Loading...
HomeMy WebLinkAbout2018/10/22 - ADMIN - Minutes - City Council - Study Session/�FSt. Louis Park Official minutes MINNESOTA City council study session Experi6mc WfF- in iho Park- St. Louis Park, Minnesota October 22, 2018 The meeting convened at 6:30 p.m. Councilmembers present: Mayor Jake Spano, Tim Brausen, Steve Hallfin, Anne Mavity, Thom Miller, and Margaret Rog. Councilmember absent: Rachel Harris. Staff present: City Manager (Mr. Harmening), Chief Information Officer (Mr. Fires), Chief Financial Officer (Mr. Simon), Human Resources Director/Deputy City Manager (Ms. Deno), Director of Operations and Recreation (Ms. Walsh), Director of Community Development (Ms. Barton), Engineering Director (Ms. Heiser), Housing Supervisor (Ms. Schnitker), Assistant Housing Supervisor (Ms. Olson), Management Assistant (Ms. Carrillo Perez), and Recording Secretary (Ms. Pappas). Guest: Matt Mullins, Maxfield Research & Consulting. 1. Future study session agenda planning— November 5 & 13, 2018 Mr. Harmening presented the proposed Study Session agenda for November 5 and 13, 2018. He noted the meeting on November 51h will be at Hamilton House, after the council has a tour of the facility. Councilmember Mavity asked if there will be recommendations on affordable housing tools which will move forward or be adopted on the November 13th agenda. Ms. Schnitker stated yes, there will be more detail on some, and staff will ask if council still wants to explore them further. Mayor Spano asked if that discussion will involve regional strategies. Ms. Schnitker stated the housing group is many communities, working together on policies, but they are not looking for the state or region to adopt a policy per se. Mayor Spano asked if council can get a written report on funding within regional programs. 2. St. Louis Park comprehensive housing market study update Mr. Mullins, Maxfield Research & Consulting, presented an overview of the comprehensive housing market study results and responded to questions from the council. Mr. Mullins noted the study identifies a potential demand for approximately 3700 new housing units through 2030. He stated due to aging baby boomers over the next couple of decades, about 29% of total demand will be for age -restricted housing types, adding there is a strong demand for 2,700 rental and for -sale general occupancy units. Study Session Minutes -2- October 22, 2018 Mr. Mullins noted there is more demand than land available, which is a redevelopment issue. He also noted there is high senior demand, rental demand and an opportunity for for -sale condos as well, adding the single-family market will continue. Councilmember Miller asked how demand is determined. Mr. Mullins stated it's determined by household growth, household income, and how folks are aging through the cycle. Councilmember Miller asked how they determine which segments are more interested in renting vs. buying. Mr. Mullins stated it depends on interest rates, and with the tax law change, that favored rental developers, so there were not the same incentives to owning a home. He added people's tastes change, lifestyles change, and that is also a determining factor. He stated the city's assisted living has low vacancy rates compared to the rest of the metro, and suggested the city look at developing more townhomes, row homes and condos. He added the rental market is at peak now, with some overbuilding, but added St. Louis Park has stayed on track. Mr. Mullins noted St. Louis Park has the housing authority rental assistance programs, and other housing programs that many other cities do not have. Councilmember Mavity pointed out the need for more housing and more affordable housing, adding the city has some in the pipeline, but it needs more. She commented on the importance of a regional housing strategy, noting this is the only way to address density, scale, and affordability. She also pointed out conversations she had with several developers and how hard it is to attract families with children to rentals with three bedrooms. She stated the trend is toward smaller units and demand is high for that, so she questions if the three-bedroom approach for city development is accurate. Mr. Mullins agreed, stating almost all projects today are studios, alcoves, and 1- and 2 -bedroom units. Builders today are building for singles and couples. He added the challenge is 3 -bedroom units are more expensive, and there would be a need for affordable land to make it work. He stated the demand for 3 bedrooms is in the townhome market, more than apartments. Councilmember Rog stated there is an issue with only 8% of folks who work in St. Louis Park choosing to live in St. Louis Park. She asked if there are strategies to match those workers and their wages, and meet needs in the community. Ms. Schnitker stated this could be looked at, adding there are both commuters in and out of St. Louis Park, for jobs and living. Councilmember Rog stated in relation to the city's climate action plan, and making housing more affordable, it would be helpful to find out what wages are earned in jobs within the city, and then find out how to keep more folks living where they work. She stated this might include speaking to the companies and also asking them to make donations to the city's affordable housing trust fund. Councilmember Brausen stated people want to choose where they live themselves. Study Session Minutes -3- October 22, 2018 Councilmember Rog added the council will need to look at more opportunities for seniors to find affordable housing as well. Mr. Harmening pointed to the city's CO-OP project which helped seniors do this, but required units to be available for St. Louis Park residents first. Councilmember Mavity pointed to the changes Minneapolis is looking at in single-family zoning and building triplex units on single-family lots. She noted seniors could stay where they are and live in a triplex in the same location. Councilmember Mavity added these tools are available to add density and scale and allow people to stay in more affordable housing. She added they will need to also look at more creative housing models, noting cluster housing communities in Winona, which would open up more financing opportunities. Councilmember Miller stated he agreed as well and noted if Via Sol and Via Luna do not go forward, there may be opportunity for more creative housing in those areas, adding he agrees with long-term zoning and density changes. Councilmember Rog stated she would like to use this report as a directive for RFPs for land use and types of housing, in order to be more proactive. Mayor Spano thanked Mr. Mullins for the great report and good information, adding the council will need time to digest it. He asked what happens in cities that are letting the market decide. Mr. Mullins stated those cities really have no affordable housing in place, adding most cities today are guiding land use, and identifying sites. Councilmember Miller asked about condo ownership and if there will be a time when more apartment owners will change their properties over to condos, and if the city will potentially lose some NOAH housing then. Mr. Mullins explained there are many apartment owners adding amenities and updating properties, but many lenders have said owners cannot convert to ownership products. He added, however, if owners pay off their properties, they could make those changes and this could change things. Review of proposed 2019 CIP (Capital improvement Plan) and LRFMP (Long Range Financial Management Plan) Mr. Simon presented the report which covered the following items: • Overview of CIP • Overview of projects • Long Range Financial Management Plan • Strategies worksheet Each of the directors commented on their division's projects for 2019, and the 10 -year CIP, which is updated each year. Ms. Walsh noted park improvements for 2019 at the following locations: • Cedar Manor School • Sunshine Park Study Session Minutes -4- October 22, 2018 • Willow Park • Wolfe Park • Carpenter Park Ms. Heiser noted improvements on pavement, bikeways and Connect the Park for 2019: • Cedar Lake Road project • Pavement management project in area 7- Eliot view, Pennsylvania Park, and Willow Park neighborhoods, includes Connect the Park sidewalk and gaps • Bridge over the railroad tracks by Peter Hobart • Bikeways at Dakota and in Minnekada Vista • Alley projects • Historic Walker Lake street rehabilitation Mr. Pires noted technology improvements for 2019: • Software licensing and hardware replacements • Microsoft Office software including, and looking at moving all to the cloud with Office 365 • Body cam and dash cam project • US Internet and general fiber network extensions Mr. Simon noted facilities improvements for 2019: • Finish out solar panel project at the MSC • Replacing some 911 equipment in 2019, and remodel in dispatch area • Westwood Hills Nature Center project • Fire Station tech upgrades and equipment Mr. Simon added there will be renegotiation of agreements as well as new agreements related to franchise fees. Mr. Pires added staff will be developing a different method of using cable franchise fees as the FCC rules and technology continues to change. Councilmember Rog noted the smart house is a terrific idea, and could appeal to young home buyers looking for smart vs. large homes. She asked if this will be a model home. Ms. Barton stated the city may purchase an existing home and remodel it with energy efficiencies, and then use it for tours so folks are able to see how to make their homes more efficient. Then the home will be sold at an affordable price. Mayor Spano discussed the Housing Rehab long range plan. He noted there might be an opportunity to look at items that were underutilized in 2018 and either make sure they are used in 2019, or pare them down or use funding for other programs. He added if a program underperforms for 2-3 years that may be a trigger for staff. Ms. Barton agreed, stating staff does look at that and make changes. She also noted that staff considers prior year demands and fluctuations when determining future funding recommendations. Study Session Minutes -5- October 22, 2018 Councilmember Brausen pointed out a general levy might be more acceptable for items needing funding vs. utilizing franchise fees that all residents would pay, including folks on low incomes. Councilmember Rog asked staff if there is any sense of economic impact in terms of tax revenue yet or ROI at Walker Lake, and if staff is able to make any predictions yet, in terms of money coming into the city. Ms. Barton stated staff is hopeful everything done at Walker Lake will help to revitalize the area, and increase market values. Councilmember Hallfin asked if HRA monies can be used for this redevelopment. Mr. Harmening stated he would need to check with the city attorney, but he believes it is possible. Mr. Harmening noted in order to do everything the city is scheduled to do over the next few years, there will be a need for $1.50 increase in franchise fees for each utility. He stated staff will need direction from council on this to proceed. Councilmembers Brausen, Hallfin and Mavity, along with Mayor Spano all agreed to the $1.50 added franchise fee. Councilmember Rog stated she has concerns on increasing franchise fees, especially with the school levy also, adding she might agree to it if she better understood the impact on low- income folks and seniors first. Councilmember Miller added he feels overall financial planning has a gap here, we need to look at the big picture when it comes to the levy, fees, school levies, and overall expenses for city residents. Councilmember Miller stated he would like council to review, with the financial model, each time there is a need to make decisions such as this. Councilmember Hallfin stated these decisions are not made in a vacuum by council, noting it is all laid out by staff, with all the information in front of council. He noted council must make the tough decisions adding, however, if Councilmember Miller disagrees with the $1.50 increase, he does understand that. Ms. Deno stated staff would like a sense from council where they stand, so staff can continue with council directives which may include talking to the utilities regarding a rate increase. Councilmember Rog added in the future she would like big picture information more often, including modeling and long -view impacts. Mr. Harmening stated when the council looks at the budget on November 5, staff will present the model with more detail for clarification. He added this will be discussed again with council, and if we move ahead, there will be a public hearing on franchise fees in the future. Study Session Minutes -6- October 22, 2018 Councilmember Rog asked about funding through sponsorships or naming rights or state bonding. Mr. Harmening stated sponsorships have been looked at in the past by council, and staff was instructed not to pursue that. Councilmember Rog stated there is a different council now, so possibly there is room for discussion on this. Ms. Deno added some internal conversations are going on right now related to future possibilities of finding funding and sponsoring of some climate action plan items. She stated more information will come forward on this later. Councilmember Rog stated she is very interested in more conversation and ideas on outside funding sources. 4. Review draft of 2019 legislative issues and priorities Ms. Carrillo Perez presented several topics and ideas to the council and asked them for their feedback on the draft document. She said staff will come back to council after the November election with a final draft and then set up a meeting with legislators, depending on when the session starts. Councilmember Miller asked if the city will ask for a state match related to the local housing trust fund. Ms. Barton answered yes, they will be asked to fund it at the state level and then the city will match it in order to build the fund. Councilmember Miller asked if the city is also looking for state funding related to the TOD affordable housing fund. Ms. Barton stated yes. Councilmember Mavity asked about the TIF pooling under transportation as it relates to southwest light rail. Ms. Barton stated they will ask for the creation of new TIF districts around the light rail area within a half mile, and TOD trust state housing funds. Mayor Spano stated the 2019 document should be developed after the November mid-term elections. He noted the document should be a master with examples about not limiting local authority, and not creating pre-emption. Ms. Carrillo Perez noted the statewide data collection on race or ethnicity for stopped motorists, stating this is something the city supports. She stated Ms. Sojourner and Police Chief Harcey are on board with the language the city is using here. Councilmember Mavity stated Minneapolis has been gathering this data at traffic stops since 2015, adding she would like more information on how this is working there. Mr. Harmening stated staff will look into this and bring more information back to council. Councilmember Rog agreed with Councilmember Mavity, adding that some system on collecting this data is better than no system, and if officers are making biased decisions and Study Session Minutes -7- October 22, 2018 reporting, that seems to be the information the city would be looking for —which is the officer's perception of the race of the person being stopped. Councilmember Miller stated the biggest project the city will be working on is climate action, adding this will be a very large expense and bigger than a community center, and it would be helpful to go to the state for funding on this, and/or tying the city into a network related to climate action. Councilmember Brausen added he would also like to include the topic of food issues and gardens as it relates to the climate action plan. Ms. Barton noted Perspectives asked the city to sponsor a bonding bill for matching funds of $4 million, whereby the city would be involved in ownership of the property. Mr. Harmening added this money would have to go to a public entity, so St. Louis Park's name would be on the Perspectives project, and the city would then have some type of ownership stake on the property, but it would be at no cost to the city and Perspectives would take the lead on lobbying. Councilmember Brausen asked if there might be impact on future bonding funding with the state, if the city were to do this. Mr. Harmening stated there may be a conflict, and that would be a concern. Councilmember Mavity stated there may be concerns as it relates to funding of southwest light rail, and she would not want the city's lobbyist to spend time on this. Mayor Spano stated he likes the work Perspectives does, and it is not a huge drain on the city. Councilmember Rog stated she is hesitant on this, and is concerned about impacting other bonding requests the city might have, adding she does not understand the impacts or risks. She asked how Perspectives demonstrates their match. Ms. Barton explained the state would validate the match and administer it, along with the title company. She stated Perspectives would pay all costs as well. Councilmember Miller pointed out that STEP is also in need of funding, and provides much needed services in St. Louis Park. Councilmember Rog asked that the council include climate resiliency on the list to present to legislators. Mayor Spano noted more personal stories should be added into requests made to the legislators, as it would be helpful to find people willing to testify. The meeting adjourned at 10:00 p.m. Study Session Minutes -8- October 22, 2018 Written Reports provided and documented for recording purposes only: 6. 7. Draft Ordinance amending St. Louis Park City Code Chapter 10 related to the rules of conduct for municipal elections September 2018 monthly financial report Third quarter investment report (July -Sed Melissa K�,-nnedy, City Cl