HomeMy WebLinkAbout2025/03/24 - ADMIN - Minutes - City Council - Study Session (2)Official minutes
City council study session
St. Louis Park, Minnesota
March 24, 2025
Council members present: Mayor Nadia Mohamed, Sue Budd, Yolanda Farris, Lynette Dumalag,
and Margaret Rog
Council members absent: Tim Brausen and Paul Baudhuin
Staff present: City manager (Ms. Keller), city assessor (Mr. Bultema), engineering director (Ms.
Heiser), city appraiser (Ms. Nathanson)
Discussion items
1. 2025 Market Value Overview
Mr. Bultema presented the overview for the city as a whole and focused on the residential
sectors. Ms. Nathanson then discussed the commercial, industrial and apartment market.
Council Member Budd asked for the number of condominiums in the city. Mr. Bultema stated
the number currently stands at 2,830.
Council Member Dumalag asked if there is Tax Increment Financing (TIF) for some of the office
spaces. Ms. Nathanson stated that 10 West End is the only one, and there have been no new
office developments of late.
Council Member Rog asked if there is a relatively high amount of industrial property for a
suburb of St. Louis Park’s size. Mr. Bultema stated no, the amount is considered normal to low.
Ms. Nathanson added that cost of land for industrial use is high for developers.
Council Member Rog asked which office owners the city has spoken with. Mr. Bultema stated
staff has contacted Metro Point, Park Place East and West, Towers at West End (formerly
known as the Parkdales) and now the West End Office Park, which is slated for redevelopment.
He added they have also reached out to the 5353 Building in the northern side of the West End
office park. Every large-scale office building has filed an appeal over the last three years.
Council Member Dumalag asked what happens if a building goes into receivership. Mr. Bultema
gave the example of Park Place East and West. When a building goes into receivership, it is
because they are not meeting metrics, but the banks generally do not want to foreclose due to
massive discounts.
Council Member Rog asked a question she had received from a constituent. She stated they
have an open permit for work that was done, they want it closed, and they are worried the
value of their home may be determined to be greater. Mr. Bultema stated staff goes through all
the permits each year, reviews those that have value influence, and then visits the property. He
stated if someone spends $100,000 on a kitchen remodel, they would not be adding $100,000
improved market value to their home; possibly increasing the value by $30,000. He stated the
only work that often has a positive relationship to value is cleaning and painting.
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Council Member Rog asked what the vacancy is currently for Class A properties. Ms. Nathanson
stated it varies by property.
Council Member Dumalag asked how co-ops are valued and if they are similar to apartments.
Mr. Bultema stated Aquila Commons is a classic example of folks buying a share in the
corporation that owns the real estate, but it competes primarily with condominiums. He stated
that the senior-oriented buildings have a lower value.
Council Member Rog asked about Mr. Bultema’s comments on the significant conversion of
single-family homes to duplexes. Mr. Bultema stated he expects the market to respond with
structure renovations to create a duplex usage and that he would not be surprised to see
conversions in the future. He also stated that their review of value influence does not find a
detrimental value of well converted duplexes mixing into established residential
neighborhoods.
2. Public parking areas
Ms. Heiser presented the report and noted the policy questions: Does the council wish to
continue the past assessment policy (as laid out in this report)? Does the council support staff
recommendations on next steps for the evaluated public parking areas?
Council Member Rog stated that uses can and do change and asked if this is something that can
be integrated. Ms. Heiser stated that when an assessment is brought forward, the city needs to
prove benefit for the property, and it would be difficult to prove a benefit if no one from a
property is using the parking lot.
Council Member Rog asked if this is a change and noted previously the city was thinking that
the reconstruction of these municipal parking lots would be assessed to property owners. Ms.
Heiser stated yes, this is a change, and the cost to reconstruct certain parking areas will be paid
for similar to the parking areas in the Walker Lake Historic District.
Council Member Rog asked if parking could be enforced by use of time limits. Ms. Keller stated
officers would enforce by addressing complaints and use education with frequent users of the
area.
Council Member Budd asked about the parking areas presented. Ms. Heiser stated there were
four parking areas that were studied for the purposes of this report.
Mayor Mohamed presented Council Member Baudhuin’s comments stating he supports staff's
second policy recommendation on next steps on parking areas. He stated he wants to consider
the first policy consideration further before stating whether he supports it.
Mayor Mohamed stated she supports both policy considerations.
Council Member Farris stated she also supports both policy considerations.
Council Member Budd stated she supports both policy considerations.
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Council Member Rog stated she supports both policy considerations but is still curious about
the assessment policy, how the use changes when ownership changes, and how that works out
for the property owner.
Council Member Dumalag also supports both policy considerations.
The meeting adjourned at 7:32 p.m.
______________________________________ ______________________________________
Melissa Kennedy, city clerk Nadia Mohamed, mayor
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