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HomeMy WebLinkAbout2018/10/08 - ADMIN - Minutes - City Council - Study Session/OfSt. LOUIS Park Official minutes M I N N E S O T A City council study session t.r;6no WF - in the Park St. Louis Park, Minnesota October 8, 2018 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Pro Tem Tim Brausen, Steve Hallfin, Rachel Harris, Anne Mavity, Thom Miller, and Margaret Rog. Councilmembers absent: Mayor Jake Spano Staff present: City Manager (Mr. Harmening), Economic Development Coordinator (Mr. Hunt), Community Development Director (Ms. Barton), Associate Planner (Ms. Monson), Management Assistant (Ms. Carrillo Perez), and Recording Secretary (Ms. Pappas). Guest: Martha Ingram, Consultant; Chris Velasco, PLACE developer 1. Future Study Session Agenda Planning — October, 2018 Mr. Harmening presented the proposed Study Session agenda for October, 2018. He noted various topics including the housing study, which will be discussed. Councilmember Mavity stated she will send the council a link related to affordable housing in the western suburbs, conducted by Doherty. Mayor Pro Tem Brausen stated utility pricing will also be discussed as it relates to the city's Climate Action Plan. 2. Update on purchase and redevelopment contract with PLACE Ms. Barton presented an update on PLACE's Via project. She summarized the project and that the EDA had entered into a Purchase and Redevelopment Contract with PLACE E -Generation one, LLC on May 1, 2017. She stated PLACE now seeks to secure 501c3 bond financing for a portion of Via Sol and to reissue the housing allocation bonds to construct the housing component of Via Luna. She added PLACE is also proposing to close on the north parcels either by November 21st, or by the end of 2018 to allow additional time to secure the financing for Via Sol. She noted however, PLACE has indicated it would not be able to obtain financing for the remaining Via Luna components until June of 2019, and has requested an extension of the closing date for the south parcels to June 30, 2019. Reissuance of the housing allocation bonds must occur by November 21, 2018 or the bonds will expire. Ms. Barton stated if the council wants to proceed towards considering the issuance of the bonds as outlined, the EDA will need to consider a fourth amendment to the contract extending the closing dates for the north parcels and the south parcels until November 21, 2018 and June 30, 2019, respectively. Councilmember Mavity asked what is possible and what the city is responsible for in this project, as it stands today, and if the project does not happen. Study Session Minutes -2- October 8, 2018 Ms. Barton stated the Hennepin County contamination cleanup grant has largely been expended. Mr. Hunt added the Hennepin County TOD grant is with the city and stays with the city. Ms. Barton added that grant contracts typically include a clause that if the project does not come to fruition, the city may have to pay back any grant funds that have been expended. Councilmember Mavity asked, if all costs are qualified costs, are there additional costs. Mr. Harmening stated opportunity costs can be lost. Councilmember Mavity stated the hotel is a stumbling block, and asked if the city did other studies to repurpose this if needed, adding would it be better to do commercial space on the corner. Mr. Hunt stated a traffic analysis was conducted on both the north and south sides, and traffic was looked at with the housing, hotel and commercial space included, adding the studies showed area traffic could accommodate the project components as proposed. Councilmember Miller asked the developer what he envisions changing in the financial outlook, and what is occurring now that wasn't before. Mr. Velasco stated the bonds were eliminated in the tax bill last year, and pricing has crept back up, while interest rates have also gone up. He added the Marriott Hotel is holding up the project as they have not yet approved the design, so in waiting for the design approval, the developer has had to hold on the financing arrangements. Councilmember Miller stated while he has loved this development and the affordable housing component, he is looking to staff for their recommendations now. He stated he is concerned about so many moving parts to this, and that some pieces of the project might fall away. He added he has concerns about timing and opportunity cost losses, and is concerned about the long-term effects. Ms. Barton stated at this point, given the developers track record, she thinks it will be difficult for PLACE to complete the entire project as planned and to do it in a timely manner. She continued, moving ahead with only a portion of the project might only get the city a small portion or an incomplete project. She added if council is ok with just an apartment building on the north parcels, that's fine; but if they are looking for the project to be fully constructed, she is not sure the developer can get it done in a timely manner. Councilmember Harris asked the developer, given the obstacles with regard to financing, what sort of certainty are they able to develop this within the timeframe. She added the community has looked at this development for a long time and she herself was an early supporter, but she asked the developer for feedback on how achievable the work plan is now. Mr. Velasco stated he cannot make guarantees about securing financing for all aspects of the project at this point, however he still feels certain it is achievable, barring some unforeseen disaster. He stated with the 501c3 bonds, the project would work. Councilmember Rog also noted the opportunity costs, and asked staff if they have any knowledge of anyone else currently interested in the site, or any feedback or other opportunities. Mr. Hunt stated there is interest in the project, but the city has already entered into a redevelopment Study Session Minutes -3- October 8, 2018 agreement with PLACE. Ms. Barton noted that they have not pursued or entertained any other interest in the site as the EDA has a contract with PLACE and continues to work with them exclusively. However, the site is a prime five -acre property at a light rail station, and would likely be snapped up quickly if the PLACE project does not move forward. Councilmember Rog asked what happens if the design is not approved by Marriott by March of 2019. Mr. Velasco stated financing will be tied into the design approval by Marriott, adding his project will have to mesh with Marriott's design plans before he would be able to pursue financing. Councilmember Rog asked why there is so much difficulty with the banks. Mr. Tyler Hoch, Stifel (project underwriter), stated with tax reform in 2017, the value of tax credits dropped, so the financing changed. He stated eventually when conventional financing did not work, they went back for 501c3 bonds, and there was some interest from some financial investors. He noted financiers are interested in the parcel, saying it is a very good development also with the green space and artist lofts, but noted they would be interested in doing the largest parcel first, and then the rest of the phases. Mayor Pro Tem Brausen asked if the financing might be ready by October 25th. Mr. Hoch noted they are working to get the investor set up before that, and have had solid interest from investors on the 501c3 bonds. Mayor Pro Tem Brausen read an email from Mayor Spano that stated the Mayor had concerns regarding the developer's ability to move the project forward in a timely manner. Councilmembers Rog, Hallfin, Harris, and Miller expressed a lack of confidence in the developer's ability to complete the project. Mayor Pro Tem Brausen said he would be happy with just having one apartment building built if it meant there would be affordable housing created. Councilmember Mavity indicated a desire to have the EDA take formal action on continuing the project with PLACE at the November 51h meeting. It was the consensus of the council to have the EDA vote on the fourth amendment at the November 511 meeting. Mr. Velasco thanked the council for considering the amendment and stated that PLACE has successfully been able to pull together financing for its previous projects and is confident it will be able to do so again with the Via project. Study session topic selection and prioritization Mr. Harmening noted staff has some ideas for a few changes related to study session agendas. He noted over time, the number of topics or initiatives that individual councilmembers have asked to be discussed at study sessions has grown significantly. Ms. Carrillo Perez discussed a recent survey taken by the council related to discussion topics, and pointed out several options for improving the topic prioritization process. Study Session Minutes -4- October 8, 2018 Mayor Pro Tem Brausen stated there are some topics that have higher priority than others. Councilmember Harris noted the council has made a commitment to the strategic plan, and topics should be related to those goals set in the plan. Ms. Carrillo Perez noted the following plan for consideration by the council: - Councilmembers can propose a new topic prior to the next study session - Topic ideas will be included in the agenda packet and discussed as part of future sessions - Majority of council members (at least 4) must concur with requests to add an item to list - No discussion or deliberation of item will take place during this time Mr. Harmening stated staff will develop a short template asking council to answer several questions to determine if a topic should be on study session agenda, and the level of priority. He added this could be tested for 6 months, and adjusted as needed. Councilmember Rog stated she liked the idea of time limited ideas, and a general understanding of the appropriate time to introduce something, including discussion of items that were considered by previous councils. Ms. Carrillo Perez added items can be evaluated, and reconsidered and then brought back at a later date. She noted also a "parking lot" can be created where topics can sit for a few months before being brought up again, at a later date. Councilmember Mavity stated she likes this process, adding it makes it easier for topics that are proposed, and can either go to council for discussion, or be left on the parking lot list, and then brought back or removed later. She added a form that can be copied and pasted would also be appreciated. Ms. Carrillo Perez noted there will be a focus on high, medium, low priorities as well. Councilmember Rog however stated she is not sure how a focus on high, medium, low would help in prioritization. Ms. Carrillo Perez stated it gives staff some direction on when to put items on the calendar, and is a better system than the 1-5 priority listing. Mr. Harmening stated the process will evolve, adding this new process will be fairer and can be changed at anytime. Councilmember Rog asked the councilmembers how important constituent input is to their own decision making process, and if that is a factor on moving an idea forward. Councilmember Harris stated it's typical for her, and she also uses a decision-making check list and reflects back on the community's commitment to the comprehensive plan. Study Session Minutes -5- October 8, 2018 Mayor Pro Tem Brausen stated he does not bring the ideas of only one constituent to the council for discussion. Councilmember Mavity stated there are more voices or interests than are typically communicated to councilmembers, and she tries to understand the total interests of her ward or the city. She added that neighborhood input matters, however, she does not always vote the way folks want her to, and pointed to her decision to vote for sidewalks in her ward, when many folks were against them. She noted now folks are very positive about the sidewalks in her ward. Councilmember Rog asked if community energy around a topic, or corporate sponsors matter in councilmembers decisions. Councilmember Hallfin noted he tries to give everyone an audience, either by phone call, or a meeting in person, and he wants to hear what folks have to say. He added in the end, he is always honest with his constituents, telling them if he doesn't think the council will move forward on an item, or if it might be better brought up in the future. It was the consensus of the city council to try this new system proposed by staff, and make adjustments or changes as needed. 4. Joint meeting of city council and school board Mr. Harmening noted the proposed agenda for the Monday, Oct 29th joint meeting of the city council and school board. He stated he, the mayor and superintendent met to discuss and decide on agenda topics, and noted there would be both written and discussion topics at the meeting. Councilmember Mavity stated the written reports discussion should be included at the end of the agenda. She added she needs some clarity around city issues that folks have said the school board supports. Councilmember Rog stated there is need for amore user-friendly, joint city school catalog of activities, so folks do not have to use multiple sources. Mr. Harmening stated he would bring this up at the April meeting. Councilmember Rog also noted the school safety and security issues brought up by students over the summer, adding this topic is relevant and should be included on the agenda also. Councilmember Mavity pointed out the diversity discussion should be a discussion about how, and not only about the numbers. Mr. Harmening stated it will be brainstorming about what the city and the schools should be doing to diversify our boards and commissions. It was the consensus of the city council to approve the agenda for the Monday, October 29th meeting between the city council and school board. Communications/Meeting Check -In (Verbal) Study Session Minutes -6- October 8, 2018 Mayor Pro Tem Brausen noted Hwy 7 work currently being conducted by MNDOT, and if a fence will be added to the south side of Knollwood in order to keep folks from crossing. Mr. Harmening stated he will check into this. Ms. Carrillo Perez updated the council on commission vacancies and that she will be sending out applications for the HRC vacancy. She stated there were 4 youth that applied for 2 positions on the HRC, and they are all very passionate about serving on the HRC. Ms. Carrillo Perez asked if the council would like to interview all 4 youth and make a decision. Councilmember Rog preferred that all 4 youth be automatically appointed to the committee. Ms. Carillo Perez reminded the council that the current bylaws for the HRC only provide for 2 youth members. Councilmember Mavity suggested the older youth be appointed, and the younger appointed next year. It was the consensus of the council not to conduct interviews, and to look at other options, with staff recommendation, for the 2 youth not appointed to the HRC. Written Reports provided and documented for recording purposes only: 6. Update on Purchase and Redevelopment Contract with SLP Park Ventures, LLC 7. 2019 Fee Schedule Councilmember Rog noted several items related to the written reports including: • Changing the $9.50 aquatic center entrance fee, so as to allow more equity, and more people access. • Renting the park building at a lesser amount than $75 per hour, when the ROC is rented for $30 per hour. She stated she does not understand how this reflects actual costs vs. goals. • Skate park rental at $200 per hour is also very high. • Body cam video footage fee of $20 or more. Mr. Harmening stated he will check on this item. Councilmember Rog also asked about the opportunity to secure more funds for the affordable housing trust fund by increasing the city's annual fees or take on additional funds on housing related fees, in order to raise more for the trust fund. Mr. Harmening stated the council needs to be mindful of keeping fees within the proper range however. Councilmember Mavity stated she supports all the items noted by Councilmember Rog, and asked about the recent lawsuit, and if the city can pose extraction fees, and if there is a law related to that. Mr. Harmening stated the council will discuss this further in November. Study Session Minutes -7- October 8, 2018 Councilmember Harris noted the fee schedule on car seat inspections and that many people thought this was a very valuable service. She asked if this and other services that cost a fee might be publicized more to the community, especially those that might be underutilized. The meeting adjourned at 9:15 p.m.