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HomeMy WebLinkAbout2025/05/19 - ADMIN - Agenda Packets - City Council - RegularAGENDA MAY 19, 2025 6:00 p.m. Economic Development Authority meeting – Council Chambers This meeting is estimated to last longer than 15 minutes. 1.Call to order 2.Approve agenda. 3.Minutes a.Minutes of May 5, 2025 EDA meeting 4.Consent items a.Resolution approving amendment to cooperative construction agreement for Beltline park & ride - Ward 1 b.Resolution approving amendment to subrecipient agreement for Beltline park & ride - Ward 1 5.Public hearings a.Public hearing on proposed business subsidy for the Beltline Station redevelopment - Ward 1 b.Public hearing for purchase agreement amendments with Sherman Associates for Beltline Station -Ward 1 6.Regular business a.Approve resolutions related to Sherman Associates' Beltline Station Redevelopment -Ward 1 7.Communications and announcements – none. 8.Adjournment. 6:15 p.m. City council meeting – Council Chambers The EDA meeting is estimated to last longer than 15 minutes; the city council meeting will convene after the EDA meeting adjourns. The city council meeting will not begin prior to 6:15 p.m. 1. Call to order a.Roll call. b.Pledge of Allegiance. 2. Approve agenda. 3. Presentations a.Recognition of donations Agenda EDA, city council and special study session meetings of May 19, 2025 4.Minutes a.Minutes of April 21, 2025 city council meeting b.Minutes of April 21, 2025 special study session c.Minutes of May 5, 2025 city council meeting 5.Consent items a.Resolution accepting donations to the Parks and Recreation Department b.Resolution approving Police and Fire Police and Fire Public Employees Retirement Association member transfer c.Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 d.Resolution approving implementation of stipends and term limits for Housing Authority Board e.Resolution approving updated West Metro Drug Task Force joint powers agreement 6.Public hearing a.Public hearing for intoxicating liquor license for The Taco Shop LLC dba The Taco Shop 7.Regular business – none. 8.Communications and announcements – none. 9.Adjournment. Following city council meeting – Special study session – Community Room Discussion items 1. Environmental Stewardship system kick-off 2. Boards and Commissions check-in with city council: Environment and Sustainability Commission Written report 3. Participation in U.S. Department of Energy's Better Climate Challenge 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: May 19, 2025 Minutes: 3a Unofficial minutes EDA meeting St. Louis Park, Minnesota May 5, 2025 1.Call to order. President Budd called the meeting to order at 6:07 p.m. a.Roll call Commissioners present: President Sue Budd, Lynette Dumalag, Paul Baudhuin, Tim Brausen, Yolanda Farris, Nadia Mohamed, Margaret Rog Commissioners absent: none Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick) 2. Approve agenda. It was moved by Commissioner Brausen, seconded by Commissioner Baudhuin, to approve the EDA agenda as presented. The motion passed 7-0. 3.Minutes a.EDA meeting minutes of April 21, 2025 It was moved by Commissioner Brausen, seconded by Commissioner Rog, to approve the EDA meeting minutes of April 21, 2025, as presented. The motion passed 7-0. 4. Consent item a.Approve EDA disbursements It was moved by Commissioner Brausen, seconded by Commissioner Rog, to approve the consent items as listed. The motion passed 7-0. 5.Public hearings – none. 6.Regular business – none. Economic development authority meeting of May 5, 2025 (Item No. 3a) Page 2 Title: EDA meeting minutes of May 5, 2025 7.Communications and announcements - none. 8. Adjournment. The meeting adjourned at 6:08 p.m. ______________________________________ ______________________________________ Melissa Kennedy, EDA secretary Sue Budd, EDA president Meeting: Economic development authority Meeting date: May 19, 2025 Consent agenda item: 4a Executive summary Title: Resolution approving amendment to cooperative construction agreement for Beltline park & ride - Ward 1 Recommended action: Motion to adopt Economic Development Authority (EDA) resolution approving amendment to the cooperative construction agreement with the Metropolitan Council for the Southwest Light Rail Transit (SWLRT) Beltline Boulevard Station park & ride facility. Policy consideration: Does the EDA approve the proposed amendment to the cooperative construction agreement with the Metropolitan Council extending the construction completion date for the SWLRT Beltline Boulevard Station park & ride facility? Summary: On Nov. 2, 2020, the EDA approved an agreement with the Metropolitan Council (Met Council) memorializing the terms, conditions, and specifications for construction of public park & ride stalls within the Beltline Boulevard Station parking ramp. On July 24, 2023, the EDA approved a redevelopment agreement with a Sherman Associates’ affiliate under which the affiliate committed to construction of the ramp, including Met Council’s 268 park & ride stalls, on behalf of the EDA. Under the proposed amendment, the EDA agrees to cause the completion of the construction of the ramp for transit use by the Met Council no later than three (3) months prior to the SWLRT Project Revenue Service Date, which is anticipated in 2027. Additionally, the proposed amendment reflects the Met Council’s increased financial contribution of $984,167 (for a total of $3,484,167) toward the cost of constructing the park & ride stalls. Staff, the EDA’s legal counsel and Sherman Associates have reviewed the proposed amendment to the construction agreement and recommend its approval. Financial or budget considerations: None. This is a minor amendment to a previously approved agreement and has no additional financial or budgetary impacts on the EDA. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: EDA Resolution Prepared by: Dean Porter-Nelson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, EDA executive director, community development director Approved by: Kim Keller, city manager Economic development authority meeting of May 19, 2025 (Item No. 4a) Page 2 Title: Resolution approving amendment to cooperative construction agreement for Beltline park & ride - Ward 1 EDA Resolution No. 25-_____________ Approving an amendment to the cooperative construction agreement with Metropolitan Council Be it resolved by the board of commissioners (the “board”) of the St. Louis Park Economic Development Authority (the “authority”) as follows: Section 1. Recitals. 1.01. The authority and city council (the “city council”) of the City of St. Louis Park, Minnesota (the “city”) have heretofore approved the establishment of the Beltline Station Tax Increment Financing District No. 1 (the “TIF district no. 1”), a housing district, and Beltline Station Tax Increment Financing District No. 2 (the “TIF district no. 2” and together with TIF district no. 1, the “TIF districts”), a renewal and renovation district, within Redevelopment Project No. 1 (the “project”). 1.02. The authority, and Beltline Development LLC, or an entity related thereto or affiliated therewith (the “developer”), each own portions of certain property within the project (the “development property”), which has been the subject of various agreements between the parties for purposes of constructing a mixed-use development and related parking, including a parking ramp serving in part as a park & ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station on certain property in the project (the “development”). 1.03. The development includes an approximately 571-space parking ramp with approximately 1,850 square feet of commercial space (including approximately 208 spaces to serve mixed use component, approximately 95 spaces to serve the market rate housing component, and approximately 268 spaces to be dedicated as public transit park & ride spaces) and driver restroom (the “parking ramp component”). 1.04. Metropolitan Council and the authority entered into a cooperative construction agreement, dated December 15, 2020, as amended by a first amendment to the cooperative construction agreement, dated March 31, 2021 and a second amendment to the cooperative construction agreement, dated July 24, 2023 (as heretofore amended, the “original cooperative construction agreement”), which described the responsibilities of Metropolitan Council and the authority with respect to the construction of the public transit parking ramp. 1.05. The authority and Metropolitan Council have negotiated and now propose to execute amendment number three to the cooperative construction agreement (the “third amendment to cooperative construction agreement”) to reflect the Metropolitan Council’s increased contribution for total assistance in the amount of $3,484,167. Section 2. Approval of documents. 2.01. The board hereby approves the third amendment to cooperative construction agreement in substantially the form presented to the board, together with any related documents Economic development authority meeting of May 19, 2025 (Item No. 4a) Page 3 Title: Resolution approving amendment to cooperative construction agreement for Beltline park & ride - Ward 1 necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to such documents (collectively, the “grant documents”). 2.02. The board hereby authorizes the president and executive director, in their discretion and at such time, if any, as they may deem appropriate, to execute the grant documents on behalf of the authority, and to carry out, on behalf of the authority, the authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The grant documents shall be in substantially the forms on file with the authority and the approval hereby given to the grant documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the authority. The execution of any instrument by the appropriate officers of the authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the grant documents shall not be effective until the date of execution thereof as provided herein. 2.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the board by any duly designated acting official, or by such other officer or officers of the board as, in the opinion of the city attorney, may act in their behalf. Upon execution and delivery of the grant documents, the officers and employees of the Board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the board to implement the grant documents. Section 3. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority May 19, 2025: Karen Barton, executive director Sue Budd, president Attest: Melissa Kennedy, secretary Meeting: Economic development authority Meeting date: May 19, 2025 Consent agenda item: 4b Executive summary Title: Resolution approving amendment to subrecipient agreement for Beltline park & ride - Ward 1 Recommended action: Motion to adopt Economic Development Authority (EDA) resolution approving amendment to the Subrecipient Agreement with the Metropolitan Council for the Southwest Light Rail Transit (SWLRT) Beltline Boulevard Station park & ride facility. Policy consideration: Does the EDA approve the proposed amendment extending the term of the subrecipient agreement with the Metropolitan Council related to the CMAQ grant for the SWLRT Beltline Boulevard Station park & ride facility? Summary: On Nov. 17, 2014, the city council approved a resolution authorizing submittal of a federal Congestion Mitigation Air Quality (CMAQ) grant application for a structured parking ramp to be located on the property immediately north of the SWLRT Beltline Boulevard Station platform. The city, and subsequently the EDA, was awarded $6.4 million through the Federal Transit Administration’s (FTA) CMAQ grant program that is regionally administered by the Metropolitan Council (Met Council). Since that time, the EDA, the city, and Sherman Associates with input from Met Council have prepared mutually acceptable redevelopment plans for the 6.6-acre Transit Oriented Development (TOD) site at the southeast quadrant of County State Aid Highways (CSAH) 25 and Beltline Boulevard where the ramp, including the Met Council’s 268 park & ride stalls, will be constructed. On July 24, 2023, the EDA and the Sherman Associates’ affiliate entered into a redevelopment contract under which Sherman Associates agreed to construct the public/private parking ramp, including the Met Council’s park & ride stalls, on behalf of the EDA. On Oct. 21, 2019, the EDA approved a subrecipient agreement with the Met Council which specified the terms under which the CMAQ grant funds would be disbursed to the EDA. The proposed amendment extends the term of that agreement through March 30, 2026, by which time the construction of the ramp must be completed. Staff and the EDA’s legal counsel have reviewed the proposed amendment and recommend its approval. Financial or budget considerations: None. This is a minor amendment to a previously approved agreement and has no additional financial or budgetary impacts on the EDA. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: EDA Resolution Prepared by: Dean Porter-Nelson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, EDA executive director, community development director Approved by: Enter text, city manager Economic development authority meeting of May 19, 2025 (Item No. 4b) Page 2 Title: Resolution approving amendment to subrecipient agreement for Beltline park & ride - Ward 1 EDA Resolution No. 25-_____________ Approving an amendment to the subrecipient grant agreement with Metropolitan Council Be it resolved by the board of commissioners (the “board”) of the St. Louis Park Economic Development Authority (the “authority”) as follows: Section 1. Recitals. 1.01. The authority and city council (the “city council”) of the City of St. Louis Park, Minnesota (the “city”) have heretofore approved the establishment of the Beltline Station Tax Increment Financing District No. 1 (the “TIF district no. 1”), a housing district, and Beltline Station Tax Increment Financing District No. 2 (the “TIF district no. 2” and together with TIF district no. 1, the “TIF districts”), a renewal and renovation district, within Redevelopment Project No. 1 (the “project”). 1.02. The authority, and Beltline Development LLC, or an entity related thereto or affiliated therewith (the “developer”), each own portions of certain property within the project (the “development property”), which has been the subject of various agreements between the parties for purposes of constructing a mixed-use development and related parking, including a parking ramp serving in part as a park & ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station on certain property in the project (the “development”). 1.03. The development includes an approximately 571-space parking ramp with approximately 1,850 square feet of commercial space (including approximately 208 spaces to serve mixed use component, approximately 95 spaces to serve the market rate housing component, and approximately 268 spaces to be dedicated as public transit park & ride spaces) and driver restroom (the “parking ramp component”). 1.04. In order to assist with the costs of the construction of the portion of the parking ramp component containing 268 spaces to be dedicated as public transit park & ride spaces (the “public transit parking ramp”), the authority applied for and received a Congestion Mitigation and Air Quality Grant Contamination Cleanup Grant in the amount $6,453,054 (the “CMAQ grant”) from Metropolitan Council from proceeds of a Congestion Mitigation Air Quality (“CMAQ”) grant from the Federal Transit Administration. 1.05. Metropolitan Council and the authority entered into a subrecipient agreement - Beltline Boulevard Station Park & Ride Project – METRO Green Line Light Rail Transit Extension - Federal Congestion Mitigation and Air Quality (CMAQ) funding, as amended by a first amendment to subrecipient agreement, dated August 6, 2023 (as heretofore amended, the “original CMAQ grant agreement”). Proceeds of the CMAQ grant may be used for eligible project components of public transit parking ramp (the “CMAQ grant-eligible activities”) as described in the original CMAQ grant agreement. Economic development authority meeting of May 19, 2025 (Item No. 4b) Page 3 Title: Resolution approving amendment to subrecipient agreement for Beltline park & ride - Ward 1 1.06. The authority and Metropolitan Council have negotiated and now propose to execute a second amendment to subrecipient agreement with respect to the CMAQ grant (the “second amendment to CMAQ grant agreement”) to update the project activity period. Section 2. Approval of documents. 2.01. The board hereby approves the second amendment to CMAQ agreement in substantially the form presented to the board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to such documents (collectively, the “grant documents”). 2.02. The board hereby authorizes the president and executive director, in their discretion and at such time, if any, as they may deem appropriate, to execute the grant documents on behalf of the authority, and to carry out, on behalf of the authority, the authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The grant documents shall be in substantially the forms on file with the authority and the approval hereby given to the grant documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the authority. The execution of any instrument by the appropriate officers of the authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the grant documents shall not be effective until the date of execution thereof as provided herein. 2.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the board by any duly designated acting official, or by such other officer or officers of the board as, in the opinion of the city attorney, may act in their behalf. Upon execution and delivery of the grant documents, the officers and employees of the board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the board to implement the grant documents. Section 3. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority May 19, 2025: Karen Barton, executive director Sue Budd, president Attest: Melissa Kennedy, secretary Meeting: Economic development authority Meeting date: May 19, 2025 Public hearing: 5a Executive summary Title: Public hearing on proposed business subsidy for the Beltline Station redevelopment – Ward 1 Recommended actions: • Open the public hearing, take public testimony, and close the public hearing for the proposed business subsidy with Beltline Mixed Use LLC. Policy considerations: Does the Economic Development Authority (EDA) wish to provide a business subsidy related to the Beltline Station redevelopment? Summary: Since the financial assistance provided to the Beltline Station development is near the state defined threshold of what is considered a “business subsidy” under Minnesota Statutes sections 116J.993 through 116J.995, EDA legal counsel and Ehlers, the city’s financial consultant, recommend that the city enter into a business subsidy agreement with Sherman Associates related to the Beltline development. The agreement is in accordance with the city’s business subsidy policy, which specifies that the proposed business subsidy corrects conditions that permit designation of a renewal and renovation tax increment financing district, improves public infrastructure including sewers, storm sewers and streets, and removes contaminated soils. In addition, staff recommends setting the job and wage goals at zero after the public hearing, since the goal of the financial assistance is a redevelopment that provides for mixed use, transit-oriented development. In addition to the discussion below, which provides an overview of financial assistance to the redevelopment, amendments to the redevelopment contracts that define financial assistance to the redevelopment are fully described in the May 19, 2025 EDA staff report titled “Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1”. That staff report asks the EDA to consider a motion to adopt a resolution that includes information related to business subsidy among other items related to the Beltline Station redevelopment. In accordance with state statute related to business subsidy, a public hearing is required before this resolution can be considered by the EDA. Financial or budget considerations: The proposed cumulative financial assistance of $15.83 million for the Beltline development is slightly less than the previous proposal of $16.36 million described in a Feb. 12, 2024 staff report. The total assistance for the mixed-use district, which also includes the parking and market rate housing, is $13.232 million and the total assistance for the affordable district is $2.598 million. The Pay-As-You-Go Tax Increment Financing (TIF) notes are slightly lower and are partly offset with a new $1.175 million Affordable Housing Trust Fund (AHTF) commitment. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Dean Porter-Nelson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Economic development authority meeting of May 19, 2025 (Item No. 5a) Page 2 Title: Public hearing on proposed business subsidy for the Beltline Station redevelopment – Ward 1 Discussion Background: The Beltline Station redevelopment site is located at the southeast corner of County State Aid Highway (CSAH) 25 and Belt Line Boulevard and consists of 6.6 acres. Sherman Associates (“redeveloper”) owns approximately 1.5 acres of the site and seeks to acquire the remaining five (5) acres from the EDA. The redeveloper plans to construct a major $147.5 million transit-oriented development with the following components: • Seven-story mixed-use building with six levels of market rate housing (152 units) and approximately 21,000 square feet of neighborhood commercial space. • Four-story all affordable apartment building with 82 units and underground parking, including 39 units at 60% Area Median Income (AMI), 23 units at 50% AMI and 20 units at 30% AMI. The prior proposal was 77 units at 60% AMI and five (5) units at 30% AMI. • Five-story market rate apartment building with 146 units and underground parking. • 592-stall parking ramp, including 268 park & ride stalls required by the Metropolitan Council (Met Council). The development will exceed both the city’s inclusionary housing policy requirements and the city’s green building policy requirements through LEED certification across the mixed-use district and achievement of Enterprise Green Communities standards for the affordable building. The redeveloper will also comply with the city’s diversity, equity and inclusion policy, even though this policy was adopted several years after initial contract agreements. The redeveloper will also be utilizing union labor throughout the development’s construction. Present considerations: Business subsidy: The financial assistance being provided to Sherman Associates to facilitate the market rate components of its Beltline Station development is near the threshold of what is considered a “business subsidy” under Minnesota Statutes sections 116J.993 through 116J.995. A business subsidy is considered an investment in the city and is meant to encourage desirable development and/or redevelopment that benefits the city. A business subsidy is required to meet the “but for” test, meaning but for the provision of public financing assistance, the redevelopment would not occur. Since the financial assistance provided to the Beltline Station Development is near the state defined threshold of what is considered a business subsidy, EDA legal counsel and Ehlers, the city’s financial consultant, recommend that the city enter into a business subsidy agreement with Sherman Associates related to the Beltline development as a precaution to ensure compliance with state statutes. The agreement is in accordance with the city’s business subsidy policy, which specifies that the proposed business subsidy corrects conditions that permits designation of a renewal and renovation tax increment financing district, improves public infrastructure including sewers, storm sewers and streets and removes contaminated soils. Since the goal of the financial assistance is a redevelopment that provides for mixed use, transit-oriented development and not specifically job creation or retention, the wage and job goals may be set to zero in the agreement in accordance with the business subsidy act. Economic development authority meeting of May 19, 2025 (Item No. 5a) Page 3 Title: Public hearing on proposed business subsidy for the Beltline Station redevelopment – Ward 1 Proposed financial assistance: In July 2023, the EDA approved a contract for private development related to the market rate and mixed-use components and parking ramp to facilitate the Beltline Station development. The proposed cumulative financial assistance of $15.83 million for the Beltline development is slightly less than the previous proposal of $16.36 million described in the Feb. 12, 2024 staff report. The total assistance for the mixed use district is $13.232 million and the total assistance for the affordable district is $2.598 million. The latest proposed financial package, totaling $15.83 million in assistance, is slightly lower than the assistance package approved in 2023 due to a lower present value of the Pay-As-You- Go TIF notes. The decrease in the Pay-As-You-Go TIF is somewhat offset by an increased Affordable Housing Trust Fund (AHTF) award including $1.175 million in additional assistance on top of the prior award. Beltline Station development financial assistance summary Site component TIF Note amount AHTF (from pooled TIF) Spending plan pooled TIF Bridge loan forgiveness Total assistance Beltline Station 1 TIF District (affordable component) Affordable $804,800 26 years $1.793 million NA NA $2.598 million Beltline Station 2 TIF District (mixed-use, market rate & parking components) Mixed-use $4.423 million 16 years NA $1,704,000 $989,639 $13.232 million Market rate Parking ramp $4.905 million $1.21 million 16 years NA NA NA Total financial assistance $11.342 million $1.793 million $1,704 million $989,639* $15.83 million *A bridge loan was provided to Sherman Associates to purchase the “Vision Bank parcel” at 4725 Hwy 7 for approximately $3 million of which Sherman Associates had paid $2 million. The EDA and city council previously approved the use of pooled TIF to forgive the remaining balance of $989,639. Summary of prior actions: A summary of all previous actions is provided in the table below. Additional details on actions prior to Feb. 5, 2024 are included in the study session packet for Feb. 12, 2024, pages 8-13. Action Date Vision for Beltline Blvd Station area completed. 2008 - 2011 Beltline Area Framework & Design Guidelines completed. June 2012 (Southwest Light Rail Transit) SWLRT Project Office and city begin work on a joint mixed-use development concept for Beltline Station. 2013 The EDA acquired properties at 4601 Highway 7 & 3130 Monterey Avenue South. December 2013 Economic development authority meeting of May 19, 2025 (Item No. 5a) Page 4 Title: Public hearing on proposed business subsidy for the Beltline Station redevelopment – Ward 1 Action Date City council approved a resolution authorizing the submission of Congestion Mitigation Air Quality (CMAQ) grant application to FTA for partial funding to construct a parking ramp rather than a surface parking lot at Beltline Station to fulfill SWLRT park & ride requirements. November 2014 The federal government awarded the city $7.56 million to construct a park & ride parking ramp with 531-stalls. September 2015 The EDA and Met Council submitted an amendment to the federal government related to SWLRT to reduce the number of park & ride spaces at Beltline Station from 531 stalls to 268 stalls. This request was approved in late 2016, and the CMAQ grant award was accordingly reduced to $6.4 million April 2016 The EDA distributed a request for proposals to prospective developers for the Beltline Station Redevelopment Site. July 2017 The EDA entered into a preliminary development agreement with Sherman Associates to develop the Beltline Station site. February 2018 The EDA provided a bridge loan to Sherman Associates to enable its purchase of the former Vision Bank property to facilitate more than just transit parking on the western side of the Redevelopment Site. Soon after, Sherman Associates closed on the property acquisition and the Met Council placed a transit easement over the property restricting the property use to a public park & ride facility and requiring 268 park & ride spaces be available prior to revenue service of the SWLRT. April 2019 The EDA and the city council approved the first amendment to the preliminary development agreement. June 2019 The EDA approved a subrecipient agreement with the Metropolitan Council which specified the terms under which the CMAQ funds would be disbursed to the EDA. October 2019 The EDA entered into a cooperative construction agreement with the Met Council to construct the parking ramp. November 2020 The EDA discussed Sherman Associates financial assistance request and approved a second amendment to the preliminary development agreement and received a staff report outlining the details of the proposed Beltline Station development. June 2021 The EDA received a report providing an update on the status of the development and issues related to high groundwater on site. November 2021 Sherman Associates received a tax-exempt bond allocation of $13.7 million from Minnesota Management and Budget (MMB) to help finance Beltline Station’s all affordable component. The redeveloper has received several extensions to the start date, which is currently anticipated to be mid-April 2024. January 2022 The city council approved the comprehensive plan amendment. March 2022 The city council approved various vacation requests, a preliminary and final plat, and a preliminary and final planned unit development for the Beltline Station development. April 2022 Economic development authority meeting of May 19, 2025 (Item No. 5a) Page 5 Title: Public hearing on proposed business subsidy for the Beltline Station redevelopment – Ward 1 Action Date The EDA held a public hearing regarding the issuance of the tax-exempt bond allocation for Beltline Station’s affordable housing component. May 2022 Sherman Associates submitted a building permit application for the all- affordable building. May 23, 2022 The EDA and the city council approved the Beltline Station 1 TIF District and Beltline Station 2 TIF District. June 6, 2022 The EDA and the city council approved the contract for private redevelopment for Beltline Station 1 TIF District and the purchase agreement related to the land sale for the complete development. June 20, 2022 Sherman Associates closed on the affordable building’s bond financing. July 1, 2022 The EDA approved a first amendment to the purchase agreement pushing the closing date back to June 30, 2023 to allow all parties time to finalize contracts. Dec. 5, 2022 Sherman Associates signed term sheets with their lenders for the development‘s market rate components. Closing was required to occur by June 30, 2023. February 2023 The EDA approved an early start and right-of-entry on the affordable building site to allow cleanup activities to commence prior to April 1, 2023 to preserve a DEED clean-up grant in the amount of $418,547. March 20, 2023 Sherman Associates began cleanup activities on the affordable building site. March 30, 2023 Sherman Associates submitted a building permit application and plans for the market rate components. May 5, 2023 The EDA received a report outlining a recommendation for an amended financial assistance package to bring the development to fruition. May 15, 2023 Sherman Associates submitted a building permit application and plans for the mixed-use components. May 18, 2023 The EDA approved an amendment to the property purchase agreement and contract for private development related to the affordable components to move the required closing date from June 30, 2023, to Sept. 15, 2023 June 5, 2023 Sherman Associates submitted a building permit application and plans for the parking ramp. June 12, 2023 The EDA held a public hearing on an amendment to the purchase agreement. July 17, 2023 The EDA and the city council approved an amendment to the purchase agreement, and the contract for private development related to the market rate and mixed-use components of the development. July 24, 2023 Sherman Associates and the EDA published legal notices to start the public bidding process of the parking ramp. July 27, 2023 Bidding closed on the parking ramp and the lowest bid was approximately $5.7 million higher than estimated. Aug. 28, 2023 The Met Council considered the original ramp bid solicitation as proof that the construction of the ramp commenced, thereby meeting the required start date of Sept. 30, 2023 to preserve the $6.4 million CMAQ grant. Sept. 30, 2023 The city council approved a minor amendment to the planned unit development zoning district to redesign the parking ramp’s façade to reduce Oct. 2, 2023 Economic development authority meeting of May 19, 2025 (Item No. 5a) Page 6 Title: Public hearing on proposed business subsidy for the Beltline Station redevelopment – Ward 1 Action Date the ramp’s construction costs. The EDA and the city council approved amendments to the purchase agreement and various contracts to extend the commencement and completion dates of the development. Oct. 10, 2023 Sherman Associates and the EDA published legal notices to start the second round of public bidding process for the redesigned parking ramp. Nov. 9, 2023 The Met Council approved an amendment to the cooperative construction agreement with the EDA to increase their financial assistance to the public parking portion of the ramp by $984,167 for a total contribution of $3,484,167. Dec. 13, 2023 Public bidding closed on the parking ramp. The lowest bid was submitted by Dolar Construction for $20.2 million. The bid was approximately $1.7 million higher than estimated in the redeveloper’s proforma. Jan. 20, 2024 The EDA and city provided a letter stating it will not declare Sherman Associates in default since the expiration date of the contracts was Jan. 31, 2024 to preserve the development’s financing. Feb. 5, 2024 The city council approved a one-year extension of the approval of the final plat to April 2025. March 2024 Sherman Associates and the EDA published legal notices to start the third round of public bidding process for the parking ramp. Jan. 23, 2025 Public bidding closed on the parking ramp. The lowest bid was submitted by Donar Construction for $18.96 million. The bid was approximately $1.2 million lower than the bid submitted one year prior, contributing to the current financial feasibility of the redevelopment. March 4, 2025 The city council approved an extension of the approval of the final plat to Dec. 31, 2025 to allow the developer needed time to close on the property. March 17, 2025 Meeting: Economic development authority Meeting date: May 19, 2025 Public hearing: 5b Executive summary Title: Public hearing for purchase agreement amendments with Sherman Associates for Beltline Station - Ward 1 Recommended actions: • Open the public hearing, take public testimony, and close the public hearing for the proposed amendments to the purchase agreement with an affiliate of Sherman Associates. Policy considerations: Does the Economic Development Authority (EDA) wish to amend the purchase agreement with Sherman Associates to facilitate the Beltline Station redevelopment? Summary: Sherman Associates has a purchase agreement originally dated June 2022 to acquire EDA-owned property at the southeast corner of County Road 25 (County State Aid Highway 25) and Beltline Boulevard to construct a mixed-use, market rate and affordable multi-family residential and commercial development and related parking, including a parking ramp serving in part as a park & ride facility for Metro Transit’s proposed Southwest Light Rail Transit (SWLRT) Beltline station on certain property in the project. Amendments to the purchase agreement would extend the date, increase the purchase price paid by the developer and amend the timing of the payments. The amendments are described in the discussion below and are included in identical form within the May 19, 2025 EDA staff report titled “Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1”. That staff report asks the EDA to consider a motion to adopt a resolution which includes an amended purchase agreement and other related documents. Because the resolution includes the terms of a property sale, state statute requires a public hearing before this resolution can be considered by the EDA. Financial or budget considerations: The proposed cumulative financial assistance of $15.83 million for the Beltline development is slightly less than the previous proposal of $16.36 million described in the Feb. 12, 2024 staff report. The Pay-As-You-Go Tax Increment Financing (TIF) notes are slightly lower and are partly offset with a new $1.175 million Affordable Housing Trust Fund (AHTF) commitment. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Prepared by: Dean Porter-Nelson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Discussion Economic development authority meeting of May 19, 2025 (Item No. 5b) Page 2 Title: Public hearing for purchase agreement amendments with Sherman Associates for Beltline Station - Ward 1 Amendments to the purchase agreement including repayment terms for the purchase price of the land: An appraisal of the EDA’s property provided a value of $3.39 million. Based on the appraisal, the EDA agreed to sell the property for the market rate components to Sherman Associates for $3 million and the property for the affordable component for $1 and transfer $390,000 in pooled tax increment to the Development Fund to compensate itself for the remaining $390,000 land value reflected in the lender’s appraisal. It is proposed that the terms of the purchase agreement be amended as follows: • The purchase agreement is extended until July 31, 2025. • Sherman Associates will now pay the full $3.39 million appraised value of the land; the timing of the payments will change. • The full $3.39 million will be repaid through a purchase price note. o Sherman Associates would pay $1 for the affordable parcel at closing and would pay a minimum of $2 million and up to the full $3.39 million at the time that they refinance the construction loan, based on available refinancing proceeds. o Any remaining balance after refinancing would convert to a payable, amortizing loan fully repayable by Sherman Associates. Although this structure gives Sherman Associates an extended repayment timeline, it also reduces the EDA's financial contribution to the redevelopment by $390,000, not including any accrued interest. In terms of supporting redevelopment of the parcel, this structure lowers the amount Sherman Associates needs to finance as part of the construction loans and contributes to the financial feasibility of the redevelopment. Summary of prior actions: A summary of all previous actions is provided in the table below. Additional details on actions prior to Feb. 5, 2024 are included in the study session packet for Feb. 12, 2024, pages 8-13. Action Date Vision for Beltline Blvd Station area completed. 2008 - 2011 Beltline Area Framework & Design Guidelines completed. June 2012 (Southwest Light Rail Transit) SWLRT Project Office and city begin work on a joint mixed-use development concept for Beltline Station. 2013 The EDA acquired properties at 4601 Highway 7 & 3130 Monterey Avenue South. December 2013 City council approved a resolution authorizing the submission of Congestion Mitigation Air Quality (CMAQ) grant application to FTA for partial funding to construct a parking ramp rather than a surface parking lot at Beltline Station to fulfill SWLRT park & ride requirements. November 2014 The federal government awarded the city $7.56 million to construct a park & ride parking ramp with 531-stalls. September 2015 The EDA and Met Council submitted an amendment to the federal government related to SWLRT to reduce the number of park & ride spaces at Beltline Station from 531 stalls to 268 stalls. This request was approved in late 2016, and the CMAQ grant award was accordingly reduced to $6.4 April 2016 Economic development authority meeting of May 19, 2025 (Item No. 5b) Page 3 Title: Public hearing for purchase agreement amendments with Sherman Associates for Beltline Station - Ward 1 Action Date million The EDA distributed a request for proposals to prospective developers for the Beltline Station Redevelopment Site. July 2017 The EDA entered into a preliminary development agreement with Sherman Associates to develop the Beltline Station site. February 2018 The EDA provided a bridge loan to Sherman Associates to enable its purchase of the former Vision Bank property to facilitate more than just transit parking on the western side of the Redevelopment Site. Soon after, Sherman Associates closed on the property acquisition and the Met Council placed a transit easement over the property restricting the property use to a public park & ride facility and requiring 268 park & ride spaces be available prior to revenue service of the SWLRT. April 2019 The EDA and the city council approved the first amendment to the preliminary development agreement. June 2019 The EDA approved a subrecipient agreement with the Metropolitan Council which specified the terms under which the CMAQ funds would be disbursed to the EDA. October 2019 The EDA entered into a cooperative construction agreement with the Met Council to construct the parking ramp. November 2020 The EDA discussed Sherman Associates financial assistance request and approved a second amendment to the preliminary development agreement and received a staff report outlining the details of the proposed Beltline Station development. June 2021 The EDA received a report providing an update on the status of the development and issues related to high groundwater on site. November 2021 Sherman Associates received a tax-exempt bond allocation of $13.7 million from Minnesota Management and Budget (MMB) to help finance Beltline Station’s all affordable component. The redeveloper has received several extensions to the start date, which is currently anticipated to be mid-April 2024. January 2022 The city council approved the comprehensive plan amendment. March 2022 The city council approved various vacation requests, a preliminary and final plat, and a preliminary and final planned unit development for the Beltline Station development. April 2022 The EDA held a public hearing regarding the issuance of the tax-exempt bond allocation for Beltline Station’s affordable housing component. May 2022 Sherman Associates submitted a building permit application for the all- affordable building. May 23, 2022 The EDA and the city council approved the Beltline Station 1 TIF District and Beltline Station 2 TIF District. June 6, 2022 The EDA and the city council approved the contract for private redevelopment for Beltline Station 1 TIF District and the purchase agreement related to the land sale for the complete development. June 20, 2022 Sherman Associates closed on the affordable building’s bond financing. July 1, 2022 Economic development authority meeting of May 19, 2025 (Item No. 5b) Page 4 Title: Public hearing for purchase agreement amendments with Sherman Associates for Beltline Station - Ward 1 Action Date The EDA approved a first amendment to the purchase agreement pushing the closing date back to June 30, 2023 to allow all parties time to finalize contracts. Dec. 5, 2022 Sherman Associates signed term sheets with their lenders for the development‘s market rate components. Closing was required to occur by June 30, 2023. February 2023 The EDA approved an early start and right-of-entry on the affordable building site to allow cleanup activities to commence prior to April 1, 2023 to preserve a DEED clean-up grant in the amount of $418,547. March 20, 2023 Sherman Associates began cleanup activities on the affordable building site. March 30, 2023 Sherman Associates submitted a building permit application and plans for the market rate components. May 5, 2023 The EDA received a report outlining a recommendation for an amended financial assistance package to bring the development to fruition. May 15, 2023 Sherman Associates submitted a building permit application and plans for the mixed-use components. May 18, 2023 The EDA approved an amendment to the property purchase agreement and contract for private development related to the affordable components to move the required closing date from June 30, 2023, to Sept. 15, 2023 June 5, 2023 Sherman Associates submitted a building permit application and plans for the parking ramp. June 12, 2023 The EDA held a public hearing on an amendment to the purchase agreement. July 17, 2023 The EDA and the city council approved an amendment to the purchase agreement, and the contract for private development related to the market rate and mixed-use components of the development. July 24, 2023 Sherman Associates and the EDA published legal notices to start the public bidding process of the parking ramp. July 27, 2023 Bidding closed on the parking ramp and the lowest bid was approximately $5.7 million higher than estimated. Aug. 28, 2023 The Met Council considered the original ramp bid solicitation as proof that the construction of the ramp commenced, thereby meeting the required start date of Sept. 30, 2023 to preserve the $6.4 million CMAQ grant. Sept. 30, 2023 The city council approved a minor amendment to the planned unit development zoning district to redesign the parking ramp’s façade to reduce the ramp’s construction costs. Oct. 2, 2023 The EDA and the city council approved amendments to the purchase agreement and various contracts to extend the commencement and completion dates of the development. Oct. 10, 2023 Sherman Associates and the EDA published legal notices to start the second round of public bidding process for the redesigned parking ramp. Nov. 9, 2023 The Met Council approved an amendment to the cooperative construction agreement with the EDA to increase their financial assistance to the public parking portion of the ramp by $984,167 for a total contribution of $3,484,167. Dec. 13, 2023 Economic development authority meeting of May 19, 2025 (Item No. 5b) Page 5 Title: Public hearing for purchase agreement amendments with Sherman Associates for Beltline Station - Ward 1 Action Date Public bidding closed on the parking ramp. The lowest bid was submitted by Dolar Construction for $20.2 million. The bid was approximately $1.7 million higher than estimated in the redeveloper’s proforma. Jan. 20, 2024 The EDA and city provided a letter stating it will not declare Sherman Associates in default since the expiration date of the contracts was Jan. 31, 2024 to preserve the development’s financing. Feb. 5, 2024 The city council approved a one-year extension of the approval of the final plat to April 2025. March 2024 Sherman Associates and the EDA published legal notices to start the third round of public bidding process for the parking ramp. Jan. 23, 2025 Public bidding closed on the parking ramp. The lowest bid was submitted by Donar Construction for $18.96 million. The bid was approximately $1.2 million lower than the bid submitted one year prior, contributing to the current financial feasibility of the redevelopment. March 4, 2025 The city council approved an extension of the approval of the final plat to Dec. 31, 2025 to allow the developer needed time to close on the property. March 17, 2025 Meeting: Economic development authority Meeting date: May 19, 2025 Consent agenda item: 6a Executive summary Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Recommended actions: •Motion to adopt Economic Development Authority (EDA) resolution approving an amended and restated market rate housing and mixed-use redevelopment contract for private development, approving an amended purchase agreement, approving a business subsidy agreement and other related documents. •Motion to adopt EDA resolution approving an amended and restated affordable housing redevelopment contract for private development with an affiliate of Sherman Associates, and other related documents. •Motion to adopt EDA resolution approving an early start agreement for minimal site preparation. Policy considerations: Does the EDA support amending the existing Beltline Station market rate contract, affordable housing contract, the purchase agreement and other related documents as proposed? Does the EDA support an early start right of entry agreement for minimal site preparation of subject EDA-owned parcels prior to closing? Summary: An affiliate of Sherman Associates has a purchase agreement originally dated June 2022, to acquire EDA-owned property at the southeast corner of County Road 25 and Beltline Boulevard. The redeveloper has redevelopment contracts, planning approvals, and financing for a $147.5 million redevelopment with 380 units of housing, including 21% (82) affordable units, 21,000 square feet of commercial space and a parking ramp with 592 stalls, including Green Line Extension Light Rail Transit park & ride stalls. The redevelopment effort has faced adverse economic conditions and challenges that stalled commencement of the project as explained in the Feb. 12, 2024 staff report. The redevelopment is now financially feasible. Sherman Associates is prepared to close on financing and the land and begin construction on the mixed-use and market rate buildings and parking ramp structure prior to July 13, 2025. Closing on financing for the affordable housing building is anticipated to occur prior to the second quarter of 2026. To facilitate the closings, the redeveloper seeks various contract amendments, extensions and right of entry agreement. Financial or budget considerations: The proposed cumulative financial assistance of $15.83 million for the Beltline development is slightly less than the previous proposal of $16.36 million described in the Feb. 12, 2024 staff report. The Pay-As-You Go Tax Increment Financing (TIF) notes are slightly lower and are partly offset with a new $1.175 million Affordable Housing Trust Fund (AHTF) commitment. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion, EDA resolutions Prepared by: Dean Porter-Nelson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director, EDA executive director Approved by: Kim Keller, city manager Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 2 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Discussion Background: The Beltline Station redevelopment site is located at the southeast corner of County State Aid Highway (CSAH) 25 and Belt Line Boulevard and consists of 6.6 acres. Sherman Associates (redeveloper) owns approximately 1.5 acres of the site and seeks to acquire the remaining five (5) acres from the EDA. The redeveloper plans to construct a major $147.5 million transit-oriented development with the following components: • Seven-story mixed-use building with six levels of market rate housing (152 units) and approximately 21,000 square feet of neighborhood commercial space. • Four-story all affordable apartment building with 82 units and underground parking, including 39 units at 60% Area Median Income (AMI), 23 units at 50% AMI, and 20 units at 30% AMI. This is a change from the prior proposal of 77 units at 60% AMI and five (5) units at 30% AMI. • Five-story market rate apartment building with 146 units and underground parking. • 592-stall parking ramp, including 268 park & ride stalls required by the Metropolitan Council. The development will exceed both the city’s inclusionary housing policy requirements and the city’s green building policy requirements through LEED certification across the mixed-use district and achievement of Enterprise Green Communities standards for the affordable building. The redeveloper will also comply with the city’s diversity, equity and inclusion policy, even though this policy was adopted several years after initial contract agreements. The redeveloper will also be utilizing union labor throughout the development’s construction. Site information and public infrastructure needs: The subject site is located in the Triangle neighborhood immediately north of the Southwest Light Rail (SWLRT) Beltline Boulevard Station. It comprises four tracts of land, most of which is owned by the city’s Economic Development Authority (EDA) as shown below: Beltline Station property map showing existing site conditions Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 3 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 The development site comprises the following properties: • 4601 Highway 7 (owned by the EDA) • 3130 Monterey Avenue South (owned by the EDA) • Right of way (owned by the EDA) • 4725 Highway 7 (owned by Beltline Development LLC, an affiliate of Sherman Associates) It has long been assumed that there would be numerous challenges redeveloping the subject site given the wetland, high water table and known contamination as well as the number and size of the utilities traversing the property. This assumption was borne out through due diligence which verified that there are significant extraordinary costs associated with redeveloping the site along with other required costs. These extraordinary site development costs include but are not limited to utility relocations (some of which are very large), wetland mitigation, environmental remediation, shoring and other site work; all of which need to be completed at the outset to make the site construction-ready. Due to these extraordinary site costs, the project has to be developed in a single phase, adding additional cost to the project. To prepare the site for a major mixed-use development, a number of significant public infrastructure updates need to occur, including: • Relocation of an existing 66-inch storm sewer pipe running north to south through the site connecting storm water from north of CSAH 25 to Bass Lake Preserve and creation of a public storm trap. • Relocation of dual-force sewer mains running underneath the former frontage road. • Reconstruction and redesign of the backage road to facilitate commercial and residential traffic into the site. • Completion of Monterey Avenue South and the installation of new water and sewer lines within the street. • Creation of a public plaza at the base of the pedestrian bridge staircase. • Installation of sidewalks and multi-use trails surrounding the site. • Installation of public streetlights. Rendering of proposed Beltline Station development Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 4 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 City Strategic Priorities: The Beltline Station development serves to advance all five of the city’s strategic priorities, achieves the vision, goals and objectives that were envisioned by the EDA and the city council when the request for proposals (RFP) was issued in 2017, and achieves many of the goals and strategies identified in the city’s 2040 Comprehensive Plan: • 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. o The development provides 82 all-affordable units, including a new unit mix prioritizing significantly deeper affordability. This includes 39 units at 60% AMI, 23 units at 50% AMI, and 20 units at 30% AMI. The redeveloper is applying for project-based vouchers (PBVs) from the St. Louis Park Housing Authority. o The developer will also be utilizing union labor throughout the development’s construction. o The development also provides approximately 21,000 SF of neighborhood commercial space, creating opportunities for small businesses and employment. o The redeveloper will be adhering to the city’s diversity, equity and inclusion policy goals and quarterly reports and will adhere to federal disadvantaged business hiring goals pertaining to the construction of the public parking ramp. o Sherman Associates is committed to advancing equitable developments and utilizing their projects to advance social, racial and economic equity. • St. Louis Park is committed to continue to lead in environmental stewardship. o The development exceeds the city’s green building policy requirements as amended in July 2020. The redeveloper intends to use Enterprise Green Communities as its design rating system for the all-affordable building, which is a requirement of the Low-Income Housing Tax Credit (LIHTC) allocation, and intends to seek LEED Certification for the market rate buildings. Both rating systems meet the requirements of the green building policy. Specific sustainable features are outlined further in this report. o Sherman Associates developed, owns and operates two off-site solar gardens under Xcel Energy’s community solar program, which it plans to access to offset some of the Beltline buildings’ energy needs. Additionally, building tenants could subscribe to Sherman Associate’s solar gardens for their energy needs under the community solar program. o The redevelopment site contains contaminated soils which will be mitigated by this development. o The redevelopment site does not currently contain any stormwater management practices, which will be addressed during construction. • St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. o Beltline Station development provides for a signature transit-oriented development at the Beltline Boulevard light rail station. o Provides multi-use trails, sidewalks and bike lanes around and through the site to create a development that is truly designed for people first, then bikes, transit and then for cars per the goals of the city’s 2040 Comprehensive Plan. o The development includes approximately 21,000 square feet of neighborhood commercial space providing employment opportunities for Beltline Station Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 5 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 residents and the surrounding neighborhood, which also reduces dependence on motorized vehicles to get to work. o Provides 268 park & ride spaces for the Metro Greenline Extension/Southwest Light Rail to facilitate greater light rail ridership in the metro. • St. Louis Park is committed to creating opportunities to build social capital through community engagement. o There was a robust public process for the planning of the Beltline Station area and the rezoning process. Additionally, the redeveloper sought input from community members on future commercial uses within the development and amenities related to the affordable components. o The site is designed to facilitate social building opportunities through placemaking. The development includes pocket parks that are privately owned but accessible to the public for recreation and community building. o Public art is required to be installed and the community will be involved with the process of artist and art selection. A summary of all previous actions related to the proposed redevelopment is provided in the table below. Additional details on actions prior to 2.5.2024 are included in the study session packet for Feb. 12, 2024, pages 8-13. Action Date Vision for Beltline Blvd Station area completed. 2008 - 2011 Beltline Area Framework & Design Guidelines completed. June 2012 (Southwest Light Rail Transit) SWLRT Project Office and city begin work on a joint mixed-use development concept for Beltline Station. 2013 The EDA acquired properties at 4601 Highway 7 & 3130 Monterey Avenue South. December 2013 City council approved a resolution authorizing the submission of Congestion Mitigation Air Quality (CMAQ) grant application to FTA for partial funding to construct a parking ramp rather than a surface parking lot at Beltline Station to fulfill SWLRT park & ride requirements. November 2014 The federal government awarded the city $7.56 million to construct a park & ride parking ramp with 531-stalls. September 2015 The EDA and Met Council submitted an amendment to the federal government related to SWLRT to reduce the number of park & ride spaces at Beltline Station from 531 stalls to 268 stalls. This request was approved in late 2016, and the CMAQ grant award was accordingly reduced to $6.4 million April 2016 The EDA distributed a request for proposals to prospective developers for the Beltline Station Redevelopment Site. July 2017 The EDA entered into a preliminary development agreement with Sherman Associates to develop the Beltline Station site. February 2018 The EDA provided a bridge loan to Sherman Associates to enable its purchase of the former Vision Bank property to facilitate more than just transit parking on the western side of the Redevelopment Site. Soon after, Sherman Associates closed on the property acquisition and the Met Council April 2019 Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 6 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Action Date placed a transit easement over the property restricting the property use to a public park & ride facility and requiring 268 park & ride spaces be available prior to revenue service of the SWLRT. The EDA and the city council approved the first amendment to the preliminary development agreement. June 2019 The EDA approved a subrecipient agreement with the Metropolitan Council which specified the terms under which the CMAQ funds would be disbursed to the EDA. October 2019 The EDA entered into a cooperative construction agreement with the Met Council to construct the parking ramp. November 2020 The EDA discussed Sherman Associates financial assistance request and approved a second amendment to the preliminary development agreement and received a staff report outlining the details of the proposed Beltline Station development. June 2021 The EDA received a report providing an update on the status of the development and issues related to high groundwater on site. November 2021 Sherman Associates received a tax-exempt bond allocation of $13.7 million from Minnesota Management and Budget (MMB) to help finance Beltline Station’s all affordable component. The redeveloper has received several extensions to the start date, which is currently anticipated to be mid-April 2024. January 2022 The city council approved the comprehensive plan amendment. March 2022 The city council approved various vacation requests, a preliminary and final plat, and a preliminary and final planned unit development for the Beltline Station development. April 2022 The EDA held a public hearing regarding the issuance of the tax-exempt bond allocation for Beltline Station’s affordable housing component. May 2022 Sherman Associates submitted a building permit application for the all- affordable building. May 23, 2022 The EDA and the city council approved the Beltline Station 1 TIF District and Beltline Station 2 TIF District. June 6, 2022 The EDA and the city council approved the contract for private redevelopment for Beltline Station 1 TIF District and the purchase agreement related to the land sale for the complete development. June 20, 2022 Sherman Associates closed on the affordable building’s bond financing. July 1, 2022 The EDA approved a first amendment to the purchase agreement pushing the closing date back to June 30, 2023 to allow all parties time to finalize contracts. Dec. 5, 2022 Sherman Associates signed term sheets with their lenders for the development‘s market rate components. Closing was required to occur by June 30, 2023. February 2023 The EDA approved an early start and right-of-entry on the affordable building site to allow cleanup activities to commence prior to April 1, 2023 to preserve a DEED clean-up grant in the amount of $418,547. March 20, 2023 Sherman Associates began cleanup activities on the affordable building site. March 30, 2023 Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 7 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Action Date Sherman Associates submitted a building permit application and plans for the market rate components. May 5, 2023 The EDA received a report outlining a recommendation for an amended financial assistance package to bring the development to fruition. May 15, 2023 Sherman Associates submitted a building permit application and plans for the mixed-use components. May 18, 2023 The EDA approved an amendment to the property purchase agreement and contract for private development related to the affordable components to move the required closing date from June 30, 2023, to Sept. 15, 2023 June 5, 2023 Sherman Associates submitted a building permit application and plans for the parking ramp. June 12, 2023 The EDA held a public hearing on an amendment to the purchase agreement. July 17, 2023 The EDA and the city council approved an amendment to the purchase agreement, and the contract for private development related to the market rate and mixed-use components of the development. July 24, 2023 Sherman Associates and the EDA published legal notices to start the public bidding process of the parking ramp. July 27, 2023 Bidding closed on the parking ramp and the lowest bid was approximately $5.7 million higher than estimated. Aug. 28, 2023 The Met Council considered the original ramp bid solicitation as proof that the construction of the ramp commenced, thereby meeting the required start date of Sept. 30, 2023 to preserve the $6.4 million CMAQ grant. Sept. 30, 2023 The city council approved a minor amendment to the planned unit development zoning district to redesign the parking ramp’s façade to reduce the ramp’s construction costs. Oct. 2, 2023 The EDA and the city council approved amendments to the purchase agreement and various contracts to extend the commencement and completion dates of the development. Oct. 10, 2023 Sherman Associates and the EDA published legal notices to start the second round of public bidding process for the redesigned parking ramp. Nov. 9, 2023 The Met Council approved an amendment to the cooperative construction agreement with the EDA to increase their financial assistance to the public parking portion of the ramp by $984,167 for a total contribution of $3,484,167. Dec. 13, 2023 Public bidding closed on the parking ramp. The lowest bid was submitted by Dolar Construction for $20.2 million. The bid was approximately $1.7 million higher than estimated in the redeveloper’s proforma. Jan. 20, 2024 The EDA and city provided a letter stating it will not declare Sherman Associates in default since the expiration date of the contracts was Jan. 31, 2024 to preserve the development’s financing. Feb. 5, 2024 The city council approved a one-year extension of the approval of the final plat to April 2025. March 2024 Sherman Associates and the EDA published legal notices to start the third round of public bidding process for the parking ramp. Jan. 23, 2025 Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 8 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Action Date Public bidding closed on the parking ramp. The lowest bid was submitted by Donar Construction for $18.96 million. The bid was approximately $1.2 million lower than the bid submitted one year prior, contributing to the current financial feasibility of the redevelopment. March 4, 2025 The city council approved an extension of the approval of the final plat to Dec. 31, 2025 to allow the developer needed time to close on the property. March 17, 2025 Federally approved plan for parking lot to be built if redevelopment continues to stall: As noted in the timeline above, on Oct. 21, 2019, the EDA approved a subrecipient agreement with the Met Council which specified the terms under which the CMAQ funds would be disbursed to the EDA. On Nov. 2, 2020, the EDA entered into a cooperative construction agreement with the Met Council under which the EDA committed to constructing a multi-level parking structure on the 4725 Highway 7 property - in lieu of a surface parking lot - prior to the start of revenue service. Under the agreement, the parking facility is to provide 268 public park & ride stalls and is to be constructed in compliance with specified federal requirements. The cooperative construction agreement requires the park & ride stalls be available no later than three months prior to revenue service of the light rail. It also specifies that if the EDA fails to construct the parking ramp, the EDA will be required to construct a surface parking lot per the federally approved plans for Southwest Light Rail. This parking lot would consume the entire western half of the development site and would be owned by the EDA. This would significantly reduce the overall project scope of what could be built on the property (see graphic below), and the parking lot would retain a permanent transit easement recorded on it precluding any future private development. Federally approved plan for parking lot Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 9 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Present considerations: Current financing conditions have improved modestly, and the redeveloper secured favorable cost estimates for the parking ramp in a second round of bidding. As such, the redeveloper is prepared to begin construction on the mixed-use building, market rate building and the ramp immediately after closing. The redeveloper seeks EDA approval of a right of entry agreement for minimal site improvements and corresponding extensions ahead of closing on the EDA- owned land and financing prior to July 31, 2025 to facilitate construction commencement of the project. The affordable building will occur in a second phase of construction due to a shift in financing structure for the affordable building, with a projected start in early 2026, but no later than June 2027. The redeveloper revised the unit mix in the building to provide substantially deeper affordability, including 20 units at 30% AMI, 23 units at 50% AMI and 39 units at 60% AMI. This represents a significant increase in affordability from the prior proposal of 77 units at 60% AMI and five (5) units at 30%. To ensure that the affordable units are constructed within the development project, the redeveloper agrees to an in-lieu fee of $5.2 million payable to the city’s affordable housing trust fund if construction has not begun on the affordable building by summer 2027. Additionally, the EDA will have a right of reverter on the parcel, meaning the EDA could take ownership of the parcel if the affordable building construction has not begun by June 2027. Proposed financial assistance: In July 2023, the EDA approved a contract for private development related to the market rate and mixed-use components and parking ramp to facilitate the Beltline Station Development. The latest proposed financial package, totaling $15.837 million in assistance, is slightly lower than the assistance package approved in 2023, due to a lower present value of the Pay-As-You-Go TIF notes. The decrease in the Pay-As-You- Go TIF, coupled with a more deeply affordable unit mix, resulted in an additional gap in the financing for the affordable building. To assist in offsetting a portion of the increased gap, staff is recommending an increased Affordable Housing Trust Fund (AHTF) award associated with a much more deeply affordable unit mix. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 10 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Beltline Station development financial assistance summary Site component TIF Note amount AHTF (from pooled TIF) Spending plan pooled TIF Bridge loan forgiveness Total assistance Beltline Station 1 TIF District (affordable component) Affordable $804,800 26 years $1.793 million NA NA $2.598 million Beltline Station 2 TIF District (mixed-use, market rate & parking components) Mixed-use $4.423 million 16 years NA $1,704,000 $989,639 $13.232 million Market rate Parking ramp $4.905 million $1.21 million 16 years NA NA NA Total financial assistance $11.342 million $1.793 million $1,704 million $989,639* $15.83 million *A bridge loan was provided to Sherman Associates to purchase the Vision Bank Parcel at 4725 Hwy 7 for approximately $3 million, of which Sherman Associates had paid $2 million. The EDA and the city council previously approved the use of pooled TIF to forgive the remaining balance of $989,639. Amendments to the affordable contract: Amendments to the private development contract for the affordable housing are driven in part by an interest in reapplying for new bonds with a new project plan that includes deeper affordability; in part, by a need for the project to seek a new bonding allocation. Given the approaching deadline to spend the majority of the bond proceeds, their tax credit investor became uncomfortable proceeding with the existing financing structure. This unusual circumstance arose as a combined result of escalating construction costs and adverse financing and economic conditions that stalled the project. As such, the redeveloper is unable to spend their existing bond proceeds and they are now in the position where they must apply for new bonds. However, applying for new bonds provides the redeveloper with an opportunity for a new unit mix with considerably deeper affordability. Affordability Type Summary Affordability Studio 1-BR 2-BR 3-BR Live / Work Total Total 60% AMI 1 7 21 10 0 39 50% AMI 1 4 12 6 0 23 30% AMI 0 3 11 6 0 20 New unit mix with significantly deeper affordability. The majority of the units remain 2- Bedrooms and 3-Bedrooms appropriate for families. Presently, given the considerations above, the redeveloper requests the following changes to the affordable contract: • Additional AHTF to assist in offsetting the financial gap associated with deeper affordability of the unit mix at the site. Although the overall financial assistance package for Beltline Station is lower than the one approved in 2023, the current request from the redeveloper to the EDA includes an additional $1.175 million from the Affordable Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 11 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Housing Trust Fund (AHTF), for a total of $1.793 million in AHTF which includes the prior amount of $618,238 approved by the EDA and the city council. • This redeveloper is currently applying for Project-Based Vouchers (PBVs) from the St. Louis Park Housing Authority for the 20 30% AMI units, supporting integration of residents with a mix of incomes within the affordable building and an overall mix of incomes at a prime site with immediate access to downtown and the western suburbs via the Green Line Extension Light Rail Transit and the Cedar Lake regional bike and pedestrian trail. • The redeveloper is proposing an extension to the contract associated with a change in the phasing of the project, in which the affordable portion will commence construction following the mixed-use, market rate and ramp components of the project. The contract states that construction must commence within two years of closing (mid-2027), and the redeveloper anticipates commencement of construction in early 2026 or sooner. • Addition of an in-lieu fee of $5.2 million, payable if the 82-unit affordable project does not begin construction within two years after closing, to meet the requirements of the Inclusionary Housing ordinance. The fee was sized in consultation with Ehlers Associates and was based on the number of units, the levels of affordability and the number of years of affordability. • The EDA will have a reverter on the affordable housing parcel allowing the EDA to re- take ownership of the parcel should the affordable building not commence construction within two years following closing. This, combined with the in-lieu payment, would allow the EDA to work with another developer to facilitate construction of an affordable building on the site. Right of entry agreement for minimal site preparation: The redeveloper is requesting a right of entry agreement due to a need to begin minimal site preparation prior to closing. This need is primarily driven by seasonal construction timeline considerations. The right of entry is limited to the following minimal scope by Frana, the general contractor, and will not exceed $100,000. • Abandon dead-end temporary Xcel Energy utilities and re-install temporary service at perimeter of site. • Set up and establish perimeter site fencing, temporary site office and establish survey benchmarks and control. • Provide site clearing and removal and grubbing of trees, shrubs and site vegetation. • Remove all previously abandoned underground utilities that are no longer in service. • Provide minimal site grading as required only to set up site control such as temporary entrances in accordance with Stormwater Pollution Prevention Program (SWPPP) and watershed requirements, potholing and exploration on the redevelopment property. The scope is secured by an erosion and sediment control permit and Frana’s performance bond. Amendments to the mixed-use contract: The redeveloper requests changes to the mixed-use contract as follows: • Various dates in the mixed-use contract, which includes the market rate housing and ramp components, are extended to accommodate the current project timeline. The Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 12 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 redeveloper anticipates a financial closing in summer 2025 with the following anticipated construction schedule: o Grading on the full site – Quarter 2, 2025 o Building #1 – Quarter 3, 2025 o Building #3 – Quarter 3, 2025 o Ramp – Quarter 3, 2025 o Building #2 – Quarter 1, 2026 anticipated; affordable housing contract states that it must begin within two years (prior to mid-2027) o Completion of construction, all phases – Quarter 1, 2027 • The cost of the land ($3.39 million) is the appraised market value to be repaid through a purchase price note. The redeveloper’s lenders are requiring that this note remain subordinate to their senior construction loan. • TIF note amounts are adjusted to account for the present value of the notes impacted by current interest rates. The present value of the notes is lower than what was anticipated at the time of the Feb. 12, 2024 city council study session. • Spending plan pooled TIF is increased by approximately $156,000, to $1,710,000, with the $156,000 resulting from interest on $1,554,000 of pooled TIF. • Conditional $5.2 million in-lieu fee for affordable housing, payable only if the 82-unit affordable project does not begin construction in a timely manner, to meet the requirements of the Inclusionary Housing ordinance. The fee would only come due if construction has not commenced on the affordable portion within two years following closing. Amendments to the purchase agreement, including repayment terms for the purchase price of the land: The redeveloper requests amendments to the purchase agreement as follows: An appraisal of the EDA’s property provided a value of $3.39 million. Based on the appraisal, the EDA agreed to sell the property for the market rate components to Sherman Associates for $3 million and the property for the affordable component for $1 and transfer $390,000 in pooled tax increment to the development fund to compensate itself for the remaining $390,000 land value reflected in the lender’s appraisal. It is proposed that the terms of the purchase agreement be amended as follows: • The purchase agreement is extended until July 31, 2025. • Sherman Associates will now pay the full $3.39 million appraised value of the land; timing of the payments will change. • The full $3.39 million will be repaid through a purchase price note. o Sherman Associates would pay $1 for the affordable parcel at closing and would pay a minimum of $2 million and up to the full $3.39 million at the time that they refinance the construction loan, based on available refinancing proceeds. o Any remaining balance after refinancing would convert to a payable, amortizing loan fully repayable by Sherman Associates. Although this structure gives Sherman Associates an extended repayment timeline, it also reduces the EDA's financial contribution to the redevelopment by $390,000, not including any accrued interest. In terms of supporting redevelopment of the parcel, this structure lowers the Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 13 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 amount Sherman Associates needs to finance as part of the construction loans and contributes to the financial feasibility of the redevelopment. Summary: As previously discussed with the EDA and the city council over the years, the proposed Beltline Station development has a verified financial gap and is not financially feasible but for the provision of financial assistance from the EDA and city. To offset this gap, and to enable the $147.5 million development to proceed, it is proposed that the EDA and the city council consider providing $15.83 million in financial assistance as outlined above. Providing the recommended financial assistance to the proposed Beltline Station’s market rate and mixed-use components provides numerous public benefits and makes it possible to: • Provide a compact, mixed-use, transit-oriented, mixed-income development for the City of St. Louis Park, including a vertical structured parking ramp instead of a large surface parking lot at a key intersection. • Create a development that furthers all five of the city’s strategic priorities, as noted above. • Improve and install new city infrastructure including storm sewer, sanity sewer, water lines and a street connection on Monterey Avenue. • Further diversify the city’s housing stock with new multi-family apartment offerings consistent with the city’s strategic priorities and Comprehensive Plan. • Enhance multi-modal transportation opportunities for residents, including trail connections, sidewalks and light rail. • Provide the community with 82 additional affordable housing units for 40 years under the city’s inclusionary housing policy, including 39 units at 60% AMI, 23 units at 50% AMI, and 20 deeply affordable units at 30% AMI. The building also provides 44 two- bedroom units and 22 three-bedroom units to help the city provide opportunities for affordable family housing. • Further the city’s sustainability goals by developing the affordable building to Enterprise Green Community standards and the market rate buildings to SB2030/B3 standards, by providing a rooftop solar array, and contributing to the community’s overall solar energy usage by supporting Sherman Associates 6.75 megawatts solar farms. • Facilitate $147.5 million of new investment further invigorating the surrounding neighborhood, providing additional retail and including a $28 million investment in affordable housing. • Construct quality buildings (e.g., sound architectural design, quality construction and materials) with underground parking, public features and sustainable elements. • Redevelop underutilized and environmentally impacted property with substandard soils. • Bring current tax-exempt properties to optimal market value and add to the city’s tax capacity. Sherman Associates’ proposed Beltline Station redevelopment meets the minimum and desired qualifications of, and the city’s objectives for the provision of tax increment financing as specified in the city’s TIF policy. The proposed amount of TIF assistance is consistent with other developments the EDA has previously assisted. The redevelopment also meets the requirements of the AHTF Policy for utilization of those funds. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 14 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Recommendation: Staff and EDA consultants support approval of the proposed amendments to the contracts for private redevelopment with affiliates of Sherman Associates as outlined above to advance the pending Beltline Station redevelopment. The attached resolutions of approval allow for modifications to various contracts that do not alter the substance of the transaction without bringing the contract back to the EDA for amendment. Next steps: Upon execution of amended contracts, the redeveloper intends to close on the EDA land, close on its project financing and commence construction. Previous actions are detailed earlier in this report. Current actions Governing body Date EDA considers resolution approving an amended and restated market rate housing and mixed-use redevelopment contract, the “mixed-use contract” with Beltline Mixed-use LLC, an amended purchase agreement and other related documents. EDA May 19, 2025 EDA considers resolution approving an amended and restated affordable housing redevelopment contract, the “affordable contract” and other related documents. EDA May 19, 2025 EDA considers resolution approving a right of entry for minimal site preparation. EDA May 19, 2025 City council considers a resolution approving proposed Business Subsidy and a proposed affordable housing redevelopment agreement with an affiliate of Sherman Associates. City council May 19, 2025 Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 15 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Following the meeting on May 19, 2025, the following milestones are anticipated: Future actions Governing body Date Consideration of approval of the planning and development contract at an upcoming EDA meeting. EDA June 2025 Financial closing on building #1 (mixed-use housing and neighborhood commercial), building #3 (market rate housing), and the parking ramp by July 31, 2025; with closing on building #2 financing anticipated prior to Q1 2026. EDA/City council July 31, 2025 or sooner EDA sale of the land to the redeveloper, following closing on various financing components noted above. EDA July 31, 2025 or sooner Commencement of construction as follows: • Grading on the full site – quarter 2, 2025 • Building 1 – quarter 3, 2025 • Building 3 – quarter 3, 2025 • Ramp – quarter 3, 2025 • Building 2 – anticipated quarter 1, 2026 City council Q2 2025 – Q1 2026 Completion of construction, all phases – quarter 1, 2027 EDA/City council Q1 2027 Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 16 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 EDA Resolution No. 25-_____________ Conveying property; approving amended and restated contract for private development with Beltline Mixed Use LLC including a business subsidy agreement, authorizing the issuance of tax increment revenue notes, approving related documents, and taking other actions in connection therewith Be it resolved by the board of commissioners (the “board”) of the St. Louis Park Economic Development Authority (the “authority”) as follows: Section 1. Recitals. 1.01. The city council of the City of St. Louis Park, Minnesota (the “city’) and the authority have heretofore approved the establishment of the Beltline Station Tax Increment Financing District No. 1 (the “TIF district no. 1”), a housing district, and Beltline Station Tax Increment Financing District No. 2 (the “TIF district no. 2” and together with TIF district no. 1, the “TIF districts”), a renewal and renovation district, within Redevelopment Project No. 1 (the “project”) and have adopted tax increment financing plans for the purpose of financing certain improvements within the project. 1.02. Minnesota statutes, section 469.176, subdivision 4n (“subd. 4n”) authorizes the authority to spend available tax increment from any existing tax increment financing district (“available TIF”), notwithstanding any other law to the contrary, to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the following conditions exist: (a) Such assistance will create or retain jobs in the state of Minnesota (the “state”), including construction jobs; (b) Construction commences before December 31, 2025; (c) The construction would not have commenced before December 31, 2025 without the assistance; (d) available TIF under the spending plan is spent by December 31, 2025; and (e) The city council (the “council”) of the city approves a written spending plan (after a duly noticed public hearing) that specifically authorizes the authority to take such actions. 1.03. The authority and the council have heretofore adopted a spending plan (the “spending plan”) pursuant to Minnesota statutes, section 469.176, subdivision subd. 4n, which authorizes the use of available TIF to provide improvements, loans or assistance for private development that satisfies the criteria listed above and as further described in the spending plan Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 17 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 (“qualified projects,” singularly, a “qualified project”). The spending plan expressly authorizes available TIF assistance to qualified projects including to the development (as hereinafter defined). 1.04. The authority, and Beltline Development LLC, a Minnesota limited liability company (“beltline development”), or an entity related thereto or affiliated therewith (collectively, the “Beltline development entities”), each own portions of certain property within the project (the “development property”), which has been the subject of various prior agreements between the parties for purposes of constructing a mixed-use (market rate and affordable multi-family residential and commercial) development and related parking, including a parking ramp serving in part as a park & ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station on certain property in the project (the “development”). 1.05. To facilitate the development of the development property, the authority and Beltline Mixed Use LLC, a Delaware limited liability company and an affiliate of Beltline development (the “developer”), entered into a contract for private development, dated July 24, 2023 as amended by the first amendment to contract for private development, between the authority and the developer, dated October 2, 2023 (collectively, the “original agreement”) which provides for the construction by the developer on the development property of (a) a building to include approximately 146 units of market rate housing with approximately 96 underground parking spaces an affordable rental housing facility (the “market-rate housing component”); (b) a building to include approximately 152 units of market rate rental housing and approximately 18,200 rentable square feet of commercial space (the “mixed-use component”); and (c) an approximately 571-space parking ramp with approximately 1,850 square feet of commercial space (including approximately 208 spaces to serve the mixed-use component, approximately 95 spaces to serve the market-rate housing component, and approximately 268 spaces to be dedicated as public transit park & ride spaces) and driver restroom (the “parking ramp component,” and collectively with the market-rate housing component and the mixed-use component, the “minimum improvements”). Due to changing market conditions and delays, the developer has requested additional changes to the original agreement and to that end, the parties have prepared an amended and restated contract for private development (the “agreement”). 1.06. Due to the costs of developing the minimum improvements, the developer has requested certain financial assistance from the authority. To make the construction of the minimum improvements economically feasible, the agreement provides that the authority will issue separate tax increment revenue notes (individually, the “market-rate housing TIF note” and the “mixed-use component TIF note,” and together, the “TIF notes”) to the Beltline development entities. In addition, the authority will provide a grant in the maximum amount of $1,710,109 from available TIF (the “authority TIF grant”) for the construction of the mixed-use component as allowed under the spending plan. 1.07. As part of the development, the authority proposes to convey the property legally described in Exhibit A attached hereto (the “authority parcels”) to the Beltline development entities, and the Beltline development entities intend to acquire the authority parcels for purposes of constructing the development. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 18 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 1.08. To facilitate the development, the authority and Beltline development entered into a purchase agreement, dated July 7, 2022, as amended four times (as heretofore amended, the “original purchase agreement”), which provides for the conveyance of the authority parcels to the Beltline development entities, provided that following closing on the conveyance and replatting of the development property certain rights of way will be owned by the city. 1.09. Due to changes in market conditions since the execution of the original purchase agreement, Beltline development has requested changes to how the purchase price is paid to the authority, changes to the conditions for closing and changes to certain deadlines in the documents. As such, the authority and Beltline development have negotiated an amended and restated purchase agreement (the “purchase agreement”). The authority proposes to sell the authority property at the price of $3,390,001.00 of which $1.00 will be paid for the property upon which an affordable housing development will be constructed (the “affordable parcel”) and $3,390,000 will be paid for the property upon which the mixed-use and market-rate housing components (the “mixed-use property”) will be constructed. The costs of the mixed- use property will be paid with the purchase price note (the “purchase price note”) in the amount of $3,390,000 which will be repaid by the developer. The purchase price note will be secured by a mortgage on the mixed-use property (the “purchase price mortgage”) 1.10. As required by Minnesota statutes, section 469.105, as amended, on the date hereof, the board conducted a duly noticed public hearing regarding the conveyance of the authority parcels to beltline development and the beltline development entities pursuant to the purchase agreement, at which all interested parties were given an opportunity to be heard, and hereby finds that the execution of the purchase agreement and performance of the authority’s obligations under the purchase agreement, including the conveyance of the authority parcels to Beltline development and the Beltline development entities, are in the best interest of the city and its residents. 1.11. The mixed-use component TIF note, the authority TIF grant, and the purchase price note allocable on a pro rata basis to the commercial component of the mixed-use component, constitute a business subsidy (the “business subsidy”) pursuant to Minnesota statutes, sections 116J.993 to 116J.995, as amended (the “business subsidy act”). In connection therewith, the authority and the developer will execute the agreement in accordance with the proposed terms on file with the authority, which constitutes a “business subsidy agreement” as required under the business subsidy act. 1.12. As required by section 116J.994, subdivision 5 of the business subsidy act, on the date hereof, the board conducted a duly noticed public hearing on the proposed business subsidy to be provided to the developer and setting the wage and job goals at zero in accordance with the business subsidy act. The views of all interested persons were heard and considered at the public hearing. 1.13. The developer expects to receive one or more loans (the “NBC loan”) from National Bank of Commerce, a national banking association (“National Bank of Commerce”), to provide financing for the minimum improvements. In connection with the NBC loan, national bank of commerce will require that the developer assign its interests in the TIF notes to National Bank of Commerce. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 19 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 1.14. The developer also expects to receive one or more loans (the “Bridgewater loan”) from Bridgewater Bank, a Minnesota banking corporation (“Bridgewater Bank”), to provide financing for the market-rate housing component and the mixed-use component. As a condition to providing the Bridgewater loan, Bridgewater Bank will require that the authority subordinate its rights, interests, and liens in the market-rate housing component and the mixed-use component and the property on which such components will be constructed arising under or pursuant to the agreement, the purchase price mortgage, the purchase price note, and the purchase agreement to the interests and rights of Bridgewater Bank under the documents executed in connection with the Bridgewater loan. 1.15. The Beltline developer previously acquired a portion of the property for the construction of the parking ramp (the “Vision Bank parcel”) from a third party, and the authority financed a portion of the acquisition cost of the Vision Bank parcel pursuant to a loan agreement between the authority and developer, as subsequently amended six times (the “loan agreement”), pursuant to which the authority loaned $3,100,000 (the “EDA Vision Bank loan”) to the Beltline developer to finance such acquisition as evidenced by a promissory note, as subsequently amended (the “Vision Bank note”) and secured by a mortgage, as subsequently amended (the “Vision Bank mortgage”). The authority and beltline developer have negotiated and now propose to execute a seventh amendment to the loan agreement, a seventh amended promissory note, and a seventh amended mortgage (together, the “loan amendment documents”) to further extend the deadline for the repayment of the EDA Vision Bank loan. 1.16. The agreement requires that the developer comply with certain construction timelines for the construction of approximately 82 units of affordable multifamily rental housing together with approximately 59 underground parking spaces (the “affordable minimum improvements”) on a portion of the development property or pay a fee (the “affordable housing fee”) to the authority as set forth in the agreement. The payment of the affordable housing fee will be secured by a letter of credit and a guaranty from George Sherman and Sherman Development Holdings (collectively, the “security”) delivered at closing on the development property. 1.16. The board has reviewed the loan amendment documents, the purchase agreement, and the agreement and finds that the execution thereof and performance of the authority’s obligations thereunder are in the best interest of the city and its residents. Section 2. Findings for authority TIF grant and business subsidy. 2.01. The board hereby finds that the mixed-use component is a qualified project because: (a) the mixed-use component will create and retain jobs in the state; (b) construction on the mixed-use component will commence in the fall of 2025 and requires financial assistance to make the project financially feasible. The developer has represented that the mixed-use component would not be economically feasible within the reasonably foreseeable future and would not have commenced Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 20 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 construction before December 31, 2025 if the developer does not receive the authority TIF grant; (c) the construction of the mixed-use component would not have commenced before December 31, 2025 without the authority TIF grant and there is a significant need for construction of mixed-use component to commence prior to such date so that the mixed-use component is completed prior to the commencement of service by light rail transit and to provide additional housing options in the city of which there is a significant need; and (d) the available TIF for the mixed-use component will be spent under the spending plan by December 31, 2025. 2.02 The board further finds that the authority TIF grant meets the spending plan goal of providing financial assistance to advance construction of the development is authorized pursuant to the spending plan and Minnesota statutes, section 469.176, subd. 4n. 2.03. After a public hearing held by the board on the date hereof, the board hereby determines that the public purposes of the proposed mixed-use component and the business subsidy provided thereto include creating a mixed-use transit oriented development, helping spur development along the light rail, eliminating blight and blighting factors in the city, increasing the tax base in the city, putting underutilized property to productive use, and stimulating construction and construction jobs. The authority hereby determines that the creation or retention of jobs is not a goal of the proposed development for purposes of the business subsidy act. Therefore, the wage and job goals may be set at zero in the agreement in accordance with the business subsidy act. Section 3. Approval of documents and conveyance of authority parcels. 3.01. The board approves the purchase agreement including the delivery of the purchase price note for a portion of the acquisition costs in substantially the form presented to the board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the purchase agreement including without limitation quit claim deeds and any documents required by the title company relating to the conveyance of the authority parcels (the “conveyance documents”). The board hereby approves the conveyance of the authority parcels to the Beltline developer entities, or an entity affiliated therewith, in accordance with the terms of the purchase agreement and the agreement including the delivery of the purchase price note and the purchase price mortgage to secure the purchase price note. Following closing on the conveyance and replatting of the development property, certain rights of way will be owned by the city. 3.02. The board hereby approves the agreement, including the business subsidy agreement and the loan document amendments in substantially the forms presented to the board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the agreement, including without limitation the assessment agreements (as defined in the agreement) Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 21 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 and a release of the Vision Bank mortgage relating to the Vision Bank EDA loan (collectively, the “assistance documents”). In addition, forms of the following documents related to the NBC loan and the Bridgewater loan are on file with the authority (the “additional lender documents,” and collectively with the conveyance documents and the assistance documents, the “development documents”): (i) an assignment of tax increment financing and subordination agreement between the developer, National Bank of Commerce, and the authority; and (ii) a subordination agreement (development agreement) between the authority and Bridgewater Bank. 3.03. The board hereby authorizes the president and executive director, in their discretion and at such time, if any, as they may deem appropriate, to execute the development documents on behalf of the authority, and to carry out, on behalf of the authority, the authority’s obligations thereunder when all conditions precedent thereto have been satisfied provided that the executive director may execute the closing statement prepared by the title company. The development documents shall be in substantially the forms on file with the authority and the approval hereby given to the development documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the authority. City staff are hereby delegated the authority to approve the final forms of the security for the affordable housing fee including a letter of credit and guarantees. The execution of any instrument by the appropriate officers of the authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the development documents shall not be effective until the date of execution thereof as provided herein. 3.04. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the board by any duly designated acting official, or by such other officer or officers of the board as, in the opinion of the city attorney, may act in their behalf. Upon execution and delivery of the development documents, the officers and employees of the board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the board to implement the development documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. In addition, the board hereby delegates to the executive director the authority to undertake all actions necessary to enter into a partnership with the beltline development entities for the construction of the public transit parking tract as contemplated by the agreement and the cooperative construction agreement including but not limited to approving changes to project scope of work, contract bid documents, construction documents, change orders, or construction change directive under the parking ramp construction contract that may impact the public transit parking tract. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 22 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Section 4 Issuance, sale, and terms of the TIF Notes; pooled TIF; forgiveness of EDA Vision Bank loan. 4.01. The authority hereby authorizes the president and executive director to issue the market-rate housing component TIF note and the mixed-use component TIF note in accordance with the agreement. At the time of consideration of this resolution, the authority, based on advice from its municipal advisor, estimates that the market-rate housing component TIF note will be issued in the estimated maximum principal amount of $4,905,000 and that the mixed-use component TIF note will be issued in the estimated maximum principal amount of $5,632,000 subject to final adjustment by the executive director accordance with the terms of the agreement. All terms in this resolution have the meaning provided in the agreement unless the context requires otherwise. 4.02. The market-rate housing component TIF note shall be issued to the developer in accordance with the agreement. The market-rate housing component TIF note shall be dated the date of delivery thereof and shall bear interest at the rate set forth therein subject to adjustment in accordance with the agreement, from the date of issue to the earlier of maturity or prepayment. The market-rate housing component TIF note is secured by market-rate housing component available tax increment, as further described in the form of the market-rate housing component TIF note. The authority hereby delegates to the executive director the authority to determine the date, final amount, and final interest rate for the market-rate housing component TIF note is to be delivered, in accordance with the agreement. 4.03. The mixed-use housing component TIF note shall be issued to the developer in accordance with the agreement. The mixed-use housing component TIF note shall be dated the date of delivery thereof and shall bear interest at the rate set forth therein subject to adjustment in accordance with the agreement, from the date of issue to the earlier of maturity or prepayment. The mixed-use housing component TIF note is secured by mixed-use housing component available tax increment, as further described in the form of the mixed-use housing component TIF note. The authority hereby delegates to the executive director the authority to determine the date, final amount, and final interest rate for the mixed-use housing component TIF note is to be delivered, in accordance with the agreement. 4.04. The authority hereby appoints the finance director of the city to perform the functions of registrar, transfer agent and paying agent for the TIF notes (the “registrar”). 4.06. The authority and the city have previously established various tax increment financing districts including Park Center Tax Increment Financing District, the Zarthan/16th Avenue Tax Increment Financing District, Mill city Tax Increment Financing District, Park Commons Tax Increment Financing District, Wolfe Lake Tax Increment Financing District, Aquila Commons – Tax Increment Financing District, Elmwood Village Tax Increment Financing District, Highway 7 Corporate Center Tax Increment Financing District, West End Tax Increment Financing District, Ellipse on Excelsior, Tax Increment Financing District, Hardcoat Tax Increment Financing District, Eliot Park Tax Increment Financing District, The Shoreham Tax Increment Financing District, 4900 Excelsior Tax Increment Financing District, Elmwood Apartments Tax Increment Financing District, Wooddale Station Tax Increment Financing District, Bridgewater Bank Tax Increment Financing District, Parkway Residences Tax Increment Financing District, Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 23 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Texa Tonka Tax Increment Financing District, Beltline Residences Tax Increment Financing District, Rise on 7 – Housing Tax Increment Financing District, 9920 Wayzata Blvd Tax Increment Financing District, Wooddale Ave. Apartments Tax Increment Financing District (collectively, the “pooled TIF districts”) and adopted tax increment financing plans therefore. The authority may collect any available pooled tax increment from one or more of the pooled TIF districts as designated by the executive director for the use outlined below (the “pooled TIF”). 4.06. The authority hereby authorizes the forgiveness of the outstanding balance of principal of and interest on the EDA Vision Bank loan and the authority authorizes the use of pooled TIF to repay the outstanding balance in accordance with an interfund loan resolution adopted on April 1, 2019, as amended on the date hereof. In addition, the authority is authorized to use available tax increment on a subordinate basis to the TIF notes to repay the outstanding balance of the EDA Vision Bank loan. Section 5. Forms of TIF notes. The TIF notes shall be in substantially the forms attached as an exhibit to the agreement, with the blanks to be properly filled in, interest rates and the principal amount adjusted as of the date of issue. Section 6. Terms, execution and delivery of TIF notes. 6.01. Denomination, payment. The TIF notes shall each be issued as a single typewritten note numbered R-1. The TIF notes shall be issuable only in fully registered form. Principal of and interest on the TIF notes shall be payable by check or draft issued by the registrar described herein. 6.02. Dates; interest payment dates. Principal of and interest on the TIF notes shall be payable in accordance with their terms and the agreement. 6.03. Registration. The effect of registration and the rights and duties of the authority and the registrar with respect thereto shall be as follows: (a) Register. The registrar shall keep at its office a bond register in which the registrar shall provide for the registration of ownership of the TIF notes and the registration of transfers and exchanges of the TIF notes. (b) Transfer of TIF notes. The TIF notes may only be transferred as set forth in the agreement and forms of the TIF notes. (c) Cancellation. The TIF note surrendered upon any transfer shall be promptly cancelled by the registrar and thereafter disposed of as directed by the authority. (d) Improper or unauthorized transfer. When either of the TIF notes are presented to the registrar for transfer, the registrar may refuse to transfer the same until it is satisfied that the endorsement on the TIF notes or separate instrument of transfer is legally authorized. The registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 24 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 (e) Persons deemed owners. The authority and the registrar may treat the person in whose name the TIF notes are at any time registered in the bond register as the absolute owner of such TIF note, whether the applicable TIF note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the applicable TIF note and for all other purposes, and all such payments so made to any such registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability of the authority upon the applicable TIF note to the extent of the sum or sums so paid. (f) Taxes, fees and charges. For every transfer or exchange of either of the TIF notes, the registrar may impose a charge upon the owner thereof sufficient to reimburse the registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, lost, stolen or destroyed TIF note. In case either of the TIF notes shall become mutilated or be lost, stolen, or destroyed, the registrar shall deliver a new TIF note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated TIF note or in lieu of and in substitution for the applicable TIF note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the registrar in connection therewith; and, in the case the TIF note lost, stolen, or destroyed, upon filing with the registrar of evidence satisfactory to it that the respective TIF note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the authority and the registrar shall be named as obligees. The TIF note so surrendered to the registrar shall be cancelled by it and evidence of such cancellation shall be given to the authority. If the mutilated, lost, stolen, or destroyed respective TIF note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF note prior to payment. 6.04. Preparation and delivery. The TIF notes shall be prepared under the direction of the executive director and shall be executed on behalf of the authority by the signatures of its president and executive director. In case any officer whose signature shall appear on either of the TIF notes shall cease to be such officer before the delivery of the applicable TIF note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the applicable TIF note has been so executed, it shall be delivered by the executive director to the developer thereof in accordance with the agreement. Section 7. Security provisions for the TIF notes; use of available tax increment. 7.01. Pledge. The authority hereby pledges to the payment of the principal of and interest on the market-rate housing component TIF note all market-rate housing component available tax increment as defined in the market-rate housing component TIF note. Market-rate housing component available tax increment shall be applied to payment of the principal of and interest on the market-rate housing component TIF note in accordance with the terms of the form of the market-rate housing component TIF note. The authority hereby pledges to the payment of the principal of and interest on the mixed-use component TIF note all mixed-use component available tax increment as defined in the mixed-use component TIF note. Mixed-use component available tax increment shall be applied to payment of the principal of and interest on the mixed- use component TIF note in accordance with the terms of the form of the mixed-use component Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 25 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 TIF note. In addition, as set forth in the agreement, the authority is authorized to use available tax increment on a subordinate basis to repay the purchase price note and the outstanding principal of and interest on the EDA Vision Bank loan. 7.02. Bond Funds. Until the date the market-rate housing component TIF note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the authority shall maintain a separate and special “market-rate housing bond fund” to be used for no purpose other than the payment of the principal of and interest on the market-rate housing component TIF note. The authority irrevocably agrees to appropriate to the market-rate housing bond fund on or before each payment date the market-rate housing component available tax increment in an amount equal to the payment then due, or the actual market-rate housing component available tax increment, whichever is less. Any market-rate housing component available tax increment remaining in the market-rate housing bond fund shall be transferred to the authority’s account for the TIF district upon the termination of the market-rate housing component TIF note in accordance with its terms. Until the date the mixed-use component TIF note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the authority shall maintain a separate and special “mixed-use bond fund” to be used for no purpose other than the payment of the principal of and interest on the mixed-use component TIF note. The authority irrevocably agrees to appropriate to the mixed-use bond fund on or before each payment date the mixed-use component available tax increment in an amount equal to the Payment then due, or the actual mixed-use component available tax increment, whichever is less. Any mixed-use component available tax increment remaining in the mixed-use bond fund shall be transferred to the authority’s account for the TIF district upon the termination of the mixed-use component TIF note in accordance with its terms. Section 8. Certification of Proceedings. The officers of the authority are hereby authorized and directed to prepare and furnish to the developer of the TIF notes certified copies of all proceedings and records of the authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality of the TIF notes as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the authority as to the facts recited therein. Section 9. Effective Date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the Economic Development Authority May 19, 2025: Karen Barton, executive director Nadia Mohamed, president Attest: Melissa Kennedy, secretary Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 26 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Exhibit A Description of authority parcels The authority parcels consist of the portion of a 6.6-acre site at the southeast corner of CSAH 25 and Beltline Boulevard in the city. authority parcels are legally described as follows, a portion of which will be replatted as Lots 1, 2,3 and part of Lot 4, Block 1, Beltline Station, according to the recorded plat thereof, Hennepin County, Minnesota: Lots 12, 13, 14, 15, and 16, Block 2; That part of Lots 10, 11, 17 and 18, Block 2, lying South of the Southerly right-of-way line of state Trunk Highway No. 7; All of the vacated alley in Block 2 lying South of the Southerly right-of-way line of state Trunk Highway No. 7; That part of Natchez Avenue vacated, lying east of the West line of the Northwest Quarter of the Northeast Quarter of Section 6, Township 28, Range 24, North of the South line of said Northwest Quarter of the Northeast Quarter, and South of the Southerly right-of-way line of state Trunk Highway No. 7; That part of West 32nd Street, vacated, lying between the extensions across it of the East line of Lot 14 and the West line of Lot 15, Block 2; All in "Oakenwald Addition St. Louis Park," Hennepin County, Minnesota; That part of vacated Monterey Avenue (formerly Oakenwald Avenue as shown on the plat of "OAKENWALD ADDITION ST. LOUIS PARK," lying North of the South line of the Northwest Quarter of the Northeast Quarter, Section 6, Township 28, Range 24 and south of the Easterly extension of the North line of Lot 10, Block 2, "OAKENWALD ADDITION ST. LOUIS PARK". AND That part of the Southwest Quarter of the Northeast Quarter, Section 6, Township 28, Range 24, Hennepin County, Minnesota described as beginning at the Northwest corner of said Southwest Quarter of the Northeast Quarter; thence South along the West line thereof 288.7 feet; thence East to a point on the Northerly right-of-way line of the Minneapolis and St. Louis Railway Company, distant 46 feet from the intersection of said right-of-way line with the West line of said Southwest Quarter of the Northeast Quarter as measured along said right-of-way line; thence Northeasterly along said Northerly right-of-way line to its intersection with the extension South of the East line of Monterey Avenue; thence North along the extension of the East line of Monterey Avenue to the North line of said Southwest Quarter of the Northeast Quarter; thence West along said North line to the point of beginning. Lot 17, Block 1, “Lewiston Park, Hennepin Co. Minn.” Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 27 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 And Lot 1, 2, 3, 4, 13, 14, 15 and 16, Block 1, “Lewiston Park, Hennepin Co. Minn.”, except that part of said Lots described as follows: Commencing at the Southeast corner of said Lot 4; thence Westerly along the South line of said Lot 4, a distance of 6.00 feet to the point of beginning of the tract of land to be described; thence North 00 degrees 19 minutes 53 seconds East, assumed bearing, parallel with the East line of Lots 5 and 6, said Block 1, a distance of 114.27 feet; thence Northwesterly along a tangential curve to the left having a radius of 15.00 feet and a central angle of 61 degrees 46 minutes 23 seconds, a distance of 16.17 feet; thence North 61 degrees 26 minutes 30 seconds West, tangent to said curve, a distance of 40.60 feet; thence Westerly along a tangential curve to the left, having a radius of 24.00 feet and a central angle of 76 degrees 35 minutes 00 seconds, a distance of 32.08 feet; thence Southwesterly along a reverse curve to the right, having a radius of 361.58 feet and a central angle of 26 degrees 53 minutes 32 seconds, a distance 169.71 feet; thence South 43 degrees 00 minutes 19 seconds, West, not tangent to said curve, a distance of 71.07 feet to the intersection with a line distant 46.00 feet Easterly of as measured at a right angle to and parallel with hereinafter described “Line A”; thence Southerly along said parallel line, a distance of 26.00 feet to the South line of said Lot 13; thence Easterly along said South line and the easterly extension thereof, a distance of 128.10 feet to the centerline of alley; thence Northerly along the centerline of said Alley, a distance of 32.65 feet to the intersection with the westerly extension of the South line of said Lot 4; thence Easterly along said Westerly extension and along the South line of said Lot 4, a distance of 130.61 feet to the point of beginning. Said “Line A” is described as follows: Commencing at the most Southerly corner of Lot 1, Block 1 BELT LINE INDUSTRIAL PARK 2ND ADDITION, thence South 59 degrees 15 minutes 24 seconds East of an assumed bearing along the Southeasterly extension of the Southwesterly line of said Lot 1 a distance of 40.00 feet to the point of beginning of said line; thence North 30 degrees 44 minutes 36 seconds East 112.38 feet; thence Northerly 768.57 feet along a tangential curve concave to the West having a radius of 785.30 feet and a central angle of 56 degrees 04 minutes 30 seconds; thence North 25 degrees 19 minutes 54 seconds West, tangent to last described curve 180.04 feet; thence Northerly 589.17 feet along a tangential curve concave to the East having a radius of 1268.10 feet a central angle of 26 degrees 37 minutes 12 seconds, said line there terminating. AND That part of West 32nd Street, vacated, lying southerly of the centerline thereof, westerly of the northerly extension of the east line of Lot 1, Block 1, Lewiston Park, and easterly of a line described as follows: Commencing at the north quarter corner of Section 6, Township 28, Range 24; thence South 00 degrees 26 minutes 06 seconds West, assumed bearing along the north-south quarter line of said Section 6, a distance of 1092.89 feet; thence South 73 degrees 14 minutes 47 seconds West 10.28 feet; thence southwesterly 220.70 feet along a non-tangential curve concave to the northwest having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes 46 seconds, Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 28 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 and a chord bearing of South 70 degrees 30 minutes 32 seconds West; thence South 67 degrees 02 minutes 58 seconds West, not tangent to said curve, 65.29 feet to the point of beginning of the line to be described; thence South 00 degrees 20 minutes 22 seconds East 298.91 feet, and said line there terminating. That part of Natchez Avenue, vacated, lying southerly of the centerline of West 32nd Street, northerly of the south line of Lot 4, Block 1, Lewiston Park, extended easterly, and west of the West line of the Southwest Quarter of the Northeast Quarter of Section 6, Township 28, Range 24. AND That part of the vacated Alley in Block 1, Lewiston Park, lying southerly of West 32nd Street and northerly of Lot 1, Block 1, BROOKS MCCRACKEN INDUSTRIAL PARK. Torrens Property - Certificate Title No. 697371 Lots 12, 13, 14, 15 and 16, Block 2, “Mazey & Langan’s Addition To St. Louis Park,” Hennepin County, Minnesota. That part of Natchez Avenue, vacated, as dedicated in the plat “Mazey & Langan’s Addition To St. Louis Park”, lying northerly of the centerline of West 32nd Street, southerly of a line described as follows: Commencing at the north quarter corner of Section 6, Township 28, Range 24; thence South 00 degrees 26 minutes 06 seconds West, assumed bearing along the north- south quarter line of said Section 6, a distance of 1092.89 feet to the point of beginning of the line to be described; thence South 73 degrees 14 minutes 47 seconds West 10.28 feet; thence southwesterly 220.70 feet along a non-tangential curve concave to the northwest, having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes 46 seconds and a chord bearing of South 70 degrees 30 minutes 32 seconds West, and said line there terminating; and west of the West line of the Northwest Quarter of the Northeast Quarter of Section 6, Township 28, Range 24. That part of West 32nd Street, vacated, as dedicated in the plat “Mazey & Langan’s Addition To St. Louis Park”, that lies westerly of the southerly extension of the east line of Lot 14 in said plat, and easterly of the following described line: Commencing at the north quarter corner of Section 6, Township 28, Range 24; thence South 00 degrees 26 minutes 06 seconds West, assumed bearing along the north-south quarter line of said Section 6, a distance of 1092.89 feet; thence South 73 degrees 14 minutes 47 seconds West 10.28 feet; thence southwesterly 220.70 feet along a non-tangential curve concave to the northwest, having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes 46 seconds and a chord bearing of South 70 degrees 30 minutes 32 seconds West; thence South 67 degrees 02 minutes 58 seconds West, not tangent to said curve, 65.29 feet to the point of beginning of the line to be described; thence South 00 degrees 20 minutes 22 seconds East 298.91 feet, and said line there terminating. That part of the vacated alley in Block 2 of “Mazey & Langan’s Addition To St. Louis Park”, lying northerly of West 32nd Street and Southerly of a line described as follows: Commencing at the Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 29 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 north quarter corner of Section 6, Township 28, Range 24; thence South 00 degrees 26 minutes 06 seconds West, assumed bearing along the north-south quarter line of said Section 6, a distance of 1092.89 feet to the point of beginning of the line to be described; thence South 73 degrees 14 minutes 47 seconds West 10.28 feet; thence southwesterly 220.70 feet along a non- tangential curve concave to the northwest, having a radius of 5802.14 feet, a central angle of 02 degrees 10 minutes 46 seconds and a chord bearing of South 70 degrees 30 minutes 32 seconds West, and said line there terminating. Torrens Property – Certificate of Possessory Title No. 1551814. The east 37 feet of Lot 4, Block 1, DALQUIST INDUSTRIAL PARK, according to the recorded plat thereof, Hennepin County, Minnesota, as measured at a right angle to and parallel with the East line of said Lot 4. Torrens Property – Certificate of Possessory Title No. 1546511. Lots 9 and 19, Block 2; Those parts of Lots 10, 11, 17, 18, Block 2, lying north of the southerly right-of-way line of state Trunk Highway No. 7; That part of Natchez Avenue vacated, lying east of the West line of the Northwest Quarter of the Northeast Quarter of Section 6, Township 28, Range 24, north of the southerly right-of-way line of state Trunk Highway No. 7, and southerly of a line hereinafter referred to as Line 1; That part of the vacated alley in Block 2 lying north of the southerly right-of-way line of state Trunk Highway No. 7, and southerly of the aforementioned Line 1. All in “OAKENWALD ADDITION ST. LOUIS PARK”. Line 1 is described as commencing at the north quarter corner of Section 6, Township 28, Range 24; thence South 00 degrees 26 minutes 06 seconds West, assumed bearing along the north- south quarter line of said Section 6, a distance of 1092.89 feet to the point of beginning; thence North 73 degrees 14 minutes 47 seconds East 51.97 feet; thence northeasterly 174.11 feet along a non-tangential curve concave to the northwest, having a radius of 5790.08 feet, a central angle of 01 degrees 43 minutes 22 seconds, and a chord bearing of North 67 degrees 56 minutes 18 seconds East, and said line there terminating. Torrens Property – Certificate of Possessory Title No. 1553644. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 30 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 EDA Resolution No. 25-_____________ Approving amended and restated contract for private development, awarding the sale of, and providing the form, terms, covenants and directions for the issuance of a tax increment revenue note to Beltline Apartments Limited Partnership, and taking other actions in connection therewith Be it resolved by the board of commissioners (the “board”) of the St. Louis Park Economic Development Authority (the “authority”) as follows: Section 1. Recitals. 1.01. The city council of the City of St. Louis Park, Minnesota (the “city’) and the authority have heretofore approved the establishment of the Beltline Station Tax Increment Financing District No. 1 (the “TIF district no. 1”), a housing district, and Beltline Station Tax Increment Financing District No. 2 (the “TIF district no. 2” and together with TIF district no. 1, the “TIF districts”), a renewal and renovation district, within Redevelopment Project No. 1 (the “project”) and have adopted tax increment financing plans for the purpose of financing certain improvements within the project. 1.02. The city has heretofore created an Affordable Housing Trust Fund, which is funded in part with pooled tax increment derived from property within certain tax increment financing districts within the city as provided in Laws of Minnesota 2022, First Special Session, Chapter 14, Article 9, Section 5. 1.03. The authority and Beltline Development LLC, or an entity related thereto or affiliated therewith, each own portions of certain property within the project, which has been the subject of a number of agreements for purposes of constructing a mixed-use development and related parking, including a parking ramp serving in part as a park & ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station on certain property in the project (the “development”). 1.04. On July 7, 2022, the city, authority and Beltline Station Limited Partnership entered into a contract for private development, as amended by the first amendment to contract for private development, dated March 31, 2023, the second amendment to contract for private development, dated June 5, 2023, and the third amendment to contract for private development dated October 2, 2023 (collectively, the “original affordable contract for private development”), relating to a portion of the development consisting of a portion of construction of approximately 82 units of affordable multifamily rental housing together with approximately 59 underground parking spaces (the “affordable minimum improvements”) whereby the city and the authority agreed to provide certain financial assistance to the affordable minimum improvements. 1.05. Beltline Station Limited Partnership previously obtained financing from Cedar Rapids Bank and Trust, an Iowa banking corporation (the “senior lender”) and in connection therewith the parties entered into a master subordination agreement between the senior lender, Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 31 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 the city, and the authority two collateral assignments of payments under tax increment revenue note between Beltline Station Limited Partnership and the senior lender and acknowledged by the authority, and a master loan disbursement agreement between the Beltline Station Limited Partnership, the authority, the senior lender and the city (together, the “prior financing documents”). 1.05. Due to market conditions and the need to obtain new financing, Beltline Apartments Limited Partnership, a Minnesota limited partnership and affiliate of Beltline Station Limited Partnership (the “developer”) has requested certain changes to the original contract and the parties have prepared an amended and restated contract for private development which amends and restates the original affordable contract (the “agreement”), the form of which is on file with the city. 1.06. The agreement increases the affordability of the affordable minimum improvements, provides for the issuance by the authority of a tax increment revenue note to the developer in the maximum principal amount of $804,000, authorizes the loan of proceeds of funds from the city’s affordable housing trust fund (the “city AHTF loan”) in the principal amount of $1,793,238 to the developer and sets forth certain other conditions for the construction of the affordable minimum improvements. 1.07. In order to assist with the costs of the minimum improvements, the authority applied for and received a grant (the “DEED grant”) from the Minnesota Department of Employment and Economic Development (“DEED”). 1.08. Deed and the authority entered into the Contamination Cleanup Grant Contract Agreement No. CCGP-21-0022-Z-FY22 (the “DEED grant agreement”). Proceeds of the DEED grant in the amount $156,120 have been used for eligible project components of the minimum improvements (the “DEED grant-eligible activities”) as described in the DEED grant agreement. The authority has disbursed the proceeds of the DEED grant to the developer to provide financing for the DEED grant-eligible activities as set forth in the agreement. 1.09. In order to assist with the costs of the minimum improvements, the authority applied for and received a grant in the amount $300,000 (the “SWCW grant”) will be used for costs related to the minimum improvements, made by the county of Hennepin from the County’s Bottineau and Southwest Community Works Programs (“SWCW”). 1.10. The county of Hennepin, Minnesota and the authority entered into the Southwest Community Works Project Grant agreement No. PR00006396 (the “SWCW grant agreement”). Proceeds of the SWCW grant may be used for eligible project components of the minimum improvements (the “SWCW grant-eligible activities”) as described in the SWCW grant agreement. 1.11. The authority intends to disburse the proceeds of the SWCW grant to the developer to provide financing for the SWCW grant-eligible activities as set forth in the agreement. 1.12. The agreement requires that the developer comply with certain construction timelines for the affordable minimum improvements or pay a fee (the “affordable housing fee”) to the authority set forth in the agreement. The payment of affordable housing fee will be secured by Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 32 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 a letter of credit and a guaranty from George Sherman and Sherman Development Holdings (collectively, the “security”) delivered at closing on the property. 1.12. The board of commissioners has reviewed the agreement and finds that the execution thereof and performance of the authority’s obligations thereunder are in the best interest of the city and its residents. Section 2. The agreement and related documents. 2.01. Subject to approval of the agreement by the city council, the board hereby approves the agreement in substantially the form presented to the board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the agreement including without limitation the assessment agreement and the declaration of restrictive covenants and various documents necessary to release the prior financing documents and documents prepared in connection with the original agreement (all as defined in the agreement) (the “development documents”). 2.02. The board hereby authorizes the president and executive director, in their discretion and at such time, if any, as they may deem appropriate, to execute the development documents on behalf of the authority, and to carry out, on behalf of the authority, the authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The development documents shall be in substantially the form on file with the authority and the approval hereby given to the development documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the authority. City staff are hereby delegated the authority to approve the final forms of the security for the affordable housing fee including a letter of credit and guarantees. The execution of any instrument by the appropriate officers of the authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the development documents shall not be effective until the date of execution thereof as provided herein. 2.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the board by any duly designated acting official, or by such other officer or officers of the board as, in the opinion of the city attorney, may act in their behalf. Upon execution and delivery of the development documents, the officers and employees of the board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the board to implement the development documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 33 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Section 3. Issuance, sale, and terms of the TIF note. 3.01. The authority hereby authorizes the president and executive director to issue the TIF note in accordance with the agreement. All capitalized terms in this resolution have the meaning provided in the agreement unless the context requires otherwise. 3.02. The TIF note shall be issued to the owner in the maximum aggregate principal amount of $804,000 in consideration of certain eligible costs incurred by the owner in connection with construction of the minimum improvements under the agreement. The TIF note shall be dated the date of delivery thereof and shall bear interest as set forth in the agreement. The TIF note will be issued in accordance with Section 3.3 of the agreement. The TIF note is secured by available tax increment, as further described in the form of the TIF note. The authority hereby delegates to the executive director the determination of the date on which the TIF note is to be delivered, in accordance with the agreement. Section 4. Form of TIF note. The TIF note shall be in substantially the form attached as an exhibit to the agreement, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue. Section 5. Terms, execution and delivery. 5.01. Denomination, payment. The TIF note shall be issued as a single typewritten note numbered R-1. The TIF note shall be issuable only in fully registered form. Principal of and interest on the TIF note shall be payable by check or draft issued by the registrar described herein. 5.02. Dates; interest payment dates. Principal of and interest on the TIF Notes shall be payable in accordance with their terms and the agreement. 5.03. Registration. The authority hereby appoints the finance director of the city to perform the functions of registrar, transfer agent and paying agent (the “registrar”). The effect of registration and the rights and duties of the authority and the registrar with respect thereto shall be as follows: (a) Register. The registrar shall keep at its office a bond register in which the registrar shall provide for the registration of ownership of the TIF note and the registration of transfers and exchanges of the TIF note. (b) Transfer of TIF note. Upon surrender for transfer of the TIF note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new TIF note of a like aggregate principal amount and maturity, as requested by the transferor. The registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each payment date and until such payment date. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 34 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 (c) Cancellation. The TIF note surrendered upon any transfer shall be promptly cancelled by the registrar and thereafter disposed of as directed by the authority. (d) Improper or unauthorized transfer. When the TIF note is presented to the registrar for transfer, the registrar may refuse to transfer the same until it is satisfied that the endorsement on the TIF note or separate instrument of transfer is legally authorized. The registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons deemed owners. The authority and the registrar may treat the person in whose name the TIF note is at any time registered in the bond register as the absolute owner of such TIF note, whether the TIF note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the TIF note and for all other purposes, and all such payments so made to any such registered owner or upon the owner’s order shall be valid and effectual to satisfy and discharge the liability of the authority upon the TIF note to the extent of the sum or sums so paid. (f) Taxes, fees and charges. For every transfer or exchange of the TIF note, the registrar may impose a charge upon the owner thereof sufficient to reimburse the registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated, lost, stolen or destroyed TIF note. In case the TIF note shall become mutilated or be lost, stolen, or destroyed, the registrar shall deliver a new TIF note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated TIF note or in lieu of and in substitution for the TIF note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the registrar in connection therewith; and, in the case the TIF note lost, stolen, or destroyed, upon filing with the registrar of evidence satisfactory to it that the TIF note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the authority and the registrar shall be named as obligees. The TIF note so surrendered to the registrar shall be cancelled by it and evidence of such cancellation shall be given to the authority. If the mutilated, lost, stolen, or destroyed TIF note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new TIF note prior to payment. 5.04. Preparation and delivery. The TIF note shall be prepared under the direction of the finance director of the city and shall be executed on behalf of the authority by the signatures of its president and executive director. In case any officer whose signature shall appear on the TIF note shall cease to be such officer before the delivery of the TIF note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. When the TIF note has been so executed, it shall be delivered by the Executive Director to the owner thereof in accordance with the agreement. Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 35 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 Section 6. Security provisions. 6.01. Pledge. The authority hereby pledges to the payment of the principal of and interest on the TIF note all available tax increment as defined in the TIF note. Available tax increment shall be applied to payment of the principal of and interest on the TIF note in accordance with the terms of the form of TIF note. 6.02. Bond Fund. Until the date the TIF note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the authority shall maintain a separate and special “bond fund” to be used for no purpose other than the payment of the principal of and interest on the TIF note. The authority irrevocably agrees to appropriate to the bond fund on or before each payment date the available tax increment in an amount equal to the payment then due, or the actual available tax increment, whichever is less. Any available tax increment remaining in the bond fund shall be transferred to the authority’s account for the TIF district upon the termination of the TIF note in accordance with its terms. Section 7. Certification of proceedings. The officers of the authority are hereby authorized and directed to prepare and furnish to the owner of the TIF note certified copies of all proceedings and records of the authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality of the TIF note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the authority as to the facts recited therein. Section 8. Effective Date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the Economic Development Authority May 19, 2025: Karen Barton, executive director Sue Budd, president Attest: Melissa Kennedy, secretary Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 36 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 EDA Resolution No. 25-_____________ Approving an early start agreement with Beltline Development LLC Be it resolved by the board of commissioners (the “board”) of the St. Louis Park Economic Development Authority (the “authority”) as follows: Section 1. Recitals; authorization. 1.01. The authority is the owner of certain real property located within the city (the “property”). 1.02. The authority and Beltline Development LLC, a Minnesota limited liability company (“beltline development”), entered into a purchase agreement, dated July 7, 2022, as amended, and intend to enter into an amended and restated purchase agreement (collectively, the “purchase agreement”), to acquire the property from the authority. Beltline development, or its affiliates (the “developer”) will construct a mixed-use development and related parking, including a parking ramp serving in part as a park & ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station on the property (the “development”). 1.03. Under the purchase agreement, the authority will transfer title to the property to the developer on which the developer is obligated to construct the development. 1.04. The conditions for conveyance of the property to developer have not yet been fully satisfied, but developer desires to commence various site preparation activities in preparation for construction of the development on the property prior to the transfer of title of such property to developer, and has requested that the parties enter into an early start agreement (the “agreement”) setting forth the terms and conditions for performance of such site preparation activities by the developer. 1.05. The parties have negotiated the agreement in the form presented to the board, and the board finds that the approval and execution thereof and performance of the authority's obligations thereunder are in the best interest of the city and its residents. Section 2. Approval of agreement. (a) The board approves the agreement in substantially the form presented to the board, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the agreement (the “documents”). (b) The board hereby authorizes the president and executive director, in their discretion and at such time, if any, as they may deem appropriate, to execute the documents on behalf of the authority, and to carry out, on behalf of the authority, the authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The documents shall be in substantially the form on file with the authority and the approval hereby given to the documents includes approval of such additional details therein as may be Economic development authority meeting of May 19, 2025 (Item No. 6a) Page 37 Title: Approve resolutions related to Sherman Associates’ Beltline Station redevelopment - Ward 1 necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the authority. The execution of any instrument by the appropriate officers of the authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the documents shall not be effective until the date of execution thereof as provided herein. (c) In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the board by any duly designated acting official, or by such other officer or officers of the board as, in the opinion of the city attorney, may act in their behalf. Upon execution and delivery of the documents, the officers and employees of the board are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the board to implement the documents. Section 3. Effective date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the Economic Development Authority May 19, 2025: Karen Barton, executive director Sue Budd, president Attest: Melissa Kennedy, secretary Meeting: City council Meeting date: May 19, 2025 Presentation: 3a Executive summary Title: Recognition of donations Recommended action: Mayor announce and express appreciation for the following donation being accepted at the meeting and listed on the consent agenda. From Donation For Carrie and Kevin Mandler $2,800 A memorial bench to be installed at Westwood Hills Nature Center honoring David French, Donn and Mary French Maureen and John Drewitz $1,000 Westwood Hills Nature Center for the Access to Fun scholarship fund Matthew Hobbs and family $10,000 A memorial bench, trees and park enhancements or educational needs at Westwood Hills Nature Center honoring Maurice Hobbs 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: Melissa Kennedy, city clerk Approved by: Kim Keller, city manager Meeting: City council Meeting date: May 19, 2025 Minutes: 4a Unofficial minutes City council meeting St. Louis Park, Minnesota April 21, 2025 1. Call to order. Mayor Pro Tem Brausen 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 Council members absent: Mayor Mohamed Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick), engineering director (Ms. Heiser), deputy city clerk (Ms. Scott-Lerdal), public works director (Mr. Hall) 2. Approve agenda. It was moved by Council Member Dumalag, seconded by Council Member Budd, to approve the agenda with an amendment to move Consent item 5d to Regular Business as item 7a. The motion passed 6-0 (Mayor Mohamed absent). 3. Presentations. a. Proclamation observing National Bike Month Council Member Rog noted she is an avid cyclist and read the proclamation. Mayor Pro Tem Brausen stated several council members are cyclists and St. Louis Park prioritizes accessibility for bikers. b. Recognition of donations Mayor Pro Tem Brausen noted that the St. Louis Park Crime Prevention Fund is being dismantled, and funds will return to the city. The group donated $87,773.58 for community outreach and crime prevention and an additional $27,857.78 donation will go to the city’s police canine program. He thanked those who made this gift possible. 4. Minutes a. Minutes of Feb. 18, 2025, special study session City council meeting of May 19, 2025 (Item No. 4a) Page 2 Title: City council meeting minutes of April 21, 2025 Council Member Dumalag requested a revision to the minutes to state: “Council Member Dumalag shared that within her own neighborhood association, Minikahda Oaks, neighbors can donate and contribute to neighborhood accounts. They do not solely depend on city funds for their events.” b. Minutes of March 17, 2025, special study session Council Member Dumalag requested a revision to the minutes to state: “Council Member Dumalag asked staff if the city used an owners representative to manage the Westwood Hills Nature Center and if we would use one in the future.” It was moved by Council Member Dumalag, seconded by Council Member Baudhuin, to approve the Feb. 18, 2025, and the March 17, 2025, special study session meeting minutes as amended. The motion passed 6-0 (Mayor Mohamed absent). c. Minutes of March 3, 2025, special study session d. Minutes of March 17, 2025, city council meeting e. Minutes of ceremonial oath of office of March 24, 2025 It was moved by Council Member Dumalag, seconded by Council Member Baudhuin, to approve the minutes of March 3, 2025, special study session, March 17, 2025, city council meeting, and March 24, 2025, ceremonial oath of office minutes as presented. The motion passed 6-0 (Mayor Mohamed absent). 5. Consent items a. Resolution No. 25-047 approving donations to police department b. Resolution No. 25-048 authorizing funding for community education programs c. Approve bid for 2025 Alley Reconstruction project (4025-1500) – Ward 2 d. Approve professional services contract amendment for Cedar Lake Road and Louisiana Avenue Improvement project (4024-1100) – Ward 4 (This item was moved to Regular Business item 7a upon approval of the agenda.) e. Resolution No. 25-049 accepting funding from the Minnesota Pollution Control Agency and entering into grant agreement for installation of park shade structures at Aquila and Ainsworth Parks - Ward 3 f. Resolution No. 25-050 approving technical amendments to the budget g. Resolution No. 25-051 approving amendment of fee agreement in connection with refunding of Park Nicollet Private Activity Revenue Bonds Mayor Pro Tem Brausen noted that Consent item 5d had been moved to Regular Business as item 7a. Council Member Rog commented on consent item 5b, noting the city’s ongoing partnership with the school district. She stated she believes in this partnership and is pleased to see the shared resources and continued relationship building between the city and the school district. City council meeting of May 19, 2025 (Item No. 4a) Page 3 Title: City council meeting minutes of April 21, 2025 It was moved by Council Member Baudhuin, seconded by Council Member Farris, to approve consent items and to waive reading of all resolutions. The motion passed 6-0 (Mayor Mohamed absent). 6. Public hearing a. Public hearing for intoxicating liquor license for Lago Lynlake LLC dba Lago Tacos Ms. Scott-Lerdal presented the staff report. The city received an application for a liquor license at 3801 Grand Way. This is the former location of McCoy’s Public House, which closed in March 2024. The sole owner of Lago Tacos, Thomas Ferris, will serve as the onsite manager for this full-service bar and restaurant. She noted there are two other locations in Excelsior and Plymouth, with another new location planned in Eagan. Ms. Scott-Lerdal stated the police department completed a background investigation and found nothing to warrant denial of a license. She added that the application also meets the zoning and building division requirements. Mayor Pro Tem Brausen opened the public hearing. No speakers were present. Mayor Pro Tem Brausen closed the public hearing. Mayor Pro Tem Brausen stated he is happy to see Lago Tacos coming to this location and asked if they are open for business yet. Mr. Ferris, owner of Lago Tacos, stated they are not open yet, but they are working hard to open this week. He said they are excited to be in St. Louis Park and have listened to input from the community. The business offers an indoor game room within their establishment, as well as outdoor seating and activities. Restaurant hours will be 11 a.m. to 10 p.m. in winter and 11 a.m. to 11 p.m. in the summer. Council Member Dumalag thanked Mr. Ferris for bringing Lago Tacos to St. Louis Park and added that the restaurant is in her ward. She stated that when McCoy’s closed, many were sad, noting there had been many events and celebrations there over the years. She is heartened to see another business owner ready to open so quickly, and residents have commented that they would like to bring something back to the location. Council Member Dumalag said she is excited to hear they aim to be open this week. Council Member Rog asked about Lago Taco’s LynLake location and if this new establishment will be a replacement for that location. Mr. Ferris stated yes, noting the LynLake location had closed the week prior. Council Member Rog asked for an estimate on the number of employees who will work at the St. Louis Park Lago Tacos. Mr. Ferris stated 40 employees will be located at the St. Louis Park location and most of his staff is coming over from the LynLake location. City council meeting of May 19, 2025 (Item No. 4a) Page 4 Title: City council meeting minutes of April 21, 2025 Council Member Rog asked if most of the employees live in the area, noting possible housing opportunities for employees who work in St Louis Park. Mr. Ferris stated that most of the employees lived close to the LynLake location, which is 2.7 miles away from St. Louis Park, and they are set with their housing. Council Member Rog asked staff about the total cost of a liquor license including on-sale intoxicating and Sunday sales. Ms. Scott-Lerdal stated the total annual cost is $8,950, with $8,750 for an intoxicating liquor license and $200 for the Sunday sales license. Council Member Rog welcomed Mr. Ferris to the community and added she is excited that Lago Tacos will be going into this space. Council Member Baudhuin welcomed Mr. Ferris to St. Louis Park, stating he is thrilled to have Lago Tacos come to the city. He stated McCoy’s was a hard loss, and a locally owned restaurant coming to the city is appreciated and valued by the council and the city. He believes the business will do very well with many residents coming in, and he is excited to go there himself. Council Member Budd stated she is intrigued by the game room idea. Mr. Ferris noted the various games that will be featured at the location are geared towards children. He stated they received input on a new model for their business, so they will try it out. It was moved by Council Member Dumalag, seconded by Council Member Baudhuin, to approve the intoxicating liquor license with Sunday sales for Lago Lynlake LLC dba Lago Tacos as presented. The motion passed 6-0 (Mayor Mohamed absent). 7. Regular business. a. Approve professional services contract amendment for Cedar Lake Road and Louisiana Avenue Improvements project (4024-1100) – Ward 4 Ms. Heiser presented the staff report. Ms. Heiser gave a history of the project, noting the city council approved the project in February of 2023, which included the design layouts for all phases. Ms. Heiser stated community engagement began in 2022, and the council approved rebuilding the road, installing sidewalks and a water main. She noted that the bikeway approved by council on Louisiana Avenue was to use an alternate route, because 70 mature trees would have needed to be cut down. Ms. Heiser stated that Phase 1 was completed last year, and Phase 2 would be started this year with completion in 2026. She shared that the last community engagement session was held in December 2024. The council approved the final Phase 2 plans for bids in early February 2025. She stated $2.5 million has been spent on temporary and permanent easements, and the city now has federal authorization to advertise for bids on the project. Ms. Heiser stated the consultant for the project is Kimley Horn, and the updated cost estimate for their services is before the council today for approval. City council meeting of May 19, 2025 (Item No. 4a) Page 5 Title: City council meeting minutes of April 21, 2025 Mayor Pro Tem Brausen stated this is in Ward 4, and he has been involved in this project since 2014, noting this lengthy project is scheduled for completion in 2026. He stated the cost amendment is before the council and he thanked staff for their work on this. Ms. Keller stated the council has received public comments in writing from two residents, which are included in the meeting materials. Mayor Pro Tem Brausen invited anyone in attendance to speak about the item. Jason Felds stated he moved to this area on March 9, 2025, and noted he is behind on the project information. He stated he cycled along Louisiana Avenue yesterday and felt the experience was scary. He appreciates that some sidewalks will be constructed to help pedestrians, and added he has concerns about some of the other plans. He added that he also drives a car but does not drive it much and has concerns that the two-lane road will be widened. He stated that now it is 12 feet per individual lane, and he understands it is to be increased to 14 feet. He stated 14 feet is the same width as any interstate highway and he is concerned that Louisiana Avenue will become a highway. Many families live on Louisiana Avenue, and if the roads are widened, children cannot cross the street easily. He is concerned that drivers may feel they can drive faster with these wider lanes. He asked the council not to widen the roads and to keep families in St. Louis Park safer. Sylvie Hyman stated she knows a lot of work went into these plans, and she appreciates the community engagement that has happened up to this point. Her main concern is that the lanes must be narrowed on Louisiana Avenue. She noted 14-foot lanes are wider than highway lanes and are proven to encourage dangerous driver behavior and higher speeds. She understands and appreciates the work that went into putting a bike lane on Louisiana Avenue and she respects the decision to maintain the trees but added that no more trees need to be removed if four to six feet are taken from the right-of-way that is planned for construction. Ms. Hyman stated that narrower lanes also require less road salt, resulting in less pollution in the waterways and the environment. She noted narrow roads require less maintenance with less roadway to maintain. She urged the council to approve the bid with a condition that the lanes be narrowed from 14 feet to 10 feet individually. There are arguments for wider lanes for emergency vehicles, but they are perfectly fine with 20-foot right-of-way, and there would be fewer emergency vehicles responding to car crashes if the lanes are narrower to encourage safer driving. She referenced the proclamation recognizing “Bike Month”, noting it was stated that education was needed for safe driver behavior. Marc Berg, 2013 Webster Avenue, stated he is the administrator of the “Bike and Walk the Park” Facebook page. He is a 20-plus-year resident and regular bike commuter in St. Louis Park. He stated he shares the frustration that this opportunity to make Louisiana Avenue more bike- friendly passed by a few years ago. He does not like the idea of Louisiana Avenue being totally surrendered to cars, and if there is an opportunity to narrow lanes with traffic calming effects, he hopes the council will do so. Dana Nideck, 2020 Ridge Drive, stated that some of the community outreach was presented as a false dichotomy. She explained that the city either has a bike path or trees, and added it is City council meeting of May 19, 2025 (Item No. 4a) Page 6 Title: City council meeting minutes of April 21, 2025 important that roads are narrowed. She stated the city can have trees, safe roads and a bike path. Allie Rogers, 3019 Florida Avenue, stated she is a civics and geography teacher and always boasts about how bike-friendly and walkable St. Louis Park is, but these plans will make it less so. She stated she lived in Japan for 18 years, which has wonderful public infrastructure, but pointed out they do not have bike lanes on roads. Riding her bike on Louisiana Avenue feels like she is back in Tokyo with cars flying all over. She asked the council to narrow the lanes. Dayna Nerdich did not speak but submitted a written comment, which noted that bike, pedestrian, bus, and non-car transport should all be prioritized and asked the council to narrow car lanes to make streets safer. Council Member Rog asked staff to clarify if the city is narrowing the road. Ms. Heiser stated yes, the road will be narrowed, going on to explain that the current road is 36 feet wide, and it will be reduced by eight (8) feet to build the sidewalk. She stated the curb will be moved in on the east side and many of the trees will be protected. Council Member Rog asked what the lane widths are today. Ms. Heiser stated they are 12 feet with a shoulder on both sides. With the change to 28 feet wide, there is no parking allowed on either side of the street. She went on to explain that the fire station is on the road and they use it for every fire call. Ms. Heiser shared that she understands the concerns, but ultimately, vehicles use this road. There needs to be enough width for vehicles to pass when vehicles pull over for fire trucks or for when a delivery vehicle or solid waste truck stops. She added that a combination of issues such as the number of vehicles that use the road per day, public transit use, or a heavy snow year, can all bring challenges. These considerations prompted the staff recommendation of 12-foot-wide lanes. Council Member Rog stated she wished better for Louisiana Avenue, adding the council agrees on all of this, and it had been a topic of discussion earlier in the year. She agrees that if it cannot be done right, it does not make sense to invest in a solution that would not work on Louisiana Avenue, given the context. Council Member Rog stated the decision to reroute bike traffic entirely rather than trying to squeeze bikes into this corridor, along with budget and resource limitations, leads her to support this project as approved. She also appreciates the ongoing advocacy from the bike group, noting their input has made a difference in the past and will continue to do so in the future. Council Member Baudhuin also thanked the bike community for their comments, adding he considers himself part of the bike community as well and has testified in the past. He asked Ms. Heiser about alternative bike route for Louisiana Ave. Ms. Heiser stated that one challenge for a Louisiana bikeway is the MnDOT bridge across Highway 394, which was built in 1989 and MnDOT has no plans to widen it. There are about 20,000 vehicles per day crossing and getting on to the highway and walking and biking over the City council meeting of May 19, 2025 (Item No. 4a) Page 7 Title: City council meeting minutes of April 21, 2025 bridge is not comfortable for most users. She stated that the approved Louisiana Avenue project meets the need for a bicycle connection through an alternative route. Ms. Heiser stated there is a cycle track on Cedar Lake Road and when getting to Louisiana Avenue at Cedar Lake Road, there is a roundabout and a trail on both sides. She stated north of that, there will be a trail through Northside Park over to the trail at the Junior High School to Pennsylvania Avenue, and then over Highway 394. She added that the Hampshire Avenue trail will be available with a connection to another bridge, which coincides with the Three Rivers Park District Regional Trail Project. Council Member Baudhuin stated there are some safe infrastructures for biking going north- south near Louisiana Avenue on the east and west sides. He added that Louisiana Avenue is an arterial street, which is part of the problem for the bike community. He stated that he has concerns as well, and that is where some of the frustration comes from. He would like to see the city plan for more biking, walking and rolling of all kinds, especially as future projects on Louisiana Avenue are discussed more. He thanked the bike community and stated this seems to be the best plan for now but asked those providing comment to continue to bring their concerns to the council and city staff. Council Member Budd thanked the bike community for their comments. She appreciated the comments about St. Louis Park rating well on connectivity, as well as the staff’s commitment to the city’s Connect the Park plan. She stated she does bike with family and people who are not as comfortable on the streets. She has been involved with this project for the last three years and has seen modifications made. Council Member Budd stated she will continue to support the project. Council Member Dumalag agreed and referenced the staff’s recommendation of narrowing streets to slow traffic and use fewer materials to maintain them. She stated this was also a concern related to biking and walking in her neighborhood. Council Member Dumalag stated the council did not want to leave bikers out in this plan, and staff and council have been collaborating and discussing the Three Rivers Park District’s plan to create bike paths either on Louisiana Avenue or on Dakota Avenue. She noted these discussions have taken place to help bikers and pedestrians move as easily along corridors as vehicles do, and she will continue to support this project. Council Member Farris also thanked those who made comments, noting she is not a biker at all. However, she does walk and enjoys seeing people ride their bikes. When driving, she is very respectful of bikers and gives them space. The council has discussed this issue and added it is difficult but noted city funds limit opportunities in some cases. She added the council does hear the bike community’s concerns and will do everything they can to make bikeways as safe and convenient as possible. Council Member Rog reiterated that the plan would narrow Louisiana Avenue by eight feet, a change that has been shown to slow vehicle speeds. City council meeting of May 19, 2025 (Item No. 4a) Page 8 Title: City council meeting minutes of April 21, 2025 Mayor Pro Tem Brausen stated this project is in his ward, and he cares deeply about this issue as well. He stated another challenge is making upgrades to infrastructure in an already built-up city. He shared that the city is doing its best to balance existing – and sometimes competing - interests. Many people still travel by vehicle, so the city must provide a safe way for all to travel. He added that the city also needs to address the concerns of bikers and pedestrians. Mayor Pro Tem Brausen stated he has supported this project from the beginning and will continue to do so, while he appreciates the comments given and will consider them in the future. It was moved by Council Member Baudhuin, seconded by Council Member Farris, to approve the professional services contract amendment for Cedar Lake Road and Louisiana Avenue Improvement project (4024-1100) – Ward 4 as presented. The motion passed 6-0 (Mayor Mohamed absent). 8. Communications and announcements. Council Member Baudhuin gave his condolences to the Roman Catholic community on the passing of the Pope yesterday. He stated he is not a Catholic but is in the ministry and understands the Pope is highly revered by practicing Catholics. He added this Pope in particular supported marginalized persons in the Roman Catholic community and the St. Frances Cabrini Community is grieving deeply because of this Pope’s support of the LGBTQ community as well. To people in these communities, Council Member Baudhuin stated the city is thinking of you today and the city cares. Ms. Keller stated National Drug Take Back Day will take place this Saturday from 10 a.m. to 2 p.m. at the police department. She explained that unused and expired drugs are collected and safely disposed of as part of National Drug Take Back Day. Mayor Pro Tem Brausen added Vision 4.0 training is coming up on May 1 and May 8, 2025, for people to learn how to lead conversations within their neighborhoods. He invited all who want to engage with their neighbors and make St. Louis Park a better place to please join the training and sign up on the city website. 9. Adjournment. The meeting adjourned at 7:09 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Meeting: City council Meeting date: May 19, 2025 Minutes: 4b Unofficial minutes City council special study session St. Louis Park, Minnesota April 21, 2025 The meeting convened at 7:18 p.m. Council members present: Paul Baudhuin, Mayor Pro Tem Tim Brausen, Sue Budd, Yolanda Farris, Lynette Dumalag, Margaret Rog Council members absent: Mayor Nadia Mohamed Staff present: City manager (Ms. Keller), engineering director (Ms. Heiser), engineering services manager (Ms. Schweiger) Discussion items 1. Utility asset management planning Ms. Heiser gave the staff report. She shared that HDR, a consultant company, was hired to conduct a risk assessment study, which reviewed the city’s water and sanitary sewer pipe networks and evaluated risk. This discussion will involve looking at staff’s reasoning and recommendations to approach adjusting the city’s capital improvement plan (CIP). Ms. Heiser noted the policy question before the council is: • Does the city council approve the recommended approach to integrating utility asset management into the city’s capital improvement plan (CIP)? Ms. Heiser stated the study showed that high-risk sections of pipes are interspersed throughout the city and are not continuous, which creates challenges for replacement planning. She stated that over the last year, staff has been working on an overall replacement approach by completing a lifecycle analysis for the overall sanitary sewer and watermain network to identify the optimal time for replacement. She explained this involves a proactive, data-driven asset management approach to capital planning in 2027 and beyond, and this approach will be applied in the 2026 budget process. Ms. Heiser stated this information will go into the capital budget process, and available funding will be looked at along with staff capacity, to be realized as part of the 2027 construction season. Council Member Dumalag asked if a street could be reconstructed along with the sanitary sewer, but without addressing the water main. Ms. Heiser stated not necessarily - it could be done, but the water main and sanitary sewer are usually ten feet apart. She added that if the council decides to replace the sanitary sewer, then it is best to do both the street and the water main at the same time. Council Member Budd asked how much funding was provided by franchise fees. Ms. Heiser indicated that there is about $4.9 million per year available. City council meeting of May 19, 2025 (Item No. 4b) Page 2 Title: Special study session meeting minutes of April 21, 2025 Council member Budd asked if mill and overlay is included in the estimate provided. Ms. Heiser stated yes and added these types of costs are incorporated into the pavement management plan. Ms. Heiser stated that working on one neighborhood at a time allows for better pricing. She acknowledged that construction fatigue is difficult for neighborhoods, and staff tries to take this into account. Ms. Heiser stated that many pipes are starting to age out of their life cycle. Staff recommends replacing about two miles per year of water main pipes on average. This is where readjustments will be made when looking at funding and streets, and a projected completion in 2086. Council Member Budd stated many pipes will be replaced 40 years before their life cycle if this plan takes place. She asked why the city would not invest money to replace pipes within the full life cycle and let the funds build as opposed to pulling pipes out early. Ms. Heiser stated this is because of the need to flatten the curve, and because pipes do not reach their full lifecycle, which is indicate by water main breaks. She stated that replacing water mains and sewer lines over time will make it easier in the long term. Council Member Rog asked what the approximate costs are over time. Ms. Heiser stated it will depend on whether a 12-inch or an 8-inch water main is used. Pavement replacement is supported by franchise fees. Utility enterprise funds are based on rates, which are developed using costs of the city’s capital plan, maintenance and operations. She stated these are the three funding sources used to pay for capital improvements, and the plan is to make them go further. Ms. Heiser stated if the council is comfortable with the recommendations, staff will work on revising the CIP and present it to the council with the 2026 budget, along with an updated CIP for 2026-2034. Actual construction projects would begin in 2027. Council Member Rog asked about commercial roads and whether Municipal State Aid (MSA) funding is available. Ms. Heiser stated that MSA is programmed to be used on the roads in the city which are designated as state aid roads. There is $9 million in federal funding for the Cedar Lake/Louisiana Avenue project, as well as $5 million in state appropriations, and $7 million that is state aid. The city’s state aid funding is committed through 2027, adding there is $1.6 million per year in state aid, and the Oxford Street/ Louisiana Avenue project is next in line for these funds. Council Member Rog observed that the major burden of this work will fall on utility fees, as it does currently. Ms. Heiser stated that is correct. Ms. Heiser referenced sanitary sewer pipe replacements. For sewer pipes with no holes, cracks or upsizing needs, trenchless technology can be used to extend the life of that pipe for up to 50 years. City council meeting of May 19, 2025 (Item No. 4b) Page 3 Title: Special study session meeting minutes of April 21, 2025 Ms. Heiser noted there will be a great deal of future development around the light rail stations, so there needs to be replacements to accommodate the additional capacity in those areas. Council Member Rog asked if this type of project is funded totally by the city or if developers share the cost. Ms. Heiser stated that the replacement and upsizing of the sanitary sewer as a part of the 36th Street and Wooddale Avenue project was funded by TIF dollars. She added they do try to have the developer provide funding if the developer is creating the capacity need, but sometimes it can be a series of developments that provide funding. Council Member Rog asked how frequent sanitary sewer breaks are in the city. Ms. Heiser stated that most of the city’s sewer system is not pressurized. Unlike a water main break, sanitary sewer failures usually cause backups. Additionally, backups can be caused by “flushable” wipes - which should not be flushed - as well as grease buildup. Council Member Farris asked if the plan is to address one neighborhood at a time. Ms. Heiser stated that the overall replacement plan would be approached one pavement management area at a time, breaking the city up into eight different sections with 15 miles of street in each section. It is unlikely that one entire neighborhood will be done in one year. The number of miles of streets and utilities replaced each year would depend on funding and workload. Council Member Farris stated she is in support of the policy question. Council Member Dumalag stated she is also supportive and likes the approach of replacing pipes in two-mile segments, as it will help to prioritize areas and also help with the budgeting process. Council Member Baudhuin stated he also supports the policy question, as well as flattening the curve and the foresight so as not to create another curve as well. Council Member Rog asked if this approach overrides the city’s previous approach to pavement management. Ms. Heiser stated it layers in the watermain and sanitary sewer replacement. Council Member Rog asked where and when pavement management would be happening in the Birchwood neighborhood. Ms. Heiser stated the Bronx Park neighborhood will be in 2026, and mill and overlay will happen in the Birchwood area in 2028, but noted reconstruction there will not happen again until 2034. Council Member Rog asked about the high-risk map and Minnetonka Boulevard showing up as a green area. She understood that area was being replaced for piping because there was a great need at this time. Ms. Heiser stated the county will rebuild Minnetonka Boulevard as concrete, and the decisions made there today will not be revisited for over 50 years, so the pipe replacements need to be done at this time. Council Member Rog asked if franchise fees will go up a lot. Ms. Heiser stated this is a different process, and the city will work with utility fees to fund the sanitary sewer and water main replacement work. With utility fees, there have been incremental annual increases to plan for the replacement work. City council meeting of May 19, 2025 (Item No. 4b) Page 4 Title: Special study session meeting minutes of April 21, 2025 Council Member Rog stated she is supportive of the policy question and all the work that went into this discussion, noting it has been an in-depth approach. Council Member Budd stated there is a 4% increase in utility fees. She added that overall, she is supportive but would like to spread the 2% over a few years, noting the solid waste increase of 5% was difficult for those on a fixed income. She is totally supportive of how engineering is researching and approaching the problem. Mayor Pro Tem Brausen added he likes the measured and proactive approach for evaluating high-risk areas. He stated it is unfortunate that costs will continue to rise, and the city will need to continue to replace infrastructure. However, this is a reality, and future councils will have to raise taxes to pay for it. He said it is helpful to address these issues now before they become massive problems. Ms. Heiser stated staff will focus on the CIP for 2027 and 2028 and will bring that information back to the council. 2. Proposed study session topic – relative homestead rental licensing Mayor Pro Tem Brausen shared comments from Mayor Mohamed stating her support of relative homestead rental licensing as a topic for a study session. Council Members Budd, Dumalag and Farris also voiced their support for this topic. Ms. Keller stated they will put this topic into the work plan and asked if staff can proceed with the topic without another study session. Council Member Rog stated she does not need another study session before the proposed study session. Written Reports 3. Housing activity report Council Member Dumalag stated there was some concern about rental licenses and asked if there could be more information in the report related to that concern. She noted that data about who truly owns property within the city would be important to see. Mayor Pro Tem Brausen stated he would like follow-up data on the 30-day eviction notice and how that is impacting landlords. Council Member Baudhuin stated this was a very well-done report. Mayor Pro Tem Brausen added he appreciated the data in the housing report as well. Council Member Rog stated that since this is such a big scope of what the city does, it would be good to have a deeper dive into understanding spending on housing, how the housing program City council meeting of May 19, 2025 (Item No. 4b) Page 5 Title: Special study session meeting minutes of April 21, 2025 is doing, what the outcomes are, and discuss if the city wants to add more money to housing programs. Council Member Dumalag agreed it would be good to have a check-in and to check against the city’s goals to see how we are benchmarking with housing, along with political pressures. Ms. Keller stated that these deep dive topics will be added to the council’s systems approach work. She added that a study session request form would be helpful with details, so the topic can be narrowed. 4. Vision 4.0 update Board and Commissions discussion: Council Member Rog stated she wanted to share alternative application approaches and see what others think. Mayor Pro Tem Brausen said he has a comment from Mayor Mohamed on this topic, indicating Mayor Mohamed does not like changing the approach mid-stream because the applicants rely on the current approach. Mayor Mohamed would like to streamline the process. Ms. Keller stated she is also open to conversations on future processes. Council Member Baudhuin added that applicants might fill out an application differently if they know whether or not they will get an interview. Ms. Keller stated there is no guarantee of an interview. Council Member Baudhuin stated he appreciated the information provided by Council Member Rog, but noted he does agree with Mayor Mohamed on not changing a process mid-stream. Council Member Rog stated she feels there was a gap in the scoring. She added not everyone stepped up last year, and everyone on the council needs to be part of interviews. Council Member Farris stated Fridays are difficult for her. Council Member Dumalag agreed not to change the process mid-stream and supported the idea of streamlining the process in the future. Mayor Pro Tem Brausen stated he agrees with maintaining the process, and in future years, if someone reapplies, proposed that the deadline could be a week earlier. Council Member Farris stated she will agree with the majority. Ms. Keller stated she is hearing the majority of council members are considering strong support for exploring a streamlined process, comfort with moving down to two council members per interview panel session, and comfort with a fewer number of applicants being interviewed. City council meeting of May 19, 2025 (Item No. 4b) Page 6 Title: Special study session meeting minutes of April 21, 2025 Council Member Baudhuin stated Mr. Coleman already has a plan in place, and he should be allowed to proceed with it. Ms. Keller stated the study session meeting on May 12, 2025 has been cancelled, and suggested Mr. Coleman utilize that date for a meeting related to board and commissions. The meeting adjourned at 8:35 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Meeting: City council Meeting date: May 19, 2025 Minutes: 4c Unofficial minutes City council meeting St. Louis Park, Minnesota May 5, 2025 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: Mayor Nadia Mohamed, Paul Baudhuin, Tim Brausen, Sue Budd, Lynette Dumalag, Yolanda Farris, Margaret Rog Council members absent: none Staff present: City manager (Ms. Keller), city attorney (Mr. Mattick) 2. Approve agenda. It was moved by Council Member Baudhuin, seconded by Council Member Dumalag, to approve the agenda as presented. The motion passed 7-0. 3. Presentations a. Proclamation observing Jewish Heritage Month Council Member Rog stated that as a representative of Ward 1, which is home to a very vibrant Jewish community with a long and epic history of survival, she is proud to read this proclamation. Council Member Baudhuin thanked staff for developing this proclamation and stated it is important to do this work. The Jewish community has contributed to the city, and as a pastor, he sees that there is more work to be done to fight antisemitism and to also not exploit our Jewish community for political purposes. b. Proclamation observing Native American Heritage Month Mayor Mohamed read the proclamation. She acknowledged the tragic shooting in Minneapolis that resulted in the mourning of many Native Americans. She added that many have been impacted by the shooting, and St. Louis Park stands in solidarity with the Native American community as they mourn the loss of their family members. She encouraged all to take part in events to honor Native American Heritage Month and added that there is more information in the staff report related to these events and engagement opportunities. City council meeting of May 19, 2025 (Item No. 4c) Page 2 Title:City council meeting minutes of May 5, 2025 c. Proclamation observing AANHPI (Asian American, Native Hawaiian, and Pacific Islander) Heritage Month Council Member Dumalag read the proclamation. She stated in a time when international politics has come into play, it is also important to remember that Asian Americans, Native Hawaiian and Pacific Islanders have contributed much to this community and noted that she is a Filipino American. Council Member Dumalag added she sends her condolences to those in Vancouver, where 11 people in the Filipino community were killed during what should have been a celebration of their heritage. d. Proclamation observing National Small Business Week – May 4-10, 2025 Council Member Baudhuin read the proclamation. He stated that St. Louis Park really values small businesses. He added that everyone needs to be mindful of uncertainties around small businesses today, noting the city is available to assist its small business owners and their needs during this time of chaos within the system. He stated the community appreciates small business owners’ contributions to the city. e. Recognition of donations Mayor Mohamed thanked The Pinehart Foundation on behalf of the city council for a donation of $100 to the Fire Department 4. Minutes a. Minutes of March 24, 2025, study session b. Minutes of April 7, 2025, city council meeting c. Minutes of April 14, 2025, study session It was moved by Council Member Rog, seconded by Council Member Budd, to approve the March 24, 2025, study session minutes, the April 7, 2025, city council meeting minutes, and the April 14, 2025, study session minutes as presented. The motion passed 7-0. 5. Consent items a. Approve city disbursements b. Resolution No. 25-52 accepting donation to the fire department c. Approve bid for Lift Station #10 Replacement Project (4025-3100) - Ward 1 d. Resolution No. 25-53 approve mobility sharing licenses for Spin and Lime e. Resolution No. 25-54 authorizing entering into a cooperative construction agreement with the Minnesota Department of Transportation for Interstate 394 project (4025- 8000) – Ward 4 f. Approve temporary/seasonal premises amendment for Park Tavern Lounge & Lanes City council meeting of May 19, 2025 (Item No. 4c) Page 3 Title:City council meeting minutes of May 5, 2025 Council Member Brausen asked to comment on consent items 5a and 5f. Council Member Brausen stated he is happy to approve the city disbursements, noting this is $5 million well spent. He also stated he supports small businesses in the city and invited the owner of Park Tavern Lounge & Lanes to make comments. Phil Weber, 3401 Louisiana Avenue South, stated he is hopeful for a great summer at his business. Council Member Baudhuin asked if the all-night party of the 2025 St. Louis Park high school graduation class will be hosted at Park Tavern again this year. Mr. Weber stated yes, Park Tavern will host this party, which has become a tradition since the COVID-19 pandemic. 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. 6. Public hearings – none. 7. Regular business – none. 8. Communications and announcements. Ms. Keller stated that on May 10, 2025 there is an Arbor Day celebration at Browndale Park where tree planting and tree-focused activities will take place from 9 a.m. to 12 p.m. There is a gardening swap on Tuesday, May 13, 2025, at the Recreation Outdoor Center (ROC) from 5 to 7 p.m., with more details on the city’s website. Ms. Keller added spring clean-up day will be held May 17, 2025 from 8 a.m. to 12 p.m. at the Municipal Services Center, and more details can be found on the city calendar online. Council Member Rog added in the spirit of Asian American, Native Hawaiian, and Pacific Islander (AANHPI) Heritage Month in St. Louis Park, there is a mini-film festival that is part of the Twin Cities Film Festival at Marcus Theaters at the West End on May 14, 2025. She stated there will be films with empowering stories about Asian Americans and Pacific Islanders. Council Member Budd thanked those who attended the Electric Vehicle (EV) “petting zoo” event last Friday at Aquila Park, where there was a ribbon-cutting ceremony for a new EV station. She added that the “curbtacular” event was also held last week for obtaining free items, and was a huge success. She thanked those who participated. 9. Adjournment. The meeting adjourned at 6:38 p.m. ______________________________________ ______________________________________ Melissa Kennedy, city clerk Nadia Mohamed, mayor Meeting: City council Meeting date: May 19, 2025 Consent agenda item: 5a Executive summary Title: Resolution accepting donations to the Parks and Recreation Department Recommended action: Motion to adopt a resolution accepting donations for Westwood Hills Nature Center. Policy consideration: Does the city council wish to accept these donations with restrictions on their use? Summary: State statute requires the city council to formally accept donations. This requirement is necessary to make sure the city council has knowledge of any restrictions placed on the use of each donation prior to it being expended. • Donation for a memorial bench to be installed at Westwood Hills Nature Center honoring David French, Donn and Mary French. o Carrie and Kevin Mandler, $2,800 • Donation to Westwood Hills Nature Center for the Access to Fun scholarship fund. o Maureen and John Drewitz, $1,000 • Donation for a memorial bench, trees and park enhancements or educational needs at Westwood Hills Nature Center honoring Maurice Hobbs. o Matthew Hobbs and family, $10,000 Financial or budget considerations: These donations will be used for two park benches, four trees, enhancements or educational needs at Westwood Hills Nature Center and for the Access to Fun scholarship fund. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution Prepared by: Carrie Mandler, secretary program aide Reviewed by: Mark Oestreich, Westwood Hills Nature Center manager Stacy M. Voelker, administrative coordinator Jason T. West, parks and recreation director Approved by: Kim Keller, city manager City council meeting of May 19, 2025 (Item No. 5a) Page 2 Title: Resolution accepting donations to the Parks and Recreation Department Resolution No. 25 - ___ Accepting donations in the amount of $13,800 for Westwood Hills Nature Center Whereas, the City of St. Louis Park is required by state statute to authorize acceptance of any donations; and Whereas, the city council must also approve any restrictions placed on the donation by the donor; and Whereas, Carrie and Kevin Mandler donated $2,800 to Westwood Hills Nature Center for the purchase of a memorial bench, Matthew Hobbs and family donated $10,000 for the purchase of a memorial bench, trees and park enhancements or educational needs, and Maureen and John Drewitz donated $1,000 for the Access to Fun scholarship fund , Now therefore be it resolved, by the city council of the City of St. Louis Park that these donations are hereby accepted with thanks to Kevin and Carrie Mandler with the understanding that their gift must be used for a park bench at Westwood Hills Nature Center, Matthew Hobbs and family with the understanding that their gift must be used for a park bench, trees and park enhancements or educational needs at Westwood Hills Nature Center and Maureen and John Drewitz with the understanding the their gift must be used for the Access to Fun scholarship fund. Reviewed for administration: Adopted by the city council May 19, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: May 19, 2025 Consent agenda item: 5b Executive summary Title: Resolution approving Police and Fire Public Employees Retirement Association member transfer Recommended action: Motion to adopt resolution approving transfer of Kris Olson-Ehlert, Police and Fire Public Employees Retirement Association (PERA) member. Policy consideration: Does the city council want to adopt the resolution approving Mr. Olson- Ehlert’s transfer? Summary: The St. Louis Park Fire Department hired Kris Olson-Ehlert as an Alternative Response Medic on Feb. 3, 2025 and was placed in the PERA coordinated fund. He previously worked with Hennepin Healthcare as a paramedic and was covered under the Police and Fire PERA fund. Minn. Stat. 353.64 Subd. 5a states that a member of the Police and Fire plan continues to be a member of the Police and Fire plan if the member is transferred or has a change in employment to a fire department in another governmental subdivision in the state of Minnesota. Subd. 5b states that the governing body of the governmental subdivision by which the member becomes employed must send a copy of a resolution to the association. Financial or budget considerations: The annual budget impact amounts to an additional 10.2% employer contribution (17.7% vs. 7.5%) of $10,000 at top-rate pay. This amount will be absorbed into the fire department’s budget. There is also an increase in the employee’s contribution, of which the employee is aware. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution Prepared by: Sue Rasmussen, administrative assistant Reviewed by: Peter Hanlin, fire chief Approved by: Kim Keller, city manager City council meeting of May 19, 2025 (Item No. 5b) Page 2 Title: Resolution approving Police and Fire Public Employees Retirement Association member transfer Resolution No. 25-_____ Approve Police and Fire PERA member transfer of Kris Olson-Ehlert Be it resolved by the city council (the “city council”) of the City of St. Louis Park, Minnesota (the “city”) as follows: Whereas, Minnesota Statutes Section 353.64, Subdivision 5a permits the governing body of a governmental subdivision that employs the member in the case of a transfer in the same department, or by which the member becomes employed by another police or fire department in the state of Minnesota, to continue the employee’s membership in the Public Employees Police and Fire plan, Now therefore be it resolved that the c ity c ouncil of the City of St. Louis Park hereby declares that the position titled Alternative Response Medic, currently held by Kris Olson- Ehlert, meets all of the following Police and Fire membership requirements: 1. The position to which this employee is either (a) being transferred within the same department; or (b) has a change of employment to a police or fire department in another governmental subdivision in the state of Minnesota with associated police or fire department functions; and 2. Said position is not that of an elected or appointed position of the city council, city manager, or finance director. Be it further resolved that this governing body hereby requests that the above-named employee be allowed to continue as a member of the Public Employees Police and Fire Plan until date of termination for this position. Reviewed for administration: Adopted by the city council May 19, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: May 19, 2025 Consent agenda item: 5c Executive summary Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Recommended action: • Motion to adopt resolution approving an amended and restated affordable housing redevelopment contract and other related documents. • Motion to adopt resolution approving proposed business subsidy to Beltline Mixed Use LLC. Policy consideration: Does the city support amending the existing Beltline Station affordable housing contract and support approving business subsidy to Beltline Station redevelopment as proposed? Summary: Since the financial assistance provided to the Beltline Station development is near the state defined threshold of what is considered a business subsidy under Minnesota Statutes sections 116J.993 through 116J.995, EDA legal counsel and Ehlers, the city’s financial consultant, recommend that the city enter into a Business Subsidy Agreement with Sherman Associates related to the Beltline development as a precaution. The agreement is in accordance with the city’s business subsidy policy, which specifies that the proposed business subsidy corrects conditions that permits designation of a renewal and renovation tax increment financing district, improves public infrastructure including sewers, storm sewers and streets and removes contaminated soils. In addition, staff recommend setting the job and wage goals at zero after the public hearing, since the goal of the financial assistance is a redevelopment that provides for mixed use transit-oriented development. The redeveloper also seeks approval of an amended and restated affordable housing contract and other related documents including an extension of various deadlines and a commitment to deeper affordability including 20 units at 30% Area Median Income (AMI), 23 units at 50% AMI and 39 units at 60% AMI. Financial or budget considerations: The proposed cumulative financial assistance of $15.83 million as described in the May 19, 2025 Economic Development Authority (EDA) staff report for the Beltline development is slightly less than the previous proposal of $16.36 million described in the Feb. 12, 2024 staff report. The Pay-As-You-Go Tax Increment Financing (TIF) notes are slightly lower, and are partly offset with a new $1.175 million Affordable Housing Trust Fund (AHTF) commitment. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion and city resolutions related to the affordable housing contract and business subsidy for the mixed use transit-oriented development. Prepared by: Dean Porter-Nelson, redevelopment administrator Reviewed by: Greg Hunt, economic development manager Karen Barton, community development director Approved by: Kim Keller, city manager City council meeting of May 19, 2025 (Item No. 5c) Page 2 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Discussion Background: The Beltline Station redevelopment site is located at the southeast corner of County State Aid Highway (CSAH) 25 and Belt Line Boulevard and consists of 6.6 acres. Sherman Associates (redeveloper) owns approximately 1.5 acres of the site and seeks to acquire the remaining five (5) acres from the EDA. The redeveloper plans to construct a major $147.5 million transit-oriented development with the following components: • Seven-story mixed-use building with six levels of market rate housing (152 units) and approximately 21,000 square feet of neighborhood commercial space. • Four-story all affordable apartment building with 82 units and underground parking. including 39 units at 60% AMI, 23 units at 50% AMI and 20 units at 30% AMI. The prior proposal was 77 units at 60% AMI and five (5) units at 30%. • Five-story market rate apartment building with 146 units and underground parking. • 592-stall parking ramp, including 268 park & ride stalls required by the Metropolitan Council. The development will exceed both the city’s inclusionary housing policy requirements and the city’s green building policy requirements through LEED certification across the mixed-use district and achievement of Enterprise Green Communities standards for the affordable building. The redeveloper will also comply with the city’s diversity, equity and inclusion policy, even though this policy was adopted several years after initial contract agreements. The redeveloper will also be utilizing union labor throughout the development’s construction. Present considerations: Business subsidy: The financial assistance provided to Sherman Associates to facilitate the market rate components of its Beltline Station development is near the threshold of what is considered a business subsidy under Minnesota Statutes sections 116J.993 through 116J.995. A business subsidy is considered an investment in the city and is meant to encourage desirable development and/or redevelopment that benefits the city. A business subsidy is required to meet the “but for” test, meaning but for the provision of public financing assistance, the redevelopment would not occur. Since the financial assistance provided to the Beltline Station Development is near the state defined threshold of what is considered a business subsidy, EDA legal counsel and Ehlers, the city’s financial consultant, recommend that the city enter into a Business Subsidy Agreement with Sherman Associates related to the Beltline development as a precaution. The agreement is in accordance with the city’s business subsidy policy which specifies that the proposed business subsidy corrects conditions that permits designation of a renewal and renovation tax increment financing district, improves public infrastructure including sewers, storm sewers and streets and removes contaminated soils. Since the goal of the financial assistance is a redevelopment that provides for mixed use, transit-oriented development and not specifically job creation or retention, the wage and job goals may be set to zero in the agreement in accordance with the business subsidy act. City council meeting of May 19, 2025 (Item No. 5c) Page 3 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Proposed financial assistance: In July 2023, the EDA approved a contract for private development related to the market rate and mixed-use components and parking ramp to facilitate the Beltline Station development. The proposed cumulative financial assistance of $15.83 million for the Beltline development is slightly less than the previous proposal of $16.36 million described in the Feb. 12, 2024 staff report. The total assistance for the mixed use district is $13.232 million and the total assistance for the affordable district is $2.598 million. The latest proposed financial package, totaling $15.837 million in assistance, is slightly lower than the assistance package approved in 2023, due to a lower present value of the Pay-As-You- Go TIF notes. The decrease in the Pay-As-You-Go TIF, coupled with a more deeply affordable unit mix, resulted in an additional gap in the financing for the affordable building. To assist in offsetting a portion of the increased gap, staff is recommending an increased Affordable Housing Trust Fund (AHTF) award associated with a much more deeply affordable unit mix. Beltline Station development financial assistance summary Site component TIF Note amount AHTF (from pooled TIF) Spending plan pooled TIF Bridge loan forgiveness Total assistance Beltline Station 1 TIF District (affordable component) Affordable $804,800 26 years $1.793 million NA NA $2.598 million Beltline Station 2 TIF District (mixed-use, market rate & parking components) Mixed-use $4.423 million 16 years NA $1,704,000 $989,639 $13.232 million Market rate Parking ramp $4.905 million $1.21 million 16 years NA NA NA Total financial assistance $11.342 million $1.793 million $1,704 million $989,639* $15.83 million *A bridge loan was provided to Sherman Associates to purchase the Vision Bank Parcel at 4725 Hwy 7 for approximately $3 million, of which Sherman Associates had paid $2 million. The EDA and city council previously approved the use of pooled TIF to forgive the remaining balance of $989,639. City council meeting of May 19, 2025 (Item No. 5c) Page 4 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Amendments to the affordable contract: The redeveloper has committed to a new unit mix with considerably deeper affordability which created a gap for the affordable portion of the project and requires the project to close and commence construction in a phased approach after other components of the project. As such, the redeveloper requests the following changes to the affordable contract: Affordability Type Summary Affordability Studio 1-BR 2-BR 3-BR Live / Work Total Total 60% AMI 1 7 21 10 0 39 50% AMI 1 4 12 6 0 23 30% AMI 0 3 11 6 0 20 Newly unit mix with significantly deeper affordability. The majority of the units remain 2- Bedrooms and 3-Bedrooms appropriate for families. • The redeveloper is proposing a change in the phasing of the project, in which the affordable portion will commence construction after the mixed-use market rate and ramp components of the project. The contract states that construction on the affordable property must begin within two years (prior to mid-2027), and the redeveloper anticipates commencement of construction on the affordable housing much sooner, by Quarter 1 of 2026. • Additional Affordable Housing Trust Fund (AHTF) to fill the financial gap associated with deeper affordability of the unit mix at the site. Although the overall financial assistance package for Beltline Station is lower than the one approved in 2023, the current request from the redeveloper to the EDA includes an additional $1.175 million from the AHTF for a total of $1.793 million in AHTF which includes the prior amount of $618,238 approved by the EDA and the city council. • This additional AHTF is requested to fill the financial gap associated with bringing more deeply affordable housing to the site, namely, to support the new unit mix that includes 20 deeply affordable units at 30% AMI, 23 units at 50% AMI and 39 units at 60% AMI. The prior unit mix had 77 units at 60% AMI and only five (5) units at 30% AMI. • This redeveloper is currently applying for Project-Based Vouchers (PBVs) from the St. Louis Park Housing Authority for the 20 units at 30% AMI, supporting integration of residents with a mix of incomes within the affordable building and an overall mix of incomes at a prime site with immediate access to downtown and the western suburbs via the Green Line Extension Light Rail Transit and the Cedar Lake regional bike and pedestrian trail. • Addition of an in-lieu fee of $5.2 million, payable if the 82-unit affordable project does not begin construction within two years after closing, to meet the requirements of the Inclusionary Housing ordinance. The fee was sized in consultation with Ehlers associates and was based on the number of units, the levels of affordability and the number of years of affordability. • The EDA will have a reverter on the affordable housing parcel allowing the EDA to re- take ownership of the parcel should the affordable building not commence construction within two years following closing. This, combined with the in-lieu payment, would allow the EDA to work with another developer to facilitate construction of an affordable building on the site. City council meeting of May 19, 2025 (Item No. 5c) Page 5 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 • Additional details described in further detail in the EDA report dated May 19, 2025. Next steps: Upon execution of amended contracts, the redeveloper plans to close on the EDA land, close on its project financing and commence construction. Current actions Governing body Date EDA considers resolution approving an amended and restated market rate housing and mixed-use redevelopment contract, the “mixed-use contract” with Beltline Mixed-use LLC, an amended purchase agreement, and other related documents. EDA May 19, 2025 EDA considers resolution approving an amended and restated affordable housing redevelopment contract, the “affordable contract” and other related documents. EDA May 19, 2025 EDA considers resolution approving a right of entry for minimal site preparation. EDA May 19, 2025 City council considers a resolution approving proposed Business Subsidy and a proposed affordable housing redevelopment agreement with an affiliate of Sherman Associates. City council May 19, 2025 Following the meeting on May 19, 2025, the following milestones are anticipated: Future actions Governing body Date Consideration of approval of the planning and development contract at an upcoming EDA meeting. EDA June 2025 EDA sale of the land to the redeveloper by July 31, 2025 or earlier. EDA July 31, 2025 or earlier Financial closing on building #1 (mixed-use housing and neighborhood commercial), building #3 (market rate housing), and the parking ramp by July 31, 2025; with closing on building #2 financing prior to Q1 2026. EDA/City council July 31, 2025 or earlier Commencement of construction as follows: • Grading on the full site – quarter 2, 2025 • Building 1 – quarter 3, 2025 • Building 3 – quarter 3, 2025 • Ramp – quarter 3, 2025 • Building 2 – quarter 1, 2026 or earlier City council Q2 2025 – Q1 2026 Completion of construction, all phases – quarter 1, 2027 EDA/City council Q1 2027 City council meeting of May 19, 2025 (Item No. 5c) Page 6 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Previous Actions: A summary of all previous actions related to the proposed redevelopment is provided in the table below. Additional details on actions prior to 2.5.2024 are included on Feb. 12, 2024, pages 8-13. Action Date Vision for Beltline Blvd Station area completed. 2008 - 2011 Beltline Area Framework & Design Guidelines completed. June 2012 Southwest Light Rail Transit (SWLRT) Project Office and city begin work on a joint, mixed-use development concept for Beltline Station. 2013 The EDA acquired properties at 4601 Highway 7 & 3130 Monterey Avenue South. December 2013 City council approved a resolution authorizing the submission of Congestion Mitigation Air Quality (CMAQ) grant application to FTA for partial funding to construct a parking ramp rather than a surface parking lot at Beltline Station to fulfill SWLRT park & ride requirements. November 2014 The Federal Government awarded the city $7.56 million to construct a park & ride parking ramp with 531-stalls. September 2015 The EDA and Met Council submitted an amendment to the federal government related to SWLRT to reduce the number of park & ride spaces at Beltline Station from 531 stalls to 268 stalls. This request was approved in late 2016, and the CMAQ grant award was accordingly reduced to $6.4 million April 2016 The EDA distributed a request for proposals to prospective developers for the Beltline Station Redevelopment Site. July 2017 The EDA entered into a preliminary development agreement with Sherman Associates to develop the Beltline Station site. February 2018 The EDA provided a bridge loan to Sherman Associates to enable its purchase of the former Vision Bank property to facilitate more than just transit parking on the western side of the Redevelopment Site. Soon after, Sherman Associates closed on the property acquisition and the Met Council placed a transit easement over the property restricting the property use to a public park & ride facility and requiring 268 park & ride spaces be available prior to revenue service of the SWLRT. April 2019 The EDA and city approved the first amendment to the preliminary development agreement. June 2019 The EDA approved a subrecipient agreement with the Metropolitan Council which specified the terms under which the CMAQ funds would be disbursed to the EDA. October 2019 The EDA entered into a cooperative construction agreement with the Metropolitan Council to construct the parking ramp. November 2020 The EDA discussed Sherman Associates financial assistance request and approved a second amendment to the preliminary development agreement and received a staff report outlining the details of the proposed Beltline Station development. June 2021 City council meeting of May 19, 2025 (Item No. 5c) Page 7 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Action Date The EDA received a report providing an update on the status of the development and issues related to high groundwater on site. November 2021 Sherman Associates received a tax-exempt bond allocation of $13.7 million from Minnesota Management and Budget (MMB) to help finance Beltline Station’s all affordable component. The redeveloper has received several extensions to the start date, which is currently anticipated to be mid-April 2024. January 2022 The city council approved the comprehensive plan amendment. March 2022 The city council approved various vacation requests, a preliminary and final plat, and a preliminary and final planned unit development for the Beltline Station development. April 2022 The EDA held a hearing regarding the issuance of the tax-exempt bond allocation for Beltline Station’s affordable housing component. May 2022 Sherman Associates submitted a building permit application for the all- affordable building. May 23, 2022 The EDA/city council approved the Beltline Station 1 TIF District and Beltline Station 2 TIF District. June 6, 2022 The EDA/city council approved the contract for private redevelopment for Beltline Station 1 TIF District and the purchase agreement related to the land sale for the complete development. June 20, 2022 Sherman Associates closed on the affordable building’s bond financing. July 1, 2022 The EDA approved a first amendment to the purchase agreement pushing the closing date back to June 30, 2023 to allow all parties time to finalize contracts. Dec. 5, 2022 Sherman Associates signed term sheets with their lenders for the development‘s market rate components. Closing was required to occur by June 30, 2023. February 2023 The EDA approved an early start and right-of-entry on the affordable building site to allow cleanup activities to commence prior to April 1, 2023 to preserve a DEED clean-up grant in the amount of $418,547. March 20, 2023 Sherman Associates began cleanup activities on the affordable building site. March 30, 2023 Sherman Associates submitted a building permit application and plans for the market rate components. May 5, 2023 The EDA received a report outlining a recommendation for an amended financial assistance package to bring the development to fruition. May 15, 2023 Sherman Associates submitted a building permit application and plans for the mixed-use components. May 18, 2023 The EDA approved an amendment to the property purchase agreement and contract for private development related to the affordable components to move the required closing date from June 30, 2023, to Sept. 15, 2023 June 5, 2023 Sherman Associates submitted a building permit application and plans for the parking ramp. June 12, 2023 The EDA held a public hearing on an amendment to the purchase agreement. July 17, 2023 City council meeting of May 19, 2025 (Item No. 5c) Page 8 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Action Date The EDA and city council approved an amendment to the purchase agreement, and the contract for private development related to the market rate and mixed-use components of the development. July 24, 2023 Sherman Associates and the EDA published legal notices to start the public bidding process of the parking ramp. July 27, 2023 Bidding closed on the parking ramp, and the lowest bid was approximately $5.7 million higher than estimated. Aug. 28, 2023 The Met Council considered the original ramp bid solicitation as proof that the construction of the ramp commenced, thereby meeting the required start date of Sept. 30, 2023 to preserve the $6.4 million CMAQ grant. Sept. 30, 2023 The city council approved a minor amendment to the planned unit development zoning district to redesign the parking ramp’s façade to reduce the ramp’s construction costs. Oct. 2, 2023 The EDA and city council approved amendments to the purchase agreement and various contracts to extend the commencement and completion dates of the development. Oct. 10, 2023 Sherman Associates and the EDA published legal notices to start the second round of public bidding process for the redesigned parking ramp. Nov. 9, 2023 The Met Council approved an amendment to the cooperative construction agreement with the EDA to increase their financial assistance to the public parking portion of the ramp by $984,167 for a total contribution of $3,484,167. Dec. 13, 2023 Public bidding closed on the parking ramp. The lowest bid was submitted by Dolar Construction for $20.2 million. The bid was approximately $1.7 million higher than estimated in the redeveloper’s proforma. Jan. 20, 2024 The EDA and city provided a letter stating it will not declare Sherman Associates in default since the expiration date of the contracts was Jan. 31, 2024 to preserve the development’s financing. Feb. 5, 2024 The city council approved a one-year extension of the approval of the final plat to April 2025. March 2024 Sherman Associates and the EDA published legal notices to start the third round of public bidding process for the parking ramp. Jan. 23, 2025 Public bidding closed on the parking ramp. The lowest bid was submitted by Donar Construction for $18.96 million. The bid was approximately $1.2 million lower than the bid submitted one year prior, contributing to the current financial feasibility of the redevelopment. March 4, 2025 The city council approved an extension of the approval of the final plat to Dec. 31, 2025 to allow the developer needed time to close on the property. March 17, 2025 City council meeting of May 19, 2025 (Item No. 5c) Page 9 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Resolution No. 25-______ Approving amended and restated contract for private development, a loan to Beltline Apartments Limited Partnership and execution of documents relating thereto Be it resolved by the city council (the “city council”) of the City of St. Louis Park, Minnesota (the “city”) as follows: Section 1. Recitals. 1.01. The city and the St. Louis Park Economic Development Authority (the “authority”) have heretofore approved the establishment of the Beltline Station Tax Increment Financing District No. 1 (the “TIF District No. 1”), a housing district, and Beltline Station Tax Increment Financing District No. 2 (the “TIF District No. 2” and together with TIF District No. 1, the “TIF districts”), a renewal and renovation district, within Redevelopment Project No. 1 (the “project”) and have adopted tax increment financing plans for the purpose of financing certain improvements within the project. 1.02. The city has heretofore created an Affordable Housing Trust Fund, which is funded in part with pooled tax increment derived from property within certain tax increment financing districts within the city as provided in Laws of Minnesota 2022, First Special Session, Chapter 14, Article 9, Section 5. 1.03. The authority and Beltline Development LLC, or an entity related thereto or affiliated therewith, each own portions of certain property within the project, which has been the subject of a number of agreements for purposes of constructing a mixed-use development and related parking, including a parking ramp serving in part as a park & ride facility for Metro Transit’s proposed Southwest Light Rail Transit Beltline station on certain property in the project (the “development”). 1.04. On July 7, 2022, the city, authority and Beltline Station Limited Partnership entered into a contract for private development, as amended by the first amendment to contract for private development, dated March 31, 2023, the second amendment to contract for private development, dated June 5, 2023, and the third amendment to contract for private development dated October 2, 2023 (collectively, the “original affordable contract for private development”), relating to a portion of the development consisting of a portion of construction of approximately 82 units of affordable multifamily rental housing together with approximately 59 underground parking spaces (the “affordable minimum improvements”) whereby the city and the authority agreed to provide certain financial assistance to the affordable minimum improvements. 1.05. Beltline Station Limited Partnership previously obtained financing from Cedar Rapids Bank and Trust, an Iowa banking corporation (the “senior lender”) and in connection therewith the parties entered into a master subordination agreement between the senior lender, the city, and the authority two collateral assignments of payments under tax increment revenue note between Beltline Station Limited Partnership and the senior lender and City council meeting of May 19, 2025 (Item No. 5c) Page 10 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 acknowledged by the authority, and a master loan disbursement agreement between the Beltline Station Limited Partnership, the authority, the senior lender and the city (together, the “prior financing documents”). 1.05. Due to market conditions and the need to obtain new financing, Beltline Apartments Limited Partnership, a Minnesota limited partnership and an affiliate of Beltline Station Limited Partnership (the “developer”) has requested certain changes to the original contract and the parties have prepared an amended and restated contract for private development which amends and restates the original affordable contract (the “agreement”), the form of which is on file with the city. 1.06. The agreement increases the affordability of the affordable minimum improvements, provides for the issuance by the authority of a tax increment revenue note to the developer in the maximum principal amount of $804,000, authorizes the loan of proceeds of funds from the city’s affordable housing trust fund (the “city AHTF loan”) in the principal amount of $1,793,238 to the developer and sets forth certain other conditions for the construction of the affordable minimum improvements. 1.07. In order to assist with the costs of the minimum improvements, the authority applied for and received a grant (the “DEED grant”) from the Minnesota Department of Employment and Economic Development (“DEED”). 1.08. DEED and the authority entered into the Contamination Cleanup Grant Contract Agreement No. CCGP-21-0022-Z-FY22 (the “DEED grant agreement”). Proceeds of the DEED grant in the amount $156,120 have been used for eligible project components of the minimum improvements (the “DEED grant-eligible activities”) as described in the DEED grant agreement. The authority has disbursed the proceeds of the DEED grant to the developer to provide financing for the DEED grant-eligible activities as set forth in the agreement. 1.09. In order to assist with the costs of the minimum improvements, the authority applied for and received a grant in the amount $300,000 (the “SWCW grant”) will be used for costs related to the minimum improvements, made by the County of Hennepin from the County’s Bottineau and Southwest Community Works Programs (“SWCW”). 1.10. The County of Hennepin, Minnesota and the authority entered into the Southwest Community Works Project Grant agreement No. PR00006396 (the “SWCW grant agreement”). Proceeds of the SWCW grant may be used for eligible project components of the minimum improvements (the “SWCW grant-eligible activities”) as described in the SWCW grant agreement. 1.11. The authority intends to disburse the proceeds of the SWCW grant to the developer to provide financing for the SWCW grant-eligible activities as set forth in the agreement. 1.12. The agreement requires that the developer comply with certain construction timelines for the affordable minimum improvements or pay a fee (the “affordable housing fee”) to the authority set forth in the agreement. The payment of affordable housing fee will be City council meeting of May 19, 2025 (Item No. 5c) Page 11 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 secured by a letter of credit and a guaranty from George Sherman and Sherman Development Holdings (collectively, the “security”) delivered at closing on the property. 1.13. The city council has reviewed the agreement and finds that the execution thereof and performance of the city’s obligations thereunder are in the best interest of the city and its residents. Section 2. Approval of city AHTF loan. 2.01. The city agrees to make the city AHTF loan to the developer from the city’s affordable housing trust fund in accordance with the terms of Section 3.5 of the agreement in the approximate principal amount of $1,793,238. 2.02 The city agrees to accept the promissory note and the mortgage, in substantially the forms set forth in the agreement, from the developer as security for the repayment of the city AHTF loan. Section 3. The agreement and related documents. 3.01. The city council hereby approves the agreement in substantially the form presented to the city council, together with any related documents necessary in connection therewith, including without limitation all documents, exhibits, certifications, or consents referenced in or attached to the agreement, including without limitation the mortgage and promissory note and various documents necessary to release the prior financing documents and documents prepared in connection with the original agreement (all as defined in the agreement) (the “development documents”). 3.02. The city council hereby authorizes the mayor and city manager, in their discretion and at such time, if any, as they may deem appropriate, to execute the development documents on behalf of the city, and to carry out, on behalf of the city, the city’s obligations thereunder when all conditions precedent thereto have been satisfied. The development documents shall be in substantially the form on file with the city and the approval hereby given to the development documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the city and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the city. City staff are hereby delegated the authority to approve the final forms of the security for the affordable housing fee including a letter of credit and guarantees. The execution of any instrument by the appropriate officers of the city herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the development documents shall not be effective until the date of execution thereof as provided herein. 3.03. In the event of absence or disability of the officers, any of the documents authorized by this resolution to be executed may be executed without further act or authorization of the city council by any duly designated acting official, or by such other officer or officers of the city council as, in the opinion of the city attorney, may act in their behalf. Upon execution and City council meeting of May 19, 2025 (Item No. 5c) Page 12 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 delivery of the development documents, the officers and employees of the city council are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the city council to implement the development documents, including without limitation the issuance of tax increment revenue obligations thereunder when all conditions precedent thereto have been satisfied and reserving funds for the payment thereof in the applicable tax increment accounts. Section 4. Effective Date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the city council May 19, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk City council meeting of May 19, 2025 (Item No. 5c) Page 13 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 Resolution No. 25-_____________ Approving a business subsidy by the St. Louis Park Economic Development Authority Be it resolved by the city council (the “city council”) of the City of St. Louis Park, Minnesota (the “city”) as follows: Section 1. Recitals; authorization. 1.01. The St. Louis Park Economic Development Authority (the “authority”) and Beltline Mixed Use LLC, a Delaware limited liability company (the “developer”), intend to enter into an amended and restated contract for private development (the “agreement”) pursuant to which the developer will acquire certain property located within the city (the “development property”) and construct thereon (a) a building to include approximately 146 units of market rate housing with approximately 96 underground parking spaces an affordable rental housing facility (the “market-rate housing component”); (b) a building to include approximately 152 units of market rate rental housing and approximately 18,200 rentable square feet of commercial space (the “mixed-use component”); and (c) an approximately 571-space parking ramp with approximately 1,850 square feet of commercial space (including approximately 208 spaces to serve the mixed- use component, approximately 95 spaces to serve the market-rate housing component, and approximately 268 spaces to be dedicated as public transit park & ride spaces) and driver restroom (the “parking ramp component,” and collectively with the market-rate housing component and the mixed-use component, the “minimum improvements”). To make the market-rate housing component and the mixed-use component of the minimum improvements economically feasible, the authority will issue separate tax increment revenue notes (individually, the “market-rate housing TIF note” and the “mixed-use component TIF note,” and together, the “TIF notes”). 1.02. In addition to the TIF notes, the authority has proposed to provide a grant to the developer (the “authority TIF grant”) from spending plan tax increment. The authority has also proposed a loan for the acquisition of land for the mixed-use component and market-rate housing component property payable from a purchase price note (the “purchase price note”) to evidence the developer’s obligation to repay the loan. 1.03. The mixed-use component TIF the authority TIF grant, and the purchase price note allocable on a pro rata basis to the commercial component of the mixed-use component, constitute a business subsidy (the “business subsidy”) pursuant to Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the “business subsidy act”). In connection therewith the developer and the authority will execute the Agreement in accordance with the proposed terms on file with the city, which constitutes a “business subsidy agreement” as required under the business subsidy act (the “business subsidy agreement”). 1.04. As required by Section 116J.994, subdivision 5 of the business subsidy act, on the date hereof, the board of commissioners of the authority conducted a duly noticed public hearing on the proposed business subsidy to be provided to the developer and setting the wage City council meeting of May 19, 2025 (Item No. 5c) Page 14 Title: Resolutions approving amended affordable housing contract and business subsidy for Beltline Station - Ward 1 and job goals at zero in accordance with the business subsidy act. In accordance with Section 116J.994, subdivision 3(d), of the business subsidy act, the city council is required to approve the business subsidy agreement contained in the agreement. Section 2. Approvals. 2.01. The city council hereby approves the proposed business subsidy and the business subsidy agreement contained in the agreement. 2.02. The city council hereby authorizes the president and the executive director of the authority, in their discretion and at such time, if any, as they may deem appropriate, to execute the business subsidy agreement (together, the “authority documents”) on behalf of the authority, and to carry out, on behalf of the authority, the authority’s obligations thereunder when all conditions precedent thereto have been satisfied. The authority documents shall be in substantially the form on file with the city and the approval hereby given to the authority documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the city and the authority and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the authority. The execution of any instrument by the appropriate officers of the authority herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. This resolution shall not constitute an offer and the authority documents shall not be effective until the date of execution thereof as provided herein. Section 3. Effective Date. This resolution shall be effective upon approval. Reviewed for administration: Adopted by the city council May 19, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: May 19, 2025 Consent agenda item: 5d Executive summary Title: Resolution approving implementation of stipends and term limits for Housing Authority Board Recommended action: Motion to adopt a resolution implementing stipends and term limits for the Housing Authority Board. Policy consideration: Does the council wish to approve the implementation of stipends and term limits for the housing authority? Summary: During a special study session on May 20, 2024, staff engaged in a conversation with the council regarding the roles and responsibilities of boards and commissions, as well as the appointment process and compensation. This discussion stemmed from a desire to eliminate barriers to participation and strengthen the boards and commissions program, based on information gathered during the boards and commissions redesign project. On March 3, 2025, the city council approved amendments to the city code, setting term limits of and introducing stipends for board and commission members. These changes apply to all boards and commissions governed under chapter two of the city code, ensuring continued opportunities for residents to engage and eliminate barriers to participation. However, as the Housing Authority Board is not included in the city code and operates by authority of Minnesota State Statute, its implementation requires a separate resolution to ensure legal compliance and proper authorization. After staff review of all members’ current terms , it was determined that no current member will be immediately impacted by this action. Staff notes that one housing authority member will be impacted when their term expires in 2026, culminating in a total of 19 years on the housing authority board. If this resolution is approved, an effective date proposed for these changes will be scheduled for the spring of 2025 to align with the upcoming appointment of boards and commissions members. Financial or budget considerations: The budget amendments to support stipends have been included. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution Prepared by: Pat Coleman, community engagement coordinator Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager City council meeting of May 19, 2025 (Item No. 5d) Page 2 Title: Resolution approving implementation of stipends and term limits for Housing Authority Board Resolution No. 25 - ___ Approval of implementation of term limits and stipends for Housing Authority Board members Whereas, the City of St. Louis Park is committed to creating opportunities to build social capital through community engagement; and Whereas, to ensure consistent opportunities for interested residents to engage, term limits of two, five-year terms shall be implemented for housing authority members; and Whereas, to reduce financial barriers to participation, stipends shall be introduced for housing authority members; Now therefore be it resolved by the city council of the City of St. Louis Park that: 1. Term limits of two, five-year terms shall be implemented for members of the Housing Authority Board. 2. Stipends shall be introduced for Housing Authority Board members. Reviewed for administration: Adopted by the city council May 19, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk Meeting: City council Meeting date: May 19, 2025 Consent agenda item: 5e Executive summary Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Recommended action: Motion to adopt resolution approving the joint powers agreement for the St. Louis Park police department to continue to participate as a member of the West Metro Drug Task Force. Policy consideration: Does the city council wish to authorize the St. Louis Park police department to continue participating in the West Metro Drug Task Force? Summary: In December 2023 and on behalf of its police department, the City of St. Louis Park City Council approved entering into a cooperative agreement with the Hennepin County West Metro Drug Task Force (WMDTF), joining officers from the Eden Prairie, Edina, Hopkins, Medina, Minnetonka, Minnetrista, Orono and West Hennepin police departments, along with deputies from the Hennepin County Sheriff’s Office (HCSO). Prior to joining the WMDTF, the St. Louis Park police department participated in a cooperative agreement, the Southwest Hennepin Drug Task Force (SWHDTF), with the cities of Eden Prairie, Edina, Hopkins and Minnetonka, along with deputies from the HCSO. The reason for the transition to the larger WMDTF, effectively merging two separate drug task forces, centered around the groups' already existing and near-daily operational collaboration, increasing challenges around task force funding that the merger improved, and multiple operational efficiencies. The two separately operating task forces were provided with daily operational oversight by the HCSO. Under the merged grouping of the WMDTF, the HCSO continued to provide daily oversight. Since the combined merger, several updates to the agreement have been proposed by the board to better align with operational and statutory-related aspects, such as disposition of property at termination, conditions upon filling appointment vacancies, voting rights and filling the administrator role if vacated. The respective police chiefs from the represented agencies, along with the HCSO, have reviewed the updates to the cooperative agreement and support the revisions. 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. • St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Resolution, 2023 WMDTF agreement, Second amended and restated 2025 WMDTF agreement and signature page Prepared by: Bryan Kruelle, police chief Approved by: Kim Keller, city manager City council meeting of May 19, 2025 (Item No. 5e) Page 2 Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Resolution No. 25-____ Approving the 2025 updated West Metro Drug Task Force cooperative agreement, of which the St. Louis Park Police Department is a member Whereas, the City of St. Louis Park on behalf of its police department desires to approve the updated West Metro Drug Task Force (WMDTF) cooperative agreement. The resolution approving the updated cooperative agreement with the WMDTF replaces an already existing agreement that was approved by the City of St. Louis Park in 2023, Now therefore be it resolved by the city council of St. Louis Park as follows: 1. That the City of St. Louis Park on behalf of its police department approves the updated WMDTF cooperative agreement. 2. Nadia Mohamed, the mayor for the city of St. Louis Park, and Kim Keller, the city manager, or successors, are hereby authorized to execute such agreements and amendments as are necessary to join membership with the Hennepin County West Metro Drug Task Force, on behalf of the City of St. Louis Park. Reviewed for administration: Adopted by the city council May 19, 2025: Kim Keller, city manager Nadia Mohamed, mayor Attest: Melissa Kennedy, city clerk City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 2 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 3 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 4 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 5 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 6 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 7 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 8 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 9 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 10 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 11 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 12 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 13 City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 14 SECOND AMENDED AND RESTATED WEST METRO DRUG TASK FORCE AGREEMENT THIS SECOND AMENDED AND RESTATED WEST METRO DRUG TASK FORCE AGREEMENT (the "Agreement") is made this 30th day of January 2025, by and among the undersigned units of government who are responsible for the enforcement of controlled substance laws in their respective jurisdictions. WHEREAS, the parties previously determined to create a regional joint powers entity for the purpose of enforcing the laws of their respective jurisdictions; and WHEREAS, the parties entered into a joint powers agreement creating the West Metro Drug Task Force dated July 27, 2004; and WHEREAS, the parties entered into the AMENDED AND RESTATED WEST METRO DRUG TASK FORCE AGREEMENT, dated September 13, 2016 (the “Amended Agreement”); and WHEREAS, the parties hereto wish to amend and restate the Amended Agreement to add additional parties and make other administrative changes. NOW, THEREFORE in consideration of the covenants herein contained the parties hereto agree as follows: 1.Name. The parties hereby restate and validate the West Metro Drug Task Force. (”Task Force”). 2.General Purpose. The Task Force shall collaboratively investigate crimes and conduct law enforcement. This Agreement restates and defines the rights and obligations of the Governmental Units with respect to the duties and activities performed by the Task Force throughout the term of the Agreement. To varying degrees, the Task Force relies on forfeiture funds to pay for investigation and law enforcement. Receipt of forfeiture may be restricted to law enforcement agencies. Accordingly, eligibility to be a Member is restricted to governmental units that are or that employ their own law enforcement agency whose primary function is the investigation and apprehension of individuals suspected or convicted of criminal offenses, and which government units are able to assign agents meeting the standards set forth herein (each, an “Agency”). 3.Members. The ”Members” of this Agreement are the following governmental units: Hennepin County City of Medina City of Minnetrista City of Orono City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 15 West Hennepin Department of Public Safety City of Edina City of Eden Prairie City of Hopkins City of Minnetonka City of Saint Louis Park South Lake Minnetonka Police Department along with any governmental units subsequently added in accordance with the provisions herein. The Members shall cooperate and use their best efforts to ensure that the various provisions of the Agreement are fulfilled. The Members agree in good faith to undertake resolution of disputes, if any, in an equitable and timely manner and in accordance with the provisions of this Agreement. 4.Term; Automatic Extensions. 4.1 The term of this Agreement shall be for one year, commencing January 30th 2025 and expiring on January 29, 2026 unless terminated earlier pursuant to the provisions herein. Except as provided in this section 4.1, this Agreement shall be automatically extended for successive one-year terms upon the same terms, conditions, and covenants. The Board may prevent the automatic renewal of this Agreement by majority vote of all members taken at least ninety (90) days prior to the expiration of any term; in that event, this Agreement shall expire at the end of the then- existing term. 5.Administrative Board. 5.1. The Task Force shall have a Board of Directors (“Board”) consisting of the chief law enforcement officer, or designee, representing each Member’s Agency (each, a “Director”). All Directors shall serve at the pleasure of their respective appointing authority. 5.2. Directors shall not be deemed employees of the Task Force and shall not be compensated by it. 5.3. The Board will delegate the authority and responsibility of carrying out the purpose of the Task Force to a “Task Force Commander” or that person’s designee. 5.4. The Board shall meet as needed to evaluate the progress of the Task Force. A meeting may be called by any Director, or the Task Force Commander. 5.5. The Board may approve contracts, including agreements for the rental of real property, incur expenses and make expenditures necessary and incidental to the City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 16 effectuation of its purposes and consistent with its powers. For the avoidance of doubt, all contracts shall be let in accordance with applicable law, including but not limited to Minnesota Statutes § 471.345. 5.6. The Board may recommend changes to this Agreement. This Agreement may only be modified by a written amendment that is approved and signed by all Members, or their designees. 5.7. The Board may receive, on behalf of the Task Force, funds and/or real or personal property by grant, forfeiture, devise, bequest, any funds voluntarily contributed by any Member, or other source authorized by law for use by the Task Force. 5.8. Each Member is entitled to one (1) vote on Task Force matters. Board action requires a majority vote of Members present for the vote. A quorum shall exist and votes may be taken if a majority of the Directors or their designees are present. Upon approval by the Board: (i) voting by designee shall be permitted; and (ii) subject to applicable law, including the Minnesota Open Meeting Law, Minn. Stat. ch. 13D, a Director shall be allowed to participate in meetings, count towards the quorum, and vote on Task Force matters if the Director is participating in the meeting by and through a videoconferencing application, e.g., Teams or Zoom. The Board will exercise reasonable efforts to develop and deploy rules and processes related to scheduling and conducting meetings, including record-keeping and reporting as necessary. 6.Powers and Duties of the Task Force Commander 6.1. The Task Force Commander will direct investigative/law enforcement activities; priority may be given to case investigations that directly impact jurisdictions represented by a Member. 6.2. While assigned to the Task Force, all personnel shall be under the direct supervision and control of the Task Force Commander, who shall be responsible for performing, at least, the following duties: a.scheduling assigned personnel; b.providing input on employee evaluations, if requested; and c.allocating overtime work, if necessary. 6.3. The Task Force Commander shall cooperate with other federal, state, and local law enforcement agencies to accomplish the purpose for which the Task Force is organized. 7.Insurance, Indemnification, and Liability 7.1. The Task Force will maintain liability coverage with the League of Minnesota City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 17 Cities Insurance Trust with a limit of at least $2,000,000 per occurrence, under standard LMCIT liability coverage forms. Alternatively, the Task Force may maintain equivalent private liability insurance coverage. Such coverage may be provided through separate policies for commercial general liability and law enforcement liability. Such private liability insurance policies must comply with the following requirements: •Each policy must have a limit of at least $2 million per occurrence. If the policy contains a general aggregate limit, the general aggregate limit must not be less than $2,000,000. •The CGL insurance must cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury, and contractually-assumed liability. •Each Member and each Member's officers, employees, and volunteers, must be named as additional covered parties on each policy for all claims arising from Task Force activities or operations. 7.2. The Task Force may in its discretion procure coverage for auto liability and damage to or loss of property used exclusively by/for the Task Force. 7.3. If the Task Force at any time hires employees, it will immediately acquire and maintain workers' compensation coverage to the extent required under law. Except as expressly set forth herein, the Task Force shall defend and indemnify its Members for any liability claims arising from Task Force activities or operations, and decisions of the Task Force Board. Nothing in this Agreement shall constitute a Member’s waiver of the statutory limits on liability set forth in applicable law, including but not limited to Minnesota Statutes Chapter 466, or a waiver of any available immunities or defenses, and the limits of liability under applicable law for some or all of the parties may not be added together to determine the maximum amount of liability for any party. For the avoidance of doubt, the Task Force is considered a single governmental unit for purposes of total liability for damages pursuant to Minn. Stat. § 471.59, subd. 1a(b). 7.4. Nothing herein shall be construed to provide insurance coverage or indemnification to any Agent, officer, employee, or volunteer for any act or omission for which the individual is guilty of malfeasance in office, willful neglect of duty, or bad faith. 7.5. Any excess or uninsured liability shall be borne equally by all the Members, but this does not include the liability of any individual officer, employee, or volunteer which arises from his or her own malfeasance, willful neglect of duty, or bad faith which will be, as among the Members, the sole responsibility of the Member associated with the individual. City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 18 7.6. Except as expressly provided herein, each Member shall be responsible for injuries to or death of its own Agents or other personnel assigned to the Task Force. Each Member will maintain workers' compensation insurance or self- insurance coverage, covering its own Agents and personnel while they are assigned to the Task Force or are otherwise participating in or assisting with Task Force operations or activities. Each Member waives the right to, and agrees that it will not, bring any claim or suit against the Task Force or any other Member for any workers' compensation benefits paid, due, or owing to its own Agents, personnel, or their dependents, that arise out of participation in or assistance with Task Force operations or activities, even if the injuries were caused wholly or partially by the negligence of any other Member or its officers, employees, or volunteers. 7.7. Each Member shall be responsible for damages to or loss of its own equipment. Each Member waives the right to, and agrees that it will not, bring any claim or suit against the Task Force or any other Member or request indemnification for damages to or loss of its equipment arising out of participation in or assistance with Task Force operations or activities, even if the damages or losses were caused wholly or partially by the negligence of any other Members or its officers, employees, or volunteers. 7.8. All insurance policies and certificates required under this Agreement shall be open to inspection by any Member upon request. 8. Finances 8.1 During any time that Hennepin County is a Member of the Task Force, the Hennepin County Sheriff’s Office (“HCSO”) shall serve as sole administrator of all Task Force funds (“Administrator”). If Hennepin County withdraws from the Task Force, the Board shall appoint a new Administrator. 8.2 The Administrator is authorized to act as Task Force fiduciary for all applicable purposes, including but not limited to participating in equitable (forfeiture) sharing programs, receiving and holding funds on behalf of the Task Force, and earmarking funds for use in support of the Task Force’s operations. 8.3 The Administrator shall perform all tasks hereunder in accordance with applicable law and standard accounting practices and procedures. 8.4 The Administrator is authorized to and shall: (i) receive all funds for deposit; (ii) make disbursements therefrom for Task Force purposes subject to Board approval; (iii) maintain current and accurate records of all obligations and expenditures of Task Force funds; and (v) maintain all records for a period of not less than six years or longer periods if required by law. 8.5 Subject to the provisions herein, Task Force operations will be financed from grants, forfeitures, funds voluntarily contributed by any Member, and other source authorized by City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 19 law. 8.6. Members will provide Agents for the Task Force but will not otherwise be required to provide funds without the prior amendment of this Agreement approved by the governing bodies of all Members, or their designees. 8.7. Additionally, the Administrator shall cause to be made an annual audit of the books and accounts of the Task Force and shall make and file a report to the Board - which report shall include, at least, the following information: a.the financial condition of the Task Force; b.the status of all Task Force projects; c.the business transacted by the Task Force; d.a Financial Activity Report System (FARS) Report; e.quarterly financial report; and f.other matters which affect the interests of the Task Force. 8.8. The Task Force's books, reports, and records shall be open to inspection by its Members and the state auditor at all reasonable times. 8.9. Except as expressly approved by the Board, the Task Force may not incur obligations or approve contracts that extend beyond a prudent and manageable time-frame, acknowledging the term of the Task Force and the provisions herein for Member withdrawal or Task Force termination, or which will require the expenditure of funds in excess of funds available. 8.10. The Board shall approve an annual operating budget for the Task Force no later than September 1st of each calendar year. The Board may amend the budget as necessary. 8.11. The Task Force's funds may be expended by the Board in accordance with this Agreement in a manner determined by the Board. In no event shall there be an expenditure of Task Force funds except per the approved budget. 8.12. Notwithstanding duly entered contracts as authorized herein, the Board may not incur debts. 9.Agents. 9.1. Unless the Board provides prior approval, each Member shall assign at least one (1) experienced, licensed peace officer/deputy to serve on the Task Force (an ”Agent”). Agents shall be licensed pursuant to Minnesota Statutes, §626.84, subd. l, and shall have a minimum of one (1) year prior experience in law enforcement. 9.2. Each Agent must be assigned to the Task Force on a full-time basis for at least one year unless he/she is reassigned by the Agent’s Director. 9.3. As directed by the Task Force Commander, Agents will be responsible for investigation, including intelligence management, case development, case City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 20 charging, and other law enforcement duties. Agents may also assist other Agents in performing hereunder. Agents will work cooperatively with assisting agencies. Agents and other assigned officers acting under this Agreement in the jurisdiction of another party to this Agreement are acting in the line of duty and in the course of employment and are authorized to exercise the powers of a peace officer therein. 9.4. Members acknowledge that it is their sole responsibility to compensate all personnel performing any services for the Task Force, including but not limited to paying salary and benefits. Benefits may include, but are not limited to, workers’ compensation, worker’s compensation insurance, health care, disability insurance, life insurance, re-employment insurance, FICA, Medicare, and PERA. 9.5. All personnel assigned to the Task Force shall comply with rules of conduct prescribed by the Task Force. 9.6. The Task Force Commander, or a designee, shall refer disciplinary matters involving any Agent to the respective Agent’s Director for investigation and disposition unless, based on the judgment of the Task Force Commander/designee, a particular matter represents grounds for the issuance of a criminal complaint, in which case the matter shall be referred directly to an external law enforcement agency for investigation provided the Director of the assigning agency, the Task Force Commander, and at least one other Director are notified in advance thereof. 9.7. At no cost to the Task Force, each Member shall furnish their Agents with equipment necessary to complete their duties, which may include a weapon, ballistic vests and other protective equipment, a vehicle, and a computer. 9.8. Unless the Board directs otherwise, clerical assistance will be furnished by Members at no additional cost to the Task Force. 9.9. All personnel and computer networks performing Task Force functions shall be CJIS certified. 10.Forfeiture, Seizures and Fines. 10.1 Pursuant to applicable law, the Task Force may gain rights in or otherwise acquire property subject to forfeiture. The money or proceeds from the sale of forfeited property after payment of seizure, storage, forfeiture and sale expenses and satisfaction of valid liens against forfeited property shall be distributed in accordance with Task Force process and applicable law, including without limitation Minnesota Statutes § 609.5315. 10.2 Seizures/forfeitures eligible for the Department of Justice’s Asset Forfeiture Program (the “Program”) shall be subject to all Program rules and requirements, as they may be amended from time to time. City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 21 10.3 When a distribution is to be made and unless the Board directs otherwise, forfeiture monies and proceeds generated by the Task Force shall be distributed in equal shares to the then participating Members of the Task Force at the time of distribution after deduction of all costs and expenses herein stated. The receipt and disbursement of forfeiture sale proceeds shall be referenced in the Administrator’s quarterly Task Force financial report. 11.Headquarters. The Task Force headquarters shall be in a locations/facilities approved by the Board. As necessary, the Board may approve payment of rent, utilities, and other costs associated therewith. 12.Additional Members, Withdrawal from Membership, and Task Force Termination 12.1. Any governmental unit that employs its own law enforcement agency and shares a common geographical boundary with any Member may join the Task Force and become a Member upon the following: (i) approval and execution of a copy of this Agreement by such governmental unit; and (ii) approval by the Directors. 12.2. In any case in which a governmental unit joins the Task Force pursuant to paragraph 12.1, contributions by and reimbursement to such new Member shall be equitably determined and adjusted by the Board to reflect the participation by that Member. 12.3. Except as otherwise set forth herein, any Member, upon ninety (90) days' written notice to all Members, may withdraw and cancel its participation in this Agreement. 12.4. If a Member fails to assign an Agent for twelve (12) consecutive months, the Board may notify the Member of the default. If the Member fails to assign an Agent within six (6) months of the notice, the Board may involuntarily terminate the Member’s participation in the Task Force. 12.5. Except for distributions expressly required by law, (i) withdrawing Members; and (ii) Members terminated for failure to assign an Agent, are not entitled to any distribution. However, the Board may, in its sole discretion and without participation of the Member in question, approve an equitable distribution adjusted to reflect that Member’s contributions and participations as well as other relevant factors. 12.6. The Members may, by and through action of a majority of the Board, abolish the Task Force at any time. Thereafter, the Task Force shall continue in full force and effect until such time as all matters, including law enforcement matters and Task Force financial matters, are resolved and concluded to the satisfaction of the Board. During such time, Members will not be allowed to withdraw/cancel; all City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 22 Members shall remain bound and obligated to the provisions in this Agreement. 12.7. Upon expiration or termination of the Task Force and in accordance with applicable law and the provisions herein, all property and funds owned or held by the Task Force or by Member agencies on behalf of the Task Force shall be distributed, or sold with the proceeds distributed, in equal shares to the then participating Members of the Task Force at the time of dissolution, after deduction of all costs and expenses, unless the Board directs otherwise. Unless directed otherwise by the Board, any personal property shall be returned to the owning/contributing Member. 12.8. Notwithstanding the foregoing and unless otherwise permitted by applicable law, funds received by the Administrator as fiduciary for the Task Force from the Department of Justice’s Asset Forfeiture Program shall be disposed of in accordance with applicable law, which may include returning funds to the Department of Justice. 13.State and Local Assistance for Narcotics Control Program. 13.1. A Member, acting on behalf of the Task Force and its Members, may apply for Federal, state, or local narcotics enforcement. The applying Member agency shall be the "authorized official", as defined in the general policies and procedures for the program. 14.Media 14.1. Unless the Board otherwise agrees, HCSO or its designee shall be responsible for all media coverage of Task Force activities, including the dissemination of all press releases. 15.Evidence 15.1. Evidence/property seized in accordance with performance hereunder shall be inventoried and stored at a secure law enforcement facility approved by the Task Force Commander. 16.General Provisions 16.1. Nothing herein is intended or should be construed in any manner as creating or establishing the relationship of partners between the parties hereto or as constituting one of the Members as the agent, representative or employee of another Member for any purpose or in any manner whatsoever. Personnel assigned to the Task Force by one of the Members shall not be considered temporary or permanent employees of any other Member or the Task Force itself for any purpose whatsoever, or be entitled to tenure rights or any rights or benefits including but not limited to workers compensation, re-employment insurance, medical/hospital care, sick/vacation leave, severance pay, PERA, or any other right or benefit of another Member. 16.2. This Agreement is intended to replace and supersede the Amended Agreement, as defined in the recitals above. City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 23 IN WITNESS WHEREOF, the undersigned, by action of their governing bodies, have caused this Agreement to be executed in accordance with the authority of Minnesota Statutes § 471.59. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 24 SOUTH LAKE MINNETONKA POLICE DEPARTMENT City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 25 CITY OF HOPKINS City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 26 CITY OF ORONO City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 27 CITY OF EDEN PRARIE City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 28 CITY OF MEDINA City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 29 CITY OF MINNETRISTA City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 30 WEST HENNEPIN DEPARTMENT OF PUBLIC SAFETY City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 31 CITY OF EDINA City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 32 CITY OF MINNETONKA City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 33 CITY OF SAINT LOUIS PARK City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 34 HENNEPIN COUNTY BOARD AUTHORIZATION Reviewed for COUNTY by the County Attorney's Office: {{Sig_es_:signer5:signature}} {{userstamp5_es_:signer5:stamp}} Reviewed for COUNTY by: {{Sig_es_:signer6:signature}} {{userstamp6_es_:signer6:stamp}} Board Resolution No: {{*BoardResolution_es_:signer6:brs}} Document Assembled by: {{Sig_es_:signer1:signature}} {{userstamp1_es_:signer1:stamp}} {{Exh_es_:signer1:attachment:label("Attachments")}} COUNTY OF HENNEPIN STATE OF MINNESOTA By: {{Sig_es_:signer8:signature}} {{userstamp8_es_:signer8:stamp}} ATTEST: {{Sig_es_:signer9:signature}} {{userstamp9_es_:signer9:stamp}} By: {{Sig_es_:signer7:signature}} {{userstamp7_es_:signer7:stamp}} City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 35 West Metro Drug Task Force 2025 Updated JPA 2025 WEST METRO DRUG TASK FORCE UPDATED JPA CITY OF ST. LOUIS PARK By: __________________________ Nadia Mohamed Its: Mayor By: __________________________ Kim Keller Its: City Manager By: __________________________ Bryan Kruelle Its: Chief of Police City council meeting of May 19, 2025 (Item No. 5e) Title: Resolution approving updated West Metro Drug Task Force joint powers agreement Page 36 Meeting: City council Meeting date: May 19, 2025 Public hearing: 6a Executive summary Title: Public hearing for intoxicating liquor license for The Taco Shop LLC dba The Taco Shop Recommended action: •Mayor to open public hearing, take public testimony, and close public hearing. •Motion to approve application from The Taco Shop LLC dba The Taco Shop for an on-sale intoxicating liquor license for the premises at 5618 West 36th Street. Policy consideration: Does the applicant meet the requirements for issuance of an on-sale intoxicating liquor license? Summary: The city received an application from The Taco Shop LLC dba The Taco Shop for an on-sale intoxicating liquor license with Sunday sales for the premises located at 5618 West 36th Street. The Taco Shop has been open since 2023 and is now applying to expand their onsite operations to add alcoholic beverages to their menu. The St. Louis Park premises will consist of approximately 3,380 square feet with an indoor-only seating capacity of 38. The sole owner of The Taco Shop is Angel Ruelas Castellano, who will also serve as on-site manager. The application meets the requirements of the zoning and building divisions. The police department completed a background investigation, and nothing was discovered that would warrant denial of the license. The complete application is on file in the city clerk’s office. The required notice of the public hearing was published May 8, 2025. If approved, the license will not be issued until all requirements have been met with the city, Hennepin County, and the State Alcohol and Gambling Enforcement Division. Financial or budget considerations: Fees for this applicant include $500 for the police background investigation and $7,458.33 for the prorated license fees (on-sale intoxicating and Sunday sales). Strategic priority consideration: Not applicable. Supporting documents: None. Prepared by: Amanda Scott-Lerdal, deputy city clerk Reviewed by: Melissa Kennedy, city clerk Approved by: Kim Keller, city manager Meeting: Special study session Meeting date: May 19, 2025 Discussion item: 1 Executive summary Title: Environmental Stewardship system kick-off Recommended action: None. The purpose of this report is to provide an overview and framework of the planned discussions in the study sessions included in the environmental stewardship system. Policy consideration: Throughout the discussions in this system, the council will be asked specific policy questions relating to the topic discussed. Summary: Over the coming weeks, council will hold a series of discussions and staff will provide information regarding sustainability programs, projects and policies. There will be several written reports to provide context and information on current activities, programs and policies. This report serves as grounding for all the discussions and includes a broad overview of activity and frameworks used when considering environmental stewardship. The foundation for staff to develop projects and implement programs are the plans and policies approved by city council, including the Climate Action Plan. Funds for community-facing sustainability incentive programs come from the Climate Investment Fund. Financial or budget considerations: Funds are budgeted in the 2025 budget for a variety of programs related to environmental stewardship. A discussion about future funding for the strategies needed to reach Climate Action Plan goals will be presented at the meeting on June 9, 2025. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. 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: Discussion May 28, 2024 study session agenda Appendix A: 2025 sustainability incentive programs Appendix B: Other 2025 sustainability initiatives Prepared by: Emily Ziring, sustainability manager Reviewed by: Brian Hoffman, building and energy director Approved by: Kim Keller, city manager Study session meeting of May 19, 2025 (Item No. 1) Page 2 Title: Environmental Stewardship system kick-off Discussion Background: Climate action work in St. Louis Park Sustainability division staff within the building and energy department design and administer programs and projects identified in the Climate Action Plan (CAP) and track community greenhouse gas emissions over time to measure progress. Those programs and projects focus primarily on buildings and energy (including transportation electrification), as building emissions alone comprise over 60% of the greenhouse gas emissions from the city and because most of the initiatives designed to address transportation and solid waste emissions by 2030 are handled by staff in engineering and in public works. For background on environmental stewardship work within other city departments, please refer to the May 28, 2024 study session agenda. Climate Action Plan and Climate Investment Fund In February 2018, the city council formally adopted the city’s Climate Action Plan. The goals of the plan are some of the most ambitious of any city in Minnesota. The biggest bowl outcome of the plan is for the community to achieve total carbon neutrality by 2040, with seven important midterm goals set for 2030. The CAP is a climate mitigation plan, meaning that staff focus on actions to reduce and stabilize the sources or enhance the sinks (sponges) of greenhouse gases, e.g., energy efficiency, renewable energy, low-carbon transportation, organics recycling, and tree planting. Given that the effects of climate change are underway now, staff have also elected to devote a portion of their efforts towards climate adaptation—the process of adjustment to current or expected climate and its effects—and climate resilience, the ability for social, economic and ecosystems to prepare and plan for, absorb and recover from sudden adverse events. Since 2018, the city has increased its investment in the implementation of the CAP including the reorganization of the inspections department into the building & energy department and the creation of a sustainability division that includes a sustainability manager and two sustainability specialists. In 2021, the council voted to create the Climate Investment Fund (CIF), a funding mechanism for a portfolio of ongoing programs available for residents and businesses, helping to leverage private investment dollars when owners are ready to make improvements that reduce carbon emissions and lower energy costs. The fund was established with $500,000 in available dollars from the unrestricted fund balance from the 2020 operating budget and supplemented in 2023 with $300,000 from the development fund. It is used by departments across the city enterprise to fund existing and future cost sharing incentive programs tied to the goals and strategies within the CAP. In addition to the staff resources and the CIF, the city has invested in its own infrastructure and continues to do so using the capital improvement process. Study session meeting of May 19, 2025 (Item No. 1) Page 3 Title: Environmental Stewardship system kick-off Current sustainability programs A detailed list of current sustainability programs and projects can be found in Appendix A. Community-facing incentive programs are funded using the Climate Investment Fund. Inflation Reduction Act provisions, including tax credits and direct-to-consumer rebates, as well as new state incentives, can offset some city incentives; if and when these provisions are rolled out (the status of the federal provisions is currently unknown), city incentive amounts may be adjusted. Appendix A details progress against CAP targets at a strategy (granular) level. For a midterm goal level view, please see the Environmental Stewardship dashboard. Due to data availability limitations, most 2024 data will not be displayed until early 2026. All sustainability programs integrate an environmental justice element, and staff works to repair past injustices using a “targeted universalism” approach to program design. Under the targeted universalism framework, staff set citywide program goals and offer an environmental justice rate to offer more support to those residents most adversely impacted by climate change. Present considerations: Working on climate change—and more specifically, climate and environmental justice—at the local level is more important than ever. Climate trends The hottest year on record globally was 2024, which was also the first year where the average global temperature was 1.5 degrees C higher than it was in the pre-industrial era (the Paris Agreement threshold above which the most extreme and irreversible effects of climate change would occur). From 1970 through 2021, average daily winter low temperatures rose more than 15 times faster than average daily summer high temperatures in Minnesota, and the frequencies of -25 degree F readings in southern Minnesota have fallen by up to 90%. Average homeowners’ insurance premiums in Minnesota have increased by 39% over the past seven years (15% in 2023 alone) due primarily to longer and more severe storm seasons caused by rising global temperatures. All across the globe, vulnerable communities that have historically contributed the least to affect climate change are disproportionately affected. It is with this urgency in mind that staff work to advance climate action. National shifts The passage of the 2021 Infrastructure Investment and Jobs Act (IIJA) and the 2022 Inflation Reduction Act (IRA) at the federal level ushered in a new era for climate action, providing funding, financing, technical assistance, and much-needed economic certainty for building, clean energy, and transportation projects nationwide. Rules requiring that a certain percentage of these funds be targeted towards low-income and disadvantaged communities (LIDAC) were embedded within all of the programs implemented under these laws. Unfortunately, the current federal administration has frozen or rescinded many of the climate and environmental Study session meeting of May 19, 2025 (Item No. 1) Page 4 Title: Environmental Stewardship system kick-off justice-related programs created under these two laws. (This will be laid out in more detail in the June 9, 2025 Climate Action Plan cost discussion.) Further, an April 8, 2025 Executive Order directs the Attorney General to “prioritize the identification of any…State laws [defined here as state and local, collectively] purporting to address ‘climate change’ or involving ‘environmental, social, and governance’ initiatives, ‘environmental justice,’ carbon or ‘greenhouse gas’ emissions, and funds to collect carbon penalties or carbon taxes.” Cities fill the void With the federal government actively working to support fossil fuel consumption, the state legislature predicted not to advance climate-related policies this session, and with much of the federal climate funding to the state of Minnesota frozen, it is up to cities to carry the climate action torch. While some may question how much of an effect on global climate change a single city can have (an understandable question), this perspective is flawed; cities borrow ideas from one another, causing chain reactions that magnify the impact of the policies and programs they create. Amy Turner of the Sabin Center for Climate Change Law at Columbia Law School wrote in a June 2024 blog post, “Cities’ autonomy and ambition propel them to legislate when Congress is logjammed, regulate when the EPA is legally constrained, and implement when the federal government is too unwieldy to make a real difference in communities on the ground. It is time to move on from the outdated notion that they play only a limited role in the federalist system; on climate, they are the leaders.” It is true that national governments and companies are the biggest contributors to the climate crisis and need to be held accountable for their negative contributions or inaction—but individual choices also matter, and those can spark change in communities faster than regulatory actions can coerce improvements in corporate practices (especially now, when deregulation is far more likely). There are now over 40 cities in Minnesota with climate action, climate adaptation, or energy action plans; over one-third of Minnesotans live in a county or a city with a stand-alone climate action plan. Full-time sustainability staff implement those plans in dozens of cities and counties. Further, many city-level elected officials—including in St. Louis Park—recognized the need for cities to fill the climate action void and formed the Minnesota Cities Climate Coalition, a nonpartisan statewide group of local elected officials advancing local climate and clean energy goals by influencing state policy and sharing best practices. This is mirrored at the national level through the bipartisan nonprofit Climate Mayors (of which St. Louis Park is one of nearly 350 member cities), which formed a Climate, Affordability and Prosperity Working Group to promote the “kitchen table” sustainability programs in their cities that lower utility costs and improve life for residents by mitigating the impacts of increased temperatures. Equity and climate justice Prosperity for everyone is a goal of environmental justice, which is why climate action and environmental programs and policies within the city do not fall neatly within the bounds of the environmental stewardship strategic priority. City staff design and implement climate action and environmental programs using environmental justice criteria, but staff also advocate at the state for improvements to energy assistance programs for low-income residents; analyze demographic and climate data to install public electric vehicle (EV) chargers in EV charging Study session meeting of May 19, 2025 (Item No. 1) Page 5 Title: Environmental Stewardship system kick-off deserts; explore policy ideas to fix incentive misalignment in rental properties for energy and indoor air quality upgrades; apply for and manage grants to reduce urban heat island in neighborhoods with high bus ridership and low tree canopy; organizing family bike rides in LIDAC neighborhoods to show that cycling is a way to get around the city comfortably, reliably, safely—and without air pollution; and more. Effective climate action requires acknowledging and working to remedy racial injustices. Looking ahead As climate change accelerates, new technologies emerge, and concerns about environmental injustices grow, programs, policies and projects to further environmental stewardship are created, amended and rescinded. Staff in the divisions and departments that create and manage these programs and their effects have information to share with council and some policy questions they would like to explore. Next steps: Throughout the discussions in this system, council will be asked to provide policy direction on various environmental stewardship programs. The dates outlined in the following table are tentative and dependent on discussion outcomes from prior study sessions. Topic Date Description May 19, 2025 Environment and Sustainability Commission (ESC) annual meeting with council Discussion of the ESC’s 2025 work plan May 19, 2025 US Dept. of Energy Better Climate Challenge Report on the city’s participation in the US Department of Energy Better Climate Challenge June 9, 2025 Park and open space update Report on current and projected use of land designated park and open space June 9, 2025 Climate Action Plan cost update Discussion of projected funding required to meet Climate Action Plan goals June 9, 2025 CAP update planning Report on plans to update the Climate Action Plan June 9, 2025 Summary report N/A 1 Appendix A: 2025 sustainability incentive programs Community-facing incentive programs Program name: Climate Champions (with solar bonus) CAP goal(s): 1, 2, 4 and 5 Description: Energy assessment, cost share, and recognition program for property owners who elect to participate; solar bonus incentive for those who first reach energy efficiency targets Sectors: Business (current), multifamily (current), organizations (current), homes (current), and large commercial & industrial. Solar bonus for those who complete building energy projects. Equity component: Larger cost share amounts for properties in environmental justice areas of concern or for homeowners who identify as low income, 65 years or older, BIPOC, veteran, or disabled Risks: Success depends on appetite of property owners (including rental property owners) to invest time and money in energy efficiency 2024 results*: CAP goal and strategy CAP strategies’ annual target 2024 results Notes Goal 1 and Goal 2, strategy 1 20 commercial buildings retrofit (8 large and 12 small/mid-size) 15 businesses received energy assessments, and 5 completed energy projects, collectively saving $40,421 and 280 tons of GHG emissions annually. Four multifamily properties received energy assessments, and two completed projects, collectively saving an estimated $54,517 and 252 tons of GHG emissions annually. Two organizations completed energy projects, collectively saving $10,789 and 20.4 tons of GHG emissions annually. Goal 4, strategy 3 900 single-family households complete retrofits/weatherization 246 households received energy assessments, 98 households completed Home Energy Squad visits hit a new record (246) in 2024 Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 6 2 applications and 79 households completed energy projects. 41 households completed insulation projects. Goal 4, strategy 4 1,782 households replace electrical equipment and 720 households replace natural gas equipment with high efficiency 29 households replaced natural gas equipment with high efficiency air source heat pumps or heat pump water heaters. No data source for gauging electrical equipment replacements; staff is discouraging residents from installing new stand-alone natural gas equipment. Goal 5, strategy 5 3.7 megawatts of rooftop solar installed Six residents qualified for the Climate Champions solar bonus, collectively installing over 50 kilowatts of rooftop solar. Despite a seven-fold increase in rooftop solar since 2019, the total capacity of rooftop solar citywide is 4.12 MW (11% of the total goal 2030). 0 5 10 15 20 25 2021 2022 2023 2024 2025 2026 Pa r t i c i p a n t s Year Climate Champions non-residential programs: Historic and projected participation Climate Champions for businesses Climate Champions for organizations Climate Champions for multifamily Solar bonus Climate Champions for large commercial and industrial Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 7 3 Program name: Building Operations Champions CAP goal(s): 1 and 2 Description: Cost share for commercial property owners who pay for their building operators to attend Building Operator Certification (BOC) level 1 or multifamily training and pass the certification exam. The cost share and utility rebates bring down the cost from $1,200 to $50- 100. Sectors: Commercial & industriaI, multifamily Equity component: Larger cost share amounts for trainees from traditionally underrepresented groups Risks: Success depends on appetite of commercial property owners to invest time and money in training, and availability of facilities maintenance workforce CAP strategies’ annual target: 38 commercial buildings engaged in building operations BMPs 2024 results: None Program name: Shade SLP and full-service tree planting (in coordination with Parks & Recreation) CAP goal(s): Advanced strategies Description: Tree planting to capture and store carbon dioxide, enhancing property values and aesthetics and reducing owners’ utility costs through increased shading and reduced flooding Sectors: All 0 50 100 150 200 250 300 350 400 2021 2022 2023 2024 2025 2026 Pa r t i c i p a n t s Year Climate Champions for homes: Historic and projected participation Energy assessments Applicants Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 8 4 Equity component: Larger cost share amounts for properties located where high surface temps and low tree canopy overlap Risks: Success depends on property owners desire for additional trees and investment in tree maintenance CAP strategies’ annual target: N/A (no targets listed for Advanced Strategies); staff set goal of additional 300 trees, doubling the annual number planted on private property 2024 results: 35 trees planted on private property (this number is a decrease from 2023 because many residents received trees through the ReLeaf grant funding) Program name: Tree treatment cost share (in coordination with Parks & Recreation) CAP goal(s): Advanced strategies Description: Treatment of diseased and infested trees to preserve them in order to store carbon dioxide, enhancing property values and aesthetics and reducing owners’ utility costs through increased shading and reduced flooding. The new program offers cost sharing on tree treatments for oak wilt, Dutch elm, and two-lined chestnut borer on privately-owned trees. Sectors: All Equity component: Larger cost share amounts for homeowners who identify as low income, 65 years or older, BIPOC, veteran, or disabled Risks: Success depends on property owners desire for tree preservation and investment in long- term tree maintenance CAP strategies’ annual target: N/A (no targets listed for Advanced Strategies) 2024 results: 38 residents were partially reimbursed for treating 86 trees. Program name: Electrify Everything CAP goal(s): Advanced strategies Description: This program is jointly administered by a cohort of metro-area cities (Minneapolis, St. Louis Park, Edina and Eden Prairie). The cohort educates the public about electrification readiness and technologies, as well as provide a list of trained contractors for each type of technology. Cities also partner on outreach and engagement strategies to drive residents to the website. Residents who decide to weatherize, electrify their heating/cooling or water heating will be directed to the Climate Champions for homes program to explore cost share incentives. Sectors: Multifamily, 1-4 unit residential Equity component: Low Income/Disadvantaged Communities (LIDAC) are the primary target of outreach, but interest comes from all demographic groups Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 9 5 Risks: Success depends on multiple external factors, such as property owner comfort with technology, cost of electricity, appetite of property owners to invest time and money in fuel switching, contractor familiarity with technology, availability of equipment CAP strategies’ annual target: N/A (no targets listed for Advanced Strategies) Program name: Depave SLP (in coordination with Engineering, Community Development, and Parks & Recreation) CAP goal(s): Advanced strategies Description: Offers cost share for commercial property owners to turn unused parking spaces into green space, lowering surface temperatures, improving air quality and reducing stormwater runoff Sectors: Commercial & industrial, multifamily Equity component: Larger cost share for areas experiencing higher surface temperatures (urban heat island) Risks: Success depends on property owners’ willingness to demolish parking spaces CAP strategies’ annual target: N/A (no targets listed for Advanced Strategies) 2024 results: 1 private parking lot partially depaved; publicity forthcoming 0 20 40 60 80 100 120 140 160 180 2022 2023 2024 2025 2026 Pa r t i c i p a n t s Year Tree programs and Depave SLP: Historic and projected participation Shade SLP Depave SLP Full-service tree planting Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 10 6 Environmental Justice participation rates With the exception of Depave SLP, all programs have had strong participation from environmental justice communities within the city. Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 11 7 Appendix B: Other 2025 sustainability initiatives Other sustainability projects, programs and policies under development or consideration •Tracking notices of funding opportunity and completing applications for state and federal grants (see next page) •Idling reduction fleet policy and Idle-Free SLP public educational campaign •Climate equity map and Environmental Stewardship dashboard •Energy assistance programs (promoting, coordinating providers and advocating for improvements) •Membership in various work groups, committees, coalitions and organizations, including: •Midcontinent Independent System Operator (MISO) Cities and Communities Coalition •Hennepin County climate resiliency and tree policy work groups •MnDOT Local Agency Vehicle Miles Traveled work group •University of Minnesota Environment and Energy in Transportation Research Council •CEE Heat Pump Market Advisory Committee •Minnesota Community Energy Network •Urban Sustainability Directors’ Network •Climate Mayors •Minnesota GreenStep Cities and Tribal Communities •EPA Green Power Partnership These projects, programs and policies are not incentive-based and therefore not funded from the CIF. Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 12 8 Grant applications summary Staff routinely seek out grant funding opportunities from partners at the federal and state level and from foundations and will add additional programs or projects to the work plan or supplement funding for planned programs as opportunities arise. A summary of recent grant applications and their disposition is below. PROGRAM NAME FUNDING ORGANIZATION PURPOSE AND PROJECT FUNDING SOUGHT STATUS EECBG (Energy Efficiency Community Block Grant) US Dept of Energy/IIJA Purpose: Assist eligible local governments, states and territories, and Indian tribes in implementing strategies to reduce fossil fuel emissions. Project: Staff applied for funds to replace aging high-bay garage doors at the MSC with high-speed garage doors to trap more heat during the winter. $114,140 (formula funds) Project completed. Awaiting final review and reimbursement. Local climate action grant program Minnesota Pollution Control Agency Purpose: Develop or implement plans of action that enable local jurisdictions to adapt to extreme weather events and a changing climate (i.e., already becoming warmer and wetter with more damaging rains and cold weather warming; and expected to have more extreme heat and drought in the future), and/or to reduce the local jurisdiction’s contributions to the causes of climate change. Project: Public level 2 chargers at Aquila Park $20,000 (required 50% match) Project completed. Awaiting final review and reimbursement. Energy Futures planning grant US Dept of Energy Purpose: Support local, state, and Tribal government-led partnership efforts that will help scale local strategies that increase resiliency and improve access to affordable clean energy. Project (as coalition member): City of Saint Paul (lead) application for modeling pathways to get IRA funds into LIDAC communities $500,000 Awarded to Saint Paul for coalition, but frozen. Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 13 9 Implementation Grants for Community Resilience Minnesota Pollution Control Agency Purpose: Provide an opportunity for communities to address publicly-owned assets that need to be installed, upgraded, or hardened for climate resilience and to protect public health during extreme weather and the ongoing impacts of Minnesota’s changing climate. Project: Shade structures at Aquila Park and Ainsworth Park $262,640 (requires 10% in kind match) Awarded, work to begin summer 2025. Geothermal Planning Grant Program Minnesota Department of Commerce Purpose: Provide financial assistance to eligible applicants to examine the technical and economic feasibility of installing geothermal energy systems. Project: Geothermal feasibility study at The Rec Center $150,000 Not awarded. Center for Heat Resilient Communities 2025- 2026 Cohort micro- fund The National Integrated Heat Health Information System (NIHHIS) Purpose: Support communities in determining the best locally-tailored strategies to advance heat resilience that are “shovel-ready” for investment. This opportunity will directly fund and support communities to create a roadmap for community heat resilience. Project: Heat resilience roadmap and related public engagement $10,000 Not awarded. Hennepin County was awarded and city staff was invited to participate in training sessions, however, the grant was rescinded after award. Great Lakes Environmental Justice Thriving Communities Grantmaking Program The Minneapolis Foundation (funding secured from the EPA) Purpose: Provide one-year grants of up to $150,000 for assessment and engagement efforts that increase understanding of the breadth, depth, or impact of local environmental or public health issues. The program’s goal is to lift up community-led innovation and strengthen community-based groups by breaking down barriers to federal funding. Project: Community engagement in the Aquila and Texa- Tonka neighborhoods $50,000 Submitted. Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 14 10 Minnesota Solar on Public Buildings Program Minnesota Department of Commerce Purpose: Provide grants to local governments in Xcel Energy Electric Service Territory to build solar energy generating systems on or adjacent to publicly owned and operated buildings. Project: Solar array expansion on The Rec Center (above offices only due to grant constraints) $72,000 Not awarded. Additionally, within the IRA, the Clean Electricity Investment Tax Credit has been extended and modified so that non-tax-paying entities may receive (via “direct pay”) the financial benefit of the tax credits if they meet requirements for domestically produced construction materials. For the 2024 filing year for 2023 projects, finance and sustainability staff worked together to better understand IRS requirements and filed for direct pay for the solar panels on The Rec Center and for two electric fleet vehicles. This amounted to a direct payment of $119,486. This year staff plan to work together again to seek direct pay for the solar panels on Fire Station 1, the new electric vehicle charger at Aquila Park, and additional electric fleet vehicles. We are closely monitoring the future of direct pay given that the new administration has signaled they plan to ask Congress to repeal it. Special study session meeting of May 19, 2025 (Item No. 1) Title: Environmental Stewardship system kick-off Page 15 Meeting: Special study session Meeting date: May 19, 2025 Discussion item: 2 Executive summary Title: Boards and commissions check-in with city council: Environment and Sustainability Commission Recommended action: None at this time. Policy consideration: None at this time. Summary: Based on guidance provided by city council members during the Feb. 3, 2025 special study session focused on establishing protocols for boards and commissions, it was decided to schedule regular check-ins between boards and commissions and the city council throughout the year. The May 2025 meeting will spotlight the Environment and Sustainability Commission (ESC), represented by the current chair, Eric Zweber. The staff liaison to the ESC is Emily Ziring, sustainability manager. The ESC is one of the five advisory boards and commissions whose purpose is to focus on guiding city initiatives by offering recommendations, collaborating with staff and council, fostering community engagement, and facilitating partnerships. Additionally, the ESC acts as a bridge between residents and the public for environmental and sustainability- related information. The discussion will cover an overview of the commission's approved work plan, including any completed tasks, ongoing projects and strategies for addressing unaddressed work plan items. Additionally, the discussion will include opportunities for council feedback, potential modifications or additions to the work plan, and any other relevant topics concerning the commission's activities. In June 2025, the boards and commissions check-in meeting is set to feature the Parks and Recreation Advisory Commission. Financial or budget considerations: None at this time. Strategic priority consideration: St. Louis Park is committed to creating opportunities to build social capital through community engagement. Supporting documents: Environment and Sustainability Commission bylaws ESC approved 2025 workplan ESC current roster Prepared by: Pat Coleman, community engagement coordinator Reviewed by: Cheyenne Brodeen, administrative services director Approved by: Kim Keller, city manager ENVIRONMENT AND SUSTAINABILITY COMMISSION St. Louis Park, Minnesota 08/07/2013 CURRENT BY-LAWS (adopted August 7, 2013) 1. PURPOSE The purpose of the Environment and Sustainability Commission: Sustainable SLP shall be to: a)Provide recommendations to advance city goals, policies, and programs. b)Provide advice and assistance to staff and council through collaboration. c)Provide leadership in engaging the community, encouraging relationships and partnerships with neighborhoods, special interest groups, religious institutions, business leaders, and other commissions. d)Serve as a conduit for environmental and sustainable information, topics, and direction to and from residents and the public. 2. DUTIES The Environment and Sustainability Commission: Sustainable SLP shall have the following powers and duties to: a)Advise the City Council with respect to environment and sustainability issues arising out of or in connection with the plans or operations of any city department or agency and recommend the adoption of such specific policies or actions as may be needed to enhance the city’s environmental stewardship. b)Elicit community feedback and direction, including direct engagement, social media, annual events and fairs, etc. c)Reach out to the full community as well as to special populations with communication and educational efforts related to the environment and sustainability. d)Establish work groups with at least one Commission member to focus on specific areas of interest, special projects, and ongoing concerns. Work group representation should be broadened to emphasize greater diversity, inclusiveness, and specific issue expertise with non-commission members from the general community. e)Submit to the City Council by April 1 of each year an annual report of the activities of the Commission during the previous year . Page 2 By-Laws of the Environment and Sustainability Commission: Sustainable SLP f)The Commission shall have such additional powers and duties as the City Council shall from time to time determine. 3. OFFICERS a)At its first or second meeting of each calendar year, the Commission shall elect from its membership a Chair and a Vice-Chair. Nomination of officers shall be made by the members of the Commission present at the annual organizational meeting, and the elections shall follow immediately thereafter. b)The Chair and Vice Chair positions shall rotate annually. A recording secretary shall be appointed by staff and need not be a member of the Commission. c)The Chair and Vice-Chair shall take office immediately following their election and shall hold office for a term of one year and until their successors are elected and assume office. d)The Chair shall preside at all meetings, appoint committees, and perform such other duties as may be ordered by the Commission. e)The Vice-Chair shall act in the capacity of the Chair in the absence of the Chair. In the event the office of the Chair becomes vacant, the Vice-Chair shall become Chair, and the Commission shall elect a successor to the office of Vice-Chair for the unexpired term. f)A Staff Liaison to the Commission shall be designated by the City Manager and shall be subject to the administrative rules and regulations of the city. The Staff Liaison may facilitate or assist in the meetings. The Staff Liaison is responsible for keeping the City Manager informed regarding the business of the Commission and shall communicate to the City Manager any problems or issues that may arise. The Staff Liaison shall also be responsible for assisting the Commission in considering their financial needs and, if deemed necessary by the Commission, shall request appropriate funding from the City Council through the annual budget process. 4. MEETINGS a)All regular and special meetings, records, and accounts shall be open to the public and conducted in accordance with the Minnesota Open Meeting Law. b)The annual organizational meeting of the Commission shall be the first or second regular meeting of the year, at which time elections will be held and the schedule for the following year’s regular meeting schedule will be considered. c)The Commission shall hold regular meetings on the first Wednesday of each month at 7:00 p.m., provided however, that when the day fixed for any regular meeting of the Commission falls upon any of the following holidays: Ash Wednesday, Chanukah, Christmas, Veterans Day, Independence Day, New Year's Day, Passover (first two nights), Rosh Hashanah, and Yom Kippur, such meeting shall be held at the same hour on the next succeeding Wednesday not a holiday. (For Chanukah, Christmas, Passover, Rosh Hashanah and Yom Kippur, the holiday includes the evening before the holiday.) All regular meetings of the Commission shall be held in the City Hall of the City or other Page 3 By-Laws of the Environment and Sustainability Commission: Sustainable SLP public building as noticed. The Commission may, by a majority vote, change the regular meeting dates for any reason, provided that proper public notice of the changed meeting is provided to the public. d) A quorum shall consist of a simple majority of the members eligible to vote on matters before the Commission. Without a quorum, the meeting cannot be opened, and Commission business or voting cannot be conducted. Passage of any matter before the Commission shall require the presence of a quorum and the affirmative vote of a majority of the quorum. e) Voting on regular motions shall be by voice and will be recorded by yeas and nays unless a roll call is requested by a member of the Commission. f) In all points not covered by these rules, the Commission shall be governed on its procedure by Sturgis Standard Code of Parliamentary Procedure. g) All meeting minutes, records and accounts shall be in writing, kept in accordance with MN Statute and Rules regarding preservation of public records and the MN Data Privacy Act. h) No member of the Commission shall discuss or vote on any question in which the member has a direct or indirect financial interest. i) If a member wishes to transmit information regarding the business of the Commission, the member should present it to the Staff Liaison for distribution to the other members. j) Any member who is unable to attend a scheduled meeting of the Commission may submit written comments pertaining to an item on the agenda to the Staff Liaison for distribution to the Commissioners prior to the meeting or at the meeting and may request that such comments be attached as an addendum to the minutes of the meeting.5. ORDER OF BUSINESS a)The order of business shall be as follows: Roll Call Approval of Minutes Unfinished Business New Business Communications Miscellaneous Adjournment b)Unless objection is made by motion of the Commission, the Presiding Officer may modify the foregoing order of business in order to accommodate citizens present or to expedite the business of the Commission. Page 4 By-Laws of the Environment and Sustainability Commission: Sustainable SLP c)Unless a reading of the Commission meeting minutes is requested by a member of the Commission, such minutes may be approved without reading if the secretary has previously furnished each member with a copy thereof. d)Unless there is objection from a member of the Commission, Staff or anyone in attendance at the meeting, Consent Items may be acted upon without discussion. e)The case before the Commission shall be presented in summary by staff or a designated member of the Commission, and parties in interest shall have privilege of the floor thereafter. In those instances where the matter is considered non- controversial and does not warrant a summary, the Presiding Officer may entertain a motion without presentation of the summary, unless an objection is expressed by anyone present. f)The Commission may postpone any case or continue any case for further study and information until the next regular meeting unless otherwise designated. g)Any person desiring to address the Commission shall first secure the permission of the Presiding Officer to do so. 6. ATTENDANCE AND PERFORMANCE OF DUTIES a)Regular attendance at meetings is a requirement for continued membership. Commission members are expected to attend regular and special commission meetings and assigned committee meetings. Planned absences communicated to the Commission Chair or committee task force chair in advance of the meeting will be deemed excused. Any other absence will be deemed unexcused. The Commission will approve and record the approval of all excused and unexcused absences. b)Council will be informed if a member receives three unexcused absences in any calendar year; if a member attends scheduled meetings irregularly; or if a member is frequently absent from scheduled meetings. Council may remove that member. 7.BY-LAWS AND RULES a)These by-laws are subject to the City Council’s Rules and Procedures for Boards and Commissions, amended by Resolution 12-069 on May 7, 2012, and Chapter 2, Administration, the St. Louis Park City Code. b)Written notice of proposed changes to the Environment and Sustainability: Sustainable SLP Commission By-Laws shall be provided to members thirty days prior to formal action by the Commission. These rules may be amended at any regular or special meeting by an affirmative vote of a majority of the entire membership. The City Council has thirty days to take action to modify the By-Laws or amendments approved by the Commission. Page 5 2025 work plan │ Environment and Sustainability Commission 1 Initiative name: Prepare for Climate Action Plan update Initiative type: ☒Staff support (review project, policy or program and provide feedback) ☐Independent research project ☐Gather community feedback ☐Lead community event Initiative origin: ☐Third party-initiated ☒Staff-initiated ☒Commission-initiated ☐Council-initiated Legally required (e.g. response to Legislative changes or Judicial decisions)? ☐Yes ☒No Commissioner lead(s) name(s): Shaina Ashare, Ryan Griffin, Ethan Kehrberg, Marisa Bayer If joint commission initiative, list other board or commission: Planning Commission Is this an established work group? (if applicable) ☐Yes ☒No but recommend new work group Initiative description: Discuss what, when and how the 2018 Climate Action Plan should be updated, and how to integrate the update into the comprehensive plan. •Review plan and highlight sections or initiatives to keep, remove and add in prep for update. •Recommend a timeline for updating the CAP. •Recommend a structure for updating the CAP: amend current CAP or rewrite? •Consider a community engagement plan. Strategic Priority: ☐ 1 ☒ 2 ☐ 3 ☐ 4 ☐ 5 ☐ N/A Deliverable: ☒ Research report ☐ Summary of community input ☐ Other ☐ N/A Target completion date: Q4 This section to be completed by staff: Council request (if applicable): ☐ Review and comment or reply ☐ Review and decide ☐ Informational only – no response needed Budget required: None beyond staff capacity Staff support required: New work group will require additional meetings outside of normal working hours. Anticipate 8-10 additional hours in 2025. Liaison comments: Supportive of this initiative and help from the work group. Page 6 2 Initiative name: Electrification event Initiative type: ☐Staff support (review project, policy or program and provide feedback) ☐Independent research project ☐Gather community feedback ☒Lead community event Initiative origin: ☐Third party-initiated ☐Staff-initiated ☒Commission-initiated ☐Council-initiated Legally required (e.g. response to Legislative changes or Judicial decisions)? ☐Yes ☒No Commissioner lead(s) name(s): Natalie Wagner, Tatiana Giraldo If joint commission initiative, list other board or commission: Is this an established work group? (if applicable) ☒Yes—Events (reestablish) ☐No Initiative description: Plan a public event to demonstrate e-bikes and share information about e-bike and home electrification incentive programs. Consider collaborating with other cities’ environmental commissions. Idea: “Pedal, Pints & Power” event in July or August, would involve multiple stops at local businesses Strategic Priority: ☐ 1 ☒ 2 ☐ 3 ☐ 4 ☐ 5 ☐ N/A Deliverable: ☐ Research report ☐ Summary of community input ☐ Other ☒ N/A Target completion date: Q3 This section to be completed by staff: Council request (if applicable): ☐ Review and comment or reply ☐ Review and decide ☐ Informational only – no response needed Budget required: TBD but may require local businesses to sponsor event Staff support required: Events work group will require additional meetings outside of normal working hours. Anticipate 10-20 additional hours in 2025. Liaison comments: Staff appreciate commissioners’ interest in organizing this event. Need to determine whether staff has capacity and budget to successfully accomplish. Page 7 3 Initiative name: Promote curbside organics program to single-family households Initiative type: ☒Staff support (review project, policy or program and provide feedback) ☐Independent research project ☒Gather community feedback ☐Lead community event Initiative origin: ☐Third party-initiated ☒Staff-initiated ☒Commission-initiated ☐Council-initiated Legally required (e.g. response to Legislative changes or Judicial decisions)? ☐Yes ☒No Commissioner lead(s) name(s): Jessie Hendrix, Eric Zweber, Ramil G. If joint commission initiative, list other board or commission: Is this an established work group? (if applicable) ☒Yes – partner with Events work group ☐No Initiative description: Support solid waste division staff in promoting organics recycling program to 1-4 unit households. Current participation rate is 43% among 1-4 unit households. Assist staff in creating poll to distribute to community members at tabling events to determine resistance to participation. Focus on 2-4 unit buildings to start. Encourage residents to participate in organics recycling through social media, outreach at events, and other engagement. Strategic Priority: ☐ 1 ☒ 2 ☐ 3 ☐ 4 ☐ 5 ☐ N/A Deliverable: ☒ Research report ☒ Summary of community input ☐ Other ☒ N/A Target completion date: Q4 This section to be completed by staff: Council request (if applicable): ☐ Review and comment or reply ☐ Review and decide ☐ Informational only – no response needed Budget required: TBD Staff support required: Success depends on capacity within Solid Waste division to support this work plan item, as this is not work managed by the sustainability division and the ESC liaison. Liaison comments: Page 8 4 Initiative name: Educate residents at elementary school open houses Initiative type: ☐Staff support (review project, policy or program and provide feedback) ☐Independent research project ☐Gather community feedback ☒Lead community event Initiative origin: ☐Third party-initiated ☐Staff-initiated ☒Commission-initiated ☐Council-initiated Legally required (e.g. response to Legislative changes or Judicial decisions)? ☐Yes ☒No Commissioner lead(s) name(s): Abigail Oppegaard, Avery Kuehl If joint commission initiative, list other board or commission: Is this an established work group? (if applicable) ☒Yes – Events work group ☐No Initiative description: Table at elementary school open houses to educate residents about city programs and state and federal incentives. High school commissioners lead an activity with kids to keep them occupied while they talk to parents about programs. Strategic Priority: ☐ 1 ☒ 2 ☐ 3 ☐ 4 ☐ 5 ☐ N/A Deliverable: ☐ Research report ☐ Summary of community input ☐ Other ☒ N/A Target completion date: Q3 This section to be completed by staff: Council request (if applicable): ☐ Review and comment or reply ☐ Review and decide ☒ Informational only – no response needed Budget required: TBD but likely $300 for materials for crafts Staff support required: Events work group will require additional meetings outside of normal working hours. Liaison comments: Youth commissioners have great ideas for tabling and engaging kids to keep them occupied. Success depends on staff capacity to assist and provide materials as needed. Page 9 5 Initiative name: Promote value of trees and native ecosystems Initiative type: ☒Staff support (review project, policy or program and provide feedback) ☐Independent research project ☐Gather community feedback ☐Lead community event Initiative origin: ☐Third party-initiated ☒Staff-initiated ☒Commission-initiated ☐Council-initiated Legally required (e.g. response to Legislative changes or Judicial decisions)? ☐Yes ☒No Commissioner lead(s) name(s): Bennett Myhran, Sasha Shahidi If joint commission initiative, list other board or commission: Is this an established work group? (if applicable) ☐Yes ☐No Initiative description: Engage in various tree-promoting initiatives, including: •Assisting staff with Tree of the Year campaign ideas o Encourage use mystlouispark app or mystlouispark.org to submit ideas •Lead tree planting at nature center as part of joint meeting with Park & Recreation Advisory Commission in April •Table at Arbor Day event •Assisting staff in educating residents about tree care and maintenance via handouts, newsletter articles, social media Additionally: •Monitor effects of tree preservation ordinance through periodic meetings with CD and Natural Resources staff •Review how city categorizes park space and whether a new definition of “wild space” is needed •Research GHG emissions from wood waste and explore alternatives Strategic Priority: ☐ 1 ☒ 2 ☐ 3 ☐ 4 ☐ 5 ☐ N/A Deliverable: ☐ Research report ☐ Summary of community input ☒ Other ☐ N/A Target completion date: Q4 This section to be completed by staff: Council request (if applicable): ☐ Review and comment or reply ☐ Review and decide ☐ Informational only – no response needed Budget required: None beyond planned Staff support required: Success depends on CD and Natural Resources staff capacity to meet with and update ESC on these issues, as this work is not managed by the sustainability division and the ESC liaison. Liaison comments: Staff appreciate commissioners’ interest in tree preservation and native ecosystems and will provide as much support as capacity allows. Because trees within city parks fall under PRAC, further recommend that PRAC commissioners take on some of this work if interest and time allow. Page 10 Special study session meeting of May 19, 2025 (Item No. 2) Title: Boards and Commissions check-in with city council: Environment and Sustainability Commission 6 Initiative name: Support citywide Vision 4.0 process Initiative type: ☒Staff support (review project, policy or program and provide feedback) ☐Independent research project ☐Gather community feedback ☐Lead community event Initiative origin: ☐Third party-initiated ☒Staff-initiated ☐Commission-initiated ☐Council-initiated Legally required (e.g. response to Legislative changes or Judicial decisions)? ☐Yes ☒No Commissioner lead(s) name(s): All If joint commission initiative, list other board or commission: Is this an established work group? (if applicable) ☐Yes ☐No Initiative description: Support the citywide Vision 4.0 process by participating directly and/or encouraging others to participate, and by sharing information with other community members about the process. This work plan item has been included in all board & commission work plans. Strategic Priority: ☐ 1 ☐ 2 ☐ 3 ☐ 4 ☒ 5 ☐ N/A Deliverable: ☐ Research report ☐ Summary of community input ☒ Other ☐ N/A Target completion date: Q3 This section to be completed by staff: Council request (if applicable): ☐ Review and comment or reply ☐ Review and decide ☒ Informational only – no response needed Budget required: None Staff support required: Communication from staff liaison about opportunities with Vision 4.0 Liaison comments: Plan to keep the commission informed about opportunities to assist with the citywide Vision 4.0 process. Page 11 Initiative Origin Definitions •Third party-initiated – Project initiated by applicant or external agency (statutory boards) •Staff-initiated – Project initiated by staff liaison or other city staff •Commission-initiated – Project initiated by the board or commission •Council-initiated – Project tasked to a board or commission by the city council Strategic Priorities 1.St. Louis Park is committed to being a leader in racial equity and inclusion in order to create a more just and inclusive community for all. 2.St. Louis Park is committed to continue to lead in environmental stewardship. 3.St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. 4.St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. 5.St. Louis Park is committed to creating opportunities to build social capital through community engagement Modifications •Work plans may be modified, to add or delete items, in one of three ways: •Work plans can be modified by mutual agreement during a joint work session. •If immediate approval is important, the board or commission can work with their staff liaison to present a modified work plan for city council approval at a council meeting. •The city council can direct a change to the work plan at their discretion. Page 12 Future ideas Initiatives that are being considered by the board or commission but not proposed in the annual work plan. Council approval is needed if the board or commission decides they would like to amend a work plan. Initiative Comments Page 13 Current 2025 Environment and Sustainability Commission Roster NAME ROLE TERM EXPIRES Eric Zweber Chair May 31, 2025 Abigail Oppegaard Vice chair Aug. 31, 2025 Shaina Ashare Regular member May 31, 2027 Marisa Bayer Regular member May 31, 2026 Tatiana Giraldo Regular member May 31, 2027 Ramil Goonetilleke Regular member May 31, 2025 Ryan Griffin Regular member May 31, 2027 Jessica Hendrix Regular member May 31, 2027 Ethan Kehrberg Regular member May 31, 2026 Bennett Myhran Regular member May 31, 2027 Sasha Shahidi Regular member May 31, 2027 Natalie Wagner Regular member May 31, 2026 Avery Kuehl Youth member Aug. 31, 2025 Page 14 Meeting: Special study session Meeting date: May 19, 2025 Written report: 3 Executive summary Title: Participation in U.S. Department of Energy’s Better Climate Challenge Recommended action: None at this time. Policy consideration: None at this time. Summary: After receiving an invitation from the US Department of Energy (DOE), St. Louis Park has signed on to the DOE’s Better Climate Challenge (BCC), becoming only the second municipality in the state of Minnesota to join. Launched in 2022, the BCC is a partnership program that helps organizations set a 50% greenhouse gas emissions reduction goal for their internal operations and a detailed plan to reach it within 10 years. Financial or budget considerations: Costs above and beyond currently budgeted operating expenses are not anticipated. Strategic priority consideration s: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Discussion Prepared by: Emily Ziring, sustainability manager Reviewed by: Brian Hoffman, building and energy director Approved by: Kim Keller, city manager Special study session meeting of May 19, 2025 (Item No. 3) Page 2 Title: Participation in U.S. Department of Energy’s Better Climate Challenge Discussion Background: After receiving an invitation in 2024 from the US Department of Energy (DOE), St. Louis Park has signed on to the DOE’s Better Climate Challenge (BCC), becoming only the second municipality in the state of Minnesota to join (after Saint Paul). Launched in 2022, the BCC is a partnership program that helps organizations set a 50% greenhouse gas emissions reduction goal for their internal operations and a detailed plan to reach it within 10 years. The benefits of joining include: • One-on-one technical assistance from DOE’s network of national laboratories that support our commitment to measure, track, and improve portfolio-wide greenhouse gas (GHG) emissions performance, including site visits as needed • Customized annual emissions reports that include energy highlights and trends, GHG improvements over baseline, and insights into priority areas within our portfolio • A chance to network with other jurisdictions, participate in peer-to-peer exchanges, and share lessons learned • National recognition, including letters from DOE leadership, certificates, invitations to special events, media opportunities and more There is no cost to participate, and the city can withdraw at any time. The BCC’s profile page for St. Louis Park can be found at https://betterbuildingssolutioncenter.energy.gov/partners/city-st-louis-park-minnesota. Present considerations: City staff attended a kick-off meeting with DOE staff in January 2025, where city priorities were shared. The partners agreed to focus technical assistance on: • Decarbonization of The Rec Center, including exploration of options to reduce the facility’s overall GHG emissions • Capital funding, including identifying grant opportunities from lesser-known sources • Geothermal technical support, including assistance drafting a request for proposals for a geothermal planning study (if funding allows) • Water management and irrigation networks, including technical assistance to reduce energy and water consumption across city assets Next Steps: Staff will update council as the program progresses or if there are changes from the DOE due to changing federal administration priorities.