HomeMy WebLinkAbout2023/12/04 - ADMIN - Minutes - City Council - Study Session Official 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.
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.
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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 components. 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.
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.
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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 exceedingly 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
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