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HomeMy WebLinkAbout2024/04/24 - ADMIN - Agenda Packets - City Council - Study SessionAGENDA APRIL 24, 2024 6:30 p.m. City council study session - Community Room Discussion items 1. Three Rivers Canadian Pacific (CP) regional rail trail update 2. Engineering projects not in 10-year capital plan Written reports 3. Quarterly development update – 2nd quarter 2024 4. Second amendment to the preliminary development agreement with Greater Minnesota Housing Corporation – Ward 1 5. 2023 housing activity report 6. Pre-eviction notice ordinance Members of the public can attend St. Louis Park Economic Development Authority and city council meetings in person. Official minutes of meetings are available on the city website once approved. Watch St. Louis Park Economic Development Authority or regular city council meetings live at bit.ly/watchslpcouncil or at www.parktv.org, or on local cable (Comcast SD channel 14/HD channel 798). 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 meeting. City council study sessions are not broadcast. The council chambers are 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: Study session Meeting date: April 24, 2024 Discussion item: 1 Executive summary Title: Three Rivers Canadian Pacific (CP) regional rail trail update Recommended action: No formal action at this time Policy consideration: There are two policy questions for council consideration: •Does the council support a north-south regional trail through St. Louis Park? o If yes, does the council support the trail route as recommended by Three Rivers Park District? o If no, does the council need additional information to help with this decision? Summary: Three Rivers Park District has a long-range plan to create a 21-mile north-south regional trail that extends from Crystal to Bloomington called the Canadian Pacific rail regional trail. Three Rivers Park District staff began identifying preliminary routes through St. Louis Park in May of 2023 and has identified route SLP4 as their preferred route. Route SLP4 was brought to the council on Nov. 13, 2023, for a public testimony. The intent of the meeting was to gain council support for the recommended route through St. Louis Park. Three Rivers could then prepare a long-range plan document that focused on a recommended route through St. Louis Park and complete a federal solicitation funding application that was due in December 2023. Due to questions from the community and council, Three Rivers did not move forward with requesting council support or the funding application. Instead, Three Rivers and city staff provided a written report to council on Dec. 12, 2023 to address the questions presented and suggested that this topic be discussed during the connected infrastructure study session series prior to requesting council action on Three Rivers Park District's recommended route. At this time, there is no proposed date for the construction of this trail. To help inform the policy level questions, Three Rivers will provide a presentation that starts with the history of the long-range planning study for the CP Rail Regional trail, provide an overview of the process and study completed in the St. Louis Park segment and findings that support their recommendation of route SLP4. Financial or budget considerations: There are no budget considerations for the city for the recommended route. Three Rivers Park District is funding the long-range plan and would fully fund the construction of the recommended route. 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 Dec. 12, 2023 written report Route map in St. Louis Park and Golden Valley Three Rivers matrix Prepared by: Jack Sullivan, engineering project manager Reviewed by: Debra Heiser, engineering director Approved by: Kim Keller, city manager Study session meeting of April 24, 2024 (Item No. 1) Page 2 Title: Three Rivers Canadian Pacific (CP) regional rail trail update Discussion Background: Three Rivers Park District's Canadian Pacific rail regional trail is a planned 21-mile regional trail corridor that traverses six communities in Hennepin County – Bloomington, Edina, St. Louis Park, Golden Valley, New Hope and Crystal. Three Rivers Park District is completing a long-range planning study for the CP Rail Regional Trail Segment C in St. Louis Park and Golden Valley. This segment will connect the Cedar Lake Trail in St. Louis Park to the Luce Line Trail in Golden Valley. The trail fills a critical north-south gap in the regional trail system and provides a highly desirable recreation amenity to adjacent communities and the greater region. The regional trail corridor was originally centered along the CP rail line; however, this is not feasible for much of the corridor. A north-south regional trail through St. Louis Park is identified in the city's 2040 Comprehensive Plan, the Active Living Sidewalk and Trail Plan, and complements the Connect the Park implementation plan. Three Rivers Park District staff began identifying preliminary routes through St. Louis Park in May 2023. Through public engagement and analysis efforts, Three Rivers determined that route SLP4 best meets their goal of providing the safest trail facility that services the most people throughout the community. Route SLP4 starts at the trail bridge over Highway 394 (near Hampshire Avenue) and runs along Wayzata Boulevard, Dakota Avenue, 18th Street, Edgewood Avenue, Dakota Avenue and Wooddale Avenue to connect to the Cedar Lake Regional Trail at the Wooddale Light Rail station. More information on this route can be found on the attached route identification map. Route SLP4 was brought to the council on Nov. 13, 2023, for public comment. The intent of the meeting was to gain council support for the preferred route through St. Louis Park so Three Rivers could: •Begin to prepare a long-range plan document focused on a recommended route through St. Louis Park. •Complete a federal solicitation funding application for possible construction of the recommended route in 2029. Three Rivers did not move forward with either of these items due to the questions from the community and council. Instead, Three Rivers and city staff provided a written report on Dec. 12, 2023 that addressed the questions and recommended that this topic be brought back to the city council during the connected infrastructure study session series for a more in-depth policy discussion prior to acting on Three Rivers Park District's recommended route. Three Rivers completed a similar public engagement and analysis process for the identified trail options in Golden Valley. The Golden Valley city council selected route GV2 as their preferred route through their community but acknowledged modifications of the route pending the outcome of the recommended route in St. Louis Park. More information on the Golden Valley section can be found on the attached route identification map. Present considerations: Three Rivers is currently in the planning process with a desire to obtain municipal support for a preferred route through the city. Once the preferred route is identified, Three Rivers will prepare a long-range plan document, which the city would be asked to formally support via resolution. This will be a long-range, high-level plan, not a detailed Study session meeting of April 24, 2024 (Item No. 1) Page 3 Title: Three Rivers Canadian Pacific (CP) regional rail trail update engineered design. Final design and construction are dependent on funding, so there is no schedule at this time. The connected infrastructure study session series provides Three Rivers an opportunity to share their process, analysis, feedback and recommended route with the council. Three Rivers Park District is asking for feedback from the city council on the following policy questions: • Does the council support a north-south regional trail through St. Louis Park? o If yes, does the council support the trail route as recommended by Three Rivers Park District? o If no, does the council need additional information to help with this decision? To help inform the policy-level questions, Three Rivers will be presenting an in-depth review of the long-range planning study for the CP Rail Regional Trail Segment in St. Louis Park that includes the following: • CP Rail Regional Trail history and current planning efforts • Preliminary route identification • Community engagement efforts • Summary of community feedback • Route selection criteria • matrix of selection criteria • cross sections • address public feedback for each route • Three Rivers recommended route Three Rivers completed a matrix to compare the two routes (SLP1 and SLP4) discussed during the council meeting on Nov. 13, 2023. The matrix consists of three main evaluation areas: Impacts, Opportunities and Administrative. The attached matrix provides the evaluation criteria in each of these areas that Three Rivers Park District used to recommend SLP4 as their preferred route. Next steps: Three Rivers would like to complete the long planning study for the CP Rail Regional Trail segment in St. Louis Park and Golden Valley in 2024. However, the discussion during this study session will help to inform the next steps and timeline for Three Rivers Park District's efforts. -__..,✓ -' ) J t' 0 �d: (IJ l>==3-t ..ti: (il JD Q.) -a C: Q.)><( □ Olak Hill --+Park --r.\· • • J �11�1�10F1=;;;tr=eet===: 1 D Lions Park �--( 12 "Tl 0.....c.. 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If CD Q)00El,I -Cl)G: •--IDQ) .. ��i l> liD c;i::· "· /1 "ID EE • �.' ® \lJ I¾+-(tl 00 ( .!i:J :) CD 00,I\lJm ct (IJ i ..ti: Q.O • (IJIi ThreeRivers ,·ooLE DESIGN PARK DISTRICT Golden Valley Routes GV1 GV2 GV3 GV4 St. Louis Park Routes SLP1 SLP2 SLP3 SLP4 Existing TRPD Trail ( i C) Planned TRPD Trail Existing Trail Existing Bikeway -------Planned Trail -------Planned Bikeway-r -_. City Boundar y Park • • • • • Railroad Route Transition Point *Star t/End Point School Southwest LRT Station •Southwest LRT Line N 0 0.2 0.4 mi Study session meeting of April 24, 2024 (Item No. 1) Title: Three Rivers Canadian Pacific (CP) regional rail trail update Page 4 CP Rail Regional Trail: Route comparison matrix April 24, 2024 St. Louis Park City Council study session To more readily understand the complexities of the two primary routes under consideration, Three Rivers staff prepared a comparison matrix highlighting the differences and similarities. The two routes were further broken down into north, central, and south segments, as shown on the map to the right, to better document the nuances of the different areas along the two route options. The level of detail included in the matrix is very high-level and intended to be used for comparison purposes only when evaluating and determining a Three Rivers recommended route through the City. SLP1 SLP4 Central Segments North Segments South Segments Study session meeting of April 24, 2024 (Item No. 1) Title: Three Rivers Canadian Pacific (CP) regional rail trail update Page 5 SLP1: Pennsylvania Avenue, W 22nd Street, and Louisiana Avenue SLP4: Florida Avenue, Wayzata Blvd, Dakota Avenue, Otten Pond/ Hampshire Park, Edgewood Avenue, and Dakota Avenue Impact considerations Parking and traffic impacts North: • No impacts Central*: • Parking would be reduced to one side of the street South*: • No existing parking; however, parking could be added • Assumes a road design that reduces from an existing 4-lane road to 2 lanes All: • Higher average daily traffic that ranges from 9,800 to 18,100; • A main vehicular route between I-394 and TH 7 * Additional detailed study of the Central and South segments is required to understand the parking and traffic needs of Louisiana Avenue. North: • Parking reduced to one side of street along Franklin and 18th Avenues Central: • If all existing trees remain: parking is reduced to one side • If trees are removed on one side: no impact South: • No impact to parking All: • Comparatively lower average daily traffic that ranges from 1,800 to 7,200. Tree impacts North: • Possible minimal impacts along West 22nd Street Central: • No impact (no existing trees). Plant trees in new boulevard adjacent to trail. South: • No impact along west side of Louisiana Avenue (no existing trees). No impact to trees in Louisiana Oaks Park. • Trees along the 2 blocks of the east side of Louisiana Avenue south of Minnetonka Boulevard may be impacted depending upon final design. • Plant trees in new boulevard adjacent to trail. North: • Along east side of Otten Pond in Hampshire Park • Several trees will be removed along 18th Avenue Central: • If parking is eliminated on one side: no impact • If parking is kept on both sides: approximately 33 trees will be removed, of which 12 are Green Ash. Of these 12 Green Ash to be removed, 6 have been previously treated for Emerald Ash Borer and 6 are slated to be removed in 2024, by the city. New trees would be planted in the boulevard adjacent to the trail. South: • Possibly 2 trees removed along Wooddale, trees planted in the boulevard adjacent to the trail Study session meeting of April 24, 2024 (Item No. 1) Title: Three Rivers Canadian Pacific (CP) regional rail trail update Page 6 Right of way North: • No right of way is needed Central: • Right of way is needed including 2 ft along the regular roadway and up to 19 ft at intersections where turn lanes are likely South: • No right of way is needed All: • Temporary construction easements are likely All: • No right of way is needed • Temporary construction easements are likely Opportunity considerations Connections (local & regional) No direct connection to North Cedar Lake Regional Trail Connects to: • Schools: St. Louis Park Middle School • Parks: Lamplighter Park, Northside Park, Louisiana Oaks Park • Retail Nodes: Louisiana Avenue/ Cedar Lake Rd and Louisiana Avenue/ Walker Street • LRT: Louisiana Avenue Station Direct connection to North Cedar Lake Regional Trail Connects to: • Community Centers: Central Community Center • Schools: Peter Hobart Elementary, St. Louis Park High School • Parks: Hampshire Park, Otten Pond, Dakota Park • Retail Nodes: 36th/Wooddale (1 block from LRT), Minnetonka Boulevard/ Dakota Avenue • LRT: Wooddale LRT Station Use existing multi use trail and bridge Infrastructure • Trail in Lamplighter Park • Trail in Northside Park • Trail from 32nd Street through Hwy 7 roundabouts to connect to the South Cedar Lake Regional Trail. • Dakota-Edgewood Bridge • Trail in Otten Pond Park • Trail along Edgewood Avenue • Trail in Dakota Park Public feedback • Limited support for this route. Of the 4 route options, only 20% of people at SLP engagements preferred SLP1 • Connection to parks, trails, schools, retail and LRT are important • Central and South Segments were viewed as too busy and dangerous, especially the bridge over BNSF RR • Some felt that Louisiana Avenue (Central and South Segments) should be re-designed/improved because Dakota Avenue already has bicycle/pedestrian improvements • Very strong support of this route. Of the 4 route options, 53% of people at SLP engagements preferred SLP4 • Entire route viewed as a less busy, safer option • Desire to connect to and use the existing Dakota-Edgewood Bridge over BNSF RR • Connections to parks, trails, schools, retail and LRT are important • Central: Residents between 27th St. and Minnetonka Blvd had concerns about potential tree loss, parking loss, congestion during Hobart School pick-up/ drop-off and snow storage • South: Traffic speed and truck traffic Study session meeting of April 24, 2024 (Item No. 1) Title: Three Rivers Canadian Pacific (CP) regional rail trail update Page 7 Equity considerations • Stronger connectivity to areas with higher density of BIPOC, lower income households, and seniors • Connects to areas with higher density of BIPOC, lower income households, and seniors but to a lesser extent Administrative considerations Cost $27+ Million* *A detailed traffic study is required for the Central and South Segments. This estimate is a rough ballpark for comparison purposes only as there are many unknowns until further study is completed. $6-7 Million Funding and timeline • City responsible for over two thirds of cost ($19.4+M) • 15+ years • No cost to the City • 7-12 years Responsible party North: • Three Rivers Central and South: • Predominately the City with Three Rivers as a financial partner All: • Three Rivers Relationship with ‘Connect the Park’ All: • Bikeway facility planned on Louisiana Avenue between Northside Park and Walker Street. (Central and portion of South) Central: • Utilizes city’s trail on Edgewood Avenue and existing Dakota- Edgewood Bridge over BNSF RR, as well as trails in Dakota Park. • Converts share the road bicycle facility to a separated bicycle facility south of Dakota Park. South: • Converts existing on street buffered bike lanes to a separated bicycle facility. Tier in RBTN Yes - Tier 1 corridor Yes - Tier 1 corridor Study session meeting of April 24, 2024 (Item No. 1) Title: Three Rivers Canadian Pacific (CP) regional rail trail update Page 8 Meeting: Study session Meeting date: April 24, 2024 Discussion item: 2 Executive summary Title: Engineering projects not in 10-year capital plan Recommended action: None. The purpose of this discussion is to provide the city council with an overview of engineering projects recently brought to staff that are not included in the 10- year Capital Improvement Plan (CIP). Policy consideration: Which, if any, of the non-mandatory projects in this report does the city council want staff to work on incorporating into the CIP planning process? Summary: The purpose of this discussion is to introduce several potential engineering projects and project types that are not currently budgeted in our 10-year capital plan. These are: Partnership infrastructure projects • MCWD: Minnehaha Greenway – Cedar Lake regional trail connection • MnDOT signal replacements • Hennepin County: Minnetonka Blvd. reconstruction (Phase 2 and 3) City infrastructure projects • Louisiana Avenue reconstruction (BNSF railroad to Walker Street) • Delamination mitigation • Dakota Park Pedestrian Bridge (adjacent to the dog park) This discussion only includes projects that engineering would be responsible for implementing. There are also unprogrammed future needs in other departments that staff continues to research and which will need to be considered in future CIP development. At this time, staff is not providing the council with final recommendations or overall funding plans . Engineering staff's intention is to make the council aware of what opportunities have presented themselves since our last CIP process and provide additional information regarding city infrastructure about which the council and community have inquired. Financial or budget considerations: The city's overall 10-year CIP includes almost $287 million in improvements. The engineering department is responsible for the delivery of almost $200 million in projects, which is about 70% of the total CIP. The forecast for the overall property tax levy assumes funding for the projects already included in the CIP and will require levy increases of an average of 5.5 percent each year without any new projects. Adding projects into the engineering department CIP will require an extensive review of available funding, potential needed additional funding and staff workload to determine if these projects can be delivered. 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 Prepared by: Debra Heiser, engineering director Reviewed by: Jay Hall, public works director Amelia Cruver, finance director Jack Sullivan, engineering project manager Approved by: Kim Keller, city manager Study session meeting of April 24, 2024 (Item No. 2) Page 2 Title: Engineering projects not in 10-year capital plan Discussion Background: Proactively planning for the replacement of infrastructure is essential for our city to thrive and grow. To support this, the city has a Capital Improvement Plan (CIP) that describes the capital improvements and expenditures planned over the next ten (10) years. It is a statement of the city's policies and financial ability to manage infrastructure investment in the community. Engineering oversees the CIP for construction, maintenance and replacement of public infrastructure, including bridges, bikeways, sidewalks, streets, alleys, sanitary sewer, storm sewer, watermain and signal systems. The CIP is reviewed and revised annually with input from public works and community development staff. To plan and coordinate work with other government jurisdictions, the city identifies the years when improvements will be initiated and what funding sources will be used to pay for them. An updated proposed CIP is presented to the city council as part of the budget development process every year. A final CIP for the following year is adopted, along with the annual budget each December. As we head into this year's CIP update process, staff want to share with the council some potential infrastructure projects that are not currently in the 10-year CIP. This discussion is not meant to provide the council with final recommendations or overall funding plans for these projects. It is staff's intent to make the council aware of what opportunities have presented themselves since our last CIP process. Adding projects to the engineering department CIP will require an extensive review of available funding, potential needed additional funding and staff workload to determine if these projects can be delivered. Capital planning is a system that relies heavily on identifying all the needs, prioritizing improvements and making decisions based on infrastructure condition. This ensures that the city will maximize our investment and make public dollars go further. This is the second of four discussions surrounding engineering infrastructure projects. Topics included in this discussion are: Infrastructure project development process An in-depth overview of the engineering portion of the existing 10-year CIP, how it was developed, what is included and who it serves. Engineering projects not in the 10-year capital plan  An overview of engineering infrastructure projects and project types not currently included in the 10-year CIP. Utility risk assessment study review  The findings of the recently completed Utility risk assessment study. Future infrastructure project planning  Discussion of engineering staff's approach to modifying the 10- year CIP based on: • Infrastructure projects not currently in the CIP  • The utility risk assessment study  Study session meeting of April 24, 2024 (Item No. 2) Page 3 Title: Engineering projects not in 10-year capital plan Partnership infrastructure projects: At times, other government jurisdictions' CIPs provide the city opportunities to participate in their projects to make replacing our infrastructure more economical. In addition, our partners may develop plans to install improvements that are consistent with the city's strategic priorities and goals and require some city cost share. Over the last year, city staff have been made aware of the following infrastructure projects that are currently not in our 10-year CIP. These projects are being brought to the city by our partners. What follows is an overview of the projects, timing and a high-level estimate of the cost. Minnehaha Greenway – Cedar Lake regional trail connection Minnehaha Creek Watershed District (MCWD) completed the preliminary design of a trail that connects Meadowbrook Road to the Cedar Lake Regional Trail. This is a continuation of the trail and boardwalk system located along the creek east of Meadowbrook Road . This trail was first identified during the Metropolitan Council's preliminary design of Southwest Light Rail and the station area planning by Hennepin County Community Works over a decade ago. This trail connection is now feasible due to the recent reconstruction of the freight, light rail and regional trail bridges that span Minnehaha Creek. The bridges were widened to allow enough space for a trail to pass under the railroad right of way adjacent to the creek. In 2023, MCWD was awarded $200,000 in funding from Hennepin County's Transit Orientated Development grant program to construct this trail connection (the trail connects St. Louis Park with the 325 Blake Road Redevelopment in the city of Hopkins ) and to complete creek restoration in these areas. These connections from the local system to the regional trail system will benefit the residents of both communities and increase access to transit and the regional trail system. This project is included in the Connect the Park implementation plan; however, until now, there has not been a firm year for construction. Due to this, the project was placed later in our CIP for construction in 2035. The watershed is planning for design of the trail 2024 and construction in 2025. This information was shared with the council on April 10, 2023. The funding source identified for this project is general obligation bonds. Cost: What follows is a summary of the estimated cost share for this project. Source Funding Hennepin County grant $200,000 MCWD $300,000 City of St. Louis Park $300,000 Total $800,000 Study session meeting of April 24, 2024 (Item No. 2) Page 4 Title: Engineering projects not in 10-year capital plan MnDOT signal replacements MnDOT reached out to us last year to let us know that they will be performing signal replacement work at the following locations: • Louisiana Avenue/ I-394 signal replacement (2025) • Cedar Lake Road/ TH169 signal replacement (2026) Operations, maintenance and replacement of these signals are covered by agreements with MnDOT. As laid out in the agreement, the city is obligated to participate in signal replacement costs based on the number of legs of the signal under our jurisdiction. In addition to these signal replacements, MnDOT also shared with us that they will be replacing the Shelard Parkway/ TH169 signals. While these signals are in Plymouth, not St. Louis Park, the project also includes the construction of a trail along the north side of Shelard Parkway on the bridge over TH169. This trail construction will require modifications to the St. Louis Park-owned signal at Shelard Parkway/ Ford Road, which requires the replacement of outdated equipment. While the city is not obligated by an agreement to do this work, it is necessary to make these improvements to ensure that the intersection operates well, and the signal condition warrants upgrades. This project is scheduled for 2025. The trail connection will connect the existing bikeway on Shelard Parkway into Plymouth and Golden Valley, achieving the city's goal of creating bicycle and pedestrian connections to the region. Cost: The funding source for this is MSA funds and the costs are adjusted for inflation. Staff will plan to reflect these costs in this year’s CIP process. Project City cost MnDOT cost Shelard Parkway/ TH169 signal modifications (2025) $50,000 $1,013,000 Louisiana Ave/ I-394 signal replacement (2025) $250,000 $3,400,000 Cedar Lake Road/ TH169 signal replacement (2026) $310,000 $900,000 Total $560,000 $5,313,000 Minnetonka Boulevard reconstruction (Phase 2 and 3) Hennepin County had programmed Minnetonka Boulevard from TH169 to TH100 for a mill and overlay in 2023. After an inventory of work that would be needed to upgrade the roadway corridor to meet ADA requirements and a review of the overall road condition, they determined that the road should instead be reconstructed. In late 2023, county staff reached out to city staff to let us know that they are planning on pursuing the following reconstruction projects. • Phase 2 – From Xylon Avenue to Vernon Avenue – anticipated construction in 2027/2028 • Phase 3 – From Chippewa Road to Aquila Avenue – anticipated construction in 2028/2029 Study session meeting of April 24, 2024 (Item No. 2) Page 5 Title: Engineering projects not in 10-year capital plan Corridor infrastructure construction: When a road is reconstructed, it provides all partners with the opportunity to modernize the corridor. Here are some of the initial considerations for inclusion with these projects: • All ages and abilities bikeway: These segments of Minnetonka Boulevard currently have on-street bike lanes. Reconstruction provides an opportunity to build an all ages and abilities bikeway. Like the Minnetonka Boulevard Phase 1 project, there are several options for the design of the bicycle and pedestrian facilities. They could be cycle -track/ sidewalk or multi-use trail. Building this bicycle and pedestrian infrastructure is consistent with the goals of the city and the county. Specific recommendations for this project will require significant design efforts and public input. • Watermain: The reconstruction of this road provides the city an opportunity to review the underground infrastructure under these road segments. The existing 12- inch watermain in this corridor was installed in 1952. Due to break history and age, staff recommends replacing the watermain and water services within the right of way. The cost to replace the watermain is significantly cheaper during a road reconstruction project as the road replacement cost is already included in the project and will be paid for by Hennepin County. • Relocating overhead utilities underground: As we experienced with the Minnetonka Boulevard Phase 1 construction, these projects provide the city with the opportunity to relocate overhead utilities underground. The cost to underground the utilities varies depending on how many utilities are on the utility poles and the type of facility on the poles. At this time, a high-level estimate for performing this work as a part of Phase s 2 and 3 would be $2,700,000. In addition to the public cost, there is also a reconnection cost for homes or businesses to modify their wiring to accommodate underground service. The cost to do this work would be shared with Hennepin County. Cost: The following cost estimates are adjusted for inflation. Minnetonka Boulevard Phase 2 (Xylon to Vernon) Minnetonka Boulevard Phase 3 (Aquila to TH169) Total anticipated cost by funding source County cost $25,831,000 $20,109,000 $45,940,000.00 City Watermain cost $4,887,500 $2,052,750 $6,940,250.00 Additional known city cost* $5,431,000 $3,006,000 $8,437,000.00 Total project costs $36,149,500 $25,167,750 *This table does not include costs for sanitary sewer or storm sewer construction. Additional inventory and investigation would be needed to determine those costs. City infrastructure projects: In addition, there are infrastructure projects that are not in the engineering 10-year CIP that the council and/or community have asked staff about. Some additional information on these projects is below: Study session meeting of April 24, 2024 (Item No. 2) Page 6 Title: Engineering projects not in 10-year capital plan Dakota Park pedestrian bridge (adjacent to the dog park) A 65-foot-long trail bridge that spanned a stormwater retention area in Dakota Park was removed in the fall of 2023. The main steel truss members were failing and were not repairable. The costs to construct a bridge that could be maintained year-round were significantly higher than rerouting the trail around the south side of the park and exceeded the CIP funding available for the project. Through community engagement and council direction, the bridge was removed and a trail was constructed to connect the playground to the dog park. This trail rerouted the connection around the stormwater retention area. On Oct. 10, 2023, council indicated openness to discussing the project again. Cost: The following cost estimate for rerouting the trail or building a prefabricated steel truss bridge was presented to council during a study session in early 2023. This estimate assumed that the bridge would be immediately reconstructed in this location which would have realized some cost savings due to the larger reconstruction project (which is now complete). Due to this, if a bridge were to be considered for this location in the future, there would be additional costs to remove and replace impacted trails and to remove unsuitable/contaminated soils at the bridge foundations. If the council decides to further explore this project, additional investigation would be needed to understand those costs and how to work the project into a future CIP. Bridge design options Initial estimated installation cost Remove the bridge and trail reroute $192,100 Prefabricated steel truss bridge $545,000 Louisiana Avenue reconstruction (BNSF railroad to Walker Street) Louisiana Avenue, between the bridge over the North Cedar Lake Trail and Walker Street , is a Municipal State Aid (MSA) street. These street segments are not programmed in our current 10-year CIP. This is due to the roadway condition being better than other roads on our MSA system. Some additional information: • The Louisiana Avenue bridge over the BNSF railroad was built in 1982 and is in good condition. It will not need replacement until after 2050. • Louisiana Avenue, between Minnetonka Boulevard and the bridge, was originally installed in 1968. Since that time, there have been improvements such as installing turn lanes at intersections, signal work and a bituminous overlay for rideability. The pavement is in fair condition and likely should be scheduled for maintenance in about 15 years. Since this is a concrete road, reconstruction may not be necessary. The level of needed future maintenance will require additional investigation. • Louisiana Avenue, between Walker Street and Minnetonka Boulevard, was constructed in 1982. The pavement is in good condition. This segment of the road will not need rehabilitation for 20 or more years. Corridor infrastructure construction: $3.2 million for a bikeway on Louisiana Avenue is currently in the 10-year CIP and is programmed for construction in 2026/2027. That said, in 2021 council provided direction to staff to only construct protected bikeways on significant corridors, which is estimated to more than double the cost for bike improvements on this corridor. Even if this staff direction had not been provided, staff would recommend integrating the bikeway Study session meeting of April 24, 2024 (Item No. 2) Page 7 Title: Engineering projects not in 10-year capital plan construction into a Louisiana Avenue roadway reconstruction project due to significant design challenges, economy of scale and a desire to minimize impacts on the community. Like our Cedar Lake Road/Louisiana Avenue Improvements project, there are several options for the design of the bicycle and pedestrian facilities. They could be cycle -track/sidewalk, multi- use trail or a bikeway alternate route/sidewalk. Specific recommendations for this project will require significant design efforts and public input. This process has not occurred. In addition, the sidewalks on Louisiana Avenue are currently at the back of curb. Due to the high traffic volume, staff recommends removing them and constructing a pedestrian facility with a grass boulevard to separate users from traffic. As a result of the additional analysis, staff recommends that the bikeway construction be delayed until the condition of these roadways warrants reconstruction and plan to reflect this recommendation in this year’s CIP process . Delaying this project until a more comprehensive plan and funding schema can be created will create additional room in the CIP for currently unprogrammed projects. Cost: We have updated the high-level estimate for road reconstruction and pedestrian and bicycle improvement construction along Louisiana Avenue, as shown below. Estimated cost (2023 dollars) Road reconstruction $11.3 million Bicycle and pedestrian improvements $6.6 million Right of way $3.0 million Total* $20.9 million *This estimate does not include costs for contaminated soil, sanitary sewer, storm sewer or watermain construction. Additional investigation would be needed to understand those costs. Delamination mitigation Along with many other cities, St. Louis Park is experiencing an emerging issue of "delamination," which is an accelerated deterioration of the top layer of bituminous pavement on streets that have been sealcoated. Delamination does not significantly impact the pavement structure; however, it does reduce the aesthetic value and can accelerate pavement deterioration. Sealcoating is no longer used by the city as a maintenance strategy. At risk are the streets that have been reconstructed since 2004 and were sealcoated at least once after being reconstructed. Based on these two criteria, 43.3 miles (28.9%) are at risk for delamination. Engineering staff is completing an inspection of all at-risk streets to identify the streets that are actively delaminating and the severity of delamination. Cost: If the council decides to proactively control this problem, staff recommend paving a 1-inch overlay of the at-risk streets. The estimated cost to do this is $2,600,000 (2023 dollars). This estimate assumes that all 43.3 miles of street are actively delaminating. Preliminary findings of Study session meeting of April 24, 2024 (Item No. 2) Page 8 Title: Engineering projects not in 10-year capital plan our inspections indicate that this is not the case and that the work could be spread out over a number of years. Next steps: Capital planning relies heavily on identifying all the needs, prioritizing improvements and making decisions based on infrastructure condition. This ensures that the city will maximize our investments and make the public dollars go further. This discussion only includes projects that engineering would be responsible for implementing. There are also unprogrammed future needs in other departments that staff continue to research and which will need to be considered in future CIP development. This discussion is not meant to provide the council with final recommendations or overall funding plans for these projects. It is the staff’s intent to make the council aware of what opportunities have presented themselves since our last CIP process and provide additional information regarding city infrastructure that the council and community have inquired about. Meeting: Study session Meeting date: April 24, 2024 Written report: 3 Executive summary Title: Quarterly development update – 2nd quarter 2024 Recommended action: None. The attached report summarizes the status of major development projects occurring in St. Louis Park. Policy consideration: Not applicable. Contact staff with any questions. Summary: The attached report is meant to keep the EDA/city council informed on a quarterly basis as to the metrics and tentative schedule of major development projects to be constructed in the city. For clarity, “Proposed developments” are those that are working through the planning entitlement process such as platting, PUDs, variances, and have not yet been approved. “Approved developments” are those whose planning applications have been approved by the city council and have not yet commenced construction (but whose financial assistance agreements may or may not yet have been approved). “Completed developments” are those that have received their final certificates of occupancy. More detailed information can be found on the interactive development dashboard on the city’s website. The dashboard provides project metrics for all major developments or additions that have been approved, under construction, or completed within the city since 2010. The dashboard includes website links, market rate and affordable unit counts by bedroom size, parking information for overall stalls, bike facilities, electric vehicle charging stations and more. Additionally, recent developments receiving financial assistance from the city are required to track Diversity, Equity and Inclusion (DEI) goals related to business enterprises and workforce hiring goals. The current goal status for each development is also included in the update. Financial or budget considerations: Not applicable. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Major developments in St. Louis Park – 2nd Quarter 2024 DEI goal summary Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Sean Walther, planning manager/deputy community development director Approved by: Kim Keller, city manager Major Developments in St. Louis Park 2nd Quarter 2024 Multifamily housing development summary Total Market rate Affordable Proposed units 8 0 8 Approved units 684 602 82 Units under construction 474 214 260 Recently completed units (last two years) 1472 1104 368 All units 2,638 1,920 718 Total Development Costs (TDC)* $785.1 million *TDC includes all developments in the above categories to the extent known For additional information please see Development Projects on the city’s web site. Proposed developments Project, location & developer Project Description Tentative Schedule Minnetonka Blvd redevelopment 5707 – 5639 Minnetonka Blvd. GMHC (Greater Metropolitan Housing Corporation) & (WHAHLT) West Hennepin Affordable Housing Land Trust Proposed is the removal of four modest single-family houses and construction of four twin homes (eight-units), providing eight affordable home-ownership opportunities. Estimated total development cost $3.7 million Website: NA – too early in the process. Received pandemic relief grant funding from Hennepin County. Project plans could be presented to council by Q3 2024. Construction commencement Q2, 2025 upon GMHC securing LIHTC financing. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 2 Approved developments Project, location & developer Project Description Tentative Schedule 2625 Louisiana Avenue 2625 Louisiana Ave. Web Development LLC Largely vacant parcel adjacent to North Cedar Lake Regional Trail to be redeveloped with a 57-unit, four-story, mixed-use market-rate building with approximately 4,000 square feet of ground floor commercial space along with underground and surface parking. Project includes a public path connecting Louisiana Avenue to the Regional Trail. Estimated total development cost: $TBD Planning entitlements approved. Construction commencement TBD. Achromatic 6013 6013 and 6019 Cedar Lake Rd. Joshua Aaron Proposed is the redevelopment of two single-family homes and the construction of a 36 unit, three-story building with one level of below grade parking. Estimated total construction costs: TBD Planning entitlements approved March 2024. Construction commencement TBD. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 3 Approved developments Project, location & developer Project Description Tentative Schedule Arlington Row East & West 7705 Wayzata Blvd. & 7905 Wayzata Blvd. Melrose Company Two development sites: • 7905 Wayzata includes two three-story apartment buildings with 34 units total and off-street parking covered by a solar power carport. • 7705 Wayzata includes a three-story apartment building with 27 units and surface parking. Estimated construction cost: $TBD Planning applications approved. Tentative construction commencement TBD. Beltline Blvd Station Site SE quadrant of CSAH 25 & Beltline Blvd. Sherman Associates Major mixed-use, mixed income, transit-oriented, multi-phase development adjacent to SWLRT Beltline Blvd. Station. Building I includes: • Seven-story mixed-use building with six levels of market rate housing (152 units) and 20,000 square feet of neighborhood commercial space • A 592-stall parking ramp, which would include 268 park & ride stalls, 326 residential stalls and approximately 1,850 square feet of commercial space. Estimated development cost: $55.8 million Estimated development cost of public ramp: $11.9 million Awarded $13.7 million in LIHTC bonds January 2022 for affordable component. Planning applications approved April 18, 2022. Financial assistance agreements approved June 20, 2022, and July 24, 2023. Anticipated construction: • Grading Q3, 2024 • Building 2 Q3, 2024 • Building 3 Q3, 2024 • Building 1 Q4, 2024 • Ramp Q4, 2024 Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 4 Approved developments Project, location & developer Project Description Tentative Schedule Building 2 includes: • Four-story all affordable apartment building with 82 units, 77 units will be affordable to households at 60% AMI and five units will be affordable to households at 30% AMI. 22 units will have three bedrooms. Estimated development cost: $25.2 million Building 3 includes: • Five-story market rate apartment building with 146 units. Estimated development cost: $49.2 million Altogether, the multi-phase redevelopment will have 380 apartment units of which 82 (21%) would be affordable. Estimated total development cost: $142 million Construction completion all phases Q4, 2025. Parkway Residences W 31st St. between Inglewood Ave. & Glenhurst Ave. Sela Group & Affiliates Multi-phase redevelopment includes four, multi-family buildings with 211 units. The affordable housing includes 24 rehabilitated units at 50% AMI, and six new units at 60% AMI. Phase III: Eleven-story, 73-unit apartment building. Estimated development cost: $36.2 million Estimated total development cost (all phases): $91.4 million Phase III commencement anticipated spring 2024. EDA approved an extension to the development contract Feb 2024. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 5 Under construction Project, location & developer Project Description Tentative Schedule Mera (formerly 9920 Wayzata) 9808 & 9920 Wayzata Blvd. Bigos Management Redevelopment of former Santorini’s restaurant property at northwest quadrant of I-394 & US 169. Six-story, 233-unit, mixed income apartment building with 20% (47) of the units affordable to households at 50% AMI. Estimated total development cost: $68.6 million Construction commencement September 2022, to be completed by July 2024. Union Park Flats 3700 Alabama Ave. & 6027 37th St. W. PPL (Project for Pride in Living) Redevelopment of the north portion of the Union Congregational Church property with a three story, 60-unit affordable apartment building on the north half of the property. All unit rents would be affordable to households ranging from 30%-60% AMI. Union Congregational Church plans to remain on the south portion of the property. Estimated total development cost: $28.6 million Planning applications approved July 6, 2020. Received funding from MHFA in June 2022 and fall 2022. SLP AHTF approved May 2023. Construction commencement November 2023, to be completed by July 31, 2025. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 6 Under construction Project, location & developer Project Description Tentative Schedule Zelia on Seven (formerly Via Sol) SE quadrant Hwy. 7 & Wooddale Ave. 5855 Hwy. 7 Originally developed by PLACE now owned by Bigos Management Mixed-use, mixed-income, transit-oriented development including a five-story, 217-unit apartment bldg (65 market rate units, 22 units affordable to households at 50% AMI, and 130 units affordable to households at 80% AMI), e-generation, wind turbine, solar panels, and one-acre urban forest. Estimated total development cost: $88.4 million Commenced January 2020. Closed on additional financing January 2022. Apartment building received its temporary certificate of occupancy (TCO) in July 2022. Bigos Management received a PUD amendment March 25, 2024. Recently completed developments Project, location & developer Project Description Tentative Schedule 10 West End (Phase IV of Central Park West) 1601 Utica Ave. S. Excelsior Group and Ryan Co. Award winning eleven story, 343,000 square foot Class A, LEED certified, office building with 3,500 square feet of ground floor commercial space, 5,000 square feet of shared outdoor amenity space and 1,214-stall parking structure. Estimated construction cost: $55.8 million Completed January 2021. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 7 Recently completed developments Project, location & developer Project Description Tentative Schedule The Elmwood 5605 W. 36th St. Main Street Companies Five story, 70-unit, mixed-use, mixed income, age-restricted development (53 market rate and 17 units affordable to households at 60% AMI), 4,400 square feet of ground floor office/commercial space. Estimated total development cost: $24.6 million Completed August 2021. Louisiana Crossing 3745 Louisiana Ave. Loffler Companies Loffler Companies purchased and renovated the 132,485 square foot former Sam’s Club building. The Midwest’s largest office-technology and IT-services company consolidated its headquarters and warehouse operations at this new location resulting in over 500 jobs. Loffler leased out approximately 30,000 square feet of the building and may eventually sell the south end of the 13-acre property for multifamily housing. Estimated construction cost: $TBD Warehouse operations moved in Q4 2021. Office renovation completed in Q4 2022. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 8 Recently completed developments Project, location & developer Project Description Tentative Schedule Parkway Residences W 31st St. between Inglewood Ave. & Glenhurst Ave. Sela Group & Affiliates Multi-phase redevelopment includes four, multi-family buildings with 211 units. The affordable housing includes 24 rehabilitated units at 50% AMI, and six new units at 60% AMI. Phase I: • Parkway Place: Four-story, 95-unit apartment building. • Parkway Flats: Six-unit apartment building. • Rehab of 24 NOAH apartment units. Estimated development cost: $40.6 million Phase II: Parkway Commons: Four-story, 37-unit apartment building. Estimated development cost: $14.6 million Parkway Place & rehab completed April 30, 2022. Parkway Flats completed October 2022. Parkway Commons completed March 2023. The Quentin 4900 Cedar Lake Rd. Crowe Companies LLC Project included the removal of three substandard buildings and construction of a five story, 79-unit sustainable apartment building that includes two levels of structured Completed August 2021. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 9 Recently completed developments Project, location & developer Project Description Tentative Schedule parking. The housing includes eight units affordable to households earning up to 50% AMI. Estimated total development cost: $21.3 million. Xchange Medical Office 6009 Wayzata Blvd. Davis Group Three-story, Class A, medical office development fronting I-394. Ear Nose & Throat Specialty Care (ENTSC) and Surgical Care Affiliates (SCA) anchor the 77,996-square foot medical office building. Includes one level of underground parking with 51 stalls and 253 surface parking stalls on the building’s south side. Estimated construction cost: $13 million Completed November 2021. Nordic Ware expansions  Buildings 8 & 9 5005 CSAH 25 Dalquist Properties LLC 21,853-square-foot warehouse and loading dock addition to Building 8. 45,000 square foot warehouse and loading dock addition to Building 9 along with a small café and outdoor patio on the property’s south side facing the regional trail. Estimated construction cost: $11.6 million Completed Q2 2022. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 10 Recently completed developments Project, location & developer Project Description Tentative Schedule Volo at Texa-Tonka NE corner Texas Ave. & Minnetonka Blvd. Paster Development Mixed income redevelopment includes 101 apartment units in a three- to four-story building, and 11 walk-up style townhome units located in two two-story buildings on the northern end of the site. Twenty percent (23) of the units would be affordable to households earning up to 50% AMI. Estimated total development cost: $26.6 million Completed 11 townhome units Dec. 2022. Completed 101 multifamily units May 2023. Caraway (formerly Luxe Residential) 5235 Wayzata Blvd. (Phase VI of Central Park West) Greystar Real Estate Partners Redevelopment of former Olive Garden property in The West End area. Luxe Residential is a six-story, 207-unit, apartment building (including eight units affordable to households earning up to 60% AMI) along with two levels of underground parking. The development also includes a new pocket park along 16th Street and pedestrian improvements connecting the apartment building to the rest of The West End area. Estimated construction cost: $51.8 million Completed October 2023. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 11 Recently completed developments Project, location & developer Project Description Tentative Schedule Bremer Bank 7924 Hwy. 7 Frauenshuh The retail building containing Knollwood Liquor and Papa Murphy’s Pizza was removed and replaced with a two-story, 5,850 square foot office building and is occupied by Bremer Bank. Completed October 2023. Corsa (formerly Beltline Residences) 3440 Beltline Blvd. Opus Group Five-story, 250-unit mixed-use, mixed income development with two retail spaces totaling 7,445 square feet and six live/work units. 10% of the units (25) will be affordable to households at 50% AMI. Estimated total development cost: $78.1 million Completed October 2023. Rise on 7 8115 Hwy. 7 CommonBond Redevelopment of former Prince of Peace church property across from Shops at Knollwood. Includes a four-story, Completed November 2023. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 12 Recently completed developments Project, location & developer Project Description Tentative Schedule 120-unit, all affordable apartment building with income restrictions ranging between 30%-60% AMI along with a 6,600 square foot “affordable” early childhood center. Estimated total development cost: $40.7 million Risor 3510 Beltline Blvd. Roers Company Six-story, 170-unit apartment building with 4,100 square feet of ground floor commercial space and 14 ground floor live- work units. The development is an age restricted (55+) community with 10% (18) of the units affordable to households earning up to 50% AMI. Estimated construction cost: $56.5 million Completed November 2023. Arbor Court 3801 Wooddale Ave. S. Real Estate Equities LLC Redevelopment of former Aldersgate Church property adjacent to Burlington Coat/Micro Center and Highway 100. All affordable housing development includes 114-units, with 205 parking stalls, of which 117 stalls would be underground. • Five units affordable to households up to 30% AMI • Five units affordable to households up to 50% AMI • 104 units affordable to households up to 60% AMI Estimated total development cost $30.1 million Completed March 2024. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 13 Diversity, Equity, and Inclusion Hiring Goals Through April 1, 2024 Union Park Flats Rise on 7** CommonBond Arbor Court** Real Estate Equities The Mera (9920 Wayzata) Bigos LLC QUARTERLY COMPLIANCE SUMMARY ACTUAL GOALS ACTUAL GOALS ACTUAL GOALS ACTUAL GOALS Total number of business enterprises contracted in development 47 50 59 50 Percentage of women-owned business enterprises in development 21% 6% 4% 6% 5% 6% 10% 6% Percentage of BIPOC/AAPI owned business enterprises in development 4% 13% 0% 13% 2% 13% 2% 13% Percentage of total development dollars paid to women-owned business enterprises in development 21.08% 6% 5.10% 6% 0.51% 6% 7.13% 6% Percentage of total development dollars paid to BIPOC/AAPI owned business enterprises in development 2.56% 13% 0.00% 13% 0.62% 13% 0.13% 13% Total number of construction workers contracted in development 247 204 499 1255 Percentage of women workforce in development 2% 20% 6% 6% 2% 6% 3% 6% Percentage of BIPOC/AAPI workforce* in development 13% 32% 9% 32% 23% 32% 17% 32% Percentage of total construction hours for women workforce in development 1.05% 20% 13.12% 6% 2.66% 6% 0.76% 6% Percentage of total construction hours for BIPOC/AAPI workforce* in development 11.84% 32% 27.81% 32% 30.65% 32% 14.58% 32% *The BIPOC/AAPI workforce demographic data is self-reported, and likely does not fully capture Hispanic/Latinx individuals. **These are the final DEI numbers for Rise on 7 and Arbor Court. Study session meeting of April 24, 2024 (Item No. 3) Title: Quarterly development update - 2nd quarter 2024 Page 14 Meeting: Study session Meeting date: April 24, 2024 Written report: 4 Executive summary Title: Second amendment to the preliminary development agreement with Greater Minnesota Housing Corporation – Ward 1 Recommended action: None at this time. The EDA will be asked to consider a second amendment to the preliminary development contract with Greater Minnesota Housing Corporation on May 6, 2024. Policy consideration: Does the EDA wish to extend the preliminary development agreement (PDA) with Greater Metropolitan Housing Corporation (GMHC) to continue joint efforts to prepare a mutually acceptable affordable housing development creating single-family homeownership opportunities? Summary: On July 6, 2021, the EDA entered a preliminary development agreement (PDA) with Greater Metropolitan Housing Corporation (GMHC) to pursue development of owner-occupied affordable housing on four single-family properties owned by the EDA located at 5639, 5643, 5647 and 5707 Minnetonka Boulevard. GMHC has subsequently begun exploring a partnership with Homes within Reach to potentially include a community land trust for the redevelopment. GMHC and the EDA have also been working to secure outside grants to help fund the project. A summary of funds and actions thus far are provided in this report. A first amendment to the PDA was executed in 2023, which expires on June 1, 2024 unless it is extended. Given the progress made to date and the parties’ ongoing mutual interest in the proposed affordable housing development, the parties wish to extend the PDA to December 31, 2025. Financial or budget considerations: The precise purchase price of the EDA parcels and the amount of financial assistance necessary to move the proposed Minnetonka Boulevard redevelopment forward will require further discussion once the project components are more fully defined. City staff anticipate the proposed redevelopment will require financial assistance from the city and/or the EDA. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Jennifer Monson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Sean Walther, planning manager/deputy community development director Approved by: Kim Keller, city manager Study session meeting of April 24, 2024 (Item No. 4) Page 2 Title: Second amendment to the preliminary development agreement with Greater Minnesota Housing Corporation – Ward 1 Discussion Background: Between May 2018 and spring 2020, the EDA purchased four single -family houses at 5639, 5643, 5647 and 5707 Minnetonka Boulevard (see map below). These properties on the south side of Minnetonka Boulevard are between a 60-unit apartment building to the east and a church to the west. Better Futures Minnesota deconstructed the houses to recycle and reuse as much of the structures as possible and completed demolition. All four properties are zoned R-4 multi-family residential and guided RM-Medium Density Residential, which allows up to 30 housing units per acre. Location map of Minnetonka Boulevard redevelopment site On July 6, 2021, the EDA entered a preliminary development agreement (PDA) with Greater Metropolitan Housing Corporation (GMHC) to pursue development of owner -occupied affordable housing on the EDA’s properties. The PDA allows both parties to work cooperatively together toward a mutually acceptable medium density development plan as well as purchase and redevelopment contract for the site. The PDA also provides GMHC with formal permission to access the site to conduct its due diligence and provides guidance on applying for land use and zoning changes as well as financial assistance. The PDA also gives GMHC exclusive rights to negotiate acquisition of the subject properties from the EDA. GMHC subsequently began exploring a partnership with Homes within Reach to potentially include a community land trust for the redevelopment. GMHC and the EDA have also been working to secure outside grants to help fund the project. To date the project has received funds from Hennepin County and the Metropolitan Council including: Study session meeting of April 24, 2024 (Item No. 4) Page 3 Title: Second amendment to the preliminary development agreement with Greater Minnesota Housing Corporation – Ward 1 • In 2022, Metropolitan Council awarded a Local Housing Incentive grant totaling $257,904. • In 2023, Hennepin County Housing and Redevelopment Authority (HCHRA) approved a $1,044,665 grant from its Affordable Housing Development Accelerator program. In February 2024, GMHC hired Bennett Community Consulting to project manage the redevelopment, and in early March GMHC hired Lunning Wende Associates, Inc as the architect. The project seeks to: • construct eight to ten affordable homes on land currently owned by the EDA for low- income home buyers, with a preference given to first-generation home buyers; • provide wealth building opportunities to underserved households, primarily Black and BIPOC households; • provide long-term affordability for owner-occupied housing units; and • utilize sustainable construction methods to reduce utility costs and carbon emissions . Present considerations: A first amendment to the PDA was executed in 2023, which expires June 1, 2024 unless it is extended. Given the progress made to date and the parties’ ongoing mutual interest in the proposed redevelopment, the parties wish to extend the PDA to December 31, 2025. Next steps: Site plans and additional development updates will be presented to the EDA in 2024. Neighborhood meetings will also be held to gather comments on the proposed development. Provided the EDA is supportive of the proposed development plans, GMHC will submit planning entitlement applications to the city for the planning commission and city council’s consideration. The purchase price of the EDA parcels and the amount of financial assistance necessary to advance the proposed Minnetonka Boulevard redevelopment will require further discussion when the project’s components are better defined. City staff anticipate the redevelopment will require financial assistance from the city and/or the EDA. Meeting: Study session Meeting date: April 24, 2024 Written report: 5 Executive summary Title: 2023 housing activity report Recommended action: The purpose of this report is to update council on city housing programs and activity. This report is informational only. No action is required. Policy consideration: None. Summary: The housing activity report is prepared by staff annually and has been presented to council each year since 2005. The report provides information on housing policies and initiatives, historical trends, affordable housing data and information on housing programs in St. Louis Park. The first two pages provide a brief overview of the detailed report. Approximately every five years, the housing authority contracts to have a comprehensive housing study conducted by an independent consultant. The most recent housing study was completed and presented to council in 2023. Detailed information relating to the policies and programs in the housing activity report can be found on the St. Louis Park city website. Financial or budget considerations: Not applicable Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: 2023 housing activity report Prepared by: Marney Olson, housing supervisor Reviewed by: Karen Barton, community development director Approved by: Kim Keller, city manager 2023 Housing Activity Report Executive summary The purpose of this report is to provide an overview of the 2023 housing program activity. The report provides information on new initiatives and updates as well as historical trends, program descriptions, and data on city and federally funded housing programs and activity that support the city’s housing goals. 1.City housing policies, page 3 a.Inclusionary Housing (30%, 50% and 60% AMI) b.Tenant Protection Ordinance (60% AMI and below) c.Housing Trust Fund d. NOAH preservation strategies: i.4D tax incentive program (60% AMI and below) ii.Multifamily rental rehab program (60% AMI and below) iii.Legacy program (60% AMI and below) 2.Remodeling activity, page 9 a.Housing rehab projects (general remodeling) in 2023 decreased compared to 2022. Most projects were financed without using city loans. b.The city’s Architect Design Services and Remodeling Advisor Services usage decreased in 2023; additional marketing efforts will be undertaken in 2024. c.Major remodeling projects and additions decreased in 2023. There were 38 additions and 93 major remodels in 2023 with average valuations at $190,500 and $74,000 respectively. d.The Construction Management Plan (CMP) program has been in place since November 2014. In 2023 there was a decrease in the number of projects requiring a CMP with only 12. The number of additions was also down in 2023, consistent with permit data. CMP letters were sent in 2023 for eight major additions and four demo/rebuilds. A map is included on page 13 of the report showing the location of these projects. 3.Affordable home ownership, Community Development Block Grant and emergency rental assistance, page 16 a.The down payment assistance (DPA) program was utilized to maximum capacity in 2023. The city provided loans to 22 first-time homebuyers (at or below 120% AMI) in 2023. b.The city launched the first-generation homeownership program in late 2021. The first loan closed in 2022 and four additional loans closed in 2023. c.West Hennepin Affordable Housing Land Trust dba Homes Within Reach added two homes in St. Louis Park in 2023, for a total of 24 affordable homes in the community. d.CDBG funds were used to fund the Deferred Loan Program for low-income residents in St. Louis Park and Homes Within Reach. (80% AMI) e.The city provides an emergency repair grant for low-income homeowners in St. Louis Park. There were four emergency repair grants issued in 2023 (50% AMI). f.The city provides funds to STEP annually for emergency rental assistance. In 2023, STEP received $65,000 in rental assistance, in addition to administrative and program-specific funding. 4.Housing matrix, page 18 a.Owner occupied (properties without a rental license) properties comprise 53% of the housing market with rental properties (units with a rental license) at 47%. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 2 b.The single-family home ownership rate is 93%. c.There are 1200 units of senior housing in St. Louis Park. d.Maxfield Research completed their rental study in 2023. Among the 8,101 market rate units inventoried by unit mix and monthly rent, 26.4% are affordable to households with incomes at 50% AMI while 24.5% are affordable to households with incomes at 60% AMI. e. The 2023 affordable ownership purchase price decreased to $304,700, nearly $50,000 less than 2022 due to interest rate increases. The significant reduction in the affordable purchase price also decreased the percentage of affordable homes. 32% of homes in St. Louis Park are assessed at or below this affordability limit. These homes are comprised of single family, condominiums, and townhomes. 5.Foreclosures, page 23 a.The foreclosure rate remains extremely low. 6.Housing Authority rental assistance programs (30% AMI), page 24 a.The St. Louis Park Housing Authority affordable rental housing and rental assistance programs served approximately 615 households with rental assistance in 2023. Income eligibility limits are 50% AMI for the housing choice voucher (HCV) program and 80% for public housing, although the majority of households served in public housing and the HCV program are below 30% AMI. 95% of households served by housing authority rental assistance programs are at or below 50% AMI with the majority (79%), below 30% AMI. All federally funded housing programs are counted as 30% AMI units because households typically pay 30% of their income towards rent. b.The Housing Authority serves households with several special purpose vouchers including the Family Unification Program, Mainstream Vouchers and VASH which serves veterans (50% AMI and below). c.The St. Louis Park Housing Authority, in partnership with Hennepin County, has continued administering the Stable HOME rental assistance program which provides housing assistance to homeless or previously homeless individuals and families in Suburban Hennepin County. 48 households were served in 2023 (50% AMI). d.Kids in the Park program – funding was increased in 2023 to serve 30 families (50% AMI and below). Prior years the program served 20 families. e.Lou Park Apartments – 20 tenants residing at Lou Park with project-based vouchers were transitioned to tenant-based vouchers administered by the Housing Authority (50% and below AMI). Housing authority rental assistance programs by AMI in 2023 30% AMI 50% AMI 60% AMI 80% AMI and over Percentage of Households 79% 16% 3% 2% 7.Program Descriptions, page 28 This section gives detailed descriptions of the various housing programs. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 3 1.City housing policies The City of St. Louis Park has undertaken new initiatives and updates to current policies to address affordable housing needs in the community. Inclusionary housing In June 2015, the city council adopted an Inclusionary Housing Policy that requires the inclusion of affordable housing units for lower income households in new market rate multi-unit residential developments receiving financial assistance from the city. The goal of the Inclusionary Housing Policy is to increase the supply of affordable housing and promote economic and social integration. The policy is regularly reviewed and updated as needed. Table 1: Inclusionary housing policy requirements Current Policy Rental Projects •20% of units at 60% AMI •10% of units at 50% AMI •5% of units at 30% AMI Ownership Projects Payment in lieu Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 4 Table 2: Affordable units created and approved since adoption of the Inclusionary Housing Policy Development Year built Length of affordability Total Units Affordable Units Affordability Level O-bedroom Affordable Units 1-bedroom Affordable Units 2-bedroom Affordable Units 3+bedroom Affordable Units Completed projects Shoreham 2017 25 148 30** 50% 4 13 13 4800 Excelsior 2017 25 164 18 60% 1 10 7 Central Park West Phase 1 (199 units total 2017 25 119 in SLP 6* 60% 1 2 2 1 Parkway 25 2018 112 Arlo West End 2020 25 164 5* 50% 1 1 2 1 The Quentin 2020 25 79 8 50% 3 4 1 0 Elmwood 2021 25 70 17 60% 5 12 Urban Park Flats 2021 61 0 Parkway Place 2022 94 0 Zelia on 7 2023 25 217 22 65 50% 60% 60% 36 29 15 5 – 3BR 2 – 4BR Parkway Residences – rehab 2023 25 24 24 50% 1 15 8 Parkway Flats 2023 25 6 6 60% 6 Caraway 2023 25 207 8* 60% 2 3 2 1 Volo at Texa Tonka 2023 25 112 23 50% 7 12 4 0 Rise on 7 2023 26 city 30 HTC 120 19 22 21 58 30% 40% 50% 60% 57 39 24 Risor 2023 25 170 18 50% 1 11 5 1 Corsa 2023 25 250 25 50% 5 15 3 2 Parkway Commons 2023 37 0 Totals 2,154 395 Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 5 Development Year built Length of affordability in years Total Units Affordable Units Affordability Level O-bedroom Affordable Units 1-bedroom Affordable Units 2-bedroom Affordable Units 3+bedroom Affordable Units Under construction Arbor Court 26 city 30 HTC 114 5 5 104 30% 50% 60% 27 50 37 Union Park Flats 26 city 50 LURA 60 16 27 17 30% 50% 60% 10 5 30 10 - 3 BR 5 - 4 BR Mera (formerly 9920 Wayzata) 25 233 47 50% 10 19 16 2 Totals 407 221 Approved Parkway Plaza 73 0 Beltline Station Dev. Bldg 1 152 0 Beltline Station Dev. Bldg 2 40 city 82 5 77 30% 60% 15 45 22 Beltline Station Dev. Bldg 3 146 0 Totals 453 82 *Central Park West Phase 1 and Phase 2 and Luxe were not subject to the Inclusionary Housing Policy and voluntarily included affordable units **Shoreham is a tax credit property resulting in 20% of units affordable at 50% AMI ***Parkway Residences, Parkway Place, Parkway Flats, Parkway Commons and Parkway Plaza were all approved under Parkway Residences and all of the affordable units are in Parkway Residences and Parkway Flats Some properties have a longer affordability term than the terms required by the inclusionary housing policy. The additional affordability period is noted below the inclusionary housing policy affordability period. Housing tax credit (HTC) and Land use restrictive covenants (LURA) for tax credits may have varying requirements. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 6 Housing Dashboard The City of St. Louis Park is committed to promoting quality multifamily development and affordable housing options for low- and moderate-income households. The multifamily housing dashboard shows the total number of rental units and the number of affordable units created since the inclusionary housing policy was adopted. Note that it does not reflect the total number of affordable rental units in the city, nor does it reflect affordable units that have been approved but have not yet been completed. The dashboard also includes a second tab, affordable housing goals, that shows the progress the city is making towards the affordable housing goals set by the Metropolitan Council. Tenant Protection Ordinance The city council adopted a tenant protection ordinance in 2018. The tenant protection ordinance requires a three- month period following the ownership transfer of a NOAH multifamily residential property during which the new owner would be required to pay relocation benefits to tenants if the rent is increased, existing residents are rescreened, or non-renewals are implemented without cause. NOAH properties are defined as buildings where at least 18% of the units have rents affordable to households with incomes at or below 60% Area Medium Income (AMI) to match the inclusionary housing policy affordability requirements at the time the policy was adopted. The ordinance does not prohibit a new owner from taking the management actions listed above; however, the owner would be required to provide resident relocation benefits if they do take any of those actions during the tenant protection period and a tenant decides to move as a result. The three-month protection period provides a period for residents to work with housing support resources and seek alternative housing if they are facing unaffordable rent increases, new screening criteria requirements that would be problematic for them, or a thirty- day non-renewal without cause notice to vacate. The ordinance requires the new owner of a NOAH building to provide notice of the ordinance protections to tenants of affordable housing units within 30 days of the sale of the building. The three-month tenant protection period begins once the notice has been given to the tenants. The sale of a NOAH property does not necessarily mean it will no longer be affordable. Some sales include rent restricted units and others remain affordable without rent restrictions. One sale in 2019 and one sale in 2023 have HUD project based units that required the property to remain affordable. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 7 NOAH properties required to comply with the tenant protection ordinance based on sale date: •3 in 2019 •2 in 2020 •2 in 2021 •1 in 2022 •3 in 2023 Local housing trust fund The city council approved establishing a local affordable housing trust fund in 2018. Housing trust funds are distinct funds established by city, county or state governments that receive ongoing dedicated sources of public funding to support the preservation and production of affordable housing. Housing trust funds can also be a repository for private donations. The Minnesota Legislature passed a bill in 2017 that allows local communities to establish housing trust funds. The housing trust fund may be established by ordinance and administered by the city. Money in a housing trust fund may only be used to: •pay for administrative expenses not to exceed 10% of the balance of the fund; •make grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing; •match other funds from federal, state, or private resources for housing projects; or •provide down-payment assistance, rental assistance, and homebuyer counseling services. The city may finance the fund with any money available to a local government, unless expressly prohibited by state law. The proposed primary source of funding for the city’s trust fund is an annual budgeted allocation of HRA Levy funds, which was available beginning in 2020. The local housing trust fund guide was approved in 2019. Land banking Land banking is the practice of aggregating parcels of land for future sale or development. The Economic Development Authority (EDA) purchased parcels near the Beltline and Wooddale stations to facilitate future redevelopment which will include housing. The EDA also purchased four single-family homes on Minnetonka Blvd between 2018 and 2022 for future affordable homeownership redevelopment purposes. NOAH Preservation (Naturally Occurring Affordable Housing) Housing staff continued to participate in a Regional Housing Workgroup to review and discuss strategies for preservation of NOAH. Additional preservation strategies including the multifamily rental rehab program, Legacy program and 4d were approved in 2018 and implemented in 2019 to preserve NOAH properties. Legacy program – 60% AMI and below Investors are buying NOAH apartment properties across the Twin Cities, often renovating the properties and increasing the rents. The City of St. Louis Park created the legacy program to encourage multifamily NOAH property owners in our community who are thinking about selling their property to consider connecting with a socially driven investor who will preserve the affordability of their development. The city created a legacy program brochure outlining how an owner can make a difference by providing a legacy of affordable housing in St. Louis Park. The brochure was mailed to all class B and C multifamily rental properties. In 2021, the city expanded the Legacy program to include single family homes to connect potential sellers with Homes Within Reach to expand the land trust program in St. Louis Park and preserve affordable homeownership in the community. Homes Within Reach has communicated with homeowners about the program and one home in 2022 and two homes in 2023 were sold directly to Homes Within Reach through the legacy program and will remain affordable homeownership opportunities in perpetuity. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 8 4d - 60% AMI and below St. Louis Park’s 4d affordable housing incentive program helps preserve affordable homes in the city by providing financial incentive to qualified apartment owners for state property tax reductions if they agree to keep 20 percent or more of their rental units affordable. The program also offers grants to help owners make energy efficiency and safety improvements to their properties. This program was developed, approved, and marketed in 2018 to preserve affordable housing in St. Louis Park. One apartment building applied for 4d in 2019. Two property management companies covering four properties applied in 2023 to the 4d program preserving approximately 460 units at or below 60% AMI for a minimum of five years. Multifamily rental rehab program - 60% AMI and below The multifamily rental rehab program provides moderate rehabilitation assistance to eligible owners of St. Louis Park multifamily residential rental properties with three or more units. The targeted properties are NOAH properties that have been maintained, are in good standing, and wish to make improvements to their properties. Buildings must be at least 30 years old and meet the St. Louis Park definition of a NOAH property. The maximum loan amount per qualified rent restricted unit is $5,000 with a maximum loan per building/development of $50,000. Loans have 0% interest and are due upon the sale of the property. Owners must restrict the rents for a 10-year term or until the sale or transfer of the ownership of the property. The goal of this program is to provide a rehab incentive for NOAH properties to improve their property without raising rents above the 60% AMI rent level. No properties participated in this program in 2019. Staff began evaluating the program in 2020 and modifying the program in 2021. In 2022, housing staff worked with the city’s environment and sustainability staff on a grant to evaluate housing and energy efficiency programs for multifamily properties to identify barriers to the use of the current programs and identify what changes would make the programs more beneficial to both property owners and tenants. One multifamily rental rehab loan closed in 2022 and three loans covering 149 units were closed in 2023. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 9 2.Remodeling activity Residential permitted activity measures remodeling and maintenance activity. This section shows historical trends of remodeling activity. Permit Trends •“Alteration Residential” or General Remodeling General remodeling work includes residential projects with permit valuations less than $37,500. The average value per job in 2023 is just over $10,000, a slight increase compared to 2022. There was a decrease in the number of permits in 2023 compared to previous years. Permits include a wide range of projects including remodeling of existing spaces, window and door replacement, drain tile, insulation, foundation work, etc. Chart 1: Trend of General Remodeling Permits valued under $37,500 •Roofing and Siding Activity Reroofing and residing permits are tracked separately. Almost 60% of the homes in the city had roofs replaced between 2008 and 2011 due to storm damage. In 2020 the number of permits started to increase. The number of reroofs in 2023 nearly doubled 2022 and 2021 which may be attributed to a large hail storm. Residing has been more consistent over the last 10 years. Chart 2: Reroofing and Residing Permits 1091 1084 1074 1203 1170 983 996 1044 1001 1018 811 0 500 1000 1500 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number of Permits IssuedYear Maintenance & minor remodeling permits Alteration Residential (Minor) 161 131 104 80 107 163 162 296 591 590 1176 83 70 47 86 62 85 63 122 205 205 156 0 500 1000 1500 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number of Permits IssuedYear Reroofing and residing permits Reroof Reside Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 10 •Additions and Major Remodeling The number of major remodeling permits (valued at more than $37,500) and additions decreased from last year. The average permit valuation for additions during 2023 is $190,500, which is approximately $40,000 more than the average permit valuation in 2022. The 2023 average valuation for major remodels is approximately $74,00 which is consistent with 2022. Chart 3: Number of Addition and Major Remodeling Permits •Permit Valuation The following chart shows historical remodeling permit valuation for additions, major remodels, remodeling and maintenance, garages/decks, reroofs, and siding. Permits with additional valuations were issued for plumbing, heating, and electrical work are not shown here. The 2023 valuation is higher than previous years, but does include a significant increase in roofing permits with a total valuation of approximately $17 million. Chart 4: Permitted Residential Remodeling 67 73 70 59 62 59 67 49 63 62 38 53 69 70 65 77 77 69 85 104 107 93 0 40 80 120 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number of Permits IssuedYear Addition and major remodel permit activity Addition Residential Major Remodels $25 $23 $…$25 $26.2 $28 $43.5 $24.6 $36$31.4 $40.3 0 20 40 60 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Permit Valuation -Million $Year Residential remodeling permit valuation Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 11 City Housing Improvement Services, Loans Trends and Program Descriptions Home Improvement Services The city’s architectural design service, remodeling advisor and Home Energy Squad Visits are great programs for residents who are considering a remodel or energy improvements. The sustainability division of the building and energy department now administers the home energy visits. Chart 5: Architect and remodeling advisor visits Chart 6: Home energy visits 37 41 22 31 33 39 52 47 36 18 12 69 95 69 76 76 83 51 45 30 37 180 20 40 60 80 100 120 140 160 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number of VisitsYear Architect and remodeling advisor visits Architect Services Remodeling Advisor 153 173 125 170 109 85 130 166 128 112 216 0 50 100 150 200 250 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number of VisitsYear Home energy squad visits Home Energy Visits Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 12 Construction Management Plan Major additions (second story additions or additions of 500 square feet or more), demolitions and new construction projects need to comply with the Construction Management Plan (CMP). In 2023, the following neighborhood notifications were sent: 8 major additions and four demo/rebuilds. This is the lowest number of CMP projects since the CMP program was initiated. The total permit valuation for CMP projects in 2023 was $4,797,850. The average cost for major additions was $268,000 and $665,000 for demo/new builds. Chart 7: CMP Activity 32 37 33 33 17 19 38 1918 10 9 7 8 11 4 53 6 3 2 0 2 2 13101 2 1 0 00 5 10 15 20 25 30 35 40 2015 2016 2017 2018 2019 2020 2021 2022 Number of CMP ProjectsYear Construction Management Plan Activity Additions Demo/New Build New Build Demo only Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 13 Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 14 Home Remodeling Fair and Tour The cities of Golden Valley, Minnetonka, and St. Louis Park and the St. Louis Park school district sponsored the home remodeling fair in 2023. The 2023 fair was another successful fair with approximately 800 attendees. The Minneapolis St. Paul Home Remodeling Tour expanded its geographic area to include first ring suburbs in 2022. With the expansion of the MSP home tour St. Louis Park no longer hosts our own remodeling tour. Three homes in St. Louis Park participated in the MSP home tour in 2023 and the MSP tour organizers said thanks to the city’s social media efforts the St. Louis Park homes were some of the best attended homes of the tour. City Loans and rebates The following chart shows the number of Move Up and discount loans issued. The city buys down the interest rate on the Minnesota Housing Finance Agency’s community fix up loan for the discount loan with a maximum loan amount of $35,000. In 2020, interest rates dropped below the rate of the city’s buydown rate, so midway through the year no loans needed the city to buy down the rate. This continued through 2022. The city resumed the buy down program in 2023. The move up loan was underutilized for several years. Changes were made to income limits and maximum loan amount for the Move up loan in 2023 increasing the income limit to 120% AMI with a maximum loan amount of $35,000. There were more Move up loans in 2023 and staff will continue to monitor whether the changes to the program increase utilization. Chart 8: Use of city financial incentives Move-Up in the Park loans are deferred until the sale of the home or forgiven after thirty years. Table 3: Move-Up Transformation Loans Paid off in the last five years Year Number of Loans Paid Off Amount of Loans 2019 1 $16,250 2020 5 $114,327 2021 4 $77,876 2022 2 $50,000 2023 5 $96,514 Total paid off $274,885 6 6 7 10 6 3 6 1 2 2 5 22 17 13 11 6 5 6 5 0 0 7 0 25 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number Loans -RebatesYear Move up and discount loans Move up loans Discount loans Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 15 Table 4: Housing rehab and homeownership programs YEAR Move-Up loan Discount loan Architectural Design Services Remodeling Advisor Services Down payment assistance loan First-generation loan Total City Cost 2006 27 $591,264 88 $186,205 102 $22,950 157 $20,410 $3, 2007 27 $620,000 50 $74,000 62 $12,400 179 $23,270 $729,670 2008 18 $330,937 55 $114,129 49 $11,025 130 $16,900 $472,991 2009 17 $329,650 52 $106,000 12 $7,200 126 $16,380 $459,230 2010 9 $209,769 64 $86,263 30 $6,750 89 $11,510 $314,292 2011 10 $226,877 22 $29,213 29 $6,525 82 $10,250 $272,865 2012* 6 $106,232 26 $31,276 29 $6,525 69 $8,970 $153,003 2013 6 $145,071 22 $33,063 37 $8,325 69 $8,970 $195,429 2014 6 $138,740 17 $26,079 41 $9,225 95 $12,350 $186,394 2015 7 $173,000 13 $17,577 22 $4,950 69 $15,525 $211,052 2016 10 $231,057 11 $27,001 31 $6,975 76 $17,100 $282,133 2017 6 $137,950 6 $5,907 33 $7,425 76 $17,100 $168,382 2018 3 $75,000 5 $12,904 39 $8,775 83 $18,865 $115,544 2019 6 $142,350 6 $16,577 52 $11,700 51 $11,475 8 $87,621 $269,723 2020 1 $25,000 5 $7,506 47 $10,575 45 $10,125 10 $135,428 $188,634 2021 2 $50,000 0 0 36 $8,125 30 $7,500 10 $127,900 $193,525 2022 2 $39,210 0 0 18 $4,050 37 $9,250 12 $177,590 1 $50,000 $280,100 2023 5 166,081 7 $17,842 12 $2,700 18 $4,500 22 $310,050 4 $186,125 $687,298 Total $5,313,796 Detailed descriptions of each Move-Up Program are listed at the end of the report. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 16 3.Affordable home ownership, Community Development Block Grants and emergency rental assistance Home ownership - down payment assistance program – 100%/115% AMI and below The down payment assistance program (DPA) provides down payment/closing cost assistance to first- time homebuyers, or those that have not owned a home in the last three years, for purchasing a home in St. Louis Park. The loan is a zero percent interest deferred loan up to $15,000, not to exceed five percent of the purchase price. An additional $5,000 is available for employees of St. Louis Park businesses and St. Louis Park renters. Income restrictions apply. 22 DPA loans were closed in 2023. First generation program It’s recognized that historical and institutional racism has disproportionately created housing challenges and disparities for Black communities, as well as members of communities who do not identify as white, and other underserved low-income communities. Additionally, the income and education gap between households of color and white households has resulted in difficulty for Black and African American people and households of color to obtain mortgages, leading to ongoing wealth accumulation equity issues. The first-generation homeownership program is designed to address these historic injustices and inequities and to support inclusive and equitable communities by facilitating affordable homeownership and providing a means for wealth-building. The goal is to address housing disparities; build power in communities most impacted by housing challenges and disparities; pilot an innovative program to address housing challenges for Black communities as well as members of communities who don’t identify as white, and other underserved low-income communities. To be considered for the program, a buyer must be a first-generation homeowner meaning they have never owned a home and parents must have never owned a home. The program is available to homebuyers with a maximum household income at or below 80% of area median income. The maximum loan amount is based on the household’s income and purchase price of the homes with a maximum of $75,000. The loan is forgiven at 5% per year over a 20-year owner occupancy period. Housing staff have partnered with several non-profits on the development of the program as well as outreach to first generation homeowners. These non-profits work with first time home buyers and are also dedicated to advancing homeownership equity in Minnesota. The program was launched in November 2021 and the first loan was closed in September 2022. Four loans were closed in 2023. Housing Improvement Area (HIA) The HIA is a finance tool to assist with the preservation of the city’s existing townhome and condominium housing stock. An HIA is a defined area within a city where housing improvements are made, and the cost of the improvements are paid in whole or in part from fees imposed on the properties within the area. The Association borrows low interest money from the city, improvements are completed, and unit owners repay the loan through fees imposed on their properties and collected with property tax payments. To date, nine HIA’s have been established and nearly fourteen million dollars of improvements have been made to 1,310 units. Bridgewalk Condominium Homeowners’ Association applied for an HIA in 2021 and was approved by the city council in February 2022. Improvements were completed in 2023. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 17 Emergency Repair Grant (50% AMI) The emergency repair grant that had previously been funded using CDBG funds is now funded with housing rehab dollars. Four emergency grants were issued in 2023. The maximum grant amount is $5,000. Community Development Block Grant (CDBG) (80% AMI) The CDBG calendar year runs from July 1 – June 30th. The FY2023 CDBG allocation of $142,241 was directed to the low-income deferred loan program administered by Hennepin County Low-income deferred loan program Hennepin County administers the low-income deferred loan program for St. Louis Park and other suburban cities in Hennepin County. This program is a 15-year deferred loan for low-income homeowners that is forgiven after 15 years if the homeowner remains in the home. The waiting list continues to grow for this program so additional city funding was budgeted for 2023 with Hennepin County administering the program. Hennepin County had staffing issues which resulted in no city funded loans closed in 2023. ; However, they anticipate being able to increase the number of loans issued in 2024 with CDBG and city funds. . West Hennepin Affordable Housing Land Trust, dba Homes Within Reach (HWR) (80% AMI) – two homes purchased in 2023 Homes Within Reach is a program of West Hennepin Affordable Housing Land Trust that purchases properties, rehabilitates, and then sells the home to qualified low to moderate income households. Buyers pay for the cost of the home only and lease the land for 99 years. City funds are leveraged with CDBG, Hennepin County Affordable Housing Incentive Fund (AHIF), HOME Partnership, Metropolitan Council, Minnesota Housing, and other funds. Homes Within Reach uses the community land trust model to create and preserve affordable homeownership for families in suburban Hennepin County. Two homes were purchased in 2023. To date, Homes Within Reach has purchased 24 homes in St. Louis Park. Emergency rental assistance Annually, the City of St. Louis Park provides funding to the St. Louis Park Emergency Program (STEP) for emergency rental assistance and administrative support. STEP provides rental assistance for residents of St. Louis Park who have an unexpected crisis and cannot pay rent. The crisis mut be able to be resolved with the ability to pay next month’s rent. Documentation is requested at the time of application. Priority is given to those with gross incomes at or below 50% AMI. STEP also receives Community Development Block Grant funds through the Hennepin County Consolidated RFP for emergency assistance. The City of St. Louis Park provided $65,000 in funding to STEP for emergency rental assistance and $55,000 in administrative support for a total of $110,000 in 2023. Information about STEP, county and state emergency rental assistance programs was shared with property owners and managers utilizing the SPARC e-newsletter. The information was also shared on the city’s website and via social media for residents of St. Louis Park. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 18 4.Housing matrix and development The housing matrix below shows the numbers and percentages of housing types, tenure (owner or rental), affordable units, senior-designated units, and large single-family homes. The matrix is a guide to evaluate future housing development proposals. •12,138 units (47% of units) in St. Louis Park have a rental license. •The chart shows percentages of rental vs. owner-occupied units over time. Prior to 2017, the chart reflects homestead vs. non-homesteaded properties. Starting in 2017, the chart uses rental licenses to count the number of rental properties in St. Louis Park since not all non-homesteaded properties are rental. •93% of single-family detached homes were owner-occupied (did not have a rental license), and 82% of condos/townhomes were owner-occupied (no rental license) •The city hired Maxfield Research to update the city’s comprehensive housing analysis. The report was completed and presented to council in 2023. Chart 9: Percentage of owner occupied units *Rental license data used beginning in 2017 Family-size single-family homes One of the city’s housing goals is to increase the number of family-size homes available in the city. “Family-size single-family homes” are defined as exceeding 1,500 square feet of living space, having 3 or more bedrooms, 2 or more baths, and at minimum a 2-car garage. According to the Assessing Department, 2,508 – or 22% – of St. Louis Park single family homes meet this threshold. This is an increase of 31 homes since 2020 most likely due to additions, demo/rebuilds, and remodels. Although this size home is not considered large when compared to newly constructed housing, in St. Louis Park 74% of single-family homes have a foundation size less than 1,200 square feet and 45% of single-family homes have less than 1,200 square feet above ground. 91 89 89 90 89 93 94 94 93 93 93 93 70 67 66 67 67 78 79 81 83 80 82 82 0 50 100 2012 2013 2014 2015 2016 2017*2018*2019 2020 2021 2022 2023Percentage YEAR Percent owner occupied Single Family Detached Homes Condos & Townhomes Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 19 Senior housing The following information provides an overview of senior housing is available in St. Louis Park: •Ten senior (including senior preference) housing rental developments, for a total of 1,200 units. •Hamilton House offers a preference for seniors. there are additional preferences so not all residents are seniors. •Three developments are “affordable.” Hamilton House is Public Housing; Menorah West and Menorah Plaza are multi-family subsidized. •Two developments have a mix of market rate and affordable units. The Elmwood has 17 affordable housing units and Risor has 18 affordable units. These affordable units are required by the inclusionary housing policy. •Two senior ownership developments, for a total of 166 units. •Total rental and home ownership units is 1,366. Table 5: Senior housing table RENTAL Project name Address Total units Affordable units Occupied Date Type of Senior Hamilton House 2400 Nevada Ave S 110 110 1976 Public Housing (Senior Preference) Menorah West Apts 3600 Phillips Parkway 45 1986 Affordable/Subsidized Menorah Plaza 4925 Minnetonka Blvd 151 1981 Affordable/Subsidized, Assisted Living Offered Parkshore Place 3663 Park Center Blvd 207 1988 Senior Knollwood Place 3630 Phillips Parkway 153 1987 Senior TowerLight 3601 Wooddale Ave 43 29 33 2012 Senior Assisted Living Memory Care Roitenberg Family 3610 Phillips Parkway 52/24 2002 Assisted Living/Memory Care Parkwood Shores 3633 Park Center Blvd 68 23 2001 Assisted Living Memory Care Comfort Residence at St. Louis Park 7115 Wayzata Blvd 12 10 2014 Assisted Living Memory Care The Elmwood 5605 W 36th St 70 17 2021 53 market rate/ 17 affordable @ 60% AMI Risor 3510 Beltline Blvd 170 18 2023 152 market rate/18 affordable @ 50% AMI TOTAL RENTAL UNITS: 1200 145 affordable rental units HOME OWNERSHIP Project name Address No. of Units Occupied Date Type of Senior Aquila Commons 8200 W 33rd St 106 2012 Coop Village in the Park 3600 Wooddale 60 2007 Senior Living TOTAL OWNER UNITS 166 Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 20 Affordable Housing For 2023 the Metropolitan Council sets the rental affordability limit at 60% area median income (AMI) and 80% AMI for ownership affordability. In 2023, the metro area median income (AMI) for a household of four was $124,900. Below is a chart showing the number of market-rate affordable (naturally occurring affordable housing) multifamily rental units in St. Louis Park with affordable levels from 30% AMI to 80% AMI based on the Maxfield Research update from 2023. Program participants with a St. Louis Park Housing Choice Voucher (HCV) can utilize vouchers in market- rate rentals reducing the rents to 30 – 40% of a voucher holder’s income. The average HCV client’s income is below 30% AMI. The following information is an excerpt of the 2023 Maxfield Research Housing Study for the City of St. Louis Park. Among the 8,101 market rate units inventoried by unit mix and monthly rent, 26.4% are affordable to households with incomes at 50% AMI while 24.5% are affordable to households with incomes at 60% AMI. Table 6: Multifamily market-rate rental units by AMI Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 21 Chart: 2023 Naturally occurring affordable housing by AMI Source: Maxfield research & Consulting LLC Affordable housing rental projects The multifamily housing dashboard shows the total number of rental units and the number of affordable units created since the inclusionary housing policy was adopted. Affordable homeownership •The 2023 affordable ownership purchase price is at or below $304,700, which is the affordable homeownership purchase price for households at 80% AMI ($95,650). The matrix also shows the data for single-family homes, condos, and townhomes valued at $234,20000 or less, which is the 60% AMI ($74,520) affordable ownership purchase price. •In 2023, 53% (4,832) of the single-family homes, condos, and townhomes in St. Louis Park were considered affordable at or below 80% AMI based on valuation data from assessing. The affordable ownership purchase price decreased by approximately $50,000 compared to 2023. The interest rate is the only change in the assumptions to determine affordability, increasing from 3% to 5.5%. The Metropolitan Council includes the following assumptions in determining the affordable ownership price: o Fixed-interest, 30-year home loan o Interest rate of 5.5% o A 28% housing debt-to-household income ratio o A 3.5% down payment o A property tax rate of 1.00% of the property sales price o Mortgage insurance at 0.85% of unpaid principal o $100/month for hazard insurance Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 22 Table 7: St. Louis Park Housing Matrix December 31, 2023 Housing Units by Type Large Single Family Homes, Affordable, and Senior Housing Housing Type Housing Units Owner Occupied (No Rental License) Rental Licenses Family sized single family homes over 1500 square feet 2023 Affordable ownership: SF, Condo and TH Units 60% | 80% 2023 Maxfield Research Affordable Market Rate (NOAH) Rental Units 60% | 80% Rent restricted units *Does not include tenant based vouchers Senior Designated Single Family Detached 11,607 45% 10,707 900 2,508 211 2,003 37 public housing Duplex 436 2% 122 314 Condos and townhomes 3,564 14% 2938 626 1,809 2,829 166 Apartments 10,298 39% 10,298 4153 6603 546 1200 Totals 25,905 13,767 53% 12,138 47% 2,508 22% 2,020 13% 4832 32% 4153 51% 6603 81.% 579 5% 1194 5% % of SF Homes % of SF, Condo & TH % of Multifamily surveyed % of Rental % of Total Housing Units The rental unit numbers are rental license data provided by the building and energy department. The percentage of owner occupied (no rental license) units to rental (units with a rental license) units is 53% owner (no rental license) and 47% of units with a rental license. Met Council revises the affordable housing income standards annually and for 2023 affordability is defined as owner occupied units at 80% AMI and rental units at 60% AMI. Some years 80% AMI rental units have also been considered affordable. This chart shows all single family homes, condos and townhomes with an assessed value based on 60% and 80% AMI. The chart also shows multifamily rental units affordable at 60% AMI and 80% AMI based on Maxfield Research data. The percentage of affordable units for multifamily is based on the percentage of multifamily units surveyed by Maxfield Research in 2023. More data is on the previous page related to affordable rents based on the number of bedrooms in a unit. Rent restricted units include project based vouchers, public housing, and inclusionary housing units. This does not include the tenant based Housing Choice Vouchers (Section 8), Kids in the Park, or Stable HOME vouchers which are not tied to a specific unit. Data source: St. Louis Building and Energy and Assessing departments, St. Louis Park Housing Authority and Maxfield Research & Consulting. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 23 5. Foreclosures Foreclosures are measured by the number of sheriff sales. The number of residential foreclosures in St. Louis Park and throughout Hennepin County remains low with 11 foreclosure in 2023. Chart 10: St. Louis Park Residential Foreclosures by Year The trend chart below shows foreclosure by housing type over time. Chart 11: Residential foreclosures by housing type *Townhome & DB = Townhome and Double Bungalow/Duplex 59 54 47 31 36 19 15 4 4 7 11 0 40 80 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number of Sherrif Sales Year Residential foreclosures by year 45 39 28 21 25 16 11 3 2 6 69 14 15 6 9 2 4 1 1 1 35144210010 20 50 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023Number Sherrif SalesYear Residential foreclosures by housing type Single Family Detached Condos Townhome & DB Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 24 6.Housing Authority and rental assistance programs The St. Louis Park Housing Authority (HA) administers programs that ensure the availability of safe and desirable affordable housing options in the St. Louis Park community. These programs include the Public Housing program, Housing Choice Voucher rental assistance program, the family self-sufficiency program, Stable HOME, and Kids in the Park programs. The HA currently serves over 615 eligible, low- income households through their housing programs. Public Housing – Restricted to households at or below 80% AMI; however, the majority of public housing residents have incomes below 50% AMI, with a significant number below 30% AMI The Housing Authority (HA) owns Hamilton House, a low-rise apartment building (108 one-bedroom units and two two-bedroom units) built in 1975, and 37 scattered site single-family units (three to five bedrooms) acquired or constructed between 1974 and 1996. Hamilton House is designated for general occupancy; however, priority is given to elderly and disabled applicants. The single-family scattered site units house families with children. The HA also holds the HUD Annual Contributions Contract (ACC) and maintains a waiting list for 12 two-bedroom Public Housing apartment units located at Louisiana Court. The average annual income for households at Hamilton House is $18,105 which is below 30% AMI. The average income for the scattered site single-family homes and Louisiana Court public housing units is $52,161. Family sizes in Louisiana Court and the scattered site houses range from two to 11 people per home. Table 8: Percentage of public housing units by AMI 30% AMI 50% AMI 60% AMI 80% or above 72% 17% 6% 5% Public housing residents pay 30% of their income towards rent. If a household’s income rises above the limit, on the second anniversary of exceeding the HUD over-income limit (120% AMI), households are given notice that they are no longer eligible for public housing and need to move on from the program. The 2023 annual budget for Public Housing was $1,351,921. The HA received an award of $354,936 for the 2023 Capital Fund Program (CFP). CFP funds need to be obligated within two years and spent within four years. Table 9: Public Housing Public Housing Total Units 1-BR 2-BR 3-BR 4-BR 5-BR Hamilton House 110 108 2 Scattered Site Single Family 37 17 17 3 Louisiana Court, Metropolitan Housing Opportunity (MHOP) Units 12 12 Total (bedroom size) 108 14 17 17 3 Total Units 159 Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 25 Housing Choice Voucher Program (HCV) – 50% AMI or below The HA is allocated a total of 382 Housing Choice Vouchers from HUD. This rent assistance program provides rent subsidies for low-income individuals and families in privately owned, existing market rate housing units. The rent subsidy is paid directly to the owner of the rental property by the Housing Authority (HA) with funds provided by HUD. The HA administers tenant-based, project-based and newly awarded special program vouchers as noted below. 46 vouchers of the HA’s allocation are designated for use in three privately owned developments (Vail Place, Wayside, and Perspectives) and are referred to as project-based vouchers. The average income of voucher holder households in St. Louis Park is $18,847 which is below 30% AMI. HCV participants pay at least 30% of their income towards rent and can choose to pay up to 40%. The 2023 annual budget for HCV was $4,023,445. Despite the number of HCV units allocated to a Housing Authority by HUD, HAs are limited in the number of vouchers that can be administered by the annual funding allocated by HUD. Family Unification Vouchers (FUP) The Housing Authority (HA) was awarded 12 Family Unification Vouchers (FUP) at the end of 2019 and an additional 15 units in 2020. FUP is a program in which Housing Choice Vouchers (HCVs) are provided in order to lease decent, safe, and sanitary housing in the private housing market to: •Families for whom the lack of adequate housing is a primary factor in either: the imminent placement of the family’s child(ren) in out of home care or the delay in the discharge of the child(ren) to the family from out of home care. There is no time limitation on family FUP vouchers, or •Youth who are at least 18 years or and not more than 24 years old who: left foster care at age 16 or older to will leave foster care within 90 days and are homeless or at risk of homelessness. FUP vouchers used by youth were previously limited by statute to 36 months of housing assistance. The CARES Act has changed the limit to 60 months. The HA is partnering with Hennepin County on this program. 27 FUP vouchers were utilized in 2023. Foster Youth to Independence (FYI) – New vouchers awarded – 50% AMI and below The Foster Youth to Independence (FYI) initiative was announced in 2019. The FYI initiative allows Housing Authority’s who partner with a Public Child Welfare Agency (PCWA) to request targeted Housing Choice Vouchers (HCVs) to serve eligible youth with a history of child welfare involvement that are homeless or at risk of being homeless. Rental assistance and supportive services are provided to qualified youth for a period of up to 36 months. As part of the Consolidated Appropriations Act in 2021 the Fostering Stable Housing Opportunities (FSHO) amendment allows housing authorities to provide youth with an extension up to 24 months if they meet one of the statutory requirements, this extension allows the youth 60 months total on the FYI program. Statutory requirements include one of the following: participation in a Family Self Sufficiency Program, or youth who are required to care for a dependent child under age 6 or an incapacitated person, or are participating in drug or alcohol treatment, or are enrolled in an institution of higher education, or are participating in a job training program, or are employed. Hennepin County contacted the HA with a request to partner in the administration of the FYI program. The HA administers the rental assistance vouchers for the participants, while the county is responsible for providing or engaging service agencies to provide the required support services. The regulations overseeing the issuance and administration of the FYI rental vouchers are the same as those for Housing Choice Vouchers (HCV) with the exception of the 36-month limit on assistance, with extensions up to 24 months for eligible activities. HUD is the funding source for both the housing assistance and the administration fees for the program, similar to the HCV program. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 26 The program was initially only available to HAs that did not administer FUP vouchers, but it has since been expanded to all HAs with an HCV Annual Contributions Contract (ACC). Funding is available either competitively though an FYI Notice of Funding Availability (NOFA) or noncompetitively on a rolling basis. Hennepin County is receiving vouchers through the noncompetitive process. HAs are limited to 25 vouchers in a fiscal year with the ability to request an additional 25 vouchers for those HAs with 90 percent or greater utilization of these vouchers. The City of St. Louis Park was offered 25 vouchers. The first referral came in fall 2022. The SLPHA received 3 referrals in 2022 and all 3 youth were issued vouchers and leased up. As of December 31, 2023 SLPHA has been awarded 24 FYI vouchers and has leased up 17 of them and has searchers for the additional 7 vouchers. Mainstream The HA was awarded seven additional Mainstream vouchers via the CARES Act in 2020, adding to the eight mainstream vouchers awarded previously. 10 additional Mainstream vouchers were awarded in 2022 bringing the HA’s total number of MS vouchers to 25. These Mainstream vouchers provide vouchers to assist non-elderly persons with disabilities who are transitioning out of institutional or other segregated settings, at serious risk of institutionalization, or at serious risk of homelessness, or homeless. It was designed to further to the goals of the Americans with Disabilities Act (ADA) by helping persons with disabilities live in the most integrated setting. Families or individuals with a Mainstream voucher must have a household member at least 18 years of age and less than 62 years of age with a disability at the time of eligibility determination. 25 mainstream vouchers were utilized in 2023. Lou Park Apartments Lou Park is an apartment complex in St. Louis Park owned and managed by Bigos Management. Bigos notified tenants that in 2018 they would be completing a contract transfer of their 32 project-based units to another property. As of July 1, 2019, tenants were eligible to request to move to the new property or remain at Lou Park using an enhanced voucher administered by the St. Louis Park Housing Authority. This added 32 additional vouchers to the Housing Authority’s allocation. Initially, 31 tenants chose to utilize the tenant protection voucher at Lou Park. As of December 31, 2023, 20 remained at Lou Park, the remainder have chosen to use their voucher to move to a different complex. Perspectives Perspectives is a community non-profit organization located in St. Louis Park that provides supportive housing to low-income families that are homeless and are dual diagnosed (chemical and mental health diagnosis). Perspectives is one of the largest therapeutic supportive housing programs for women and children in Minnesota, housing approximately 75 women and 130 children and has been operational in St. Louis Park for 28 years. The HA has 22 project-based vouchers allocated to Perspectives. In December 2023 Perspectives notified the city and housing authority they were facing financial uncertainty. Residents were notified of these changes and provided with contact information for questions and assistance. The Housing Authority will continue to work with Perspectives and the project-based tenants as more information becomes available. If necessary, the project-based vouchers can be converted to tenant-based vouchers to assist the tenants in maintaining affordable housing. Wayside The Housing Authority (HA) has provided project-based vouchers (PBV) to Wayside House properties located at 1341 and 1349 Jersey Ave S since 2023. Wayside provides supportive housing and programming for women in recovery. Wayside currently has 16 project-based vouchers and they self- subsidize rents on four of their units. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 27 Table 10: HCV Lease-Up Report HCV (and special purpose voucher) Lease Up Report as of December 31, 2023 Utilized (leased and vouchers issued) Allocated Housing Choice Voucher 243 245 Project Based Vouchers (PBV) 32 36 Family Unification Program (FUP) *including 7 project-based vouchers 27 27 Lou Park (tenant protection vouchers) 19 NA Veterans Affairs Supportive Housing (VASH) 16 25 Foster Youth to Independence (FYI) 18 24 Mainstream *including 3 project-based vouchers 25 25 Total (99% utilized) 380 382 Port Ins 9 NA Stable HOME Rental Assistance Program – 50% AMI The Stable HOME program provides rent assistance to low-income singles and families who were homeless or would otherwise be at risk of homelessness. Rent assistance is limited to three years. During the three years, participants must establish good rental histories. They must also work to improve their earnings enough to where they do not need rental assistance or find a permanent subsidy program. The Stable Home program is administered by the Housing Authority, but participants are free to choose a rental unit anywhere in Hennepin County except Minneapolis. Participants are referred to the program by Hennepin County. This program is funded with federal HOME funds allocated to the county. 48 families throughout suburban Hennepin County were served by this program in 2023. Kids in the Park Rent Assistance Program – 50% AMI and below – city funded Kids in the Park provides rent assistance to households with school-age children for up to four years. Participants receive a flat, monthly rental assistance subsidy that decreases annually over the four-year period. Eligible households must have an income at or below 50% of the area median income, a child attending school in St. Louis Park, one parent or guardian that works a minimum of 28 hours per week, live in rental housing in St. Louis Park, and comply with their lease. Families with disabled and elderly heads of household do not need to comply with the work requirement. The program was developed in partnership with the St. Louis Park Emergency Program (STEP) and the St. Louis Park School District. The Kids in the Park program began serving 9 families in December 2017. Funding was increased for 2018 to serve 14, 2019 served 17 families and in 2020 that number increased to 20 families. In 2023, funding was increased so that 30 families were able to be served by Kids in the Park. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 28 7. Program descriptions Technical, Design, and Conservation Services Architectural Design Service – no income restrictions This service provides an architectural consultation for residents to assist with remodeling and expansions. Residents select an approved architect from a pool developed in conjunction with the MN Chapter of the American Institute of Architects. All homeowners considering renovations are eligible for this service; however, to ensure committed participants, residents make a $25 co-pay. Remodeling/Rehab Advisor – no income restrictions This service provides help to residents to navigate improvements to their homes (either maintenance or value-added improvements) by providing technical help before and during the construction process. All homeowners are eligible for this service regardless of income. Resident surveys indicated that homeowners valued the service and would recommend it to others. The city contracts with the Center for Energy and Environment (CEE) for this free service to homeowners. Home Energy Squad visit – no income restrictions The Home Energy Squad program is a comprehensive residential energy program designed to help residents save money and energy and stay comfortable in their homes. The program, which began in March 2012, is administered by the Center for Energy and Environment (CEE). Depending on whether the resident chooses a “Saver”-level visit or a “Planner”-level visit, the city pays 50 percent of the $70 or $100 visit and the resident pays the other 50 percent. The program leverages funds from Xcel Energy, Center Point Energy, and CEE. Free home energy visits are available to low-income households (which was updated in 2021 from 60% AMI to 80%). The city’s portion of the visit costs are funded using the Climate Investment Fund. The Home Energy Squad expert evaluates energy saving opportunities and installs the energy-efficiency materials the homeowner choses including door weather stripping, water heater blanket, programmable thermostat, LED light bulbs, high efficiency shower heads, and faucet aerators. They will also perform diagnostic tests including a blower door test to measure the home for air leaks, complete an insulation inspection, safety check the home’s heating system and water heater and help with next steps such as finding insulation contractors. All single family, duplex, triplex and quadplex homeowners are eligible. The Home Energy Squad visits qualify residents for CEE’s low interest financing and utility rebates, and they also notify residents of city loan and cost share opportunities. Annual Home Remodeling Fair The cities and school district community education departments of St. Louis Park, Hopkins, Minnetonka, and Golden Valley co-sponsor the annual home remodeling fair. The fair provides residents an opportunity to attend seminars, talk with vendors and city staff about permits, zoning, home improvement loans, and environmental issues related to remodeling. The fair is a self-sustaining event and vendor registration fees cover the costs. Home Remodeling Tour The annual tour is designed to meet the housing goal to remodel and expand single-family owner- occupied homes. The self-guided tour of six homes provides a showcase of a variety of home remodeling projects to provide ideas, information, and inspiration to other residents considering remodeling. Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 29 Construction Management Plan The city recognizes that many households are looking for larger homes and supports keeping families in the city. As a result, significant additions and/or tearing down of existing homes and rebuilding larger homes is becoming more common. Because St. Louis Park is a fully built community, these major additions and construction of new homes impacts the surrounding neighbors. Effective November 15, 2014, major additions (second story additions or additions of 500 square feet or more), demolitions and new construction need to comply with a Construction Management Plan (CMP) per City Code 6-71. Major additions, tear downs and new construction are required to send a written neighborhood notification to neighbors within 200 feet of the property. Demolitions and/or new construction also require a neighborhood meeting and signage. Financial Programs To encourage growing families to stay in St. Louis Park, the city has developed and implemented a number of programs toward this effort. Discount Loan Program – 115% AMI This program encourages residents to improve their homes by “discounting” the interest rate on the Minnesota Housing Finance Agency (MN Housing) home improvement loans for income eligible residents. Eligible improvements include most home improvement projects with the exception of luxury items such as pools. Implementation of discounting of MHFA loans began in late 1999 as a pilot project. In the past the city would buy down the interest rate for income eligible households. Since 2000 the interest rate has been below the buy down rates, so the city has not had to buy down the interest rate for this program in 2020 or 2021. Residents can apply through CEE to utilize this loan. Move – Up Transformation Loan – 120% AMI The purpose of this loan is to encourage residents with incomes at or below 100/115% of median area income ($120,600 for a family of one - four) to expand their homes. The program provides deferred loans for 25% of the applicant’s home expansion project cost, with a maximum loan of $35,000. The revolving loan pool will continue to fund future expansions. This loan requires significant upfront work by the residents, from deciding on the scope of the project to selecting contractors. Loan guidelines are: •Only residents making significant expansions are eligible. The minimum project cost must exceed $35,000. •The maximum loan amount is $35,000. •The loan has 0% interest with a carrying cost fee of 3% paid by the borrower which covers the lender’s administrative fee. •Loan is forgiven after 30 years if homeowner continues to live in the home. Emergency Repair Grant The city offers emergency repair grants for households below 50% area median income to make immediate emergency repairs such as furnace replacement, roof repair, plumbing or electrical emergencies, etc. This program is administered by Sustainable Resources Center (SRC). Study session meeting of April 24, 2024 (Item No. 5) Title: 2023 housing activity report Page 30 Meeting: Study session Meeting date: April 24, 2024 Written report: 6 Executive summary Title: Pre-eviction notice ordinance Recommended action: No action required at this time. Policy consideration: Does the council wish to amend City Code Section 8-335 to require a 30- day notice period? Summary: Since Feb. 1, 2021, in St. Louis Park, property owners/managers are required to provide a seven-day notice to renters before filing an eviction action alleging a material breach of the lease for nonpayment of rent or other unpaid financial obligations. In 2023, the Minnesota State Legislature enacted MN State Statute 504B.321 requiring a 14-day notice of eviction, effective Jan. 1, 2024. In response to this legislation, at the Oct. 23, 2023 city council study session staff recommended the city’s notice of eviction ordinance be amended to align with the state’s new 14-day notice of eviction requirements. Staff also recommended the notice be called a “pre-eviction notice” and that property owners/managers be encouraged to use a city-prepared pre-eviction form in multiple languages. Several city council members expressed interest in a 30-day notice and requiring use of the city-prepared pre-eviction form. The council directed staff to engage in further outreach to gather input on the potential impacts of both. Staff collected comments provided through a survey, attorney recommendations and eviction data from the Hennepin County eviction dashboard, as well as the State’s comprehensive process leading to a 14-day notice period. Staff also consulted with the city attorney on changes to the ordinance. Staff prepared a March 25, 2023 study session report seeking direction from council on preferred amendments to the ordinance. The majority of council members supported a 30-day notice and the city attorney recommended the city not require use of a city form for the notice. Following the council meeting staff consulted with the city attorney to draft an ordinance based on council direction. The purpose of this report is to provide a draft ordinance to council for review before the first reading of the ordinance. Financial or budget considerations: Staff time to implement and monitor the ordinance. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion, draft ordinance, Minnesota State Statute 504B.321 Prepared by: Marney Olson, housing supervisor Reviewed by: Karen Barton, community development director, Sean Walther, planning manager/deputy community development director Approved by: Kim Keller, city manager Study session meeting of April 24, 2024 (Item No. 6) Page 2 Title: Pre-eviction notice ordinance Discussion Background: Since Feb. 1, 2021, in St. Louis Park, property owners/managers are required to provide a seven-day notice to renters before filing an eviction action alleging a material breach of the lease for nonpayment of rent or other unpaid financial obligations. In 2023, the Minnesota State Legislature enacted MN State Statute 504B.321 requiring a 14-day notice of eviction, effective Jan. 1, 2024. In response to this legislation, at the Oct. 23, 2023 city council study session staff recommended the city’s notice of eviction ordinance be amended to align with the state’s new 14-day notice of eviction requirements. The council directed staff to engage in further outreach to gather input. Staff collected comments and consulted with the city attorney on changes to the ordinance. Staff prepared a March 25, 2023 study session report seeking direction from council on preferred amendments. The majority of council members supported a 30-day notice and the city attorney recommended the city not require use of a city form for the notice. Present considerations: Staff worked with the city attorney to draft an ordinance based on council direction from the March 25, 2023 study session. The majority of council members supported the 30-day notice. The city attorney recommended the council not require the use of a city form for the notice. Council members also expressed concern about renters knowing when the 30-day notice period ends, confusing/intimidating language in the notice, and renters knowing where/how to access resources. The ordinance will require the following be included in the notice: • Must be called a “pre-eviction notice”. • Must state that the landlord may file an eviction case if the tenant fails to pay the total amount due or move out within 30 days from the date of the notice, and such date must be included in the notice. • Must include, “If you need legal or financial help you may contact the resources listed in this pre-eviction notice.” • Must provide a description of how to access legal and financial assistance through information posted on the city’s website. The city ordinance is a supplement to state statute. Landlords are required to comply with state statute and city ordinance; therefore, the city ordinance only includes requirements that are supplementary to the state statue. In 2023, the Minnesota State Legislature enacted MN State Statute 504B.321 requiring a 14-day notice of eviction, effective Jan. 1, 2024. Subd. 1a. of the statute addresses the written notice. If council agrees with the staff and attorney recommendation to not require a specific city form, staff will work with the city attorney to provide a sample notice for the city website. Landlords are still responsible for ensuring compliance with state statute, city code and any other requirements that they may have. Next steps: First reading of ordinance May 6, 2024. Study session meeting of April 24, 2024 (Item No. 6) Page 3 Title: Pre-eviction notice ordinance Ordinance No. _____-24 Amending the St. Louis Park City Code Section 8-335 requiring 30 days written notice to tenant prior to initiating eviction proceedings The City of St. Louis Park Does Ordain: Section 1. The St. Louis Park City Code Chapter 8, Section 8-335 is amended as follows: Sec. 8-335. Notice required prior to initiating eviction proceedings. The City of St. Louis Park Does Ordain: (a) At least seven 30 days before bringing an eviction action alleging nonpayment of rent or other unpaid financial obligations in violation of the lease, an owner a landlord must provide written pre-eviction notice to the residential tenant specifying the basis for future eviction action. Any pre-eviction notice shall be titled “Pre-eviction notice” and shall: (b) For an allegation of nonpayment of rent or other unpaid financial obligations in violation of the lease, the Owner must include the following in the written notice: (1) The total amount due. (2) A specific accounting of the amount of the total due that is comprised of unpaid rents, late fees, or and other charges under the lease; and (3) The name and address of the person authorized to receive rent and fees on behalf of the owner. (c) A notice provided under this section must: (1) Provide a description of how to access legal and financial assistance through information posted on the city’s website. (2) state that the owner may bring an eviction action following expiration of the seven-day notice period if the tenant fails to pay the total amount due or fails to vacate. (1) State that the landlord may file an eviction case if the tenant fails to pay the total amount due or move out within 30 days from the date of the notice, and such date must be included in the notice. (2) Include the following statement: “If you need legal or financial help you may contact the resources listed in this pre-eviction notice.” Study session meeting of April 24, 2024 (Item No. 6) Page 4 Title: Pre-eviction notice ordinance (3)Provide a description of how to access legal and financial assistance through information posted on the city’s website. (d) The owner or an agent of the owner must deliver the notice personally or by first class mail to the address of the leased premises. If the tenant has agreed in writing, notice may be delivered by email to the residential tenant at the residential tenant’s email address on file with Owner. (e)(b) If the tenant fails to correct the rent delinquency within seven 30 days of delivery or mailing the date of the notice, or fails to vacate, the Owner landlord may bring an eviction action under Minn. Stat. § 504B.321. subdivision 1 based on nonpayment of rent. Section 2. This Ordinance shall take effect August 1, 2024. First Reading May 6, 2024 Second Reading May 20, 2024 Date of Publication May 30, 2024 Date Ordinance takes effect August 1, 2024 Reviewed for administration Adopted by city council _________ ____________________________________ ____________________________________ Kim Keller, city manager Nadia Mohamed, Mayor Attest: Approved as to form and execution: ____________________________________ ____________________________________ Melissa Kennedy, city clerk Soren Mattick, city attorney Study session meeting of April 24, 2024 (Item No. 6) Page 5 Title: Pre-eviction notice ordinance Minnesota State Statute 504B.321 In 2023, the Minnesota State Legislature enacted MN State Statute 504B.321 requiring a 14-day notice of eviction, effective Jan. 1, 2024. Subd. 1a. of the statute addresses the written notice. Subd. 1a. Written notice. (a) Before bringing an eviction action alleging nonpayment of rent or other unpaid financial obligation in violation of the lease, a landlord must provide written notice to the residential tenant specifying the basis for future eviction action. The notice must include: (1) the total amount due; (2) a specific accounting of the amount of the total due from unpaid rent, late fees, and other charges under the lease; (3) the name and address of the person authorized to receive rent and fees on behalf of the landlord; (4) the following statement: "You have the right to seek legal help. If you can't afford a lawyer, free legal help may be available. Contact Legal Aid or visit www.LawHelpMN.org to know your rights and find your local Legal Aid office."; (5) the following statement: "To apply for financial help, contact your local county or Tribal social services office, apply online at MNBenefits.mn.gov or call the United Way toll -free information line by dialing 2-1-1 or 800-543-7709."; and (6) the following statement: "Your landlord can file an eviction case if you do not pay the total amount due or move out within 14 days from the date of this notice. Some local governments may have an eviction notice period longer than 14 days." (b) The landlord or an agent of the landlord must deliver the notice personally or by first class mail to the residential tenant at the address of the leased premises. (c) If the residential tenant fails to correct the rent delinquency within 14 days of the delivery or mailing of the notice, or the number of days required by a local government rule or law if the notice period prior to an eviction required by the local go vernment is longer than 14 days, or fails to vacate, then the landlord may bring an eviction action under subdivision 1 based on nonpayment of rent. Although a city form will not be required and therefore not referenced in ordinance, city staff will work with the city attorney to provide a sample notice for the city website. Landlords are still responsible for ensuring compliance with state statute, city code and any other requirements that they may have.