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HomeMy WebLinkAbout2024/12/16 - ADMIN - Agenda Packets - City Council - RegularAGENDA DECEMBER 16, 2024 6:00 p.m. Economic Development Authority meeting – Council Chambers 1. Call to order a.Roll call. 2. Approve agenda. 3. Minutes a.Minutes of November 18, 2024 EDA meeting 4. Consent items a.Approve EDA disbursements 5. Public hearings – none. 6. Regular business a.Resolutions authorizing final 2025 budget - levy and capital improvement plan 7. Communications and announcements a.Business terms for private development contract - Terâsa redevelopment - Ward 4 8. Adjournment. 6:15 p.m. City council meeting – Council Chambers 1. Call to order a.Roll call. b.Pledge of Allegiance. 2. Approve agenda. 3.Presentations a.Observance of International Migrants Day 4. Minutes a.Minutes of November 4, 2024 study session meeting b.Minutes of November 18, 2024 city council meeting c.Minutes of November 18, 2024 study session meeting 5. Consent items a.Resolution approving 2025 non-union compensation b.Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 c.Resolution establishing South Oak Pond Water Quality Improvement project (4024-4000) - Ward 2 Agenda EDA and city council meetings of December 16, 2024 d. Approve property acquisitions for Cedar Lake Road / Louisiana Avenue Improvements project- Phase 2 (4024-1100) - Ward 4 e. Resolution regarding cashless business f. Approve temporary on-sale intoxicating liquor license - Beth El Synagogue g. Resolution amending American Rescue Plan Act Appropriation h. Resolution approving Hennepin County All-Hazard Mitigation Plan 6. Public hearings – none. 7. Regular business a. Resolutions authorizing traffic control changes in Browndale Neighborhood - Ward 2 b. Resolutions approving 2025 budget - levy and capital improvement plan adoption 8. Communications and announcements – none. 9. Adjournment. Members of the public can attend St. Louis Park Economic Development Authority and city council meetings in person. At regular city council meetings, members of the public may comment on any item on the agenda by attending the meeting in-person or by submitting written comments to info@stlouisparkmn.gov by noon the day of the meeting. Official minutes of meetings are available on the city website once approved. Watch St. Louis Park Economic Development Authority or regular city council meetings live at bit.ly/watchslpcouncil or at www.parktv.org, or on local cable (Comcast SD channel 14/HD channel 798). Recordings of the meetings are available to watch on the city's YouTube channel at www.youtube.com/@slpcable, usually within 24 hours of the meeting’s end. City council study sessions are not broadcast. Generally, it is not council practice to receive public comment during study sessions. The council chambers are equipped with Hearing Loop equipment and headsets are available to borrow. If you need special accommodations or have questions about the meeting, please call 952.924.2505. Meeting: Economic development authority Meeting date: December 16, 2024 Minutes: 3a Unofficial minutes EDA meeting St. Louis Park, Minnesota Nov. 18, 2024 1.Call to order. President Dumalag called the meeting to order at 6:05 p.m. a.Roll call Commissioners present: President Dumalag, Paul Baudhuin, Tim Brausen, Sue Budd, Yolanda Farris, Nadia Mohamed, Margaret Rog Commissioners absent: none Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick), deputy city manager (Ms. Walsh), community development director (Ms. Barton), administrative services director (Ms. Brodeen), finance director (Ms. Cruver), facilities superintendent (Mr. Eisold), leg islative and grants analyst (Ms. Ferris), public services superintendent (Ms. Fisher), recreation superintendent (Ms. Friederich), public works director (Mr. Hall), engineering director (Ms. Heiser), building and energy director (Mr. Hoffman), police chief (Mr. Kruelle), zoning administrator (Mr. Morrison), interim fire chief (Mr. Scott), deputy city clerk (Ms. Scott-Lerdal), communications and technology director (Ms. Smith), financial analyst (Ms. Stephens), HR director (Ms. Vorpahl), planning manager (Mr. Walther) 2.Approve agenda. It was moved by Commissioner Brausen, seconded by Commissioner Farris, to approve the EDA agenda as presented. The motion passed 7-0. 3.Minutes a.EDA meeting minutes of Nov. 4, 2024 Commissioner Brausen noted that he was absent from the EDA meeting on Nov. 4, 2024. It was moved by Co mmissioner Rog, seconded by Commissioner Farris, to approve the EDA meeting minutes of Nov. 4, 2024, as amended. The motion passed 7-0. 4.Consent items - none. 5.Public hearings – none. Page 2 Economic development authority meeting of December 16, 2024 (Item No. 3a) Title: EDA meeting minutes of November 18, 2024 6.Regular business – none. 7.Communications and announcements. a.Application for financial assistance – 5401 Gamble Drive – Ward 4 8.Adjournment. The meeting adjourned at 6:08 p.m. ______________________________________ ______________________________________ Melissa Kennedy, EDA secretary Lynette Dumalag, EDA president Meeting: Economic development authority Meeting date: December 16, 2024 Consent agenda item: 4a Executive summary Title: Approve EDA disbursements Recommended action: Motion to approve EDA disbursement claims for the period of Oct. 29 – Nov. 21, 2024. Policy consideration: Does the EDA approve the disbursements listed for the period ending Nov. 21, 2024? Summary: The finance division prepares this report monthly for the EDA to review and approve. The attached report shows both EDA disbursements paid by physical check and those by wire transfer or Automated Clearing House (ACH) when applicable. Financial or budget considerations: Review and approval of disbursements by the EDA is required and provides another layer of oversight to further ensure good fiscal stewardship. Strategic priority consideration: Not applicable. Supporting documents: EDA disbursement summary Prepared by: Estela Mulugeta, accounting specialist Reviewed by: Amelia Cruver, finance director Approved by: Cindy Walsh, deputy city manager CITY OF ST LOUIS PARK Council Check Summary 11/21/202410/29/2024 - Amount ObjectVendorBU Description 137.75CENTERPOINT ENERGY EDA - 4300 36 1/2 G&A HEATING GAS 137.75 2,116.00KENNEDY & GRAVEN EDA - 4300 36 1/2 G&A Consulting Fees/Fees For Serv 250.00Wooddale Station TIF G&A Consulting Fees/Fees For Serv 1,354.50Development - EDA G&A Consulting Fees/Fees For Serv 3,720.50 2,700.00THE DASCHER COMPANY INC Wooddale Station TIF G&A Consulting Fees/Fees For Serv 2,700.00 779.40WHIPPER SNAPPER LAWN SERVICE Development - EDA G&A LAND MAINTENANCE 779.40 66.96XCEL ENERGY EDA - 4300 36 1/2 G&A Electric Utility 66.96 Report Totals 7,404.61 Economic Development Authority meeting of December 16, 2024 (Item No. 4a) Title: Approve EDA disbursements Page 2 Meeting: Economic development authority Meeting date: December 16, 2024 Action agenda item: 6a Executive summary Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan Recommended action: • Motion to adopt EDA resolution authorizing the 2025 final HRA levy. • Motion to adopt EDA resolution authorizing the 2025 final EDA levy. Policy consideration: Does council support the proposed 2025 HRA and EDA Levies: • Housing Redevelopment Authority (HRA) levy equal to $1,194,133 • Economic Development Authority (EDA) levy equal to $ 187,000 Summary: Recommendations in the 2025 proposed budget are based on maintaining high- quality services and advancing city priorities while also making best use of public dollars. Staff presented council a recommended budget and corresponding all-inclusive levy increase of 9% over the summer. Staff received feedback that was generally supportive of the new spending items, but uncomfortable with the all-inclusive levy increase. After adjustments were made to the capital budget, staff was able to lower the levy increase to 7.52%, which council approved on Sept. 16, 2024. The 2025 budget provides a strategic opportunity to make decisions that impact the city’s long range financial plan, prepare for known and unknown fiscal issues in the medium-term and ensure long-term compliance with city financial policies. The EDA is asked to approve a motion to recommend a final EDA and HRA levy and then forward this recommendation to the city council. Council action is required before certification. All special taxing districts levies must be certified to the county auditor by Dec. 28, 2024. Financial or budget considerations: The proposed tax levies support city services, capital improvements, and debt service obligations for fiscal year 2025. Strategic priority consideration: Not applicable. Supporting documents: EDA Resolutions Prepared by: Amelia Cruver, finance director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Cindy Walsh, deputy city manager Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 2 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan Discussion Background: 2025 Budget Development Timeline Date Agenda Item Topics July 8, 2024 Council report and discussion: Base budget and fee update • Learnings from 2023 • Base Budget spending and revenues and levy impact • 2025 economic conditions July 15, 2024 Council report and discussion: Operating budget Public Hearing: Fee update • Proposed new operating budget spending items in the 2025 budget and levy impact Aug. 12, 2024 Council report and discussion: Capital budget and levy recommendation • Proposed capital projects for 2025 and levy impact • Proposed five-year Capital Improvement Plan (CIP) • Preliminary 2025 levy Sept. 16, 2024 Council report, discussion and vote: Approve maximum levy • Revisions, if any, to the proposed capital and operating budgets and associated levies • Adoption of maximum 2025 levy October 2024 Council report and discussion: TIF Management Report and discussion • TIF district performance • TIF district recommended transfers and decertification, if any Mid- November 2024 Truth in taxation property tax notices sent out by the county Residents receive an estimate of their 2025 tax bill and information on the public hearing in December Nov. 18, 2024 Council report and discussion: Revised budget • Revisions to the budget and adjustments to the levy, as needed. In November, the levy can only decrease from the maximum set in September Dec. 2, 2024 Council report and public hearing: Truth in Taxation • Residents share feedback on the proposed 2025 budget Dec. 16, 2024 Council report, discussion and vote: Budget adoption • Council adoption of the 2025 budget and CIP This summer, staff presented the 2025 base budget and important context for the upcoming budget process. Staff also presented adjusted fees, projected revenues and firm personnel cost projections. We also discussed proposed operating budget increases to support proposals that would have an impact on city priorities. Key additions already presented to and supported by council are: • Boards and commissions program support. This year, council directed staff to provide stipends to board members. This request is directly related to that council direction. Staff is proposing a total of $35,000 to cover the costs of board member stipends and an additional $10,000 to cover the cost of boards and commission program coordination which could include expenses such as printing and creating of program materials for Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 3 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan orientation as well as for outreach materials, potential room rentals and other related costs. • New Forestry Technician position. Council recently directed staff to implement a “Tree Preservation Permit” for commercial and new residential subdivisions. As a part of that presentation and report, staff shared with council the need to increase staff to implement the program. This position would assist the natural resources manager to increase management capacity to meet community-demanded service levels. Primary duties include facilitating grant programs, conducting commercial tree preservation inspections, conducting private property inspections and focusing on coordinating canopy enhancement programs in environmental justice areas. • Social Services Program. Staff is proposing increasing funding towards non-profit social service providers serving the St. Louis Park community and ensuring that awards are made through a competitive request for proposals process. The program will focus on agencies that deliver services and activities to help St. Louis Park’s most vulnerable residents, including low-income, seniors and children. Housing security and stability, economic stability, healthy food access and senior services are the primary program priorities. This program is recommended to be funded with up to $200,000 in Affordable Housing Trust Fund revenue for housing-focused services and $50,000 general fund revenue for economic stability, food access and senior services. • Community Development Specialist. This position will support the city’s small business community to help these businesses get started, grow, and remain economically viable. This function has existed in years past at the city, but a full-time employee dedicated to this work has not been funded in the last two years as restructuring of the position was undertaken. • Website redesign. Staff recommend updating the current city website in 2025. This request includes funding for contractual services as well as additional temporary staffing support for interns to help launch the project. In August, staff presented the recommended capital improvement plan (CIP). Projects in the CIP are funded through the property tax levy, revenues from franchise fees and a few other miscellaneous revenue streams, federal and state taxes and bond proceeds. Highlights for the 2025 CIP are: • Playground and Park renovations in Ainsworth, Bronx and Webster Park • Streetlight repair and replacement • MCWD: Minnehaha Greenway – Cedar Lake regional trail connection • Pavement management projects in the Wolfe Park, Westwood Hill and Cedar Manor neighborhoods and the Minnetonka Boulevard reconstruction project in the Fern Hill and Triangle neighborhoods • Cedar Lake Road and Louisiana Avenue Improvement Project (2024-2026) • Utility system repair and replacement projects connected to Cedar Lake Road and Louisiana avenue, Minnetonka Blvd and Area 3 local street rehab work. In early 2025, the city will review all unfinished 2024 CIP projects and bring a list of re- authorizations needed to council to ensure previously approved projects can be completed. Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 4 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan Present considerations: Proposed 2025 Budget and Levy These discussions included some edits and adjustments to the CIP to lower the levy increase in 2025. After an additional study session to incorporate council feedback and staff recommendations in September 2024, the city certified a levy increase of 7.52% to the county comprising the following components: Recommended 2025 Levy Fund 2024 Adopted Change 2025 Proposed Percentage Change General Fund $34,147,654 $4,661,161 $38,808,815 14% Capital Replacement Fund $2,177,793 $45,703 $2,223,496 2% Park Improvement Fund $860,000 -$350,000 $510,000 -41% Employee Benefits Fund $200,000 $200,000 0% Subtotal General Levies $37,385,447 $4,356,865 $41,742,311 12% Debt Service Levy $6,362,813 $493,408 $6,856,221 8% General and Debt Service Levies $43,748,260 $4,850,273 $48,598,532 11% Housing Redevelopment Authority Levy $1,744,133 -$550,000 $1,194,133 -32% Economic Development Authority Levy $877,000 -$690,000 $187,000 -79% Total Property Tax Levy $46,483,749 $3,495,916 $49,979,665 7.52% Updated Five-Year Financial Direction: In October 2024, council received the annual Tax Increment Finance management report that describes the status and health of our cities various TIF districts. In that report, council was informed of upcoming de-certifications that will increase the tax base in the city. When a large increase to the tax base occurs, the tax levy can be increased without increasing the tax rate on property taxpayers. These years are advantageous for the city to fund large infrastructure projects that would otherwise create a large variance in resident tax bills. Council could also elect to not increase the levy and as a result lower the tax rate on residents. Either way, council will make an informed decision about how to best utilize the benefits of decertifying tax districts. To plan better for these de-certifications, a line has been added to the five-year financial direction to show the opportunity to increase the levy and spending to address city priorities without impacting the tax rate paid by residents. Council may choose in future years to fund unfunded and emerging projects or reduce the tax rate buy holding the tax levy steady with the current projections. One note on the table below, the dollars are currently placeholders in the general levies section of the table, but they could very well be in the debt service levy if the city were to use this increase to finance additional bonding. Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 5 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan Below is the five-year financial forecast including placeholders in the long-range plan to account for changes in the taxable market value because of TIF districts successfully completing and coming back online. The following assumptions are built into the forecast: • Steady inflationary growth in general fund to maintain current service levels. • Additional levy in 2027 to cover the cost of three new firefighters once the federal Staffing for Adequate Fire and Emergency Response (SAFER) grant concludes. • A levy increase of $200,000 in 2026 to “step down” after using one-time sources, rather than a one-year jump in levy revenue. • Capital replacement levy increasing each year, as use of fund balance decreases each year to meet currently identified CIP needs and reach a structurally balanced budget at the end of the five-year outlook. • Debt service to fund major street infrastructure projects currently laid out in the CIP. • Flat HRA Levy to fund housing programs and projects. This levy can be adjusted each year based on planned activities and the availability of external revenue sources. • EDA levy that increases to $375k in 2026 to cover ongoing costs attributed to that fund. Five-Year Financial Direction (includes above assumptions) Five-Year Financial Outlook Fund 2024 Adopted 2025 Proposed 2026 Forecast 2027 Forecast 2028 Forecast 2029 Forecast General Fund $34,147,654 $38,808,815 $40,749,256 $43,176,719 $45,335,555 $47,602,333 Capital Replacement Fund $2,177,793 $2,223,496 $2,557,020 $3,068,424 $3,835,531 $4,410,860 TIF district planning $868,600 $2,200,135 $2,200,135 Park Improvement Fund $860,000 $510,000 $700,000 $860,000 $860,000 $860,000 Employee Benefits Fund $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Subtotal General Levies $37,385,447 $41,742,311 $44,206,277 $48,173,743 $52,431,221 $55,273,328 Debt Service Levy $6,362,813 $6,856,221 $7,523,750 $7,566,453 $8,139,875 $8,690,269 General and Debt Service Levies $43,748,260 $48,598,532 $51,730,027 $55,740,196 $60,571,096 $63,963,597 HRA Levy $1,744,133 $1,194,133 $1,194,133 $1,194,133 $1,194,133 $1,194,133 EDA Levy $877,000 $187,000 $374,000 $374,000 $374,000 $374,000 Total Property Tax Levy $46,483,749 $49,979,665 $53,298,159 $57,308,329 $62,139,228 $65,531,730 Total Levy Growth 7.52% 6.64% 7.52% 8.43% 5.46% Property Tax Impact and Context All cities within Hennepin County submit proposed property tax levies by Sept. 30 each year. At the end of October, cities receive updated data on the proposed property tax impact on property owners in 2025 across all taxing jurisdictions in Hennepin County. Below is a chart showing the distribution of property taxpayers according to their decrease or increase in property taxes from 2024 into 2025. The largest group of St. Louis Park residential property taxpayers (34%) will see an increase in their tax bill between 0 and 5%. Most St. Louis Park Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 6 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan residential property taxpayers (56%) will see a property tax bill that is between a five percent (5%) decrease and a five percent (5%) increase. The countywide data shows most households in the county (66%) will see an increase in property taxes between 0.1 and 9.9 %. County-wide, there are fewer households seeing a decrease in taxes compared to St. Louis Park. There are also more households at the county level seeing an increase in property taxes above 10% compared to St. Louis Park, 14% versus 7% respectively. Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 7 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan The table below shows the estimated impact to the median property by type of a 7.52% levy increase in St. Louis Park. On top of the changes in value year to year, state policy changes reduced the tax rate for homestead properties and reduced the tax rate on Class C, 4D properties. This led to another shift, on top of the variable changes in value across the property types. Truth in Taxation Hearing Response Several residents attended and spoke at the Truth in Taxation hearing on Dec. 2, 2024. Council heard from a few residents who expressed dissatisfaction with levy increases that were in the double digits for percentage increases. Assessing and Finance staff were on hand to answer any individual questions about the budget or about property valuation and estimated taxes. Several community members voiced their support for more spending on affordable housing initiatives. The city’s Community Development team has prepared the summary below of the 2025 budget for housing initiatives: Single-family housing rehab programs 2025 budget Program household income limits Discount rehab loans $20,000 115% AMI* Emergency repair grant (maximum grant $5,000) $40,000 50% AMI Low income deferred home loan $300,000 80% AMI Rehab advisor** $10,000 None 7.52% Levy Impact 2024 2025 Percent Change 24 to 25 Annual Increase Monthly Increase Median Est. Market Value Property Tax Payable Median Est. Market Value Property Tax Payable Single-Family Homestead $373,300 $1,646 $377,200 $1,755 6.60% $108.71 $9.06 Non-Hmstd $373,300 $1,663 $377,200 $1,816 9.21% $153.15 $12.76 Condominium Homestead $208,800 $848 $203,900 $846 -0.24% -$2.00 -$0.17 Non-Hmstd $208,800 $930 $203,900 $981 5.55% $51.58 $4.30 Townhome Homestead $260,700 $1,100 $252,200 $1,099 -0.05% -$0.53 -$0.04 Non-Hmstd $260,700 $1,161 $252,200 $1,214 4.56% $52.93 $4.41 Apartments Class A $280,500 $1,562 $280,000 $1,685 7.89% $123.21 $10.27 Class B $192,200 $1,070 $185,000 $1,113 4.03% $43.16 $3.60 Class C $124,000 $690 $123,900 $745 8.00% $55.19 $4.60 Class A (4D-1) $280,500 $937 $280,000 $337 -64.0% -$599.97 -$50.00 Class C (4D-1) $124,000 $414 $123,900 $149 -64.00% -$265.08 -$22.09 Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 8 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan Architectural design services** $10,000 None Program marketing** $5,000 NA Transformation (Move up) loan (max. loan $35k) $210,000 120% AMI Sub total $595,000 Multi-family housing rehab Multi-family rental rehab loan $100,000 Restricted rents 60% AMI 4d incentive program $20,000 Restricted rents 60% AMI Sub total $120,000 Affordable homeownership Land trust homeownership program $300,000 80% AMI Foreclosure/tax forfeit/ special circumstance LT $10,000 80 % AMI Down payment assistance loan $350,000 115% AMI First generation homeownership program $350,000 80% AMI Sub total $1,010,000 Rental assistance Kids in the Park rental assistance $250,000 50% AMI Sub total $250,000 Social services Contracts Social services funding program $200,000 n/a Sub total $200,000 Affordable housing development investments New construction projects $1,750,000 varies Sub total $1,750,000 Grand Total $3,925,000 *AMI stands for Area Median Income **These projects are not funded out of the Affordable Housing Trust Fund Resources for Property Taxpayers Programs and tax credits exist at the state level for taxpayers who face significant increases in their taxes or have a level of property tax that is disproportionate to their income. Below is a list with website links and all information can be found on the MN Department of Revenue website. (Website links are relevant to the date of this report’s publication.) Disabled Veterans Exclusion: https://www.revenue.state.mn.us/market-value-exclusion-veterans-disability Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 9 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan Senior Citizen Property Tax Deferral Program: https://www.revenue.state.mn.us/property-tax-deferral-senior-citizens Special Homestead Classification – blind or disabled: https://www.revenue.state.mn.us/special-homestead-classification Hennepin County Property Information: https://www.hennepin.us/residents/property/property-information-search Property Tax Refund Information: https://www.revenue.state.mn.us/property-tax-refund Renter’s Property Tax Refund Information: https://www.revenue.state.mn.us/renters-property-tax-refund Next steps: After adoption, the final levy will be certified to the county and the budget will be in effect January 1, 2025. Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 10 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan EDA Resolution No. 24-____ Authorizing the final levy of a special benefit (HRA) levy pursuant to Minnesota Statutes, Section 469.033, subdivision 6 and approval of a final budget for fiscal year 2025 Whereas, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the city council of the City of St. Louis Park created the St. Louis Park Economic Development Authority (the "Authority"); and Whereas, pursuant to the EDA Act, the city council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and Whereas, Section 469.033, Subdivision 6, of the HRA Act permits the Authority to levy and collect a special benefit levy of up to 0.0185 percent of estimated market value in the city upon all taxable real property within the city; and Whereas, the Authority desires to levy a special benefit levy in the amount of up to 0.0185 percent of estimated market value in the city for taxes payable in 2025; and Whereas, pursuant to Minnesota Statutes, Section 275.065, the Authority is required to adopt a proposed budget and a proposed tax levy and submit the same to the County Auditor by December 28; and Whereas, the Authority has before it for its consideration a copy of a proposed budget for its operations for the fiscal year 2025 and the amount of the proposed levy for collection in 2025 shall be based on this budget and the long-range financial management plan, subject to any adjustments in the budget as finally approved prior to certification of the final special benefit levy; Now therefore be it resolved, be it resolved by the Board of Commissioners of the St. Louis Park Economic Development Authority: 1. The proposed budget of $1,194,133 for the operations of the Authority in fiscal year 2025, as presented for consideration by the city council, is hereby in all respects approved, subject to final approval by the Authority before certification of the tax levy under Minnesota Statutes, Section 275.07. 2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the city in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is hereby approved and is less than the maximum amount equal to 0.0185 percent of estimated market value in City of St. Louis Park with respect to Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 11 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan taxes payable in calendar year 2025, subject to final approval by the Authority before certification of the special benefit levy pursuant to Minnesota Statutes, Section 275.07. 4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the city council of the levy of special benefit taxes payable in 2025 and to take such other actions as are necessary to bring before the Board the final budget and levy to be sent to the county auditor on or before five working days after December 16, 2024. Reviewed for administration: Adopted by the Economic Development Authority December 16, 2024: Karen Barton, executive director Lynette Dumalag, president Attest: Melissa Kennedy, city clerk Economic development authority meeting of December 16, 2024 (Item No. 6a) Page 12 Title: Resolutions authorizing final 2025 budget - levy and capital improvement plan EDA Resolution No. 24-__ Approving a present intent to levy a tax for Economic Development Authority purposes pursuant to Minnesota Statutes, Section 469.107 Whereas, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended (the “Act”), the city established the St. Louis Park Economic Development Authority (the “EDA”); and Whereas, Section 469.107, subdivision 1 of the Act authorizes the city, at the request of the EDA, to levy and collect a tax of up to 0.01813% of the estimated market value of taxable property within the city, levied upon all taxable real property within the city, for economic development purposes; and Whereas, the EDA has requested that the city approve such a levy in the amount of $187,000 and the city finds that such a levy is in the best interest of the city and EDA because it will facilitate economic development; Now therefore be it resolved that the Economic Development Authority of St. Louis Park hereby approves the levy of a tax for economic development purposes pursuant to Section 469.107, subdivision 1 of the Act in the amount equal to $187,000 with respect to taxes payable in calendar year 2025. Reviewed for administration: Adopted by the Economic Development Authority December 16, 2024: Karen Barton, executive director Lynette Dumalag, president Attest: Melissa Kennedy, city clerk Meeting: Economic development authority Meeting date: December 16, 2024 Communication & Announcements: 7a Executive summary Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 Recommended action: None at this time. This report is provided in advance of formal consideration at the Feb. 18, 2025, EDA meeting. Policy consideration: Are the proposed business terms for the provision of tax increment financing assistance and affordable housing trust funds to facilitate the Terâsa redevelopment consistent with the EDA’s expectations and are they acceptable? Summary: Hempel Real Estate (“redeveloper”) has secured a purchase agreement to acquire the office property at 5401 Gamble Drive. The redeveloper proposes to remove the current office building and construct Terâsa, a six-story, 223-unit mixed-use, mixed income apartment building with approximately 21,000 square feet of ground floor retail space. Hempel would continue to own and manage the new building for the long term. The proposal includes 45 affordable housing units (20% of the total) available to households earning up to 50% of area median income (AMI) for 26 years, exceeding the city’s Inclusionary Housing Policy requirements. Additionally, Hempel has agreed to make six of the affordable units available to households earning up to 30% of AMI, contingent on approval of a request for six project- based vouchers from the city’s housing authority board. Financial or budget considerations: The redeveloper has applied for public financial assistance to help offset a gap in their financial proforma that prevents the Terâsa development from achieving a market rate of return sufficient to attract financing. Ehlers, the EDA’s financial consultant, examined the project’s pro forma to determine what, if any, level of financial assistance was necessary to enable the project to become economically viable. Subsequently, Ehlers determined that up to $6.54 million in financial assistance is warranted to enable the $91.7 million project to achieve a market rate of return and sustain itself financially over time. Such assistance is proposed to be provided via a $5.54 million pay-as-you-go TIF note and a $1 million deferred loan from the Affordable Housing Trust Fund (AHTF). Given current market value estimates, the TIF note is anticipated to be repaid in approximately 11 years. The AHTF loan would be paid back in a bulk sum, with interest, at year 11. Hempel also is requesting six project-based vouchers from the city’s Housing Authority Board to facilitate the inclusion of six deeply affordable units in the development. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Jennifer Monson, redevelopment admin., Keith Dahl, municipal advisor, Ehlers Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Page 2 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 Discussion Background: In 2023, Eden Prairie-based Hempel Real Estate (“redeveloper”) purchased The Shops at West End (“the shops”). Since its purchase, Hempel has further invested in the property, invigorating the shopping area by attracting new commercial, service, and office tenants including Kiddiwampus, Marcus Theaters, Polestar, Boketto, the Artisan Store and Makerspace, and more. However, despite efforts to secure tenants, Hempel has yet to activate the south end of the shopping area. Hempel would like to pursue development immediately to the south of the shops to generate increased shopping activity for its tenants and enhance the economic vitality of the area. Such activity would be spearheaded by additional residential units and commercial space, drawing more people to the area throughout the day and not solely during typical working hours. Present considerations: Hempel has a purchase agreement to acquire the office property at 5401 Gamble Drive on the southeast corner of Park Place Boulevard and Gamble Drive, immediately south of the shops. The redeveloper proposes to redevelop the northwest office property located within the West End Office Park and construct a large redevelopment called Terâsa. The property currently consists of a Class B/C office building that is reportedly less than 40% occupied. Terâsa would be a six-story, 223-unit mixed-use, mixed income apartment building with approximately 21,000 square feet of ground floor commercial space, potentially including a grocer, restaurant, and coffee shop. It is anticipated that the proposed redevelopment will act as a catalyst to spur further development and private investment in the West End area. Proposed concept rendering Redeveloper’s request for tax increment financing assistance: The redeveloper has applied for public financial assistance to help offset a gap in their financial proforma that prevents the Terâsa development from achieving a market rate of return sufficient to attract financing. The Page 3 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 EDA received a staff report detailing the application for financial assistance at the Nov. 18, 2024 EDA meeting along with a recommendation for the appropriate amount of financial assistance. Level and type of financial assistance: In summary, the redeveloper’s sources and uses statement, income and expense estimates, financing assumptions, cash flow projections, and investor rate of return (ROR) related to the proposed redevelopment were reviewed by staff and Ehlers (the EDA’s financial consultant). Based upon its analysis of the redeveloper’s financial proforma, Ehlers determined that tax increment assistance in the amount of $5.54 million and a loan in the amount of $1 million from the city’s Affordable Housing Trust Fund (AHTF) is necessary to enable the proposed $91.7 million redevelopment to achieve a market rate of return and sustain itself financially over time. The TIF assistance would be committed to reimburse the redeveloper for a portion of its public redevelopment costs (which includes the costs of site demolition and clearance, soil remediation, correction and foundation shoring as well as construction of affordable housing). Upon completion of the building and verification of the redeveloper’s qualified public redevelopment costs, tax increment generated from the increased value of the property would be provided to the redeveloper on a "pay-as-you-go" basis, which is the preferred financing method under the city's TIF policy. It is projected that the TIF note would be paid off in approximately 11 years with increment generated by the redevelopment, consistent with other redevelopments the EDA has previously facilitated. The AHTF loan of $1 million would bear interest at one percent and would be repaid in a lump sum at year 11. The proposed redevelopment exceeds the requirements of the AHTF policy by providing 45 housing units (20% of the total) to households earning up to 50% of area median income for 26 years. Hempel will also request the city’s housing authority board allocate project-based vouchers to provide the deeper affordability for six units for 26 years. If awarded, the project-based vouchers would allow a resident to rent an affordable unit and pay no more than 30% of their income. The project-based vouchers would be used specifically for five two-bedroom units, and one three-bedroom unit to pr ovide deeper affordability in family-sized units. This level and type of financial assistance is comparable to the financial assistance the EDA has provided to similar, recently constructed developments. For example, in 2022, the EDA approved $6.4 million in financial assistance via a pay-as-you-go TIF note for 14.5 years for the construction of The Mera. The Mera is a $68.7 million all-residential building with 233 units with 20 percent of the units affordable to households earning up to 50% area median income. Proposed business terms: The following is a summary of the proposed key business terms between the EDA and Terasa, LLC (“redeveloper”), consistent with EDA policy, city policy, past practices and previous discussions with the EDA/city council. The redevelopment property consists of the property highlighted in the aerial photo below. Page 4 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 Subject property of proposed Terâsa redevelopment 1.Redeveloper agrees to acquire the parcel at 5401 Gamble Drive (“property”). 2.Redeveloper agrees to construct a mixed-use, mixed-income redevelopment on the property consisting of approximately 223 units of multi-residential rental housing and approximately 20,668 square feet of ground floor commercial space (the “redevelopment”/“minimum improvements”). The r edevelopment’s housing shall include a mix of studio, one-bedroom, two-bedroom, and three-bedroom units. 3.The EDA agrees to reimburse the redeveloper for a portion of its public redevelopment costs (defined as the costs of site demolition and clearance, soil remediation, correction and foundation shoring as well as construction of affordable Page 5 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 housing) incurred during construction of the redevelopment through tax increment financing (TIF) up to $5,540,000. 4.The EDA agrees to issue a tax increment revenue note (“TIF note”) to the redeveloper in the maximum principal amount of $5,540,000 payable from available tax increment, generated by the redevelopment on a “pay-as-you-go” basis, over a period of approximately 11 years. The TIF note will bear interest at the lesser of 7% or redeveloper’s actual financing interest rate. The TIF note would not constitute a business subsidy because the assistance will only be used for the housing portion of the redevelopment. 5.In order to provide the tax increment to the redeveloper, the EDA agrees to establish a new housing TIF district consisting of one parcel: 5401 Gamble Drive. 6.The EDA will issue the TIF note to the redeveloper upon completion of the minimum improvements and redeveloper providing the EDA with a statement specifying the public redevelopment costs incurred by the redeveloper related to the redevelopment along with evidence that each identified public redevelopment cost has been paid or incurred by the redeveloper. 7.The TIF assistance will be subject to three separate "look back" analyses to be performed by Ehlers, the EDA’s financial consultant, as follows: 1.At the time of the completion of the redevelopment: if the amount of public development costs actually incurred is less than the amount estimated, the financial assistance will be reduced on a dollar-for-dollar basis in the amount of such deficiency and the principal amount of the TIF note will be adjusted accordingly. 2.At 95% occupancy (stabilization) or three years after issuance of the certificate of completion, whichever comes first. If the redeveloper’s cash on cash return for the redevelopment exceeds 10%, the principal amount of the TIF note will be reduced by 50% of the amount that results in the stabilized 10% cash on cash return over the stabilized term of the TIF note. 3.If the redeveloper sells or refinances the redevelopment: if the redeveloper’s cash on cash return for the minimum improvements exceeds an actual annual 10% cash on cash return measured on a cumulative basis, then 50% of the amount that exceeds the annual 10% cash on cash return will be applied to reduce the principal amount payable under the TIF note. 8.Under the provision, the redeveloper would be required to submit final project costs related to the redevelopment and reports detailing the redevelopment’s actual financial performance. The look back provision ensures that if the redevelopment’s total public redevelopment costs are lower or if the project performs financially better upon stabilization than the redeveloper’s estimates, the EDA shares economically in the success of the project by reducing the amount of TIF assistance provided. Page 6 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 9.Subject to completion of contract requirements, the first TIF note payment will commence on Aug. 1, 2028. 10.The EDA or the city will provide the redeveloper a deferred loan from its AHTF in an amount not to exceed $1,000,000. 1.The AHTF loan will bear simple non-compounding interest at 1% and the AHTF loan plus interest will be repaid at year 11. 2.Any sale of the redevelopment property is subject to approval of the EDA. 11.Construction of the redevelopment will commence by Sept. 30, 2025 and will be substantially completed by Dec. 31, 2027. 12.Redeveloper will construct the redevelopment and maintain it in good condition until the contract terminates. 13.Redeveloper will comply with the city’s inclusionary housing policy in effect at the time of its planning applications. Specifically, redeveloper agrees to a 26-year covenant designating at least 45 (20 percent) of the total rental housing units will be reserved for households earning at or below 50 percent of area median income (AMI) and distribute the affordable units as follows (or as mutually agreed by the parties): 17 studio units, 14 one-bedroom units, 13 two-bedroom units, and one three-bedroom unit. The affordable units will be comparable in design, finish, and size as the market rate units. Unit Type Market Rate 50% AMI units 30% AMI units (Project- Based Vouchers*) Total Units Percent of total units Studio 60 17 0 77 35% 1-bedroom 57 14 0 71 32% 2-bedroom 55 8 5 68 30% 3-bedroom 6 0 1 7 3% Total 178 39 6 223 100% 14.The redeveloper will seek approval from the housing authority board for an allocation of six project-based vouchers to provide deeper affordability in six units for 26 years. The vouchers will be allocated to the affordable units and be used specifically for five two-bedroom units and one three-bedroom unit. 15.Redeveloper will use reasonable efforts to meet the following business enterprise and workforce participation goals for women and black, indigenous and people of color (BIPOC) in conjunction with construction of the redevelopment: Page 7 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 Participation Goals Women BIPOC/AAPI Business Organization 10% 13% Business Enterprises 6% 13% Workforce 20% 32% Peripheral Enterprises 6% 13% Participation goals would be applied to the redevelopment as a whole and pertain to the total amount of construction and related contracts. Redeveloper would provide and use reasonable efforts to cause its contractors/subcontractors to provide certain information and resources to prospective contractor s/subcontractors before bidding; to implement procedures designed to notify women and people of color about contracting opportunities; to document steps taken to comply with participation goals and the results of actions taken; and to provide compliance re port(s), all as more particularly set forth in the contract. Failure to achieve these goals would not constitute a breach or default by redeveloper. 16.Redeveloper will comply with the city’s amended Green Building Policy as adopted in 2022 (in effect at the time of submission of its planning applications) and shall use LEED Silver as the building’s rating system to meet the requirements of the policy. Sustainability features to be included in the development include: •an energy efficient building shell with R-21 insulation, •LED lighting, •low VOC materials, •construction waste recycling, •higher efficiency HVAC systems, •low flow fixtures, •energy star appliances •recycled content materials. •The building will also include at least a 40kw rooftop solar array, electric vehicle charging equipment, organic waste collection services, and will follow the Minnesota Pollution Controls Agency’s Minimal Impact Design Standards (MIDS) for stormwater. 17.Redeveloper will install the following items, at a minimum, in conformity with the city’s planning development contract: 1.30 Level 2 electric vehicle charging stations and conduits for 50% additional future Level 2 electric vehicle charging stations. 2.Landscaping on the development property. 18.Redeveloper will provide the city a sanitary sewer easement from Gamble Drive to Parkdale Drive under the access road. 19.Redeveloper agrees not to discriminate on the basis of race, color, creed, sex, or national origin in the construction, maintenance, sale, lease, or rental of the property or minimum improvements. Page 8 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 20.Redeveloper agrees to certify that the minimum improvements have been constructed in accordance with the contract for private redevelopment and all applicable local, state, and federal laws and regulations (including but not limited to environmental, zoning, building code, labor, and public health laws and regulations). Additionally, all costs related to the minimum improvements and the redevelopment of the property, including payments to all contractors, subcontractors, and project laborers, have been paid prior to the date of the redeveloper’s request for the certificate of completion and written lien waivers have been provided from each contractor for all work done and for all materials furnished by it for construction or installation of the minimum improvements. 21.Redeveloper agrees to pay reasonable administrative costs incurred by the EDA, including consultant and attorney fees, in connection with the redevelopment. 22.If redeveloper defaults under the contract, the EDA may (among other things) terminate the TIF note and the contract and require the repayment of the AHTF loan principal and interest. 23.The contract and TIF note will terminate upon the earliest of the final payment of principal and interest on the TIF note, the required decertification of the TIF district, or an uncured event of default under the contract. Next steps: Staff will work with the EDA’s legal counsel and Hempel Real Estate to finalize the formal contract for private redevelopment based on the proposed business terms and any input received by the EDA. Formal consideration of the proposed redevelopment contract is scheduled for the Feb. 18, 2025, EDA meeting. Previous and future actions related to the proposed redevelopment’s approval process are listed below: Previous actions Governing body Date Received a report outlining the redeveloper ’s proposal for 5401 Gamble Drive. EDA/City Council Aug. 12, 2024 Discussed the redeveloper’s proposal for 5401 Gamble Drive during a special study session. EDA/City Council Aug. 19, 2024 Received report with updates of the redeveloper ’s proposal for 5401 Gamble Drive. EDA/City Council Sept. 9, 2024 EDA received a report outlining the redeveloper’s application for financial assistance and the recommended level of financial assistance. EDA Nov. 18, 2024 City council approved the resolution authorizing the distribution of an EAW for public review and comment City Council Nov. 18, 2024 Consideration of park and trail dedication fees in lieu of park and trail land. Parks and Recreation Advisory Commission Dec. 4, 2024 Page 9 Economic development authority meeting of December 16, 2024 (Item No. 7a) Title: Business terms for private development contract - Terâsa redevelopment – Ward 4 Future actions Governing body Date Public hearing and recommendation related to Hempel’s application for a preliminary and final Planned Unit Development (PUD). Planning Commission Jan. 15, 2025 Environmental Assessment Worksheet finding of fact and declaration related to the redevelopment. City Council Jan. 21, 2025 City council holds a public hearing on the establishment of the Terâsa TIF district. City Council Feb. 3, 2025 City council holds first reading of an ordinance establishing the Terâsa planned unit development. City Council Feb. 3, 2025 EDA considers the resolution adopting the Terâsa TIF district plan, establishing the Terâsa TIF district, and the contract for private development. EDA Feb. 18, 2025 City council considers a resolution approving the Ter âsa TIF district plan and the contract for private development. City Council Feb. 18, 2025 Meeting: City council Meeting date: December 16, 2024 Presentation: 3a Executive summary Title: Observance of International Migrants Day Recommended action: Mayor to read and present proclamation Policy consideration: None. Summary: International Migrants Day is observed annually on Dec. 18. This observance was proclaimed by the United Nations (UN) in 2000 to bring awareness to the complex issues impacting migrants across the world and celebrate their resilience and contributions. According to the UN, “In 2020, over 281 million people were international migrants, comprising about 3.5% of the global population, while over 59 million people were internally displaced (UN, 2020)”. St. Louis Park observes International Migrants Day as a part of our commitment to creating a more just and inclusive community for all. Financial or budget considerations: None. Strategic priority consideration: 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. Supporting documents: Resource page Proclamation Prepared by: Jocelyn I Hernandez Guitron, racial equity and inclusion specialist Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of December 16, 2024 (Item No. 3a) Page 2 Title: Observance of International Migrants Day Resource Page In observance of International Migrants Day, the City of St. Louis Park invites you to: • Learn about migrants and their stories of migration o Immigrant Stories — Home o By immigrant group | MN Compass • Understand the challenges faced by migrants o International Migrants’ Day - USCRI o Data | Missing Migrants Project City council meeting of December 16, 2024 (Item No. 3a) Page 3 Title: Observance of International Migrants Day Proclamation "International Migrants Day” Whereas, International Migrants Day is recognized annually on December 18th to bring awareness to the complex challenges faced by migrants and celebrate their resilience and contributions; and Whereas, Minnesota is home to 449,000 immigrants, including those who migrate by choice and those who migrate out of necessity, such as the estimated 35.3 million refugees by the end of 2022 (UNHCR, 2023); and Whereas, migrants leave their home countries for a better life, facing exploitation and violence on their migration journey with at least 9,000 migrants having died or gone missing during migration in the Americas since 2014, not counting those that are not reported at all; and Whereas, migrants are neighbors, colleagues, business owners, doctors, teachers, community leaders and more, contributing to what makes our state and city a great place to live and work; and Whereas, International Migrants Day is an opportunity to recognize the contributions of migrant Minnesotans in labor, culture and gastronomy that we enjoy the benefits of daily and calls us to learn about the complex challenges migrants face; and Whereas, the City of St. Louis Park encourages our community to learn about migration and do their part to build a community where migrants have respect, dignity and opportunity, Now therefore, let it be known that the mayor and city council of the City of St. Louis Park, Minnesota, observe December 18th as International Migrants Day in our community. In witness whereof, I set my hand and cause the seal of the City of St. Louis Park to be affixed this 16th day of December 2024. _________________________________ Nadia Mohamed Meeting: City council Meeting date: December 16, 2024 Minutes: 4a Unofficial minutes City council study session St. Louis Park, Minnesota Nov. 4, 2024 The meeting convened at 6:45 p.m. Council members present: Mayor Nadia Mohamed, Paul Baudhuin, Tim Brausen, Sue Budd, Yolanda Farris, Lynette Dumalag, and Margaret Rog Council members absent: none Staff present: City manager (Ms. Keller), deputy city manager (Ms. Walsh), interim fire chief (Mr. Scott), deputy fire chief (Mr. Andersen), assistant chief of training and EMS (Mr. Beauvais), police chief (Mr. Kruelle), administrative services director (Ms. Brodeen), finance director (Ms. Cruver), property maintenance and licensing manager (Mr. Pivec), building and energy director (Mr. Hoffman), racial equity and inclusion specialist (Ms. Hernandez Guitron) Guests: Martin Scheerer, Hennepin Health EMS Chief Discussion items 1. Community Health update – Vision 2025 Mr. Scott introduced the emergency response service staff and Mr. Scheerer, then presented the staff report. Council Member Baudhuin asked whether medics can operate as a medic while serving their capacity as firefighters for the fire department. Mr. Scott said there would have to be an approval process with Hennepin Health first, and there is also a component related to rate of pay. Council Member Baudhuin asked what the limits are related to medical response from medics. Mr. Beauvais stated there are prescribed protocols to follow, which are limited within the program being discussed. Council Member Rog asked for clarification on whether the proposed medic will be embedded within the police department, fire department, or be a shared resource. Mr. Scott stated they would be an alternative response embedded within the police department. Council Member Rog stated in the past, there was a large focus on seniors. In this discussion, she is now hearing more about behavioral health, and there seems to be a shift in focus. Mr. Scott stated the fire department is still focused on working with senior facilities and group homes. Council Member Rog referenced lift calls, asked what the solution is, and noted there was a large focus on this issue in the past with the Community Health Alliance. She asked how lift calls City council meeting of December 16, 2024 (Item No. 4a) Page 2 Title: Study session meeting minutes of November 4, 2024 will now be approached. Mr. Scott stated these calls can be related to behavioral health, or sometimes the aide needs assistance within the home and safety issues, noting the fire department will not lose sight of this. Council Member Budd asked if emergency services (EMS) or 911 calls are the same as calls for service (CFS). Mr. Kruelle stated that EMS calls can be for assistance from the fire department, police department, or a combination of the two. Calls for service refers to all calls. Council Member Budd stated she understood there were metrics around the reduction of CFS calls based on other resources for lift and assistance. She stated her fear is this will be lost now. Mr. Scott stated when the situation is not an emergency and is a staff ed facility, then education comes in, because non-emergency situations should not require calling 911. He added there can be alternative solutions to making a 911 call for those non-emergency type situations. Council Member Budd asked about the data management contract. Mr. Scott stated a contractor was doing data analysis on EMS calls, and now a staff member is doing this work. Council Member Budd asked what functions are lost with the sunsetting of the EMS person. Mr. Scott stated there were not significant losses with this change. There are outside social services that a person can be assisted to utilize and a separate employee is not necessary – this work can be accomplished by a fire department employee. Council Member Budd asked if anything will be lost in losing fire department interns. Mr. Andersen responded that the department did not feel this was a notable loss. He added that internship work had been very short-lived; the program had been related to past contractors. Ms. Keller added it was a good training experience for the interns , but at the comparatively short internship duration of about 80 hours, this was not a long enough program for the department to receive recognizable benefits. Council Member Farris asked why the city had worked with the other contractor. Mr. Scott stated that he had come into the role of interim chief with similar questions and concerns, which were confirmed by the results of the assessment performed on their services. Ms. Keller stated the city has a strong history of trying new things, innovating and then re-innovating and better evolving to meet needs. Mayor Mohamed stated that the community has needs that city emergency response staff may not have the tools and resources to address immediately, and this is a conversation the council is consistently holding space for. Mr. Scott confirmed that connecting people with the resources they need is very time - consuming, and the community health vision for 2025 will enable staff to address these needs better than before. Council Member Rog noted there is difficulty in finding nurse practitioners, but not in finding medics because we have them on our staff. She asked if we are looking at a new hire or an internal promotion. Mr. Scott stated the position would be filled by a new hire who will not have multiple roles and duties between being a firefighter and medic duties, but be dedicated City council meeting of December 16, 2024 (Item No. 4a) Page 3 Title: Study session meeting minutes of November 4, 2024 specifically and only as a medic. A recent local layoff has resulted in a large talent pool from which to recruit intentionally for the skills needed. Council Member Rog stated it feels unfortunate that the city is giving money back to Park Nicollet. She asked if there is a potential future partnership with Park Nicollet in this critical community health work. Ms. Keller stated in her discussions with the Park Nicollet Foundation, returning the monies makes sense and Park Nicollet stands ready to consider future proposals. Mayor Mohamed stated this topic hits close to home for her. She shared that her family has called the fire department for an emergency and she saw that gap with not having a medic on site, resulting in a longer wait for the EMT to arrive. This experience, along with doing a ride- along and seeing assisted living places and ongoing calls, showed her the need for this type of community health plan. She is excited the fire department is getting all that is needed and is supportive of the policy questions. Council Members Rog, Brausen, Budd, and Farris added they are also supportive of the policy questions. Council Member Budd thanked Mr. Scott for the metrics supported. Council Member Budd added it will be helpful also to have response times faster. 2. Racial equity and inclusion training for St. Louis Park city council members Ms. Hernandez Guitron presented the training and led the council members in an exercise. The training, “Let’s Talk About Race,” explored the dynamics of discussion about race. Council members engaged in reflection and conversation on how to mitigate barriers to honest conversations involving race. Through the guided reflection exercise, council members gained understanding of respectful engagement as they shared lived experiences around race. Counci l members voiced their thanks to staff for leading the training and exercise. Written Reports 3. Housing + neighborhood-oriented development system wrap-up Communications/meeting check-in (verbal) Ms. Keller shared that preliminary planning for future city council retreats is taking place. She asked council members to consider what training topics they would like to spend additional time on at those future retreats. The meeting adjourned at 8:45 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Meeting: City council Meeting date: December 16, 2024 Minutes: 4b Unofficial minutes City council meeting St. Louis Park, Minnesota Nov. 18, 2024 1. Call to order. Mayor Mohamed called the meeting to order at 6:15 p.m. a. Pledge of allegiance b. Roll call Council members present: Paul Baudhuin, Tim Brausen, Sue Budd, Lynette Dumalag, Yolanda Farris, Margaret Rog, Mayor Nadia Mohamed Council members absent: none Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick), deputy city manager (Ms. Walsh), associate planner (Ms. Champoux), community development director (Ms. Barton), administrative services director (Ms. Brodeen), finance director (Ms. Cruver), facilities superintendent (Mr. Eisold), legislative and grants analyst (Ms. Ferris), public services superintendent (Ms. Fisher), recreation superintendent (Ms. Friederich), public works director (Mr. Hall), engineering director (Ms. Heiser), building and energy director (Mr. Hoffman), police chief (Mr. Kruelle), zoning administrator (Mr. Morrison), interim fire chief (Mr. Scott), deputy city clerk (Ms. Scott-Lerdal), communications and technology director (Ms. Smith), financial analyst (Ms. Stephens), HR director (Ms. Vorpahl), planning manager (Mr. Walther) 2. Approve agenda. It was moved by Council Member Farris, seconded by Council Member Budd, to approve the agenda as presented. The motion passed 7-0. 3. Presentations. a. Observance of Transgender Day of Remembrance Council Member Baudhuin read the proclamation. Council Member Baudhuin stated as a parent of a transgender child and having lived in another community prior to St. Louis Park, he is grateful to be a citizen of this city and to have his child in St. Louis Park schools and churches where there is safe inclusion of transgender people. b. Observance of Small Business Saturday Council Member Brausen read the proclamation. He noted he is a small business owner and added that Small Business Saturday is observed on Nov. 30, 2024. Council Member Brausen City council meeting of December 16, 2024 (Item No. 4b) Page 2 Title: City council meeting minutes of November 18, 2024 encouraged all to support small businesses within St. Louis Park and to shop locally throughout the year. 4. Minutes. a. Minutes of Oct. 21, 2024 city council meeting b. Minutes of Nov. 4, 2024 city council meeting It was moved by Council Member Rog, seconded by Council Member Brausen, to approve the Oct. 21 and Nov. 4, 2024 city council meeting minutes as presented. The motion passed 7-0. 5. Consent items. a. Approve boards and commissions appointments b. Approve Vision 4.0 Community Committee appointments c. Resolution No. 24-148 approving newly created 2024 -2025 Assistant and Battalion Chief labor agreement d. Second reading and adoption of Ordinances No. 2685-24 and 2686-24 various amendments to Chapters 6 and 8 of the city code e. Resolution Nos. 24-144, 24-145, 24-146 and 24-147 authorizing removal of stop signs at Wayzata Boulevard and Zarthan Avenue -Ward 4 f. Approve memorandum of understanding for joint participation in shared mobility request for 2025 applications g. Resolution No. 24-149 authorizing West End Office Park redevelopment environmental assessment worksheet – Ward 4 Council Member Brausen referenced item 5a, and stated the item approves appointments of 43 people to serve on to boards and commissions . There were over 80 applicants to the open positions and he thanked everyone who applied, noting that whether they were chosen or not, their willingness to serve and help govern St. Louis Park is most appreciated. He thanked those who were appointed for their patience during the process. Council Member Rog agreed and noted the 12 appointees to the Vison 4.0 committee who will help guide and shape the community with the city vision over the next year. She thanked them for their passion and their willingness to serve. Council Member Baudhuin added there are 11 young people who were appointed to boards and commissions and stated the city has a great group of students who are interested in government and serving. Council Member Brausen added there are still four openings for youth members and encouraged students to apply for those positions. It was moved by Council Member Brausen, seconded by Council Member Baudhuin, to approve the consent items as listed; and to waive reading of all resolutions and ordinances. The motion passed 7-0. City council meeting of December 16, 2024 (Item No. 4b) Page 3 Title: City council meeting minutes of November 18, 2024 6. Public hearings. a. Resolution No. 24-150 denying appeal of and upholding the Board of Zoning Appeals determination regarding 3330 Huntington Ave. S. – Ward 2 Mr. Mattick explained the process and procedure that will be used this evening. He also stated that Council Member Dumalag does not have a conflict of interest in this matter. Mr. Morrison presented the staff report. He noted letters from the public who were not able to attend the meeting tonight, which were available during the meeting and are included in the meeting record. Mr. Ramos spoke about the location of the sport court near his property line and stated they have investigated the issue in detail. He stated the Board of Zoning Appeals (BOZA) came to their decision with incorrect measurements and an arbitrary determination. He added the city believes the basketball hoop and the edge of the sport court are not the same thing and noted there is also a buffer space. Mr. Ramos stated the BOZA did not have the authority to change the language of the city’s zoning code, and noted there have been multiple errors with measurements and deadlines. He noted the court is still in use. He stated, as appellants, they insist the city applies the code and measure from the sport court and not the equipment. Ms. Moeding stated they put up a basketball hoop and did not plan to do a sport court. She stated Mr. Ramos has been approachable during this issue, but Mrs. Ramos has not. She stated Mrs. Ramos has been videotaping her two sons playing basketball and has also spoken in profanities to her husband. She stated they have loved their home and neighbors up until this situation. She stated the Ramoses have not liked their basketball hoop or their fence and added on Friday her husband was served with a restraining order, which in her opinion is filled with lies. She stated they have never been treated like this in their lives and she is worried Mrs. Ramos will lie to the police and get her husband thrown in jail. She stated Ms. Ramos said her husband is menacing and that is not true. She state d she and her husband are upset that their family is being attacked and the situation is very stressful. She is concerned about her children playing in their own yard. She stated they have offered to put up a net, so the basketballs will not go into the Ramos’ yard, and she apologized for the time that has been wasted on this issue. Ms. Moeding added she is embarrassed and sorry. Mayor Mohamed opened the public hearing. Elizabeth White, 4118 Randall Ave., stated noise is the issue and problem for Mrs. Ramos. She stated if one does not like noise in their neighborhood, perhaps they need to move out of a compact neighborhood and into the woods. She added they appreciate their neighbors and the fact that their boys play basketball and noted they understand noise to an extent is allowed within the law. Louann Carpenter, 3924 Randall Ave., stated she has lived in the neighborhood for 28 years and was the president of the neighborhood association for many years. She noted there are a lot of basketball hoops in the neighborhood and they all encourage kids t o play basketball. She stated City council meeting of December 16, 2024 (Item No. 4b) Page 4 Title: City council meeting minutes of November 18, 2024 there is a health crisis with our children and we need to encourage them to play basketball. She encouraged the council to uphold what the BOZA has passed. Douglas White, 4118 Randall Ave., stated he grew up with parents who were small business owners. He stated he has not ever heard of someone who does not support playing basketball, and he supports it to keep kids in shape and stay out of trouble. He stated the owners are willing to put up a net to keep basketballs out of the Ramos’ yard and this should satisfy them. But he stated Mrs. Ramos does not like the sound of basketball, which is the issue. He stated they need to work something out and added they live in a delightful neighborhood where people are respectful of each other, and it is sad that this issue is happening. Paul Livdahl, 3332 Huntington Ave., stated he is the immediate neighbor to the south of the Moedings. He noted he has worked with neighbors in the past to set up a fence or move a shed and the neighbors have helped them. He stated they do not always agree with their neighbors, but they are respectful. He stated the Moedings are fantastic neighbors, and they have raised their boys to be the nicest possible kids. Jill Livdahl, 3332 Huntington Ave., noted the Moedings are a wonderful family, and they show their children what it is to be great parents. She stated for their boys to be afraid to play basketball makes her sad and she supports the Moedings and their chil dren. Chris Denson, 3327 Huntington Ave., stated the boys usually play only 15 minutes per day and then they are done. He has known the Moedings for 17 years and there has never been a problem with them. He stated they have had him and his dad over for dinner mu ltiple times and they are good people, and the kids should not have to suffer for this disagreement. Mayor Mohamed closed the public hearing. Mr. Mattick provided instructions to the council on making a determination on this item. Council Member Baudhuin asked if the city code states that basketball hoops are allowed only in back and side yards, but not in front yards. Mr. Mattick stated yes. Council Member Baudhuin asked where the line between the front and side yard is determined. Mr. Morrison stated in this case, the line is drawn along the front face of the house. Council Member Baudhuin asked where the basketball hoop falls within these definitions. Mr. Morrison stated the basketball hoop is located in the side yard. Council Member Rog stated council was provided with very thorough information from staff and the city attorney on this case and that is why there are no further questions. Mrs. Ramos explained she is not making the statement that there should be no basketball hoops in people’s yards, but we are talking about this particular location on the side where it is along the line of her driveway. She stated when there is any activity, it is very dangerous for anyone involved because the activity involves her driveway. She stated the Moedings have a large area behind their yard where they have other sports facilities, and they have ample places City council meeting of December 16, 2024 (Item No. 4b) Page 5 Title: City council meeting minutes of November 18, 2024 to relocate the basketball hoop. She stated she has not complained about any other noise or basketball hoops in other areas of the neighborhood but is complaining about this since it is right in front of her door. She stated she parks in front of her door; she is face-to-face with them, and she has to watch them from her kitchen. She stated if they were slightly moved back into their yard, this situation would be resolved. She added it has been very upsetting for her as she has never been in this type of situation before. She obtained the restraining order because grown men are coming into her backyard to retrieve basketballs, and she has no way to resolve this. She stated they have lied about her to others in the neighborhood, and those who spoke against her have never even spoken to her. She stated they do not talk to them, and there is plenty of evidence of harassment from the Moedings, and Hennepin County would not provide a restraining order if the evidence was not clear. She added the zoning code pertains to the sport court and not only to the basketball hoop. Council Member Rog stated the council has heard neighbor’s stories this evening, but the council is here to make a determination on whether it agrees with staff’s and city attorney’s opinion on city code, and should uphold that. She is sad to hear about what is happening in this neighborhood and hopes they can move forward to work this out together. She added on the matter of city code, she is in alignment with staff and the city attorney and will support their interpretation. Council Member Baudhuin agreed, and noted we are looking at how this situation fits the city’s code. He stated he is hearing ambiguity about the definition of a sport court related to the code and it seems clear that when there is ambiguity, the decision is in favor of the property owner in question. In this case, the property owner is the effected property owner, not the appellant. He thanked staff for all the information provided and will support staff’s decision on this. Council Member Budd agreed, will support the decision, and pointed out that in addition to staff’s opinion, the city council also has the planning commission/BOZA opinion. These opinions were influential to her as well. Council Member Brausen stated he appreciates everyone coming to share their opinions. He stated this is not a popularity contest on who is a good neighbor or not. He added this is about the equipment, the city code, and the five-foot setback requirement. He stated there could be some ambiguity here, but that is in favor of the homeowner, and he will support the staff and BOZA decision. Council Member Farris stated she also supports the staff decision. Mayor Mohamed added she is also in support of the staff decision and is in alignment with BOZA’s decision regarding the city code. She stated it was good to hear from each other and she appreciated everyone coming to the meeting tonight. It was moved by Council Member Dumalag, seconded by Council Member Baudhuin, to deny the appeal and uphold the Board of Zoning Appeals determination regarding 3330 Huntington Ave. S. – Ward 2. The motion passed 7-0. City council meeting of December 16, 2024 (Item No. 4b) Page 6 Title: City council meeting minutes of November 18, 2024 7. Regular business. a. First reading of cannabis zoning ordinance Ms. Champoux presented the staff report. Council Member Rog asked if there are any conditions under which the council needs to be consulted about the location of an operation, given this is planned to be wholly administratively decided. Mr. Walther stated in some zoning districts, the proposed site design could require a conditional use permit, and that would require council review, but those instances would be rare. Council Member Rog asked if appeals are anticipated. Mr. Walther stated the city’s conditions are object and easily measured, so it not expected. Council Member Rog asked if the state has started the lottery process for licenses yet. Ms. Champoux stated she does not believe the state has begun the process of awarding, yet Council Member Rog stated in St. Louis Park there are a couple of establishments that sell hemp products and asked if the city will be in the position to give priority to lower potency hemp businesses for licensing of cannabis sales. Ms. Champoux stated it has not been looked into any further. Mr. Walther added that it might come up when drafting the ordinance for the registration process. Council Member Brausen stated staff worked long and hard on this and it has been discussed by council in a study session reviewing these exact recommendations. He added it is a great framework in place and thanked staff. Council Member Rog stated she does have concerns about cannabis limitations in the Walker Lake area given its proximity to the high school and the required 1,000-foot buffer. She noted this concern in the study session and her concerns remain. Council Member Baudhuin stated he is in favor, but it is a little more restrictive than he would like. He added, however, that it is easier to loosen the parameters v ersus tightening them. He stated the city will continue to monitor. Mayor Mohamed added this is a good place to start and it has been a long conversation, with a balance between all the 50,000 people who live in this community. She thanked staff for their work. It was moved by Council Member Brausen, seconded by Council Member Dumalag, to approve the first reading of the cannabis zoning ordinance and set the second reading on Dec. 2, 2024. The motion passed 7-0. City council meeting of December 16, 2024 (Item No. 4b) Page 7 Title: City council meeting minutes of November 18, 2024 8. Communications and announcements. Mayor Mohamed shared that several members of the council recently attended the National League of Cities Conference. At the conference, Mayor Mohamed co-presented with two other mayors, and shared information on the watermain break that took place in St. Louis Park a few years ago. She added there were also specialized work sessions and it was a productive time. Council Member Brausen noted the conference allowed for sharing learnings with other elected officials around the country, and this valuable opportunity is very useful and helpful. He thanked the city taxpayers for sending council members to the conference. Ms. Keller commented on the upcoming Thanksgiving holiday, noting activities for an inclusive holiday for all. Ms. Keller added on Dec. 2, the Truth in Taxation public hearing will take place. The city holds the public hearing each year as an opportunity to improve accountability for local government. On Tuesday, Dec. 10, there will be a meeting regarding legislative priorities, and on Monday, Dec. 16, the council will discuss and formally adopt the 2025 budget. Mayor Mohamed noted the city is hiring a new Fire Chief and she hopes applicants will come to apply. 9. Adjournment. The meeting adjourned at 7:52 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Meeting: City council Meeting date: December 16, 2024 Minutes: 4c Unofficial minutes City council study session St. Louis Park, Minnesota Nov. 18, 2024 The meeting convened at 8:04 p.m. Council members present: Paul Baudhuin, Tim Brausen, Sue Budd, Yolanda Farris, Lynette Dumalag, Margaret Rog, Mayor Nadia Mohamed Council members absent: none Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick), deputy city manager (Ms. Walsh), community development director (Ms. Barton), administrative services director (Ms. Brodeen), finance director (Ms. Cruver), facilities superintendent (Mr. Eisold), legislative and grants analyst (Ms. Ferris), public services superintendent (Ms. Fisher), re creation superintendent (Ms. Friederich), public works director (Mr. Hall), engineering director (Ms. Heiser), building and energy director (Mr. Hoffman), economic development manager (Mr. Hunt), city clerk (Ms. Kennedy), police chief (Mr. Kruelle), zoning administrator (Mr. Morrison), financial analyst (Ms. Stephens), HR director (Ms. Vorpahl), planning manager (Mr. Walther), sustainability manager (Ms. Ziring) Guests: Momentum Advocacy - Natalia Madryga, Amy Koch, Alysen Nesse Discussion items 1.Revised budget Ms. Cruver presented the report related to the revised 2025 budget. Ms. Cruver asked if council supports the proposed 2025 budget as revised. She noted the balanced budget consists of an "all-inclusive” preliminary levy increase of 7.52% and includes the following components: 1. $48,598,532 for core government services and debt payments (general and debt service levies) 2. $1,194,133 for housing projects and programs (HRA levy) 3. $187,000 for economic development projects and programs (EDA levy) Ms. Cruver also asked if the council supports the revised five-year Capital Improvement Plan. Council Member Baudhuin asked if capturing new revenue will still take place, assuming the city does not establish any new TIF districts. Ms. Cruver stated a new TIF district will keep paying into city revenues. Council Member Rog stated the same-year investment does not seem to be a same-year-only decision. Ms. Cruver stated yes and added the increase in property values is an ongoing thing. Council Member Rog asked with all this development, why are property taxes not lower, especially with more TIF in the pool. Ms. Cruver stated some taxes are going down and the city Page 2 City council meeting of December 16, 2024 (Item No. 4c) Title: City council study session meeting minutes of November 18, 2024 could choose not to increase or do modest increases, and then more people would see a decrease in property taxes. However, she added the larger TIF districts will not decertify until 2028 and 2030. Council Member Budd asked with decertification of TIF districts, has funding been rolled back in. Ms. Cruver stated yes, and added some funds have been moved into the affordable housing trust fund. Council Member Budd asked if the HRA and EDA levies adjust for inflation. Ms. Cruver stated this year, all staff supported by these levies were moved into the general levy and typically that is the driver in inflation, along with salaries and benefits. She added in 2025, the HRA and EDA will fund projects only and not salaries, but this could be reviewed each year and adjusted based on economic conditions. Council Member Rog asked if the new forestry position was in the last budget or was it just an investment in trees. Ms. Cruver stated in the 2024 budget, there was an additional investment in trees, and this is on top of that and specifically for the urban forest. Council Member Rog confirmed this is not the first time council has seen this new position reflected in the budget. Ms. Cruver stated that is correct. Council Member Rog asked if business licensing includes rental. Ms. Cruver stated yes. Ms. Keller added this was a reset year on licensing. Council Member Rog asked if with the housing and social services grant program, it was a reduction from general fund expenditures as the city shifted monies to the affordable housing trust fund. Ms. Cruver stated senior services funds come out of the devel opment fund. Council Member Rog asked if the amount was $60,000 for housing. Ms. Cruver stated yes, and noted this was for housing and general support. She added rental housing support is an eligible item that can also be funded by the affordable housing trust fund. Council Member Rog asked about the status of Webster Park. Ms. Heiser stated staff is waiting for an appraisal on Webster Park from MnDOT in January 2025 and at that time, the council will be updated. Ms. Walsh stated staff is hopeful this will be a project in 2025. Council Member Brausen asked if the EDA levy can be used to build up the assets within the development fund in future years. Ms. Cruver stated that she believed this could be done. Council Member Rog stated some neighbors are not happy with 7.52% levy. She stated some would like to see the increases at a lower rate, but she is supportive of staff’s recommendations. Council Member Dumalag stated she is also supportive of staff’s recommendations and appreciated the forecast and the discussions that have taken place. Council Member Brausen added he is also supportive of staff’s recommendations on the levy. Page 3 City council meeting of December 16, 2024 (Item No. 4c) Title: City council study session meeting minutes of November 18, 2024 Council Member Baudhuin stated he is also supportive and appreciated the work staff did to reduce the levy from an earlier projection of 9%. He appreciated the presentation’s thoroughness and succinct information. Council Member Farris added she is supportive as well and added it was nice to see the levy come down from 9% to 7.5%. She thanked staff and added times are changing and things are more expensive. She shared her opinion that people will need to learn if they want to live in a nice area, they will have to pay. Council Member Budd stated she is supportive and liked the bar chart included in the agenda packet. She added the 4D NOAH credits speak to preserving naturally occurring affordable housing. Mayor Mohamed added she is also supportive and thanked staff for their work on the revised budget report. 2.First council discussion of 2025 legislative agenda Ms. Ferris presented on 2025 legislative agenda priorities along with Natalia Madryga, Amy Koch, and Alysen Nesse, representatives of Momentum Advocacy, the city’s legislative consultants. Council Member Brausen asked if there will be able a focus on direct appropriation or bonding. Ms. Koch stated bonding. Council Member Budd asked if the Wayzata Boulevard project is new. Ms. Keller stated it is in the city’s CIP, but it is new for the legislative agenda and expenses are eligible for bonding. Council Member Rog stated since the bonding bill most likely will pass, should the city be asking for more funding. Ms. Koch stated generally two bonding projects is appropriate. Council Member Brausen asked why public safety funding is being asked for related to light rail stations. Ms. Keller stated this is because city police support the safety of the light rail stations. Council Brausen stated he is supportive of the legislative priorities and noted with climate and energy, whether building performance standards should be a priority. Ms. Koch stated it can be a priority, and conversations are continuing to develop here. She stated mandates and regulations will not be a focus, but incentives will be more part of the conversation. Council Member Brausen stated he would like to see this moved into the priorities list. Ms. Fisher stated she would like to see it as well especially since Rep. Kraft has been working on this for three years and St. Louis Park staff are on the stakeholder group as well. Council Member Budd asked about housing policy and about the “missing middle” housing bill by Rep. Kraft. She asked for more information on this. Ms. Barton stated the city is looking for more affordable housing in the “missing middle”, so the city is not looking for a one -size-fits-all all mandate with affordable housing and is looking for options that are flexible. Page 4 City council meeting of December 16, 2024 (Item No. 4c) Title: City council study session meeting minutes of November 18, 2024 Council Member Budd stated since this would not be mandated, the cities that are looking for this type of housing would be the ones to fund it, and asked if that summary is correct. Ms. Barton stated the city is a leader in this area, however, there are things that would be problematic including density. St. Louis Park’s infrastructure may not be able to support that much density. She stated they are looking for ways to make changes statewide and allowing flexibility in other areas in city by city. Council Member Budd asked if this bill would address the large housing crisis that Minnesota is experiencing. Ms. Madryga stated there is great tension around this issue, and preserving local control is the question, so the one-size-fits-all approach will not be politically feasible. Council Member Budd asked if Rep. Kraft’s bill would align with the city’s priorities. Ms. Madryga stated this will be up to Rep. Kraft, but this does support what the “missing middle” is trying to do and also provides flexibility. By taking this position, the city joins a small group that works to preserve local control. Council Member Rog added all the work the city has done on updating zoning code would go away if the state were to have control here. Council Member Rog asked which general government priorities are included on the list. Council Member Budd stated she is a proponent of Family Medical Leave (FML) and asked if the city is pulling back on this position. Ms. Koch stated it passed in 2023 and was adjusted in 2024. St. Louis Park would like to incorporate more discussion about flexibility and making (FML) more workable for cities. Council Member Rog stated she would like to see open meeting law added to priorities, including the opportunity to expand access for public hearings, and also for when council members are sick or out of town. Ms. Madryga stated for general government positions, it was looking at where St. Louis Park wants to be a leader here. She stated it’s important but if the city wants to be the lead on this, then it becomes a priority. Council Member Rog stated there seem to be fewer priorities than in past years. Ms. Keller stated that the number of priorities were about the same as last year. Mayor Mohamed agreed to focus on the battles that the city can win. The political field has changed now, so we will need to find commonality in addressing issues. She stated she agrees with the priorities presented. Mayor Mohamed stated with the Republican party majority elected to federal legislative branches, there may be substantial changes. Ms. Koch stated the city will have to be mindful of that and it is a matter of crossing the aisle and finding support in most cases. Council Member Budd referenced source of income discrimination and asked about how this is being handled. Ms. Madryga stated this is being handled by the Department of Human Rights as an agency priority. She stated there was a plan for this, but progress has not been made. She Page 5 City council meeting of December 16, 2024 (Item No. 4c) Title: City council study session meeting minutes of November 18, 2024 added it is a position, but not a priority. Ms. Keller stated we will have greater progress with a quieter influence on this one. Ms. Keller confirmed the final priorities and that the building performance standards and the construction and demolition debris diversion positions be added to the priorities. Council Member Baudhuin stated he is in favor of the positions and priorities and we should not worry as much about political losses as much as just getting the right messages out. He stated this looks good for this year. Written Reports. 3.2025 proclamations and cultural observances. 4.Racial equity and inclusion system wrap-up. Communications/meeting check-in (verbal) The meeting adjourned at 9:37 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5a Executive summary Title: Resolution approving 2025 non-union employee compensation  Recommended action: Motion to adopt resolution confirming a 3% general increase for non- union employees effective Jan. 1, 2025.  Policy consideration: Does city council wish to confirm the recommended 2025 non-union employee compensation as outlined in this report?  Summary: This report details staff’s recommendation for setting non-union employee compensation for 2025. Based on a recommendation from the city’s compensation consultant, staff is asking council to confirm a 3% standard adjustment to the compensation plan for no n- union employees, allowing for regular progression through pay ranges.  Financial or budget considerations: The amount recommended has been included in the 2025 budget.  Strategic priority consideration: Not applicable. Supporting documents: Discussion Resolution Prepared by: Rita Vorpahl, HR director Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Cindy Walsh, deputy city manager City council meeting of December 16, 2024 (Item No. 5a) Page 2 Title: Resolution approving 2025 non-union employee compensation  Discussion Background: Non-union employee compensation – 3% general increase effective Jan. 1, 2025:  The city’s compensation plan, which was adopted in 1997 and revised in 2017, allows the city manager to approve the standard adjustment based on information such as market value data, the CPI, and the general financial condition of the city. Positions are reviewed on a regular basis and compared to the market, which includes metro area cities (suburbs) with populations over 25,000 but less than 90,000, as required by our compensation plan approved by city council. As a reminder, our non-union compensation plan was updated in 2017 to reflect target pay at the 85th percentile of the market based on above average employee performance.     Saado Abboud, principal consultant with Keystone Compensation Group, has reviewed St. Louis Park’s pay plan and made a recommendation for 2025 pay increases. Mr. Abboud has recommended that pay maximums for St. Louis Park would remain competitive in 2025 if increased by 3.0-3.5%. City staff are recommending a 3% increase based on what is in the 2025 budget.   Employee performance and pay: The increase for non-union employees will be applied in accordance with the city’s compensation plan. In our plan, a non-probationary employee (probation is typically six months) with above average performance receives up to double the standard increase to progress through the pay range until they reach the pay line (maximum). Positions at the maximum, employees on probation, and employees who do not have above average performance will receive the standard adjustment of 3%. Employees with unsatisfactory performance do not receive an annual increase in pay. Directors are responsible for making recommendations to the city manager on employee performance. The city manager makes final determination on employee pay increases based on performance.    City manager salary   The contract for the city manager states that base salary and benefits must be set when salaries are established for other non-union employees. Below is the current approved city manager compensation:      • 2024 salary range set for the city manager at $205,541 - $256,926.  • 2024 city manager annual salary is $230,000 annually ($110.58/hour for 2,080 work hours in 2024), not including car allowance.  Car allowance of $500 per month , *12 = $6000 annually.        How is the city manager’s pay range set?   In 2017, Keystone Compensation Group and Principal Consultant Saado Abboud revised a regional peer group to survey the base salary for the city manager position and use that information to establish a market value salary range. All cities are outside of Mi nnesota since Minnesota salaries are capped by state statute. The peer group of comparable cities based on population size and economic group contains 27 cities in seven Midwestern states.      City council meeting of December 16, 2024 (Item No. 5a) Page 3 Title: Resolution approving 2025 non-union employee compensation  The recommended 2025 salary range for the city manager would be set consistent with other non-union employees at 3% above the 2024 range, with the 2025 range being $211,707 - $264,634. The city manager would be eligible for a double the standard increase to progress through the pay range until they reach the pay line (maximum).  What is the recommended 2025 city manager pay?   It is recommended to increase the pay range for the city manager by a 3% general salary adjustment (this is consistent with what other non-union employees will receive). The city manager will receive the 3% general salary adjustment on 1/1/2025 consistent with other nonunion staff. Council will then determine if there is an additional pay increase, and the percentage of the pay increase, in the first quarter of 2025 in conjunction with the city manager’s annual performance review.   General comment: Copies of the compensation plan are on file with the city clerk.  City council meeting of December 16, 2024 (Item No. 5a) Page 4 Title: Resolution approving 2025 non-union employee compensation    Resolution No. 24-___    Approving 2025 compensation for non-union employees    Whereas the city council established and approved, by Resolution No. 17-012, the Position Classification and Compensation Plan for the City of St. Louis Park, and Section VIII -C of such plan directs the city manager to approve the standard adjustment to the plan; and    Whereas the city council wishes to adopt policies for city employees and has conferred upon the city manager the power to establish and administer additional administrative policies and rules as may be appropriate for the employment practices of the city ,   Now therefore be it resolved that the city council of the City of St. Louis Park confirms the city manager’s decision to implement a standard adjustment of 3%, effective January 1, 2025 for non-union employees in accordance with the Position Classification and Compensation Plan.    Reviewed for administration:    Adopted by the city council December 16, 2024:                   Kim Keller, city manager    Nadia Mohamed, mayor         Attest:                         Melissa Kennedy, city clerk      Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5b Executive summary Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Recommended action: Motion to adopt resolution authorizing the special assessment for the installation of nine new high efficiency windows at the multifamily property at 4040 West 36th Street, St. Louis Park, MN P.I.D. 06-028-24-41-0007. Policy consideration: The proposed action is consistent with policy previously established by the city council. Summary: Max Foster of 4040 MF LCC, Daniel Frank of 4040 DF LLC, Alan Gilbert, David Gotlieb, Marlee Zweigbaum of the Michael Zweigbaum 2012 Irrevocable Grantor Trust and Larry Zweigbaum of the Minnie L. Zweigbaum Revocable Trust and the Nathan S. Zweigbaum Family Trust have recently acquired the 4040 West 36th street property through a contract for deed ownership structure with Larry Zweigbaum of the Minnie L. Zweigbaum Revocable Trust and the Nathan S. Zweigbaum Family Trust. The property is a 14-unit multifamily property known as Zola Apartments. The property was built in 1960 and has original windows. The property owners have requested the city authorize the installation of nine high efficiency windows to replace the current inefficient, non-operable windows in resident bathrooms and assess the cost against the property in accordance with the city’s special assessment policy. This is the third project to be proposed through the special assessment for energy improvements program since it was adopted by the city council in 2022. Proposals for this window project were collected, submitted and approved by city staff for feasibility. The property owners have petitioned the city to authorize the installation and specially assess the cost. The total eligible cost has been determined to be $9,000. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Resolution Petition Prepared by: Ellie Rabine, sustainability specialist Reviewed by: Emily Ziring, sustainability manager Emily Carr, assessment technician Brian Hoffman, building and energy director Approved by: Kim Keller, city manager City council meeting of December 16, 2024 (Item No. 5b) Page 2 Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street -Ward 2 Resolution No. 24-____ Authorizing the special assessment for the installation of high efficiency windows at 4040 West 36th Street, St. Louis Park, MN P.I.D. 06-028-24-41-0007 Whereas, the property owners at 4040 West 36th Street have petitioned the City of St. Louis Park to authorize a special assessment for the installation of high efficiency windows at 4040 West 36th Street; and Whereas, the property owners have agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota, that: 1.The petition from the property owners requesting the approval and special assessment for the high efficiency windows is hereby accepted. 2. The high efficiency window installation, if done in conformance with the proposal approved for feasibility by the Department of Building and Energy, is hereby accepted. 3.The total cost for the high efficiency window installation is accepted at $9,000. 4. The property owners have agreed to waive the right to a public hearing, notice and appeal from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The property owners have agreed to pay the city for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 5.5%. 6. The property owners have executed an agreement with the city and all other documents necessary to implement the special assessment and all costs associated therewith. Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk CITY OF ST LOUIS PARK PETITION FOR PUBLIC IMPROVEMENT AND ASSESSMENT AGREEMENT ENERGY IMPROVEMENT FOR THE PROPERTY LOCATED AT 4040 WEST 36th STREET, ST. LOUIS PARK, MN 55426 AGREEMENT made as of November 25, 2024, between the City of St. Louis Park, a Minnesota corporation ("City") and, Max Foster of 4040 MF LLC and Daniel Frank of 4040 DF LLC, Alan Gilbert, David Gotlieb, and Marlee Zweigbaum of the Michael Zweigbaum 2012 Irrevocable Grantor Trust, and Larry Zweigbaum of the Minnie L. Zweigbaum Revocable Trust and the Nathan S.Zweigbaum family Trust of 4040 West 36th Street property ("Property Owner(s))", concerning special assessment on energy improvement on property located at 4040 West 36th Street, St. Louis Park, MN, 55426, Hennepin County P.I.D. number 06-028-24-41-0007, The City and the Property Owner agree as follows: 1)Property Owner(s). The Property Owners authorized representatives are Max Foster of 4040 MF LLC ("purchaser"), a Minnesota limited liability company, Daniel Frank of 4040 OF LLC ("purchaser"), a Minnesota limited liability company and Michael Zweigbaum 2012 Irrevocable Grantor Trust ("purchaser"). Members of the 2012 Irrevocable Grantor Trust include Alan Gilbert, David Gotlieb and Marlee Zweigbaum. Larry H. Zweigbaum as Trustee of the Minnie L.Zweigbaum Revocable Trust and Trustee of the Nathan S. Zweigbaum Family Trust is listed as a "seller" on the Contract for Deed (see "Exhibit C"). 2)S1..1bject Property. The Property Owners are the fee owners of the property legally described in Attached "Exhibit A" incorporated by reference herein. 3)Purpose of Agreement. Pursuant to Minnesota Statutes, Chapter 429.031 subd. 3 and upon condition of approval, St. Louis Park Resolution 24-081, the Property Owners petitioned the City on November 25, 2024, to facilitate the installation of nine high efficiency windows on the building at the Benefited Property and then to specially assess the cost of the installation against the Benefitted Property. The Property Owners' chosen proposal attached as "Exhibit B" is incorporated into this agreement by reference. Additional details on window specifications, including efficiency ratings, are included within the proposal. The City Council has determined that it is in the best interest of the public for the City to facilitate the installation of high efficiency windows in the Benefited Property to promote public health, safety, and welfare. The amended resolution is St. Louis Park Resolution 24-081, upon condition of approval. 4)Administrative Fee.· An administrative fee of $150 for the processing of the special assessment shall be received by the city prior to the release of special assessment funds. 5)The Improvement Project. The Project shall consist of the installation of nine high efficiency windows on the commercial/multifamily building, to provide an improved building 124567 22518)v4 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 3 envelope and necessary air circulation, at the Benefited Property in conformance with proposals for feasibility as described in Exhibit B and as approved by the St. Louis Park Building and Energy Department. 6)Responsibility. The Property Owners shall assume all responsibility for the installation, operation, and maintenance of the high efficiency windows, including all construction contracts. 7)Amount to be assessed. The total estimated cost of the project, based on the lowest responsible bid, is $9,000, all of which is proposed to be assessed against the Benefited Property as described in Paragraph 2 above. It is hereby agreed that the full cost of the project and minus the administrative fee of $150 will be assessed against the property. The total Special Assessment against the property will be $9,000. To the extent that the project is not completed according to this agreement, the City may still record this agreement and assess the costs incurred against the Benefited Property. Waiver of �-.liYiice and Hearing. In connection with this improvement, the Property Owners agree to waive and does waive any and all rights to public hearing and right to any notice, whether provided b•; iV1innesota Statutes, Chapter 429, or any other statute or by ordinance, City Charter, constitution, 01· common iaw. 8) Waiver of Right of Appeal. In connection with this improvement, the Property Owners agree w waive and does waive any and all rights to appeal from the special assessment set forth above, whether provided by Minnesota Statutes, Chapter 429, or any other statute or by ordinance, City Ch2rter, constitution, or common law. 9)Implementation. Each party to this agreement agrees to execute any other documents upon request of the City, necessary to implement the waivers of notice, hearing and right of appeal for the special assessment for the improvement project. 10)Payment. The Property Owners agree to pay the City for the cost of the above improvements through a special assessment in accordance with the following terms: 124567 225183v4 a)The assessment shall be paid in equal installments over ten {10) years at five point five percent (5.5%) interest on the unpaid balance and in accordance with all provisions of the City policy for special assessments for energy improvements. b)Interest shall begin to accrue on any portion of the special assessment funds from the time that portion is released by the City. 2 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 4 11)Release of Funds. The City shall release the special assessment funds directly to the contractor for the total amount of $9,000, after receiving the administrative fee of $150 and the following steps have been completed: a)After the City has completed the final inspection and determined that the installation of the high efficiency windows is in conformance with the applicable City ordinances and State laws, the Property Owners will provide the following documents to the City to allow the City to release the Project Completion Balance to the contractor: 1. A sworn construction statement stipulating the contractors and suppliers involved in the high efficiency window on the Benefited Property, and 2.A written notice from the Property Owners that they have determined the installation of the high efficiency windows has been substantially completed as stipulated in their contract with their contractor, and 3.Evidence of receipt of a lien waiver from the contractors and suppliers for the improvement project on the Benefited Property. 13}indemnification. The Property Owners shall indemnify and hold harmless the City and its office,3, ag2nts, and employees from and against all claims, damages, losses, or expenses, including attor:·,ey5' fees, which may be suffered or from which they may be held liable, arising out of or resu!ting from the assertion against them of any claims, debts or obligations in consequence cf the performance of this agreement by the City, its employees, agents or subcontractors. 14) Certification of Encumbrances or Contract for Deed. Each party to this agreement certifies that the property described in Paragraph 1 above, is owned by that party in fee simple and is free and clear of all encumbrances or Contracts for Deed except as follows: a)CONTRACT FOR DEED (the "Contract") dated 6/28/2024 by Larry H. Zweigbaum as Trustee of the Minnie L. Zweigbaum Revocable Trust dated February 9, 1998 as amended and Larry H. Zweigbaum as Trustee of the Nathan S. Zweigbaum Family Trust ("Seller"), and 4040 OF LLC a Minnesota limited liability company, 4040 MF LLC a Minnesota limited liability company and Michael Zweigbaum 2012 Irrevocable GrantorTrust dated 10-29-12 ("Purchaser"). Contract for deed attached as "Exhibit C". 15)Right to Record. It is agreed that the City may record this document in the chain of title of the Benefited Property legally described above. l 24567 22518),•4 3 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 5 - This agreement has been entered into as of the 25 day of November 2024. FOR THE CITY OF ST. LOUIS PARK: Attest: City Clerk (seal) *FOR THE PROPERTY OWNER: ADDITIONAL ENCUMSRANCE(S) 124567 225183v4 Mayor City Manager Accounting Records Posted: Finance Manager PR� Ala") G\ 1 b14 J M 1if£.ab JN[ lw1t,t'&f t\l :u,o l«ti1,tll bu-f"Pn'li.!v" Tr"'s t City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 6 I / I *All signatures of owners or encumbrances must be acknowledged by a Notary Public. STATE OF MINNESOTA ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this 25 day of November 2024, by /v?� 10>� _______________________ __, Property Owner(s) ary�ublic BRENT C SORENSON NOTARY PUBLIC -MINNESOTA MY COMMISSION EXPIRES 01/31/26 THIS AGREEMENT WAS DRAFTED BY: St. Louis Park Building & Energy Department 5005 Minnetonka Boulevard, St. Louis Park, MN 55416 952.924.2588 [24567 225l83v4 5 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 7 *All signatures of owners or encumbrances must be acknowledged by a Notary Public. STATE OF MINNESOTA COUNTY OF HENNEPIN SS. The foregoing instrument was acknowledged before me this 25 day of November 2024, by -----------------------� Property Owner(s} Notary P i;:t,..-..i------11!1:,,d!<,,;,,_9-!!,,, Angela J Nelson Notary Public I Minnesota My Commission Expires January 31, 20 THIS AGREEMENT WAS DRAFTED BY: St. Louis Park Building & Energy Department 5005 Minnetonka Boulevard, St. Louis Park, MN 55416 952.924.2588 124567 225183v4 5 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 8 *All signatures of owners or encumbrances must be acknowledged by a Notary Public. STATE OF MINNESOTA COUNTY OF HENNEPIN ss. The foregoing instrument was acknowledged before me this 25 day of November 2024, by _______________________ _, Property Owner(s) - WENDY A BERKLICH Notary Public Minnesota MyCommissionExpires.lamsy31,2030 THIS AGREEMENT WAS DRAFTED BY: St. Louis Park Building & Energy Department 5005 Minnetonka Boulevard, St. Louis Park, MN 55416 952.924.2588 124567 225 I 83v4 5 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 9 '-----------------'------- Property ID number: 06-028-24-41-0007 124567 225183v4 EXHIBIT A 6 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 10 EXHIBIT B SNE Construction proposal dated 10/11/2024 (attached) Contract for Deed dated 7/11/2024 124567 225183v4 EXHIBIT C 7 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 11 Hennepin County > Property > Property information search > PINS home > Address search results Close all Sales information Address search results Property tax information taxinfo@hennepin.us Phone: 612-348-3011 A-600 Government Center 300 South 6th Street Minneapolis, MN 55487 M-F, 8 a.m. to 4:30 p.m. Map Useful links Change taxpayer information Homestead information Pay property taxes Parcel Data for Taxes Payable 2024 Current year taxes due Information for Prior Years 2025 proposed property tax (Truth In Taxation statement) View map of property Recent recording history Current year values Printer-friendly This database is updated daily (Monday - Friday) at approximately 9:15 p.m. (CST ) Property ID number: Address: Municipality: School district: Watershed: Sewer district: Construction year: Owner name: Taxpayer name and address: 06-028-24-41-0007 4040 36TH ST W ST. LOUIS PARK 283 3 1960 M L ZWEIGBAUM ET AL TRUSTEES 4040 DF LLC 3300 PLYMOUTH BLVD #46093 PLYMOUTH MN 55446 Sales prices are reported as listed on the Certi cate of Real Estate Value and are not warranted to represent arms-length transactions. Sale date: June, 2024 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 12 Value and tax summary for taxes payable 2024 Close all $1,600,000Sale price: Transaction type: Tax parcel description The following is the County Auditor's description of this tax parcel. It may not be the legal description on the most recent conveyance document recording ownership. Please refer to the legal description of this property on the public record when preparing legal documents for recording Addition name: Lot: Block: Approximate parcel size: Metes & Bounds: Common abbreviations Abstract or Torrens: UNPLATTED 06 028 24 SW156X180X120X163 COM AT A PT DIS 227 75/100 FT NWLY AT RT ANGLES FROM CTR LINE OF EXCELSIOR AVE FROM A PT DIS 240 7/10 FT NELY ALONG SAID CTR LINE OF ROAD FROM ITS INTERSEC WITH A LINE BEARING S 45 DEG 36 MIN E FROM A PT IN S LINE OF NE 1/4 OF SE 1/4 DIS 254 5/10 FT E FROM THE SW COR THEREOF TH WLY AT AN ANGLE TO THE LEFT OF 33 DEG 41 MIN DIS 36 5/10 FT TH NWLY AT AN ANGLE TO THE RT OF 33 DEG 41 MIN DIS 120 FT TH NELY AT RT ANGLES 180 FT TH SELY AT RT ANGLE 120 FT TH SLY TO BEG TORRENS $1,890,000 $1,890,000 $30,749.86 Show Net Tax Details - This feature is not accurate for tax bills less than $10.00. $30,749.86 Go to taxes due Values established by assessor as of January 2, 2023 Estimated market value: Taxable market value: Total improvement amount: Total net tax: Total special assessments: Solid waste fee: Total Tax: Property information detail for taxes payable 2024 Values established by assessor as of January 2, 2023 $210,000 $1,680,000 $1,890,000 APARTMENT NON- HOMESTEAD Values: Land market: Building market: Machinery market: Total market: Qualifying improvements: Veterans exclusion: Homestead market value exclusion: Classi cations: Property type: Homestead status: Relative homestead: Agricultural Exempt status: City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 13 12974 30th Street S Afton, Mn 55001 Phone: 612-616-6285 e-mail: sneconstruction@netzero.com MN License #BC188961 SNE Construction, Inc. October 11, 2024 Zola Apartments Bathroom Window Replacement Purchase and install Hayfield 701 series awning window in black Interior Color White Exterior Laminate Black BetterView Fiberglass Full Screen Screen Color White Hardware Color White LowE Double Glazed No Tint No Pattern Argon Filled 3/32” (2.3mm) U-Value .27 SHGC .34 Windows will be inserts, insulated and caulked Additional requirements by the city may incur additional charges Estimate $750.00/each plus permit fee If any issues are found after existing window is removed will be billed at $250/ window, but billed only if incurred. As Viewed from Outside Note: 9 windows to be installed, as confirmed by property owner, Max Foster. Total cost is ($750 x 9)+($250 x 9) = $9,000 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 14 40.75 wide x 23.75 high This estimate will automatically expire within 30 days of the date shown above. All material is guaranteed to be as specified and all work shall be performed in a workman-like manner in accordance with the above specifications. Alterations or deviations from the above specifications will be made upon written change order. Owner assumes the risk of concealed or unknown conditions, which delay or increase the cost of our performance and agrees to pay reasonable additional charges resulting from these conditions. Contractor is not responsible for delays resulting from weather, accidents, material shortage or other causes beyond their control. Contractor is not responsible for damages due to vibration neither caused by workman nor responsible for consequential damages caused as a result of any conditions of this agreement. All work is warranted as specified and to be performed in a workman-like manner. Owner’s sole remedy for breach of any and all warranties, whether expressed or implied shall be limited to repair and/or replacement of labor and materials supplied hereunder. Owner agrees to pay additional charges including reasonable hourly rates for idle equipment and/or personnel resulting from delays of our performance caused by the owner or owner’s contractors. Unless otherwise agreed, payment shall be due upon completion of the job and invoices are payable 10 days after receipt. City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 15 C.V. filed_X_C.V. not req. ___ _ No delinquent taxes Transfer Entered Jul 11, 2024 11 :03 AM Hennepin County, Minnesota Daniel Rogan County Auditor and Treasurer PID(s) 06-028-24-41-0007 Existing Certs 1336522 11 11 11 11 1111 11111 111 II LAND TYPE Torrens (T) DOC NUM 6084013 Certified, filed and/or recorded on Jul 11, 2024 11 :03 AM Office of the Registrar of Titles Hennepin County, Minnesota Amber Bougie, Registrar of Titles Daniel Rogan, County Auditor and Treasurer Deputy 87 Pkg ID 2689616E CRV# 1664960 Document Recording Fee $46.00 Document Total $46.00 This cover sheet is now a permanent part of the recorded document. City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 16 CONTRACT FOR DEED by Business Entity DATE: �'.? \·.),,)S (Top 3 inches reserved for recording data) , 2024 THIS CONTRACT FOR DEED (the "Contract") is made on the above date by Larry H. Zweigbaum as Trustee of the Minnie L. Zweigbaum Revocable Trust dated February 9, 1998 as amended and Larry H. Zweigbaum as Trustee of the Nathan S. Zweigbaum Family Trust ("Seller"), and 4040 OF LLC a Minnesota limited liability company, 4040 MF LLC a Minnesota limited liability company and Michael Zweigbaum 2012 Irrevocable Grantor Trust dated 10-29-12 ("Purchaser"). /Check box it O joint tenancy.) Seller and Purchaser agree to the following terms: , • 1. Property Description. Seller hereby sells and Purchaser hereby buys real property in Hennepin County, Minnesota, described as follows: See Exhibit A attached hereto and incorporated herein by reference. Check here if all or part of the described real properly is Registered (Torrens) ■ together with all hereditaments and appurtenances belonging thereto (the "Property''). Unless otherwise specified, Seller hereby delivers possession of the Property to Purchaser on the date hereof. Check applicable box: II The Seller certifies that the Seller does not know of any wells on the described real property. D A well disclosure certificate accompanies this document or has been electronically filed. (If electronically filed, insert WDC number: [ ... ].) D I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. ECB-3012 Page 1 of 9 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 17 Page 2 of 9 CONTRACT FOR DEED 2.Title. Seller warrants that title to the Property is, on the date of this Contract, subject only to the following exceptions: (a)Covenants, conditions, restrictions (without effective forfeiture provisions) and declarations of record, if any; (b)Reservation of minerals or mineral rights by the State of Minnesota, if any; (c)Utility and drainage easements which do not interfere with present improvements; (d)Applicable laws, ordinances, and regulations: (e)The lien of real estate taxes and installments of special assessments which are payable by Purchaser pursuant to paragraph 6 of this Contract: and (0 The following liens or encumbrances: None. 3.Delivery of Deed and Evidence of Title. Upon Purchaser's full performance of this Contract, Seller shall: (a)Execute, acknowledge, and deliver to Purchaser a Warranty Deed, in recordable form, conveying marketable title to the Property to Purchaser, subject only to the following exceptions: (i)Those exceptions referred to in paragraph 2(a), (b), (c), (d), and (e) of this Contract; (ii)Liens, encumbrances, adverse claims or other matters which Purchaser has created, suffered or permitted to accrue after the date of this Contract; and (iii) The following liens or encumbrances: (b) Deliver to Purchaser the abstract of title to the Property, without further extension, to the extent required by the purchase agreement (if any) between Seller and Purchaser. 4. Purchase Price. Purchaser shall pay to Seller at ________ the sum of One Million Six Hundred Thousand and 00/100 Dollars ($1,600.000.00), as and for the purchase price (the "Purchase Price") for !lie Properly, payable as follows: (a)$600,000.00 cash, the receipt of which is acknowledged. (b)$1,000,000.00 by Contract for Deed provided as follows: (i)Purchaser shall make monthly payments to the Seller in the amount of interest only and the initial monthly payment shall be $5,000.00. Interest shall be calculated at the rate of 6.0% per annum. Interest shall accrue from the date of closing and payments shall be credited first to accrued interest and the remainder to principal. (ii) The first payment shall be due on August 1, 2024 and continue on the first of each month thereafter with a final Balloon Payment due on June 28, 2027. THE FINAL PAYMENT IS A BALLOON PAYMENT. 5. Prepayment. Unless otherwise provided in this Contract, Purchaser shall have the right to fully or partially prepay this Contract at any time without penalty. Any partial prepayment shall be applied first to payment of amounts then due under this Contract, including unpaid accrued interest, and the balance shall be applied to the principal installments to be paid in the inverse order of their maturity. Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this Contract or change the amount of such installments. 6. Real Estate Taxes and Assessments. Real estate taxes and installments of special assessments which are due and payable in the year in which this Contract is dated shall be paid as follows: Pro rated to the day of closing. Purchaser shall pay, before penalty accrues, all real estate laxes and installments of special assessments assessed against the Property which are due and payable in all subsequent years. Seller warrants that the real estate taxes and installments of special assessments which were due and payable in the years preceding the year in which this Contract is dated are paid in full. If the Property is subject to a recorded declaration providing for assessments to be levied against the Property by any owners' association, Purchaser shall promptly pay, when due, all assessments imposed by the owners' association or other governing body as required by the provisions of the declaration or other related documents. 7.Property Insurance. (a)Insured Risks and Amounts. Purchaser shall keep all buildings, improvements, and fixtures now or later located on or a part of the Property insured against loss by fire, lightning and such other perils as are included in a standard "all-risk" endorsement, and against loss or damage by all other risks and hazards covered by a standard extended coverage insurance policy, including, without City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 18 Page 3 of9 CONTRACT FOR DEED limitation, vandalism, malicious mischief, burglary, theft and, if applicable, steam boiler explosion. Such insurance shall be in an amount no less than the full replacement cost of the buildings, improvements, and fixtures, without deduction for physical depreciation. If any of the buildings, improvements, or fixtures are located in a federally designated flood prone area, and if flood insurance is available for that area. Purchaser shall procure and maintain flood insurance in amounts reasonably satisfactory to Seller. (b) Other Terms. The insurance policy shall contain a loss payable clause in favor of Seller which provides that Seller's right to recover under the insurance shall not be impaired by any acts or omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and privileges customarily provided a mortgagee under the so-called standard mortgage clause. (c) Notice of Damage. In the event of damage to the Property by fire or other casualty, Purchaser shall promptly give notice of such damage to Seller and the insurance company. 8.Damage to the Property. (a)Application of Insurance Proceeds. If the Property is damaged by fire or other casualty, the insurance proceeds paid on account of such damage shall be applied to payment of the amounts payable by Purchaser under this Contract, even if such amounts are not then due to be paid, unless Purchaser makes a permitted election described in the next paragraph. Such amounts shall be first applied to unpaid accrued interest and next to the installments to be paid as provided in this Contract in the inverse order of their maturity. Such payment shall not postpone the due date of the installments to be paid pursuant to this Contract or change the amount of such installments. The balance of insurance proceeds, if any, shall be the property of Purchaser. (b) Purchaser's Election to Rebuild. If Purchaser is not in default under this Contract, or after curing any such default, and if the mortgagees in any prior mortgages and sellers in any prior contracts for deed do not require otherwise, Purchaser may elect to have that portion of such insurance proceeds necessary to repair, replace, or restore the damaged Property (the "Repairs") deposited in escrow with a bank or title insurance company qualified to do business in the State of Minnesota, or such other party as may be mutually agreeable to Seller and Purchaser. The election may only be made by written notice to Seller within sixty (60) days after the damage occurs. Also, the election will only be permitted if the plans and specifications and contracts for the Repairs are approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the Repairs, Purchaser shall, before the commencement of the Repairs, deposit into such escrow sufficient additional money to insure the full payment for the Repairs. Even if the insurance proceeds are unavailable or are insufficient to pay the cost of the Repairs, Purchaser shall at all times be responsible to pay the full cost of the Repairs. All escrowed funds shall be disbursed by the escrowee in accordance with generally accepted sound construction disbursement procedures. The costs incurred or to be incurred on account of such escrow shall be deposited by Purchaser into such escrow before the commencement of the Repairs. Purchaser shall complete the Repairs as soon as reasonably possible and in a good and workmanlike manner, and in any event the Repairs shall be completed by Purchaser within one ( 1) year after the damage occurs. If, following the completion of and payment for the Repairs, there remains any undisbursed escrow funds, such funds shall be applied to payment of the amounts payable by Purchaser under this Contract in accordance with paragraph B(a) above. (c) Owners' Association. If the Property is subject to a recorded declaration, so long as the owners' association maintains a master or blanket policy of insurance against fire, extended coverage perils and such other hazards and in such amount as are required by this Contract, then: (i) Purchaser's obligation in the Contract to maintain hazard insurance coverage on the Property is satisfied; (ii) the provisions of paragraph B(a) of this Contract regarding application of insurance proceeds shall be superseded by the provisions of the declaration or other related documents; and (iii) in the event of a distribution of insurance proceeds in lieu of restoration or repair following an insured casualty loss to the Property, any such proceeds payable to Purchaser are hereby assigned and shall be paid to Seller for application to the sum secured by this Contract, with the excess, if any, paid to Purchaser. 9.Injury or Damage Occurring on the Property. (a)Liability. Seller shall be free from liability and claims for damages by reason of injuries occurring on or after the date of this Contract to any person or persons or property while on or about the Property. Purchaser shall defend and indemnify Seller from all liability, loss, cost, and obligations, including reasonable attorneys' fees, on account of or arising out of any such injuries. However, City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 19 Page 4 of 9 CONTRACT FOR DEED Purchaser shall have no liability or obligation to Seller for such injuries which are caused by the negligence or intentional wrongful acts or omissions of Seller. (b) Liability Insurance. Purchaser shall, at Purchaser's own expense, procure and maintain liability insurance against claims for bodily injury, death and property damage occurring on or about the Property in amounts reasonably satisfactory to Seller and naming Seller as an additional insured. 10. Insurance Generally. The insurance which Purchaser is required to procure and maintain pursuant to paragraphs 7 and 9 of this Contract shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be maintained by Purchaser at all times while any amount remains unpaid under this Contract. The insurance policies shall provide for not less than ten (10) days written notice to Seller before cancellation, non-renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate original or certificate of such insurance policy or policies. 11. Condemnation. If all or any part of the Property is taken in condemnation proceedings instituted under power of eminent domain or is conveyed in lieu thereof under threat of condemnation, the money paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the amounts payable by Purchaser under this Contract, even if such amounts are not then due to be paid. Such amounts shall be applied in the same manner as a prepayment as provided in paragraph 5 of this Contract. Such payments shall not postpone the due date of the installments to be paid pursuant to this Contract or change the amount of such installments. The balance, if any, shall be the property of Purchaser. 12. Waste, Repair, and Liens. Purchaser shall not remove or demolish any buildings, improvements, or fixtures now or later located on or a part of the Property, nor shall Purchaser commit or allow waste of the Property. Purchaser shall maintain the Property in good condition and repair. Purchaser shall not create or permit to accrue liens or adverse claims against the Property which constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any such liens or adverse claims. 13. Compliance with Laws. Except for matters which Seller has created, suffered, or permitted to exist prior to the date of this Contract, Purchaser shall comply or cause compliance with all laws and regulations of any governmental authority which affect the Property or the manner of using or operating the same, and with all restrictive covenants, if any, affecting title to the Property or the use thereof. 14. Recording of Contract; Deed Tax. Purchaser shall, at Purchaser's expense, record this Contract in the Office of the County Recorder or Registrar of Titles in the county in which the Property is located within four (4) months after the date hereof. Purchaser shall pay any penalty imposed under Minn. Stat. 507.235 for failure to timely record the Contract. Seller shall, upon Purchaser's full performance of this Contract, pay the deed tax due upon the recording of the deed to be delivered by Seller. 15. Notice of Assignment. If either Seller or Purchaser assigns its interest in the Property, the assigning party shall promptly furnish a copy of such assignment to the non-assigning party. 16. Protection of Interests. If Purchaser fails to pay any sum of money required under the terms of this Contract or fails to perform any of the Purchaser's obligations as set forth in this Contract, Seller may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated in paragraph 4 of this Contract, as an additional amount due Seller under this Contract. If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage, contract for deed, lien or encumbrance against the Property which is not herein expressly assumed by Purchaser, and provided Purchaser is not in default under this Contract, Seller shall timely pay all amounts due thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent amounts or take any actions reasonably necessary to cure defaults there under and deduct the amounts so paid together with interest at the rate provided in this Contract from the payments next coming due under this Contract. City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 20 Page 5 of 9 CONTRACT FOR DEED 17. Defaults and Remedies. The time of performance by Purchaser of the terms of this Contract is an essential part of this Contract. If Purchaser fails to timely perform any term of this Contract, Seller may, at Seller's option, elect to declare this Contract cancelled and terminated by notice to Purchaser in accordance with applicable law or elect any other remedy available at law or in equity. If Seller elects to terminate this Contract, all right, title, and interest acquired under this Contract by Purchaser shall then cease and terminate, and all improvements made upon the Property and all payments made by Purchaser pursuant to this Contract (including escrow payments, if any) shall belong to Seller as liquidated damages for breach of this Contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor any waiver by Seller of Seller's rights to declare this Contract forfeited by reason of any breach shall in any manner affect Seller's right to cancel this Contract because of defaults subsequently occurring, and no extension of time shall be valid unless agreed to in writing. After service of notice of default and failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until the expiration of such period. Failure by Seller to exercise one or more remedies available under this paragraph 17 shall not constitute a waiver of the right to exercise such remedy or remedies thereafter. 18.Binding Effect. The terms of this Contract shall run with the land and bind the parties hereto and the successors in interest. 19.Headings. Headings of tile paragraphs of this Contract are for convenience only and do not define, limit, or construe the contents of such paragraphs. 20. Additional Terms: Check here if ■ an addendum to this Contract containing additional terms and conditions is attached hereto. City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 21 Page 6 of 9 Seller Larry H. Zweigbaum as Trustee of the Minnie L. Zweigbaum Revocable Trust dated February 9, 1998 as amended By: �d!\,� 9--t . '� r ),,-4tiJ!r? Larry H. Zweid'naum Its: Trustee Larry H. Zweigbaum as Trustee of the Nathan S. Zweigbaum Family Trust By: ,:��'Uzl 1{ · �Lt.,�rf3zv-vyy-) Larry H. Z eigbaum J Its: Trustee Purchaser 4040 OF LLC By: ·0,,"ic\ ;:.=t-"'"""V\k CONTRACT FOR DEED Its: _______________ _ 4040MF LLC / /bt� /1"" x· • I t---, By:--------------- Its: Trustee City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 22 Page 6 of 9 Seller CONTRACT FOR DEED Purchaser Michael Zweigbaum 2012 Irrevocable Gran tor Trust dated 10-29-12 By:---------------- ��� By: ----�--41---------- Marlee Zweigbaum Its: Trustee City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 23 Page 6 of 7 CONTRACT FOR DEED State of Minnesota, County of __ ·-M�· _·;_)_..('"""\ ·1�1 e�· t9+, �"° .... ', __ _: \ \ This instrument was acknowledged before me on \;? \ )'.:J, \d•) , 2024, by Larry H, Zweigbaum as Trustee of the Minnie L. Zweigbaum Revocable Trust Revocable Trust dated February 9, 1998 as amended_ ./ ,-' '"' (Stamp) MELONY MARIE STEBER ' NOTARY PUBLIC MINNESOTA My Commission Expiros Jan. 31, 2029 j /,,. ' \'---�-r -- R _ / '--(sig�cer} Title (and Rank): ____________ _ My commission expires: ----,--.,-,--..,.----­ /monthldaylyearJ State of Minnesota, County of ___ ·.;.f_' \""'fl,..;.:o+cr-"-,;i4,:(,.'-: ,--'.,.'-----l This instrument was acknowledged before me on Zweigbaum Family Trust. (Stamp) _LONY MARIE STEBER NOTARY PUBLIC MINNESOTA ission Expires Jan. 31, 2029 ' \ \ \ ·1 \ \'1 \·y; 2024, by Larry H, Zweigbaum as Trustee of the Nathan S. � _/� ) /signature-;( notarial officer} Title (and Rank): ____________ _ My commission expires: --�---..,.----­ /monthlday1yearJ State of Minnesota, County of ·j\c,11"� 1,(1 , "· ,,/ This instrument was acknowledged before me on ¼> \ )Q \}/ , 2024, by \)c,.,, l \ --1-Yc"u\l'-' as \Y\CX'f\ \xr-of 4040 DF LLC, a Minnesota limited liability company. (Stamp) � ) /( - 2 -=-=--,._/ �s,gnature of no/anal officer) Title (and Rank): ____________ _ MELONY MARIE STEBER NOTARY PUBLIC MINNf::SOTA My Commission Expires Jan. 31, 2029 My commission expires: __________ _ (month/day/year) City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 24 Page 8 of 9 CONTRACT FOR DEED \ \ ' .,r: ' This instrument was acknowledged before me on \ f\ l,,.Yi , Vt . 2024, by __ \Vi.:___\""0,x..,_· .,_· _TV_,___>f_e_.r ________ _as ·ro .> ,m\;.t,r of 4040 MF LLC, a Minnesota limited liability company. (Stamp) , MELONY MARIE STEBER • NOTARY PUBUC MINNESOTA y Comrnlulon Expires ,Jan. 31, 2029 This instrument was acknowledged before me on J v\ � 1,,,-1 Irrevocable Grantor Trust dated 10-29-12. (Stamp) e WENDY A BERKLICH Notary Public \ Minnesota My Ccmmissm £$ts.lllm.aJ 31,2025 (#,aliiii6riri5Tarial officer/ Title (and Rank): ____________ _ My commission expires: __________ _ (month/day/year) , 2024. by Afan Gilbert as trustee for the Michael Zweigbaum 2012 Title (and Rank): fJOh{ vy Pub l,, t, My commission expires: {---,3 /.--2-{) 2-"5 (monlh/daylyear) City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 25 Page 8 of 9 This instrument was acknowledged before me on --� i'rf'. Q J Irrevocable Grantor Trust dated 10-29-12. (Stamp) CONTRACT FOR DEED , 2024, David Gotlieb as trustee for the Michael Zweigbaum 2012 t ,./ ,i -1 ,oi:,� ; '{ , D ;1 ;_. 1 Title (and Rank): J\ 1-') ·r·,v··,-; I v, f) h 1 . My commission expires: � °2, I �. :V) -J-I (monlhldaylyear) This instrument was acknowledged before me on °612812024 , by Marlee Zweigbaum as trustee for the MichaelZweigbaum 2012 Irrevocable Grantor Trust dated 10-29-12. who dec lared that she is located in Deerfield Illinois (£looiroan Edouard REGISTRATION NUMBER 7896724 COMMISSION EXPIRES November 30, 2024 QvvC-c� (signature of notarial officer) Electronic Notary Public Title (and Rank): ____________ _ My commission expires: _1_1_/_3_0_/2_0_2_4 _____ _ (month/day/year) Notarized remotely online using communication technology via Proof. City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 26 Page 9 of 9 THIS INSTRUMENT WAS DRAFTED BY: Richard A. Glassman Glassman Law Firm 80 S Eighth Street, Suite 900 Minneapolis, MN 55402 612-337-9559 CONTRACT FOR DEED TAX STATEMENTS FOR THE REAL PROPERTY DESCRIBED IN THIS INSTRUMENT SHOULD BE SENT TO: �.'Pl .l �-, I _. � �-" \ ··J. "") ;-iW tf"'v--c±b :::,,,,. . .u a :r., I ., ) t-t-··1kU .> Note: Failure to record this contract for deed may give other parties priority over Purchaser's interest in the property. City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 27 EXHIBIT A That part of the Northeast quarter of the Southeast quarter of Section 6, Township 28, Range 24, described as beginning at an angle point on the Northeasterly line of the plat of Huntington Woods First Addition, distant 238.57 feet Northwesterly from the most Easterly corner of said Plat; thence Southwesterly, Westerly and Northwesterly along said Northeasterly line to a line drawn parallel with and 377.75 feet Northwesterly from the center line of Excelsior Boulevard, formerly Excelsior Avenue, as dedicated in said plat; thence Northeasterly parallel with said center line and its extension 180 feet; thence deflecting Southeasterly at right angles 120 feet; thence Southwesterly in a straight line to the point of beginning. Hennepin County, Minnesota Torrens Property - Certificate of Title No. 1336522 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 28 CONTRACT FOR DEED ADDENDUM Il;JJ,S CONTRACT FOR DEED ADDENDUM (this "Addendum") is attached to and made a part of that certain Contract for Deed dated June fil, 2024 between Larry H. Zweigbaum as Trustee of the Minnie L. Zweigbaum Revocable Trust dated February 9, 1998 as amended and Larry H. Zweigbaum as Trustee of the Nathan S. Zweigbaum Family Trust ("Seller"), ("Seller"), and 4040 OF LLC a Minnesota limited liability company, 4040 MF LLC a Minnesota limited liability company and Michael Zweigbaum 2012 Irrevocable Grantor Trust dated 10-29-12 ("Purchaser"). The terms and conditions contained in the Addendum shall supersede any conflicting provisions contained in this Contract. Unless defined in this Addendum, all capitalized terms have the same meaning as in the Contract. Only those provisions checked in the "Yes" column, below, shall be included and be part of this Addendum. Yes No [ZJ O A. Late Payment Fee. If any payment is not received by Seller within fifteen (15) days of the date when due, Purchaser shall additionally pay to Seller, to the extent allowed by law, a late charge of four percent (4%) of the amount of the delinquent payment. [ZJ O B. Transfer Restrictions. Purchaser may not sell, assign, or otherwise transfer Purchaser's interest in this Contract, or the Property, or any part thereof, or if Purchaser is an entity, the controlling interest in Purchaser may not be transferred without the written consent of Seller, which consent: [ZJ shall be granted or withheld in the sole discretion of Seller. (check only one box) O shall not be unreasonably withheld, or delayed by Seller. 0 0 C. Escrows. In Addition to the monthly payments of principal and interest, Purchaser shall deposit with Seller, with each payment, an amount representing one-twelfth (1/12) of the annual real estate taxes, installments of special assessments, and insurance premiums with respect to the Property (or such other amount as Seller is required to deposit under any underlying encumbrance on the Property). The amount of such taxes, special assessments, and insurance premiums, when unknown. shall be estimated by Seller. Such deposit shall be used by Seller to pay real estate taxes, installments of special assessments, and insurance premiums with respect to the Property when due. If Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent amounts and deduct the amounts so paid from payments next coming due under this Contract. If the balance deposited with Seller is insufficient to pay such real estate taxes, special assessments and insurance premiums when due, Purchaser shall pay the deficiency to Seller upon written demand. 0 0 D. Property Improvements. Except for work reasonably necessary to permit Purchaser to comply with Purchaser's obligations under this Contract, Purchaser shall not hire or perform any repairs or improvements to or replacements of the Property having an aggregate cost in excess of[ ... ] Dollars($[ ... ]) without securing the prior written consent of the Seller. Purchaser will not cause or permit any mechanics' liens to be recorded against the Property. Purchaser agrees to defend, indemnify, and hold Seller harmless from any loss, damage, or expense incurred by Seller with respect to any party asserting a mechanics' lien claim, it being understood and agreed that this undertaking shall survive cancellation of this Contract or the delivery of a deed pursuant to the terms hereof. [ZJ O E. Hazardous Substances. Purchaser shall not bring, store, generate, or treat hazardous wastes or substances or petroleum products upon the Property, except for small quantities which are stored and used in compliance with applicable law. Purchaser hereby agrees to indemnify, defend and hold Seller harmless from any and all claims, demands, actions, causes of action, liabilities or rights which may be asserted against Seller with respect to such substances, or products, it being understood and agreed that this obligation will survive the cancellation of this Contract or the delivery of a deed pursuant to the terms hereof. Note: This document must be attached to a contract for deed and cannot be independently recorded. ECB-3021 Page1of2 City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 29 Page 2 of 2 CONTRACT FOR DEED ADDENDUM D D F. Alternative Acceleration Remedy. If Purchaser fails to timely perform any term of this Contract, Seller may elect, on thirty (30) days written notice given to Purchaser, to declare the entire unpaid Purchase Price, together with accrued interest thereon, immediately due and payable in full and commence an action against Purchaser to collect all amounts due hereunder. Purchaser shall have the right to reinstate this Contract at any time before entry of final judgment against Purchaser for amounts due hereunder if Purchaser: (i) pays Seller all sums due hereunder as of the date of reinstatement; (ii) cures any other defaults existing under this Contract as of the date of reinstatement; and (iii) pays all expenses incurred by Seller in enforcing this Contract, including, but not limited to, reasonable attorneys' fees and costs. Seller shall deliver the deed for the Property in the manner required by paragraph 3 of this Contract when all amounts due hereunder have been paid. D D G. Nonrecourse Obligation. Notwithstanding any other provision contained in this Contract to the contrary, if Purchaser defaults in Purchaser's performance of this Contract, Seller's sole remedy shall be to cancel this Contract in accordance with Minn. Stat. 559.21, as the same may from time to time be amended. Seller specifically waives any right it may have to commence an action for the specific performance of this Contract or any right it may have to seek an award of damages against Purchaser. D D H. Additional Provisions. [ ... ) Note: This document must be attached to a contract for deed and cannot be Independently recorded. City council meeting of December 16, 2024 (Item No. 5b) Title: Resolution authorizing a special assessment for high efficiency window installation at 4040 West 36th Street - Ward 2 Page 30 Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5c Executive summary Title: Resolution establishing South Oak Pond Water Quality Improvement project (4024-4000) –Ward 2 Recommended action: Motion to adopt resolution accepting the project report, establishing the South Oak Pond Water Quality Improvement project (4024-4000), approving plans and specifications and authorizing advertisement for bids. Policy consideration: Does the city council wish to pursue the South Oak Pond Water Quality Improvement Project at the expanded scope made possible through external grant funding? Summary: South Oak Pond is a constructed stormwater pond located in the southwest corner of Highway 7 and Louisiana Avenue. Stormwater flows to the pond from a 460-acre subwatershed within the city, and a lift station controls the water levels and discharges the water to Minnehaha Creek. The city's 2019 Surface Water Management Plan identified the South Oak Pond area as a location for a future water quality improvement project. Improving stormwater quality before it discharges into the creek is consistent with the city's environmental priority. This project was added to the 2024 capital plan with anticipated construction during winter 2024-25. A feasibility study determined that an underground stormwater filter vault connected to the existing lift station would be a viable project to remove total phosphorus (TP) from stormwater. The study also suggested that this was an excellent location for an even larger filter system. The cost to build a larger filter system exceeded the CIP budget for this project which was approved in December 2023 at $438,000from the Stormwater utility fund. To take this opportunity to maximize the water quality treatment, the city applied for and was awarded additional funding through the State of Minnesota's Clean Water Land and Legacy Amendment grant program of $350,000 bringing the total to $788,000 in funding for this project. In addition to constructing the stormwater filter vault, the project also includes buckthorn removal and native vegetation planting along the southwest side of the pond, adjacent to the vault. Details about this project are included in the discussion section of this report. This project is scheduled for construction in winter 2024-25. Financial or budget considerations: This project is included in the 2024 CIP. Funding will be provided by the stormwater utility fund. Additional funding of $350,000 has been provided by a Clean Water Fund grant. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion, Resolution, Project location map Prepared by: Erick Francis, water resources manager Reviewed by: Debra Heiser, engineering director Approved by: Cindy Walsh, deputy city manager City council meeting of December 16, 2024 (Item No. 5c) Page 2 Title: Resolution establishing South Oak Pond Water Quality Improvement project (4024-4000) – Ward 2 Discussion Background: South Oak Pond is a constructed stormwater pond located in the southwest corner of Highway 7 and Louisiana Avenue. Stormwater flows to the pond from a 460-acre subwatershed within the city, and a lift station controls the water levels and discharge of water to Minnehaha Creek. The city's 2019 Surface Water Management Plan identified the South Oak Pond area as a location for a future water quality improvement project. This is because Minnehaha Creek is a high-value environmental and recreational water body, but it is subject to excessive algae blooms, which are caused by too much total phosphorus (TP). TP is a naturally occurring nutrient that is essential for aquatic plant growth but is also the most common pollutant found in urban stormwater runoff and is harmful to the ecological health of our surface waters. Removal of excessive amounts of TP in stormwater runoff from the city to the creek is essential for maintaining and improving the ecological health of our surface waters. Due to this excess TP, Minnehaha Creek has been placed on the Minnesota Pollution Control Agency's (MPCA's) Impaired Waters list. Impaired waters are subject to a Total Maximum Daily Load (TMDL) waste load allocation that establishes a TP load reduction from the city to the creek by 393 pounds annually. Reducing the amount of TP going to the creek will result in the attainment of Minnesota's water quality standards for Minnehaha Creek. The South Oak Pond Water Quality Improvement Project, as designed, will reduce phosphorus loading to Minnehaha Creek by 80 pounds annually and provide an overall TMDL reduction of 20% with one project. Project description: A feasibility study determined that an underground stormwater filter vault connected to the existing lift station would be a viable project to remove total phosphorus (TP) from stormwater. A vault would fit within the project constraints and would provide total phosphorus (TP) removal of approximately 30-40%, or about 40 pounds annually, achieving an over 10% reduction of TP entering Minnehaha Creek from the city. The study also suggested that increasing the filter system's size could also further increase TP removals. Consequently, the city applied for additional funding through the State of Minnesota's Clean Water Land and Legacy Amendment Grant program and was awarded $350,000 for the expansion of the project. The additional funding allows for a larger filter vault and an increased TP removal of 60-70%, or 80 pounds annually, achieving a 20% reduction of TP entering Minnehaha Creek from the city. In addition to the increased filter system sizing, the grant funding includes funding for buckthorn removal and native vegetation planting along the southwest side of the pond, adjacent to the vault. The project would include an additional pump that would be installed in the existing lift station to divert water from the pond into the underground stormwater filter vault. Water would then flow through the vault and the replaceable filter cartridges, which are designed to remove TP, and then connect back into the existing storm sewer and discharge to Minnehaha Creek. Additional work will be completed within the inlet structure to the lift station to repair a leak at the existing sluice gate, which will be repaired and resealed. Construction is anticipated to begin in February 2025. Work within the lift station will be completed in February when there's reduced flow within the existing system. The filter vault City council meeting of December 16, 2024 (Item No. 5c) Page 3 Title: Resolution establishing South Oak Pond Water Quality Improvement project (4024-4000) – Ward 2 will take several months to be built to the city's specifications and will be installed once delivered, later in the summer of 2025. All items are expected to be completed, including final restoration, by November 2025. Financial or budget considerations: The following table outlines the estimated project cost and anticipated funding sources for this project CIP Engineer's Estimate Construction cost $381,500 $621,205 Engineering and administration $57,225 $147,108 Subtotal $438,725 $768,313 Funding Sources Stormwater utility $438,725 $418,313 Clean water fund grant $350,000 $350,000 Total $788,725 $768,313 Next steps: The proposed schedule for the project to facilitate construction completion in 2025: Council approves plans and orders ad for bid Dec. 16, 2024 Open bids Jan. 17, 2025 City council awards construction bids Feb. 3, 2025 Construction February to November 2025 City council meeting of December 16, 2024 (Item No. 5c) Page 4 Title: Resolution establishing South Oak Pond Water Quality Improvement project (4024-4000) – Ward 2 Resolution No. 24-___ Accepting the project report, establishing South Oak Pond Water Quality Improvement project, approving plans and specifications and authorizing advertisement for bids for improvement Project No. 4024-4000 Whereas, the city council of the City of St. Louis Park has received a report from the Project Engineer related to the South Oak Pond Water Quality Improvement project on December 16, 2024, Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota, that: 1. The project report regarding project no. 4024-4000 is hereby accepted. 2. Such improvements as proposed are necessary, cost-effective, and feasible, as detailed in the project report. 3. The proposed project, designated as project no. 4024-4000, is hereby established and ordered. 4. The plans and specifications for the making of these improvements, as prepared under the direction of the engineering director, or designee, are approved. 5. The city clerk shall prepare and cause to be inserted at least two weeks in the official city newspaper and in relevant industry publications an advertisement for bids for the making of said improvements under said approved plans and specifications. The advertisement shall appear not less than 10 days prior to the date and time bids will be received electronically by the project manager and accompanied by a bid bond payable to the city for five (5) percent of the amount of the bid. The electronic bids will only be available to view after the bids are closed and the city receives the passcode from the bidding host site. 6. The project manager, or designee, shall report the receipt of bids to the city council shortly after the opening date. The report shall include a tabulation of the bid results and a recommendation to the city council. Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk LAKE S T W LAKE S T W NORT H S T NORT H S T TAFT AVE STAFT AVE SLOUISIANA AVE SLOUISIANA AVE SEDGE B R O O K D R EDGE B R O O K D R OXFO R D S T OXFO R D S T 0 250 500125 Feet ´ South Oak Pond Water Quality Improvement Project Proposed project location po South Oak PondSouth Oak Pond City council meeting of December 16, 2024 (Item No. 5c) Title: Resolution establishing South Oak Pond Water Quality Improvement project (4024-4000) - Ward 2 Page 5 Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5d Executive summary Title: Approve property acquisitions for Cedar Lake Road and Louisiana Avenue Improvements project - Phase 2 (4024-1100) - Ward 4 Recommended action: There are two motions for this item: • Motion to approve purchase/ lease agreement at 7120 Cedar Lake Road (Parcel #55) • Motion to approve temporary and permanent easement offer at 7200 Cedar Lake Road (Parcel #129) Policy consideration: Does the council approve the property acquisitions for the Cedar Lake Road and Louisiana Avenue Improvements project - Phase 2? Summary: On Feb. 6, 2023, the city council approved the preliminary layout for the Cedar Lake Road and Louisiana Avenue Improvements project. To construct this project as shown on the approved layout, the city needs to acquire right of way from 46 parcels adjacent to the project area. This right of way needs to be acquired prior to the city being authorized to solicit bids for the project. To date, we have settled with 34 property owners. Staff continues to negotiate with the remaining parcels to come to a settlement before commencing eminent domain in early February 2025. Acquiring easements through negotiated settlement means it will not be necessary to use a court action (eminent domain) to gain possession of the private land necessary to build the project. There are two parcels included in this council action ; since the settlement amounts are over $175,000, council approval is required. The two parcels and associated action: 1. Parcel #55 - 7120 Cedar Lake Road (West End Tobacco & Cigars): Approve purchase/ lease agreement. 2. Parcel #129 - 7200 Cedar Lake Road (Walgreens): Approve settlement offer . The property acquisition is needed to accommodate the construction of the roundabout at the Cedar Lake Road/ Louisiana Avenue intersection. Additional details on these parcels are included in the Discussion section of this report. Financial or budget considerations: The Feb. 20, 2024 city council report contains an estimate of $1,928,473 for property acquisition for both Phase 1 and Phase 2 of this project. The project will be paid for using municipal state aid (MSA), utility funds, federal aid, congressionally directed spending and state appropriation. Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: Discussion Prepared by: Debra Heiser, engineering director Reviewed by: Aaron Wiesen, engineering project manager; Soren Mattick, city attorney ; Amelia Cruver, finance director Approved by: Cindy Walsh, deputy city manager City council meeting of December 16, 2024 (Item No. 5d) Page 2 Title: Approve property acquisitions for Cedar Lake Road and Louisiana Avenue Improvements project - Phase 2 (4024-1100) - Ward 4 Discussion Background: On Feb. 6, 2023, the city council approved the preliminary layout for the Cedar Lake Road and Louisiana Avenue Improvements project. To construct this project as shown on the approved layout, the city needs to purchase Parcel #55 from a private property owner and purchase temporary and permanent easements from the property owner of Parcel #129. On Sept. 16, 2024, the city council approved a resolution to commence eminent domain for this project. The 90-day quick-take letters went out to the properties still in negotiations on Nov . 7, 2024. This notification is a mechanism by which the city can take control of the necessary private property for public use without waiting for a court decision on how much compensation should be paid out to the property owner. Acquiring easements through negotiated settlement means it will not be necessary to use a court action (eminent domain) to gain possession of the private land necessary to build the project. Parcel acquisition: There are two parcels included in this council action; a description of the requested council approval and background for each: 1. Parcel #55- 7120 Cedar Lake Road (West End Tobacco & Cigars): Construction of the roundabout at the intersection of Cedar Lake Road and Louisiana Avenue will require the purchase of the parcel located in the northeast corner of the intersection of Cedar Lake Road and Louisiana Avenue. The current retail business on this property is West End Tobacco & Cigars. Because the project will require demolition of the building, the city must acquire the entire parcel. An overview of the parcel is below: The purchase price for this parcel, $800,000, was approved by the city council on Oct. 7, 2024. Since that time, SRF Consulting Group, the city's right of way consultant, has been City council meeting of December 16, 2024 (Item No. 5d) Page 3 Title: Approve property acquisitions for Cedar Lake Road and Louisiana Avenue Improvements project - Phase 2 (4024-1100) - Ward 4 working through the details of the purchase agreement for this parcel. The property owners have let us know that they are purchasing a new property and need time to renovate it for occupancy. Due to this, they have asked to stay in the building for 90 days after closing. The city attorney has drafted a purchase and lease agreement to reflect the details associated with this transaction. These agreements require approval by the city council to move forward with closing. Details of the purchase agreement and lease agreement: • The city will close on this parcel on or before Jan. 17, 2025. • The business will operate in the location for up to 90 days after the closing date. This is to allow them time to renovate their new location. • They will be responsible for the following during the 90-day lease period: o Paying for monthly utility bills and any past-due bills o Routine operation and maintenance (e.g., snow removal, ice control, etc.) o Carrying insurance for the business listing the city as an additional insured. In addition to the cost of purchasing this parcel, the city is also required to pay relocation costs, which are estimated to be around $200,000. 2. Parcel #129- 7200 Cedar Lake Road (Walgreens): Construction of the roundabout at the intersection of Cedar Lake Road and Louisiana Avenue will require the purchase of temporary and permanent easement from parcel #129, located at 7200 Cedar Lake Road. This parcel is located in the northwest corner of th e intersection of Cedar Lake Road and Louisiana Avenue. An overview of the parcel and easements is below: City council meeting of December 16, 2024 (Item No. 5d) Page 4 Title: Approve property acquisitions for Cedar Lake Road and Louisiana Avenue Improvements project - Phase 2 (4024-1100) - Ward 4 In late summer, the city offered the property owner the appraised value for these easements, $188,000. Since that time, SRF Consulting Group, the city's right of way consultant, has been negotiating with the property owner to settle on a purchase price for these easements. No agreement has been reached. Staff recommends that we provide the property owner with a settlement offer of $240,000. Since this is over $175,000 and is a change from what was shared with the council on Sept. 16, 2024, it requires approval by city council. Financial or budget considerations: The cost for these property acquisitions is summarized below: Parcel Number Address Permanent easement (sq. ft.) Temporary easement (sq. ft.) Settlement amount 55 7120 Cedar Lake Road (West End Tobacco & Cigars) Property purchase NA $800,000 + relocation costs 129 7200 Cedar Lake Road (Walgreens) 3,066 sf 6,521 sf $240,000 On Feb. 20, 2024, the city council report contained an estimate of $1,928,473 for property acquisition for Phase 1 and Phase 2 of the Cedar Lake Road and Louisiana Avenue project. The actual cost to obtain all the easements necessary for this project will not be known until all property owners have finalized negotiations. Staff will be providing an updated overall project cost summary to the council in January 2025. Next steps: The schedule for this project is below Phase 2 – Cedar Lake Road/ Louisiana Avenue project 2025 and 2026 Construction Description Date 90 percent plans complete October 2024 Open House December 2024 Right of way acquisition complete February 2025 File condemnation petition for easements that are not settled Feb. 7, 2025 City council approve plans and specs, order ad for bid February 2025 Tree removal March 2025 Private utility relocations Spring 2025 Reconstruct Louisiana Avenue May - November 2025 Reconstruct Cedar Lake Road and the intersection of Cedar Lake Road and Louisiana Avenue May - November 2026 Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5e Executive summary Title: Resolution regarding cashless businesses Recommended action: Motion to adopt resolution encouraging local retail establishments to accept both cash and digital payments. Policy consideration: Does the city council wish to adopt the proposed resolution encouraging local retail establishments to accept both cash and digital payments? Summary: At the Oct. 21, 2024 special study session a cashless businesses discussion was held with the council. During this discussion, staff presented an overview of unbanked and underbanked individuals as well as the concerns and issues related to businesses that do not accept cash. Staff discussed ways in which to address and mitigate these impacts, ways to empower affected individuals and methods to inform and educate the business community. Council engaged in a robust conversation on the topic with the majority of council members expressing support of the staff-recommended actions. One recommended action was to adopt a resolution encouraging local retail establishments to accept both cash and digital payments. Doing so would bring attention to the matter and serve as an opportunity to make local businesses aware of the unintended consequences of not accepting cash as well as the benefits of accepting cash. Accordingly, staff worked with the city attorney to draft the proposed resolution encouraging local businesses to accept both cash and digital payments as a payment method. Staff recommend adoption of the proposed resolution as presented. Staff has prepared an educational flyer on the matter to be disseminated to local retailers. Staff will also continue to monitor the number of businesses who do not accept cash. Financial or budget considerations: None at this time. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Resolution Prepared by: Greg Hunt, economic development manager Jocelyn Hernandez Guitron, racial equity and inclusion specialist Reviewed by: Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager City council meeting of December 16, 2024 (Item No. 5e) Page 2 Title: Resolution regarding cashless businesses Resolution No. 24-_______ Encouraging local retail establishments to accept both cash and digital payments Whereas, the city council has found that Black, Indigenous, and People of Color (BIPOC) and marginalized individuals are disproportionately excluded from the local marketplace when businesses choose not to accept cash payments; and Whereas, the city council has found that while there are benefits to businesses and individuals such as fraud protection, convenience, shared risk, the ability to build assets, and disease prevention through the use of contactless or digital payment methods, accepting cash as a payment method increases access to goods and services for BIPOC and marginalized populations who may not be able to access a bank account, desire to secure their finances privately without a bank’s involvement, or seek to minimize added fees that frequently accompany contactless or digital payment methods; and Whereas, the city council has found that alternatives to cash payment for individuals who do not have bank accounts are unsuitable to mitigate these issues as they come with barriers for the use of funds and lack the security and asset building benefits of having a bank account; and Whereas, the city council has found since the majority of retail establishments in the city accept cash as a payment method, the city council desires to encourage all retail establishments in the city to implement a hybrid model of accepting both cash and digital payments so that businesses can take advantage of the benefits of contactless or digital payment methods without systemically burdening BIPOC and marginalized individuals for whom cash payments are a necessity. Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota, that all retail establishments conducting business in the City of St. Louis Park are encouraged to accept cash payments in addition to digital payments in transactions with individual consumers whenever possible. Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: _____________________________________ Melissa Kennedy, city clerk Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5f Executive summary Title: Temporary on-sale intoxicating liquor license - Beth El Synagogue Recommended action: Motion to approve a temporary on-sale intoxicating liquor license for Beth El Synagogue at 5225 Barry Street West on Jan. 25, 2025. Policy consideration: Does the applicant meet the requirements for issuance of a temporary on-sale intoxicating liquor license? Summary: Beth El Synagogue applied for a temporary on-sale intoxicating liquor license for a fundraising event taking place on Jan. 25, 2025. The fundraiser will be held at 5225 Barry Street West and liquor will be served from 12:00 p.m. – 11:59 p.m. Bartending staff and service of alcoholic beverages will be provided by With A Twist bartending services. The police department completed a background investigation on the principals and found no reason to deny the temporary license. The applicant meets all requirements for the issuance of the license, and staff recommends approval. Financial or budget considerations: The fee for a temporary liquor license is $100 per day of the event. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: None. Prepared by: Amanda Scott-Lerdal, deputy city clerk Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5g Executive summary Title: Resolution amending American Rescue Plan Act Appropriation Recommended action: Motion to approve resolution amending American Rescue Plan Act Appropriation. Policy consideration: Does the city council approve the appropriation as amended? Summary: The finance department has finalized the expenditure of all remaining funds allocated by the American Rescue Plan Act in 2024 ahead of the Dec. 31, 2024 requirement to obligate the funds for spending. This resolution updates the appropriations for ARPA dollars to match the final distribution. Financial or budget considerations: Review and approval of the appropriation ensures transparency and provides another layer of oversight to further ensure fiscal stewardship. Strategic priority consideration: Not applicable. Supporting documents: Resolution Resolution No. 23-075 Prepared by: Gavin Shubert, senior accountant Reviewed by: Amelia Cruver, finance director Approved by: Cindy Walsh, deputy city manager City council meeting of December 16, 2024 (Item No. 5g) Page 2 Title: Resolution amending American Rescue Plan Act Appropriation Resolution No. 24-____ Amending American Rescue Plan Act Appropriation Whereas, the City of St. Louis Park received a total of $5,317,881 from the American Rescue Plan Act (ARPA); and Whereas, the city must appropriate these funds for specific purposes by December 31, 2024; and Whereas, the city has reported to the U.S. Treasury that it will utilize these funds as replacement for lost revenue to provide general government services but has not appropriated all of the funds yet to date; and Whereas, the current resolution amends Resolution No. 23-075 and any previous American Rescue Plan Act fund budget, Now therefore be it resolved by the city council of the City of St. Louis Park that the American Rescue Plan Act fund budget are adopted as presented: Expended funding grouping Allocation Capital expenditures (including watermain repair) 1,048,704.00 Contractual and professional services 760,407.00 Public employee salaries 3,508,770.00 Total $5,317,881.00 Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 16, 2024 Consent agenda item: 5h Executive summary Title: Resolution approving Hennepin County All-Hazard Mitigation Plan Recommended action: Motion to adopt resolution approving Hennepin County All-Hazard Mitigation Plan. Policy consideration: Does the city council wish to adopt the proposed resolution approving the Hennepin County All-Hazard Mitigation Plan? Summary: Hennepin County’s All-Hazard Mitigation Plan was initially developed and approved in 2011, updated in 2018, and most recently updated in 2024. The plan has been approved by the Federal Emergency Management Agency (FEMA) pending approval by local jurisdictions within Hennepin County. The city’s Interim Fire Chief/Emergency Management Coordinator has reviewed the plan and found it acceptable. The Hennepin County All-Hazards Mitigation Plan was reviewed by FEMA based on the local criteria authorized by the Disaster Mitigation Act of 2000, 44 code of Federal Regulations part 201, and has met all the criteria for a multi-jurisdictional hazard mitigation plan. Meeting these criteria has given St. Louis Park an “approved pending adoption” status. In order for Hennepin County to receive formal approval of the plan, it must be adopted by both Hennepin County and the participating jurisdictions. Hennepin County Emergency Management has received approval from the County Board. The Hennepin County All-Hazard Mitigation Plan will make the county and participating jurisdictions (St. Louis Park) are eligible to receive FEMA hazard mitigation assistance grants. The Hennepin County All-Hazard Mitigation Plan can be requested from the Hennepin County Emergency Management office. Financial or budget considerations: None Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: Resolution Prepared by: Mike Scott, fire chief Approved by: Kim Keller, city manager City council meeting of December 16, 2024 (Item No. 5h) Page 2 Title: Resolution approving Hennepin County All-Hazard Mitigation Plan Resolution No. 24-___ Approving the Hennepin County All-Hazard Mitigation Plan Whereas, the City of St. Louis Park has participated in the hazard mitigation planning process as established under the Disaster Mitigation Act of 2000, and Whereas, the Act establishes a framework for the development of a multi-jurisdictional County Hazard Mitigation Plan; and Whereas, the Act as part of the planning process requires public involvement and local coordination among neighboring local units of government and businesses; and Whereas, the Hennepin County Plan includes a risk assessment including past hazards, hazards that threaten the County, an estimate of structures at risk, a general description of land uses and development trends; and Whereas, the Hennepin County Plan includes a mitigation strategy including goals and objectives and an action plan identifying specific mitigation projects and costs; and Whereas, the Hennepin County Plan includes a maintenance or implementation process including plan updates, integration of the plan into other planning documents and how Hennepin County will maintain public participation and coordination; and Whereas, this multi-jurisdictional Plan was updated by the cities and Hennepin County in 2024, and in 2018, since the initial adoption in January, 2011; and Whereas, the Plan has been shared with the Minnesota Division of Homeland Security and Emergency Management and the Federal Emergency Management Agency for review and comment; and Whereas, the Hennepin County All-Hazard Mitigation Plan will make the county and participating jurisdictions eligible to receive FEMA hazard mitigation assistance grants; and Whereas, this is a multi-jurisdictional plan and cities that participated in the planning process may choose to also adopt the County Plan, Now therefore be it resolved that the City of St. Louis Park supports the hazard mitigation planning effort and wishes to approve the Hennepin County All-Hazard Mitigation Plan. Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: December 16, 2024 Action agenda item: 7a Executive summary Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Recommended action: Motion to adopt the following resolutions: • Rescind existing Resolutions No. 2615, 5315, 85-214, 88-174, 20-011 and 20-041 pertaining to existing stop sign controls in the Browndale neighborhood • Authorizing stop sign installation in the Browndale neighborhood Policy consideration: Does the city council support the installation of alternating stop control as a systems approach to intersection traffic control in the Browndale neighborhood? Summary: During the public engagement and preliminary design process for the 2024 pavement management project in the Browndale and Minikahda Vista neighborhoods, staff received requests to evaluate additional stop signs at various locations in the neighborhood. That information was used to present a systems approach to council for evaluating intersection control in a neighborhood with the goal to provide a more consistent application of intersection control throughout a neighborhood. That approach resulted in recommending changes to many intersections in the Browndale neighborhood to create alternating stop controls, often referred to as a basket weave pattern. Staff shared the recommended intersection control modifications with the neighborhood via a newsletter and map illustrating the proposed changes. Staff has received feedback from community members about the proposed changes, has made minor changes and attached is the final recommendation for council consideration. If the staff recommendation is approved, weather permitting, staff will work with a contractor to install the new stop signs yet this year. Financial or budget considerations: The cost of these traffic control changes is quoted to be $11,000 and is expected to come from the engineering budget. Similar traffic signs last roughly ten years in the field. Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: Discussion Resolutions Resolutions No. 2615, 5315, 85-214, 88-174, 20-011, 20-041 to be rescinded Newsletter - Traffic control changes in Browndale Browndale Neighborhood intersection control map – Nov. 8, 2024 Prepared by: Jack Sullivan, engineering project manager Reviewed by: Debra Heiser, engineering director Approved by: Kim Keller, city manager City council meeting of December 16, 2024 (Item No. 7a) Page 2 Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Discussion Background: During the public engagement and preliminary design process for the 2024 pavement management project in the Browndale and Minikahda Vista neighborhoods, staff received requests to evaluate additional stop signs at various locations in both neighborhoods via the online interactive issues mapping tool, at open house events and via direct letter communications. Proposed changes to the Browndale neighborhood are covered in this report and action item for council. Traffic control changes for the Minikahda Vista neighborhood will be shared with the neighborhood in the first quarter of 2025, with the intent to implement changes in spring 2025. The locations with the most requests in the neighborhoods were: Browndale neighborhood: • Along Utica Avenue between 42nd Street and Morningside Road • Along Morningside Road between Utica and Salem Avenue Minikahda Vista neighborhood: • The intersection of 39th Street and Lynn Avenue Past practice: Past practice for stop sign requests was to review each one as a stand-alone submission. If the intersection did not meet certain requirements, the traffic committee did not recommend the installation of stop signs. When a stop sign was not recommended, the requestor could submit a petition to the city council to reconsider this recommendation. The policy resulted in a reactive approach to traffic safety within the community, considering traffic control as an individual choice instead of as a system. In 2023, the city council supported staff’s recommendation to remove the petition process and explore a systematic approach to traffic control. Council members were supportive of a data- driven approach and moving away from one that centers on local interest. To accomplish this, council directed staff to develop a proactive systems approach to the evaluation of intersection control instead of just focusing on individual intersections. Systems approach: Staff provided a written report to council during the connected infrastructure discussion on April 15, 2024, that recommended a systems approach for addressing the stop sign requests in these neighborhoods. The report reviewed past practices, stop sign compliance and findings from previous studies. The result of the report showed that stop signs are not meeting the expectations of any roadway users. As a result, staff recommended the implementation of a basket weave pattern in both neighborhoods to provide a more consistent application of intersection control. A basket weave pattern has alternating stop sign controls at every other intersection. This staff report will use the term alternating stop controls throughout the remainder of the report. Present considerations: Although there were stop sign requests in both neighborhoods in the 2024 pavement management project, staff is implementing the Browndale neighborhood first due to the larger number of uncontrolled intersections. Staff will bring intersection control changes to the Minikahda Vista neighborhood in 2025 after the Browndale neighborhood is implemented. City council meeting of December 16, 2024 (Item No. 7a) Page 3 Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 With the pavement management project completed in the Browndale neighborhood, now is the time to install the new intersection control. Staff is recommending the traffic control changes shown in the attached Browndale neighborhood intersection control changes map. There are 18 intersections in the neighborhood that were reviewed. Of these intersections: • Eight (8) uncontrolled intersections will change to two-way stop controls • Two (2) all-way stop-controlled intersections will change to two-way stop-controlled intersections • Two (2) two-way stop-controlled intersections will have the stop signs flipped to stop the other direction of travel • Six (6) intersections will not have any changes No changes are recommended for streets that intersect with Wooddale Avenue or 44th Street. Neighborhood notification: During the April 15, 2025 study session for alternating stop controls, staff recommended an “inform process” for engagement with the neighborhood due to these changes being a data-driven, proactive approach with the goal of creating a safer, more predictable system. The attached newsletter titled Traffic control changes in Browndale was mailed to 635 properties within the Browndale neighborhood on Oct. 2, 2024, informing them of the changes to intersection traffic control, why this is being done, as well as letting residents know that they can reach out to engineering with questions. This information was also posted on the 2024 pavement management project website and sent out to 2,075 recipients via the email listserv for the project. Neighborhood feedback: Staff received direct correspondence from 34 residents in the Browndale neighborhood and one in the Minikahda Vista neighborhood. A breakdown of their feedback: • Three (3) individuals did not want any changes in the Browndale neighborhood • Two (2) individuals did not agree with the changes at 42nd Street and Toledo Avenue • Seven (7) individuals (6 property addresses) did not agree with the changes at 42nd Street and Browndale Avenue • 13 individuals did not agree with the changes to 43 1/2 Street and Browndale Avenue • Two (2) individuals agreed with the changes to the neighborhood intersection controls • Five (5) individuals had suggestions for other changes, such as crosswalk markings or additional signage • Two (2) individuals wanted more information about alternating stop controls • One (1) individual wanted a similar approach for the Minikahda Vista neighborhood Modification to recommendation: Although these changes were communicated as an “inform” process, staff acknowledged the community correspondence and completed a second review of the neighborhood. The additional review resulted in adjusting the final recommendation at: • 43 1/2 Street and Browndale Avenue: The original staff recommendation was to stop at the east and west approaches on 43 1/2 Street, as it is the lower vehicle volume roadway. Community feedback indicated City council meeting of December 16, 2024 (Item No. 7a) Page 4 Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 that 43 1/2 Street is a primary access to Browndale Park for pedestrians and bicyclists. Changing the stop signs to have vehicles stop at north and south approaches on Browndale Avenue reinforces the right of way of pedestrians and bicyclists crossing to the park. Input from our Park and Recreation Department staff affirmed this. The other two intersections that had feedback were: • 42nd Street and Browndale Avenue: The staff recommendation is to stop traffic traveling east on 42nd Street. Vehicles will now stop before the new sidewalk along the west side of Browndale Avenue. The staff recommendation did not change at this intersection due to the geometry of the “tee” intersection, the new sidewalk and the volume of vehicles that use the intersection. • 42nd Street and Toledo Avenue: The staff recommendation is to change the all-way stop to a two-way stop for vehicles traveling east/west on 42nd Street. This all-way stop was installed via petition in 2020. The staff recommendation did not change at this intersection in order to maintain the alternating stop control pattern in the neighborhood. The final recommendations can be found in the attached Browndale Neighborhood intersection control map – Nov. 8, 2024 and the table below. The updated recommendation was posted to the 2024 pavement management project website, sent out to 2,075 recipients via the email listserv and communicated directly to the 35 individuals who contacted staff. Intersection Action Stop signs located on: Utica Avenue and Vernon Avenue New South approach Utica Avenue and 41st Street Rotate signs East and west approaches Utica Avenue and 42nd Street New North and south approaches Utica Avenue and Morningside Road New North approach (south approach is Mackey Avenue) Toledo Avenue and 41st Street Unchanged North and south approaches Toledo Avenue and 42nd Street Partial removal East and west approaches Toledo Avenue and Morningside Road New North approach (south approach is Brook Avenue) Salem Avenue and 41st Street Unchanged North approach Salem Avenue and 42nd Street Unchanged North and south approaches Salem Avenue and Morningside Road New North approach (south approach is Coolidge Avenue) Browndale Avenue and 42nd Street Rotate sign West approach Browndale Avenue and Morningside Road Unchanged North and south approaches Browndale Avenue and 43 1/2 Street Partial removal North and south approaches Mackey Avenue and Morningside Road New South approach Mackey Avenue and 43 1/2 Street New East and west approaches Brook Avenue and Morningside Road New South approach Brook Avenue and 43 1/2 Street New East and west approaches City council meeting of December 16, 2024 (Item No. 7a) Page 5 Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Coolidge Avenue and Morningside Road New South approach Coolidge Avenue and 43 1/2 Street New East and west approaches Devaney Street and Browndale Avenue Unchanged Remains uncontrolled Devaney Street and Morningside Road Unchanged Remains uncontrolled There are two resolutions for council to act on. The first resolution will rescind all stop sign controls in the Browndale neighborhood, and the second resolution will authorize the installation of stop sign controls consistent with the systems approach and information provided in this report. Next steps: If the report recommendation is approved, staff will work with a contractor to install the new stop signs yet this year. The timing of the installation will be communicated to the neighborhood via the email listserv. After the implementation of the Browndale neighborhood, staff will engage the Minikahda Vista neighborhood to begin a similar process to change the intersection controls in that neighborhood in 2025. City council meeting of December 16, 2024 (Item No. 7a) Page 6 Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Rescind Resolutions No. 2615, 5315, 85-214, 88-174, 20-011, and 20-041 regarding existing stop signs in the Browndale neighborhood Whereas, the city received requests to install stop signs within the Browndale neighborhood bordered by Vernon Avenue to the north, 44th Street to the south, Wooddale Avenue to the east, and Highway 100 to the west; and Whereas, the City of St. Louis Park had established stop signs in the Browndale neighborhood in Resolutions No. 2615, 5315, 85-214, 88-174, 20-011 and 20-041; and Whereas, staff used a systems approach to evaluate intersection controls within the Browndale neighborhood; and Whereas, staff has reviewed the requests and recommended the installation of alternating stop signs within the Browndale neighborhood; and Whereas, the alternating stop sign pattern will require rescinding six existing resolutions, which authorized the installation of stop signs at eight intersections within the Browndale neighborhood; and Whereas, the City of St. Louis Park, will establish new resolutions to authorize stop signs in an alternating stop sign pattern in the Browndale neighborhood; and, Whereas, staff recommends rescinding Resolutions No. 2615, 5315, 85-214, 88-174, 20- 011 and 20-041, Now therefore be it resolved by the St. Louis Park City Council that the following resolutions are hereby rescinded: 1.Resolution 2615, Utica Avenue, Toledo Avenue, Salem Avenue and 41st Street 2.Resolution 5313, Browndale Avenue and 42nd Street 3.Resolution 85-214, Salem Avenue and 42nd Street 4.Resolution 88-174, Browndale Avenue and 43 1/2 Street 5.Resolution 20-011, Toledo Avenue and 42nd Street 6.Resolution 20-041, Morningside Road and Browndale Avenue Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Resolution No. 24-161 City council meeting of December 16, 2024 (Item No. 7a) Page 7 Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Authorize alternating stop controls in the Browndale neighborhood Whereas, the city received requests to install stop signs within the Browndale neighborhood bordered by Vernon Avenue to the north, 44th Street to the south, Wooddale Avenue to the east, and Highway 100 to the west; and Whereas, the City of St. Louis Park had established stop signs in the Browndale neighborhood in Resolutions No. 2615, 5315, 85-214, 88-174, 20-011 and 20-041; and Whereas, staff used a systems approach to evaluate intersection controls; and Whereas, staff has reviewed the requests and recommends the installation of alternating stop signs within the Browndale neighborhood; and Whereas, Resolutions No. 2615, 5315, 85-214, 88-174, 20-011 and 20-041 were rescinded by the St. Louis Park City Council as approved in Resolution No. 24-161; and Whereas, the alternating stop control pattern will require resolutions for the installation of new stop signs in the Browndale neighborhood, Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota that the engineering director is authorized to install stop signs at the following intersections and directions of travel: Intersection Stop signs located on: Utica Avenue and Vernon Avenue South approach Utica Avenue and 41st Street East and west approaches Utica Avenue and 42nd Street North and south approaches Utica Avenue and Morningside Road North approach (south approach is Mackey Avenue) Toledo Avenue and 41st Street North and south approaches Toledo Avenue and 42nd Street East and west approaches Toledo Avenue and Morningside Road North approach (south approach is Brook Avenue) Salem Avenue and 41st Street North approach Salem Avenue and 42nd Street North and south approaches Salem Avenue and Morningside Road North approach (south approach is Coolidge Avenue) Browndale Avenue and 42nd Street West approach Browndale Avenue and Morningside Road North and south approaches Browndale Avenue and 43 1/2 Street North and south approaches Mackey Avenue and Morningside Road South approach Mackey Avenue and 43 1/2 Street East and west approaches Brook Avenue and Morningside Road South approach Brook Avenue and 43 1/2 Street East and west approaches Coolidge Avenue and Morningside Road South approach Coolidge Avenue and 43 1/2 Street East and west approaches Resolution No. 24-162 City council meeting of December 16, 2024 (Item No. 7a) Page 8 Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk • RESOLUTION NO. 2fi 15 ORIGINAL JUNE 29, 1964 7A RESOLUTION AUTHORIZING PLACEMENT OF STOP SIGNS FOR TRAFFIC CONTROL AT INTERSECTION OF UTICA AVENUE, TOLEDO AVENUE AND SALEM AVENUE BEFORE ENTERING 41ST STREET WHEREAS, the City 0£ St. Louis Park has caused a tra!!ic analysis to be malde 0£ volume of tra!fic and accident rate at the intersection of Utica Avenue, Toledo Avenue and Salem Avenue before ontc:ring 41st Street, and WHEREAS, said analysis indicates that the following control on traffic at said intersection is warranted upon the basis of its physical characteristics and upon driver behavior and traffic conditions, and WHEREAS, Ordinance No, 702, adopted June 8, 1959, by the City Council provides for installation 0£ tra!fic control signs, signals and devices when and as required by resolution of the City Council, therefore BE_ IT RESOLVED by the City Council of the City of St. Louis Park that the City Engineer is hereby authorized and directed to install stop signs at the following intersections: Attest:, City Clerk On Utica Avenue for north and south bound traffic at its intersection with 41st Street On Toledo Avenue for north and south bound tra!!ic at its intersection with 41st Street On Salem Avenue for south bound tra!fic at its inter­ sectio n with 41st Street Adopted by the City Council June 29, 1964. . •/ / '----,,--1��-_ .. • _, i ; er',,,.,..{., ,, Approved as to form and lcg:ility: .,-'f ;ffa;f� Cif)'Am,rn<?'J City council meeting of December 16, 2024 (Item No. 7a) Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Page 9 RESll.UTIOO NO. 85-214 RESOLUTION AUTHORIZING THE INSTALLATION OF TRAFFIC CONTROL SIGNS ON SALEM AVENUE AT 42ND STREET BE IT RESOLVED by the City Council of the City of St. Louis Park that a traffic analysis having indicated that the placement of traffic control signs are warranted, the Director of Public Works is hereby authorized to install the following controls: 1.Stop signs at the intersectio n of Salem Avenue and 42nd Street at the northand south approaches of Salem Avenue. Adopted by the City Council December 2, 1985 Re viewed for administration: Approved as to form and legality: City Attorney City council meeting of December 16, 2024 (Item No. 7a) Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Page 10 If you have quesƟons, contact: October 2024 Jack Sullivan, PE Engineering project manager  Office: 952.924.2691  jsullivan@stlouisparkmn.gov  Engineering department  5005 Minnetonka Blvd.  St. Louis Park, MN 55416  With the compleƟon of the street reconstrucƟon in the Browndale  neighborhood, the city will implement a new traffic control model at most intersecƟons in the neighborhood: basket weave stop sign paƩern. Please  see the centerfold map for details.  When? These changes are expected to take place later this fall. Earlier this year, city council provided guidance to staff that these changes were  appropriate for the neighborhood and supported staff’s recommendaƟon to  inform the neighborhood of  the new traffic control paƩern. City council is  expected to formally approve the changes in November, with sign  modificaƟons occurring aŌer that.   Why? During the engagement process for the 2024 pavement management project, staff received requests for addiƟonal stop sign  controls in the neighborhood and concerns about stop sign compliance. To  respond to this feedback, staff conducted a review of the intersecƟon  controls in and near the Browndale neighborhood.  The review idenƟfied inconsistent applicaƟon of intersecƟon control. The  mix of controlled and uncontrolled intersecƟons results in inconsistency and  no discernable paƩern, which leads to confusion for all roadway users  (pedestrians, cyclists and motor vehicles), including:  AssumpƟons by users as to who has the right of way. QuesƟons from the community about why streets with similar characterisƟcs have different levels of traffic control. The belief that stop signs help to control speed and reduce cut‐through traffic. Low stop sign compliance when unwarranted stop signs are installed. On average, only 22% of drivers comply with stop signs. Requests from residents for more enforcement since drivers are not stopping at the signs. The review and public feedback indicate that stop signs are not meeƟng the  expectaƟons of any roadway users.   How? To accomplish the installaƟon of the new basket weave paƩern, many intersecƟons within the neighborhood will have traffic control  modificaƟons. Some intersecƟons will have stop signs installed; some  intersecƟons will have all‐way stop signs changed to two‐way stop signs,  and some intersecƟons will remain as is.   Tra ffic control changes in Browndale  City council meeting of December 16, 2024 (Item No. 7a) Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Page 11 2 3 Ul,D ---- , OU .. .. C 0 • • .. .. C 0 :I 0 Browndale Neighborhood intersection control changes --.......... -----------�----,--------""TT--r;-------rr---, Existing intersection control () ,, r I r _--=-z\ ., Legend Intersection control changes Inters ons v Ith tra IC control changes I New s opp ng d on Existing intersection control • I Ing -S;ct val,-"'Ctyl'" - .J 0 2SO oppng d on rttt ay stop I stop A I s -.. .. 0 -New intersection control I I () ,, 0 I \ ., Ill St. Louis Park Ill ltlNNIUU �1,WS,.,1i,.1� REFER TO MAP DATED NOV. 8, 2024City council meeting of December 16, 2024 (Item No. 7a) Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2Page 12 Benefits of basket weave stop sign paƩern for the community The new basket weave stop sign paƩern will provide a more consistent applicaƟon of intersecƟon control,  including:   Make intersecƟon control more predictable for all users of the road. Increase compliance at stop sign locaƟons. Reduce unnecessary vehicle stopping, noise and carbon emissions. Create similar expectaƟons for road users as they move between St. Louis Park and the adjacent neighborhoods in Minneapolis and Edina. St. Louis Park is commiƩed to providing a variety of opƟons for people to make their way around the city comfortably, safely and reliably. City council meeting of December 16, 2024 (Item No. 7a) Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Page 13 MORNINGSIDE RD NATCHEZ AVE SQUENTIN AVE S W O O DDALE AVE 41ST S T W UTICA AVE S42 1/2 ST W 43 1/2 ST W 42ND ST W BROWNDALE AVE SOTTAWA AVE SDEVANEY ST PRI NCETONAVE SCOOLIDGE AVE S40TH S T W BROOK AVE SMACKEY AVE SDART AVE SVERNONAVES TOLEDO AVE SSALEM AVE S40TH L N W SUNNY SIDE RD EDINA BLVDDREXEL AVE44 ST W & & & & & & & & Browndale Park Browndale Neighborhood intersection control changes M I N N E A P O L I S E D I N A S T. L O U I S PA R K New intersection control MORNINGSIDE RD NATCHEZ AVE SQUENTIN AVE S W O O DDALE AVE 41ST S T W UTICA AVE S42 1/2 ST W 43 1/2 ST W 42ND ST W BROWNDALE AVE SOTTAWA AVE SDEVANEY ST PRI NCETONAVE SCOOLIDGE AVE S40TH S T W BROOK AVE SMACKEY AVE SDART AVE SMONTEREY AVE SVERNONAVES TOLEDO AVE SSALEM AVE S40TH L N W SUNNY SIDE RD EDINA BLVDDREXEL AVEBRUCE AVEBRANSON S T 44 ST W & & & & & & Browndale Park Existing intersection control M I N N E A P O L I S E D I N A S T. L O U I S PA R K Legend Intersection control changes Intersections with traffic control changes New stopping direction Existing intersection control Uncontrolled intersection &Controlled intersection - all way stop Controlled intersection - partial stop Existing stopping direction Sidewalks City limits ±0 500 1,000250 Feet Date: 11/8/2024 City council meeting of December 16, 2024 (Item No. 7a) Title: Resolutions authorizing traffic control changes in Browndale neighborhood - Ward 2 Page 14 Meeting: City council Meeting date: December 16, 2024 Action agenda item: 7b Executive summary Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Recommended action: • Motion to adopt resolution approving the 2025 budgets and authorizing the 2025 final property tax levy. • Motion to adopt resolution authorizing the 2025 final HRA levy. • Motion to adopt resolution authorizing the 2025 final EDA levy. • Motion to adopt resolution approving the 2025-2034 capital improvement plan. Policy consideration: Does council support the proposed 2025 budget? The balanced budget consists of an "all- inclusive” preliminary levy increase of 7.52% for a total of $49,979,665 and includes the following components: • General levies (general fund (GF), park improvement, capital replacement and employee benefits, and debt service) equal to $48,598,532 • Housing Redevelopment Authority (HRA) levy equal to $1,194,133 • Economic Development Authority (EDA) levy equal to $187,000 Summary: Recommendations in the 2025 proposed budget are based on maintaining high-quality services and advancing city priorities while also making best use of public dollars. Staff presented council a recommended budget and corresponding all-inclusive levy increase of 9% over the summer. Staff received feedback that was generally supportive of the new spending items, but uncomfortable with the all-inclusive levy increase. After adjustments were made to the capital budget, staff was able to lower the levy increase to 7.52%, which council approved on Sept. 16, 2024. The 2025 budget provides a strategic opportunity to make decisions that impact the city’s long range financial plan, prepare for known and unknown fiscal issues in the medium-term and ensure long-term compliance with city financial policies. Financial or budget considerations: The proposed tax levies support city services, capital improvements, and debt service obligations for fiscal year 2025. Strategic priority consideration: Not applicable. Supporting documents: Resolutions 2025 Capital Improvement Plan 2025-2034 Capital Improvement Plan Funding Summary Prepared by: Amelia Cruver, Financial Director Reviewed by: Cheyenne Brodeen, Administrative Services Director Approved by: Kim Keller, City Manager City council meeting of December 16, 2024 (Item No. 7b) Page 2 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Discussion Background: 2025 Budget Development Timeline Date Agenda Item Topics July 8, 2024 Council report and discussion: Base budget and fee update • Learnings from 2023 • Base Budget spending and revenues and levy impact • 2025 economic conditions July 15, 2024 Council report and discussion: Operating budget Public Hearing: Fee update • Proposed new operating budget spending items in the 2025 budget and levy impact Aug. 12, 2024 Council report and discussion: Capital budget and levy recommendation • Proposed capital projects for 2025 and levy impact • Proposed five-year Capital Improvement Plan (CIP) • Preliminary 2025 levy Sept. 16, 2024 Council report, discussion and vote: Approve maximum levy • Revisions, if any, to the proposed capital and operating budgets and associated levies • Adoption of maximum 2025 levy October 2024 Council report and discussion: TIF Management Report and discussion • TIF district performance • TIF district recommended transfers and decertification, if any Mid- November 2024 Truth in taxation property tax notices sent out by the county Residents receive an estimate of their 2025 tax bill and information on the public hearing in December Nov. 18, 2024 Council report and discussion: Revised budget • Revisions to the budget and adjustments to the levy, as needed. In November, the levy can only decrease from the maximum set in September Dec. 2, 2024 Council report and public hearing: Truth in Taxation • Residents share feedback on the proposed 2025 budget Dec. 16, 2024 Council report, discussion and vote: Budget adoption • Council adoption of the 2025 budget and CIP This summer, staff presented the 2025 base budget and important context for the upcoming budget process. Staff also presented adjusted fees, projected revenues and firm personnel cost projections. We also discussed proposed operating budget increases to support proposals that would have an impact on city priorities. Key additions already presented to and supported by council are: • Boards and commissions program support. This year, council directed staff to provide stipends to board members. This request is directly related to that council direction. Staff is proposing a total of $35,000 to cover the costs of board member stipends and an additional $10,000 to cover the cost of boards and commission program coordination which could include expenses such as printing and creating of program materials for City council meeting of December 16, 2024 (Item No. 7b) Page 3 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption orientation as well as for outreach materials, potential room rentals and other related costs. • New Forestry Technician position. Council recently directed staff to implement a “Tree Preservation Permit” for commercial and new residential subdivisions. As a part of that presentation and report, staff shared with council the need to increase staff to implement the program. This position would assist the natural resources manager to increase management capacity to meet community-demanded service levels. Primary duties include facilitating grant programs, conducting commercial tree preservation inspections, conducting private property inspections and focusing on coordinating canopy enhancement programs in environmental justice areas. • Social Services Program. Staff is proposing increasing funding towards non-profit social service providers serving the St. Louis Park community and ensuring that awards are made through a competitive request for proposals process. The program will focus on agencies that deliver services and activities to help St. Louis Park’s most vulnerable residents, including low-income, seniors and children. Housing security and stability, economic stability, healthy food access and senior services are the primary program priorities. This program is recommended to be funded with up to $200,000 in Affordable Housing Trust Fund revenue for housing-focused services and $50,000 general fund revenue for economic stability, food access and senior services. • Community Development Specialist. This position will support the city’s small business community to help these businesses get started, grow, and remain economically viable. This function has existed in years past at the city, but a full-time employee dedicated to this work has not been funded in the last two years as restructuring of the position was undertaken. • Website redesign. Staff recommend updating the current city website in 2025. This request includes funding for contractual services as well as additional temporary staffing support for interns to help launch the project. In August, staff presented the recommended capital improvement plan (CIP). Projects in the CIP are funded through the property tax levy, revenues from franchise fees and a few other miscellaneous revenue streams, federal and state taxes and bond proceeds. Highlights for the 2025 CIP are: • Playground and Park renovations in Ainsworth, Bronx and Webster Park • Streetlight repair and replacement • MCWD: Minnehaha Greenway – Cedar Lake regional trail connection • Pavement management projects in the Wolfe Park, Westwood Hill and Cedar Manor neighborhoods and the Minnetonka Boulevard reconstruction project in the Fern Hill and Triangle neighborhoods • Cedar Lake Road and Louisiana Avenue Improvement Project (2024-2026) • Utility system repair and replacement projects connected to Cedar Lake Road and Louisiana avenue, Minnetonka Blvd and Area 3 local street rehab work. In early 2025 the city will review all unfinished 2024 CIP projects and bring a list of re- authorizations needed to council to ensure previously approved projects can be completed. City council meeting of December 16, 2024 (Item No. 7b) Page 4 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Present considerations: Proposed 2025 Budget and Levy These discussions included some edits and adjustments to the CIP to lower the levy increase in 2025. After an additional study session to incorporate council feedback and staff recommendations in September 2024, the city certified a levy increase of 7.52% to the county comprising the following components: Recommended 2025 Levy Fund 2024 Adopted Change 2025 Proposed Percentage Change General Fund $34,147,654 $4,661,161 $38,808,815 14% Capital Replacement Fund $2,177,793 $45,703 $2,223,496 2% Park Improvement Fund $860,000 -$350,000 $510,000 -41% Employee Benefits Fund $200,000 $200,000 0% Subtotal General Levies $37,385,447 $4,356,865 $41,742,311 12% Debt Service Levy $6,362,813 $493,408 $6,856,221 8% General and Debt Service Levies $43,748,260 $4,850,273 $48,598,532 11% Housing Redevelopment Authority Levy $1,744,133 -$550,000 $1,194,133 -32% Economic Development Authority Levy $877,000 -$690,000 $187,000 -79% Total Property Tax Levy $46,483,749 $3,495,916 $49,979,665 7.52% Updated Five-Year Financial Direction: In October 2024, council received the annual Tax Increment Finance management report that describes the status and health of our cities various TIF districts. In that report, council was informed of upcoming de-certifications that will increase the tax base in the city. When a large increase to the tax base occurs, the tax levy can be increased without increasing the tax rate on property taxpayers. These years are advantageous for the city to fund large infrastructure projects that would otherwise create a large variance in resident tax bills. Council could also elect to not increase the levy and as a result lower the tax rate on residents. Either way, council will make an informed decision about how to best utilize the benefits of decertifying tax districts. To plan better for these de-certifications, a line has been added to the five-year financial direction to show the opportunity to increase the levy and spending to address city priorities without impacting the tax rate paid by residents. Council may choose in future years to fund unfunded and emerging projects or reduce the tax rate buy holding the tax levy steady with the current projections. One note on the table below, the dollars are currently placeholders in the general levies section of the table, but they could very well be in the debt service levy if the city were to use this increase to finance additional bonding. City council meeting of December 16, 2024 (Item No. 7b) Page 5 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Below is the five-year financial forecast including placeholders in the long-range plan to account for changes in the taxable market value because of TIF districts successfully completing and coming back online. The following assumptions are built into the forecast: • Steady inflationary growth in general fund to maintain current service levels. • Additional levy in 2027 to cover the cost of three new firefighters once the federal Staffing for Adequate Fire and Emergency Response (SAFER) grant concludes. • A levy increase of $200,000 in 2026 to “step down” after using one-time sources, rather than a one-year jump in levy revenue. • Capital replacement levy increasing each year, as use of fund balance decreases each year to meet currently identified CIP needs and reach a structurally balanced budget at the end of the five-year outlook. • Debt service to fund major street infrastructure projects currently laid out in the CIP. • Flat HRA Levy to fund housing programs and projects. This levy can be adjusted each year based on planned activities and the availability of external revenue sources. • EDA levy that increases to $375k in 2026 to cover ongoing costs attributed to that fund. Five-Year Financial Direction (includes above assumptions) Five-Year Financial Outlook Fund 2024 Adopted 2025 Proposed 2026 Forecast 2027 Forecast 2028 Forecast 2029 Forecast General Fund $34,147,654 $38,808,815 $40,749,256 $43,176,719 $45,335,555 $47,602,333 Capital Replacement Fund $2,177,793 $2,223,496 $2,557,020 $3,068,424 $3,835,531 $4,410,860 TIF district planning $868,600 $2,200,135 $2,200,135 Park Improvement Fund $860,000 $510,000 $700,000 $860,000 $860,000 $860,000 Employee Benefits Fund $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Subtotal General Levies $37,385,447 $41,742,311 $44,206,277 $48,173,743 $52,431,221 $55,273,328 Debt Service Levy $6,362,813 $6,856,221 $7,523,750 $7,566,453 $8,139,875 $8,690,269 General and Debt Service Levies $43,748,260 $48,598,532 $51,730,027 $55,740,196 $60,571,096 $63,963,597 HRA Levy $1,744,133 $1,194,133 $1,194,133 $1,194,133 $1,194,133 $1,194,133 EDA Levy $877,000 $187,000 $374,000 $374,000 $374,000 $374,000 Total Property Tax Levy $46,483,749 $49,979,665 $53,298,159 $57,308,329 $62,139,228 $65,531,730 Total Levy Growth 7.52% 6.64% 7.52% 8.43% 5.46% Property Tax Impact and Context All cities within Hennepin County submit proposed property tax levies by Sept. 30 each year. At the end of October, cities receive updated data on the proposed property tax impact on property owners in 2025 across all taxing jurisdictions in Hennepin County. Below is a chart showing the distribution of property taxpayers according to their decrease or increase in property taxes from 2024 into 2025. The largest group of St. Louis Park residential property taxpayers (34%) will see an increase in their tax bill between 0 and 5%. Most St. Louis Park City council meeting of December 16, 2024 (Item No. 7b) Page 6 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption residential property taxpayers (56%) will see a property tax bill that is between a five percent (5%) decrease and a five percent (5%) increase. The countywide data shows most households in the county (66%) will see an increase in property taxes between 0.1 and 9.9 %. County-wide, there are fewer households seeing a decrease in taxes compared to St. Louis Park. There are also more households at the county level seeing an increase in property taxes above 10% compared to St. Louis Park, 14% versus 7% respectively. City council meeting of December 16, 2024 (Item No. 7b) Page 7 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption The table below shows the estimated impact to the median property by type of a 7.52% levy increase in St. Louis Park. On top of the changes in value year to year, state policy changes reduced the tax rate for homestead properties and reduced the tax rate on Class C, 4D properties. This led to another shift, on top of the variable changes in value across the property types. Truth in Taxation Hearing Response Several residents attended and spoke at the Truth in Taxation hearing on Dec. 2, 2024. Council heard from a few who expressed dissatisfaction with levy increases that were in the double digits for percentage increases. Assessing and Finance staff were on hand to answer any individual questions about the budget or about property valuation and estimated taxes. Several community members voiced their support for more spending on affordable housing initiatives. The city’s Community Development team has prepared the summary below of the 2025 budget for housing initiatives: Single-family housing rehab programs 2025 budget Program household income limits Discount rehab loans $20,000 115% AMI* Emergency repair grant (maximum grant $5,000) $40,000 50% AMI Low income deferred home loan $300,000 80% AMI Rehab advisor** $10,000 None 7.52% Levy Impact 2024 2025 Percent Change 24 to 25 Annual Increase Monthly Increase Median Est. Market Value Property Tax Payable Median Est. Market Value Property Tax Payable Single-Family Homestead $373,300 $1,646 $377,200 $1,755 6.60% $108.71 $9.06 Non-Hmstd $373,300 $1,663 $377,200 $1,816 9.21% $153.15 $12.76 Condominium Homestead $208,800 $848 $203,900 $846 -0.24% -$2.00 -$0.17 Non-Hmstd $208,800 $930 $203,900 $981 5.55% $51.58 $4.30 Townhome Homestead $260,700 $1,100 $252,200 $1,099 -0.05% -$0.53 -$0.04 Non-Hmstd $260,700 $1,161 $252,200 $1,214 4.56% $52.93 $4.41 Apartments Class A $280,500 $1,562 $280,000 $1,685 7.89% $123.21 $10.27 Class B $192,200 $1,070 $185,000 $1,113 4.03% $43.16 $3.60 Class C $124,000 $690 $123,900 $745 8.00% $55.19 $4.60 Class A (4D-1) $280,500 $937 $280,000 $337 -64.0% -$599.97 -$50.00 Class C (4D-1) $124,000 $414 $123,900 $149 -64.00% -$265.08 -$22.09 City council meeting of December 16, 2024 (Item No. 7b) Page 8 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Architectural design services** $10,000 None Program marketing** $5,000 NA Transformation (Move up) loan (max. loan $35k) $210,000 120% AMI Sub total $595,000 Multi-family housing rehab Multi-family rental rehab loan $100,000 Restricted rents 60% AMI 4d incentive program $20,000 Restricted rents 60% AMI Sub total $120,000 Affordable homeownership Land trust homeownership program $300,000 80% AMI Foreclosure/tax forfeit/ special circumstance LT $10,000 80 % AMI Down payment assistance loan $350,000 115% AMI First generation homeownership program $350,000 80% AMI Sub total $1,010,000 Rental assistance Kids in the Park rental assistance $250,000 50% AMI Sub total $250,000 Social services Contracts Social services funding program $200,000 n/a Sub total $200,000 Affordable housing development investments New construction projects $1,750,000 varies Sub total $1,750,000 Grand Total $3,925,000 *AMI stands for Area Median Income **These projects are not funded out of the Affordable Housing Trust Fund Resources for Property Taxpayers Programs and tax credits exist at the state level for taxpayers who face significant increases in their taxes or have a level of property tax that is disproportionate to their income. Below is a list with website links and all information can be found on the MN Department of Revenue website. (Website links are relevant to the date of this report’s publication.) Disabled Veterans Exclusion: https://www.revenue.state.mn.us/market-value-exclusion-veterans-disability City council meeting of December 16, 2024 (Item No. 7b) Page 9 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Senior Citizen Property Tax Deferral Program: https://www.revenue.state.mn.us/property-tax-deferral-senior-citizens Special Homestead Classification – blind or disabled: https://www.revenue.state.mn.us/special-homestead-classification Hennepin County Property Information: https://www.hennepin.us/residents/property/property-information-search Property Tax Refund Information: https://www.revenue.state.mn.us/property-tax-refund Renter’s Property Tax Refund Information: https://www.revenue.state.mn.us/renters-property-tax-refund Next steps: After adoption, the final levy will be certified to the county and the budget will be in effect January 1, 2025. City council meeting of December 16, 2024 (Item No. 7b) Page 10 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Resolution No. 24 - ___ Authorizing the 2025 Final Tax Levy for Economic Development Authority Purposes pursuant to Minnesota Statutes, Section 469.107 Whereas, pursuant to Minnesota Statutes, Sections 469.090 through 469.1082, as amended (the “Act”), the city established the St. Louis Park Economic Development Authority (the EDA”); and Whereas, Section 469.107, subdivision 1 of the Act authorizes the city, at the request of the EDA, to levy and collect a tax of up to 0.01813% of the estimated market value of taxable property within the city, levied upon all taxable real property within the city, for economic development purposes; and Whereas, the EDA has requested that the city approve such a levy in the amount of 187,000 and the city finds that such a levy is in the best interest of the city and EDA because it will facilitate economic development, Now therefore be it resolved that the city council hereby approves the levy of a tax for economic development purposes pursuant to Section 469.107, subdivision 1 of the Act in the amount equal to $187,000 with respect to taxes payable in calendar year 2025. Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk City council meeting of December 16, 2024 (Item No. 7b) Page 11 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Resolution No. 24 - ___ Authorizing the final HRA levy for 2025 Whereas, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the city council of the City of St. Louis Park created the St. Louis Park Economic Development Authority ( the "Authority"); and Whereas, pursuant to the EDA Act, the city council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Minnesota Statutes, sections 469.001 to 469.047 (the "HRA Act"); and Whereas, Section 469.033, subdivision 6 of the Act authorizes the Authority to levy a tax upon all taxable property within the city to be expended for the purposes authorized by the HRA Act; and Whereas, such levy may be in an amount not to exceed 0.0185 percent of estimated market value of the city; and Whereas, the Authority has filed its budget for the special benefit levy in accordance with the budget procedures of the city in the amount of $1,194,133; and Whereas, based upon such budgets the Authority will levy all or such portion of the authorized levy as it deems necessary and proper, Now therefore be it resolved by the St. Louis Park City Council: 1. That approval is hereby given for the Authority to levy, for taxes payable in 2025, such tax upon the taxable property of the city as the Authority may determine, subject to the limitations contained in the HRA Act. Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk City council meeting of December 16, 2024 (Item No. 7b) Page 12 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Resolution No. 24 - ___ Adopting the 2025 general fund budget, other 2025 budgets, authorizing the 2025 final property tax levy, and adopting the 2025- 2034 Capital Improvement Plan (CIP) Whereas, the City of St. Louis Park is required by Charter and State law to approve a resolution setting forth an annual tax levy to the Hennepin County Auditor; and Whereas, Minnesota Statutes currently in force require approval of a property tax levy and a budget in December of each year; and Whereas, the city council has received the budget information; and Whereas, the city council of the City of St. Louis Park, Minnesota, has received a report from the chief financial officer related to proposed capital spending for 2025 - 2034; and Whereas, it is necessary for the city to maintain and replace its capital assets in order to enhance the city’ s attractiveness to residents and businesses; and Whereas, good planning is a necessary part of the stewardship that the city council and staff exercise over the capital assets of the city, Now therefore be it resolved, by the city council of the City of St. Louis Park, that the 2025 General Fund Budget and 2025 Budgets are adopted as presented; and Summary of Budgeted Revenues 2024 Adopted 2025 Final Proposed Difference % General Fund Revenues General Property Taxes 34,147,654 38,808,815 14% Licenses and Permits 4,986,322 4,406,620 -12% Intergovernmental 2,443,282 3,887,106 59% Charges for Services 2,602,153 2,674,025 3% Miscellaneous Revenue 2,582,930 2,101,105 -19% Investment Earnings 470,000 500,000 6% Transfers In 5,720,439 2,555,573 -55% Use of Fund Balance 0 559,000 Total General Fund Revenues $ 52,952,780 55,492,244 5% City council meeting of December 16, 2024 (Item No. 7b) Page 13 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Summary of Budgeted Expenditures 2024 Adopted 2025 Final Proposed Difference % Admin, RE&I, Finance/Assessing, HR, Comm Dev, Facilities, Sustainability, IT, Communications 14,505,291 14,798,355 2% Police, Fire, Building 23,236,356 24,626,788 6% Eng, Public Works, Org Rec, Rec Center, Park Maint, WWHC, Natural Resources 15,211,133 15,546,158 2% Transfers Out 1,050,037 $ 52,952,779 56,021,338 6% Summary of Interfund Transfers 2025 Budget *Other Transfers may occur in 2025 including TIF related transfers (i.e. to AHTF may occur in 2025) and ISF related transfers, all transfers will be approved by council prior to the passing of the 2025 Annual Comprehensive Financial Report* Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the receipts to a debt service fund in accordance with bond documents, (3) move funds in accordance with the city’s adopted capital improvement plan to support project costs, and (4) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with city policy. City council meeting of December 16, 2024 (Item No. 7b) Page 14 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Special Revenue, Select Capital Project Funds, Summary of Budgeted Revenues and Expenditures, Enterprise and Internal Service Funds 2024 Adopted 2025 Final Proposed Special Revenue Housing Rehabilitation Fund Total Housing Rehab Revenues 1,643,564 747,050 Total Housing Rehab Expenditures 1,843,360 810,419 CDBG Fund Total CDBG Revenues 165,000 165,000 Total CDBG Expenditures 165,000 165,000 Cable TV Fund Total Cable TV Revenues 698,600 616,397 Total Cable TV Expenditures 544,253 635,367 Climate Investment Fund Total Climate Investment Fund Revenues 0 0 Total Climate Investment Fund Expenditures 181,000 183,000 Affordable Housing Trust Fund Total Affordable Housing Trust Fund Revenues 1,759,133 1,228,250 Total Affordable Housing Trust Fund Expenditures 2,368,564 2,697,050 Capital Project Development Fund Total Development Fund Revenues 5,456,899 4,646,969 Total Development Fund Expenditures 5,075,285 4,817,871 Pavement Management Fund Total Pavement Management Revenues 4,786,801 5,304,840 Total Pavement Management Expenditures 4,235,490 5,178,590 Park Improvement Fund Total Park Improvement Revenues 1,348,750 1,430,000 Total Park Improvement Expenditures 1,706,000 1,630,000 Enterprise Water Utility Fund Total Water Revenues 9,819,145 10,153,437 Total Water Expenses 12,835,887 11,292,154 Sewer Utility Fund Total Sewer Revenues 9,886,017 10,250,790 Total Sewer Expenses 9,421,070 9,518,407 Solid Waste Utility Fund Total Solid Waste Revenues 6,293,227 7,330,565 Total Solid Waste Expenses 6,852,015 6,884,779 Storm Water Utility Fund Total Storm Water Revenues 3,915,637 4,543,582 Total Storm Water Expenses 3,976,221 4,998,336 Internal Service Employee Benefits Fund Total Employee Benefits Revenues 588,000 647,175 Total Employee Benefits Expenses 962,000 425,000 Uninsured Loss Fund Total Uninsured Loss Revenues 70,000 100,000 Total Uninsured Loss Expenses 256,975 255,841 City council meeting of December 16, 2024 (Item No. 7b) Page 15 Title: Resolutions approving 2025 budget – levy and capital improvement plan adoption Building Capital Replacement Fund Total Building Capital Replacement Revenues 1,405,288 2,352,318 Total Building Capital Replacement Expenditures 1,324,490 685,031 Vehicle & Equip Capital Replacement Fund Total Vehicle & Equip Capital Replacement Revenues 1,552,477 1,164,358 Total Vehicle & Equip Capital Replacement Expenditures 1,552,477 1,869,000 IT Capital Replacement Fund Total IT Capital Replacement Revenues 2,289,504 1,538,465 Total IT Capital Replacement Expenditures 2,682,008 1,738,578 Total Revenues $ 51,678,042 $ 52,219,196 Total Expenditures $ 55,982,095 $ 53,784,423 In coordination with the Long Range Financial Plan, funds that have excess expenditures over revenues represent a purposeful use of Fund Balance. Be it further resolved by the city council of the City of St. Louis Park, that the following sums of money be levied in 2024, collectible in 2025, upon the taxable property in said City of St. Louis Park for the following purposes: Tax Capacity Based Levy 2025 Final Tax Levy General Levy $38,808,815 Debt Service 6,856,221 Capital Replacement Fund: Municipal Buildings and Infrastructure 685,031 Capital Replacement Fund: IT 1,538,465 Park Improvement Fund 510,000 Employee Benefits Fund 200,000 Total Tax Levies $48,598,532 Be it further resolved by the city council of the City of St. Louis Park, that: 1. The 2025 - 2034 Capital Improvement Plan as presented is hereby adopted. 2. The city manager is authorized to purchase or undertake the items included in the fiscal year 2025 funded portion of the plan as allowed by the city charter and state statutes. 3. All purchases required to be competitively bid must come before the city council for final approval. Reviewed for administration: Adopted by the city council December 16, 2024: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk 2025 through 2025 Capital Improvement Plan St. Louis Park, MN Source Project #2025 Total (1103) - General Fund Public Safety Aid fund balance Body Armor 65990010 12,000 12,000 EMS - MED Kits 65990020 21,500 21,500 FS 1 Training Room AV Upgrades 34250001 10,000 10,000 Hose/Nozzle 65990017 12,000 12,000 Hydraulic Rescue Tool 65990004 80,000 80,000 Ice/Water Rescue Cache 65990014 10,000 10,000 Outside Warning Sirens 65990002 5,000 5,000 Police: Body and Squad Dash Cameras/Video Storage 13995067 245,000 245,000 Police: Squad Computers / Printers / Cell Service 13995006 28,000 28,000 Thermal Imagers 65990001 50,000 50,000 (1103) - General Fund Public Safety Aid fund balance Total 473,500 473,500 (4066) Park Improvement Fund Buckthorn Management 22999903 25,000 25,000 Court Resurface - Fern Hill Park Tennis 21252101 5,000 5,000 Landscaping - City Entrance Signs & MSC Bldg 21999901 10,000 10,000 OR: Birchwood Park camera replacement 13995060 30,000 30,000 OR: Rec Center / ROC / Lot Camera Replacements 13995025 30,000 30,000 OR: Wolfe Park Pavilion S2 / Amphitheatre Cameras 13995061 15,000 15,000 Park Shelter Replacement - various parks 21259905 150,000 150,000 Playground Eqpt Repl - Ainsworth Park + concrete 21990101 80,000 80,000 Playground Eqpt Repl - Bronx Park 21990902 70,000 70,000 Playground Eqpt Repl - Webster Park 21996112 65,000 65,000 Playground Woodchips 21999902 30,000 30,000 Pollinator Conversion / Maintenance 22239901 30,000 30,000 Rec Center Aquatic Park Concession Eqpt. Rplcmt 25990215 10,000 10,000 Rec Center Aquatic Park Deck Furniture 25990212 15,000 15,000 Rec Center Aquatic Park Pool Gutters 25250201 275,000 275,000 Rec Center Arena Dasher Board Repair 24995008 75,000 75,000 Rec Center Arena (East) Light Replacement 24255004 50,000 50,000 Rec Center Arena Refrigeration Maintenance 24995006 15,000 15,000 Rec Center Arena (West) Roof Design 24255010 100,000 100,000 Rec Center Banquet Room Carpet Replacement 24255003 25,000 25,000 Rec Center Landscaping (woodchips)24995017 20,000 20,000 ROC Stucco Repair 27256601 25,000 25,000 Trail Lighting 21259906 100,000 100,000 Trail Reconstruction 21259903 100,000 100,000 Produced Using Plan-It CIP Software Page 1 / 5 City council meeting of December 16, 2024 (Item No. 7b) Title: Resolutions approving 2025 budget - levy and capital improvement plan adoption Page 16 Tree Replacement (80% blvd + 20% parks)22999901 100,000 100,000 Westwood Hills NC Boardwalk Deck Repl, Ph 1,Wside 23256203 30,000 30,000 Westwood Hills NC Waterfall liner repair 23256204 50,000 50,000 Wolfe Park Amphitheater Pavers 21256403 100,000 100,000 (4066) Park Improvement Fund Total 1,630,000 1,630,000 (5001) - Water Utility Admin Serv / Utilities: Infinity BI Service 13155014 666 666 County - Mtka Blvd (Hwy 100 to France)40237000 1,718,750 1,718,750 GAC Replacement (WTP1)53255003 100,000 100,000 OR: Asset Mgmt Software (CarteGraph)13995011 11,000 11,000 Street - Commercial street rehab 40251050 688,000 688,000 Street - Local street rehab (Area 3)40251000 518,000 518,000 Street - MSA rehab (Louisiana & Cedar Lake Rd)4024-1100 1,073,415 1,073,415 Water Treatment Plant Rehab, WTP8 53255004 400,000 400,000 Water Well Rehab (SLP12)53255001 105,000 105,000 Water Well Rehab (SLP8)53245003 8,000 8,000 (5001) - Water Utility Total 4,622,831 4,622,831 (5101) - Sanitary Sewer Utility Admin Serv / Utilities: Infinity BI Service 13155014 667 667 County - Mtka Blvd (Hwy 100 to France)40237000 205,582 205,582 OR: Asset Mgmt Software (CarteGraph)13995011 11,000 11,000 Sanitary sewer- Lining 40253000 600,000 600,000 Sanitary sewer - Webster LS #10 40253100 773,500 773,500 Street - Commercial street rehab 40251050 269,000 269,000 Street - Local street rehab (Area 3)40251000 230,000 230,000 (5101) - Sanitary Sewer Utility Total 2,089,749 2,089,749 (5201) Solid Waste Utility OR: Asset Mgmt Software (CarteGraph)13995011 11,000 11,000 (5201) Solid Waste Utility Total 11,000 11,000 (5301) - Stormwater Utility Admin Serv / Utilities: Infinity BI Service 13155014 667 667 Alley construction 40251500 208,250 208,250 OR: Asset Mgmt Software (CarteGraph)13995011 11,000 11,000 Storm water- BMP maintenance 40254300 61,000 61,000 Storm water - Carpenter Park maintenance 40254200 690 690 Storm water- Lamplighter Pond rehab 40224001 223,800 223,800 Storm water- Rainwater rewards 40254500 54,800 54,800 Storm water- Twin Lake outfall replacement 40254000 225,400 225,400 Street - Commercial street rehab 40251050 373,000 373,000 Street - Local street rehab (Area 3)40251000 516,000 516,000 Street - MSA rehab (Louisiana & Cedar Lake Rd)4024-1100 700,000 700,000 (5301) - Stormwater Utility Total 2,374,607 2,374,607 Source Project #2025 Total Produced Using Plan-It CIP Software Page 2 / 5 City council meeting of December 16, 2024 (Item No. 7b) Title: Resolutions approving 2025 budget - levy and capital improvement plan adoption Page 17 Cable TV Franchise Fees Van Cameras 11201001 160,000 160,000 Cable TV Franchise Fees Total 160,000 160,000 Capital Levy - IT Capital Fund 06400 Admin Serv - Hubble Budgeting Annual Maintenance 13995017 27,318 27,318 Admin Serv:Laserfiche ECM System Maintenance 13155006 43,709 43,709 Admin Serv: NeoGov E-Documents Verification 13215002 8,742 8,742 Admin Serv: Tungsten Elec Accounts Payable 13995068 15,298 15,298 B&E / Fire / CD: Project Dox 13165009 46,840 46,840 Body / Dash Cams and Security Support 13995104 143,232 143,232 Fire: Zuercher Field Ops Mobile Solution 13185002 12,020 12,020 IR: Adobe Software Products Licensing 13995058 20,700 20,700 IR: Central City Hall Plotter (Lease)13995029 7,431 7,431 IR: Hosted / Managed Services / DR / BC 13135001 103,809 103,809 IR: Lidar (one-time) / ESRI GIS Hub 13195073 6,578 6,578 IR: LOGIS Software Applications 13995073 496,345 496,345 IR: MyStLouisPark CRM 13155007 24,040 24,040 IR: On-going Hardware Adds & Replacement 13995003 150,000 150,000 IR: On-going Network Adds & Replacement 13995002 136,591 136,591 IR: On-going Software Licenses, Mtce, Development 13995001 385,000 385,000 IR: Remote Building Large Scanner / Plotter 13995036 6,229 6,229 IR: Surveillance Camera and S2 Locks Maintenance 13995026 18,576 18,576 IR: Telephone Handset / Handless Upgrades 13995035 60,000 60,000 IR: Wireless Hotspot Additions / Replacements 13995041 11,000 11,000 OR: Asset Mgmt Software (CarteGraph)13995011 11,000 11,000 Capital Levy - IT Capital Fund 06400 Total 1,734,458 1,734,458 Capital Levy - Municipal Buildings and Infrastructure 06000 CH 2nd Floor Windows and Blinds Replace 31250002 210,000 210,000 CH Facility Assessment 31250001 50,000 50,000 CH HVAC Controls Update 31250004 20,000 20,000 Eng: GPS Base Station 13175001 25,000 25,000 FS Cameras Replacement 13185003 15,000 15,000 IR: Fiber Asset Management 13995066 58,000 58,000 IR: Fiber Network Modifications / Repairs 13995071 27,318 27,318 MSC AC Server Room Replacement 33250006 22,000 22,000 MSC Car Wash/Hotsy Replacement 33250008 30,000 30,000 MSC Fuel Island Rebuild 33250009 200,000 200,000 Source Project #2025 Total Produced Using Plan-It CIP Software Page 3 / 5 City council meeting of December 16, 2024 (Item No. 7b) Title: Resolutions approving 2025 budget - levy and capital improvement plan adoption Page 18 MSC Hoist Replacement 33250004 320,000 320,000 MSC HVAC Controls, Replacement 33250003 15,000 15,000 MSC Paint Booth Maintenance 33250001 25,000 25,000 MSC, PD Garage Door Opener Transmitter Upgrade 33225001 15,000 15,000 Operations Capital Improvement Fund 50254102 350,000 350,000 P-Admin Serv: Agenda Management System 13175007 15,000 15,000 PD Ceiling Tile Replacement 32250002 20,000 20,000 PD Parking Gate Replacement 32260004 65,000 65,000 WHNC Parking Lot Entry Gate Replacement 36250001 50,000 50,000 Capital Levy - Municipal Buildings and Infrastructure 06000 Total 1,532,318 1,532,318 E-911 Funds Dispatch Consollettes 20210001 54,000 54,000 Police: Zuercher CAD Module Annual Fees 13995042 38,423 38,423 E-911 Funds Total 92,423 92,423 Franchise Fees - Pavement Management Fund Alley construction 40251500 386,750 386,750 Street - Commercial street rehab 40251050 1,563,000 1,563,000 Street - Local street rehab (Area 3)40251000 2,765,000 2,765,000 Street - Maintenance project (Area 1)40251200 463,840 463,840 Franchise Fees - Pavement Management Fund Total 5,178,590 5,178,590 G.O. Bonds County - Mtka Blvd (Hwy 100 to France)40237000 2,328,126 2,328,126 CTP Bikeway - Sidewalk - Trail 40252000 300,000 300,000 Street - Commercial street rehab 40251050 363,000 363,000 Street - Local street rehab (Area 3)40251000 1,705,000 1,705,000 G.O. Bonds Total 4,696,126 4,696,126 G.O. Revenue Bonds Street - MSA rehab (Louisiana & Cedar Lake Rd)4024-1100 1,250,000 1,250,000 G.O. Revenue Bonds Total 1,250,000 1,250,000 Internal Service revenue - Vehicle and Equipment fund Annual Equipment Replacement Program E - XX01 1,869,000 1,869,000 Flock License Plate Readers 20250002 25,000 25,000 Hand Gun Optics 20250003 67,446 67,446 M.F.F. Equipment Replacement 20250010 20,000 20,000 Police K9 Purchase 20250001 34,000 34,000 Internal Service revenue - Vehicle and Equipment fund Total 2,015,446 2,015,446 Source Project #2025 Total Produced Using Plan-It CIP Software Page 4 / 5 City council meeting of December 16, 2024 (Item No. 7b) Title: Resolutions approving 2025 budget - levy and capital improvement plan adoption Page 19 Met Council Grant SWLRT- Park and Ride Ramp at Beltline Station 40199006 2,500,000 2,500,000 Met Council Grant Total 2,500,000 2,500,000 Municipal State Aid MnDOT- Traffic signals 40258000 300,000 300,000 Street - MSA rehab (Louisiana & Cedar Lake Rd)4024-1100 1,588,911 1,588,911 Municipal State Aid Total 1,888,911 1,888,911 Police & Fire Pension Police: 800 MHz Mobile Police Radios 13995004 0 0 Police: Field Ops Subscription 13995056 9,288 9,288 Police: Roll Call / EOC AV Equipment Replacement 13995043 120,000 120,000 Police: Zuercher Crime View Dashboard 13155020 10,927 10,927 Police & Fire Pension Total 140,215 140,215 State of Minnesota Street - MSA rehab (Louisiana & Cedar Lake Rd)4024-1100 3,000,000 3,000,000 State of Minnesota Total 3,000,000 3,000,000 U.S. Government Street - MSA rehab (Louisiana & Cedar Lake Rd)4024-1100 3,470,667 3,470,667 U.S. Government Total 3,470,667 3,470,667 GRAND TOTAL 38,860,841 38,860,841 Source Project #2025 Total Produced Using Plan-It CIP Software Page 5 / 5 City council meeting of December 16, 2024 (Item No. 7b) Title: Resolutions approving 2025 budget - levy and capital improvement plan adoption Page 20 2025 through 2034 Capital Improvement Plan St. Louis Park, MN Source 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Total (1103) - General Fund Public Safety Aid fund balance 473,500 245,000 10,000 728,500 (4066) Park Improvement Fund 1,630,000 1,473,000 2,301,500 1,653,000 1,866,000 1,380,000 955,000 406,000 482,000 574,000 12,720,500 (5001) - Water Utility 4,622,831 3,031,986 1,342,666 7,782,666 6,295,808 4,752,000 5,292,531 5,268,000 5,503,000 5,578,000 49,469,488 (5101) - Sanitary Sewer Utility 2,089,749 830,167 2,312,042 2,661,792 1,730,597 1,193,000 1,289,025 1,244,000 2,054,800 2,235,000 17,640,172 (5201) Solid Waste Utility 11,000 11,000 11,000 12,000 17,800 13,000 13,000 88,800 (5301) - Stormwater Utility 2,374,607 3,419,367 1,617,717 2,362,897 3,628,967 1,773,525 2,403,462 3,649,950 1,181,400 3,937,820 26,349,712 Cable TV Franchise Fees 160,000 10,000 145,000 38,000 263,000 616,000 Capital Levy - IT Capital Fund 06400 1,734,458 1,796,562 2,289,005 2,195,422 2,469,839 2,243,289 2,337,803 20,000 800,000 15,886,378 Capital Levy - Municipal Buildings and Infrastructure 06000 1,532,318 1,769,138 2,493,982 2,346,851 2,307,782 1,535,669 1,159,619 900,000 635,000 689,000 15,369,359 E-911 Funds 92,423 40,344 42,362 224,480 131,704 49,039 51,491 631,843 Franchise Fees - Pavement Management Fund 5,178,590 5,325,600 4,913,810 5,824,010 3,979,810 5,036,490 4,209,060 6,240,080 3,556,750 4,086,840 48,351,040 G.O. Bonds 4,696,126 2,477,600 5,923,147 6,767,805 5,443,292 1,842,026 2,736,188 1,506,578 2,954,623 12,212,500 46,559,885 G.O. Revenue Bonds 1,250,000 1,870,207 3,120,207 Internal Service revenue - Vehicle and Equipment fund 2,015,446 2,608,008 2,497,067 3,274,542 2,211,522 3,330,437 938,598 700,410 17,576,030 Met Council Grant 2,500,000 2,500,000 Municipal State Aid 1,888,911 1,458,382 3,013,000 4,571,649 2,012,500 5,166,000 18,110,442 Police & Fire Pension 140,215 655,822 21,447 22,090 22,753 23,436 24,139 909,902 State of Minnesota 3,000,000 500,000 673,000 4,173,000 Tax Increment Financing 443,000 443,000 U.S. Government 3,470,667 1,588,000 5,058,667 GRAND TOTAL 38,860,841 28,610,183 25,775,745 38,785,555 34,715,523 23,877,910 24,095,416 19,935,018 16,367,573 35,279,160 286,302,924 Produced Using Plan-It CIP Software Page 1 / 1 City council meeting of December 16, 2024 (Item No. 7b) Title: Resolutions approving 2025 budget - levy and capital improvement plan adoption Page 21