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Home My WebLink About2023/12/18 - ADMIN - Agenda Packets - City Council - RegularAGENDA DECEMBER 18, 2023 6:20 p.m. Economic Development Authority meeting 1.Call to order a.Roll call. 2.Approve agenda. 3. Minutes a.EDA meeting minutes of Decemb er 4, 2 02 3 4.Consent items a.Resolution ap p roving 8 th Amendment to th e contract for p rivate develop ment – V ia Sol 5.Public hearings – none. 6.Regular business a.Resolutions auth oriz ing final 2 02 4 b udg et – levy and cap ital imp rovement p lan 7.Communications and announcements – none. 8. Adjournment. 6:30 p.m. City council meeting ϭ.Call to order Ă.Roll call. ď.Pledg e of Alleg iance. Ϯ.Approve agenda. ϯ.Presentations Ă.Recog nition of service for Mayor Sp ano ď.Oath of office ceremony for Canine O fficer Maverick Đ.Recog nition of service for O fficer Troy Peek ϰ.Minutes Ă.Minutes of Novemb er 2 7, 2 02 3 study session ď.Minutes of Decemb er 4, 2 02 3 city council meeting Đ.Minutes of Decemb er 4, 2 02 3 sp ecial study session ϱ.Consent items Ă.Resolution recog niz ing O fficer Troy Peek up on retirement from p olice dep artment ď.Resolution accep ting w ork and auth oriz ing final p ayment for Louisiana Avenue Bridg e ( 4018 -1700)- W ard 2 Đ.Ap p rove temp orary liquor license - Beth El Synag og ue Ě.Ap p rove ag reement for p rofessional services w ith Camp b ell Knutson Ğ.Resolution ap p roving 2 02 4 non-union comp ensation Ĩ.Resolution ap p roving 2 02 4 I U O E Local 49 lab or ag reement Ő.Resolution ap p roving 2 02 2 -2 02 4 LELS # 2 18 Police Serg eants Lab or Ag reement Agenda EDA and city council meeting of December 18, 2023 h.Resolution approving 2024-2025 LELS Local #482 police lieutenants labor agreement i.Resolution approving 2024-2025 LELS Local #220 Public Safety Dispatchers Labor Agreement j.Resolution authorizing special assessment for sewer repairs at 3322 Library Lane k.Resolution authorizing special assessment for sewer repairs at 3233 Florida Ave S l.Resolution authorizing special assessment for sewer service repairs at 2515 Xylon Ave S 6.Public hearings – none. 7.Regular business a.Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption b.Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 c.Resolution approving Shops at West End PUD amendment 8.Communications and announcements – none. 9. Adjournment. Members of the public can attend St. Louis Park Economic Development Authority, city council meetings and study sessions in person or watch live by webstream at bit.ly/watchslpcouncil or at www.parktv.org, or on local cable (Comcast SD channel 14/HD channel 859). Recordings of the meetings are available to watch on the city's YouTube channel at www.youtube.com/@slpcable, usually within 24 hours of the end of the council meeting or study session. The council chambers is equipped with Hearing Loop equipment and headsets are available to borrow. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Economic development authority Meeting date: December 18, 2023 Minutes: 3a Unofficial minutes EDA meeting St. Louis Park, Minnesota Dec. 4, 2023 1. Call to order. President Mohamed called the meeting to order at 6:20 p.m. a. Roll call Commissioners present: President Nadia Mohamed, Tim Brausen, Sue Budd, Lynette Dumalag, Yolanda Farris, Margaret Rog, and Jake Spano Commissioners absent: none Staff present: City manager (Ms. Keller), deputy city manager (Ms. Walsh), city attorney (Mr. Mattick) 2. Approve agenda. It was moved by Commissioner Rog, seconded by Commissioner Brausen, to approve the EDA agenda as presented. The motion passed 7-0. 3. Minutes. a. EDA meeting minutes of Nov. 20, 2023 It was moved by Commissioner Brausen, seconded by Commissioner Dumalag, to approve the EDA meeting minutes of Nov. 20, 2023 as presented. The motion passed 7-0. 4. Consent items. a. Approve EDA disbursements It was moved by Commissioner Brausen, seconded by Commissioner Farris, to approve the consent items as listed. The motion passed 7-0. 5. Public hearings – none. Economic development authority meeting of December 18, 2023 (Item No. 3a) Page 2 Title: Economic Development Authority meeting minutes of December 4, 2023 6. Regular business – none. 7. Communications and announcements - none. 8. Adjournment. The meeting adjourned at 6:23 p.m. ______________________________________ ______________________________________ Melissa Kennedy, EDA secretary Nadia Mohamed, EDA president Meeting: Economic development authority Meeting date: December 18, 2023 Action agenda item: 4a Executive summary Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 Recommended action: Motion to adopt EDA resolution approving the eighth amendment to the purchase and redevelopment contract between the EDA, and Via Sol, LLC (an affiliate of Bigos Management). Policy consideration: Do the proposed redevelopment contract amendments further the city’s strategic priority to provide a broad range of housing and neighborhood-oriented development? Summary: PLACE E-Generation LLC’s (the “developer”) Via Sol development, located at 5855 State Highway 7, received a temporary certificate of occupancy (TCO) in July 2022. During construction, the developer defaulted under the terms of the bonds issued for the project and, at the request of bondholders, Hennepin County District Court appointed Maxwell Bay Advisors LLC (the “receiver”) as receiver in November 2022. A receiver is a person appointed as custodian of an entity’s property, finances or general assets. The receiver in this case was tasked with overseeing the building’s finances, final completion and lease-up on behalf of the bond holders. In mid-August 2023, the receiver listed Via Sol for sale. After a competitive bidding process, Bigos Management (“buyer”) was selected as having the best overall proposal to purchase the Via Sol property. The parties subsequently entered into a purchase agreement with closing set for no later than Dec. 31, 2023. As noted in the Sept. 18, 2023 staff report, the receiver and buyer are requesting an eighth amendment to the contract for private development and an amendment to the planned unit development to facilitate the sale. The details of these requests were provided in the Nov. 27, 2023 staff report. During the Dec. 4, 2023 study session, the EDA discussed the proposed eighth amendment, how it furthers the city’s strategic priorities as well as how it better positions Via Sol for the future. The EDA expressed consensus support for the proposed eighth amendment to the contract as outlined in the staff report. Financial or budget considerations: Staff and Ehlers, the EDA’s financial consultant, recommend the EDA resize the developer’s TIF Note in response to the buyer’s anticipated filing for an affordable housing 4d tax classification change and further recommend utilizing previously generated tax increment to repay the remaining balance on the developer’s property purchase loan with the EDA. Additional details are outlined below. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion; Resolution Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Baron, community development director; EDA executive director Approved by: Kim Keller, city manager Page 2 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 Discussion Background: The EDA and PLACE E-Generation One, LLC (the “developer”) entered into a purchase and redevelopment contract on May 1, 2017, (as amended seven times, the “redevelopment contract”) for the redevelopment of the property to the north and south of the proposed Wooddale Avenue LRT station. At the same time , the city council approved a planned unit development to create the zoning for the development. In 2019, the purchase and redevelopment contract and planned unit development (PUD) zoning district were amended to only include redevelopment north of the Wooddale Avenue LRT station. Per the contract and the zoning requirements, the developer was required to con struct the following: •A five-story, mixed-use, mixed-income building with 217 dwelling units including eight live/work units, and approximately 5,000 square feet of commercial space. o 22 units affordable at 50% area median income o 130 units affordable at 80% area median income o 65 market rate units o Rooftop solar generation and a rooftop helical wind turbine •E-generation/greenhouse facility including an anaerobic digester and vertical greenhouse for urban agriculture. •A one-acre urban forest located parallel to the Cedar Lake LRT Regional Trail. •220 parking spaces, distributed as 99 underground, 56 surface and 65 on-street parking spaces, along with five car-share spaces. As part of the contract, the EDA agreed to subordinate certain provisions of the redevelopment contract to the developer’s financing, which is customary. Construction background: Construction of the Via Sol development began in January 2020 and the city issued a temporary certificate of occupancy (TCO) in July 2022. During construction, the developer defaulted under the terms of the bonds issued for the project and, at the request of bondholders, Hennepin County District Court appointed Maxwell Bay Advisors LLC (the “receiver”) as receiver in November 2022. A receiver is a person appointed a s custodian of an entity’s property, finances or general assets. The receiver in this case was tasked with overseeing the building’s finances, final completion and lease-up on behalf of the bond holders. All components of the mixed-use building (building, parking and urban forest) are complete, with the exception of the installation of rooftop solar panels, a solar canopy over the surface parking and the helical wind turbine. As written in the “planned unit development official exhibits”, these items are required in order for the project to receive a final certificate of occupancy. They are also required by the submitted construction plans. Compliance with the construction plans submitted by the developer to the EDA is required for the devel oper to receive a certificate of completion from the EDA under the redevelopment contract. Construction has not commenced on the E-generation and greenhouse facility. The developer intended to fund all energy generation facilities, including Via Sol’s so lar panels, solar canopy and wind turbine from a separate funding source. The developer was unable to secure additional financial resources to complete all components of the project, and the building’s bond holders are unwilling to assume additional debt to complete this portion of the project. Page 3 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 Despite the incomplete sustainable components noted above, the Via Sol building largely complies with the city’s Green Building Policy. Yet to be completed is the commissioning process which assures that all the building’s mechanical systems are operating as originally designed. Financial background: To date, the developer has paid $422,470 on the loan the EDA provided to the developer to enable it to purchase the property. The remaining principal balance of the land loan is $552,530. Compared to other housing developments in St. Louis Park, initial lease -up of Via Sol has been very slow. This, among other challenges, caused significant cash flow difficulties for the developer. As a result, Hennepin County District Court appointed a receiver in November 2022 to oversee the building’s finances, final completion and lease-up on behalf of the building’s financial lenders. Via Sol is currently managed by Roers Companies and, to date, the building is 80% leased and 77% occupied. The project’s affordability and leasing breakdown is in the table below. The building exceeds the requirements of the city’s Inclusionary Housing Policy and has submitted all required documentation to demonstrate compliance with the policy. The units affordable at 80% AMI are required as part of the approved redevelopment contract but exceed the requirements of the Inclusionary Housing Policy. These 80% AMI units are tied to the 501(c)(3) non-profit conduit revenue bonds issued for the project and are required by other project funders. Approved affordability levels Affordability level Approved units Leased units % Leased 50% AMI 22 20 91% 80% AMI 130 111 85% Market rate 65 43 66% Property sale: In mid-August 2023, the receiver listed Via Sol for sale, and after a competitive bidding process, Bigos Management was selected by the receiver as having the best overall proposal to purchase the property. The parties subsequently entered into a purchase agreement. Buyer background: Bigos Management (“buyer”) owns and manages 9,500 units in the Minneapolis/St. Paul area. 45% of these units are naturally occurring affordable housing (NOAH). It owns and operates several buildings in St. Louis Park and is currently constructing The Mera development at 9920 Wayzata Boulevard in the city’s Shelard Park area. Bigos Management also owns five fully affordable project-based communities in St. Louis Park serving 614 households and is one of the largest acceptors of housing choice vouchers in the city. Present considerations: In order for the Via Sol building to receive its final certificate of occupancy from the city and certificate of completion from the EDA as well as to better position the building for full occupancy, positive cash flow and better resident experience, the buyer requests relief from certain contractual requirements under the purchase and redevelopment Page 4 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 contract with the EDA. Such relief could only be provided in the form of an amendment to the contract. As stated in the Nov. 27 staff report and summarized in the Dec. 4 staff report, the proposed eighth amendment to the purchase and redevelopment contract between the EDA and affiliate of the buyer (Via Sol LLC) includes the following: 1.The definition of the development’s minimum improvements are revised to allow for the: a.Removal of the commercial space to allow for additional resident amenity space b.Removal of the E-Generation and greenhouse facility c.Addition of a buyer commitment to use best efforts to install solar on the building’s roof within 18 months of receiving a certificate of occupancy from the city. 2.It is anticipated that there will be an amendment to the PUD with the city. The proposed amendment to the PUD is anticipated to include permission to remove the E-generation and greenhouse facility and remove wind and solar components. The amendment would also increase surface parking, construct a pool, and allow the commercial space to be used as residential amenity space, and will grant an easement for public art along Wooddale Avenue. 3.The affordability requirements are updated to include: a.Removal of 130 units affordable the 80% AMI b.Addition of 66 units affordable at 60% AMI (a total of 40% of the building’s units are affordable) 4.The renters currently occupying units affordable at 80% will not be displaced, evicted, or have their lease not renewed based on the reasoning that those units are now reserved for 60% AMI households. 5.The TIF note is resized from $3.4 million to $2.066 million in response to the buyer’s anticipated filing for an affordable housing 4d tax classification change, and the TIF note will be issued once the PUD amendment construction is completed and a certificate of occupancy is issued. 6.The receiver will submit the final commissioning report to satisfy the final requirements of the Green Building Policy. 7.The tax increment accrued prior to the date of the eighth amendment shall be used to repay the interfund loan, including the costs of the remaining balance on the land loan. 8.The construction staging easement that was recorded on the E-Generation parcel is terminated and will be released. Specific details and staff recommendations on each of these requests can be found in the Nov. 27, 2023 staff report. City’s strategic priorities: The Via Sol development and the above listed amendments help further the city’s strategic priorities to provide a broad range of housing and neighborhood- oriented development, being a leader in environmental stewardship, and supports providing a variety of options for people to make their way around the city. Page 5 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 If the above amendments are approved, Bigos Management envisions purchasing the building and investing additional dollars into the site and building’s amenities to the benefit of current and future residents. This will provide an opportunity for the residents to have access to enhanced amenities including a swimming pool, outdoor playground, large community room space, workout facilities and the one-acre urban forest, which aren’t typically found in affordable housing developments. In addition, this development provides over 300 indoor bicycle storage spaces, is located next to the regional trail and future METRO Greenline light rail and has two Xcel Energy electric Hour Cars available for residents, all reducing the need for car ownership and helping people move around the city comfortably and safely. As currently constructed, the Via Sol building is one of the most energy efficient residential buildings constructed in St. Louis Park, as the original developer was pursing LEED certification. Additionally, Bigos has committed to use best efforts to install solar on Via Sol’s roof within 18 months of receiving a certificate of occupancy. The building’s roof was constructed to accommodate solar, facilitating the installation. Bigos has experience with rooftop solar installation on The Mera, currently under construction in the northwest quadrant of the city. EDA discussion: On Dec. 4, 2023, the EDA received a staff presentation outlining the requested amendments. The EDA discussed the amendments and voiced consensus support for the proposed eighth amendment to the purchase and redevelopment contract and the proposed amendment to the planned unit development zoning district. Recommendation: During the Dec. 18, 2023 EDA meeting, the EDA will consider a resolution of approval for the proposed eighth amendment to the purchase and redevelopment contract with Via Sol, LLC an affiliate of Bigos Management. The eighth amendment will be conditioned upon approval of an amendment to the PUD with the city. Staff supports the proposed eighth amendment to the purchase and redevelopment contract and supports the PUD amendment requests in order to provide additional, more-deeply affordable housing in the community; to provide residents with access to enhanced amenities; to ensure a financially sound development into the future; to position the Via Sol building to be deemed officially complete and receive its final certificate of occupancy; and to facilitate the repayment of the EDA’s land loan. Next steps: The receiver’s sale to Bigos Management will be decided by the court on Dec. 20, 2023. If approved, Bigos Management is required to close on the purchase of the building by Dec. 31, 2023. Upon approval of the eighth amendment by the EDA, staff will work to realign the PUD requirements and bring them through the Planning Commission and city council in early 2024. Following these pending approvals, the receiver and Bigos Management plan to submit formal applications for building permits to expand the parking lot, add a pool area and construct additional building amenity areas. Once this work is complete d, a final certificate of occupancy Page 6 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 can be issued for Via Sol. Following that, and once additional contract-required documentation is provided to the EDA, the certificate of completion and TIF note can be issued. Page 7 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 EDA Resolution No. 23- Resolution approving an eighth amendment to a certain purchase and redevelopment contract and related documents Whereas, the St. Louis Park Economic Development Authority (the “authority") and the City of St. Louis Park (the “city”) have heretofore approved the establishment of the Wooddale Station Tax Increment Financing District (the “TIF 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; and Whereas, to facilitate the redevelopment of certain property within the project and TIF district, the authority and PLACE E-Generation One LLC, a Delaware limited liability company (the “original redeveloper"), previously negotiated a purchase and redevelopment contract (as subsequently amended seven times, the “original agreement"), which provides for the conveyance of certain property (the “property") to the original redeveloper, the construction by the original redeveloper of a mixed-use, mixed-income, transit-oriented development, including rental housing, and associated parking on the property (the “minimum improvements"), and the issuance of a tax increment revenue note (the "note") to the original redeveloper; and Whereas, in order to finance the construction of the minimum improvements, at the request of the original redeveloper, the city issued its Housing Revenue Bonds (Place Via Sol Project), Series 2018 (Green Bonds) (the “bonds") and loaned the proceeds of the bonds to the original redeveloper under a certain loan agreement. The original redeveloper's obligations with respect to such loan agreement are secured by a senior lien on the minimum improvements (the “senior mortgage"); and Whereas, the original redeveloper failed to complete certain components of the minimum improvements and was in default under the provisions of the original agreement. In addition, the original redeveloper defaulted on the senior mortgage, and on October 22, 2022, the Hennepin County, Minnesota District Court, Fourth Judicial District (the “court") appointed Maxwell Bay Advisors, LLC, a Minnesota limited liability company, as receiver (the “receiver") for the assets of the original redeveloper; and Whereas, the receiver marketed the minimum improvements for sale and selected Bigos-Via Sol, a Minnesota limited liability company (the “redeveloper"), as the purchaser of the minimum improvements and the redeveloper desires to make certain changes to the minimum improvements. The authority and the redeveloper have negotiated an eighth amendment to the agreement (the "eighth amendment" and together the original agreement, the "amended agreement"), revising, among other things, the definition of minimum improvements, providing for an amended and restated declaration relating to the minimum improvements, and the terms and conditions of issuance of the note; and Whereas, pursuant to an assignment and assumption of purchase and redevelopment contract, between the receiver and the redeveloper (the "assignment"), the receiver will convey the minimum improvements to the redeveloper and the redeveloper will assume all rights, Page 8 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 title, interest, duties and obligations in, to, and under the original agreement, the note and that certain declaration or restrictive covenants associated therewith. Whereas, the board has reviewed the eighth amendment and finds that the execution thereof and performance of the authority's obligations thereunder are in the best interest of the city and its residents. Further, the board has reviewed the assignment and finds that their consent thereto is in the best interest of the city and its residents. Now therefore be it resolved by the board of commissioners of the St. Louis Park Economic Development Authority as follows: 1.Approval of Documents. (a)Contingent upon closing on the sale of the minimum improvements by the redeveloper and the receiver, the board approves the eighth amendment and the assignment in substantially the forms presented to the board, together with any related documents necessary in connection therewith, including without limitation a termination of a construction easement on property, a termination of the existing declaration of restrictive covenants and first amendment thereto, the amended and restated declaration of restrictive covenants, and all other documents, exhibits, certifications, or consents referenced in or attached to the eighth amendment (the "documents"). (b)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 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 documents shall be in substantially the form on file with the authority and the approval hereby given to the 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 documents shall not be effective until the date of execution thereof as provided herein. (c)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 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 documents. Section 2. Issuance, sale, and form of the note. Page 9 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 (a)The authority hereby authorizes the president and the executive director to issue the note in accordance with the amended agreement. (b)The note shall be issued in the amount set forth in the amended agreement to the redeveloper in consideration of certain eligible costs incurred by the original redeveloper under the amended agreement, shall be dated the date of delivery thereof, and shall bear interest at the rate of 5.0% per annum from the date of issue to the earlier of maturity or prepayment. The note will be issued in accordance with section 3.8(b) of the agreement. The note shall be secured by available tax increment, as further described in the form of the note attached as exhibit A to the eighth amendment. The authority hereby delegates to the executive director the determination of the date on which the note is to be delivered and the final amount of the TIF Note, in accordance with the amended agreement. (c)The note shall be in substantially the form attached to the eighth amendment as exhibit A, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue. Section 3. Terms, execution and delivery of the note. (a)Denomination, payment. The note shall be issued as a single typewritten note numbered R-1. The note shall be issuable only in fully registered form. Principal of and interest on the note shall be payable by check or draft issued by the registrar described herein. (b)Dates; interest payment dates. Principal of and interest on the note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the payment date, whether or not such day is a business day. (c)Registration. The authority hereby appoints the chief financial officer to perform the functions of registrar, transfer agent and paying agent (the "registrar"). The effect of registration and the rights and duties of the authority and the registrar with respect thereto shall be as follows: (1)Register. The registrar shall keep at its office a bond register in which the registrar shall provide for the registration of ownership of the note and the registration of transfers and exchanges of the note. (2)Transfer of note. Upon surrender for transfer of a note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, and consent to such transfer by the authority if required pursuant to the amended Page 10 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 agreement, the registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new note of a like aggregate principal amount and maturity, as requested by the transferor. The registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each payment date and until such payment date. (3)Cancellation. The note surrendered upon any transfer shall be promptly cancelled by the registrar and thereafter disposed of as directed by the authority. (4)Improper or unauthorized transfer. When the note is presented to the registrar for transfer, the registrar may refuse to transfer the same until it is satisfied that the endorsement on such note 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. (5)Persons deemed owners. The authority and the registrar may treat the person in whose name a note is at any time registered in the bond register as the absolute owner of such note, whether the note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such 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 such note to the extent of the sum or sums so paid. (6)Taxes, fees and charges. For every transfer or exchange of a note, the registrar may impose a charge upon the owner thereof sufficient to reimburse the registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (7)Mutilated. lost, stolen or destroyed note. In case any note shall become mutilated or be lost, stolen, or destroyed, the registrar shall deliver a new note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated note or in lieu of and in substitution for such 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 note lost, stolen, or destroyed, upon filing with the registrar of evidence satisfactory to it that such 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 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 note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new note prior to payment. Page 11 Economic development authority meeting of December 18, 2023 (Item No. 4a) Title: Eighth amendment to purchase and redevelopment contract – Via Sol – Ward 2 (d)Preparation and delivery. The note 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 a note shall cease to be such officer before the delivery of such 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 a note has been so executed, it shall be delivered by the executive director to the owner thereof in accordance with the amended agreement. Section 4. Security provision: pledge. The authority hereby pledges to the payment of the principal of and interest on the note all available tax increment as defined in the note. Available tax increment shall be applied to payment of the principal of and interest on the note in accordance with the terms of the form of note set forth in Section 3(c) of this resolution. Section 5. Certification of proceedings. The officers of the authority are hereby authorized and directed to prepare and furnish to the owner of the note 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 and marketability of such note 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 6. Effective date. This resolution shall be effective upon approval. Reviewed for administration Adopted by the Economic Development Authority December 18, 2023 Karen Barton, executive director Nadia Mohamed, president Attest Melissa Kennedy, secretary Meeting: Economic development authority Meeting date: December 18, 2023 Action agenda item: 6a Executive summary Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Recommended action: •Motion to adopt Resolution authorizing the 2024 final HRA levy. •Motion to adopt Resolution authorizing the 2024 final EDA levy. Policy consideration: Does the Economic Development Authority (EDA) support the proposed 2024 budget and associated levies? The balanced budget consists of an "all-inclusive” preliminary levy increase of 7.3% (down from 7.7%). The EDA must approve two key components of this total levy: 1.Housing Redevelopment Authority (HRA) levy equal to $1,744,133 2.Economic Development Authority (EDA) levy equal to $877,000 Summary: Recommendations in the 2024 recommended budget are based on maintaining high-quality services and advancing city priorities while also making best use of public dollars. Council approved a preliminary levy of 7.7% on Sept. 18. After thoroughly vetting all the numbers, staff was able to lower the levy to 7.3% by reducing the general levy amount. The 2024 budget provides a strategic opportunity to make decisions that impact the city’s long range financial plan, prepare for known and unknown fiscal issues in the medium-term and ensure long-term compliance with city financial policies. The full presentation on the 2024 levies and budget will be held in the city council meeting, scheduled for 6:30 p.m. on Dec. 18, 2023. Financial or budget considerations: The proposed tax levies support city services, capital improvements, and debt service obligations for fiscal year 2024 Strategic priority consideration: All strategic priorities. Supporting documents: Discussion, Resolutions Prepared by: Amelia Cruver, finance director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 2 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Discussion Background: 2024 Budget development timeline August 7 General fund budget and American Rescue Plan Act (ARPA): projections at current service level, staff priorities for general fund changes, update on potential one-time capital grant program August 28 Proposed 2024 budget: revised general fund, long range financial plan, capital improvement plan, EDA and HRA levies September 18 Maximum levy adoption October 2 Fee adoption and hearing October 23 Tax Increment Financing management report November 13 Utility rate analysis and discussion November 20 Utility rate hearing November 27 Review final budget and levies prior to Truth in Taxation hearing December 4 Truth in Taxation hearing December 18 2024 budget adoption On Aug. 7 and 28, 2023 staff met with the city council to discuss recommended spending and associated revenue levels to support the Capital Improvement Plan (CIP), long-range financial plan and new budget proposals. Adjustments to baseline spending and new budget proposals included in the general fund are detailed in the Aug. 7, 2023 staff report. Highlights from 2024 projects in the recommended CIP as well as other special revenue funds like the Affordable Housing Trust Fund are detailed in the Aug. 28, 2023 staff report. Overall, the proposed 2024 budget included new investments in public safety, environmental stewardship and people and places that build social capital. Discussion of the preliminary levy surfaced a few key points of feedback on the proposed budget: • What is the city doing to maintain or enhance the city’s tree canopy? • How might emerging needs impact the long-term conditions of the city’s infrastructure? • Are there opportunities to lower the property tax levy while maintaining high quality services and working towards the city’s priorities? Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 3 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption On Oct. 23, 2023, staff and representatives from Ehlers met with the city council to discuss tax increment financing (TIF) outcomes and decision points for 2023 and 2024. Council supported continuing to pool tax increment for affordable housing purposes and deposit those funds into the city’s affordable housing trust fund through Dec. 31, 2026 when the city’s special legislation is scheduled to sunset. That report can be found here. On Nov. 13, 2023 staff met with city council to discuss utility rate increases for 2024 and that report can be found here. Each year, St. Louis Park updates rates charged for water, sewer, storm water and solid waste services. Solid waste rates will need to be meaningfully increased to cover the cost of the new five-year contracts approved in summer 2023. Staff explored several options for rate increases that would: • Cover the cost of budgeted expenses over the next five (5) years. • Ensure all funds meet target fund balances at the end of the five (5)-year period. • Minimize costs to rate payers without preferencing one pool of ratepayers over another. Council reviewed the new contracts for solid waste this summer and indicated support for a scenario that includes a 15.5%/$55 increase in quarterly bills for the median user in 2024, and a 5%/$20 increase in quarterly bills for 2025 through 2028. On November 27 council discussed and approved recommended revisions to the 2024 budget which included: 1. Updated ongoing expenditures that include a new budget system, expanded staff and budgets for the natural resources division and increased cyber security protection. 2. Updated one-time expenditures that include expanded consulting budgets for foundational work on SLP 4.0 and data systems in the city, an electric vehicle and water pump for tree preservation work and additional funds or deferred building maintenance. 3. Updated 2024 levy that is reduced to an overall 7.3% increase from a 7.7% increase approved in September. On Dec. 4 the city held a Truth in Taxation hearing (video and materials can be found here) to get feedback from residents on the proposed 2024 Budget. State statute requires all cities and counties to hold a public hearing on the proposed budget and property tax levy for the following year before budget adoption. There were two speakers who provided comments, and a response is summarized below. Question or concern: One resident advocated for more greenspace, bikeable communities and human scale development, along with high quality schools. This resident also expressed concern that the medium-term increase in the levy has outpaced the medium-term increase in income. The resident also praised the virtues of homeownership and questioned whether the increasing number of apartment buildings would make homeownership less accessible. Response: • The tree canopy in St. Louis Park is currently decreasing as mature ash trees are being removed due to emerald ash borer and persistent dry hot summers. In response we Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 4 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption have been increasing tree plantings with over 1000 planted in 2023 on public property and around 500 trees provided to residents on private property through cost share programs. The city has also increased its capacity to water trees. For developments there are replanting ordinances requiring a significant number of trees and shrubs be planted as part of the building projects. • According to USA.com, SLP ranks 11th in the state in population density with 4.279.7 persons per square mile. • SLP is a fully developed city. To provide housing opportunities for people seeking to locate in SLP or to stay in SLP when their housing needs change (i.e., seniors in single- family houses), multi-family housing is needed. • Because SLP is a desirable and growing community, housing prices have increased for both ownership and rental. Multi-family development provides more affordable housing opportunities for households seeking to locate to SLP. • City staff work very closely with developers to ensure that new development is complementary to the surrounding properties and focuses on human scale and pedestrian experience. • Per the rental licensing department, Blackrock does not own any single-family rental houses in SLP. SLP also has a robust licensing and inspection program in addition to tenant protection ordinances. • Less than 2% of the single-family rental houses in SLP are owned by people/businesses that own 3 or more single-family rental properties in SLP. Staff have been directed by council to monitor the number of single-family rental houses and corporate ownership of those rental houses. Question or concern: One resident noted the city’s continuing use of and support for tax increment financing and questioned if the practice was truly benefiting the residents of the city. The resident was concerned that developers involved in TIF projects did not pay taxes during the lifetime of the project, up to 25 years, and that residents had to pay more as a result. Asked council to be more transparent around TIF impacts to property taxpayers. Response: • After a TIF project or district is formed, the owners of the property pay property tax every year throughout the TIF districts operation. • The portion of taxes paid to the city, county, and schools at the start of the district continues to be paid to the city, county, and schools every year throughout the projects lifetime. • A portion of the increased taxes over what was paid at the beginning of the district timeline is captured used to pay the developer for specific improvements to the land or property over the lifetime of the district. The developer must first pay the full property taxes in order to receive any of the increased taxes. • When the district is closed, or decertified, this incremental amount of property tax is also paid every year to the city, county, and schools. The result is an increase in taxable property value which lowers the tax burden on all other properties in the city. • While TIF is a somewhat complex financial instrument the city works to bring transparency to the process of managing TIF projects and the impact they have on our economy and finances. Additional information about TIF, including a very helpful TIF 101 Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 5 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption overview, the city’s TIF policies, district maps and dashboard can be found on the city’s website here. Present considerations: The city’s portion of property tax paid by individual property owners is determined by the levy as approved by council and the market value of all properties within the city. Looking ahead to taxes payable in 2024, the market values of industrial and commercial properties are growing faster than residential. This will result in an increase in property tax bills for residential properties that is less than the overall property tax increase. In addition, the city’s recent decertification of TIF districts will increase the overall tax capacity and lower the impact to individual property owners. In 2024 the median home value is $373,300, a 0.4% increase from the previous year. Prior to the lower levy and decertification of new TIF districts, the impact to the median value homeowner was estimated to be around a 4% increase. Estimating the impact of the TIF decertification, the projected property tax increase for a median homeowner with a homestead exemption is 3.6%, or $57.54 dollars annually. Long range financial plan Below is a table showing each part of the proposed 2024 levy and the five-year forecast based on the people and programs funded in the proposed 2024 budget. The following assumptions are built into the forecast: • Steady inflationary growth in general fund to maintain current service levels. • Additional levy in 2025 to cover the full annual cost of personnel additions in the recommended 2024 budget of two police sergeants and one public service worker. • Additional levy in 2027 to cover the cost of three new firefighters once the federal SAFR grant concludes. • Levy increases of $200,000 each year in 2024, 2025 and 2026 to “step down” after using one-time sources, rather than a one-year jump in levy revenue. • Capital replacement levy to meet currently identified CIP needs, after using Public Safety Aid and some one-time general fund transfers. • Debt service to fund major street infrastructure projects currently laid out in the CIP. • Steady inflationary growth in the HRA and EDA levy to keep up with salary costs. Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 6 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Five(5)-year financial direction (includes above assumptions) Fund 2023 Adopted 2024 Proposed 2025 Projected 2026 Projected 2027 Projected 2028 Projected General Fund $ 32,041,296 $ 34,147,654 $ 36,264,298 $ 38,096,192 $ 40,200,520 $ 42,009,544 Capital Replacement Fund $ 1,646,142 $ 2,177,793 $ 2,420,496 $ 2,664,930 $ 2,814,930 $ 2,964,930 Park Improvement Fund $ 860,000 $ 860,000 $ 860,000 $ 860,000 $ 860,000 $ 860,000 Employee Benefits Fund $ 150,000 $ 200,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 Subtotal General Levies $ 34,697,438 $ 37,385,447 $ 39,694,795 $ 41,771,122 $ 44,025,451 $ 45,984,474 Debt Service Levy $ 6,362,813 $ 6,292,503 $ 6,611,475 $ 7,057,023 $ 7,057,023 $ 7,057,023 General and Debt Service Levies $ 41,060,251 $ 43,677,949 $ 46,306,269 $ 48,828,145 $ 51,082,473 $ 53,041,497 HRA Levy $ 1,582,696 $ 1,744,133 $ 1,796,457 $ 1,850,351 $ 1,905,861 $ 1,963,037 EDA Levy $ 500,000 $ 877,000 $ 916,465 $ 957,706 $ 1,000,803 $ 1,045,839 Total Property Tax Levy $ 43,142,947 $ 46,299,082 $ 49,019,191 $ 51,636,201 $ 53,989,137 $ 56,050,373 Levy Growth 7.32% 5.88% 5.34% 4.56% 3.82% EDA members are asked to approve the HRA and EDA levies only, and pass onto council for final approval as a part of the overall financial plan as presented above. Next steps: After adoption, the final levy will be certified to the county and the budget will be in effect January 1, 2024. Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 7 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption EDA Resolution No. _____ Authorizing the final levy of a special benefit (HRA) levy pursuant to Minnesota Statutes, Section 469.033, subdivision 6 and approval of a final budget for fiscal year 2024 Whereas, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and Whereas, pursuant to the EDA Act, the city council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and Whereas, Section 469.033, Subdivision 6, of the HRA Act permits the Authority to levy and collect a special benefit levy of up to 0.0185 percent of estimated market value in the city upon all taxable real property within the city; and Whereas, the Authority desires to levy a special benefit levy in the amount of up to 0.0185 percent of estimated market value in the city for taxes payable in 2024; and Whereas, pursuant to Minnesota Statutes, Section 275.065, the Authority is required to adopt a proposed budget and a proposed tax levy and submit the same to the County Auditor by December 28; and Whereas, the Authority has before it for its consideration a copy of a proposed budget for its operations for the fiscal year 2024 and the amount of the proposed levy for collection in 2024 shall be based on this budget and the long-range financial management plan, subject to any adjustments in the budget as finally approved prior to certification of the final special benefit levy; Now therefore be it resolved, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority: 1. The proposed budget of $1,744,133 for the operations of the Authority in fiscal year 2024, as presented for consideration by the city council, is hereby in all respects approved, subject to final approval by the Authority before certification of the tax levy under Minnesota Statutes, Section 275.07. 2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the city in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is hereby approved in a maximum amount equal to 0.0185 percent of estimated market value in City of St. Louis Park with respect to taxes payable in Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 8 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption calendar year 2024, subject to final approval by the Authority before certification of the special benefit levy pursuant to Minnesota Statutes, Section 275.07. 4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the city council of the levy of special benefit taxes payable in 2024 and to take such other actions as are necessary to bring before the Board the final budget and levy to be sent to the county auditor on or before five working days after December 18, 2023. Reviewed for administration: Adopted by the Economic Development Authority, December 18, 2023 Karen Barton, executive director Nadia Mohamed, president Attest: Melissa Kennedy, city clerk Economic development authority meeting of December 18, 2023 (Item No. 6a) Page 9 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption EDA Resolution No. 23-_____ Approving a present intent to levy a tax for Economic Development Authority purposes pursuant to Minnesota Statutes, Section 469.107 Whereas, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended (the “Act”), the city established the St. Louis Park Economic Development Authority (the “EDA”); and Whereas, Section 469.107, subdivision 1 of the Act authorizes the city, at the request of the EDA, to levy and collect a tax of up to 0.01813% of the estimated market value of taxable property within the city, levied upon all taxable real property within the city, for economic development purposes; and Whereas, the EDA has requested that the city approve such a levy in the amount of $877,000 and the city finds that such a levy is in the best interest of the city and EDA because it will facilitate economic development; Now therefore be it resolved that the City Council of St. Louis Park hereby approves the levy of a tax for economic development purposes pursuant to Section 469.107, subdivision 1 of the Act in the amount equal to $877,000 with respect to taxes payable in calendar year 2024. Reviewed for administration: Adopted by the Economic Development Authority, December 18, 2023 Karen Barton, executive director Nadia Mohamed, president Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Presentation: 3a Executive summary Title: Recognition of service for Mayor Jake Spano Recommended action: Recognize Jake Spano for his 12 years of service to the city as mayor and as at large council member on the St. Louis Park City Council. Policy consideration: None Summary: In March 2023, St. Louis Park Mayor Jake Spano announced he would not seek a third term as mayor. The conclusion of his term as mayor on Jan. 2, 2024, will mark 12 total years Spano has served on the St. Louis Park City Council. He was first elected mayor in 2016 after serving a four-year term as an at-large council member. Information related to his service and its many transformative impacts is included in this staff report. Financial or budget considerations: None Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None Prepared by: Jacque Smith, communications and technology director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 3a) Page 2 Title: Recognition of service for Mayor Jake Spano Discussion Background: In March 2023, St. Louis Park Mayor Jake Spano announced he would not seek a third term as mayor. The conclusion of his term as mayor on Jan. 2, 2024, will mark 12 total years Spano has served on the St. Louis Park City Council. He was first elected mayor in 2016 after serving a four-year term as an at-large council member. Highlights from Mayor Spano’s 12 years on the city council include: passage of a climate action plan in 2017; the community visioning process in 2018 that led to the city’s current strategic priorities; and investments in community resources, including the Recreation Outdoor Center (ROC), the interpretive center at Westwood Hills Nature Center and St. Louis Park City Hall. He is especially proud of the work the city has done around its strategic priority of race, equity and inclusion. Mayor Spano’s engagement extended well-beyond the city council, as he strengthened ties among city mayors through service on the executive committee for the Regional Council of Mayors and co-founding Minnesota Mayors Together to advance shared urban and rural prosperity in Minnesota. Spano serves on the Southwest Light Rail Transit Corridor Management Committee and on the executive committee for the Center for Transportation Studies at the University of Minnesota. Nationally, Spano is completing his second two-year term on the National League of Cities (NLC) Board of Directors; is the former co-chair of the NLC Race, Equity and Leadership (REAL) council; and is a member of the U.S. Conference of Mayors. In his announcement that he would not seek a third term as mayor, Spano said, “Being chosen by my community to serve as their mayor has been one of the greatest honors of my life. I also know that the civic health of our community relies on allowing for a variety of leadership and voices. After 12 years on the council, it’s time for me to make space for others to accept the opportunity to lead our community.” We thank Mayor Spano for his 12 years of dedicated service to the City of St. Louis Park, which included thousands of hours spent at meetings; responding to constituent questions and concerns; attending events; participating in media interviews; and a host of other duties associated with the mayor’s role. We also extend our gratitude to his family, who graciously lent their husband, father and son to serve the community for the past 12 years. Meeting: City council Meeting date: December 18, 2023 Presentation: 3b Executive summary Title: Swearing in ceremony for Canine Officer Maverick Recommended action: Mayor Jake Spano will administer the police officer oath of office to Canine Officer Maverick. Policy consideration: Not applicable Summary: Canine Officer Maverick is a German Shepherd from Slovakia and is partnered with Officer Matthew McNeely. Canine Officer Maverick graduated from 12-week training academy where he passed tests in obedience, tracking, explosive detection, and apprehension. Canine Officer Maverick’s primary role with the department will be assisting with searches, tracking and explosives detection. Maverick, along with Officer Matthew McNeely, will then train and recertify annually to ensure top performance and accountability. Financial or budget considerations: Not applicable Strategic priority consideration: Not applicable. Supporting documents: City of St. Louis Park police officer oath of office Prepared by: Bryan Kruelle, police chief Approved by: Kim Keller, city manager Page 2 City council meeting of December 18, 2023 (Item No. 3b) Title: Swearing in ceremony for Canine Officer Maverick State of Minnesota, County of Hennepin ss. City of St. Louis Park I, ______ , do solemnly swear that I will support the Constitution of the United States and of the State of Minnesota, and faithfully discharge the duties of police officer for the City of St. Louis Park, in the County of Hennepin and the State of Minnesota, to the best of my judgment and ability. Insert name Subscribed and sworn to before me this ______ day of __________, 2023. Melissa Kennedy, City Clerk } Meeting: City council Meeting date: December 18, 2023 Presentation: 3c Executive summary Title: Recognition of service for Officer Troy Peek Recommended action: Read resolution and present plaque to Troy for his years of service to the City of St. Louis Park. Policy consideration: None at this time. Summary: City policy states that employees who retire or resign in good standing with over 20 years of service will be presented with a resolution from the mayor, city manager and city council. Troy will be in attendance for the presentation at the beginning of the meeting. The mayor is asked to read the resolution for Troy in recognition of his years of service to the city. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: None. Prepared by: Barb Lamfers, HR technician Reviewed by: Rita Vorpahl, HR director Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager Meeting: City council Meeting date: December 18, 2023 Minutes: 4a Unofficial minutes City council study session St. Louis Park, Minnesota Nov. 27, 2023 The meeting convened at 6:33 p.m. Council members present: Mayor Jake Spano, Tim Brausen, Sue Budd, Yolanda Farris, Lynette Dumalag, and Margaret Rog Council members absent: Nadia Mohamed Staff present: City manager (Ms. Keller), community development director (Ms. Barton), finance director (Ms. Cruver), engineering director (Ms. Heiser), building and energy director (Mr. Hoffman), parks and recreation director (Mr. West), sustain ability specialist (Ms. Pottorff), police chief Kruelle Guests: Melissa Reed and Molly Jansen, Park Street Public Discussion items. 1.2024 Revised budget and levies. Ms. Cruver presented the staff report. Ms. Cruver noted the policy consideration for cou ncil is whether they support the proposed 2024 budget as revised. The balanced budget consists of an “all-inclusive” preliminary levy increase of 7.3%, which is less than the 7.7% preliminary levy. Council Member Brausen asked if data reflecting the exact impact of the levy reduction will be available in time for the truth in taxation hearing. Ms. Cruver stated staff is communicating with the county to have the detailed information by then, although it depends on the county. Council Member Dumalag asked if decertification happens at the same time each year or just as it comes up. Ms. Cruver stated the decertification timeline this year seemed to be fairly regular for St. Louis Park. Mayor Spano thanked staff for their work on the budget process this year. Council Member Rog also thanked staff and appreciated staff’s response to council regarding new investments in tree preservation and planting, reflecting council’s priorities. She stated eight full-time staff people feels like a lot of new hires and asked if there is a typical number hired each year. Ms. Cruver responded she did not have that information on hand but could look into it. Council Member Rog stated while she appreciates the city is not absorbing all these costs in one year, the city will ultimately be paying eight new staff, and this feels like a big personnel bump. Ms. Cruver clarified that one staff member is being fully offset by reductions in spending and is not levy-funded. She added another will be a position funded by permanent revenue, not levy revenue. The other new positions will eventually be paid for by the levy. City council meeting of December 18, 2023 (Item No. 4a) Page 2 Title: City council study session meeting minutes of November 27, 2023 Council Member Budd asked what percentage of staff growth these additional staff represent and how many staff members the city currently has. Ms. Keller stated there are just under 300 staff that are full-time, and Mayor Spano noted that eight staff members represent about 2% growth. Ms. Cruver added that the six staff positions funded by the levy is 2%, while all eight positions equal 2.5% growth. Council Member Rog inquired if it would be possible to have items be more contextual for council to have a better sense of how things will look at the end of the year. Ms. Cruver supplied that having one budget process is so important, so that each proposal can be evaluated by council, and they can look at data and criteria all at once. When decisions are made outside of this continuous process, it may feel more difficult as council is missing that “full picture”. She added what staff has tried to do with one-time spending was related specifically to the water main break and those costs being far more than what was budgeted historically. She added the biggest change was keeping funds in reserve for next year’s main budgeting decision. Rather than weighing decisions based on timing of awareness, this budget process allows council to weigh decisions based on merits. Council Member Dumalag asked if adding staff to the city’s full-time equivalent employees and appropriate staffing levels are in proportion to the city’s growth and number of residents. Ms. Keller confirmed that staff has considered expectations regarding the level of service and where funding can be leveraged most efficiently. She gave the example of moving some positions to discover best leverage, and there may be more staff growth this year vs. the last few years to catch up. Council Member Dumalag asked if learning from the functional water systems project helped with CIP, so the city can get ahead of potential expenses for next year. Ms. Heiser shared the city is conducting an infrastructure vulnerability study for water and sewer risk and failure. Based on outcomes, planning for projects will be layered on and it will take about a year for staff to facilitate this new approach. Staff will come to council with preliminary reports and requests starting in first quarter of next year. Council Member Budd queried if the old plan was driven by pavement conditions. Ms. Heiser stated that the current plan is driven by pavement condition. Going forward, the shift will be to look more at vulnerability of the underground infrastructure, not just the pavement condition. She added reconfiguring the capital plan projects will take time. Council Member Brausen inquired if the “See Snake” scope camera project covered the west half of Cedar Lake Road, Louisiana Avenue and all of Minnetonka Boulevard. Ms. Heiser stated the project assessed Cedar Lake Road and Louisiana Avenue. Due to issues with valves and other insufficiencies, See Snake did not work to assess Minnetonka Boulevard. Due to opportunity, when the county plans a reconstruction project on Minnetonka Boulevard, staff would recommend that all the watermain be replaced. Council Member Brausen asked if it is anticipated that the city will use more scope camera technology to look at other areas. Ms. Heiser confirmed this is appropriate for larger water mains, and staff is considering additional technologies as well. City council meeting of December 18, 2023 (Item No. 4a) Page 3 Title: City council study session meeting minutes of November 27, 2023 Council Member Brausen pointed out the cost to use the See Snake was approximately a quarter of a million dollars, adding he assumes some of the anticipated reserve money for capital projects will be used for this. Ms. Heiser confirmed this scope. Council Member Brausen stated he appreciates the proactive approach to avoid major issues in the future with the watermain. Regarding the addition of eight staff, he noted public safety is the biggest service provided in the community and providing high -quality service that residents trust is important, and he is happy to fund service here. He added he also agrees with more spending on tree preservation, noting this is a positive step and he appreciates all the work staff has done on this. Council Member Rog mentioned the project to reconstruct Minnetonka Boulevard, east of Highway 100 to France Avenue, taking note of the budgeted $4.2 – $5 million for the project and asked if it is all city money. Ms. Heiser stated the city is contributing about $8 million total to the France Avenue project, which involves a $4 million cost for the city’s watermain replacement as well as $4 million in other costs. She added she can get back to council on cost details. Mayor Spano observed this budget reflects the focus on roads, water and utilities characterize d as “drink, drive, flush”, as well as public safety. What he sees with this budget reflects what the community has asked for and outcomes, adding he is comfortable with staff recommendations. Council Member Budd inquired about the five-year outlook and what that looked like last year. Ms. Cruver stated last year’s projection into 2024 was projected to be above 8% increase, and this was brought down. Council Member Budd asked about five-year inflation projections, and what guidance staff uses on this. Ms. Cruver stated she usually uses an estimate of 4-5% in operating funds for increases in salary, insurance and benefits, as well as debt and known incr eases. Council Member Budd stated she supports staff’s recommendations. Council Member Farris asked why funds for police sergeants are being put into 2025. Ms. Cruver stated it has to do with how their hiring will be implemented, over time. Council Member Dumalag noted in 2020 the levy projections were above 7%, and noted this is not a surprise and she understands the rationale for how the city got here. She added she supports the staff recommendations and appreciates the time staff has put into this. Council Member Brausen noted in 2020 there was not an 8% inflation rate as there is today, and added construction project costs continue to increase, while replacement of infrastructure continues to be a high cost for a 125-year-old city. Council Member Rog noted she is supportive of the staff recommendations. She asked staff about the Westwood Hills Nature Center solar panels in 2024 and if these are new or replacements. Mr. West stated the solar panels are new additions, and this will work toward our zero energy goals. City council meeting of December 18, 2023 (Item No. 4a) Page 4 Title: City council study session meeting minutes of November 27, 2023 Council Member Rog asked about the Dakota Park LED light replacements, noting this seems to have been done recently, and now it is being done again. Mr. West stated he will check on the details and get back to council. Council Member Rog asked when the Webster Park upgrades will be starting. Mr. West stated MnDOT is ready to give an appraisal of the property, which is the next step. Council Member Rog asked about the Westwood Hills Nature Center paver parking lot. Mr. West stated there are pavers in the parking lot now, which are part of the storm water retention system. Council Member Rog asked about the indoor drone. Chief Kruelle stated the overarching reason for this is to increase safety by sending in a drone to assess a situation, rather than sending an officer in, and to help with de-escalation of a situation. Council Member Rog asked would this drone issue normally come before council before they are in use, and as they are implemented, for awareness. Chief Kruelle responded t he police department would be happy to provide additional information on this topic in the future to the council, in whatever form was preferred. He added there are many police agencies currently leveraging this technology, as such, any future deployment of the technology by our department would be in line with established response models elsewhere. Council Member Rog asked about Zuercher Crime View Dashboard. Chief Kruelle stated that is a line item. Ms. Cruver added this item is funded in year six or seven for the CIP. Council Member Rog asked about security cameras in Birchwood Park and if they are in place already. Chief Kruelle stated he did not think they were in Birchwood Park. Ms. Keller stated these are actually new cameras, and noted cameras are in some but not all parks within the city. 2. 2024 Draft legislative positions and priorities. Ms. Reed, Ms. Jansen and Ms. Pottorff presented the staff report. Mayor Spano asked about penalties related to causing bodily harm to a code enforcement officer. Ms. Reed stated this would be enhanced to a gross misdemeanor, but nothing higher, adding there has been pushback related to higher costs and fees. She added ag gravated carjacking was the only new criminal penalty that was created last session. Mayor Spano observed that the legislature believes there is sufficient criminal penalty in place for assault of this nature. Ms. Reed agreed and stated it is still an assault without the enhancement. Council Member Brausen asked about tourism and hotels and if these would be similar to the city’s special service districts and be self-funding. Ms. Reed stated yes. City council meeting of December 18, 2023 (Item No. 4a) Page 5 Title: City council study session meeting minutes of November 27, 2023 Mayor Spano argued that code-enforcement officials do not have the option to not enforce code. He added the city asks them to go into places where they do not have the option to say no. He asked Ms. Reed to remind legislators of this and asked if there is a reasonable way to include this when looking at criminal penalties, especially when these staff must go inside private residences. Council Member Dumalag added she also would appreciate another look at the issue also, especially being the daughter of a code enforcement officer herself. Council Member Brausen asked about the bonding bill and how much support the bill must receive to be passed. Ms. Jansen stated it requires a 2/3 vote, and noted this was used as a bargaining chip. She noted because of the leverage, bonding bills can sometimes be the last ones to pass. Ms. Reed added there will probably be two bonding bills again, one from general obligation bonds that the city will be tracking and another cash bonding bill from general funds. The cash bonding will not have the same debt requirements, but very similar match and other requirements as the general obligation bonds. Council Member Rog noted a salt reduction resolution to provide limited liability protection to multi-unit property owners if they completed a training course. She noted Edina signed on to the measure and St. Louis Park also wanted to sign on. Ms. Jansen stated this issue has not yet gone before the legislature because of liability issues and noted that Rep. Kraft may bring it back for consideration. Council Member Rog noted corporate ownership of single-family homes and concerns here. She noted this is still being studied, and referenced a previous bill that would commit the legislature to continued study of how it might impact affordable home ownership. She asked that this also be included in the city’s legislative issues priorities. Ms. Jansen stated they would look into this. Council Member Budd asked whether the rental assistance measure had passed. Ms. Reed replied it did not make it out of the senate judiciary committee and noted Senator Latz had concerns. Council Member Budd asked how that would be handled if an issue is a priority for the city, but Senator Latz may have concerns about it. Ms. Reed replied that council and Senator Latz would need to have a conversation then about the issue. Mayor Spano asked if there has been any discussion about pay equity studies. Ms. Reed replied she has not heard about any statewide pay equity studies. Ms. Keller added that city studies are done regarding this issue. Mayor Spano affirmed that would be a priority to look into. Council Member Budd asked about removing a fee cap on adult -use cannabis service. Ms. Reed stated it is very low, around $250-500, and does not cover the staffing costs necessary for administration of a permit. Mr. Hoffman clarified the city currently has a license, but this will end when the state adopts their license. He added the state will still allow cities to have a regulatory role, and the city could issue a registration and be part of the state licensing process. He added the state will limit the amount of initial and annual registration fees, however this is not consistent with a fee for service approach, as the city may not be able to recoup the necessary compliance costs. City council meeting of December 18, 2023 (Item No. 4a) Page 6 Title: City council study session meeting minutes of November 27, 2023 Council Member Brausen asked if the city coordinates the legislative lobby around municipal issues. Ms. Keller confirmed coordination around city issues as well as policies, as much as possible. Council Member Brausen gave the example of a housing issue arising in the city; would it be best to talk with the League of Minnesota Cities first if the city wants to look at legislation? Ms. Keller replied that if the issue has applicability across the state, the league is a good place to start and look at unintended impacts of how it might work in a first-tier suburb versus other suburbs. Council Member Budd asked about the language on the MN Healthplan and Medicare -for-all or universal health care. Ms. Reed stated the Medicare expansion was a state choice. Ms. Keller added this can be looked at further by the lobbyists, and Ms. Reed agreed. Mayor Spano suggested that the lobbyist team look at different ways to organize and present priorities as the council moves more into system work. Council Member Rog asked about the state match for local housing trust funds, and noted it is not mentioned in the report. Ms. Barton confirmed that it passed during last year’s legislative session. Ms. Keller summarized that staff will work on the two items council flagged, and council will see this document again before voting on it. Council will again meet with legislators prior to the 2024 session beginning in February. Written Reports. 3. Housing + neighborhood-oriented development system wrap-up 4. Via Sol update – Ward 2 Council Member Dumalag referenced the Via Sol written report and asked if the city paid for the re-generator. Council Member Brausen replied that Via Sol was supposed to pay. Ms. Keller said staff worked hard to make sure the city’s interests were represented as part of the purchase agreement, ensuring that the city has been made whole. Mayor Spano stated in future he would like council to be more mindful of these situations and ask if there are risks or is this scenario a stretch, and to be more mindful of these types of concerns and questions. Council Member Brausen stated at least affordable housing came out of this project, and the council felt they took the essential steps necessary to protect the city. Council Member Rog asked about paying back the loan when there is TIF involved. Ms. Keller replied she would like the EDA attorney present for that discussion to explain how that works. Ms. Keller stated this sale is set to close in December, and noted if council does not support the contract amendment, it could result in the failure of the sale and a full cancellation of the purchase agreement. She added this will be discussed further by council at the December 4th or 18th meetings. City council meeting of December 18, 2023 (Item No. 4a) Page 7 Title: City council study session meeting minutes of November 27, 2023 Council Member Dumalag stated there should be further discussion about this item by the council and she would appreciate discussion prior to the meeting where a decision is made. Council Member Rog agreed. Ms. Keller stated staff will discuss this with the EDA attorney to see when this discussion can happen prior to December 18. Council Member Rog added she would also like a conversation about what went wrong, and mistakes made. Ms. Keller confirmed this conversation could happen with housing staff as a systems discussion as well. Council Member Dumalag added this could be a conversation where lessons are learned. The meeting adjourned at 8:35 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: December 18, 2023 Minutes: 4b Unofficial minutes City council meeting St. Louis Park, Minnesota Dec. 4, 2023 1.Call to order. Mayor Spano called the meeting to order at 6:37 p.m. a.Pledge of allegiance b.Roll call Council members present: Mayor Jake Spano, Tim Brausen, Sue Budd, Lynette Dumalag, Yolanda Farris, Nadia Mohamed, and Margaret Rog Council members absent: none. Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick), finance director (Ms. Cruver), solid waste manager (Ms. Fisher) Guests: city residents 2.Approve agenda. It was moved by Council Member Mohamed, seconded by Council Member Dumalag, to approve the agenda as presented. The motion passed 7-0. 3.Presentations – none. 4.Minutes. a.Minutes of Nov. 13, 2023 special city council meeting Council Member Rog requested a revision to page 6 to state: “Council Member Rog asked what the Three Rivers tree philosophy or policy is in preserving trees.” Council Member Rog requested a revision to page 7 to state: “Council Member Rog added that Louisiana Avenue is currently not in the CIP.” It was moved by Council Member Brausen, seconded by Council Member , to approve the Nov. 13, 2023 special city council meeting minutes as amended. The motion passed 7-0. b.Minutes of Nov. 13, 2023 study session and Nov 20, 2023 city council meeting City council meeting of December 18, 2023 (Item No. 4b) Page 2 Title: City council meeting minutes of December 4, 2023 It was moved by Council Member Rog, seconded by Council Member Farris, to approve the Nov. 13, 2023 study session and the Nov. 20, 2023 city council meeting minutes as presented. The motion passed 7-0. c. Minutes of Nov. 20, 2023 special study session Council Member Rog requested a revision to page 2 to state: “Council Member Rog said she was interested in learning more about Council Member Mohamed’s ideas on distance from schools.” It was moved by Council Member Rog, seconded by Council Member Farris, to approve the Nov. 20, 2023 special study session minutes as amended. The motion passed 7-0. 5. Consent items. a. Approve city disbursements b. Second reading and adopt Ordinance No. 2674-23 for 2024 utility and solid waste fees c. Resolution No. 23-155 awarding 2024 arts and culture grants d. Resolution No. 23-156 accepting funding from the Department of Natural Resources ReLeaf Community Forestry grant e. Resolution No. 23-157 accepting funding from the Department of Natural Resources shade tree bonding grant f. Resolution No. 23-158 supporting a grant application for the West End trail connection Mayor Spano requested that consent item 5b be moved to regular business as item 7a. It was moved by Council Member Mohamed, seconded by Council Member Dumalag, to approve the consent items as revised; waive reading of all resolutions and ordinances; and to move consent item 5b to regular business 7a. The motion passed 7-0. Council Member Brausen asked to comment on consent items 5d and 5e. He noted that these both refer to accepting funding from the Department of Natural Resources. One is a $371,100 grant to provide tree replacement and treatment for emerald ash borer fundi ng, specifically for homes that make 80% area median income or less. He encouraged households that need funding for tree treatment to be aware of this program and to apply for funding for assistance in tree maintenance. Council Member Brausen added the city is also receiving a grant for $480,282 in a shade tree bonding grant to allow the city to replace ash trees affected by emerald ash borer. The grant will allow replacement of up to 474 of trees considered less significant in the next year. Council Member Brausen thanked staff for finding this funding to address these needs. City council meeting of December 18, 2023 (Item No. 4b) Page 3 Title: City council meeting minutes of December 4, 2023 Council Member Mohamed asked to comment on consent item 5c regarding arts and culture grants. She was excited to see who was awarded funds including the Thai Cultural Council of Minnesota and the Community Storytelling Forum, adding she was happy to see this investment in the city’s culture. 6. Public hearings. a. Truth in Taxation hearing Ms. Cruver presented the staff report. Mayor Spano opened the public hearing. Jake Werner, 2148 Glenhurst Ave., stated he is a 32-year resident of St. Louis Park and from 2018 to 2023 his property taxes increased by 37%. His pension over the same period increased 7.5%, adding this is not sustainable for him. He stated this would be more acceptable if he felt the city was benefiting from these hefty increases and if the city felt more livable, aesthetic and greener, more pedestrian and bike friendly, and if there was a highly state-rated public school system. He opined this is not the case and the city has changed so rapidly he hardly recognizes it any longer. Mr. Werner added city leaders excel at building multi-story apartment buildings and big box retailers and healthcare facilities, all of which bring in big traffic and big parking lots. All of this increased traffic and emissions have a detrimental impact on air quality. He added city leaders have excelled at bringing in density. He estimated the number of residents per square mile in St. Louis Park to be 2,295 in comparison to Edina at 1,507, and Golden Valley at 975. He opined that rental units have become the dominant residential housing type in St. Louis Park and expressed concern that big corporations were buying properties to be offered as rental s. He felt this is detrimental to the city and the fabric of the city is stronger when homes are owner - occupied. Mr. Werner stated the tree canopy is declining at a crucial time for the climate. He expressed concern that the livability index has declined, and residents are moving away. He concluded that city leaders need to stop large development projects and focus on a human scale development plan. Dale Anderson, 2700 Vernon Ave., noted that in the minutes of the Nov. 20 Economic Development Authority meeting, Mayor Spano commented on TIF being a successful tool where forgoing monies now is an investment in future returns. Mr. Anderson expressed concerns regarding his understanding that property owners pay no TIF for up to 25 years and current taxpayers pay more than developers to fund projects and services. He stated he does not see how this keeps costs down for homeowners and felt Mayor Spano should have addressed this in his previous comments. Mr. Anderson opined that TIF is a tax tool with no benefit and while affordable housing is a worthy goal, there are not good tax tools to help achieve that goal. He stated high tax rates place a burden on low-income households exacerbating income inequality and reducing City council meeting of December 18, 2023 (Item No. 4b) Page 4 Title: City council meeting minutes of December 4, 2023 affordability. He noted there is general support for TIF on this council, however, he asked if council is so supportive of TIF, why council does not also address the possible consequences of using it. Mr. Anderson noted his property tax statement does not mention TIF and questioned what the benefit is to the city and the taxpayer. Mayor Spano closed the public hearing. There is no action to be taken by the council this evening. 7. Regular business. a. Second reading and adopt Ordinance 2674-23 for 2024 utility and solid waste fees Ms. Cruver and Ms. Fisher presented the staff report. Mayor Spano stated he received emails and calls about this item. He noted this is the first solid waste contract negotiated since the pandemic, and cost increases are continuing, along with scarcity of resources and staff. He recalled that when bids went out for new solid waste service providers this year, council asked staff to repeat the bid process for yard waste providers. While the new service providers are more expensive than the council prefers, the second round of new bids were better, and the costs will be spread out over time. Mayor Spano noted there is not a perfect answer to this issue, but the council tried to find a good balance. He supported this plan while realizing that it will be harder to afford solid waste services this year. He added that while working to be good stewards of the public’s money, the city does negotiate on the city’s behalf, and he felt this was a responsible solution. Council Member Brausen stated he appreciated the mayor’s comments and added this is the reality for all that live in this community, including council members. He stated he is in favor of this plan and will support it. Council Member Rog referenced a chart prepared by staff and encouraged folks to refer to it. She pointed out that costs will be paid over time, and the overall utility bill is increasing by 15%, not 45%, as was noted in the Sun Sailor. Council Member Dumalag added staff has been working on this issue since last year and 12 requests for proposals were sent out. She noted this process has involved months of discussion and staff went back to get more bids during the process. Costs would have continued to increase incrementally over time, and council wanted to do a larger cost increase up fro nt and then reduced cost increases over time. Council Member Budd observed this action more clearly reflects what is happening in the market, so making the adjustment now and increasing over time is a 6% savings in the year over year costs, adding this is the optimal choice. City council meeting of December 18, 2023 (Item No. 4b) Page 5 Title: City council meeting minutes of December 4, 2023 Colleen Kruit, 2925 Louisiana Ave., asked if there is any way to opt out of these fees and if it saves much money. Mayor Spano responded that she could discuss her options with Ms. Fisher after the meeting. Ms. Kruit asked about the 45% increase, stating she did not understand that in the Sun Sailor. Ms. Cruver clarified that water, storm sewer, solid waste and sanitary are all included in utility services. The 45% increase only refers to the solid waste services portion. The other services are only increasing by about 6%. The overall increase for all utilities is 15% for the median residential user. Council Member Rog added there is no cost savings in residents opting out of recycling or organics collection, noting those services are included in all solid waste collection. Ms. Fisher added the city is required by state statute to ensure that residents who choose to recycle are not charged more than residents who choose not to. Chris Saley, Stanlen Road, stated there was an excellent program before with incentives for organics collection and asked if it was still available. Ms. Fisher stated the incentive program was available as an introductory subsidy when the city had a separate charge for organics collection. Later, council adjusted all solid waste rates to include the cost of organics collection so residents would have fewer barriers to participation. It was moved by Council Member Brausen, seconded by Council Member Rog, to approve second reading and adopt Ordinance 2674-23, 2024 utility and solid waste fees. The motion passed 7-0. 8. Communications and announcements. a. Planning commission meeting minutes of August 16, 2023 b. Planning commission study session minutes of August 16, 2023 c. Planning commission study session minutes of September 9, 2023 d. Planning commission study session minutes of November 1, 2023 Ms. Keller noted next Monday, the Holiday Train will come through town at 6 p.m. with musical entertainment, viewable from the West side of the train tracks. Council will meet on Tues., Dec. 12 for a study session. Mayor Spano added the Holiday Train is a fundraiser for STEP with Canadian Pacific Railroad and from donations from residents as well. Council Member Mohamed noted Friday, Dec. 8, is the first day of Hanukkah and she wished all Jewish residents in St. Louis Park and across the state a happy holiday. 9. Adjournment. The meeting adjourned at 7:35 p.m. City council meeting of December 18, 2023 (Item No. 4b) Page 6 Title: City council meeting minutes of December 4, 2023 ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: December 18, 2023 Minutes: 4c Unofficial minutes City council special study session St. Louis Park, Minnesota Dec. 4, 2023 The meeting convened at 7:46 p.m. Council members present: Mayor Jake Spano, Tim Brausen, Sue Budd, Yolanda Farris, Lynette Dumalag, Nadia Mohamed, and Margaret Rog Council members absent: none Staff present: City manager (Ms. Keller), redevelopment administrator (Ms. Monson), development director (Ms. Barton) Guests: Mr. Walander, Receiver for Bigos Properties Discussion items. 1.Via Sol information session. Ms. Monson presented the report. She noted the policy consideration is: Do the proposed redevelopment contract and PUD amendments further the city’s strategic priority to provide a broad range of housing and neighborhood-oriented development. Council Member Dumalag stated many things moved within this deal and now Bigos is a potential new buyer. She noted the unit mix changes, removing the 80% AMI and moving to 60% AMI and the rest would be market rate, and asked if this still meets and exceeds the inclusionary housing rates. Ms. Monson stated that is correct. Council Member Dumalag noted the 5,000 square foot of commercial space and why that is recommended to be removed. Ms. Monson stated the primary request is that the project without light rail as it currently stands does not have enough parking to support both the residential components and 5,000 square feet of commercial space. Council Member Dumalag asked about removal of the green aspects, and if they will keep the 1 - acre urban garden. Ms. Monson stated yes, that is correct. Council Member Dumalag asked if there is preference on keeping solar panel and if they can still get recertification if the owners apply. Ms. Monson stated that is correct adding that is pending proof that the solar panels have been installed on the building. Council Member Dumalag asked about parking and noted currently there are 220 spaces and a goal to add more. Ms. Monson stated they want to add 33-38 spaces depending on how much landscaping is added to the interior of the parking area. City council meeting of December 18, 2023 (Item No. 4c) Page 2 Title: City council special study session meeting minutes of December 4, 2023 Council Member Dumalag asked about the TIF funding decrease and reference for 4D. She also asked if that is for the affordable units and not the entire project. Ms. Monson stated that is correct. Council Member Dumalag asked if this deal does not go through, would the council see another similar request. Ms. Monson stated that is correct. Mr. Walander noted the request Bigos made have been consistent and no one wanted to take this project with all the green and affordable co mponents. He noted the rents had been decreased from $400,000 per month to $280,000 per month and noted this is more realistic to where rents should be for this project. He added the occupancy one year ago was at 1 when he came to the project and have now worked up to a plateau of about 80% occupancy rate, noting this is a $675,000 loss to the project. He noted most struggles have been at the 80% AMI units and leasing them, along with the parking issues. Council Member Rog asked if there are any units in the 80% AMI that are currently being leased. Mr. Walander stated yes, noting there has been some success. He noted the studios, and 1 bedroom is more than he would have done and stated they have been a struggle. Council Member Rog asked when the 80% AMI goes away what happens to those renters. Ms. Walander stated there is a natural amount that can be charged on these units. He stated there is not a whole lot of room to adjust as they are very small and no washer or dryer and are more entry level units. Council Member Rog stated it sounds like people could be displaced. Mr. Walander stated he does not know enough about the rules around that. Ms. Barton stated current renters would not be able to be displaced when the rental affordability is decreased in the units. Council Member Rog asked if there is a timeline for the amenities that parallels the construction of the previously included components. Ms. Monson stated that is correct, adding the request for the amendments to the contract will come back to the council, and then a request will be submitted for an amendment to the PUD also. She added that building permit plans will be submitted and after changes are completed, the minimum requirements will be completed and then the certificate of occupancy will be submitted. Council Member Mohamed appreciated this coming back to council. She noted this is still a good project and council would vote yes on it again. She stated there is no point in worrying over this now, the city needs to look at next steps, and she will support it and the plans in place. She wished the new owners the best of luck and appreciated staffs’ work on this also. Council Member Brausen stated he was a proponent of Via Sol but does understand the market realities will not allow this to happen as it was planned originally. He stated he appreciates work done by staff and the receiver and he will support this. Council Member Rog added she is also excited to see this project activated and come to fruition in the best way possible. City council meeting of December 18, 2023 (Item No. 4c) Page 3 Title: City council special study session meeting minutes of December 4, 2023 Council Member Budd added she is also excited to see it move ahead and was happy to see the bikes staying and after light rail arrives, it will bring the other items to fruition as well. Council Member Dumalag stated she appreciates staff working on this and the goal is to make sure projects work. She appreciates taking time to talk about this and it’s important that people have a place to live. She added she is excited to see what will come before council and with the new amenities and looks forward to more discussion as this comes back to council. Mayor Spano added he will also support this. He stated every project that comes to council evolves as it moves forward and none of them is perfect. He added this project is still excellent, is the most energy efficient in town, is a good project, and we can’t lose sight of that. He stated this is not the project we dreamed it would be, but he is very glad the council went for it, even though it did not go the way they wanted it to. He stated we have an exceedi ngly risk-tolerant community, they are willing to let council try to get big things done, and noted it was ambitious, and he looks forward to seeing it fully leased. The meeting adjourned at 8:18 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Jake Spano, mayor Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5a Executive summary Title: Resolution recognizing Officer Troy Peek upon retirement from police department Recommended action: Read resolution and present plaque to Troy for his years of service to the City of St. Louis Park. Policy consideration: None at this time. Summary: City policy states that employees who retire or resign in good standing with over 20 years of service will be presented with a resolution from the mayor, city manager and city council. Troy will be in attendance for the presentation at the beginning of the meeting. The mayor is asked to read the resolution for Troy in recognition of his years of service to the city. Financial or budget considerations: Not applicable. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Rita Vorpahl, HR director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 5a) Page 2 Title: Resolution recognizing Officer Troy Peek upon retirement from police department Resolution No. 23-___ Resolution of the City Council of the City of St. Louis Park, Minnesota recognizing the contributions and expressing appreciation to Police Officer Troy Peek Whereas, Troy Peek began his career as a police officer with the City of St. Louis Park on July 29, 1999; and Whereas, Troy served as an Investigator from 2001 through 2003 with the police support services division; and Whereas, Troy served as a High School Liaison Officer from August 2010 through June 2013 at St. Louis Park High School; and Whereas, Troy served as a Use of Force and Firearms Instructor for 18 years and as a Taser instructor for 8 years; and Whereas, Troy served as a field training officer, guiding the on-the-job training and mentoring new officers, for over 9 years; and Whereas, Troy served as an advisor to our Police Explorers Post from 2018 through 2021; and Whereas, Troy served as an investigator for the Southwest Hennepin Drug Task Force (DTF) for four years, starting in 2019; and Whereas, Troy served as a long-tenured instructor for future officers at an area law enforcement skills training center; and Whereas, Troy served as a member of the Special Weapons and Tactics (SWAT) team for over 13 years between 2004 and 2022, in the roles of sniper and operator; Now therefore be it resolved that the city council of the City of St. Louis Park, Minnesota, by this resolution and public record, would like to thank Troy Peek for his outstanding contributions and over 24 years of dedicated service to the City of St. Louis Park and wish him the best in his retirement. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5b Executive summary Title: Resolution accepting work and authorizing final payment for Louisiana Avenue Bridge (4018-1700) - Ward 2 Recommended action: Motion to adopt resolution accepting work and authorizing final payment in the amount of $47,071.16 for the Louisiana Avenue Bridge project with Redstone Construction, LLC – city contract no. 119-20. Policy consideration: Not applicable Summary: On Nov. 2, 2020, the city council awarded a contract in the amount of $9,062,257.11 to Redstone Contraction, LLC for the Louisiana Avenue Bridge project. The project included bridge and watermain replacement, street reconstruction, installation of sidewalk, trail, and cycle track, signal system improvements, landscaping, and ADA upgrades. The project began in the fall of 2020 and was opened to users in the fall of 2021. The contract has remained open for landscape establishment and for the completion of final items. The contractor completed the work within the contract time and according to the approved plans and specifications. The final contract amount, $9,414,232.54, is $351,975.43 (3.9%) more than the original contract amount. This is within the planned contingency and there are adequate funds to cover these costs. Details on the contract changes and quantity overruns are included in the discussion section of this report. Financial or budget considerations: The final cost of the work performed by the contractor under contract No. 119-20 has been calculated as follows: Original contract price $9,062,257.11 Change orders $214,743.48 Quantity overruns $137,231.95 Final contract amount $9,414,232.54 Previous payments $9,367,161.38 Balance due $47,071.16 This project was included in the city’s Capital Improvement Plan (CIP). Funding was provided by the following sources: General obligation bonds, State of MN bridge bonding, Municipal state aid, franchise fees, and utility funds. Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: Discussion Resolution Prepared by: Joseph Shamla, engineering project manager Reviewed by: Debra Heiser, engineering director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 5b) Page 2 Title: Resolution accepting work and authorizing final payment for Louisiana Avenue Bridge (4018 -1700) - Ward 2 Discussion Background: On Nov. 2, 2020, the city council awarded a contract for the Louisiana Avenue Bridge project. This project was advertised, bid and awarded to Redstone Contraction, LLC in the amount of $9,062,257.11. The project included bridge and watermain replacement, street reconstruction, installation of sidewalk, trail, and cycle track, signal system improvements, landscaping, and ADA upgrades. The final contract amount, $9,414,232.54, is 3.9% more than the original contract amount. During construction, some unexpected items came up that added to the cost of the project. There were change orders approved on the project, along with quantity overruns during construction that led to increased costs. The change orders were for additional work, which increased the cost of the contract by $214,743.48, resulting in a final contract amount for this project of $9,277,000.59. There were also quantity overruns resulting in a cost increase of $137,231.95, which brought the total cost of the project to $9,414,232.54. This additional work was necessary to ensure quality bridge, street, sidewalk, and utility infrastructure for years to come. Items that were added to the project to successfully build and maintain the new infrastructure were done by change orders. What follows is a summary of the change orders for this project: •Additional work was needed on the bridge, including an upgrade to the bridge joint to meet new standards, additional reinforcement bars, spikes to deter birds from sitting above the trail along the creek, and painting of the bridge and retaining walls. Cost = $80,085. •Changes were made to the project plans for retaining walls. An existing wall needed to be salvaged and reinstalled. Also, there were areas in which the footings of the retaining wall were too close to trees, which required the removal of additional trees. Cost = $18,045. •During construction, the construction coordinator discovered a layer of peat below the flow line of the new storm sewer. This peat needed to be removed to construct the storm sewer on stable ground. Cost = $52,000. •Watermain replacement was completed with this project. Additional work was required for a water service as the property owner was adding fire suppression to their building. Also, the watermain hanger system for the bridge was designed with two different metals. Combining metals of different types can result in premature failure. Staff modified the plans so that the hanger system was composed of one type of metal. Cost = $30,745. •The concrete which was to be constructed under the bridge and on the trails leading along the creek, was originally 4 inches thick. After consulting the operators who will be tasked with removing snow and performing other maintenance, it was determined that to construct and maintain this area, the thickness needed to be changed to 6 inches thick. City council meeting of December 18, 2023 (Item No. 5b) Page 3 Title: Resolution accepting work and authorizing final payment for Louisiana Avenue Bridge (4018 -1700) - Ward 2 Cost = $17,550. •There were miscellaneous items that were needed for this project, which were not anticipated as a part of the original plan. The original plan was to have the conduit for fiber as a part of this contract and install the fiber into the conduit through a separate contract. The IT department requested the fiber be installed as a part of this contract. Also, it was determined that bollards were needed along the trail and adjacent to the semi-truck access to a neighboring building to keep the trucks from driving on and damaging the city trail. The contract also included an incentive for compacting the bituminous to high standards. This results in an increase in the cost of the project. Cost = $16,320. The total additional cost for quantity overruns on this project is $137,231.95. This can be attributed to the following increases to plan quantities: •To upgrade the sidewalks to meet ADA requirements, more sidewalk panels needed to be removed and replaced. •During the installation of the piling, additional piling was needed to ensure the structural stability of the bridge foundation. •The bridge required more riprap to be installed along the creek to stabilize the shore. •The quantities for landscaping items were also larger than originally estimated. Financial or budget considerations: The final contract cost of the work performed by the contractor under contract No. 119-20 has been calculated as follows: Original contract price $9,062,257.11 Change orders $214,743.48 Quantity overruns $137,231.95 Contract amount $9,414,232.54 Previous payments $9,367,161.38 Balance due $47,071.16 This project was included in the city’s Capital Improvement Plan (CIP). Funding was provided by the following sources: General obligation bonds, State of MN bridge bonding, Municipal state aid, franchise fees, and utility funds. Due to the nature of our construction projects, unforeseen circumstances, and resident feedback, it is not unusual to have additional work added to our projects. To address this, when the bid is awarded, we assume a 5% contingency for all aspects of the project. The costs detailed above represent a 3.9% increase to this project. This is within the planned contingency and there are adequate funds to cover these costs. City council meeting of December 18, 2023 (Item No. 5b) Page 4 Title: Resolution accepting work and authorizing final payment for Louisiana Avenue Bridge (4018 -1700) - Ward 2 Resolution No. 23-_____ Authorizing final payment and accepting work for the Louisiana Avenue Bridge City Project No. 4018-1700 Contract No. 119-20 Be it resolved by the city council of the City of St. Louis Park, Minnesota, as follows: 1.Pursuant to a written contract with the city dated November 2, 2020, Redstone Construction, LLC has satisfactorily completed the Louisiana Avenue Bridge, as per Contract No. 119-20. 2.The engineering director has filed her recommendations for final acceptance of the work. 3.The work completed under this contract is accepted and approved. The final contract cost is $9,414,232.54. 4.The city manager is directed to make final payment in the amount of $47,071.16 on this contract, taking the contractor's receipt in full. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5c Executive summary Title: Temporary on-sale intoxicating liquor license – Beth El Synagogue Recommended action: Motion to approve a temporary on-sale intoxicating liquor license for Beth El Synagogue at 5225 Barry Street West on January 20, 2024. Policy consideration: Does the applicant meet the requirements for issuance of a temporary on-sale intoxicating liquor license? Summary: Beth El Synagogue applied for a temporary on-sale intoxicating liquor license for a fundraising event taking place on January 20, 2024. The fundraiser will be held at the Beth El Synagogue and liquor will be served from 6:00 – 10:00 p.m. Beth El has contracted With a Twist Bartending Service for serving their event. With a Twist Bartending Service is located at 7600 W 27th St. #219 in St. Louis Park. The police department completed a background investigation on the principals and found no reason to deny the temporary license. The applicant meets all requirements for the issuance of the license, and staff recommends approval. Financial or budget considerations: The fee for a temporary liquor license is $100 per day of the event. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None. Prepared by: Amanda Scott-Lerdal, deputy city clerk Approved by: Kim Keller, city manager Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5d Executive summary Title: Approve agreement for professional services with Campbell Knutson Recommended action: Motion to approve agreement for professional services with Campbell Knutson. Policy consideration: Does the city council support the proposed amendments to the agreement for professional services with Campbell Knutson? Summary: Campbell Knutson has provided professional legal services to the city since 1996. For the first time since 1996, the firm has proposed amendments to modernize the language within the agreement. The scope of services remains substantively similar to what was originally approved by the city council when the firm was hired. The substantive change to the agreement relates to fees for services. In 2023, the rate for attorney services was $170 per hour. The proposed rate for 2024 is $180 per hour. Additionally, beginning in 2025, the firm is proposing that rate increases occur annually at a rate equivalent to the cost-of-living adjustment (COLA) given to nonunion employees. Since 1996, the firm has increased rates four (4) times. Past increases were generally approved by the city manager because they were processed as addendums to the existing contract with no other changes to contract language and approval of the cost fell within the statutory limits of the city manager’s authority. While the proposed rate increases continue to fall within the limits of the city manager’s authority, the proposal to update the language of the entire contract and the switch to annual fee increases beginning in 2025 warrant approval by the city council. History of fees for services: Year Fee % increase since last change 1996 •$100/hour for attorneys •$60/hour for law clerks/paralegal Original fee - July, 1996 1999 •$110/hr. for attorneys •$65/hour for law clerks/paralegal •10.0% total increase over 2.5 years •8.3% total increase over 2.5 years 2013 •$160/hr. for attorneys •$80/hour for law clerks/paralegal •45.5% total increase over 14 years •23.1% total increase over 14 years 2015 •$165/hour for attorneys •$82.50/hour for law clerks/paralegal •3.1% total increase over 2 years •3.1% total increase over 2 years 2022 •$170/hour for attorneys •$85/hour for law clerks/paralegal •3.0% total increase over 7 years •3.0% total increase over 7 years Financial or budget considerations: Fees associated with legal services are included in the 2024 budget. Strategic priority consideration: Not applicable. Supporting documents: Agreement for professional services Prepared by: Melissa Kennedy, city clerk Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 5d) Page 2 Title: Approve agreement for professional services with Campbell Knutson Agreement for Legal Services between the City of St. Louis Park and Campbell Knutson, Professional Association This agreement, effective January 1, 2024, by and between the City of St. Louis Park, a Minnesota municipal corporation ("city") and Campbell Knutson, Professional Association, a Minnesota corporation ("attorney"). Now, therefore, in consideration of the mutual undertakings herein, the parties hereto agree as follows: 1.Services and relationship. A.The attorney shall furnish and perform general civil municipal legal services for the city. B.The attorney shall be engaged as an independent contractor and not as a city employee. The attorney is free to contract with other entities. 2.Term. A.The attorney shall serve at the pleasure of the city council, and this agreement may be terminated without cause by resolution of the city council. B.The attorney may terminate this agreement at any time, provided that the attorney shall give the city thirty (30) days written notice before the termination becomes effective. 3.Payment. A.General civil municipal: Attorneys $180.00 per hour Paralegals/Legal Assistants/Law Clerk $95.00 per hour B.Pass-through legal services: The customary hourly rate of the particular attorney doing the work, currently $180.00 per hour, or paralegal/legal assistant, currently $95.00 per hour, for legal services that are to be passed through to third parties according to the city’s policies. C.Meetings: Attorney attendance at any meetings, including city council and planning commission meetings, will be billed at the actual hourly rates listed in Paragraph A of this section. D.Costs: Out-of-pocket costs without mark-up. Costs include: •Westlaw and Lexis/Nexis legal research •recording fees and tract index searches •postage of 50¢ or more City council meeting of December 18, 2023 (Item No. 5d) Page 3 Title: Approve agreement for professional services with Campbell Knutson •photocopies at 20¢ per copy •color copies at 40¢ per copy •litigation (court filing fees, expert witnesses, acquisitions, subpoenas, service of process, etc.) E.Annual adjustment: Beginning in January 2025, the dollar amount and hourly and meeting rates for all services performed under this agreement shall be adjusted annually in an amount equivalent to the cost-of-living adjustment given to non-union employees. F.Payments for legal services provided to the city shall be made in the manner provided by law. The city will normally pay for services within thirty (30) days of receipt of a statement for services rendered. 4.Insurance. The attorney will purchase and maintain sufficient insurance to protect the attorney against claims for legal malpractice. 5.Miscellaneous. A.Governing law. This agreement shall be governed by the laws of the State of Minnesota. B.Assignment. The attorney may not assign or refer any of the legal services to be performed hereunder without the written consent of the St. Louis Park City Council. C.Effective date. This agreement shall become effective beginning January 1, 2024. This agreement shall not be modified or amended without the approval in writing of the St. Louis Park City Council. Dated: _______________________, 2023. City of St. Louis Park By: __________________________________ Jake Spano, mayor And: ________________________________ Melissa Kennedy, city clerk Dated: _______________________, 2023. Campbell Knutson Professional Association By: __________________________________ Soren M. Mattick Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5e Executive summary Title: Resolution approving 2024 non-union employee compensation Recommended action: Motion to adopt resolution confirming a 3.5% general increase for non - union employees effective Jan. 1, 2024. Policy consideration: Does city council wish to confirm the recommended 2024 non-union employee compensation as outlined in this report? Summary: This report details staff’s recommendation for setting non-union employee compensation for 2024. Based on a recommendation from the city’s compensation consultant, staff is asking council to confirm a 3.5% standard adjustment to the compensation plan for non- union employees, allowing for regular progression through pay ranges. Financial or budget considerations: The amount recommended has been included in the 2024 budget. Strategic priority consideration: Not applicable. Supporting documents: Discussion, Resolution Prepared by: Rita Vorpahl, HR director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Cindy Walsh, deputy city manager City council meeting of December 18, 2023 (Item No. 5e) Page 2 Title: Resolution approving 2024 non-union employee compensation Discussion Background Non-union employee compensation – 3.5% general increase effective Jan. 1, 2024: Our compensation plan, which was adopted in 1997 and revised in 2017, allows the city manager to approve the standard adjustment based on information such as market value data, the CPI, and the general financial condition of the city. Our positions are reviewed on a regular basis and compared to the market, which includes metro area cities (suburbs) with populations over 25,000 but less than 90,000, as required by our compensation plan approved by city council. As a reminder, our non-union compensation plan was updated in 2017 to reflect target pay at the 85th percentile of the market based on above average employee performance. Saado Abboud, principal consultant with Keystone Compensation Group, has reviewed our pay plan and made a recommendation for 2024 pay increases. Mr. Abboud has recommended that pay maximums for St. Louis Park would remain competitive in 2024 if increased by 3.0 - 3.5%. City staff are recommending a 3.5% increase based on what is in the 2024 budget . Employee performance and pay: The increase for non-union employees will be applied in accordance with our compensation plan. In our plan, a non-probationary employee (probation is typically six months) with above average performance receives up to double the standard increase to progress through the pay range until they reach the pay line (maximum). Positions at the maximum, employees on probation, and employees who do not have above average performance will receive the standard adjustment of 3.5%. Employees with unsatisfactory performance do not receive an annual increase in pay. Directors are responsible for making recommendations to the city manager on employee performance. The city manager makes final determination on employee pay increases based on performance. City manager salary  The contract for the city manager states that base salary and benefits must be set when salaries are established for other non-union employees. Below is the current approved city manager compensation:  •2023 salary range set for the city manager at $198,590 - $248,238. •2023 city manager annual salary is $200,340 annually ($96.317/hour for 2,080 work hours in 2023), not including car allowance. Car allowance of $500 per month *12 =$6,000 annually. How is the city manager’s pay range set?  In 2017, Keystone Compensation Group and Principal Consultant Saado Abboud revised a regional peer group to survey the base salary for the city manager position and use d that information to establish a market value salary range. All cities were outside of Minnesota since Minnesota salaries are capped by state statute. The peer group of comparable cities based on population size and economic group contains 27 cities in seven Midwestern states.  In keeping with past practice, staff recommend the 2024 salary range for the city manager is set consistent with other non-union employees at 3.5% above the 2023 range, with the 2024 range City council meeting of December 18, 2023 (Item No. 5e) Page 3 Title: Resolution approving 2024 non-union employee compensation being $205,540-$256,926. The city manager would be eligible for a double the standard increase to progress through the pay range until they reach the pay line (maximum). In 2023, the Minnesota Legislature repealed the salary cap restricting total compensation. Our City Manager salary will no longer be tied to the salary cap. It is recommended that the city manager receive a regular increase (to $214,234) on Jan. 1, 2024 and have her annual review in March 2024. After the annual review, council could consider reviewing the peer market and 2024 compensation based on the updated considerations. What is the recommended 2024 city council pay? In keeping with past practice, it is recommended that the pay for city council members increase in an amount equal to the cumulative adjustments for our non-union employees since the last adjustment. Council salary adjustments occur after each regular municipal election as set forth by Ordinance No. 2480-15. The last adjustment was approved in 2021. Non-union employees received a 3% increase for 2023. A total increase of 6.5% is recommended for 2024. General comment: Copies of the compensation plan are available from the city clerk. City council meeting of December 18, 2023 (Item No. 5e) Page 4 Title: Resolution approving 2024 non-union employee compensation Resolution No. 23-___ Approving 2024 compensation for non-union employees Whereas the city council established and approved, by Resolution No. 17-012, the Position Classification and Compensation Plan for the City of St. Louis Park, and Section VIII -C of such plan directs the city manager to approve the standard adjustment to the plan; and Whereas the city council wishes to adopt policies for city employees and has conferred upon the city manager the power to establish and administer additional administrative policies and rules as may be appropriate for the employment practices of the city; Now therefore be it resolved that the City Council of the City of St. Louis Park confirms the city manager’s decision to implement a standard adjustment of 3.5%, effective January 1, 2024 for non-union employees in accordance with the Position Classification and Compensation Plan. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5f Executive summary Title: Resolution approving 2024 IUOE Local 49 labor agreement Recommended action: Motion to adopt resolution approving labor agreement between the city and the local 49 employee bargaining group, establishing terms and conditions of employment for two years, from Jan. 1, 2024 – Dec. 31, 2025. Policy consideration: Does council approve the labor agreement between the city and the union? Summary: Staff is pleased to bring this two-year contract with our local 49 bargaining group to council for approval. Items listed follow the approved compensation plans, budget discussions and are effective Jan. 1, 2024 – Dec. 31, 2025. Our discussions in negotiation were productive and resulted in this agreement. Financial or budget considerations: The amount recommended has been included in the 2024 budget and will be used to develop 2025 budgets. Strategic priority consideration: Not applicable. Supporting documents: Discussion, Resolution Prepared by: Rita Vorpahl, HR director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 5f) Page 2 Title: Resolution approving 2024 IUOE Local 49 labor agreement Discussion Background: The city and the local 49 union group have negotiated and come to agreement on the following changes to the contract: • Duration of two years (1/1/2024 – 12/31/2025). • Wage increases of 3.5% for 2024 and 3% 2025. • Hourly market adjustments to job classifications of public service worker, plant operator and fleet mechanic positions ranging from $0.21 to $0.71/hour, consistent with our compensation program regarding 85th percentile. • Increase assignment pay for on-call, traffic and out of class pay. • New language adding supplemental pay for public service workers assigned to the natural resources division as a Certified Arborist. • New language adding Callback pay: EMPLOYEES who are called to work prior to the starting time of the shift regularly assigned, due to performing snow and ice con trol operations, water main breaks, or tree storm damage shall be compensated at a pre-shift premium. • New language adding shift differential of one dollar ($1.00) per hour shall be paid to any employee regularly assigned to work a shift where hours fall between 6 p.m. and 6 a.m. Next steps: Staff recommends approval. All items noted above are and will be included in the 2024 and beyond budgets. The proposed contract is on file with the city clerk. More detail is available upon request. General comment: Copies of the labor agreement are available from the city clerk. City council meeting of December 18, 2023 (Item No. 5f) Page 3 Title: Resolution approving 2024 IUOE Local 49 labor agreement Resolution No. 23-___ Approving labor agreement between the City of St. Louis Park and International Union of Operating Engineers (IUOE) Local 49 Jan. 1, 2024 – Dec. 31, 2025 Whereas, the city and the union have reached a negotiated settlement covering the terms and conditions of a labor agreement as permitted by the State of Minnesota Public Employees Labor Relations Act; and Whereas, the city council may enter into such agreements as authorized by its charter; Now therefore be it resolved by the city council of the City of St. Louis Park that the mayor and city manager are authorized to execute a collective bargaining agreement, city Contract No. 123-23 between the City of St. Louis Park and IUOE Local 49, effective Jan. 1, 2024 – Dec. 31, 2025. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5g Executive summary Title: Resolution approving 2022-2024 LELS #218 Police Sergeants Labor Agreement Recommended action: Motion to adopt resolution approving amended labor agreement between the city and the police sergeant employee bargaining group, establishing updated terms and conditions of employment for three years, from Jan. 1, 2022 – Dec. 31. 2024. This includes updated wages for 2024. Policy consideration: Does council approve the amended labor agreement between the city and the union? Summary: Staff is pleased to bring this amended three-year contract with our police sergeant bargaining group to council for approval. The contract was approved by council on Feb. 7, 2022 and included a wage reopener for calendar year 2024. Items listed follow the approved compensation plans, budget discussions and are effective January 1, 2022 – December 31, 2024. Our discussions in negotiation were productive and resulted in this agreement. The updated 2024 wages are to reflect a market adjustment to remain in the 85th percentile. Our discussions in negotiation were productive and resulted in this agreement. Financial or budget considerations: The amount recommended has been included in the 2024 budget. Strategic priority consideration: Not applicable. Supporting documents: Discussion, Resolution Prepared by: Rita Vorpahl, HR director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 5g) Page 2 Title: Resolution approving 2022-2024 LELS #218 Police Sergeants Labor Agreement Discussion Background: The city and the police sergeant union group have negotiated and come to agreement on the following changes to the contract: •Duration of three years (1/1/2022 – 12/31/2024). •Wage increases of 3% for 2022 and 2023. Wage re-opener for 2024. o Comment: A wage-reopener means the city and union will meet to re-open the contract to negotiate wages only for 2024. The wages for 2024 include a 3.5% general salary adjustment and a $72.69/biweekly adjustment. Next steps: Staff recommends approval. All items noted above are and will be included in the 2024 and beyond budgets. The proposed contract is on file with the city clerk. More detail is available upon request. General comment: Copies of the labor agreement are available from the city clerk. City council meeting of December 18, 2023 (Item No. 5g) Page 3 Title: Resolution approving 2022-2024 LELS #218 Police Sergeants Labor Agreement Resolution No. 23-___ Resolution approving labor agreement between the City of St. Louis Park and Law Enforcement Labor Services (LELS) Local #218 Police Sergeants January 1, 2022 – December 31, 2024 Whereas, the city and the union have reached a negotiated settlement covering the terms and conditions of a labor agreement as permitted by the State of Minnesota Public Employees Labor Relations Act; and Whereas, the city council may enter into such agreements as authorized by its charter; Now therefore be it resolved by the city council of the City of St. Louis Park that the mayor and city manager are authorized to execute a collective bargaining agreement, city Contract No. 118-23 between the City of St. Louis Park and LELS #218 (Sergeants), effective January 1, 2022 – December 31, 2024. Reviewed for administration: Adopted by the City Council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk MeeƟng: City council MeeƟng date: December 18, 2023 Consent agenda item: 5h Executive summary Title: Resolution approving 2024‐2025 LELS Local #482 Police Lieutenants Labor Agreement Recommended action: Motion to adopt resolution approving labor agreement between the city and the police lieutenant employee bargaining group, establishing terms and conditions of employment for 2 years, from Jan. 1, 2024 – Dec. 31, 2025. Policy consideration: Does council approve the labor agreement between the city and the union? Summary: Staff is pleased to bring this two‐year contract with our police lieutenants bargaining group to council for approval. Items listed follow the approved compensaƟon plans, budget discussions and are effecƟve Jan. 1, 2024 – Dec. 31, 2025. Our discussions in negoƟaƟon were producƟve and resulted in this agreement. Financial or budget considerations: The amount recommended has been included in the 2024 budget and will be incorporated into 2025 projections. Strategic priority consideration: Not applicable. Supporting documents: Discussion, Resolution Prepared by: Rita Vorpahl, HR director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 5h) Page 2 Title: Resolution approving 2024‐2025 LELS Local #482 Police Lieutenants Labor Agreement Discussion Background: The city and the police lieutenant union group have negotiated and come to agreement on the following terms and conditions of a new contract:  Duration of 2 years (1/1/2024 – 12/31/2025).  2024 wage increase of 3.5% to all steps, plus a $155.94 biweekly market adjustment to achieve the 85th percentile of the market (target pay based on city compensation plan).  2025 wage increase of 3% to all steps.  Uniform allowance for lieutenants assigned to investigations of $1000/year, consistent with other police department union contracts.  SWAT / Crisis Negotiator / Lieutenant (Commander in Charge: Employees assigned by the Employer to SWAT / Crisis Negotiator / Lieutenant (Commander in Charge) shall receive $1,000, consistent with other police department union contracts. Next steps: Staff recommends approval. All items noted above are included within the 2024 budget and will be included in future year budget preparation. The proposed contract is on file with the city clerk. More detail is available upon request. General comment: Copies of the labor agreement are available from the city clerk. City council meeting of December 18, 2023 (Item No. 5h) Page 3 Title: Resolution approving 2024‐2025 LELS Local #482 Police Lieutenants Labor Agreement Resolution No. 23‐___ Approving labor agreement between the City of St. Louis Park and Law Enforcement Labor Services (LELS) Local #482 Police Lieutenants January 1, 2024 – December 31, 2025 Whereas, the city and the union have reached a negotiated settlement covering the terms and conditions of a labor agreement as permitted by the State of Minnesota Public Employees Labor Relations Act; and Whereas, the city council may enter into such agreements as authorized by its charter; Now therefore be it resolved by the city council of the City of St. Louis Park that the mayor and city manager are authorized to execute a collective bargaining agreement, city Contract No. 116‐23 between the City of St. Louis Park and LELS Local #482 Police Lieutenants, effective January 1, 2023 – December 31, 2025. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5i Executive summary Title: Resolution approving 2024-2025 LELS Local #220 Public Safety Dispatchers Labor Agreement Recommended action: Motion to adopt resolution approving labor agreement between the city and the public safety dispatchers employee bargaining group, establishing terms and conditions of employment for 3 years, from Jan. 1, 2024 – Dec. 31, 2026. Policy consideration: Does council approve the labor agreement between the city and the union? Summary: Staff is pleased to bring this three-year contract with our public safety dispatchers bargaining group to council for approval. Items listed follow the approved compensation plans, budget discussions and are effective Jan. 1, 2024 – Dec. 31, 2026. Our discussions in negotiation were productive and resulted in this agreement. Financial or budget considerations: The amount recommended has been included in the 2024 budget and will be incorporated into 2025 and 2026 projections. Strategic priority consideration: Not applicable. Supporting documents: Discussion, Resolution Prepared by: Rita Vorpahl, HR director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 5i) Page 2 Title: Resolution approving 2024-2025 LELS Local #220 Public Safety Dispatchers Labor Agreement Discussion Background: The city and the public safety dispatch union group have negotiated and come to agreement on the following changes to the contract: •Duration of 3 years (1/1/2024 – 12/31/2026). •2024 wage increase of 3.5% to all steps •2025 wage increase of 3% to all steps. •2026 wage increase of 3% to all steps. •Increase to training, leadworker, and work alone pay. Next steps: Staff recommends approval. All items noted above are included within the 2024 budget and will be included in future year budget preparation. The proposed contract is on file with the city clerk. More detail is available upon request. General comment: Copies of the labor agreement are available from the city clerk. City council meeting of December 18, 2023 (Item No. 5i) Page 3 Title: Resolution approving 2024-2025 LELS Local #220 Public Safety Dispatchers Labor Agreement Resolution No. 23-___ Approving labor agreement between the City of St. Louis Park and Law Enforcement Labor Services (LELS) Local #220 Public Safety Dispatchers Jan. 1, 2024 – Dec. 31, 2026 Whereas, the city and the union have reached a negotiated settlement covering the terms and conditions of a labor agreement as permitted by the State of Minnesota Public Employees Labor Relations Act; and Whereas, the city council may enter into such agreements as authorized by its charter; Now therefore be it resolved by the city council of the City of St. Louis Park that the mayor and city manager are authorized to execute a collective bargaining agreement, city Contract No. 126-23 between the City of St. Louis Park and LELS #220 (Public Safety Dispatchers), effective Jan. 1, 2024 – Dec. 31, 2026. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5j Executive summary Title: Resolution authorizing special assessment for sewer repairs at 3322 Library Lane Recommended action: Motion to adopt a resolution authorizing the special assessment for the repair of the sewer service line at 3322 Library Lane, St. Louis Park, MN. P.I.D. 17-117-21-42-0035. Policy consideration: The proposed action is consistent with policy previously established by the city council. Summary: Zachary Doerring and Jenna Januschka, owners of the single-family residence at 3322 Library Lane, have requested the city authorize the repair of the sewer service line for their home and assess the cost against the property in accordance with the city’s special assessment policy. The city requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water and/or sewer service lines for existing homes was adopted by the city council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this are unexpectedly required. Plans and permits for this service line repair work were completed, submitted and approved by city staff. The property owners hired a contractor and repaired the sewer service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the city’s special assessment program. The property owners have petitioned the city to authorize the sewer service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $8,690. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Resolution Prepared by: Beth Holida, office assistant Reviewed by: Stacy M. Voelker, administrative coordinator Emily Carr, assessing technician Austin Holm, utilities superintendent Jay Hall, public works director Approved by: Cindy Walsh, deputy city manager City council meeting of December 18, 2023 (Item No. 5j) Page 2 Title: Resolution authorizing special assessment for sewer repairs at 3322 Library Lane Resolution No. 23 - ____ Authorizing the special assessment for the repair of the sewer service line at 3322 Library Lane, St. Louis Park, MN P.I.D. 17-117-21-42-0035 Whereas, the property owners at 3322 Library Lane, have petitioned the City of St. Louis Park to authorize a special assessment for the repair of the sewer service line for the single family residence located at 3322 Library Lane; and Whereas, the property owners have agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Whereas, the city council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the sewer service line; Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota, that: 1. The petition from the property owners requesting the approval and special assessment for the sewer service line repair is hereby accepted. 2. The sewer service line repair that was done in conformance with the plans and specifications approved by the Public Works Department and Department of Inspections is hereby accepted. 3. The total cost for the repair of the sewer service line is accepted at $8,690. 4. The property owners have agreed to waive the right to a public hearing, notice and appeal from the special assessment, whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The property owners have agreed to pay the city for the total cost of the improvements through a special assessment over a ten (10) year period at the interest rate of 4.93%. 6. The property owners have executed an agreement with the city and all other documents necessary to implement the repair of the sewer service line and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5k Executive summary Title: Resolution authorizing special assessment for sewer service line repairs at 3233 Florida Ave S Recommended action: Motion to adopt a resolution authorizing the special assessment for the repair of the sewer service line at 3233 Florida Avenue South, St. Louis Park, MN. P.I.D. 17-117-21-14-0048. Policy consideration: The proposed action is consistent with policy previously established by the city council. Summary: Jeffrey Roy and Jean Stevens, owners of the single-family residence at 3233 Florida Avenue South, have requested the city authorize the repair of the sewer service line for their home and assess the cost against the property in accordance with the city’s special assessment policy. The city requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water and/or sewer service lines for existing homes was adopted by the city council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this are unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by city staff. The property owners hired a contractor and repaired the sewer service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the city’s special assessment program. The property owners have petitioned the city to authorize the sewer service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $9,840. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Resolution Prepared by: Beth Holida, office assistant Reviewed by: Stacy M. Voelker, administrative coordinator Emily Carr, assessing technician Austin Holm, utilities superintendent Jay Hall, public works director Approved by: Cindy Walsh, deputy city manager City council meeting of December 18, 2023 (Item No. 5k) Page 2 Title: Resolution authorizing special assessment for sewer service line repairs at 3233 Florida Ave S Resolution No. 23-____ Authorizing the special assessment for the repair of the sewer service line at 3233 Florida Avenue South, St. Louis Park, MN P.I.D. 17-117-21-14-0048 Whereas, the property owners at 3233 Florida Avenue South, have petitioned the City of St. Louis Park to authorize a special assessment for the repair of the sewer service line for the single family residence located at 3233 Florida Avenue South; and Whereas, the property owners have agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Whereas, the city council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the sewer service line; Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota, that: 1. The petition from the property owners requesting the approval and special assessment for the sewer service line repair is hereby accepted. 2. The sewer service line repair that was done in conformance with the plans and specifications approved by the Public Works Department and Department of Inspections is hereby accepted. 3. The total cost for the repair of the sewer service line is accepted at $9,840. 4. The property owners have agreed to waive the right to a public hearing, notice and appeal from the special assessment, whether provided by Minnesota Statutes, Chapter 429, or b y other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The property owners have agreed to pay the city for the total cost of the improvements through a special assessment over a ten (10) year period at the interest rate of 4.93%. 6. The property owners have executed an agreement with the city and all other documents necessary to implement the repair of the sewer service line and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Consent agenda item: 5l Executive summary Title: Resolution authorizing special assessment for sewer service repairs at 2515 Xylon Ave S Recommended action: Motion to adopt a resolution authorizing the special assessment for the repair of the sewer service line at 2515 Xylon Avenue South, St. Louis Park, MN. P.I.D. 07-117-21-42-0004. Policy consideration: The proposed action is consistent with policy previously established by the city council. Summary: Thomas Sonday, owner of the single-family residence at 2515 Xylon Avenue South, has requested the city authorize the repair of the sewer service line for her home and assess the cost against the property in accordance with the city’s special assessment policy. The city requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water and/or sewer service lines for existing homes was adopted by the city council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this are unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by city staff. The property owner hired a contractor and repaired the sewer service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the city’s special assessment program. The property owner has petitioned the city to authorize the sewer service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $8,285. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Resolution Prepared by: Beth Holida, office assistant Reviewed by: Stacy M. Voelker, administrative coordinator Emily Carr, assessing technician Austin Holm, utilities superintendent Approved by: Cindy Walsh, deputy city manager City council meeting of December 18, 2023 (Item No. 5l) Page 2 Title: Resolution authorizing special assessment for sewer service repairs at 2515 Xylon Ave S Resolution No. 23 - ____ Authorizing the special assessment for the repair of the sewer service line at 2515 Xylon Avenue South, St. Louis Park, MN P.I.D. 07-117-21-42-0004 Whereas, the property owner at 2515 Xylon Avenue South, has petitioned the City of St. Louis Park to authorize a special assessment for the repair of the sewer service line for the single family residence located at 2515 Xylon Avenue South; and Whereas, the property owner has agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Whereas, the city council of the City of St. Louis Park has received a report from the Utility Superintendent related to the repair of the sewer service line; Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota, that: 1.The petition from the property owner requesting the approval and special assessment for the sewer service line repair is hereby accepted. 2.The sewer service line repair that was done in conformance with the plans and specifications approved by the Public Works Department and Department of Inspections is hereby accepted. 3.The total cost for the repair of the sewer service line is accepted at $8,285. 4.The property owner has agreed to waive the right to a public hearing, notice and appeal from the special assessment, whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5.The property owner has agreed to pay the city for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 4.93%. 6.The property owner has executed an agreement with the city and all other documents necessary to implement the repair of the sewer service line and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 18, 2023 Action agenda item: 7a Executive summary Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Recommended action: • Motion to adopt Resolution approving the 2024 budgets and authorizing the 2024 final property tax levy. • Motion to adopt Resolution authorizing the 2024 final HRA levy. • Motion to adopt Resolution authorizing the 2024 final EDA levy. • Motion to adopt Resolution approving the 2024-2033 capital improvement plan. Policy consideration: Does council support the proposed 2024 budget? The balanced budget consists of an "all-inclusive” preliminary levy increase of 7.3% (down from 7.7%) and includes the following components: 1. General levies (general fund (GF), park improvement, capital replacement and employee benefits, and debt service) equal to $43,677,949 2. Housing Redevelopment Authority (HRA) levy equal to $1,744,133 3. Economic Development Authority (EDA) levy equal to $877,000 4. Use of excess unobligated GF dollars for transfers of $485,000 in 2023 and $360,000 in 2024 Summary: Recommendations in the 2024 recommended budget are based on maintaining high-quality services and advancing city priorities while also making best use of public dollars. Council approved a preliminary levy of 7.7% on Sept. 18. After thoroughly vetting all the numbers, staff was able to lower the levy to 7.3%. The 2024 budget provides a strategic opportunity to make decisions that impact the city’s long range financial plan, prepare for known and unknown fiscal issues in the medium-term and ensure long-term compliance with city financial policies. Financial or budget considerations: The proposed tax levies support city services, capital improvements, and debt service obligations for fiscal year 2024 Strategic priority consideration: All strategic priorities. Supporting documents: Discussion, Resolutions, 10 year CIP Prepared by: Amelia Cruver, finance director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No. 7a) Page 2 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Discussion Background: 2024 Budget development timeline August 7 General fund budget and American Rescue Plan Act (ARPA): projections at current service level, staff priorities for general fund changes, update on potential one-time capital grant program August 28 Proposed 2024 budget: revised general fund, long range financial plan, capital improvement plan, EDA and HRA levies September 18 Maximum levy adoption October 2 Fee adoption and hearing October 23 Tax Increment Financing management report November 13 Utility rate analysis and discussion November 20 Utility rate hearing November 27 Review final budget and levies prior to Truth in Taxation hearing December 4 Truth in Taxation hearing December 18 2024 budget adoption On Aug. 7 and 28, 2023 staff met with the city council to discuss recommended spending and associated revenue levels to support the Capital Improvement Plan (CIP), long-range financial plan and new budget proposals. Adjustments to baseline spending and new budget proposals included in the general fund are detailed in the Aug. 7, 2023 staff report. Highlights from 2024 projects in the recommended CIP as well as other special revenue funds like the Affordable Housing Trust Fund are detailed in the Aug. 28, 2023 staff report. Overall, the proposed 2024 budget included new investments in public safety, environmental stewardship and people and places that build social capital. Discussion of the preliminary levy surfaced a few key points of feedback on the proposed budget: • What is the city doing to maintain or enhance the city’s tree canopy? • How might emerging needs impact the long-term conditions of the city’s infrastructure? • Are there opportunities to lower the property tax levy while maintaining high quality services and working towards the city’s priorities? City council meeting of December 18, 2023 (Item No. 7a) Page 3 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption On Oct. 23, 2023, staff and representatives from Ehlers met with the city council to discuss tax increment financing (TIF) outcomes and decision points for 2023 and 2024. Council supported continuing to pool tax increment for affordable housing purposes and deposit those funds into the city’s affordable housing trust fund through Dec. 31, 2026 when the city’s special legislation is scheduled to sunset. That report can be found here. On Nov. 13, 2023 staff met with city council to discuss utility rate increases for 2024 and that report can be found here. Each year, St. Louis Park updates rates charged for water, sewer, storm water and solid waste services. Solid waste rates will need to be meaningfully increased to cover the cost of the new five-year contracts approved in summer 2023. Staff explored several options for rate increases that would: • Cover the cost of budgeted expenses over the next five (5) years. • Ensure all funds meet target fund balances at the end of the five (5)-year period. • Minimize costs to rate payers without preferencing one pool of ratepayers over another. Council reviewed the new contracts for solid waste this summer and indicated support for a scenario that includes a 15.5%/$55 increase in quarterly bills for the median user in 2024, and a 5%/$20 increase in quarterly bills for 2025 through 2028. On November 27 council discussed and approved recommended revisions to the 2024 budget which included: 1. Updated ongoing expenditures that include a new budget system, expanded staff and budgets for the natural resources division and increased cyber security protection. 2. Updated one-time expenditures that include expanded consulting budgets for foundational work on SLP 4.0 and data systems in the city, an electric vehicle and water pump for tree preservation work and additional funds or deferred building maintenance. 3. Updated 2024 levy that is reduced to an overall 7.3% increase from a 7.7% increase approved in September. On Dec. 4 the city held a Truth in Taxation hearing (video and materials can be found here) to get feedback from residents on the proposed 2024 Budget. State statute requires all cities and counties to hold a public hearing on the proposed budget and property tax levy for the following year before budget adoption. There were two speakers; their comments and a response is summarized below. Question or concern: One resident advocated for more greenspace, bikeable communities and human scale development, along with high quality schools. This resident also expressed concern that the medium-term increase in the levy has outpaced the medium-term increase in income. The resident also praised the virtues of homeownership and questioned whether the increasing number of apartment buildings would make homeownership less accessible. Response: • The tree canopy in St. Louis Park is currently decreasing as mature ash trees are being removed due to emerald ash borer and persistent dry hot summers. In response, we have been increasing tree plantings with over 1,000 planted in 2023 on public property City council meeting of December 18, 2023 (Item No. 7a) Page 4 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption and around 500 trees provided to residents on private property through cost share programs. The city has also increased its capacity to water trees. For developments there are replanting ordinances requiring a significant number of trees and shrubs be planted as part of the building projects. •As a clarification to a data point cited in the comment, according to USA.com, St. Louis Park ranks 11th in the state in population density with 4.279.7 persons per square mile. •St. Louis Park is a fully developed city. To provide housing opportunities for people seeking to locate in St. Louis Park or to stay in St. Louis Park when their housing needs change (i.e., seniors in single-family houses), multi-family housing is needed. •Because St. Louis Park is a desirable and growing community, housing prices have increased for both ownership and rental. Multi-family development provides more affordable housing opportunities for households seeking to locate to St. Louis Park. •City staff work very closely with developers to ensure that new development is complementary to the surrounding properties and focuses on human scale and pedestrian experience. •Per rental licensing records, the company noted by the resident does not own any single-family rental houses in St. Louis Park. St. Louis Park also has a robust licensing and inspection program in addition to tenant protection ordinances. •Less than 2% of the single-family rental houses in St. Louis Park are owned by people/businesses that own 3 or more single-family rental properties in St. Louis Park. Staff has been directed by council to monitor the number of single-family rental houses and corporate ownership of those rental houses. Question or concern: One resident noted the city’s continuing use of and support for tax increment financing and questioned if the practice was truly benefiting the residents of the city. The resident was concerned that developers involved in Tax Increment Financing (TIF) projects did not pay taxes during the lifetime of the project, up to 25 years, and that residents had to pay more as a result. The resident asked council to be more transparent around TIF impacts to property taxpayers. Response: •After a TIF project or district is formed, the owners of the property pay property tax every year throughout the TIF district’s operation. The portion of taxes paid to the city, county, and schools at the start of the district continues to be paid to the city, county, and schools every year throughout the project’s lifetime. •A portion of the increased taxes over what was paid at the beginning of the district timeline is captured used to pay the developer for specific improvements to the land or property over the lifetime of the district. The developer must first pay the full property taxes in order to receive any of the increased taxes. •When the district is closed, or decertified, this incremental amount of property tax is also paid every year to the city, county, and schools. The result is an increase in taxable property value which lowers the tax burden on all other properties in the city. •The city council was presented with a TIF basics overview on June 5 and an annual TIF management report on October 23 2023. The presentation for the October 23 meeting can be found here. •While TIF is a complex financial instrument, the city works to bring transparency to the process of managing TIF projects and the impact they have on our economy and City council meeting of December 18, 2023 (Item No. 7a) Page 5 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption finances. Additional information about TIF, including a very helpful TIF 101 overview, the city’s TIF policies, district maps and dashboard can be found on the city’s website here. Present considerations: The city’s portion of property tax paid by individual property owners is determined by the levy as approved by council and the market value of all properties within the city. Looking ahead to taxes payable in 2024, the market values of industrial and commercial properties are growing faster than residential. This will result in an increase in property tax bills for residential properties that is less than the overall property tax increase. In addition, the city’s recent decertification of TIF districts will increase the overall tax capacity and lower the impact to individual property owners. In 2024 the median home value is $373,300, a 0.4% increase from the previous year. Prior to the lower levy and decertification of new TIF districts, the impact to the median value homeowner was estimated to be around a 4% increase. Estimating the impact of the TIF decertification, the projected property tax increase for a median homeowner with a homestead exemption is 3.60%, or $57.54 dollars annually. Long range financial plan Below is a table showing each part of the proposed 2024 levy and the five-year forecast based on the people and programs funded in the proposed 2024 budget. The following assumptions are built into the forecast: • Steady inflationary growth in general fund to maintain current service levels. • Additional levy in 2025 to cover the full annual cost of personnel additions in the recommended 2024 budget of two police sergeants and one public service worker. • Additional levy in 2027 to cover the cost of three new firefighters once the federal SAFR grant concludes. • Levy increases of $200,000 each year in 2024, 2025 and 2026 to “step down” after using one-time sources, rather than a one-year jump in levy revenue. • Capital replacement levy to meet currently identified CIP needs, after using Public Safety Aid and some one-time general fund transfers. • Debt service to fund major street infrastructure projects currently laid out in the CIP. • Steady inflationary growth in the HRA and EDA levy to keep up with salary costs. City council meeting of December 18, 2023 (Item No. 7a) Page 6 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Five (5)-year financial direction (includes above assumptions) Fund 2023 Adopted 2024 Proposed 2025 Projected 2026 Projected 2027 Projected 2028 Projected General Fund $ 32,041,296 $ 34,147,654 $ 36,264,298 $ 38,096,192 $ 40,200,520 $ 42,009,544 Capital Replacement Fund $ 1,646,142 $ 2,177,793 $ 2,420,496 $ 2,664,930 $ 2,814,930 $ 2,964,930 Park Improvement Fund $ 860,000 $ 860,000 $ 860,000 $ 860,000 $ 860,000 $ 860,000 Employee Benefits Fund $ 150,000 $ 200,000 $ 150,000 $ 150,000 $ 150,000 $ 150,000 Subtotal General Levies $ 34,697,438 $ 37,385,447 $ 39,694,795 $ 41,771,122 $ 44,025,451 $ 45,984,474 Debt Service Levy $ 6,362,813 $ 6,292,503 $ 6,611,475 $ 7,057,023 $ 7,057,023 $ 7,057,023 General and Debt Service Levies $ 41,060,251 $ 43,677,949 $ 46,306,269 $ 48,828,145 $ 51,082,473 $ 53,041,497 HRA Levy $ 1,582,696 $ 1,744,133 $ 1,796,457 $ 1,850,351 $ 1,905,861 $ 1,963,037 EDA Levy $ 500,000 $ 877,000 $ 916,465 $ 957,706 $ 1,000,803 $ 1,045,839 Total Property Tax Levy $ 43,142,947 $ 46,299,082 $ 49,019,191 $ 51,636,201 $ 53,989,137 $ 56,050,373 Levy Growth 7.32% 5.88% 5.34% 4.56% 3.82% The resolution that follows includes the authorized total spending and revenues for all funds. The proposed long-range plan includes use of fund balance transfers between several funds and the general fund in 2024 to support levy relief and one-time capital expenditures. Including these one-time transfers shows spending and revenues increasing at 12%. Without these transfers the growth in both revenues and expenditures is 6.4%. Next steps: After adoption, the final levy will be certified to the county and the budget will be in effect Jan. 1, 2024. City council meeting of December 18, 2023 (Item No. 7a) Page 7 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Resolution No. 23-_____ Authorizing the 2024 Final Tax Levy for Economic Development Authority Purposes pursuant to Minnesota Statutes, Section 469.107 Whereas, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended (the “Act”), the city established the St. Louis Park Economic Development Authority (the “EDA”); and Whereas, Section 469.107, subdivision 1 of the Act authorizes the city, at the request of the EDA, to levy and collect a tax of up to 0.01813% of the estimated market value of taxable property within the city, levied upon all taxable real property within the city, for economic development purposes; and Whereas, the EDA has requested that the city approve such a levy in the amount of $877,000 and the city finds that such a levy is in the best interest of the city and EDA because it will facilitate economic development. Now therefore be it resolved that the city council hereby approves the levy of a tax for economic development purposes pursuant to Section 469.107, subdivision 1 of the Act in the amount equal to $877,000 with respect to taxes payable in calendar year 2024. Reviewed for Administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of December 18, 2023 (Item No. 7a) Page 8 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Resolution No. 23-___ Authorizing the final HRA levy for 2024 Whereas, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the city council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and Whereas, pursuant to the EDA Act, the city council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and Whereas, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a tax upon all taxable property within the city to be expended for the purposes authorized by the HRA Act; and Whereas, such levy may be in an amount not to exceed 0.0185 percent of estimated market value of the city; and Whereas, the Authority has filed its budget for the special benefit levy in accordance with the budget procedures of the city in the amount of $1,744,133; and Whereas, based upon such budgets the Authority will levy all or such portion of the authorized levy as it deems necessary and proper; Now therefore be it resolved by the St. Louis Park City Council: 1. That approval is hereby given for the Authority to levy, for taxes payable in 2024, such tax upon the taxable property of the city as the Authority may determine, subject to the limitations contained in the HRA Act. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of December 18, 2023 (Item No. 7a) Page 9 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Resolution No. 23-___ Adopting the 2024 general fund budget, other 2024 budgets, authorizing the 2024 final property tax levy, and adopting the 2024-2033 Capital Improvement Plan (CIP) Whereas, The City of St. Louis Park is required by Charter and State law to approve a resolution setting forth an annual tax levy to the Hennepin County Auditor; and Whereas, Minnesota Statutes currently in force require approval of a property tax levy and a budget in December of each year; and Whereas, the c ity council has received the budget information; Whereas, there are sufficient funds on hand, the 2024 debt levy is reduced from $6,418,707.78 to $6,292,502.78 Whereas, the city council of the City of St. Louis Park, Minnesota, has received a report from the chief financial officer related to proposed capital spending for 2024 - 2033; and Whereas, it is necessary for the city to maintain and replace its capital assets in order to enhance the city’s attractiveness to residents and businesses; and Whereas, good planning is a necessary part of the stewardship that the city council and staff exercise over the capital assets of the city; Now therefore, be it resolved, by the city council of the City of St. Louis Park, that the 2024 General Fund Budget and 2024 Budgets are adopted as presented; and City council meeting of December 18, 2023 (Item No. 7a) Page 10 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption 2023 2024 Adopted Proposed % General Fund Revenues: General Property Taxes 32,041,296$ 34,147,654$ 7% Licenses and Permits 5,000,977$ 4,796,322$ -4% Fines & Forfeits 181,000$ 190,000$ 5% Intergovernmental 2,129,139$ 2,443,282$ 15% Charges for Services 2,586,338$ 2,602,153$ 1% Miscellaneous Revenue 1,642,357$ 2,114,980$ 29% Transfers In 2,865,766$ 5,720,439$ 100% Investment Earnings 320,821$ 470,000$ 46% Other Income 502,050$ 467,950$ -7% Use of Fund Balance - -$ 0% Total General Fund Revenues 47,269,744$ 52,952,780$ 12.0% Summary of Budgeted Revenues Difference 2023 Adopted 2024 Proposed General Fund Expenditures: General Government (Admin,RE&I, Finance/Assessing, HR, Comm Dev, Facilities, Sustainability, IT, Communications) 11,193,645$ 14,505,291$ 29.59% Public Safety (police,fire,building)21,793,443$ 23,236,356$ 6.62% Operations & Recreation (Eng, public works, org rec, rec center, park maint, WWHC, Natural resources) 14,282,656$ 15,211,133$ 6.50% Total General Fund Expenditures 47,269,744$ 52,952,779$ 12.0% Summary of Budgeted Expenditures City council meeting of December 18, 2023 (Item No. 7a) Page 11 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption 2023 2024 Adopted Final Proposed Special Revenue Housing Rehabilitation Fund Total Housing Rehab Revenues 2,052,088$ 1,643,564$ Total Housing Rehab Expenditures 2,336,522 1,843,360 CDBG Fund Total CDBG Revenues 165,000 165,000 Total CDBG Expenditures 165,000 165,000 Cable TV Fund Total Cable TV Revenues 759,500 698,600 Total Cable TV Expenditures 696,273 544,253 Climate Investment Fund Total Climate Investment Fund Revenues 100 - Total Climate Investment Fund Expenditures 183,100 181,000 Affordable Housing Trust Fund Total Affordable Housing Trust Fund Revenues 1,597,696 1,759,133 Total Affordable Housing Trust Fund Expenditures 2,369,064 2,368,564 Capital Project Development Fund Total Development Fund Revenues 5,172,846 5,456,899 Total Development Fund Expenditures 5,127,282 5,075,285 Pavement Management Fund Total Pavement Management Revenues 4,880,205 4,786,801 Total Pavement Management Expenditures 5,002,290 4,235,490 Park Improvement Fund Total Park Improvement Revenues 2,079,496 1,348,750 Total Park Improvement Expenditures 2,266,628 1,706,000 Enterprise Water Utility Fund Total Water Revenues 9,613,660 9,819,145 Total Water Expenses 8,569,794 12,835,887 Sewer Utility Fund Total Sewer Revenues 8,792,833 9,886,017 Total Sewer Expenses 8,292,475 9,421,070 Solid Waste Utility Fund Total Solid Waste Revenues 4,170,097 6,293,227 Total Solid Waste Expenses 4,281,322 6,852,015 Storm Water Utility Fund Total Storm Water Revenues 3,724,098 3,915,637 Total Storm Water Expenses 4,111,493 3,976,221 Internal Service Employee Benefits Fund Total Employee Benefits Revenues 538,000 588,000 Total Employee Benefits Expenses 810,717 962,000 Uninsured Loss Fund Total Uninsured Loss Revenues 70,000 70,000 Total Uninsured Loss Expenses 248,499 256,975 Building Capital Replacement Fund Total Building Capital Replacement Revenues 896,142 1,405,288 Total Building Capital Replacement Expenditures 896,142 1,324,490 Vehicle & Equip Capital Replacement Fund Total Vehicle & Equip Capital Replacement Revenues 1,619,013 1,552,477 Total Vehicle & Equip Capital Replacement Expenditures 1,972,675 1,552,477 IT Capital Replacement Fund Total IT Capital Replacement Revenues 1,596,140 2,289,504 Total IT Capital Replacement Expenditures 2,341,820 2,682,008 Special Revenue, Select Capital Project Funds, Summary of Budgeted Revenues and Expenditures Enterprise and Internal Service Funds City council meeting of December 18, 2023 (Item No. 7a) Page 12 Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption In coordination with the Long Range Financial Plan, funds that have excess expenditures over revenues represent a purposeful use of Fund Balance. Be it further resolved, by the City Council of the City of St. Louis Park, that the following sums of money be levied in 2023, collectible in 2024, upon the taxable property in said City of St. Louis Park for the following purposes: 2024 Tax Capacity Based Levy Final Tax Levy (Proposed) General Levy $ 34,147,654 Debt Service 6,292,503 Capital Replacement Funds 2,177,793 Park Improvement Fund 860,000 Employee Benefits Fund 200,000 Total Tax Levies $ 43,677,948 Be it further resolved by the city council of the City of St. Louis Park, that: 1. The 2024 - 2033 Capital Improvement Plan as presented is hereby adopted. 2. The city manager is authorized to purchase or undertake the items included in the fiscal year 2024 funded portion of the plan as allowed by the city charter and state statutes. 3. All purchases required to be competitively bid must come before the city council for final approval. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk Capital Improvement ProgramCity of St. Louis Park, MNFUNDING SOURCE SUMMARY2024 2033thruTotal2024 2025 2026 2027 2028Source2029 2030 2031 2032 2033Cable TV398,00020,000 185,000 10,000 145,000 13,000 25,000Cable TV - Time Warner Equipment Grant75,00075,000Capital Replacement Fund Bldg10,247,8001,422,800 2,163,500 1,291,000 605,000 1,482,000 1,312,500 843,000 807,000 321,000E-911 Funds748,437116,594 92,423 40,344 42,362 224,480 131,704 49,039 51,491G.O. Bonds1,700,0001,700,000G.O. Revenue Bonds and/or State of MN3,120,2071,250,000 1,870,207GO Bonds Connect the Park21,605,6632,599,125 2,328,126 1,561,530 2,781,342 703,125 6,788,000 752,026 1,303,188 804,578 1,984,623GO Bonds Living Streets12,436,892554,000 2,039,000 777,600 1,093,000 1,076,000 2,702,292 1,090,000 1,433,000 702,000 970,000IT Capital Fund16,818,6622,682,008 1,775,482 1,924,067 2,095,185 1,991,477 2,252,976 2,013,720 2,063,747 20,000Municipal State Aid16,134,9723,800,530 1,588,911 1,148,382 3,013,000 4,571,649 2,012,500Park Improvement Fund13,814,0001,706,000 1,691,500 1,463,000 2,211,500 1,653,000 1,866,000 1,380,000 955,000 406,000 482,000Pavement Management Fund54,441,1104,235,490 5,292,490 5,457,150 5,018,970 5,966,160 9,616,950 5,284,150 3,404,920 6,421,230 3,743,600Permanent Improvement Revolving Fund2,600,000320,000 330,000 340,000 350,000 360,000 370,000 530,000Police & Fire Pension1,437,029389,127 298,215 635,822 21,447 22,090 22,753 23,436 24,139PW Operations Budget3,625,000340,000 345,000 350,000 355,000 360,000 605,000 370,000 375,000 380,000 145,000Sanitary Sewer Utility15,101,9691,196,582 1,674,882 829,500 2,311,375 1,961,125 1,347,680 1,193,000 1,289,025 1,244,000 2,054,800Solid Waste Utility154,80066,000 11,000 11,000 11,000 12,000 17,800 13,000 13,000State of Minnesota6,152,5002,000,000 3,000,000500,000 652,500Stormwater Utility25,339,3171,832,315 2,063,500 3,550,250 1,781,040 2,476,550 5,013,145 1,926,275 1,501,612 3,813,300 1,381,330Tax Increment Financing443,000443,000U.S. Government9,000,0003,941,333 3,470,667 1,588,000Unfunded11,040,000750,0009,890,000 400,000Vehicle and Equipment fund21,278,1532,048,483 2,133,065 2,577,108 4,269,314 3,233,642 2,165,622 3,245,911 938,598 666,410Water Utility39,133,3936,715,485 4,604,165 2,851,320 1,312,000 1,812,000 4,247,892 4,152,000 4,467,531 4,403,000 4,568,00036,060,872 36,336,926 30,726,28024,258,53526,991,649286,845,904GRAND TOTAL43,697,463 23,333,557 30,529,751 19,581,518 15,329,353Wednesday, December 13, 2023Page 12024-2033 Capital Improvement PlanCity council meeting of December 18, 2023 (Item No. 7a) Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Page 13 Total2024 2025 2026 2027 2028Source2029 2030 2031 2032 2033Report criteria:Active ProjectsAll Address data All CategoriesAll DepartmentsAll ContactsAll From Street data All Priority LevelsAll ProjectsAll Source TypesAll Street Name data Wednesday, December 13, 2023Page 22024-2033 Capital Improvement PlanCity council meeting of December 18, 2023 (Item No. 7a) Title: Resolutions authorizing final 2024 budget - levy and capital improvement plan adoption Page 14 Meeting: City council Meeting date: December 18, 2023 Action agenda item: 7b Executive summary Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Recommended action: • Motion to adopt resolution approving the preliminary plat of Park Plaza 2nd Addition. • Motion to adopt resolution approving the special permit amendment. • Motion to adopt resolution approving the conditional use permit to allow two principal buildings on a lot and in-vehicle service. Policy consideration: Does the proposal meet the requirements for these planning applications? Summary: GW Properties submitted planning applications proposing to construct two new buildings in the southeast corner of the parking lot at 5775 Wayzata Boulevard (Park Place East). Four fast-casual restaurants would occupy the new buildings. No changes are proposed to the existing office building. Planning commission held a public hearing on Nov. 15, 2023, and three people testified. The commission recommended approval of all three applications. Financial or budget considerations: None Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: discussion, excerpt of draft planning commission meeting minutes, preliminary plat resolution, special permit amendment resolution, conditional use permit resolution, public feedback, development plans Prepared by: Jacquelyn Kramer, associate planner Reviewed by: Sean Walther, planning manager/deputy community development director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No.7b)Page 2 Title:Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) –Ward 4 Discussion Site information: Site area (acres):11.43 Current use: Surrounding land uses: Office, seasonal garden market North: restaurant, Interstate 394 East: hotel, restaurant, conference center South: wholesale and retail shopping centers West: hotel, multi-family housing Current 2040 land use guidance Current zoning OFC-office O office Background: In 1978, city council approved a special permit (Resolution No. 6173) to allow construction of a nine-story office building and drive-in banking facility. Since then, the original special permit has been amended several times to allow additional uses and building expansions on the site. An administrative lot split created a separate parcel that now contains a restaurant; that parcel is not included in these planning applications. The site currently contains a nine-story office building and two surface parking lots. A seasonal garden center operates in the southeast corner of the parking lot. The eastern portion of the site contains a pond and trail. 5775 Wayzata Blvd. ProjectProject site Interstate 394 16th Street W City council meeting of December 18, 2023 (Item No. 7b) Page 3 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Present considerations: GW Properties proposes two new one-story buildings in the southeast corner of the existing parking lot. The property owners are working with the garden center to relocate the seasonal market to another location on the site. No changes are proposed to the existing office building nor the pond on the eastern portion of the site. If approved, construction is planned to begin in spring 2024 and the restaurants are tentatively scheduled to be open fall 2024. The applicant submitted the following applications: 1. A preliminary plat subdividing the lot into two new lots. 2. A special permit amendment to amend and restate the previous approvals on the site and allow the new restaurant uses. 3. A conditional use permit to allow: a. In-vehicle service; and b. Two principal buildings on one parcel. Traffic Demand Management: This site is in Zone A of the I-394 Travel Demand Management (TDM) overlay zoning district. The developer will pay a TDM fee as part of the approval process. Preliminary plat analysis: The applicant seeks preliminary plat approval for the creation of a new lot from the existing parcel at 5775 Wayzata Blvd. The applicant will apply for final plat approval later. Lots: The subdivision proposal creates two new lots from the existing 505,364 square foot lot. Lot 1 would be 469,163 square feet and contain the existing office building and pond. Lot 2 would be 45,168 square feet and contain two new one-story buildings along with new parking spaces, landscaping and a relocated access point to 16th Street. Easements: The existing parcel contains sidewalk, drainage and utility easements along the right-of-way. Both proposed lots will maintain these easements with a width of at least ten feet. Section 26-154 of the city code requires five-foot drainage and utility easements along all interior lot lines. New five-foot easements will be added to Lots 1 and 2. Right of way: The plat proposes dedication of 36,201 square feet of right of way to Zarthan Avenue and 16th Street. Sidewalks: City code requires all new plats to include sidewalks along all street frontages. 16 th Street has existing sidewalk that meets this requirement. There is currently no sidewalk along the east side of Zarthan Avenue adjacent to the proposed plat; in lieu of constructing new sidewalk, the applicant will pay the city’s sidewalk fee of $13 per square foo t to the city. Staff finds the preliminary plat meets city requirements. If the city council approves the preliminary plat, the applicant will then come back to city council with a final plat application. Zoning analysis: Once the project is complete, Lot 1 containing the existing office building will meet all zoning requirements. The following table provides zoning information for the new lot and buildings. Further project details are provided below. City council meeting of December 18, 2023 (Item No. 7b) Page 4 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Factor Required Proposed – Lot 2 Met? Use Office, service, retail and restaurants as accessory uses in a larger office development. Restaurant: 11,400 square feet yes Density n/a – no residential units Height 20 stories and 240 feet allowed. One story, 20 feet yes Building Materials- % of Class Type (1,2,3) 60% 30% 10% All elevations will have at least 60% class 1 materials yes Off-Street Parking 861 stalls with no reductions (office & restaurants); eligible for 10% parking reduction for transit to 775 stalls; and 15% shared parking reductions to 659 stalls 663 stalls Yes Bicycle parking spaces 14 14 yes EVSE Parking At least one level 2 charger, 50% of new spaces must have conduit Two spaces served by level 2 charging + conduit yes Setbacks – Front / Rear 20 feet 15 feet 41.5 feet 63.4 feet yes Setbacks – West Side / East. Side 15 feet Half the building height: 10 feet 64.4 feet 10 feet yes Floor Area Ratio Maximum 1.5 Under 1.0 yes D.O.R.A. 12% of lot. Lot is 45,168 square feet lot. 5,420 square feet is required. 13%: 5,602 square feet yes Landscaping- # of Trees, Shrubs Trees: =17 Shrubs: = 102 Trees: 13 canopy + 9 ornamental = 18 Shrubs: 117 yes Uses: The existing office use is permitted in the O office zoning district without conditions. The applicant proposes four new tenant spaces in the two buildings that will contain fast-casual restaurants. Outdoor seating will be located north of and in between the two new buildings. City council meeting of December 18, 2023 (Item No. 7b) Page 5 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 The proposed restaurant uses are permitted with the following conditions: 1. This use shall be permitted as part of a larger development which contains at least one other principal use. This condition is met. The site contains existing office use. 2. Access shall be to a roadway identified in the comprehensive plan as a collector or arterial or shall be otherwise located so that access can be provided without generating significant traffic on local residential streets. This condition is met. 3. All refuse shall meet the requirements of chapter 22 regulating refuse. This condition is met. 4. Buildings shall be located a minimum of 25 feet from any parcel that is zoned residential and used or subdivided for residential, or has an occupied institutional building, including but not limited to a school, religious institution or community center. This condition is met. The proposed outdoor seating of food and beverages is permitted as an accessory use with the following conditions: 1. The use is separated from any adjacent residential use by a building wall or six-foot fence. This provision will not apply if the residential use is located on an upper story above the principal use. Not applicable; no adjacent residential use. 2. The use is located within 500 feet of a residential use, and no speakers or other electronic devices which emit sound are permitted. This condition is met. 3. The use is located within 500 feet of a residential use, and the hours of operation shall be limited to 7:00 a.m. to 10:00 p.m. This condition is met. None of the proposed restaurant tenants operate late at night. Staff also considered potential future uses that could occupy the site in the future. Service uses are permitted by right in the O office district. Retail uses are permitted with the following conditions: 1. No single-use retail establishment over 20,000 square feet is permitted. The retail facility shall be permitted only as a part of a larger development on a single parcel which contains at least one other permitted principal use. 2. These uses shall not result in any exterior building modifications, including truck docks or freestanding signage, overnight truck parking or similar features. 3. Retail uses shall be integrated with other principal land uses which are within the O district and shall not exceed ten percent of the gross floor area of the parcel. Staff find the project satisfies all required conditions of the proposed uses. Site design: The proposed site plan contains two buildings which each contain two tenant spaces intended for fast-casual type restaurants. The tenant spaces range in size from 2300 to 3800 square feet. Both buildings are oriented north toward the parking lot, and there is outdoor seating serving all four tenant spaces on the sidewalk north of the buildings and in between the two buildings. The westernmost tenant space includes a drive -up window and drive aisle for customers to pick up online orders from their vehicle. Access: The site currently has access on all sides of the property on Zarthan Avenue, 16 th Street, Wayzata Boulevard and through a connected parking lot on the adjacent private property. City council meeting of December 18, 2023 (Item No. 7b) Page 6 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Restaurant traffic is anticipated to arrive primarily through a relocated access drive on 16th Street which will be near the existing curb cut. Customers using the pickup window in the westernmost restaurant will enter a separate drive - through lane from the north of Lot 2, travel south to the pickup window, and then loop back north and out into the larger parking lot. This layout is designed to minimize traffic conflicts between vehicles entering the site from 16 th Street and vehicles leaving the pick-up window. Since the public hearing, the applicant has revised the site plan to include additional sidewalk connections from the project site to the public sidewalks along 16th Street and to the walking trail around the pond. Building design: All building elevations use at least 60% class 1 materials, including glass, 5/8” fiber cement panels, brick and ceramic tile. Ground floor transparency: All ground floor street-facing facades of restaurants in the O office district must meet ground floor transparency requirements. These requirements include: 50% ground floor transparency on front facades; no more than 10% of total window and door area may be opaque; and visibility into space shall be maintained for a minimum of three feet. The ordinance grants some flexibility to meet these requirements through design alternatives that increase pedestrian vibrancy and street safety. These alternatives must be approved by planning commission and city council as part of the CUP process. The proposed plans have the restaurants’ back of house spaces facing 16 th Street, so in order to meet the ground floor transparency requirements, the applicant proposes installing public art on the south side of the buildings. The proposed building elevations include space for four murals which, when combined with the glazing, cover 50% of the southern facades. The artist and final art piece(s) shall be selected through the city’s public art process. This typically includes a public art request for proposals; a selection committee made up of residents, city staff, and owner representatives; and varying degrees of community engagement in the process leading up to the final design. Vehicular parking: Without any reductions, the zoning ordinance requires 861 parking spaces for the existing office and proposed restaurant uses. The ordinance allows the minimum parking requirement to be reduced by up to 10% for any parcel located within one-quarter mile of regular bus transit service, as defined in the ordinance. Bus Route 645 provides regular bus service, so parking requirements for both the office and restaurant uses qualify for a 10% reduction. 678 parking spaces are provided in the proposed plans: 561 surface parking spaces in Lot 1, 18 surface parking spaces in Lot 2, and 99 spaces in a level of underground parking in the office building. 15 of the surface lot spaces are in the area to be dedicated to right of way and are not included in the available parking count. The applicant has submitted a draft shared parking and ingress/egress easement agreement in order to allow the southern parking lot of Lot 1 to be shared with restaurant users. 329 of the 561 surface parking spaces in Lot 1 would be availa ble to restaurant users. Staff find the proposed shared parking agreements meets the following conditions required in the ordinance: City council meeting of December 18, 2023 (Item No. 7b) Page 7 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 1. There must be adequate parking for both uses during shared hours of peak demand. 2. The minimum spaces required under a shared parking agreement shall be based on the number of spaces required for the use that requires the most parking. 3. A shared parking agreement shall be filed with the city. Given the proposed plans and the parking reductions available in the zoning ordinance, staff find the plans meet city parking requirements. Electric vehicle supply equipment (EVSE): A level-2 EV charger will serve two parking spaces at the site, including one ADA parking space. An additional 50% of the new parking spaces will be served by conduit for future EV charger installation. The plans meet the city’s EVSE requirements. Bicycle parking: Seven U-racks, providing 14 bicycle parking spaces, are proposed north of the restaurants adjacent to the outdoor dining area. The plans meet city b icycle parking requirements. Landscaping: The zoning ordinance requires one tree per 50 linear feet of site perimeter, and six shrubs per 50 linear feet of site perimeter. 17 trees and 102 shrubs are required on Lot 2, and 18 trees and 117 shrubs are proposed in the landscaping plan. New parking islands contain canopy trees and perennial plantings, and the new drive-through aisle is screened by evergreen trees. The plans meet city landscaping requirements. City staff are working with the office building property management to replant trees on Lot 1 that have been removed in recent years and to repair the walking trail around the pond. Construction on these items is tentatively scheduled for spring 2024. Designed outdoor recreation area (DORA): A minimum of 12% of any lot in the O office district must contain designed outdoor recreation area or DORA. The proposed plans include 13% of Lot 2 designated DORA including outdoor seating for all four tenant spaces. The plans meet DORA requirements. Solid waste: A trash enclosure is north of the buildings and will fully screen the dumpsters. The plans will comply with the city’s solid waste ordinance. Utilities: The proposed buildings will connect to existing city utilities. Existing city infrastructure has capacity to serve the proposed uses. Any mechanical equipment placed on the roof shall be screened from view as required by the zoning ordinance. Signs: No sign plan was submitted with the applications. Prior to installation of any new signs, the applicant shall submit the necessary sign permits and a sign plan that shows all existing and proposed signage on both Lots 1 and 2. Signs shall comply with all sign regulations in the O office zoning district, and no signs will be permitted in right-of-way. Special permit amendment: In 1978, city council approved a special permit on the site to allow construction of the original 9-story office building and a drive-in banking facility. Since then, the special permit has been amended several times. City council meeting of December 18, 2023 (Item No. 7b) Page 8 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 • 1979: added restaurants to allowed uses at 5875 Wayzata. • 1981: Added 1,800 square foot cafeteria to ground floor as an allowed use. • 1985: Added 1,866 square foot expansion to ground floor on east side. • 1987: Added 1492 square foot expansion to ground floor on east side. • 2003: Amendment to allow exterior modifications including landscaping improvements to restaurant at 5875 Wayzata; combined and cleaned up previous approvals. • 2004: Added driveway and allowed mobile medical use on site. • 2006: Administrative lot split that separated 5875 Wayzata from the rest of the site; allowed exterior modifications for restaurant. • 2006: Added 800 square foot expansion to ground floor and southeast corner. The proposed preliminary plat and restaurant buildings require an ad ditional amendment to the special permit. The existing office use is allowed by right in the O office zoning district. The proposed restaurant use is allowed with conditions in this zoning district. The resolution approving this special permit amendment will also clean up previous approvals on the site. Conditional use permit: Section 36-71(c) of the zoning ordinance permits more than one principal building on a single lot with a conditional use permit (CUP). The project must meet the following general requirements of all CUPs: 1. Consistency with plans. It is consistent with and supportive of principles, goals, objectives, land use designations, redevelopment plans, neighborhood objectives, and implementation strategies of the comprehensive plan. This condition is met. 2. Nuisance. It is not detrimental to the health, safety, morals and general welfare of the community as a whole. It will not have undue adverse impacts on the use and enjoyment of properties, existing and anticipated traffic conditions, parking f acilities on adjacent streets, and values of properties in close proximity to the conditional use. This condition is met. 3. Compliance with code. It is consistent with the regulations, intent and purpose of City Code and the zoning district in which the conditional use is located. This condition is met. The existing and proposed uses are allowed in the O office zoning district. In -vehicle services are permitted in the district with a conditional use permit. 4. Consistency with service capacity. It will not have undue adverse impacts on governmental facilities, services or improvements which are either existing or proposed. Services will not be adversely impacted by the proposed restaurant development. 5. Site design. It is consistent with the design and other requirements of site and landscape plans prepared by or under the direction of a professional landscape architect or civil engineer registered in the state and adopted as part of the conditions imposed on the use by the city council. This condition is met. 6. Consistency with utilities. It is consistent with the City’s stormwater, sanitary sewer, and water plans. The proposed design is consistent with all city utility plans. In-vehicle service: The applicant proposes a drive-up pick-up window to serve the westernmost tenant space. This use falls under the in-vehicle service land use in the zoning ordinance. In the O office zoning district, in-vehicle service uses require a conditional use permit and must meet the following conditions: City council meeting of December 18, 2023 (Item No. 7b) Page 9 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 1. Drive-through facilities and stacking areas shall not be located within 100 feet of any parcel that is zoned residential and used or subdivided for residential use, or has an occupied institutional building, including but not limited to schools, religious institutions, and community centers. This condition is met. 2. Stacking shall be provided for six cars per customer service point and shall comply with all yard requirements. This condition is met. 3. This use shall only be permitted when it can be demonstrated that the operation will not have a significant adverse effect on the existing level of service on adjacent streets and intersections. This condition is met. Staff do not anticipate a negative impact to the level of service of adjacent streets. The right-of-way dedication in the preliminary plat will allow for future road enhancements to improve level of service of streets in the area. 4. The drive-through facility shall be designed so it does not impede traffic or impair vehicular and pedestrian traffic movement or exacerbate the potential for pedestrian or vehicular conflicts. This condition will be met. The pick-up window drive aisle is designed to minimize crossings and conflicts between restaurant users and office users. City staff are working with the applicant on further revisions to add additional pedestrian crossing(s) across the drive aisle and enhanced pedestrian connections from the site to the public sidewalk and the walking trail to the east. Plans will be finalized before the project goes before city council. 5. Access shall be to a roadway identified in the comprehensive plan as a collector or arterial or shall be otherwise located so that access can be provided without generating significant traffic on local residential streets. This condition is met. 6. Any canopy constructed as part of this use shall be compatible with the architectural design and materials of the principal structure. No canopy proposed. 7. The use is in conformance with the comprehensive plan including any provisions of the redevelopment chapter and the plan by neighborhood policies for the neighborhood in which it is located, and conditions of approval may be added as a means of satisfying this requirement. This condition is met. The proposed restaurants are in conformance with the land use guidance in the 2040 Comprehensive Plan. Staff find the project meets all general CUP requirements as well as the specific requirements for in-vehicle service in the O office zoning district. Public outreach: The applicant held a virtual neighborhood meeting on October 26, 2023. Invitations were mailed to all property owners within 500 feet of the project site. About three community members as well as Councilmember Brausen, city staff, and the development team attended. Questions were asked about the placement of the rest aurants in a particular location of the site, traffic generated by the project, impacts to city utilities, and potential relocation of the garden center. People also asked if alcohol would be served by the restaurants, and the developer replied it was highly unlikely due to the tenants they are working with. City staff explained the process for obtaining a liquor license through the city, which is a separate application from the planning applications currently under consideration. Planning commission: The commission held a public hearing on Nov. 15, 2023. Three people, who did not attend the neighborhood meeting, testified on the project. All three expressed concerns regarding the current project. Please see the attached draft of the planning commission meeting minutes for more details. City council meeting of December 18, 2023 (Item No. 7b) Page 10 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 The commission discussed pedestrian access to the site, the orientation of the buildings, the proposed murals, and the proposed uses. The commission recommended approval of all three applications. Staff have received additional comments from four residents who were not able to attend the public meetings. Three of the letters were in support of the development, while one letter expressed desire for a more walkable and pedestrian oriented site design. Please see the attached emails for more details. Next steps: If city council approves the applications, the developer will submit the final plat application. This application must be submitted within one year of approval of the preliminary plat or that approval shall be considered void. Once the final plat is approved by council and recorded with the county, the developer may submit construction documents for the building permit. Recommendations Staff recommends approval of the preliminary plat subject to the conditions in the attached resolution. Staff recommend approval of the special permit amendment, subject to the conditions listed in the attached resolution. Staff recommend approval of the conditional use permit subject to the conditions listed in the attached resolution. City council meeting of December 18, 2023 (Item No. 7b) Page 11 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Draft planning commission meeting minutes – November 15, 2023 3a. 5775 Wayzata Blvd – Park Place East Applicant: GW Properties Case No: 23-17-5, 23-18-SP, 23-10-CUP Ms. Kramer presented the report. Commissioner Beneke asked about the lack of an order window for one of the restaurants and if that was the restaurant’s choice and could that change in the future. Ms. Kramer stated an order window would not be allowed under this CUP because it is limited to in-vehicle service, not sales, and the queue does not accommodate an order board, so a CUP amendment would be needed for in-vehicle sales use. Only a pickup window would be allowed with this CUP. Commissioner Youngquist asked if the original application had a different configuration. Ms. Kramer stated yes, and noted the site plan has been adjusted to improve vehicle circulations and reduce conflicts. Commissioner Youngquist asked if this site plan required the removal of the median island at the site. Ms. Kramer stated yes, a portion of the median would be removed, and the 16th Street driveway also shifts west from its present location. Commissioner Eckholm asked if there is a reason for the shown traffic direction for the pickup window. Reversing the direction would allow more space for the queue. Ms. Kramer stated this is for the driver’s side pickup window. Commissioner Divecha asked about a mural. Ms. Kramer stated the zoning code has ground floor requirements for transparency. She noted the code allows some flexibility if planning commission and city council support it and one suggested option is public art, so the developer proposes to install public murals along 16th Street that would equal the wall area of the 50% glass and transparency requirements. She added the artists a nd final design would need to go through the city’s public art selection process. Commissioner Divecha asked if vehicles and pedestrians would go past this area. Ms. Kramer stated yes. Commissioner Merten asked about vehicles pulling out of the drive through and which way they would go when exiting. Ms. Kramer stated they would most likely make a U - turn to the left and south to return to 16 th Street. Commissioner Merten asked if the greenhouse stores items at the site. Ms. Kramer said no and noted the garden center fully breaks down their displays and is seasonal only. Commissioner Beneke noted he was surprised that with such a large parking lot there is only one EV charger included and asked if more would be added later. Ms. Kramer City council meeting of December 18, 2023 (Item No. 7b) Page 12 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 stated the requirement triggers based on reconstructed parking spaces. She added when the office reconstructs the entire parking lot more EV chargers will be required. Chair Weber asked if this is the first pick up window like this in St. Louis Park. Mr. Walther stated yes, noting that is the only eating establishment pick up window within the city vs. other businesses that have them, such as dry cleaners. Chair Weber asked about the tenants. The developer Mr. Goltz thanked staff for their work on this. He stated they do have tenants lined up at this time adding it is typically rare to have them already, but they have all committed. He noted the pickup window alleviates congestion in the area, and added he likes the ordinance concerning murals in the city, which will be community oriented. Chair Weber asked about the pedestrian access to the development and if that is a sure thing. Mr. Goltz stated yes, and they do want to maintain and further that and will continue to work with the city on acceptable enhancements. Chair Weber asked if there is a guarantee the garden center can remain. Mr. Goltz stated yes, they do want to keep them there, adding they are a value to the community and their mobility allows them to remain in the large space there. Commissioner Eckholm asked about the space between the buildings. Mr. Goltz noted it is an outdoor seating area and all the tenants will have their own defined areas for outdoor seating. Commissioner Eckholm noted there is a desire for pedestrian availability and the more it feels connected, the better it will be. Mr. Goltz agreed, adding it is wide enough to accommodate a five-foot-wide clear passage and the tables for outside dining if the tables are arranged differently than shown in the plans. Commissioner Merten asked if Chipotle will accommodate ordering onsite within the restaurant. Mr. Goltz stated yes. Commissioner Merten also asked about snow removal. Mr. Goltz stated there is an agreement with the office building and the parking lot contractor will be handling the whole parking lot. Commissioner Divecha asked about walkability in this area and how pedestrians can walk safely there. Mr. Goltz stated there is a sidewalk there and we are happy to connect with staff on this to make it work well. Commissioner Divecha added she would like to make it easy for residents living in the neighborhood to get there easily and safely. Mr. Goltz stated a crosswalk can also be added, and they will work with the city on this. Mr. Walther added Zarthan Avenue has a sidewalk on the west side that connects to 16th Street. He stated building a sidewalk on the east side of the street would require removing many mature trees and the berm screening the parking lot. He added there City council meeting of December 18, 2023 (Item No. 7b) Page 13 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 are grade issues west of the office building that also complicate sidewalk construction, so staff will work with the developer to include pedestrian connections from 16th Street to meet the needs and require a cash-in-lieu payment for the sidewalk along Zarthan as allowed in the subdivision ordinance for such situations. Mr. Walther also noted the existing private sidewalks connecting through the site. Commissioner Divecha urged a creative solution to this especially for those who live in the area. Commissioner Eckholm added there is also a hotel in the area as well and connections to the north side of 16th Street will be important in this area. Commissioner Youngquist asked if there will be signage letting folks know the Chipotle pick up lane is not a drive through. Mr. Goltz stated yes. Commissioner Youngquist noted the back of the building facing the street and stated she likes the solution of the mural. She asked if there is room to extend the outdoor seating to the south side of the building along 16 th Street to activate the area. Mr. Goltz stated because there will probably not be seating back there, it becomes a safety issue as staff would not be able to see behind the building to address customer needs. Commissioner Merten noted the pick-up window lane should not be an issue, and noted ordering on the app will be convenient and customers will be used to this type of ordering system. Mr. Goltz agreed, noting this was devised during Covid for order pick up. Chair Weber opened the public hearing. Kevin Curry, 5970 West 16th St., noted he is a 20-year resident of the neighborhood and complimented the development in the city, however, noted he is in opposition of this particular development. He stated the comprehensive plan notes the city wants to promote neighborhood livability, social connection, environmental stewardship, small business development, and high-quality jobs. He stated this development will make money for the developer and the fast-food restaurants not based in St. Louis Park, this is not good for the quality of life of his neighborhood or the city as a whole, or the property values of the city and the Blackstone neighborhood, which is become noisier and busier. He added fast-food restaurants do not class up a neighborhood and will result in noise, traffic and litter. He added traffic will increase and will not result in good solid jobs for residents, with increasing concerns about panhandling and safety issues, as well as fry cooking issues at the end of the evening. He asked the commissioners to consider if more restaurants are needed in the city, will this development foster the city goals, and will this development make life better for residents. He stated the answer is no and thanked them for their time. Jenna Untiedt, Waverly, MN, noted she represents the seasonal garden center, Untiedt’s, and stated they are the current tenant in the location and in the office building. She stated she sees some benefits for this development but has concerns about traffic there and noted the entryway off 16th Street is a concern as well. She also expressed their interest in remaining on the site. City council meeting of December 18, 2023 (Item No. 7b) Page 14 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Mary Powers, 6090 West 16th Street, stated she lives right across the street and quality of life will be a concern. She added losing the farmer’s market is also a concern, adding the market used to be in the Shoppes at Knollwood parking lot and was displaced by a similar development when Chick-Fil-A was built. She stated this will be a nightmare come wintertime and noted the southwest corner of the parking lot usually ends up storing a 10 feet pile of snow. She asked where that snow will be placed now. She stated she loves the restaurants but doesn’t want them across the street from her. Chair Weber closed the public hearing. Commissioner Merten stated her assumption was that the farmer’s market would relocate within the parking lot and didn’t realize they used to be at Knollwood. She added she understands concerns about over development in this location but did think it is a good use of the large and underutilized parking lot. Commissioner Divecha added she feels mixed about this also adding she prefers something there vs. nothing. She added moving the farmer’s market the second time does feel less aligned with city goals as well as pedestrian friendliness in the area. Commissioner Eckholm added he also agrees with comments made. He noted in the West End there have been goals met with density and walkability, but in this area, he does have concerns putting a drive through in the area. However, he noted the developer’s presentation changed his mind on the pick-up window and now does see that as an improvement. He added even though this is not the development he would like to see, the developer is trying to do this in an improved way, and it is a good thing. He added the issue with the farmer’s market is not a problem with the developer, but with the property owner and he hopes the owner will work with them in good faith as it is a community asset and have already been displaced another time. Commissioner Youngquist added this is a better utilization of an under-utilized parking lot and it will increase the tax base for the city and provide restaurant options for the community. She added she does understand the neighbors’ concerns but given how the property is zoned, there could be many things that could go there, but it’s not zoned for housing here. She thanked staff for their work on this and she appreciates the murals also. Commissioner Beneke agreed with comments on zoning and stated this is the best option for this area. Chair Weber stated the planning commission does have its limitations and he encouraged neighbors to bring their concerns also to staff and city council. He noted he likes the idea of council or staff communicating with the building owner regarding the farmer’s market and ask them to consider that this will survive in the area. Ms. Kramer noted all of these comments will go into the minutes for council consideration and public information and also this can be addressed following the City council meeting of December 18, 2023 (Item No. 7b) Page 15 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 meeting with the developer. She noted Council Member Brausen represents this ward and he attended the neighborhood meeting to listen to residents, as well as the mayor and at large council members. Mr. Goltz stated they are working closely with the owner, and they want to keep the farmer’s market and work with the owner to keep them in the area. It was moved by Commissioner Beneke, seconded by Commissioner Eckholm, to approve staff recommendations for 5775 Wayzata Blvd – Park Place East for the preliminary plat, special permit amendment, and conditional use permit, subject to conditions recommended by staff. The motion passed unanimously. City council meeting of December 18, 2023 (Item No. 7b) Page 16 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Resolution No. 23-____ Approving preliminary plat of Park Plaza 2nd Addition, 5775 Wayzata Boulevard Whereas, GW Properties applied for approval of preliminary plat in the manner required for platting land under the St. Louis Park Ordinance Code, and all proceedings have been duly thereunder. Whereas, the proposed preliminary plat has been found to be in all respects consistent with the comprehensive plan and the regulations and requirements of the laws of the State of Minnesota and the ordinances of the City of St. Louis Park. Whereas, the proposed plat is situated upon lands in Hennepin County, Minnesota; the property is legally described in “Exhibit A” attached hereto. Now therefore be it resolved the proposed preliminary plat of Park Plaza 2nd Addition is hereby approved and accepted by the city as being in accord and conformity with all ordinances, city plans and regulations of the City of St. Louis Park and the laws of the State of Minnesota, provided, however, that this approval is made subject to the opinion of the city attorney and certification by the city clerk and subject to the following conditions: 1. The site shall be developed, used and maintained in accordance with the conditions of this ordinance, approved official exhibits and city code. 2. All utility service structures shall be buried. If any utility service structure cannot be buried (i.e. electric transformer), it shall be integrated into the building design and 100% screened from off-site with materials consistent with the primary façade materials. 3. The applicant must submit a final plat application within one year after approval of the preliminary plat application or approval of the preliminary plat shall be considered void, unless a request for time extension is submitted in writing and approved by the city council. 4. Prior to the city signing and releasing the final plat to the developer for filing with Hennepin County: a. A financial security in the form of a cash escrow or letter of credit in the amount of $1,000 shall be submitted to the city to ensure that a signed mylar copy of the final plat is provided to the city. b. A planning development contract shall be executed between the city and developer that addresses, at a minimum: i. The installation of all public improvements including, but not limited to: sidewalks, boulevards, and the execution of necessary easements related to such improvements. ii. A performance guarantee in the form of cash escrow or irrevocable letter of credit shall be provided to the City of St. Louis Park in the amount of 1.25 times the estimated costs for the installation of all public improvements (sidewalks and boulevards), placement of iron City council meeting of December 18, 2023 (Item No. 7b) Page 17 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 monuments at property corners, and the private site stormwater management system and landscaping. iii. Shared parking agreement exhibits and documents. iv. The applicant shall reimburse city attorney’s fees in drafting/reviewing such documents as required in the final plat approval. v. The mayor and city manager are authorized to execute the planning development contract. 5. Prior to starting any land disturbing activities, the following conditions shall be met: a. Proof of recording the final plat shall be submitted to the city. b. A preconstruction meeting shall be held with the appropriate development, construction, private utility, and city representatives. c. All necessary permits shall be obtained. d. A performance guarantee in the form of cash escrow or irrevocable letter of credit shall be provided to the City of St. Louis Park in the amount of 125% of the cost for all public improvements (street, sidewalks, boulevards, utility, etc.) and landscaping. It is further resolved that the city clerk is hereby directed to supply two certified copies of this resolution to the above-named owner and subdivider, who is the applicant herein. The mayor and city manager are hereby authorized to execute all contracts required herein, and the city clerk is hereby directed to execute the certificate of approval on behalf of the city council upon the said plat when all of the conditions set forth have been fulfilled. Such execution of the certificate upon said plat by the city clerk, as required under Section 26-123(1)j of the St. Louis Park Ordinance Code, shall be conclusive showing of proper compliance therewith by the subdivider and City officials charged with duties above described and shall entitle such plat to be placed on record forthwith without further formality. The city clerk is instructed to record certified copies of this resolution in the office of the Hennepin County Register of Deeds or Register of Titles as the case may be. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of December 18, 2023 (Item No. 7b) Page 18 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 EXHIBIT "A" Lot 4, Block 2, Park Plaza, except that part lying Northerly and Westerly of the following described line: Commencing at the most Northerly corner of said Lot 4; thence on o plot bearing of South 47 degrees 01 minutes 08 seconds West along the Northwester ly line of said Lot 4, a distance of 140.50 feet; thence South 01 degree 39 minutes 00 seconds West, along the West line of said Lot 4, a distance of 85.62 feet to the point of beginning of a line to be described; thence South 89 degrees 40 minutes 35 seconds East a distance of 168.50 feet ; thence North 00 degrees 02 minutes 16 seconds East a distance of 179.69 feet to the North line of said Lot 4 and there terminating, Hennepin County, Minnesota. Hennepin County, Minnesota Torrens Property City council meeting of December 18, 2023 (Item No. 7b) Page 19 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Resolution No. 23-____ Amends and Restates Resolution Nos. 06-176 and 04-138 Amending and restating Resolutions Nos. 06-176 and 04-138 granting amendment to existing special permit under Section 36-37 of the St. Louis Park zoning ordinance to allow the construction of two buildings at 5775 Wayzata Boulevard Whereas, GW Properties has applied for approval for an amendment to an existing special permit under Section 36-37 of the St. Louis Park Ordinance Code to allow construction of two one-story retail buildings at 5775 Wayzata Boulevard; the property is legally described in “Exhibit A” attached hereto. Whereas, The city council has considered the information related to Planning Case Nos. 78-127-DDD, 81-114-SP, 85-31-SP, 87-84-SP, 04-58-CUP, 06-55-CUP, 06-65-CUP, and 23-18-SP and the effect of the proposed buildings on the health, safety, and welfare of the occupants of the surrounding lands, existing and anticipated traffic conditions, the effect on the value of properties in the surrounding area and the effect of the use on the comprehensive plan, and compliance with the intent of the zoning ordinance. Whereas, a special permit was issued was issued regarding the subject property pursuant to Resolution No. 87-209 of the St. Louis Park City Council dated December 21, 1987, which contained conditions applicable to said property. Whereas, due to changed circumstances, amendments to those conditions are now necessary, requiring the amendment of that special permit. Whereas, the conditions of Resolution No. 04-138 were not included in subsequent resolutions, and the conditions of Resolution No. 04-138 still apply to the subject property and are incorporated herein. Whereas, it is the intent of this resolution to continue and restate the conditions of the permit granted by Resolution Nos. 04-138 and 06-176, to add the amendments now required, and to consolidate all conditions applicable to the subject property in this resolution . Whereas, the contents of Case Nos. 78-127-DDD, 81-114-SP, 85-31-SP, 87-84-SP, 04-58- CUP, 06-55-CUP, 06-65-CUP, and 23-18-SP are hereby entered into and made part of the public hearing record and the record of decision for this case. Now therefore be it resolved that Resolution Nos. 04-138 and 06-176 are hereby combined, restated and amended by this resolution which continues and amends a special permit to the subject property for the purposes of permitting the construction of two new one- story retail buildings within the (O) Office District at the location described above based on the following conditions: City council meeting of December 18, 2023 (Item No. 7b) Page 20 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 1. The site plan shall be developed, used and maintained in accordance with Exhibit A – Site Plan; Exhibit B – Planting and Lighting Plan; Exhibit C – Grading Plan; Exhibit D – Garage Level Plan; Exhibit E – Elevation Plans; Exhibit F – Site Plan and Utility Diagram; except as modified on November 9, 1978, July 1, 1985, August 18, 2003, Novemb er 15, 2004, and November 6, 2006 (Exhibits are on file in the Community Development office at the City of St. Louis Park. 2. All landscaping, parking improvements, curbing, sodding, building construction and related elements as shown on the exhibits shall be completed by October 15, 1980. 3. That a Class III restaurant be allowed on the first floor as shown on Exhibit G – Cafeteria, containing no more than 1,800 square feet of floor area and without any exterior signage. 4. An addition to the east side of the building containing 1,866 square feet is hereby permitted in accordance with Exhibit H – Park Place Office Building Addition Site Plan/Floor Plan; and Exhibit I – Park Place Office Building Addition Elevations. Said Exhibits H and I supersede the exhibits in Condition 1 but only to the extent relative to the 1,866 square foot addition and realignment of the abutting driveway connecting the two parking lots and adjacent landscaping. If the proposed driveway is constructed, it shall be completed, including th e said landscaping adjustments and driveway, by May 15, 1986. 5. An addition to the northeast side of the building containing 1,492 square feet is hereby permitted in accordance with Exhibit A1 – Site Plan and Planting Plan; and Exhibit E1 – Elevation Plan, with all improvements to be completed by October 30, 1988. 6. The special permit shall be amended on November 15, 2004 to incorporate all of the preceding conditions and add the following conditions: a. The site shall be developed, used and maintained in accordance with Exhibits A1a, A1b – site plans, E1a and E1b – elevations, such documents incorporated by reference herein. b. This driveway may only be used for the purpose of keeping a trailer containing imaging diagnostic equipment. c. No more than one trailer may be permanently kept on site. 7. The following conditions pertain to the restaurant building located in the northwest corner of the subject property: a. The site shall be developed, used and maintained in accordance with Exhibit A, Site Plan; Exhibit B, Planting and Lighting Plan; Exhibit C, Grading Plan; Exhibit D, Garage Level Plan; Exhibit E Elevation Plans; Exhibit F, Site Plan and Utility Diagram, except as modified by the Planning Department on November 8, 1978; and as amended by condition “h” adopted on August 18, 2003. b. All landscaping, parking improvements, curbing, sodding, building construction, and related elements shown on the exhibits, shall be completed by October 15, 1980. c. That the northwest corner of the lot be developed, used, and maintained in accordance with the following site plans and development plans: Sheet A1, A3, A4 and SC1 and the Landscape Plan, Exhibit G. d. That the exterior columns be brick, compatible and consistent with the brick planter. City council meeting of December 18, 2023 (Item No. 7b) Page 21 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 e. That all on-sale liquor sales shall occur only within the restaurant building and the attached patio court adjacent to the northwest corner of the building as shown on the site plan. f. That all landscaping, site development, and construction required and as shown on the exhibits, be completed by May 15, 1980. g. The special permit shall be amended on September 5, 2006 to incorporate all of the preceding conditions as modified and allow exterior modifications to the existing restaurant subject to the following conditions approved by Resolution 06-139: i. The Exterior Elevation Exhibit is hereby replaced with the attached exhibit marked as Elevation Exhibit 2006. ii. Prior to the issuing a building permit for the remodel of the TGI Friday’s, the applicant shall: 1. Provide proof of recording the administrative lot split at Hennepin County. 2. Provide a revised Utility, Encroachment and Parking Easements Agreement reflecting the new legal description of the TGI Friday’s parcel. 8. The special permit shall be amended on November 6, 2006 to incorporate all of the preceding conditions and to add the following conditions to permit the construction of an 800 square foot addition to the office building approved by Resolution 06-176: a. The addition is to be constructed as illustrated in the site plan, landscaping exhibits and building elevation exhibits. 9. The special permit shall be amended on December 18, 2023 to incorporate all of the preceding conditions and to add the following conditions to permit the construction of two one-story retail buildings: a. Subject to city council approval of the final plat, the recording of the approved final plat at Hennepin County, and city council approval of the conditional use permit. b. The site shall be developed, used and maintained in accordance with the conditions of this ordinance, approved official exhib its and city code. c. Construction and staging information will be provided to staff for review and approval before building permits are issued. d. All new utility service structures shall be buried. e. Prior to installation of any new signs, the applicant shall submit the necessary sign permits and a site sign plan that shows all existing and proposed sign s on both Lots 1 and 2. No signs will be permitted in right-of-way. f. Prior to starting any land disturbing activities, the following conditions shall be met: i. Proof of recording the final plat shall be submitted to the City. ii. A preconstruction meeting shall be held with the appropriate development, construction, private utility, and city representatives. iii. All necessary permits shall be obtained. g. Prior to issuance of building permits, the following conditions shall be met: i. Final construction plans for all public improvements and private stormwater system shall be signed by a registered engineer and approved by the city Engineer. City council meeting of December 18, 2023 (Item No. 7b) Page 22 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 ii. A performance guarantee in the form of cash escrow or irrevocable letter of credit shall be provided to the City of St. Louis Park in the amount of 1.25 times the estimated costs for the installation of all public improvements (sidewalks and boulevards), placement of iron monuments at property corners, and the private site stormwater management system and landscaping. iii. Agreement for the developer to contribute fund toward public art and to cooperate with the City on a public process to select artist(s) and artwork for the site. h. The developer shall comply with the following conditions during construction: i. All city noise ordinances shall be complied with, including that there be no construction activity between the hours of 7 p.m. and 7 a.m. Monday through Friday, and between 7 p.m. and 9 a.m. on weekends and holidays. ii. The site shall be kept free of dust and debris that could blow onto neighboring properties. iii. Public streets shall be maintained free of dirt and shall be cleaned as necessary. iv. The City shall be contacted a minimum of 72 hours prior to any work in a public street. v. Work in a public street shall take place only upon the determination by the city engineer (or designee) that appropriate safety measures have been taken to ensure motorist and pedestrian safety. vi. The developer shall install and maintain chain link security fencing that is at least six feet tall along the perimeter of the site. All gates and access points shall be locked during non-working hours. vii. Temporary electric power connections shall not adversely impact surrounding neighborhood service. i. Prior to the issuance of any permanent certificate of occupancy permit the public improvements, private utilities, site landscaping and irrigation shall be installed in accordance with the official exhibits. j. Upon city approval of and acceptance of the public and private site improvements, the developer shall provide a one-year warranty and cash escrow or letter of credit for 25% of the final construction costs of the improvements. k. In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. l. The special permit shall be revoked and cancelled if the building or structure for which the special permit is granted is removed. City council meeting of December 18, 2023 (Item No. 7b) Page 23 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 It is further resolved that the city clerk is instructed to record certified copies of this resolution in the office of the Hennepin County Register of Deeds or Registrar of Titles as the case may be. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of December 18, 2023 (Item No. 7b) Page 24 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 EXHIBIT "A" That part of Lot 4, Block 2, Park Plaza, Hennepin County, Minnesota, lying northerly and westerly of the following described line: Commencing at the most Northerly corner of said Lot 4; thence on o plot bearing of South 47 degrees 01 minutes 08 seconds West along the Northwester ly line of said Lot 4, a distance of 140.50 feet; thence South 01 degree 39 minutes 00 seconds West, along the West line of said Lot 4, a distance of 85.62 feet to the point of beginning of a line to be described; thence South 89 degrees 40 minutes 35 seconds East a distance of 168.50 feet ; thence North 00 degrees 02 minutes 16 seconds East a distance of 179.69 feet to the North line of said Lot 4 and there terminating, Hennepin County, Minnesota. AND Lot 4, Block 2, Park Plaza, except that part lying Northerly and Westerly of the following described line: Commencing at the most Northerly corner of said Lot 4; thence on o plot bearing of South 47 degrees 01 minutes 08 seconds West along the Northwester ly line of said Lot 4, a distance of 140.50 feet; thence South 01 degree 39 minutes 00 seconds West, along the West line of said Lot 4, a distance of 85.62 feet to the point of beginning of a line to be described; thence South 89 degrees 40 minutes 35 seconds East a distance of 168.50 feet ; thence North 00 degrees 02 minutes 16 seconds East a distance of 179.69 feet to the North line of said Lot 4 and there terminating, Hennepin County, Minnesota. TO BE PLATTED AS Lots 1 and 2, Block 1, Park Plaza 2nd Addition City council meeting of December 18, 2023 (Item No. 7b) Page 25 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Resolution No. 23-____ Approving a conditional use permit for 5775 Wayzata Boulevard Whereas, GW Properties applied for approval of a conditional use permit for the purpose of constructing two new buildings at 5775 Wayzata Boulevard; the property is legally described in “Exhibit A” attached hereto. Whereas, the property is guided Office in the Comprehensive Plan future land use map. Whereas, the property is located in the O Office zoning district . Whereas, the applicant requests a conditional use permit to allow more than one principal buildings on one lot; and to allow in-vehicle services on the site. Whereas, the city council has determined that the application meets the conditions for in- vehicle service in the O Office district, including: 1. Drive-through facilities and stacking areas shall not be located within 100 feet of any parcel that is zoned residential and used or subdivided for residential use, or has an occupied institutional building, including but not limited to schools, religious institutions, and community centers. 2. Stacking shall be provided for six cars per customer service point and shall comply with all yard requirements. 3. This use shall only be permitted when it can be demonstrated that the operation will not have a significant adverse effect on the existing level of service on adjacent streets and intersections. 4. The drive-through facility shall be designed so it does not impede traffic or impair vehicular and pedestrian traffic movement or exacerbate the potential for pedestrian or vehicular conflicts. 5. Access shall be to a roadway identified in the comprehensive plan as a collector or arterial or shall be otherwise located so that access can be provided without generating significant traffic on local residential streets. 6. Any canopy constructed as part of this use shall be compatible with the architectural design and materials of the principal structure. 7. The use is in conformance with the comprehensive plan including any provisions of the redevelopment chapter and the plan by neighborhood policies for the neighb orhood in which it is located, and conditions of approval may be added as a means of satisfying this requirement. Whereas, the existing use on the property is office, which is a permitted use in the district. The proposed use on the property is a restaurant, which is a permitted use in the district when part of a larger development which contains at least one other principal use . City council meeting of December 18, 2023 (Item No. 7b) Page 26 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Whereas, the in-vehicle services use of this property is consistent with and supportive of principles, goals, objectives, land use designations, redevelopment plans, neighborhood objectives, and implementation strategies of the comprehensive plan. Whereas, the in-vehicle service use is not detrimental to the health, safety, morals and general welfare of the community as a whole. It will not have undue adverse impacts on the use and enjoyment of properties, existing and anticipated traffic conditions, parking facilities on adjacent streets, and values of properties in close proximity to the conditional use. Whereas, the in-vehicle service use is consistent with the regulations, intent and purpose of City Code and the zoning district in which the conditional use is located . Whereas, the in-vehicle service use will not have undue adverse impacts on governmental facilities, services or improvements which are either existing or proposed. Whereas, the project plans are consistent with the design and other requirements of site and landscape plans prepared by or under the direction of a professional landscape architect or civil engineer registered in the state and adopted as part of the conditions imposed on the use by the city council. Whereas, the project plans are consistent with the City’s stormwater, sanitary sewer, and water plans. Whereas, the contents of Case No. 23-19-CUP are hereby entered into and made part of the record of decision for this case. Now therefore be it resolved that the conditional use permit is hereby approved and accepted by the city council as being in accord and conformity with all ordinances, city plans and regulations of the City of St. Louis Park, provided, however, that this approval is made subject to the opinion of the city attorney and certification by the city clerk and subject to the following conditions: 1. Subject to city council approval of the final plat, the recording of the approved final plat at Hennepin County, and city council approval of the special permit amendment. 2. In addition to any other remedies, the developer or owner shall pay an administrative fee of $750 per violation of any condition of this approval. 3. The conditional use permit shall be revoked and cancelled if the building or structure for which the conditional use permit is granted is removed. It is further resolved that the city clerk is instructed to record certified copies of this resolution in the office of the Hennepin County Register of Deeds or Register of Titles as the case may be. Reviewed for administration: Adopted by the city council December 18, 2023 City council meeting of December 18, 2023 (Item No. 7b) Page 27 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk City council meeting of December 18, 2023 (Item No. 7b) Page 28 Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) – Ward 4 EXHIBIT "A" Lot 2, Block 1, Park Plaza 2nd Addition, Hennepin County, Minnesota From:Nick Kieser To:Jacquelyn Kramer Subject:Park Place East Development - 5775 Wayzata Blvd East Date:Tuesday, November 7, 2023 1:37:14 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Good Afternoon, I am writing to comment on the Park Place East development application. I like the idea of activating this parking lot more by introducing these restaurant uses and keeping Untiedt's. This parking lot never seems to be highly utilized, especially now after COVID. I do see this application and potential development as an opportunity to improve the surface parking to advance the goals of SLP. I think the surface parking area can be reduced even more and more green/open space can be incorporated into this development. In the 2040 Comp Plan one of the goals for the Commercial and Office Land Use Goals notes: D. "Encourage infill development and aesthetic improvements to commercial surface parking lots in order to enhance adjacent public streets and sidewalks and more efficiently utilize commercial land." (pg. 5-138) With that in mind, this could be a great opportunity to participate in the Depave SLP to improve stormwater runoff and aethetics since the parking lot is underused as this application for additional development represents. Creating a more welcoming and natural space in a heavily paved area can improve this area and community feel significantly, especially in the areas closer to the street/sidewalk. There is also a sidewalk gap on the east side of Zarthan Ave S that could be filled in. Hopefully, the platting and CUP process can lead to additional improvements to this development application. Thanks for hearing my comments. Thanks, Nick Kieser 1645 Brunswick Ave S City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 29 From:Konnor Slaats To:Jacquelyn Kramer Subject:Support for Park Place East Development Date:Saturday, November 11, 2023 4:00:04 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Hi Jacquelyn, I cannot make the Planning Commission meeting on November 15, so I wanted to send over this letter in support of the Park Place East development proposal. My name is Konnor Slaats, and I'm writing to express my strong support for the proposed development at Park Place East (5775 Wayzata Boulevard). As a Blackstone resident for the past five years, I've loved living in the area and am excited about the prospect of its continued growth. Additionally, I serve on the Community Technology Advisory Commission and am committed to supporting St. Louis Park. I initially rented in the West End for three years and was captivated by its unique charm and vibrancy. This love for the community led me to make a long-term commitment by purchasing a home here two years ago. I am deeply invested in the success and enhancement of the West End, and I believe that the proposed development will significantly contribute to the area while advancing the city's strategic goals. After graduating from the University of Minnesota, I wanted to find a long-term home. I explored various neighborhoods in Minneapolis, including Uptown, North Loop, Northeast, and others. SLP's West End stood out for its exceptional walkability, relative affordability, and balanced mix of commercial and residential development. The ease of life here has consistently impressed my family and friends, reinforcing my decision to make the area my home. I am confident this development would only enhance the West End's appeal. St. Louis Park's commitment to providing diverse housing and neighborhood-oriented development aligns seamlessly with this proposed project. This project not only enhances the neighborhood and commercial district but also supports the city's dedication to providing comfortable, safe, and reliable options for transportation. As someone who frequently walks throughout the West End, I can attest to its approachability and existing walkability, making this development a welcome addition. While I've heard concerns raised about potential traffic impacts, I find reassurance in the city's statement that this development is small enough to not warrant a traffic study. Considering the thriving presence of businesses like Costco and Home Depot in the area, I am confident that the addition of four small restaurants will be well- supported by the community without causing significant disruption. Moreover, I believe this development has the potential to increase local property values by adding City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 30 to West End's already impressive slate of walkable amenities. I trust in the planning commission's expertise and commitment to making informed decisions that benefit our community. I am confident that your decision will reflect the best interests of the neighborhood and the city. Please let me know if you have any questions. Thank you!! Konnor City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 31 From:Brett McGraw To:Jacquelyn Kramer Subject:Park Place East Development Hearing this Evening Date:Wednesday, November 15, 2023 2:20:40 PM CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. Wednesday, November 15, 2023 jkramer@stlouisparkmn.gov Re: Planning Commission Meeting for Wednesday, November 15, 2023 Dear Planning Commissioners Jim Beneke, Katie Merten, Matt Eckholm, Mia Divecha, Michael Salzer, Tom Weber & Jan Youngqist 5005 Minnetonka Blvd, Saint Louis Park, MN 55416 Subject: Park Place East I am not able to attend tonight's meeting so I am writing to express concern regarding the Park Place East development currently proposed for 5775 Wayzata Blvd. As proposed the development would exacerbate a number of problems already ailing the West End and the Blackstone Neighborhood. As I will outline toward the end of my comments, this development could be designed in a way to promote a more walkable and livable neighborhood and be a catalyst for real change in this area of our city. Background: The West End Neighborhood has seen tremendous investment in recent decades. Some of this development (The West End Proper) tries to promote a pedestrian focused Mainstreet or Downtown aesthetic. Due to lack of transit connectivity, a lack of safe and comfortable access for cyclists and an inhospitable public realm, Over the last few years quite a bit of medium to high density housing as well as new hotels have been just north and east of the West End. These new developments have good pedestrian access to the West End but not beyond. The rest of the area consists of big box retail and strip mall style development set within a sea of parking lots. Even more so than the West End these establishments are destined to accommodate shoppers arriving only by private car. The area is downright hostile toward anyone wishing or needing to access by walking, cycling or public transportation. The Current Proposal: As it is currently designed the Park Place East Development will face the parking lot and present the back of the buildings to the public right of way including existing sidewalks. Anyone wishing to access the establishment in any way other the by car (for instance from the residential buildings and hotels to the east) will need to walk down a sidewalk along the back of the building up the narrow sidewalk adjacent to the driveway and then cross over the drive through lane proposed for the Chipotle. Cyclists in particular will need to travel in City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 32 the street and access the development via the driveway. In addition, the development does not connect well to or enhance the green space and lake to the east. A Better Solution: What the Planning Commission should do right now is ask the developer to redesign the project so that it incorporates safe access for pedestrians and cyclists. The buildings should either front the public right of way or oriented a way to provide all access for all modes. In particular access for pedestrians and cyclists should be prioritized over auto access. Conclusion and Additional Considerations: By demanding that this and any new developments in the area prioritize access by pedestrians and cyclists the Planning commission can help promote redevelopment efforts that will lead to a more walkable and bikeable neighborhood and city. The majority of Saint Louis Park residents want to create a more livable city where all residents have a choice of transportation modes. This focus does not preclude auto access, it simply gives residents and shoppers a choice. To take things a step further I would much rather this be designed as a mixed use development with offices or apartments above the retail spaces. With the right mix of uses and good urban design the Blackstone neighborhood could be transformed into a dense, walkable and bikeable neighborhood, something our city desperately needs. We do not need more auto focused strip malls and commercial developments. Thank you for your time and consideration in this matter. Brett McGraw 3932 Webster Ave S Saint Louis Park, MN 55416 Brett.mcgraw@gmail.com Member of Strong Towns and the Bicycle Alliance of Minnesota https://www.strongtowns.org/ https://www.bikemn.org/ City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 33 City of St. Louis Park Jacquelyn Kramer, Associate Planner 5005 Minnetonka Blvd St. Louis Park, MN 55416 RE: Park Place East Dear Jacquelyn, I am wri�ng to introduce myself and express support for the proposed retail development at Park Place East. My wife and I along with two children currently reside in Golden Valley. We moved to Golden Valley in 2016 and prior to that lived in St. Louis Park from 2006-2016. We own six proper�es in St. Louis Park and feel very connected to the city. Our primary shopping area is the West End neighborhood of St. Louis Park including Costco, Home Depot, Cub Foods, and the surrounding retailers like Great Clips and Jersey Mike’s. I think the proposed development will greatly benefit the residents of St. Louis Park and surrounding ci�es. It is a very underu�lized space and will drive addi�onal tax dollars and employment op�ons to the city. I believe the proposed tenants are a good fit for the project and neighborhood and I can envision my family being very frequent customers. Please consider this leter in support of the proposed development. I hope the city council approves the project at their next mee�ng on December 18th. Sincerely, Tony Carlson Tony Carlson 510 Clover Leaf Drive Golden Valley, MN 55422 952-994-7917 - mobile City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 34 REG. ARCHITECTMARK T. DiGANCIDATE2211 N. Elston Ave. Suite 304, Chicago, Illinois 60614 Fax: 847.885.7751 Tel.: 847.885.8300D E S I G N S T U D I O 24, LLC.ARCHITECTS - DESIGNERS - PLANNERSPROPOSED ELEVATIONS5775 W. WAYZATA BLVD.ST LOUIS PARK, MN, 5541606.29.2023GW PROPERTIESA,SA2NORTH-WEST CORNERNORTH-EAST CORNERCity council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 35 DO NOT ENTEREVPARKINGEVPARKINGSNOOZE 3800 SF FFE: 881.50 CHIPOTLE 2300 SF FFE: 882.20 SWEETGREEN 2500 SF FFE: 882.20 SHAKE SHACK 3000 SF FFE: 881.50 AREA TO BE RESTORED TO ORIGINAL LAYOUT AFTER CONSTRUCTION OF UTILITY LINES 12.0' 12.0' 24.0'66.7'67.7'75.0'84.0'55.2'55.6'6.0'81.7' C1 C2 C1 C2 C1 6.0'6.0'6.0'5.0'15.0'18.0'30.2'9.0' 16.6'6.0'8.3'C3 C1 C5 P1 P2 P3P3P3 S1 S3 S4 R1 R1 R1 R124.0'30.0'10.0'15.0'15.0'R7 34.2'19.3' C3 R9.0' 21.8'16.6'6.7' R3.0'R7.0'R7.0' R7.0'R13.0' R3.0' P4 4.0' P4 18.0'9.0'R3.0' R3.0'R3.0' C3 R50.0'R74.0' R28.0' R16.0' R146.0' R92.0'6.0'35.7'6.4'R3.0'This document, together with the concepts and designs presented herein, as an instrument of service, is intended only for the specific purpose and client for which it was prepared. Reuse of and improper reliance on this document without written authorization and adaptation by Kimley-Horn and Associates, Inc. shall be without liability to Kimley-Horn and Associates, Inc.SHEET NUMBER 2023 KIMLEY-HORN AND ASSOCIATES, INC.767 EUSTIS STREET, SUITE 100, ST. PAUL, MN 55114PHONE: 651-645-4197WWW.KIMLEY-HORN.COMK:\TWC_LDEV\GW Properties\St Louis Park\3 Design\CAD\PlanSheets\C4-SITE PLAN.dwg December 06, 2023 - 10:29am©BYREVISIONSNo.DATEPRELIMINARY - NOT FOR CONSTRUCTIONR NORTH LEGEND SITE PLAN NOTES 1. REFER TO THE ARCHITECTURAL PLANS FOR EXACT LOCATIONS AND DIMENSIONS OF STOOPS, TRUCK DOCKS, TRASH ENCLOSURES & PRECISE BUILDING DIMENSIONS. REFER TO THE SITE ELECTRICAL PLAN FOR LOCATIONS OF PROPOSED LIGHT POLES, CONDUITS, AND ELECTRICAL EQUIPMENT. 2. REFER TO CERTIFIED SITE SURVEY OR PLAT FOR EXACT LOCATION OF EXISTING EASEMENTS, PROPERTY BOUNDARY DIMENSIONS, AND ADJACENT RIGHT-OF-WAY & PARCEL INFORMATION. 3. DIMENSIONS AND RADII ARE DRAWN TO THE FACE OF CURB, UNLESS OTHERWISE NOTED. DIMENSIONS ARE ROUNDED TO THE NEAREST TENTH FOOT, AND AREAS ARE ROUNDED TO THE NEAREST SQUARE FOOT. 4. UNLESS OTHERWISE NOTED, THE CONTRACTOR SHALL BE RESPONSIBLE FOR RELOCATING EXISTING SITE IMPROVEMENTS THAT CONFLICT WITH THE PROPOSED WORK, INCLUDING BUT NOT LIMITED TO TRAFFIC SIGNS, LIGHT POLES, ABOVEGROUND UTILITIES, ETC. PERFORM WORK IN ACCORDANCE WITH GOVERNING AUTHORITIES REQUIREMENTS AND PROJECT SITE WORK SPECIFICATIONS. COST SHALL BE INCLUDED IN BASE BID. 5. TYPICAL PARKING STALL DIMENSIONS SHALL BE 9.0-FEET IN WIDTH AND 18-FEET IN LENGTH UNLESS OTHERWISE INDICATED. 6. MONUMENT SIGN(S) ARE DETAILED ON THE ARCHITECTURAL PLANS AND ARE SHOWN FOR GRAPHICAL & INFORMATIONAL PURPOSES ONLY. CONTRACTOR TO VERIFY SIGN DIMENSIONS, LOCATION AND REQUIRED PERMITS WITH THE OWNER. 7. OUTDOOR SEATING IS ALLOWED AS AN ACCESSORY USE WITH THE FOLLOWING CONDITIONS: 7.1. THE THE USE IS LOCATED WITHIN 500 FT OF A RESIDENTIAL USE, AND NO SPEAKERS OR OTHER ELECTRONIC DEVICES WHICH EMIT SOUND PERMITTED. 7.2. THE USE IS LOCATED WITHIN 500 FT OF RESIDENTIAL USE, AND THE HOUSE OF OPERATION SHALL BE LIMITED TO 7:00 AM TO 10:00 PM PREPARED FORSITE DIMENSIONPLANC4005775 W. WAYZATABLVD.GW PROPERTIESST LOUIS PARKMNPROPOSED CURB AND GUTTER PROPERTY LINE PROPOSED FENCE SETBACK LINE RETAINING WALL DRAINAGE AND UTILITY EASEMENT STANDARD DUTY ASPHALT PAVMENT SEE DETAILS FOR SECTION CONCRETE SIDEWALK SEE DETAILS FOR SECTION LANDSCAPE AREA SEE LANDSCAPE PLAN FOR DETAILS KEYNOTE LEGEND CURB, SIDEWALK & PAVEMENT 6" CONCRETE CURB & GUTTER (B612) - SEE DETAIL CURB TRANSITION FROM 6" TO FLUSH - SEE GRADING PLAN MATCH EXISTING EDGE OF PAVEMENT/ CURB & GUTTER ACCESSIBLE CURB RAMP - SEE DETAIL INTEGRAL CONCRETE CURB / SIDEWALK - SEE GRADING PLAN SITE FIXTURES 6" CONCRETE FILLED PIPE BOLLARD - SEE DETAIL PAVEMENT MARKINGS ACCESSIBLE PARKING SYMBOL & LOADING AREA - SEE DETAIL STRIPED WHITE CROSS-HATCH AREA 4" SOLID LINES @ 45° 2' O.C. 4" WIDE WHITE PAINTED SOLID PARKING LOT LINE PAINTED WHITE DIRECTIONAL ARROW - SEE DETAIL SIGNAGE ADA PARKING SIGN IN BOLLARD - SEE DETAIL NO PARKING FIRE LANE SIGN - SEE DETAIL STOP SIGN - SEE DETAIL DO NOT ENTER SIGN - SEE DETAIL REFERENCE NOTES AT-GRADE BUILDING ENTRY & STRUCTURAL STOOP - REFER TO ARCHITECTURAL & STRUCTURAL PLANS MONUMENT SIGN - REFER TO ARCHITECTURAL PLANS LIGHT POLE & BASE - REFER TO SITE ELECTRICAL PLAN TRANSFORMER/EQUIPMENT PAD - REFER TO MEP PLANS TRASH ENCLOSURE - REFER TO ARCHITECTURAL PLANS C1 C2 C3 C4 C5 F1 P1 P2 P3 P4 S1 S2 S3 S4 R1 R2 R3 R6 R7 City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 36 EVPARKINGEVPARKINGSNOOZE 3800 SF FFE: 881.50 CHIPOTLE 2300 SF FFE: 882.20 SWEETGREEN 2500 SF FFE: 882.20 SHAKE SHACK 3000 SF FFE: 881.50 AREA TO BE RESTORED TO ORIGINAL LAYOUT AFTER CONSTRUCTION OF UTILITY LINES 8828828 8 3 884 882882 88288588588 1881882882 8 8 2882882 8 8 3 8 8 4 880 8 8 1 880 880 885 87988 188 2 883 884 8 8 0 88188 2 883 8758728738748768778 7 8 879 880 879 881 882 88 3 885 882 883 884 881 886886 885 885 884 884 885 884 886 883 880 87988 1 875880 880 880880 880880 880 880 880 880885 885 885885 8 8 5 885885 872873874876877878878878879879879881881881 881 881881881881 881 882882882882882 882882 882882882883 8838838 8 3 883883 883 883 883 883 883883883 884 884884 884 8848 8 4 884 8848 8 4 884 884 886 88 6 88 6 8868868 8 6 886886 886 887 887 887 185.3'30.0'239.6' 15.0'230.5'15.0'10.0'This document, together with the concepts and designs presented herein, as an instrument of service, is intended only for the specific purpose and client for which it was prepared. Reuse of and improper reliance on this document without written authorization and adaptation by Kimley-Horn and Associates, Inc. shall be without liability to Kimley-Horn and Associates, Inc.SHEET NUMBER 2023 KIMLEY-HORN AND ASSOCIATES, INC.767 EUSTIS STREET, SUITE 100, ST. PAUL, MN 55114PHONE: 651-645-4197WWW.KIMLEY-HORN.COMK:\TWC_LDEV\GW Properties\St Louis Park\3 Design\CAD\PlanSheets\P1-PRELIM PLAT.dwg December 12, 2023 - 9:56am©BYREVISIONSNo.DATEPRELIMINARY - NOT FOR CONSTRUCTIONNORTH PREPARED FORPRELIMINARYPLATP1005775 W. WAYZATABLVD.GW PROPERTIESST LOUIS PARKMNPRELIMINARY PLAT ZONING INFORMATION 1. PER ZONING MAP BY THE CITY OF ST. LOUIS PARK DATED, DECEMBER 14TH 2021, THE SURVEYED PROPERTY IS ZONED OFFICE DISTRICT 1.1. MAXIMUM BUILDING HEIGHT: LESSER OF 20 STORIES OR 240 FT 1.2. MAXIMUM BUILDING FLOOR AREA RATIO: 1.5 1.3. MINIMUM LOT WIDTH: 100 FT 1.4. MINIMUM LOT AREA: 15,000 FT 1.5. MINIMUM FRONT YARD: GREATER OF 20 FT OR BUILDING HEIGHT, MAX. 100 FT 1.6. MINIMUM SIDE YARD: 15 FT ONE SIDE, HALF THE BUILDING THE OTHER 1.7. MINIMUM REAR YARD: 15 FT 2. PROJECT SITE IS LOCATED IN TRAVEL DEMAND MANAGEMENT ZONE A AREA SUMMARY PROPOSED LOT 1: 469,163 SF / 10.7705 ACRES PROPOSED LOT 2: 45,168 SF / 1.0369 ACRES DEDICATED ZARTHAN AVENUE: 36,201 SF / 0.83106 ACRES TOTAL: 505,364 SF / 11.60153 ACRES PARKING SUMMARY TOTAL PARKING REQUIRED AT SITE PER CODE: 114 PARKING STALLS PARKING PROVIDED ON LOT 2: 18 PARKING STALLS PARKING PROVIDED ON LOT 1: 561 PARKING STALLS GENERAL NOTES CASH IN LIEU FEE WILL BE PAID INSTEAD OF INSTALLING SIDEWALK ALONG ZARTHAN GENERAL SURVEY NOTES THE ORIENTATION OF THIS BEARING SYSTEM IS BASED ON THE HENNEPIN COUNTY COORDINATE GRID (NAD 83-1 ADJ.) THE LEGAL DESCRIPTION AND EASEMENT INFORMATION USED IN THE PREPARATION OF THIS SURVEY IS BASED ON THE COMMITMENT TITLE INSURANCE PREPARED BY COMMERCIAL PARTNERS TITLE, A DIVISION OF CHICAGO TITLE INSURANCE COMPANY, COMMITMENT NO. CP72120 DATED MAY 9, 2023. THE ANGULAR ROTATION MEASURED COUNTER-CLOCKWISE FROM RECORD BEARINGS DEPICTION ON THE PLAT OF PARK PLACE TO THIS SURVEY IS 00 DEGREES 59 MINUTES 05 SECONDS THE SURVEYED PROPERTY HAS DIRECT ACCESS TO WEST 16TH STREET, WAYZATA BOULEVARD AND ZARTHAN AVENUE, ALL BEING PUBLIC RIGHT OF WAYS. THE ADDRESS OF THE PROPERTY DESCRIBED HERON IS 5775 WAYZATA BOULEVARD, SAINT LOUIS PARK, MN 55416 THE CONTOURS DEPICTED HEREON ARE PER ELEVATION DATA COLLECTED WHILE EFN WAS CONDUCTING THEIR FIELDWORK . THE CONTOUR INTERVAL IS 1 FOOT. BENCHMARK: TOP OF MNDOT GEODETIC MONUMENT OSAKA. ELEVATION = 889.07 FEET (NAVD 88) SITE BENCHMARK: TOP NUT OF HYDRANT EAST OF NORTHEAST CORNER OF BUILDING ON SURVEYED PROPERTY. ELEVATION = 885.93 FEET. (NAV 88) EXISTING LEGAL DESCRIPTION LOT 4, BLOCK 2, PARK PLAZA, EXCEPT THAT PART LYING NORTHERLY AND WESTERLY OF THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE MOST NORTHERLY CORNER OF SAID LOT 4; THENCE ON A PLAT BEARING OF SOUTH 47 DEGREES 01 MINUTES 08 SECONDS WEST ALONG THE NORTHWESTERLY LINE OF SAID LOT 4, A DISTANCE OF 140.50 FEET; THENCE SOUTH 01 DEGREE 39 MINUTES 00 SECONDS WEST, ALONG THE WEST LINE OF SAID LOT 4, A DISTANCE OF 85.62 FEET TO THE POINT OF BEGINNING OF A LINE TO BE DESCRIBED; THENCE SOUTH 89 DEGREES 40 MINUTES 35 SECONDS EAST A DISTANCE OF 168.50 FEET; THENCE NORTH 00 DEGREES 02 MINUTES 16 SECONDS EAST A DISTANCE OF 179.69 FEET TO THE NORTH LINE OF SAID LOT 4 AND THERE TERMINATING, HENNEPIN COUNTY, MINNESOTA. ALSO EXCEPTING THEREFROM THAT PART OF SAID LOT 4 THAT WAS ACQUIRED IN FEE BY THE STATE OF MINNESOTA PER FINAL CERTIFICATE DOCUMENT NUMBER 2498477 (PARCEL 70 S.P. 2789 (394=10) 905). HENNEPIN COUNTY, MINNESOTA TORRENS PROPERTY PROPOSED LEGAL DESCRIPTION LOT 1, BLOCK 1, PARK PLAZA 2ND ADDITION, HENNEPIN COUNTY, MINNESOTA. LOT 2, BLOCK 1, PARK PLAZA 2ND ADDITION, HENNEPIN COUNTY, MINNESOTA. City council meeting of December 18, 2023 (Item No. 7b) Title: Resolutions approving preliminary plat, special permit amendment, and conditional use permit for 5775 Wayzata Boulevard (Park Place East) - Ward 4 Page 37 Meeting: City council Meeting date: December 18, 2023 Action agenda item: 7c Executive summary Title: Resolution approving Shops at West End PUD major amendment – Ward 4 Recommended action: Motion to adopt resolution approving the PUD major amendment to allow animal handling-limited uses in the Shops at West End, subject to the conditions in the resolution. Policy consideration: Does the council approve of the request for expanded uses in this PUD? Summary: David Lima, representing MSP WEST END, LLC, requests expanding the list of uses allowed in the Shops at West End to allow limited animal handling. This use includes veterinary clinics, pet stores, and pet grooming that do not include boarding , daycare or off-leash recreation space for animals. Planning commission held a public hearing on Dec. 6, 2023. The commission recommended approval of the PUD amendment. Financial or budget considerations: None Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: discussion, draft planning commission meeting minutes, resolution Prepared by: Jacquelyn Kramer, associate planner Reviewed by: Sean Walther, planning manager / deputy community development director Approved by: Kim Keller, city manager City council meeting of December 18, 2023 (Item No.7c)Page 2 Title:Resolution approving Shops at West End PUD major amendment –Ward 4 Discussion Site information: Current use: Shopping Center Surrounding land uses: North:office, hotel, residential East:office, residential South:office West:commercial, hotel Current zoning:O office 2040 land use guidance:OFC-office Site area (acres): 16.6 Background: The West End redevelopment is located southwest of the Highway 100 and I-394 interchange.It is bounded by Gamble Drive to the south and Park Place Boulevard to the west. The West End integrates retail, restaurants, entertainment, hotel, office and residential uses. The district first received approval in 2007 and has been stead ily redeveloping in phases since then. The Shops at West End is a component of the West End PUD and is outlined in the aerial photo above. It is the commercial component of the West End redevelopment. It consists of commercial uses such as retailers, restaurants, entertainment, movie theater and some office uses. While the Shops at West End does not technically include the parking ramp located east of Duke Drive, it does include agreements to utilize the parking ramp for overflow parking. Therefore, the parking ramp is included in the analysis when determining if there is sufficient parking ava ilable for proposed uses in the Shops at West End. Present considerations:The applicant requests to expand the list of uses allowed in the Shops at West End to allow the animal handling, limited. The zoning ordinance describes this land use as: Animal handling, limited means any animal handling use such as veterinary clinics, pet stores, and pet grooming that do not include boarding, daycare, or outdoor off leash recreation space for animals. The use may require an animal to be kept overnight on-site for treatment but does not include boarding or animal daycares. Allowed commercial uses.The West End PUD was approved with a short and broad list of commercial uses allowed in the PUD. The request is to amend the PUD to also allow animal Park Place BlvdGamble Dr Duke DrWest End Blvd City council meeting of December 18, 2023 (Item No. 7c) Page 3 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 handling, limited. Uses currently allowed include: 1. retail 2. service (hair/nail salons, therapeutic massage) 3. restaurants 4. hotel 5. theater 6. office 7. medical and dental offices 8. motor vehicle display The PUD also includes a list of uses specifically prohibited. While any use not on the allowed list is technically not allowed, the PUD communicates that these uses are not welcome to be added in the future. 1. in-vehicle sales and service (drive-through) 2. motor fuel stations 3. motor vehicle sales 4. motor vehicle service and repair 5. car wash 6. currency exchange, check cashing and payday loan agencies 7. pawnshops 8. sexually-oriented businesses 9. tattoo shops 10. gun shops, not excluding a sporting goods store that sells as part of its inventory guns and ammunition. Planning commission: The commission held a public hearing on December 6, 2023. A representative of the owner spoke to the reasons for the PUD amendment request and responded to questions. No one else attended or spoke at the hearing. The commission recommended approval of the PUD amendment. Next steps: If the city council approves the PUD amendment, animal handling, limited uses will be allowed in the district. City council meeting of December 18, 2023 (Item No. 7c) Page 4 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 Draft planning commission meeting minutes – December 6, 2023 3a. Shops at West End PUD major amendment Applicant: David Lima Case No: 23-20-PUD Ms. Kramer presented the staff report. Commissioner Merten asked if there would be grass around the area for pets to relieve themselves. Ms. Kramer stated that while an outdoor off - leash area would not be allowed with this amendment, normal landscaping rules mandating green space would apply. Vice Chair Divecha opened the public hearing. Mr. Krsnak noted they are very proud of the West End area and stated restaurants work really well here, as well as service businesses. This veterinary service is wanted and needed in this area and is a good fit. Commissioner Beneke asked if there are any new tenants at West End. Mr. Krsnak stated they just signed a lease agreement today with a steak house that will take over the Lucky Cricket space. He noted there is a vet clinic ready to also lease space dependin g on the outcome of this application. Vice Chair Divecha closed the public hearing. Commissioner Youngquist stated it is important to support our brick-and-mortar businesses in the post-covid world, and brick-and-mortar businesses need to pivot. Allowing this use will help support the shops at West End as well as provide new services for citizens of St. Louis Park. Commissioner Merten agreed and noted people will most likely combine at trip to the vet with other errands while at West End. Commissioner Eckholm added people who live in West End would utilize these businesses and allowing these additional uses supports the goal of having an area to live, work, and play in, and he supports this application. It was moved by Commissioner Merten, seconded by Commissioner Eckholm, to approve the PUD major amendment as presented. The motion passed unanimously. City council meeting of December 18, 2023 (Item No. 7c) Page 5 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 Resolution No. _____ Amending and restating Resolution Nos. 08-057, 08-128, 09-040, 09-064, 10-093, 11-016, 13-123, 13-151, 19-011 and 22- 034 relating to a final planned unit development for the West End Redevelopment Project located at the southwest quadrant of Interstate 394 and Highway 100 The West End Redevelopment Project Whereas, the city has received an application for a preliminary and final planned unit development (PUD) at 5235 Wayzata Boulevard legally described as follows, to wit: Lot 2, Block 1, The Shops at West End, Hennepin County, Minnesota Whereas, a final PUD was approved regarding the subject property legally described as the Shops at West End as Resolution No. 08-057 of the St. Louis Park City Council dated April 28, 2008 which contained conditions applicable to said property. Whereas, a minor amendment to the final PUD was approved regarding the subject property pursuant to Resolution No. 08-128 of the St. Louis Park City Council dated October 6, 2008 which contained conditions applicable to said property. Whereas, a minor amendment to the final PUD was approved regarding the subject property pursuant to Resolution No. 09-040 of the St. Louis Park City Council dated March 2, 2009 which contained conditions applicable to said property. Whereas, a minor amendment to the final PUD was approved regarding the subject property pursuant to Resolution No. 09-064 of the St. Louis Park City Council dated May 4, 2009 which contained conditions applicable to said property. Whereas, a major amendment to the final PUD was approved regarding the subject property pursuant to Resolution No. 10-093 of the St. Louis Park City Council dated September 7, 2010 which contained conditions applicable to said property. Whereas, a minor amendment to the final PUD was approved regarding the subject property pursuant to Resolution 11-016 of the St. Louis Park City Council dated January 18, 2011 which contained conditions applicable to said property. Whereas, a major amendment to the final PUD was approved regarding the subject property pursuant to Resolution 13-123 of the St. Louis Park City Council dated August 19, 2013, which contained conditions applicable to said property. Whereas, a major amendment to the final PUD was approved regarding the subject property pursuant to Resolution 13-151 of the St. Louis Park City Council dated October 7, 2013, which contained conditions applicable to said property. Whereas, a major amendment to the final PUD was approved regarding the subject property pursuant to Resolution 19-011 of the St. Louis Park City Council dated January 22, 2019, which contained conditions applicable to said property. City council meeting of December 18, 2023 (Item No. 7c) Page 6 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 Whereas, a major amendment to the final PUD was approved regarding the subject property pursuant to Resolution 22-034 of the St. Louis Park City Council dated February 22, 2022, which contained conditions applicable to said property. Whereas, it is the intent of this resolution to continue and restate the conditions of the final PUD granted by Resolution Nos. 08-057, 08-128, 09-040, 09-064, 10-093, 11-016, 13-123, 13-151, 19-011, and 22-034 to amend and consolidate all conditions applicable to the subject property in this resolution. Now therefore be it resolved that Resolution Nos. 08-057, 08-128, 09-040, 09-064, 10- 093, 11-016, 13-123, 13-151, 19-011, and 22-034 are hereby restated and amended by this resolution which continues and amends a final planned unit development to the subject property at the location described above based on the following conditions: 1. The uses on the subject property are limited to retail, service, restaurants, hotel, theater, indoor motor vehicle display when occurring in a commercial storefront only, medical and dental office, animal handling limited, and office. The following uses are not allowed: in-vehicle sales and service (drive-through); motor fuel stations; motor vehicle sales, service and repair; car washes; currency exchanges; check cashing; pay loan agencies; pawnshops; sexually-oriented businesses, tattoo shops; gun shops (not excluding a sporting goods store that sells, as part of its sporting goods inventory, guns and ammunition). 2. The final site plan and façade design of the large retail building on Lot 4, Block 1, THE SHOPS AT WEST END (proposed grocery store) shall require a PUD minor amendment with review by the planning commission. 3. The hotel site plans for Lot 3, Block 1, THE SHOPS AT WEST END shall require a PUD major amendment if any variances are requested. If the plan does not require a variance, the application may be processed as a PUD minor amendment and include review and recommendation of the planning commission. 4. The total gross floor area of restaurants shall be restricted to the limitations established by the West End parking study as amended from time-to-time on the combination of Lot 4, Block 1 and Lot 2, Block 2, THE SHOPS AT WEST END, Hennepin County, Minnesota . Amendments to the West End parking study may be processed administratively, however, at the discretion of the zoning administrator, amendments may be processed as a minor or major amendment. 5. The total number of seats in the movie theater shall be limited to 2,700 seats. 6. The portion of the five-level retail parking structure (building 35) that is within 20 feet of the Gamble Drive right-of-way shall have a minimum of 60% Class I exterior materials. The developer shall amend the official exhibits to comply with this requirement. 7. The community development director and zoning administrator or their designee(s) may approve individual tenant/building façade designs administratively or refer proposals to the planning commission and city council for consideration, as city staff deems necessary. City council meeting of December 18, 2023 (Item No. 7c) Page 7 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 8. The sign plan is subject to community development director and zoning administrator review and approval. Sign permits are required. 9. Access to the truck courts on the west retail block from Park Place Boulevard shall be limited to between 8 p.m. and 10 a.m. 10. The access will be controlled from Park Place Boulevard to the truck courts on the west retail block using a mechanical bollard system and directional signs in the Park Place Boulevard right-of-way. The developer shall enter into a planning development contract with the City of St. Louis Park that addresses this private use of public land. 11. The developer shall maintain horizontal separation from landscaping (i.e. boulevard trees) of at least three feet from shallow underground utilities (i .e. fiber optic cable, private utilities, etc.), and eight feet horizontal separation from deeper underground utilities (i.e. water, sanitary sewer, etc.). 12. Tree plantings and street furnishings shall be located in a manner that maintains at least six feet wide clearance space in all boulevard/sidewalk areas for snow removal. 13. The developer shall amend the official exhibits (The Shops at West End Design Guidelines) to incorporate the following: a. At pedestrian level, facades on buildings 12, 22, 23, 24, 31, 32 and 33 shall be primarily transparent: 1. At least 60% of facades between three feet and seven feet above the first floor elevation shall consist of pedestrian entrances, display windows or windows affording views into retail, offices, gallery or lobby space. The West End Tenant Design Guidelines shall illustrate the portions of the above referenced buildings subject to this requirement. 2. Visibility into the space shall be maintained for a minimum of three feet, but display of merchandise in this space is allowed. Display windows may be used to meet the transparency requirement. b. At pedestrian level (between three feet and seven feet above the first-floor elevation), building facades facing public streets, West End Boulevard, or the pedestrian arcade shall have no more than 10% of the total window area be glass block, mirrored, spandrel, frosted or other opaque glass. c. No more than 10% of the total window area of any building façade shall have signs applied to the inside or outside surface of the window. The remaining 90% of window and door area shall be clear or slightly tinted glass that allows views into and out of the building. d. Tenants in buildings 12, 22, 24, 31, and 33 that are located adjacent to public and/or private street intersections shall locate entrances at or near the adjacent building corner. City council meeting of December 18, 2023 (Item No. 7c) Page 8 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 e. Awnings and canopies shall be made of heavy canvas, fabric, metal and/or glass. Plastic and vinyl awnings are prohibited. Backlit awnings and canopies are prohibited. 14. A business may use the sidewalk within five feet of its building wall for the following purposes, provided the business maintains a clear walkway that is at least eight feet wide along Park Place Boulevard and at least six feet wide along other streets, and provided the uses do not occur in the public right-of-way unless the city approves an encroachment agreement in accordance with the city’s temporary private use of public land policy: a. Display of merchandise, not to exceed 100 square feet per business; b. Benches, planters, ornaments, art; c. Signs permitted in the zoning ordinance; and d. Outdoor dining. Outdoor dining areas may extend farther than five -feet from the building wall, provided tables and chairs or other structures maintain the required horizontal clearance for a walkway between the dining area and other obstructions, such as trees, poles, and curbs. 15. The developer shall provide easements and $285,000 for public art to help satisfy the alternative landscaping requirements. The city and the developer will develop a public process to select the artists, artworks and locations. 16. The developer shall amend official exhibits (utility plans) to provide separate domestic and fire water service lines to the buildings. 17. The developer shall work with the police department on the design and construction of the police substation area in building 31. In particular, the plan shall provide windows and doorway on the northeast building elevation along the alley. 18. The developer shall redesign the public restroom entrances in the building 31 atrium to have open entrances (no exterior doors to the atrium), similar to typical stadium/movie theater restroom entrances, as requested by the police department. 19. At City of St. Louis Park’s sole discretion, and upon conferring with the property owner, the property owner shall change the designation of West End Boulevard on -street parking stalls from short-term customer parking to “pick-up/drop-off only” (or similar restriction). 20. The applicant shall be responsible to obtain all permits from the city and other agencies. 21. The property owner(s) shall be responsible for obtaining a city license for all parking structures. 22. Tenants shall be responsible for obtaining all city licenses (i.e. grocery store, hotel, etc.). City council meeting of December 18, 2023 (Item No. 7c) Page 9 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 23. The property owner shall prepare and effectuate traffic management plans that reduce traffic congestion. The property owner submitted a plan for review and approval of the by the St. Louis Park and Golden Valley I-394 Joint Task Force. The property owner shall implement The Traffic Management Plan (TMP) approved by the Travel Demand Management Joint Task Force prior to city issuance of a certificate of occupancy. 24. The city and developer shall set up a monitoring program to determine actual sanitary sewer flows. Following each phase of the development, sewer flows will be analyzed to determine if sewer flows exceed Metropolitan Council limits described in the Metropolitan Council’s letter to the City of St. Louis Pa rk dated December 14, 2006. If sanitary sewer flows exceed said limits, the developer shall submit a final design of a privately owned, privately maintained, temporary sanitary sewer peak flow detention facilities for Metropolitan Council Environmental Services (MCES) and City of St. Louis Park approval. The developer shall construct the said approved system and put it into operation in the timeframe designated by MCES and City of St. Louis Park, and prior to city issuance of building permits for additional phases. 25. The developer shall abide by the city’s water use restrictions and follow State of Minnesota requirements for low-flow structures. After each phase of the redevelopment, water usage shall be monitored. If monitoring shows use exceeds 90% of peak capacity, the developer shall cooperate with the city to identify citywide and project-specific measures to increase water treatment capacity and reduce consumption prior to city issuance of building permits. 26. The north office tower and operations center at 1551 Utica Avenue (Lot 1, Block 2, THE SHOPS AT WEST END) shall be developed, used and maintained in accordance with the official exhibits from zoning application 86-14-SP and 07-61-PUD. If there is any conflict between the official exhibits, 07-61-PUD shall supersede. The following 86-14-SP official exhibits are incorporated by reference herein: Exhibit A – Site Plan and Lighting Plan; Exhibit B – Grading Plan; Exhibit C – Utilities Plan; Exhibit D – Landscape Plan; Exhibit E – Building Elevations; Exhibit F – Basement Floor Level Plan; Exhibit G – Ground Floor Plan; Exhibit H – Second Floor Plan; and Exhibit I – Typical Floor Plan, as modified by city development on March 13, 1986. (The floor plans are included to show general use and configurations only.) 27. The following conditions shall apply to the south office tower at 1600 Utica Avenue (Lot 1, Block 2, THE SHOPS AT WEST END): a. The site shall be developed, used and maintained in accordance with the official exhibits from zoning application 98-42-PUD and 07-61-PUD. If there is any conflict between the official exhibits, 07-61-PUD shall supersede. The following 98-42-PUD official exhibits are incorporated by reference herein: Exhibit A – Site Plan, Exhibit B – Landscape Plan, Exhibit C – Existing Survey, Exhibit D – Grading, Drainage and Erosion Control Plan, Exhibit E – Utility Plan, Exhibit F – East Elevations, Exhibit G – North Elevation, Exhibit H – South Elevation, Exhibit I – West Elevations, Exhibit J – West Elevation - Parking Ramp, and Exhibit K – Parking Ramp elevation (south). City council meeting of December 18, 2023 (Item No. 7c) Page 10 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 b. Parking ramp layouts and site plan shall provide designation of at least 20 bicycle racks and at least 20 carpool spaces in convenient locations. c. A covenant shall be recorded on the property which specifies that a minimum of 4,000 square feet of the atrium shall remain in perpetuity as indoor open space and available for general “public” use. Said interior atrium space shall be designed in an aesthetically pleasing and usable way, with landscaping, benches, and the like. A detailed atrium plan shall be submitted and approved by the community development director and the zoning administrator. d. The following modifications to ordinance requirements are re-authorized: 1. The floor area ratio for the PUD can be 1.57. 2. The setbacks on Gamble Drive for the parking ramp can be 17 feet. 3. Reduced office building setback along Gamble Drive of 96 feet. 28. Prior to issuance of building permits, the following conditions shall be met: a. A planning development contract shall be executed between the developer and city that addresses, at a minimum: 1. Conditions of PUD approval as applicable or appropriate; 2. Public use of gathering spaces in the development; 3. Private use of public land 4. Maintenance agreement and/or special service district; 5. Surety in the form of an irrevocable letter of credit for redeveloper public improvements and landscaping; and 6. Administrative approval of modifications to the PUD plans. The mayor and city manager are authorized to execute said planning development contract. b. The developer shall provide a surety to the City of St. Louis Park in the form of an irrevocable letter of credit for 1.10 times the estimated redeveloper public improvements costs (as defined in the redevelopment agreement), and 1.25 times the estimated landscaping costs. c. The property owner shall pay the applicable traffic management administrative fee. 1. The portion of the shopping center subject to this fee is on Lot 2, Block 2, THE SHOPS AT WEST END. The total fee of $34,633 shall be paid to the City of St. Louis Park prior to city issuance of building permits. City council meeting of December 18, 2023 (Item No. 7c) Page 11 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 2. Subsequent phases of the PUD (future hotel and office towers) shall pay fifty percent of the fee upon submission of a final PUD Amendment application, and the remaining fifty percent of the fee upon submission of a building permit application, for each respective development phase. 29. The planned unit development shall be amended on October 6, 2008 to incorporate all of the preceding conditions and add the following conditions relating to Lot 4, Block 1, THE SHOPS AT WEST END, Hennepin County, Minnesota: a. The site shall be developed, used and maintained in accordance with the official exhibits from zoning application 08-32-PUD, including Exhibits C4B-Site Layout Plan North, C8A-Utility Plan, C10B-Landscape Street Plan, A11101-Building 11 Overall Plan, A11111-Building 11 Level 1 Area 1, A111112-Building 11 Level 1 Area 2, A11401-Building 11 Exterior Elevations, such documents incorporated by reference herein. b. Overnight cart storage shall be inside the building. c. The developer shall continue to work with city staff through a public process to select public art and the complete plaza design. d. The developer shall submit a site plan and programming plan for the plaza area to the city for review and approval by the zoning administrator. e. The building proposal includes graphic art panels in order to enhance the appearance of the building and pedestrian environment. The developer shall submit plans for the graphics on the backlit translucent wall-mounted panels for review and approval by the zoning administrator. The panels and/or graphics shall be changed from time to time and at least biennially. The panel may include any mosaic, mural, painting or graphic art or combination thereof which is professionally applied to the panel that does not contain any brand name, product name, letters of the alphabet spelling or abbreviating the name of any product, company, profession or business, or any logo, trademark, trade name, or other commercial message (defined as supergraphics in the city sign code and exempt from the sign code provisions). The developer shall allow use of the panels for public art. Proposed public art shall be subject to review and approval by the developer and building tenant(s). f. Assent form and official exhibits must be signed by the applicant (or applicant and owner if applicant is different from owner) prior to issuance of a building permit. g. The sign plan is subject to community development director and zoning administrator review and approval. Sign permits are required. h. Approval of building permits, which may impose additional requirements. i. A planning development contract between the developer and city shall be amended to address, at a minimum: City council meeting of December 18, 2023 (Item No. 7c) Page 12 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 1. Amended conditions of PUD approval as applicable or appropriate; 2. Public use of the plaza gathering space; 3. Temporary uses of the plaza; and 4. Administrative approval of modifications to the PUD plans. 30. The planned unit development shall be amended on May 4, 2009 to incorporate all of the preceding conditions and add the following conditions relating to Lot 4, Block 1 and Lot 2, Block 2, THE SHOPS AT WEST END, Hennepin County, Minnesota: a. The site shall be developed, used and maintained in accordance with the official exhibits from zoning application 09-07-VAR and 09-08-PUD relating to the Shops at West End Sign Plan, such documents incorporated by reference herein. 31. The planned unit development shall be amended on September 7, 2010 to incorporate all of the preceding conditions and add the following conditions relating to Lot 3, Block 1, THE SHOPS AT WEST END, Hennepin County, Minnesota: a. The PUD major amendment is approved for the development of a six-story, 120- unit apartment building with structured parking to be developed at 5310 16 th Street W, with five off-site parking stalls and 3,136 square feet of the designed outdoor recreation area provided off-site. b. The following PUD modifications, in addition to modifications previously authorized for the overall Shops at West End PUD: 1. Floor area ratio of 3.24. 2. Housing density of 112.6 units per acre. c. The site shall be developed, used and maintained in accordance with the official exhibits from zoning applications 10-23-PUD and 10-25-VAR relating to a shadow variance, including Exhibits A100 Site Plan (revised 01/10/2011), AB101 Lower Level Garage Plan (revised 01/10/2011), A101 First Floor Plan (revised 01/10/2011), A102 Second Floor Plan (revised 01/10/2011), A103 Floors 3-6 Typical Floor Plan (revised 01/10/2011), A400 Exterior Elevations (revised 01/10/2011), A401 Exterior Elevations (revised 01/10/2011), L100 Landscape Plan (revised 01/10/2011), such documents incorporated by reference herein. d. The five (5) proposed off-site parking stalls shall be protected by an irrevocable covenant in a form approved by the city attorney. A certified copy of the recorded document shall be provided to the zoning administrator within 60 days after approval. e. Prior to starting any site work, the following conditions shall be met: 1. The owner/applicant shall sign an assent form and the official exhibits. City council meeting of December 18, 2023 (Item No. 7c) Page 13 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 2. All necessary permits must be obtained. 3. A preconstruction meeting shall be held with the appropriate development, construction and city representatives. f. Prior to the issuance of a building permit, the following conditions shall be met: 1. Plans shall be reviewed by the city engineer and zoning administrator to ensure that all proposed utilities, public access points and construction documents conform to the requirements of the city code of ordinances and city policies. 2. The applicant shall pay park dedication and trail dedication fees. 3. To ensure construction of the landscaping and the cleaning of public streets during construction, a financial guarantee shall be provided in the amount of 125% of the cost of the landscaping materials. The performance guarantee shall be in the form of cash escrow or letter of credit. The financial guarantee will be refunded upon project completion, however, a 25% will be retained for one year aft er installation to ensure the plants have survived the warranty period. 4. The planned installation of any mechanical equipment shall include means to ensure it is fully screened from off-site view. 5. The proposed off-site parking facilities and shared parking facilities shall be protected by an irrevocable covenant in a form approved by the city attorney. The applicant shall submit a certified copy of the recorded document to the zoning administrator. g. The developer shall comply with the following conditions during construction: 1. All city noise ordinances shall be complied with, including that there be no construction activity between the hours of 10 p.m. and 7 a.m. 2. The applicant shall pay park dedication and trail dedication fees. 3. The site shall be kept free of dust and debris that could blow onto neighborhood properties. 4. Public streets shall be maintained free of dirt and shall be cleaned as necessary. 5. The city shall be contacted a minimum of 72 hours prior to any work in a public street. Work in a public street shall take place only upon the determination by the director of public works that appropriate safety measures have been taken to ensure motorist and pedestrian safety. h. Prior to the issuance of any temporary or permanent occupancy permit the following shall be completed: City council meeting of December 18, 2023 (Item No. 7c) Page 14 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 1. Fire lanes shall be signed and striped in accordance with the signed Official Exhibits. 2. Landscaping and irrigation shall be in accordance with the signed official exhibits. 3. Exterior building improvements shall be completed in accordance with the signed official exhibits and approved materials and colors. 4. All mechanical equipment shall be installed and it shall be demonstrated that all such equipment is fully screened from off-site views. To protect the health, safety and welfare of the community, the painting of mechanical equipment shall not be considered screening. i. No outside storage is permitted. Incidental outside storage shall be removed within 48 hours. 32. The planned unit development shall be amended on January 18, 2011 to incorporate all of the preceding conditions with amendments to conditions relating to Lot 3, Block 1, THE SHOPS AT WEST END, Hennepin County, Minnesota. 33. The planned unit development shall be amended on August 19, 2013, to incorporate all of the preceding conditions with an amendment to condition #4 relating to the total building area of restaurants allowed on the combination of Lot 4, Block 1 and Lot 2, Block 2, THE SHOPS AT WEST END, Hennepin County, Minnesota. a. Prior to issuance of building permits, the applicant and property owner shall sign the official exhibits. 34. The planned unit development shall be amended on October 7, 2013, to incorporate all of the preceding conditions and add the following conditions relating Lot 1, Block 1, THE SHOPS AT WEST END, Hennepin County, Minnesota. a. The PUD major amendment is approved for the development of a six-story, 158- unit multiple-family dwelling with structured parking at 5245 Wayzata Boulevard. b. PUD modifications are approved to allow: 1. Floor area ratio of 2.5. 2. Housing density of 99 units per acre. 3. Front (north) yard of 14.9 feet. 4. Side (west) yard of 29.2 feet 5. Side (east) yard of 11.3 feet. City council meeting of December 18, 2023 (Item No. 7c) Page 15 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 c. The site shall be developed, used and maintained in accordance with the official exhibits from zoning application 13-31-PUD, such documents incorporated by reference herein. d. The developer shall comply with the conditions outlined in the city engineering memorandum dated September 13, 2013. e. Agreement for public access across “New Street” shall be protected by an irrevocable covenant in a form approved by the city attorney. f. A public sidewalk easement will be required over the proposed sidewalk along Wayzata Boulevard. g. Ingress/egress agreements across New Street and the “hammerhead” maneuvering space between Lot 1 and Lot 3, Block 1, THE SHOPS AT WEST END, shall be protected by an irrevocable covenant in a form approved by the city attorney. h. The development specifications shall require installation and maintenance of a high-speed overhead door to reduce the wait time for vehicles entering the garage. i. No outside storage is permitted. Incidental outside storage shall be removed within 48 hours. j. Prior to starting any site work, the following conditions shall be met: 1. The owner/applicant shall sign an assent form and the official exhibits. 2. The agreements required by conditions 36e. and 36g. shall be executed. 3. Developer shall enter into a development agreement with the city that addresses the conditions of approval and performance guarantees for public and exterior site improvements. The mayor and city manager are authorized to execute said planning development contract. 4. All necessary permits must be obtained. 5. A preconstruction meeting shall be held with the appropriate development, construction and city representatives. k. Prior to the issuance of a building permit, the following conditions shall be met: 1. Plans shall be reviewed by the city engineer and zoning administrator to ensure that all proposed utilities, public access points and construction documents conform to the requirements of the city code of ordinances and city policies. 2. Tree replacement fees shall be paid. City council meeting of December 18, 2023 (Item No. 7c) Page 16 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 3. Park dedication and trail dedication fees shall be paid. Fees will be based on the fee schedule at the time the building permits are issued and will be pro-rated based on any previous fees paid based on the commercial use of the property. 4. Developer shall enter into a development agreement with the city that addressed the conditions of approval and performance guarantees for public and exterior site improvements. l. The developer shall comply with the following conditions during construction: 1. All city noise ordinances shall be complied with, including that there be no construction activity between the hours of 10 p.m. and 7 a.m. weekdays, and 10 p.m. and 9 a.m. on weekends and holidays. 2. The site shall be kept free of dust and debris that could blow onto neighborhood properties. 3. Public streets shall be maintained free of dirt and shall be cleaned as necessary. 4. The city shall be contacted a minimum of 72 hours prior to any work in a public street. Work in a public street shall take place only upon the determination by the director of public works that appropriate safety measures have been taken to ensure motorist and pedestrian safety. 5. Pedestrian access along all public streets shall be maintained throughout the duration of construction in accordance with ADA requirements. This will include signing, striping, detour signing, and any other measures needed to assure compliance and general public safety. m. Prior to the issuance of any permanent occupan cy permit the following shall be completed: 1. Fire lanes shall be signed and striped as required by the fire marshal. 2. Landscaping and irrigation shall be in accordance with the signed official exhibits. 3. Exterior building improvements shall be completed in accordance with the signed official exhibits and approved materials and colors. 4. All mechanical equipment shall be installed and it shall be demonstrated that all such equipment is fully screened from off-site views. 35. The planned unit development shall be amended on February 22, 2022, to incorporate all of the preceding conditions with the amendments as shown to conditions sections 1, 4 and 6 in Resolution 22-034. City council meeting of December 18, 2023 (Item No. 7c) Page 17 Title: Resolution approving Shops at West End PUD major amendment – Ward 4 36. The planned unit development shall be amended on December 18, 2023, to incorporate all of the preceding conditions with the amendment as shown to condition 1. The city clerk is instructed to record certified copies of this resolution in the office of the Hennepin County register of deeds or registrar of titles as the case may be. Reviewed for administration: Adopted by the city council December 18, 2023 Kim Keller, city manager Jake Spano, mayor Attest: Melissa Kennedy, city clerk