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HomeMy WebLinkAbout2018/10/15 - ADMIN - Agenda Packets - City Council - RegularAGENDA OCTOBER 15, 2018 (Council member Hallfin out) 7:20 p.m. ECONOMIC DEVELOPMENT AUTHORITY – Council chambers 1.Call to order 2.Roll call 3.Approval of minutes -- None 4.Approval of agenda and items on EDA consent calendar -- None 5.Reports -- None 7.New business 7a. Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Recommended action: Motion to adopt EDA Resolution approving the revised Purchase and Redevelopment Contract between the EDA and SLP Park Ventures, LLC. 7:30 p.m. CITY COUNCIL MEETING – Council chambers 1.Call to order 1a. Pledge of allegiance 1b. Roll call 2. Presentations -- none 3.Approval of minutes 3a. Special study session minutes of September 17, 2018 3b. City council minutes of September 17, 2018 4.Approval of agenda and items on consent calendar NOTE: The Consent Calendar lists those items of business which are considered to be routine and/or which need no discussion. Consent items are acted upon by one motion. If discussion is desired by either a Councilmember or a member of the audience, that item may be moved to an appropriate section of the regular agenda for discussion. The items for the Consent Calendar are listed on the last page of the Agenda. Recommended Action: Motion to approve the Agenda as presented and items listed on the Consent Calendar; and to waive reading of all resolutions and ordinances. (Alternatively: Motion to add or remove items from the agenda, or move items from Consent Calendar to regular agenda for discussion.) 5.Boards and Commissions -- none 6.Public hearings 6a. Rasoi, LLC dba Taste of India – on-sale wine and 3.2% malt liquor license Recommended Action: Mayor to open public hearing, take public testimony, and close public hearing. Motion to approve application from Rasoi, LLC dba Taste of India for an on-sale wine and 3.2% malt liquor license for the premises located at 5617 Wayzata Boulevard. Meeting of October 15, 2018 City council agenda 6b. Assessment of delinquent charges Recommended Action: Mayor to open the public hearing, solicit comments, and close the public hearing. Motion to adopt resolution to assess delinquent water, sewer, storm water, refuse, abating grass/weed cutting, tree removal/injection, false alarm fees and other miscellaneous charges. 6c. Public hearing to consider first reading of 2019 fee ordinance Recommended Action: Mayor to open the public hearing, take testimony, and close the hearing. Motion to approve First Reading of an ordinance adopting fees for 2019 and set Second Reading for November 5, 2018. 7. Requests, petitions, and communications from the public – None 8. Resolutions, ordinances, motions and discussion items 8a. Cedar Lake Road Improvement Project No. 4019-1100 Recommended action: Motion to adopt Resolution accepting the project report, establishing Improvement Project No. 4019-1100, approving layout 1 and authorizing a contract with Bolton and Menk, Inc. for the design of final plans. 8b. Gun shows at city facilities Recommended action: Motion to adopt Resolution banning gun shows at city facilities. 9. Communications – None St. Louis Park Economic Development Authority and regular city council meetings are carried live on civic TV cable channel 17 and replays are frequent; check www.parktv.org for the schedule. The meetings are also streamed live on the internet at www.parktv.org, and saved for video on demand replays. The agenda is posted on Fridays on the official city bulletin board in the lobby of city hall and on the text display on civic TV cable channel 17. The agenda and full packet are available by noon on Friday on the city’s website. Meeting of October 15, 2018 City council agenda Auxiliary aids for individuals with disabilities are available upon request. To make arrangements, please call the administration department at 952/924-2525 (TDD 952/924-2518) at least 96 hours in advance of meeting. Consent calendar 4a. Approve second reading and adopt Ordinance amending the St. Louis Park code of ordinances relating to the establishment of an affordable housing trust fund and the housing trust fund policy to guide the use of the fund. 4b. Adopt Resolution setting the 2019 Utility Rates. 4c. Adopt a resolution authorizing the special assessment for the repair of the water service line at 8307 Virginia Circle North, P.I.D. 07-117-21-14-0037 4d. Adopt resolution establishing a special assessment for the installation of a fire suppression sprinkler system at 6516 Walker St., St. Louis Park, MN. 4e. Approve an agreement between the City of St. Louis Park and Methodist Hospital, to lease the city’s sanitary lift station property at 3901 Edgewood Avenue for hospital parking. 4f. Designate Champion Coatings the lowest responsible bidder and authorize execution of a contract with the contractor in the amount of $384,000.00 for rehabilitation of Water Treatment Plant #16, Flag Avenue Reservoir- Project No. 4018-5000. 4g. Adopt Resolution setting liquor license fees for the license term March 1, 2019 – March 1, 2020 pursuant to Minnesota statute 340A.408 and section 3-59 of the St. Louis Park City Code. 4h. Authorize staff to submit the draft Surface Water Management Plan (SWMP) for agency review. 4i. Approve for filing Parks & recreation advisory commission meeting minutes of January 29, 2018. 4j. Approve for filing Parks & recreation advisory commission meeting minutes of February 22, 2018. 4k. Approve for filing Parks & recreation advisory commission meeting minutes of May 16, 2018. 4l. Planning commission meeting minutes of August 15, 2018. 4m. Planning commission meeting minutes of September 5, 2018. Meeting: Economic development authority Meeting date: October 15, 2018 Action agenda item: 7a Executive summary Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Recommended action: Motion to adopt EDA Resolution approving the revised Purchase and Redevelopment Contract between the EDA and SLP Park Ventures, LLC. Policy consideration: Does the EDA wish to approve the revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC allowing for separate property closings to enable construction phasing of the Platia Place (apartment building and hotel) projects? Summary: On August 6, 2018, the EDA approved a Purchase and Redevelopment Contract (Contract) with SLP Park Ventures, LLC. Under the Contract, the redeveloper agreed to purchase former right-of-way (ROW) from the EDA and concurrently construct a 149-unit apartment building and a 100-room hotel, together called Platia Place. Per the Contract, the redeveloper is to close on the former ROW property by October 31, 2018, and to commence construction by July 1, 2019. The redeveloper subsequently informed staff that closing on project financing will not occur until next year, and not necessarily at the same time for the two components. The redeveloper therefore has requested the following revisions to the Purchase and Redevelopment Contract: 1. The option to split the ROW conveyance to correlate with the construction timing of the two components, thereby potentially resulting in two separate property closings. 2. Extension of the final property closing date to no later than June 30, 2019. 3. The option for the redeveloper to submit a binding commitment letter from its lender stating its intention to provide financing sufficient for construction of the applicable component in lieu of requiring the redeveloper to close on each component’s permanent financing at or prior to closing on the property. 4. Updates to the property legal descriptions in the Contract. A further revision, recommended by staff, is that the redeveloper must remove all billboards from both project sites prior to the first property closing. The Contract as originally approved, has not been fully executed, so the requested changes, if approved, constitute a revised Contract rather than a formal amendment. Financial or budget considerations: Allowing for the phasing of the Platia Place projects could result in separate property closings, in which case the EDA would split the total purchase price of the former ROW ($73,772) evenly between the two conveyances. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: EDA Resolution Purchase and redevelopment contract Prepared by: Greg Hunt, Economic Development Coordinator Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, EDA Executive Director and City Manager Economic development authority meeting of October 15, 2018 (Item No. 7a) Page 2 Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC EDA Resolution No. 18- ___ Resolution approving a revised purchase and redevelopment contract between the St. Louis Park Economic Development Authority and SLP Park Ventures LLC Be it resolved by the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows: Section 1. Recitals. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1082, as amended, the Authority administers its Redevelopment Project No. 1 (the “Project”), for the purpose of facilitating the redevelopment of certain substandard property within the Project. The Authority owns certain property (the “Authority Parcels”) within the Project, which the Authority proposes to convey to SLP Park Ventures LLC (the “Redeveloper”) for purposes of constructing a mixed-use (multi-family residential and hotel) development on the Authority Parcels and certain other property owned by the Redeveloper (together with the Authority Parcels, the “Redevelopment Property”), and to that end the parties negotiated a Purchase and Redevelopment Contract (the “Contract”). The Authority Parcels are described on Exhibit A attached hereto. 1.03. On August 6, 2018, the Authority approved the Contract and the sale of the Authority Parcels thereunder, and authorized the issuance of certain tax increment revenue notes (the “TIF Notes”) pursuant to its Resolution No. 18-07 (the “Prior Resolution”). The Contract has not been fully executed. 1.04. The parties have now negotiated various modifications to the Contract, pursuant to which (a) the Redeveloper may opt for separate dates of closing on the Authority Parcels to coincide with phased construction of the two components of the Development; (b) the closing on the Authority Parcels must take place by June 30, 2019; (c) the Redeveloper must provide evidence of a binding title commitment sufficient for construction of the applicable component of the Development prior to closing on that component, but is not required to close on the construction financing at or prior to closing; and (d) the Redeveloper must remove all billboards from the Redevelopment Property prior to any closing on the Authority Parcels (incorporation of such revisions constituting the “Revised Contract”). Section 2. Revised Contract Approved. 2.01. The Revised Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Revised Contract by such officials shall be conclusive evidence of approval. Economic development authority meeting of October 15, 2018 (Item No. 7a) Page 3 Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC 2.02. The approvals contained in the Prior Resolution, approving the conveyance of the Authority Parcels and authorizing issuance of the TIF Notes, are ratified and confirmed in all respects. 2.03. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Revised Contract and any documents referenced therein requiring execution by the Authority, including without limitation any deed, and to carry out, on behalf of the Authority, its obligations thereunder. 2.04. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Reviewed for Administration: Adopted by the Economic Development Authority October 15, 2018 Thomas K. Harmening, Executive Director Steve Hallfin, President Attest: Secretary Economic development authority meeting of October 15, 2018 (Item No. 7a) Page 4 Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Exhibit A Authority Parcels Authority Parcel A: That part of Trunk Highway No. 12 as shown on MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 27-23 described as follows: Beginning at right of way Boundary corner B3; thence on an assumed azimuth of 1 degree 05 minutes 15 seconds along the boundary line of said plat a distance of 86.85 feet to Right of Way Boundary Corner B4; thence deflect to the right 83.74 feet along a non-tangential curve concave to the northwest and passing through Right of Way Boundary Corner B5, having a radius of 2083.24 feet, central angle of 2 degrees 18 minutes 11 seconds, chord azimuth of 48 degrees 18 minutes 24 seconds and chord distance of 83.73 feet; thence on an azimuth of 91 degrees 27 minutes 32 seconds a distance of 98.89 feet; thence southwesterly deflecting to the right on a non- tangential curve concave to the northwest having a radius of 788.53 feet, delta angle of 15 degrees 42 minutes 58 seconds, and a chord azimuth of 229 degrees 07 minutes 59 seconds and chord distance of 215.62 feet to the East line of parcel 44 as shown on said plat 27- 23; thence north along said East line of Parcel 44 to the point of beginning. and Authority Parcel B: That part of Trunk Highway No. 12 as shown on MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 27-23 which lies southwesterly and southerly of Line 1, said Line 1 being described as follows: Line 1: Commencing at Right of Way Boundary Corner B212 as shown on said Plat No. 27-23; thence Northerly on an azimuth of 00 degrees 13 minutes 27 seconds along the West line of the boundary of said Plat No. 27-23 a distance of 484.26 feet to Right of Way Boundary Corner B211 and the point of beginning of the line being described; thence Easterly on an azimuth of 101 degrees 20 minutes 23 seconds along the boundary of said Plat No. 27-23 a distance of 214.28 feet to Right of Way Boundary Corner B1; thence continue on an azimuth of 101 degrees 20 minutes 23 seconds 93.00 feet; thence deflect to the left 350.87 feet on a non- tangential curve, concave to the North and passing through Right of Way Boundary Corner B2 as shown on said Plat No. 27-23, having a radius of 763.94 feet, a delta angle of 26 degrees 18 minutes 56 seconds, and a chord azimuth of 70 degrees 47 minutes 34 seconds to the Easterly line of said Parcel 44; thence on an azimuth of 01 degree 05 minutes 15 seconds 7.37 feet to Right of Way Boundary Corner B3 as shown on said Plat No. 27-23 and there terminating. Economic development authority meeting of October 15, 2018 (Item No. 7a) Page 5 Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC And northerly of the following described line and its easterly extension: Commencing at the point of intersection of the West line of the Southeast Quarter of the Northeast Quarter of said Section 1 with the most southerly line of Lot 1, Block 7, SHELARD PARK; thence on an assumed bearing of South 0 degrees 39 minutes 11 seconds West along said West line a distance of 187.99 feet to the point of beginning of the line being described; thence along a non-tangential curve concave to the northeast having a radius of 788.53 feet, central angle of 7 degrees 43 minutes 57 seconds, chord bearing of South 78 degrees 42 minutes 56 seconds East to its intersection with the most westerly extension of the southerly line of said Parcel 44; thence easterly along said extension of the most southerly line of said Parcel 44 to its intersection with Line 1 described above, and said line there ending. 518115v6 MNI SA285-100 Eighth draft, October 9, 2018 PURCHASE AND REDEVELOPMENT CONTRACT By and Between ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY and SLP PARK VENTURES LLC Dated as of: _____________, 2018 This document was drafted by: KENNEDY & GRAVEN, Chartered (MNI) 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 (612) 337-9300 http://www.kennedy-graven.com Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 6 i TABLE OF CONTENTS Page PREAMBLE ......................................................................................................................................... 1 ARTICLE I Definitions Section 1.1. Definitions .................................................................................................................... 2 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority ................................................................................. 6 Section 2.2. Representations and Warranties by the Redeveloper ................................................... 6 ARTICLE III Property Acquisition; Public Redevelopment Costs Section 3.1. Conveyance of the Property ......................................................................................... 8 Section 3.2. Purchase Price; Provisions for Payment ....................................................................... 8 Section 3.3. Conditions of Conveyance ........................................................................................... 8 Section 3.4. Place of Document Execution, Delivery and Recording ............................................. 9 Section 3.5. Title ............................................................................................................................... 9 Section 3.6. Environmental Conditions .......................................................................................... 10 Section 3.7. Issuance of Notes ........................................................................................................ 11 Section 3.8. TIF Lookback ............................................................................................................. 12 Section 3.9. Business Subsidy ........................................................................................................ 14 Section 3.10. Payment of Authority Costs ....................................................................................... 15 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements ................................................................................... 16 Section 4.2. Construction Plans ...................................................................................................... 16 Section 4.3. Commencement and Completion of Construction ..................................................... 17 Section 4.4. Certificate of Completion ........................................................................................... 18 Section 4.5. Records ....................................................................................................................... 18 Section 4.6. Management ............................................................................................................... 18 Section 4.7. Inclusionary Housing Policy ...................................................................................... 19 Section 4.8. Conformity to Planning Development Contract ........................................................ 19 ARTICLE V Insurance Section 5.1. Insurance ..................................................................................................................... 21 Section 5.2. Subordination .............................................................................................................. 22 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 7 ii ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes ............................................................................. 23 Section 6.2. Review of Taxes ......................................................................................................... 23 Section 6.3. Assessment Agreement .............................................................................................. 23 ARTICLE VII Other Financing Section 7.1. Generally ..................................................................................................................... 25 Section 7.2. Authority’s Option to Cure Default on Mortgage ...................................................... 25 Section 7.3. Modification; Subordination ...................................................................................... 25 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development ............................................................................. 26 Section 8.2. Prohibition Against Redeveloper’s Transfer of Property and Assignment of Agreement .......................................................................................... 26 Section 8.3. Release and Indemnification Covenants .................................................................... 27 ARTICLE IX Events of Default Section 9.1. Events of Default Defined .......................................................................................... 29 Section 9.2. Remedies on Default .................................................................................................. 29 Section 9.3. Revesting Title in Authority Upon Happening of Event Subsequent to Conveyance to Redeveloper ....................................................................................... 30 Section 9.4. Resale of Reacquired Property; Disposition of Proceeds .......................................... 31 Section 9.5. No Remedy Exclusive ................................................................................................ 31 Section 9.6. No Additional Waiver Implied by One Waiver ........................................................ 32 Section 9.7. Attorney Fees .............................................................................................................. 32 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Representatives Not Individually Liable ................................. 33 Section 10.2. Equal Employment Opportunity ................................................................................ 33 Section 10.3. Restrictions on Use ..................................................................................................... 33 Section 10.4. Provisions Not Merged With Deed ............................................................................ 33 Section 10.5. Titles of Articles and Sections .................................................................................... 33 Section 10.6. Notices and Demands ................................................................................................. 33 Section 10.7. Counterparts ................................................................................................................ 34 Section 10.8. Recording .................................................................................................................... 34 Section 10.9. Amendment ................................................................................................................ 34 Section 10.10. Authority Approvals ................................................................................................... 34 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 8 iii TESTIMONIUM ................................................................................................................................ 35 SIGNATURES ................................................................................................................................... 35 SCHEDULE A Redevelopment Property SCHEDULE B Form of Quitclaim Deed SCHEDULE C Authorizing Resolution SCHEDULE D Projected Public Redevelopment Costs SCHEDULE E Certificate of Completion SCHEDULE F Assessment Agreement SCHEDULE G Form of Subordination Agreement Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 9 1 PURCHASE AND REDEVELOPMENT CONTRACT THIS AGREEMENT, made as of the __ day of __________, 2018, by and between the St. Louis Park Economic Development Authority (the “Authority”), a public body corporate and politic under the laws of Minnesota, and SLP Park Ventures LLC (the “Redeveloper”), a Minnesota limited liability company. WITNESSETH: WHEREAS, the Authority was created pursuant to Minnesota Statutes Sections 469.090 to 469.1081 (the “Act”) and was authorized to transact business and exercise its powers by a resolution of the City Council of the City; and WHEREAS, the Authority has undertaken a program to promote the development and redevelopment of land which is underutilized within the City of St. Louis Park, Minnesota (the “City”), and in this connection created the Redevelopment Project No. 1 (hereinafter referred to as the “Project”) in an area (hereinafter referred to as the “Project Area”) located in the City pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the “HRA Act”); and WHEREAS, pursuant to the Act and the HRA Act, the Authority is authorized to acquire real property, or interests therein, and to undertake certain activities to facilitate the redevelopment of real property by private enterprise; and WHEREAS, the Authority has acquired certain property described in Schedule A (the “Authority Parcels”) within the Project, and intends to convey that property to the Redeveloper, who intends to construct certain improvements described herein on the Authority Parcels as well as certain other property owned by the Redeveloper (together, the Redevelopment Property”). WHEREAS, the Authority and City have previously established the Wayzata Boulevard Tax Increment Financing District (“TIF District”) pursuant to Minnesota Statutes, Sections 469.174 to 469.1794, as amended (the “TIF Act”), made up of property in the Project Area including the Redevelopment Property; and WHEREAS, the Authority believes that the redevelopment of the Redevelopment Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 10 2 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: “Act” means Minnesota Statutes Sections 469.090 to 469.1081, as amended. “Affiliate” means with respect to any entity (a) any corporation, partnership, limited liability company or other business entity or person controlling, controlled by or under common control with the entity, and (b) any successor to such party by merger, acquisition, reorganization or similar transaction involving all or substantially all of the assets of such party (or such Affiliate). For the purpose hereof the words “controlling”, “controlled by” and “under common control with” shall mean, with respect to any corporation, partnership, limited liability company or other business entity, the ownership of fifty percent or more of the voting interests in such entity or possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether through ownership of voting securities or by contract or otherwise. “Agreement” means this Agreement, as the same may be from time to time modified, amended, or supplemented. “Authority” means the St. Louis Park Economic Development Authority. “Authority Parcels” means the parcels so described in Schedule A of this Agreement. “Authority Representative” means the Executive Director of the Authority, or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. “Authorizing Resolution” means the resolution of the Authority, substantially in the form of attached Schedule B to be adopted by the Authority to authorize the issuance of the Note. “Available Tax Increment” has the meaning provided in the Authorizing Resolution. “Business Day” means any day except a Saturday, Sunday, legal holiday, a day on which the City is closed for business, or a day on which banking institutions in the City are authorized by law or executive order to close. “Business Subsidy Act” means Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. “City” means the City of St. Louis Park, Minnesota. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 11 3 “Certificate of Completion” means the certification provided to the Redeveloper in connection with any Phase of the Minimum Improvements, pursuant to Section 4.4 of this Agreement. “Construction Plans” means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) underground parking plans; (4) floor plan for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7) landscape plan; and (8) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. “County” means the County of Hennepin, Minnesota. “Development Pro Forma” means the financial pro forma for the Minimum Improvements attached hereto as Schedule E. “Event of Default” means an action by the Redeveloper listed in Article IX of this Agreement. “Holder” means the owner of a Mortgage. “Hotel Component” means construction on the Redevelopment Property of a six-story, approximately 61,411 square-foot hotel containing 100 rooms. “HRA Act” means Minnesota Statutes, Sections 469.001 to 469.047, as amended. “Maturity Date” means the date that the Note has been paid in full or terminated in accordance with its terms, whichever is earlier. “Minimum Improvements” means construction on the Redevelopment Property of the Multifamily Component and the Hotel Component, along with all associated parking. “Mortgage” means any mortgage made by the Redeveloper that is secured, in whole or in part, with the Redevelopment Property and that is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. “MPCA” means the Minnesota Pollution Control Agency. “Multifamily Component” means construction on the Redevelopment Property of a six- story, approximately 205,670 square-foot multifamily apartment building containing 149 housing units, as further described in Section 4.7 hereof. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 12 4 “Note” means the Tax Increment Revenue Note, substantially in the form contained in the Authorizing Resolution, to be delivered by the Authority to the Redeveloper in accordance with Section 3.7 hereof. “Planning Development Contract” means the Planning Development Contract between the City and the Redeveloper, executed in connection with the development of the Minimum Improvements on the Redevelopment Property and incorporated herein by reference. “Project” means the Authority’s Redevelopment Project No. 1. “Public Redevelopment Costs” has the meaning provided in Section 3.7(a) hereof. “Project Area” means the geographic area within the boundaries of the Project. “Redeveloper” means SLP Park Ventures LLC, a Minnesota limited liability company, or its permitted successors and assigns. “Redeveloper Parcels” means the parcels so described in Schedule A of this Agreement. “Redevelopment Plan” means the Redevelopment Plan for the Project. “Redevelopment Property” means the real property described in Schedule A of this Agreement, consisting of the Authority Parcels and the Redeveloper Parcels. “State” means the state of Minnesota. “Tax Increment” means that portion of the real property taxes that is paid with respect to the Redevelopment Property and that is remitted to the Authority as tax increment pursuant to the Tax Increment Act. “Tax Increment Act” or “TIF Act” means the Tax Increment Financing Act, Minnesota Statutes Sections 469.174 to 469.1794, as amended. “Tax Increment District” or “TIF District” means the Wayzata Boulevard Tax Increment Financing District created by the City and the Authority. “Tax Increment Plan” or “TIF Plan” means the Tax Increment Financing Plan for the TIF District approved by the City Council on March 21, 2016, and as it may be amended. . “Tax Official” means any County assessor, County auditor, County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. “Transfer” has the meaning set forth in Section 8.2(a) hereof. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 13 5 “Unavoidable Delays” means delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Authority or City in exercising their rights under this Agreement), including without limitation condemnation or threat of condemnation of any portion of the Redevelopment Property, which directly result in delays. Unavoidable Delays shall not include delays experienced by the Redeveloper in obtaining permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 of this Agreement, so long as the Construction Plans have been approved in accordance with Section 4.2 hereof. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 14 6 ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority. (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the Act and the HRA Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The Authority will use its best efforts to facilitate development of the Minimum Improvements, including but not limited to cooperating with the Redeveloper in obtaining necessary administrative and land use approvals and construction financing pursuant to Section 7.1 hereof. (c) The Authority will issue the Note, subject to all the terms and conditions of this Agreement. (d) The activities of the Authority are undertaken for the purpose of fostering the redevelopment of certain real property previously occupied by substandard and obsolete buildings, which will revitalize this portion of the Project Area, increase tax base, provide desired services, and increase housing opportunities. Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper is a limited liability company, duly organized and in good standing under the laws of the State, is not in violation of any provisions of its articles of organization or bylaws, is duly qualified as a foreign limited liability company and authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery, and performance of this Agreement by proper action of its members. (b) If the Redeveloper acquires the Authority Parcels in accordance with this Agreement, the Redeveloper will construct, operate and maintain the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Plan and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code, energy-conservation and public health laws and regulations). (c) The Redeveloper will use reasonable efforts to secure all permits, licenses and approvals necessary for construction of the Minimum Improvements. (d) The Redeveloper has received no written notice or other written communication from any local, state or federal official that the activities of the Redeveloper or the Authority in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware). The Redeveloper is aware of no facts Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 15 7 the existence of which would cause it to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. (e)Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. (f)The proposed development by the Redeveloper hereunder would not occur but for the tax increment financing assistance being provided by the Authority hereunder. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 16 8 ARTICLE III Property Acquisition; Public Redevelopment Costs Section 3.1. Conveyance of the Property. (a) The Redevelopment Property consists of the Redeveloper Parcels and the Authority Parcels described in Schedule A. As of the date of this Agreement, the Redeveloper has acquired the Redeveloper Parcels. The Authority has no obligation to acquire the Redeveloper Parcels. (b) The Authority owns the Authority Parcels and will convey title to and possession of the Authority Parcels to the Redeveloper, subject to all the terms and conditions of this Agreement. (c)The Redeveloper is in the process of obtaining final City approval of a Planned Unit Development ordinance (“PUD”) and plat (the “Redevelopment Plat”) for the Redevelopment Property and will enter into a Planning Development Contract with the City, which PUD, Redevelopment Plat, and Planning Development Contract, in final form, are incorporated into this Agreement by reference. Section 3.2. Purchase Price; Provisions for Payment. (a) The purchase price to be paid to the Authority by the Redeveloper in exchange for the conveyance of the Authority Parcels shall be $73,772 (the “Purchase Price”). The Purchase Price shall be paid in full at Closing (as defined in Section 3.3(b) hereof), provided that if the Authority Parcels are conveyed to the Redeveloper in two separate closings as provided hereafter, the Purchase Price for Authority Parcel A shall be $36,886 and the Purchase Price for Authority Parcel B shall be $36,886. (b)The Redeveloper may close on conveyance of both Authority Parcels in a single Closing, or may close on Authority Parcel A (related to the Hotel Component) and Authority Parcel B (related to the Multifamily Component) in separate closings, in the order selected by the Redeveloper. If the Redeveloper chooses two separate closings, all conditions of conveyance provided in Section 3.3 hereof must be met prior to Closing on the applicable Authority Parcel. Section 3.3. Conditions of Conveyance. (a) The Authority shall convey title to and possession of the Authority Parcels to the Redeveloper by one or more quit claim deeds substantially in the form set forth on Schedule B to this Agreement (the “Deed”). The Authority’s obligation to convey the Authority Parcels to the Redeveloper is subject to satisfaction of the following terms and conditions: (1)The Redeveloper having provided a binding financing commitment for construction of the Minimum Improvements (or applicable portion thereof) from a Lender at or before Closing on transfer of title to the Authority Parcels to the Redeveloper, and the Authority having approved such financing for construction of the Minimum Improvements (or applicable component thereof) in accordance with Article VII hereof. (2)The City having approved the Redevelopment Plat, PUD, and Planning Development Contract in accordance with Section 3.1, and the City and Redeveloper having recorded the Redevelopment Plat on or before Closing. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 17 9 (3) The City having approved all necessary zoning variances to the Redevelopment Property in accordance with Section 3.1. (4) The Authority having approved Construction Plans for the Minimum Improvements (or applicable component thereof) in accordance with Section 4.2. (5) The Redeveloper having reviewed and approved (or waived objections to) title to the Authority Parcels as set forth in Section 3.5. (6) The Redeveloper having made such inspections and testing with regard to the Authority Parcels and Redevelopment Property as a whole as it deems necessary, and being satisfied with the results of such inspections. (7) The Redeveloper having removed all billboards located on the Redeveloper Parcels prior to Closing (if Redeveloper opts for separate closings, the billboards must be removed prior to the first Closing to occur). (8) There is no uncured Event of Default under this Agreement. Conditions (1), (2), (4), (7) and (8) are solely for the benefit of the Authority, and may be waived by the Authority. Conditions (5) and (6) are solely for the benefit of the Redeveloper, and may be waived by the Redeveloper. Condition (3) is for the benefit of both parties and may be waived by both parties. If any condition is not satisfied or waived by the applicable party on or before Closing, then either party may terminate this Agreement by ten days’ written notice to the other party. Upon such termination, neither party shall have any further obligations or liability to the other hereunder; provided, however, that if there are Administrative Costs (as defined in Section 3.10) incurred but unpaid at the time of such termination, Redeveloper shall reimburse the Authority for such Administrative Costs. (b) The closing on conveyance of the Authority Parcels from the Authority to the Redeveloper (“Closing”) shall occur within thirty (30) days after satisfaction or waiver of the conditions specified in this Section, but no later than June 30, 2019, or such later date as is mutually agreed upon by the parties in writing; provided that if the Authority Parcels are conveyed in two separate closings, the Closing on conveyance of the final Authority Parcel shall occur no later than June 30, 2019. Section 3.4. Place of Document Execution, Delivery and Recording. (a) Unless otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all deeds, documents and the payment of any purchase price shall be made at the offices of the Authority or such other location to which the parties may agree. (b) The Deed shall be in recordable form and shall be promptly recorded in the proper office for the recordation of deeds and other instruments pertaining to the Authority Parcels. At closing, the Redeveloper shall pay: all recording costs, including state deed tax, in connection with the conveyance of the Authority Parcels (or applicable Authority Parcel); title insurance Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 18 10 commitment fees and premiums, if any; and title company closing fees, if any. The Authority shall pay costs of recording any instruments used to clear title encumbrances; and any special assessments outstanding or levied against the Authority Parcels as of the applicable Closing Date. The parties agree and understand that the Authority Parcels are exempt from property taxes for taxes payable in 2018, and will be exempt from property taxes for taxes payable in 2019. Section 3.5. Title. (a) As soon as practicable after the date of this Agreement, the Redeveloper, at Redeveloper’s sole expense, shall obtain a commitment for the issuance of a policy of title for the Authority Parcels. The Redeveloper shall have twenty (20) days from the later of the date of its receipt of such commitment and the date of recording of the Redevelopment Plat to review the state of title to the Redevelopment Property and to provide the Authority with a list of written objections to such title. Upon receipt of the Redeveloper’s list of written objections, the Authority shall proceed in good faith and with all due diligence to attempt to cure the objections made by the Redeveloper. In the event that the Authority has failed to cure objections within sixty (60) days after its receipt of the Redeveloper’s list of such objections, the Redeveloper may by the giving of written notice to the Authority (i) terminate this Agreement, upon the receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder, other than Redeveloper’s obligations under Section 3.10 hereof; or (ii) waive the objections and proceed to Closing. The Authority shall have no obligation to take any action to clear defects in the title to the Authority Parcels, other than the good faith efforts described above. (b)The Authority shall take no actions to encumber title to the Authority Parcels between the date of this Agreement and the time the Deed is delivered to the Redeveloper. (c)The Redeveloper shall take no actions to encumber title to the Authority Parcels between the date of this Agreement and the time the Deed is delivered to the Redeveloper. The Redeveloper expressly agrees that it will not cause or permit the attachment of any mechanics, attorneys, or other liens to the Authority Parcels prior to Closing. Notwithstanding termination of this Agreement prior to Closing, Redeveloper is obligated to pay all costs to discharge any encumbrances to the Authority Parcels attributable to actions of Redeveloper, its employees, officers, agents or consultants, including without limitation the Architect, Contractor and Redeveloper’s Engineer. Section 3.6. Environmental Conditions. (a) Before closing on conveyance of the Authority Parcels, the Redeveloper may enter the Authority Parcels and conduct any environmental or soils studies deemed necessary by the Redeveloper. The Redeveloper agrees that it shall cause all studies, investigations, and inspections performed on the Authority Parcels to be performed in a manner that does not disturb the Authority Parcels and that the Authority Parcels shall be returned to their original condition after Redeveloper’s entry, provided that Redeveloper shall not be liable for any existing conditions on the Authority Parcels or for any environmental remediation or response actions required as a result of such investigations and inspections. Except for soil borings and test pits, the Redeveloper shall not conduct or cause to be conducted any physically intrusive investigations, examinations or studies of the Authority Parcels without obtaining the prior written consent of the Authority. If at least 10 days before Closing the Redeveloper determines that hazardous waste or other pollutants as defined under federal and state law exist on the Authority Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 19 11 Parcels, or that the soils are otherwise unsuitable for construction of the Minimum Improvements, the Redeveloper may at its option terminate this Agreement by giving written notice to the Authority, upon receipt of which this Agreement shall be null and void and neither party shall have any liability hereunder, other than Redeveloper’s obligations under Section 3.10 hereof. (b)The Redeveloper acknowledges that the Authority makes no representations or warranties as to the condition of the soils on the Redevelopment Property or the fitness of the Redevelopment Property for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property, and that the assistance provided to the Redeveloper under this Agreement neither implies any responsibility by the Authority or the City for any contamination of the Redevelopment Property nor imposes any obligation on such parties to participate in any cleanup of the Redevelopment Property, except as expressly set forth herein. (c)Without limiting its obligations under Section 8.3 of this Agreement, Redeveloper agrees to indemnify, defend, and hold harmless the Authority, the City and their governing body members, officers and employees (the “Indemnified Parties”), from any claims or actions to the extent arising out of any claim related to the presence of hazardous substances on the Redevelopment Property, or any portion thereof, which either (i) arise out of activities of Redeveloper on the Redevelopment Property or (ii) arise out of hazardous substances, asbestos, petroleum substances, or pollutants, irritants or contaminants brought onto the Redevelopment Property by Redeveloper. In addition, Redeveloper agrees to release the Indemnified Parties from any and all costs, expenses, losses, liabilities, claims, causes of action, demands, and damages relating to the environmental conditions on the Redevelopment Property as of the Date of Closing, including without limitation any claim the Redeveloper may have to recover from all or any of the Indemnified Parties any costs or expenses incurred by the Redeveloper in performing any remediation of the Redevelopment Property. Nothing in this section will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and 604.02. Section 3.7. Issuance of Notes. (a) Generally. The Authority has determined that, in order to make development of the Minimum Improvements financially feasible, it is necessary to reimburse Redeveloper for a portion of the cost of site preparation related to demolition, soil excavation, disposal, and correction, pilings and/or foundational support, environmental remediation, utility relocation, and underground structured parking (the “Public Redevelopment Costs”), subject to the terms of this Section. (b)Terms. To reimburse the Public Redevelopment Costs incurred by Redeveloper, the Authority shall issue and the Redeveloper shall purchase a Note in connection with the Hotel Component (the “Hotel Note”) in the maximum principal amount of $714,000, and a Note in connection with the Multifamily Component (the “Multifamily Note”) in the maximum principal amount of $2,760,000. The Authority shall issue and deliver each Note upon Redeveloper having: (i)delivered to the Authority one or more certificates signed by the Redeveloper’s duly authorized representative, containing the following: (i) a statement that each cost identified in the certificate is a Public Redevelopment Cost as defined in this Agreement and that no part of such cost has been included in any previous Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 20 12 certification; (ii) evidence that each identified Public Redevelopment Cost has been paid or incurred by or on behalf of the Redeveloper; and (iii) a statement that no uncured Event of Default by the Redeveloper has occurred and is continuing under the Agreement. The Authority may, if not satisfied that the conditions described herein have been met, return any certificate with a statement of the reasons why it is not acceptable and requesting such further documentation or clarification as the Authority may reasonably require; (ii)submitted and obtained Authority approval of financing in accordance with Section 7.1; and (iii)delivered to the Authority an investment letter in a form reasonably satisfactory to the Authority. The terms of the Notes will be substantially those set forth in the form of the Note shown in Schedule C, and the Notes will be subject to all terms of the Authorizing Resolution, which are incorporated herein by reference. (c)Termination of right to Notes. In accordance with Section 469.1763, Subdivision 3 of the TIF Act, conditions for delivery of the Note must be met by June 16, 2021 (five years after the date of certification of the TIF District by the County). If the conditions are not satisfied by such date, the Authority has no further obligations under this Section 3.7. (d)Assignment of Notes. The Authority acknowledges that the Redeveloper may assign one or both Notes to a third party. The Authority consents to such an assignment, conditioned upon receipt of an investment letter from such third party in a form reasonably acceptable to the Authority. (e)Qualifications. The Redeveloper understands and acknowledges that the Authority makes no representations or warranties regarding the amount of Tax Increment, or that revenues pledged to the Notes will be sufficient to pay the principal and interest on the Notes. Any estimates of Tax Increment prepared by the Authority or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the Authority, and are not intended as representations on which the Redeveloper may rely. Public Redevelopment Costs exceeding the principal amount of the Notes are the sole responsibility of Redeveloper. Section 3.8. TIF Lookback. (a)Generally. The financial assistance to the Redeveloper under this Agreement is based on certain assumptions regarding likely costs and expenses associated with constructing the Minimum Improvements. The Authority and the Redeveloper agree that those assumptions will be reviewed at the times described in this Section, and that the amount of Tax Increment assistance provided under Section 3.7 will be adjusted accordingly. (b)Definitions. For the purposes of this Section, the following terms have the following meanings: Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 21 13 “Calculation Date” means 60 days after the earliest of (i) the date of Stabilization of the Minimum Improvements; (ii) the date of any Transfer of the Minimum Improvements (provided that the Redeveloper and the Authority agree that the Calculation Date will occur prior to the actual Transfer); or (iii) three years after the date of completion of the Minimum Improvements, as evidenced by the Authority’s issuance of a Certificate of Completion. “Cash Flow” means Net Operating Income less debt service with respect to the first mortgage loan. “Cash on Cash Return” means net Cash Flow divided by the sum of Redeveloper’s actual equity, which excludes any grants or City, Authority, Federal or State funds received by the Redeveloper, and the principal amount of the Note(s). “Cash on Cost Return” means Net Operating Income divided by the total development costs, which excludes any grants or City, Authority, Federal or State funds received by the Redeveloper. “Net Operating Income” means total annual income and other project-derived annual revenue, including payments under the Note(s) (but excluding proceeds, or the financial effect of the proceeds, from a sale or refinancing), less Operating Expenses in accordance with the Pro Forma for each Component of the Minimum Improvements. “Operating Expenses” means reasonable and customary expenses incurred in operating each Component of the Minimum Improvements in accordance with its respective Pro Forma, including deposits to capital replacement reserves. “Stabilization” is defined as follows: for the Apartment Component, the date on which it has achieved 93% occupancy; and for the Hotel Component, the date on which it has achieved one full year of operations at 68% occupancy. (c) Lookback Calculations. (i) At the time of completion of construction of each Component, if the amount of the Public Redevelopment Costs actually incurred is less than the amount of Estimated Public Redevelopment Costs projected in Exhibit D-1 for either Component, the financial assistance for the Public Redevelopment Costs will be reduced on a dollar for dollar basis in the amount of such deficiency and the principal amount of the Note issued for the relevant Component will be adjusted accordingly. (ii) On the Calculation Date for the Multifamily Component, the principal amount of the Multifamily Note issued pursuant to this Agreement will be subject to adjustment based on a targeted annual Cash-On-Cash Return in excess of 10%. By the Calculation Date, the Redeveloper must deliver to the Authority’s municipal advisor (the “Consultant”) evidence of its annual Cash-On-Cash Return. The Cash-On-Cash Return shall be calculated by the Authority’s Consultant based on the Redeveloper’s financial Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 22 14 statement, prepared pursuant to generally accepted industry standards and submitted to the Authority’s Consultant (to be calculated the same manner as the sample attached as Exhibit D-2). If the actual annual Cash-On-Cash Return exceeds 10%, then the principal amount of the Multifamily Note issued to the Redeveloper will be reduced by 50% of the amount that results in an annual Cash-On-Cash Return equal to 10% over the term of the Multifamily Note, and the Redeveloper shall deliver the Multifamily Note to the Authority in exchange for a new Multifamily Note in the adjusted principal amount upon the Authority’s written request. (iii)On the Calculation Date for the Hotel Component, the amount of the Hotel Note provided pursuant to this Agreement will be subject to adjustment based on a targeted annual Cash-On-Cost Return in excess of 9%. By the Calculation Date, the Redeveloper must deliver to the Authority’s Consultant evidence of its Cash-On-Cost Return. The Cash-On-Cost Return shall be calculated by the Authority’s Consultant based on the Redeveloper’s financial statement, prepared pursuant to generally accepted industry standards and submitted to the Authority’s Consultant (to be calculated in the same manner as the sample attached as Exhibit D-3). If the actual Cash-On-Cost Return exceeds 9%, then the principal amount of the Hotel Note issued to the Redeveloper will be reduced by 50% of the amount that results in a Cash-On-Cost Return equal to 9% over the term of the Hotel Note, and the Redeveloper shall deliver the Hotel Note to the Authority in exchange for a new Hotel Note in the adjusted principal amount upon the Authority’s written request. (d)Property Sale or Refinance. If the Redeveloper sells the Hotel Component or the Multifamily Component to an unrelated third party or refinances the Hotel Component or the Multifamily Component (provided, however, the placement of permanent debt on either Component will not constitute a refinancing giving rise to the review as described in this Section) during the first five (5) years after issuance of a Certificate of Completion for each Component of the Minimum Improvements, the Redeveloper agrees to provide to the Consultant reasonable background documentation of actual project costs, project sources, and financing terms to construct the Minimum Improvements as well as the actual income and operating expenses related to the relevant Component for the period from the date of this Agreement through the date of such anticipated sale or refinance (provided that the Redeveloper and the Authority agree that the Calculation Date will occur prior to the actual sale or refinancing). Based on such review: (i)If the Consultant determines that the Multifamily Component exceeds an actual annual 10% Cash-On-Cash Return (to be calculated in the same manner as the sample attached as Exhibit D-2), then 50% of the amount that exceeds the annual 10% Cash-On- Cash Return will be applied to reduce the principal amount payable under the Multifamily Note. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 23 15 (ii)If the Consultant determines that the Hotel Component exceeds an actual annual 9% Cash-On-Cost Return (to be calculated in the same manner as the sample attached as Exhibit D-3), then 50% of the amount that exceeds the annual 9% Cash-On-Cost Return will be applied to reduce the principal amount payable under the Hotel Note. Such reduction(s) will be effective upon written notice by the Authority to Redeveloper, stating the amount of such excess profit as determined by the Authority in accordance with this Section, accompanied by the Consultant's report. Section 3.9. Business Subsidy. The Redeveloper warrants and represents that the Redeveloper’s investment in the purchase of the Redevelopment Property and in site preparation equals at least 70% of the City assessor’s finalized market value of the Redevelopment Property for the 2017 assessment year (the most recent year for which finalized values are available), calculated as follows: Aggregate cost of acquisition of Redevelopment Property……...…..$3,773,772 Plus Estimated cost of site preparation...................………………….$4,030,550 Less site preparation costs reimbursed by the Authority….. ………..($3,474,000) Equals net land and site preparation cost...................………………..$4,330,322 Assessor’s finalized market value of Redevelopment Property (2017)...................……………………...$2,331,000 $4,330,322 (net acquisition and site preparation cost) is 185.77% of $2,331,000 (assessor’s finalized fair market value of the Redevelopment Property for 2017). Accordingly, the parties agree and understand that the financial assistance described in this Agreement does not constitute a business subsidy within the meaning of the Business Subsidy Act. The Redeveloper releases and waives any claim against the Authority and its governing body members, officers, agents, servants and employees thereof arising from application of the Business Subsidy Act to this Agreement, including without limitation any claim that the Authority failed to comply with the Business Subsidy Act with respect to this Agreement. Section 3.10. Payment of Authority Costs. The Redeveloper agrees that it will pay, within 30 days after written notice from the Authority, the reasonable costs of consultants and attorneys retained by the Authority in connection with the establishment of the TIF District, any necessary modification of the TIF Plan for the TIF District, and the negotiation and preparation of this Agreement and other incidental agreements and documents contemplated hereunder, including without limitation agreements and documents related to land conveyance, development and financing assistance. The Authority will provide written reports describing the costs accrued under this Section upon request from the Redeveloper, but not more often than intervals of 45 days. Any amount deposited by the Redeveloper upon filing its application for tax increment financing with the Authority will be credited to the Redeveloper’s obligation under this Section. Upon termination Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 24 16 of this Agreement in accordance with its terms, the Redeveloper remains obligated under this section for costs incurred through the effective date of termination. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 25 17 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvements. The Redeveloper agrees that it will construct or cause construction of the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans and that it will, during any period while the Redeveloper retains ownership of any portion of the Minimum Improvements, operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans. (a) Before commencing construction of the Minimum Improvements, the Redeveloper shall submit to the Authority Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with this Agreement, the Redevelopment Plan and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing if (i) the Construction Plans conform to all terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the Redeveloper for construction of the Minimum Improvements; and (vi) no Event of Default has occurred. No approval by the Authority shall relieve the Redeveloper of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Redeveloper in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefor based upon the criteria set forth in (i) through (vi) above, and shall be made within 20 days after the date of receipt of final plans from the Redeveloper. If the Authority rejects any Construction Plans in whole or in part, the Redeveloper shall submit new or corrected Construction Plans within twenty (20) days after written notification to the Redeveloper of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. The Authority’s approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the Authority’s satisfaction with the provisions of this Agreement relating thereto. The Redeveloper hereby waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction Plans requested by the Authority. Neither the Authority, the City, nor any employee or official of the Authority or City shall be responsible in any manner whatsoever for any defect in the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the Authority. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 26 18 (b)If the Redeveloper desires to make any material change in the Construction Plans or any component thereof after their approval by the Authority, the Redeveloper shall submit the proposed change to the Authority for its approval. For the purpose of this section, the term “material” means changes that decrease construction costs by $750,000 or more. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Redeveloper, setting forth in detail the reasons therefor. Such rejection shall be made within 10 days after receipt of the notice of such change. The Authority’s approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. (a) Subject to Unavoidable Delays, the Redeveloper shall commence construction of the Hotel Component and Multifamily Component of the Minimum Improvements by July 1, 2019. Subject to Unavoidable Delays, the Redeveloper shall complete the construction of the Hotel Component and Multifamily Component of the Minimum Improvements by December 31, 2020. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority. (b)The Redeveloper agrees for itself, its successors, and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the periods specified in this Section 4.3 of this Agreement. After the date of this Agreement and until the Multifamily Component of the Minimum Improvements has been fully leased, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Authority, but no more than monthly, as to the actual progress of the Redeveloper with respect to such construction and leasing. (c)If the Redeveloper anticipates that construction of either Component of the Minimum Improvements will not take place by the dates provided in this Section, the Redeveloper shall provide a written and oral report to the City Council of the City at a regular City Council meeting at least 45 days prior to the applicable required date of commencement or completion. The report must describe the reasons for the expected failure to meet the construction timeline, evidence of Redeveloper’s due diligence in working toward construction of the applicable Component, and a detailed revised schedule of construction of such Component. Approval by the Authority of a modified schedule for construction of the applicable Component of the Minimum Improvements shall not be unreasonably withheld, conditioned, or delayed. Failure by the Redeveloper to provide the written and oral report described in this Section is an Event of Default pursuant to Article IX hereof. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 27 19 (d)The Redeveloper shall comply with the City’s Green Building Policy, adopted by the City Council on February 16, 2010 and amended on September 16, 2014, and as such policy may be amended as of the date of issuance of a building permit for the Minimum Improvements, and shall use commercially reasonable efforts to obtain “green” certification for each component of the Minimum Improvements. As a condition to issuance of a Certificate of Completion for each component of the Minimum Improvements, Redeveloper shall submit to the Authority either (a) evidence of certification from Leadership in Energy and Environmental Design (“LEED”) or similar certification or (b) in absence of actual certification, evidence of compliance with the Green Building Policy including a detail of the specific energy-efficient/sustainable features or components implemented in the construction of each Component of the Minimum Improvements. Section 4.4. Certificate of Completion. (a) Promptly after completion of each Component of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Redeveloper to construct such Component of the Minimum Improvements (including the dates for beginning and completion thereof and the efforts regarding LEED or comparable certification described in Section 4.3), the Authority Representative shall deliver to the Redeveloper a Certificate of Completion in substantially the form shown as Schedule E, in recordable form and executed by the Authority. (b)If the Authority Representative shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the Authority Representative shall, within thirty (30) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the relevant Component of the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Redeveloper to take or perform in order for the Authority to issue the Certificate of Completion. (c)The construction of each Component of the Minimum Improvements shall be deemed to be substantially complete upon issuance of a certificate of occupancy for that Component of the Minimum Improvements, and upon determination by the Authority Representative that all related site improvements on the Redevelopment Property have been substantially completed in accordance with approved Construction Plans, subject to landscaping that cannot be completed until seasonal conditions permit. Section 4.5. Records. The Authority and the City through any authorized representatives, shall have the right at all reasonable times after reasonable notice to inspect, examine and copy all books and records of Redeveloper relating to the Minimum Improvements. Such records shall be kept and maintained by Redeveloper through the Maturity Date. Section 4.6. Management. The Redeveloper shall at all times engage a property management company with substantial experience in operating mixed use developments, subject to approval by the Authority, which approval will not be unreasonably withheld. The Redeveloper will submit evidence of such management upon request by the Authority. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 28 20 Section 4.7. Inclusionary Housing Policy. The Redeveloper agrees to comply with the City’s Inclusionary Housing Policy, as adopted June 1, 2015 and amended May 15, 2017, including without limitation the following: (a)Redeveloper agrees to reserve at least 15 of the apartment units in the Multifamily Component of the Minimum Improvements (the “Affordable Dwelling Units”) for households earning fifty percent (50%) of Area Median Income (“AMI”) for at least 25 years following building occupancy. (b)The monthly rental price for Affordable Dwelling Units shall include rent and utility costs and shall be based on fifty percent (50%) of AMI for the metropolitan area that includes St. Louis Park adjusted for bedroom size and calculated annually by Minnesota Housing in connection with establishing rent limits for the Housing Tax Credit Program. (c)The size and design of the Affordable Dwelling Units shall be consistent and comparable with the market rate units in the Multifamily Component of the Minimum Improvements and is subject to the approval of the City. The Affordable Dwelling Units shall be distributed throughout the Minimum Improvements. (d)The Affordable Dwelling Units shall have a number of bedrooms in the approximate proportion as the market rate units. (e)Redeveloper agrees to prepare an affordable housing plan as defined in the City’s Inclusionary Housing Policy (the “Affordable Housing Plan”). The Affordable Housing Plan shall describe how the Redeveloper complies with each of the applicable requirements of the Inclusionary Housing Policy. The Affordable Housing Plan shall be prepared by the Redeveloper and must be approved by the City prior to or in conjunction with delivery of the Certificate of Completion for the Multifamily Component of the Minimum Improvements. Section 4.8. Conformity to Planning Development Contract. The Redeveloper shall construct the Minimum Improvements pursuant to this Agreement and to the Planning Development Contract. Pursuant to the Planning Development Contract, required improvements shall include without limitation the following: (a)Redeveloper shall install dedicated wired connections for the Minimum Improvements in conformity with the terms and specifications provided in the Planning Development Contract. (b)The Redeveloper shall install a video surveillance system to provide complete coverage of all parking facilities constructed as part of the Minimum Improvements, including entrances to stairs and elevators, in conformity with the terms and specifications provided in the Planning Development Contract. (c)The Redeveloper shall equip both Components of the Minimum Improvements with an approved bi-directional 800 MHz signal enhancement system in conformity with the terms and specifications provided in the Planning Development Contract. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 29 21 (d) The Redeveloper shall install electric vehicle charging station infrastructure in both Components of the Minimum Improvements in conformity with the terms and specifications provided in the Planning Development Contract. (e) The Redeveloper shall construct the roofs of both Components of the Minimum Improvements in such a manner as to allow for solar readiness in conformity with the terms and specifications provided in the Planning Development Contract. (f) The Redeveloper shall construct designed outdoor recreation areas and other public amenities including privately owned artwork on the Redevelopment Property as required under the Planning Development Contract and as depicted in the approved Site Plan. The parties agree and understand that the Redeveloper shall be responsible for the cost of any maintenance and repair of the amenities and artwork. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 30 22 ARTICLE V Insurance Section 5.1. Insurance. (a) The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the Authority, furnish the Authority with proof of payment of premiums on policies covering the following: (i)Builder’s risk insurance, written on the so-called “Builder’s Risk – Completed Value Basis,” in an amount equal to 100% of the principal amount of the Note, and with coverage available in nonreporting form on the so-called “all risk” form of policy. The interest of the Authority shall be protected in accordance with a clause in form and content satisfactory to the Authority; (ii)Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, and contractual liability insurance) together with an Owner’s Protective Liability Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used). The Authority shall be listed as an additional insured on the policy; and (iii)Workers’ compensation insurance, with statutory coverage, provided that the Redeveloper may be self-insured with respect to all or any part of its liability for workers’ compensation. (b)Upon completion of construction of the Minimum Improvements and prior to the Maturity Date, the Redeveloper shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i)Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii)Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the City and Authority as additional insureds. (iii)Such other insurance, including workers’ compensation insurance respecting all employees of the Redeveloper, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Redeveloper may be self-insured with respect to all or any part of its liability for workers’ compensation. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 31 23 (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Redeveloper that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Redeveloper will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Redeveloper and the Authority at least 30 days before the cancellation or modification becomes effective. In lieu of separate policies, the Redeveloper may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Redeveloper agrees to notify the Authority immediately in the case of damage exceeding $750,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. In such event the Redeveloper will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Redeveloper will apply the net proceeds of any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum Improvements, regardless of whether the net proceeds of insurance received by the Redeveloper for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Redeveloper. (e) In lieu of its obligation to reconstruct any Component of the Minimum Improvements as set forth in this Section, the Redeveloper shall have the option of: (i) if Redeveloper has assigned the Note corresponding to such Component to a third party, paying to the Authority an amount that, in the opinion of the Authority and its fiscal consultant, is sufficient to pay or redeem the outstanding principal and accrued interest on the Note, or (ii) so long as the Redeveloper is the owner of the Note, waiving its right to receive subsequent payments under the Note. (f) The Redeveloper and the Authority agree that all of the insurance provisions set forth in this Article V shall terminate upon the termination of this Agreement. Section 5.2. Subordination. Notwithstanding anything to the contrary herein, the rights of the Authority with respect to the receipt and application of any insurance proceeds shall, in all respects, be subordinate and subject to the rights of any Holder under a Mortgage allowed pursuant to Article VII of this Agreement. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 32 24 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes. The Redeveloper acknowledges that the Authority is providing substantial aid and assistance in furtherance of the development through reimbursement of Public Redevelopment Costs. The Redeveloper understands that the Tax Increments pledged to payment on the Notes are derived from real estate taxes on the Redevelopment Property, which taxes must be promptly and timely paid. To that end, the Redeveloper agrees for itself, its successors and assigns, that in addition to the obligation pursuant to statute to pay real estate taxes, it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Redevelopment Property and the Minimum Improvements. The Redeveloper acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the Redeveloper or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit, the Authority shall also be entitled to recover its costs, expenses and reasonable attorney fees. Section 6.2. Review of Taxes. The Redeveloper agrees that prior to the Maturity Date, it will not cause a reduction in the real property taxes paid in respect of the Redevelopment Property through: (A) willful destruction of the Redevelopment Property or any part thereof; or (B) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as provided in Section 5.1(c). The Redeveloper also agrees that it will not, prior to the Maturity Date, seek exemption from property tax for the Redevelopment Property or any portion thereof or transfer or permit the transfer of the Redevelopment Property to any entity that is exempt from real property taxes and state law (other than any portion thereof dedicated or conveyed to the City in accordance with platting of the Redevelopment Property), or apply for a deferral of property tax on the Redevelopment Property pursuant to any law. Section 6.3. Assessment Agreement. (a) Upon execution of this Agreement, the Redeveloper shall, with the Authority, execute an Assessment Agreement pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an assessor’s minimum Market Value for the Redevelopment Property and both Components of the Minimum Improvements constructed thereon. The amount of the minimum Market Value for the Hotel Component shall be $8,500,000 as of January 2, 2021 and each January 2 thereafter, notwithstanding the status of construction by such dates. The amount of the minimum Market Value for the Multifamily Component shall be $14,900,000 as of January 2, 2020, and $29,800,000 as of January 2, 2021 and each January 2 thereafter, notwithstanding the status of construction by such dates. (b)The Assessment Agreement for each Component of the Minimum Improvements shall be substantially in the form attached hereto as Schedule F. Nothing in the Assessment Agreements shall limit the discretion of the assessor to assign a market value to the property in excess of such assessor’s minimum Market Value. The Assessment Agreements shall remain in force for the period specified in the Assessment Agreements. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 33 25 (c) Nothing in this Agreement or in the Assessment Agreements shall limit the right of the Redeveloper, or its successors and assigns, to bring a tax petition challenging a Market Value determination that exceeds the established minimum Market Value for either Component of the Minimum Improvements on the Redevelopment Property; provided that if the Redeveloper brings such a challenge, the Redeveloper must inform the Authority of such tax petition in writing. During the pendency of such challenge, the Authority will pay principal and interest on the Note corresponding to the challenged Market Value only to the extent of the Available Tax Increment attributable to the minimum Market Value of such Component; provided that if the Redeveloper fails to notify the Authority of the tax petition, the Authority shall have the right to withhold all payments of principal and interest on the applicable Note until the Redeveloper’s challenge is resolved. Upon resolution of Redeveloper’s tax petition, any Available Tax Increment deferred and withheld under this Section shall be paid, without interest thereon, to the extent payable under the assessor’s final determination of Market Value for the applicable Component of the Minimum Improvements. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 34 26 ARTICLE VII Other Financing Section 7.1. Generally. Before issuance of the Notes, the Redeveloper shall submit to the Authority or provide access thereto for review by Authority staff, consultants and agents, evidence reasonably satisfactory to the Authority that Redeveloper has available funds, or commitments to obtain funds, whether in the nature of mortgage financing, equity, grants, loans, or other sources sufficient for paying the cost of the developing the Minimum Improvements, provided that any lender or grantor commitments shall be subject only to such conditions as are normal and customary in the commercial lending industry. Section 7.2. Authority's Option to Cure Default on Mortgage. In the event that any portion of the Redeveloper's funds is provided through mortgage financing, and there occurs a default under any Mortgage authorized pursuant to Article VII of this Agreement, the Redeveloper shall cause the Authority to receive copies of any notice of default received by the Redeveloper from the holder of such Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such default on behalf of the Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage documents. Section 7.3. Modification; Subordination. The Authority agrees to subordinate its rights under this Agreement to the Holder of any Mortgage securing construction or permanent financing, in accordance with the terms of a subordination agreement substantially in the form attached as Schedule G, or such other form as the Authority approves. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 35 27 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section 8.1. Representation as to Development. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Redevelopment Property and not for speculation in land holding. Section 8.2. Prohibition Against Redeveloper’s Transfer of Property and Assignment of Agreement. The Redeveloper represents and agrees that prior to issuance of a Certificate of Completion for both Components of the Minimum Improvements: (a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to perform its obligations with respect to undertaking the redevelopment contemplated under this Agreement, and any other purpose authorized by this Agreement, the Redeveloper has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity whether or not related in any way to the Redeveloper (collectively, a “Transfer”), without the prior written approval of the Authority (whose approval will not be unreasonably withheld, subject to the standards described in paragraph (b) of this Section) unless the Redeveloper remains liable and bound by this Redevelopment Agreement in which event the Authority’s approval is not required. Any such Transfer shall be subject to the provisions of this Agreement. For the purposes of this Agreement, the term Transfer does not include (i) acquisition of a controlling interest in Redeveloper by another entity or merger of Redeveloper with another entity; or (ii) any sale, conveyance, or transfer in any form to any Affiliate. (b) In the event the Redeveloper, upon Transfer of the Redevelopment Property or any portion thereof either before or after issuance of the Certificate of Completion, seeks to be released from its obligations under this Redevelopment Agreement as to the portion of the Redevelopment Property that is transferred, the Authority shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such release that: (i) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion of the Redevelopment Property to be transferred. (ii) Any proposed transferee, by instrument in writing satisfactory to the Authority and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Redeveloper under this Agreement as to Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 36 28 the portion of the Redevelopment Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Redeveloper is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Redevelopment Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Authority) deprive the Authority of any rights or remedies or controls with respect to the Redevelopment Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Redevelopment Property that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by this Agreement or otherwise with respect to the Redevelopment Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Redevelopment Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. (iv) At the written request of Redeveloper, the Authority shall execute and deliver to Redeveloper and the proposed transferee an estoppel certificate containing commercially customary and reasonable certifications. In the event the foregoing conditions are satisfied then the Redeveloper shall be released from its obligation under this Agreement, as to the portion of the Redevelopment Property that is transferred, assigned, or otherwise conveyed. Section 8.3. Release and Indemnification Covenants. (a) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties as hereinafter defined, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Redeveloper releases from and covenants and agrees that the Authority, the City, and the governing body members, officers, agents, servants, and employees thereof (the “Indemnified Parties”) shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Redevelopment Property or the Minimum Improvements. (b) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties, and except for any breach by any of the Indemnified Parties Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 37 29 of their obligations under this Agreement, the Redeveloper agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action, or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, maintenance, and operation of the Redevelopment Property. (c)Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties as hereinafter defined, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Redeveloper or its officers, agents, servants, or employees or any other person who may be about the Redevelopment Property or Minimum Improvements. (d)All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements, and obligations of such entity and not of any governing body member, officer, agent, servant, or employee of such entities in the individual capacity thereof. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 38 30 ARTICLE IX Events of Default Section 9.1. Events of Default Defined. The following shall be “Events of Default” under this Agreement and the term “Event of Default” shall mean, whenever it is used in this Agreement, any one or more of the following events, after the non-defaulting party provides thirty (30) days written notice to the defaulting party of the event, but only if the event has not been cured within said thirty (30) days or, if the event is by its nature incurable within thirty (30) days, the defaulting party does not, within such thirty- (30-) day period, provide assurances reasonably satisfactory to the party providing notice of default that the event will be cured and will be cured as soon as reasonably possible: (a)Failure by the Redeveloper or Authority to observe or perform any covenant, condition, obligation, or agreement on its part to be observed or performed under this Agreement. (b)If, before issuance of the certificate of completion for all Components of the Minimum Improvements, the Redeveloper shall (i)file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act or under any similar federal or State law, which action is not dismissed within sixty (60) days after filing; or (ii)make an assignment for benefit of its creditors; or (iii)admit in writing its inability to pay its debts generally as they become due; or (iv)be adjudicated a bankrupt or insolvent. Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non-defaulting party may: (a)Suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement. (b)Upon a default by the Redeveloper under this Agreement, the Authority may terminate the Note and this Agreement. (c)Take whatever action, including legal, equitable, or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this Agreement, provided that nothing contained herein shall give the Authority the right to seek specific performance by Redeveloper of the construction of the Minimum Improvements. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 39 31 Section 9.3. Revesting Title in Authority Upon Happening of Event Subsequent to Conveyance to Redeveloper. In the event that subsequent to conveyance of the Authority Parcels to Redeveloper and prior to completion of construction of the Minimum Improvements (evidenced by a Certificate of Completion described in Section 4.4): (a) Redeveloper, subject to Unavoidable Delays, shall fail to begin construction of the Minimum Improvements in conformity with this Agreement and such failure to begin construction is not cured within 90 days after written notice from the Authority to Redeveloper to do so; or (b) Redeveloper fails to pay real estate taxes or assessments on the parcel or any part thereof when due, or creates, suffers, assumes, or agrees to any encumbrance or lien on the parcel (except to the extent permitted by this Agreement), or shall suffer any levy or attachment to be made, or any materialmen’s or mechanics’ lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged or provision satisfactory to the Authority made for such payment, removal, or discharge, within thirty (30) days after written demand by the Authority to do so; provided, that if Redeveloper first notifies the Authority of its intention to do so, it may in good faith contest any mechanics’ or other lien filed or established and in such event the Authority shall permit such mechanics’ or other lien to remain undischarged and unsatisfied during the period of such contest and any appeal and during the course of such contest Redeveloper shall keep the Authority informed respecting the status of such defense; or (c) there is, in violation of the Agreement, any Transfer of the parcel in violation of the terms of Section 8.2, and such violation is not cured within sixty (60) days after written demand by the Authority to Redeveloper, or if the event is by its nature incurable within 30 days, Redeveloper does not, within such 30-day period, provide assurances reasonably satisfactory to the Authority that the event will be cured as soon as reasonably possible; or (d) Redeveloper fails to comply with any of its other covenants under this Agreement related to the Minimum Improvements and fails to cure any such noncompliance or breach within thirty (30) days after written demand from the Authority to Redeveloper to do so, or if the event is by its nature incurable within 30 days, Redeveloper does not, within such 30-day period, provide assurances reasonably satisfactory to the Authority that the event will be cured as soon as reasonably possible; or (e) the Holder of any Mortgage secured by the subject property exercises any remedy provided by the Mortgage documents or exercises any remedy provided by law or equity in the event of a default in any of the terms or conditions of the Mortgage, in either case which would materially adversely affect the rights and obligations of the Authority hereunder; Then the Authority shall have the right to re-enter and take possession of the Authority Parcel to which the default relates and to terminate (and revest in the Authority) the estate conveyed by the deed to Redeveloper as to that parcel, subject to all intervening matters, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the parcel to Redeveloper shall be made upon, and that the deed shall contain a condition subsequent to the effect that in the event of any default on the part of Redeveloper and failure on the part of Redeveloper to Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 40 32 remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Authority at its option may declare a termination in favor of the Authority of the title, and of all the rights and interests in and to the parcel conveyed to Redeveloper, and that such title and all rights and interests of Redeveloper, and any assigns or successors in interest to and in the parcel, shall revert to the Authority, but only if the events stated in Section 9.3(a)-(e) have not been cured within the time periods provided above. Section 9.4. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Authority of title to and/or possession of the parcel or any part thereof as provided in Section 9.3, the Authority shall, pursuant to its responsibilities under law, use its best efforts to sell the parcel or part thereof as soon and in such manner as the Authority shall find feasible and consistent with the objectives of such law and of the Redevelopment Plan and TIF Plan to a qualified and responsible party or parties (as determined by the Authority) who will assume the obligation of making or completing the Minimum Improvements as shall be satisfactory to the Authority in accordance with the uses specified for such parcel or part thereof in the Redevelopment Plan and TIF Plan. During any time while the Authority has title to and/or possession of a parcel obtained by reverter, the Authority will not disturb the rights of any tenants under any leases encumbering such parcel. Upon resale of the parcel, the proceeds thereof shall be applied: (a)First, to reimburse the Authority for all costs and expenses incurred by them, including but not limited to salaries of personnel, in connection with the recapture, management, and resale of the parcel (but less any income derived by the Authority from the property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the parcel or part thereof (or, in the event the parcel is exempt from taxation or assessment or such charge during the period of ownership thereof by the Authority, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Authority assessing official) as would have been payable if the parcel were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the parcel or part thereof at the time of revesting of title thereto in the Authority or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of Redeveloper, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the subject improvements or any part thereof on the parcel or part thereof; and any amounts otherwise owing the Authority by Redeveloper and its successor or transferee; and (b)Second, to reimburse Redeveloper, its successor or transferee, up to the amount equal to (1) the purchase price paid by Redeveloper under Section 3.2 with respect to the parcel revested; plus (2) the amount actually invested by it in making any of the subject improvements on the parcel or part thereof. Any balance remaining after such reimbursements shall be retained by the Authority as its property. Section 9.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to any party is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 41 33 be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. To entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.6. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 9.7. Attorney Fees. Whenever any Event of Default occurs and if the non- defaulting party employs attorneys or incurs other expenses for the collection of payments due or to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the defaulting party under this Agreement, the defaulting party shall, within ten (10) days of written demand by the non-defaulting party, pay to the non-defaulting party the reasonable fees of such attorneys and such other expenses so incurred by the non-defaulting party. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 42 34 ARTICLE X Additional Provisions Section 10.1. Conflict of Interests; Representatives Not Individually Liable. The Authority and the Redeveloper, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement that affects his personal interests or the interests of any corporation, partnership, or association in which he, directly or indirectly, is interested. No member, official, or employee of the City or Authority shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Authority or for any amount that may become due to the Redeveloper or successor or on any obligations under the terms of the Agreement. Section 10.2. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state, and local equal employment and non-discrimination laws and regulations. Section 10.3. Restrictions on Use. The Redeveloper agrees that until the Maturity Date, the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to the operation of the Minimum Improvements as described in Section 4.1 hereof, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the construction or maintenance of the Minimum Improvements or in the use or occupancy of the Redevelopment Property or any improvements erected or to be erected thereon, or any part thereof. Redeveloper agrees that no portion of the Redevelopment Property will be used for a sexually- oriented business, a pawnshop, a check-cashing business, a tattoo business, a gun business, a payday loan agency, or for the sale of tobacco products including without limitation “vaping” or hookah shops. Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Redevelopment Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally, to the following addresses (or to such other addresses as either party may notify the other): Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 43 35 To Redeveloper: SLP Park Ventures LLC Attn: Manager 440 Third Street Excelsior, MN 55331 To Authority: St. Louis Park EDA Attn: Executive Director 5005 Minnetonka Boulevard St. Louis Park, Minnesota 55416-2518 Section 10.7. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The Authority may record this Agreement and any amendments thereto with the Hennepin County recorder. The Redeveloper shall pay all costs for recording. The Redeveloper’s obligations under this Agreement are covenants running with the land for the term of this Agreement, enforceable by the Authority against the Redeveloper, its successor and assigns, and every successor in interest to the Redevelopment Property, or any part thereof or any interest therein. Section 10.9 Amendment. This Agreement may be amended only by written agreement approved by the Authority and the Redeveloper. Section 10.10. Authority Approvals. Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative, except that final approval of issuance of the Note shall be made by the Authority’s board of commissioners. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 44 36 IN WITNESS WHEREOF, the Authority and Redeveloper have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _________, 2018 by Steve Hallfin and Thomas K. Harmening, the President and Executive Director of the St. Louis Park Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota, on behalf of the Authority. Notary Public Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 45 37 SLP PARK VENTURES LLC By Its STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ________, 2018, by _________________________, the _________________ of SLP Park Ventures LLC, a Minnesota limited liability company, on behalf of the company. Notary Public 518115v8 MNI SA285-100 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 46 A-1 SCHEDULE A REDEVELOPMENT PROPERTY Redeveloper Parcels: Parcel 1: That part of the Southeast Quarter of the Northeast Quarter of Section 1, Township 117, Range 22 described as beginning at point on the most Southerly line of Lot 1, Block 7, SHELARD PARK distant 315.25 feet Easterly from the West line of said Southeast Quarter of the Northeast Quarter as measured along said most Southerly line of Lot 1; thence North 87 degrees 41minutes 54 seconds East (assuming said West line has a bearing of South 1 degree 11 minutes 16 seconds West) along said most Southerly line of Lot 1 and its Easterly extension a distance of 317.55 feet to the Northerly extension of the West line of Lot 4, said Block 7; thence South 2 degrees 03 minutes 09 seconds West along said Northerly extension of the West line of Lot 4 and the West line of said Lot 4, a distance 119.74 feet; thence South 64 degrees 01 minutes 24 seconds West a distance of 197.53 feet; thence South 87 degrees 44 minutes 40 seconds West a distance of 139.87 feet to the intersection with a line bearing South 1 degree 14 minutes 59 seconds West from the point of beginning; thence North 1 degree 14 minutes 59 seconds East a distance of 198.98 feet to the point of beginning. The boundary lines of the above described land have been marked by Judicial Landmarks set pursuant to Torrens Case No. 19207. Parcel 2: That part of the Southeast Quarter of the Northeast Quarter of Section 1, Township 117, Range 22 described as beginning at a point on the most Southerly line of Lot 1, Block 7, SHELARD PARK distant 315.25 feet Easterly from the West line of said Southeast Quarter of the Northeast Quarter as measured along said most Southerly line of Lot 1; thence South 87 degrees 41minutes 54 seconds West along said most Southerly line of Lot 1 to said West line (assuming said West line has a bearing of South 1 degree 11 minutes 16 seconds West) a distance of 315.25 feet; thence South 1 degree 11 minutes 16 seconds West along said West line a distance of 144.56 feet; thence South 77 degrees 38 minutes 16 seconds East a distance of 214.20 feet; thence North 87 degrees 44 minutes 40 seconds East a distance of 104.50 feet to the intersection with a line bearing South 1 degree 14 minutes 59 seconds West from the point of beginning; thence North 1 degree 14 minutes 59 seconds East, a distance of 198.98 feet to the point of beginning. The boundary lines of the above described land have been marked by Judicial Landmarks set pursuant to Torrens Case No. 17713. Parcel 3 - Tract A: That part of the Southeast Quarter of the Northeast Quarter of Section 1, Township 117, Range 22, and that part of Parcel 44 on Minnesota Department of Transportation Right of Way Plat No. 27-23, which lies Northerly of the Southerly and Southwesterly lines of said Parcel 44 and the Northwesterly extension of said Southwesterly line; Westerly of the Southerly extension of the Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 47 A-2 West line of Lot 4, Block 7, SHELARD PARK; Southerly and Easterly of the following described line: Commencing at a point on the most Southerly line of Lot 1, Block 7, SHELARD PARK distant 315.25 feet Easterly from the West line of said Southeast Quarter of the Northeast Quarter as measured along said most Southerly line of Lot 1; thence North 87 degrees 41 minutes 54 seconds East (assuming the West line of said Southeast Quarter of the Northeast Quarter has a bearing of South 01 degree 11 minutes 16 seconds West) along said most Southerly line of Lot 1 and its Easterly extension 317.55 feet to the Northerly extension of the West line of Lot 4, said Block 7; thence South 02 degrees 03 minutes 09 seconds West along said Northerly extension of the West line of Lot 4 and the West line of said Lot 4 a distance of 119.74 feet to the point of beginning of the line being described; thence South 64 degrees 01 minute 24 seconds West a distance of 197.53 feet; thence South 87 degrees 44 minutes 40 seconds West 139.87 feet to the intersection with a line bearing South 01 degree 14 minutes 59 seconds West from the point of commencement; thence South 01 degree 14 minutes 59 seconds West to the Southerly line of said Parcel 44, and there terminating; and Northerly of Line 1. Line 1 is described as follows: Commencing at Right of Way Boundary Corner B212 as shown on said Plat No. 27-23; thence Northerly on an azimuth of 00 degrees 13 minutes 27 seconds along the West line of the boundary of said Plat No. 27-23 a distance of 484.26 feet to Right of Way Boundary Corner B211 and the point of beginning of the line being described; thence Easterly on an azimuth of 101 degrees 20 minutes 23 seconds along the boundary of said Plat No. 27-23 a distance of 214.28 feet to Right of Way Boundary Corner B1; thence continue on an azimuth of 101 degrees 20 minutes 23 seconds 93.00 feet; thence deflect to the left 350.87 feet on a non-tangential curve, concave to the North and passing through Right of Way Boundary Corner B2 as shown on said Plat No. 27-23, having a radius of 763.94 feet, a delta angle of 26 degrees 18 minutes 56 seconds, and a chord azimuth of 70 degrees 47 minutes 34 seconds to the Easterly line of said Parcel 44; thence on an azimuth of 01 degree 05 minutes 15 seconds 7.37 feet to Right of Way Boundary Corner B3 as shown on said Plat No. 27-23 and there terminating. The Northerly line of the above land has been marked by Judicial Landmarks set pursuant to Order Doc. No. T2062170 in Torrens Case No. 19207. Parcel 3 - Tract B: That part of the Southeast Quarter of the Northeast Quarter of Section 1, Township 117, Range 22, and that part of Parcel 44 on Minnesota Department of Transportation Right of Way Plat No. 27-23, which lies Northerly of the Southerly and Southwesterly lines of said Parcel 44 and the Northwesterly extension of said Southwesterly line; Easterly of the West line of said Southeast Quarter of the Northeast Quarter of Section 1; Southerly and Westerly of the following described line: Commencing at a point on the most Southerly line of Lot 1, Block 7, SHELARD PARK distant 315.25 feet Easterly from the West line of said Southeast Quarter of the Northeast Quarter as measured along said most Southerly line of Lot 1; thence South 87 degrees 41 minutes 54 seconds West along said most Southerly line of Lot 1 to said West line (assuming said West line Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 48 A-3 has a bearing of South 01 degree 11 minutes 16 seconds West) a distance of 315.25 feet; thence South 01 degree 11 minutes 16 seconds West along said West line 144.56 feet to a point 2.37 feet North of Right of Way Boundary Corner B211 as shown on said Plat No. 27-23, and the point of beginning of the line being described; thence South 77 degrees 38 minutes 16 seconds East a distance of 214.20 feet; thence North 87 degrees 44 minutes 40 seconds East 104.50 feet to the intersection with a line bearing South 01 degree 14 minutes 59 seconds West from the point of commencement; thence South 01 degree 14 minutes 59 seconds West to the Southerly line of said Parcel 44, and there terminating; And Northerly of Line 1. Line 1 is described as follows: Commencing at Right of Way Boundary Corner B212 as shown on said Plat No. 27-23; thence Northerly on an azimuth of 00 degrees 13 minutes 27 seconds along the West line of the boundary of said Plat No. 27-23 a distance of 484.26 feet to Right of Way Boundary Corner B211 and the point of beginning of the line being described; thence Easterly on an azimuth of 101 degrees 20 minutes 23 seconds along the boundary of said Plat No. 27-23 a distance of 214.28 feet to Right of Way Boundary Corner B1; thence continue on an azimuth of 101 degrees 20 minutes 23 seconds 93.00 feet; thence deflect to the left 350.87 feet on a non-tangential curve, concave to the North and passing through Right of Way Boundary Corner B2 as shown on said Plat No. 27-23, having a radius of 763.94 feet, a delta angle of 26 degrees 18 minutes 56 seconds, and a chord azimuth of 70 degrees 47 minutes 34 seconds to the Easterly line of said Parcel 44; thence on an azimuth of 01 degree 05 minutes 15 seconds 7.37 feet to Right of Way Boundary Corner B3 as shown on said Plat No. 27-23 and there terminating. The Northerly line of the above land has been marked by Judicial Landmarks set pursuant to Order Doc. No. T2062169 in Torrens Case No. 17713. Authority Parcels: Authority Parcel A: That part of Trunk Highway No. 12 as shown on MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 27-23 described as follows: Beginning at right of way Boundary corner B3; thence on an assumed azimuth of 1 degree 05 minutes 15 seconds along the boundary line of said plat a distance of 86.85 feet to Right of Way Boundary Corner B4; thence deflect to the right 83.74 feet along a non-tangential curve concave to the northwest and passing through Right of Way Boundary Corner B5, having a radius of 2083.24 feet, central angle of 2 degrees 18 minutes 11 seconds, chord azimuth of 48 degrees 18 minutes 24 seconds and chord distance of 83.73 feet; thence on an azimuth of 91 degrees 27 minutes 32 seconds a distance of 98.89 feet; thence southwesterly deflecting to the right on a non- tangential curve concave to the northwest having a radius of 788.53 feet, delta angle of 15 degrees 42 minutes 58 seconds, and a chord azimuth of 229 degrees 07 minutes 59 seconds and chord distance of 215.62 feet to the East line of parcel 44 as shown on said plat 27-23; thence north along said East line of Parcel 44 to the point of beginning. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 49 A-4 AND Authority Parcel B: That part of Trunk Highway No. 12 as shown on MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 27-23 which lies southwesterly and southerly of Line 1, said Line 1 being described as follows: Line 1: Commencing at Right of Way Boundary Corner B212 as shown on said Plat No. 27-23; thence Northerly on an azimuth of 00 degrees 13 minutes 27 seconds along the West line of the boundary of said Plat No. 27-23 a distance of 484.26 feet to Right of Way Boundary Corner B211 and the point of beginning of the line being described; thence Easterly on an azimuth of 101 degrees 20 minutes 23 seconds along the boundary of said Plat No. 27-23 a distance of 214.28 feet to Right of Way Boundary Corner B1; thence continue on an azimuth of 101 degrees 20 minutes 23 seconds 93.00 feet; thence deflect to the left 350.87 feet on a non-tangential curve, concave to the North and passing through Right of Way Boundary Corner B2 as shown on said Plat No. 27-23, having a radius of 763.94 feet, a delta angle of 26 degrees 18 minutes 56 seconds, and a chord azimuth of 70 degrees 47 minutes 34 seconds to the Easterly line of said Parcel 44; thence on an azimuth of 01 degree 05 minutes 15 seconds 7.37 feet to Right of Way Boundary Corner B3 as shown on said Plat No. 27-23 and there terminating. And northerly of the following described line and its easterly extension: Commencing at the point of intersection of the West line of the Southeast Quarter of the Northeast Quarter of said Section 1 with the most southerly line of Lot 1, Block 7, SHELARD PARK; thence on an assumed bearing of South 0 degrees 39 minutes 11 seconds West along said West line a distance of 187.99 feet to the point of beginning of the line being described; thence along a non-tangential curve concave to the northeast having a radius of 788.53 feet, central angle of 7 degrees 43 minutes 57 seconds, chord bearing of South 78 degrees 42 minutes 56 seconds East to its intersection with the most westerly extension of the southerly line of said Parcel 44; thence easterly along said extension of the most southerly line of said Parcel 44 to its intersection with Line 1 described above, and said line there ending. To be platted as Lots 1 and 2, Block 1, Platia Place, according to the recorded plat thereof, Hennepin County, Minnesota. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 50 B-1 SCHEDULE B FORM OF QUIT CLAIM DEED THIS INDENTURE, between the St. Louis Park Economic Development Authority, a public body corporate and politic (the “Grantor”), and SLP Park Ventures LLC, a Minnesota limited liability company (the “Grantee”). WITNESSETH, that Grantor, in consideration of the sum of $______ and other good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Hennepin and State of Minnesota described as follows, to-wit (such tract or parcel of land is hereinafter referred to as the “Property”): [insert legal description] To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging. SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of an agreement recorded herewith entered into between the Grantor and Grantee on the __ day of ____________, 2018, identified as “Purchase and Redevelopment Contract” (hereafter referred to as the “Agreement”) and that the Grantee shall not convey this Property, or any part thereof, except as permitted by the Agreement until a certificate of completion releasing the Grantee from certain obligations of said Agreement as to this Property or such part thereof then to be conveyed, has been placed of record. This provision, however, shall in no way prevent the Grantee from mortgaging this Property in order to obtain funds for the purchase of the Property hereby conveyed or for erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with the Agreement, any applicable development program and applicable provisions of the zoning ordinance of the City of St. Louis Park, Minnesota, or for the refinancing of the same. It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to completion the development of the Property through the construction of the Minimum Improvements thereon, as provided in the Agreement. Promptly after completion of the Minimum Improvements in accordance with the provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument so certifying. Such certification by the Grantor shall be (and it shall be so provided in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee, and its successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certifications and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a mortgage, or any insurer of a Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 51 B-2 mortgage, securing money loaned to finance the purchase of the Property hereby conveyed or the Minimum Improvements, or any part thereof. All certifications provided for herein shall be in such form as will enable them to be recorded with the County Recorder and/or Registrar of Titles, Hennepin County, Minnesota. If the Grantor shall refuse or fail to provide any such certification in accordance with the provisions of the Agreement and this Deed, the Grantor shall, within thirty (30) days after written request by the Grantee, provide the Grantee with a written statement indicating in adequate detail in what respects the Grantee has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification. SECTION 2. The Grantee’s rights and interest in the Property are subject to the terms and conditions of Section 9.3 of the Agreement relating to the Grantor’s right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of such right upon issuance of a Certificate of Completion as defined in the Agreement. SECTION 3. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with all provisions of the Agreement that relate to the Property or use thereof for the periods specified in the Agreement, including without limitation the covenant set forth in Section 10.3 thereof. It is intended and agreed that the above and foregoing agreements and covenants shall be covenants running with the land for the respective terms herein provided, and that they shall, in any event, and without regard to technical classification or designation, legal or otherwise, and except only as otherwise specifically provided in this Deed, be binding, to the fullest extent permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor against the Grantee, its successors and assigns, and every successor in interest to the Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Property or any part thereof. In amplification, and not in restriction of, the provisions of the preceding section, it is intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and covenants provided herein, both for and in its own right, and also for the purposes of protecting the interest of the community and the other parties, public or private, in whose favor or for whose benefit these agreements and covenants have been provided. Such agreements and covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time been, remains, or is an owner of any land or interest therein to, or in favor of, which such agreements and covenants relate. The Grantor shall have the right, in the event of any breach of any such agreement or covenant to exercise all the rights and remedies, and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breach of agreement or covenant, to which it or any other beneficiaries of such agreement or covenant may be entitled; provided that Grantor shall Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 52 B-3 not have any right to re-enter the Property or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee’s failure to comply with its obligations under this Section 3. SECTION 4. This Deed is also given subject to: (a)Provision of the ordinances, building and zoning laws of the City of St. Louis Park, and state and federal laws and regulations in so far as they affect this real estate. (b)[Others] Grantor certifies that it does not know of any wells on the Property. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 53 B-4 IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its behalf by its President and Executive Director this ______ day of ____________, 2019. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _________, 2019 by Steve Hallfin and Thomas K. Harmening, the President and Executive Director of the St. Louis Park Economic Development Authority, a public body corporate and politic and political subdivision of the State of Minnesota, on behalf of the Authority. Notary Public This instrument was drafted by: Kennedy & Graven, Chartered (MNI) 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 54 C-1 SCHEDULE C AUTHORIZING RESOLUTION ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. ______ RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT CONTRACT AND AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAX INCREMENT REVENUE NOTES TO SLP PARK VENTURES LLC. BE IT RESOLVED BY the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows: Section 1. Recitals; Approval and Authorization; Award of Sale. 1.01. Recitals. (a) The Authority and the City of St. Louis Park have heretofore approved the establishment of the Wayzata Boulevard Tax Increment Financing District (the "TIF District") within Redevelopment Project No. 1 ("Project"), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. (b) To facilitate the redevelopment of certain property within the Project and TIF District, the Authority and SLP Park Ventures LLC (the “Owner”) have negotiated a Purchase and Redevelopment Contract (the “Agreement”) which provides for the conveyance of certain Authority-owned property (the “Authority Parcels”) to the Owner, the construction by the Owner of a rental housing facility, a hotel, and associated parking on certain Redevelopment Property including the Authority Parcels, and the issuance by the Authority of one or more Tax Increment Revenue Notes, Series 2018 (the “Notes”) to the Owner. (c) On ____________, 2018, the Planning Commission of the City reviewed the proposed conveyance of the Property and found that such conveyance is consistent with the City’s comprehensive plan. (d) On the date hereof, the Authority conducted a duly noticed public hearing regarding the conveyance of the Authority Parcels to the Owner pursuant to the Agreement, at which all interested parties were given an opportunity to be heard, and hereby finds that the execution of the Agreement and performance of the Authority's obligations thereunder, including the conveyance of the Authority Parcels to the Owner, are in the best interest of the City and its residents. 1.02. Approval of Agreement. (a) The Agreement is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 55 C-2 the President and Executive Director, provided that execution of the Agreement by such officials shall be conclusive evidence of approval. The Board hereby approves the conveyance of the Authority Parcels pursuant to the terms of the Agreement. (b)Authority staff and officials are authorized to take all actions necessary to perform the Authority’s obligations under the Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Agreement, and any deed or other documents necessary to convey the Authority Parcels to Redeveloper, all as described in the Agreement. 1.03. Issuance, Sale, and Terms of the Notes. (a) The Authority hereby authorizes the President and Executive Director to issue the Notes in accordance with the Agreement. All capitalized terms in this resolution have the meaning provided in the Agreement unless the context requires otherwise. (b) The Notes shall be issued to the Owner as two separate Notes: the Hotel Note in the maximum aggregate principal amount of $714,000 in consideration of certain eligible costs incurred by the Owner in connection with construction of the Hotel Component of the Minimum Improvements, and the Multifamily Note in the maximum aggregate principal amount of $2,760,000 in consideration of certain eligible costs incurred by the Owner in connection with construction of the Multifamily Component of the Minimum Improvements under the Agreement. The Notes shall be dated the date of delivery thereof, and shall bear interest at the lesser of the rate of 5.5% per annum or the actual rate of the Owner’s mortgage financing, from the date of issue to the earlier of maturity or prepayment. The Notes will be issued in the principal amount of Public Redevelopment Costs submitted and approved in accordance with Section 3.6 of the Agreement. The Notes are secured by Available Tax Increment, as further described in the form of the Note herein. The Authority hereby delegates to the Executive Director the determination of the date on which each Note is to be delivered, in accordance with the Agreement. Section 2. Form of Notes. The Notes shall be in substantially the following form, with the blanks to be properly filled in and the principal amount adjusted as of the date of issue: Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 56 C-3 UNITED STATE OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $_____________ TAX INCREMENT REVENUE NOTE SERIES 20__ (Platia Place, ________ Component) Date Rate of Original Issue ___% The St. Louis Park Economic Development Authority (“Authority”) for value received, certifies that it is indebted and hereby promises to pay to SLP Park Ventures LLC or registered assigns (the "Owner"), the principal sum of $__________ and to pay interest thereon at the rate of __% per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Purchase and Redevelopment Contract between the Authority and the Owner, dated as of _______________, 2018 (the "Agreement"), unless the context requires otherwise. 1. Payments. Principal and interest ("Payments") shall be paid on August 1, 20__ and each February 1 and August 1 thereafter to and including February 1, 20__ ("Payment Dates") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Simple interest accruing from the date of issue through and including February 1, 20__ shall be added to principal. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon 30 days written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a year of 360 days and charged for actual days principal is unpaid. 3. Available Tax Increment. (a) Payments on this Note are payable on each Payment Date solely from and in the amount of Available Tax Increment, which shall mean 95% of the Tax Increment attributable to the [______ Component] of the Minimum Improvements and Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 57 C-4 Redevelopment Property that is paid to the Authority by Hennepin County in the six months preceding each Payment Date on the Note. (b) The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment and the failure of the Authority to pay principal or interest on this Note on any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of Available Tax Increment. The Authority shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final Payment on February 1, 20__. 4.Default. If on any Payment Date there has occurred and is continuing any Event of Default under the Agreement, the Authority may withhold from payments hereunder under all Available Tax Increment. If the Event of Default is thereafter cured in accordance with the Agreement, the Available Tax Increment withheld under this Section shall be deferred and paid, without interest thereon, within 30 days after the Event of Default is cured. If the Event of Default is not cured in a timely manner, the Authority may terminate this Note by written notice to the Owner in accordance with the Agreement. 5.Prepayment. (a) The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular Payment otherwise required to be made under this Note. (b)Upon receipt by Redeveloper of the Authority’s written statement of the Participation Amount as described in Section 3.8 of the Agreement, fifty percent of such Participation Amount will be deemed to constitute, and will be applied to, prepayment of the principal amount of this Note. Such deemed prepayment is effective as of the date of delivery of such statement to the Owner, and will be recorded by the Registrar in its records for the Note. Upon request of the Owner, the Authority will deliver to the Owner a statement of the outstanding principal balance of the Note after application of the deemed prepayment under this paragraph. 6.Nature of Obligation. This Note is one of an issue in the total principal amount of $_________________, issued to aid in financing certain public redevelopment costs and administrative costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 through 469.047, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on ________, 2018, and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This Note is a limited obligation of the Authority which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 58 C-5 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, bearing interest at the same rate and maturing on the same dates. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the St. Louis Park Economic Development Authority have caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY Executive Director President Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 59 C-6 REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Signature of Registration Registered Owner____ City Finance Director SLP Park Ventures LLC Federal Tax I.D. No. _____________ Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 60 C-7 Section 3. Terms, Execution and Delivery. 3.01. Denomination, Payment. Each Note shall be issued as a single typewritten note numbered R-1. Each Note shall be issuable only in fully registered form. Principal of and interest on the Notes shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Principal of and interest on the Notes shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The Authority hereby appoints the Chief Financial Officer 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 Notes and the registration of transfers and exchanges of the Notes. (b) Transfer of Note. Upon surrender for transfer of any 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 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. (c) Cancellation. The 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 any Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such 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 each Note is at any time registered in the bond register as the absolute owner of such Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such 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 such Note to the extent of the sum or sums so paid. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 61 C-8 (f)Taxes, Fees and Charges. For every transfer or exchange of any 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 Note. In case any Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such 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 Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such 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 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 Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Notes shall be prepared under the direction of the Chief Financial Officer 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 any Note shall cease to be such officer before the delivery of such 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 each Note has been so executed, it shall be delivered by the Executive Director to the Owner thereof in accordance with the Agreement. Section 4. Security Provisions. 4.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the Hotel Note all Available Tax Increment attributable to the Hotel Component of the Minimum Improvements as defined in the Note, and hereby pledges to the payment of the principal of and interest on the Multifamily Note all Available Tax Increment attributable to the Multifamily Component of the Minimum Improvements as defined in the Note. Available Tax Increment shall be applied to payment of the principal of and interest on each Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Notes are 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 Notes. 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 Notes in accordance with their terms. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 62 C-9 4.03. Additional Obligations. The Authority will issue no other obligations secured in whole or in part by Available Tax Increment unless such pledge is on a subordinate basis to the pledge on the Notes. Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of each 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 and marketability of each 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 6. Effective Date. This resolution shall be effective upon approval. Reviewed for Administration: Adopted by the Economic Development Authority __________, 2018 Thomas K. Harmening, Executive Director Steve Hallfin, President Attest Secretary Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 63 D-1-1 SCHEDULE D-1 ESTIMATED PUBLIC REDEVELOPMENT COSTS Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 64 D-1-2 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 65 D-2-1 SCHEDULE D-2 CASH-ON-CASH RETURN CALCULATION: MULTIFAMILY COMPONENT Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 66 D-2-2 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 67 D-3-1 SCHEDULE D-3 CASH-ON-COST RETURN CALCULATION: HOTEL COMPONENT Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 68 E-1 SCHEDULE E CERTIFICATE OF COMPLETION WHEREAS, the St. Louis Park Economic Development Authority (the "Authority") and SLP Park Ventures LLC (“Redeveloper”) entered into a certain Purchase and Redevelopment Contract dated _____________, 2018 (“Contract”), filed as Document No. _________ at the office of the County Registrar of Titles; and WHEREAS, the Contract contains certain covenants and restrictions set forth in Articles III and IV thereof related to completing the ___________ Component of certain Minimum Improvements; and WHEREAS, the Redeveloper has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Authority to permit the execution and recording of this certification; NOW, THEREFORE, this is to certify that all construction and other physical improvements related to the _____________ Component of the Minimum Improvements specified to be done and made by the Redeveloper have been completed and the agreements and covenants in Articles III and IV of the Contract have been performed by the Redeveloper, and this Certificate is intended to be a conclusive determination of the satisfactory termination of the covenants and conditions of Articles III and IV of the Contract related to completion of the ___________ Component of the Minimum Improvements, but any other covenants in the Contract shall remain in full force and effect. (The remainder of this page is intentionally left blank.) Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 69 E-2 Dated: _______________, 20__. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Authority Representative STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of _________, 20__ by ______________________, the __________________ of the St. Louis Park Economic Development Authority, on behalf of the Authority. Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza Minneapolis, MN 55402 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 70 F-1 SCHEDULE F ASSESSMENT AGREEMENT _______________________________________________________________________________ ASSESSMENT AGREEMENT [__________ Component] and ASSESSOR'S CERTIFICATION By and Between ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY and SLP PARK VENTURES LLC This Document was drafted by: KENNEDY & GRAVEN, Chartered 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 71 F-2 ASSESSMENT AGREEMENT [______________ Component] THIS AGREEMENT, made on or as of the ____ day of _________________, 2019, by and between the St. Louis Park Economic Development Authority, a public body, corporate and politic (the “Authority”) and SLP Park Ventures LLC, a Minnesota limited liability company (the “Redeveloper”). WITNESSETH, that WHEREAS, on or before the date hereof the Authority and Redeveloper have entered into a Purchase and Redevelopment Contract dated _____________, 2018 (the “Redevelopment Contract”), pursuant to which the Authority is to facilitate development of certain property in the Authority of St. Louis Park hereinafter referred to as the “Property” and legally described in Exhibit A hereto; and WHEREAS, pursuant to the Redevelopment Contract the Redeveloper is obligated to construct certain improvements (the “____________ Component”) upon the Property; and WHEREAS, the Authority and Redeveloper desire to establish a minimum market value for the Property and the ______________ Component to be constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, the Authority and the City Assessor (the “Assessor”) have reviewed the preliminary plans and specifications for the improvements and have inspected such improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for ad valorem tax purposes for the Property described in Exhibit A, together with the ___________ Component constructed thereon, shall be $_____________ as of January 2, 2020, notwithstanding the progress of construction by such date, and shall be $____________ as of January 20, 2021 and each January 2 thereafter until termination of this Agreement under Section 2 hereof. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the earlier of the following: (a) The date of receipt by the Authority of the final payment from Hennepin County of Tax Increments from the Wayzata Boulevard Tax Increment Financing District, or (b) the date when the ______________ Note, as defined in the Redevelopment Contract, has been fully paid, defeased or terminated in accordance with its terms. The event referred to in Section 2(b) of this Agreement shall be evidenced by a certificate or affidavit executed by the Authority. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 72 F-3 3. This Agreement shall be promptly recorded by the Authority. The Redeveloper shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Redevelopment Contract between the Authority and the Redeveloper. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6. Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7. In the event any provision of this Agreement shall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Property or the ___________ Component or for carrying out the expressed intention of this Agreement, including, without limitation, any further instruments required to delete from the description of the Property such part or parts as may be included within a separate assessment agreement. 9. Except as provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 73 F-4 ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ____ day of ________, 2019 by Steve Hallfin and Thomas K. Harmening, the President and Executive Director of the St. Louis Park Economic Development Authority, on behalf of the Authority. Notary Public Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 74 F-5 SLP PARK VENTURES LLC By Its STATE OF MINNESOTA ) ) SS. COUNTY OF__________ ) The foregoing instrument was acknowledged before me this _____ day of _____________, 2019 by ____________________, the ____________________ of SLP Park Ventures LLC, a Minnesota limited liability company, on behalf of the company. Notary Public Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 75 F-6 CERTIFICATION BY CITY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the values assigned to the land and improvements are reasonable. City Assessor for the City of St. Louis Park STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of ____________, 2019 by Cory Bultema, the City Assessor of the City of St. Louis Park. Notary Public Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 76 F-7 EXHIBIT A of ASSESSMENT AGREEMENT Legal Description of Property Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 77 G-1 518115v9 MNI SA285-100 SCHEDULE G Form of Subordination Agreement THIS SUBORDINATION AGREEMENT (this "Agreement") is made as of this _____ day of __________, 20__, between _______________ ("Lender"), whose address is at _________________________, and the ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY, a public body corporate and politic ("Authority"). RECITALS A. SLP Park Ventures LLC, a Minnesota limited liability company ("Redeveloper"), is the owner of certain real property situated in Hennepin County, Minnesota and legally described in Exhibit A attached hereto and incorporated herein (the "Property"). B. Lender has made a mortgage loan to Redeveloper in the original principal amount of $__________ (the "Loan"). The Loan is the evidenced and secured by the following documents: (i) a certain promissory note (the "Note") made by Redeveloper dated __________, 20__, in the amount of $___________; and (ii) a certain mortgage, security agreement and fixture financing statement (the "Mortgage") made by Redeveloper dated __________, 20__, filed __________, 20__, as Hennepin County Recorder/Registrar of Titles Doc. No. __________ encumbering the Property; and (iii) a certain assignment of leases and rents (the "Assignment") made by Redeveloper dated __________, 20__, filed __________, 20__, as Hennepin County Recorder/Registrar of Titles Doc. No. __________ encumbering the Property. The Note, the Mortgage, the Assignment, and all other documents and instruments evidencing, securing and executed in connection with the Loan, are hereinafter collectively referred to as the "Loan Documents." C. Authority is the owner and holder of certain rights under that certain Purchase and Redevelopment Contract (the "Contract") by and between Redeveloper and Authority dated ______________________, 2018, filed ____________, 20__, as Hennepin County Recorder/Registrar of Titles Doc. No. _______________. D. Redeveloper is entitled under the Contract to acquire a certain Tax Increment Tax Revenue Note, Series 20__ in the original principal amount of $______________ (the “TIF Note”). NOW, THEREFORE, in consideration of the foregoing and as an inducement to Lender to make the Loan, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto represent, warrant and agree as follows: Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 78 G-2 518115v9 MNI SA285-100 1. Consent. The Authority acknowledges that the Lender is making the Loan to the Redeveloper and consents to the same. The Authority also consents to and approves the collateral assignment of the Contract and TIF Note (when and if issued) by the Redeveloper to the Lender as collateral for the Loan; provided, however, that this consent shall not deprive the Authority of or otherwise limit any of the Authority’s rights or remedies under the Contract and TIF Note and shall not relieve the Redeveloper of any of its obligations under the Contract and TIF Note; provided further, however, the limitations to the Authority’s consent contained in this Paragraph 1 are subject to the provisions of Paragraph 2 below. 2. Subordination. The Authority hereby agrees that the rights of the Authority with respect to [_____________________] under the Contract are and shall remain subordinate and subject to liens, rights and security interests created by the Loan Documents and to any and all amendments, modifications, extensions, replacements or renewals of the Loan Documents; provided, however, that nothing herein shall be construed as subordinating the requirement contained in the Contract the Property be used in accordance with the provisions of Section 10.3 of the Contract, or as subordinating the Authority’s rights under the TIF Note to suspend payments in accordance with the TIF Note. 3. Notice to Authority. Lender agrees to use commercially reasonable efforts to notify Authority of the occurrence of any Event of Default given to Redeveloper under the Loan Documents, in accordance with Section 7.2 of the Contract. The Lender shall not be bound by the other requirements in Section 7.2 of the Contract. 4. Statutory Exception. Nothing in this Agreement shall alter, remove or affect Lender’s obligation under Minnesota Statutes, § 469.029 to use the Property in conformity to Section 10.3 of the Contract. 5. No Assumption. The Authority acknowledges that the Lender is not a party to the Contract and by executing this Agreement does not become a party to the Contract, and specifically does not assume and shall not be bound by any obligations of the Redeveloper to the Authority under the Contract, and that the Lender shall incur no obligations whatsoever to the Authority except as expressly provided herein. 6. Notice from Authority. So long as the Contract remains in effect, the Authority agrees to give to the Lender copies of notices of any Event of Default given to Redeveloper under the Contract. 7. Governing Law. This Agreement is made in and shall be construed in accordance with the laws of the State of Minnesota. 8. Successors. This Agreement and each and every covenant, agreement and other provision hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, including any person who acquires title to the Property through the Lender of a foreclosure of the Mortgage. 9. Severability. The unenforceability or invalidity of any provision hereof shall not render any other provision or provisions herein contained unenforceable or invalid. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 79 G-3 518115v9 MNI SA285-100 10. Notice. Any notices and other communications permitted or required by the provisions of this Agreement shall be in writing and shall be deemed to have been properly given or served by depositing the same with the United States Postal Service, or any official successor thereto, designated as registered or certified mail, return receipt requested, bearing adequate postage, or delivery by reputable private carrier and addresses as set forth above. 11. Transfer of Title to Lender. The Authority agrees that in the event the Lender, a transferee of Lender, or a purchaser at foreclosure sale, acquires title to the Property pursuant to a foreclosure, or a deed in lieu thereof, the Lender, transferee, or purchaser shall not be bound by the terms and conditions of the Contract except as expressly herein provided. Further the Authority agrees that in the event the Lender, a transferee of Lender, or a purchaser at foreclosure sale acquires title to the Property pursuant to a foreclosure sale or a deed in lieu thereof, then the Lender, transferee, or purchaser shall be entitled to all rights conferred upon the Redeveloper under the Contract, provided that no condition of default exists and remains uncured beyond applicable cure periods in the obligations of the Redeveloper under the Contract. 12. Estoppel. The Authority hereby represents and warrants to Lender, for the purpose of inducing Lender to make advances to Redeveloper under the Loan Documents that: (a) No default or event of default by Redeveloper exists under the terms of the Contract on the date hereof; (b) The Contract has not been amended or modified in any respect, nor has any material provision thereof been waived by either the Authority or the Redeveloper, and the Contract is in full force and effect; (c) Such other reasonable certifications as the Lender may request. 13. Amendments. The Authority hereby represents and warrants to Lender for the purpose of inducing Lender to make advances to Redeveloper under the Loan Documents that Authority will not agree to any amendment or modification to the or any TIF Note issued under the Contract that materially affects the collection of Available Tax Increment (as defined in the Contract) in any way affects the Property without the Lender’s written consent. Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 80 G-4 518115v9 MNI SA285-100 IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the day and year first written above. ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ___________, by _______________________ and ______________________ the President and Executive Director, respectively, of the St. Louis Park Economic Development Authority, a public body corporate and politic, on behalf of such public body. Notary Public Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 81 G-5 518115v9 MNI SA285-100 [LENDER] By: Its Economic development authority meeting of October 15, 2018 (Item No. 7a) Title: Revised Purchase and Redevelopment Contract with SLP Park Ventures, LLC Page 82 Meeting: City council Meeting date: October 15, 2018 Minutes: 3a Unofficial minutes City council special study session St. Louis Park, Minnesota September 17, 2018 The meeting convened at 6:55 p.m. Councilmembers present: Tim Brausen, Steve Hallfin, Rachel Harris, Anne Mavity, Thom Miller, and Margaret Rog. Councilmember Absent: Mayor Jake Spano Staff present: City Manager (Mr. Harmening), Director of Inspections (Mr. Hoffman) Director of Operations and Recreation (Ms. Walsh), Nature Center Manager (Mr. Oestreich), and Recording Secretary (Ms. Pappas). Guest: Tara Blotske, RJM; Glenn Waguespack and Nancy Blankfard, HGA. 1. Westwood Hills Nature Center Project Update Mayor Pro Tem Brausen called the meeting to order. Mr. Waguespack presented the updates on the project. He noted the water feature north of the projected building. Ms. Walsh noted staff is working with Friend of the Arts and has organized an arts and culture taskforce to focus on public art for the project. She added as the project moves forward, staff will work with communications to deliver updates to residents regarding the progress. Mr. Oestreich stated the water and proposed bog will educate students and others about the habitat and plantings on the site, and noted there will be access points for folks to get into the streambed and interact. He also stated he has met with the school district, and presented the plan to them. Mr. Duffy, with the district, stated he is excited about the multipurpose room and would like to do an in-service for teachers there in 2020. Mr. Oestreich went on to note there will be a pollinator area and live animal displays featuring snakes and reptiles in exhibit areas. Councilmember Rog asked about the building being described as “net zero”. Ms. Walsh stated staff is working to standardize the language, and the building is a “zero energy” building, noting with weather factors, there will be some months when zero energy is achieved and others when it is not – therefore it will balance out. Councilmember Rog asked if there is capacity to store energy at the building. Ms. Walsh stated it is designed to feed back into the grid. Mayor Pro Tem Brausen added the city will get credit for the energy sent back to the grid. City council meeting of October 15, 2018 (Item No. 3a) Page 2 Title: Special study session minutes of September 17, 2018 Councilmember Rog stated she is pleased to hear the school partnerships are getting stronger related to the project. She noted it is important to ensure culture inclusion and this is the time to be intentional as it relates to public art, and culture. She encouraged a sharper lens on inclusivity and equity on the project. Ms. Walsh affirmed staff has been working closely with Ms. Sojourner and talking through ideas and arts and culture. She noted there is also an outreach team that has been formed, and staff will be looking for input and feedback, both on programming and art. She added they are also discussing the use of revolving art at the nature center. Councilmember Rog pointed out there is also an opportunity here to include multiple languages in signage and displays at the center, noting the city does a good job of that in municipal buildings. Mayor Pro Tem Brausen agreed with Councilmember Rog on the signage and program materials, adding that self-guided tours are another area where multiple languages should be used. The meeting adjourned at 7:15 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Tim Brausen, Mayor Pro Tem Meeting: City council Meeting date: October 15, 2018 Minutes: 3b Unofficial minutes City council meeting St. Louis Park, Minnesota September 17, 2018 1. Call to order Mayor Pro Tem Brausen called the meeting to order at 7:30 p.m. Councilmembers present: Tim Brausen, Steve Hallfin, Rachel Harris, Anne Mavity, Thom Miller, and Margaret Rog. Councilmembers absent: Mayor Jake Spano. Staff present: City Manager (Mr. Harmening), Community Development Director (Ms. Barton), City Attorney (Mr. Mattick), Deputy City Manager/Human Resources Director (Ms. Deno), Assistant Zoning Administrator (Mr. Morrison), Operations & Recreation Director (Ms. Walsh), Associate Planner (Ms. Kramer), Public Works Services Manager (Mr. Merkley), Natural Resources Coordinator (Mr. Vaughan), Management Assistant (Ms. Carrillo Perez), Police Chief Harcey, and Recording Secretary (Ms. Pappas). Guests: Police Dept. members; Hennepin County Sherriff Stanek; members of Yeshiva community, members of Wat Promwachirayan community; Kaitlyn Murray, Northshore Development, and city residents. 1a. Pledge of allegiance 1b. Roll call 2. Presentations 2a. Evergreen awards Natural Resources Coordinator Mr. Vaughan presented the 2018 Evergreen award to Patricia Janecula of the Wolfe Park neighborhood. He stated her home landscape was awarded this year’s prize because of her very creative and beautiful plantings, landscaping and floral designs. He noted there were five judges inspecting this year’s nominees. Ms. Janecula was presented with an award certificate, Dwarf Alberta Spruce tree, and an award sign to post on her boulevard for two weeks. 2b. Police officer oath of office Chief Harcey presented new officer Mitch Swanson, to be sworn in by City Clerk Kennedy. Chief Harcey stated Officer Swanson began working part-time with the city police force in 2014, while completing his law enforcement education. Officer Swanson was immediately regarded as hardworking, enthusiastic, and mature beyond his years, and was hired by the police department in 2018. Chief Harcey stated Officer Swanson City council meeting of October 15, 2018 (Item No. 3b) Page 2 Title: City council meeting minutes of September 17, 2018 has successfully complete the PTO field training program and has met all the requirements to work as a police officer in St. Louis Park. He and Mayor Pro Tem Brausen congratulated Officer Swanson. Officer Swanson thanked his family and his police partners, along with the city council. 2c. Hennepin County Sheriff’s Office (HCSO) update Sheriff Rich Stanek gave a short presentation to the council and community on the role of the sheriff’s office and the areas they work in including: agency leadership, jail, court security, patrol (in partnership with local police depts.), warrants, civil process, investigations, 911 dispatch, and crime lab. Sheriff Stanek also noted the office’s work in the opioid epidemic. He stated the sheriff’s office educates the public about the epidemic and about opioid deaths. He stated in 2018, they have seen a slight decline, so far; however, deaths have been increasing from overdoses since 2013. Sheriff Stanek noted three programs the county administers related to the opioid epidemic including the #Noverdose campaign, Naloxone, and the drug take back program. Sheriff Stanek thanked the city council and Chief Harcey for doing a great job in St. Louis Park, adding the county appreciates all the hard work the police force does. 2d. Recognition of donations Mayor Pro Tem Brausen expressed his thanks on behalf of the council for the following donations: • Athletic Business donated up to $450 for Recreation Superintendent Jason West to attend the Athletic Business conference in New Orleans, LA, November 7-10, 2018. • American Legion donated $3000 to ROCtoberfest event to be held September 28, 2018. • Ken and Sue Isler donated $300 for the planting of a tree honoring Anna Nichole Isler in Shelard Park. • Linda Mell donated $300 for the planting of a memorial tree in Wolfe Park. • Friends of the Parks and Trails of St. Paul and Ramsey County donated $80 for trees to be planted in city parks. • True North Leadership donated $3000 for partial program tuition costs for Racial Equity Manager Alicia Sojourner to attend the True North Leadership program in Scotts Valley, CA, October 14-19, 2018. 3. Approval of minutes 3a. Special study session minutes of August 6, 2018 It was moved by Councilmember Hallfin, seconded by Councilmember Miller, to approve the August 6, 2018 meeting minutes as presented. City council meeting of October 15, 2018 (Item No. 3b) Page 3 Title: City council meeting minutes of September 17, 2018 The motion passed 6-0. 3b. City Council minutes of August 6, 2018 Councilmember Harris stated in the communication section, her comments should read: “Councilmember Harris added there is an inaugural TexaTonka Neighborhood Association meeting at Ainsworth Park is on Thursday August 16th, from 6-8 p.m. and encouraged folks to attend.” Councilmember Rog noted on page 8, it should read, “She also suggested a landing above the trail entrance at 23rd Street to allow bikers entering trail to make sure the trail is clear before entering.” It was moved by Councilmember Mavity, seconded by Councilmember Rog, to approve the August 6, 2018 meeting minutes with corrections. The motion passed 6-0. 3c. Study session minutes of August 13, 2018 Councilmember Rog noted on the bottom of page 7, it should read, “Councilmember Rog said she was notified by STEP that they are willing to partner to administer the fund on behalf of the city.” Councilmember Rog added on page 9, the following sentence should be stricken from the minutes: “She stated she does not feel satisfied with the racial equity on this, and doesn’t understand consequences.” It was moved by Councilmember Miller, seconded by Councilmember Hallfin, to approve the August 13, 2018 meeting minutes with corrections. The motion passed 6-0. 3d. City council meeting minutes of August 20, 2018 Councilmember Rog noted on page 4, a spelling correction of the name “Marilyn Klug”. Mayor Pro Tem Brausen added in 8a in the last paragraph, it should read “…. assured the council….” as opposed to “insured the council”. It was moved by Councilmember Rog, seconded by Councilmember Hallfin, to approve the August 20, 2018 meeting minutes with changes. The motion passed 6-0. 3e. Special city council meeting minutes of August 27, 2018 City council meeting of October 15, 2018 (Item No. 3b) Page 4 Title: City council meeting minutes of September 17, 2018 It was moved by Councilmember Miller, seconded by Councilmember Rog, to approve the August 27, 2018 meeting minutes as presented. The motion passed 6-0. 3f. Study session minutes of August 27, 2018 It was moved by Councilmember Miller, seconded by Councilmember Hallfin, to approve the August 27, 2018 meeting minutes as presented. The motion passed 6-0. 4. Approval of agenda and items on consent calendar 4a. Adopt Resolution No. 18-135 authorizing the 2019 Preliminary HRA Levy. 4b. Adopt Resolution No. 18-136 approving acceptance of a donation from Athletic Business in an amount not to exceed $450 to cover the registration fee for Jason West, Recreation Superintendent, to attend the Athletic Business Conference in New Orleans, Louisiana November 7 - 10, 2018. 4c. Adopt Resolution No. 18-137 approving acceptance of a monetary donation from the American Legion in the amount of $3,000 for the ROCtoberfest event to be held September 28, 2018. 4d. Adopt Resolution No. 18-138 approving acceptance of monetary donations as follows: • Ken and Sue Isler in the amount of $300 honoring Anna Nicole Isler with a memorial tree in Shelard Park. • Linda Mell in the amount of $300 for a memorial tree in Wolfe Park. • Friends of the Parks and Trails of St. Paul and Ramsey County in the amount of $80 for trees to be planted in city parks. 4e. Approve a temporary on-sale 3.2% malt liquor license for Best Friends Animal Society for their event to be held on September 29, 2018 at Wolfe Park, 3700 Monterey Drive in St. Louis Park. 4f. Adopt Resolution No. 18-139 accepting work and authorizing final payment in the amount of $25,610.51 for the annual sanitary sewer mainline rehabilitation project with Visu-Sewer, Inc. - Project No. 4018-3000, City Contract No. 46-18. 4g. Adopt Resolution No. 18-140 approving acceptance of a monetary donation from True North Leadership in an amount of $3,000 to cover partial program tuition for Alicia Sojourner, Racial Equity Manager, to attend the 2018 True North Leadership program in Scotts Valley, CA. 4h. Approve for filing planning commission meeting minutes of August 1, 2018 It was moved by Councilmember Hallfin, seconded by Councilmember Mavity, to approve the agenda as presented and items listed on the consent calendar; and to waive reading of all resolutions and ordinances. The motion passed 6-0. 5. Boards and commissions 5a. Appointment of youth representative to boards and commissions City council meeting of October 15, 2018 (Item No. 3b) Page 5 Title: City council meeting minutes of September 17, 2018 It was moved by Councilmember Rog, seconded by Councilmember Harris, to approve the appointment of Zoe Frank to the Environment and Sustainability Commission (ESC) as youth member for one-year term ending on August 31, 2019. The motion passed 6-0. 6. Public hearings 6a. Consolidated public hearing I.-VI. 2019 Budget and property owner service charges for Special Service Districts 1, 2, 3, 4, 5, and 6. Mr. Merkley presented the staff report. He noted the 2019 proposed budgets and service charges are similar to that of past years, and pointed out staff has held meetings with the property owners from each of the six districts and received their support for approving the proposed 2019 budgets and service charges. Mr. Merkley stated there is no formal action to be taken today and action on the budget and service charges will be placed on the October 1 council agenda. Mayor Pro Tem Brausen opened the public hearing. Mr. Bertomeu, 4419 Excelsior Blvd., asked if the 14 petitions are for or against the Special Service District 2 reauthorization. Mr. Merkley stated for the reauthorization of the special district, there were 14 petitions from the 26 properties and requirement for approval is 25%. Mr. Bertomeu stated he did contact staff about this issue, and he would like the city council to consider changing the methodology for how the service charges are calculated to make it more fair for small businesses, such as his. He stated the costs are too high for him and he cannot compete against other larger developments on Excelsior Avenue. Mayor Pro Tem Brausen closed the public hearing. Mr. Harmening noted that the formula used for charging businesses on Excelsior Boulevard was developed by the property owners. He added these property owners chose how they wanted to have the costs allocated based on services provided. 7. Requests, petitions, and communications from the public – none 8. Resolutions, ordinances, motions and discussion items 8a. Educational facilities with student housing in the R-4 multiple-family residence district. City council meeting of October 15, 2018 (Item No. 3b) Page 6 Title: City council meeting minutes of September 17, 2018 Mr. Morrison presented the staff report. He stated the recommended action is to approve the first reading of an ordinance related to educational facilities in the R-4 multiple-family residence zoning district, and to set the second reading for October 1, 2018. Mr. Morrison stated the Yeshiva of Minneapolis requests an amendment to section 36- 166 (d) (8) of the St. Louis Park city code proposing to: 1. Allow dormitories as part of educational facilities in the R-4 district. 2. Limit the number of dorm rooms allowed based on the parcel size. 3. Limit the number of students to 200 that can live at the school. Mr. Morrison added that the Yeshiva is planning an expansion of their school, and if the amendment is approved, the Yeshiva of Minneapolis must request a rezoning of their property from R-3 to R-4, obtain approvals for conditional use permits for the expansion, comprehensive plan amendment, lot combination and variances. He added there are currently no schools located in the R-4 zoning district, so the Yeshiva of Minneapolis would be the first school utilizing the amendment if the applications above are approved. Councilmember Rog stated the school is in Ward 1, and she has met with the Rabbi and also attended the neighborhood meetings, where neighbors were supportive. She stated she supports the change in zoning, and pointed out that she learned how very popular the Yeshiva is around the country, and that those attending are doing so because of St. Louis Park’s safe community. She added the building will be tucked into a hill in an innovative way, with less impacts evident, noting the boys at the school do not drive cars, so there will be no increase in traffic. She wished the group well. Councilmember Mavity asked about the additional square footage, adding a dormitory is definitely new to St. Louis Park. Councilmember Mavity noted her concerns about alignment of the total square footage with the living space, adding she does not understand how the city is defining that, and why the city is not providing more guidance on the living space in the building. Mr. Morrison stated the school is proposing quads for the dorm living space, adding there is ample room for the living space, and they are limited to 200 students. He noted the school is able to divide up the living spaces however they want. Councilmember Mavity noted she has no problem with the proposal, and does not want to be disruptive in moving this forward; however, the way it is being set up lacks clarity, and she is concerned about setting precedent. Shlomo Kutoff, 4401 W. 25th St., stated the living quarters must be in alignment with the MN Health Department regulations, adding they are under inspection by the health department, and the school bases their number on what is allowed. He stated the Yeshiva is following the health department guidelines. City council meeting of October 15, 2018 (Item No. 3b) Page 7 Title: City council meeting minutes of September 17, 2018 Councilmember Mavity stated it would be helpful in the staff report for the second reading to provide an explanation of how space is defined and if other entities are handling this. It was moved by Councilmember Rog, seconded by Councilmember Miller, to approve the first reading of an ordinance pertaining to educational facilities in the R-4 multiple- family residence zoning district, and setting the second reading for October 1, 2018. The motion passed 6-0. 8b. 2019 preliminary property tax levy certification. Resolution No. 18-141. Mr. Simon noted the 2019 preliminary property tax levy at $33,392,261, which is a 5.18% change over the 2018 final property tax levy. Mr. Simon also provided the date and time for the truth in taxation proposed public hearing on the 2019 budget as December 3, 2018. He reviewed the calendar for October, November and December and referred to the staff report for details. The council will then adopt the 2018 revised budget, 2019 budgets, final tax levies (city and HRA) and 2019-2028 CIP at the December 17, 2018 meeting. Councilmember Mavity stated the council discusses this each year, noting this is one of the more important decisions made by council. She added this outlines funding for services everyone wants for the community and added, the council can propose a lower tax levy amount, but not a higher one. She also stated her constituents want value and good services in the city, adding the city has been consistent in delivering services, year over year, and she will support this tonight. Councilmember Miller stated he will oppose this tonight, not because the city is not well-managed, but he feels the property taxes are regressive, and he is very concerned about the elderly who are on fixed incomes and face increases in their cost of living. He added renters also are not seeing any increase in their property values, and he is concerned about them as well. He stated he advocates the increases be moderate and closer to wage growth figures over the past 20 years, at 3% vs. the 5.18% proposed. Councilmember Rog stated she appreciates Councilmembers Miller’s and Mavity’s comments, adding she has put much thought into this, but will be voting in favor of the tax levy tonight. She stated she is hopeful the council and community can look for ways to reduce costs, while getting more in line with the values of the city. Mayor Pro Tem Brausen added the council has been engaged in this since June and has discussed the need to continue the level of services everyone in St. Louis Park enjoys. He stated the city does a good job of managing these services and he invited the public to become involved in this process as well, adding everyone is encouraged to let the council know their thoughts on this. He stated he will also support this. It was moved by Councilmember Mavity, seconded by Councilmember Harris, to adopt Resolution No. 18-141, approving 2019 preliminary property tax levy. City council meeting of October 15, 2018 (Item No. 3b) Page 8 Title: City council meeting minutes of September 17, 2018 The motion passed 5-1 (Councilmember Miller opposed). It was moved by Councilmember Mavity, seconded by Councilmember Harris, to set the budget public hearing date for December 3, 2018. The motion passed 6-0. 8c. Wat Promwachirayan conditional use permit for 2544 Hwy. 100. Resolution No. 18-142. Mr. Morrison presented the staff report. If approved, the resolution will allow a conditional use permit (CUP) for a religious institution at 2544 Hwy. 100, with conditions. Mr. Morrison stated the Wat Promwachirayan (Wat Prom) requests a CUP to operate a Buddhist Temple at 2544 Hwy. 100, to expand their parking lot, and to export more than 400 cubic yards of material. Mr. Morrison noted there are three phases of development: 1. Parking lot and stormwater improvements beginning this fall 2. Construct new service hall approximately 10 years from now 3. Construct new meditation hall approximately 20 years from now Mr. Morrison stated two neighborhood meetings were held, and those in attendance were generally in support of the plans, although there were some comments about trees to be removed for the project. Councilmember Miller stated he was shocked about the fees, adding it seems like an extraordinary amount for the trees. He asked if there are scrub trees in the area, or larger trees. Mr. Morrison stated the fee is based on the removal of large trees. He added removal depends on species and trunk size. Councilmember Brausen noted there is a storm sewer and sanitary sewer on the lot, and asked how site storm water requirements will be met. Mr. Morrison stated there is a storm water improvement proposed under the parking lot, adjacent to the storm and sanitary sewer. The storm water improvement is all part of phase 1. Sharon Lehrman, 2610 Vernon Ave. S., stated she lives directly across from the green space area and is a 35-year resident of Birchwood. She was born and raised in St. Louis Park and is sad to see so many trees gone on the boulevard. She stated she has always loved the green spaces in the city, and was sad over the loss of over 200 trees in her neighborhood due to the Lyman Lumber parking expansion. She noted how trees provide clean air, water, and improved mental health and asked the council to consider these things. She stated every little green space that goes away is a loss to the entire community. She asked, since the temple will not build the social hall until phase 2, which is 10 years from now, why do they need to remove the trees now. City council meeting of October 15, 2018 (Item No. 3b) Page 9 Title: City council meeting minutes of September 17, 2018 Councilmember Harris stated in the plan, the community garden space is to remain, and asked if Wat Prom might consider removing the garden and replacing it with trees, which might be a good compromise, and would also lower the fees. Councilmember Rog stated Wat Prom has been a welcome neighbor in Birchwood, and a good partner, adding she also is disappointed with the loss of trees, but happy with the temple’s growth in the community and making St. Louis Park their home. She stated there has been good compromise, and she believes there is a commitment to preserve as many trees as possible. She added the parking needs are significant so there is a good rationale for the change. It was moved by Councilmember Rog, seconded by Councilmember Miller, to adopt Resolution No. 18-142, approving a conditional use permit (CUP) for a religious institution at 2544 Highway 100, with conditions. The motion passed 6-0. 8d. Urban Park Apartments conditional use permit and variances for 3601 Phillips Parkway. Resolution No. 18-143. Ms. Kramer presented the staff report. She noted that the developer is requesting a conditional use permit (CUP) and five variances to build a second apartment building at 3601 Phillips Parkway. The variance request includes an increase in the maximum allowed ground floor area ratio; an increase in the maximum allowed floor area ratio; a reduction in the amount of required parking; and, a reduction in the side yard widths. Ms. Kramer stated a neighborhood meeting was held and about 10 residents attended and expressed concerns about parking on the site. She further stated the planning commission held a public hearing on August 15, 2018, at which time two residents provided feedback on the project. The planning commission recommended approval of the application 5-0 with one abstention. Councilmember Harris asked, given the parking variance request with 26 spaces not met, where will guests park at the property. Ms. Kramer stated management will issue guest parking passes to residents, who in turn would give them to their guests for on- site parking. Councilmember Harris stated she had feedback from several residents related to the bike trail southeast of the site line, referring to some challenges with building on this space. She noted she received assurances the development would deal with this issue, and yet there was a slight discrepancy in the staff report related to this. Ms. Kramer stated staff feedback was that the trail will be kept open during the entire project; however, there are plans to have re-routes of the trail, during the project, when needed. City council meeting of October 15, 2018 (Item No. 3b) Page 10 Title: City council meeting minutes of September 17, 2018 Councilmember Miller asked about Shalom to the west and if they participated in the neighborhood or planning commission meetings. Ms. Kramer stated a representative from Shalom was in attendance at the planning commission meeting, and talked about concerns related to guest parking at their site, and also general parking concerns. Councilmember Hallfin stated he will defer to Councilmember Harris, the Ward 3 councilmember, but noted he has attended many events at Knollwood Plaza, adding there is typically no place to park there when large events are taking place. Councilmember Rog also deferred to Councilmember Harris on this, but stated she echos these parking concerns. Donna Rock, 3601 Phillips Parkway, stated she is a long-term St. Louis Park resident and attended the planning commission meeting. She said the parking variance was for 35 spaces at that meeting, but now is down to 26. Ms. Kramer stated the parking plan was re-worked since the planning commission meeting. Ms. Rock stated she has concerns about traffic and parking in the area, adding other residents are concerned also. She stated many who live there currently have 2 and 3 cars, and many times must park blocks away, due to lack of parking there already. She added she also has concerns about trees being taken away from the area, and the underground garage becoming a two-way exit and entrance vs. one-way, as it is currently. Ms. Murray, Northshore Property Development representative, stated plans have been provided related to the trees and site lines, which include curb cuts for greater visibility. She also noted the bike trail will continue to stay open. Ms. Murray added they have worked on a parking plan and implemented a registered car process. She stated a towing company will also be hired to remove cars that are parking illegally at the site. She stated they are committed to making sure parking will run smoothly there. Mayor Pro Tem Brausen asked if charging stations will be available in the building. Ms. Murray stated yes, along with bike racks, and irrigation systems for watering. Councilmember Mavity stated she is really excited about this project, noting it is exactly the type of project the city should be embracing. She stated the city needs to be smart and creative so as to support population growth in our city, and this little slip of land can help the city achieve their goals of affordable housing. Councilmember Mavity said there will be hardworking folks living there, and it is built on a current bike superhighway and behind a grocery store, so hopefully folks will be able to reduce their driving, as the area promotes biking and walking, plus there will be affordable housing there as well. She stated the city is at a cusp of change here, and she will support the project. City council meeting of October 15, 2018 (Item No. 3b) Page 11 Title: City council meeting minutes of September 17, 2018 Mayor Pro Tem Brausen stated if parking is made too easy, people will fill up the spaces. He added hopefully electric cars will be smaller, and noted he puts much credence in staff recommendations, as they understand the city’s goals and get the highest use of land. He stated the project makes sense to him and he will also support it. It was moved by Councilmember Harris, seconded by Councilmember Mavity, to adopt Resolution No. 18-143, approving a conditional use permit and variances for construction of an apartment building at 3601 Phillips Parkway, with conditions. The motion passed 6-0. 9. Communications Mr. Harmening stated Friday September 21, absentee voting begins at city hall from 8 a.m. to 4:30 p.m. Mr. Harmening also stated Saturday, September 22, is the city’s annual fall clean-up day, at the Municipal Service Center on Oxford Street, adding folks should visit the city website for more details. Councilmember Rog noted a fundraiser for the Lenox Foundation at Parkway Pizza, on Minnetonka and Dakota Avenues, on Tuesday, September 25, from 11 a.m. – 10 p.m. and 10 % of all sales will go to the foundation and seniors in the community. Councilmember Harris stated the St. Louis Park Art Fair will be held Saturday, September 22, from 11 a.m. – 6 p.m. at the ROC, and in conjunction with SLP Friends of the Arts. She also noted a bikeway/sidewalk open house on Tuesday, September 25, at City Hall from 6-7:30 p.m. and an additional open house for the Dakota Avenue bikeway, and the pedestrian bridge over the railroad tracks, at Peter Hobart School on September 26, from 6-7:30 p.m. Mayor Pro Tem Brausen noted ROCtober Fest on Sunday, October 28. He stated he attended the St. Louis Park employee recognition event at the ROC recently and thanked employees for being involved in racial equity efforts and for all their hard work. He stated folks with 30 years or more of service were recognized. 10. Adjournment The meeting adjourned at 9:40 p.m. ______________________________________ ______________________________________ Melissa Kennedy, City Clerk Tim Brausen, Mayor Pro Tem Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4a Executive summary Title: Affordable housing trust fund ordinance and policy Recommended action: Motion to approve second reading and adopt Ordinance amending the St. Louis Park code of ordinances relating to the establishment of an affordable housing trust fund and the housing trust fund policy to guide the use of the fund. Policy consideration: Does the council wish to establish a local affordable housing trust fund? Summary: At the August 13, 2018 study session, staff presented a draft affordable housing trust fund policy that identified the fund objectives, funding resources and eligible uses of the funds. The council supported establishing the trust fund and directed staff to draft an ordinance creating an affordable housing trust fund to be administered by the city and return to a future council meeting for the first reading of the ordinance. Adoption of the ordinance is required by law to create the housing trust fund and the housing trust fund policy sets forth the guidelines under which the fund will be operated. At the October 1, 2018 council meeting, the council approved the first reading of the ordinance relating to the creation of a local affordable housing trust fund and set the second reading for October 15, 2018. Financial or budget considerations: The primary source of funding for the affordable housing trust fund will be an annual budgeted allocation of funds from the city’s HRA tax levy as approved by the city council, although the city may finance the fund with any money available to a local government unless prohibited by state law. Strategic priority consideration: St. Louis Park is committed to providing a broad range of housing and neighborhood oriented development. Supporting documents: Discussion Affordable housing trust fund policy Ordinance Prepared by: Michele Schnitker, Housing Supervisor & CD Deputy Director Reviewed by: Karen Barton, Community Development Director Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 4a) Page 2 Title: Affordable housing trust fund ordinance and policy Discussion Background: Local affordable housing trust fund: The Minnesota legislature passed a bill in 2017 that allows local communities to establish housing trust funds. The housing trust fund may be established by ordinance and administered by the city. Money in a housing trust fund may only be used to: • pay for administrative expenses not to exceed 10% of the balance of the fund; • make grants, loans, and loan guarantees for the development, rehabilitation, or financing of housing; • match other funds from federal, state, or private resources for housing projects; and/or • provide down-payment assistance, rental assistance, and homebuyer counseling services. The city may finance the fund with any money available to a local government, unless expressly prohibited by state law. Sources include, but are not limited to: • donations; • bond proceeds; • grants and loans from a state, federal, or private source; • appropriations by a local government to the fund; • investment earnings of the fund; • TIF pooled funds; and • housing and redevelopment authority levies. The proposed primary source of funding for the city’s trust fund is an annual budgeted allocation of HRA levy funds, which will be available beginning in 2020. Attached is a proposed affordable housing trust fund policy for council review and approval that identifies fund objectives, funding resources and eligible uses of the funds. The city’s chief financial officer has reviewed the policy. Also attached is the ordinance that establishes the trust fund. At the October 1, 2018 council meeting, the council approved the first reading of the ordinance related to the establishment study session and set the second the second reading for October 15, 2018. Staff will be presenting additional affordable housing strategies for discussion including the 4(d) tax classification, legacy transfer program, and establishment of an affordable housing fee or tax at an upcoming council study session in November. Next steps: Following approval of the second reading of the ordinance and approval of the policy, the ordinance will take effect November 9, 2018. City council meeting of October 15, 2018 (Item No. 4a) Page 3 Title: Affordable housing trust fund ordinance and policy City of St. Louis Park Affordable Housing Trust Fund Policy I. PURPOSE The City of St. Louis Park has established an Affordable Housing Trust Fund to provide a source of funds to facilitate the housing needs of low and moderate income individuals and families of the City. The Affordable Housing Trust Fund shall be a permanent endowment and continually renewable source of revenue to provide loans and grants to for-profit and non-profit housing developers for the acquisition and capital and soft costs necessary for the creation of new affordable rental and owner-occupied housing, for the rehabilitation and preservation of existing multi-family residential rental housing including Naturally Occurring Affordable Housing (NOAH) and rental assistance and homeownership assistance to low and moderate income individuals and families. This policy is intended to set forth the general requirements and guidelines regarding the use of the Affordable Housing Trust Fund. The city council may modify the terms at any time. II. FUNDING THE AFFORDABLE HOUSING TRUST FUND ACCOUNT The primary source of funding for the Affordable Housing Trust Fund is an annual budgeted allocation of funds from the city’s Housing and Redevelopment Authority (HRA) Tax Levy as approved by the city council. Other sources of funding for the Affordable Housing Trust Fund may include, but are not limited to the following: 1. Private cash donations from individuals and corporations designated for the Affordable Housing Trust Fund. 2. Payments in lieu of participation in current or future affordable housing programs, as allowed. 3. Matching funds from a federal or state affordable housing trust fund; or a state program designated to fund an affordable housing trust fund. 4. Principal and interest from Affordable Housing Trust Fund loan repayments and all other income from Trust Fund activities. 5. The sale of real and personal property. 6. Federal and state grants. 7. Local government appropriations, development fees and other funds as designated from time to time by the City Council. 8. Tax Increment Finance (TIF) pooled funds. City council meeting of October 15, 2018 (Item No. 4a) Page 4 Title: Affordable housing trust fund ordinance and policy City staff is directed to take all actions necessary to capitalize and maintain the fund balance in the Affordable Housing Trust Fund to the extent that funds are subject to restrictions as to their use by virtue of the source of such funds. The Affordable Housing Trust Fund will contain sub- accounts to ensure that such restrictions as to the reuse of the funds are met. III. OBJECTIVES The objective of the Affordable Housing Land Trust is to assist in funding programs and proposals that create new affordable rental and homeownership housing opportunities and to rehabilitate and preserve existing affordable housing units in St. Louis Park. Initiatives will strive to provide balanced and sustainable affordable housing options responsive to the present and future diversified needs in the community for very low, low and moderate income households including: persons on fixed incomes, such as seniors and persons with disabilities; young families just starting out; indigenous persons; persons of color; and veterans. The Affordable Housing Trust fund will promote community revitalization and reinvestment by creating and preserving viable, safe and well maintained affordable housing developments and expanding options for affordable homeownership for very low, low and moderate income households. IV. USE OF THE AFFORDABLE HOUSING TRUST FUND As a matter of policy, the Affordable Housing Trust Fund will only be used to assist proposed projects or programs to develop or preserve affordable housing opportunities for low and moderate income individuals and families. The following general guidelines will be followed in connection with the use of funds from the Affordable Housing Trust Fund: 1. The types of uses of the Affordable Housing Trust Fund will include, but not be limited to the following: (i) the making of loans at interest rates below or at market rates, including no-interest, deferred, and forgivable loans, in order to strengthen the financial feasibility of proposed projects; (ii) the guaranteeing of loans; (iii) the provision of gap financing for affordable housing developments; (iv) the financing of acquisition, demolition, and disposition; (v) the financing of the construction of public improvements and utilities to aid proposed affordable residential developments; (vi) the financing of rehabilitation, remodeling, or new construction of affordable housing; (vii) tenant and project based rental assistance; (viii) administrative costs associated with affordable housing programs; and (ix) any other uses as permitted by applicable law and approved by the council. 2. The Affordable Housing Trust Fund may be used to provide interim financing of public cost for affordable housing projects in anticipation of a permanent financing source (i.e. construction financing, bond sale, etc.). 3. To the extent possible the Affordable Housing Trust Fund will be secured by liens, letters of credit, tax increment, or other forms of reasonable security. City council meeting of October 15, 2018 (Item No. 4a) Page 5 Title: Affordable housing trust fund ordinance and policy 4. Consideration regarding the establishment of applicable terms on loans from the Affordable Housing Trust Fund, including interest rates and deferral provisions, will be established by the city at the time of approval of a specific project or program. V. PROCESS In establishing projects and programs to be financed using the Affordable Housing Trust Fund, the city shall to the extent possible: 1. Establish guidelines and criteria for each project or program to be assisted unless the project or program already exists. 2. Establish a timeframe for completing the project or program and the repayment terms to the Affordable Housing Trust Fund, if applicable. 3. Prepare a financing plan for the project or program for review and approval by the city council and by other entities as may be required by state law. City council meeting of October 15, 2018 (Item No. 4a) Page 6 Title: Affordable housing trust fund ordinance and policy Ordinance No. ___-18 An ordinance establishing an affordable housing trust fund The City of St. Louis Park does ordain: Section 1. Definitions. The following definitions apply in this Ordinance. Persons of very low income means families and individuals whose incomes do not exceed 50 percent of area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul- Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families. Persons of low income means families and individuals whose incomes do not exceed 80 percent of the area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul- Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families. Persons of moderate income means families and individuals whose incomes exceed 80 percent, but do not exceed 120 percent, of area median income, as median income was most recently determined by the United States Department of Housing and Urban development for the Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin Metropolitan Statistical Area, as adjusted for smaller and larger families. Section 2. Pursuant to the authority granted to the city under Minnesota Statutes Section 462C.16, an affordable housing trust fund is established to provide loans and grants to for-profit and non-profit housing developers for the acquisition and capital and soft costs necessary for the creation of new affordable renter and owner-occupied housing, for the rehabilitation and preservation of existing multi-family residential rental housing including Naturally Occurring Affordable Housing (NOAH) and rental assistance and homeownership assistance to persons of very low, low and moderate income. Section 3. The Affordable Housing Trust Fund shall be funded by an annual budgeted allocation of funds from the city’s Housing and Redevelopment Authority (HRA) levy as approved by the city council. Other sources of funding may include, but are not limited to: (a) Private cash donations from individuals and corporations designated for the Affordable Housing Trust Fund. (b) Payments in lieu of participation in current or future affordable housing programs. (c) Matching funds from a federal or state affordable housing trust fund; or a state program designated to fund an affordable housing trust fund. City council meeting of October 15, 2018 (Item No. 4a) Page 7 Title: Affordable housing trust fund ordinance and policy (d) Principal and interest from Affordable Housing Trust Fund loan repayments and all other income from Trust Fund activities. (e) The sale of real and personal property. (f) Local government appropriations, development fees and other funds as designated from time to time by the city council. (g) Tax Increment Finance (TIF) pooled funds. Section 4. The city may use money from the Affordable Housing Trust Fund to assist proposed projects or programs to develop or preserve affordable housing for persons of very low, low and moderate income to include: (a) Making loans at interest rates below or at market rates in order to strengthen the financial feasibility of proposed projects. (a) Guaranteeing of loans. (b) Providing gap financing for affordable housing developments. (c) Financing the acquisition, demolition, and disposition of property for affordable housing projects. (d) Financing construction of public improvements and utilities to aid proposed affordable residential developments. (e) Financing the rehabilitation, remodeling, or new construction of affordable housing. (f) Tenant and project based rental assistance. (g) Funding for acquisition and rehab in conjunction with related to housing trust fund projects. (h) Funding to facilitate affordable homeownership opportunities including down payment assistance, second mortgages, closing costs, etc. (i) Administrative costs associated with affordable housing programs. (j) Interim financing of public costs for affordable housing projects in anticipation of a permanent financing source (i.e. construction financing, bond sale, etc.) (k) Other uses as permitted by law and approved by the city council. City council meeting of October 15, 2018 (Item No. 4a) Page 8 Title: Affordable housing trust fund ordinance and policy Section 5. The city shall determine the terms and conditions of repayment of loans and grants from the Affordable Housing Trust Fund including the appropriate security and interest, if any, should repayment be required. Interest on loans and grants shall be as established by the city from time to time or at the time of approval of a specific project or program. Section 6. The Affordable Housing Trust Fund shall report annually to the city on the use of the Affordable Housing Trust Fund account including the number of loans and grants made, the number and types of residential units assisted through the account, and the number of households for whom rental assistance payments were provided. The city shall post the report on its Web site. Section 7. This Ordinance shall take effect after passage and publication. Reviewed for administration: Adopted by the City Council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to form and execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney First Reading October 1, 2018 Second Reading October 15, 2018 Date of Publication October 25, 2018 Date Ordinance takes effect November 9, 2018 Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4b Executive summary Title: Adoption of 2019 utility rates Recommended action: Motion to adopt Resolution setting the 2019 Utility Rates. Policy consideration: Are the modifications to the utility rates, including water tier structure, adequate to meet the conservation goals of the city council and insure long term sustainability of the City’s utility operations and capital plans? Summary: At the September 24, 2018 study session Ehlers and staff presented the results and recommendations of the recently completed utility rate review/analysis. Highlights of the study included a lowered residential tier structure, the introduction of commercial and industrial water tiers, and new options of 20 and 30 gallon every other week garbage service. Rates were adjusted to support utility operations and capital plans over the next 10 years and maintain long-term sustainability in each of the four utility funds. At the October 8, 2018 study session, staff presented the proposed utility rates to Council in a written report as part of the fee schedule. Solid waste rates continue to support pay as you throw, and encourages recycling and organics use. Water and sewer rates are structured to encourage water conservation. For 2019, the approximate cumulative effect on a typical residential property for all the utility rate adjustments would be an increase of $19.13/quarter, or approximately $6.38 per month. The calculation is based on a family of four using 30 units of water per quarter (22,500 gallons), and 60 gallon solid waste service. Another example, if that same property used 30 units of water per quarter (22,500 gallons), and switched from a 60 gallon to 30 gallon solid waste service, the overall bill would decrease by $5.55/quarter or $1.85/month. The recommended rates will be in place for consumption or services provided beginning on January 1, 2019. The attached resolution provides specific information on the recommended rate adjustments for each fund. Financial or budget considerations: Water, sewer, storm water and solid waste are enterprise funds and are anticipated to have rates that cover the fund for all the related costs from debt service, operations and capital improvement plans. The utility rates will support necessary city services and capital improvements during 2019. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: 2019 proposed utility rates - Impact on a residential property Resolution Utility rates summary Prepared by: Mark Ebensteiner, Finance Manager Reviewed by: Tim Simon, Chief Financial Officer Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 4b) Page 2 Title: Adoption of 2019 utility rates 2019 proposed utility rates Impact on a residential property Household Size 4 Water - Units per quarter 30 Sewer - Winter average 20 Solid Waste Service 60-gallon Meter size 3/4 inch Actual Proposed Dollar Percent Service Type 2018 2019 Change Change Water Per unit rate - Tier 1 1.89$ 1.89$ -$ 0.00% Per unit rate - Tier 2 2.34$ 2.30$ (0.04)$ -1.71% Service charge 27.23$ 31.31$ 4.08$ 14.98% State testing fee 1.59$ 1.59$ -$ 0.00% Consumption 56.70$ 63.53$ 6.83$ 12.05% Sewer Service charge 17.61$ 18.49$ 0.88$ 5.00% Per unit 3.44$ 3.61$ 0.17$ 4.94% Consumption 68.80$ 72.20$ 3.40$ 4.94% Storm Drainage Service charge 23.14$ 23.83$ 0.69$ 2.98% Bassett Creek Fee*1.93$ 1.93$ -$ 0.00% Solid Waste (includes tax)72.45$ 75.70$ 3.25$ 4.49% Total Bill without Bassett*267.52$ 286.65$ 19.13$ 7.15% Increase per quarter (dollars)19.13$ Increase per month (dollars)6.38$ * Since not all property owners would be charged this fee, it is not included in the dollar or percentage change in total bill. City council meeting of October 15, 2018 (Item No. 4b) Page 3 Title: Adoption of 2019 utility rates Resolution No. 18-____ Resolution setting utility rates Whereas, The City Council of the City of St. Louis Park, Minnesota has received a report from the Chief Financial Officer related to proposed utility rates; and Whereas, it is necessary for the city to maintain charges in an amount necessary to cover the cost of providing services to users; and Whereas, maintaining rates through regular adjustment is a recommended practice rather than large intermittent increases; Now therefore be it resolved by the City Council of the City of St. Louis Park, Minnesota, that: 1.The water rates as recommended are hereby adopted. Residential Units of Usage*Adopted Rate Tier 1 0 - 13.333 units (0 - 10,000 gallons)1.89$ Tier 2 13.333 - 20 units (10,000 - 15,000 gallons)2.30$ Tier 3 > 20 units (>15,000 gallons)2.75$ Multi Family All units 2.30$ Commercial Tier 1 0 - 100 units (0 - 75,000 galllons)2.10$ Tier 2 100 - 300 units (75,000 - 225,000 galllons)2.31$ Tier 3 > 300 units (>225,000 galllons)2.54$ Industrial Tier 1 0 - 1,000 units (0 - 750,000 galllons)2.10$ Tier 2 1,000 - 3,000 units (750,000 - 2,225,000 galllons)2.31$ Tier 3 > 3,000 units (>2,225,000 galllons)2.54$ Irrigation All units 3.75$ * 1 unit equals 100 cubic fee or 750 gallons. 2.The water meter charges recommended are hereby adopted. Meter Size Residential/Multi-Family Quarterly Fee Commercial Monthly Fee 5/8" meter 31.31$ 10.53$ 3/4"31.31$ 10.53$ 1"43.82$ 14.73$ 1.5"56.34$ 18.94$ 2"90.77$ 30.52$ 3"344.34$ 115.78$ 4"438.25$ 147.35$ 6"657.36$ 221.03$ 2" compound 90.76$ n/a 3" compound 344.34$ n/a City council meeting of October 15, 2018 (Item No. 4b) Page 4 Title: Adoption of 2019 utility rates 3.The Minnesota Department of Health state testing for water quality will continue to be imposed at a rate of $1.59 per quarter for residential and multi-family and $0.53 per month for commercial accounts. 4.The sanitary sewer usage rate recommended is hereby adopted at $3.61 per unit. 5.The sanitary sewer base charge recommended is hereby adopted at $18.49 per quarter for residential and multi-family accounts and $6.16 per month for commercial accounts. 6.The storm sewer rate recommended is hereby adopted at $23.83 per quarter per residential equivalent unit or $39.72 per month per residential equivalent unit for commercial accounts. 7.The Bassett Creek Watershed Management Charge pass through for properties located within the Bassett Creek Watershed Management District will be $1.93 per quarter per residential equivalent unit or $0.64 per month per residential equivalent unit. 8.The solid waste service charges per quarter recommended are hereby adopted. Service Level Residential* In Gallons Quarterly Monthly Quarterly Monthly Quarterly Monthly Quarterly 20 EOW 25.72$ n/a n/a n/a n/a n/a n/a 30 EOW 35.71$ n/a n/a n/a n/a n/a n/a 20 36.75$ n/a n/a n/a n/a n/a n/a 30 51.03$ $ 16.44 $ 49.32 n/a n/a n/a n/a 60 75.70$ 23.00$ 69.00$ n/a n/a n/a n/a 90 116.04$ 31.40$ 94.21$ 12.85$ 38.55$ 16.52$ 49.56$ 120 184.34$ n/a n/a n/a n/a n/a n/a 150 230.42$ n/a n/a n/a n/a n/a n/a 180 276.51$ 64.87$ 194.61$ 23.02$ 69.09$ 31.79$ 95.37$ 270 414.76$ n/a n/a 31.79$ 95.37$ n/a n/a 360 553.03$ n/a n/a n/a n/a n/a n/a Garbage Recycling Organics Commercial * Rate includes Garbage, Recycling and Organics Note: Taxes and fees are included in rates where applicable. Reviewed for administration: Adopted by the City Council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Residential 2018 2019 Tier 1 ‐ 0 ‐ 13.333 units (0 ‐ 10,000 gallons)1.89$          1.89$            Tier 2 ‐ 13.333 ‐ 20 units (10,000 ‐ 15,000 gallons)2.34$          2.30$            Tier 3 ‐ > 20 units (>15,000 gallons)3.51$          2.75$            Multi Family ‐ All units n/a 2.30$            Commercial Tier 1 ‐ 0 ‐ 100 units (0 ‐ 75,000 galllons)1.89$          2.10$            Tier 2 ‐ 100 ‐ 300 units (75,000 ‐ 225,000 galllons)n/a 2.31$            Tier 3 ‐ > 300 units (>225,000 galllons)n/a 2.54$            Industrial Tier 1 ‐ 0 ‐ 1,000 units (0 ‐ 750,000 galllons)1.89$          2.10$            Tier 2 ‐ 1,000 ‐ 3,000 units (750,000 ‐ 2,225,000 galllons)n/a 2.31$            Tier 3 ‐ > 3,000 units (>2,225,000 galllons)n/a 2.54$            Irrigation ‐ All units 3.51$          3.75$            Meter Size 2018 2019 2018 2019 5/8"9.08$          10.53$        27.23$        31.31$          3/4"9.08$          10.53$        27.23$        31.31$          1.0"12.70$        14.73$        38.10$        43.82$          1.5"16.33$        18.94$        48.99$        56.34$          2.0"26.31$        30.52$        78.93$        90.77$          3.0"99.81$        115.78$      299.43$      344.34$        4.0"127.03$      147.35$      381.09$      438.25$        6.0"190.54$      221.03$      571.62$      657.36$        2.0" Compound n/a n/a 78.93$        90.76$          3.0" Compound n/a n/a 299.43$      344.34$        State Testing Fee 2018 2019 Commercial 0.53$          0.53$          Monthly Residential 1.59$          1.59$          Quarterly Residential/Multi‐Family 2018 2019 Base Charge 17.61$        18.49$        Quarterly Usage 3.44$          3.61$           Per unit ‐ Quarterly Commercial Base Charge 16.78$        18.49$        Quarterly Usage 3.44$          3.61$           Per unit ‐ Quarterly Base Charge 5.60$          6.16$          Monthly Usage 3.44$          3.61$           Per unit ‐ Monthly Residential 2018 2019 Quarterly 23.14$        23.83$         per residential equivalent unit Commercial Monthly 38.56$        39.72$         per residential equivalent unit Quarterly 115.68$      119.15$       per residential equivalent unit Bassett Creek Watershed Management District (pass‐through) Monthly 0.64$          0.64$           Quarterly 1.93$          1.93$           2018 2019 2018 2019 20‐gallon EOW n/a 25.72$        Quarterly 30 gallon service 30‐gallon EOW n/a 35.71$        Quarterly Garbage 17.08$         $        16.44 Monthly 20‐gallon 29.40$        36.75$        Quarterly Garbage 51.24$         $        49.32 Quarterly 30‐gallon 48.83$        51.03$        Quarterly 60 gallon service 60‐gallon 72.45$        75.70$        Quarterly Garbage 22.01$        23.00$        Monthly 90‐gallon 111.04$      116.04$      Quarterly Garbage 66.03$        69.00$        Quarterly 120‐gallon 176.40$      184.34$      Quarterly 90 gallon service 150‐gallon 220.50$      230.42$      Quarterly Garbage 30.05$        31.40$        Monthly 180‐gallon 264.60$      276.51$      Quarterly Garbage 90.15$        94.21$        Quarterly 270‐gallon 396.90$      414.76$      Quarterly Recycling 12.30$        12.85$        Monthly 360‐gallon 529.20$      553.03$      Quarterly Recycling 36.90$        38.55$        Quarterly Organics 15.81$        16.52$        Monthly Organics 47.43$        49.56$        Quarterly 180 gallon service Garbage 62.08$        64.87$        Monthly Garbage 186.24$      194.61$      Quarterly Recycling 22.03$        23.02$        Monthly Recycling 66.09$        69.09$        Quarterly Organics 30.42$        31.79$        Monthly Organics 91.26$        95.37$        Quarterly 270 gallon service Recycling 30.42$        31.79$        Monthly Recycling 91.26$        95.37$        Quarterly Utility Rates Summary Solid Waste Rates (including tax when applicable) Residential Commercial Water Rates Water Meter Charges Commercial Residential Sewer Rates Storm Drainage Rates City council meeting of October 15, 2018 (Item No. 4b) Title: Adoption of 2019 utility rates Page 5 Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4c Executive summary Title: Special assessment – water service line repair at 8307 Virginia Circle North Recommended action: Motion to adopt Resolution authorizing the special assessment for the repair of the water service line at 8307 Virginia Circle North, P.I.D. 07-117-21-14-0037. Policy consideration: The proposed action is consistent with policy previously established by the City Council. Summary: Bret and Cheryl Hanson, owners of the single family residence at 8307 Virginia Circle North, have requested the city authorize the repair of the water service line for their home and assess the cost against the property in accordance with the city’s special assessment policy. This is a repair that was made between the home and the curb box and is not impacted by the city’s new waterline ownership policy. Homeowners are still responsible for water lines repairs that occur between their home and the curb box located in the right of way. The city requires the repair of service lines to promote the general public health, safety and welfare within the community. The special assessment policy for the repair or replacement of water or sewer service lines for existing homes was adopted by the city council in 1996. This program was put into place because sometimes property owners face financial hardships when emergency repairs like this are unexpectedly required. Plans and permits for this service line repair work were completed, submitted, and approved by city staff. The property owner hired a contractor and repaired the water service line in compliance with current codes and regulations. Based on the completed work, this repair qualifies for the city’s special assessment program. The property owner has petitioned the city to authorize the water service line repair and special assess the cost of the repair. The total eligible cost of the repair has been determined to be $2,995. Financial or budget considerations: The city has funds in place to finance the cost of this special assessment. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Jay Hall, Utility Superintendent Reviewed by: Mark Hanson, Public Works Superintendent Beth Simonsen, Accountant Tim Simon, Chief Financial Officer Cynthia S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 4c) Title: Special assessment – water service line repair at 8307 Virginia Circle North Resolution no. 18 - ____ Resolution authorizing the special assessment for the repair of the water service line at 8307 Virginia Circle North, St. Louis Park, MN P.I.D. 07-117-21-14-0037 Whereas, the property owners at 8307 Virginia Circle North, have petitioned the City of St. Louis Park to authorize a special assessment for the repair of the water service line for the single family residence located at 8307 Virginia Circle North; and Whereas, the property owners have agreed to waive the right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Whereas, the City Council of the City of St. Louis Park has received a report from the utility superintendent related to the repair of the water service line. Now, therefore, be it resolved by the City Council of the City of St. Louis Park, Minnesota, that: 1. The petition from the property owners requesting the approval and special assessment for the water service line repair is hereby accepted. 2. The water service line repair that was done in conformance with the plans and specifications approved by the Operations and Recreation Department and Department of Inspections is hereby accepted. 3. The total cost for the repair of the water service line is accepted at $2,995. 4. The property owners have agreed to waive the right to a public hearing, notice and appeal from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, City Charter, the constitution, or common law. 5. The property owners have agreed to pay the city for the total cost of the above improvements through a special assessment over a ten (10) year period at the interest rate of 4.00%. 6. The property owners have executed an agreement with the city and all other documents necessary to implement the repair of the water service line and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the City Council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4d Executive summary Title: Special assessment for fire suppression sprinkler system Recommended action: Motion to adopt Resolution establishing a special assessment for the installation of a fire suppression sprinkler system at 6516 Walker St., St. Louis Park, MN. Policy consideration: This action is consistent with a policy the council established in 1995. Summary: Spence Design LLC, owner of the commercial building at 6516 Walker St., has requested the city to authorize the installation of an automatic fire suppression sprinkler system for this commercial building and to assess the cost against the property in accordance with the city’s special assessment policy. The special assessment policy for installation of automatic fire sprinkler systems in existing buildings was adopted by the city council in 1995. The city promotes the installation of fire suppression sprinkler systems and facilitates their installation to promote the general public health, safety and welfare within the community. Based on the proposed work, the system qualifies for the city’s special assessment program. The property owner has petitioned the city to authorize the installation of the fire sprinkler system and special assess the cost of the installation. The total eligible cost of the installation has been determined to be $133,515. An administrative fee of $668 shall be received prior to the release of the special assessment funds. Financial or budget considerations: This action is consistent with a policy the council established in 1995. Strategic priority consideration: Not applicable. Supporting documents: Resolution Prepared by: Cary Smith, Fire Marshal Reviewed by: Steve Koering, Fire Chief Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 4d) Page 2 Title: Special assessment for fire suppression sprinkler system Resolution No. 18-____ Resolution authorizing installation and special assessment of a fire sprinkler system at 6516 Walker St., St. Louis Park, MN 55426 Whereas, Spence Design LLC, the property owner at 6516 Walker St. has petitioned the City of St. Louis Park to authorize a special assessment for the installation of a fire sprinkler system in the building on the benefited property; and Whereas, the property owner has agreed to waive their right to a public hearing, right of notice and right of appeal pursuant to Minnesota Statute, Chapter 429; and Now therefore be it resolved by the city council of St. Louis Park, that: 1.The petition from the property owner requesting the approval and special assessment for the fire sprinkler system is hereby accepted. 2.The installation of the fire sprinkler system in conformance with the plans and specifications approved by the fire department and inspections department is hereby authorized. 3.The total estimated cost for the design and complete installation of the fire sprinkler system is accepted at $133,515. 4.An administrative fee of $668 for processing shall be received prior to the release of special assessment funds. 5.The total special assessment against the property will be $133,515. 6.The property owners have agreed to waive their rights to a public hearing, notice and appeal from the special assessment; whether provided by Minnesota Statutes, Chapter 429, or by other statutes, or by ordinance, city charter, the constitution, or common law. 7.The property owners agree to pay the city for the cost of the above improvements through a special assessment over a ten (10) year period at four percent (4.0%) interest. 8.The property owners agree to execute an agreement with the city and any other document’s necessary to implement the installation of the fire sprinkler system and the special assessment of all costs associated therewith. Reviewed for administration: Adopted by the City Council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4e Executive summary Title: Lease agreement with Methodist Hospital for parking Recommended action: Motion to approve an agreement between the City of St. Louis Park and Methodist Hospital, to lease the city’s sanitary lift station property at 3901 Edgewood Avenue for hospital parking. Policy consideration: Does the city council want to continue to lease the property to Methodist Hospital? Summary: Original Agreement: In 1998, the city negotiated a ground lease agreement with Methodist Hospital to allow hospital parking on an excess portion of the city’s property where the city’s sanitary lift station is located. The agreement was for a five-year term with the option of three renewable five-year terms. The agreement expires October 31, 2018. Amended and Restated Agreement: Staff has worked with Methodist Hospital and the city attorney to revise the existing agreement, both in terms of updating the contract language and the monetary compensation. The new agreement will have an initial five-year term with two optional five-year renewal opportunities. Financial or budget considerations: The annual lease rate for the final year of the current lease (2017/2018) is $13,680. The lease amount for the first year of the new contract (2018/2019) will be $14,040. The financial terms of this agreement require annual lease payments with a 3% annual rate increase. Strategic priority consideration: Not applicable. Supporting documents: None Prepared by: Scott Merkley, Public Works Services Manager Reviewed by: Mark Hanson, Public Works Superintendent Cynthia S. Walsh, Director of Operations and Recreation Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4f Executive summary Title: Bid Tabulation: Rehabilitation of Water Treatment Plant #16, Flag Ave. Reservoir- Project No. 4018-5000 Recommended action: Motion to designate Champion Coatings the lowest responsible bidder and authorize execution of a contract with the contractor in the amount of $384,000.00 for rehabilitation of Water Treatment Plant #16, Flag Avenue Reservoir- Project No. 4018-5000. Policy consideration: Does the City Council wish to continue to move forward with making necessary improvements to the city’s water system? Summary: A total of three bids were received for this project. Please see bid results below. CONTRACTOR TOTAL BID Elevation Coating, LLC $219,500.00 Champion Coatings $384,000.00 TMI Coatings, Inc. $584,000.00 This project involves a full reconditioning of the interior wet area of the tank to replace the failing coating and bring it into compliance with current requirements. A review of the bids indicates Elevation Coating, LLC submitted the lowest base bid. In reviewing the qualifications of the apparent low bidder, Elevation Coatings, LLC, staff determined that they do not have any work experience with the specified coating system nor the project type. Staff also believes that their $219,500.00 bid would not cover the cost of the required materials and the assumed labor for this project. In reviewing the qualifications of the remaining bidders, we find the second lowest bidder, Champion Coatings, meets the requirements of the specifications and are qualified to do the work in the proposal. Therefore, staff recommends that a contract be awarded to Champion Coatings in the amount of $384,000.00. Financial or budget considerations: This project was planned for and included in the City’s Capital Improvement Program (CIP) for 2018. This project will be paid for using water utility funds. Strategic priority consideration: Not applicable. Supporting documents: Discussion Prepared by: Aaron Wiesen, Project Engineer Reviewed by: Debra Heiser, Engineering Director Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 4f) Page 2 Title: Bid Tabulation: Rehabilitation of Water Treatment Plant #16, Flag Ave. Reservoir- Project No. 4018-5000 Discussion Background: Bids were received on October 9, 2018 for the Water Treatment Plant #16, Flag Avenue Reservoir Project. This project is located at 2026 Flag Avenue. The existing coating on the tank was installed in 1991 and is no longer effective. A full reconditioning of the interior wet area of the tank is required to replace the failing coating and bring it into compliance with current requirements. Water tank coatings are expected to last 20 to 25 years with minor maintenance. The existing coating on the tank has not received major work for 27 years. An inspection completed a couple years ago revealed that the coating is failing and needs replacement. Replacing the coating at this time will extend the life of the reservoir. An advertisement for bids was published in the St. Louis Park Sun-Sailor on September 20 and September 27, 2018. In addition, plans and specifications are noticed on the City Website and are made available electronically via the internet by our vendor QuestCDN.com. Email notification was provided to five minority associations. Present considerations: Staff has analyzed the bids and determined that Elevation Coating, LLC is a qualified contractor that can complete this work per the contract documents. Based on the low bid received, cost details are as follows; this project is paid for using water utility funds: CIP Low Bid Construction Cost $325,000.00 $384,000.00 Engineering & Administration $32,500.00 $57,600.00 Total $357,500.00 $441,6000.00 Due to the nature of our construction projects, unexpected costs do come up. To address this, past practice has been to show a contingency for all aspects of the project. What follows is a table that shows this 10% contingency and how this would affect the project costs. Engineering has reviewed these contingency costs with the Chief Financial Officer. If overruns occur there is adequate funds to cover these costs. Low Bid Contingency (10%) Engineering (15%) Total Watermain $384,000.00 $38,400.00 $57,600.00 $480,000.00 Next steps: City construction is anticipated to begin in November 2018 and should be completed by December of 2018. Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4g Executive summary Title: Liquor license fees Recommended action: Motion to adopt Resolution setting liquor license fees for the license term March 1, 2019 – March 1, 2020 pursuant to Minnesota statute 340A.408 and section 3-59 of the St. Louis Park City Code. Policy consideration: Are the proposed liquor license fees in line with the limits allowed under M.S.A. Chapter 340A? Will the proposed fees allow the city to cover the costs related to the administration and enforcement of liquor licensing activities? Summary: City code provisions permit the council to set liquor license fees annually, by resolution, in amounts no greater than those set forth in M.S. Ch. 340A. The city annually reviews and completes a fee study on the costs of providing license administration and enforcement. Staff has compared the proposed liquor license fees to those of other cities in the metro area and also solicited input from the police department to see if any increases are warranted. Based on this analysis and review, staff is not proposing any fee increases for the upcoming license period. State law sets the limits on the annual fees that may be charged for certain types of liquor licenses. Where there is no state restriction, the city can set the fee at an amount to reflect the cost of issuing the license and other costs directly related to enforcement. License fees may not be used as a means of raising revenues. Financial or budget considerations: The proposed fees were used to calculate projected revenues in the 2019 budget. Strategic priority consideration: Not applicable. Supporting documents: Discussion Resolution Prepared by: Melissa Kennedy, City Clerk Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 4g) Page 2 Title: Liquor license fees Discussion Current and proposed liquor license fees are detailed below. On-sale intoxicating license fees are higher due to the additional staff time typically required for enforcement activities (restaurants are open Sundays and some have 2 a.m. closing) and general administration and oversight of the license. Off-sale licenses generally require less staff time due to the fact that alcohol is not consumed on the premises and they are open fewer hours. Additionally, off-sale license fees and all background investigation fees are subject to the limits set forth in state statute. Current and proposed liquor license and background investigation fees: Liquor license type: 2018 fee 2019 fee Effective 3/1/2019 Fee amount set by: Brewpub Off Sale Malt Liquor $200 $200 City Brewers Off Sale Malt Liquor $200 $200 City Microdistillery Cocktail Room $600 $600 City Microdistillery Off-Sale $200 $200 City Off Sale 3.2 Malt Liquor $200 $200 City Off Sale Intoxicating Liquor $380 $380 STATE Off Sale Intoxicating Liquor fee per M.S. 340A.408 Subd.3(c ) $280 $280 STATE On Sale 3.2 Malt Liquor $750 $750 City On-Sale Culinary Class $100 $100 City On Sale Intoxicating Liquor $8,750 $8,750 City On Sale Brewer’s Taproom $600 $600 City On Sale Sunday Liquor $200 $200 STATE On Sale Wine $2,000 $2,000 STATE Club (per # members): 1 - 200 $300 $300 STATE 201 - 500 $500 $500 STATE 501 - 1000 $650 $650 STATE 1001 - 2000 $800 $800 STATE 2001 - 4000 $1,000 $1,000 STATE 4001 - 6000 $2,000 $2,000 STATE 6000+ $3,000 $3,000 STATE Temporary On Sale Liquor $100/day $100/day City Background investigation 2018 fee 2019 fee Fee set by: New License Applicant (non-refundable) $500 in-state applicant; actual costs for out-of- state applicant may be billed up to a maximum of $10,000. $500 in-state applicant; actual costs for out-of- state applicant may be billed up to a maximum of $10,000. STATE New Store Manager $500 $500 STATE On Sale license renewal per 340A.412 Subd. 2 $500 $500 STATE City council meeting of October 15, 2018 (Item No. 4g) Page 3 Title: Liquor license fees St. Louis Park liquor licenses by type: License type License fee Fee set by: Total Number in St. Louis Park Total On-sale intoxicating $8,750 City 25 $218,750 On-sale Sunday $200 STATE 29 $5,800 On-sale wine $2,000 STATE 14 $28,000 On-sale club $700 STATE 2 $1,400 On-sale 3.2 $750 City 15 $11,250 On-sale taproom $600 City 1 $600 On-sale cocktail room $600 City 1 $600 Off-sale intoxicating $380 STATE 13 $4,940 Off-sale 3.2 $200 City 3 $600 Off-sale brewer $200 City 1 $200 Off-sale microdistillery $200 City 1 $200 City council meeting of October 15, 2018 (Item No. 4g) Page 4 Title: Liquor license fees Resolution no. 18-____ Resolution adopting liquor license fees for the license term March 1, 2019 – March 1, 2020 Be it resolved by the city council of the City of St. Louis Park as follows: Whereas, the St. Louis Park City Code Section 3-59 authorizes the city council to establish annual fees for liquor licenses by resolution in amounts no greater that those set forth in M.S.A. Chapter 340A; and Whereas, it is necessary for the city to maintain fees in an amount necessary to cover the cost of administration and enforcement of regulating liquor in the city; and Whereas, fees called for within the Section 3-59 of the city code and Minnesota Statute Chapter 340A are hereby set by this resolution for the license term effective March 1, 2019 through March 1, 2020; and Now therefore be it resolved by the city council of the City of St. Louis Park, Minnesota, fees for liquor licenses are hereby adopted as follows: Liquor License Type: Fee Brewpub off-sale malt liquor $200 Brewers off-sale malt liquor $200 Microdistillery off-sale $200 Off-sale 3.2 malt liquor $200 Off-sale intoxicating liquor $380 Off-sale intoxicating liquor fee per M.S. 340A.408 Subd.3(c ) $280 On-sale brewer’s taproom $600 On-sale cocktail room $600 On-sale 3.2 malt liquor $750 On-sale intoxicating liquor $8,750 On-sale Sunday liquor $200 On-sale wine $2,000 Club (per # members) 1 - 200 $300 201 - 500 $500 501 - 1000 $650 1001 - 2000 $800 2001 - 4000 $1,000 4001 - 6000 $2,000 6000+ $3,000 Temporary on-sale liquor $100/day City council meeting of October 15, 2018 (Item No. 4g) Page 5 Title: Liquor license fees Investigation type: Fee New license applicant (non-refundable) $500 in-state applicant; actual costs for out-of- state applicant may be billed up to a maximum of $10,000. New store manager $500 On-sale license renewal per 340A.412 Subd. 2 $500 Reviewed for administration: Adopted by the city council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: October 15, 2018 Consent agenda item: 4h Executive summary Title: Authorize release of draft surface water management plan for agency review Recommended action: Motion to authorize staff to submit the draft Surface Water Management Plan (SWMP) for agency review. Policy consideration: Is the draft Surface Water Management Plan in a form sufficient for agency review? Summary: In accordance with Minnesota Statute 103B.235 and Minnesota Rules 8410, the City of St. Louis Park is required to update their SWMP in conjunction with the comprehensive plan update and to comply with changes made to local watershed management organizations plans. As part of the approval process, state law requires communities to submit the draft plan to regulatory agencies for a 45 day review period. Following agency review, staff will modify the plan as necessary based on agency comments and full plan adoption will be brought to planning commission and city council as part of the city’s overall comprehensive plan update. The draft plan was presented to council at the September 24 study session and has been available since then on the city’s website for public review and comment. In addition, staff will be holding an open house to discuss the plan with the public. The comment period for both the agency review and the public ends on November 30, 2018. Financial or budget considerations: The plan includes an implementation program. The initiatives and projects are comprised of two areas. The first is ongoing programs and activities; the second is capital improvement projects. Funding for implementation is provided by storm water utility funds. Strategic priority consideration: St. Louis Park is committed to continue to lead in environmental stewardship. Supporting documents: Draft Surface Water Management Plan link Prepared by: Phillip Elkin, Senior Engineering Project Manager Reviewed by: Debra M. Heiser, Engineering Director Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: October 15, 2018 Minutes: 4i OFFICIAL MINUTES Parks & Recreation Advisory Commission January 29, 2018, 6 p.m. Rec Center Programming Office MEMBERS PRESENT: Rich Bluma, Tiffany Bushland, Bruce Cantor, George Foulkes, Elizabeth Griffin, George Hagemann and Peter May MEMBERS ABSENT: None GUEST(S) PRESENT: Jamie Marshall, Friends of the Arts STAFF PRESENT: Lisa Abernathy, Recreation Supervisor, Debra Heiser, Director of Engineering, Jacqueline Larson, Communications and Marketing Manager, Meg McMonigal, Principal Planner, Jennifer Monson, Planner, Mark Oestreich, Manager of Westwood Hills Nature Center, Cindy Walsh, Director of Operations and Recreation, Jason West, Recreation Superintendent and Stacy Voelker, Recording Secretary 1. Call to Order Commissioner Bushland called the meeting to order at 6:02 p.m. 2. Presentations – Friends of the Arts (Jamie Marshall) Jamie Marshall, Executive Director of Friends of the Arts, introduced himself to the Commission. Friends of the Arts, Mr. Marshall explained, does a great deal of partnering with the City of St. Louis Park, especially events held at the ROC and Wolfe Park. Arts for Life Scholarships are offered through Friends of the Arts for funding youth who would like to take lessons, dance classes, etc. and is based on financial needs. Scholarships are reviewed and rewarded quarterly. This program, Mr. Marshall advised, is promoted at community events, such as the Community Link event. Commissioner Foulkes asked how many scholarships are generally awarded. Mr. Marshall advised they receive an average of 10-15 applicants each quarter with 6 – 8 being awarded, depending on the amount of the request. Last year they had 56 applicants and were able to award approximately $5,000 annually. Historically they fund approximately half of requests received. Friends of the Arts offers a Gift of Music program where donated instruments are repaired and offered to students in school. The program is a partnership with the school district, a strong program and they continue to look for ways to promote and collect instruments. Mr. Marshall advised 2017 was the second year of the Our Town Sings program held in Wolfe Park. One of the events was moved to the ROC due to rain. The ROC was a great location with over 250 people in attendance. The program produced performers from various areas of music from the Twin Cities. It was a great way to partner with organizations and use the Wolfe Park Amphitheater, Mr. Marshall indicated. In 2018 FOTA is moving forward with Unity Sings, which City council meeting of October 15, 2018 (Item No. 4i) Page 2 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 builds on the most successful elements of Our Town Sings. They are working to bring various singers together in the ROC on May 22 to sing together and experience a sense of community in St. Louis Park through song. If it is successful, it may become an annual event. Commissioner May inquired on the acoustics in the ROC. Mr. Marshall indicated the outdoor, covered space was fine for their event. Mr. Marshall advised Friends of the Arts is exploring an exciting opportunity for Friends of the Arts titled Arts Lab. He has attended learning retreats from Arts Midwest, along with 12 other communities, to learn about leveraging the creative community within an area. Arts Lab is also a way to leverage the economy by bringing people into the community. This project will provide free workshops for participants to explore their art form and see what it’s like to be an artist. This may provide other opportunities for artists also. Arts Lab is still in the development phase. Friends of the Arts continues to be a strong partner with the City of St. Louis Park. Friends of the Arts assists in organizing the City-School calendar, Arts and Culture Grants, public art in City Hall and others. They are also working on an exhibit with a partnership with Jean Stevens Gallery so artists can feel like they have a home in St. Louis Park. Friends of the Arts 2017 budget was $85,000 which included five concerts in the park. A good portion of the budget goes toward artists in the form of grants. Commissioners and Mr. Marshall traded thanks. 3. Approval of Minutes a. November 29, 2017 Commissioner May requested clarification on page 5, last sentence in the first paragraph. The sentence should read “…Aquila fields two and three but lights will be changed to LED.” Commissioner Cantor made a motion to approve the minutes of November 29, 2017 as amended. Commissioner May seconded the motion. The motion passed on a vote of 7 – 0. 4. Business a. Comprehensive Plan Discussion (Jennifer Monson & Meg McMonigal) Ms. Monson, Planner, indicated a lot of demographic and data collection has been completed. The timeline of the Comprehensive Plan was shown in a presentation to the Commission, along with what’s included in the Comprehensive Plan and ways to utilize the information. Four neighborhood planning workshops were held throughout the City in November with a total of 130 participants. An internet based survey was also available which had approximately 1,000 responders. Staff is currently working on tabulating the data from that survey. Ms. Monson reviewed various areas that pertained to Parks and Recreation, along with the input received from the workshops. City council meeting of October 15, 2018 (Item No. 4i) Page 3 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 Where are we going? Ms. Monson indicated the city has a denser, more diverse and aging population. Staff took the existing goals and policies and rewrote them as to where they think parks and natural resources are going for the 2040 comp plan. Items included expanding parks (if available), opportunities for the 40th & France land, the opportunity for a new community park should either golf courses be redeveloped, connect existing parks through trails, continue shared use of parks, continue partnerships, privately owned public parks, open space and regional trails. Other items mentioned are to review park and trail dedication fees, partner with other public improvement projects to provide recreational opportunities and partner with other entities for natural resources and recreational opportunities. Ms. Monson and the Commission reviewed preserving park assets which include implementing the master plan at Westwood Hills Nature Center, staying on the park improvement schedule, promoting volunteer opportunities and providing programs for all ages and diversity through partnerships. In the Natural Resource section, diversifying tree species is listed along with removing invasive species, offering opportunities for residents, and creating a natural environment that’s diverse and sustainable. The Healthy Living recommendations includes community gardening and partnerships and to look at health holistically. All items listed will be viewed through a Race and Equity lens. City-wide demographics, population growth, age of individuals, household income, etc. was provided to Commissioners by Ms. Monson. The information was taken from the 2010 census or the 2011-2015 American Community survey. Members viewed a map of each neighborhood and amenities. Ms. Monson indicated all information is on the city’s website. Ms. Monson asked the Commissioners to email her with any additional information they would like to add and provided her email address. She will have a draft available in the next few weeks and will email to members for review prior to the April 4 joint meeting with the Planning Commission. Ms. McMonigal advised the final plan will go before the Planning Commission in June for their approval. Members thanked Ms. Monson and Ms. McMonigal. b. Louisiana Oaks Bridge Project and 2018 Projects (Debra Heiser) Debra Heiser, Engineering Director, introduced herself to the Commission and indicated Engineering has a lot of upcoming projects in the next two years. The Commissioners viewed upcoming pavement management and regional projects. The city and MnDOT work in partnership as roads in the city could be owned by MnDOT or the City. Engineering has a commitment to sustainability: to move traffic efficiently, LED lighting, etc. Roundabouts are great for traffic, pedestrians and bikes as people are going slower and all are going in the same direction. The Louisiana Avenue roundabouts have reduced accidents by 30% since installed. City council meeting of October 15, 2018 (Item No. 4i) Page 4 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 The city has 25 bridges (excluding park bridges) that are inspected annually. Commissioners viewed the Louisiana Avenue Bridge Rehabilitation project as the bridge over Minnehaha Creek needs to be rebuilt. Funds from the state will assist in replacing the bridge in 2019. As part of this project, staff is researching reconstructing the corridor and seeing how the bikeways and sidewalks fit into the overall plan. Commissioners viewed a preliminary design which will be brought to the City Council in February. Part of the project is to provide a safe connection for trail users to cross Louisiana Avenue and to develop connections to transit. To accomplish this, the proposal includes a trail built under Louisiana Avenue. This is an $11 million project. Phase I will be from the hospital entrance to Excelsior Boulevard; Phase II and Phase III will be constructed sometime in the next 10 years. Need to stage phases appropriately to ensure access to hospital at all times. The bridge will be closed July through November 2019. The project will start in July due to creek spawning times. The commission had a question regarding the future of the trail along Minnehaha Creek. The city will discuss with Minnehaha Creek Watershed District. Ms. Heiser explained how it is determined what bikeway design is best suited for specific roads. Lower volume roads installed share the road for bicycles (less than 1,000 vehicles on road); on-street bike lanes are for higher volume roads and protective bicycle facility is for even higher volume roads. Louisiana Avenue has approximately 16,000 vehicles which protected bicycle facility is recommended. By putting in a protected bicycle facility, there is a dedicated space for bicycles and dedicated space for a pedestrians with green space separating the two. Staff is proposing green grass medians which have a potential for landscaping and public art. Storm water treatment is also being researched in that area as all water from the road enters Minnehaha Creek. Commissioner Hagemann provided feedback on how bike lane will work in a round-about. Ms. Heiser went on to explain the proposed modifications for the Wooddale bridge over Highway 7. This project will widen the bridge deck to better accommodate bicycles and pedestrians, and improve the sightlines at the ramp. Also, as a part of the Southwest LRT Project. There will be a tunnel installed so the regional trail would go under Wooddale Avenue and the trail would go over Belt Line Boulevard. Construction on Blake Road begins this year and partnerships were discussed. Texas Avenue (south of Highway 7) will also include bike lanes with a connection to Lake Street. Commissioners viewed the 2018 pavement management project. When developing plans for projects, Engineering looks at everything in the right-of-way, to determine what needs to be replaced. Ms. Walsh advised watermain projects are major and may take the entire season to complete. Watermain breaks are prominent with old watermains. Staff reviews the age of the infrastructure below the street when looking at pavement management projects. Also, when asphalt is ground up from one area, it is used in another to save money and for better sustainability. City council meeting of October 15, 2018 (Item No. 4i) Page 5 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 Ms. Heiser mentioned they also review active transportation connections; they reviewed existing sidewalks and identified gaps. They review all things that may be impacted in the right of way including trees, retaining walls, landscaping, etc. A public hearing will be held to recommend sidewalks. The City Council also asked Engineering to look at traffic, which is part of the neighborhood livability component. A traffic study was completed using various traffic management techniques to see how they worked. Traffic data was collected and modeled what could address concerns. Traffic control recommendations will be brought to Council. The Commissioners and Ms. Heiser discussed the difference between traffic circles and roundabouts. The City is committed to making quality infrastructure. Residents are not assessed for any of these projects, Ms. Heiser advised, which changed approximately five to six years ago with the initiation of Connect the Park. Commissioners reviewed and provided feedback. Members and Ms. Heiser traded thanks. c. Communication Plan for Westwood Hills Nature Center Project (Jacqueline Larson) Jacqueline Larson, Communications and Marketing Manager, distributed the communications plan summary for the Westwood Hills Nature Center Project. The opportunity was outlined and the plan is to build awareness to gain support among various community groups. Also, staff is providing an organized and public process encouraging community engagement. Staff wants to ensure a thorough public process. The plan was reviewed and Commissioners were asked to provide feedback. The plan can change as the project continues. Ms. Larson said videos are being created to show what users have experienced at Westwood Hills Nature Center. There will be a two minute video and a 60 second video, which are interview style. The shorter video will be used specifically for social media while the longer video can be used in a variety of applications. The company hired to create the videos did similar work for the St. Louis Park School District referendum that passed successfully last fall. Users of the Nature Center, volunteers, parents of kids and neighborhood members were contacted, Ms. Larson advised. Commissioners suggested contacting college age kids, which may have been impacted by the Nature Center, visitors with disabilities, preschool kids, birding groups, culture diversity, etc. Ms. Walsh asked Commissioners to share any additional thoughts with Mr. West, Mr. Oestreich and herself. Members thanked Ms. Larson. City council meeting of October 15, 2018 (Item No. 4i) Page 6 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 Westwood Hills Nature Center Update: Commissioner Hagemann has been gaining factual data to pass along to individuals that are opposed to the project. He met with Tim Simon, Chief Financial Officer, to obtain answers regarding the funding of this project, as well as other Capital Improvement Projects. Mr. Simon provided funding information, including bonding information, as it relates to the Nature Center and other projects. The City can bond over $100 million dollars and is estimated to be around 18% of its bonding ability. This is the highest it will be in the current 10 year projections. In approximately two years, the outstanding debt will start to go down, even if all projects are approved. In less than 10 years, the outstanding debt will be less than it is now, even if all projects, including the Westwood Hills Nature Center project are approved. Another issue that was brought up is this project would inhibit the ability to deal with low income housing and arts. It was stated the bond is for a specific project and can only be used for that; it cannot be used for other items. Commissioner Hagemann feels the information getting disseminated is not always completely accurate. Commissioner Hagemann created talking points for members on the financial aspect of the project. The City Council has approved moving forward with the project (which only requires a simple majority), Commissioner Hagemann indicated, now a super majority (6 of 7) of votes are needed to move forward with the bonding to support the project. The bonds would be for 2019, when construction would begin. Commissioners viewed the revised plan, which is not the final design, of the Nature Center building. The footprint was reduced slightly to reduce the amount of the project, Mr. West indicated. The City Council wants to ensure there is enough gathering space to relax without being in a multi-use classroom. The gathering space was expanded and one of the classrooms reduced in size to ensure an adequate gathering area. Maximizing space is a priority. Staff has met with Split Rock Studio, the exhibit designers, and are pleased with the progress. When available, Commissioners may view pictures and diagrams of the exhibits at an upcoming meeting. Commissioner Griffin encouraged that since the Commission is supporting this project, they should talk to their Council members, friends, neighbors and attend the public meetings. Commissioners discussed and suggested reaching out to schools and the school board to gain support for the project since every child in the school district goes to WHNC as a part of their science curriculum. Commissioner Griffin inquired if the project has been presented to the School Board. Ms. Walsh indicated staff would be happy to do that if the School Board was interested. CEAC has asked for a presentation and Jason West and Mark Oestreich will be presenting there on Monday, February 12. Commissioner Griffin suggested having a table or display at the upcoming school conferences to explain the project. Members reviewed various ways to provide factual information on the bonding and project. It was moved by Commissioner Foulkes and seconded by Commissioner Cantor to approve the Resolution of Support regarding the Westwood Hills Nature Center Project. The entire Parks and Recreation Advisory Commission (PRAC) voted unanimously in support of the Westwood Hills Nature Center project process and design schematic. The motion passed 7 – 0. The resolution is as follows City council meeting of October 15, 2018 (Item No. 4i) Page 7 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 Resolution of Support: By unanimous vote the Park and Recreation Advisory Commission whole heartedly supports recognition of the Westwood Hills Nature Center master plan, the needs assessment process and to that end the needs driven schematic plan now in the process of being finalized. The outcome from the needs analysis process showed need and demand for: • Additional, and more flexible, programming space • Additional adequate space for exhibits and exhibit storage and planning • Adult usage both during and without programming • Active and passive programming for all ages • Separation of program space from common space • Better facilities for outside users and after-hour building users • Community space for public or private meetings, events, activities, celebrations • Programming space for up to 150 participants • Reconfigurable rooms • Zero energy (Council request) The plan is in line with both needs, financial analysis by staff (including the City’s Chief Financial Officer) and PRAC’s unanimous opinion that the cost is justified within the context of other city buildings, similar nature center buildings and the future use(s) expected across its lifespan. Further, the plan in no way restricts the ability of Council to respond to other current or future issues. The Commission strongly urges that all parties give their unbiased support and follow through to the remaining planning, public process and decision making steps. Mr. West indicated public meeting will begin February 21 or 22 and February 28 or March 1. Official dates will be emailed to members; members were encouraged to attend the public meetings. d. Annual Meeting, Report and Goals with Council Commission members reviewed the report and goals; all approved. e. Naming Policy Request Ms. Griffin provided the Commission with an overview of the meetings held with the group that would like a field renamed. The request was to have a field at Carpenter or Rotary Park and rename it Marty Hammer field. The subcommittee suggested renaming a softball field at Dakota Park. Marty Hammer’s supporters were fine with that suggestions. The requested group has not raised any funding but hope they can raise $50,000 toward the renaming project. It was suggested the group attend the Parks and Recreation Advisory Commission meeting in March to present their request and obtain a vote from the Commission. The requested group’s goal is to have the renaming complete and a ribbon cutting on Mr. Hammer’s birthday in July. City council meeting of October 15, 2018 (Item No. 4i) Page 8 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 f. Dakota Park Lights Update Ms. Walsh indicated they would like to add field lights to the Dakota Park fields. With lights, the adult softball league can play longer as well as youth football. 5. Staff Communication a. Program Update Lisa Abernathy, Recreation Supervisor introduced herself to the Commission. Her focus is on youth programs, family programs and special events. Ms. Abernathy provided specifics on activities she oversees as follows: The 2017 Ugly Sweater Dash was held in December with 171 participants. They received donations to raffle during the event. The warming house season begin in mid-December and has only been closed one or two days this winter. People enjoy the rinks regardless of the weather. Rentals are lower this year but neighborhoods have held events. Warming houses are open until February 19 this year. A Saturday Sampler was held on the first Saturday in January for individuals to sample some classes offered in spring. The free Sampler included Yoga, Fun Functional Fitness and an Express Circuit Workout. This was the fourth year it was held. Ms. Abernathy is currently working on the arts and culture grant process. The grants have been chosen for 2018; are reviewing the application and scoring process for 2019. Applications are available late May for the following year. Safety Camp will be held every other year, Ms. Abernathy advised. Initially the program was held annually then participation numbers lowered so decided to offer the program every other year. Commissioners learned what Safety Camp offers and were advised a grant from AAA has been received to assist with expenses in the past. The playground and preschool playground programs are very successful. Staff is thankful to the St. Louis Park Community and Youth Development Fund, and others, for donations received and make it possible. Junior leaders are volunteers ages 13 – 15 to assist with the summer parks playground program. In 2017, there were approximately 40 junior leaders. Many junior leaders return annually become playground leaders when they turn 16. Ms. Abernathy mentioned ongoing programs that she oversees which include art programs, youth dance programs, younger kids dance programs, adult fitness City council meeting of October 15, 2018 (Item No. 4i) Page 9 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 programs and the Little Tot Playtime. Little Tot Playtime has been very well attended and intend to move program to enjoy the turf in the ROC in April. The Lions Club Egg Hunt, sponsored by the Lions Club, will be held in the ROC on March 31. The annual event was previously held in the Middle School. The department will participate in the 6th annual Community Link event held the third Wednesday in August. This is the second year it will be held in the ROC with the option to use the Aquatic Park after hours. Community Link is an outreach event for residents to access resources (i.e. free haircuts, back pack giveaway, food shelf services, etc.). Ms. Abernathy advised this year she is learning the playground replacement program and participating in the entire process. Mr. West indicated postcards were sent to the neighborhoods three weeks prior to a meeting that is held for residents to choose their playground. Demographic cards are also available at all public meetings. A new fall event, Teen ROC, had four high school bands play for half-an-hour each in the ROC last year. Lights and sound people were provided; the bands only had to plug in and play. Due to the success of the event, it may be offered in the summer also. Ms. Abernathy has completed the summer concert line-up and is working on hiring summer staff. Following no questions from the Commissioners, Mr. West advised programmers and supervisors will attend meetings to share what they do with members. Commissioners and Ms. Abernathy shared thanks. b. Minnehaha Creek Clean up: April 28, Knollwood Canoe Landing Ms. Walsh advised the Minnehaha Creek Cleanup will be held on Saturday, April 28, 9 – 11 a.m., at the Knollwood Canoe Landing. Members were encouraged to attend. c. Other Ms. Walsh advised the Minnesota Wild will practice on Sunday, February 11, 11 a.m. – Noon at the ROC. St. Louis Park Boys will play against Chaska Boys in the ROC on January 30, advised Ms. Walsh. This game was originally scheduled in the Rec Center. Ms. Walsh indicated the 40th and France Avenue area is owned by the Cities of Edina and St. Louis Park. On Monday evening, the City Council will be asked to adopt a Memorandum of Understanding (MOU) between the City of St. Louis Park and City of Edina. The MOU clarifies the area each city owns and the rights and responsibilities of each in regards to maintaining and improving the property. City council meeting of October 15, 2018 (Item No. 4i) Page 10 Title: Parks & recreation advisory commission meeting minutes of January 29, 2018 The department is in the process of hiring a new staff person, Ms. Walsh indicated, to oversee youth programs and help rent / market the ROC. Commission members interested in sitting in on the hiring panel were advised to contact Ms. Walsh. 6. Member Communication None. 7. Other / Future Agenda Items a. Board and Commission Meeting with City Council: Monday, February 26 b. Next PRAC Meeting: Thursday, February 22, 7:30 p.m. at Westwood Hills Nature Center (following the 6 p.m. public meeting) c. Joint meeting with Planning Commission and Environmental and Sustainability Commission: Wednesday, April 4 8. Adjournment It was moved by Commissioner Hagemann and seconded by Commissioner Bluma to adjourn at 8:53 p.m. The motion passed 7 – 0. Respectfully submitted, Stacy Voelker, Recording Secretary Meeting: City council Meeting date: October 15, 2018 Minutes: 4j OFFICIAL MINUTES Parks & Recreation Advisory Commission February 22, 7:30 p.m. Westwood Hills Nature Center MEMBERS PRESENT: Rich Bluma, Tiffany Bushland, Bruce Cantor, George Foulkes, Elizabeth Griffin, George Hagemann and Peter May. MEMBERS ABSENT: None GUEST(S) PRESENT: Barb Elmore, St. Louis Park Resident STAFF PRESENT: Mark Oestreich, Manager of Westwood Hills Nature Center, Cindy Walsh, Director of Operations and Recreation, Jason West, Recreation Superintendent and Elizabeth Miller, Recording Secretary. 1. Call to order Commissioner Bushland called the meeting to order at 7:49 p.m. 2. Presentation None. 3. Approval of Minutes a. January 29, 2018 Commissioner Hagemann made a motion to approve the minutes of January 29, 2018. Commissioner Cantor seconded the motion. The motion passed on a vote of 7 - 0. 4. Business a. Park Naming Request Discussion Commissioners Griffin and Cantor met prior to this meeting with Barb Elmore and friends who submitted an application requesting a park or field be renamed to honor Marty Hammer. Ms. Elmore, on behalf of friends and family, spoke of community member Marty Hammer’s involvement in sports and mentoring. Marty was a three sport athlete at St. Louis Park High School. After graduation, he became active in the City adult leagues playing in many of our city parks. Mr. Hammer passed in October of 2017 and his friends and family would like to honor him by naming a field after him. Marty’s character and sportsmanship set him apart from others. After suffering a tragic accident, he continued to participate in as many activities as possible. The honoring group has received a lot of community support and have started a fundraising campaign. The incoming support has been via donations. A golf tournament to raise money is also planned this summer. Ms. Elmore reiterated that Marty’s character exemplified the best of St. Louis Park. He was a friend to many and always had a kind word to share. City council meeting of October 15, 2018 (Item No. 4j) Page 2 Title: Parks & recreation advisory commission meeting minutes of February 22, 2018 Ms. Walsh added that during a subcommittee meeting, the group discussed ideas regarding which park or field would be the best fit. Since Marty was an avid softball and baseball player, the preference was to name a field at Dakota Park after him. The park has a history of naming fields, with the baseball field currently being named after Derrick Keller. Ms. Elmore and supporters indicated their first choice would be to name one of the softball fields at Dakota Park “Marty Hammer Field”. Ms. Elmore and her friends have heard the City is intending to add lights to Dakota Park. The group felt that Marty would have been a big supporter of that since the fields at Dakota Park are used by adults and youth. Ms. Elmore said they would be willing to contribute all the money they raise toward the field lights. Commissioner Griffin mentioned the subcommittee discussed a sign or plaque with Marty’s name could be attached to the backstop or fence to recognize him. Ms. Elmore wants to ensure Marty is remembered. Ms. Elmore will email Ms. Walsh the website and Facebook pages to forward to the committee. Ms. Walsh confirmed that the naming policy outlines a process by which the Commission would discuss details and how it would look. Then they would provide a recommendation to the City Council for formal approval. The City Council has the final say in confirming this request. Commissioner Griffin added the next step in the process would be to bring this request to the City Council. That would likely happen near the end of the summer since our policy indicates that a year should pass after the death of a person before a formal naming occurs. Commissioners inquired on the cost of lighting; Ms. Walsh indicated lighting would be approximately $250,000 (including electrical and earthwork). Ms. Elmore and the Commission exchanged thanks. After Ms. Elmore left the meeting. The Commission discussed this naming request. Members decided to vote on the park naming request now. Commissioner Foulkes moved to approve naming a softball field in Dakota Park “Marty Hammer Field”; Commissioner Haegmann seconded the motion. The motion passed 7-0. Staff was then asked to bring this forward to the City Council in a time that coincides with the policy which would be near the near the end of summer for the potential of an October naming celebration. b. Westwood Hills Nature Center Update Ms. Walsh advised there will be another public meeting next week. The format will be similar to the meeting just held. Ms. Walsh inquired if the Commissioners have any comments or suggestions to change for the next meeting. Commissioner Griffin suggested having a microphone available so all can hear. Commissioner Bushland commented that overall there was a lot of support for the project. Staff and Commissioners discussed sustainability and finances of the new building. The cost in City council meeting of October 15, 2018 (Item No. 4j) Page 3 Title: Parks & recreation advisory commission meeting minutes of February 22, 2018 taxes per year would be $34 - $37 additional per family during the duration of the bonding as this is a new building. Staff members compared other local nature centers. Staff noted that the costs could total $12 million dollars. Funding has been in the CIP for years and has been planned for. The City staff created two video clips about the Westwood Hills Nature Center project for use on social media. The Commissioners viewed both videos. 5. Staff Communication Ms. Walsh advised the Commission has a new youth member, Rachel Salzer. Ms. Walsh discussed upcoming meetings. February 26 is the annual Board and Commission meeting with the City Council. Commissioner May will provide a five minute presentation to the Council highlighting what the Commission is and has been involved in. On February 28, another public meeting will be held regarding Westwood Hills Nature Center. On April 4, the Parks and Recreation Advisory Commission will meet with the Planning Commission and the Environment and Sustainability Commission to discuss the City’s Comprehensive Plan. Staff has been asked to provide a presentation on the Westwood Hills Nature Center project at that meeting. Ms. Walsh was asked how long the Nature Center project has been in the CIP. She noted that it has been for three years. Nature Center Manager Mark Oestreich mentioned that 38,000 participants of programs and outreach came through the Nature Center last year. Ms. Walsh advised the Minnesota Wild practiced at the Recreation Outdoor Center. Commissioner Cantor was present at the practice and told the board how nice the players were and how fun it was. The facility worked out great. Recreation Superintendent Jason West noted the Wild also enjoyed their time. Staff is hoping for a chance at Hockey Day Minnesota in the future. Ms. Walsh noted that from a logistic standpoint it went quite well. Staff would like to see more signature events at the Recreation Outdoor Center next winter and also when the turf is in. Mr. West discussed the open parks and recreation position with members. 6. Member Communication None. 7. Other/ Future Agenda Items a. Board and Commission Meeting with City Council: February 26, 5:30 p.m. b. Joint Meeting with Planning Commission and Environment & Sustainability Commission: April 4 8. Adjournment It was moved by Commissioner Hagemann and seconded by Commissioner Griffin to adjourn at 8:46 p.m. The motion passed 7 – 0. Respectfully submitted, Elizabeth Miller, Recording Secretary Meeting: City council Meeting date: October 15, 2018 Minutes: 4k OFFICIAL MINUTES Parks & Recreation Advisory Commission May 16, 6 p.m. Rec Center Programming Office MEMBERS PRESENT: Rich Bluma, Tiffany Bushland, Bruce Cantor, George Foulkes, George Hagemann, Peter May and Rachel Salzer. MEMBERS ABSENT: Elizabeth Griffin GUEST(S) PRESENT: Jamie Marshall, Friends of the Arts Executive Director STAFF PRESENT: Rick Beane, Parks Superintendent, Jason Eisold, Rec Center Manager, Mark Oestreich, Westwood Hills Nature Center Manager, Kori Shingles, Recreation and Facilities Supervisor, Cindy Walsh, Director of Operations and Recreation, Stacy Voelker, Recording Secretary 1. Call to order Commissioner Bushland called the meeting to order at 6 p.m. 2. Presentation – St. Louis Park Hockey Association Mr. Eisold advised the St. Louis Park Hockey Association had an unexpected schedule change for the evening and will reschedule their presentation. 3. Approval of Minutes a. February 22, 2018 Commissioner Hagemann made a motion to approve the minutes of February 22, 2018. Commissioner May seconded the motion. The motion passed on a vote of 7 - 0. 4. Business a. Introduce Kori Shingles, Recreation and Facilities Supervisor Introductions were provided by all. Ms. Shingles indicated she began working with the city on April 9. Prior to St. Louis Park, she worked in Eden Prairie for three years as Adult Athletics Supervisor and at the University of Minnesota for nine years prior to Eden Prairie in facility and events. Ms. Shingles is originally from Kansas City, Kansas and attended college at Central Michigan University majoring in sport administration. The coolest part of the job so far are the people, Ms. Shingles indicated. She will handle reservations for the Banquet Room, Gallery and ROC; oversee youth sports and provide outreach in the community. City council meeting of October 15, 2018 (Item No. 4k) Page 2 Title: Parks & recreation advisory commission meeting minutes of May 16, 2018 Ms. Walsh advised when the Westwood Hills Nature Center building is complete, Ms. Shingles will assist with the reservations held at that location also. The Commission members welcomed Ms. Shingles. b. Friends of the Arts Update Jamie Marshall, Executive Director, invited Commission members to Unity Sings, an event being held in the ROC on Tuesday. The program is presented by Arts Midwest, an organization that serves other small art organizations. Arts Midwest program ArtsLab offers retreats to assist with a business model. The first retreat provided by Arts Midwest focused on communities and people that have an interest in the sovereign arts and culture sector in community; what can have the greatest impact on the community. Commissioner Hagemann provided an example of the Grand Marais arts colony that relies on tourists. St. Louis Park is on the other end of the spectrum – we rely on who is here, who was here and where do people gather. They explore the city and review challenges such as the economy, housing, etc. The ArtsLab assists in creating a cultural plan, like a comprehensive plan for arts, and build the plan to see how artists and creative thinkers can address some challenges facing the community to make a bigger impact. Cook County has a program to provide temporary housing when they need to host more activities to bring people in. The plan considers using a robust art sector to address broader challenges or opportunities. It’s planning how we might develop a cultural plan in St. Louis Park to do the same thing so Friends of the Arts isn’t just doing projects for those interested in arts. Commissioner Hagemann feels arts can help bring people together which is the focus of Racial Equity. The goal is to develop a draft of a cultural plan to present to city leadership and stakeholders. Then determine a roadmap for the next two years. Mr. Marshall indicated part of the process is to work with daily facilitators, including various stakeholders in community or those that have a common interest in arts. The hope is to add an arts section to the city’s comprehensive plan, commented Commissioner Hagemann. Commissioner members inquired if it is funded by the city to which Commissioner Hagemann indicated it is. The city provides funding to Friends of the Arts which is not specified allotment so they are using for administrative expenses. Mr. Marshall reminded members of the event being held on Tuesday in the ROC from 6 – 8 p.m. The event is a continuation for Our Town Sings which is held in the Wolfe Park Amphitheater, and uses singing to bring the community together. It’s an opportunity for people to come together and share a passion for singing together. Choirs from various churches and David Hurst, Twin Cities Gospel Choir, will be at ROC in June to lead the audience in song. It’s a great way for people to share a common connection with one another. In 2018, the Arts and Culture Grant program provided a grant to the Twin Cities Gospel Choir (David Hurst) to provide a community music conference and concerts at the ROC. Another grant was provided to Alysha Boie to implement an arts and craft fair in the City council meeting of October 15, 2018 (Item No. 4k) Page 3 Title: Parks & recreation advisory commission meeting minutes of May 16, 2018 ROC. The Park Theater Company used the grant awarded to them by providing a presentation with the St. Louis Park Community Band and Meadowbrook Gospel Choir in the ROC. The Children’s First event was also very successful. The ROC is getting great use! c. 2018 Capital Improvement Project Review Rick Beane, Parks Superintendent, reviewed the 2018 Capital Improvement Projects (CIP) with the Commission. Staff was busy today participating in the annual Beautify the Park event which supports the annual tree replacement budget from the CIP. The CIP budget contains $15,000 to toward ADA accessibility connections. This may include accessibility to playgrounds or other park amenities. The CIP includes $20,000 to replenish the woodchips in the playgrounds annually. Shelard, Roxbury and Birchwood Park playgrounds will be replacement this year advised Mr. Beane. Two of the playgrounds have been installed; one will be installed later due to the late spring. Mr. Beane advised the removed playgrounds are recycled through “Kids Around the World”, which the residents appreciate. Ms. Walsh asked if the Commissioners would like Paul Bierhaus, board member, to attend an upcoming meeting; Commission members agreed. Mr. Beane stated playgrounds have a 15-year lifespan. Ms. Hoffman inquired on the budget for playgrounds to which Mr. Beane advised a typical playground replacement is $65,000. Larger playgrounds such as Wolfe Park, are budgeted at $100,000. After approximately 15 years, some playgrounds do not pass inspection. If they do not pass, parts need to be replaced or the entire structure will need replacement. This also depends on the location and use of the structure. If heavily used, the structure may need more repairs or replacement sooner than 15 years. All 43 playground structures are inspected and documented at least monthly. Commissioner Cantor indicated it is nice to know they are inspected monthly and feels residents should be aware also. He suggested adding this information to the Park Perspective, along with pictures of the playgrounds in their new locations. Mr. Beane advised St. Louis Park pays for some employees to become certified playground inspectors. Since the United States cannot install refurbished playgrounds, they are installed in other countries. Many kids in other countries have never seen a playground before and they love it! This year, Mr. Beane advised, the courts at Wolfe Park, Shelard Park, Roxbury Park and Aquila Park will be resurfaced. The general lifespan of a court is 5-10 years. The first repaint of the park buildings was in 2002 so a lot of the building need repainting. This year staff will focus on Aquila, Birchwood, Browndale, Carpenter, Cedar Knoll (re-side and new doors), Dakota, Fern Hill, Louisiana Oaks, Nelson, Northside and Oak Hill Parks. The parking lots will be resurfaced at Cedar Knoll, Creekside and Nelson Parks. The shelter at Jackley Park needs to be reworked. In Louisiana Oaks Park, staff will install taller poles and LED fixtures. Field lighting at Aquila and Dakota Parks is also in the CIP. Staff hopes to start the 2018 project prior to the end of June. City council meeting of October 15, 2018 (Item No. 4k) Page 4 Title: Parks & recreation advisory commission meeting minutes of May 16, 2018 Mr. Beane reviewed the Aquila Park project. The fields in the park will be reconfigured and a storage garage will be built. The Girls’ Fastpitch Association will get covered dugouts and have two scoreboards. Peterson Company hopes to begin construction this week, with substantial completion by August 15, 2018. The fields will be seeded so they can be utilized in 2019. The construction will begin after school ends. It includes new light poles and LED lights. The poles on the south side of the park will remain wood poles. Ms. Hoffman inquired on the cost of field lights at Dakota Park. Mr. Beane advised $280,000 which includes the service. Musco Lighting is providing the work. The lights and poles were able to be purchased directly via a national contract which is more cost effective. Staff is researching two different scoreboards for the fields. Both say Oriole Fastpitch. Staff is working closely with Girls’ Fastpitch Association so both the high school and association get recognition. Ms. Hoffman inquired if the Association was donating toward this project. Mr. Beane indicated the association has mentioned it. Originally they wanted scoreboards that were $25,000 apiece. They have now agreed on scoreboards that cost $8,000 each. They have a new president and have been great to work with. Ms. Walsh advised Commissioner Griffin is having conversations with residents regarding designated pickle ball courts. A number of courts are stripped and in the 2019 CIP, additional stripping of pickle ball courts has been added since the activity has increased in popularity. Commissioner Foulkes reiterated the popularity by indicating they may have 30 – 40 people at the Middle School on Tuesdays and Thursdays to play! Mr. Beane advised staff has included adult fitness in a future CIP, which would tie in with pickle ball. Mr. Bean mentioned the skate park at Carpenter, which was a CIP project, has been very well received. There will be a drinking fountain installed soon. Maintenance staff loves the skate park as it is maintenance free. The users love it also! The Oak Hill Park Splash Pad will open Friday, May 25. Last year the about ground equipment was replaced along with the UV filters. The filters were replaced as the issue was smelly water; UV filters assist with off gassing of water. Regardless of the smell, the water is safe. d. Westwood Hills Nature Center Update Mark Oestreich, Manager of Westwood Hills Nature Center, presented an update on the Westwood Hills Nature Center project. Staff met with the school principals, PTO and school leaders last night. It was a good discussion and opened up ideas to pursue. The schools want to utilize the nature center for education but the cost of bussing students is a barrier. Options were discussed. The Commissioners viewed the latest plan that was approved Monday. The following changes were made to the original plan shown: one less raptor mews(three versus four; one mews is larger so could subdivide and have two small birds in the space); lowered roof on west end of building reduces glue lam beams and vaulted roof which reduces City council meeting of October 15, 2018 (Item No. 4k) Page 5 Title: Parks & recreation advisory commission meeting minutes of May 16, 2018 expenses and surface patio on back of building versus wood. Staff explored more exhibits, an outdoor screen utility area on the west side and a diesel generator versus natural gas as less expensive. Mr. Oestreich indicated they want to pursue adding birds and provide more outreach. It would be great to have a fleet of birds so can choose which two to take on the outreach programs. It was decided to keep the building in the same proposed location versus moving it due to soil conditions. Tested geo thermal and ran conductivity tests; all tests indicate this is the system to use for heating. The landscape architect provided a view of the design details including mowing, plowing, trail width, etc. The trails are ADA accessible. The landscaping will create a buffer next to the classroom on the north side of the building. Low to medium bushes will separate trail from classroom; potentially prairie type bushes, indicated Mr. Oestreich. The draining water will be funneled to the turtle pond on the north side of the building. Mr. Beane advised the biggest concern is snow storage so will discuss making the trail to the east of the parking area larger to allow room for snow when plowed. Discussed water drainage, melting snow with debris and best location for storage. The crosswalks through the parking lot to the playground will remain. The number of trails connecting on the north side of the building are undecided. Staff is talking with the Rotary group about the wooden structure overlooking the turtle pond in regards to what they’d like to do when it’s replaced (in CIP). It was discussed to replace with a different structure and add in a fire pit area. Commissioners viewed an empty rendering of the exhibit space. Mr. Oestreich indicated the city is working with Split Rock Studios to design the exhibits, which will be located in the middle. The exhibits will focus on four main features that are found on the Westwood property: natural pollinator area, woodland features, prairie and wetland. The exhibit area will include an exhibit wall, sitting areas, standing areas, terrace which flows outside, text written at an 8th grade level plus interactive discovery areas. Each main exhibit will have a seasonal changeability as seasonal panels will be made. The exhibit may also include an interactive area where visitors will hear critter sounds when stepping on certain spots. Staff will go to the City Council on Monday to discuss the design phase; Commission members invited to attend. Mr. Cantor inquired on the timeline. Mr. Oestreich indicated if the City Council approves the discussion on Monday, construction documents can begin and be ready in early September. Bids can be received September, October of November. Ms. Walsh indicated the city generally uses GO bonds for funding for this type of a project. Ms. Walsh and Mr. Oestreich thanked the commission members in the process. Once the exhibits are enhanced, an update will be brought to the Commission. City council meeting of October 15, 2018 (Item No. 4k) Page 6 Title: Parks & recreation advisory commission meeting minutes of May 16, 2018 e. Commission Sponsored Appreciation Luncheon Discussion Commission members discussed and decided to hold the luncheon on Thursday, September 27, 11:30 a.m. – 1 p.m. at Oak Hill Park. Discussed other options for food prep, potentially chicken. Ms. Voelker will email last year’s list. 5. Staff Communication Jason Eisold, the Rec Center Manager, advised the ROC ice was rented slightly less than 750 hours and collected approximately $80,000 revenue (projected revenue was $45,000 annually). The ROC ice was rented mostly every evening and weekend days. People skated on the ice regularly when not rented. Ms. Walsh commented – One of best things is the ice was open and free to users when not reserved. A mixture of all ages and abilities skating. The ROC was also a big hit at the recent ice arena managers meeting and the Hockey Association promoted within itself. The ROC is a huge asset! Moving forward, staff’s goal is hosting a significant event once per month to showcase the ROC. The ROC was turf March 15 through May 12, advised Mr. Eisold. Approximately 250 hours of turf was rented and provided $5,000 revenue. The turf was busy evenings and sporadic rentals occurred on weekends. The groups that rented the turf include Lacrosse and baseball particularly due to the late spring conditions. They asked for it to remain in place longer than May 12! Staff, in conjunction with Discover St. Louis Park, is interested in holding more events on the ROC turf. Mr. Oestreich advised the extra turf was taken and used at the Nature Center. Mr. Eisold explained to transition from ice to turf, the slab under the ice was heated. It took just over 24 hours to clear the ice, one day to dry, one day to roll out the turf and two days to remove the dasher boards. The transition schedule will remain basically the same annually. Customers have asked to transition the ice to turf for a weekend then back to ice, it is so popular. This year the roof above the east rink and commons area will be replaced through the Capital Improvement Program. The roof, which is a great space as it is flat, will be prepped for potential solar use in the future. The budget for the project is $500,000. The front entrance of the Rec Center will be renovated to include motion doors this fall. The main drive areas of the Rec Center parking lot were recently repaved, indicated Mr. Eisold. The entire lot is slated to be redone in two to three years in conjunction with the Belt Line / Monterey Drive intersection project. Ms. Walsh advised the Engineering Department is looking at reconstructing the intersection, potentially with a roundabout, to allow traffic go in and out of the Rec Center at the Monterey Drive / Belt Line Boulevard intersection. Recently the Aquatic Park filters were replaced, advised Mr. Eisold, which was also a CIP project. Staff will begin filling the Aquatic Park tomorrow or Friday with the new regenerative filters in anticipation of the June 2 opening. The new filters dump a lot less water, save chemicals and are consistent with climate action plan. City council meeting of October 15, 2018 (Item No. 4k) Page 7 Title: Parks & recreation advisory commission meeting minutes of May 16, 2018 Mr. Eisold indicated the lights in the Banquet Room and Gallery will be replaced with LED this year. Once complete, most lights in the building will be LED. When the parking lot is redone, the lights there will also be switched to LED. LED saves energy and is part of the climate action plan. Mr. Eisold encouraged Commission members to view the completed mural by the ROC. 6. Member Communication Commissioner Cantor inquired what happened to the baseball dedication request for Marty Hammer. Ms. Walsh advised the naming policy indicates a year must pass after a person is deceased prior to naming. Marty Hammer’s support group will host a golf tournament this summer to acquire funds toward the lights at Dakota Park as it was agreed to dedicate one of the softball fields at Dakota Park to Mr. Hammer. The naming recommendation will go to the City Council in September. Commissioner Hagemann mentioned there is evidence of spiking on the bike trail between Nelson Park and Louisiana Avenue. There were sharp objects strewn on the trail, which a resident picked up. Mr. Beane asked for photos to forward on to Three Rivers Park District and the Police Department to make them aware. Commissioner Hagemann indicated the City Council received a report at Monday’s Council meeting for an update on dockless bicycles, which the Cities of Edina and Golden Valley have. Commissioner Hagemann is working with the Engineering Division on what the City Council wants to do, ensuring public process and determining the city’s response if dockless bicycles are left in the city, who to call, etc. There are a lot of variables to work through. Mr. Beane advised dockless bicycles were recently discussed at a meeting and many concerns were expressed. Commissioner Foulkes inquired on the success of the Minnehaha Creek Clean up. Over 40 people attended, Mr. Beane advised, and a lot of garbage was picked up. 7. Other/ Future Agenda Items a. Next Meeting – June 20, 2018 b. No meetings held July and August due to lack of quorum 8. Adjournment It was moved by Commissioner Hagemann and seconded by Commissioner Cantor to adjourn at 7:46 p.m. The motion passed 7 – 0. Respectfully submitted, Stacy M. Voelker Recording Secretary Meeting: City council Meeting date: October 15, 2018 Minutes: 4l OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA AUGUST 15, 2018 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Lynne Carper, Matt Eckholm, Jessica Kraft, Claudia Johnston-Madison, Lisa Peilen, Joe Tatalovich, Alanna Franklin MEMBERS ABSENT: Carl Robertson (unexcused) STAFF PRESENT: Jacquelyn Kramer, Gary Morrison, Sean Walther 1. Call to Order – Roll Call 2. Approval of Minutes of July 18, 2018 Commissioner Eckholm made a motion to approve the minutes. Commissioner Tatalovich seconded the motion, and the motion passed on a vote of 5-0. Commissioner Peilen arrived at 6:10 p.m. 3. Public Hearings A. Conditional Use Permit – Wat Promwachirayan (Wat Prom) Applicant: Mark Snyder, Construction Results Corp. Location: 2544 Highway 100 S. Case No.: 18-32-CUP Gary Morrison, Assistant Zoning Administrator, presented the staff report. He explained that Wat Prom anticipates three phases of development. The conditional use permit is for Phase 1 to expand the parking lot, construct storm drainage and to export more than 400 cubic yards of material. Mr. Morrison explained that phases two and three will require separate major amendments to the conditional use permit. Mr. Morrison discussed details of the proposed retaining wall and fence. Mr. Morrison summarized comments received at two neighborhood meetings. Mr. Morrison said the applicant is willing to connect their privacy fence with the neighbor’s privacy fence to the north to prevent people from cutting through their property. Mr. Morrison said due to a neighborhood concern the temple is willing to make a change and provide revised drawings for council consideration. This change is to the City council meeting of October 15, 2018 (Item No. 4l) Page 2 Title: Planning commission meeting minutes August 15, 2018 yard along Vernon Avenue South where nine parking spaces would be removed and the retaining wall moved 16 feet to the east. This would provide approximately 30 feet of space between the sidewalk, and fence which is more consistent with the front yards of the area. This would also provide more space for landscaping. Mr. Morrison reviewed all recommended conditions for approval of the conditional use permit. Commissioner Kraft asked for clarification of trees planted for Phase I. Commissioner Carper asked about landscaping other than trees. Commissioner Carper asked why such a large parking lot is needed. Mr. Morrison responded that the parking lot is being sized for the future. Building it all now is the most economical way to do it, especially since the stormwater retention will be constructed underneath the parking lot. Commissioner Carper asked about the usage of the parking lot. Darin Troftgruben, project manager and temple member, spoke about the current outdoor Sunday market from 10 a.m. – 4 p.m., cultural events and large religious events which would use the expanded parking lot. He said there are not many evening events. He spoke about LED lighting in the parking lot. He said the lighting could be put on a timer to address neighborhood concern. He noted the lot has also been lowered to reduce illumination from the lot. Mr. Walther spoke about the need for security lighting which property owners often determine with the police department. Vice Chair Johnston-Madison opened the public hearing. Dale Anderson, 2700 Vernon Ave. S., said he was a charter member of the Reformation Church and has deep roots there. He discussed how he thought most of the parishioners were able to walk to the church and he didn’t understand there were also traffic problems until five years ago. He said he spoke with a minister who thought it’s a terrible site for a church because of ingress and egress problems. People had to go through the neighborhood to enter and leave the site which could result in tremendous traffic problems to 27th St., Vernon and Webster streets. Mr. Anderson said he’s concerned about traffic. He spoke about Reformation Church and the synagogue across the highway having traffic problems, unless people were able to walk there. He said he’s pleased to see that two of the issues he brought to the neighborhood meeting were mitigated; ugly sight lines and traffic noise from Hwy. 100 coming into the neighborhood. He said so far Wat Prom has been an excellent neighbor but he’s concerned about long term plans dramatically increasing services and events and the impact it will have on traffic in the neighborhood. City council meeting of October 15, 2018 (Item No. 4l) Page 3 Title: Planning commission meeting minutes August 15, 2018 Sharon Lehrman, 2610 Vernon Ave. S., said they greatly welcome Wat Prom into the neighborhood. She said Wat Prom is an amazing neighbor. She said her concern is about the loss of so many trees, especially with Phase I. Her request is that as many trees as possible be retained before Phase II starts. Plans can change and if Phase II didn’t occur, losing all of those trees would be terrible. She said the trees also serve as a noise barrier from Hwy. 100. Diane Steen-Hinderlie, 2829 Yosemite Ave. S., said she is alarmed that the sanctuary square might be torn down. She said a dozen people worked very hard on preserving the structure. She said she was so happy to have Wat Prom move in as neighbors, until she read this plan. She spoke about the book Lost Twin Cities. She said mid-century modern architecture is now a very important architectural element for preservation. She showed a photograph from the book regarding Reformation Church complex. She said it shouldn’t be altered other than surface things. Ms. Steen-Hinderlie said the acoustic elements of the square building should be saved as these elements were the prototype for Minneapolis’ Orchestra Hall. She suggested this space could also be rented as it has perfect seating for community concerts. She said the city should have a heritage preservation commission. Tom Schmitz, 2571 Vernon Ave. S., a 22-year resident, said there is a natural barrier between the frontage road and commercial. Phase I, 2 and 3 will open up that barrier. He said we can’t talk about Phase 1 without considering Phases 2 and 3. Why would you build a large parking lot if Phases 2 and 3 weren’t going to happen? The neighborhood is concerned about loss of buffer and facing commercial. He said the garden has been a great asset and should be preserved. He said he wishes the city could purchase the garden. Sue Wolfe, 2600 Vernon Ave. S., lives directly across from the path. She said she and her husband each owned businesses in the city. She said she was a founding member of Friends of the Arts and she started Day One at the high school. She said the neighborhood process has been extraordinary and the temple is a wonderful neighbor. She said she shares concerns about losing green space, trees and the buffer from Hwy. 100. The meetings have been productive and she assumes they will continue being productive. She said her concern is that the Planning Commission decision tonight would not inhibit future changes. Many things can change. She asked if Phase 1 is approved is it possible to amend it along the way as changes are made. Neighbors have mentioned being interested in purchasing trees for the property. She is concerned about the maintenance of the parking lot. She said currently the temple has no paid staff and operates with volunteerism. She said she and her husband do take care of the path, mow across the street, and try to keep it looking good. She has concerns about how the large parking lot will be maintained over the years. Lisa Robinson, 2575 Vernon Ave. S., said she agreed with many speakers that the process has been very good and the temple has been a great neighbor. She said Vernon is a residential street and the integrity of the residential street needs to be maintained. The larger setback will help. She spoke about connecting the fence. Ms. Robinson said she would like a completion date of when the parking lot will be done to make sure City council meeting of October 15, 2018 (Item No. 4l) Page 4 Title: Planning commission meeting minutes August 15, 2018 trees are planted, escrow for trees is provided, and making sure the project gets finished. She said she doesn’t want to see the area left in disarray for a long time, waiting for funding. Kathryn McKeen, 2834 Vernon Ave. S., said her concern is traffic. She said currently drivers exit Hwy. 100, back up on the frontage road by the dealership and come through the neighborhood very fast. She said she is often unable to back out of her driveway because of cut through traffic. Ms. McKeen said if 200 more vehicles are trying to get into that space the traffic will get worse. The traffic is already problematic. Vice Chair Johnston-Madison closed the public hearing. Commissioner Peilen commented that many people walk to Beth El Synagogue on the Sabbath. She added that for any major service the Beth El parking lot is packed, many people park on Salem Ave., and there is driving through the neighborhood. She said the point made about preserving trees until Phase 2 is good. Mr. Morrison responded due to the grading and excavation for the parking lot most of the trees must be removed. Trees on the south side will be saved until Phase 2 is constructed. The intent is to get new landscaping in as soon as possible so that when Phase 2 starts there will be 10 years of growth. The intent is to plant the area with coniferous trees with year round screening. There was a discussion about Mr. Schmitz’ concern about loss of barrier to the residential side at Phase 2. Mr. Morrison said the intent is to minimize the impact on Vernon Avenue South by having the fence and building meet the same setback required for the homes. Additional landscaping will provide green space along that area. During Phases 2 and 3 there will be a public process, so additional modifications can be made at that time. Commissioner Peilen asked about the 10-year gap between Phase 1 and 2. Mr. Morrison responded it is about fund raising. Commissioner Eckholm asked if any trees might be saved by the retaining wall being moved to the east. Mr. Morrison said that will be evaluated. Construction of the wall itself will require some digging to anchor the wall. Grading also needs to be done for sidewalk. Commissioner Peilen made a motion recommending approval of the conditional use permit. Commissioner Eckholm seconded the motion. Commissioner Peilen said her level of discomfort is about the 10 years between Phase 1 and 2. What happens if Phase 2 doesn’t materialize? City council meeting of October 15, 2018 (Item No. 4l) Page 5 Title: Planning commission meeting minutes August 15, 2018 Commissioner Tatalovich said he agreed. Commissioner Peilen asked why not raise more funds now and begin a few years down the road. Mr. Troftgruben said the phased approach was presented to the temple by the city because the parking lot needs to be replaced now. Repairing it today means handling stormwater, sewer, utilities, access and lighting. He commented that a lot of the traffic isn’t just about people coming. It is about them trying to find parking spots. He spoke about outdoor activities being their largest fundraisers. He said if they don’t have a large parking lot to accommodate those activities it affects Phases 2 and 3. Commissioner Carper said the conditional use permit is for a parking lot. The applicant has the right to build a parking lot and do nothing other than build a parking lot. He said there are conditions and there is no reason to deny it based upon future activities. The motion recommending approval of the conditional use permit passed on a vote of 6-0. B. Urban Park Apartments Applicant: Ben Delwiche, KaasWilson Architects Location: 3601 Phillips Parkway Case Nos.: 18-33-CUP, 18-34-VAR, 18-35-VAR, 18-36-VAR 18-37-VAR, 18-38-VAR Jacquelyn Kramer, Associate Planner, presented the staff report. The applicant requests a conditional use permit for import/export of soil and material associated with construction, and five variances to build a second apartment building. Ms. Kramer reviewed vehicular parking. She provided a zoning analysis and noted two conditions of approval required for the parking variance: 1) all off-street parking spaces on the site will be made available to residents in both buildings; and 2) a parking management plan will be required as a condition of approval for the parking variance. Ms. Kramer reviewed conditional use permit requirements and provided an analysis of the variance requests. Ms. Kramer stated construction is anticipated to begin in January 2019 and will last approximately one year. She said Phillips Parkway and the regional trail will remain open throughout construction. Ms. Kramer discussed the public input process. Concerns of the 10 residents attending the August 8, 2018 neighborhood meeting regarded parking. The property manager discussed a proposed parking permit system at that meeting. The staff report included a letter in opposition to the project from a community member. Commissioner Peilen said the applicant is about 35 spaces short of the requirement. City council meeting of October 15, 2018 (Item No. 4l) Page 6 Title: Planning commission meeting minutes August 15, 2018 Ms. Kramer stated based on the code requirements they are short, but the applicant argues that based on the demand that is experienced in the current building there wouldn’t be a parking shortage. There was a discussion about parking management plans mitigating impacts on a neighborhood. In response to questions, Sean Walther, Planning and Zoning Supervisor, stated that parking management plans establish the approach management will take to effectively use the parking available and reduce problems. It can be an enforcement mechanism if complaints are received. Ben Delwiche, applicant, KaasWilson Architects, spoke about the proposed parking management plan. He discussed the balance of the unit mix on the site and how that affects parking needs. Smaller units are proposed for the new building. He stated how the requested variances provide consistency with the look of the existing building, site and the trail. Mr. Delwiche stated that originally the applicant proposed a larger new building. They were urged by staff to reduce that size which has resulted in a plan that provides building consistency, creates vast improvements to the site, and improves resident amenities. Commissioner Peilen asked if each unit would be guaranteed a permitted parking spot, but not necessarily more than one. Mr. Delwiche said every unit is guaranteed a parking stall. He discussed available alternate means of transportation. He added that the city requires 10% parking be set aside for guests. This is managed by signs on the site. Brenda Hvambsal of Steven Scott Management said they manage Urban Park Apartments. She noted that they also manage and do lease-up for Ellipse, e2, and Shoreham developments. They are very familiar with parking management plans. She discussed details of a plan. Ms. Hvambsal stated they are already in the process of using parking permits at Urban Park Apts. She said there would be a spot guaranteed per unit, not per bedroom. Commissioner Eckholm discussed safety concerns bicyclists using the regional trail have at the curb cuts at the parking lot because of landscaping and drivers pulling out rapidly from the parking lot. Mr. Delwiche responded that one of the things they’ve been working on is increasing site lines of those particular entrances. He also spoke about temporary safety measures at the trail that will be made during construction. Commissioner Eckholm suggested doing more than increasing site lines; perhaps a physical way of stopping cars rushing straight up to the street. He discussed raising the trail area. City council meeting of October 15, 2018 (Item No. 4l) Page 7 Title: Planning commission meeting minutes August 15, 2018 Mr. Walther said staff and the applicant will explore this and have a solution or proposal when the application is presented to City Council. Vice Chair Johnston-Madison opened the public hearing. Donna Rock, 3601 Phillips Parkway, said she is a 30 year resident of St. Louis Park. Her letter was included in the staff report. She said the south end of the proposed building and the pool will take over a natural habitat. Currently there is a grill, seating, space for dog walking, and wildlife. The best thing about living in Urban Park is the aspect of park that is still there. There will be a major loss of trees. Ms. Rock said she has concerns about the parking variance. Currently she doesn’t have to worry about parking for her guests. She spoke about street parking not being available when Sholom, located across the street, has events. Street parking isn’t always available. She said she is concerned about the variance and the loss of green space between the trail and the existing parking lot. She is concerned about safety for bikers and drivers during the year of construction as one entrance/exit of the parking ramp will be closed during that time. She said that will be particularly difficult in the winter because of ice and the inclined driveway. Ron Donacik, campus administrator, Sholom Senior Living, 3600, 3610, 3620 and 3630 Phillips Parkway thanked Urban Park Apts. management and tenants. He said they have been great neighbors. He stated that the 400 plus Sholom residents are concerned about parking. He said the evening and nighttime parking situation at Sholom is relatively fluid. Weekday hours the parking lot is heavily congested. Weekday hours along Phillips Pkwy is also heavily congested. He said Sholom is worried about their parking lot being used for parking by Urban Park residents and guests. He stated that having accessible and close parking for Sholom’s elderly residents is critical. He is concerned about the ability of fire and police to get in and out of the area. Mr. Donacik said all Sholom is asking is that there is a thorough parking plan to ensure that any potential parking issues relative to Sholom are mitigated. The Vice Chair closed the public hearing as no one else was present wishing to speak. Commissioner Peilen said in this instance she would feel better if she could see a parking management plan. She said she is quite familiar with the Sholom campus and has been to the campus numerous times and parking is tough. Commissioner Peilen commented that transit isn’t fully developed in St. Louis Park and isn’t necessarily an option for everyone. She stated she is concerned about the parking variance. Vice Chair Johnston-Madison said she feels it is a very tight project. She said she believes parking is a huge issue and doesn’t feel she can support the application. Commissioner Carper said he isn’t comfortable about the parking either. He said it seems unusual not to include on-street parking in the parking count. He said he doesn’t recall the Commission or the city ever refusing something based upon the lack of on- street parking. He said he has heard some reasonable explanations on how the City council meeting of October 15, 2018 (Item No. 4l) Page 8 Title: Planning commission meeting minutes August 15, 2018 apartment management will control parking and make this work based upon past experience. He said he will support the request to move forward. Mr. Walther explained that the off-street parking ordinance allows for any on-street parking that is adjacent to a site to allow a reduction in off-street parking on a one-for- one basis. He explained how that could reduce the variance request. Staff is familiar with the site and is aware of the pressure for parking during the day in the area. That drove staff’s decision to encourage the applicant to downsize the proposal. Mr. Walther said staff was very conservative in not including the on-street parking. They took this approach because of the unusual narrow site and historic use of the on-street parking by the neighboring use. He said the city has good experience with parking plans and the management company. The recommendation was also based upon Urban Park’s current experience with parking. Commissioner Carper spoke about time of day considerations between Sholom and Urban Park Apartments. He said he didn’t think the Commission should disqualify a good project that adds more housing to the city, housing that would be more affordable. Commissioner Kraft said she’s concerned about parking but the project is taking a challenging site and putting in a variety of housing types that aren’t available in their existing building. She said the applicant is adding some other amenities, and due to its location it might appeal to a group of people that might not all have cars. She said we should be open to thinking about it in those terms. Vice Chair Johnston-Madison said she can support the request now that she understands that three-bedroom units wouldn’t all have 3 cars. Ms. Rock stated that the party room holds 30-50 people. There would be no parking for those guests. She added that management isn’t available outside of business hours to deal with parking problems. Regarding the three-bedroom units, she said the younger urban professionals who are roommates do have 3 vehicles. She said she doesn’t know how many of the three-bedroom units are occupied by families. Commissioner Peilen made a motion recommending approval of the conditional use permit and variance with conditions. Commissioner Eckholm seconded the motion, and the motion passed on a vote of 5-0-1 (Peilen abstained). C. Westwood Hills Nature Center Applicant: City of St. Louis Park Location: 8300 Franklin Avenue Case No.: 18-31-CUP Jacquelyn Kramer, Associate Planner, presented the staff report. The conditional use permit is requested for import/export of soil and material associated with construction of a new interpretive center at Westwood Hills Nature Center. City council meeting of October 15, 2018 (Item No. 4l) Page 9 Title: Planning commission meeting minutes August 15, 2018 Ms. Kramer reviewed the haul route for excavation, construction hours, construction duration, and tree replacement. She stated the application meets conditional use permit general requirements and zoning requirements. She discussed the neighborhood meeting held on July 31, 2018 and resident feedback. Vice Chair Johnston-Madison opened the public hearing. Jay Jaffee, 2521 Princeton Ct., spoke in support of the new interpretive center, calling the nature center a true gem in the community. Commissioner Carper spoke about the importance of continuing to support the nature center and the entire recreation and parks system. Commissioner Peilen made a motion recommending approval of the conditional use permit with conditions recommended by staff. Commissioner Eckholm seconded the motion, and the motion passed on a vote of 6-0. 4. Other Business 5. Communications Mr. Walther said two public hearings for zoning text amendments will be held at the September 5, 2018 meeting. A development tour is planned to follow the regular meeting. 6. Adjournment The meeting was adjourned at 8:30 p.m. Respectfully submitted, Nancy Sells Recording Secretary Meeting: City council Meeting date: October 15, 2018 Minutes: 4m OFFICIAL MINUTES PLANNING COMMISSION ST. LOUIS PARK, MINNESOTA SEPTEMBER 5, 2018 – 6:00 p.m. COUNCIL CHAMBERS MEMBERS PRESENT: Claudia Johnston-Madison, Jessica Kraft, Lisa Peilen, Carl Robertson, Joe Tatalovich, Alanna Franklin (youth member) MEMBERS ABSENT: Lynne Carper (excused), Matt Eckholm (unexcused) STAFF PRESENT: Sean Walther, Gary Morrison, Jennifer Monson 1. Call to Order – Roll Call 2. Approval of Minutes of August 1, 2018 Commissioner Peilen made a motion to approve the minutes. Commissioner Tatalovich seconded the motion, and the motion passed on a vote of 5-0. 3. Public Hearings A. Zoning ordinance amendment – educational facilities in the R-4 Zoning District Applicant: Yeshiva of Minneapolis Case No.: 18-39-ZA Gary Morrison, Assistant Zoning Administrator, presented the staff report. Yeshiva of Minneapolis, 3115 Ottawa Ave. S., is requesting an amendment to the zoning ordinance to allow dormitories at schools located in the R-4 Multiple-Family Residence district. He provided background on the high school and dormitories. He discussed the anticipated expansion to the facilities. He explained that proposed improvements will require several zoning applications. The first step would be to amend the zoning ordinance to increase the maximum number of students allowed to live at the school. Mr. Morrison reviewed proposed conditions to the amendment. Commissioner Peilen asked about parking. Mr. Morrison said parking would be located along the south of the property, across the street in an existing parking lot, and in the back of the school. He said parking required for a school is based on teachers in classrooms. A higher formula is required for a high school. However, students are not allowed to have cars at Yeshiva. Mr. Morrison added that parking could be reviewed in depth with the future applications that come forward. Chair Robertson asked about R4 zoning adjacent to the site. City council meeting of October 15, 2018 (Item No. 4m) Page 2 Title: Planning commission meeting minutes September 5, 2018 Mr. Morrison stated there is RC high density multiple family to the west, R3 to the north and east, and the Belt Line development area to the south. Commissioner Johnston-Madison asked Mr. Morrison for a map showing the area. Mr. Morrison presented a zoning map indicating the zoning of the parcel and adjacent properties. Commissioner Johnston-Madison asked what would happen if Yeshiva chose to change the rules to allow cars. Mr. Morrison responded the applicant would then have to come forward to amend the conditional use permit, as this is included as a condition of the approval. Shlomo Kutoff, dean and founder, Yeshiva of Minneapolis, spoke about the school’s growth. He said they have no intention of allowing students to have cars. He said it would be a tremendous addition if they could house more students. Mr. Shlomo stated the school currently has 45 out-of-town students that are housed at the site and 35 local students. Chair Robertson opened the public hearing. As no one was present wishing to speak, he closed the public hearing. The Chair said he was comfortable that the planned proposal would not be spot zoning. Commissioner Peilen made a motion recommending approval of the zoning ordinance amendment pertaining to education facilities in the R-4 Multiple-Family Residence as recommended by staff. Commissioner Tatalovich seconded the motion, and the motion passed on a vote of 5-0. B. Zoning ordinance regarding home occupations Applicant: City of St. Louis Park Case No.: 18-43-ZA Sean Walther, Planning and Zoning Supervisor, presented the staff report. He stated that the city council directed staff to explicitly prohibit firearm sales as a home occupation. He discussed the home occupation land use description currently in the zoning code. He explained the purpose of the proposed amendment is to clarify that the rules apply to both for-profit and not-for-profit home occupations and to also explicitly prohibit certain additional home occupational uses. He stated those uses include firearm sales, currency exchange, payday loan agency, sexually-oriented business and high impact sexually oriented businesses. All of these uses are currently required to be separated from residential uses when located in a commercial district. Chair Robertson and Mr. Walther discussed the difference between a firearm sale and a retail sale. City council meeting of October 15, 2018 (Item No. 4m) Page 3 Title: Planning commission meeting minutes September 5, 2018 Commissioner Peilen asked about a ban on retail sales. She said there are any number of women’s clothing lines that are sold in the home. She described these sales as occurring approximately four times a year. Samples are shipped back to the retailer and items purchased are shipped directly to the customer. Mr. Walther said the type of activity as described by Commissioner Peilen is not prohibited. Commissioner Johnston-Madison said many multi-level marketing businesses are run out of homes. Product is being stored in homes. She said she didn’t think those businesses could be construed as retail sales. Commissioner Johnston-Madison asked city council’s intent in prohibiting firearm sales as a home occupation. Mr. Walther responded it came up when council asked how the city currently regulates firearm sales and where they are permitted. Commissioner Johnston-Madison asked if any Federal Firearms Licensees (FFLs) are selling firearms from their homes today in St. Louis Park. Mr. Walther stated he believed there are approximately six current FFLs operating as home occupations at this time. Commissioner Johnston-Madison noted for the record that she didn’t appreciate some of the wording in the emails received from the public on the proposed amendment. She asked about the procedure of licensing. Mr. Walther said he doesn’t know all the details of how the licenses are issued. He said the zoning division is asked whether or not that use is allowed in the zoning ordinance. That is asked initially when a license is being obtained and again when it is renewed. The zoning division is asked if the FFL meets the local regulations. The Chair said he would like more definition about firearm sales as a primary home occupation or as a related home occupation like gunsmith. He said sometimes gunsmiths will make a sale of a custom item that was manufactured on site. Mr. Walther said the city will have to look at every case individually. He said he doesn’t believe gunsmith would meet current regulations for home occupations. He added that conditions for home occupations as an accessory use in each district are noted in the zoning code. Chair Robertson said with gunsmith there seems to be a gray area that a firearm might be produced off site but modified on site. He went on to say this is a complex item and he doesn’t have enough information such as wording and definitions to feel comfortable voting on the item. He suggested holding the public hearing and tabling the vote. City council meeting of October 15, 2018 (Item No. 4m) Page 4 Title: Planning commission meeting minutes September 5, 2018 Commissioner Johnston-Madison said she agreed. She said she doesn’t have enough information and also wants background information on why this is being proposed. Mr. Walther asked the commission to provide him with specific questions. Commissioner Peilen said she would not vote to table. She said she doesn’t think guns have any business being sold in private residences. The Chair said he would like to sit down with the six FFLs and see how they do business. He said he doesn’t see the purpose of the extra proposed step. Mr. Walther said there are approximately six FFL holders that operate as a home occupation. He’s spoken with one FFL holder who primarily does internet sales of collector antique firearms. He explained how the proposed amendment would limit new future home occupations. Chair Robertson said he sees zero issue with this and doesn’t see why it should be prohibited. Commissioner Kraft asked what surrounding cities are doing about this. Mr. Walther responded it varies from city to city. Conditions are similar but there are differences in each city. He added that the city attorney attended the city council study session where the issue was discussed and the attorney’s opinion is that cities can place reasonable limits upon firearm sales, including the proposed zoning code amendment. Chair Robertson opened the public hearing. Rob Doar, political director and vice president of MN Gun Owners Caucus, 716 County Hwy. 10, Minneapolis, distributed his letter opposing the proposed ordinance to the commission. He said commissioners’ questions were good. He said the question of why is important as state statute specifically protects firearms dealers, and requires that any ordinances to be enacted be reasonable, non-arbitrary and non-discriminatory. He stated there has to be a very significant justification of why the ordinance would be enacted. Mr. Doar said the major function of FFLs is firearm transfers. He said FFLs have to renew their license every three years which includes a federal inspection. He said many gunsmiths are often FFL dealers. He stated the vast majority of FFL dealers sell at gun shops and gun shows and are not handling customer traffic at their front doors. Mr. Doar said there are important distinctions of the functions of what FFL dealers do that go beyond the scope of the intent of retail sales. He said prohibiting those functions would be discriminatory and arbitrary. Mr. Walther noted that email correspondence opposing the proposed amendment and comments on 2nd amendment rights had been received and distributed to the commission at the beginning of the meeting. Email correspondence opposing the ordinance was received from David H. Anderson, Robert J. De brey, Ryan Daniels, James City council meeting of October 15, 2018 (Item No. 4m) Page 5 Title: Planning commission meeting minutes September 5, 2018 Guertin, Taylor Jones, Kevin S., Thomas Knute, Marc Olivier, Matthew Race, Rocky Vandal and James Allison, 5639 Nicollet Ave., Mpls. Emails were received by city staff after 3:30 p.m. on September 5, 2018. The Chair closed the public hearing as no one else was present wishing to speak. Chair Robertson stated he understands the logic of separating gun sales from neighborhoods, but a retail gun sale with transfer is different. This kind of firearm sale is already separated from the neighborhood. He said he wouldn’t vote to approve the amendment as it seems discriminatory and he doesn’t see that there is an issue. He said his understanding is that the federal regulations are pretty strict and guns aren’t being sold out the door. He added that to force someone to rent an office space to do their business is burdensome and he isn’t comfortable with it. Commissioner Peilen said she isn’t comfortable with storage and distribution of guns from homes. Commissioner Johnston-Madison remarked that she wants to receive more information. She wants a good reason for the amendment that is definable and explainable. She stated she wants facts. She referenced a gun study in one of the emails. Commissioner Johnston-Madison said she’d like to see the item tabled. The Chair asked Commissioner Franklin, youth member, for her thoughts about gun issues. Commissioner Franklin responded that students are scared. She said students aren’t fully educated about this issue. She said the ones who are fully educated about the issue are speaking up about their fears. She said she would like to know more about the proposed amendment. Commissioner Tatalovich stated that none of the emails received appeared to come from St. Louis Park residents. Commissioner Tatalovich made a motion recommending tabling the request. He added that his opinion on this subject is much closer to Commissioner Peilen’s. Commissioner Johnston-Madison seconded the motion, and the motion to table passed on a vote of 4- 1 (Peilen opposed). In summary, the Chair requested information on what the city is trying to fix and if there is an issue to be addressed. Commissioner Johnston-Madison asked to know why the council is recommending this and if there are any studies that we should be aware of. Commissioner Peilen added that details regarding home based sales need to be developed. Mr. Walther asked commissioners in clarifying the ordinance broader restrictions on retail sales if they wanted it to be more restrictive or less restrictive than the current rules. City council meeting of October 15, 2018 (Item No. 4m) Page 6 Title: Planning commission meeting minutes September 5, 2018 The Chair responded it needs to be more defined. Commissioner Tatalovich spoke about finding a certain threshold the city should be looking at in terms of home occupations and retail sales. Commissioner Peilen said a lot of people could be put out of business so a greater definition of what is allowed and what isn’t allowed needs to be determined. 4. Other business 5. Communications Mr. Walther discussed the adoption of the moratorium on the former Sam’s Club property at 3745 Louisiana Avenue for the purpose of reviewing land use and zoning regulations for property. He discussed changes for the property which are proposed in the 2040 Comprehensive Plan. He noted that the next Planning Commission meeting will be held on October 3, 2018. 6. Adjournment The meeting was adjourned at 7:00 p.m. Study Session – Tour The regular meeting was followed by a study session tour of AC Hotel by Marriott, 5075 Wayzata Boulevard, and a walking tour of the West End to observe window transparency examples and pedestrian scale amenities. The tour was adjourned at 8:00 p.m. Respectfully submitted, Nancy Sells Recording Secretary Meeting: City council Meeting date: October 15, 2018 Public hearing: 6a Executive summary Title: Rasoi, LLC dba Taste of India – on-sale wine and 3.2% malt liquor license Recommended action: Mayor to open public hearing, take public testimony, and close public hearing. Motion to approve application from Rasoi, LLC dba Taste of India for an on-sale wine and 3.2% malt liquor license for the premises located at 5617 Wayzata Boulevard. Policy consideration: Does the applicant meet the requirements for the issuance of an on-sale wine and 3.2% malt liquor license? Summary: The city received an application from Rasoi, LLC dba Taste of India for an on-sale wine and 3.2% malt liquor license for the property located at 5617 Wayzata Boulevard. Taste of India is an existing, licensed restaurant in St. Louis Park. The current owner has entered into an agreement to sell the business to the applicant, Rasoi, LLC. The applicant, Sahib Singh has served as the on-site manager at Taste of India for several years and has been responsible for the day-to-day operations of the restaurant. Mr. Singh will continue to serve as the on-site manager of the restaurant after the transfer of ownership. During his tenure as manager there have been no reported issues related to alcohol service at the restaurant and all compliance checks have been passed successfully. No material changes to the restaurant have been proposed at this time. The police department conducted a full background investigation, and nothing was discovered that would warrant denial of the license. The application and police report are on file in the city clerk’s office. The required notice of the public hearing was published on October 4, 2018. If the license is approved, nothing will be issued until all requirements have been met with the city inspections department, Hennepin County, and the State Alcohol and Gambling Enforcement Division. Financial or budget considerations: Fees include $500 for the background investigation and a pro-rated fee for the on-sale wine and 3.2% malt liquor license for the period from October 1, 2018 through March 1, 2019. Strategic priority consideration: Not applicable. Supporting documents: None Prepared by: Melissa Kennedy, City Clerk Reviewed by: Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager Meeting: City council Meeting date: October 15, 2018 Public hearing: 6b Executive summary Title: Assessment of delinquent charges Recommended action: Mayor to open the public hearing, solicit comments, and close the public hearing. Motion to adopt resolution to assess delinquent water, sewer, storm water, refuse, abating grass/weed cutting, tree removal/injection, false alarm fees and other miscellaneous charges. Policy consideration: Does the City Council desire to collect outstanding fees and charges through the special assessment process? Summary: The City certifies delinquent charges to Hennepin County as a means to collect on these accounts. The certification is done via the special assessment process, and becomes a lien on the individual properties that is due over the next year or several years, depending upon the type of charge. Information on the 2018 certification process is provided in the following discussion. Financial or budget considerations: Collection of these charges is vital to the financial stability of the City’s utility systems and to reimburse the City for expenses incurred in providing services. Strategic priority consideration: Not applicable. Supporting documents: Discussion Sample certification letter Resolution Prepared by: Mark Ebensteiner, Finance Manager Reviewed by: Tim Simon, Chief Financial Officer Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 6b) Page 2 Title: Assessment of delinquent charges Discussion Background: Each of the customers involved in this special assessment process received a City service. Subsequently, the customers were then billed through our regular billing process. The invoice(s) is/are now past due, and the recommended method of collecting the past due amounts is through certification as a special assessment to the property for the next year or years taxes depending on the delinquency. In advance of the public hearing date, individual letters were mailed to property owners and tenants, if applicable, advising them of the assessment and their right to be heard before the City Council. Per Council policy, all delinquent utility accounts have been assessed a $15 administrative fee. This fee is not included in the 2018 amount below so as to provide consistent comparative data. The table below shows comparison data from 2014 - 2018 in relation to number of letters mailed and value of delinquent amounts. Year Number of Letters Delinquent Amounts Final Certification Amounts 2018 1413 $832,955 N/A 2017 1894 $952,953 $528,208 2016 1866 $964,642 $531,078 2015 1768 $900,558 $507,410 2014 1810 $929,886 $516,290 Each year there are a number of residents who pay their delinquent amount(s) before the certification deadline, thereby reducing the final amount certified and sent to Hennepin County. In addition, during the month of October, there are several hundred property owners who contact the City with questions about their outstanding balance(s) and the certification process. The delinquent balance was $681,842 as of the close of business on October 9, 2018. Staff will provide the delinquent amount balance as of the close of business on October 15, 2018 at the Council meeting. Customers have until October 26, 2018 at 4:30 p.m. to pay the delinquent amount. The amounts shown do not include interest, the $30 per account administrative fee, or the $75 penalty for utility accounts that are being certified for the second consecutive year. Of the 709 accounts certified last year, 421 received this additional penalty of $75 for being certified in consecutive years. A copy of the assessment roll is on file with the City Clerk’s office for review. Next steps: After conducting a public hearing, the City Council is asked to direct the assessment of delinquent water, sewer, storm water, refuse, abating grass/weed cutting, tree removal/ injection, false alarm fees and other miscellaneous charges against the benefiting property. Staff will continue to collect payments related to the delinquent accounts and work with residents to resolve issues related to their delinquent accounts. All delinquent accounts outstanding as of October 26, 2018 at 4:30 p.m. will be certified to Hennepin County for collection as part of the owner’s property tax bill. Upon certification, the delinquent amounts will become a lien on the individual properties. At this time, the Finance Division has not received notice of anyone wanting to speak at the Public Hearing. City council meeting of October 15, 2018 (Item No. 6b) Page 3 Title: Assessment of delinquent charges Date of Notice: September XX, 2018 Mailing Address Line 1 Mailing Address Line 2 Mailing Address Line 3 Mailing Address Line 4 RE: Charges Owed: For Delinquent Utility Account: Service Address: (ADDRESS) Delinquent Amount: (AMOUNT) Account Number: XXXXXXXX - XXXXXXXXXX Property I.D. Number: XXXXXXXXXXXXX The City of St. Louis Park encourages its customers to remain current in the payment of their bills. When accounts become delinquent, according to Minnesota law, they may be certified to Hennepin County to be collected with property taxes payable in the next year. City of St. Louis Park records show this account was delinquent as of September XX, 2018. By receiving this letter, this account has been moved into certification, and has received an administrative fee of $15. In an effort to avoid the account from being certified to property taxes, the City is requesting that payment in full be received at City Hall by Friday, October 26, 2018 at 4:30 p.m. If payment in full is not received by that date and time, the outstanding delinquent amount plus an administrative fee of $30, and interest at a rate of 4.00% for 13 months will be sent to Hennepin County for collection with the property taxes in 2019 (total administrative fee is $45). If this account was certified in the prior year, a $75 administrative penalty fee will also be assessed to the account (total administrative fee is $120). The City Council will consider final action on all delinquent accounts at a public hearing during the regular Council meeting on Monday, October 15, 2018 at 7:30 p.m. in the Council Chambers. A written appeal may be presented to the Council at that time, or appeals may be made to Mark Ebensteiner – Finance Manager, 5005 Minnetonka Blvd., St. Louis Park, MN 55416. The City would like to avoid the certification process, as it adds additional costs to all parties. There are several options available when making a payment; in person via cash, check or credit card at City Hall. Payments may also be made by mailing a check to City Hall, paying with a credit card or checking account at www.invoicecloud.com/stlouisparkmn or over the phone by calling 952.924.2111 and select option 1. If you wish to speak with someone about this notice or have questions about making a payment please call 952.924.2111, Monday through Friday 8:00 – 4:30. We are happy to assist. Thank you for your prompt attention to this matter. Mark Ebensteiner Finance Manager City council meeting of October 15, 2018 (Item No. 6b) Page 4 Title: Assessment of delinquent charges Resolution No. 18-___ Levying assessment for delinquent utility accounts, grass/weed cutting, tree removal/injection, false alarm fees and other miscellaneous charges Whereas, the City Council has heretofore determined by ordinance the rates and charges for water, sewer, storm water and refuse services of the city and has provided for the abatement of tree removal/injection, grass/weed cutting and other miscellaneous charges to a home or business shall be at the expense of the owners of the premises involved; and Whereas, all such sums become delinquent and assessable against the property served under Section 18-153, Section 18-154, Section 22-19, Section 32-34, Section 34-52, Section 34-56, Section 32-97, Section 32-153, Section 34-111, and Section 34-112, of the St. Louis Park City Code and Minnesota Statutes Sections 415.01, 366.011, 366.012, 429.061, 429.101, 443.015, 410.33, and 444.075; and Whereas, Finance has prepared a list of unpaid charges to be certified against each tract or parcel of land served by water, sewer or storm sewer, or against which all other miscellaneous charges remain unpaid at the close of business on September 1, 2018; and Now therefore be it resolved by the City Council of the City of St. Louis Park that said assessment rolls are hereby adopted and approved, there is hereby levied and assessed against each and every tract of land described therein an assessment in the amounts respectively therein, and the City Clerk is hereby authorized to deliver said assessment roll for amounts unpaid at the close of business on October, 26, 2018, to the Auditor of Hennepin County for collection of the assessment in the same manner as other municipal taxes are collected and payment thereof enforced with interest from the date of this resolution at the rate of four percent (4 %) per annum; and It is further resolved that said unpaid charges are hereby certified to the Auditor of Hennepin County, and the Chief Financial Officer is hereby authorized to deliver said list of unpaid charges to the Auditor of Hennepin County, for collection in the same manner as other municipal taxes are collected and payment thereof enforced with interest from the date of this resolution. Reviewed for administration: Adopted by the City Council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk Meeting: City council Meeting date: October 15, 2018 Public hearing: 6c Executive summary Title: Public hearing to consider first reading of 2019 fee ordinance Recommended action: Mayor to open the public hearing, take testimony, and close the hearing. Motion to approve First Reading of an ordinance adopting fees for 2019 and set Second Reading for November 5, 2018. Policy consideration: Are the proposed fees commensurate with the cost of the various services the city provides? Summary: Each year our fees are reviewed by departments prior to renewal and as part of our budget process. Some fees must be set and adjusted in accordance with our ordinance; other fees are allowed to be set administratively. All fees are reviewed each year based on comparison to other cities in the metro area, changes in regulations, and to make sure our business costs are covered for such service. At the October 8, 2018 Study Session, Council received a written report which included all proposed citywide fees for 2019. Answers to questions made by the council are included in the discussion section of this report. Council only acts on the Appendix A item as those are within our city code; the other fees are set administratively. Next steps: The second reading of this ordinance is scheduled for November 5, 2018. If approved, the fee changes will be effective January 1, 2019. Financial or budget considerations: The proposed fee changes have been incorporated into the preliminary 2019 budget. Strategic priority consideration: Not applicable. Supporting documents: Discussion Proposed ordinance Ordinance summary Study Session Fee Schedule Prepared by: Mark Ebensteiner, Finance Manager Reviewed by: Tim Simon, Chief Financial Officer Nancy Deno, Deputy City Manager/HR Director Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 6c) Page 2 Title: Public hearing to consider first reading of 2019 fee ordinance Discussion Background: Each Department Director has reviewed fees listed in Appendix A of the City Code. The Administrative Services Department has worked with individual departments and their recommendations are included in the attached ordinance. Present considerations: Summary of Proposed Ordinance Fee Changes The Administrative Services, Community Development, Engineering, Fire, Inspections, Operations & Recreation and Police Departments have each reviewed and analyzed the proposed fee adjustments, and/or additions, or removals that are the shown in Appendix A (attached). The 2019 proposed fee adjustments reflect the increased administrative costs of providing services. Questions from October 8, 2018 Study session -Pool fees – Should there be a family pass? o We do not have a family pass in place as our system is currently not capable of showing who is listed in the same family when the physical pass is scanned. We also have individual passes to deter season pass holders from allowing free entrance to additional patrons that are not part of their immediate family. Revenues may be reduced with a family pass. -Rental of ROC vs. Park Shelters – why is the rental of the ROC cheaper than the rental of a picnic shelter? o The rental rates at the ROC are intended to be affordable to all and to make sure the space is rented. Unlike the park buildings, the ROC is not air conditioned or heated and there are natural elements that can occur in this covered outdoor venue. Also please remember that anyone renting the ROC for an event also have to rent tables, chairs, etc. separate from the rental fee. Just for a comparison…it’s approximately $25/hour to rent the Oak Park Main Shelter and $30-$35/hour to rent the dry floor of the ROC. -Skate park rental cost – are the fees competitive with other cities and under what circumstances do we rent out? o Other city communities we contacted do not have a private rental fee for their Skate Parks. We instituted a rental fee primarily for residents who wanted exclusive use of the skate park and for non-resident groups who wanted to hold a large skate event…i.e. XGames or a videographer was doing a photo shoot, etc. A larger fee was set as to keep the park primarily open for the public. -Cost for body camera footage – When would this charge come into play? o The fee only is charged when we provide video to the requesting party. The fee covers the cost of duplicating the media and the cost of the media storage device it is saved on. Those who qualify to obtain videos have the right to view it at our office for free. The free viewing and cost of duplication of the video is compliant with the Minnesota data practices law. Next steps: The second reading of this ordinance is scheduled for November 5, 2018. If approved, the fee changes will be effective January 1, 2019. City council meeting of October 15, 2018 (Item No. 6c) Page 3 Title: Public hearing to consider first reading of 2019 fee ordinance Ordinance No. ___-18 Ordinance adopting fees for calendar year 2019 The City of St. Louis Park does ordain: Section 1. Fees called for within individual provisions of the City Code are hereby set by this ordinance for calendar year 2019. Section 2. The Fee Schedule as listed below shall be included as Appendix A of the City Code and shall replace those fees adopted November 6, 2017 by Ordinance No. 2526-17 for the calendar year 2018 which is hereby rescinded. ADMINISTRATIVE PENALTIES Chapter 4 – Animal Regulations $50 Chapter 6 – Buildings & Building Regulations Chapter 6, Article V – Property Maintenance Code $100 Chapter 8 – Business and Business Licenses $100 Chapter 12 – Environment $50 Chapter 12, Section 1 – Environment & Public Health Regulations Adopted by Reference $100 Chapter 12, Section 157 – Illicit Discharge and Connection $100 Chapter 12, Section 159 – Wetland Protection $100 Chapter 14 – Fire and Fire Prevention $100 Chapter 14, Section 75 – Open burning without permit $100 Chapter 20 – Parks and Recreation $50 Chapter 22 – Solid Waste Management $50 Chapter 22 – Solid Waste Management – Multifamily & Commercial $100 Chapter 22, Section 35b – Contagious Disease Refuse $200 Chapter 24 – Streets, Sidewalks & Public Places $50 Chapter 24, Section 24-43 – Household Trash & Recycling Containers blocking public way $50 Chapter 24, Section 50 – Public Property: Defacing or injuring $150 Chapter 24, Section 51 – Sweeping leaves or snow into street prohibited $100 Chapter 24, Section 151 – Work in public right-of-way without a permit $100 Chapter 24-342 – Snow, ice and rubbish a public nuisance on sidewalks; removal by owner Residential $25 first time, plus $10 each subsequent offens Commercial $25 first time, Fee shall double for each subsequent violation, with a maximum fee of $200 for SFR and $400 for all others. Doesn't reset annually. Does reset for new owners. Chapter 26 – Subdivision $100 Violation of a condition associated with a Subdivision approval. $750 Chapter 32 – Utilities $50 City council meeting of October 15, 2018 (Item No. 6c) Page 4 Title: Public hearing to consider first reading of 2019 fee ordinance Violation of sprinkling ban. $25 $50 first time, Fee shall double for each subsequent violation, with a maximum fee of $200 for SFR and $400 for all others. Doesn't reset annually. Does reset for new owners Chapter 36 – Zoning $50 Chapter 36, Section 37 – Conducting a Land Use not permitted in the zoning district $100 Violation of a condition associated with a Conditional Use Permit, Planned Unit Development, or Special Permit approval $750 Repeat Violations within 24 Months up to a maximum of $2,000 Double the amount of the fine imposed for the previous violation, up to a maximum of $2,000. For example, if there were four occurrences of a violation that carried a $50 fine, the fine for the fourth occurrence would be $400 (first: $50; second: $100; third: $200; fourth: $400). Fines in addition to abatement and licensing inspections Fines listed above may be in addition to fees associated with abatement and licensing inspections. CITY CLERK’S OFFICE Domestic Partnership Registration Application Fee $50 Amendment to Application Fee $25 Termination of Registration Fee $25 COMMUNITY DEVELOPMENT DEPARTMENT Comprehensive Plan Amendments $2,150 Conditional Use Permit $2,150 Major Amendment $2,120 Minor Amendment $1,150 Fence Permit Installation $20 Grant Technical Assistance (DEED, Met Council, Hennepin County, etc.) $3,000 ($2,000 non-refundable) Numbering of Buildings (New Addresses) $50 Official Map Amendment $600 Parking Lot Permit Installation/Reconstruction $75 Driveway Permit $25 Planned Unit Development Preliminary PUD $2,150 Final PUD $2,150 Prelim/Final PUD Combined $3,200 PUD - Major Amendment $2,150 PUD - Minor Amendment $1,150 Recording Filing Fee Single Family $50 Other Uses $120 Registration of Land Use $50 Sign Permit City council meeting of October 15, 2018 (Item No. 6c) Page 5 Title: Public hearing to consider first reading of 2019 fee ordinance Erection of Temporary Sign $30 Erection of Real Estate, Construction Sign 40+ ft $100 Installation of Permanent Sign without footings $100 Installation of Permanent Sign with footings $150 Special Permits Major Amendment $2,150 Minor Amendment $1,150 Street, Alley, Utility Vacations $900 Subdivision Dedication Park Dedication (in lieu of land) Commercial/Industrial Properties 5% of current market value of the unimproved land as determined by city assessor Multi-family Dwelling Units $1,500 per dwelling unit Single-family Dwelling Units $1,500 per dwelling unit Trails $225 per residential dwelling unit Subdivisions/Replats Preliminary Plat $1,000 plus $150 per lot Final Plat $600 Combined Process and Replats $1,200 plus $150 per lot Exempt and Administrative Subdivisions $375 Temporary Use Carnival & Festival over 14 days $1,500 Mobile Use Vehicle Zoning Permit (Food or Medical) $50 Time Extension $200 Traffic Management Plan Administrative Fee $0.10 per sq ft of gross floor Tree Replacement Cash in lieu of replacement trees $135 per caliper inch Variances Commercial $500 $550 Residential $300 Zoning Appeal $300 Zoning Letter $50 Zoning Map Amendments $2,100 $2,150 Zoning Permit Accessory Structures, 120 200 sq ft or less $25 Zoning Text Amendments $2,150 ENGINEERING DEPARTMENT Installation/repair of Sidewalk, Curb Cut or Curb and Gutter Permit $12 per 10 linear feet Base Fee $60 Permit Parking- High School and Medical Need No Charge Right-Of-Way Permits Excavation or Obstruction Permit Base Fee $60 Hole in Road/Blvd (larger than 10" diameter) $60 per hole City council meeting of October 15, 2018 (Item No. 6c) Page 6 Title: Public hearing to consider first reading of 2019 fee ordinance Trenching in Boulevard $200 per 100 linear feet (minimum $200) Trenching in Roadway $400 per 100 linear feet (minimum $400) Delay Penalty 2 times total permit fee Small Cell Wireless Facility Permit Permit Fee $1,500 per antenna Rent to occupy space on a city-owned wireless support Structure $150 per year per antenna Maintenance associated with space on a city-owned wireless support structure $25 per year per antenna Electricity to operate small wireless facility, if not purchased directly from utility (i) $73 per radio node less than or equal to 100 max watts; (ii) $182 per radio node over 100 max watts; actual costs of electricity, if the actual costs exceed the amount in item (i) or (ii) Delay Penalty 2 times total permit fee Temporary No Parking Signs (for ROW permit work) Deposit of $25/sign (minimum $100 per permit Temporary Private Use of Public Property $350 Dewatering Permit Administrative Fee (all permits) $250 Discharge to Sanitary Sewer Charge based on duration/volume of discharge Erosion Control Permit Application and Review – single family $200 Application and Review – other applicants $450 Deposit – single family $1,500 Deposit – other applicants $3,000 per acre (min. $1,500) FIRE DEPARTMENT False Fire Alarm Residential Commercial 1st offense $0 $0 2nd offense in same year $100 $100 3rd offense in same year $150 $200 4th offense in same year $200 $300 5th offense in same year $200 $400 Each subsequent in same year $200 $100 increase Fireworks Display Permit Actual costs incurred Service Fees Service Fee for fully-equipped & staffed vehicles $500 per hour for a ladder truck $325 per hour for a full-size fire truck $255 per hour for a rescue unit Service Fee of a Chief Officer $100 per hour After Hours Inspections $65 per hour (minimum 2 hrs.) Tent Permit Tent over 200 sq. ft. $75 Canopy over 400 sq. ft. $75 INSPECTIONS DEPARTMENT Building Demolition Deposit 1 & 2 Family Residential & Accessory Structures $2,500 City council meeting of October 15, 2018 (Item No. 6c) Page 7 Title: Public hearing to consider first reading of 2019 fee ordinance All Other Buildings $5,000 Building Demolition Permit 1 & 2 Family Residential & Accessory Structures $180 All Other Buildings $300 Building Moving Permit $500 Business Licenses Billboards $165 $170 per billboard Commercial Entertainment $285 $290 Courtesy Bench $60 $65 Dog Kennel $165 Environmental Emissions $330 $340 Massage Therapy Massage Therapy Establishment $370 $375 Massage Therapy License $120 $125 Therapists holding a Massage Therapy Establishment License $35 Pawnbroker License Fee $2,000 Per Transaction Fee $2 Investigation Fee $1,000 Penalty $50 per day Sexually Oriented Business Investigation Fee (High Impact) $500 High Impact $4,500 Limited Impact $125 Tobacco Products & Related Device Sales $590 $600 Vehicle Parking Facilities Enclosed Parking $245 Parking Ramp $195 Tanning Bed Facility $300 Certificate of Occupancy For each condominium unit completed after building occupancy $100 Change of Use (does not apply to 1 & 2 family dwellings) Up to 5,000 sq ft $450 $500 5,001 to 25,000 sq ft $750 $800 25,001 to 75,000 sq ft $1,000 $1,200 75,001 to 100,000 sq ft $1,400 $1,600 100,000 to 200,000 sq ft $1,700 $2,000 above 200,000 sq ft $2,200 $2,500 Temporary Certificate of Occupancy – Single Family Temporary Certificate of Occupancy – All other occupancies $85 $90 $150 Certificate of Property Maintenance Change in Ownership Condominium Unit $150 $155 Duplex (2 Family dwellings) $325 $335 Multi-Family (apartment) Buildings $255 $300 per building + $15 $17 per unit Single Family Dwellings $235 All Other Buildings: City council meeting of October 15, 2018 (Item No. 6c) Page 8 Title: Public hearing to consider first reading of 2019 fee ordinance Up to 5,000 sq ft $450 $500 5,001 to 25,000 sq ft $750 $800 25,001 to 75,000 sq ft $1,000 $1,200 75,001 to 100,000 sq ft $1,400 $1,600 100,000 to 200,000 sq. ft $1,700 $2,000 above 200,000 sq. ft $2,200 $2,500 Temporary Certificate of Property Maintenance SF Residential $85 $90 All others $200 $250 Certificate of Property Maintenance Extension $60 $65 Construction Permits (building, electrical, fire protection, mechanical, plumbing, pools, utilities) Building and Fire Protection Permits Valuation Up to $500 Base Fee $65 $500.01 to $2,000.00 Base Fee $65 + $2 for each additional (or fraction thereof) $100 over $500.01 Construction Permits (cont.) $2,000.01 to $25,000.00 Base Fee $95 + $15 for each additional (or fraction thereof) $1,000 over $2,000.01 $25,000.01 to $50,000.00 Base Fee $440 + $10 for each additional (or fraction thereof) $1,000 over $25,000.01 $50,000.01 to $100,000.00 Base Fee $690 + $7 for each additional (or fraction thereof) $1,000 over $50,000.01 $100,000.01 to $500,000.00 Base Fee $1,040 + $6 for each additional (or fraction thereof) $1,000 over $100.000.01 $500,000.01 to $1,000,000.00 Base Fee $3,440 + $5 $5.50 for each Additional (or fraction thereof) $1,000 over $500,000.01 $1,000,000.01 and up Base Fee $5,940 $6,190 + $4.50 $5.00 for each additional (or fraction thereof) $1,000 over $1,000,000.01 Single Family Residential Exceptions: Reroofing – asphalt shingled, sloped roofs only House or House and Garage $140 $145 Garage Only $70 $75 Residing House or House and Garage $140 $145 Garage Only $70 $75 Building Mounted Photovoltaic Panels $250 Electrical Permit Installation, Replacement, Repair $60 $65 + 1.75% of job valuation Installation of traffic signals per location $150 Single family, one appliance $60 $65 ISTS Permit (sewage treatment system install or repair) $125 Mechanical Permit Installation, Replacement, Repair $60 $65 + 1.75% of job valuation City council meeting of October 15, 2018 (Item No. 6c) Page 9 Title: Public hearing to consider first reading of 2019 fee ordinance Single Family Exceptions: Replace furnace, boiler or furnace/AC $70 $75 Install single fuel burning appliance with piping $70 $75 Install, replace or repair single mechanical appliance $60 $65 Plumbing Permit Installation, Replacement, Repair $60 $65 + 1.75% of job valuation Single Family Exceptions: Repair/replace single plumbing fixture $60 $65 Private Swimming Pool Permit Building permit fees apply Public Swimming Pool Permit Building permit fees apply Sewer & Water Permit (all underground private utilities) Installation, Replacement, Repair $60 $65 + 1.75% of job valuation Single Family Exceptions: Replace/repair sewer or water service $95 $100 Water Access Charge $750 $800 per SAC unit charged on new or enlarged water services. Competency Exams Fees Mechanical per test $30 Renewal - 3 year Mechanical $30 Contractor Licenses Mechanical $105 Solid Waste $210 Tree Maintenance $100 Dog Licenses 1 year $25 2 year $40 3 year $50 Potentially Dangerous Dog License – 1 year $100 Dangerous Dog License – 1 year $250 Interim License $15 Off-Leash Dog Area Permit (non-resident) $55 Penalty for no license $40 Inspections After Hours Inspections $250 plus $75 $90 per hour (minimum 2 hrs.) after the first hour Installation of permanent sign w/footing inspection Based on valuation using building permit table Re-Inspection Fee (after correction notice issued and has not been corrected within 2 subsequent inspections) $130 Insurance Requirements A minimum of: Circus $1,000,000 General Liability Commercial Entertainment $1,000,000 General Liability Mechanical Contractors $1,000,000 General Liability Solid Waste $1,000,000 General Liability Tree Maintenance & Removal $1,000,000 General Liability Vehicle Parking Facility $1,000,000 General Liability ISTS Permit Sewage treatment system install or repair $125 City council meeting of October 15, 2018 (Item No. 6c) Page 10 Title: Public hearing to consider first reading of 2019 fee ordinance License Fees - Other Investigation Fee $300 per establishment requiring a business lice Late Fee 25% of license fee (minimum $50) License Reinstatement Fee $250 Transfer of License (new ownership) $75 Plan Review - 50% of amount due at time of application. Exception: Single Family Residential additions, accessory structures and remodels. Building Permits 65% of Permit Fee Repetitive Building 25% of Permit Fee for Duplicate Structure Electrical Permits 35% of Permit Fee Mechanical Permits 35% of Permit Fee Plumbing Permits 35% of Permit Fee Sewer & Water Permits 35% of Permit Fee Single Family Interior Remodel Permits 35% of Permit Fee Rental Housing License Condominium/Townhouse/Cooperative $95 $100 per unit Duplex both sides non-owner occupied $180 $185 per duplex Housing Authority owned single family dwelling units $15 per unit Multiple Family Per Building $240 $250 Per Unit $16 $17 Single Family Unit $130 $135 per dwelling unit Temporary Noise Permit $70 Temporary Use Permits Amusement Rides, Carnivals & Circuses $260 Commercial Film Production Application $100 Petting Zoos $60 Temporary Outdoor Retail Sales $110 Vehicle Decals Solid Waste $25 $26 Tree Maintenance & Removal $10 OPERATIONS AND RECREATION DEPARTMENT Permit to Exceed Vehicle Weight Limitations (MSC) $50 each Winter Parking Permit Caregiver parking $25 No off-street parking available No Charge Off-street parking available $125 POLICE DEPARTMENT Animals Animal Impound Initial impoundment $40 2nd offense w/in year $60 3rd offense w/in year $85 4th offense w/in year $110 Boarding Per Day $30 Dangerous Dog Annual Review Hearing $250 Potentially Dangerous Dog Annual Review Hearing $250 Criminal Background Investigation Volunteers & Employees $5 City council meeting of October 15, 2018 (Item No. 6c) Page 11 Title: Public hearing to consider first reading of 2019 fee ordinance False Alarm (Police) Residential Commercial 1st offense $0 $0 2nd offense in same year $100 $100 3rd offense in same year $100 $125 4th offense in same year $100 $150 5th offense in same year $100 $175 Each subsequent in same year $100 $25 increase Late payment fee 10% Solicitor/Peddler Registration $150 Lost ID Replacement Fee $25 Vehicle Forfeiture Administrative fee in certain vehicle forfeiture cases $250 Section 3. This ordinance shall take effect January 1, 2019. First Reading October 15, 2018 Second Reading November 5, 2018 Date of Publication November 15, 2018 Date Ordinance takes effect January 1, 2019 Reviewed for administration: Adopted by the City Council November 5, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Approved as to form and execution: Melissa Kennedy, City Clerk Soren Mattick, City Attorney City council meeting of October 15, 2018 (Item No. 6c) Page 12 Title: Public hearing to consider first reading of 2019 fee ordinance Summary Ordinance No. _____-18 An ordinance adopting fees called for by ordinance for calendar year 2019 This ordinance sets 2019 fees as outlined in Appendix A of the City Code of Ordinances. The fee ordinance is modified to reflect the cost of providing services and is completed each year to determine what, if any, fees require adjustment. This ordinance shall take effect January 1, 2019. Adopted by the City Council November 5, 2018 Jake Spano /s/ Mayor A copy of the full text of this ordinance is available for inspection with the City Clerk. Published in St. Louis Park Sailor: November 15, 2018 Meeting: City council Meeting date: October 15, 2018 Action agenda item: 8a Executive summary Title: Cedar Lake Road Improvement Project No. 4019-1100 Recommended action: Motion to adopt Resolution accepting the project report, establishing Improvement Project No. 4019-1100, approving layout 1 and authorizing a contract with Bolton and Menk, Inc. for the design of final plans. Policy consideration: Does the city council wish to continue to pursue the proposed street rehabilitation project scope identified in this report? Summary: In 2019, road improvements are proposed on Cedar Lake Road between Kentucky Avenue and Quentin Avenue. This road is classified as an Urban Minor Arterial and is designated as a Municipal State Aid (MSA) road which makes it eligible for state funding (gas tax dollars). In order to qualify for funding, the road needs to be constructed to state aid standards. Given work load demands, the city engaged the consulting firm, Bolton & Menk, Inc., to complete the traffic study and preliminary design of Cedar Lake Road. The scope of the city’s project currently includes: •Replacement of all pavement between Kentucky Avenue and Quentin Avenue •Bike facility •Sidewalk construction •Streetlight replacement •Signal rehabilitation (Park Place Boulevard) •Removal of the existing signal at Zarthan and construction of a new roundabout. •Watermain replacement between Kentucky Avenue and Zarthan Avenue. •Miscellaneous utility rehabilitation Financial or budget considerations: The engineer’s estimate for this project is $8,607,391. Construction - $7,349,350, Engineering and Administration - $1,258,041. This project is included in the Capital Improvement Plan (CIP) for 2019. Funding will be provided by a combination of MSA, Utility Funds, and General Obligation Bonds (Sidewalks and bikeways). Strategic priority consideration: St. Louis Park is committed to providing a variety of options for people to make their way around the city comfortably, safely and reliably. Supporting documents: Discussion Resolution Location map Preliminary layouts available at: www.stlouispark.org/cedar-lake-road Resident petition Resident comments Prepared by: Joseph Shamla, Sr. Engineering Project Manager Reviewed by: Debra Heiser, Engineering Director Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 8a) Page 2 Title: Cedar Lake Road Improvement Project No. 4019-1100 Discussion Background: In 2019, Cedar Lake Road between Kentucky Avenue and Quentin Avenue is proposed to be rehabilitated. This road is an Urban Minor Arterial, and approximately 12,500 vehicles per day use the corridor. It is designated as a Municipal State Aid (MSA) road which makes it eligible for state gas tax funds. In order to qualify for funding, the road needs to be constructed to state aid standards. Cedar Lake Road was last reconstructed in the 1950’s, with a mill and overlay in the 1990s. In order to ensure that the improved Cedar Lake Road will meet the needs of the City for another 50 years, staff is taking a look at existing and future transportation needs of the corridor. Street rehabilitation: Operations and Engineering Dept. staff collaborated to determine the pavement technique recommended for Cedar Lake Road. After reviewing the condition of the road, staff recommends that the city remove and replace all pavement. Retaining walls in poor condition will also be replaced. The curb on the north side of the road is in good condition and is proposed to be saved. The curb on the south side of the road will be removed and replaced between Kentucky Avenue and Zarthan Avenue due to watermain replacement. All curb ramps within the corridor will be upgraded to meet the requirements of the American with Disabilities Act (ADA). Cedar Lake Road design: A corridor study was completed to guide the design of Cedar Lake Road. Using existing and forecasted traffic data and input from residents, the consultant developed 2 layouts for the city council’s consideration. The 2030 Comprehensive Plan designated Cedar Lake Road as a 3-lane road section where the 2-lane road is located today. The current corridor study indicates that the 3-lane section is not necessary for safety or traffic flow. In addition, adding a third lane would require a significant amount of right of way acquisition. The Connect the Park plan designates a bike facility on Cedar Lake Road. In addition, a bike facility is also proposed on Edgewood Drive, which intersects with Cedar Lake Road. The Edgewood Drive bike facility will be designed by the same consultant designing the pedestrian bridge over the railroad by Peter Hobart School. The final plans for the Cedar Lake Road project will be developed in close collaboration with the 2019 Connect the Park bridge project and the 2019 Pavement Management project. Our consulting firm, Bolton & Menk, completed a parking study to understand the extent and frequency of on-street parking in the corridor. They visited the site a total of 27 times to determine how many parking stalls were being utilized on Cedar Lake Road. The counts were completed at different times of the day, at night, and on weekends to get an accurate parking analysis. The parking counts show 4 or less cars parked along the entire corridor during 27 site visits. The parking analysis is available on the website at: www.stlouispark.org/cedar-lake-road Sidewalks: Existing sidewalks throughout the corridor will be repaired as needed. In addition, all pedestrian ramps will be upgraded to meet the requirements of ADA. There are two Connect the Park sidewalk segments near Cedar Lake Road proposed to be constructed with this project. The first segment is on the west side of Zarthan Avenue between City council meeting of October 15, 2018 (Item No. 8a) Page 3 Title: Cedar Lake Road Improvement Project No. 4019-1100 W. 16th Street and Cedar Lake Road. The other segment is located on the south side of Cedar Lake Road between Zarthan Avenue and the east entrance into Sunset Ridge. Staff is recommending that the following sidewalks be installed as a part of this project to close gaps in the sidewalk network: • Cedar Lake Road (south side): a new sidewalk between Kentucky Avenue and Zarthan Avenue along the south side of Cedar Lake Road. This section of sidewalk is a gap in the community sidewalk network. Adding this section of sidewalk will make it safer and more comfortable for residents to walk along Cedar Lake Road to access destinations, including bus stops, parks, schools, and commercial centers. In addition there are crosswalk enhancements being installed at intersections, discussed in the next section. Providing a sidewalk on both sides of the street will guide walkers to these improved crossings. • Ridge Drive: a new sidewalk is proposed to be installed along Ridge Drive to connect the multi-family housing to the Cedar Lake Road community sidewalk. Adding this section of sidewalk will make it more comfortable for residents to walk to Cedar Lake Road, accessing destinations, including bus stops, parks, schools, and commercial centers. Intersection traffic control: Based on the results of the traffic study, staff is recommending the following intersection modifications. A. Rehabilitation of the signal system at Park Place Boulevard. Due to the amount of traffic at the intersection of Park Place Boulevard and Cedar Lake Road, the signal would need to be replaced with a 2 x 2 roundabout. A 2 x 2 roundabout has two lanes of traffic approaching the intersection in each direction. For reference, the roundabouts at Louisiana Avenue and Highway 7 are each 2 x 1 roundabouts. Why is a signal recommended at Park Place Boulevard? 1. The current signal operates efficiently with little vehicle delay. 2. There would be an increase to vehicle delay with a 2 x 2 roundabout at this intersection, increasing carbon emissions. 3. MnDOT’s roundabout study completed in 2017 reported a 146% increase in crashes from the conversion of a signalized intersection to a 2 x 2 roundabout. 4. The conversion to a roundabout at this intersection would cost significantly more than the rehabilitation of the signal. B. Removal of the signal at Zarthan Avenue – Installation of a roundabout. Advantages of the roundabout at this intersection: 1. Vehicle delay will be reduced at the intersection which will result in a reduction of carbon emissions. On average, each car which travels through the intersection will save 3.25 seconds. Total idle time reduced at the intersection on an average day is almost 15 hours, saving residents time, money and is better for the environment. 2. MnDOT conducted a study of 144 roundabouts in Minnesota in 2017. According to their study the switch from a traffic signal to a single lane roundabout results in an average of 83% reduction in serious injury crashes along with a 27% reduction in total crashes. 3. Pedestrians will only cross one lane of traffic at a time. City council meeting of October 15, 2018 (Item No. 8a) Page 4 Title: Cedar Lake Road Improvement Project No. 4019-1100 4. Vehicles will need to slow down through the roundabout making it safer for pedestrians. 5. A single lane roundabout has fewer pedestrian conflict points than a traffic signal. Please refer to diagram below to visualize the conflict points for each intersection. C. Pedestrian crossing improvements: 1. Dakota Avenue: A rapid flashing beacon is proposed at the intersection of Dakota Avenue and Cedar Lake Road. This traffic control device flashes to let drivers know that a pedestrian is ready to cross. This location was chosen to provide a connection between the Elliot neighborhood and the bike / pedestrian bridge proposed on Edgewood Drive to cross the railroad tracks by Peter Hobart School. 2. Hampshire Avenue: A rapid flashing beacon is also proposed at the intersection of Hampshire Avenue and Cedar Lake Road. This location has an existing crosswalk. Pedestrian and bicycles within a roundabout A bicyclist has a two different options when entering a roundabout at Zarthan Avenue. • Take a ramp to a multi-use trail through the roundabout and back to the bike facility on the other side of the roundabout, or • Use the drive lane. The designated speed for a roundabout is typically 15 mph. Most experienced on road bikers can maintain that speed consistently and will use the drive lane to move through the intersection. Less confident bikers can use the ramp to the multi-use trail to go through the intersection. Pedestrians will cross the roundabout at crosswalks which are offset from the roundabout by about 20 feet. This allows reaction time and space for a driver to stop for a pedestrian. Each leg of the roundabout has a splitter island to allow pedestrians to cross one lane of traffic at a time. In addition to the benefits discussed above, there are the following benefits of the roundabout versus a traffic signal for pedestrians: City council meeting of October 15, 2018 (Item No. 8a) Page 5 Title: Cedar Lake Road Improvement Project No. 4019-1100 • Vehicles need to slow down to maneuver through a roundabout where they may speed up if the light is turning red. • The first thing that a driver sees at a roundabout is the crosswalk. Drivers can focus on pedestrians at the crosswalk, then proceed to looking for an opening to take a right to enter the roundabout. At a signal, a driver is looking at: pedestrians, openings in traffic to turn left or right, other vehicles turning left or right, and the current color of the signal light. • At the crosswalk, pedestrians only have to look at drivers coming from one direction and always have priority. Financial consideration: Funding will be provided through a number of sources. Please see table below to see how this project will be funded. Construction cost Contingency (15%) Engineering Total Municipal State Aid (MSA) $2,896,430 $434,465 $724,108 $4,055,002 Watermain $1,325,000 $198,750 $132,500 $1,656,250 Sanitary Sewer $42,857 $6,429 $4,286 $53,571 Storm Water Utility $421,430 $63,215 $42,143 $526,788 Sidewalk gap (GO Bonds) $298,575 $44,786 $74,644 $418,005 Connect the Park (GO Bonds) $795,720 $119,358 $198,930 $1,114,008 Trail replacement (MSA) $135,720 $20,358 $33,930 $190,008 Street lighting (MSA) $367,857 $55,179 $36,786 $459,821 Upgrade rail crossing (MSA) $107,150 $16,073 $10,715 $133,938 Total $6,390,739 $958,611 $1,258,041 $8,607,391 Public feedback: Three public meetings were held for this project. The first meeting was to collect information and comments prior to starting the preliminary design. The next meeting was to provide layouts based on the feedback from the first meeting and the results of the corridor study. The third meeting was a public hearing which provided residents the opportunity to address the City Council. Staff has been informed of 3 main concerns for Cedar Lake Road. • Parking: A total of 29 residents informed us that losing parking was an issue. Most of the response regarding parking was provided on the petition which is attached to this report. The residents who live on Cedar Lake Road have informed us that they like convenience of some parking for guests or for deliveries. • Bicycle facility: A total of 27 people signed the petition that they did not want a bike facility on Cedar Lake Road. • New sidewalk: In addition, there are 25 people who signed the petition that they did not want sidewalk on the south side of Cedar Lake Road. City council meeting of October 15, 2018 (Item No. 8a) Page 6 Title: Cedar Lake Road Improvement Project No. 4019-1100 Layouts: The consultant has developed two layouts for consideration based on feedback from the public. The difference between the two layouts is that Layout 1 has 15 parking stalls on Cedar Lake Road and Layout 2 has no parking on Cedar Lake Road. In addition, Layout 1 has a cycle track on the south side of Cedar Lake Road and Layout 2 has a buffered bike lane. The cycle track is 5 feet in width and is located behind a drive over style curb. The bike lane is 5 feet in width and has a buffer of 1.5 feet. In both layouts, a bike lane will be installed on the north side of Cedar Lake Road. The reason a bike lane was chosen for the north side of Cedar Lake Road is because the existing curb line is not being replaced and it would cost significantly more to change the north side of the road to a cycle track. The removal of parking on Cedar Lake Road will provide more green space which also decreases the amount of directly connected impervious surface, reducing runoff to our lakes, ponds and streams. Staff recommendation: Staff has reviewed both layouts and believes that either layout will provide a safe corridor for pedestrians, bicycles, and vehicles. Staff is recommending Layout 1 for approval by the city council which includes 15 parking stalls on Cedar Lake Road. This option provides on-street parking within 200 linear feet of each residential property. The on-street parking may be on Cedar Lake Road or a side street. The feedback from residents during the public process was that they were concerned about losing all of the parking on Cedar Lake Road. The proposed Connect the Park segments are included in both layouts and are recommended to be constructed with this project. This includes: • A bike facility from Kentucky Avenue to Quentin Avenue. • Sidewalk on the west side of Zarthan Avenue from 16th Street to Cedar Lake Road • Sidewalk on the south side of Cedar Lake Road from Zarthan Avenue to the existing sidewalk near Ridge Drive Staff is recommending that the following sidewalks be installed as a part of this project to close gaps in the sidewalk network, making it safer and more comfortable for residents to walk along Cedar Lake Road to access destinations, including bus stops, parks, schools, and commercial centers: • Cedar Lake Road (south side): a new sidewalk between Kentucky Avenue and Zarthan Avenue along the south side of Cedar Lake Road. This section of sidewalk is a gap in the community sidewalk network. Also, providing a sidewalk on both sides of the street will guide walkers to improved pedestrian crossings. • Ridge Drive: a new sidewalk is proposed to be installed along Ridge Drive to connect the multi-family housing to the Cedar Lake Road community sidewalk. Consulting Contract Amendment: Bolton & Menk, Inc. was awarded the original contract for this project on June 18, 2018 for $248,126. This contract was for preliminary design (30% plans) and did not include final design services. The reason for not including final design with the original contract is due to not having a defined scope of work. At the time of the original contract we did not know if the third traffic City council meeting of October 15, 2018 (Item No. 8a) Page 7 Title: Cedar Lake Road Improvement Project No. 4019-1100 lane was going to be necessary or how the project may change due to public input. Approval of the preliminary layout defines the project scope. The consultant has provided amendment to the contract to provide consultant services through final design. Please see contract total below. AMOUNT Original Contract $248,126 Amendment #1 $576,150 Total Contract Amount $824,276 The estimated construction cost for this project is $6,390,739. The contract for design services with this amendment will be 13% of the estimated construction cost. Industry standard for engineering costs on construction projects can range from 20% to 35% depending on the complexity of the project. This includes design and construction services. The cost for construction services is dependent on the final design and will be determined when it is complete. Staff has a high expectation from the consultant for resident support and responsiveness. The consultant will be meeting with individual property owners to address final design questions. Cedar Lake Road is a Municipal State Aid street, there are many facets of the project that will require coordination with MnDOT, utility companies, and businesses. As a result, we believe that the contract cost is consistent with the scope and demands of this project. Proposed schedule: In order to ensure there is enough time to construct the improvements in 2019, staff needs direction on which layout should proceed to final design. A significant amount of work is required to complete the final plans, acquire easements, and bid the project prior to the start of the 2019 construction season. The following is the proposed schedule: 60 percent plans November 2018 90 percent design open house Approve plans and specs and authorize ad for bid Award contract January 2019 January 22, 2019 March 4, 2019 Construction April – Nov 2019 City council meeting of October 15, 2018 (Item No. 8a) Page 8 Title: Cedar Lake Road Improvement Project No. 4019-1100 Resolution No. 18-____ Resolution accepting the project report, Establishing improvement project no. 4019-1100, Approving layout 1 and authorizing a contract with Bolton & menk, inc for the design of final plans Whereas, the City Council of the City of St. Louis Park has received a report from the Project Engineer related to the Municipal State Aid Project - Cedar Lake Road – Project No. 4019-1100: Now therefore be it resolved by the City Council of the City of St. Louis Park, Minnesota, that: 1. The Project Report regarding Project No. 4019-1100 is hereby accepted. 2. Such improvements as proposed are necessary, cost effective, and feasible as detailed in the Project Report. 3. The proposed preliminary Layout 1 is hereby approved. 4. An amendment to the preliminary design contract of $576,150 with Bolton and Menk, Inc. is approved for a total contract amount of $824,276. Reviewed for Administration: Adopted by the City Council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk ?úA@ %&e( 14th Street West 26th Street Wes t Par k woodsRoadCedarLakeR oadLouisianaAvenueSouthPark Place BoulevardP a r k d a le D r iv e Franklin AvenueWest Ga m b le Drive 25th Street Wes t Wayzata B oulevard Douglas Avenue WebsterAvenueSouthF orest RoadZarthanAvenue SouthHampshireAvenueSouth28th Street West ParklandsRoad GeorgiaAvenueSouthC eda r wood R oadKentucky Avenue South27th Street West Kentucky L a n e18th Street West 25 1/2 Street West 22nd Street West 24th Street W e st IdahoAvenueSouthFloridaAvenueSouthUticaAvenueSouthDakotaAvenueSouthEliot View RoadAvondaleRoad Fairlawn WayMontereyAvenueSouthQuentinAvenueSouthRaleighAvenueSouthSalemAvenueSouthToledoAvenueSouthMarylandAvenueSouthNevadaAvenueSouthLouisiana C ourtYosemiteAvenueSouthStateHighway100FrontageRoadNatchezAvenueSouthSunsetRid g e 23 rd S tre e tWestBarry Street VernonAvenueSouthXenwoodAvenueSouth16th Street West EdgewoodAvenueSouthAlabama Avenue SouthColoradoAvenueSouthKiplingAvenueSouthJerseyAvenueSouthLynn Avenue SouthRidge DriveMap Document: \\arcserver1\GIS\STLP\C18116699\ESRI\Maps\STLP_8X11L_CedarLakeProject.mxd | Date Saved: 8/24/2018 1:46:46 PMCedar Lake Road Project Area 0 0.25MilesSource: Hennepin County, MnGeo Cedar Lake Road City of St. Louis Park Project Area Map August 2018 Legend !I City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 9 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 10 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 11 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 12 Public Open House #1 – July 25, 2018 2019 Cedar Lake Rd Improvements Summary of Public Input Received St. Louis Park Neighborhood Meeting – 7/25/18 2019 Cedar Lake Road Improvements General comments before & after the presentation •Lanes in both directions desired under bridge 5912 Cedar Lake Rd •Can bus stop at Zarthan be relocated? Very close to unique driveway. •Pulling in driveway can be challenging so close to signal •Worried about access during construction. Very difficult access 6410 Cedar Lake Rd •Does not want signal at Edgewood 6610 Cedar Lake Rd •Concerned with parking •Wants signal at Cedar Lake Rd •Water shutoff is 10’ behind retaining wall •Only use parking on occasion •Can cycle track only be placed on south side? Makes bus stops difficult with nowhere for pedestrians to wait •Prefers cycle track over bike lanes •Concerned about people not stopping for peds at Hampshire 6701 Cedar Lake Road •Concerned about parking and having enough room for sidewalk •Only has single car garage and uses onstreet parking for other vehicle 6805 Cedar Lake Road •Would like to see alternating block single lane of parking option City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 13 Public Open House #1 – July 25, 2018 2019 Cedar Lake Rd Improvements Q&A, comments during the presentation Q: Why is the watermain being replaced? Wasn’t some replaced not that long ago? A: Watermain replacement is due to age. A small section was replaced on CLR more recently and that section will not be replaced. Q: What happens if our curb stop is in or near a retaining wall? A: Retaining walls may need to be removed and reinstalled for water and sewer service work. Each situation is unique. Property owners are encouraged to contact project team if they foresee this issue or would like to discuss specific situations. Comment: A resident spoke in favor of sidewalk on west side of Zarthan Comment: Concerns expressed about bicyclists not staying with in bike lanes. They tend to spread out and bike in drive lanes. Comment: Corridor is used by cycling club Comment: Concerns about lack of space for a new sidewalk on south side of Cedar Lake Road. There is concern that the sidewalk will be too close to homes. Q: Is it possible for parking to remain in place and place a slotted hourly restriction that the bikers can use during rush hour? A: We can consider that. It was also presented that Cedar Lake Road was identified in the Connect the Park vision to have a dedicated bikeway installed. Q: Is the pedestrian crossing to the east of Ridge St going to be reinstalled? That crossing is a problem area A: The project team is reviewing that crossing and potential relocation of bus stops to promote crossing at other locations. Comment: Traffic gaps along Cedar Lake Road can be too short people to pull out of driveways Q: Was an on street cycle track considered? A: Yes, it was and is. Typically we see those application as retrofits though, and in in this case given the watermain work there is an opportunity to move the curb wherever we would like it to be. Because the lane delineators can be somewhat of a nuisance for plowing, so focus was shifted to an off-street cycle track above/behind the new curb. Q: Will any work happen on the sidewalk on the north side? A: To remain cost effective, our initial goal is to save the north sidewalk and curb except for spot replacements due to condition and water service replacements. Once those are identified though, the north curb and sidewalk will be evaluated to see if it should stay or go in terms of what is most cost effective. Q: Will trees be impacted, and if they are, will homeowners have a say in the new trees? A: Homeowner will have some say in tree type if one is replaced in their yard. The project team / City engineering staff will coordinate with City forester and homeowners. Tree replacement happens in the spring of the following year. City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 14 Public Open House #1 – July 25, 2018 2019 Cedar Lake Rd Improvements Comment: Preference to cycle track, removes bicycles from traffic land and can be used with kids. Commenter is confident cyclists will not use bike lanes anyway and parents will not let kids bike in bike lane Q: How will access work with water trenches? A: Special accommodations will be considered for elderly and disabled even when trench is in front of house. Let project staff know and we will work each resident to accommodate them. Trenches will be filled each night. Temporary access restrictions will occur during work hours. Q: Left turns into Lifetime Fitness can be difficult. Is this being considered? A: Yes, it is. Cameras were recently installed and data collected at this location. Comment: Pedestrian crossing at Hampshire is difficult. It is signed for motorists to stop for pedestrians, but vehicles still don’t stop Comment: Busses have a difficult left turn at Edgewood Q: Why does the sidewalk need to be 6 feet behind the curb? Why can’t the sidewalk be installed at the back of curb like on Louisiana Ave? If the sidewalk is that far back it would run into my retaining wall. Will it impact trees? A: The 6 feet of green space between the curb and sidewalk is desirable for safety of pedestrians and to be able to plant boulevard trees. The retaining wall could possibly be avoided if that is needed or the wall would be removed and replaced behind the sidewalk. The City will attempt to route sidewalk around trees. Q: What is being installed on Lake St for bicyclists? A: Pavement markings called sharrows and signs, indicating the road is shared between cyclists and motorists. Q: Will we know in advance if our driveway will be blocked off and who do we hear it from or who do we contact? A: There will be continuous communication throughout the construction process including door-to-door flyers, weekly email updates, monthly newsletters, and most importantly there will be an on-site observer who will be in the neighborhood while construction is occurring. All residents will have the on-site observer’s phone number to contact about access concerns and project questions or updates. Q: How does yard waste, garbage cans, and recycling work during construction? A: It is the Contractor’s responsibility to make sure either the collection trucks can access the cans at end of your driveway or they will pull the cans to a nearby location where the truck will be able to access the cans and then bring them back to your driveway. Residents just need to put there cans in their normal location on pick up days. City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 15 Public Open House #2 – September 12, 2018 2019 Cedar Lake Road Improvements Summary of Public Input Received St. Louis Park Neighborhood Meeting 2 – 9/12/18 2019 Cedar Lake Road Improvements General •6610 Cedar Lake Road agrees something needs to be done with the roadway due to its poor condition. •6712 Cedar Lake Road resident provided the attached tabulation of resident feedback. This resident mentioned she went door to door along Cedar Lake Road and recorded each homeowner’s feedback regarding the project criteria. Parking •A resident commented that there is not much street parking available at Hampshire due to use by those that live in the apartments. •6712 Cedar Lake Road resident expressed significant concern about loss of parking. Intersections / Traffic Safety Q: Can Alabama and 16th be made into a 4-way stop? It is already stop controlled in one direction. A: The project team will review and consider this. •The improved crossing and rectangular rapid flashing beacon (RRFB) shown at the intersection with Dakota Ave is at a good location. •5912 Cedar Lake Road – Resident is ok with proposed right-in, right-out access as shown due to proposed roundabout. This resident likes the proposed roundabout at the intersection as the resident always is in fear of being rear-ended going into their driveway under current conditions. If possible would like their bushes acting as a street buffer and the turnaround in the driveway replaced due to their necessary removal. Street Lighting •Two residents requested more lighting at the Hwy 100 underpass, commenting that it is very dark in that area and sometimes don’t feel safe. Engineer Shamla noted this is something that may be added to the project design. Bus Stops •6712 Cedar Lake Road – Resident does not like limestone blocks as benches at bus stops. Aestheitcally not attractive. Also not functional because they are too low. It can be challenging for some users to get up from them because they are too low. •5912 Cedar Lake Road – Resident would like to see bus stop at Zarthan relocated. City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 16 Public Open House #2 – September 12, 2018 2019 Cedar Lake Road Improvements Bicycle Facility •6610 Cedar Lake Road – Were bicycle counts completed? Resident does not see need for a bicycle facility beyond how the existing parking lanes function. City should consider time restrictions on parking use to allow bicyclists to use parking lanes rather than a dedicated bicycle facility. •A resident provided a comment card noting they had wished they had been at the first meeting. They also noted the liked the idea of boulevards because it is SO important for snow removal. Sidewalks / Pedestrian Traffic •6610 Cedar Lake Road – Resident would rather see sidewalks replaced in full on both sides of the roadway rather than patch work on the north side and new sidewalk on the south side. Utilities Q: Can the overhead power lines be buried as part of the project? A: This is not in the scope of the project currently, and is generally very expensive to u undertake. Therefore, it is possible but unlikely to occur with the project. •6610 Cedar Lake Road – Resident is ok with impacts to his retaining wall for water service replacement. Resident understands wall replacement would be completed by the City if it is impacted. Trees •1632 Zarthan Ave likes the boulevard between the sidewalk and the road and said they are okay with the tree in front of their home being removed for a boulevard to be installed. Construction Phase Q: Zarthan currently has time restrictions on when parking is allowed. During construction, I understand parking will not be allowed at least on the west side of the street when the new curb and sidewalk is installed. Could the time restrictions be temporarily taken off on the east side to allow parking there during construction? A: Potentially yes, and similar temporary allowances have been made during construction. The project team and City will review this possibility. Q: What will the City do for restoration of yards? A: Disturbed areas will be restored with topsoil sod, typically. If residents desire, the City can leave out topsoil and/or sod, or the City could install mulch for residents if they request it in lieu of sod. City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 17 I attended the last Cedar Lake Road Open House on July 25th A. Yes B. No (but I heard they had cookies and wish I would have been there)A.B. 6 3 POLL QUESTION POLL QUESTION City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 18 I reside… A. On Cedar Lake Road B. On a roadway within 6 blocks of Cedar Lake Road C. Elsewhere in St. Louis Park D. Outside of St. Louis Park but work or own a business near Cedar Lake Road E. Outside of St. Louis Park but heard the cookies last time were amazing! A.B.C.D.E. 5 4 00 1 POLL QUESTION POLL QUESTION City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 19 Which two design constraints are most important to you? (Pick two!) A. Retaining some parking B. Maximizing boulevard space for trees, lights, signage, and snow storage C. Maximizing bikeway buffers for safety D. Off-street bicycle facility for less advanced users E. On-street bicycle facility for advanced users F. Minimizing tree losses G. Minimizing private property impacts POLL QUESTION POLL QUESTION 7 votes 4 votes 1 vote 1 vote 0 votes 1 votes 7 votes City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 20 Which alternative best serves all ages, and all abilities? A. Alternative 1: EB cycle track, WB bike lane, some parking, sidewalk on both sides B. Alternative 2: Bike lanes, no parking, sidewalk on both sides A.B. 2 7 POLL QUESTION POLL QUESTION City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 21 Which alternative best allows for snow storage and amenity space? A. Alternative 1: EB cycle track, WB bike lane, some parking, sidewalk on both sides B. Alternative 2: Bike lanes, no parking, sidewalk on both sides A.B. 6 3 POLL QUESTION POLL QUESTION City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 22 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 23 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 24 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 25 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 26 City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100Page 27 From:   Sent: Tuesday, October 02, 2018 6:15 PM  To: Joseph Shamla  Cc: mikewa@bolton‐menk.com; Tim Brausen  Subject: Cedar Lake Road Improvements | St. Louis Park, MN  Hi Joe, I just wanted to drop you a note re the planned Cedar Lake Road improvements. I live at 2275 Kentucky Lane, right off Cedar Lake Road. At the outset, I want to say that I am very happy to see sidewalks going in on the south side of Cedar Lake Road and hope sidewalks will be coming to Kentucky Lane as well. I love SLP, but our community really suffers from the lack of sidewalks and inability to walk and connect to different neighborhoods. I understand this lack of walkability and connectivity can be characteristic of first ring suburbs considered mere "bedroom communities," but SLP is its own place and deserves the sense of place conveyed by walkability and connectivity. I would also like to cast my vote of sorts definitively for Layout #2. After reviewing the parking study, it is difficult to understand why Layout #1 has been recommended to the Council. Existing parking is vastly underused according to the study, and--given the great toll that free parking has exacted on cities in general and the fact that encouraging automobile use really cuts against walkability and cycling--I find it difficult to understand how this recommendation was reached. The conclusions reached by Bolton Menk in the parking study also seem to support Layout #2 over Layout #1. No explanation for the recommendation was really provided last night, although I understand that was likely due to lack of time. Cedar Lake Road, although a somewhat busy street, remains a beautiful, undulating thoroughfare. I believe it would be far better to replace the parking spaces that aren't needed with boulevard trees that will bestow environmental, aesthetic, and protective benefits on the community--i.e., boulevard tree are more likely to protect pedestrians and cyclists from automobile traffic than an empty parking space. I was talking with neighbors tonight who have lived on Kentucky Lane for over 30 years, and, amazingly, even though I couldn't convince them that sidewalks in general were a good idea, we agreed that trees were preferable to parking spaces and that Layout #2 was preferable to Layout #1 (they were at the Council meeting last night as well). Please consider going with Layout #2 and bringing sidewalks to Kentucky Lane as well. Regardless, best of luck with this and your other projects. Respectfully, 2275 Kentucky Lane City council meeting of October 15, 2018 (Item No. 8a) Title: Cedar Lake Road Improvement Project No. 4019-1100 Page 28 Meeting: City council Meeting date: October 15, 2018 Action agenda item: 8b Executive summary Title: Gun shows at city facilities Recommended action: Motion to adopt Resolution banning gun shows at city facilities. Policy consideration: Does the city council wish to approve a policy that bans gun shows from city facilities? Summary: The city council discussed firearm sales on May 21, 2018 and July 23, 2018. On July 23, 2018 the city council directed staff create a policy banning gun shows from city facilities. Gun shows are events where sellers sell firearms and related items at a venue for a temporary period of time. Federally licensed dealers and unlicensed sellers can sell firearms during these events. During a gun show, a federally licensed dealer uses the same procedures they would at their storefront, including a criminal background check and registration of the sale. Unlicensed sellers may sell to a private party at a gun show without any background checks or registration of the sale, also known as the “gun show loophole.” That means that the private individuals selling generally do not have to have a license to sell, meaning that the federally mandated background checks for purchasers do not apply. However, sale of a pistol or assault rifle by a private individual does require either that the buyer have a permit (which requires a background check to obtain) or that the police department first verifies that the individual is allowed to possess the firearm. Sale of a firearm other than a pistol or assault rifle at a gun show does not require any type of background check or police review of the buyer. The city has the ability to prohibit these events from city owned property. Note, the City of St. Louis Park has not had a gun show on city owned property in the past. The attached policy prohibits gun shows from city owned property in an effort to prevent the “gun show loophole.” Financial or budget considerations: None Strategic priority consideration: Not applicable. Supporting documents: Resolution City Council Study Session Minutes May 21, 2018 (link) City Council Study Session Minutes July 23, 2018 (link) Prepared by: Maria Carrillo Perez, Management Assistant Reviewed by: Soren Mattick, City Attorney Approved by: Tom Harmening, City Manager City council meeting of October 15, 2018 (Item No. 8b) Page 2 Title: Gun shows at city facilities Resolution No. 18-___ Resolution Banning Gun Shows on City Facilities Whereas, the city council wishes to adopt a policy banning gun shows on city facilities; Now therefore be it resolved that the city council of the City of St. Louis Park approves the following policy: The City of St. Louis Park zoning ordinance governs the location of the sale of firearms. Based on the conditions imposed by the zoning ordinance, there are not any city facilities that would be allowed to host the sale of firearms. Accordingly, the City of St. Louis Park bans all gun shows, swap meets and other like events that the main reasoning for the event is the sale/exchange of firearms. The ban of the aforementioned events is in place for the Rec Center Campus and at all other City of St. Louis Park facilities. Reviewed for administration: Adopted by the City Council October 15, 2018 Thomas K. Harmening, City Manager Jake Spano, Mayor Attest: Melissa Kennedy, City Clerk