HomeMy WebLinkAbout2023/04/24 - ADMIN - Agenda Packets - City Council - Study Session
AGENDA
APRIL 24, 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.
6:00 p.m. 2023 St. Louis Park Local Board of Appeal and equalization – council chambers
Action items
1. 60 min. Reconvene the St. Louis Park Local Board of Appeal and Equalization
6:30 p.m. City council study session – council chambers
Discussion items
1. 60 min. Metro Green Line extension light rail construction overview and update
2. 15 min. Tenant protection ordinance
Written reports
3. Quarterly development update – 2nd quarter 2023
4. Quarterly investment report – 1st quarter 2023
The agenda is posted 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 on the city’s website after noon on the Friday before the meeting.
If you need special accommodations or have questions about the meeting, please call 952.924.2505.
Meeting: Local Board of Appeal and Equalization
Meeting date: April 24, 2023
Action agenda item: 1
2023 Local Board of Appeal and Equalization
Reconvene – April 24, 2023
Proposed agenda:
1.Reconvene the St. Louis Park Local Board of Appeal and Equalization
2.Roll Call – declaration of quorum
3.Acknowledgement of trained members (Nadia Mohamed & Sue Budd)
4.Review of properties in appeal
A. Board Action - Appellant & Assessing staff are Not in Agreement
B. Board Action – Appellant has requested referral to the County Board
C. Board Action – Appellant has refused inspection, withdrawn or not responded
D. Board Action - Appellant & Assessing staff are in Mutual Agreement
For appeals in groups a-b-c, it is suggested that the board review each parcel
individually, discuss, and make individual board rulings. For the mutual agreement
category, each parcel should be read into the record and the board may take one group
action per DOR direction (April 2016).
5.Instruct assessor to complete record of changes for submittal
6.Instruct assessor to inform appellants of board action via mail
7.Complete the Local Board of Appeal and Equalization Certification Form
8.Adjourn (if Board business is completed)
Local Board of Appeal and Equalization Meeting of April 24, 2023 (Item No. 1) Page 2
Title: 2023 Local Board of Appeal and Equalization
Background for the 2023 St. Louis Park Local Board of Appeal and Equalization
All property owners are entitled to the right of appeal regarding their classification and market
value. The City is required by statute to conduct a Local Board of Appeal & Equalization
meeting to hear appeals or conduct an open book meeting. Owner options also include the
County Board of Appeal & Equalization and ultimately the Minnesota State Tax Court.
The focus for the board is: the property classification which is determined by use; and the
market value which is based on the characteristics of the real estate and market conditions as
of the date of the assessment (January 2, 2023). Minnesota statute requires all properties to be
assessed at full market value, fee simple. The dominant definitions of market value are :
MN Statute 272.03 – “Market value” means the usual selling price at the place where
the property to which the term is applied shall be at the time of assessment; being the
price which could be obtained at a private sale or an auction sale, if it is dete rmined by
the assessor that the price from the auction sale represents an arm’s length transaction.
The price obtained at a forced sale shall not be considered.
Appraisal Institute – The most probable price, as of a specified date, in cash or in terms
equivalent to cash, or in other precisely revealed terms, for which the specified property
rights should sell after reasonable exposure in a competitive market under all conditions
requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably,
and for self-interest, and assuming that neither is under undue duress. (The Appraisal of
Real Estate, 13th Edition, Appraisal Institute [2008], page 23)
The Board convened on April 10, 2023, at which meeting a total of thirty-nine (39) parcels were
recognized to be under appeal. The Board set the process and scheduled the reconvene
meeting as April 24 to review the merit of each appeal and to rule on them.
A few housekeeping observations are made for the reference of the board.
• One trained and certified Board member (Mohamed and/or Budd) must be present at
each meeting the Board is in session. Best practice is for multiple trained members.
• Timeline of the assessment: All valuations are set as of January 2, 2023, relative to
market activity in the preceding year. Value influences due to changing conditions have
been reviewed from the perspective of market reactions in setting the assessment.
• The time window for the board to conclude business is 20 days after convening.
• It is essential that the Board rules on each question before it and likewise that the Board
recognizes that it can reduce, sustain, or increase valuations as deemed necessary.
Local Board of Appeal and Equalization Meeting of April 24, 2023 (Item No. 1) Page 3
Title: 2023 Local Board of Appeal and Equalization
•Important – DOR directive: “It is the board’s responsibility to hear all appeals presented
until the board adjourns. A property owner can present their appeal at the initial
meeting or at any of the reconvene meetings. The board must hear that appeal and
make a decision. The board cannot dismiss the property owner’s appeal unless the
meeting is adjourned.” The Hennepin County Assessor has reviewed that language and
requested that Local Boards accept appeals until final adjournment. We are doing so.
•At the writing of this Board packet, staff has added eight (8) additional appeals to the
roster and endeavored to respond in a timely fashion.
•Prior to adjourning, the board should instruct the assessor to submit a record of their
actions on the Department of Revenue required form.
•Finally, the Local Board of Appeal Certification Form must be signed at each Board
meeting by all Board members present. The Hennepin delegate takes care of this item.
Background to Valuation Methodologies: The modeling associated with the mass assessment
accommodates variations between neighborhoods, within neighborhoods and includes
consideration of location, age, style, size, finish materials, condition, updating, etc. depending
on the information available. Adjustments and valuation change orders have been made where
necessary during the informal review process prior to the Board.
The Board process differs from mass valuation modeling in that the assessing staff re -appraises
the subject property individually by direct comparison to market t ransactions. As part of the
review process, staff routinely re-inspects properties to review the accuracy of attributes and
especially current condition which is a highly important variable. Next steps are staff engaging
the property owner in a candid conversation of the property value, local transactions and how
the transactions provide a fact-based market indication of the subject property value.
If staff believes a reduction is warranted, this is disclosed to the owner in an attempt to
mutually resolve the valuation question. Likewise, if staff conclude that the valuation is at-
market or slightly below, we inform the owner/appellant and discuss the market information.
In cases where staff revaluation does not result in a conclusion satisfactory to the appellant, the
board process is outlined. Additional questions are very common for those owners who desire
to appear before the Board. As such, the Local Board depends on active participation from all
parties involved including the property owner, assessing staff and the board members. All
property owners are requested to state their basis of appeal, their opinion of the market value
and informed that they may present information in written form and by testimony supporting
their opinion of value and/or classification.
Local Board of Appeal and Equalization Meeting of April 24, 2023 (Item No. 1) Page 4
Title: 2023 Local Board of Appeal and Equalization
Focal Points for the Board – Agenda as indicated on cover sheet, decisions on:
A.Board action – As of April 19 when this packet is being prepared, ALL open appeals are
within categories B-C-D. Rationale for that statement is dictated by timing for
inspection, file work-up and active engagement with the appellant. Should this status
change between now and the time for reconvene, it will be requested that the Board
hear and decide the merits of the case. As always, we inform the owner that the Board
allows 5-10 minutes for their presentation followed by a 3–5-minute presentation by the
assessing staff. The Board may adjust these time allowances as needed.
B. Board action – there are three (3) appeals where owners have either started their
appeal quite late or have indicated preference to resolve the question at the county
board level. These are a mixture of scheduling conflicts and timeline to arrange the
inspection/re-valuation work-up. We therefore request that the board acknowledge
each property as being on the roster record to preserve their right and eligibility to
move onward to the County Board.
C.Board action – there are four (4) appeals where the appellant has refused inspection
access, are non-responsive to repeated communication attempts or has chosen to
withdraw their appeal. The Board is reminded that some cases end up in this category
almost every year. We also remind the board that you may not make a value or
classification change that would benefit the property owner where the owner has
refused inspection access. We again ask that each property is acknowledged as being
on the roster record and thus eligible to move onward to the County Board.
D.Board action – Forty (40) appeals have been reviewed with the property owner and
assessing staff reaching a mutually acceptable valuation (no classifications were
appealed). It is requested that assessing staff read each parcel action into the meeting
record after which the Board may take one group action to affirm the mutually agreed
upon valuations.
Per the DOR direction to accept appeals made after the notification date which has been
published and posted per legal requirements, they are highlighted in yellow on the reconvene
roster. Should there be additional late appeals in the time between this board packet and the
date of reconvene, we will be requesting their addition to the roster with proviso that we may
not have completed the review due to time constraints.
Following your decision, each property owner will be notified via letter of the Board action and
to remind them that they are eligible to appeal to the County Board. The Hennepin County
Board of Appeal and Equalization begins June 12, 2023. An application is requested by the
County no later than May 17th. To appear before the County Board, all appellants must firs t
have appealed to the St. Louis Park Board of Appeal and Equalization. Property owners may
also appeal directly to the Minnesota State Tax Court.
Prepared by: St. Louis Park Assessing staff
Local Board of Appeal and Equalization Meeting of April 24, 2023 (Item No. 1) Page 5
Title: 2023 Local Board of Appeal and Equalization
Tab Summary
Background & Focal Points for the Board
Tab 1: Roster of All Appeals for Board Action – At Time of Packet Assembly
(the final roster update will be handed out to the Board at the meeting)
Appeals requested AFTER the April 10 Convene was recessed Reference 2023 Appealed Assessing Owner Board
Name Property Address Property ID #2022 Value Classification 2023 Value Revaluation Indicated Action
Xuan Vu & Minh Nguyen 3213 Cavell La 18-117-21-24-0012 $422,000 R-Residential $445,500 Sustain To CBAE
Tovah Pentelovitch 4110 Basswood Rd 31-029-24-14-0015 $965,900 R-Residential $1,014,100 TBD
Jeff and Paula Wieckert 2600 Joppa Ave S 31-029-24-42-0068 $521,300 R-Residential $534,800 TBD
Ladd Leighton 4153 Toledo Ave S 07-028-24-32-0074 $308,000 R-Residential $309,000 Sustain Withdraw
James Malisow 2819 Aquila Ave S 07-117-21-43-0038 $551,900 R-Residential $582,200 Sustain Withdraw
Patricia Olin 2920 Zarthan Ave S 09-117-21-34-0180 $266,600 R-Residential $267,100 Sustain Withdraw
Ethel Reinharz 4061 Alabama Ave S 21-117-21-32-0129 $303,800 R-Residential $304,600 Inspect?Withdraw
Artemis Living-1345 Idaho, LLC -Tony Carlson (own1345 Idaho Ave S 05-117-21-42-0032 $1,544,000 A-Apartment $1,620,000 $1,544,000 Mutually Agreed
Stony Curtis LLC - Tony Bergamino (owner)4101 31st St W 06-028-24-11-0060 $3,236,000 A-Apartment $3,250,000 $3,236,000 Mutually Agreed
Allison & Judson Ballentine 3125 Inglewood Ave S #103 06-028-24-11-0075 $489,700 X-Condominium $511,700 $475,000 Mutually Agreed
Parkway Flats LLC - Ron Novak (rep)3915 31st St W 06-028-24-11-0115 $564,000 A-Apartment $1,560,000 $1,440,000 Mutually Agreed
David Rokhinson 4625 Minnetonka Blvd #304 06-028-24-12-0129 $152,800 X-Condominium $184,800 $170,000 Mutually Agreed
Jeremy Mickesh 4414 36th St W 06-028-24-42-0007 $515,900 DB-Double Bungalow $535,400 $500,000 Mutually Agreed
James Mickesh/ JM Home Restoration LLC 4410 36th St W 06-028-24-42-0008 $518,200 DB-Double Bungalow $537,800 $490,000 Mutually Agreed
Linda Macloud 4525 Park Commons Dr #412 06-028-24-43-0247 $373,800 X-Condominium $398,400 $375,000 Mutually Agreed
Slava Slobodyanyuk& Yana Roytburg 3755 Inglewood Ave S 06-028-24-44-0104 $544,700 R-Residential $534,500 $440,000 Mutually Agreed
Joseph Oslund 3715 Joppa Ave S 06-028-24-44-0136 $601,000 DB-Double Bungalow $623,700 $605,900 Mutually Agreed
Camille & William Thomas 4730 Park Commons Dr #131 07-028-24-21-0274 $779,100 X-Condominium $779,700 $754,200 Mutually Agreed
Dale Sopkowiak 3985 Wooddale Ave 07-028-24-23-0012 $408,800 R-Residential $421,000 $400,000 Mutually Agreed
Joshua Susser 4121 Ottawa Ave S 07-028-24-24-0104 $896,300 R-Residential $941,000 $930,000 Mutually Agreed
Susan & Maxwell Fry 4206 Princeton Ave S 07-028-24-31-0060 $785,600 R-Residential $824,800 $742,000 Mutually Agreed
Patricia & Jeffrey Strickler 4912 Morningside Rd 07-028-24-31-0131 $449,100 R-Residential $460,400 $432,000 Mutually Agreed
Stephen Raymer 4805 42 1/2 St W 07-028-24-31-0147 $389,000 R-Residential $403,600 $367,000 Mutually Agreed
Brandon Lippold & Brittany Blackwelder 5220 Morningside Rd 07-028-24-32-0152 $497,700 R-Residential $499,000 $437,500 Mutually Agreed
Brent Lamar 2061 Utah Ave S 07-117-21-11-0018 $468,200 R-Residential $491,500 $440,000 Mutually Agreed
Ben Oeth 2037 Utah Drive 07-117-21-11-0022 $458,500 R-Residential $444,100 $407,000 Mutually Agreed
Renee Quinn 9221 22nd St W 07-117-21-22-0013 $389,900 R-Residential $413,700 $393,700 Mutually Agreed
Richard Thomson & Saissy Gomez Thomson 9344 28th St W 07-117-21-33-0050 $987,400 R-Residential $982,700 $950,000 Mutually Agreed
Virginia Sathe 2900 Cavell Ave S 07-117-21-34-0026 $693,400 R-Residential $764,600 $690,000 Mutually Agreed
Martin Bell Properties LLC 2211 Florida Ave S 08-117-21-14-0053 $213,000 I - Industrial $434,000 $393,000 Mutually Agreed
Walter Macewicz 2200 Nevada Ave S #322 08-117-21-21-0332 $139,300 X-Condominium $168,300 $153,000 Mutually Agreed
Graham Smith 2315 Rhode Island Ave 08-117-21-23-0056 $426,900 R-Residential $437,600 $430,000 Mutually Agreed
John Larsen 2753 Idaho Ave S 08-117-21-42-0134 $478,500 R-Residential $513,800 $492,200 Mutually Agreed
Scott Johnson 2805 Edgewood Ave S 08-117-21-44-0135 $283,000 R-Residential $344,900 $300,000 Mutually Agreed
Mikhail Dvorkin 462 Ford Rd #205B 01-117-22-12-0396 $399,600 X - Condominium $463,800 $399,600 Mutually Agreed
Martha Elstrom/POA Amy Bergquist 3316 Yosemite Ave S 16-117-21-24-0128 $271,400 R-Residential $275,300 $200,000 Mutually Agreed
Kathryn Hogg 3640 Wooddale Ave #313 16-117-21-34-0269 $240,100 X-Condominium $243,600 $201,200 Mutually Agreed
Juan A Carrizales Jr 3624 Pennsylvania Ave S 17-117-21-33-0064 $379,900 R-Residential $385,000 $340,000 Mutually Agreed
Mark Saba 3337 Republic Ave 17-117-21-42-0062 $297,000 I-Industrial $350,000 $290,000 Mutually Agreed
Brady DeVore 4101 Xenwood Ave S 21-117-21-31-0192 $363,200 R-Residential $364,000 $337,000 Mutually Agreed
Todd & Anne Jutting 4262 Yosemite Ave S 21-117-21-34-0094 $441,500 R-Residential $403,000 $265,000 Mutually Agreed
Roster - City of St. Louis Park Local Board of Appeal & Equalization - Reconvene April 24, 2023
Local Board of Appeal and Equalization Meeting of April 24, 2023 Title: 2023 Local Board of Appeal and Equalization Reconvene 6
Roger Sexton 4454 Cedar Lake Rd #1 30-029-24-43-0586 $170,000 X-Condominium $175,700 $170,000 Mutually Agreed
Linda Maach 2537 Monterey Ave S 31-029-24-13-0079 $700,900 R-Residential $735,900 $725,000 Mutually Agreed
Mohamed Armeli 2715 Salem Ave S 31-029-24-32-0143 $411,500 R-Residential $400,100 $375,000 Mutually Agreed
Slava Slobodyanyuk& Yana Roytburg 2919 Ottawa Ave S 31-029-24-34-0085 $839,900 R-Residential $856,200 $835,000 Mutually Agreed
Kerry Gershone 2732 Lynn Ave S 31-029-24-42-0018 $669,500 R-Residential $702,900 $664,000 Mutually Agreed
Andres Larsen & William Youmans 2831 Huntington Ave S 31-029-24-44-0104 $753,600 R-Residential $745,200 $690,000 Mutually Agreed
Local Board of Appeal and Equalization Meeting of April 24, 2023 Title: 2023 Local Board of Appeal and Equalization Reconvene 7
Meeting: Study session
Meeting date: April 24, 2023
Discussion item: 1
Executive summary
Title: Metro Green Line extension light rail construction overview and update
Recommended action: No action necessary at this time.
Policy consideration: None at this time.
Summary: Metropolitan Council’s Metro Green Line Extension team last presented to the city
in March of 2022. This has become an annual presentation to recap the progress of the past
construction season, provide an update on the work in the upcoming year and share
engagement opportunities with our community. The following is the update for 2023.
•Construction activities continued throughout the winter months and favorable weather
conditions have allowed construction activities to shift to underground and road
reconstruction at Beltline Boulevard and near the Louisiana Avenue station area. More
information on construction activities will be shared by Metropolitan Council staff.
•Segments of the Cedar Lake Regional Trail have been opened to trail users. Additional
segments are expected to open in the next few years, and information can be found on
the attached map.
•With the new construction season comes the opportunity to engage with the project
team for a virtual town hall on April 26 and walking tours later in May. The Metro Green
Line Extension will be introducing new staff members who will lead the public
engagement efforts within St. Louis Park, including the outreach coordinator for
questions from the community.
Additional information on Metro Green Line Extension can be found at www.greenlineext.org.
Anyone can sign up to receive weekly construction updates on this site. The 24-hour hotline
number to call for construction-related issues is 612.373.3933.
Financial or budget considerations: There are no new financial or budget considerations. The
city has already contributed a total of $5.61 million to the project.
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: Construction activities map and regional trail map
Prepared by: Jack Sullivan, engineering project manager
Sean Walther, planning manager /deputy CD director
Reviewed by: Deb Heiser, engineering director
Approved by: Kim Keller, city manager
11
St. Louis Park –
Louisiana Avenue
area to Beltline
Boulevard Station
Construction
Activities - 2023
City council study session of April 24, 2023 (Item 1)
Title: Metro Green Line extension light rail construction overview and update 2
14
*Based on Civil construction substantial completion dates. SPO will work with the contractor to improve on these
opening dates, where possible. See GreenLineExt.org for detour routes.
Trails: Anticipated Reopening
Minnesota River Bluffs Trail –
2023*
Minnesota River Bluffs Trail –
11 th Ave to Depot
South Cedar Lake Trail –2024*
Kenilworth Trail –
2025*
South Cedar Lake Trail –
2025*
Kenilworth Trail –
spring 2023 -2025*Cedar Lake Trail –2025*
Luce Line Trail –2025*
Cedar Lake Trail –2025*
Currently open
Currently open –temporary condition
Currently closed –Opening 2023-2025
South Cedar Lake Trail –summer 2023*
Opus Area Trails
(south of map) –
summer 2023*
N
City council study session of April 24, 2023 (Item 1)
Title: Metro Green Line extension light rail construction overview and update 3
Meeting: Study session
Meeting date: April 24, 2023
Discussion item: 2
Executive summary
Title: Tenant protection ordinance
Recommended action: None at this time. The purpose of this study session item is to review
the existing tenant protection ordinance which is set to expire July 1, 2023.
Policy consideration:
1. Does the council continue to support having a tenant protection ordinance?
2. If yes, does the council wish adopt the staff recommendations to:
a. Eliminate an expiration date in the ordinance?
b. Adopt a formula to determine relocation benefit amounts in place of a set
amount?
Summary: The city council adopted a tenant protection ordinance in 2018. The tenant
protection ordinance requires a three-month period following the ownership transfer of a
NOAH multifamily residential property during which the new owner would be required to pay
relocation benefits to tenants in affordable housing units if the rent is increased or existing
residents are rescreened and the tenant chooses to move as a result, or non-renewals are
implemented without cause. Under the current ordinance, NOAH properties are defined as
buildings where at least 18% of the units have rents affordable to households with incomes at
or below 60% Area Medium Income (AMI).
The ordinance does not prohibit a new owner from taking the management actions listed
above; however, the owner would be required to provi de resident relocation benefits if they do
take any of those actions during the tenant protection period.
18 NOAH properties have been required to comply with the tenant protection ordinance
between 2018 and 2022.
The current ordinance took effect July 1, 2018 and is set to expire July 1, 2023.
Financial or budget considerations: Staff time required to implement the ordinance, monitor,
and enforce compliance.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
Draft updated ordinance
Prepared by: Marney Olson, housing supervisor
Reviewed by: Karen Barton, community development director
Approved by: Kim Keller, city manager
Study session meeting of April 24, 2023 (Item No. 2) Page 2
Title: Tenant protection ordinance
Discussion
Background: The city council adopted a tenant protection ordinance in 2018. The tenant
protection ordinance requires a three-month period following the ownership transfer of a
NOAH multifamily residential property during which the new owner would be required to pay
relocation benefits to tenants in affordable housing units if the rent is increased or existing
residents are rescreened and the tenant chooses to move as a result, or non-renewals are
implemented without cause. NOAH properties are defined as buildings where at least 18% of
the units have rents affordable to households with incomes at or below 60% Area Medium
Income (AMI) to match the inclusionary housing policy affordability requirements at the ti me
the policy was adopted.
The ordinance does not prohibit a new owner from taking the management actions listed
above; however, the owner would be required to provide resident relocation benefits if they do
take any of those actions during the tenant protection period. The three-month protection
period provides a period for residents to work with housing support resources and seek
alternative housing if they are facing unaffordable rent increases, new screening criteria
requirements that would be problematic for them, or a 30-day non-renewal notice to vacate
without cause. The ordinance requires the new owner of a NOAH building to provide notice of
the ordinance protections to tenants of affordable housing units within 30 days of the sale of
the building. The three-month tenant protection period begins once the notice has been given
to the tenants.
Present considerations
Staff created a tenant protection packet that is given to multifamily property owners when they
apply for a point-of-sale inspection. The tenant protection packet helps owners and property
managers understand the ordinance and includes: the ordinance, frequently asked questions,
draft tenant notices, resources for tenants, and the current affordable rent table updated
annually. Housing staff reach out to multifamily property owners and managers that apply for
the point-of-sale inspection permit to determine if the sale is required to comply with the
ordinance. If the property is required to comply, housing staff work with the buyers to ensure
compliance.
Number of NOAH properties required to comply with the tenant protection ordinance:
• 9 in 2018
• 3 in 2019
• 2 in 2020
• 2 in 2021
• 2 in 2022
Relocation benefits
To date all properties required to comply with the tenant protection ordinance have provided
the required three-month notice and have not paid relocation benefits. Relocation benefits are
calculated using the Federal Highway Administration uniform relocation assistance rates and
two months’ rent at 60% AMI. The ordinance adopted in 2018 included the dollar amount of
relocation benefits based on this calculation. Staff recommend updating the ordinance to
include the formula instead of a dollar amount, so the relocation costs reflect the current rent
and uniform relocation assistance rates adjusted annually. The uniform relocation assistance
Study session meeting of April 24, 2023 (Item No. 2) Page 3
Title: Tenant protection ordinance
rates provided by the Federal Highway Administration have not changed since 2018; however,
the 60% AMI rents change annually. The chart below shows the current relocation benefit
amount in the ordinance vs. the relocation benefit amount using the formula and the current
rents at 60% AMI. Typically, the rents increase annually which would result in an increase in the
relocation amount annually.
Studio One bedroom Two bedrooms Three bedrooms
Current relocation
benefit in ordinance
$2,600 $3,000 $3,600 $4,100
Current relocation
benefits using formula
$3,200 $3,600 $4,300 $5,000
Next steps: Given the proven effectiveness of this ordinance to date, staff is recommending the
ordinance be amended to remove any expiration date and clarify language related to the
relocation assistance payment calculation, as detailed in the attached amended ordina nce.
The timeline listed below is the proposed schedule to ensure the updated ordinance takes
effect the date the existing ordinance is set to expire.
Previous/future actions Date
First reading of ordinance May 15, 2023
Second reading of ordinance June 5, 2023
Date of publication June 15, 2023
Date ordinance takes effect July 1, 2023
Study session meeting of April 24, 2023 (Item No. 2) Page 4
Title: Tenant protection ordinance
Ordinance No. ______-23
Ordinance amending St. Louis Park City Code Section 8-334
related to affordable housing
THE CITY OF ST. LOUIS PARK DOES ORDAIN:
SECTION 1. St. Louis Park City Code Section 8-334 is hereby amended by as follows by adding
underlined language and deleting stricken language:
Sec. 8-334. Sale of affordable housing building
(a) Definitions. The following definitions apply in this section of this code. References to
“section” are unless otherwise specified, references to this section of this code. Defined
terms remain defined terms, whether capitalized or not.
(1) Affordable housing building means a multifamily rental housing building having three
or more housing units, where at least 18% of the units rent for an amount that is
affordable to households at or below 60 percent of area median income, as median
income was most recently determined by the United States Department of Housing
and Urban Development for the Minneapolis-St. Paul-Bloomington, Minnesota-
Wisconsin Metropolitan Statistical Area, as adjusted for household size and number of
bedrooms.
(2) Affordable housing unit means a rental unit in an affordable housing building that rents
for an amount that is affordable to households at or below 60 percent of area median
income, as median income was most recently determined by the United States
Department of Housing and Urban Development for the Minneapolis-St. Paul-
Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for
household size and number of bedrooms.
(3) Cause means the tenant, or a member of the tenant’s household materially violated a
term of the lease. or violated a provision of the City’s Rental Housing Ordinance, City
Code Section 8-331 Crime Free/Drug Free and Disorderly Use Lease Requirements .
(4) Tenant protection period means the period that commences on the date when a real
estate closing transfers ownership of an affordable housing building and runs through
the end of the 3 calendar months following the month in which written notice of the
transfer is sent to each affordable housing unit tenant pursuant to subpart (c) of this
section.
(5) Relocation assistance payment means a payment calculated by the city as follows: The
Federal Highway Administration uniform relocation assistance rate and two months’
rent at 60% area median income. The relocation assistance payment amount will be
reviewed and updated annually by the city.
(b) Relocation Assistance
Study session meeting of April 24, 2023 (Item No. 2) Page 5
Title: Tenant protection ordinance
(1) If during the tenant protection period the new owner of an affordable housing building
terminates or refuses to renew any affordable housing unit tenant’s rental agreement
without cause, then upon terminating or refusing to renew the tenant’s lease, the ne w
owner shall pay to the tenant, as relocation assistance, no later than the day upon
which the tenant vacates the unit, a relocation assistance payment calculated by the
city per this ordinance. in the amount as follows: $2,600 for a studio or single room
occupancy dwelling unit, $3,000 for a one-bedroom dwelling unit, $3,600 for a two-
bedroom dwelling unit, and $4,100 for a three-bedroom or larger dwelling unit.
(2) During the tenant protection period if a rent increase goes into effect on any affordable
housing unit, or the new owner of an affordable housing building raises any affordable
housing unit tenant’s rent, or rescreens an existing affordable housing unit te nant, and
the tenant gives written notice to the new owner to terminate the rental agreement,
the new owner, shall within 30 days of receiving tenant’s written notice of termination
of the rental agreement, pay to the tenant as relocation assistance, a relocation
assistance payment in the amount calculated by the city per this ordinance. as follows:
$2,600 for a studio or single room occupancy dwelling unit, $3,000 for a one -bedroom
dwelling unit, $3,600 for a two-bedroom dwelling unit, and $4,100 for a three-bedroom
or larger dwelling unit.
(c) Notice. Whenever ownership of an affordable housing building shall transfer, the new
owner shall, within thirty (30) days of the date on which a real estate closing transfers
ownership of the affordable housing building, give written notice to each affordable housing
unit tenant of the building that the property is under new ownership stating:
(1) The name, mailing address, and telephone number of the new owner.
(2) St. Louis Park City Code Section 8-334 provides for a tenant protection period for
affordable housing unit tenants. Under Section 8 -334, affordable housing unit tenants
may be entitled to a relocation assistance payment from the new owner if the new
owner terminates or does not renew the tenant’s rental agreement without cause
within the tenant protection period. Affordable housing unit tenants may also be
entitled to relocation assistance payment from the new owner if the owner raises the
rent or initiates a tenant rescreening process within the tenant protection period and
the tenant terminates their rental agreement.
(3) Whether there will be any rent increase within the tenant protection period with the
amount of the rent increase and the date the rent increase will take effect.
(4) Whether the new owner will require existing affordable housing unit tenants to be re-
screened to determine compliance with existing or modified residency screening
criteria during the tenant protection period and if so, a copy of the screening criteria.
(5) Whether the new owner will terminate or not renew rental agreements without cause
during the tenant protection period and if so, notice to the affected affordable housing
unit tenants whose rental agreements will terminate and the date the rental
agreements will terminate.
(6) Whether the new owner intends to increase rent, require existing affordable housing
unit tenants to be rescreened to determine compliance with existing or modified
Study session meeting of April 24, 2023 (Item No. 2) Page 6
Title: Tenant protection ordinance
residency screening criteria, or terminate or not renew affordable housing unit rental
agreements without cause on the day immediately following the tenant protection
period.
The new owner shall provide a copy of the notice required by this part to the city at the same
time notice is provided to the tenants. The new owner of an affordable housing building shall
not terminate or not renew a tenant’s rental agreement without cause, raise rent, or rescreen
existing tenants during the tenant protection period without giving the notice required by this
part.
(d) Penalty.
(1) A violation of subpart (b) of this section is an administrative offense that may be
subject to an administrative citation and civil penalties as provided in City Code Section
1-14. Notwithstanding any provision of City Code Section 1-14, the penalty for a
violation of subpart (b) of this section shall be the sum of the applicable amount of
relocation assistance plus $500.
(2) A violation of subpart (c) of this section is an administrative offense that may be
subject to an administrative citation and civil penalties as provided in City Code Se ction
1-14.
(3) A violation of this ordinance as to each dwelling unit shall constitute a separate
offense.
(e) Within thirty (30) days after a person pays the penalty provided for in subpart (d) (1) of this
section to the city, the city shall pay to the displaced tenant of the affordable housing unit
for which the violation occurred an amount equal to the relocation assistance provided for
in subpart (b) of this section.
SECTION 3. This ordinance shall take effect July 1, 2023.
First Reading May 15, 2023
Second Reading June 5, 2023
Date of Publication June 15, 2023
Date Ordinance takes effect July 1, 2023
Reviewed for administration: Adopted by the city council (insert date)
Kim Keller, city manager Jake Spano, mayor
Attest: Approved as to form and execution:
Melissa Kennedy, city clerk Soren Mattick, city attorney
Meeting: Study session
Meeting date: April 24, 2023
Written report: 3
Executive summary
Title: Quarterly development update – 2nd Quarter 2023
Recommended action: None. The attached report summarizes the status of major
development projects constructed in St. Louis Park.
Policy consideration: Not applicable. Contact staff with any questions.
Summary: The attached report is provided on a quarterly basis to inform the EDA/city council
as to the metrics and tentative schedule of major development projects to be constructed 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 that 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 major 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.
Additionally, recent developments receiving financial assistance from the city are required to
track Diversity, Equity, and Inclusion (DEI) goals related to business enterprises and workforce
hiring goals. A summary of the various hiring goals and the current goal status for each
development is also provided in the update.
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: Discussion of DEI report and goal summary
Major developments in St. Louis Park – 2nd 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 April 24, 2023 (Item No. 3) Page 2
Title: Quarterly development update – 2nd Quarter 2023
Discussion
Background
In January 2023, the city adopted a Diversity, Equity, and Inclusion Policy to promote the hiring
of women and BIPOC/AAPI individuals and businesses in conjunction with city supported
developments to enable them to build wealth. The policy provides specific goals for the hiring
of women and BIPOC/AAPI business organizations, business enterprises, workforce, and
peripheral enterprises for all new and renovated commercial and multifamily residential
buildings receiving financial assistance from the EDA/city.
Present considerations
The policy does not apply to any current developments; however, prior to the policy’s formal
adoption, several developers agreed to provide data on the hiring of women and BIPOC
businesses enterprises within their developments. Below is a summary of bidding efforts,
highlights, and a table outlining the hiring goals as reported by the various contractors for
Corsa, Rise on 7, Arbor House, and The Mera.
Corsa: Opus Group’s Corsa (formerly Beltline Residences) is anticipated to be complete in
October 2023. Opus Group operates their own construction team and directly hires
subcontractors. To date, 98% of the building’s Business Enterprise contracts have been
awarded, and they have nearly doubled their goal for the hiring of women -owned businesses
(11.43%). However, it is unlikely that they will be able to meet hiring goals for BIPOC/AAPI
business enterprises. Their goal was 13% hiring of BIPOC/AAPI business enterprises, but they
have only hired 2.72% despite efforts to hire out smaller jobs as much as possible . They note
that a large portion of BIPOC/AAPI firms are working on the Highland Bridge site in St. Paul and
do not have capacity to bid on additional jobs.
Rise on 7: CommonBond Communities’ Rise on 7 development started construction in August
2022. CommonBond hired Frana as the building contractor. Frana is responsible for soliciting
bids and hiring subcontractors. They use multiple sources when advertising bids for upcoming
jobs and operate an FTP Site that is fully open to the public. In addition, they solicit bids from
an extensive list of woman and BIPOC/AAPI owned businesses via Building Connected. Frana
also advertises jobs through trade shows, union advertisements, AWC network, Spokesmen
Recorder, Asian Press, & Finance & Commerce. To date, 2% of business enterprises awarded
contracts are women-owned and they have not hired any BIPOC/AAPI-owned business
enterprises.
Arbor House: Construction commenced on Arbor House in September and framing has begun.
Real Estate Equities has contracted with Big-D Construction Midwest as the primary contractor.
Big D solicited bids from 29 women-owned enterprises and bids were received from 13 of those
companies. They are currently exceeding their goal for woman-owned businesses with 7% of
contracts awarded to woman-owned businesses, however this accounts for only 0.5% of the
project’s development dollars. Bids were solicited to 16 BIPOC/AAPI-owned businesses
enterprises and 5 bids were received. To date, 2% of project contracts and 0.6% of project costs
have been awarded to BIPOC/AAPI. The primary reasons for disqualification for women or
BIPOC/AAPI-business enterprises was non-competitive pricing and lack of experience with the
type of construction.
Study session meeting of April 24, 2023 (Item No. 3) Page 3
Title: Quarterly development update – 2nd Quarter 2023
The Mera: Bigos LLC started construction on The Mera in September 2022, and Big-D
Construction is the project’s contractor. Big-D held an open house at city hall to solicit
construction bids for sub -contractors, with targeted outreach to women and BIPOC/AAPI
businesses enterprises. Thus far, Big-D has awarded 35% of contracts and 7.61% of project costs
to women-owned enterprises but have not awarded any contracts to BIPOC/AAPI business
enterprises.
Race/ethnicity is self-reported by individual workers. Due to the current census options, many
Latinos (Hispanic, Latinx, Latine) are limited in how they best describe their racial identities.
The reported workforce data may not fully capture the BIPOC/AAPI workforce information
accurately. For instance, we know that there are many Hispanic/Latinx workers in the
construction field, specifically subcontractors who install gypcrete, and they may not identify as
a person of color.
Therefore, it is likely that the BIPOC/AAPI workforce data is under-reported. Staff will work with
the developers and their contractors to better explain the statistical purpose of these reports
and strive to achieve more accurate data in the future.
Next steps
Staff will continue to provide quarterly updates regarding DEI goals with the quarterly
development update report.
Diversity, Equity, and Inclusion Hiring Goals
Through April 1, 2023
Corsa
(Beltline Residences)
Opus
Rise on 7
CommonBond
Arbor House
Real Estate
Equities
The Mera
(9920 Wayzata)
Bigos LLC
QUARTERLY COMPLINANCE SUMMARY ACTUAL GOALS ACTUAL GOALS ACTUAL GOALS ACTUAL GOALS
Total number of business enterprises
contracted in development 38 41 46 17
Percentage of women-owned business
enterprises in development 11.43% 6% 2% 6% 7% 6% 35% 6%
Percentage of BIPOC/AAPI owned business
enterprises in development 2.72% 13% 0% 13% 2% 13% 0% 13%
Percentage of total development dollars
paid to women-owned business
enterprises in development
-- NA 0.14% 6% 0.5% 6% 7.61% 6%
Percentage of total development dollars
paid to BIPOC/AAPI owned business
enterprises in development
-- NA 0.00% 13% 0.6% 13% 0.00% 13%
Total number of construction workers
contracted in development NA NA 206 126 259
Percentage of women workforce in
development -- NA 1% 6% 3% 6% 5% 6%
Percentage of BIPOC/AAPI workforce* in
development -- NA 6% 32% 11% 32% 3% 32%
Percentage of total construction hours for
women workforce in development 5% 20% 0.11% 6% 8.61% 6% 3.26% 6%
Percentage of total construction hours for
BIPOC/AAPI workforce* in development 17% 32% 0.00% 32% 8.86% 32% 1.29% 32%
*The BIPOC/AAPI workforce demographic data is self-reported, and likely does not fully capture Hispanic/Latinx individuals.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 4
Major Developments in St. Louis Park
2nd Quarter 2023
Multifamily housing development summary Total Market rate Affordable
Proposed units 8 0 8
Approved units 950 745 205
Units under construction 1,423 915 508
Recently completed units (last two years) 536 476 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.
Applying for pre-
development grant
funding from Met.
Council April 2023.
Project plans could
be presented to
council by Q4
2023.
Construction
commencement
Q3, 2024 upon
GMHC securing
LIHTC financing.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 5
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
TBD.
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 April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 6
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 Q2 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 April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 7
Approved developments
Project, location &
developer Project Description Tentative
Schedule
OlyHi
Wooddale Ave Station
redevelopment site
5950 W. 36th St.
& 5802 36th St.
Saturday Properties
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.
•West building
o 69 units
o 12,000 SF of ground floor commercial space.
o 3,500 SF of community space.
•East building
o 246 units
•252 market rate units.
•32 units affordable to households @ 50% AMI.
•31 units affordable to households @ 60% AMI.
•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 Q2,
2023.
Construction
commencement
Q3, 2023.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 8
Approved developments
Project, location &
developer Project Description Tentative
Schedule
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
Q2, 2023.
Construction
commencement
Q3, 2023 upon city
AHTF approvals.
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.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 9
Under construction
Project, location &
developer Project Description Tentative
Schedule
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
and anticipated to
be completed
November 2023.
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.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 10
Under construction
Project, location &
developer Project Description Tentative
Schedule
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.
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.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 11
Under construction
Project, location &
developer Project Description Tentative
Schedule
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 III: Eleven-story, 73-unit apartment building.
Estimated development cost: $36.2 million
Estimated total development cost (all phases): $91.4 million
Phase III
commencement
anticipated spring
2024.
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.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 12
Under construction
Project, location &
developer Project Description Tentative
Schedule
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.
Construction is
anticipated to be
complete October
2023.
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.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 13
Under construction
Project, location &
developer Project Description Tentative
Schedule
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. 20% (23) of the units would be
affordable to households at 50% AMI.
Estimated total development cost: $26.6 million
Certificate of
Occupancy issued
for 11 townhome
units November
2022.
Temporary
Certificate of
Occupancy issued
March 2023.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 14
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 April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 15
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
Phase II: Parkway Commons: Four-story, 37-unit apartment
building.
Estimated development cost: $14.6 million
Parkway Place &
rehab completed
April 30, 2022.
Parkway Flats
completed
October 2022.
Parkway Commons
completed
March 2023.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 16
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 April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 17
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.
Study session meeting of April 24, 2023 (Item No. 3)
Title: Quarterly development update - 2nd quarter 2023 18
Meeting: Study session
Meeting date: April 24, 2023
Written report: 4
Executive summary
Title: Quarterly investment report – 1st quarter 2023
Recommended action: No action required at this time.
Policy consideration: None at this time. The city’s financial management policies require
quarterly reporting on the city’s investment portfolio.
Summary: The quarterly investment report provides an overview of the city’s investment
portfolio, including the types of investments held, length of maturity and yield.
Financial or budget considerations: The total portfolio value on March 31, 2023, is
$81,234,674.35. Approximately $45 million of the portfolio is invested in securities that include
certificates of deposit, U.S. Treasury notes, federal agency bonds and municipal debt securities
with maturity dates ranging from less than a year up to 6 years. The remainder of the portfolio
is invested in money market accounts so that cash is available for capital project expenditures,
debt service and operating cashflow needs between property tax settlements, as well as future
investment opportunities. Interest rates on both the money market accounts and new
securities purchased increased again in the fourth quarter. The overall yield to maturity of the
portfolio is 3.08% compared to 2.88% last quarter and .52% at the end of 2021.
Strategic priority consideration: Not applicable.
Supporting documents: Discussion
Investment Portfolio Summary
Prepared by: John Cooper, accountant
Reviewed by: Cheyenne Brodeen, administrative services director
Approved by: Kim Keller, city manager
Study session meeting of April 24, 2023 (Item No. 4) Page 2
Title: Quarterly investment report (Jan – Mar 2023)
Discussion
Background: The city’s investment portfolio is focused on cash flow needs and investment in
longer term securities in accordance with Minnesota Statute 118A and the city’s investment
policy objectives of: 1) preservation of capital; 2) liquidity; and 3) return on investment.
Present considerations: The total portfolio value decreased by $17.4 million to $81.2 million
between December 31st, 2022, and March 31st, 2023. The decrease is due to cash being
utilized to service payments due on February 1, 2023.
Interest rates continued to increase in the 1st quarter. The overall yield to maturity of the
portfolio is 3.08% up from 2.88% on December 31st, 2022, and .52% at the end of 2021. This is
the combined yield including both liquid funds held in money market accounts and long-term
investments. Interest rates on money markets were near zero at the end of 2021 but are now
over 3%. The two-year Treasury, a benchmark used by cities for yield comparison of their
portfolio, has gone from .73% on December 31, 2021, to 4.06% on March 31st, 2023. As
securities mature in the portfolio and are replaced with new investments, we anticipate the
yield to maturity will continue to increase.
The money market accounts ensure there is cash available to fund payroll, operating and
capital project expenses and debt service payments between the June/July and December
property tax settlements, as well as one-time cash requirements such as the loan to STEP and
the purchase of the commercial building at 4300 36 ½ Street earlier this year. It also makes cash
available for buying new investments in the higher interest rate environment. Approximately
$619,000 in Treasury notes and CD’s will mature by the end of the 1st quarter.
A breakdown of the portfolio on March 31st, 2023, compared to December 31st, 2022 is shown
below and in more detail in the 2023 Investment Portfolio Summary.
12/31/2022 3/31/2023
<1 Year 69% 58%
1-2 Years 12% 15%
2-3 Years 12% 12%
3-4 Years 3% 7%
>4 Years 5% 7%
12/31/2022 3/31/2023
Money markets/cash $ 54,342,843.00 $ 36,314,155.02
Commercial paper/other $ 4,395,152.00 $ 820.31
Certificates of deposit $ 2,688,763.00 $ 11,094,930.55
Municipal debt $ 9,730,674.00 $ 12,019,170.60
Agencies/treasuries $ 26,298,679.00 $ 21,805,597.87
Next steps: None at this time.
Institution Investment Description
UBS
Classification Rating CUSIP
Yield to
Maturity Par Value
Purchase
Price
Purchase
Date Maturity
3/31/2023
Market Value
4M Liquid Asset Money Market N/A MM - N/A
4.683%7,418,936.23
4MP Liquid Asset Money Market N/A MM - N/A 4.686%28,593,154.46
4M E911 (required) Money Market N/A MM - N/A 4.686%83,575.30
4M Opiode Settlement Money Market N/A MM - N/A 4.686%64,890.60
4M Bridgewalk Money Market N/A MM - N/A 4.686%18,287.89
4M Freddie Mac N/A Aaa/AA+ 3137EAEY1 4.440% 1,000,000 958,472 10/18/2022 10/16/2023 975,363.89
4M Term Series N/A 4.600% 5,000,000 5,000,000 11/17/2022 11/30/2023 5,000,000.00
4M US Treasury N/A Aaa/AA+ 91282CDV0 4.440% 1,000,000 955,938 10/18/2022 01/31/2024 968,398.00
4M US Treasury N/A Aaa/AA+ 912828X70 4.434% 1,000,000 964,258 10/18/2022 04/30/2024 972,383.00 4M US Treasury N/A Aaa/AA+912828Y87 4.440% 1,000,000 954,961 10/18/2022 07/31/2024 965,469.00
4M US Treasury N/A Aaa/AA+ 91282CDB4 4.350% 1,000,000 929,648 10/18/2022 10/15/2024 945,391.00
4M Total 46,005,849.37
UBS (clearing acct) Cash and Money Balances MM - N/A 0.01%820.31$
UBS Cash Alternatives UBS SELECT TREASURY -$
820.31
UBS US Treasury Government Securities Aaa/AA+ 912828R69 2.53% 1,000,000 967,997 03/06/2019 5/31/2023 994,960.00$
UBS US Treasury Government Securities Aaa/AA+ 912828R69 1.83% 350,000 347,361 06/07/2019 5/31/2023 348,236.00$
UBS San Jose CA Txbl GO Municipal Securities Aa1/AA+ 798135H51 2.13% 650,000 654,310 07/25/2019 9/1/2023 642,869.50$
UBS US Treasury Government Securities Aaa/AA+ 912828T91 1.55% 75,000 69,179 09/11/2019 10/31/2023 73,675.50$
UBS US Treasury Government Securities Aaa/AA+ 912828T91 1.48% 450,000 455,704 10/04/2019 10/31/2023 442,053.00$
UBS Westminster Colo Pub Schools Municipal Securities Aa2 960666AC9 2.60% 840,000 811,576 05/04/2022 12/1/2023 815,455.20$
UBS FHLB Government Securities Aaa/AA+ 3130AFW94 2.58% 500,000 498,230 02/15/2019 2/13/2024 490,275.00$
UBS US Treasury Government Securities Aaa/AA+ 912828XX3 1.55% 600,000 616,347 11/06/2019 6/30/2024 1,018,458.00$
UBS US Treasury Government Securities Aaa/AA+ 912828XX3 1.66% 1,600,000 1,637,739 12/05/2019 6/30/2024 1,115,454.00$
UBS US Treasury Government Securities Aaa/AA+ 912828XX3 1.66% 1,150,000 1,167,378 01/07/2020 6/30/2024 1,115,454.00$
UBS US Treasury Government Securities Aaa/AA+ 912828XX3 1.36% 350,000 360,233 02/07/2020 6/30/2024 339,486.00$
UBS US Treasury Government Securities Aaa/AA+ 912828XX3 0.85% 260,000 273,608 03/06/2020 6/30/2024 252,189.60$
UBS US Treasury Government Securities Aaa/AA+ 912828XX3 0.41% 475,000 497,745 08/16/2021 6/30/2024 460,731.00$
UBS FHLB Government Securities Aaa/AA+ 3130AGWK7 1.55% 175,000 174,589 08/16/2019 8/15/2024 167,917.75$
UBS US Treasury Government Securities Aaa/AA+ 91282CCT6 0.41% 850,000 849,401 09/03/2021 8/15/2024 804,780.00$
UBS CD _ ZIONS BANCORP UT US CDs and Share Certificates CD - N/A 98970LC43 5.40% 190,000 190,000 3/24/2023 9/27/2024 191,007.00$
UBS US Treasury Government Securities Aaa/AA+ 912828YY0 0.32% 1,900,000 2,008,249 01/19/2021 12/31/2024 1,821,929.00$
UBS CD - INB NATL ASSN SPRI IL US RT 04.5500% MCDs and Share Certificates CD - N/A 44989FAB5 4.56% 244,000 244,000 12/21/2022 1/6/2025 242,201.72$
UBS Fannie Mae Government Securities Aaa/AA+ 3135G0X24 1.69% 650,000 647,927 01/10/2020 1/7/2025 621,075.00$
UBS CD - Texas Exchg Bank CDs and Share Certificates CD - N/A 88241TNG1 1.35% 245,000 245,000 02/04/2022 2/4/2025 229,386.15$
UBS Freddie Mac Government Securities Aaa/AA+ 3137EAEP0 1.52% 750,000 749,423 02/14/2020 2/12/2025 713,580.00$
UBS CD - Amer Express Natl UT CDs and Share Certificates CD - N/A 02589ABM3 1.80% 245,000 245,000 2/24/2022 3/3/2025 230,880.65$
UBS New York St Urban Dev Bds Municipal Securities Aa2 64985TAZ4 1.90% 300,000 304,931 02/18/2022 3/15/2025 286,248.00$
UBS S. Washington Co Sch Dist Municipal Securities Aa2 840610QK8 3.25% 375,000 402,690 05/23/2022 6/1/2025 377,291.25$
UBS US Treasury Government Securities Aaa/AA+ 912828ZW3 0.58% 725,000 715,092 3/4/2020 6/30/2025 667,768.50$
UBS US Treasury Government Securities Aaa/AA+ 912828ZW3 0.39% 3,300,000 3,280,324 01/19/2021 6/30/2025 3,039,498.00$
UBS US Treasury Government Securities Aaa/AA+ 912828ZW3 0.36% 150,000 149,311 02/05/2021 6/30/2025 138,159.00$
UBS US Treasury Government Securities Aaa/AA+ 912828ZW3 0.72% 575,000 564,237 04/05/2021 6/30/2025 529,609.50$
UBS Univ of Calif Gen Rev Bds Municipal Securities Aa2/AA 91412GU94 2.51% 600,000 614,674 03/25/2022 7/1/2025 584,946.00$
UBS New York City Trans Fin Auth Bds Municipal Securities Aa1/AAA 64971X5L8 3.42% 240,000 237,991 05/18/2022 8/1/2025 203,275.80$
UBS New York City Trans Fin Auth Bds Municipal Securities Aa1/AAA 64971X5L9 3.42% 240,000 237,991 05/18/2022 8/1/2025 28,923.00$
UBS S. Washington Co Sch Dist Municipal Securities Aa2 840610QK8 3.29% 250,000 267,633 05/02/2022 10/1/2025 251,527.50$
UBS CA St Univ Bds Municipal Securities Aa2/AA- 13077DQD7 1.51% 750,000 733,732 01/27/2022 11/1/2025 688,590.00$
UBS Nassau Cnty NY Interim Fin Auth Municipal Securities Aaa/AA+ 631663RF0 4.62% 140,000 127,754 05/18/2022 11/15/2025 127,022.00$
UBS US Treasury Government Securities Aaa/AA+ 91282CBC4 0.75% 725,000 713,684 05/06/2021 12/31/2025 660,315.50$
UBS US Treasury Government Securities Aaa/AA+ 91282CBC4 0.70% 750,000 740,212 06/07/2021 12/31/2025 683,085.00$
UBS US Treasury Government Securities Aaa/AA+ 91282CBC4 0.82% 350,000 343,148 07/07/2021 12/31/2025 318,773.00$
UBS US Treasury Government Securities Aaa/AA+ 91282CBC4 0.57% 700,000 694,296 08/05/2021 12/31/2025 637,546.00$
UBS CD - SALLIE MAE BANK UT US RT 04.4000% MACDs and Share Certificates CD - N/A 795451CR2 4.40% 244,000 244,000 01/12/2023 1/20/2026 240,759.68$
UBS CD - CITY NATL BK CA US RT 04.3500% MAT 01CDs and Share Certificates CD - N/A 178180GW9 4.35% 244,000 244,000 01/12/2023 1/26/2026 240,430.28$
UBS CD - CDG Community Bank CDs and Share Certificates CD - N/A 12527CFL1 3.80% 245,000 245,000 08/11/2022 3/11/2026 237,701.45$
UBS CD - Goldman Sachs Bank UT CDs and Share Certificates CD - N/A 38149M3C5 2.00% 245,000 245,000 03/16/2022 3/16/2026 225,456.35$
UBS CD - Comenity Bank DE CDs and Share Certificates CD - N/A 981993FX1 2.00% 200,000 200,000 03/18/2022 3/18/2026 181,444.00$
UBS New York NY City Transit Municipal Securities Aa1/AAA 64971XSW9 4.70% 200,000 178,784 12/20/2022 5/1/2026 181,674.00$
UBS New York NY City Transit Municipal Securities Aa1/AAA 64971XSW9 4.64% 195,000 174,630 12/20/2022 5/1/2026 177,132.15$
UBS CD - Capital One Bank CDs and Share Certificates CD - N/A 14042RQZ7 3.00% 245,000 245,000 05/04/2022 5/4/2026 231,765.10$
UBS CD - Capital One Bank CDs and Share Certificates CD - N/A 14042TFV4 3.00% 245,000 245,000 05/04/2022 5/4/2026 231,765.10$
UBS CD - National Bank, WI CDs and Share Certificates CD - N/A 633368GC3 3.10% 245,000 245,000 06/03/2022 6/3/2026 232,059.10$
UBS Massachusetts Tax RV Municipal Securities Aa2/AA+ 231237R34 1.26% 200,000 176,984 12/29/2022 8/1/2026 180,084.00$
UBS Massachusetts St Sch Bldg Bds Municipal Securities Aa2/AA+ 576000ZF3 3.00% 700,000 648,763 04/18/2022 8/15/2026 629,258.00$
UBS Massachusetts St Sch Bldg Bds Municipal Securities Aa2/AA+ 576000ZF3 3.46% 350,000 321,095 07/19/2022 8/15/2026 314,629.00$
UBS DISTRICT COLUMBIA WTR & TAX RV BE/R/ Municipal Securities Aa2/AA+ 254845RB8 4.21% 245,000 135,601 01/17/2023 10/1/2026 134,200.40$
UBS LAKE CO IL CONS S/D # 50 Municipal Securities Aa2/AA+ 508624LP6 4.64% 110,000 95,966 12/20/2022 11/1/2026 125,510.85$
UBS NEW YORK NY CITY TRANSI Municipal Securities Aa1/AAA 64971XMF2 4.63% 135,000 124,037 12/20/2022 11/1/2026 98,032.00$
UBS NASSAU CNTY NY INTERIM TAX SR B RV BE/R Municipal Securities AAA 631663RG8 0.95% 1,190,000 1,034,114 1/5/2023 11/15/2026 1,048,330.50$
UBS North Dakota Pub Fin Auth Municipal Securities Aa2/AA 65887PWD3 1.35% 500,000 505,685 12/22/2021 12/1/2026 457,360.00$
UBS CD - M&T TR CO BUFFALO NY US RT 04.0000%CDs and Share Certificates CD - N/A 564759RS9 4.00% 245,000 245,000 01/17/2023 1/20/2027 237,294.75$
UBS CD - State Bank of Indi NY CDs and Share Certificates CD - N/A 856285E98 1.75% 245,000 245,000 1/20/2022 2/1/2027 218,152.90$
UBS CD - Beal Bank Planto TX CDs and Share Certificates CD - N/A 07371AYL1 1.85% 245,000 245,000 02/23/2022 2/17/2027 218,655.15$
UBS CD - Beal Bank NV CDs and Share Certificates CD - N/A 07371CG37 1.85% 245,000 245,000 02/23/2022 2/17/2027 218,655.15$
UBS CD - BERGEN CNTY NJ IMPT AUT TAX RV BE/RMunicipal Securities Aaa 083774MK2 4.01% 445,000 409,579 01/20/2023 2/17/2027 403,339.10$
UBS CD - Medallion Bk UT CDs and Share Certificates CD - N/A 58404DNF4 2.00% 245,000 245,000 03/08/2022 3/8/2027 219,463.65$
UBS New York City Trans Fin Auth Bds Municipal Securities Aa1/AAA 64971XLS5 3.63% 160,000 149,998 05/20/2022 5/1/2027 146,774.40$
UBS NEW CASTLE CNTY DE FOR I Municipal Securities Aaa/AAA 64327TJT6 4.05% 170,000 151,623 1/31/2023 7/15/2027 150,293.60$
UBS NEW YORK NY CITY TRANSI Municipal Securities Aa1/AAA 64971XD39 4.70% 225,000 194,243 12/27/2022 8/1/2027 199,523.25$
UBS La Habra CA Pension Oblig Bds Municipal Securities AA+ 503433AF1 1.90% 500,000 505,570 01/26/2022 8/1/2027 449,590.00$
UBS Alabama Fed Aid Hwy Municipal Securities Aa2/AAA 010268CP3 1.50% 700,000 701,933 10/21/2021 9/1/2027 621,999.00$
UBS Connecticut St Health Auth Bds Municipal Securities Aa3/AA 20775DLB6 2.16% 500,000 489,249 03/04/2022 11/1/2027 442,470.00$
UBS New York Taxable GO Bnds Municipal Securities Aa2/AA 64966ML31 2.23% 400,000 436,201 02/18/2022 12/1/2027 389,088.00$
UBS LAKE CNTY IL CMNTY CONS Municipal Securities AA+ 508759KL0 4.77% 115,000 108,705 12/20/2022 1/1/2028 111,251.00$
UBS LAKE ZURICH IL Municipal Securities AAA 511444RK9 4.79% 140,000 128,444 12/20/2022 2/1/2028 131,461.40$
UBS CD -NYS EMPIRE DEV CORP TAX RV BE/R/ Municipal Securities Aa1 6500358R2 4.21% 465,000 456,746 01/25/2023 3/15/2028 444,795.75$
UBS NEW YORK NY CITY TRANSI Municipal Securities Aa1/AAA 64971XSY5 4.77% 410,000 348,209 12/22/2022 5/1/2028 355,605.30$
UBS Sequoia Cal UHSD Municipal Securities Aa1 817409N68 2.28% 315,000 273,070 12/29/2022 7/1/2028 282,142.35$
UBS WEST HARTFORD CT TAX BE/R/Municipal Securities Aaa/AAA 953107AG4 4.60% 190,000 161,773 01/04/2023 7/1/2028 163,280.30$
UBS San Ramon Valley CA Uni Tax Municipal Securities Aa1/AA+ 7994082H1 1.69% 500,000 499,360 11/03/2021 8/1/2028 436,390.00$
UBS New York City Trans Fin Auth Bds Municipal Securities Aa1/AAA 64971XD47 1.95% 500,000 490,541 01/14/2022 8/1/2028 430,605.00$
UBS WHEATON IL CORP PURP Municipal Securities AAA 962727PB3 2.07% 140,000 117,573 12/20/2022 12/1/2028 121,235.80$
UBS NEW YORK ST URBAN DEV CO Municipal Securities AA+ 64985TDF5 4.21% 150,000 125,684 12/30/2022 3/15/2029 129,768.00$
UBS ARIZONA ST TRANSN BRD TAX RV BE/R/ Municipal Securities Aa1 040654XZ3 4.20% 585,000 527,061 01/13/2023 7/1/2029 526,307.25$
UBS SUSTAINABLE ENERGY UTIL Municipal Securities Aa1 86932UCH6 4.62% 595,000 519,239 2/22/2023 9/15/2029 522,328.95$
35,093,514.44$
Plus Accrued Interest 135,310.54$
UBS Total 35,228,824.98$
Investments Total 81,234,674.35
Study session meeting of April 24, 2023 (Item No. 4) Title: Quarterly investment report - 1st quarter 2023 3