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City Council - 10/20/2020 - Workshop APPROVED WORKSHOP MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, OCTOBER 20, 2020 CITY CENTER 5:00 – 6:25 PM, HERITAGE ROOMS 6:30 – 7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Ron Case, Council Members Brad Aho, Kathy Nelson, Mark Freiberg, and PG Narayanan CITY STAFF: City Manager Rick Getschow, Police Chief Greg Weber, Fire Chief Scott Gerber, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Administrative Services/HR Director Alecia Rose, Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Katie O’Connor Workshop - Heritage Rooms I and II (5:30) I. STRATEGIC PLAN FOR HOUSING AND ECONOMIC DEVELOPMENT Jeremiah stated the Strategic Plan for Housing and Economic Development was originally adopted in 2005. There have been two updates and revisions. The last update was done early and the plan is now on even years from 2021-2025. The plan shows the prioritization and timing of projects. Funding is considered as well as who will be needed for collaboration. The current update was started in January 2020 with staff working sessions. After the workshop, staff will make final updates and revisions to the plan. The City Council will take action on the plan in January or February of 2021. Jeremiah provided an overview of the accomplishments from 2017 to 2020, the last strategic plan. Staff did a lot of business retention and expansion. The City received a grant to assist 73 businesses. The City also received a grant from Hennepin County to do Town Center pedestrian improvements. Over six million dollars from the Congestion Mitigation and Air Quality (CMAQ) grant assisted with Town Center Station. A lot of effort has gone into light rail transit (LRT) business communication. Taprooms and cocktail rooms such as Fat Pants Brewery and Flying Dutchman Spirits have come to fruition. 28 business meet and greets took place. Tennant Corporation phase 1 and the Southwest Station Commercial projects were completed. The Realtor’s Forum was well attended in 2019. Annual career fairs have taken place with the help of Eden Prairie Chamber of Commerce. Recently many lease amendments have taken place due to COVID-19. In the last four years, the City has conducted many industrial and commercial area studies such as Venture Lane Minnesota Department of Transportation (MnDOT) excess right-of-way property, Martin Drive, Flying Cloud Land Fill, Crosstown Industrial Area, vacant property off Glory Lane, and potential neighborhood retail sites in southwest Eden Prairie. Staff also looked at Special Service District and decided it would no longer be required of developers. Jeremiah stated there was a lot of progress made in regards to branding and wayfinding. New branding was created at West 70th Street for the Golden Triangle Area. The City entry City Council Workshop Minutes October 20, 2020 Page 2 monument sign program has two complete signs and one in progress at CSAH 5 and Dell Road. Singletree Lane improvements are being made to be more attractive to businesses. Aho inquired when the City anticipates all the entry monument signs to be completed. Jeremiah replied they are all budgeted within the next three years. Some of the signs require working out issues with MnDOT. Aho added he would like to consider doing the Realtor’s Forum annually in collaboration with the School District. Jeremiah added the School District has been a willing participant in the Realtor’s Forum. Getschow added Staff can reach out to the Realtor’s Association about an annual event since Realtor’s receive credit for going to the event. SouthWest Transit typically donates their services to the event as well. Nelson added it would be beneficial to host the Forum outside of the winter months. Getschow noted the Forum is typically held in May. Jeremiah provided an overview of housing accomplishments from 2017 to 2020. The City’s first sustainable neighborhood, Eden Gardens, was finished in 2017. Elevate at Southwest Station, Cascade addition, and Trail Pointe Ridge Apartments have been completed and they each have substantial affordability. The City was able to secure over $1.5 million in Livable Communities grant money to assist in the affordability. Sheldon Place Townhomes were also completed. In regards to senior living, Applewood Pointe Senior Cooperative at Smith Village is under construction and is already 90 percent purchased. Prairie Bluffs and Eden Prairie Senior Housing are both now open. Flagstone Senior Housing is under construction. Paravel Apartments has been negotiated and approved. All of these housing developments have inclusionary housing at no cost to the City, and tax increment financing (TIF) was used in some cases for additional units. Jeremiah stated the City distributed Federal Community Development Block Grant (CDBG) to assist with maintaining quality and fair housing. The City also established a fair housing process. CDBG funds and pooled TIF were utilized to help first time homebuyers at low and moderate income. The West Hennepin Affordable Housing Land Trust (WHAHLT) was also utilized to assist new homebuyers in the City. Onward Eden Prairie was also created. Stanley stated there is a lot of symmetry in the housing goals as there is in the Housing Task Force (HTF) Report. These goals include preserving affordable housing, such as naturally occurring affordable housing (NOAH), and protecting its tenants. Other goals include creating affordable housing opportunities, increasing homeownership opportunities, and supporting housing maintenance and quality of life improvements. Jeremiah stated the economic development goals remain fairly consistent. The goals focus on business retention and expansion, facilitating Transit-Oriented development (TOD) and Mixed Use development, fostering other economic development opportunities, supporting economic development marketing and communication, and assisting with Eden Prairie branding and wayfinding. The project descriptions in the Strategic Plan will outline the priorities and timing. Near term refers to the next two years, mid-term refers to the timing LRT opens, and long term is year 2025 and after. City Council Workshop Minutes October 20, 2020 Page 3 Aho inquired about the concept of hotel and retail at Eden Prairie Center. Jeremiah stated this could be located at the J.C. Penney site when it becomes available or repurposing some of the parking. Before Scheels took an interest in the Sears location it was considered then. Jeremiah stated Staff would like to do an inventory and action plan for NOAH properties in the near term. There may be minor costs associated, but they anticipate using CO-STAR data. The plan is to collaborate with housing non-profits to develop an action plan. Tenant rights could be accomplished through either a document or a protection ordinance. Aho asked if staff are looking at many ordinance changes for landlord requirements. Jeremiah stated the ordinance would be a Council policy decision. The HTF has strongly recommended the ordinance. Case added this prevents a new buyer from drastically increasing rent and forcing out tenants. Aho added sometimes cost is driven by additional requirements for landlords. Nelson noted landlords need to be made aware rental properties are required to be regularly inspected by the City. Narayanan added tenants should be able ask the City to help keep landlords responsible for maintaining living standards. Jeremiah added the property managers group is also available to help educate managers and owners. Jeremiah stated another goal is to create affordable housing opportunity. Applewood Pointe and Paravel Apartments are some examples. TOD housing opportunity sites include land assembly with the Montessori School, Eagle Ridge Partners property in the Golden Triangle, and infill housing on the City West office site. Freiberg clarified the land assembly would be the strip mall near the Montessori School. Jeremiah replied yes. Narayanan inquired if there are any condominiums in the City. Jeremiah replied there are not many. There are some next to the SouthWest Station. Additionally, there are some senior co-ops if there is an ownership interest. Jeremiah stated other opportunity sites for affordable housing include the Venture Lane parcel, Hennepin Townline Road south of Anderson Lakes Parkway, Flying Cloud Drive and College View Drive, the old carpet store site, one acre property currently owned by Prince’s estate on Aztec Drive, and possible church sites that could work for affordable housing infill. Freiberg inquired about Hennepin Technical College land and whether they would have interest in selling land. Jeremiah stated she has not heard of any interest. Case noted he would be interested to see the parcel. Freiberg noted Wooddale Church also has a lot of land not in use. Aho inquired about the Winter Park property. Jeremiah replied there have been no updates regarding the property. Jeremiah stated additional projects related to the Housing Task Force Report include an inclusionary housing policy. The policy would allow for a lot of flexibility for the developer to choose how to incorporate affordable units. Accessory dwelling units (ADUs) is a mid- term project requiring additional research. The Affordable Housing Trust Fund, a potential new financing tool, is another planned mid-term project. Homeownership opportunities remain fairly consistent with the first time homebuyers program and land trust partnerships. City Council Workshop Minutes October 20, 2020 Page 4 Freiberg inquired if staff would recommend an increase of funds for the First Time Homebuyers Program. Getschow noted the City has the finances to cover the requests through pooled TIF and other funds. Jeremiah stated the City would also develop their partnership with Habitat for Humanity to help with repairs and preventing foreclosure for low-income households, veterans, and seniors. Habitat for Humanity also has an Age Well at Home program to help bring together housing and health care services for seniors in their homes. The City will also continue with their Housing Rehabilitation Loan and Grant Programs as well as the Senior Home Maintenance and Improvement Programs. Aho inquired what type of grants. Jeremiah stated federal CDBG funds. There is a small amount of funds from the General Fund to help with the Elderly HOME program for low or no-cost basic repairs for seniors. Jeremiah stated some townhome and multifamily property tools include the Housing Improvement Areas (HIAs) and Housing Association Improvement Grants (HAIGs). HIAs helps them make necessary improvements and is paid through special assessments. If enough residents qualify for income requirements, HAIGs can be used with CDBG funds. The City will also continue with the Rental Inspection Program and the Property Manager Group. Jeremiah stated the new business retention and expansion efforts include the Mayor’s Entrepreneurial Initiative in the near term. This initiative works to improve the entrepreneurial culture; stimulate small business growth, innovation and job creation; and support alternatives to the traditional college degree job route. The Innovation Sandbox is the first project partnering with the Chamber of Commerce and One Million Cups. There will be continued efforts with the County through the Open to Business Program. Staff have been looking into co-work or collaborative business space in the City. Staff will continue to review and update financial strategies and incentives. Narayanan inquired whether Staff would create a proposal to increase funding for the Economic Development Fund. Getschow noted the fund is not used as grant money for businesses but rather incentive for a business to stay. Each business would be case by case. Narayanan inquired if this would apply to a new start up. Jeremiah stated it could. The initial vision was to utilize funds to keep companies. Aho inquired about Stratasys. Getschow stated their decision is on hold, similar to C.H. Robinson. Jeremiah stated the City continues to facilitate TOD opportunity sites. There is no specific timing for the sites. They continue to be ongoing. Facilitating Mixed-Use Development opportunity sites similarly remain ongoing. Some of those sites include Eden Prairie Center, Castle Ridge redevelopment, Fountain Place shopping center, and Martin Drive at Mitchell Road. Another way to support these projects is via infrastructure such as streetscape, pedestrian, and transit improvements. Aho noted SouthWest Transit is looking into ways to be the last mile connection from LRT. LRT and SouthWest Transit need to partner together to make the connection to the LRT successful. Jeremiah added long term plans are to create a north south roadway in town center to provide greater connections. Case stated he recalled obtaining the right-of-way from Costco for the north south roadway, but Emerson had no plans to give up right-of-way unless they sell their property. Jeremiah replied the City does have the Emerson easement, but there is a condition in regard to building. City Council Workshop Minutes October 20, 2020 Page 5 Jeremiah stated other projects to foster economic development opportunities include the Kabuki Site, the Vikings Training Facility, and a Tennant innovation center and development to the west of Tennant. The City continues to be interested in a full service hotel. A near term eco-innovation project on the former landfill site could provide an opportunity for economic development and sustainability. The industrial area on Crosstown could remain an older industrial hub or transform into a new business park. The area study of Southeast CSAH 4 and CSAH 5, the “Platinum Triangle”, could become more walkable for the community. Leasing activities in the City remain ongoing. Aho inquired about UNFI’s leasing plans. Getschow replied they plan to maintain leasing their current space. Jeremiah stated branding and wayfinding will continue with the City entry monument signs and bridge branding on CSAH 212 and Dell Road eastbound, the Shady Oak Road Bridge, and the Prairie Center Drive Bridge. There will also be branding of entry plazas in the near to mid-term at City West LRT Plaza and Town Center Place Entry Plaza. Other LRT station area improvements include working to secure funding for more public art and wayfinding signage. Golden Triangle branding phase two is a long term project to consider. Jeremiah stated the appendix to the Strategic Plan includes all the fund balances and project status updates. Open Podium - Council Chamber (6:30) II. OPEN PODIUM III. ADJOURNMENT