avenue South and 36th Street West. The site is immediately south of the METRO Green Line Extension/Southwest Light Rail (SWLRT) Wooddale Avenue Station. Two properties comprise the 3.26-acre site including: • 5802 36th Street W (owned by Standal Properties) • 5950 36th Street W (owned by the St. Louis Park Economic Development Authority) SWLRT Wooddale Avenue Station Redevelopment Site Background: A summary of all previous actions is provided in the following table. More specific details on the various actions are provided below the table. Action Date EDA conducted a formal Request for Proposals (RFP) for the SWLRT Wooddale Station Redevelopment Site August 2020 EDA selected Saturday Properties/Anderson Companies to develop the SWLRT Wooddale Station Redevelopment Site December 2020 EDA entered into a preliminary development agreement with Wooddale Station LLC (Saturday Properties/Anderson Companies) February 2021 EDA received a report outlining Wooddale Station LLC’s TIF application November 2021 Wooddale Station LLC secured a purchase agreement to acquire 5802 36th Street West November 2021 Wooddale Station LLC hired DJR architecture January 2022 Study session meeting of January 23, 2023 (Item No. 5) Page 3 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) The EDA and city approved the first amendment to the Preliminary Development Agreement March 2022 Wooddale Station LLC submitted planning applications for a preliminary and final plat and preliminary and final PUD for their proposed OlyHi development May 2022 Wooddale Station LLC received city council approval for the OlyHi development planning applications August 2022 Detailed summary of past actions: In August 2020, the EDA conducted a formal Request for Proposals (RFP) to solicit transit-oriented development proposals for the EDA-owned property at 5850 36th Street West. The RFP envisioned the site and station area to be an active, vibrant, and connected place where people can affordably live, work, and recreate with the opportunities and advantages of proximity to LRT. The site is expected to become an important community hub for mixed-income housing, neighborhood business, and transit including: • Affordable multifamily housing that exceeds the city’s Inclusionary Housing Policy requirements and facilitates multicultural and intergenerational living (i.e., includes larger size units). • Smaller scale, affordable, ground floor commercial spaces conducive for neighborhood businesses. • Attractive, bold and creative architecture. • Building and site designs that incorporate numerous “green” elements including renewable energy sources designed to achieve near net zero carbon emissions at the site and serve as a showcase for environmental sustainability. • Numerous accommodations for pedestrians, bicyclists, transit riders, and automobiles, including electric bikes, electric vehicles, and possibly car sharing. • A public plaza and community space with unique community landmark and features. • High quality site amenities and public art. • Connections to nature through green features such as enhanced landscaping, green roofs, or living wall systems. The EDA also sought a development proposal that seamlessly integrates with the adjacent SWLRT Wooddale Avenue Station and connects to the surrounding Elmwood neighborhood. At the December 14, 2020, study session, the EDA determined Saturday Properties/Anderson Companies’ (“Developers”) proposal most closely aligned with the city’s vision, development objectives and preferred programming for the site. Subsequently the EDA entered into a Preliminary Development Agreement with the Developers on February 16, 2021. The EDA received a staff report on November 22, 2021 outlining Wooddale Station LLC’s application for tax increment financing (TIF) and staff’s recommendation for $12.18 million in such assistance. The Developers then secured a purchase agreement for the adjacent 5802 36th Street West property and staff worked with consulting firm LHB to complete a blight analysis of the subject properties. Wooddale Station, LLC hired DJR Architecture in early 2022 to design the proposed buildings and site. DJR Architecture has worked extensively in St. Louis Park and were the architects for Study session meeting of January 23, 2023 (Item No. 5) Page 4 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) the Bridgewater Bank Corporate Center which was one of Finance and Commerce’s Top Projects in 2020, and Parkway 25 which is the city’s first and only LEED certified residential building. A first amendment to the preliminary development agreement was approved by the EDA in March 2022 allowing city staff and development team additional time to reach a mutually acceptable purchase and redevelopment agreement. City staff and the Developers have subsequently negotiated proposed business terms of this agreement which are provided later in this report. The Developers received city approvals for a preliminary and final plat and a preliminary and final PUD for the development in August 2022. In addition, the Developers have applied for and received grants totaling $2.5 million from a combination of various sources including DEED, the Metropolitan Council and Hennepin County. Present considerations: Wooddale Station, LLC proposes the “OlyHi” development at the SWLRT Wooddale Station site. The $105.3 million development includes: • Two, six-story mixed-use buildings with underground parking. • A total of 315 multi-family housing units including: o 252 market rate units o 63 affordable units. Specifically, 10% (32) of the units would be affordable to households at 50% AMI and 10% (31) of the units would be affordable to households at 60% AMI. This exceeds the requirements of the city’s inclusionary housing policy (as amended October 2021).  69 units would be marketed toward people aged 55 and over. • 12,000 SF of neighborhood commercial space all of which will be built out in advance to reduce upfront costs to small business tenants and at least one micro storefront (potentially more) which would cost less to rent given its size. • A ground floor community room available for neighborhood meetings. • A 17,000 SF public plaza adjacent to the Wooddale Ave. Station for public events, site amenities, and public art. • A sustainably constructed building, utilizing Enterprise Green Communities with the Minnesota Overlay as its design criteria, including 12,000 SF of solar photovoltaic panels on the roof. Study session meeting of January 23, 2023 (Item No. 5) Page 5 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) Rendering of proposed OlyHi Development The development will exceed the requirements of the city’s Green Building Policy (as amended July 2020) and the Developers will follow Enterprise Green Communities utilizing the Minnesota Overlay as its design criteria. The development will pursue goals to achieve energy efficiency within the building envelopes and increased indoor environmental quality to enhance occupant health and productivity. The buildings will also utilize green products and materials during product sourcing and manufacturing. Some specific strategies that will be utilized throughout the buildings include: • Stormwater improvements to the site. • 12,000 SF of solar photovoltaic panels to be installed on the roof. • The use of low flow plumbing fixtures in the residential units facilitated the goal of reaching 30% below the EPA Energy Policy Act of 1992. • Water reduction for landscaping irrigation. • Exterior bike racks as well as interior secured bicycle storage for the residents will be incorporated for improving connectivity to the community. • Low VOC materials following the South Coast Air Quality Management District standards, which is the most comprehensive and restrictive standards in the US. • To minimize building occupant exposure to potentially hazardous particulates and chemical pollutants, walk-off mats will be provided at the front and side entries on level 1 and all areas with potential hazardous exhaust are well ventilated (garages, laundry rooms, bathrooms etc.). • All residential and designated amenity areas will be designed to maximize the daylighting potential allowing for more than 75% daylight of fully occupied spaces. • The interior design will allow all occupied spaces to be located on the exterior wall with a window, while the bathrooms, closets and utility spaces are located along the interior central corridor. The use of an open floor plan in the unit design will facilitate the goal of providing views for 90% of the fully occupied spaces. The amenity spaces will be located along long expanses of glass to create a view through the building and a connection for the residents to the outdoor amenities. All commercial spaces will be provided with large window openings to allow view and daylight. Study session meeting of January 23, 2023 (Item No. 5) Page 6 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) • Separate chutes for collection of trash and recycling for each dwelling unit and shared community rooms will be incorporated into the design. • The project will be a smoke-free building. No smoking policy in all common and individual living areas and within a 25-foot perimeter around the exterior. • All insulation will be installed on top of the roof sheathing to keep moisture out of the roof truss cavities. • All rooftop parapet walls will be filled with closed cell spray foam insulation to prevent moisture and thermal issues at the roof connection. • LED lighting will be used at all locations throughout the building. As well as motion sensor lighting in all common area spaces. • Electric vehicle charging stations will be installed and the transformer sized for future increase in amount. OlyHi would be a single-phased residential development. Pending approval of its financing, the Developers plan to commence within 30 days of the Developer’s acquisition of the EDA property and will be substantially complete within 24 months following commencement. St. Louis Park based-Saturday Properties would own and manage the development for the long term. Developers’ request for tax increment financing assistance: There are considerable extraordinary costs associated with the subject redevelopment properties. Specifically, the two structurally substandard, 1950's era buildings on site (containing asbestos) need to be remediated and removed. Additionally, the site is environmentally challenged, requiring abatement and soil remediation with the removal of the contaminated soil off-site. These extraordinary redevelopment costs, along with the cost of structured parking, roof-top solar, a large public plaza adjacent to LRT, and 63 affordable housing units (with below market rents for 25 years) created a gap in the project’s proforma. The extent of these extraordinary costs adversely impacts the project’s pro forma to the point where it could not achieve a reasonable market rate of return to attract financing. To offset this gap, the Developers applied to the EDA for tax increment financing (TIF) assistance. The EDA received a staff report detailing the TIF Application at the November 22, 2021 study session along with a recommendation for an appropriate amount of financial assistance. Level and type of financial assistance: In summary, the Developers’ sources and uses statement, income and expense estimates, financing assumptions, cash flow projections, and investor rate of return (ROR) related to the proposed mixed use, mixed income development were reviewed by staff and Ehlers, the EDA’s financial consultant. Based upon its analysis of the Developers’ financial proforma, Ehlers determined the proposed development would not be reasonably expected to occur on the site but/for the provision of up to $12.18 million in tax increment assistance. This is a considerable financial request, yet the numerous public benefits achieved in return (consistent with the EDA’s original development objectives) far exceed what is required under city policies, including 63 affordable units, additional sustainability features and solar energy Study session meeting of January 23, 2023 (Item No. 5) Page 7 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) generation, affordable commercial space, as well as interior and exterior public community spaces and public art. Tax increment financing assistance: The TIF assistance would be committed to reimburse the Developers for a portion of its Public Redevelopment Costs (which include the costs of asbestos abatement, site demolition and clearance, soil remediation and disposal as well as construction of affordable housing). Upon completion of the building and verification of the Developers’ qualified Public Redevelopment Costs, tax increment generated from the increased value of the property would be provided to the Developers 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 18.5 years with increment generated by the development. This deviates from the preferred term of no more than 15 years under the TIF Policy, however, the increased development costs (such as construction materials and labor costs as well as higher interest rates) and the numerous public benefits garnered in return qualify as mitigating circumstances under which the preferred term can be exceeded. Proposed business terms: The following is a summary of the proposed key business terms between the EDA and Wooddale Station LLC (“Developers”), consistent with EDA Policy, best practices and previous discussions with the EDA/city council. The Redevelopment Property consists of the property shaded red in the aerial photo below. “Redevelopment Property” for proposed OlyHi development 1. The Developers agree to acquire the “Third-Party Property” located at 5802 36th Street West. Study session meeting of January 23, 2023 (Item No. 5) Page 8 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) 2. The EDA owns property required for the construction of the Minimum Improvements (“EDA Property”) and will convey title to and possession of the EDA Property to the Developers subject to the following: • The purchase price for the EDA Property shall be $3,000,000. • The EDA's obligation to convey the EDA Property to the Developers is subject to satisfaction of the following terms and conditions: o The Developers having closed on permanent financing at or before Closing on transfer of title to the EDA Property from the EDA to the Developers or having received a binding commitment from a lender to provide financing sufficient for construction of the Affordable Housing Minimum Improvements and the Development, or having otherwise provided the EDA with proof of funds available to finance construction of the Minimum Improvements of the Development. o The EDA having received Construction Plans for the Minimum Improvements that have been approved by the City, based on a determination of the EDA, all permits are ready to be issued, and all required City fees in connection therewith have been paid. o The Developers having approved the state of title to the EDA Property. o Closing shall occur within 30 days of satisfaction or waiver of the above conditions but no later than November 30, 2023, unless extended by agreement of the parties. o At Closing, the Developers agree to pay all outstanding property taxes, special assessments, and all outstanding administrative costs owed to the EDA. o The EDA Property will be sold to the Developers on an “As Is” basis. o The Developers acknowledge that the EDA makes no representations or warranties as to the condition of the soils on the Development Property or the fitness of the Development Property for construction of the Minimum Improvements. o The Agreement will include provisions relating to the indemnification of the City and the Authority relating to the environmental condition of the Property subject to final negotiation of such language with the Developer. 3. The Developers agree to construct a mixed-use, mixed-income, transit-oriented development on the Property with one building containing approximately 69 units of multifamily rental housing and approximately 12,000 square feet of ground floor commercial space, and a second building containing approximately 245 units of multifamily rental housing including 6 live/work units. 4. The EDA agrees to reimburse the Developers for a portion of its Public Redevelopment Costs (defined as the costs of site demolition and clearance, soil remediation and correction as well as construction of affordable housing) incurred during construction of the Development through tax increment financing (TIF) up to $12,180,000. 5. The EDA agrees to issue a tax increment revenue note (“TIF Note”) to the Developers in the maximum principal amount of $12,180,000 payable from available tax increment, Study session meeting of January 23, 2023 (Item No. 5) Page 9 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) generated by the Development on a “pay-as-you-go” basis, over a period of approximately 18.5 years. The TIF Note will bear interest at the lesser of 5% or Developers’ actual permanent financing interest rate. The TIF Note would not constitute a business subsidy because the Developers’ net costs of acquisition of and site improvements on the Redevelopment Property will meet the housing exception under Minnesota statutes. 6. In order to provide the tax increment to the Developers, the EDA agrees to establish a new redevelopment TIF district consisting of two parcels: 5802 36th Street West and 5950 36th Street West. 7. The EDA will issue the TIF Note to the Developers upon completion of the Minimum Improvements and Developers providing the EDA with a statement specifying the Public Redevelopment Costs incurred by the Developers related to the Development along with evidence that each identified Public Redevelopment Cost has been paid or incurred by the Developers. 8. The TIF assistance will be subject to a "look back" analysis to be performed by Ehlers, the EDA’s financial consultant. The look back provision ensures that if the Development’s total Public Redevelopment Costs are lower or if the project performs financially better upon stabilization than the Developers’ estimates, the EDA shares economically in the success of the project by reducing the amount of TIF assistance provided. 9. Construction of the Development is to commence within 30 days of the Developer’s acquisition of the EDA property and will be substantially complete within 24 months following commencement. 10. Developers will construct the Development as approved under the city’s PUD and maintain it in good condition until the Contract terminates. 11. Developers will comply with the city’s Inclusionary Housing Policy in effect at the time of its preliminary development agreement (February 16, 2021). Specifically, Developers agree to a 25-year covenant designating at least 63 units affordable as follows: 32 units reserved will be affordable to households at or below 50% AMI and 31 units affordable to households at or below 60% AMI. The distribution of the affordable units will be in each building, and there will be a variety of bedroom options: Study session meeting of January 23, 2023 (Item No. 5) Page 10 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) Affordability Type Summary Affordability Studio Alcove 1- BR 2- BR 3- BR 1BR Live / Work 2BR Live / Work Total East Building 60% AMI 3 6 9 3 2 0 1 24 50% AMI 3 6 9 4 2 1 0 25 Subtotal 6 12 18 7 4 1 1 49 West Building 60% AMI 0 0 2 5 0 0 0 7 50% AMI 0 0 2 5 0 0 0 7 Subtotal 0 0 4 10 0 0 0 14 Total 60% AMI 3 6 11 8 2 0 1 31 50% AMI 3 6 11 9 2 1 0 32 Total 6 12 12 17 4 1 1 63 12. Developers will use reasonable efforts to meet the following Minority or Women Business Enterprises (MWBE) goals and workforce participation goals of the city: Participation Goals Women BIPOC Business Enterprises 6% 13% Workforce 20% 32% Participation goals would be applied to the Developers’ redevelopment project as a whole and pertain to the total amount of construction and related contracts. The Developers would 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 MWBE about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide quarterly compliance report(s), all as more particularly set forth in the Contract. Failure to achieve these goals would not constitute a breach or default by the Developers. 13. Developers will comply with the City’s Green Building Policy in effect at the time of the Developers’ preliminary redevelopment agreement with the EDA (i.e., February 16, 2021). The Developers will follow Enterprise Green Communities utilizing the Minnesota Overlay as its design criteria. Among the sustainability features to be included are: a. Stormwater improvements to the site. b. 12,000 SF of solar photovoltaic panels to be installed on the roof. c. The use of low flow plumbing fixtures in the residential units facilitated the goal of reaching 30% below the EPA Energy Policy Act of 1992. d. Water reduction for landscaping irrigation. e. Exterior bike racks as well as interior secured bicycle storage for the residents will be incorporated for improving connectivity to the community. f. Low VOC materials following the South Coast Air Quality Management District standards, which is the most comprehensive and restrictive standards in the US. g. To minimize building occupant exposure to potentially hazardous particulates and chemical pollutants, walk-off mats will be provided at the front and side Study session meeting of January 23, 2023 (Item No. 5) Page 11 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) entries on level 1 and all areas with potential hazardous exhaust are well ventilated (garages, laundry rooms, bathrooms etc.). h. All residential and designated amenity areas will be designed to maximize the daylighting potential allowing for more than 75% daylight of fully occupied spaces. i. The interior design will allow all occupied spaces to be located on the exterior wall with a window, while the bathrooms, closets and utility spaces are located along the interior central corridor. The use of an open floor plan in the unit design will facilitate the goal of providing views for 90% of the fully occupied spaces. The amenity spaces will be located along long expanses of glass to create a view through the building and a connection for the residents to the outdoor amenities. All commercial spaces will be provided with large window openings to allow view and daylight. j. Separate chutes for collection of trash and recycling for each dwelling unit and shared community rooms will be incorporated into the design. k. The project will be a smoke-free building. No smoking policy in all common and individual living areas and within a 25-foot perimeter around the exterior. l. All insulation will be installed on top of the roof sheathing to keep moisture out of the roof truss cavities. m. All rooftop parapet walls will be filled with closed cell spray foam insulation to prevent moisture and thermal issues at the roof connection. n. Rooftop solar array of approximately 12,000 square feet. o. LED lighting will be used at all locations throughout the building. As well as motion sensor lighting in all common area spaces. p. Sustainable features required under the City’s Planning Development Contract. Electric vehicle charging stations will be installed and the transformer sized for future increase in amount. 14. Developers will retain a management company with experience in the management of multifamily rental housing developments. Developers will retain Saturday Properties as their property management company. 15. Developers will comply with the city’s Planning Development Contract and install all improvements thereunder. 16. Developers will provide a minimum of one micro storefronts (defined as a commercial space a maximum of 1,500 square feet in size only for a small local business) and will make best faith efforts to include two addition micro storefronts within the Development’s commercial space. 17. Developers will provide a ground-floor community room in the West Building to be made available for community meetings/gatherings for at least the term of the TIF District. 18. Developers will provide a total of approximately 408 parking spaces (360 reserved for residential units and 48 reserved for commercial spaces) in accordance with the approved construction plans with the city. Study session meeting of January 23, 2023 (Item No. 5) Page 12 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) 19. Developers agree to participate in the city’s Special Service District No. 6 and become subject to special service charges levied on the commercial properties within the Minimum Improvements (based on amount of commercial front footage). 20. The Agreement will include language requiring the Developer to indemnify the Authority for any costs or claims for benefits or payments under Minn. Stat. Sections 117.50 to 117.56 arising out of the relocation or displacement of any person as a result of the implementation of the Agreement subject to final negotiation of such language with the Developer. 21. Developers and EDA mutually agree to enter into a Minimum Market Value Assessment Agreement setting a minimum property tax value for the Development. 22. Developers agree to not discriminate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the Development Property or Minimum Improvements. 23. Developers agree to certify that the Minimum Improvements have been constructed in accordance with the Purchase and Redevelopment Contract and all applicable local, state, and federal laws and regulations (including but not limited to environmental, zoning, building code, fair labor laws, and public health laws and regulations). Additionally, all costs related to the Minimum Improvements and the development of the Redevelopment Property, including payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the Developers’ request for the Certificate of Completion and written lien waivers have been provided from each contractor for all work done and for all materials furnished by it for construction or installation of the Minimum Improvements. 24. Developers agree to pay reasonable administrative costs incurred by the EDA, including consultant and attorney fees, in connection with the Development. 25. If Developers default under the Contract, the EDA may (among other things) terminate the TIF Note and the Contract. 26. The Contract and TIF Note will terminate upon the earliest of the final payment of principal and interest on the TIF Note, the required decertification of the TIF District, or an uncured Event of Default under the Contract. The above terms will serve as the basis for, and will be incorporated into, a purchase and redevelopment contract with the Developers. 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 will be available for review in the community development department. Next steps: Staff will work with the EDA’s legal counsel and Wooddale Station LLC to finalize the formal purchase and redevelopment contract based on the proposed business terms and any Study session meeting of January 23, 2023 (Item No. 5) Page 13 Title: Business terms – purchase and redevelopment contract for OlyHi development (Ward 2) input received by the EDA. Formal consideration of the proposed purchase and redevelopment contract is anticipated in March 2023. Previous/future actions Governing body Date Resolution approving the development’s conformance with the general plans for the city Planning Commission Nov. 16, 2022 Public hearing and Purchase Agreement between EDA and Wooddale Station LLC for the OlyHi Development EDA March 2023 Approval of Purchase Agreement and Redevelopment Contract EDA March 2023 Approval of Purchase Agreement and Redevelopment Contract (consent) City Council March 2023