HomeMy WebLinkAbout2023/07/24 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA
JULY 24, 2023
The St. Louis Park City Council is meeting in person at St. Louis Park City Hall, 5005 Minnetonka
Blvd. in the council chambers located on 3rd floor.
Members of the public can attend the meeting in person, watch by web stream at
bit.ly/watchslpcouncil, or watch on local cable (Comcast SD channel 17/HD channel 859).
You can provide comments on agenda items for the regular EDA or city council meetings in
person or by emailing your comments to info@stlouisparkmn.gov by noon the day of the
meeting. Comments must be related to an item on the meeting agenda. Comments will be
shared with the city council by providing copies for their review at the meeting. Public
comments are generally not taken during study sessions.
Recordings of city council meetings 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. Special Economic Development Authority meeting
1.Call to order.
a.Roll call.
2.Approve agenda.
3. Minutes – none.
4.Consent items.
a.Resolutions approving contract for private redevelopment and amendments to purchase
agreement with Sherman Associates related to the Beltline Station market rate components
–Ward 1
5.Public hearings – none.
6.Regular business – none.
7. Communications and announcements.
8. Adjournment.
6:30 p.m. Special city council meeting
1.Call to order
a.Roll call.
b.Pledge of Allegiance.
2.Approve agenda.
3.Presentations – none.
4.Minutes.
a. Special study session minutes of June 5, 2023
Agenda special EDA/special city council/study session meeting of July 24, 2023
5. Consent items – business that generally does not require discussion or separate action.
Consent items are acted upon by one motion. If a separate vote is desired by either a
council member or a member of the public, that item may be moved to an appropriate
section of the agenda under regular business.
a. Resolution approving a business subsidy to Beltline Mixed-Use LLC and an amendment
to the federal Congestion Mitigation and Air Quality (CMAQ) grant agreement (Ward 1)
6. Public hearings – none.
7. Regular business – none.
8. Communications and announcements – none.
9. Adjournment.
City council study session – immediately following special city council meeting
Discussion items
1. 60 min. Elections and voter services overview
Written reports
2. Quarterly development update – 3rd Quarter 2023
St. Louis Park Economic Development Authority and regular city council meetings are carried live on civic TV cable
channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live
on the internet at www.parktv.org, and saved for video on demand replays.
If you need special accommodations or have questions about the meeting, please call 952.924.2505.
Meeting: Economic development authority
Meeting date: July 24, 2023
Action agenda item: 4a
Executive summary
Title: Contract for private redevelopment and amendment to purchase agreement with
Sherman Associates related to the Beltline Station market rate components - Ward 1
Recommended action:
o Motion to adopt resolution amending the purchase agreement, approving the contract
for private redevelopment and all related documents between the EDA and Sherman
Associates related to Beltline Station market rate components.
o Motion to adopt resolution amending the interfund loan resolutions to allow pooled tax
increment to be used to repay the interfund loans.
Policy consideration: Does the EDA wish to approve the proposed contracts with Sherman
Associates to facilitate the market rate components of the Beltline Station development?
Summary: Sherman Associates (“redeveloper”) seeks to acquire the 6.6-acre site at the
southeast corner of CSAH 25 and Beltline Boulevard from the EDA and construct a major
transit-oriented development with the following components:
• Seven-story mixed-use building with six levels of market rate housing (152 units) and
approximately 21,000 square feet of neighborhood commercial space.
• Four-story all affordable apartment building with 82 units and underground parking.
Including: 77 units at 60% AMI, five units at 30% AMI and 22 three-bedroom units.
• Five-story market rate apartment building with 146 units and underground parking.
• 592-stall parking ramp, including 268 park and ride stalls.
The development will exceed the inclusionary housing policy and the green building policy
requirements and will comply with the city’s diversity, equity, and inclusion policy.
In June 2022, the EDA/city council established two TIF districts, Beltline Station 1 (related to the
affordable housing component) and Beltline Station 2 (related to the market rate housing
components), approved the redevelopment contract relating to Beltline Station 1, and
approved a purchase agreement to sell EDA property to the redeveloper for $6,015,001.
Financial or budget considerations: Under the proposed redevelopment contract for Beltline
Station 2, the redeveloper agrees to construct the market rate and mixed-use components of
the Beltline Station development as specified under the approved PUD. To enable the $142
million, transit-oriented development to become financially feasible and secure private
financing, Ehlers (the EDA’s financial consultant) and staff recommend approximately $18.47
million in total financial assistance from a variety of sources be provided to facilitate all
components of the Beltline Station development. Of this amount, approximately $2.84 million
could potentially be recouped by the EDA from pooled tax increment. Sherman Associates
would purchase the EDA property for $3 million at closing scheduled for mid-September 2023.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion; EDA resolutions
Prepared by: Jennifer Monson, redevelopment administrator
Reviewed by: Greg Hunt, economic development manager
Karen Barton, community development director, EDA executive director
Approved by: Cindy Walsh, deputy city manager
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 2
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Discussion
Background
Sherman Associates (“redeveloper”) seeks to acquire the 6.6-acre site at the southeast corner
of CSAH 25 and Belt Line Boulevard from the EDA and construct a major, $142 million, transit-
oriented development with the following components:
• Seven-story mixed-use building with six levels of market rate housing (152 units) and
approximately 21,000 square feet of neighborhood commercial space.
• Four-story all affordable apartment building with 82 units and underground parking. Of
these, 77 units would be available at 60% of Area Median Income (AMI), and five units
would be available at 30% of AMI. Additionally, 22 units would be three-bedrooms.
• Five-story market rate apartment building with 146 units and underground parking.
• 592-stall parking ramp, including 268 park and ride stalls.
The development will exceed both the city’s inclusionary housing policy requirements (Oct.
2021) and the city’s green building policy requirements (July 2020).
Site information and public infrastructure needs
The subject site is located in the Triangle neighborhood immediately north of the Southwest
Light Rail (SWLRT) Beltline Boulevard Station. It is comprised of four tracts of land most of
which is owned the city’s Economic Development Authority as shown below:
Rendering of existing conditions at the development site.
The development site consists of the following properties
• 4601 Highway 7 (owned by the EDA)
• 3130 Monterey Ave S (owned by the EDA),
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 3
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
• road right of way (owned by the EDA)
• 4725 Highway 7 (owned by Beltline Development LLC an affiliate of Sherman
Associates).
It has long been assumed that there would be numerous challenges redeveloping the subject
site given the wetland, high water table and known contamination as well as the number and
size of the utilities traversing the property. This assumption was borne out through due
diligence which verified that there are significant extraordinary costs associated with
redeveloping the site along with other requirement costs. These extraordinary site
development costs include but, are not limited to utility relocations (some of which are very
large), wetland mitigation, environmental remediation, shoring and other site work; all of which
need to be completed at the outset to make the site construction ready.
To prepare the site for a major, mixed-use development, a number of public infrastructure
updates need to occur including:
• relocation of an existing 66-inch storm sewer pipe running north to south through the
site connecting storm water from north of CSAH 25 to Bass Lake Preserve, and creation
of a public storm trap.
• relocation of dual force sewer mains running underneath the former frontage road.
• reconstruction and redesign of the backage road to facilitate commercial and residential
traffic into the site.
• completion of Monterey Avenue South and the installation of new water and sewer
lines within the street.
• creation of a public plaza at the base of the pedestrian bridge staircase.
• installation of sidewalks and multi-use trails surrounding the site and
• installation of public streetlights
The cost of the public infrastructure necessary to facilitate development on the site alone
is estimated at over $5 million.
Rendering of proposed Beltline Station development
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 4
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
City Strategic Priorities
The Beltline Station development furthers all five of the city’s strategic priorities, achieves the
vision and all of the goals and objectives that were envisioned by the EDA/City Council when
the request for developers was issued in 2017, and achieves many of the goals and strategies
identified in the city’s 2040 Comprehensive Plan.
• St. Louis Park is committed to being a leader in racial equity and inclusion in order to
create a more just and inclusive community for all.
o The development provides 82 all-affordable units, including five units available
at 30% AMI and 77 units at 60% AMI, including 22 three-bedroom units designed
for families.
o The development includes approximately 21,000 square feet of neighborhood
commercial space providing employment opportunities for Beltline Station
residents and the surrounding neighborhood.
o The redeveloper will be adhering to the city’s DEI policy goals and quarterly
reports and will adhere to federal disadvantage business hiring goals pertaining
to the construction of the public parking ramp.
o Sherman Associates is committed to advancing equitable developments and
utilize their projects to advance social, racial, and economic equity. Specifics
regarding’s Sherman Associates commitment to creating equitable communities
is provided below.
• St. Louis Park is committed to continue to lead in environmental stewardship.
o The development exceeds the city’s Green Building Policy requirements as
amended July 2020. The redeveloper intends to use Enterprise Green
Communities as its design rating system for the all-affordable building (which is a
requirement of the LIHTC allocation), and SB2030/B3 for the market rate
buildings. Both rating systems meet the requirements of the green building
policy. Specific sustainable features are outlined further in this report.
o Sherman Associates developed, owns, and operates two, off-site, solar gardens
under Xcel Energy’s community solar program which it plans to access to offset
some the Beltline buildings’ energy needs. Additionally, building tenants could
subscribe to Sherman’s solar gardens for their energy needs under the
community solar program.
o The redevelopment site contains contaminated soils and this development will
mitigate them.
o The redevelopment site does not currently contain any stormwater management
practices, which will be addressed during construction.
• St. Louis Park is committed to providing a broad range of housing and neighborhood
oriented development.
o The development turns what would have been a surface parking lot into a
compact, mixed-use, mixed-income, transit-oriented development immediately
adjacent to the city’s Beltline Boulevard light rail station.
o The development provides 380 new residential units for St. Louis Park, including
82 all-affordable units, with five units available at 30% AMI and 77 units at 60%
AMI, and 22 three-bedroom units designed for families.
o The development also provides approximately 21,000 SF of neighborhood
commercial space, creating opportunities for small businesses and employment.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 5
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
• St. Louis Park is committed to providing a variety of options for people to make their
way around the city comfortably, safely and reliably.
o Beltline Station development provides for a signature transit-oriented
development at the Beltline Boulevard light rail station.
o Provides multi-use trails, sidewalks, bike lanes around and through the site to
create a development that is truly designed for people first, then bikes, transit,
and then cars per the goals of the city’s 2040 Comprehensive Plan.
o The development includes approximately 21,000 square feet of neighborhood
commercial space providing employment opportunities for Beltline Station
residents (and the surrounding neighborhood) which also reduces dependence
on motorized vehicles to get to work.
o Provides 268 park and ride spaces for the Metro Greenline Extension/Southwest
Light Rail to facilitate greater light rail ridership in the metro.
• St. Louis Park is committed to creating opportunities to build social capital through
community engagement.
o There was a robust public process for the planning of the Beltline Station Area
and the rezoning process. Additionally, the developers sought input from
community members on future commercial uses within the development and
amenities related to the affordable components.
o The site is designed to facilitate social building opportunities through
placemaking. The development includes pocket parks that are privately owned,
but accessible to the public for recreation and community building.
o Public art is required to be installed, and the community will be involved with
the process of artist and art selection.
A summary of all previous actions is provided in the table below, with more specific details to
follow.
Action Date
Vision for Beltline Blvd Station area completed. 2008 - 2011
Beltline Area Framework & Design Guidelines completed. June 2012
SWLRT Project Office and city begin work on a joint, mixed use
development concept for Beltline Station.
2013
The EDA acquired properties at 4601 Highway 7 & 3130 Monterey
Avenue South.
December 2013
City Council approved resolution authorizing submission of Congestion
Mitigation Air Quality (CMAQ) grant application to FTA for partial
funding to construct a parking ramp rather than a surface parking lot at
Beltline Station to fulfill SWLRT park and ride requirements.
November 2014
The EDA distributed a request for proposals to prospective developers
for the Beltline Station Redevelopment Site.
July 2017
The EDA entered into a preliminary development agreement with
Sherman Associates to develop the Beltline Station site.
February 2018
The EDA provided a bridge loan to Sherman Associates to enable its
purchase of the Vision Bank property to facilitate more than just transit
parking on the western side of the Redevelopment Site.
February 2019
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 6
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Action Date
The EDA and city approved the first amendment to the preliminary
development agreement.
June 2019
The EDA approved a subrecipient agreement with the Metropolitan
Council which specified the terms under which the CMAQ funds would
be disbursed to the EDA.
October 2019
The EDA entered into a cooperative construction agreement with the
Metropolitan Council to construct the parking ramp
November 2020
The EDA discussed Sherman Associates financial assistance request and
approved a second amendment to the preliminary development
agreement and received a staff report outlining the details of the
proposed Beltline Station development.
June 2021
The EDA received a report providing an update on the status of the
development and issues related to high ground water on-site
November 2021
Sherman Associates received a tax-exempt bond allocation of $13.7
million from Minnesota Management and Budget (MMB) to help
finance Beltline Station’s all affordable component.
January 2022
The city council approved the comprehensive plan amendment. March 2022
The city council approved various vacation requests, a preliminary and
final plat, and a preliminary and final planned unit development for the
Beltline Station development.
April 2022
The EDA held a hearing regarding the issuance of the tax-exempt bond
allocation for Beltline Station’s affordable housing component.
May 2022
Sherman Associates submitted a building permit application for the all-
affordable building.
May 23, 2022
The EDA/city council approved the Beltline Station 1 TIF District and
Beltline Station 2 TIF District.
June 6, 2022
The EDA/city council approved the contract for private redevelopment
for Beltline Station 1 TIF District and the purchase agreement related
to the land sale for the complete development.
June 20, 2022
Sherman Associates closed on the affordable building’s bond financing. July 1, 2022
The EDA approved a first amendment to the purchase agreement
pushing the closing date back to June 30, 2023 to allow all parties time
to finalize contracts.
December 5, 2022
Sherman Associates signed term sheets from their lenders for the
market rate components of the development. Closing is anticipated to
occur in June 2023.
February 2023
The EDA approved an early start and right-of-entry on the affordable
building site to allow cleanup activities to commence prior to April 1,
2023.
March 20, 2023
Sherman Associates began cleanup activities on the affordable building
site.
March 30, 2023
Sherman Associates submitted a building permit application and plans
for the market rate components.
May 5, 2023
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 7
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Action Date
The EDA received a report outlining a recommendation for an
amended financial assistance package to bring the development to
fruition.
May 15, 2023
Sherman Associates submitted a building permit application and plans
for the mixed-use components.
May 18, 2023
The EDA approved an amendment to the purchase agreement and
contract for private development related to the affordable
components to move the required closing date from June 30, 2023 to
September 15, 2023
June 5, 2023
Sherman Associates submitted a building permit application and plans
for the parking ramp.
June 12, 2023
Detailed summary of past actions
In 2011, the city hired consulting firm LHB to develop a vision for the properties immediately
north of the future Beltline Boulevard light rail station. City council envisioned the area as a
major, mixed-use, transit-oriented development that would include public park and ride stalls
for the transit line. In December 2013, the EDA acquired properties at 4601 Highway 7 & 3130
Monterey Avenue South to facilitate the envisioned development.
November 2014, the council approved a resolution authorizing submittal of a federal
Congestion Mitigation Air Quality (CMAQ) grant for a structured parking ramp to be located
immediately north of the SWLRT Beltline Blvd Station platform in lieu of a large parking lot. The
EDA was subsequently awarded a $6.4 million grant through the Federal Transit
Administration’s (FTA) CMAQ program that is regionally administered by the Met Council.
In July 2017, the EDA conducted a formal request for proposals process to solicit transit-
oriented development proposals for the Beltline Blvd. Station Redevelopment Site. The EDA
determined Sherman Associates’ proposal most closely aligned with the city’s vision,
development objectives and preferred programming for the site. Subsequently the EDA, city
and Sherman Associates entered into a Preliminary Development Agreement (PDA) on February
5, 2018. Sherman Associates then purchased the 4725 Highway 7 property for the future park &
ride in February 2019. At that time, the EDA provided Sherman Associates with a $3.1 million
loan to assist with the purchase of the property. The loan currently has an outstanding balance
of approximately $997,000 (principal and interest).
On June 17, 2019, the EDA and city approved a first amendment to the preliminary
development agreement (PDA) extending it to June 30, 2020. Since then, the parties have been
working collaboratively on a joint development (site and building) vision for the site.
Additionally, staff, Ehlers (the EDA’s financial consultant), and Sherman Associates have been
discussing all development costs, financial feasibility, and the necessary level of financial
assistance needed to bring the multi-phase development to fruition.
On October 21, 2019, the EDA approved a Subrecipient Agreement with the Metropolitan
Council which specified the terms under which the CMAQ funds would be disbursed to the EDA.
On November 2, 2020, the EDA entered into a cooperative construction agreement with the
Metropolitan Council under which the EDA committed to constructing a multi-level parking
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 8
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
structure on the 4725 Highway 7 property (in lieu of a surface parking lot) just prior to the start
of revenue service. Under the agreement the parking facility is to provide 268 public park & ride
stalls and is to be constructed in compliance with specified federal requirements. Additional
parking stalls may be included in the park & ride structure to serve the larger mixed-use,
transit-oriented development on the site. Those additional stalls would need to be funded
locally outside of the CMAQ grant.
In June 2021, the EDA and city approved an extension of the preliminary development
agreement with Sherman Associates to continue working on the parties’ mutual vision for the
joint development site. In the November 8, 2021 study session staff report, the EDA/council
received an update on the proposed Beltline Station development outlining its various
components.
In January 2022, Sherman Associates received a tax-exempt bond allocation of $13.7 million
from Minnesota Management and Budget (MMB) to help finance the development’s all-
affordable component. This bond allocation enabled the redeveloper to obtain federal Low
Income Housing Tax Credits (LIHTC) which provide an estimated $7.98 million in equity for the
project. Together, these sources are providing approximately 86% of the funding for the all-
affordable building.
Sherman Associates applied for a comprehensive plan amendment to re-guide portions of the
subject site from right-of-way and railroad to transit-oriented development, a preliminary and
final plat, and a preliminary and final planned unit development. The comprehensive plan
amendment was reviewed by the planning commission on February 16, 2022 and was approved
by city council on March 7, 2022. On April 4, 2022, the council approved the first reading of an
ordinance vacating various street, highway, alley, and easement rights-of-way to prepare the
site for redevelopment, approved the preliminary and final plat, and approved the first reading
of an ordinance approving a planned unit development zoning district for the site. For more
details on the overall development proposal, refer to the April 4, 2022 staff report.
In addition, the redeveloper submitted a vacation application to Hennepin County to vacate
portions of CSAH 25 along the northern portion of the site, which were originally approved on
May 2, 2022 and reapproved in October 2022 due to a technical error.
On June 6, 2022, the EDA approved the establishment of Beltline Station TIF District 1 and
Beltline Station TIF District 2; the legal mechanisms for providing tax increment financing for
the affordable housing and market rate components of the development. On June 20, 2022, the
EDA and city council approved the purchase agreement with Sherman Associates for the entire
Beltline Station redevelopment site and the contract for private redevelopment for Beltline
Station 1 TIF District pertaining to the affordable component. Sherman Associates completed a
soft closing on the financing for the affordable building in July 2022, to preserve the low-
income housing tax credit allocation. The redeveloper was originally required to complete a
final close on the all-affordable building’s financing by June 30, 2023, however the redeveloper
received an extension and is now required to close by the end of September 2023.
The EDA amended the purchase agreement on December 19, 2022 to require the redeveloper
to close on its acquisition of the EDA land no later than June 20, 2023 to coincide with the final
bond closing for the all-affordable components of the development.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 9
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
In late February 2023, the redeveloper signed term sheets with its lenders for the market rate
components of the project.
On March 20, 2023, the city approved conveyance of city-owned property at Beltline Station to
the EDA for subsequent conveyance to the redeveloper via a purchase agreement. The EDA also
approved an early start agreement and right of entry with the redeveloper to allow cleanup
activities to commence on the all-affordable building site by April 1, 2023. Cleanup activities
began on March 30, 2023.
Since summer 2022, EDA staff, the redeveloper and its team, the Metropolitan Council, Ehlers
(the EDA’s financial consultant), and associated legal counsels have been working diligently to
complete complex contracts related to the market rate and mixed-use components of the
redevelopment along with the public-private parking ramp (including an amendment to the
CMAQ grant agreement, construction-related documents, and a reciprocal easement and
operating agreement that specifies the long-term maintenance and operations of the ramp).
The city’s Building and Energy department is ready to issue the building permit for the
affordable component, pending Sherman’s purchase of the EDA’s property. On May 5, 2023
building plans and permit application were submitted for the market rate components, and on
May 18, 2023 the building permit and plans for the mixed-use component were submitted for
review.
On May 15, 2023 the EDA received a staff report updating the proposed financial
considerations of the development, where staff and Ehlers, the EDA’s financial consultant,
recommended approximately $18.47 million in total financial assistance (of which
approximately $2.84 million could potentially be recouped by the EDA and a $3 million land
price reduction) to be provided to offset a portion of the site’s extraordinary costs and facilitate
all four components of the Beltline Station development. The assistance would derive from a
variety of sources. As negotiated, Sherman Associates would purchase the mixed-use and
market rate housing property from the EDA for $3 million and the affordable housing
component property for $1.
On June 5, 2023 the EDA approved an amendment to the purchase agreement and contract for
private development related to the affordable components to move the required closing date
from June 30, 2023 to September 15, 2023 to allow time for the required public bidding process
related to the construction contract for the parking ramp. On July 17, 2023 the EDA held a
public hearing on the purchase agreement and associated business subsidy. No members of the
community spoke.
Important upcoming deadlines
There are several major deadlines approaching that require approvals and financial closings to
bring the Beltline Station development to fruition. Should these deadlines be missed, it is highly
likely that none of the proposed development would proceed, and the Metropolitan Council
would require the EDA to construct a 268-stall parking lot to serve the adjacent Metro
Greenline Extension station. A detailed overview of the upcoming actions, deadlines, and
consequences of missing those deadlines is provided below:
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 10
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Upcoming deadlines
Action Deadline Consequence
EDA approves all
contracts related to
the Beltline Station
Development.
July 24, 2023 If the contract is not approved, the public
bidding process will not be able to commence,
and there will not be time to complete all
necessary federal and state requirements by the
land purchase deadline of September 15, 2023.
Legal notice published
in newspapers, the
city’s website and
other locations
notifying contractors of
the parking ramp
project.
July 27, 2023 This is a requirement of all projects that need to
be publicly bid. The notifications need to be
published 21 days prior to the bid award, which
is scheduled for August 17, 2023. The lowest
qualified bidder then has 10 days to submit
bonds.
Full closing on
financing for the
affordable components
o REOA approved
by FTA and
signature pages
in escrow
Purchase property
from EDA for
redevelopment
September 15,
2023
If Sherman is unable to close on the property
acquisition, it will be unable to disburse
additional proceeds of the tax-exempt bonds
issued for the affordable components.
If this happens, the city will lose 82 units of
affordable housing, including five units
affordable at 30% AMI, and 22 larger units for
families.
Commence
construction on the
parking ramp.
September 30,
2023
Per the CMAQ Grant Agreement, construction
must occur prior to this date, or the city risks
losing $6.45 million. Without the CMAQ grant,
the city will be unable to provide structured
parking and the EDA will be required to
construct a tax-exempt public parking lot at the
development site.
The city would forfeit the entire Beltline Station
development.
EDA construction of
268 park and ride
stalls.
6 months prior
to LRT fee
service
The EDA is required to provide 268 parking
spaces north of the Beltline Boulevard light rail
station prior to LRT fee service. It is planned
that these stalls will be included in the planned
parking ramp. If the parking ramp is unable to
be constructed, the city will be required to build
a surface parking lot to accommodate the 268
park and ride stalls. The Met Council is
providing $2.5 million towards the construction
of the stalls. The construction of the parking lot
is likely to exceed $2.5 million dollars, and the
EDA would be required to pay any overages.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 11
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Architectural site plan
Present considerations
The approved Beltline Station development will be a major, mixed-use, mixed-income, transit-
oriented development. Pending approval of its financing, Sherman Associates intends to start
grading and utility work on the entire redevelopment site in September 2023, and commence
construction of the all-affordable building in September 2023, the market rate building in
December 2023, the parking structure in June, 2024, and the mixed-use building in August
2024.
An affiliate of Sherman Associates would own and manage the commercial and residential
components of the development for the long-term. The overall Beltline Station Development’s
proposed mix of unit types is provided below.
Unit Type Summary
Building Studio Alcove 1 bed 1bed+ 2bed 2bed+ 3bed TOTAL
Building 1:
Market Rate
11 19 58 20 44 152
Building 2:
Affordable
30% AMI - 1
60% AMI -14
30%AMI - 3
60%AMI - 42
30% AMI - 1
60% AMI -
21
5
77
Building 3:
Market Rate
12 62 25 42 5 146
Total 11 31 135 45 131 5 22 380
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 12
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
City Policies
Inclusionary housing policy: The proposed Beltline Station development exceeds the
requirements of the city’s inclusionary housing policy in effect October 2021. The development
would be mixed income with 298 market rate units and 82 units (20 percent) offered at
affordable rents in one building. Specifically, 77 units would offer affordable rents to
households earning up to 60% AMI and five units would offer affordable rents to households
earning up to 30% AMI, exceeding the city’s inclusionary housing requirements (“the affordable
component”). An all-affordable building differs from the Inclusionary Housing Policy
requirement that all affordable units be spread between the various buildings, however, in this
case, it is the most efficient financing and design structure for the affordable housing. It allows
the redeveloper to deliver more affordable housing units, targeting areas of greatest housing
need including:
• Family sized housing units.
o 67 (82%) of the affordable units would be two bedrooms or larger.
o 22 units (27%) would be three bedrooms.
o The average unit floor area would be 1,029 square feet.
• More deeply affordable units: five (5) units affordable to households earning 30% AMI.
• Well-designed and quality housing units in any product type. Examples include:
o All units contain a washer, a dryer, and a kitchen island.
o Two- and three-bedroom units generally have two baths.
o Structured/tempered parking.
o Ample common area amenities to serve the needs of residents/families.
o Exterior building materials that complement and match the adjacent market rate
buildings.
o Most units would have a balcony or walk out patio.
Amenities for the affordable building are similar to those in the market rate buildings but are
designed more specifically with families in mind, and include a fitness room, club room, pet spa,
playground, indoor play area, splash pad and amenity deck.
Green building policy: The proposed development exceeds the city’s Green Building Policy
requirements as amended July 2020. The redeveloper intends to use Enterprise Green
Communities as its design rating system for the all-affordable building (which is a requirement of
the LIHTC allocation), and SB2030/B3 for the market rate buildings. Both rating systems meet the
requirements of the green building policy. In general, the development will pursue goals to
achieve energy efficiency within the building envelopes, increased indoor environmental quality
to enhanced occupant health and productivity, the buildings will utilize green products and
materials during product sourcing and manufacturing. In general, the site is situated and
designed to provide for local multimodal connectivity. Among the sustainability features to be
included are:
• Energy star qualified appliances and equipment,
• Energy conservation strategies that include improvements to the building envelope,
lighting control, higher efficiency HVAC equipment, efficient water heating systems, and
on-site and off-site renewable energy.
• The site designed to conserve water, control erosion, and protect water quality. Some
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 13
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
best management practices include permeable paving, roof deck plants, and
underground stormwater storage.
• Construction waste management and recycling.
• Waste management that includes recycling and trash chutes and resident training
manuals.
• Reduction in light pollution.
• Low-emitting materials including flooring adhesives, carpets, paints, and furnishings.
• Radon control and mitigation.
• Rooftop solar panels on either Affordable building or the parking ramp
A total of 22 level 2 electric vehicle charging spaces for residential uses and 6 level 2 spaces for
commercial uses will be provided. Additional conduit will be provided for 14 future level 2
spaces within the park and ride portion of the ramp, which is not required to adhere to city
ordinances.
In addition, Sherman Associates developed, owns, and operates two solar gardens under Xcel
Energy’s community solar program totaling 6.75 megawatts. Buildings and tenants at Beltline
could subscribe to Sherman’s solar gardens under the community solar program.
Climate Action Plan: The redeveloper understands the city’s desire to reduce the city’s overall
carbon emissions by 55 percent by 2030 and would contribute to the city’s goal of reducing
vehicle emissions by 25 percent. The site is adjacent to the SWLRT Beltline Boulevard Station
and the Cedar Lake LRT Regional Trail creating great multimodal access immediately adjacent
and surrounding the site. Mobility access includes LRT, sidewalks, multi-use trails, and frequent
bus service once LRT is operational. These modes link the site to the immediate amenities, but
also to the greater metro area without needing to rely on a vehicle.
Diversity, equity, and inclusion: Sherman Associates is committed to advancing equitable
developments and utilize their projects to advance social, racial, and economic equity. They
have committed to advancing these goals throughout the development process itself and with
the product being delivered. Examples of strategies Sherman Associates has employed to
advance social, racial, and economic equity include:
o Disadvantaged Business Enterprise Program contracting: Sherman Associates seeks
relationships with Disadvantaged Business Enterprises and, in fact, will be required to
solicit them in conjunction with the construction of the parking ramp. For the Beltline
Station development, Sherman is working with Guarantee Title, which is a certified
Women’s Business Enterprise and a woman-owned small business.
o Corporate charitable giving strategy with a corporate match: Sherman Associates has
implemented a paycheck donation deduction program and corporate donation
matching.
o Commitment to developing/owning/managing quality affordable housing: Sherman
Associates has 43+ years of experience developing, owning and managing affordable
housing. Their current portfolio includes 4,609 affordable/workforce units.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 14
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
o Partnering to provide housing and supportive services to families and individuals at
risk of homelessness and long-term disabilities: Since 2018, Sherman Associates has
provided training programs for property management and maintenance through a
partnership with Project for Pride in Living (PPL). This partnership has helped individuals
develop high demand skills such as building operation technicians and maintenance
skills. Sherman Associates sponsors individuals going through the training, assists with
specific trainings on customer service, conflict resolutions and mock interviews.
Sherman also participates in the job fair and interviews people for open positions within
the company.
o Leadership involvement and mentorship in industry professional programs promoting
diversity initiatives:
o George Sherman, CEO
• Minnesota Housing Partnership board member
o MHP’s mission is to expand housing and community development
opportunity for those most impacted by economic and racial
disparities by leading collaborative work to promote system change
and grow equitable development capacity.
o Chris Sherman, President
• Twin Cities Housing Alliance board member
o Twin Cities Housing Alliance (TCHA) advocates for local and regional
housing policy that creates a more affordable, equitable,
economically vital, and environmentally sustainable future for the
Twin Cities community.
• The Sanneh Foundation board member
o The Sanneh Foundation serves the holistic youth development needs
of the increasingly diverse Twin Cities metro area. Our mission is to
empower youth by supporting and promoting educational attainment
through in-school and after-school support, improve lives by
providing programs that strengthen physical health and social and
emotional development, and unite communities by advancing
diversity, equity, and community well-being.
• Hennepin Healthcare Foundation board member
o Hennepin Healthcare Foundation has the honor of connecting the
generosity of the community to the mission of Hennepin Healthcare.
Caring for anyone at any time with any condition takes resources and
a team of exceptional staff. Our unique position of being Minnesota's
largest level one trauma center, safety net, and public teaching
hospital offers innovative ways to influence the health of our
community. Generosity removes barriers to healthcare access,
enhances the patient and family experience, and advances efforts in
medical education, clinical research, and community health.
• ForeUs board member
o To foster the development of Twin Cities youth by providing income-
earning caddying opportunities, golf lessons and post-secondary
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 15
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
scholarships, and providing peer and mentor support, teaching the
life skills inherent in the game of golf.
Park and ride parking ramp
The federally approved plans for Southwest Light Rail (SWLRT) include a 268-stall park and ride
parking lot on the west half of the development site. These park and ride stalls are required
under the federal funding for SWLRT, and a permanent transit easement has been recorded on
the property to ensure these stalls are constructed.
Federally approved plan for parking lot
For over fifteen years, the EDA and city council have envisioned a major, mixed-use, mixed-
income, transit-oriented development on this site. To achieve this vision, in 2014 the city
applied for and received a federal CMAQ Grant for $6.45 million to construct structured parking
in lieu of the parking lot. The structured parking provides for more efficient use of the property
by reducing the footprint of the required parking and maximizing the developable area. Per the
CMAQ Grant Agreement, the EDA is required to provide a 20% local match for these funds
($1.61 million), which will be provided through tax increment financing (TIF) generated by the
proposed development. This $1.61 million is included in the total TIF allocated to the
development, as shown in the table on page 16 of this report.
The EDA and Met Council entered into a cooperative construction agreement (November 2020)
to remove the original parking lot from the SWLRT project scope to allow the EDA to construct
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 16
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
a ramp in lieu of the surface lot. When SWLRT received federal approval in 2019, the estimated
cost to construct the parking lot and associated infrastructure was $2.5 million. Per the
cooperative construction agreement, Met Council will provide this $2.5 million to the
redeveloper to go toward the cost of constructing the park and ride stalls. Should the EDA or
redeveloper fail to start construction, including grading and site work, of the parking ramp by
September 30, 2023, the city is at risk of losing the $6.45 million CMAQ grant. If the grant is
lost, the construction of the parking ramp is financially infeasible. The EDA would then be
responsible for constructing the parking lot. It is likely that the cost of the parking lot would
exceed the $2.5 million provided by the Met Council and the EDA would be responsible for
paying any overages.
Per the proposed contract for private development and the approved PUD, Sherman Associates
will construct the entire parking ramp, including the park and ride stalls for Met Council, on
behalf of the EDA. Once the ramp is complete, the city council will be asked to consider
approval of a registered land survey to legally define and record the separate ownerships within
the ramp. An entity of Sherman Associates will own the residential parking tracts, and the Met
Council will own the transit tract which includes park and ride stalls and a driver restroom. The
long-term maintenance and operation of the ramp is specified in a reciprocal easement and
operating agreement (REOA) executed between the redeveloper and Met Transit.
Financial assistance
Redeveloper’s request for tax increment financing assistance: Sherman Associates previously
conveyed that the Beltline Station development’s financial proforma exhibited a gap preventing
it from achieving a market rate of return sufficient to attract financing. To offset this gap,
Sherman Associates applied to the EDA for tax increment financing (TIF) assistance. The EDA
received a report on June 14, 2021 outlining Sherman’s application for TIF assistance and the
overall financial assistance warranted to address the site’s extraordinary costs and enable the
major, transit-oriented development to proceed.
Financial assistance for the Beltline Station development: To facilitate construction of the
entire Beltline Station development (affordable housing, mixed-use, and market rate
components), the proposed, updated package of financial assistance includes six main
components:
• Pay-as-you-go TIF Notes
• special legislation spending plan tax increment
• pooled tax increment from other TIF districts
• Affordable Housing Trust Fund dollars
• Forgiveness of the remaining balance of the bridge loan
• Reduction of the purchase price of the land consistent with recent appraisals
Financial assistance for the affordable component: Previous council actions to financially
support this project included a $3.1 million bridge loan for the land purchase for the public
parking ramp, a TIF note valued at $1.44 million, an affordable housing trust fund loan of
$618,238 for the affordable component, and a purchase agreement to sell the affordable
housing parcel for $1 (appraised at $2.46 million at the time of sale) and to sell the market rate
and mixed-use components for $6,015,001.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 17
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Financial assistance for the market rate and mixed-use components: In February 2023,
Sherman Associates locked in its financial term sheets with lenders and started the closing
process for all phases of the development. At that time, the bank commissioned two
independent appraisals for the mixed-use and market rate components of the project. Both
appraisals reflected a significant reduction in the project’s land value due to site contamination
and utility relocations. This, in addition to increases in interest rates and increases in total
construction costs, created an additional $13.75 million financial gap in the project’s pro-forma
above what was presented to the EDA in February 2023.
To solve for the $13.75 million gap, the redeveloper increased its owner’s equity in the project,
secured the most competitive lending terms in the Minneapolis market, and worked with its
general contractor to achieve further cost savings through construction (quality of materials
and finishes are not being value-engineered out of the plans). The redeveloper was not able to
increase its construction loan since it is limited by the loan-to-value and debt service coverage
ratios with its lenders. To help fill the remaining gap, it requested the EDA consider funding
approximately ¼ of the additional $13.75 million of the development’s cost increase.
Upon extensive review and consultation, staff and Ehlers are recommending a financial
assistance package consisting of the following:
• Developer to increase owner’s equity.
• Developer to seek further reductions in construction costs from its contractor.
• TIF Note 1: $5.75 million assigned to the mixed-use components and significant public
infrastructure costs.
• TIF Note 2: $5.09 million assigned to the market rate components and parking, a portion
of which includes the CMAQ grant local match.
• Spending plan tax increment: $1.55 million.
• Forgiveness of the remaining balance of the EDA’s bridge loan to Sherman Associates for
the purchase of 4725 Hwy 7 (which included the land, former Vison Bank building, and
relocation of the bank); approximately $997,000.
• A reduction in the purchase price of the land from $6,015,001 to $3,000,000*.
*This amount provides for full reimbursement of the EDA’s costs associated with acquisition of
the property.
The financial assistance package was subsequently presented to the EDA in May and no
additional changes have been made since that time, with the exception of a slight reduction the
final level of recommended financial assistance from $18.49 million to $18.47 million based on
the net present value of the TIF notes.
At closing Sherman Associates would purchase the mixed-use and market rate property from
the EDA for $3 million and the affordable component property for $1. In addition, all property
that is privately owned but located within public right of way, will be quit-claimed back to the
city for public ownership and use.
The total amount of direct financial assistance proposed for the market rate and mixed-use
components is $13.39 million. This includes two TIF notes totaling $10.84 million (including the
EDA’s $2.9 million contribution for the park and ride spaces), $1.55 million of pooled tax
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 18
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
increment from other TIF districts, and forgiveness of the remaining $997,000 balance of
Sherman’s bridge loan with the EDA.
Reflecting land values in the two recent appraisals there is also a $3,015,000 reduction in the
purchase price of the EDA property, which is shown below as a land price reduction. The value
of the land dropped considerably since 2017, when original negotiations between the EDA and
developer occurred, and the banks will not provide financing for a higher land purchase price.
Beltline Station development financial assistance summary
Site
component
TIF Note
amount
Pooled tax
increment AHTF Bridge loan
forgiveness
Land price
reduction
Total
assistance
Beltline Station 1 TIF District (affordable component)
Affordable $1.44 million
26 years $618,238 $2.06 million
Beltline Station 2 TIF District (mixed-use, market rate & parking components)
Mixed-use $5.75 million
16 years $1,554,000 $997,000
$3,015,000 $16.41 million Market rate
parking
$2.19 million
$2.90 million
16 years
10.84 million $1.55 million $997,000*
Total
financial
assistance
$12.30
million* $1.55 million $618,238 $997,000* $3.015
million* $18.47 million
*Staff and Ehlers recommend the EDA use pooled TIF to repay the majority of the loan
forgiveness and land price reduction.
“Redevelopment Property” for the proposed market rate and parking components of the
Beltline Station Development
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 19
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
As proposed, $10.84 million in TIF assistance is needed from the Beltline Station 2 TIF District to
reimburse the redeveloper for a portion of its significant, extraordinary site development costs
and to facilitate the mixed-use, market rate, and parking ramp components of the
development. The public infrastructure costs for the development are over $5 million and
include the relocation of large storm sewer lines and construction of a public storm trap,
completion of Monterey Avenue to connect it to the newly constructed backage road including
new water and sanitary sewer lines being installed under the street, public sidewalks, public
multi-use trails, the reconfiguration of a ¾ intersection to facilitate commercial and residential
development on the site, and a public plaza at the base of the pedestrian bridge stairs. In
addition, the site has further extraordinary costs related to soil remediation, grading, geopiers,
structured parking serving the market rate housing and mixed-use building, and costs related to
the city’s remaining share of the parking ramp costs.
Upon completion of the buildings and verification of the redeveloper’s qualified public
redevelopment costs, tax increment generated from the increased value of the property would
be provided to the redeveloper on a "pay-as-you-go" basis, which is the preferred financing
method under the city's TIF policy.
Two TIF notes would be issued within the Beltline Blvd. 2 TIF District. The first TIF note,
associated with the mixed-use component and the city’s contribution for the parking ramp
would be $5.75 million and would be paid off in approximately 16-years. The second TIF note,
which is associated with the market rate component and parking, would be $5.09 million and
would also be paid off in approximately 16 years.
Property value and taxes: A portion of the redevelopment properties are currently owned by
the EDA and are tax exempt. Once the properties are sold to Sherman Associates and
subsequently redeveloped, the combined assessed market value of the six parcels constituting
the subject redevelopment site is estimated at approximately $7.24 million. This is the TIF
district’s base value. The combined estimated market value of these properties upon the
development’s completion (for TIF estimation purposes) is $80.175 million. Most of this value
(minus the base value) would be captured as tax increment and used to make payments on the
TIF note to the redeveloper until it is paid off (16 years). The city, county and school district
would continue to receive the property taxes collected on the subject site’s base value during
this time.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 20
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Spending plan tax increment: In 2021, the Minnesota Legislature provided temporary authority
to cities and EDAs to utilize unobligated tax increment from existing TIF districts to further
stimulate private development that would not otherwise commence without such assistance,
provided the private development creates or retains jobs, including construction jobs. On
December 5, 2022, the EDA and city council approved a spending plan to utilize unobligated tax
increment to provide financial assistance to private development. The funds must be used to fill
a gap in a project’s financing and are required to be spent by December 31, 2025.
Staff and Ehlers recommend providing $1.55 million in spending plan tax increment to fund a
portion of the mixed-use component of the development.
4725 Hwy 7 bridge loan: In 2019, Sherman Associates purchased 4725 Hwy 7 (which included
the land, former Vison Bank building, and relocation of the bank) for $3.64 million to allow the
construction of a mixed-use development on the corner of Beltline Boulevard and Highway 7.
The property acquisition allowed the EDA and the redeveloper to gain control of the property
ahead of the Met Council and utilize it for construction of a parking ramp for the development,
as opposed to the surface parking lot originally required by the SWLRT project. To purchase the
property, the EDA provided Sherman Associates with a $3.1 million bridge loan from the city’s
Development Fund for a portion of the acquisition costs, and the redeveloper provided
$800,000 in equity and closing costs. Without this loan, Met Council would have condemned
the property for a transit parking lot and private development on the site would have been
prohibited by state law. To date, the redeveloper has repaid the EDA $2.1 million. The
remaining balance of the bridge loan is approximately $997,000 (principal and interest). Prior to
providing the bridge loan, the EDA adopted an interfund loan allowing itself to be paid back for
the loan amount from tax increment.
The Met Council has subsequently recorded a permanent transit easement on the property,
requiring it to be used for 268 public park and ride stalls for the Metro Greenline
Extension/Southwest Light Rail. From an appraisal standpoint, the permanent transit easement
removes nearly all value of the property. Given that the property is essential for construction of
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 21
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
the structured parking ramp that serves the parking needs of both the transit and the
development, it is reasonable for the EDA to incur a portion of the cost to purchase this
property to facilitate greater density of the entire Beltline site and advance the city’s strategic
priorities. Staff and Ehlers therefore recommend forgiveness of the remaining balance of the
bridge loan. Staff recommends that the EDA amend the interfund loan adopted in 2019 prior to
the provision of the loan to Sherman and use pooled tax increment to repay the development
fund the $997,000.
Purchase agreement: On June 6, 2022, the EDA entered into a purchase agreement with
Sherman Associates in which Sherman agreed to purchase the mixed-use and market rate
parcels for $6,015,001 and purchase the affordable parcel for $1 (appraised at $2.46 million at
the time of sale).
In March, Sherman signed term sheets for the market rate properties which were conditioned
upon supportable appraisals commissioned by their bank. Unfortunately, the appraisals
significantly reduced the value of the EDA’s property due to market conditions, the cost of
contamination clean up, and utility relocations necessary for the properties to be building-
ready. The EDA and Sherman anticipated the appraisals to support the agreed upon sale price
of the properties at $6,015,000, however the appraisals came back with a value of $3,390,000.
The bank would not support a $6 million purchase price for the land when the appraisal
reflected a value of only $3.39 million.
To help close the project’s latest financial gap, staff, Ehlers, and EDA legal counsel recommend
amending the purchase agreement to reduce the purchase price of the mixed-use and market
rate properties consistent with the recent appraisals from $6,015,001 to $3 million. This is
slightly less than the appraised $3.39 million in value; however, the EDA would be able to
recoup the remaining value and compensate the Development Fund the $390,000 via pooled
tax increment. The $3 million purchase price provides for full reimbursement of the EDA’s costs
associated with acquisition and holding costs of the property.
In addition, all property that is privately owned but located within public right of way, will be
quit-claimed back to the city for public ownership and use.
Development Fund: Prior to acquiring 4601 Hwy 7 (the parcel upon which the affordable
building will be constructed) in 2013, the EDA approved an interfund loan resolution allowing it
to reimburse itself for the cost of acquiring the property from tax increment. A $3 million land
sale provides for reimbursement of all costs the EDA has incurred thus far to assemble, acquire,
and hold the properties for redevelopment. The EDA had hoped to achieve a greater yield on its
land sale by providing a fully assembled site for redevelopment. However, due to market
conditions, the contamination, and utility relocations necessary for development to occur, the
final appraised value does not support a higher purchase price. The reduction in the purchase
price is shown as financial assistance to the redeveloper in the table on page 18; however, the
EDA is still receiving roughly market rate for the property and is recouping its incurred costs and
in so doing, making a slight profit through the land sale.
Staff and consultants recommend the EDA reimburse the Development Fund approximately
$3.64 million over time from other redevelopment TIF districts by repaying the interfund loan
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 22
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
for the bridge loan, the acquisition of the 4601 Hwy 7, and the $390,000 purchase price
reduction with pooled tax increment. $3.64 million is the sum of the remaining $390,000 land
value of the mixed-use and market rate components, the $997,000 bridge loan, and $2.25
million which is the amount the EDA originally paid to acquire 4601 Hwy 7 to facilitate the
development.
Why is it important to add to/reimburse the Development Fund?
The Development Fund serves as the primary funding source for the EDA’s activities and is
intended to be a revolving fund. It enables the EDA to pursue and facilitate a wide range of
commercial, industrial, and multifamily developments, redevelopments, and economic
development activities, programs, initiatives and small business assistance. Some of these
activities include strategic property acquisitions, such as the acquisition of land for the Beltline
Station Development and the Wooddale Station Development. These strategic acquisitions
allow the EDA to have more control and input over what is constructed to best meet the city’s
strategic priorities. It also funds EDA operations and administration including personnel costs,
and planning studies/initiatives, as well as TIF district management and oversight.
Unlike tax increment dollars which are statutorily restricted to specific uses, the dollars within
the Development Fund are allowed to be used for general economic development and
redevelopment purposes. Given this flexibility they are extremely beneficial to the EDA and city.
They allow the EDA to pursue and facilitate projects and initiatives in alignment with the city’s
strategic priorities (without utilizing General Fund dollars). In recent years, dollars within the
Development Fund have been significantly drawn down in pursuit of various projects, planning
activities, and community initiatives (such as funding for SWLRT, broadband, and the arts, loans
to STEP and various development projects, etc.), as well as providing for EDA administrative
costs and staff salaries. Therefore, it is important that the Development Fund be replenished as
opportunities present themselves to enable the EDA to make strategic acquisitions, provide
small business assistance, and continue fulfilling its mission of fostering and promoting a wide
range of public and private development and redevelopment activities within the city.
Proposed contract for private redevelopment for the market rate and parking components
(Beltline Station 2 TIF District)
The proposed contract for private development for the market rate and parking components
(Beltline Station 2 TIF District) specifies the mutual obligations between the EDA and Sherman
Associates (“redeveloper”) as well as the terms of the financial assistance to be provided.
Business terms for providing the proposed financial assistance to the Beltline Station
Development’s market rate and parking components were provided in the staff report for the
April 18, 2022 study session and the May 15, 2023 study session. The business terms would be
updated to reflect any changes in financial assistance or otherwise prior to the contract being
finalized.
A copy of the contract for private redevelopment for the market rate and parking components
is available for review in the community development department.
Summary
As indicated in the June 14, 2021 study session staff report, the proposed $142 million Beltline
Station development has a verified financial gap due to significant site preparation and other
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 23
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
development costs and is not financially feasible but for the provision of tax increment
financing and other assistance. To offset this gap, it is proposed that the EDA consider
reimbursing the redeveloper up to $10.84 million in pay-as-you-go tax increment generated by
the redevelopment via two separate Paygo TIF Notes, $1.55 million in spending plan tax
increment, forgiveness of the remaining balance of the bridge loan ($997,000), and sale of EDA
property for $3 million. The amount of financial assistance recommended is reflective of the
assistance necessary to offset a portion of the public improvements necessary to develop the
site and facilitate a large, multiphase development with a structured public parking component,
that is being constructed concurrently.
Providing the recommended financial assistance to the proposed Beltline Station’s market rate
and mixed-use components provides numerous public benefits and makes it possible to:
• provide a compact, mixed-use, transit-oriented, mixed-income development for the
City of St. Louis Park, including a vertical structured parking ramp, instead of a large
surface parking lot at a key intersection.
• create a development that furthers all five of the city’s strategic priorities, as noted in
the staff report above.
• improve and install new city infrastructure including storm sewer, sanity sewer, water
lines and a street connection on Monterey Avenue.
• further diversify the city’s housing stock with new multi-family apartment offerings
consistent with the city’s strategic priorities and Comprehensive Plan.
• Enhance multi-modal transportation opportunities for residents, including trail
connections, sidewalks, and light rail.
• provide the community with 82 additional affordable housing units for 26 years under
the city’s inclusionary housing policy, including 45 two-bedroom and 22 three-bedroom
affordable units, and five units at 30% AMI, to help the city provide opportunities for
affordable family housing. Due to the LIHTC allocation for the project, the units will be
affordable for 30 years.
• further the city’s sustainability goals by developing the affordable building to Enterprise
Green Community standards and the market rate buildings to SB2030/B3 standards, by
providing a rooftop solar array, and contributing to the community’s overall solar
energy usage by supporting Sherman Associates 6.75 megawatts solar farms.
• facilitate $142 million of new investment further invigorating the surrounding
neighborhood, providing additional retail and including a $25 million investment in
affordable housing.
• construct quality buildings (e.g., sound architectural design, quality construction and
materials) with underground parking, public features, and sustainable elements.
• redevelop underutilized and environmentally impacted property with substandard soils.
• bring current tax-exempt properties to optimal market value and add to the city’s tax
capacity.
Sherman Associates’ proposed Beltline Station development meets the minimum and desired
qualifications, and the city’s objectives for the provision of Tax Increment Financing as specified
in the city’s TIF Policy. The proposed amount of TIF assistance is consistent with other multi-
phase developments the EDA has previously assisted.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 24
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Recommendation: Staff supports approval of the proposed contract for private development
for the market rate and mixed-use components with Sherman Associates and related
documents as outlined above and listed below to move the Beltline Station development
forward, advancing all five of the city’s strategic priorities. The approvals include:
• Market rate contract for private development
• Third amendment to purchase agreement
• Second amendment to cooperative construction agreement
• First amendment to CMAQ subrecipient grant agreement
• Subordination agreement for Bridgewater Bank
• Assignment of TIF to National Commerce Bank
Incorporated in the above is an authorization to use pooled tax increment from other TIF
districts to reimburse the Development Fund an additional $3.64 million for the items outlined
earlier. Staff and EDA consultants believe it is important to replenish the Development Fund
when opportunities present themselves to enable the EDA to continue fulfilling its mission.
The attached resolution of approval also allows for modifications to the contract and other
documents that do not alter the substance of the transaction without bringing them back to the
EDA for amendments.
Next steps
Legal notices related to the bidding of the parking ramp will be published starting July 27, 2023.
Bids will be opened 21 days later. The contract will be awarded to the lowest qualified bidder
who then has 10 days to submit construction bonds.
Sherman Associates is scheduled to close on its financing for the market rate and mixed-use
components of the development prior to September 15, 2023. Once that has occurred, the EDA
will sell its property to the redeveloper. Immediately following, the city will issue building
permits for the affordable housing component, the market rate components, the mixed-use
components, and the parking ramp. This will allow the redeveloper to complete the remaining
site work, construction of utilities, and commencement of the building construction. Once the
parking ramp construction is complete (Q1 2025), the city council will be asked to consider
approval of the registered land survey.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 25
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
EDA Resolution No. 23-_______
Resolution conveying property, approving contract for private
development with Beltline Mixed Use LLC including a business
subsidy agreement, authorizing the issuance of tax increment
revenue and other notes, and taking other actions in connection
therewith
Be it resolved by the board of commissioners (the “board”) of the St. Louis Park
Economic Development Authority (the “authority”) as follows:
Section 1. Recitals.
1.01. The city council of the City of St. Louis Park, Minnesota (the “city”) and the
authority have approved the establishment of Beltline Station Tax Increment Financing District
No. 2 (the “TIF district”), a renewal and renovation district within Redevelopment Project No. 1
(the “project”) and have adopted a tax increment financing plan for the purpose of financing
certain improvements within the project.
1.02. Minnesota Statutes, section 469.176, subdivision 4n (“Subd. 4n”) authorizes
authority to spend available tax increment from any existing tax increment financing district
(“available TIF”), notwithstanding any other law to the contrary, to provide improvements, loans,
interest rate subsidies, or assistance in any form to private development consisting of construction
or substantial rehabilitation of buildings and ancillary facilities, if the following conditions exist:
(a) Such assistance will create or retain jobs in the State of Minnesota (the
“state”), including construction jobs;
(b) Construction commences before December 31, 2025;
(c) The construction would not have commenced before December 31, 2025
without the assistance;
(d) Available TIF under the spending plan is spent by December 31, 2025; and
(e) The city council (the “council”) of the City of St. Louis Park, Minnesota (the
“city”) approves a written spending plan (after a duly noticed public hearing) that
specifically authorizes the Authority to take such actions.
1.03. The authority and the council have heretofore adopted a spending plan (the
“spending plan”) pursuant to Minnesota Statutes, section 469.176, subdivision Subd. 4n, which
authorizes the use of available TIF to provide improvements, loans or assistance for private
development that satisfies the criteria listed above and as further described in the spending plan
(“qualified projects,” singularly, a “qualified project”). The spending plan expressly authorizes
available TIF assistance to qualified projects including to the development (as hereinafter defined).
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 26
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
1.04. The city, the authority, and Beltline Development LLC, a Minnesota limited
liability company (“Beltline Development”), or an entity related thereto or affiliated therewith
(collectively, the “Beltline development entities”), each own portions of certain property within
the project (the “development property”), which has been the subject of negotiations between
the parties for purposes of constructing a mixed-use (market rate and affordable multi-family
residential and commercial) development and related parking, including a parking ramp serving
in part as a park and ride facility for Metro Transit’s proposed Southwest Light Rail Transit
Beltline station on certain property in the project (the “development”).
1.05. To facilitate the development of the development property, the authority and
Beltline Mixed Use LLC, a Delaware limited liability company and an affiliate of Beltline
Development (the “developer”), have negotiated a contract for private development (the
“agreement”) which provides for the construction by the developer on the development
property of (a) a building to include approximately 146 units of market rate housing with
approximately 96 underground parking spaces an affordable rental housing facility (the
“market-rate housing component”); (b) a building to include approximately 152 units of market
rate rental housing and approximately 18,200 rentable square feet of commercial space (the
“mixed-use component”); and (c) an approximately 571-space parking ramp with approximately
1,850 square feet of commercial space (including approximately 208 spaces to serve the mixed-
use component, approximately 95 spaces to serve the market-rate housing component, and
approximately 268 spaces to be dedicated as public transit park and ride spaces) and driver
restroom (the “parking ramp component,” and collectively with the market-rate housing
component and the mixed-use component, the “minimum improvements”). The Beltline
development entities and the authority previously entered into a contract for private
development relating to the construction of the affordable housing component of the
development.
1.06. Due to the costs of developing the minimum improvements, the developer has
requested certain financial assistance from the authority. To make the construction of the
minimum improvements economically feasible, the agreement provides that the authority will
issue separate tax increment revenue notes (individually, the “market-rate housing TIF note”
and the “mixed-use component TIF note,” and together, the “TIF notes”) to the Sherman
development entities. In addition, the authority will provide a grant in the maximum amount
of $1,554,000 from available TIF (the “authority TIF grant”) for the construction of the mixed-
use component as allowed under the spending plan.
1.07. As part of the development, the authority proposes to convey the property
legally described in Exhibit A attached hereto (the “authority parcels”) to the Beltline
development entities, and the Beltline development entities intend to acquire the authority
parcels for purposes of constructing the development.
1.08. To facilitate the development, the authority and Beltline Development entered
into a purchase agreement, dated July 7, 2022, as amended by a first amendment to purchase
agreement, dated December 5, 2022, and a second amendment to purchase agreement, dated
June 5, 2023 (as heretofore amended, the “original purchase agreement”), which provides for
the conveyance the authority parcels to the Beltline development entities, provided that
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 27
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
following closing on the conveyance and replatting of the development property certain rights
of way will be owned by the city.
1.09. Due to changes in market conditions since the execution of the original purchase
agreement, the costs of the development have increased. As such, the authority and Beltline
Development have negotiated and now propose to execute a third amendment to purchase
agreement (the “third amendment to purchase agreement”) to revise the land payment
structure set forth in the original purchase agreement. The authority proposes to sell the
authority property at the price of $3,390,001.00 of which $1.00 will be paid for the property
upon which an affordable housing development will be constructed (the “affordable parcel”)
and $3,390,000 will be paid for the property upon which the mixed-use and market-rate
housing components (the “mixed-use property”) will be constructed. The costs of the mixed-
use property will be paid from $3,000,000 from the Beltline development entities and the
delivery of a purchase price note (the “purchase price note”) in the amount of $390,000 which
will be repaid from pooled tax increment available to the authority.
1.10. As required by Minnesota Statutes, section 469.105, as amended, on July 17,
2023, the board conducted a duly noticed public hearing regarding the conveyance of the
authority parcels to beltline development and the Beltline development entities pursuant to the
original purchase agreement, as amended by the third amendment to purchase agreement
(together, the “purchase agreement”), at which all interested parties were given an opportunity to
be heard, and hereby finds that the execution of the third amendment to purchase agreement and
performance of the authority’s obligations under the purchase agreement, including the
conveyance of the authority parcels to beltline development and the beltline development
entities, are in the best interest of the city and its residents.
1.11. The authority and the city have previously established various tax increment financing
districts including Park Center Tax Increment Financing District, the Zarthan/16th Avenue Tax
Increment Financing District, Mill City Tax Increment Financing District, Park Commons Tax
Increment Financing District, Wolfe Lake Tax Increment Financing District, Aquila Commons –
Tax Increment Financing District, Elmwood Village Tax Increment Financing District, Highway 7
Corporate Center Tax Increment Financing District, West End Tax Increment Financing District,
Ellipse on Excelsior, Tax Increment Financing District, Hardcoat Tax Increment Financing District,
Eliot Park Tax Increment Financing District, The Shoreham Tax Increment Financing District, 4900
Excelsior Tax Increment Financing District, Elmwood Apartments Tax Increment Financing
District, Wooddale Station Tax Increment Financing District, Bridgewater Bank Tax Increment
Financing District, Parkway Residences Tax Increment Financing District, Texa Tonka Tax
Increment Financing District, Beltline Residences Tax Increment Financing District, Rise on 7 –
Housing Tax Increment Financing District, 9920 Wayzata Blvd Tax Increment Financing District,
Wooddale Ave. Apartments Tax Increment Financing District (collectively, the “pooled TIF
districts”) and adopted tax increment financing plans therefore. The authority intends to any
available pooled tax increment from one or more of the pooled TIF districts as designated by the
executive director (the “pooled TIF”) to repay the purchase price note.
1.12. In order to assist with the costs of the minimum improvements, the authority
applied for and received a grant in the amount $418,547, of which $283,547 (the “DEED grant”)
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 28
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
will be used for costs related to the minimum improvements, from the Minnesota Department
of Employment and Economic Development (“DEED”).
1.13. DEED and the authority entered into the Contamination Cleanup Grant Contract
Agreement No. CCGP-21-0022-Z-FY22 (the “DEED grant agreement”). Proceeds of the DEED
grant may be used for eligible project components of the minimum improvements (the “DEED
grant-eligible activities”) as described in the DEED grant agreement.
1.14. The authority intends to disburse the proceeds of the DEED grant to the
developer to provide financing for the DEED grant-eligible activities as set forth in the
agreement.
1.15. The mixed-use component TIF note, along with the portions of the authority TIF
grant, the DEED grant (as hereinafter defined) and the purchase price note allocable on a pro rata
basis to the mixed-use component, constitute a business subsidy (the “business subsidy”) pursuant
to Minnesota Statutes, sections 116j.993 to 116j.995, as amended (the “business subsidy act”).
The agreement includes an agreement whereby the developer will agree to meet certain goals
in connection with the business subsidy as required by the business subsidy act (the “business
subsidy agreement”).
1.16. As required by section 116J.994, subdivision 5 of the business subsidy act, on
July 17, 2023, the board conducted a duly noticed public hearing on the proposed business
subsidy to be provided to the developer. The views of all interested persons were heard and
considered at the public hearing.
1.17. In order to assist with the costs of the construction of the portion of the parking
ramp component containing 268 spaces to be dedicated as public transit park and ride spaces (the
“public transit parking tract”), the authority applied for and received a Congestion Mitigation
and Air Quality Contamination Cleanup grant in the amount $6,453,054 (the “CMAQ grant”)
from Metropolitan Council.
1.18. Metropolitan Council and the authority entered into a subrecipient agreement -
Beltline Blvd Station Park & Ride Project – METRO Green Line Light Rail Transit Extension -
Federal Congestion Mitigation and Air Quality (CMAQ) funding (the “original CMAQ grant
agreement”). Proceeds of the CMAQ grant may be used for eligible project components of the
minimum improvements (the “CMAQ grant-eligible activities”) as described in the original
CMAQ grant agreement.
1.19. The authority and Metropolitan Council have negotiated and now propose to
execute a first amendment to subrecipient agreement with respect to the CMAQ grant (the
“first amendment to CMAQ grant agreement”) to implement the construction of the public
transit parking tract and to update certain other provisions.
1.20. The authority intends to disburse the proceeds of the CMAQ grant to the
developer to provide financing for the CMAQ grant-eligible activities as set forth in the
agreement.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 29
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
1.21. Metropolitan Council and the authority entered into a cooperative construction
agreement, dated December 15, 2020, as amended by a first amendment to the cooperative
construction agreement, dated March 31, 2021 (as heretofore amended, the “original
cooperative construction agreement”), which described the responsibilities of Metropolitan
Council and the authority with respect to the construction of the public transit parking tract.
1.22. The authority and Metropolitan Council have negotiated and now propose to
execute amendment number two to the cooperative construction agreement (the “second
amendment to cooperative construction agreement”) to lay out the responsibilities of and to
reflect that the authority and the developer will enter into a partnership to cooperatively
implement the construction of the public transit parking tract and whereby the authority will
delegate the construction of the public transit parking tract to the Sherman development
entities.
1.23. The developer expects to receive one or more loans (the “NBC loan”) from
National Bank of Commerce, a national banking association (“National Bank of Commerce”), to
provide financing for the minimum improvements. In connection with the NBC loan, National
Bank of Commerce will require that the developer assign its interests in the TIF notes to
National Bank of Commerce.
1.24. The developer also expects to receive one or more loans (the “Bridgewater
loan”) from Bridgewater Bank, a Minnesota banking corporation (“Bridgewater Bank”), to
provide financing for the market-rate housing component and the mixed-use component. As a
condition to providing the Bridgewater loan, Bridgewater Bank will require that the authority
subordinate its rights, interests, and liens in the market-rate housing component and the
mixed-use component and the property on which such components will be constructed arising
under or pursuant to the agreement or the deed of such property to the interests and rights of
Bridgewater Bank under the documents executed in connection with the Bridgewater loan.
1.25. The developer previously acquired a portion of the property for the construction of
the parking ramp (the “Vision Bank parcel”) from a third party, and the authority financed a
portion of the acquisition cost of the Vision Bank parcel pursuant to a loan agreement between
the authority and developer, as subsequently amended (the “loan agreement”), pursuant to which
the authority loaned $3,100,000 (the “EDA loan”) to the developer to finance such acquisition as
evidenced by a promissory note, as subsequently amended(the “note”) and secured by a
mortgage, as subsequently amended (the “mortgage”).
Section 2. Findings for authority TIF grant and business subsidy.
2.01. The board hereby finds that the mixed-Use component is a qualified project
because:
(a) the mixed-use component will create and retain jobs in the state;
(b) construction on the mixed-use component will commence in 2023 and
requires financial assistance to make the project financially feasible. the developer has
represented that the mixed-use component would not be economically feasible within
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 30
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
the reasonably foreseeable future and would not have commenced construction before
December 31, 2025 if the developer does not receive the authority TIF grant;
(c) the construction of the mixed-use component would not have
commenced before December 31, 2025 without the authority TIF grant and there is a
significant need for construction of mixed-use component to commence prior to such
date so that the mixed-use component is completed prior to the commencement of
service by light rail transit and to provide additional housing options in the city of which
there is a significant need; and
(d) the available TIF for the mixed-use component will be spent under the
spending plan by December 31, 2025.
2.02 The board further finds that the authority TIF grant meets the spending plan goal
of providing financial assistance to advance construction of the development is authorized
pursuant to the spending plan and Minnesota Statutes, section 469.176, Subd. 4n.
2.03. After a public hearing held by the board on the date hereof, the board hereby
determines that the public purposes of the proposed mixed-use component include creating a
mixed-use transit oriented development, helping spur development along the light rail,
eliminate blight and blighting factors in the city, increasing the tax base in the city, and
stimulating construction and construction jobs, and that the creation or retention of jobs is not
a goal of the proposed development. Therefore, the wage and job goals may be set at zero in
the agreement in accordance with the business subsidy act.
Section 3. Approval of documents and conveyance of authority parcels.
3.01. The board approves the third amendment to purchase agreement in
substantially the form presented to the board, together with any related documents necessary
in connection therewith, including without limitation all documents, exhibits, certifications, or
consents referenced in or attached to the third amendment to purchase agreement including
without limitation quit claim deeds and any documents required by the title company relating
to the conveyance of the authority parcels (the “conveyance documents”). The board hereby
approves the conveyance of the authority parcels to the beltline developer entities, or an entity
affiliated therewith, in accordance with the terms of the third amendment to purchase
agreement. Following closing on the conveyance and replatting of the development property,
certain rights of way will be owned by the city.
3.02. The board hereby approves the agreement, the first amendment to CMAQ
agreement and the second amendment to cooperative construction agreement, including the
business subsidy agreement, in substantially the forms presented to the board, together with any
related documents necessary in connection therewith, including without limitation all documents,
exhibits, certifications, or consents referenced in or attached to the agreement, including without
limitation the assessment agreements (as defined in the agreement) and a release of the mortgage
relating to the EDA loan, (collectively, the “assistance documents”). In addition, forms of the
following documents related to the NBC loan and the Bridgewater loan are on file with the
authority (the “additional lender documents,” and collectively with the conveyance documents
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 31
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
and the assistance documents, the “development documents”): (i) an assignment of tax
increment financing and subordination agreement between the developer, National Bank of
Commerce, and the authority; and (ii) a subordination agreement (development agreement)
between the authority and Bridgewater Bank.
3.03. The board hereby authorizes the president and executive director, in their
discretion and at such time, if any, as they may deem appropriate, to execute the development
documents on behalf of the authority, and to carry out, on behalf of the authority, the authority’s
obligations thereunder when all conditions precedent thereto have been satisfied. The
development documents shall be in substantially the forms on file with the authority and the
approval hereby given to the development documents includes approval of such additional details
therein as may be necessary and appropriate and such modifications thereof, deletions therefrom
and additions thereto as may be necessary and appropriate and approved by legal counsel to the
authority and by the officers authorized herein to execute said documents prior to their execution;
and said officers are hereby authorized to approve said changes on behalf of the authority. The
execution of any instrument by the appropriate officers of the authority herein authorized shall be
conclusive evidence of the approval of such document in accordance with the terms hereof. This
resolution shall not constitute an offer and the development documents shall not be effective until
the date of execution thereof as provided herein.
3.04. In the event of absence or disability of the officers, any of the documents
authorized by this resolution to be executed may be executed without further act or authorization
of the board by any duly designated acting official, or by such other officer or officers of the board
as, in the opinion of the city attorney, may act in their behalf. Upon execution and delivery of the
development documents, the officers and employees of the board are hereby authorized and
directed to take or cause to be taken such actions as may be necessary on behalf of the board to
implement the development documents, including without limitation the issuance of tax
increment revenue obligations thereunder when all conditions precedent thereto have been
satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. In
addition, the board hereby delegates to the executive director the authority to undertake all
actions necessary to enter into a partnership with the beltline development entities for the
construction of the public transit parking tract as contemplated by the agreement and the
cooperative construction agreement including but not limited to approving changes to project
scope of work, contract bid documents, construction documents, change orders, or construction
change directive under the parking ramp construction contract that may impact the public transit
parking tract.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 32
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Section 4 Issuance, sale, and terms of the TIF notes; pooled TIF; forgiveness of EDA
loan.
4.01. The authority hereby authorizes the president and executive director to issue the
market-rate housing component TIF note and the mixed-use component TIF note in accordance
with the agreement. At the time of consideration of this resolution, the authority, based on
advice from its municipal advisor, estimates that the market-rate housing component TIF note will
be issued in the estimated maximum principal amount of $5,088,472 and that the mixed-use
component TIF note will be issued in the estimated maximum principal amount of $5,751,076
subject to final adjustment by the executive director upon the determination of a final interest
rate on the developer’s financing. All capitalized terms in this resolution have the meaning
provided in the agreement unless the context requires otherwise.
4.02. The market-rate housing component TIF note shall be issued to the developer in
consideration of certain eligible costs incurred by the developer in connection with construction of
the market-rate housing component under the agreement. The market-rate housing component
TIF note shall be dated the date of delivery thereof, and shall bear interest at the rate set forth
therein subject to adjustment upon the determination of the final rate on the developer’s
financing, from the date of issue to the earlier of maturity or prepayment. The market-rate
housing component TIF note will be issued in the principal amount of public development costs for
the market-rate housing component submitted and approved in accordance with section 3.4(b) of
the agreement. The market-rate housing component TIF note is secured by market-rate housing
component available tax increment, as further described in the form of the market-rate housing
component TIF note. The authority hereby delegates to the executive director the authority to
determine the date on which the market-rate housing component TIF note is to be delivered, in
accordance with the agreement.
4.03. The mixed-use component TIF note shall be issued to the developer in
consideration of certain eligible costs incurred by the developer in connection with construction of
the mixed-use component under the agreement. The mixed-use component TIF note shall be
dated the date of delivery thereof, and shall bear interest at the rate set forth therein subject to
adjustment upon the determination of the final rate on the developer’s financing, from the date of
issue to the earlier of maturity or prepayment. The mixed-use component TIF note will be issued
in the principal amount of public development costs for the mixed-use component submitted and
approved in accordance with section 3.4(c) of the agreement. The mixed-use component TIF note
is secured by mixed-use component available tax increment, as further described in the form of
the mixed-use component TIF note. The authority hereby delegates to the executive director the
authority to determine the date on which the mixed-use component TIF note is to be delivered, in
accordance with the agreement. The authority hereby appoints the finance director of the city to
perform the functions of registrar, transfer agent and paying agent for the TIF notes (the
“registrar”).
4.04. The authority hereby authorizes and approves the use of pooled TIF to repay the
purchase price note in accordance with the agreement.
4.05. The authority hereby authorizes the forgiveness of the outstanding balance of
principal of and interest on the EDA loan and the EDA authorizes the use of pooled TIF to repay the
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 33
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
outstanding balance in accordance with an interfund loan resolution adopted on April 1, 2019, as
amended on the date hereof.
Section 5. Forms of TIF notes. The TIF notes shall be in substantially the form attached
as an exhibit to the agreement, with the blanks to be properly filled in, interest rates and the
principal amount adjusted as of the date of issue.
Section 6. Terms, execution and delivery of TIF note.
6.01. Denomination, payment. The TIF notes shall each be issued as a single typewritten
note numbered r-1. The TIF notes shall be issuable only in fully registered form. Principal of and
interest on the TIF notes shall be payable by check or draft issued by the registrar described
herein.
6.02. Dates; interest payment dates. Principal of and interest on the TIF notes shall be
payable in accordance with their terms and the agreement.
6.03. Registration. The effect of registration and the rights and duties of the authority
and the registrar with respect thereto shall be as follows:
(a) Register. The registrar shall keep at its office a bond register in which the registrar
shall provide for the registration of ownership of the TIF notes and the registration of transfers and
exchanges of the TIF notes.
(b) Transfer of TIF notes. The TIF notes may only be transferred as set forth in the
agreement and forms of the TIF notes.
(c) Cancellation. The TIF note surrendered upon any transfer shall be promptly
cancelled by the registrar and thereafter disposed of as directed by the authority.
(d) Improper or unauthorized transfer. When either of the TIF notes are presented to
the registrar for transfer, the registrar may refuse to transfer the same until it is satisfied that the
endorsement on the TIF notes or separate instrument of transfer is legally authorized. The
registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its
judgment, deems improper or unauthorized.
(e) Persons deemed owners. The authority and the registrar may treat the person in
whose name the TIF notes are at any time registered in the bond register as the absolute owner of
such TIF note, whether the applicable TIF note shall be overdue or not, for the purpose of receiving
payment of, or on account of, the principal of and interest on the applicable TIF note and for all
other purposes, and all such payments so made to any such registered owner or upon the owner’s
order shall be valid and effectual to satisfy and discharge the liability of the authority upon the
applicable TIF note to the extent of the sum or sums so paid.
(f) Taxes, fees and charges. For every transfer or exchange of either of the TIF notes,
the registrar may impose a charge upon the owner thereof sufficient to reimburse the registrar for
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 34
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
any tax, fee, or other governmental charge required to be paid with respect to such transfer or
exchange.
(g) Mutilated, lost, stolen or destroyed TIF note. In case either of the TIF notes shall
become mutilated or be lost, stolen, or destroyed, the registrar shall deliver a new TIF note of like
amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such
mutilated TIF note or in lieu of and in substitution for the applicable TIF note lost, stolen, or
destroyed, upon the payment of the reasonable expenses and charges of the registrar in
connection therewith; and, in the case the TIF note lost, stolen, or destroyed, upon filing with the
registrar of evidence satisfactory to it that the respective TIF note was lost, stolen, or destroyed,
and of the ownership thereof, and upon furnishing to the registrar of an appropriate bond or
indemnity in form, substance, and amount satisfactory to it, in which both the authority and the
registrar shall be named as obligees. The TIF note so surrendered to the registrar shall be
cancelled by it and evidence of such cancellation shall be given to the authority. If the mutilated,
lost, stolen, or destroyed respective TIF note has already matured or been called for redemption in
accordance with its terms, it shall not be necessary to issue a new TIF note prior to payment.
6.04. Preparation and delivery. The TIF notes shall be prepared under the direction of
the executive director and shall be executed on behalf of the authority by the signatures of its
president and executive director. In case any officer whose signature shall appear on either of the
TIF notes shall cease to be such officer before the delivery of the applicable TIF note, such
signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had
remained in office until delivery. When the applicable TIF note has been so executed, it shall be
delivered by the executive director to the developer thereof in accordance with the agreement.
section 7. Security provisions for the TIF notes.
7.01. Pledge. The authority hereby pledges to the payment of the principal of and
interest on the market-rate housing component TIF note all market-rate housing component
available tax increment as defined in the market-rate housing component TIF note. Market-rate
housing component available tax increment shall be applied to payment of the principal of and
interest on the market-rate housing component TIF note in accordance with the terms of the form
of the market-rate housing component TIF note. The authority hereby pledges to the payment of
the principal of and interest on the mixed-use component TIF note all mixed-use component
available tax increment as defined in the mixed-use component TIF note. Mixed-use component
available tax increment shall be applied to payment of the principal of and interest on the mixed-
use component TIF note in accordance with the terms of the form of the mixed-use component
TIF note.
7.02. Bond Funds. Until the date the market-rate housing component TIF note is no
longer outstanding and no principal thereof or interest thereon (to the extent required to be paid
pursuant to this resolution) remains unpaid, the authority shall maintain a separate and special
“market-rate housing bond fund” to be used for no purpose other than the payment of the
principal of and interest on the market-rate housing component TIF note. The authority
irrevocably agrees to appropriate to the market-rate housing bond fund on or before each
payment date the market-rate housing component available tax increment in an amount equal to
the payment then due, or the actual market-rate housing component available tax increment,
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 35
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
whichever is less. Any market-rate housing component available tax increment remaining in the
market-rate housing bond fund shall be transferred to the authority’s account for the TIF district
upon the termination of the market-rate housing component TIF note in accordance with its
terms. Until the date the mixed-use component TIF note is no longer outstanding and no principal
thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains
unpaid, the authority shall maintain a separate and special “mixed-use bond fund” to be used for
no purpose other than the payment of the principal of and interest on the mixed-use component
TIF note. The authority irrevocably agrees to appropriate to the mixed-use bond fund on or before
each payment date the mixed-use component available tax increment in an amount equal to the
payment then due, or the actual mixed-use component available tax increment, whichever is less.
Any mixed-use component available tax increment remaining in the mixed-use bond fund shall be
transferred to the authority’s account for the TIF district upon the termination of the mixed-use
component TIF note in accordance with its terms.
Section 8. Certification of proceedings. The officers of the authority are hereby
authorized and directed to prepare and furnish to the developer of the TIF notes certified copies of
all proceedings and records of the authority, and such other affidavits, certificates, and
information as may be required to show the facts relating to the legality of the TIF notes as the
same appear from the books and records under their custody and control or as otherwise known
to them, and all such certified copies, certificates, and affidavits, including any heretofore
furnished, shall be deemed representations of the authority as to the facts recited therein.
Section 9. Effective Date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the Economic Development
Authority July 24, 2023
Karen Barton, executive director Nadia Mohamed, president
Attest
Melissa Kennedy, secretary
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 36
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Exhibit A
Description of Authority parcels
The authority parcels consist of the portion of a 6.6-acre site at the southeast corner of CSAH
25 and Beltline Boulevard in the City. Authority parcels are legally described as follows, a
portion of which will be replatted as Lots 1, 2,3 and part of Lot 4, Block 1, Beltline Station,
according to the recorded plat thereof, Hennepin County, Minnesota:
Lots 12, 13, 14, 15, and 16, Block 2;
That part of Lots 10, 11, 17 and 18, Block 2, lying South of the Southerly right-of-way line
of State Trunk Highway No. 7;
All of the vacated alley in Block 2 lying South of the Southerly right-of-way line of State
Trunk Highway No. 7; That part of Natchez Avenue vacated, lying east of the West line
of the Northwest Quarter of the Northeast Quarter of Section 6, Township 28, Range 24,
North of the South line of said Northwest Quarter of the Northeast Quarter, and South
of the Southerly right-of-way line of State Trunk Highway No. 7; That part of West 32nd
Street, vacated, lying between the extensions across it of the East line of Lot 14 and the
West line of Lot 15, Block 2;
All in "Oakenwald Addition St. Louis Park," Hennepin County, Minnesota;
That part of vacated Monterey Avenue (formerly Oakenwald Avenue as shown on the
plat of "OAKENWALD ADDITION ST. LOUIS PARK," lying North of the South line of the
Northwest Quarter of the Northeast Quarter, Section 6, Township 28, Range 24 and
south of the Easterly extension of the North line of Lot 10, Block 2, "OAKENWALD
ADDITION ST. LOUIS PARK".
AND
That part of the Southwest Quarter of the Northeast Quarter, Section 6, Township 28,
Range 24, Hennepin County, Minnesota described as beginning at the Northwest corner
of said Southwest Quarter of the Northeast Quarter; thence South along the West line
thereof 288.7 feet; thence East to a point on the Northerly right-of-way line of the
Minneapolis and St. Louis Railway Company, distant 46 feet from the intersection of said
right-of-way line with the West line of said Southwest Quarter of the Northeast Quarter
as measured along said right-of-way line; thence Northeasterly along said Northerly
right-of-way line to its intersection with the extension South of the East line of
Monterey Avenue; thence North along the extension of the East line of Monterey
Avenue to the North line of said Southwest Quarter of the Northeast Quarter; thence
West along said North line to the point of beginning.
Lot 17, Block 1, “Lewiston Park, Hennepin Co. Minn.”
And
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 37
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Lot 1, 2, 3, 4, 13, 14, 15 and 16, Block 1, “Lewiston Park, Hennepin Co. Minn.”, except that part of said Lots
described as follows:
Commencing at the Southeast corner of said Lot 4; thence Westerly along the South line of said Lot 4, a
distance of 6.00 feet to the point of beginning of the tract of land to be described; thence North 00 degrees
19 minutes 53 seconds East, assumed bearing, parallel with the East line of Lots 5 and 6, said Block 1, a
distance of 114.27 feet; thence Northwesterly along a tangential curve to the left having a radius of 15.00
feet and a central angle of 61 degrees 46 minutes 23 seconds, a distance of 16.17 feet; thence North 61
degrees 26 minutes 30 seconds West, tangent to said curve, a distance of 40.60 feet; thence Westerly
along a tangential curve to the left, having a radius of 24.00 feet and a central angle of 76 degrees 35
minutes 00 seconds, a distance of 32.08 feet; thence Southwesterly along a reverse curve to the right,
having a radius of 361.58 feet and a central angle of 26 degrees 53 minutes 32 seconds, a distance 169.71
feet; thence South 43 degrees 00 minutes 19 seconds, West, not tangent to said curve, a distance of 71.07
feet to the intersection with a line distant 46.00 feet Easterly of as measured at a right angle to and parallel
with hereinafter described “Line A”; thence Southerly along said parallel line, a distance of 26.00 feet to
the South line of said Lot 13; thence Easterly along said South line and the easterly extension thereof, a
distance of 128.10 feet to the centerline of alley; thence Northerly along the centerline of said Alley, a
distance of 32.65 feet to the intersection with the westerly extension of the South line of said Lot 4; thence
Easterly along said Westerly extension and along the South line of said Lot 4, a distance of 130.61 feet to
the point of beginning.
Said “Line A” is described as follows:
Commencing at the most Southerly corner of Lot 1, Block 1 BELT LINE INDUSTRIAL PARK 2ND ADDITION,
thence South 59 degrees 15 minutes 24 seconds East of an assumed bearing along the Southeasterly
extension of the Southwesterly line of said Lot 1 a distance of 40.00 feet to the point of beginning of said
line; thence North 30 degrees 44 minutes 36 seconds East 112.38 feet; thence Northerly 768.57 feet along
a tangential curve concave to the West having a radius of 785.30 feet and a central angle of 56 degrees
04 minutes 30 seconds; thence North 25 degrees 19 minutes 54 seconds West, tangent to last described
curve 180.04 feet; thence Northerly 589.17 feet along a tangential curve concave to the East having a
radius of 1268.10 feet a central angle of 26 degrees 37 minutes 12 seconds, said line there terminating.
AND
That part of West 32nd Street, vacated, lying southerly of the centerline thereof, westerly of the northerly
extension of the east line of Lot 1, Block 1, Lewiston Park, and easterly of a line described as follows:
Commencing at the north quarter corner of Section 6, Township 28, Range 24; thence South 00 degrees
26 minutes 06 seconds West, assumed bearing along the north-south quarter line of said Section 6, a
distance of 1092.89 feet; thence South 73 degrees 14 minutes 47 seconds West 10.28 feet; thence
southwesterly 220.70 feet along a non-tangential curve concave to the northwest having a radius of
5802.14 feet, a central angle of 02 degrees 10 minutes 46 seconds, and a chord bearing of South 70
degrees 30 minutes 32 seconds West; thence South 67 degrees 02 minutes 58 seconds West, not tangent
to said curve, 65.29 feet to the point of beginning of the line to be described; thence South 00 degrees 20
minutes 22 seconds East 298.91 feet, and said line there terminating.
That part of Natchez Avenue, vacated, lying southerly of the centerline of West 32nd Street, northerly of
the south line of Lot 4, Block 1, Lewiston Park, extended easterly, and west of the West line of the
Southwest Quarter of the Northeast Quarter of Section 6, Township 28, Range 24.
AND
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 38
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
That part of the vacated Alley in Block 1, Lewiston Park, lying southerly of West 32nd Street and northerly
of Lot 1, Block 1, BROOKS MCCRACKEN INDUSTRIAL PARK.
Torrens Property - Certificate Title No. 697371
Lots 12, 13, 14, 15 and 16, Block 2, “Mazey & Langan’s Addition To St. Louis Park,” Hennepin County,
Minnesota.
That part of Natchez Avenue, vacated, as dedicated in the plat “Mazey & Langan’s Addition To St. Louis
Park”, lying northerly of the centerline of West 32nd Street, southerly of a line described as follows:
Commencing at the north quarter corner of Section 6, Township 28, Range 24; thence South 00 degrees
26 minutes 06 seconds West, assumed bearing along the north-south quarter line of said Section 6, a
distance of 1092.89 feet to the point of beginning of the line to be described; thence South 73 degrees 14
minutes 47 seconds West 10.28 feet; thence southwesterly 220.70 feet along a non-tangential curve
concave to the northwest, having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes 46
seconds and a chord bearing of South 70 degrees 30 minutes 32 seconds West, and said line there
terminating; and west of the West line of the Northwest Quarter of the Northeast Quarter of Section 6,
Township 28, Range 24.
That part of West 32nd Street, vacated, as dedicated in the plat “Mazey & Langan’s Addition To St. Louis
Park”, that lies westerly of the southerly extension of the east line of Lot 14 in said plat, and easterly of
the following described line: Commencing at the north quarter corner of Section 6, Township 28, Range
24; thence South 00 degrees 26 minutes 06 seconds West, assumed bearing along the north-south quarter
line of said Section 6, a distance of 1092.89 feet; thence South 73 degrees 14 minutes 47 seconds West
10.28 feet; thence southwesterly 220.70 feet along a non-tangential curve concave to the northwest,
having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes 46 seconds and a chord bearing
of South 70 degrees 30 minutes 32 seconds West; thence South 67 degrees 02 minutes 58 seconds West,
not tangent to said curve, 65.29 feet to the point of beginning of the line to be described; thence South
00 degrees 20 minutes 22 seconds East 298.91 feet, and said line there terminating.
That part of the vacated alley in Block 2 of “Mazey & Langan’s Addition To St. Louis Park”, lying northerly
of West 32nd Street and Southerly of a line described as follows: Commencing at the north quarter corner
of Section 6, Township 28, Range 24; thence South 00 degrees 26 minutes 06 seconds West, assumed
bearing along the north-south quarter line of said Section 6, a distance of 1092.89 feet to the point of
beginning of the line to be described; thence South 73 degrees 14 minutes 47 seconds West 10.28 feet;
thence southwesterly 220.70 feet along a non-tangential curve concave to the northwest, having a radius
of 5802.14 feet, a central angle of 02 degrees 10 minutes 46 seconds and a chord bearing of South 70
degrees 30 minutes 32 seconds West, and said line there terminating.
Torrens Property – Certificate of Possessory Title No. 1551814.
The east 37 feet of Lot 4, Block 1, DALQUIST INDUSTRIAL PARK, according to the recorded plat thereof,
Hennepin County, Minnesota, as measured at a right angle to and parallel with the East line of said Lot 4.
Torrens Property – Certificate of Possessory Title No. 1546511.
Lots 9 and 19, Block 2;
Those parts of Lots 10, 11, 17, 18, Block 2, lying north of the southerly right-of-way line of State Trunk
Highway No. 7;
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 39
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
That part of Natchez Avenue vacated, lying east of the West line of the Northwest Quarter of the
Northeast Quarter of Section 6, Township 28, Range 24, north of the southerly right-of-way line of State
Trunk Highway No. 7, and southerly of a line hereinafter referred to as Line 1;
That part of the vacated alley in Block 2 lying north of the southerly right-of-way line of State Trunk
Highway No. 7, and southerly of the aforementioned Line 1.
All in “OAKENWALD ADDITION ST. LOUIS PARK”.
Line 1 is described as commencing at the north quarter corner of Section 6, Township 28, Range 24; thence
South 00 degrees 26 minutes 06 seconds West, assumed bearing along the north-south quarter line of
said Section 6, a distance of 1092.89 feet to the point of beginning; thence North 73 degrees 14 minutes
47 seconds East 51.97 feet; thence northeasterly 174.11 feet along a non-tangential curve concave to the
northwest, having a radius of 5790.08 feet, a central angle of 01 degrees 43 minutes 22 seconds, and a
chord bearing of North 67 degrees 56 minutes 18 seconds East, and said line there terminating.
Torrens Property – Certificate of Possessory Title No. 1553644.
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 40
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
EDA Resolution No. 23-______
Resolution amending EDA Resolution No. 13-16 and EDA Resolution
No. 19-04 relating to interfund loans for advances of certain costs in
connection with the Beltline Station development
Be it resolved by the board of commissioners (the “board”) of the St. Louis Park
Economic Development Authority (the authority”) as follows:
Section 1. Recitals.
1.01. On November 18, 2013, the board adopted EDA Resolution No. 13-16 (the “2013
interfund loan resolution”), which approved an interfund loan under section 469.178,
subdivision 7 of the TIF Act in the amount of $2,850,000 (the “2013 interfund loan”) to pay for
certain costs of the project consisting of land acquisition, public improvements, including but
not limited to design and planning costs and interest, and for administrative expenses, including
but not limited to fees of attorney and financial advisors, and interest (the “2013 qualified
costs”).
1.02. On April 1, 2019, the board adopted EDA Resolution No. 19-04 (the “2019
interfund loan resolution”), which approved an interfund loan under section 469.178,
subdivision 7 of the TIF Act in the amount of $3,125,000 (the “2019 interfund loan”) to pay for
certain costs of the project consisting of land acquisition (in the amount of $3,100,000) and
administrative costs (in the amount of $25,000) (collectively, the “2019 qualified costs”).
1.03. Pursuant to the 2013 interfund loan resolution and the 2019 interfund loan
resolution, both the 2013 interfund loan and the 2019 interfund loan are payable from
available tax increments as defined therein.
1.04. The authority has previously established various tax increment financing districts
including the Park Center Tax Increment Financing District, the Zarthan/16th Avenue Tax
Increment Financing District, Mill City Tax Increment Financing District, Park Commons Tax
Increment Financing District, Wolfe Lake Tax Increment Financing District, Aquila Commons –
Tax Increment Financing District, Elmwood Village Tax Increment Financing District, Highway 7
Corporate Center Tax Increment Financing District, West End Tax Increment Financing District,
Ellipse on Excelsior, Tax Increment Financing District, Hardcoat Tax Increment Financing District,
Eliot Park Tax Increment Financing District, The Shoreham Tax Increment Financing District,
4900 Excelsior Tax Increment Financing District, Elmwood Apartments Tax Increment Financing
District, Wooddale Station Tax Increment Financing District, Bridgewater Bank Tax Increment
Financing District, Parkway Residences Tax Increment Financing District, Texa Tonka Tax
Increment Financing District, Beltline Residences Tax Increment Financing District, Rise on 7 –
Housing Tax Increment Financing District, 9920 Wayzata Blvd Tax Increment Financing District,
Wooddale Ave. Apartments Tax Increment Financing District (collectively, the “pooled TIF
districts”).
1.05. The EDA has determined to amend the 2013 interfund loan resolution and the
2019 interfund loan resolution to allow the 2013 interfund loan and the 2019 interfund loan to
be repayable from any pooled tax increment that may be available from the pooled TIF districts
(the “pooled TIF”).
Economic development authority meeting of July 24, 2023 (Item No. 4a) Page 41
Title: Contract for private redevelopment and amendment to purchase agreement with Sherman Associates
related to the Beltline Station market rate components - Ward 1
Section 2. Approvals.
2.01. The 2013 interfund loan resolution is hereby amended to provide that the 2013
interfund loan used to pay the 2013 qualified costs shall be repayable from both the available
tax increments as defined therein and pooled TIF.
2.02. The 2019 interfund loan resolution is hereby amended to provide that the 2019
interfund loan used to pay the 2019 qualified costs shall be repayable from both the available
tax increments as defined therein and pooled TIF.
2.03. Unless otherwise amended by this resolution, the 2013 interfund loan resolution
and the 2019 interfund loan resolution are ratified and shall remain in full force and effect.
2.04. Authority staff is authorized to take all actions necessary to implement this
resolution.
Section 3. Effective date. This resolution shall be in full force and effect following its
adoption.
Reviewed for administration: Adopted by the Economic Development
Authority July 24, 2023
Karen Barton, executive director Nadia Mohamed, president
Attest
Melissa Kennedy, secretary
Meeting: Special city council
Meeting date: July 24, 2023
Minutes: 4a
Unofficial minutes
City council study session
St. Louis Park, Minnesota
June 5, 2023
The meeting convened at 7:21 p.m.
Councilmembers present: Mayor Pro Tem Nadia Mohamed, Tim Brausen, Sue Budd, Yolanda
Farris, Lynette Dumalag, and Margaret Rog
Councilmembers absent: Mayor Jake Spano
Staff present: City manager (Ms. Keller), deputy city manager (Ms. Walsh), community
development director (Ms. Barton), economic development manager (Mr. Hunt), public services
superintendent/deputy public works director (Ms. Fisher), finance director, (Ms. Cruver)
Guests: Stacie Kvilvang, senior municipal advisor, Ehlers & Associates
1. Enhanced TIF 101.
Ms. Kvilvang presented the report.
Councilmember Dumalag asked about the districts and noted the Elmwood example which
funded the public infrastructure. She asked when closing housing districts, do they consider not
taking on additional debt. Ms. Kvilvang stated the benefit is they can be used for local projects.
This helps set up where the budget should be and look at TIF to reduce total tax dollars.
Councilmember Budd asked about pooled TIF. Ms. Kvilvang stated in redevelopment, when the
obligation is paid off, the district must be decertified. She added if this is kept open for affordable
housing, 35% can be collected for affordable housing. She stated if the housing obligation is done
in 10 years it can be kept open for 16 years, to collect the TIF, with a 26-year statutory maximum,
and for flexibility for future councils, to be able to do what they want with the funds.
Councilmember Rog asked what triggers an inclusionary housing policy. Ms. Barton stated if
someone requests a PUD rezoning or a Comp Plan Amendment that increases density. Any kind
of public assistance request triggers the affordable housing policy. Councilmember Rog asked
how often this occurs. Ms. Barton stated with redevelopment in St. Louis Park, PUDs are
requested frequently to get things to fit.
Councilmember Rog asked if the city would gain the same affordability benefits in most cases.
Ms. Barton stated adding more affordable units into a pro forma makes the project more
expensive, so the developer comes back to the city asking for financial assistance.
Councilmember Rog stated her concern is developers have come to expect and assume TIF
agreements as part of their financing package and in bigger amounts. Councilmember Rog added
she has always had concerns about the “but-for” clause and someone decided if a development
would be built, and if the city stood down more often or had a different approach to TIF as a
Special city council meeting of July 24, 2023 (Item No. 4a) Page 2
Title: City council study session minutes of June 5, 2023
community, we would still see development occurring in St. Louis Park because people want to
live here and there are many reasons to do development here.
Councilmember Rog noted police and fire and other public services that are here, we do not
require additional taxes to provide these services among others, and the existing community is
left to absorb those costs. She added if more is tied up in TIF, she is concerned about the burden
growing for these residents.
Councilmember Brausen stated council is not being asked to make any policy decisions at this
time. He added districts will decertify and most of the infrastructure with new developments is
put in by the developer. He added he doesn’t see a big cost for public safety, and ultimately
everyone benefits from TIF as a reinvestment in our community and getting what we want with
affordable housing units. He stated that to presume developers will put affordable housing in the
city without TIF is a bit presumptuous. He added staff does an analysis and developers do have a
gap in their finances, so TIF is needed in these cases.
Councilmember Dumalag said non-profit developers can always exit a project, so it is not a one-
for one as non-profit can’t recoup their return as they most likely won’t sell, adding that is not in
their mission. She stated she thinks of TIF as a cost benefit.
Mayor Pro Tem Mohamed stated she agrees both with Councilmembers Brausen’s and Rog’s
points, adding she looks at TIF as a way to be more selective and focus on the 30% AMI, the truly
affordable housing projects. She added expressing where each councilmember falls related to TIF
is acceptable for tonight.
Councilmember Rog added she knows this is not a policy discussion but appreciates the
opportunity to use her voice. She stated Ms. Kvilvang does a great job of promoting TIF, but there
are different perspectives around TIF and whether it is beneficial and what the unintended
consequences are is a voice she wants to be included in these discussions. She stated the city has
one of the highest tax capacities tied up in TIF of any city in the state, and a higher percentage
than Minneapolis and St. Paul. She stated this alone warrants discussing further and thinking
outside the box.
Councilmember Brausen added this is a good discussion to have each year, pointing out
decertifying districts will also need to be reviewed and it makes sense to have as much knowledge
as possible. He added Minneapolis is very behind on their goals for affordable housing where St.
Louis Park has been very successful in this area.
Mayor Pro Tem Mohamed noted Mayor Spano’s email sent about the discussion, and his
appreciation for the information and where the discussion will go.
Councilmember Budd asked about returned increment and asked if there are only 2 districts
returning funds. Ms. Kvilvang stated that was the 2022 report and noted these were planned
returned dollars and potentially there could be more. She added the amount returned is the
returned funds in a calendar year to the county for redistribution, which goes back into the
general fund and is unrestricted.
Special city council meeting of July 24, 2023 (Item No. 4a) Page 3
Title: City council study session minutes of June 5, 2023
Councilmember Budd asked if a developer sells property what happens to the TIF. Ms. Kvilvang
stated all agreements have look-back statements in them, which is done at the time of qualified
costs and once the note is issued, and they are occupied at 95%, the returns are where they
should be, then TIF transfers to someone else, if property is sold.
Mr. Hunt explained the process staff goes through with testing the look-back statements.
2. Discuss yard waste proposals.
Ms. Fisher presented the staff report, noting the city’s current contract will expire on Sept. 30,
2023.
Councilmember Brausen asked who is providing services under the current contract. Ms. Fisher
stated Waste Management currently has a group collecting yard waste.
Councilmember Rog asked about the every-other-week collection option in summer. She asked
why the cost of $38,000 over 5 years is so low. Ms. Fisher stated it is not common for yard waste
to be collected every other week and the prices reflects the contractor’s need to cover their costs
to collect across smaller geographic areas in the city.
Councilmember Rog asked about vehicle miles traveled and noted that 60% of respondents were
either in favor of every-other-week collection or neutral. Ms. Fisher clarified that 24% of
respondents were in favor and 45% were neutral. Councilmember Rog confirmed that only 31%
of respondents wanted weekly pick up, and that is worth noting in terms of resident expectations.
Ms. Fisher added based on previous surveys and experience with every-other-week garbage
collection, residents expect a reduction in rates, but the cost savings would be minimal.
Councilmember Dumalag stated residents call her to say their yard waste has not been picked
up. She stated it’s best to do this every-other-week and she is supportive of both policy questions
and staff recommendations.
Councilmember Budd stated this is a 300% increase. Ms. Fisher stated yes, and the contract rates
are part of the overall cost. Councilmember Budd stated if the city does move to every-other-
week, residents would expect to see a reduction in cost. While that won’t be the case, it also
won’t be a significant increase. She stated for that reason she will support both policy questions.
Councilmember Brausen stated he has environmental concerns about sending these collection
vehicles through neighborhoods every week. He is not pleased that residents claim to need
weekly service when, for the average household, every-other-week collection could be sufficient.
He added he appreciates all the work staff has done but is frustrated by the situation with the
opt-in option costing almost $10 more per resident, per month. He stated that is a $120/year
increase for residents. He stated he is conflicted on option 1A or 1B and noted it feels
contradictory with allowing the additional vehicles to enter neighborhoods.
Special city council meeting of July 24, 2023 (Item No. 4a) Page 4
Title: City council study session minutes of June 5, 2023
Councilmember Rog is supportive of the hauler as well. She added staff needs to look at vehicle
miles traveled as a data point so council can evaluate those impacts, especially considering the
city’s climate action plan.
Councilmember Farris stated she will support both options.
Mayor Pro Tem Mohamed added she also will support both options. She noted the conflict
brought up by both Councilmembers Rog and Brausen related to climate in option #2. She asked
if council is interested in having this discussion.
Ms. Keller stated 5 have said to move forward on negotiating the contract. She added the council
also stated they would like to model the impacts of these decisions on environment.
3. Consider study session topic proposal.
Councilmember Rog asked if council is supportive of the topic proposal as presented.
The councilmembers indicated they are supportive of exploring this topic further.
Councilmember Rog stated she supports and sees value in the Human Rights Commission (HRC)
looking into this first to help inform the discussion, as was also suggested by Mayor Spano.
Ms. Keller stated that is valuable, but she has concerns about timing as staff is looking to engage
with HRC on the neighborhood grant program this summer. She wants to first see if they have
capacity to engage on both projects this summer. She stated if council can be flexible on
timelines, depending on HRC’s capacity, that would be helpful.
Councilmember Brausen asked about the scope of this issue and if it relates to big grocers or
others for inclusion in staff reports.
Ms. Keller stated if council wants to move forward with this, Ms. Guess would further research
the topic and bring back information for council policy direction. The other option is to ask the
HRC if they have capacity to do this work and prepare a recommendation for council
consideration.
Mayor Pro Tem Mohamed stated her concern is to be sure the HRC has capacity to do this first.
She would suggest Ms. Guess take the lead on this and provide a report back to council.
It was the consensus of the council to have Ms. Guess research further and provide a report to
council with possible next steps for consideration.
The meeting adjourned at 9:14 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Nadia Mohamed, mayor pro tem
Meeting: Special city council
Meeting date: July 24, 2023
Consent agenda item: 5a
Executive summary
Title: Beltline Mixed Use LLC business subsidy and amendment to the CMAQ grant agreement
with Met Council – Ward 1
Recommended action: Motion to adopt resolution approving a business subsidy to Beltline
Mixed-Use LLC and an amendment between the EDA and the Met Council related to the federal
Congestion Mitigation and Air Quality (CMAQ) grant.
Policy consideration: Does the city council support the business subsidy to Beltline Mixed Use
LLC and the amendment to the CMAQ grant agreement between the EDA and the Metropolitan
Council to facilitate the market rate components of the Beltline Station development?
Summary: On July 24, 2023, the EDA will consider approvals to provide financial assistance to
the Beltline Station development’s market rate components including 268 public park and ride
stalls. The financial assistance to Beltline Mixed-Use LLC meets the statutory threshold for a
business subsidy designation. Therefore, Ehlers, staff, and legal counsel recommend that the
city council adopt a resolution approving a business subsidy to Beltline Mixed-Use LLC to
provide gap financing for the major, transit-oriented development to enable it to move
forward. The EDA held a public hearing on the business subsidy on July 17, 2023. Minnesota law
requires that a business subsidy granted by the EDA must be approved by the city council.
Finding that a development meets the definition of a business subsidy requires the EDA to
enter into a business subsidy agreement with the developer. The EDA must then submit annual
reports to the state summarizing the development’s progress in meeting the goals and the
developer is required to repay the assistance if the goals are not met.
City council is also asked to approve an amendment to the CMAQ grant agreement with the
Met Council setting forth the partnership between the EDA and Sherman Associates and
Sherman Associates’ commitment to construct the required 268 public parking stalls for the
light rail project on behalf of the EDA.
Staff recommend approval of the business subsidy and the amendment to the CMAQ grant
agreement. More details are provided in the July 24, 2023 EDA report.
Financial or budget considerations: Under the proposed redevelopment contract for Beltline
Station 2, the redeveloper agrees to construct the market rate and mixed-use components of
the Beltline Station development as specified under the approved PUD. To enable the $142
million, transit-oriented development to become financially feasible and secure private
financing, Ehlers (the EDA’s financial consultant) and staff recommend approximately $18.47
million in total financial assistance from a variety of sources be provided to facilitate all
components of the Beltline Station development.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Resolution
Prepared by: Jennifer Monson, redevelopment administrator
Reviewed by: Greg Hunt, economic development manager
Karen Barton, community development director
Approved by: Cindy Walsh, deputy city manager
Special city council meeting of July 24, 2023 (Item No. 5a) Page 2
Title: Beltline Mixed Use LLC business subsidy and amendment to the CMAQ grant agreement with Met Council –
Ward 1
Resolution No. 23-______
Resolution approving a business subsidy by the St. Louis Park
Economic Development Authority and a first amendment to
subrecipient agreement with Metropolitan Council
Be it resolved by the city council (the “city council”) of the City of St. Louis Park,
Minnesota (the “City”) as follows:
Section 1. Recitals; authorization.
1.01. The St. Louis Park Economic Development Authority (the “authority”) and Beltline
Mixed Use LLC, a Delaware limited liability company (the “developer”), intend to enter into a
contract for private development (the “agreement”) pursuant to which the developer will acquire
certain property located within the city (the “development property”) and construct thereon (a) a
building to include approximately 146 units of market rate housing with approximately 96
underground parking spaces an affordable rental housing facility (the “market-rate housing
component”); (b) a building to include approximately 152 units of market rate rental housing
and approximately 18,200 rentable square feet of commercial space (the “mixed-use
component”); and (c) an approximately 571-space parking ramp with approximately 1,850
square feet of commercial space (including approximately 208 spaces to serve the mixed-use
component, approximately 95 spaces to serve the market-rate housing component, and
approximately 268 spaces to be dedicated as public transit park and ride spaces) and driver
restroom (the “parking ramp component,” and collectively with the market-rate housing
component and the mixed-use component, the “minimum improvements”). To make the
market-rate housing component and the mixed-use component of the minimum improvements
economically feasible, the authority will issue separate tax increment revenue notes
(individually, the “market-rate housing TIF note” and the “mixed-use component TIF note,” and
together, the “TIF notes”).
1.02. In addition to the TIF notes, the authority has proposed to provide a grant to the
developer in the amount of $1,554,000 (the “authority TIF grant”) from pooled tax increment
and a grant from the proceeds of a Contamination Cleanup grant in the amount of $283,547
(the “DEED grant”) from the Minnesota Department of Employment and Economic
Development (“DEED”). The developer has also proposed to provide the authority with a
promissory note in the amount of $390,000 (the “purchase price note”) to evidence the
developer’s obligation to repay a loan for the portion of the purchase price for the market-rate
housing component parcel of the development property and the mixed-use component parcel
of the development property.
1.03. The mixed-use component TIF note, along with the portions of the authority TIF
grant, the DEED grant and the purchase price note allocable on a pro rata basis to the mixed-use
component, constitute a business subsidy (the “business subsidy”) pursuant to Minnesota
Statutes, Sections 116J.993 to 116J.995, as amended (the “business subsidy act”). The
agreement includes an agreement whereby the developer will agree to certain goals in
Special city council meeting of July 24, 2023 (Item No. 5a) Page 3
Title: Beltline Mixed Use LLC business subsidy and amendment to the CMAQ grant agreement with Met Council –
Ward 1
connection with the business subsidy as required by the business subsidy act (the “business
subsidy agreement”).
1.04. As required by Section 116J.994, subdivision 5 of the business subsidy act, on
July 17, 2023, the board of commissioners of the authority conducted a duly noticed public
hearing on the proposed business subsidy to be provided to the developer. In accordance with
Section 116J.994, subdivision 3(d), of the business subsidy act, the city council is required to
approve the business subsidy agreement contained in the agreement.
1.05. In order to assist with the costs of the minimum improvements, the authority
applied for and received a Congestion Mitigation and Air Quality Grant Contamination Cleanup
grant in the amount $6,453,054 (the “CMAQ grant”) from Metropolitan Council. Metropolitan
Council and the authority entered into a subrecipient agreement - Beltline Blvd Station Park &
Ride Project – METRO Green Line Light Rail Transit Extension - Federal Congestion Mitigation
and Air Quality (CMAQ) funding (the “original CMAQ grant agreement”). Proceeds of the
CMAQ grant may be used for eligible project components of the minimum improvements (the
“CMAQ grant-eligible activities”) as described in the original CMAQ grant agreement.
1.06. The authority and Metropolitan Council have negotiated and now propose to
execute a first amendment to subrecipient agreement with respect to the CMAQ grant (the
“first amendment to CMAQ grant agreement”), a form of which has been presented to the city
council, to reflect that the authority and the developer will work cooperatively to implement
the construction of the parking ramp component. The authority intends to disburse the
proceeds of the CMAQ grant to the developer to provide financing for the CMAQ grant-eligible
activities as set forth in the agreement.
1.07. The city council finds that the execution thereof by the authority and performance
of the authority's obligations under the first amendment to CMAQ grant agreement are in the best
interest of the city and its residents.
Section 2. Approvals.
2.01. The city council hereby approves the proposed business subsidy and the business
subsidy agreement contained in the agreement.
2.02. The city council hereby approves the first amendment to CMAQ agreement.
2.03. The city council hereby authorizes the president and the executive director of the
authority, in their discretion and at such time, if any, as they may deem appropriate, to execute
the business subsidy agreement and the first amendment to CMAQ agreement (together, the
“authority documents”) on behalf of the authority, and to carry out, on behalf of the authority,
the authority’s obligations thereunder when all conditions precedent thereto have been
satisfied. The authority documents shall be in substantially the form on file with the city and the
approval hereby given to the authority documents includes approval of such additional details
therein as may be necessary and appropriate and such modifications thereof, deletions
therefrom and additions thereto as may be necessary and appropriate and approved by legal
counsel to the city and the authority and by the officers authorized herein to execute said
Special city council meeting of July 24, 2023 (Item No. 5a) Page 4
Title: Beltline Mixed Use LLC business subsidy and amendment to the CMAQ grant agreement with Met Council –
Ward 1
documents prior to their execution; and said officers are hereby authorized to approve said
changes on behalf of the authority. The execution of any instrument by the appropriate officers
of the authority herein authorized shall be conclusive evidence of the approval of such document
in accordance with the terms hereof. This resolution shall not constitute an offer and the
authority documents shall not be effective until the date of execution thereof as provided herein.
Section 3. Effective date. This resolution shall be effective upon approval.
Reviewed for administration: Adopted by the city council July 24, 2023
Kim Keller, city manager Jake Spano, mayor
Attest:
Melissa Kennedy, city clerk
Meeting: Study session
Meeting date: July 24, 2023
Discussion item: 1
Executive summary
Title: Elections and voter services overview
Recommended action: None at this time. During this discussion staff will review the city’s
elections and voter services and provide an overview of key metrics identified to guide and
measure their efforts to provide high quality and responsive services to voters.
Policy considerations: Does the city council need any additional information related to
administration of the 2023-24 election cycles? Does the city council support the use of
identified metrics to guide and measure elections and voter services in St. Louis Park?
Summary: Elections staff and the city council will discuss the following:
• Redistricting follow-up – elections staff will review the outcomes of the 2022 election cycle,
including a comparison of predicted outcomes against actual results of the city’s
redistricting plan.
• 2023 election cycle – elections staff will provide pertinent information related to the
upcoming municipal election, including a primer on the ranked-choice system, candidate
filing, and outreach and education programming.
• Recent law changes - on June 12, 2023, staff provided a written report outlining the 2023-
24 election cycles and the major changes in election law recently adopted by the legislature.
This discussion will highlight the known and yet to be determined service level impacts of
the new laws along with timelines and expectations around their eventual implementation.
• Metrics – as a follow-up to previous discussions with council, elections staff will review
potential metrics that could be used to gauge the effectiveness of voter services, including
data that is already being collected and analyzed to guide the design and implementation of
programs and services. Staff reviewed potential measurements based on outcomes of an
election, voter service, and measurements of participation. Staff recommends that the
metrics used reflect the primary audience and purpose the services are designed for –
voters - and will discuss why “success” in terms of the administration of elections is
generally best measured by qualitative review of a voter’s experience and quantitative
analysis of who does and does not participate in elections. This is done to identify gaps and
trends that can be addressed through more direct strategies. An overview of the data that
has been collected and measured in St. Louis Park over the past two election cycles and a
comparison of outcomes will be provided during the discussion with council.
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: N/a
Prepared by: Michael Sund, elections and civic engagement coordinator
Reviewed by: Melissa Kennedy, city clerk
Approved by: Cindy Walsh, deputy city manager
Study session meeting of July 24, 2023 (Item No. 1) Page 2
Title: Elections and voter services overview
Discussion
There are four (4) regularly scheduled elections in 2023 and 2024. Each of these elections
requires that the city provide both Election Day and in-person voting services for the 46 days
before Election Day. This means that people will be actively voting in an election for a total of
184 days during the period beginning September 22, 2023, and ending November 5, 2024.
Elections staff have begun the work necessary to plan for and administer each election. Voter
services in St. Louis Park are intentionally held to a high standard because it is what voters
expect and request, and they directly reflect the city’s strategic priorities centered on building
social capital, equity and inclusion. Beginning in 2018, the city intentionally added core
elections programming focused on voter outreach and education to increase transparency,
build relationships, and create resources for people to understand their opportunities to
participate and the electoral systems they use. This additional focus on voter outreach and
education occurs alongside work to expand the use of the franchise to historically underserved
populations.
Redistricting follow-up
In 2022 the city completed a redistricting process based on data from the 2020 census and an
analysis of known voter data and trends in St. Louis Park. The city council approved a reduction
in the total number of precincts from 16 to 12. At the time, elections staff provided an analysis
of projected outcomes of the redistricting plan, along with the potential effects and impact on
voter service. As expected, in 2022 voters continued to prefer to cast their ballot prior to
Election Day, either voting by mail or in-person at city hall. This reduced the number of voters
at polling places on Election Day and resulted in a more consistent flow of voters through each
precinct with minimal wait times. The combination of these preferences and the service plans
implemented by elections staff, resulted in no meaningful reduction or change in the results of
the annual voter survey conducted to qualitatively assess and measure the voter experience.
This survey and the associated results are discussed later in this report and will be presented
and further explained during the discussion with council.
Recent law changes
In the 2023 legislative session several new laws were passed that will affect voters. These rules
have varying effective dates and/or will require significant changes to the administration of
elections at the state, county and local levels, resulting in delayed implementation. Legislators
included provisions which allow a number of the changes to only go into effect once the
Minnesota Secretary of State can verify that they can be securely and effectively implemented
at all levels of government. Election services are broadly provided through an
intergovernmental collaboration of cities, counties, the state and other government bodies. The
coordination of these entities around implementation and interpretation of election law
changes requires significant background work. Elections staff are closely monitoring effective
dates, actively leading work on implementation of processes and procedures with partners at
the county and state levels and evaluating potential service impacts to voters alongside the
development of outreach and education resources to effectively inform voters on these
changes and what it means for them.
Certain changes went into effect shortly following the 2023 session. These included provisions
allowing people who are serving a felony sentence but are no longer incarcerated to register to
Study session meeting of July 24, 2023 (Item No. 1) Page 3
Title: Elections and voter services overview
vote. City staff aided in an event to register people in this situation and prepared and published
outreach materials alerting voters to the exact nature of these changes. New voter registration
forms are available and have been updated to reflect the changes in state law. In addition,
people who are 16 or 17 years old are now able to pre-register to vote. This means that they
can submit a request to register to vote and their voter record will be activated the day they
turn 18 and become eligible to vote. Research supporting programming of this type has shown
that voters who are pre-registered during high school are more likely to participate in voting
when they are the ages 18-24, as many voters move frequently during that period of their lives.
An active voter record allows them to update their information and cast a ballot more easily.
Elections staff are working with schools and community partners working with youth to ensure
future voters in this situation are aware of this opportunity.
Elections staff are actively planning for future implementation of several significant law changes
that have not gone into effect but will impact voter services. Changes that will allow for a form
of automatic voter registration and a period of early voting that does not require a separate
application for a ballot will be particularly impactful. Full implementation of these changes is
contingent on the Secretary of State’s office having the necessary infrastructure in place to
administer these systems securely statewide. At this time, the Secretary of State does not
anticipate statewide implementation of either change until after the 2024 election cycle. Voters
will continue to be able to cast a ballot prior to Election Day using the current absentee system,
with an expanded 18-day period offered for direct balloting, which allows a voter to cast a
ballot in person at city hall and place it directly into a ballot counter.
Election staff are currently implementing changes that will expand services for voters with
disabilities or who reside in assisted living facilities. Election administrators were previously
required to visit and offer voting services at statutorily defined “health care facilities”. Under
new provisions, elections administrators may now opt to expand services to include “assisted
living facilities” that meet the definition in state law. Elections staff have chosen to expand this
service beginning in 2023 because it allows people receiving care in a residential setting to
access voting services more easily and further supports the city’s commitment to equity and
inclusion. Election staff have identified four (4) additional facilities that are eligible for this
service, for a total of (9) facilities in the city, and plan to offer on-site services to residents at
each of these locations prior to Election Day.
2023 election cycle
The next regularly scheduled election will be a general election on Nov. 7 for municipal and
school district offices. The municipal offices will be elected using ranked-choice voting. As in
past years, elections staff have prepared an outreach plan and educational resources for voters
to better understand how to vote in this system and how their ballot will be counted. These
strategies have proven very effective in past ranked-choice elections. Outreach has already
been held in person at major events in the city, including at Parktacular, Senior Fair, Latin Expo,
and career fair. Planned and coordinated outreach will also occur on National Night Out, at the
Art Fair, Fire Station Open House and similar events.
New in 2023, elections staff have expanded outreach programming focused on candidacy to
ensure potential candidates are aware of the opportunity to run for local office, are educated
on the process and requirements of how to file for office and have access to resources that can
Study session meeting of July 24, 2023 (Item No. 1) Page 4
Title: Elections and voter services overview
help them understand the role and the work of the mayor or council members. An open house
for prospective candidates is scheduled on July 26 and will feature leadership from all city
departments, elections staff to explain official rules, and an informal atmosphere that provides
an opportunity for relationship building and learning. Staff have also prepared a video series in
conjunction with current and former city council members and school board members. This
series will be featured on city communication channels, including social media, and will be
shared broadly and via direct messaging to encourage prospective candidates to consider what
it may be like to become a candidate and learn more about the experience of serving on the
city council or school board. More formal information sessions and meetings with city staff will
be facilitated in the fall for official candidates to learn more about city operations and services
to begin the onboarding process for potential future members of the council.
Voter service metrics
City staff are committed to measuring the outcomes from programming as a regular practice to
ensure that services provided are accomplishing goals. Certain services provided by the city are
required to be completed in a particular way in accordance with the law. The city has always set
itself apart by taking these required services and more intentionally aligning them with strategic
priorities, and reflecting the city’s commitment to providing high quality, collaborative and
responsive services.
In this way measurement of elections and voter services falls into two important categories.
First, are the metrics and measures that review the election outcomes. These include turnout of
voters, the totals for various candidates in elections, the total number of candidates and other
operational metrics. Elections staff are careful to draw a clear line of distinction between their
official role as election administrators and metrics of this type. While they actively monitor and
report them, these metrics generally are considered to best affected by the public. For instance,
a candidate for office may seek to increase turnout for themselves or a member of their
political party. Elections staff, in their administrative capacity, seek to ensure voters understand
and are aware of the opportunity to vote and can participate safely and securely, but must
remain strictly neutral on which candidate or party a person may support. Elections staff must
design and provide resources to serve all voters. This ensures public trust in the system and a
fair and reliable outcome for each election. This distinction informs much of the strategy that
staff have taken in advancing voter services beyond the required services in law.
The second type of metrics are those that measure the experience of a voter. These are metrics
that election staff actively track and monitor, and work to improve. Currently, election staff
preform an annual survey during general elections in November to assess voter feelings about
their voting experience. Many of the ways to improve this service are under the direct control
of election staff, following policy set by the city council. These measurements use a Likert scale,
which is a commonly accepted measure of preference, and offer comment boxes for qualitative
comments. This data is then disaggregated by collected demographics and used to analyze
potential ways the service could be improved. For instance, language access is now part of
Minnesota election law, and requires that precincts that meet a certain threshold for non-
English speakers must offer additional services. Election staff for the city have reviewed census
data and determined that no precinct in the city meets those thresholds, however, they have
received feedback through their survey that some voters casting ballots in the city do primarily
speak a language other than English at home. This has informed outreach and education efforts
Study session meeting of July 24, 2023 (Item No. 1) Page 5
Title: Elections and voter services overview
and resulted in a focused recruitment of election workers with language skills, which is
considered one of the best sources of direct translation as election workers are often a
neighbor or live nearby.
An example of a recent use of this survey was to assess the attitude toward changes in voting
services resulting from redistricting. While this change meant many new polling locations for
voters, it was the hope of elections staff that the redistribution of polling locations would not
substantially affect voter services. Overall voters rated the service they received in 2021 at a 4.2
out of 5 on a scale from the best voting experience they have ever had (5), to the worst
experience (1). In 2022 the same question was asked to allow for a direct comparison of these
metrics. The result was an overall rating of 4.2. As with each election, any identified gaps would
be targeted for improvement and staff hope to hold this average as a baseline goal for services
provided. Staff will present and review this data and the corresponding analysis with council at
the meeting.
In response to an inquiry from council members, staff also reviewed data nationally and locally
on the number of candidates as a potential service metric. They reviewed data on who runs for
local office, and national trends in a reduction of overall candidates. Staff requested the
number of candidates on ballots for local elections from Hennepin County for the previous
decade. The resulting data will be discussed and reviewed at the meeting and shows that while
the number of candidates varies in each election, the city is not outside the middle range of
numbers. Ranked-choice voting does not appear to have affected the number of candidates in
this case, and staff instead tied the data to research indicating that incumbency is a more likely
cause for the number of candidates on ballots in recent elections. Regardless of this potential
link, staff pursued the strategy of ensuring that the public was broadly aware of the upcoming
election and understood their opportunity to participate. Further, research was used from a
local group which indicated that the themes of that messaging should include statements that
correctly point out that municipal elections tend to be less about national political party
divisions, which respondents indicated as a reason they may choose not to participate, and
more often about local issues and a vision for the city itself. Staff hope that regardless of how
many candidates ultimately file, their efforts within the scope of their administrative role,
ensure that the public is aware of the opportunity and can make an informed decision.
Staff recommends that metrics to evaluate elections service continue to focus specifically on
the primary audience and purpose the services are designed for – voters – to gauge
effectiveness of services based on voters’ experience and known voter data to identify gaps and
trends that can be addressed through more direct strategies. An overview of the data that has
been collected and measured in St. Louis Park over the past two election cycles and a
comparison of outcomes will be provided during the discussion with council.
Meeting: Study session
Meeting date: July 24, 2023
Written report: 2
Executive summary
Title: Quarterly development update – 3rd 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 meant to keep the EDA/city council informed on a quarterly
basis 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. 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: DEI goal summary
Major developments in St. Louis Park – 3rd 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: Cindy Walsh, deputy city manager
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 48 46 20
Percentage of women-owned business
enterprises in development 11.43% 6% 4% 6% 7% 6% 25% 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 4.95% 6% 0.5% 6% 6.48% 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 206 243 401
Percentage of women workforce in
development -- NA 1% 6% 2% 6% 2% 6%
Percentage of BIPOC/AAPI workforce* in
development -- NA 6% 32% 23% 32% 8% 32%
Percentage of total construction hours for
women workforce in development 5% 20% 0.21% 6% 5% 6% 3.37% 6%
Percentage of total construction hours for
BIPOC/AAPI workforce* in development 17% 32% 7.72% 32% 13% 32% 10% 32%
*The BIPOC/AAPI workforce demographic data is self-reported, and likely does not fully capture Hispanic/Latinx individuals.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 2
Major Developments in St. Louis Park
3rd Quarter 2023
Multifamily housing development summary Total Market rate Affordable
Proposed units 8 0 8
Approved units 1,023 818 205
Units under construction 1,275 790 485
Recently completed units (last two years) 611 528 83
All units 2,917 2,136 781
Total Development Costs (TDC)* $890.4 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 July 2023.
Project plans could
be presented to
council by Q4
2023.
Construction
commencement
Q3, 2024 upon
GMHC securing
LIHTC financing.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 3
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 of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 4
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 (152 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
1,850 square feet of commercial space.
Estimated development cost: $55.8 million
Estimated development cost of ramp: $11.9 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: $25.2 million
Building 3 includes:
•Five-story market rate apartment building with 146
units.
Estimated development cost: $49.2 million
Altogether, the multi-phase redevelopment will have
380 apartment units of which 82 (21%) would be affordable.
Estimated total development cost: $142 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
July 2023
Anticipated
construction:
•Grading Fall/winter
2023
•Building 2 Q3, 2023
•Building 3 Q4, 2023
•Building 1 Q2, 2024
•Ramp Q2, 2024
Construction
completion all
phases Q4, 2025.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 5
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
Q3, 2023.
Construction
commencement
Q4, 2023.
Parkway Residences
W 31st St. between
Inglewood Ave. &
Glenhurst Ave.
Sela Group & Affiliates
Phase III
commencement
anticipated
spring 2024.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 6
Approved developments
Project, location &
developer Project Description Tentative
Schedule
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
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 approved
May 2023
Construction
commencement
Q3, 2023 to be
completed by
July 31, 2025
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.
Awarded $17.5
million in LIHTC
bonds January
2022.
Construction
commencement
August 2022 to be
completed by
August 2023
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 7
Under construction
Project, location &
developer Project Description Tentative
Schedule
•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
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 to
be completed by
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 of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 8
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 of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 9
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.
Construction is
anticipated to be
completed by
October 2023.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 10
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 bldg (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 TBD.
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.
Completed
January 2021.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 11
Recently completed developments
Project, location &
developer Project Description Tentative
Schedule
Estimated construction cost: $55.8 million
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.
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.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 12
Recently completed developments
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 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.
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
Completed
August 2021.
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 13
Recently completed developments
Project, location &
developer Project Description Tentative
Schedule
parking. The housing includes eight units affordable to
households at 50% AMI.
Estimated total development cost: $21.3 million.
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.
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 of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 14
Recently completed developments
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. Twenty percent (23) of the units
would be affordable to households at 50% AMI.
Estimated total development cost: $26.6 million
Completed 11
townhome units
Dec. 2022.
Completed 101
multifamily units
May 2023
Study session of July 24, 2023 (Item 2)
Title: Quarterly development update - 3rd Quarter 2023 Page 15