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HomeMy WebLinkAbout2025/01/21 - ADMIN - Minutes - Economic Development Authority - RegularOfficial minutes EDA meeting St. Louis Park, MN Jan. 21, 2025 1. Call to order. President Budd called the meeting to order at 6:05 p.m. a. Roll call Commissioners present: President Sue Budd, Lynette Dumalag, Paul Baudhuin, Tim Brausen, Nadia Mohamed, Margaret Rog Commissioners absent: Yolanda Farris Staff present: City manager (Ms. Keller), community development director (Ms. Barton), administrative services director (Ms. Brodeen), engineering director (Ms. Heiser), economic development manager (Mr. Hunt), housing supervisor (Ms. Olson), engineering project manager (Mr. Weisen) 2. Approve agenda. It was moved by Commissioner Mohamed, seconded by Commissioner Dumalag, to approve the EDA agenda as presented. The motion passed 6-0 (Commissioner Farris absent). 3. Minutes. a. EDA meeting minutes of Dec. 16, 2024 b. EDA meeting minutes of Jan. 6, 2025 It was moved by Commissioner Brausen, seconded by Commissioner Rog, to approve the EDA meeting minutes of Dec. 16, 2024, and Jan. 6, 2025, as presented. The motion passed 6-0 (Commissioner Farris absent). 4. Consent items. a. EDA Resolution No. 25-04 to approve letter of no default – Beltline Station development – Ward 1 It was moved by Commissioner Brausen, seconded by Commissioner Mohamed, to approve the consent items as listed and to waive reading of all resolutions. The motion passed 6-0 (Commissioner Farris absent). Docusign Envelope ID: CCBD3EDE-DC63-4C18-8B5F-DDE79F96FB66 Economic Development Authority -2- Jan. 21, 2025 5. Public hearings – none. 6. Regular business a. EDA Resolution No. 20-05 approving preliminary development agreement between the EDA and Roers St. Louis Park Apartments II LLC – Ward 2 Mr. Hunt presented the staff report. Commissioner Rog stated this development has been discussed by the city council in the past. She explained that a letter from Centro de Trabajadores Unidos en la Lucha (CTUL) was received by the council regarding poor treatment of workers by contractors and sub-contractors on past projects led by Roers Companies. She stated that Roers had responded, stating they were not aware of these issues, nor are they able to control everything that happens on their work sites including the actions of all subcontractors. Commissioner Rog stated that CTUL created a group called Building Dignity and Respect to advance the human rights of people building communities and, at city council’s request, Roers has agreed to meet with this group. In addition to meeting, she would like to see a formal plan created and agreed upon by both parties. The formal plan can be reviewed by the city council before she would approve this project. Commissioner Rog stated that timing is critical because once momentum on a development project gets going, it can be difficult to steer the ship in a different direction, especially with significant investor resources involved. She stated issues like this perpetuate the status quo of inequity and inequality that is worsening every day. Commissioner Rog stated that she wants the council to do better for those who do not have a voice. She asked her fellow commissioners to join her in demanding some kind of formal plan, or framework that all parties agree to, before providing pre-approvals for this project. Commissioner Dumalag stated the city was in negotiations with the developer when the letter was received. She shares the concerns that Commissioner Rog presented, but noted she will support the recommended action since an applicant, by law, is not judged on their hiring practices. Commissioner Dumalag reiterated that more questions will come up when the developer comes before the city council for TIF or other incentives. She stated that the city council also has a responsibility to the taxpayers. Commissioner Brausen stated that he shares Commissioner Rog’s concerns about hiring and labor practices on the job. However, he also agrees with Commissioner Dumalag and will support this preliminary development agreement so the developer can do the work they need to do. He stated it is inappropriate to attach conditions to the preliminary development agreement, noting these concerns have been expressed to the developer. He added that the CTUL letter’s claims are not yet substantiated, and are allegations at this point. To hold up or renegotiate with Roers Companies would present difficulties. He stated the developer has indicated in good faith they will work on and look into the concerns. Commissioner Baudhuin stated he is also torn and appreciates Commissioner Rog’s comments. He also has deep concerns about the letter sent by CTUL. However, it does seem there are some ways to halt the work later if the council does not see what is needed to go forward. He added he wants to keep a watchful eye on this to be sure changes happen and there is Docusign Envelope ID: CCBD3EDE-DC63-4C18-8B5F-DDE79F96FB66 Economic Development Authority -3- Jan. 21, 2025 accountability for CTUL’s concerns to be addressed to the council’s satisfaction. He stated he will support the recommended action but will watch progress carefully. President Budd stated she will not vote in favor of the recommended action and stated now is the time to address these concerns. She stated when the concerns first arose, she understood that the developer would address them and if that has not happened, then the project can wait. She has concerns and reached out to the person who alleged these issues and stated this was not a new allegation, it has been something that has been going on for many years. In her ward, there were protesters speaking against the developer who allegedly engaged in bad labor practices, and she heard from residents about these actions. President Budd stated that expectations can be regulated by council, especially in light of the city’s commitment to equity. She added the developer is in contract with the city and if they choose to sub-contract, the city cannot hold the sub-contractor accountable. Because of this, the city needs to rely on the developer to act in good faith and be responsible for good labor practices. President Budd stated this needs to be addressed before approvals take place. Mr. Mattick stated he is concerned the suggestion for placing a condition on the preliminary development agreement is out the scope of city code. Mr. Mattick stated that he does not know about the allegations or who has looked into them, but understands they are genuinely expressed concerns. He added there are state agencies to report these types of concerns to, and he encouraged that action be taken. He is concerned about putting a condition on this contract, as it is unclear if the developer’s effort would be enough, and whether the city is willing to hold on this project based on information from the third-party contractor. The suggested condition is vague, and he is concerned about the legality of the preliminary development agreement including a condition such as this. Mr. Mattick reiterated that he does understand the concerns. Commissioner Mohamed stated she will approve of the recommended action and she appreciates this conversation. She pointed out that since city finances are not being requested, conditions that the city can ask for are limited. The allegation is concerning and has been addressed with the developer. She agreed there are limitations within the city code and the city council’s scope of authority and that is a future conversation for the council. She stated the city wants to be sure these types of concerns are addressed, but noted she will support the recommended action in good faith that Roers Companies will do the work necessary to resolve this issue. Commissioner Rog stated she appreciated the conversation and added this issue needs to be raised early and loudly, and that she does not regret bringing it forward today. She stated the conversation starting now is important and she plans to use her voice at all stages of the project to let all developers know that the city is serious about these types of concerns. President Budd stated the city has received the commitment that this issue would be addressed before Roers Companies came before council again. She does not feel that has happened, which is a violation of good faith, and that the issue needed to be addressed before the project moved to the next step. President Budd reiterated that she will vote against the proposed action. Docusign Envelope ID: CCBD3EDE-DC63-4C18-8B5F-DDE79F96FB66 Economic Development Authority -4- Jan. 21, 2025 President Budd invited Andy Bollig, Development Partner with Roers Companies, to speak. Mr. Bollig echoed the EDA and city council’s concerns. There are scheduling challenges, and preparation is needed for financing requests. Mr. Bollig stated he will reach out to their contact; Roers Companies meets with union representatives often and while they are a large company, this concern is not something they would ignore. He stated they would like to share their labor standards and requirements and appreciates the continued dialogue with council. It was moved by Commissioner Mohamed, seconded by Commissioner Dumalag, to approve EDA Resolution No. 20-05 the preliminary development agreement between the EDA and Roers St. Louis Park Apartments II LLC – Ward 2. The motion passed 4-2 (Commissioner Rog and President Budd opposed; Commissioner Farris absent). 7. Communications and announcements - none. 8. Adjournment. The meeting adjourned at 6:38 p.m. ______________________________________ ______________________________________ Melissa Kennedy, EDA secretary Sue Budd, EDA president Docusign Envelope ID: CCBD3EDE-DC63-4C18-8B5F-DDE79F96FB66