HomeMy WebLinkAbout2024/10/28 - ADMIN - Agenda Packets - City Council - Study Session
AGENDA
OCTOBER 28, 2024
6:00 p.m. Study session – Community Room
Discussion items
1. Statutory boards annual meeting preparation discussion
2. Disposition of public land
Written reports
3. Add single-family and owner-occupied duplexes as eligible properties for 4d
4. Inclusionary housing policy updates
5. Single-family rentals update
6. Quarterly development update – 4th quarter 2024
7. 2025 Social Services request for proposal update
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Meeting: Study session
Meeting date: October 28, 2024
Discussion item: 1
Executive summary
Title: Statutory boards annual meeting preparation discussion
Recommended action: There is no action being requested today, this item is for discussion
purposes only.
Policy consideration: The council will discuss the following questions with representatives of
the city’s statutory board and commissions:
1. What has each commission been working on in 2024?
2. How can council best support your commission in the future?
Summary: The city council expressed a desire to play a more significant role with boards and
commissions. In response, staff has organized a conversation with 3 statutory boards and
commissions as the start of new opportunities and interactions between the council and boards
and commissions. These statutory boards are governed by the city council’s rules and
procedures, as outlined in Chapter 2 of the St. Louis Park City Code, and their members are
appointed by the city council.
This conversation will serve the same purpose as the Sept. 16, 2024 special study session
conversation with the city’s five advisory boards. The goal of this conversation is for the council
to hear from boards and commissions what they are working on and how they might work
together better going forward. The insights gathered will help council members set future
priorities for them.
Financial or budget considerations: No, there are no financial or budget considerations for this
item.
Strategic priority consideration: Not applicable.
Supporting documents: Discussion
Planning commission and BOZA work plan 2023-2024
Planning commission and BOZA accomplishments 2023-2024
Housing Authority Five-Year PHA plan 2025-2029
Prepared by: Pat Coleman, community engagement coordinator
Reviewed by: Cheyenne Brodeen, administrative services director
Approved by: Kim Keller, city manager
Study session meeting of October 28, 2024 (Item No. 1) Page 2
Title: Statutory boards annual meeting preparation discussion
Discussion
Background:
During a study session on May 20, 2024, council members discussed the following policy
consideration: How should the council provide policy direction to statutory boards and
commissions? This question stemmed from previous council directives, where members
expressed a desire to play a more significant role with boards and commissions. A key part of
the discussion focused on the nature and frequency of interactions between the council and
the statutory bodies. As the conversation evolved from past practices to exploring new
opportunities for engagement, the following points emerged:
• The council agreed on holding an annual meeting with boards and commissions to
discuss priorities.
• The council supported one-on-one meetings with commissions to discuss their systems
approach and work plans.
Several factors, such as the COVID-19 pandemic and a recent redesign project, influenced the
changes in past interactions. Now that the council has made a final decision on the redesign
project, board and commission members have expressed a need for more engagement with the
council.
Present considerations:
Today’s study session will serve as the start of new opportunities for interaction between the
council and members of the city’s statutory boards and commissions: fire civil service, housing
authority, planning commission/board of zoning appeals. The discussion will center on the
following questions:
1. What has each commission been working on in 2024?
2. How can the council best support your commission in the future?
This meeting will feature a roundtable format with one representative from each statutory
board and commission. Each commission will be given time to share what their group has been
working on in 2024. Then as a group will discuss how council can best support their
board/commission in the future. The insights and details gathered from this discussion will
provide the council with essential guidance as they set priorities for the boards and
commissions later this year.
Next steps:
Based upon the direction provided by council during this discussion and the discussion between
council and the five advisory boards on Sept. 16, 2024, staff will incorporate the information to
the design of the annual priority setting meeting with the council and boards and commissions
that will be held early next year. The priority setting meeting will in turn, provide guidance to
board and commission members as they are developing their 2025 work plans.
In 2025, boards will begin their annual one on one conversation with the council. Staff is in the
process of developing the 2025 systems calendar and will provide schedule to the council and
board and commissions later this fall.
Planning commission and board of zoning appeals work plan 2023-2024
Time Frame Initiative Strategic
Priorities
Purpose
(see last page for
definitions)
Ongoing Review development applications; hold study sessions and
hearings in order to make informed decisions and
recommendations to city council.
☐New Initiative☒Continued
Initiative☒Ongoing
Responsibility
☐1 ☐ 2☒3 ☐ 4☒5 ☐N/A
☐Commission
Initiated Project☐Council Initiated
Project☐Report Findings
(council requested)☒Formal
Recommendation
(council requested)
Ongoing Identify strategies to broaden participation and reduce
barriers to public participation.
☐New Initiative☒Continued
Initiative☒Ongoing
Responsibility
☒1 ☐ 2☐3 ☐ 4☒5 ☐N/A
☐Commission
Initiated Project☐Council Initiated
Project☐Report Findings
(council requested)☒Formal
Recommendation
(council requested)
Q1 2023 –
Q4 2024
Update light rail station area plans (Arrive + Thrive) ☐New Initiative☒Continued
Initiative☐Ongoing
Responsibility
☐1 ☒ 2☒3 ☒ 4☒5 ☐N/A
☐Commission
Initiated Project☒Council Initiated
Project☐Report Findings
(council requested)
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 3
☒Formal
Recommendation
(council requested)
Q2 2022 –
Q1 2025
Review residential districts, including two-family dwelling
units (twin homes and duplexes) on appropriately sized
lots in low density residential areas
☒New Initiative☐Continued
Initiative☐Ongoing
Responsibility
☐1 ☐ 2☒3 ☐ 4☐5 ☐N/A
☐Commission
Initiated Project☒Council Initiated
Project☐Report Findings
(council requested)☒Formal
Recommendation
(council requested)
Q2 2022 –
Q1 2025
Increase densities and housing options on high frequency
transit routes and near rail stations
☒New Initiative☐Continued
Initiative☐Ongoing
Responsibility
☐1 ☐ 2☒3 ☐ 4☐5 ☐N/A
☐Commission
Initiated Project☒Council Initiated
Project☐Report Findings
(council requested)☒Formal
Recommendation
(council requested)
Q4 2022 –
Q1 2023
Review temporary use regulations ☒New Initiative☐Continued
Initiative☐Ongoing
Responsibility
☐1 ☐ 2☒3 ☐ 4☐5 ☐N/A
☒Commission
Initiated Project☐Council Initiated
Project☐Report Findings
(council requested)☒Formal
Recommendation
(council requested)
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 4
Q2 2025 -
Q2 2026
Transit oriented development zoning regulations (Arrive +
Thrive implementation)
☒New Initiative☐Continued
Initiative☐Ongoing
Responsibility
☐1 ☒ 2☒3 ☒ 4☐5 ☐N/A
☐Commission
Initiated Project☒Council Initiated
Project☐Report Findings
(council requested)☒Formal
Recommendation
(council requested)
Q2-Q3 2024 Hold a planning commission meeting at an off-site
location to foster community relationships.
☒New Initiative☐Continued
Initiative☒Ongoing
Responsibility
☐1 ☐ 2☐3 ☐ 4☒5 ☐N/A
☒Commission
Initiated Project☐Council Initiated
Project☐Report Findings
(council requested)☐Formal
Recommendation
(council requested)
Q3-Q4
2024
Racial equity and inclusion training. Possibly joint training
with other boards and commissions like ESC and police
advisory commission. Alternatively, staff will share
information or resources regarding the latest city policies
and activities that intersect with the planning
commission’s work plan.
☒New Initiative☐Continued
Initiative☐Ongoing
Responsibility
☒1 ☐ 2 ☐
3 ☐ 4 ☐ 5☐N/A
☐Commission
Initiated Project☐Council Initiated
Project☐Report Findings
(council requested) ☒Formal
Recommendation
(council requested)
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 5
Parking Lot
Items that are being considered by the board/commission but not proposed in the annual work plan. Council approval is needed if
the board/commission decides they would like to move forward with an initiative.
Initiative Comments:
Water conservation and
water recycling
Explore ways to encourage reduced water use, capture and reuse of storm water, and protect ground
water resources.
Housing analysis Explore setting policy targets for different housing types in the city based on present inventory and
unmet demand, and promote homeownership opportunities as well as inclusionary housing goals.
Transitional industrial
zoning district
This item was identified in the comprehensive plan. Several amendments have been made to the
existing industrial districts that reflect elements of this idea through applicant-driven requests in the
past two years. For this reason, it is a lower priority.
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 6
City of St. Louis Park Strategic Priorities
1. St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community
for all.
2. St. Louis Park is committed to continue to lead in environmental stewardship.
3. St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development.
4. St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and
reliably.
5. St. Louis Park is committed to creating opportunities to build social capital through community engagement.
Purpose: definitions
•Project initiated by the board or commission
Commission Initiated Project
•Project tasked to a board or commission by the city council
Council Initiated Project
•Initiated by the city council
•Board and commission will study a specific issue or topic and report its findings or comments to the city
council in writing
•No direct action is taken by the board/commission
Report Findings
•Initiated by the city council
•Board and commission will study a specific issue or topic and makes a formal recommendation to the city
council on what action to take
•A recommendation requires a majoirty of the commissioners' support
Formal Recommandation
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 7
Work plans may be modified, to add or delete items, in one of three ways:
•Work plans can be modified by mutual agreement during a joint work session.
•If immediate approval is important, the board or commission can work with their staff liaison to present a modified work
plan for city council approval at a council meeting.
•The city council can direct a change to the work plan at their discretion.
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 8
2023-2024 accomplishments
Key duties:
• Review development projects, planning studies and zoning amendments.
• Hold public hearings and make recommendations to the city council.
Activities:
• Zoning code changes!
o A zoning code audit in identified that over 95% residential districts is zoned for
single-family housing, which is one of the barriers to more housing options.
o We propose new neighborhood zoning districts wherein it will be legal to build up to
a three-unit dwelling in all residential areas of the city, along with other low-rise
housing types along transit corridors as aligned with the comprehensive plan. We
are also simplifying the code to be more user-friendly.
o 400+ people have shared 200+ comments through a variety of online and in-person
engagement opportunities. We also have 1300+ people signed up for zoning code
updates via email, indicating a high turnout of engaged residents.
• Planning commission reviewed 10 applications in 2023 and 20 in 2024. These included
several school district building projects, mixed-use and apartment developments, and
ordinances related to floodplain, breweries temporary uses and tree preservation.
• Board of zoning appeals reviewed a variance request and an appeal of a zoning
administrator determination.
2023-2024 work plan
Zoning code changes: Hold the public hearing for the comprehensive rezoning and associated
comprehensive plan amendments for the new neighborhood zoning districts. Next planning
commission will review the commercial zoning districts and performance standards.
Long range planning activities. Review and provide input on the updates to light rail transit
station area plans (Arrive + Thrive).
Review development applications: Highlights include Zelia on Seven, Achromatic 6013, Central
Community Center, Aquila School, Groves Academy and Wells Roadside.
Racial equity and inclusion:
• Identify strategies to broaden participation and reduce barriers to public participation.
Review notification methods, online opportunities to submit input, and consider when
providing translation services, transportation or childcare may be warranted.
• Participate in racial equity training, if offered.
• Hold a planning commission study session at an off-site location to foster community
relationships.
Opportunities for collaboration:
Include other bodies (e.g., environment and sustainability and police advisory commissions)
when conducting commissioner training.
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 9
This information is important! If you do not understand the information have someone translate it for you, or call the Housing Authority (HA) at
952.924.2579 to arrange for language assistance. Contact the HA if you or anyone in your family is a person with disabilities and you require a specific
accommodation to fully utilize our programs and services.
St. Louis Park Housing Authority • 5005 Minnetonka Blvd., St. Louis Park, MN 55416
www.stlouisparkmn.gov • Phone: 952.924.2579 • Fax: 952.924.2199 • TTY: 952.924.2518
Five-Year PHA Plan 2025 – 2029
The Housing Authority is required to submit a Five-year PHA plan to HUD. The following is the
mission, goals and objectives and progress report from the Five-year PHA Plan approved by the
Housing Authority Board 10/9/2024 and submitted to the U.S. Department of Housing and Urban
Development.
Mission. State the PHA’s mission for serving the needs of low-income, very low-income and extremely low-
income families in the PHA’s jurisdiction for the next five years.
The Housing Authority develops, integrates, and operates housing and housing assistance policies and programs to
ensure the availability of safe, affordable and desirable housing options that meet the diverse, lifecycle housing
needs of all the residents of St. Louis Park
Goals and Objectives. Identify the PHA’s quantifiable goals and objectives that will enable the PHA to serve
the needs of low-income, very low-income and extremely low-income families for the next five years.
Goal 1: Maintain or increase the availability of decent, safe and affordable housing in St. Louis Park.
Objectives:
•Maximize utilization of Housing Choice Voucher program funds and vouchers
•Continue to provide 159 public housing units within St. Louis Park
•Maintain high performer status for both the HCV and Public Housing programs
•Continue to apply for new funding, program opportunities and vouchers as they become available
•Administer the locally funded Kids in the Park rental assistance program
•Administer the Stable HOME rental assistance program for suburban Hennepin County
•Begin administering the Bring it Home Minnesota state rental assistance program expected in 2025
•Build strong relationships with landlords and property managers to encourage participation in rental
assistance programs and share information with their tenants the programs
Goal 2: Promote self-sufficiency and stabilize families.
Objectives:
•Administer a Family Self-Sufficiency Program
•Administer the ROSS program at Hamilton House
•Inform program participants of city and state homeownership programs
Goal 3: Administration of programs that support and/or promote a well-maintained housing stock using the city’s
housing rehab programs and homeownership programs.
Goal 4: Provide input on strategies to promote the creation and preservation of affordable rental and
homeownership options for low- and moderate-income households in St. Louis Park.
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 10
This information is important! If you do not understand the information have someone translate it for you, or call the Housing Authority (HA) at
952.924.2579 to arrange for language assistance. Contact the HA if you or anyone in your family is a person with disabilities and you require a specific
accommodation to fully utilize our programs and services.
St. Louis Park Housing Authority • 5005 Minnetonka Blvd., St. Louis Park, MN 55416
www.stlouisparkmn.gov • Phone: 952.924.2579 • Fax: 952.924.2199 • TTY: 952.924.2518
Progress Report. Include a report on the progress the PHA has made in meeting the goals and objectives
described in the previous Five-Year Plan.
Oversee the administration of the Housing Authority’s core federally funded rental assistance programs including
review and approval of program policies, ensuring sound fiscal policies and funding administration, approving the
submission of competitive grant applications to secure new and renewal funding and review and approval of the 5-
year capital improvement plan for the Public Housing properties.
i.Oversaw the fiscal and administrative integrity of HUD’s federally funded rental assistance programs
ensuring maximize utilization and administration at a level to maintain HUD’s High Performer Standard in
both the Public Housing and Housing Choice Voucher programs.
ii.Continued to support staff’s submission of competitive grants applications for HUD renewal funds to
ensure continuation of the Family Self-Sufficiency Program and the Resident Service Coordinator at
Hamilton House and the award of new vouchers. The St. Louis Park HA has historically been a “qualified
PHA” because we had a combined unit total of 550 or less public housing units and housing choice
vouchers. In 2024 the HA became a qualified agency because we exceed the 550 combined unit count
because of the additional vouchers the HA now administers. In the past 5 years the HA has added 83 new
vouchers from 323 to 406 vouchers in 2024. The following is the breakdown of new vouchers since the last
5 year plan: 12 FUP, 24 FYI, five (5) fair share, 17 mainstream, 25 VASH.
iii.Held the annual HA agency plan public hearing, received and reviewed comments from the tenant advisory
committee, reviewed and approved the HA’s capital improvement plans for the public housing properties
owned and managed by the HA.
iv.Continued to support HA partnerships to create and administer rental assistance opportunities with
Hennepin County, Wayside, Vail Place, STEP and the SLP School District to continue to seek future
opportunities to partnering
Oversee the administration of programs that support/promote a well-maintained housing stock using the city’s
housing rehab programs.
i.The board reviews and provides input to staff on the proposed annual allocation of the CDBG funds,
proposed modifications to existing housing programs and reviews approves initial and renewal of contracts
related to the administration of various housing programs.
Explore/support/provide input on strategies to promote the creation and preservation of affordable rental and
homeownership options for low-and-moderate-income households in the community including both new
construction and preservation of existing naturally occurring affordable housing.
i.The board reviews the annual housing activity report and provides input to staff on new and existing housing
initiatives and programs that create and preserve affordable housing.
Study session meeting of October 28, 2024 (Item No. 1)
Title: Statutory boards annual meeting preparation discussion Page 11
Meeting: Study session
Meeting date: October 28, 2024
Discussion item: 2
Executive summary
Title: Disposition of public land
Recommended action: Provide staff direction on disposition of certain parcels of publicly
owned land.
Policy consideration: Should city staff further consider selling or developing any of the four
properties listed below?
Summary: The city owns an assortment of properties to accomplish a variety of services and
functions. Sometimes, developers or members of the community request that the city consider
selling parcels for private use. Adopted city policy provides staff direction on how to respond to
many of these inquiries. However, there are some individual properties that do not fit neatly
into the policy for various reasons and need further direction.
There are likely competing goals and policies that council must balance and decide which is the
priority, and inevitably city priorities will evolve. Council may elect not to pursue any action, as
there may not be an immediate issue to resolve. However, this may leave decisions to future
councils and future staff to resolve and is not as proactive of an approach to determining the
appropriate goals and uses of these lands.
Council has expressed growing interest in seeing more home ownership opportunities in the
city, especially affordable opportunities that are well-suited for larger families with children,
intergenerational households and/or meet culturally specific housing needs. Some city-owned
land may be suitable for this purpose or to advance other strategic goals of the city.
Financial or budget considerations: None at this time. Depending on council direction, costs
may be incurred relating to future disposition.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
Prepared by: Sean Walther, planning manager/deputy community development director
Laura Chamberlain, senior planner
Reviewed by: Karen Barton, community development director
Approved by: Kim Keller, city manager
Study session meeting of October 28, 2024 (Item No. 2) Page 2
Title: Disposition of public land
Discussion
Background:
The city owns an assortment of properties to accomplish a variety of services and functions.
Sometimes, developers or members of the community request that the city consider selling
parcels for private use or development.
Adopted city policy established how different types of properties were to be evaluated,
establishing criteria and procedures around disposition requests. This was done in part because
previously each of these requests would be required to be evaluated by staff and presented to
the planning commission and city council. The policy allows for staff to review the policy ’s
objective criteria and provide timely responses or direction to interested parties. Temporary
use is the most common request. Few inquiries for permanent disposition proceed to formal
applications and requests.
Resolution No. 97-30 defines eligible land and eligible applicants for such requests :
• Lists procedures for permanent disposition by sale, as well as permanent disposition by
vacation, temporary public service use, and temporary private use
• Requires there to be no identified current or future public need for disposition by sale
• Establishes lower eligibility threshold for adjacent landowners
• Cannot have been obtained by the city through tax delinquency
• Cannot be guided in the comprehensive plan as park or open space
There are individual properties that may not fit neatly into the policy and need further
direction. Absent a formal request or immediate concern, these lands generally remain fallow
and unprogrammed. Eventually, if the city does not have a plan for the property, it increases
the likelihood someone else will approach the city with their ideas for the city’s land.
Undeveloped land in the city likely has challenges associated with it. These challenges may
include lack of services available to the site, title issues, poor soils, poor drainage, etc. Some of
these limitations may not be fully understood. Some land the city owns has purely natural
systems benefits to water quality and habitat and would be very difficult or inappropriate to
develop (e.g. large and high-quality wetlands, flood prone areas, etc.).
There are likely competing goals and policies that council must balance and decide which is the
priority. And over time the city’s priorities will evolve. Even land that is identified as not serving
any public purpose may be resource-intensive or too politically sensitive to dispose of and/or
change the use, especially if proposed to sell or develop the land for a non-public purpose.
In the early and mid-2000s the city disposed of several city parcels. The priority at the time was
to identify parcels that would be suitable for move-up single-family owner-occupied housing
that had at least three bedrooms, two bathrooms and a two-car garage. The process included a
community task force to review the land with staff and make recommendations to city council.
The city also sought the highest price it could get for the land and went through a sealed bid
process. The revenues from the land sales did not fully cover the city’s expenses related to the
process. It did result in new housing, reduced the amount of city-owned land, reduced
Study session meeting of October 28, 2024 (Item No. 2) Page 3
Title: Disposition of public land
operational costs to maintain the lots and returned the land to the tax rolls. It also sparked
neighborhood opposition or concerns and a “protect our parks” lawn sign campaign, even
though the subject parcels were not dedicated as park land. To address concerns, the city
created a parks and open space zoning district, rezoned most of the city-owned park land in the
city, and adopted an ordinance that requires a supermajority to rezone land that is zoned park
and open space.
Present considerations:
Staff seeks direction on a few sites that may deserve council’s consideration for future
disposition. For each of these parcels, staff is asking council to consider the following questions :
1. Are there specific uses and priorities that council expect s we consider when developing
the process?
2. Does council want staff to develop a process to explore selling any of these parcels?
3. Does council want to take no action?
4. What other information would council need to provide staff direction?
Staff will share some basic information about the parcels and describe any inquiries that staff
have received or are aware of. Staff will also share our initial recommendations, if any, related
to each site.
The properties staff are drawing attention to in this discussion include 9258 Club Road, 3940
France Ave. S., 2800 Toledo Ave. S., and 16XX Quentin Ave. S.
Study session meeting of October 28, 2024 (Item No. 2) Page 4
Title: Disposition of public land
Cedar Manor Park
Site information
Property at 9258 Club Rd.
Site area (acres): 5.46 acres.
Current use: Surrounding land uses:
Open space North: Single-unit detached residential
East: Cedar Manor Park and lake
South: Park Spanish Immersion
Elementary School
West: Highway 169
Current 2040 land use guidance Current zoning
PRK - park and open space R-1 single-family residence
Site features
• The northern portion of the property is lowland containing wetlands and is in the FEMA
special flood hazard area.
Study session meeting of October 28, 2024 (Item No. 2) Page 5
Title: Disposition of public land
• The upland area of the site is heavily wooded with significant trees, including an Oak
Savannah which may be the last remaining grove in St. Louis Park.
• Between the lowlands and uplands are steep slopes through much of the site.
• Access to the parcel is challenged. There is no suitable direct road access to the site.
Access roads would need to be built. This would require land and/or easement
acquisitions, potentially over city park or school property and/or MNDOT (highway right
of way).
• There is not sanitary sewer service to the site.
• The property is used for passive recreation and walking trails. Woodchip trails are
maintained by the city on the property.
Background
There was an application in 1992 by a developer to fill the floodplain and make part of the
property, which was ultimately not approved. In 1993, the city purchased the parcel after
determining it was in the city’s best interests to extend Cedar Manor Park. This helped resolve
pending legal challenges to the city and developer, the inability of the proposed development
to meet wetland regulations and complications with Minnesota Department of Transportation
(MNDOT) regarding access.
In 2019 representatives from a local church and church members with a development
background approached the city about developing the site with a mixed-use building. The
church wanted to operate an affordable daycare and partner with a developer that would
manage an all-affordable apartment building.
Discussion
• Under the policy, the property would not be eligible for sale because of the
comprehensive plan designation.
• Discussion question:
o Should staff initiate rezoning the property to park and open space district as part
of the upcoming proposed zoning code update?
Study session meeting of October 28, 2024 (Item No. 2) Page 6
Title: Disposition of public land
40th & France
Site information
Property at 3940 France Ave. S.
Site area (acres): 4.77 acres.
Current use: Surrounding land uses:
Playfields (Minikahda Vista Park)
City of Minneapolis pump house
Open space
North: single unit detached residential
East: single unit detached and two-unit
residential
South: City boundary, expanded Weber
Pond (Edina’s Morningside flood
infrastructure project), trails
West: Morningside Park, private school
grounds
Current 2040 land use guidance Current zoning
PRK - park and open space R-2 single-family residence
Site features
• Part of the parcel is in the FEMA special flood hazard area, including the western 1/3
west of the tree line, and an area on the south adjacent to Weber Pond in Edina.
• The upland area is fill material that includes construction debris according to soil
borings.
Study session meeting of October 28, 2024 (Item No. 2) Page 7
Title: Disposition of public land
• The upland area and slopes on the property are heavily wooded area. A tree survey
would be required to determine how many would be considered significant or heritage
trees by city code.
• The western lower portion is used as the ballfield field for Minikahda Vista Park.
• City of Minneapolis pump house and an easement in southeast corner
• City of St. Louis Park has a storm water main along the west and north property lines
• The site includes informal trails that connect to Minikahda Vista Park, Weber Pond and
Weber Park.
Background
For decades, the city leased the west half of the site from the City of Minneapolis for park use
(the ballfield) for $1 per year. Weber Woods in Edina was popular with area for surrounding
residents and their pets to visit for informal walking trails in a natural area. The City of
Minneapolis approached both cities about selling the properties ten years ago. Neighborhood
meetings at the time included discussion about whether residents thought the cities ought to
purchase the land and for what purpose. Residents expressed interest in preserving the area for
park, formalizing it as an off-leash dog park with improvements, along with discussions of
developing a small portion of the site near France Avenue for housing. For Edina, there was
attention also to ongoing flooding issues that houses in Edina and Minneapolis experienced
regularly. The consensus from attendees was widespread support to purchase and control the
properties.
St. Louis Park City Council had concerns and less consensus about the outlay for the purchase.
While the council ultimately decided to support buying the land, it was important to the council
to obtain the land without restriction on the use to potentially recover some of the city’s costs
to purchase.
• In 2016, the city council agreed to purchase the property from the City of Minneapolis
(Resolution No. 16-059)
o Minneapolis sold 4.77 acres to City of St. Louis Park and 9.77 acres to City of
Edina.
o City of Minneapolis retained an easement to access and maintain the pump
house, which is still on the property.
o St. Louis Park bought the property for $609,813 from the park improvement
fund and without restrictions on the use.
o At the time, the council wanted to preserve the ability to sell a portion of the site
for future development to recover some or all of the city’s acquisition costs and
retain the remainder for park purposes .
• In 2022 – 2023, the City of Edina completed its Morningside Flood Infrastructure Project
o Expansion of Weber Pond and the Lynn/Kipling Pond to accommodate flood
storage and reduce flooding impacts on adjacent neighborhood
o Approximately 6 acres of trees were removed within Weber Park to
accommodate the pond expansion.
o Installation of paths, bridge crossings, and nature trails throughout the project
area.
Study session meeting of October 28, 2024 (Item No. 2) Page 8
Title: Disposition of public land
A developer has expressed interest in a medium density housing development on the property
that would create affordable owner-occupied housing units.
The proposed zoning code update would rezone every residential district in the city. This site is
presently shown in the draft maps as changing from R -2 single family residential to N-1
neighborhood district. However, all the parcels along France Avenue north of this site are
shown as N-2.
The N-1 district is intended for mostly house-scale buildings located among neighborhood
streets, along portions of multi-modal streets, and farther from commercial and employment
centers than other districts. Proposed housing types include single-unit dwelling, courtyard
cottages/bungalows, two-unit dwelling (duplex), attached two-unit dwelling (twinhome), three-
unit dwelling, and manufactured home park.
The N-2 district is intended for low-rise scale buildings in neighborhood areas primarily adjacent
to transit-priority streets, multi-modal streets, and neighborhood commercial nodes. In
addition to the housing types allowed in the N-1, it would also allow four-unit dwellings, small
townhouse buildings (up to four units per building), and low-rise apartment buildings (up to
three stories) as currently proposed.
Map of the proposed zoning.
Discussion
• Under the current policy, the property would not be eligible for sale because of the
comprehensive plan designation as park open space.
• The council discussions at the time of the purchase added some uncertainty about the
long-term intentions of the city for this land and preserved flexibility to develop a
portion of the site provided the city council amends the comprehensive plan to change
the land use designation.
• Discussion questions:
o Should the eastern half of the property at 3940 France Ave be considered for
future residential development? Should the whole property be considered part
of Minikahda Vista Park?
Study session meeting of October 28, 2024 (Item No. 2) Page 9
Title: Disposition of public land
28th & Toledo
Site information
Property at 2800 Toledo Ave. S.
Site area (acres): 0.81 acres.
Current use: Surrounding land uses:
Open space North: 28th Street, single-unit detached
houses
East: Toledo Avenue, single-unit
detached houses
South: park, Rock Island, vacant city
right-of-way beyond
West: noise wall, Highway 100
Current 2040 land use guidance Current zoning
ROW - right of way R-2 single-family residence
Study session meeting of October 28, 2024 (Item No. 2) Page 10
Title: Disposition of public land
Site features
• Wooded along the streets north and northeast sides of the property. There is a line of
mature lilacs shrubs along part of the east side of the site.
• MNDOT native grasses mix planted in the open areas of the site.
• City trail along Toledo Avenue on the east side of the site.
Background
This site has been tied to Highway 100 and part of the right-of-way until recently with the
property in MNDOT ownership and used to include the northbound highway on-ramp. In 2021,
much of the low-lying vegetation was cleared and replanted with native grasses . MNDOT
preserved many of the trees along city streets and approximately five trees in the middle of the
site.
The noise wall installed with the Highway 100 improvements completely visually separated this
land from the highway and whatever contribution it had to the viewshed from motorists on
Highway 100. It also screened the highway entirely from the surrounding residential uses , as
well as reducing noise impacts from the highway as the name implies. After the improvements
to Highway 100 were complete, MnDOT identified this land as excess right-of-way eligible for
conveyance and offered to sell it to the city.
• Resolution No. 23-059 approved the acquisition of real property from MnDOT for the
fair market value of $187,000 from the development fund and without restrictions on
the use.
• Adjacent property to the south was acquired by the city (Resolution No. 23-058) from
MnDOT for $0, with the stipulation that the property be used only for public open space
or park uses. The Rock Island rock garden remnants from the former MNDOT wayside
rest is entirely on this south lot and now guided and zoned park and open space.
The city is aware of varying interest in the property. The people involved with Restore Lilac Way
celebrated the council’s decisions to both of the above parcels and the designation of the south
parcel as park. They are also waiting for a community engagement process related to the north
parcel and their interest appears to be preservation of the land as park and open space. The
city has also been approached with interest from members of the Jewish community regarding
housing options for members of the area synagogues. The team of Greater Minnesota Housing
Corporation and Homes Within Reach that are working with the city on the Minnetonka Blvd
Twin Home development expressed interest for development of this or other sites for
affordable owner-occupied housing, understanding that it was on hold for now but could
become available.
The proposed zoning code update would rezone every residential district in the city. This site is
presently shown in the draft maps as changing from R -2 single family residential to N-1
neighborhood district.
Study session meeting of October 28, 2024 (Item No. 2) Page 11
Title: Disposition of public land
The N-1 district is intended for mostly house-scale buildings located among neighborhood
streets, along portions of multi-modal streets, and farther from commercial and employment
centers than other districts. Proposed housing types include single-unit dwelling, courtyard
cottages/bungalows, two-unit dwelling (duplex), attached two-unit dwelling (twinhome), three-
unit dwelling, and manufactured home park.
Map of the proposed zoning.
Discussion
• Under the policy, the property would not yet be eligible for sale because the property is
within right-of-way.
• This parcel offers an opportunity to create new ownership housing units in the city.
• Discussion questions:
o Should the property at 2800 Toledo Ave. S. be considered for future residential
development/sale? Should the whole property be considered part of the park
land to the south?
Study session meeting of October 28, 2024 (Item No. 2) Page 12
Title: Disposition of public land
Quentin & Old Cedar Lake Rd
Site information
No address: 16XX Quentin Ave. S
Site area (acres): ~1.95 acres.
Current use: Surrounding land uses:
Open space North: 16th Street, city boundary, single-
unit detached houses
East: single-unit detached houses
South: Old Cedar Lake Road, apartments
West: Dead end road, frontage road,
noise wall, Hwy. 100
Current 2040 land use guidance Current zoning
ROW - right of way R-2 single-family residence
Site features
• Dead end stub of Quentin Avenue
• Portion of block has an existing alley that serves properties on Princeton Avenue
• Dense shrubs west of Quentin Avenue dead end, around a dozen significant trees along
the boulevard of Quentin Avenue, another dozen significant trees east of the Quentin
Avenue.
Study session meeting of October 28, 2024 (Item No. 2) Page 13
Title: Disposition of public land
• Densely wooded on the northern portion of the lot between the alley and frontage road
south of 16th Street.
• City sanitary and water service run underneath Quentin Avenue dead end. City storm
sewer runs from the ally to frontage road. All services are available to the site.
• Presents an opportunity to develop ownership housing.
Background
This land was excess right-of-way turned back to the city by MNDOT as part of the turnback of
Wayzata Boulevard many years after I-394 was constructed. Staff has done little research to
draw from to further inform the council at this time.
The proposed zoning code update would rezone every residential district in the city. This site is
presently shown in the draft maps as changing from R -2 single family residential to N-2
neighborhood district.
The N-1 district is intended for mostly house-scale buildings located among neighborhood
streets, along portions of multi-modal streets, and farther from commercial and employment
centers than other districts. Proposed housing types include single-unit dwelling, courtyard
cottages/bungalows, two-unit dwelling (duplex), attached two-unit dwelling (twinhome), three-
unit dwelling, and manufactured home park.
The N-2 district is intended for low-rise scale buildings in neighborhood areas primarily adjacent
to transit-priority streets, multi-modal streets, and neighborhood commercial nodes. Proposed
housing types include single-unit dwelling, courtyard cottages/bungalows, two-unit dwelling
(duplex), attached two-unit dwelling (twinhome), three-unit dwelling, manufactured home
park, four-unit dwelling, small townhouse building (up to four units per building), and low-rise
apartment building (up to three stories).
Discussion
• Under the policy, the property would not yet be eligible for sale because the property is
within right-of-way.
• Should the property be further considered for development/sale?
Next steps:
Based on council direction, staff will prepare next steps for each of the parcels. Staff concluded
that a one-size fits all process for engagement was not appropriate and each of these deserves
a different level of engagement that will be based in part upon council’s direction. Some of
these could be advanced as part of the overall comprehensive plan and zoning map
amendments. Others will demand more research, engagement and council discussion.
Meeting: Study session
Meeting date: October 28, 2024
Written report: 3
Executive summary
Title: Add single-family and owner-occupied duplexes as eligible properties for 4d
Recommended action: No formal action required. This report is for informational purposes
only.
Policy consideration: Does the city council wish to expand the 4d affordable housing incentive
program to facilitate a broad range of affordable housing by including single-family rentals and
owner-occupied duplexes?
Summary: The city created a local 4d Affordable Housing Incentive program in 2019. The city’s
local 4d program allows qualifying properties to receive the 4d tax reduction in return for
agreeing to conditions which meet the city’s housing policy goals. To be eligible the owner of
the property must agree to rent and income restrictions for households at 60% of area median
income (AMI) or below and receive “financial assistance” from federal, state or local
government. Participating owners must sign a commitment to keep at least 20% of units in
their building affordable for a term of at least five years. In return, the city pays the first year
application fee to the State of Minnesota for certification of the 4d property tax classification
($10/unit) and offers a city grant in the amount of $200 per affordable unit, capped at $6,000
per property, for the cost of energy efficiency and healthy homes improvements as identified in
the energy audit or other property improvements as approved by the city. Owners participating
in this program must also agree to limit future rent increases to 5% or less annually for
residents in affordable units.
The current program is limited to rental properties with at least two rental units, excluding
single family rentals and owner-occupied duplexes. To facilitate a broad range of affordable
housing in the city, staff are updating the policy to allow single family rentals and duplexes
where only one side of the duplex is rented to enroll in the 4d program. A restrictive covenant
is placed on the property during the program period requiring the property to remain
affordable if it is sold. However, to support future affordable homeownership, the policy will
allow the city to release the 4d declaration of restrictive covenants if the property is sold to a
current tenant, another buyer with an income at or below 80% AMI, or a non-profit that will sell
the property to a buyer with an income at or below 80% AMI.
Financial or budget considerations: $20,000 has been budgeted in the affordable housing trust
fund for 4d in 2025. It is anticipated that adding these units will be able to be absorbed into the
program budget and will have a minimal impact to the city’s overall tax capacity.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: St. Louis Park 4d affordable housing incentive program guide draft
Prepared by: Marney Olson, housing supervisor
Katie Kline housing specialist
Reviewed by: Karen Barton, community development director
Approved by: Kim Keller, city manager
Study session meeting of October 28, 2024 (Item No. 3) Page 2
Title: Add single-family and owner-occupied duplexes as eligible properties for 4d
St. Louis Park 4d affordable housing incentive program guide
Due to recent housing, economic and demographic trends, St. Louis Park is in need of more
affordable housing. Already burdened low- and moderate-income tenants are increasingly
paying more than 30 percent of their income on rent and utilities. At the same time, many
rental property owners are faced with increased operating and maintenance costs, as well as
market opportunities to increase rents.
In response, the city is offering incentives for rental property owners to reduce property tax
liability, improve energy efficiency and address conditions of aging buildings , if present. The
goal is to preserve affordability, reduce energy use and enhance healthy homes to support
tenants and strengthen the bottom line for property owners.
Benefits to property owners
Qualified market rate building owners that agree to keep a minimum of 20 percent of units per
building affordable to households making 60 percent of area median income (AMI) for five (5)
years will receive:
• Five-year eligibility for 4d(1) property tax rate, which provides property tax reductions
on qualifying units.*
• City pays the first-year fee for the Minnesota Low Income Rental Classification (LIRC)
application, also known as 4d(1) tax classification ($10 per unit).
• $200 grant per affordable unit, capped at $6,000 per property.
• Free energy efficiency and healthy homes assessments available to buildings with five or
more units. Free or low-cost energy assessments are available to two-to-four-unit
properties.
• Utility rebates for energy efficiency and healthy homes improvement identified in the
free assessment.
• Reduced renter turnover.
• Lower maintenance and operating costs, if owners take advantage of opportunities to
make energy efficiency improvements to properties.
*Minnesota Statute 273.128 provides that qualifying low-income rental properties, including
those enrolled in the St. Louis Park 4d incentive program, are eligible for 4d (1) tax classification.
According to state statue, eligible units use the 4d(1) tax class rate of 0.25%. The regular rental
class rate of 1.25% will apply to the remainder of the property .
Eligibility guidelines
This program is intended for NOAH (Naturally Occurring Affordable Housing) properties that do
not currently have requirements to restrict rents.
Owners of multifamily properties that meet the following criteria:
• At least 20 percent of rental units in a building are affordable to households whose
family income is at or below 60 percent of the area median income (AMI).
• Existing tenants in units that have program-compliant rents do not need to be income
qualified.
• Income qualification for tenants is determined upon initial occupancy. Increased income
of tenants in affordable units will not violate program requirements.
Study session meeting of October 28, 2024 (Item No. 3) Page 3
Title: Add single-family and owner-occupied duplexes as eligible properties for 4d
• Licensed residential rental properties that have at least two rental units and are in good
standing with no code compliance violations.
• Single family rental homes can be enrolled in the 4d program. In order to support future
affordable homeownership opportunities, the city will release a 4d program declaration
of restrictive covenants only if the property is sold to a current tenant , another buyer
with an income at or below 80% of Area Median Income (AMI) or a non-profit
organization that will sell the property to a buyer at or below 80% AMI. Note: contract
for deed sale structures are not eligible for release of the restrictive covenant .
• Buildings can include units with owner occupants, but only rental units are eligible for
4d(1) tax status.
• Building does not already qualify for LIRC tax status in Minnesota.
The city will receive and review applications on an annual basis. The city expects to accept
applications January through late February. Properties will be selected based on city goals of
preserving housing affordability in neighborhoods throughout the cit y, subject to the
availability of city grant funds. The city reserves the right to deny any application and to
suspend or discontinue this program at anytime.
Note: The city reserves the right to deny applications for the 4d incentive program if the subject
property has outstanding code compliance issues or the owner or property manager applying
owns or manages other properties with outstanding code compliance issues.
Process and program requirements
Step 1 (required)
• Property owners submit a 4d program application and rent roll and sign a participation
agreement with the city. The participation agreement includes a commitment to accept
tenant-based assistance and affirmative fair marketing and prohibits involuntary
displacement of existing tenants.
• The city will draft and record a declaration against the property that limits the rents and
incomes on the qualified units for five (5) years (a recorded document is required for
4d(1) tax classification status). The declaration also limits rent increases for tenants in
affordable units to five percent or less annually, unless the unit is turning over to a new
tenant, or the owner provides evidence that a larger rent increase is needed to address
deferred maintenance or unanticipated operating cost increase s.
• City staff must approve an alternative schedule for rent increases.
• The city will provide a grant to each 4d(1) property in the amount of $200 per affordable
unit, capped at $6,000 per property. This funding is intended to help property owners
cover the cost of 4d(1) administrative and reporting requirements associated wit h the
program, as well as to help owners make health, safety, and energy efficiency
improvements to properties. Owners must certify to the use of the funds for the
property.
• Property owners will select the percentage of their building units to restrict, with a
minimum of 20 percent. After completing the five -year program, property owners can
request an extension up to five years with the option to reduce the percentage of
restricted units to a minimum level of 20 percent of the units per building.
• Property owners will sign a 4d application once declaration is filed.
Study session meeting of October 28, 2024 (Item No. 3) Page 4
Title: Add single-family and owner-occupied duplexes as eligible properties for 4d
• The city will submit a signed 4d application, application fee and declaration to
Minnesota Housing on behalf of the property owner for their first year. Owners are
responsible for submitting annual applications to Minnesota Housing to renew 4d(1) tax
status. See “annual owner compliance” for additional information. Owners are
responsible for complying with any state requirements for 4d(1) tax classification status,
including certifying to the use of any Property Tax Savings for Eligible Uses. Information
regarding Eligible Uses can be found on the MN Housing LIRC program website.
Step 2 (required)
Properties must complete an energy assessment and meet with city staff to discuss energy
efficiency improvements and available rebate packages.
• Owners of five or more unit buildings: sign up for the Multi -Family Building Efficiency
Program through Xcel Energy and CenterPoint Energy, and complete a free energy
assessment to receive a report of recommended improvements.
• Owners of two one to four-unit properties: sign up to receive a free or low-cost energy
assessment from the Home Energy Squad.
Benefits to owners:
• A free energy assessment, including free installation of energy saving products such as
LED light bulbs, high-efficiency water devices, smart power strips and door sweeps
throughout common areas and resident units.
• Implementation support and guidance over the two-year Multi-Family Building
Efficiency program.
• Bonus rebates of up to 60% on any qualifying projects completed through the program.
Step 3 (encouraged)
Following the free energy assessment, property owners can choose from a variety of energy
efficiency, weatherization or healthy homes improvements and may qualify for utility company
subsidies and rebates that can cover between 25 percent and 90 percent of costs.
Benefit to owners:
• Public recognition for your partnership with the city.
• Financial assistance to help cover the cost of energy efficiency upgrades.
Modifications to declarations
• The declaration for the 4d program commitments runs with the property. Anyone
buying and selling 4d property should contact Katie Kline at kkline@stlouisparkmn.gov
or 952.928.1314 to complete an assignment, assumption and consent form transferring
the declaration to the new owner.
• Any other changes to the declaration, such as revisions to the Exhibit B document
specifying which units in the building are restricted, should also contact Katie Kline.
What does annual owner compliance involve?
To continue to receive 4d status, property owners are required to submit:
• An annual 4d application to Minnesota Housing
• An annual report to the City of St. Louis Park
Meeting: Study session
Meeting date: October 28, 2024
Written report: 4
Executive summary
Title: Inclusionary housing policy updates
Recommended action: No formal action required. The purpose of this report is to inform
council of proposed amendments to the inclusionary housing policy.
Policy consideration: Does the council support the proposed amendments to the inclusionary
housing policy?
Summary: The inclusionary housing policy was first approved in June 2015 and has been
amended several time to improve its efficiency and effectiveness in meeting the city’s goals.
The inclusionary housing policy is directly responsible for the creation of nearly 700 affordable
rental units in St. Louis Park and is achieving the goal of creating affordable housing
opportunities in the community. Staff regularly monitor the implementation of the policy and
make appropriate recommendations to amend the policy as needed. The current policy
requires new market-rate multifamily residential rental properties with ten or more units that
receive financial assistance from the city, seek PUD land use approvals, or request a
comprehensive plan amendment to include units affordable to low-income households in the
development. In the case of a for-sale property, developers are required to make a payment to
the city in lieu of including affordable units in the project. Given recent council feedback, staff
will be scheduling a future conversation with council to discuss the inclusionary housing policy.
In the interim, staff can incorporate that feedback as the policy is implemented. Staff is,
however, recommending the following amendments to the policy at this time as they have
been proven challenge areas and have been fully vetted:
• Eliminating the comprehensive plan amendment as a requirement for complying with
the policy,
• Setting a per unit cap on the payment in lieu for affordable homeownership
developments, and
• Additional updates that provide clarity to developers in complying with the policy.
Financial or budget considerations: City staff time to implement, manage and monitor
compliance of the inclusionary housing policy as the number of developments subject to the
policy continue to increase.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion and inclusionary housing policy
Prepared by: Marney Olson, housing supervisor
Reviewed by: Karen Barton, community development director
Approved by: Kim Keller, city manager
Study session meeting of October 28, 2024 (Item No. 4) Page 2
Title: Inclusionary housing policy updates
Discussion
Background: 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.
As the policy has been implemented, staff have recommended and the council has approved a
number of updates to make it more effective in achieving the city’s goals. Updates to the
inclusionary housing policy since its adoption in 2015 include:
• 2017: Increased percentage of affordable units required and added a requirement that
developments covered by the policy must not discriminate against tenants who pay
their rent with government provided Housing Choice Vouchers or other public rent
subsidies.
• 2018: Increased percentage of required affordable units at 60% AMI, added a 30% AMI
option and changed the ownership to require a payment-in-lieu. Payment-in-lieu
provides the city the opportunity to create long-term affordable homeownership
housing, as opposed to the home being affordable to the initial buyer only. The income
limit eligibility for existing tenants was also amended in 2018 to be consistent with the
tax credit income limits.
• 2019: In an effort to expand the eligibility of developments obligated to comply with the
policy requirements, the policy was updated to include one-for-one replacement or
naturally occurring affordable housing units (NOAH) that would be lost due to
multifamily residential development. The policy was also updated to include market rate
multi-unit residential developments that seek PUD land use approvals or request a
comprehensive plan amendment.
• 2021: Based on the council’s interest in creating rental opportunities for larger size
families and the need to clarify language related to parking requirements, the policy
was updated to require developments with 50 or more units to include a minimum
number of family-sized units (three bedroom or larger) in the development. Parking
requirements were also updated in situations where underground or enclosed parking is
the only on-site parking option available for residents and requires a discount from the
market rate fee.
• 2023: Increased the affordability period to 26 years to be consistent with the
requirement for housing TIF districts, placed a cap on the payment in lieu equal to the
for-sale home purchase amount affordable to a household with an income at or below
80% AMI, allow staff to make administrative adjustments to the number of bedrooms in
the affordable units for senior developments, and added language around recorded
agreements, conditions and restrictions.
Study session meeting of October 28, 2024 (Item No. 4) Page 3
Title: Inclusionary housing policy updates
Inclusionary housing policy requirements
• Applies to developments with 10 or more units that receive financial assistance from the
city, seek PUD land use approvals or request a comprehensive plan amendment
• A minimum of 26 years affordability
• Bedroom mix of affordable units must reflect the market rate units
• Affordability level for rental units:
o 20% of units at 60% AMI, or
o 10% of units at 50% AMI, or
o 5% of units at 30%, and/or
o One-for-one replacement
o Family size unit requirement applies to developments with 50 or more units
o Requires at least one on-site parking stall provided for each affordable unit.
• Ownership: payment in lieu required
The current policy is achieving the desired goal of increasing affordable units in St. Louis Park.
Nearly 700 affordably units have been created under the policy to date. However, staff is
recommending several changes to clarify the policy for developers, allow greater flexibility to
achieve more deeply affordable units at 30% AMI, as well as ensure that the policy does not
deter homeownership development from occurring in St. Louis Park.
Staff’s recommended changes to the policy
• Remove comprehensive plan amendment as a requirement to comply with the
inclusionary housing policy. In the history of the policy, the city has not received a
development request that was solely for a comprehensive plan amendment.
Additionally, the mechanism of how the city would apply the policy to this type of action
alone is less clear than when associated with city financial assistance or a planned unit
development that includes a development agreement or other contract.
• Set the maximum payment in lieu amount per affordable unit at $100,000 so the policy
does not deter multifamily ownership development, including co-operatives in the city
but still provides sufficient payment into the AHTF to facilitate future affordable
housing.
• Insert language to reflect that the city will direct the unit affordability level based on
community need and the city’s identified goals and priorities. City staff currently work
with developers to determine the affordability levels and mix of units in each
development to advance the city’s priorities. This policy language captures what is
already in practice and demonstrates to developers that the city evaluates the need and
will provide direction to the developer towards achieving the city’s affordable housing
goals when implementing the inclusionary housing policy.
• Clarify parking requirements to ensure compliance with zoning code and specify that any
approved reduction in parking requirements must not disproportionately reduce parking
for the affordable units.
• Clarify the requirements of the Affordable Housing Plan and the requirement to comply
with the restrictive covenant related to the property. The current language was
confusing and did not accurately reflect how to comply with the Affordable Housing
Plan.
Study session meeting of October 28, 2024 (Item No. 4) Page 4
Title: Inclusionary housing policy updates
Affordability level chart: The chart below shows the number of units approved, under
construction and completed at affordability levels ranging from 30% AMI to 80% AMI.
Affordable units by bedroom size: The chart below shows the number of affordable units that
are approved, under construction and completed by bedroom size.
184 three bedroom and 7 four bedroom units have been completed, approved or are under
construction. 106 of the 184 three bedroom units are affordable and all 7 of the four bedroom
units are affordable. While the city cannot inquire about familial status, it is likely that the
affordable three and four bedroom units are occupied by families with children in order to
meet the income eligibility requirements. In addition, roommate situations in market rate
45
22
250381
Affordability Level
30%40%50%60%
82
243
260
106
7
Affordable units by bedroom size
Studio 1 BR 2 BR 3 BR 4 BR
Study session meeting of October 28, 2024 (Item No. 4) Page 5
Title: Inclusionary housing policy updates
developments offer affordable options for people who may not be able to afford a studio or
one bedroom rent on their own, but can afford the rent in a two or three bedroom apartment
when shared with roommates.
Affordable housing goals: As part of the decennial comprehensive plan update, the
Metropolitan Council provides affordable housing goals for the city over the upcoming 10-year
period. The city incorporates these goals into its planning efforts to facilitate achieving and/or
exceeding those goals. The Metropolitan Council affordable housing goal for St. Louis Park
between 2021 and 2030 is a total of 326 units broken down by 30%, 50% and 80% AMI.
Staff created and maintains a multi-family housing dashboard to provide current data on the
city’s progress towards achieving these goals. The Metropolitan Council does not count units
toward the goal until they are complete; however, the chart below shows the number of
affordable units completed and under construction since 2021:
Area median
income
Met Council
goal
Completed Under
Construction
Total completed and
under construction
compared to Met
Council AMI goals
30% AMI 169 (30% AMI
and below)
24 16 40
40% AMI N/A 22 0 N/A
50% AMI 98 (31%-50%
AMI)
185 27
234*^
60% AMI N/A 241 17 N/A
80% AMI 59 (51%-80%
AMI)
0 0
258*~
Total 326 472 60 532*
*Goal met
^Includes 50% and 40% AMI units; Met Council’s goal includes units between 31% and 50% AMI
~Includes both 80% and 60% AMI units; Met Council’s goal includes units between 51% and
80% AMI
The adoption and implementation of the city’s inclusionary housing policy, affordable housing
trust fund, and use of tax increment financing have led directly to the success of exceeding the
Met Council’s goals for the creation of affordable housing at 80% and 50% area median income,
as well as the creation of units affordable at 60% AMI and 40% AMI. 30% AMI continues to be a
challenge to facilitate due to the extensive subsidies needed to create this level of affordability.
In addition to the 40 units at 30% AMI that have been completed or are currently under
construction, another 5 units at 30% AMI have been approved.
It should be noted that an effective means to provide housing at or below 30% AMI is using
housing assistance vouchers, such as Section 8/Housing Choice Vouchers (HCV). The housing
authority is currently administering 406 housing choice vouchers. The Housing Authority has
added 83 vouchers since 2020. Additionally, the State of Minnesota has provided funding for
Bring it Home, a state level rental assistance program that will add additional affordable
housing in St. Louis Park and throughout Minnesota. Minnesota Housing anticipates the request
for proposal for Bring it Home to open in early 2025. The Housing Authority will submit a
Study session meeting of October 28, 2024 (Item No. 4) Page 6
Title: Inclusionary housing policy updates
proposal for the full allocation offered by the state for our jurisdiction, currently estimated to
be 42 to 57 vouchers.
Rental units at all affordability levels as well as market rate units are valuable and support the
strategic priority of providing a broad range of housing and neighborhood-oriented
development. Rental assistance vouchers are an important tool to further affordable housing
opportunities for low to moderate income households. The creation of 50% AMI units create
opportunities for Housing Choice Voucher (HCV) participants to lease up in St. Louis Park.
Depending on a tenant’s income and voucher bedroom size they may be able to utilize a
voucher in a 60% AMI unit.
Compliance: St. Louis Park is unique in having staff who can monitor compliance and ensure
that the affordable units being developed by the inclusionary housing policy are using the
correct rents and are correctly determining eligibility of households based on income. Staff use
several strategies to develop relationships between property management and the city
including education. Through education, outreach and relationship building, the inclusionary
units developed in St. Louis Park have resulted in substantial compliance with the inclusionary
housing policy.
Next steps: Staff will bring the amended inclusionary housing policy to a future city council
meeting for adoption. Upon approval of the amended inclusionary housing policy the new
requirements will become effective immediately for any future residential housing
developments required to comply with the policy.
Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
Inclusionary Housing Policy
This policy promotes high quality housing for households with a variety of income levels, ages,
and sizes in order to meet the city's goal of preserving and promoting economically diverse
housing options in our community.
The city recognizes the need to provide affordable housing to households of a broad range of
income levels in order to maintain a diverse population and to provide housing for those who
live or work in the city. Without intervention, the trend toward rising housing prices in new
developments will continue to increase. As a result, this policy is being adopted to ensure that a
reasonable proportion of each new development receiving city financial assistance, seeking
PUD land use approvals or requesting a comprehensive plan amendment include units
affordable to low-and-moderate income households and working families or in the case of for-
sale units, make a payment in lieu of including affordable units.
The requirements set forth in this policy further the city’s housing goals and the city’s
comprehensive plan to create and preserve affordable housing opportunities. These
requirements are intended to provide a structure for participation by both the public and
private sectors in the production of affordable housing.
I.Applicability and minimum project size
This policy applies to market rate multi-unit residential developments that receive financial
assistance from the city or, seek planned unit development (PUD) land use zoning approvals
or request a comprehensive plan amendment, and includes:
a.New development that create at least 10 multi-family dwelling units; or
b.any mixed-use building that creates at least 10 multi-family dwelling units; or
c.renovation or reconstruction of an existing building that contains multi-family
dwelling units that includes at least 10 dwelling units; or
d.any change in use of all or part of an existing building from a non- residential use
to a residential use that includes at least 10 dwelling units.
The development must comply with the Inclusionary Housing Policy as amended and
approved by the city council as of the date the development enters into a development
agreement with the city or submits a planned unit development application for the project,
whichever action comes first.
II.Affordable dwelling units
General requirement
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 7
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
Rental developments and for-sale developments subject to this policy shall provide a
minimum number of affordable dwelling units or a payment in lieu subject to the
requirements listed below.
Calculation of units and payment in lieu required.
For development of multi-family dwelling units:
a. The required number of affordable dwelling units or corresponding payment in
lieu is based on the total number of dwelling units that are approved by the city
or the number of naturally occurring affordable housing (NOAH) dwelling units
that are being demolished or converted to a use other than low-income dwelling
units in connection with construction of the development.
b. To calculate the number of affordable dwelling units or payment in lieu required
in a development the total number of approved dwelling units shall be
multiplied by five percent (5%), ten percent (10%), fifteen percent (15%) or
twenty (20%) depending on the affordability standard. If the final calculation
includes a fraction, the fraction of a unit shall be rounded to the nearest whole
number
c. If an occupied rental property with existing dwelling units is remodeled and/or
expanded, the number of affordable dwelling units shall be based on the total
number of units following completion of renovation/expansion. At least five
percent (5%), ten percent (10%) or twenty percent (20%) shall be affordable,
depending on the affordability standard.
d. NOAH dwelling units that are being demolished or converted to a use other than
low-income dwelling units in connection with construction of the development
must be replaced in the new development on a one-for-one basis. New
developments must include a minimum number of affordable dwelling units
equal to at least five percent (5%) to twenty percent (20%) of the total number
of dwelling units in the development or the number of naturally occurring
affordable housing dwelling units that are being demolished or converted,
whichever is greater. Any deviation from replacing NOAH units on a one-for-one
basis requires city approval.
*A NOAH unit is defined as a unit in which the amount of rent charged is
affordable to a household whose income is at or below 60% area median income
based on bedroom size, or for a for-sale unit, affordable to a household whose
income is at or below 80% AMI.
e. For-sale home ownership developments will be required to pay a payment in lieu
of including affordable units in the development. The payment in lieu will be an
amount equal to the difference between the average market rate sale price of
the for-sale units in the development and the for-sale home purchase amount
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 8
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
affordable to a household with an income at or below eighty percent (80%) AMI,
not to exceed for-sale home purchase amount at the 80% AMI$100,000. The
amount of the difference will be multiplied by a number equal to fifteen percent
(15%) of the total number of for-sale units in the development. Home-ownership
housing is defined as a form of housing tenure in which a person, called the
owner-occupier, owner-occupant, or homeowner, owns the home in which they
live. The home can be a house, such as a single-family house, an apartment,
condominium, or a housing cooperative.
III. Affordability level
The required number of affordable dwelling units within a residential project subject to
this policy shall meet an income eligibility and rent affordability standard for the term of
the restriction as follows:
a. Rental Projects, the city will direct the unit affordability level based on
community need and the city’s identified goals and priorities:
1. At least twenty percent (20%) of the units shall be affordable for households
at sixty percent (60%) Area Median Income (AMI), or
2. At least ten percent (10%) of the units shall be at affordable for households
at fifty percent (50%) AMI, or
3. At least five percent (5%) of the units shall be affordable for households at
thirty percent (30%) AMI.
b. Demolished or converted NOAH units:
NOAH units demolished or converted to a use other than affordable housing in
connection with the construction of the new development must be replaced on a
one-for-one basis or at rate and affordability level as noted in III. a, whichever is
greater. The new units must be comparable in bedroom size to the units
demolished or converted and be affordable to households at 60% AMI or below.
*A NOAH unit is defined as a rental unit in which the amount of rent charged is
affordable to a household whose income is at or below 60% area median income
based on bedroom size or a for-sale unit affordable to a household whose
income is at or below 80% AMI. NOAH status for rental units will be based on
the rents charged on the date 6 months prior to the submitting of a
development application.
c. For-Sale projects:
For-sale home ownership developments will pay a payment in lieu of including
affordable units in the development. The payment in lieu will be an amount
equal to the difference between the average market rate sale price of the for-
sale units in the development and the current for-sale home purchase amount
affordable to a household with an income at or below eighty percent (80%) AMI.
The payment will be multiplied by a number equal to fifteen percent (15%) of
the total number of for-sale units in the development. NOAH pricing for for-sale
dwelling units shall be determined at time of issuance of the occupancy permit.
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 9
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
The master mortgage, in addition to the sale price, will be considered when
determining the payment in lieu for housing cooperatives.
d. Rent and sale price level
Rental unit: The monthly rental cost for an affordable dwelling unit shall include
rent, utility costs, and any other non-optional monthly occupancy charges.
Surface parking for all inclusionary units, if available, or enclosed parking for
inclusionary units at the 30% AMI affordability level shall also be included in the
monthly rent for the unit. The maximum rent amount shall be based on the
metropolitan area that includes St. Louis Park adjusted for bedroom size and
calculated annually by the Department of Housing and Urban Development and
posted by Minnesota Housing for establishing rent limits for the Housing Tax
Credit Program.
For-sale projects: The qualifying affordable sale price for an owner-occupied
affordable dwelling unit shall be based on a homeownership unit affordable to a
household with income at or below eighty percent (80%) AMI for the
metropolitan area that includes St. Louis Park calculated annually by the
Department of Housing and Urban Development and posted by the Metropolitan
Council.
e. Period of affordability
For rental developments subject to this policy, the period of affordability for the
affordable dwelling units shall be at least twenty-six (26) years.
IV. Family sized unit requirement
Developments with 50 units or greater are required to include a minimum number of three
bedroom or larger size units. The specific number of three bedroom or larger size units
required per development is based on the total number of units in the development as
noted in the table below.
Development size – total
residential units
Required Minimum Number of
three-bedroom or larger size
units
50 - 74 2
75 – 99 3
100 - 124 4
125 - 149 5
150 – 174 6
175 + 7
Developments that are 100% age restricted serving households 55 years of age or older are
exempt from this requirement. Any deviation from the family size unit policy requires city
approval.
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 10
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
V.Parking requirement
The Inclusionary Policy requires that at least one on-site parking stall, as identified by
Chapter 36 of the city code, (either surface or enclosed) be provided for each affordable
unit. If adequate on-site surface parking exists as determined by the city based on the
development’s parking plan, the requirement will be met by providing a surface parking
space at no additional cost to the tenant. If underground or enclosed parking is the only
on-site parking option available for residents, an enclosed parking stall must be offered to
the tenant at a discounted rate. The market rate parking fee will be discounted based on
the affordability level of the inclusionary units as follows:
Inclusionary affordability level Parking fee cost to resident
30 % AMI Free – iIncluded in rent
50% AMI 50% of the market rate fee *
60% AMI 60% of the market rate fee
*Example: if the market rate fee for parking is $100 per month, residents of inclusionary
units at
the 50% AMI affordability level will pay $50 per month.
For developments utilizing a combination of surface parking and enclosed parking to meet
the inclusionary parking requirements, a waiting list will be established, and parking
options will be offered based on the resident’s placement on the list. Only inclusionary unit
residents with a tenant owned vehicle are eligible for parking at no or a reduced charge.
City approval must be obtained for any proposed alternative to the parking requirements
noted in the policy. All developments must meet the zoning code parking requirements. If
a reduction in parking is granted, that reduction must not disproportionately reduce
parking for the affordable units.
VI.Location of affordable rental dwelling units
Except as otherwise specifically authorized by this policy, the affordable dwelling
units shall be located within the development.
VII.Standards for inclusionary rental units
Size and design of affordable units
The size and design of the affordable dwelling units should be consistent and comparable
with the market rate units in the rest of the project and is subject to the approval of the
city. The interior of affordable dwelling units is not required to be identical to the market
rate units but if units are smaller than the other units with the same number of bedrooms
in the development, city approval must be obtained.
If naturally occurring affordable housing dwelling units are being demolished or converted
to a use other than lower-income dwelling units in connection with construction of the
development, an equal number of affordable units with a comparable number of
bedrooms to the units demolished or converted must be included in the new development.
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 11
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
Exterior/interior appearance.
The exterior materials and design of the affordable dwelling units in any development
subject to these regulations shall be indistinguishable in style and quality with the market
rate units in the development. The interior finish and quality of construction of the
affordable dwelling units shall at a minimum be comparable to entry level rental housing
in the city. Construction of the affordable dwelling units shall be concurrent with
construction of market rate dwelling units.
VIII.Integration of affordable dwelling units
Distribution of affordable rental housing units
The affordable dwelling units shall be incorporated into the overall project unless
expressly allowed to be located in a separate building or a different location approved by
the city council. Affordable dwelling units shall be distributed throughout the building.
Number of bedrooms in the affordable units.
The affordable dwelling units shall have a number of bedrooms in the approximate
proportion as the market rate units. The mix of unit types, both bedroom and accessible
units, of the affordable dwelling units shall be approved by the city. Developments that are
100% age restricted serving households 55 years of age or older may propose an
alternative unit mix for consideration. Any deviation from this policy requires city council
approval and must be reflected in any request for city financial assistance.
Tenants
Rental affordable dwelling units shall be rented only to income eligible families during the
period of affordability. A household that was income eligible at initial occupancy may
remain in the affordable dwelling unit for additional rental periods as long as the income of
the household does not exceed one-hundred forty percent (140%) of the applicable AMI.
Affordable units must be administered in compliance with the rules and procedures stated
in St. Louis Park’s Inclusionary Housing Program Guide.
IX.Alternatives to on-site development of affordable dwelling units
This section provides alternatives to the construction of affordable dwelling units onsite.
The alternatives are listed in subsection (c), below.
a.The alternatives must be:
1.Approved by city council and
2.Agreed to by the applicant in an Affordable Housing Performance
Agreement with the city; and
3.Applicant must show evidence acceptable to the city that a formal
commitment to the proposed alternative is in place.
b.This section does not apply unless the applicant demonstrates:
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 12
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
1. The alternative provides an equivalent or greater amount of affordable
dwelling units in a way that the city determines better achieves the goals,
objectives and policies of the city’s housing goals and Comprehensive Plan
than providing them onsite; and
2. Will not cause the city to incur any net cost as a result of the alternative
compliance mechanism.
c. If the conditions of (b) are met, the city may approve one or more of the
following options to providing affordable dwelling units that are required by this
policy.
1. Dedication of existing units: Restricting existing dwelling units which are
approved by the city as suitable affordable housing dwelling units through
covenants or contractual arrangements. The city shall determine whether
the form and content of the restrictions comply with this policy. Off-site
units shall be located within the City of St. Louis Park. The restriction of
such existing units must result in the creation of units that are of equivalent
quality and size of the affordable dwelling units which would have been
constructed on-site if this alternative had not been utilized.
2. Off-site construction: Offsite construction of affordable units must be
constructed within the city and should be located in proximity to public
transit service at a site approved by the city.
3. Partnering with an affordable housing developer: Participation in the
construction of affordable dwelling units by another developer on a
different site within the city.
4. Proposed alternative: An alternative proposed by the applicant that directly
provides or enables the provision of affordable housing units within the city.
The alternative must be approved by the city and made a condition of
approval of the Affordable Housing Performance Agreement.
X. Non-discrimination based on rent subsidies
Developments covered by the policy must not discriminate against tenants who would pay
their rent with federal, state or local public assistance, including tenant based federal, state
or local subsidies, including, but not limited to rental assistance, rent supplements, and
Housing Choice Vouchers.
XI. Affordable housing plan
a. Applicability
Developments that are subject to this policy shall include an Affordable Housing
Plan as described below. An Affordable Housing Plan describes how the
developer complies with each of the applicable requirements of this policy.
b. Approval
1. The Affordable Housing Plan shall be approved by the city.
2. Minor modifications to the plan are subject to approval by the city manager.
Major modifications are subject to approval by the city council. Items that
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 13
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
are considered major and minor will be designated in the Affordable
Housing Plan.
c. Contents
The Affordable Housing Plan shall include at least the following:
1. General information about the nature and scope of the development
subject to these regulations.
2. For requests of an alternative to on-site provision of affordable housing,
evidence that the proposed alternative will further affordably housing
opportunities in the city to an equivalent or greater extent than
compliance with the otherwise applicable on-site requirements of this
policy.
3. The total number of market rate units, and for rental developments, the
number of affordable dwelling units in the rental development.
4. The floor plans for the affordable dwelling units showing the number of
bedrooms and bathrooms in each unit.
5. The approximate square footage of each affordable dwelling unit and
average square foot of market rate unit by types.
6. Building floor plans and site plans showing the location of each affordable
dwelling unit.
7. The pricing of each ownership dwelling unit shall be determined at time of
issuance of the occupancy permit. At time of sale this price may be
adjusted if there has been a change in the median income or a change in
the formulas used in this ordinance.
8. The order of completion of market rate and affordable dwelling units.
9. Documentation and specifications regarding the exterior appearance,
materials and finishes of the development for each of the affordable
dwelling units illustrating that the appearance of affordable units are
comparable to the appearance of the market-rate units.
10. An Affordable Dwelling Unit Management Plan documenting
Documentation of policies and procedures for administering the affordable
dwelling units in accordance with the Affordable Housing Performance
Agreement any Restrictive Covenants and the Inclusionary Housing
Program Guide.
11. Any and all other information that the city manager may require that is
needed to achieve the council’s affordable housing goals.
XII. Recorded agreements, conditions, and restrictions
a. An Affordable Housing Performance Agreement Restrictive Covenant shall be
executed between the city and a developer, in a form approved by the city
attorney, based on the Affordable Housing Plan described in Section VII, which
formally sets forth development approval and requirements to achieve affordable
housing in accordance with this policy and location criteria. The Agreement shall
identify:
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 14
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
b. The applicant or owner shall execute any and all documents deemed necessary by
the city manager, including, without limitation, restrictive covenants, and other
related instruments, to ensure the affordability of the affordable housing units in
accordance with this policy.
c. The applicant or owner must prepare and record all documents, restrictions,
easements, covenants, and/or agreements that are specified by the city as
conditions of approval of the application prior to issuance of a zoning compliance
permit for any development subject to this policy.
d. Documents described above shall be recorded in the Hennepin County Registry of
Deeds as appropriate.
e. Inclusionary Housing Program Guide: All affordable units in the affordable housing
performance agreement restrictive covenant will be managed and operated in
compliance with rules and regulations outlined in the Inclusionary Housing Program
Guide.
XIII. Definitions
Affordable Dwelling Unit: The required affordable dwelling units within a residential
project subject to this policy shall meet an income eligibility and rent affordability standard
for the term of the restriction as follows:
a. Rental Projects:
1. At least twenty percent (20%) of the units shall be affordable for households at
sixty percent (60%) Area Median Income (AMI), or
2. At least ten percent (10%) of the units shall be at affordable for households at
fifty percent (50%) Area Median Income.
3. At least five percent (5%) of the units shall be affordable for households at
thirty percent (30%) Area Medium Income.
b. For-Sale Projects:
The qualifying affordable sale price for an owner-occupied affordable dwelling unit
shall be based on a household income of eighty percent (80%) AMI for the
metropolitan area that includes St. Louis Park calculated annually by the
Department of Housing and Urban Development.
Home-ownership housing is defined as a form of housing tenure in which a
person, called the owner-occupier, owner-occupant, or homeowner, owns the
home in which they live. The home can be a house, such as a single-family house,
an apartment, condominium, or a housing cooperative.
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 15
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Adopted Jan. 17, 2023 Proposed Oct. 28, 2024
Affordable Housing Plan: A plan that documents policies and procedures for administering
the affordable dwelling units in accordance with the Affordable Housing Performance
Agreement any Restrictive Covenants and the Inclusionary Housing Program Guide.
Affordable Housing Performance Agreement: Agreement between the city and the
developer which formally sets forth development approval and requirements to achieve
Affordable Housing in accordance with this policy.
Affordable Housing Performance Agreement: Agreement between the city and the
developer which formally sets forth development approval and requirements to achieve
Affordable Housing in accordance with this policy.
Financial Assistance: The Inclusionary Affordable Housing Policy applies to all new and
renovated multifamily residential buildings receiving city financial assistance, seeking PUD
land use approvals or request an amendment to the comprehensive plan.
Financial Assistance is defined as funds derived from the city and includes but is not
limited to the following:
1. City of St. Louis Park Funds
2. Community Development Block Grant (CDBG)
3. City Housing Rehabilitation Funds
4. Revenue Bonds (private activity bonds are negotiable)
5. Tax Increment Financing (TIF) & Tax Abatement
6. Housing Authority (HA) Funds
7. Land Write-downs
NOAH units:
1. Rental units: A rental unit is defined as a NOAH unit if the amount of rent charged
is affordable to a household whose income is at or below 60% area median
income based on bedroom size.
2. Ownership unit: A for-sale unit is defined as a NOAH unit if the price of the home
is affordable to a household whose income is at or below 80% AMI.
Restrictive Covenant: Agreement between the city and the developer recorded with the
county which formally sets forth development approval and requirements to achieve
affordable housing in accordance with this policy.
Tenant paid rent: The monthly rent for an affordable dwelling unit shall include rent, utility
costs and any other non-optional monthly occupancy charges. Surface parking for all
inclusionary units if available and enclosed parking for inclusionary units at the 30% AMI
affordability level shall also be included in the monthly rent for the unit. The rent shall be
based on the metropolitan area that includes St. Louis Park adjusted for bedroom size and
calculated annually by the Department of Housing and Urban Development and posted by
Minnesota Housing for establishing rent limits for the Housing Tax Credit Program.
Study session meeting of October 28, 2024 (Item No. 4)
Title: Inclusionary housing policy updates Page 16
Meeting: Study session
Meeting date: October 28, 2024
Written report: 5
Executive summary
Title: Single-family rentals update
Recommended action: No action required. This report is for informational purposes only.
Policy consideration: None at this time.
Summary: The council discussed single-family rentals and consideration of rental density caps
at the Nov. 28, 2022 study session as concern has grown over an increase of investor ownership
of single-family houses. The result of the discussion was that staff would monitor the number of
single-family non-owner-occupied licenses in St. Louis Park. Staff have tracked license data
annually in the annual housing activity report.
This report provides information on the status of single-family non-owner-occupied licenses
(rental licenses) in St. Louis Park. A rental license is required for any non-owner-occupied unit,
including relative homesteaded properties, vacant units and properties that are not owner-
occupied for at least six months per year. There are currently 942 non-owner-occupied rental
licenses in St. Louis Park including 37 single-family public housing units owned and operated by
the St. Louis Park Housing Authority.
Financial or budget considerations: Not applicable.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: Discussion
Prepared by: Marney Olson, housing supervisor
Reviewed by: Michael Pivec, property maintenance and licensing manager
Approved by: Kim Keller, city manager
Study session meeting of October 28, 2024 (Item No. 5) Page 2
Title: Single-family rentals update
Discussion
Background: The council discussed single-family rentals and consideration of rental density
caps at the Nov. 28, 2022 study session as concern across the metropolitan area has grown over
an increase of investor ownership of single -family houses. The result of the discussion was that
staff would monitor the number of single -family non-owner-occupied licenses in St. Louis Park.
Staff have tracked license data each year in the annual housing activity report.
Single-family rentals in St. Louis Park: A non-owner-occupied license (rental license) is required
for any non-owner-occupied unit, including relative homesteaded properties, vacant units and
properties that are not owner-occupied for at least six months per year. The city does not track
the various types of licensed single-family homes, and therefore does not have data on how
many of the licenses are for rental properties versus vacant homes, homes rented to family
members, or properties in which the homeowner does not occupy the home for at least six
months. Vacant properties are often identified by neighbors who contact the building and
energy department. Staff then follows up with the owners informing them of the requirement
to apply for a rental license.
As of Oct. 21, 2024, there are 942 single-family non-owner-occupied licenses in St. Louis Park
including 37 single-family public housing units owned and operated by the St. Louis Park
Housing Authority. This represents 8.1% of the total number of single-family houses in St. Louis
Park. Over the past ten years, the number of single-family non-owner-occupied licenses has
fluctuated between 814 and 942 as shown in the chart below.
The final number of single-family rental licenses may change by the end of the year. A property
owner could apply for a rental license between now and Dec. 31, 2024. Properties that receive
renewal license reminders, which were sent Oct. 22, 2024, could contact the city to remove the
rental license because the property was sold or otherwise meets the definition of owner-
occupied.
851
899
855 850
814
828
871
849
900
942
750
800
850
900
950
1000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Single-family non-owner occupied licenses
Study session meeting of October 28, 2024 (Item No. 5) Page 3
Title: Single-family rentals update
Many factors contribute to the number of non-owner-occupied single-family homes at any
given time. It is unknown what impact, if any, the recent increase in interest rates and current
market conditions have had on the number of single-family rentals in St. Louis Park, or if the
number of rental licenses will continue to increase, plateau or decrease given these market
conditions.
Investor owned single-family homes: The city does not track investor-owned single-family
properties; however, the Minneapolis Federal Reserve, which uses non-homesteaded
properties as a proxy for investor-owned single-family rentals, tracks investor-owned properties
throughout the seven-county metro area. The percentage of investor-owned homes in St. Louis
Park based on 2023 data from the Minneapolis Federal Reserve’s tool shows St. Louis Park is
consistent with the seven-county metro area and lower than the investor-owned home rate in
Hennepin County as shown in the table below.
Number of properties to define investor owned properties
City 2 properties 5 properties 10 properties
St. Louis Park 3.6% 2.2% 2.0%
Hennepin County 3.7% 2.6% 2.3%
Staff Recommendation:
Given that 1) there has been less than a 10% increase in the number of single -family rentals, 2)
the number of single-family rentals represents a small percentage of the total number of single -
family homes (8.1%), and 3) single-family rentals provide a needed housing options for many
families, staff recommends continuing to monitor the number of single-family rentals at this
time and report back to council in a year with updated information.
Additionally, staff recommends the city support legislation through its legislative agenda to
support tracking the impacts of investor-owned homes on the housing market and enacting
local strategies to support owner-occupied homeownership through policies and programs that
provide cities with tools to address and limit impacts from corporate ownership of single-family
houses and encourage increased access to owner-occupied homeownership through programs
and resources to build equity and wealth, which is also supported by the League of Minnesota
Cities and Metro Cities.
Next steps: Staff will continue to monitor the number of single-family rental licenses over the
next year and will present the city council with the above legislative priority during the
upcoming legislative agenda discussion.
Meeting: Study session
Meeting date: October 28, 2024
Written report: 6
Executive summary
Title: Quarterly development update – 4th 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, construction status and tentative schedule of major development
projects 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).
• Under construction: are those that just started or are actively being constructed.
• 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 and electric vehicle charging stations, and
more.
Additionally, recent developments receiving financial assistance from the city are required to
track Diversity, Equity and Inclusion (DEI) goals related to business enterprises and workforce
hiring goals. The current goal status for each development is also included in the update.
Financial or budget considerations: Development activity affects the city’s total tax capacity as
reflected in the city’s annual budget and long-range financial plan. It also plays a significant role
in the retention of the city’s AAA bond rating.
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 – 4th Quarter 2024
DEI goal summary
Prepared by: Jennifer Monson, redevelopment administrator
Reviewed by: Greg Hunt, economic development manager
Karen Barton, community development director, EDA executive director
Approved by: Kim Keller, city manager
Study session meeting of October 28, 2024 (Item No. 6) Page 2
Title: Quarterly development update – 4th quarter 2024
Major Developments in St. Louis Park
4th Quarter 2024
Multifamily housing development summary Total Market rate Affordable
Proposed units 231 178 53
Approved units 607 525 82
Units under construction 60 0 60
Recently completed units (last two years) 1,585 1,113 472
All units 2,483 1,816 667
Total Development Costs (TDC)* $801 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) & Homes
Within Reach
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
Received pandemic
relief grant funding
from Hennepin
County.
Concept plans
presented to
council in June
2024.
Construction
commencement
Q2, 2025 upon
GMHC securing
LIHTC financing.
Terasa
5401 Gamble Drive
Hempel Real Estate
Concept plans
presented to
council in
August 2024.
Construction
commencement
Q2 2025 upon
Hempel securing
entitlements and
financing.
Study session meeting of October 28, 2024 (Item No. 6) Page 3
Title: Quarterly development update – 4th quarter 2024
Proposed developments
Project, location &
developer Project Description Tentative
Schedule
Proposed is the redevelopment of the northwest office tower
located within the West End Office Towers complex and
construction of a new six story, 223-unit mixed-use building
with 21,000 square feet of commercial space, potentially
including a grocer, restaurant and coffee shop. The
development would include 45 affordable units.
Estimated total development cost $93.7 million
Study session meeting of October 28, 2024 (Item No. 6) Page 4
Title: Quarterly development update – 4th quarter 2024
Approved developments
Project, location &
developer Project Description Tentative
Schedule
Park Place East
5775 Wayzata Blvd.
GW Properties
Proposed is the construction of two retail buildings in the
southeast corner of the parking lot at 5775 Wayzata Blvd. The
new buildings will contain four fast casual restaurants.
Estimated total development cost: TBD
Planning
entitlements
approved in
December 2023
and June 2024.
Building permits
are submitted and
construction
commencement is
anticipated
Q4, 2024.
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 2022 and
reapproved 2024.
Construction
commencement
TBD.
Study session meeting of October 28, 2024 (Item No. 6) Page 5
Title: Quarterly development update – 4th quarter 2024
Approved developments
Project, location &
developer Project Description Tentative
Schedule
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.
Arlington Row
East & West
7705 Wayzata Blvd. &
7905 Wayzata Blvd.
Melrose Company
Two development sites:
• 7905 Wayzata includes two three-story apartment
buildings with 34 units total and off-street parking
covered by a solar power carport.
• 7705 Wayzata includes a three-story apartment building
with 27 units and surface parking.
Estimated construction cost: $TBD
Planning
applications
approved.
Tentative
construction
commencement
TBD.
Study session meeting of October 28, 2024 (Item No. 6) Page 6
Title: Quarterly development update – 4th quarter 2024
Approved developments
Project, location &
developer Project Description Tentative
Schedule
Beltline Blvd Station
Site
SE quadrant of CSAH 25
& Beltline Blvd.
Sherman Associates
Major mixed-use, mixed income, transit-oriented,
multi-phase development adjacent to
SWLRT Beltline Blvd. Station.
Building I includes:
• Seven-story mixed-use building with six levels of market
rate housing (152 units) and 20,000 square feet of
neighborhood commercial space
• A 592-stall parking ramp, which would include 268 park
& ride stalls, 326 residential stalls and approximately
1,850 square feet of commercial space.
Estimated development cost: $55.8 million
Estimated development cost of public ramp:
$11.9 million
Building 2 includes:
• Four-story all affordable apartment building with 82
units, 77 units will be affordable to households at 60%
AMI and five units will be affordable to households at
30% AMI. 22 units will have three bedrooms.
Estimated development cost: $25.2 million
Building 3 includes:
• Five-story market rate apartment building with 146 units.
Estimated development cost: $49.2 million
Altogether, the multi-phase redevelopment will have 380
apartment units of which 82 (21%) would be affordable.
Estimated total development cost: $142 million
Awarded $13.7
million in LIHTC
bonds January
2022 for affordable
component.
Planning
applications
approved
April 18, 2022.
Financial
assistance
agreements
approved
June 20, 2022, and
July 24, 2023.
Anticipated
construction:
• Grading Q1, 2025
• Building 2 Q1, 2025
• Building 3 Q1, 2025
• Building 1 Q3, 2025
• Ramp Q2, 2025
Construction
completion all
phases Q4, 2026.
Study session meeting of October 28, 2024 (Item No. 6) Page 7
Title: Quarterly development update – 4th quarter 2024
Approved 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 III: Eleven-story, 73-unit apartment building.
Estimated development cost: $36.2 million
Estimated total development cost (all phases): $91.4 million
EDA approved an
extension to the
development
contract February
2024.
Phase III
commencement
TBD.
Study session meeting of October 28, 2024 (Item No. 6) Page 8
Title: Quarterly development update – 4th quarter 2024
Under construction
Project, location &
developer Project Description Tentative
Schedule
Union Park Flats
3700 Alabama Ave. &
6027 37th St. W.
PPL (Project for Pride in
Living)
Redevelopment of the north portion of the Union
Congregational Church property with a three story, 60-unit
affordable apartment building on the north half of the
property. All unit rents would be affordable to households
ranging from 30%-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.
Recently completed developments
Project, location &
developer Project Description Tentative
Schedule
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.
Warehouse
operations moved
in Q4, 2021.
Office renovation
completed in
Q4, 2022.
Study session meeting of October 28, 2024 (Item No. 6) Page 9
Title: Quarterly development update – 4th quarter 2024
Recently completed developments
Project, location &
developer Project Description Tentative
Schedule
Estimated construction cost: $TBD
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 2022.
Parkway Flats
completed
October 2022.
Parkway Commons
completed
March 2023.
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.
Completed
Q2, 2022.
Study session meeting of October 28, 2024 (Item No. 6) Page 10
Title: Quarterly development update – 4th quarter 2024
Recently completed developments
Project, location &
developer Project Description Tentative
Schedule
Estimated construction cost: $11.6 million
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
December 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 October 28, 2024 (Item No. 6) Page 11
Title: Quarterly development update – 4th quarter 2024
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.
Study session meeting of October 28, 2024 (Item No. 6) Page 12
Title: Quarterly development update – 4th quarter 2024
Recently completed developments
Project, location &
developer Project Description Tentative
Schedule
Rise on 7
8115 Hwy. 7
CommonBond
Redevelopment of former Prince of Peace church property
across from Shops at Knollwood. Includes a four-story,
120-unit, all affordable apartment building with income
restrictions ranging between 30%-60% AMI along with a
6,600 square foot “affordable” early childhood center.
Estimated total development cost: $40.7 million
Completed
November 2023.
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.
Study session meeting of October 28, 2024 (Item No. 6) Page 13
Title: Quarterly development update – 4th quarter 2024
Recently completed developments
Project, location &
developer Project Description Tentative
Schedule
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.
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 building (65 market
rate units, 22 units affordable to households earning up to
50% AMI, and 130 units affordable to households earning up
to 80% AMI), e-generation, wind turbine, solar panels and
one-acre urban forest.
Estimated total development cost: $88.4 million
Commenced
January 2020.
Apartment
building received
its temporary
certificate of
occupancy (TCO)
in July 2022.
Bigos Management
received a PUD
amendment
March 25, 2024.
Received final
Certificate of
Occupancy
May 23, 2024.
Study session meeting of October 28, 2024 (Item No. 6) Page 14
Title: Quarterly development update – 4th quarter 2024
Recently completed developments
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 earning up to
50% AMI.
Estimated total development cost: $68.6 million
Received
Certificate of
Occupancy
August 2024.
Study session meeting of October 28, 2024 (Item No. 6) Page 15
Title: Quarterly development update – 4th quarter 2024
Diversity, Equity, and Inclusion Hiring Goals
Through October 1, 2024
DEI goals for Union Park Flats and The Mera
Union Park Flats
The Mera
(9920 Wayzata)
Bigos LLC**
QUARTERLY COMPLINANCE SUMMARY ACTUAL GOALS ACTUAL GOALS
Total number of business enterprises
contracted in development 47 50
Percentage of women-owned business
enterprises in development 21.28% 6% 10% 6%
Percentage of BIPOC/AAPI owned business
enterprises in development 4.26% 13% 2% 13%
Percentage of total development dollars
paid to women-owned business
enterprises in development
21.34% 6% 7.13% 6%
Percentage of total development dollars
paid to BIPOC/AAPI owned business
enterprises in development
2.48% 13% 0.13% 13%
Total number of construction workers
contracted in development 789 1567
Percentage of women workforce in
development 3% 20% 2% 6%
Percentage of BIPOC/AAPI workforce* in
development 21% 32% 13% 32%
Percentage of total construction hours for
women workforce in development 3.57% 20% 0.96% 6%
Percentage of total construction hours for
BIPOC/AAPI workforce* in development 29.39% 32% 13.31% 32%
*The BIPOC/AAPI workforce demographic data is self-reported, and likely does not fully capture
Hispanic/Latinx individuals.
**These are the final DEI reporting numbers for The Mera. Construction is complete and the
building had its grand opening on October 16, 2024.
Under the EDA contract for private development with Bigos-992 Wayzata, LLC for The Mera,
was a requirement that the developer submit quarterly updates on their Diversity Equity and
Inclusion hiring and employment goals throughout construction. The Mera is now complete and
the final hiring summary for this project is provided above.
The Mera: Bigos Management hired Big-D Construction as the primary contractor for The Mera.
Big-D Construction used multiple databases to curate a list of DEI subcontractors with
experience in multi-Family construction in the twin cities. Using that list, Big-D held a pre-bid
meeting at city hall to collect additional contact information and elaborate on the project's
Study session meeting of October 28, 2024 (Item No. 6) Page 16
Title: Quarterly development update – 4th quarter 2024
scope before sending bid invitations. Twenty-one MBE/WBE companies attended the meeting,
and nine of the attendees submitted bids on the project. The Big-D team also sent the Mera
plans to DEI companies who did not participate in the City Hall meeting but responded “yes” to
planning on submitting a proposal. In total, 211 subcontractors were invited to bid on the
project, 14 being WBE, 25 being MBE, and three being a BIPOC enterprise.
Ultimately, Big-D Construction hired 69 business enterprises to construct the Mera, and 50
received a subcontractor. Of those 50 subcontractors, five were women-owned business
enterprises (10% participation), and one was a BIPOC- business enterprise (2% participation).
The main challenge with meeting the goals for DEI enterprise participation is the lack of
awareness from the subcontractor pool and how DEI enterprises choose to publicize their
companies. Many of the subcontractors Big D works with have the potential to become a
WBE/MBE or BIPOC enterprise but are not aware of the steps needed to become certified to
report as a DEI enterprise. Another challenge Big D had was with the certified companies who
planned to provide a proposal, was the lack of communication and attention to detail when
providing a bid. This made the contractor team uncomfortable with awarding scopes to
enterprises that didn’t show knowledge of the plan and specs.
Meeting: Study session
Meeting date: October 28, 2024
Written report: 7
Executive summary
Title: 2025 Social Services request for proposal update
Recommended action: No action required. This report is for informational purposes only.
Policy consideration: None. For information only.
Summary: The city has previously funded social service agencies through a direct allocation to
specific non-profit entities that provide services to St. Louis Park residents. Beginning in 2025,
the process will be conducted through a competitive request for proposal (RFP) process. The
city has budgeted $250,000 in 2025 for contractual services with non-profit agencies serving
residents in St. Louis Park that offer basic needs services that the city could provide and that
address at least one of the following program goals:
• Emergency housing assistance for low-income persons/households at or below 60% AMI for
renters and 115% for homeowners.
• Services to support senior independence to allow low-income adults 60 and older to remain
in their home.
• Services for individuals and households experiencing food insecurity to improve access to
healthy food.
• Support programs that assist landlords providing affordable rental housing* to offset rent
losses due to evictions for non-payment of financial obligations by tenants at or below 60%
AMI. (*rent must be affordable to households at or below 60% AMI and must be verified)
• Other basic needs services, subject to conformance with city policies.
Staff anticipates the RFP will be shared broadly beginning the week of Nov. 4, 2024, after
approval of the guidelines by council. Proposals will be due Dec. 2, 2024. The city will
tentatively notify applicants of recommended awards by Dec. 31, 2024. Formal award of the
contracts for services will occur in early 2025, provided the 2025 budget adopted by council
includes this funding. In subsequent years we anticipate the RFP process starting earlier in the
year.
Financial or budget considerations: $250,000 has been budgeted for the 2025 social services
request for proposal: $200,000 from the affordable housing trust fund and $50,000 from the
general fund.
Strategic priority consideration: St. Louis Park is committed to providing a broad range of
housing and neighborhood oriented development.
Supporting documents: 2025 Social Services RFP draft guidelines
Prepared by: Marney Olson, housing supervisor
Reviewed by: Karen Barton, community development director
Amelia Cruver, finance director
Approved by: Kim Keller, city manager
City of St. Louis Park
2025 REQUEST FOR PROPOSALS
FOR SOCIAL SERVICES
The City of St. Louis Park is seeking proposals for social services from non-profit agencies
serving residents in St. Louis Park. The city has budgeted $250,000 for this RFP. Funding
parameters and priority goals for the purpose of advancing the city’s strategic priorities are as
follows:
Funding Parameters
Any State recognized non-profit organization is eligible to apply
Projects must serve St. Louis Park residents
Services must be compatible with city goals and strategic priorities
Total funding for this RFP is $250,000. Minimum request is $10,000
Program Goals
Funding through this program is intended for non-profit agencies serving residents in St. Louis
Park that offer basic needs services that the city could provide and that address at least one of
the following program goals:
Emergency housing assistance for low-income persons at or below 60% AMI for renters
and 115% for homeowners.
Services to support senior independence to allow low-income adults 60 and older to
remain in their home
Services for individuals and households experiencing food insecurity to improve access
to healthy food
Support programs that assist landlords providing affordable rental housing* to offset
rent losses due to evictions for non-payment of financial obligations by tenants at or
below 60% AMI (*rent must be affordable to households at or below 60% AMI and must
be verified)
Other basic needs services, subject to conformance with city policies.
Eligible expenses
Direct services to St. Louis Park residents that meet one or more of the above priority goals
A maximum of 15% of the funding request can be for staffing costs directly for the
administration of the proposed program. No other administrative expenses are eligible.
Award Criteria
Proposals must meet one or more of the following criteria:
Demonstrated need of the proposed service for the targeted population
Compatibility with the RFP priority goals
Provide direct service to St. Louis Park residents
Demonstrated efforts to serve low-income persons of all races/cultures/ethnicities
Demonstrated value to the community
Certified Non-Profit agency
Proposals must be received by 4:30 p.m. December 2, 2024
Late proposals will not be accepted
Study session meeting of October 28, 2024 (Item No. 7)
Title: 2025 Social Services request for proposal update Page 2
PROPOSAL SUBMISSION INSTRUCTIONS
The information requested in the attached Request for Proposals must be addressed in your
proposal.
Submit 1 electronic copy (word or pdf) of your proposal by 4:30 p.m. December 2, 2024 (LATE
PROPOSALS WILL NOT BE ACCEPTED) to:
Marney Olson
Housing Supervisor
molson@stlouisparkmn.gov
Applicants may be asked to respond in writing to additional questions. The City of St. Louis Park
will tentatively notify applicants of recommended award by December 31, 2024. Formal award
of contracts for services will occur in early 2025.
Agencies awarded contracts will be required to sign a service agreement for calendar year 2025
and submit semi-annual reports on service outcomes.
Contact Marney Olson at 952.924.2196 or molson@stlouisparkmn.gov with any questions.
Proposals must be received by 4:30 p.m. December 2, 2024
Late proposals will not be accepted
Study session meeting of October 28, 2024 (Item No. 7)
Title: 2025 Social Services request for proposal update Page 3
City of St. Louis Park
2025 REQUEST FOR PROPOSALS FOR SOCIAL SERVICE ASSISTANCE
Proposals for social services must include the following:
PROPOSAL HEADING
1. Agency name, address, contact person, phone and email
2. Amount of request
3. Brief description of service(s) to be provided
4. Identify priority area(s) the proposed services are addressing:
a) Emergency housing assistance for low-income renter households below 60% AMI
and/or 115% AMI for homeowners.
b) Services to support senior independence to allow low-income adults 60 and older to
remain in their home
c) Services for individuals and households experiencing food insecurity to improve access
to healthy food
d) Support programs that assist landlords providing affordable housing to offset rent
losses due to evictions for non-payment of financial obligations by tenants at or below
60% AMI.
5. Explain how the services you are proposing to provide will benefit St. Louis Park residents
6. Indicate any additional funding from other sources for the proposed program.
7. Explain any formal or informal partnership you have with the City of St. Louis Park
ADMINISTRATION
1. Provide a mission statement for your agency.
2. Provide verification of your organization’s non-profit legal status.
3. Indicate your total agency budget for 2025.
4. Indicate your proposed project budget for 2025. Itemize proposed expenses and describe
as applicable. Indicate both proposed city funds and other funds to support the project.
City funds are for direct service costs with a 15% cap for staffing costs directly for the
administration of the proposed program.
PROGRAM
1. Describe service to be funded, including:
a) Brief statement detailing the service, the need for the service, and how it will be
provided
b) Target population(s); estimated number of unduplicated individuals you plan to serve
residing in St. Louis Park
c) Eligibility criteria and process
d) How clients are involved in the planning process for service
e) Desired client outcomes and methods of evaluating and measuring client progress and
outcomes (use attached “Proposed Outcome/Evaluation Methods” form)
3. Describe outreach efforts to target populations, including immigrant and low-income
individuals.
Please contact Marney Olson at molson@stlouisparkmn.gov or 952.924.2196 with questions.
Study session meeting of October 28, 2024 (Item No. 7)
Title: 2025 Social Services request for proposal update Page 4
City of St. Louis Park Social Service Programs - 2025
Proposed Outcomes/Evaluation Methods
Name of Applicant Organization:
Address:
Contact Person:
Phone: Email:
Brief description of service(s):
Outcomes: State 3 to 5 measurable outcomes of proposed service(s) –
relate outcomes to client progress
Outcomes indicate what result, benefit, or change would come from the service
provided. Outcomes can be: 1) initial, such as increased knowledge, understanding, or
skills; 2) intermediate, such as change in a specific behavior or attitude; or 3) long term,
such as a change in the condition or status of people.
Indicators: Describe methods of evaluating proposed outcomes
– how you will measure client progress
Study session meeting of October 28, 2024 (Item No. 7)
Title: 2025 Social Services request for proposal update Page 5