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HomeMy WebLinkAbout2024-12-17 Work Session Meeting Packet Meeting location: Edina City Hall Community Room 4801 W. 50th St. Edina, MN City Council Work Session Meeting Agenda Tuesday, December 17, 2024 5:15 PM Accessibility Support: The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting. 1. Call to Order 2. Roll Call 3. Meeting Topics 3.1. 2025 Legislative Platforms - Review of Received Council Feedback 3.2. Zoning/Subdivision Ordinance Audit Report 4. Adjournment Page 1 of 89 d ITEM REPORT Date: December 17, 2024 Item Activity: Discussion Meeting: City Council Agenda Number: 3.1 Prepared By: Zoe Johnson, City Management Fellow, Ari Lenz, Assistant City Manager, Scott Neal, City Manager Item Type: Report & Recommendation Department: Administration Item Title: 2025 Legislative Platforms - Review of Received Council Feedback Action Requested: Discuss the feedback that was received from City Council members and come to a consensus on potential changes to both legislative platforms to finalize the platforms for Council's full adoption. Information/Background: The identification of state laws that might be changed to better achieve the goals of the City and the broader Edina community is something that occurs each year. In the same vein, as City staff work with colleagues and partners to identify these state laws, they also work to propose changes to said state laws that may be working contrary to City goals - ultimately limiting the livelihood and progress of the broader Edina community. While legislative sessions occur each year, changes to state laws can take years to occur. Issues are debated, modified, and could still be unsuccessful - this is why it is crucial to start the conversation early with the understanding that details will be fine-tuned throughout the legislative process. As the City continues to flush out the specifics within our 2025 State Legislative Platform, so do associations such as Municipal Legislative Commission (MLC), Metro Cities (Association of Metropolitan Municipalities), and the League of Minnesota Cities (LMC). Oftentimes, Edina's interests align with these associations both by virtue of the City's participation in each association as well as their guiding purpose. The City's 2025 State Legislative Platform does not duplicate items found in MLC, Metro Cities, or LMC platforms, but it does assume general alignment with these partner associations. As these associations finalize their platforms, staff will continue to address the need for small updates and/or major changes to maintain proper issue alignment. This staff report corresponds with the City's drafted 2025 State Legislative Platform, which addresses concerns that may be considered in the 2025 state legislative session, beginning January 14, 2025. The two types of items that make up the legislative platform are priorities and positions. Priorities are issues specific to Edina and do not directly affect other communities. Positions are issues affecting cities in general and are not specific to Edina. After today's work session, the next steps that will follow will include attaching association legislative platforms from MLC, Metro Cities, and LMC to our legislative platform, implementing any further changes from Council received at this evening's work session, and lastly, full adoption of both Federal and State Legislative Platforms. Resources/Financial Impacts: None. Relationship to City Policies: This relates to a variety of the City of Edina's strategic plans, including: Page 2 of 89 • City Code • Climate Action Plan • Capital Improvement Plans • Various department Work Plans Supporting Documentation: 1. Staff Report_Council Feedback on 2025 Legislative Platforms_20241217 2. DRAFT 2025 State Legislative Platform_20241217 work session 3. DRAFT 2025 Federal Legislative Platform_20241217 work session Page 3 of 89 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Staff Recommendation: If time allows, discuss the feedback that was received from City Council members and come to a consensus on potential changes to both legislative platforms to finalize the platforms for adoption on December 17, 2024. Platform Items and Received Feedback: Expansion of Local Sales Tax Spending Plan The City of Edina seeks local authority to spend revenue collected under its current voter-approved local sales tax for the full nineteen-year period for which it is authorized on capital improvements on parks & recreation projects that serve a regional population. Proposals to spend these funds will be submitted to voter approval during a regularly scheduled local election. This proposal does not increase the term of the sales tax beyond its current nineteen-year term. This proposal does not increase the rate of the current local sales tax. This proposal does not increase the scope of applicability of the current local sales tax. 1. State Platform (Priority 1) – Expansion of Local Sales Tax Spending Plan a. CM Jackson – Requested to remove. Concerns about what was communicated to voters. Funding Support for Entrepreneurs and Second-Stage Businesses The City of Edina is pursuing direct funding from the Minnesota Department of Employment and Economic Development and/or Veterans Affairs to support the Edina Chamber of Commerce and BIG/Edina Business Innovation Lab to support ongoing support of entrepreneurs and second-stage businesses. Supporting a three-to-five-year funding commitment at $200,000 annually would allow these organizations to serve more clients and pursue higher levels of economic growth. 2. State Platform (Priority 5) – Funding Support for Entrepreneurs and Second-Stage Businesses a. CM Jackson - Opposes this as worded. Feels that the City is in a place to endorse funding being directed to Edina Chamber of Commerce and BIG/Edina Business Innovation Lab but does not believe the City of Edina should ask for these funds for itself. Date:December 17, 2024 To:Mayor & City Council From:Zoe Johnson, City Management Fellow Ari Lenz, Assistant City Manager Scott Neal, City Manager Subject:Council Feedback on 2025 Legislative Platforms Page 4 of 89 City of Edina • 4801 W. 50th St. • Edina, MN 55424 Tax Increment Financing (TIF) Legislation for 70th and France and 72nd and France #2 The City approved the 70th and France and 72nd and France #2 TIF Districts in 2022 and 2023 respectively to encourage reinvestment and redevelopment of substandard commercial properties. After considerable discussion, the City also entered into TIF redevelopment agreements with each development team to provide TIF funding subject to project completion and delivery of proposed public benefits. The City requests an extension of the five-year rule to 10 years. In addition, the City requests the ability to extend the terms of each TIF agreement, subject to approval by Edina City Council. When these Districts were established, the developers were on pace to redevelop the sites with new commercial and multi-family housing buildings and the existing buildings were demolished. Since the Districts were established and the substandard buildings removed, the national economic climate has changed significantly. Costs of construction material and labor have increased. Interest rates have increased. The ability of private banks to finance office buildings has decreased. The availability of private equity has also decreased. This situation is forecasted to see a slow recovery beginning in 2025. Unfortunately, this pause in private financing hinders the ability of both redevelopment projects to succeed. The ‘five-year rule’ in Minnesota TIF statutes will likely disqualify these sites from the use of TIF at the level needed for success. Without the pledge of TIF to fill the financial gap, neither of these projects will reach their potential. The City requests an extension of the five-year rule to 10 years to allow the private lending sector to return to normal. In addition, the City requests the ability to extend the terms of each TIF agreement, subject to approval by Edina City Council. This would increase the 15-year term of the 70th and France District to 25 years and the 25-year term of the 72nd and France #2 District to 30 years. 3. State Platform (Priority 6) – Tax Increment Financing (TIF) Legislation for 70th and France and 72nd and France #2 a. CM Jackson - Does not support the extension of TIF districts to 25 years and 30 years. Data Practices and Personal Information The purpose of the Minnesota Government Data Practices Act (MGDPA) is to provide open and transparent information to the public, while protecting personal information from indiscriminate disclosure. The City supports mechanisms to define and regulate reasonable data requests, and charges that better reflect the actual costs of responding to data requests due to increases in data requests and increased staff time required for repetitive, broad and far-reaching requests. •Cities are experiencing increases in repetitive, overly broad, and far-reaching data requests. •These requests require significant staff time to locate government records, redact private data or data unrelated to the request, and assemble documents to be provided in order to comply with requirements to provide access to public government data. Page 5 of 89 City of Edina • 4801 W. 50th St. • Edina, MN 55424 4. State Platform (Position 1.8) – Data Practices and Personal Information a. CM Jackson - Feels this should be a top priority of the city. Change Group Home Regulation Licensed residential facilities do not have any distance separation requirements in single-family residential use zones in Edina. Minn. Stat. 245A.11 allows distance requirements of 1,320 feet between licensed residential facilities but limits the scope inequitably to cities in the first class. The City supports licensed residential facility use in the City and urges this distance separation requirements be applied fairly to all cities because: •Grouping multiple facilities on the same block in a single-family residential neighborhood creates substantial challenges to the neighborhood and reduces the community experience of individuals in the facilities. •Individuals no longer reap the benefit of enjoying a residential setting with a diversity of households. When entire blocks are acquired for licensed residential facilities, the setting is more similar to a large institutional campus. •Neighborhoods experience an increase in traffic, parking needs, deliveries, and other activities compounded by numerous facilities on the same block. •Grouping multiple facilities effectively turns a residential area into a commercial area. 5. State Platform (Position 1.10) – Change Group Home Regulation a. CM Jackson - Thinks that 1,320 feet is far too big a zone, and it should be 100 – 200 feet. Clarity on THC-Infused Products With the passage of Minn. Stat. 151.72 in July 2022, products containing THC are permitted for sale. The City seeks clarification on if retail liquor stores can sell THC-infused beverages because: •Without federal passage of the SAFE banking act, cannabis-related legitimate operations cannot generate proceeds from unlawful activity, and banking institutions can be penalized by federal authorities for providing services to a cannabis-related business. •Current regulation allows for retailers like Edina Liquor to accept credit card payments only if the percent of total revenue from THC products is less than 15%. 6. State Platform (Position 1.15) – Clarity on THC-Infused Products a. CM Jackson - Thinks this position should be moved from the state to the federal legislative platform. Repeal the State’s Ban on Bag Bans With the passage of Edina’s Carryout Bag Ordinance, the City took one step toward shifting consumer behavior away from disposable goods. However, establishing a legislative path to ban plastic bags – Page 6 of 89 City of Edina • 4801 W. 50th St. • Edina, MN 55424 produced by fossil fuels and source of microplastics – is an essential next step to materially reduce waste. 7. State Platform (Position 3.3) – Repeal the State’s Ban on Bag Bans a. CM Jackson - Doesn’t agree with this statement and feels that bag bans lead people to buy heavier plastic bags, defeating the goal of reducing fossil fuel use. Would like to remove this item. Potential New Positions/Priorities 8. State Platform – New Position/Priority a. CM Agnew - Can we have some language that takes a position on changing state legislation for New Construction Warranty, or the 1-2-10 Warranty, for promotion of more owner-occupied housing? b.STAFF ACTION: Assistant City Manager Lenz reached out to our state lobbyist, Katy Sen, who informed staff that Rep. Elkins had been looking into this issue for the 2025 session. i. This position/priority would likely be more akin to a broad vision statement to say something along the lines of “we support opportunities that promote affordable home ownership for residents,” or “we support removing regulations that limit residents’ potential for affordable home ownership” 9. State and/or Federal Platform – New Position/Priority a. Mayor Hovland - High Cost of Condominium Units, Insurance, Utilities, Staff and Association Fees i. Has received multiple messages from residents in Edina that are concerned for their ability to continue to afford their units as the quality of infrastructure and accountability with building owners and hired management continues to struggle and steadily decline b.STAFF RESPONSE: Community Development staff report this is a national issue that is compounded by a lack of accountability from condo staff and owners. Page 7 of 89 December 3, 2024 Mayor and City Council Scott H. Neal, City Manager Zoe Johnson, City Management Fellow DRAFT 2025 State Legislative Platform Priorities: The following seven priorities are made up of issues specific to Edina and do not directly affect other communities. 1 Expansion of Local Sales Tax Spending Plan The City of Edina seeks local authority to spend revenue collected under its current voter-approved local sales tax for the full nineteen-year period for which it is authorized on capital improvements on parks & recreation projects that serve a regional population. Proposals to spend these funds will be submitted to voter approval during a regularly scheduled local election. This proposal does not increase the term of the sales tax beyond its current nineteen-year term. This proposal does not increase the rate of the current local sales tax. This proposal does not increase the scope of applicability of the current local sales tax. 2 Bonding for Interchange Improvements at Minnesota Highway 100 and Vernon Avenue/West 50th Street The Minnesota Highway 100 interchange is non-standard with eight local road connections. The City partnered with Hennepin County to improve this interchange, helping to reduce construction impacts and cost. More importantly, the result will be a safer interchange for all users, by consolidating access points and increasing pedestrian paths and creating a more connected Grandview district. Edina’s share of the total project cost is estimated to be $15.47 million; the City is requesting $5.3 million from the state, to match the local funds allocated for the project. In addition, the City requests that the State designates the surplus land created by the project for expansion of the municipal campus including a much needed third fire station in northeast Edina. 3 Bonding for the Aquatic Center The Edina Aquatic Center is requesting state bonding to replace critical infrastructure in the facility’s pool pump house. Total cost for the project is $10.5 million. The pool house was originally constructed in 1958, Page 8 of 89 STAFF REPORT Page 2 and it needs replacement to accommodate changes in state code related to pumping apparatus, filter requirements and surge tank reservoirs to address swimmer capacity displacement. The Aquatic Center is a popular regional destination, with 75% of its annual visitors coming from outside of Edina, and an average of 850 to 1,000 visitors per day. Bonding would provide for a modern, code-compliant pool house, along with augmented pool amenities and patron areas to ensure a safe visitor experience. 4 Sales Tax Exemption for Projects in the Braemar Park Master Plan and Fred Richards Park Master Plan The City will use new local sales and use tax revenue to make improvements and expansions to Braemar Arena and Braemar Park and Fred Richards Park, as outlined in the Braemar Park Master Plan and Fred Richards Park Master Plan. The City will seek a sales tax exemption for the material and supplies purchased for the construction, reconstruction, upgrade, expansion, or remodeling of City facilities included in the Braemar Park Master Plan and the Fred Richards Park Master Plan. 5 Funding Support for Entrepreneurs and Second-Stage Businesses The City of Edina is pursuing direct funding from the Minnesota Department of Employment and Economic Development and/or Veterans Affairs to support the Edina Chamber of Commerce and BIG/Edina Business Innovation Lab to support ongoing support of entrepreneurs and second-stage businesses. Supporting a three-to-five-year funding commitment at $200,000 annually would allow these organizations to serve more clients and pursue higher levels of economic growth. 6 Tax Increment Financing (TIF) Legislation for 70th and France and 72nd and France #2 The City approved the 70th and France and 72nd and France #2 TIF Districts in 2022 and 2023 respectively to encourage reinvestment and redevelopment of substandard commercial properties. After considerable discussion, the City also entered into TIF redevelopment agreements with each development team to provide TIF funding subject to project completion and delivery of proposed public benefits. The City requests an extension of the five-year rule to 10 years. In addition, the City requests the ability to extend the terms of each TIF agreement, subject to approval by Edina City Council. When these Districts were established, the developers were on pace to redevelop the sites with new commercial and multi-family housing buildings and the existing buildings were demolished. Since the Districts were established and the substandard buildings removed, the national economic climate has changed significantly. Costs of construction material and labor have increased. Interest rates have increased. The ability of private banks to finance office buildings has decreased. The availability of private equity has also decreased. This situation is forecasted to see a slow recovery beginning in 2025. Unfortunately, this pause in private financing hinders the ability of both redevelopment projects to succeed. The ‘five-year rule’ in Minnesota TIF statutes will likely disqualify these sites from the use of TIF at the level needed for success. Without the pledge of TIF to fill the financial gap, neither of these projects will reach their potential. The City requests an extension of the five-year rule to 10 years to allow the private lending sector to return to normal. In addition, the City requests the ability to extend the terms of each TIF agreement, subject to approval by Edina City Council. This would increase the 15-year term of the 70th and France District to 25 years and the 25-year term of the 72nd and France #2 District to 30 years. Page 9 of 89 STAFF REPORT Page 3 7 Protect Municipal Employees with Enforcement Functions Many city employees and contractors are required to enforce administrative codes, rules, ordinances, and state laws as part of their job duties. Minnesota law recognizes the need to protect certain employees whose jobs make it more likely they will be the target of assaults by escalating assault charges from fifth to fourth degree for the assaults of peace officers, firefighters, school officials, and “public employees with mandated duties.” However, employees such as code enforcement officials, utility operators, municipal liquor store clerks and others have similar enforcement functions. The City supports extending the existing protection to all public employees whose jobs require them to enforce administrative codes, rules, ordinances, and state laws as a part of their job because: Due to the enforcement function of their jobs, these public employees can be and have been subject to verbal assaults, threats, and physical violence. This would more evenly apply the law to all employees more likely to become target of assaults. Positions: The following legislative positions are grouped into five categories: General Government (page 3-7), Affordable Housing (8-9), Environment and Sustainability (9-12), Transportation (12-13) and Public Safety (13-16). These positions represent issues which apply to Edina and other Minnesota cities. 1 GENERAL GOVERNMENT 1.1 Realign Motor Vehicle Lease Sales Tax Allocation In 2015, state legislation reallocated $32 million of the sales tax collected from leased vehicles from the State's general fund, half to Greater Minnesota and half to metro counties through the County State Aid Highway Fund. To balance funding for transit and roads/bridges, the new law excluded Hennepin and Ramsey Counties from receiving their share of funding. Instead, the other five metro counties split the proceeds generated in Hennepin and Ramsey Counties. With the elimination of the Counties Transit Improvement Board (CTIB) in 2017, all seven metro counties now collect their own local transportation sale tax, but the exemption still blocks Hennepin and Ramsey Counties. The City of Edina advocates for returning to the original intent by eliminating the exemption of Hennepin and Ramsey Counties and distributing the sales tax on lease vehicles, per the county state aid formula, to all metro counties. The City supports re-aligning the distribution because: •Distributing Hennepin and Ramsey County proceeds to the other five metro counties puts cities in Hennepin County at a disadvantage when it comes to accessing county funds for road and bridge projects. •This change would provide an estimated $10.7 million in additional funding to Hennepin County for roads and bridges. 1.2 Increase Purchasing Agency The City Manager is the chief purchasing agent of statutory Plan B cities. State law requires the City Manager to recommend purchases and contracts and requires additional approval by the City Council. There are only 18 Statutory Plan B Cities in MN. •In Edina, this approval is obtained through Requests for Purchase on the Consent agenda. Page 10 of 89 STAFF REPORT Page 4 •The $20,000 statutory threshold has not been raised since 2004. This does not account for standard inflation over the past 20 years. •The costs of items has significantly increased, most City purchases are well over $20,000. Allowing the City Manager a higher purchasing threshold can make purchasing more efficient, while still maintaining compliance and oversight of budget. •Neighboring charter cities with the Council-Manager form of Government, have significantly higher limits (St. Louis Park, Minnetonka, Richfield, Bloomington, Minneapolis, Hopkins) all have $175,000 thresholds. •The City of Edina supports a raise in legal maximum to at least $175,000 (consistent with MN Statute 471.345) with the ability for individual City Councils to set lower thresholds at their discretion. 1.3 Adult-Use Cannabis Legislation during the 2023 session legalized adult-use cannabis and established regulatory authority in the new Office of Cannabis management. The City supports further clarification on the opportunity to operate a municipal cannabis retail store because: •Local governments should have the option to establish municipal dispensaries in the model of municipal retail liquor stores, as both operations have primary goals of ensuring the safety and security of the community. •The City also seeks clarification on buffer distancing from “an attraction within a public park that is regularly used by minors, including a playground or athletic field”. The current language is confusing, hard to administer and opens municipalities up to lawsuits over interpretation. For instance, where would you calculate a buffer requirement for a baseball field with no back fencing? Standard parcel boundaries are easy to measure and allow easier mapping for potential cannabis retail operations. 1.4 Hearing Aid Affordability Currently, hearing aids are not classified as durable medical equipment (DME) and therefore not covered under many health insurance plans. Without health insurance coverage, many who need hearing aids are unable to get them, as they cost three to six thousand dollars. The City supports programs or policy changes reducing the cost of hearing aids and increasing access to them because: •Hearing aids are critical devices for those who are deaf or hard of hearing. •Without health insurance coverage, hearing aids are not affordable for those living on a fixed income. Both Edina seniors on a fixed income and youth who age out of hearing aid support cannot access hearing aids because of cost. •Cochlear implants, which cost $80,000 to $120,000, are typically covered by health insurance while hearing aids are not. 1.5 Allow Restrictions on Possession of Firearms in Municipal Facilities with School-Like Use The Minnesota Citizens Personal Protection Act, also known as “conceal-and carry,” prohibits guns on most school properties but forbids other local units of government from prohibiting loaded firearms on their properties. The inconsistencies in the law’s treatment of different kinds of properties have caused confusion about how the law applies to multi-use facilities, such as municipal ice arenas used for school-sponsored programs. While various public facilities can restrict firearm possession, including schools, public facilities with a school-like function are not granted this authority. The City has several facilities with school-like Page 11 of 89 STAFF REPORT Page 5 usage and a large population of school-aged users. The City supports clarifying the law to allow municipal facilities with school-like usage to restrict the possession of firearms inside their facilities because: •This would align the law with other facilities that are authorized to restrict possession. •This would be one step to securing the safety of those who use City facilities for a school-like function. 1.6 Remove Language in the State Constitution Allowing for Enslavement of Incarcerated People The Minnesota Constitution states that “There shall be neither slavery nor involuntary servitude in the state otherwise than as punishment for a crime of which the party has been convicted.” The City urges removal of this language because: •This is immoral and out of step with Minnesota values. As a public entity, it’s incumbent on public officials to hold the state accountable to remove this language and its consequences. •There is recent precedent for such an action, with Colorado, Nebraska, Utah, Alabama, Oregon, Tennessee, and Vermont striking similar language from their constitutions. 1.7 Empower Unbanked Minnesotans to Participate in the Local Economy The City of Edina would support legislation that requires certain businesses, such as food stores, to accept cash payments, similar to bill SF4419 introduced in the 93rd legislative session. With the increase in businesses refusing to accept cash for payment in recent years, more unbanked Minnesotans are prevented from participating in the local economy or purchasing necessities such as groceries and hygiene products. 1.8 Data Practices and Personal Information The purpose of the Minnesota Government Data Practices Act (MGDPA) is to provide open and transparent information to the public, while protecting personal information from indiscriminate disclosure. The City supports mechanisms to define and regulate reasonable data requests, and charges that better reflect the actual costs of responding to data requests due to increases in data requests and increased staff time required for repetitive, broad and far-reaching requests. •Cities are experiencing increases in repetitive, overly broad, and far-reaching data requests. •These requests require significant staff time to locate government records, redact private data or data unrelated to the request, and assemble documents to be provided in order to comply with requirements to provide access to public government data. 1.9 Various Election Administration Support The City supports greater resources to assist in various aspects of election administration in local governments. •Supporting accessibility to voters who face barriers to voting. •Supporting technical/administrative improvements – some changes to timeline for campaign finance and procedure changes to the permanent absentee voting list. •Modernizing election judge responsibilities – allowing staff to perform signature matches for absentee ballots, language about emergency appointment of election judges for healthcare facilities. •Supporting RCV standards and equipment. •Supporting funding for elections through reimbursements from the state. Page 12 of 89 STAFF REPORT Page 6 •Supporting policies that protect and strengthen the security and safety of elections. 1.10 Change Group Home Regulation Licensed residential facilities do not have any distance separation requirements in single-family residential use zones in Edina. Minn. Stat. 245A.11 allows distance requirements of 1,320 feet between licensed residential facilities but limits the scope inequitably to cities in the first class. The City supports licensed residential facility use in the City and urges this distance separation requirements be applied fairly to all cities because: •Grouping multiple facilities on the same block in a single-family residential neighborhood creates substantial challenges to the neighborhood and reduces the community experience of individuals in the facilities. •Individuals no longer reap the benefit of enjoying a residential setting with a diversity of households. When entire blocks are acquired for licensed residential facilities, the setting is more similar to a large institutional campus. •Neighborhoods experience an increase in traffic, parking needs, deliveries, and other activities compounded by numerous facilities on the same block. •Grouping multiple facilities effectively turns a residential area into a commercial area. 1.11 Expansion for Collection of Park Dedication and Parks Dedication Fees The City of Edina supports an expansion to cities’ abilities to collect park dedication feeds related to the creation of new housing units. The existing city authority should be preserved by the legislature to maintain an ability to require parkland dedication and park dedication fees. The City supports an amendment to Minnesota statute 462.358 to allow all cities the option to require a reasonable portion of land or park dedication fee on new housing units and new commercial and industrial development without the requirement that land be subdivided. Municipal Liquor Positions 1.11-1.15 relate to municipal liquor. The City has operated a municipal liquor store since it was established by local referendum in 1948. The liquor operation generates over $1 million annually in profit. These profits fund Edina’s recreational facilities, including the ice arena, art center and aquatic center, allowing the City to reduce user fees and allow greater access. The City’s recreation programs serve children and families from all over the metro area, not just Edina. Continual support of liquor stores and their ability to generate profit allows municipal liquor stores to benefit the community and region through local programs and amenities. 1.12 Reinforce the Open Wholesaling Systems through Legislation In 2021, Miami-based Southern Glazer's Wine and Spirits filed a lawsuit against the State of Minnesota seeking elimination of a Minnesota law called the Coleman Act, which contains the open wholesaling system of spirits distribution. Open wholesaling of spirits requires that all spirit brands (with some exceptions) be available for sale to all licensed Minnesota wholesalers. This encourages healthy competition among wholesalers benefiting both sellers and customers. If Southern Glazer's lawsuit is successful, more than half of the spirit brands in Minnesota may become exclusive with Southern Glazer's. The City opposes this lawsuit and supports an amendment of the Coleman Act to reinforce a system of open wholesaling because without protections for open wholesaling: •Wholesale prices will increase. Page 13 of 89 STAFF REPORT Page 7 •Service levels on certain brands will decrease. •Purchase and delivery schedules will be reduced. •Sale margins will be compressed. 1.13 Oppose Further Changes to Tap Room Retail Operations Due to changes during the COVID-19 pandemic, tap rooms can offer limited direct-to-customer sales via carryout. These sales are controlled by quantity, and the product must use different packaging than the product supplied wholesale to liquor stores. The City opposes further changes to tap room retail operations because changes could allow bulk or exclusive sale from tap rooms jeopardizing the State of MN three- tiered system. 1.14 Protect Customer Data As a municipal operation, municipal liquor stores may be subject to data practices requests. The City supports protections for customer data because: •Customer data subject to request could include purchase history and personally identifying information. •The threat of data requests erodes trust with the customer. •It may put municipal liquor stores at a competitive disadvantage. •The City’s municipal liquor operation discontinued its customer rewards program, because without clarity of what information is subject to a data request, the City would not hold personally identifying information and purchase history that could be subject to a data request. 1.15 Clarity on THC-Infused Products With the passage of Minn. Stat. 151.72 in July 2022, products containing THC are permitted for sale. The City seeks clarification on if retail liquor stores can sell THC-infused beverages because: •Without federal passage of the SAFE banking act, cannabis-related legitimate operations cannot generate proceeds from unlawful activity, and banking institutions can be penalized by federal authorities for providing services to a cannabis-related business. •Current regulation allows for retailers like Edina Liquor to accept credit card payments only if the percent of total revenue from THC products is less than 15%. 1.16 Maintain Constraints on Off-Sale Liquor Currently, grocery and convenience stores can sell 3.2% alcohol, while all other alcohol products are sold at liquor stores. Some grocery stores opt to apply for an off-sale liquor license and can sell beer, wine and liquor at the store, with some adjustments, including a separate entrance. The City of Edina supports maintaining the constraints on off-sale liquor because: •The constraints allow for smaller private and municipal liquor stores to compete on an even playing field. •Claims that the off-sale liquor license process inhibits growth are rebutted by several grocery stores opting for some locations applying for the off-sale liquor license. Page 14 of 89 STAFF REPORT Page 8 2 AFFORDABLE HOUSING Affordable housing includes two focuses: regulatory tools for affordable housing (2.1, 2.2, 2.3), protecting low- and moderate-income tenants (2.4, 2.5). 2.1 Reduce the Tax Rate on Land Trust Properties to Align with the 4d Property Tax Classification Previous legislative sessions made changes to the tax classification of Community Land Trust properties by reducing the tax rate for the 1a – Residential Homestead classification, from an up to 1.25% rate to 0.75%. The City supports a change to align with the 4d property tax classification, which is applied to low-income rental properties at up to a 0.25% rate because: •Homeowners lease, and do not own, the land from the Land Trust. •The property is required to be affordable as memorialized through the ground lease. •The Land Trust is designed to create affordable home ownership opportunities, but requiring the homeowner to pay property taxes on the value of the house and the land at the single-family homestead rate makes homes less affordable. •Due to both leasing the land and the requirement that it stay affordable, 4d is a more appropriate tax classification than 1a. •Edina has 26 land trust residential properties, with property values in the city rapidly increasing. High property values and corresponding taxes impact the ability of land trust homeowners to remain in their home. 2.2 Protection of and Taxation for Housing Purchased by Corporations for Renting The City supports legislation that authorizes a tax on the sale of these properties to corporations and protections prohibiting the conversion of single-family residences into rental properties by developers and corporations. The City supports bills introduced in the 92nd legislature: SF 3147, imposing the tax, and SF 4313, prohibiting the conversion, because: •The City and surrounding communities have seen an increase in the number of residences converted from single family homes owned by the residents to rental properties. •Such conversion negatively impacts ownership opportunities for residents. 2.3 Support for “Missing Middle” Legislation with Local Controls While the “missing middle” housing bill in the 93rd Legislature (HF4009/SF3964) was tabled, the City would look favorably on legislation that similarly encourages and incentivizes “missing middle” housing and strategic land use adjustments, provided it has more flexibility for local control options. The City supports strategic gentle density because: •The City’s Climate Action Plan has goals for reducing vehicle miles traveled (VMT) 7 percent and doubling public transit commuter ridership by 2030, both of which are only possible in a more walkable, bikeable, and transit-friendly Edina. •Diversifying housing stock by providing options such as accessory dwelling units (ADUs) and duplexes allows communities like Edina to maintain their suburban character while allowing more residents to age in place, downsize, purchase starter homes, raise their families where they themselves grew up, and more while remaining affordable. •Increasing the City’s population broadens the tax base, keeping individual household taxes low while maintaining high levels of municipal services. Page 15 of 89 STAFF REPORT Page 9 2.4 Discrimination Protections for Source of Income The City of Edina supports legislation amending the Minnesota Human Rights Act (specifically § 363A.09 Unfair Discriminatory Practices Relating to Real Property) to protect Minnesotans from being denied housing based on their source of income because: •The purpose of making housing discrimination based on a person’s source of income illegal is to increase housing choices for Minnesotans who utilize housing assistance such as emergency rental assistance or housing choice vouchers (also known as “Section 8”). •With the majority of Minnesotans who use federal housing choice vouchers being BIPOC, the denial of housing based on source of income widens racial disparities, preventing housing stability and exacerbating poverty and homelessness. Housing assistance is guaranteed income for landlords, providing them with more stable rental funds. 2.5 Reform Eviction Expungement Records of unlawful detainer filings, or eviction lawsuits, remain on a tenant’s public record regardless of whether the matter was settled or dismissed prior to the court hearing or if the tenant prevails at the hearing. The City supports legislation expanding the eligibility for discretionary and mandatory expungements for eviction case court files because: •In these cases, the eviction record is not a reasonable predictor of future tenant behavior and should be expunged. •The existence of this record impedes the ability of the renter to secure suitable rental housing in the future. 3 ENVIRONMENT AND SUSTAINABILITY Environment and sustainability has five thematic focuses: energy management and environment (3.1, 3.2, 3.3), right to repair (3.4, 3.5, 3.6, 3.7, 3.8), sustainable transportation (3.10, 3.11, 3.12), local environmental public health programs (3.12) and water resource management (3.13, 3.14) 3.1 Establish Building Performance Standards Large commercial buildings are a significant contributor to Minnesota’s and Edina’s greenhouse gas emissions. Building energy benchmarking is already in use, requiring building owners to report energy use but includes no requirement for improving their building’s energy efficiency. The City supports establishing building performance standards that: •Create greenhouse gas emission reduction and energy performance targets, a timeline to meet them, and resources to help building owners comply. 3.2 Establish a Right to Cooling Standard for Minnesotans In 2023, the Legislature passed a right to heating law for renters, to ensure renters have safe and functional homes. The City supports establishing a similar right to cooling, coupled with increased resources for the Energy Assistance Program (EAP) that provides utility bill relief and Weatherization Assistance Program (WAP) that supports air sealing and insulation upgrades. Resources should include the ability to accept applications year-round and without a cap on annual service recipients. The City supports this because: •Minnesota is warming rapidly. •Excessive heat has well-documented health consequences, including serious illness and death. Page 16 of 89 STAFF REPORT Page 10 •Renters require additional protections to ensure landlords provide a safe and functional home. 3.3 Repeal the State’s Ban on Bag Bans With the passage of Edina’s Carryout Bag Ordinance, the City took one step toward shifting consumer behavior away from disposable goods. However, establishing a legislative path to ban plastic bags – produced by fossil fuels and source of microplastics – is an essential next step to materially reduce waste. 3.4 Allocate I 00% of State Revenue from the Solid Waste Management Tax (SCORE) to County Waste Management Activities Currently, the City is awarded a portion of the SCORE funds annually for residential recycling, residential organics recycling and participation in both at the multi-family building level. The City strives to spend 100% of the funds on allowable purposes. The City supports continued SCORE funding because: •The funds advance waste reduction, reuse, recycling and organics programs to meet city, county and state recycling goals. •SCORE funding allows the City to conduct critical outreach. 3.5 Support Efforts for the Proper Labeling of Compostable Products The City supports promoting only vetted manufactures because: •Working with only vetted manufactures reduces the likelihood of products with misleading claims to be sold or distributed in Minnesota. •It reduces City contamination in the recycling process. •It simplifies education on which certifications customers can look for. 3.6 Fund Expanded Infrastructure at the Local Level for the Creation of Compost Processing Sites and Anaerobic Digesters The City supports additional funding for counties creating compost processing sites and anaerobic digesters because: •Landfilling all waste in Hennepin County and metropolitan area is no longer a viable option. •Compost processing sites and anaerobic digesters provide more options for waste haulers. 3.7 Develop and Fund Zero-Waste Initiatives Zero-waste initiatives manage all discarded materials to their highest and best use according to the waste management hierarchy set forth in the Waste Management Act. The City supports the development of zero- waste initiatives because: •They will aid local governments reaching recycling and composting goals. •The City’s waste reduction goals mirror those set by the state, county and Edina’s climate action plans. 3.8 Expand Right to Repair Law The Digital Fair Repair Act that went into effect on July 1, 2024, is instrumental to reducing waste and encouraging reuse in Minnesota by furthering the life of consumer products. To further the success of the new law, the right to repair measures should be expanded to include previously excluded equipment such as farm equipment and wheelchairs (similar to Colorado’s law) and vehicles (such as in Massachusetts). Page 17 of 89 STAFF REPORT Page 11 Expanding on the right-to-repair to include more than just electronics would improve this new law to be even more equitable for a wider range of Minnesotans. 3.9 Increase Funding for the State E-bike Rebate Program In 2023, the State appropriated $2 million for a new e-bike rebate program. Expecting that eligible participants will each receive an average of $1,000, this is only 2,000 new e-bikes on the road. The City supports continuing and increasing this fund because: •2024 program demonstrated a high demand for assistance. •More low-income residents will be able to access new and climate friendly transportation. •E-bikes are associated with positive health benefits and increased mobility. 3.10 Establish State Funding to Support Expanded Carshare Networks in the Twin Cities and Minnesota Xcel Energy pulled private funding from HOURCAR in 2023, the nonprofit electric carshare service in Minneapolis and Saint Paul. The City supports an expanded network and has studied resident support via a partnership with the University of Minnesota’s Resilient Communities Project in 2022-23. The City supports this because: •Carshares are a viable alternative to owning a personal vehicle. •Carshares have a demonstrated history of reducing vehicle miles traveled. 3.11 Continue Support for Local Environmental Health Regulatory Programs Currently, the State delegates authority to operate food, pool and lodging establishment regulatory programs to cities and counties. The City supports continuing local operation of these public health services and programs, because: •It allows cities to provide services to meet local needs. 3.12 Support Funding Research, Training, and Legislation for Applicators of Chloride- Containing De-icing Chemicals Salt is a pollutant and causes damage to infrastructure and the environment. Private contractors tend to over-apply salt on parking lots and sidewalks, often because they are afraid of “slip-and-fall” lawsuits. The City supports state funding for research and training for public and private applicators of chloride-containing de-icing chemicals, and legislation to address liability concerns of private de-icing salt applicators because: •Waterbodies throughout the state, including within and downstream of Edina, fail to meet the water quality standards for chloride (salt) established by the state and so have been added to the federal register of impaired waters as required by the Clean Water Act. •The legislation, which is modeled on a similar law passed in New Hampshire, would incentivize contractors to attend training, get certified, and document their practices, reducing the over- application of salt. 3.13 Support for Truth in Labeling of Chloride- Containing De-icing Chemicals Truth in labeling can help consumers by providing access to accurate and comprehensive information regarding the composition, environmental impact, risks to infrastructure damage, and exposure risk to pets. Current labeling practices falsely claim or imply chloride containing products are environmentally safe and/or Page 18 of 89 STAFF REPORT Page 12 pet safe. Truth labeling would empower individuals to select the appropriate material for the job and reduce overapplication. 3.14 Support Reduction of Chloride Pollution from Wastewater Effluent Chloride pollution in wastewater effluent comes primarily from water softening processes. Reducing chloride in wastewater effluent is important for meeting clean water goals in downstream waterbodies. Wastewater generated locally is treated at the regional wastewater treatment plant before discharging to the Mississippi River. Reducing chloride pollution in wastewater will benefit downstream aquatic ecosystems, protect drinking water sources, and extend the lifespan of water infrastructure. 3.15 Inflow and Infiltration (I/I) Municipal Grant Program Inflow and infiltration (I/I) describe the ways that groundwater and stormwater make its way into sanitary sewer pipes and gets treated, unnecessarily, at regional wastewater plants. The Metropolitan Council identifies cities contributing excessive I/I into the regional wastewater system and charges the city for the excess. The City supports state financial assistance to cities for metro area I/I mitigation, such as the Municipal State Bond Grant Program because: •I/I mitigation supports efficient use of the regional system for waste treatment. •I/I mitigation slows the need for capacity upgrades. 4 TRANSPORTATION 4.1 Continue and Increase Municipal State Aid (MSA) Funding The City has 40.85 miles of roads designated as MSA. This state funding is vital to maintain these high-quality connections. The City asks for continued support of municipal state aid funding because: •The state aid road system was developed to provide vital, high-quality connections necessary for the overall state highway network to work well. •The roads that are on the state aid system typically carry heavier traffic volumes, connect major points of interest and provide an integrated and coordinated road system. 4.2 Municipal State Aid (MSA) Cost Participation The City supports malleability in, or exemption from, cost participation policies, especially for cities with a disproportionate amount of state or county highways within and encircling their local boundaries. Special or additional funding from the state legislative for cities that have these burdens of additional cost participation in projects involving state and county roads including the placement of underground utilities due to those projects should be supported. 4.3 Increase Local Bridge Replacement Program (LBRP) Funding The Local Bridge Replacement Program provides local agencies funding for the reconstruction, rehabilitation or removal of bridges or structures. The program is financed by the passage of specific legislation allocating general obligation state bond funds, but regularly does not receive enough funding. The City supports funding dedicated to the Local Bridge Replacement Program to provide safe bridges because: •The City has 27 local bridges. Page 19 of 89 STAFF REPORT Page 13 4.4 Expansion of Public Transportation Frequency and Reach Edina, like much of the Metro area, continues to experience a persistent reduction in transit service frequency and reach as a result of pandemic-era service reductions and workforce shortages. The City supports additional funding to return transit service to pre-pandemic levels, support operator hiring initiatives, and develop a connecting bus study for the METRO Green Line Extension (Southwest LRT) because: •The City’s transit ridership prior to the pandemic was about half the average rate of Hennepin County. •Adequate public transit offerings are essential to doubling public transit ridership to seven percent by 2030 to reach our Climate Action Plan goals. Adequate public transit offerings are essential to meeting the City’s climate action goals. •Transit service supports many community and regional goals, including improving mobility, relieving traffic congestion, reducing greenhouse gas (GHG) emissions and promoting sustainable development and growth. 4.5 Support Tools and Strategies to Reduce Vehicle Miles Traveled Transportation emissions account for 40% of Edina’s baseline greenhouse gas emissions and are projected to become the leading emissions source in Edina as the energy sector decarbonizes. The City supports funding to provide alternative transportation infrastructure to decrease the use of single-occupancy vehicles and their associated negative impacts on air quality, traffic congestion and quality of life because: •Total vehicle miles traveled (VMT) in Edina in 2021 was more than 500 million miles, an increase from past years. •The City’s Climate Action Plan identified a goal to reduce VMT by seven percent by 2030. •Decreasing commuters driving alone by six percent to match the county-wide average would decrease VMT by up to 10 million miles. 5 PUBLIC SAFETY 5.1 Emergency Medical Services (EMS) Local Control In February 2022, the Office of the Legislative Auditor (OLA) released a report that found serious deficiencies with both the management of the Emergency Medical Service Regulatory Board and the current ambulance service license process. During the 2023 legislative session, the Minnesota Fire Association Coalition introduced legislation, HF2736 and SF2691, to implement the recommendations of the OLA relating to the primary service areas. The City supports this legislation because: •Local governments should be able to set standards for EMS service in their communities. •Local governments should have the authority to find an EMS provider than can meet local standards. 5.2 Residential Fire Sprinklers There are few statutory requirements for residential fire sprinklers. The City opposes efforts to statutorily limit the use of residential fire sprinklers and supports the inclusion of professionals and industry experts in the creating or writing of any code parameters, particularly the installation of fire suppression systems in residential building code, because: •Sprinklers protect occupants, firefighters and property from fires. Page 20 of 89 STAFF REPORT Page 14 •Recent Minnesota studies show the cost of installing residential fire sprinkler systems averages $1.15 per sprinklered square foot, or approximately one percent of new home construction. 5.3 Support Funding for Auto Theft and Violent Crime Investigation The City supports the creation and funding of a multijurisdictional group of law enforcement officials focusing on investigations and prevention because auto theft and violent crimes committed in stolen vehicles have dramatically increased. The City would also support funding for stronger juvenile justice resources, such as building metropolitan area facilities that will house juvenile offenders, as these facilities could include both detention and supportive resources, such as mental health evaluations and care, educational, vocational and life skills training, mentorship and community reentry programs, etc. 5.4 Support Funding and Programming for Recruitment and Retention Needs The City supports a variety of funded recruitment and retention programs for law enforcement agencies. Programs include creating a state funded grant program for bonuses, renewing part-time officer licenses for small agencies, paid health care for licensed police officers who retire at 55 after 10 consecutive years of service with a Minnesota city, deferred retirement option programs, county or tribal government and scholarship programs with higher education partners. The City supports these state funded programs because: •Agencies of all sizes are having trouble recruiting and retaining officers. •Out-of-state agencies are recruiting Minnesota officers away from the state through reciprocity tests and other minimal out-of-state requirements. •Deferred retirement option programs in particular would help stabilize the workforce. 5.5 Fund additional K-12 Threat Assessments The City supports legislation which would require school districts to study and address general and specific school safety issues because: •Previous funding, including the grants passed by the Legislature in 2018, only provided for infrastructure improvements. •Further assessment of school safety issues, beyond physical infrastructure, is needed. 5.6 Increase Penalty for Fleeing in a Motor Vehicle and Allow Use of Mobile Tracking Devices Currently, the penalty for an offender fleeing is relatively low and using tracking devices on stolen vehicles is only allowed with owner consent or a search warrant. The City supports increasing the penalty for fleeing and allowing officers to use mobile tracking devices on fleeing vehicles under specific circumstances. The City supports this because: •The number of offenders who flee police officers has increased as police departments shift away from pursuing due to the high level of risk to the community. It is well known that police will often not pursue, due to the risk. •Increasing the penalty more appropriately captures the risk to the community when an offender flees. •Allowing officers to use mobile tracking devices when an officer has reason to believe a vehicle is stolen or the driver has committed a crime reduces the need to pursue many offenders, allowing for both safer streets and the ability to safely locate offenders. Page 21 of 89 STAFF REPORT Page 15 5.7 Revise School Resource Officer Legislation In 2023, the 93rd Legislature changed the reasonable force standards by which school resource officers act in schools. The City supports the following amendments to legislation: Minnesota Statute 121A.582, Subd. 1(b): Subd. 1 (b) expand the definition of when “reasonable force” may be used by amending the language as follows: “to restrain a student and or prevent bodily harm or death to the student or another.” Subd. 1 (b) clarify that use of reasonable force by a school resource officer or police officer contracted with a district is regulated by Minnesota Statute 609.06. Minnesota Statute 121A.58: Subd. 2 (a) AND Subd. 2 (b): Remove “school resource officer” and “police officer contracted with the district” from roles covered by this subdivision. Add a section that makes the exclusion of “school resource officers” and “police officers contracted with a district” from the definition of “agents” or “employees” of a school district explicit. The City supports these amendments because: •The current legislation has competing interpretations, some allowing for restraint and some banning it except in the most extreme cases, and potentially creating different reasonable force standards for school resource officers and police officers. •School resource officer programs can benefit students, officers, and communities through positive interactions. The current legal confusion caused many partnerships between schools and police departments to be put on pause, absent clear direction. 5.8 Transparent and Holistic Brady/Giglio Legislation The subject of Brady/Giglio received statewide attention in the 2024 legislative session by bills introduced by the Hennepin County Attorney’s Office allowing access to all private data on police officers. Additionally, several bills were introduced by legislators to have a statewide Brady standard for police officers, county attorneys, and the judiciary to follow. The City of Edina asserts that any proposed bill must include a statutory definition of Brady material, due process for an officer or police agency to contest a county attorney’s designation of Brady material, requirement to maintain any kind of Brady data on officers and who can access the data, CJIS security compliance of data, and uniformity of protective court orders involving Brady material. The Minnesota Chiefs-Police Association (MCPA) has supported legislation for numerous years through the Officer Integrity Act allowing for a Minnesota Licensed Peace Officer to be terminated from public employment without opportunity to challenge the remedy of termination should the basis for termination be willful or intentional dishonestly, deception, or similar unethical or illegal conduct that is deemed sufficient to imperil their credibility in court testimony. The City of Edina does not support limiting an officer’s due process right to arbitration. A well-developed and transparent Brady/Giglio process will provide confidence and legitimacy for all participants in the criminal justice process and the public as other states have enacted (examples: Colorado and Iowa). 5.9 Support for First Responder Buffer Zone Protection The City supports legislation that would assist officers making arrests in difficult situations. This legislation would make it illegal to approach within 25 feet of a working first responder after being asked or ordered to Page 22 of 89 STAFF REPORT Page 16 back up. Similar legislation was passed earlier this year in Louisiana and Florida. The ultimate goal is to help keep our first responders safe while working. Those first responders could be law enforcement officers, correctional probation officers, firefighters, and/or emergency medical care providers. Page 23 of 89 STAFF REPORT Page 17 City of Edina Staff Contact Information Priorities Scott Neal, City Manager, can be contacted regarding any of the legislative priorities, in addition to the staff below. He can be reached at SNeal@EdinaMN.gov or 952-826-0401. 1 Expansion of Local Sales Tax Spending Plan Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 2 Bonding for Interchange Improvements at Minnesota Highway 100 and Vernon Avenue/West 50th Street Chad Millner, Director of Engineering CMillner@EdinaMN.gov 952-826-0318 3 Bonding for Aquatic Center Perry Vetter, Director of Parks & Recreation PVetter@EdinaMN.gov 952-826-0430 4 Sales Tax Exemption for Projects in the Braemar Park Master Plan and Fred Richards Park Master Plan Perry Vetter, Director of Parks & Recreation PVetter@EdinaMN.gov 952-826-0430 5 Funding Support for Entrepreneurs and Second-Stage Businesses Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 6 Tax Increment Financing (TIF) legislation for 70th and France and 72nd and France Bill Neuendorf, Economic Development Manager BNeuendorf@EdinaMN.gov 952-826-0407 7 Protect Municipal Employees with Enforcement Functions Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 Page 24 of 89 STAFF REPORT Page 18 Positions 1 GENERAL GOVERNMENT 1.1 Re-align Motor Vehicle Lease Sales Tax Allocation 1.2 Increase Purchasing Authority 1.3 Adult-Use Cannabis 1.4 Allow Restrictions on Possession of Firearms in Municipal Facilities with School-Like Use 1.5 Remove Language in the Minnesota State Constitution Allowing for Enslavement of Incarcerated People 1.6 Empower Unbanked Minnesotans to Participate in the Local Economy 1.7 Data Practices and Personal Information 1.8 Various Election Support 1.9 Hearing Aid Affordability Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 1.10 Change Group Home Regulation Cary Teague, Community Development Director CTeague@EdinaMN.gov 952-826-0460 1.11 Reinforce the Open Wholesaling Systems through Legislation 1.12 Oppose Changes to Tap Rooms Retail Operations 1.13 Protect Customer Data 1.14 Clarity on THC-Infused Products 1.15 Maintain Constraints on Off-Sale Liquor Josh Furbish, Liquor Operations General Manager JFurbish@EdinaMN.gov 952-903-5732 2 AFFORDABLE HOUSING 2.1 Reduce the Tax Rate on Land Trust Properties to Align with the 4d Property Tax Classification 2.2 Protection of and Taxation for Housing Purchased by Corporations for Renting 2.3 Support for “Missing Middle” Legislation with Local Controls 2.4 Discrimination Protections for Source of Income 2.5 Reform Eviction Expungement Stephanie Hawkinson, Affordable Housing Development Manager SHawkinson@EdinaMN.gov 952-833-9578 Page 25 of 89 STAFF REPORT Page 19 3 ENVIRONMENT AND SUSTAINABILITY 3.1 Establish Building Performance Standards 3.2 Establish a Right to Cooling Standard for Minnesotans 3.3 Repeal the State’s Ban on Bag Bans Marisa Bayer, Sustainability Manager MBayer@EdinaMN.gov 952-826-1621 3.4 Allocate I 00% of State Revenue from the Solid Waste Management Tax (SCORE) to County Waste Management Activities 3.5 Support Efforts for the Proper Labeling of Compostable Products 3.6 Fund Expanded Infrastructure at the Local Level for the Creation of Compost Processing Sites and Anaerobic Digesters 3.7 Develop and Fund Zero-Waste Initiatives Twila Singh, Organics Recycling Coordinator TSingh@EdinaMN.gov 952-826-1657 3.8 Expand Right to Repair Law 3.9 Increase Funding for State E-Bike Rebate Program 3.10 Establish State Funding to Support Expanded Carshare Networks Marisa Bayer, Sustainability Manager MBayer@EdinaMN.gov 952-826-1621 3.11 Continue Support for Local Environmental Health Regulatory Programs Jeff Brown, Community Health Administrator JBrown@EdinaMN.gov 952-826-0466 3.12 Support Funding Research, Training, and Legislation for Applicators of Chloride-Containing De-Icing Chemicals 3.13 Support for Truth in Labeling for Chloride-Containing De-Icing Chemicals 3.14 Support Reduction of Chloride Pollution from Wastewater Effluent Jessica Vanderwerff Wilson, Water Resources Coordinator JWilson@EdinaMN.gov 952-826-0445 3.15 Inflow and Infiltration (I/I) Municipal Grant Program Ross Bintner, Engineering Services Manager RBintner@EdinaMN.gov 952-903-5713 Page 26 of 89 STAFF REPORT Page 20 4 TRANSPORTATION 4.1 Continue and Increase Municipal State Aid (MSA) Funding 4.2 Municipal State Aid (MSA) Cost Participation 4.3 Increase Funding for Local Bridge Replacement Program (LBRP) Funding 4.4 Expansion of Public Transportation Frequency and Reach 4.5 Support Tools and Strategies to Reduce Vehicle Miles Traveled Chad Millner, Director of Engineering CMillner@EdinaMN.gov 952-826-0318 Andrew Scipioni, Transportation Planner AScipioni@EdinaMN.gov 952-826-0440 5 PUBLIC SAFETY 5.1 Emergency Medical Services (EMS) Local Control 5.2 Residential Fire Sprinklers Andrew Slama, Chief of Fire ASlama@EdinaMN.gov 952-826-0332 5.3 Support Funding for Auto Theft and Violent Crime Investigation 5.4 Support Funding and Programming for Recruitment and Retention Needs 5.5 Fund Additional K-12 Threat Assessments 5.6 Increase Penalty for Fleeing in a Motor Vehicle and Allow Use of Mobile Tracking Devices 5.7 Revise School Resource Officer Legislation 5.8 Transparent and Holistic Brady/Giglio Legislation 5.9 Support for First Responder Buffer Zone Protection Todd Milburn, Chief of Police TMilburn@EdinaMN.gov 952-826-0487 Page 27 of 89 December 3, 2024 Mayor and City Council Scott H. Neal, City Manager Zoe Johnson, City Management Fellow DRAFT 2025 Federal Legislative Platform 1 Affordable Housing Supplying affordable housing to all Minnesotans is an important investment to make in the state’s future. Unfortunately, the funding available falls far short of what is needed. Cities cannot close the housing affordability gap on their own. The City urges Congress to increase the allocation to Low-Income Housing Tax Credits (LIHTC), prioritize affordable housing and work with local partners to coordinate federal housing resources. The City asks Congress to reduce the bond threshold from 50 percent to 25 percent of eligible costs for LIHTC, allowing the tax-exempt bonds to leverage more credit across projects. This would result in leveraging more private equity in affordable housing to create up to twice as many units, thus greatly reducing the housing shortage. The City urges Congress to increase support for the Community Development Block Grant (CDBG) and Home Investment Partnership (HOME) programs. These programs are the principal source of federal revenue for localities to use in developing and implementing community development solutions, such as affordable housing, that create and sustain healthy, functioning communities. Additionally, in 2023 the State of Minnesota recognized a “right to heating” in winter to protect the comfort, safety, and well-being of renters and low-income Minnesotans, along with additional tenant protections. The City urges Congress to adopt similar standards nationwide, including rights to both heating and to cooling, along with additional funding for the Low-Income Home Energy Assistance Program (LIHEAP). Bills such as the Heating and Cooling Relief Act (S.405/H.R.893) not only would allow LIHEAP to assist more households but also reduce both utility bills and building emissions via expanded weatherization programs. Page 28 of 89 STAFF REPORT Page 2 2 Climate Change The City approved its Climate Action Plan in December 2021, setting a goal to reduce greenhouse gas emissions 45 percent by 2030. The plan includes 200 actions to meet our climate action goals, and the City has already started or completed over 30 percent of these critical actions and has benefitted from federal legislation and funding. For example, the City received a $200,000 grant from the U.S. Department of Transportation’s Safe Streets and Roads for All program to create a consolidated safe and equitable transportation plan, combining existing pedestrian and bike master plans and new plans, like a roadway safety plan. Goals of this plan will include reductions in vehicle miles traveled and increased multi-modal transit ridership and service. While the City continues to lead local climate change efforts, federal assistance helps us meet our goals more quickly and efficiently, particularly those concerning transportation and the greenhouse gas effects of the transportation industry. First, we ask for increased investment in high-speed passenger rail in the Midwest. The Twin Cities were prioritized for more frequent service to Chicago, and the City is eager to keep this prioritization, but we also seek high-speed rail connections to reduce short-haul flights in the Midwest. The City applauds the $500,000 of federal funding allocated to the planning of the Northern Lights Express project, and look forward to continued investment in the Midwest’s passenger rail network. Second, we ask for the creation of a national e-bike rebate or tax credit program, such as one similar to the Inflation Reduction Act’s electric vehicle (EV) credits. Minnesota’s program opened in July 2024 and there was such a high demand that the website crashed. Higher levels of investment are needed than current state funding. Such programs allow greater access to climate-friendly transportation, and e-bikes have positive health benefits. Third, we ask for support for transit system operations, like the Stronger Communities Through Better Transit Act (H.R.7039). Edina seeks to double its transit ridership by 2030, and operations funding can help Metro Transit increase service to suburban communities, increasing access, and increasing ridership opportunities. Finally, we ask that Congress declare a climate emergency. This recognition would open up additional sources of funding and mobilization of resources that would empower federal, state, and local governments to better prepare for and mitigate the consequences of climate change. 3 Enable Cities to Protect Residents from Harmful Levels of Aviation Noise The City identified aviation noise as a key threat to the quality of life in Edina. The City requests support from Edina’s federally elected officials for eliminating Categorical Exclusions (CATEX) when implementing Performance Based Navigation (PBN). The process should ensure that ground impacts and community concerns are incorporated into PBN that will change noise exposure. Regarding measuring noise, Day/Night Noise Level (DNL) is an average and humans perceive noise as individual events, rather than averages, so we believe it is time to investigate alternative metrics. Page 29 of 89 STAFF REPORT Page 3 The City is concerned about the impacts from the increased number and frequency of flights under traditional PBN tracks. There is currently very little information pertaining to the human impact of the concentration of flights associated with PBN procedures. Our residents are exposed to continuous concentrated noise due to our proximity to the airport. Although there may not be an increase in average noise as measured by DNL, there are unknown impacts from the increased number and frequency of flights. Given the age of some Sound Insulation Programs (SIP) in the United States, the increase in traffic density at our nation’s airports and improved technologies, the Edina City Council supports the eligibility standards used prior to the September 2012 Program Guidance Letter (PGL-12-09). The Edina City Council opposes the privatization of Air Traffic Control. We are concerned it may reduce the accountability of the organization to Congress, and that without a mechanism for compelling private companies to meet and discuss community concerns, there will be fewer opportunities for advocacy on noise impacts. The FAA has taken positive steps to improve community engagement, including adopting a Community Involvement Manual and hiring a Community Involvement Manager for Airspace Projects. The Edina City Council believes that this will result in a more efficient and successful implementation of NextGen, and we strongly support these efforts. 4 Post Office Preservation The Edina Post Office in the 50th & France District, at 3948 Market Street, is housed in a leased facility. The Edina Post Office is important to the Edina, Minneapolis and St. Louis Park residents it serves. We ask your support in keeping a full-service post office in the 50th & France District and to initiate the planning process for a new post office within the next 24 months. 5 Protection of Municipal Bonds The City’s Aaa and AAA credit ratings from Standard & Poor’s and Moody’s Investors Services are a source of community pride and represent the financial strength of our city. These ratings create opportunities for the City to invest in our community’s future and provide the best value in public services back to our residents. It is the combination of local control and local responsibility that makes municipal bonds such an effective and efficient tool. Any changes to the tax code should recognize the vital role of tax-except municipal bonds. The City asks you to oppose any attempt to make changes to the tax-exempt status that would increase the cost of financing for cities as doing so would impact our operations, our services and, ultimately, our residents. 6 Railroad Safety The City has one railroad that runs through the center of Edina, with two trains running daily on the tracks, and there are numerous other tracks within a 10-mile radius. The City supports legislation to mitigate negative safety concerns, noise, and environmental impacts of railroads and to increase communications with first responders for municipal emergency response to non-rail incidents and rail incidents. Such legislation includes the Railway Safety Act of 2023 (S.576). These measures are needed as the number and length of trains in the state and metro area are increasing, and as recent derailments, such as the Burlington Northern Santa Fe (BNSF) train derailment in Raymond, Minnesota, highlight the risk that rail poses to communities. Page 30 of 89 STAFF REPORT Page 4 Rail is an essential part of the national economy and reduces impacts on other infrastructure, so it must be maintained and operated safely in communities. 7 Public Safety The City operates a police department that includes sworn peace officers, a 911 dispatch division and community engagement functions. As with many communities in the Twin Cities, recruitment and retention of police officers, violent crime, and fentanyl overdoses remain enduring issues. The City supports initiatives like Community Violence Intervention (CVI) programs and the Safer America Plan. These proactive strategies are making a tangible difference in community safety across the nation, through their focus on neighborhood safety, intervention and support before violent crimes take place, and recruiting and retaining skilled and dedicated police officers. The City urges continued support of programs like these, through the Congressional action laid out in the Safer America Plan. Page 31 of 89 STAFF REPORT Page 5 City of Edina Staff Contact Information Scott Neal, City Manager, can be contacted regarding any of the legislative items, in addition to the staff below. He can be reached at SNeal@EdinaMN.gov or 952-826-0401. 1 Affordable Housing Stephanie Hawkinson, Affordable Housing Development Manager SHawkinson@EdinaMN.gov 952-833-9578 2 Climate Change Marisa Bayer, Sustainability Manager MBayer@EdinaMN.gov 952-826-1621 3 Enable Cities to Protect Residents from Harmful Levels of Aviation Noise Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 4 Post Office Preservation Scott Neal, City Manager SNeal@EdinaMN.gov 952-826-0401 5 Protection of Municipal Bonds Pa Thao, Director of Finance PThao@EdinaMN.gov 952-826-0420 6 Railroad Safety Chad Millner, Director of Engineering CMillner@EdinaMN.gov 952-826-0318 7 Public Safety Todd Milburn, Chief of Police TMilburn@EdinaMN.gov 952-826-0487 Page 32 of 89 d ITEM REPORT Date: December 17, 2024 Item Activity: Information Meeting: City Council Agenda Number: 3.2 Prepared By: Addison Lewis, Community Development Coordinator Item Type: Report & Recommendation Department: Community Development Item Title: Zoning/Subdivision Ordinance Audit Report Action Requested: None. Information/Background: It has been 54 years since the last major update of Edina's zoning and subdivision ordinances in 1970. From time to time, it is critical to review, analyze, and update development regulations to ensure they are aligned with City goals and working to achieve desired development outcomes. On November 21, 2023, the City Council approved a proposal from HKGi to complete an audit of the City's zoning and subdivision ordinances. The purpose of the audit is to provide a tool for identifying and clarifying ordinance issues, opportunities for improvements, and prioritizing future ordinance updates. HKGi has completed the report (attached) and will present the key findings and recommendations at the work session. Resources/Financial Impacts: The cost of the audit was $30,000. Relationship to City Policies: The audit provides recommendations to better align zoning with the Comprehensive Plan and small area plans. Budget Pillar: Livable City If implemented, the recommendations in this report would help to achieve the desired development outcomes and goals of the Comprehensive Plan and small area plans. Reliable Service If implemented, the recommendations would provide a more user-friendly development code that is clear, well organized, and easy to understand. Values Impact: Page 33 of 89 Engagement The City has undertaken extensive community engagement as part of the Comprehensive Plan and small area plans. Updating development regulations accordingly is one component of implementing those plans. Supporting Documentation: 1. Edina Zoning and Subdivision Ordinance Audit Report 2. HKGi Presentation Page 34 of 89 November 2024 Zoning/ Subdivision Ordinance Audit City of Edina Page 35 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 2 Purpose of the Zoning/Subdivision Ordinance Audit It has been 54 years since the last major update of Edina’s zoning/subdivision ordinances in 1970. As a result of Edina’s zoning/subdivision ordinances being extremely outdated, not oriented to contemporary types of development, and not aligned with adopted plans, simple development projects are subject to overly complex regulations and approval procedures. It is critical to review, analyze and update zoning regulations on a regular basis to ensure that they align with the City’s goals and enable desired development outcomes to be achieved. Since the last major zoning ordinance update in 1970, Edina has become a fully built-out community and most of the development occurring in the community is redevelopment of properties. Edina’s development practices and economics have changed significantly since 1970. Over time, Edina’s zoning regulations have become outdated, no longer aligning with development market trends and preferences. The City’s vision for development has also changed, as reflected in the 2040 Comprehensive Plan and small area plans. Since zoning is one of the most important tools for implementing the City’s land use vision, it is important that zoning regulations are aligned with the Comprehensive Plan and small area plans. Additionally, an effective zoning ordinance should have clear standards that are organized in a structure and format that makes it easy to find them. As a result of incremental amendments made to a zoning ordinance over time, regulations become inconsistent with each other and are frequently located in places where it is not expected or easy to find. It is critical to “clean up” these inconsistencies or conflicts to make sure the zoning ordinance is well organized, understandable, and easy to use. In 2024, the City of Edina undertook this Zoning/Subdivision Ordinance Audit to conduct a comprehensive evaluation of key components of the zoning ordinance that have been especially problematic: zoning districts, supplementary regulations, and some key development procedures. In addition, an evaluation of the overall structure of the zoning and subdivision ordinances was conducted to identify ordinance inconsistencies, eliminate redundancies, and opportunities to improve usability. The Zoning Ordinance Audit is intended to document existing zoning and subdivision ordinance issues, identify opportunities for improvement, and provide the City with recommendations for future ordinance updates. The Zoning/Subdivision Ordinance Audit was led by HKGi, a Minneapolis-based consulting firm with extensive experience in zoning ordinance audits and updates. Ordinance Audit Components The Zoning/Subdivision Ordinance Audit consists of four primary components: 1) Zoning Districts – Evaluation of the zoning districts in terms of the quantity and types of districts, current frequency for using each district, future applicability, degree of restrictiveness vs. flexibility, complexity of standards, and alignment with the comprehensive plan. 2) Supplementary Regulations (Article XII, Division 2) – This article within the zoning ordinance is a catch-all article containing a disparate group of standards that make the ordinance more Page 36 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 3 confusing and harder to find related information in the same area of the ordinance. This article was evaluated for opportunities to reorganize and update these standards. 3)Key Development Procedures - Evaluation of key development procedures, including site plan review, rezoning, planned unit development (PUD), and lot splits. 4)Zoning and Subdivision Ordinance Structure – Evaluation of the overall ordinance structure, including reorganization of topics, renumbering of sections, opportunities for formatting information to tables, and making the ordinance easier to use. Key Findings HKGi’s findings from the Zoning/Subdivision Ordinance Audit were presented and discussed with city staff and the planning commission during 2024. This report incorporates input from those discussions. Based on the audit’s findings and staff/planning commission input, HKGi has identified the following key findings for each of the four primary components. KEY FINDINGS: ZONING DISTRICTS 1)The zoning districts should better align with the 2040 Comprehensive Plan’s land use categories. a)The Comprehensive Plan’s goals and policies support expansion of housing options, including Missing Middle Housing and higher densities within designated change areas. The zoning districts have not been updated to align with the Comprehensive Plan’s future land use categories, which makes implementing the City’s vision for land use and housing difficult. b)The low density R-1 and R-2 districts align with the Low Density Residential and Low Density Attached Residential land use categories in the Comprehensive Plan. However, there are not any medium and high density residential base districts to align with the Medium and High Density Residential land use categories. c)The zoning ordinance only has “planned” PRD/PSR subdistricts that allow dwellings with 3 or more units. Densities allowed in the “planned” subdistricts are too low to achieve the allowed densities in the Comprehensive Plan’s Medium and High Density Residential land use categories. d)None of the “planned” residential districts’ densities achieve the maximum allowed densities of the Comprehensive Plan’s High Density Residential and mixed use categories. 2)As a result of the current zoning districts not precisely aligning with the 2040 Comprehensive Plan land use categories and being overly complex, simple development projects often must seek approval through a rezoning to PUD. a)The PUD process is generally intended to be used for unique and exceptional projects that cannot be accommodated under conventional base districts; however, proposals for simple townhome, apartments, and some commercial developments often must seek approval through a PUD because the projects are not feasible within a conventional base district or planned district. These projects struggle to meet the criteria for a PUD, making them unnecessarily challenging. Page 37 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 4 o The townhomes at 52nd and Hankerson are a good example of this issue. Since this project was approved by the City, this housing type is potentially acceptable in other locations; however, the City has no conventional base district nor planned district that would allow this to be built. o PUDs allow for a “give-to-get” situation where the City provides flexibility on zoning standards in exchange for more creativity and exceptional design; however, this “give-to-get” is not well defined or easy to quantify. As a result, expectations are not clear on what can be done with a particular piece of property between developers, City officials, and neighboring residents. While there are some clear expectations for things like affordable housing and sustainable building, expectations for things such as architectural design, building materials, public amenities, and landscaping are not well defined and become negotiable. It is also not clear how much flexibility a developer is granted in return for standards like setbacks, height and floor area ratio. This increases the amount of subjectivity during the review process, often at a time when there may be tension within the community about a particular project. Development becomes less predictable, and the likelihood of disagreement becomes higher. While the PUD’s flexibility is necessary to accommodate unique projects, it should not be overly relied on for simple development projects. o PUDs are also more complex and require more staff time to administer after they have been approved than developments within a conventional base district. The City can easily amend a dimensional standard (e.g. setback, lot coverage, etc.) within a conventional base district but may need to amend each PUD individually if a change is desired to a dimensional standard. 3) The zoning ordinance’s reliance on “planned” districts and subdistricts has resulted in a lack of conventional base districts that can be applied to new developments. a) There are only four conventional base zoning districts (R-1, R-2, RMD, APD), while the other 18 districts are “planned” districts and subdistricts. These subdistricts result in Edina having substantially more districts than other cities. b) Many subdistricts are only applied to a very limited number of developments, including two subdistricts that have never been applied on the zoning map. c) Some subdistricts have minimal differences between them, so they are redundant and could be consolidated. d) The planned subdistricts’ regulations appear to be based on the specifics of the original development and location where the subdistrict was applied, which makes the subdistricts’ uses and standards less likely to fit subsequent developments and locations and seem to necessitate the creation of additional subdistricts or PUDs for new developments. e) Zoning districts typically have purpose statements; none of Edina’s districts and subdistricts have purpose statements. Page 38 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 5 4) The zoning districts are overly restrictive in terms of allowed uses and standards which makes them hard to administer and apply to proposed development applications. a) Many districts and subdistricts are overly specific in the uses allowed, e.g. R-1 only allows single unit dwellings, R-2 only allows two-unit dwellings, some districts only allow senior housing. b) There are too many residential districts/subdistricts (9) yet 92% of residentially zoned land is zoned for one district, R-1, which only allows single unit dwellings. c) District regulations contain long lists rather than tables, complex formulas, and numerous special requirements and footnotes. d) The uses allowed within each district require review and updating. They are outdated and overly specific (e.g. coin and philatelic stores, telegraph offices, trading stamp redemption stores, etc.) and there does not appear to be consistent reasoning behind why some uses are allowed in some districts but not in others. For example, PCD-1, which appears to be the least intensive commercial district (although there is no purpose statement), allows a wide variety of retail establishments, including liquor stores, tobacco stores, grocery stores, leather goods stores, garden supply stores, and shoe stores but not fabric stores, office supply stores, or sporting goods stores, which are allowed in PCD-2 and -3. e) Some existing regulations are incompatible and trigger the need for unnecessary variances. For example, the City uses a building height overlay to allow different building heights in different areas; however, floor area ratio (FAR) requirements are applied by district. Therefore, two PCD-3 parcels could be allowed very different building heights but Page 39 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 6 be subject to the same FAR. For example, the Target site is zoned to allow 8 stories on the Building Height Overlay Map but is limited to an FAR of 0.5, meaning anything more than 2-stories is unlikely without variances. It is also strange that PCD-2 allows more FAR than PCD-3 despite PCD-3 being the more intensive commercial district in terms of uses allowed and building height. These types of differences should be reconciled to minimize unnecessary conflict. 5) The R-1 district’s minimum front yard setback, lot area, lot width, and lot depth standards are overly complex and serve as barriers to housing development and a burden to existing home owners. a) The front yard setback requirement is calculated based on whatever the actual setbacks are on adjacent properties or those on the same side of the street on the same block, whichever is less. As a result, a homeowner interested in adding a front porch would potentially need to spend thousands of dollars surveying all other homes on their side of the block to know whether it is even allowed. b) Since the front yard setback is dependent on surrounding properties, what one neighbor does can impact the development rights on another property, which has the potential to negatively impact property values. For example, if a home currently complies with the front yard setback but the neighboring home is torn down and rebuilt 1-foot further back, this could make the subject home non-conforming with respect to the front yard setback and impact the owner’s ability to construct an addition. c) The minimum lot area, width and depth are the greater of a fixed standard or the median of all lots within 500 feet. Many existing lots do not even meet the minimum fixed standard, making entire neighborhoods generally non-conforming (Morningside, Presidents, etc.). For example, the appendix includes an R-1 District Non-Conforming Lots Map showing existing lots that are less than the 9,000 square foot minimum. This map does not represent all non-conforming lots since the minimum lot area standard is actually higher in neighborhoods with a median lot size greater than 9,000 square feet. This map also does not represent lots that are non-conforming for minimum lot width and depth. d) In neighborhoods where there is a lot of variability in the shapes and sizes of lots (Indian Hills, Parkwood Knolls, Rolling Green, etc.), potentially half the lots would be non- conforming despite being large in comparison to the rest of Edina. For example, in the following hypothetical grouping of lots, half of the lots (lots in red) would be non- conforming for lot area. A 48,000 square foot lot could not be subdivided into two 24,000 square foot lots, despite being very large relative to the rest of Edina, due to the median lot area being 24,500 square feet. Page 40 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 7 Lot Area in Square Feet e) Since every lot has a different grouping of parcels within 500 feet, it is impossible to know the number of non-conforming lots without surveying and analyzing every parcel individually. f) When a property owner purchases an adjacent lot and tears down the home for additional yard space, or two lots are consolidated into one, this raises the median within the neighborhood (within 500 feet), meaning someone who owned a subdividable lot may no longer be able to subdivide based on their neighbor’s actions. This also means that neighborhoods become less dense over time unless variances are granted to create new lots. If a goal of the City is to increase home ownership opportunities, basing the minimum lot area, width, and depth requirement on the median within a neighborhood would have the opposite effect. KEY FINDINGS: SUPPLEMENTARY REGULATIONS (ARTICLE XII, DIVISION 2) 1) The random grouping of the 25 regulation sections in Division 2 makes it harder to find them. a) Only four of these sections should remain in Supplementary Regulations (Article XII). b) The remaining sections should be relocated to other Articles, including Zoning Districts, Use Specific Standards (recommended new Article), and In General. 2) Since these regulations generally relate to the zoning districts, they should be evaluated and updated in conjunction with updating the zoning districts. a) For example, as uses are updated in the zoning districts, it is determined whether that use is permitted, permitted with standards (and use specific standards are needed), or a conditional use. KEY FINDINGS: KEY DEVELOPMENT PROCEDURES 1) Site Plan Review - Even though site plans are subject to clear and objective standards, site plan reviews require a time-consuming and unpredictable process with 3 to 5 meetings, including 2 public hearings, in addition to meetings with the surrounding neighborhood and city staff. Page 41 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 8 a) Typically, this type of review is completed without any public hearings because site plans must be approved if they meet code requirements. b) The site plan review procedure is required more often as part of rezoning and PUD rezoning procedures rather than a standalone application because most development applications require rezoning currently. c) Opportunities for administrative review are limited based on the criteria identified in the site plan review procedure. 2) Lot Splits / Subdivision – The lot split procedure is overly complex and time-consuming with 4 meetings required, including 2 public hearings. a) Lot splits are required to go through the full platting procedure, even if creating just one additional lot. b) In addition, lot split applications are required by R-1 district regulations to provide detailed information about all existing lots within the neighborhood (within 500 ft.) to calculate median lot area, width and depth, which is likely a barrier to lot splits. 3) Rezoning to a PUD – The PUD process is being used for most proposed development projects. The required procedure is overly complex and time-consuming, including 4 to 6 meetings, in addition to meetings with the surrounding neighborhood and city staff. a) The City is currently using the PUD process to approve development projects that should not need to be PUDs because current base/planned districts do not allow for the type of development that aligns with the Comprehensive Plan or is compatible with the market. b) Many proposed developments struggle to meet setback standards, particularly side, rear, and “same as building height”, as well as FAR standards of the base/planned districts, so are forced to apply for rezoning to a PUD. c) Both the PUD and rezoning/site plan procedures refer to the site plan review procedure for some requirements. The intertwining of requirements between rezoning/site plan, PUD, and site plan review contributes to these procedures being overly complex and time- consuming. d) The PUD ordinance includes purposes/intents that are challenging for many PUDs to achieve. KEY FINDINGS: ZONING AND SUBDIVISION CODE STRUCTURE 1) The articles in the zoning code and subdivision code are inconsistent in their breadth; some are very short while others are long, ranging from 1 page to 74 pages in length. This issue indicates code reorganization opportunities, including consolidating and breaking down some of the Articles. 2) The Districts/District Regulations article is very long and contains 85 sections, the most of any article. 3) Information, such as uses and dimensional standards, are currently long lists with very specific information that is sometimes redundant. This information could be better organized using tables, including consolidation of some existing tables. Page 42 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 9 4) Article 12 Supplementary District Regulations, Division 2, is a catch-all article that contains a random set of 25 general requirements. 5) Information related to the code’s development procedures is currently located across six different articles. Typically, they are located in the same article. 6) Definitions are located in multiple articles; best practices are to locate them in one place. Recommendations Based on the above findings, HKGi has identified the following recommendations for each of the four primary components. RECOMMENDATIONS: ZONING DISTRICTS 1) Conduct a detailed evaluation, restructuring, and rewriting of the current zoning districts in order to better align the districts with the 2040 Comprehensive Plan land use categories’ uses and densities. a) Consider moving away from the code’s predominant structure of planned districts and subdistricts that has resulted in overly restrictive and complex subdistricts that are less likely to fit subsequent developments and locations. b) Update, consolidate, and/or create a new set of base residential, mixed use, and business districts that is better aligned with the 2040 Comprehensive Plan land use categories’ uses and densities. c) Most proposed development applications are essentially forced to rezone to a PUD today, since there often is not an established district or subdistrict that is current and flexible enough to apply to contemporary development types. Strive to create base districts that are applicable to contemporary development types and can reduce the City’s dependence on using PUDs for most development applications. d) Consider reducing the quantity of R-1 and R-2 nonconformities by creating a set of low density districts that reflect the city’s existing mix of lot sizes and development patterns. The appendix includes a R-1 District Existing Lot Sizes Map. The chart below shows the variety and distribution of R-1 lot sizes. e) Establish purpose statements for all districts. Page 43 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 10 2) Reorganize and reformat the zoning districts’ use regulations from the current text-based format to a table-based format in order to clarify and simplify the regulations, eliminate redundancies and inconsistencies, and make the zoning ordinance easier to navigate and find needed information. a) Create uses tables (principal uses, accessory uses) that show allowed uses across all districts and subdistricts. Some current districts have overly detailed lists of uses, e.g. PCD- 1 lists 54 permitted uses, which makes the districts’ regulations unnecessarily long and increases the possibility of not capturing all uses appropriate for the district. These issues can be addressed by consolidating and generalizing uses into categories where appropriate and then adding definitions for use categories as needed for clarification, interpretation, and enabling flexibility. 3) Conduct a detailed evaluation and rewriting of the zoning districts’ lot, site, and building dimensional regulations to improve overly complex standards, calculations, and data gathering. a) Create tables for lot, site, and building dimensional standards across all districts and subdistricts. Use the table format to evaluate the current types of standards in terms of adding value, conflicting standards, consistency across districts, and complexity of enforcing. Strive to simplify standards where possible so they are clear and objective. RECOMMENDATIONS: SUPPLEMENTARY REGULATIONS (ARTICLE XII, DIVISION 2) 1) Reorganize and update the wide variety of sections/divisions that are currently in Article XII to only include the general development standard sections applicable to all districts, essentially parking, loading, walk/bike facilities, landscaping, fences/walls, screening, storage, lighting, and Page 44 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 11 drainage. Relocate and update the other sections to the appropriate Articles, including the Zoning Districts, Use Specific Standards (recommended new Article), and In General. RECOMMENDATIONS: KEY DEVELOPMENT PROCEDURES 1) Update the Site Plan Review standards and procedure to remove unnecessary barriers to proposed development applications, including opportunities for administrative review and the reduction or elimination of public hearings for projects that comply with the ordinance. 2) Update the Subdivisions ordinance (Chapter 32) and the R-1 district regulations to remove unnecessary barriers to proposed lot splits, including opportunities for administrative review and the reduction or elimination of public hearings for minor subdivisions that comply with lot standards. 3) Update the PUD’s purpose/intent, use, eligibility standards, and procedures to reflect best practices and state statutes. Updates to consider are identification of the applicable conventional base district as a starting point for allowed uses and standards, stronger purpose clauses and a minimum project size to prevent the PUD from being overused and a bypass of other procedures (CUP, variance, rezoning to a base district), separation of PUD/rezoning procedures from site plan review procedures, and reduction of required meetings. RECOMMENDATIONS: ZONING AND SUBDIVISION CODE STRUCTURE 1) Establish a new hierarchy and numbering system for the code that makes it consistent across all articles, easier to navigate, and add new sections over time. 2) Reorganize the code based on the best practices of grouping related topics together and converting text-based information to tables where appropriate in order to eliminate redundancies and inconsistencies, simplify and shorten the code, and make it easier to navigate and find needed information. Priorities should include: a) Reorganized and shortened zoning districts’ sections b) Locate all development procedures in one article, which are currently located in six or more articles. c) Reorganize and relocate the 25 sections in Article XII, Division 2 (Supplementary Regulations). 3) Consider reconfiguring the code structure to integrate all development-related regulations and procedures into one place, often times referred to as a unified development code. Appendix 1) Edina Zoning Ordinance’s Current Districts 7) R-1 District Non-Conforming Lots Map 2) Residential Districts/Subdistricts Map 8) R-1 District Existing Lot Sizes Map 3) Residential Districts/Subdistricts w/o R-1 Map 9) Residential District Lot Dimensions Table 4) Business Districts/Subdistricts Map 10) Nonresidential District Lot Dimensions Table 5) Mixed Use Districts/Subdistricts Map 11) Residential District Site Dimensions Table 6) PUD Districts Map 12) Nonresidential District Site Dimensions Table Page 45 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 12 Appendix Edina Zoning Ordinance’s Current Districts Districts District / Subdistrict Names Conventional Base Districts R-1 Single Dwelling Unit District R-2 Double Dwelling Unit District RMD Regional Medical District APD Automobile Parking District Planned Residence District (PRD), including 7 PRD and Planned Senior Residence (PSR) Subdistricts PRD-1 PRD-2 PRD-3 PRD-4 PRD-5 PSR-3 PSR-4 Mixed Development District (MDD), including 4 Subdistricts MDD-3 MDD-4 MDD-5 MDD-6 Planned Office District (POD), including 2 Subdistricts POD-1 POD-2 Planned Commercial District (PCD), including 4 Subdistricts PCD-1 PCD-2 PCD-3 PCD-4 Planned Industrial District (PID) PID Overlay Districts HOD Building Height Overlay District Floodplain Overlay District Page 46 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 13 Residential Districts/Subdistricts Map Page 47 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 14 Residential Districts/Subdistricts without R-1 Map Page 48 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 15 Business Districts/Subdistricts Map Page 49 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 16 Mixed Use Districts/Subdistricts Map Page 50 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 17 PUD Districts Map Page 51 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 18 R-1 District Non-Conforming Lots Map Page 52 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 19 R-1 District Existing Lot Sizes Map Page 53 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 20 Residential District Lot Dimensions Table Page 54 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 21 Nonresidential District Lot Dimensions Table Page 55 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 22 Residential District Site Dimensions Table Page 56 of 89 Edina Zoning/Subdivision Ordinance Audit November 2024 | 23 Nonresidential District Site Dimensions Table Page 57 of 89 Council Work Session –December 17, 2024 Edina Zoning/Subdivision Ordinance Audit Page 58 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit From LMC Zoning Guide for Cities •Once a city adopts a comprehensive plan, it needs a means of attaining the development goals stated in the plan. Zoning provides a means for implementing a comprehensive plan. •Cities should strive for zoning that meets their goals as simply and efficiently as possible. •Drafting a well-organized, easy to understand ordinance benefits all. A good zoning ordinance: –Makes information easy to find. –Is easy to administer and amend –Uses plain, well-defined language that reduces the potential for erroneous or controversial interpretations. Page 59 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Tonight’s Meeting Agenda / Purpose Overview of Key Findings & Recommendations •Zoning Districts •Supplementary Development Regulations •Development Procedures –Site Plan Review, Lot Splits / Subdivision, PUD Rezoning •Overall Structure of the Ordinance Page 60 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Zoning Districts Page 61 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Zoning Districts •4 Conventional Base Districts –R-1, R-2, RMD, APD •5 Planned Districts (with 17 sub-districts) –PRD/PSR, MDD, PCD, POD, PID •23 Planned Unit Development (PUD) Districts so far •2 Overlay Districts –Building Height, Floodplain Page 62 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Zoning Districts Maps in Report Appendix All Residential Districts All Residential Districts w/o R-1 Page 63 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Key Findings: Zoning Districts 1.The zoning districts should better align with the 2040 Comprehensive Plan land use categories. 2.Simple development projects often must seek approval through a PUD rezoning, since current zoning districts are not precisely aligned with the 2040 Comprehensive Plan land use categories and being overly complex. 3.The zoning ordinance’s reliance on “planned” districts and subdistricts has resulted in a lack of conventional base districts that can be applied to new developments. Page 64 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Key Findings: Zoning Districts 4.The zoning districts are hard to administer and apply to proposed development applications because they are overly specific in terms of allowed uses and standards. 5.The R-1 district’s minimum front yard setback, lot area, lot width, and lot depth standards are overly complex and serve as barriers to housing development and a burden to existing home owners. Page 65 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Recommendations: Zoning Districts 1.Conduct a detailed evaluation, restructuring, and rewriting of the current zoning districts to better with the 2040 Comprehensive Plan. 2.Reorganize and reformat the zoning districts’ use regulations from the current text-based format to a table-based format. 3.Conduct a detailed evaluation and rewriting of the zoning districts’ lot, site, and building dimensional regulations to improve overly complex standards, calculations, and data gathering. Page 66 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Recommendations: Zoning Districts PUD at 52nd and Hankerson PUD at 70th and France Page 67 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Residential Districts Calculated Density (dwelling units per acre) Calculated Density with Allowances (dwelling units per acre) R-1 4.8 N/A R-2 5.8 N/A PRD-1 4.1 N/A PRD-2 6.0 N/A PRD-3 9.9 15.0 PRD-4 15.0 31.1 PRD-5 None (FAR max = 1.2)None (FAR max = 1.2) PSR-3 12.4 21.8 PSR-4 17.4 43.6 Residential Densities: Zoning vs. Comp Plan Land Use Categories Density and Intensity Guidance (dwelling units per acre) Residential Low Density Residential 1 – 5 Low Density Attached Residential 4 - 8 Medium Density Residential 5 - 12 High Density Residential 12 - 60 Greater Southdale Res.50 - 100 Office Residential 20 – 75 Mixed Use Center 20 – 100 Community Activity Center 90 – 150 PRD-5 only allows nursing homes PSR-3 & -4 only allow senior housing Page 68 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Residential Densities: Mixed Use Districts Mixed Use Districts Calculated Density (dwelling units per acre) Calculated Density with Allowances (dwelling units per acre) MDD-3 9.9 12.8 MDD-4 12.1 16.8 MDD-5 13.2 24.2 MDD-6 13.2 24.2 PCD-1 None N/A PCD-2 None N/A PCD-3 None N/A PCD-4 None N/A Page 69 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Residential Densities •District densities are too low to achieve comp plan densities •High density districts (PRD-3/PRD-4) only allow 10/15 du/acre, 15/31 du/acre with allowances •Medium density districts (R-2/PRD-2) only allow 6 du/acre Page 70 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Residential Districts •R-1 District is 92% of residentially zoned land, includes a range of existing lot sizes and allows single unit dwellings only Page 71 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit R-1 Existing Lot Sizes •Existing lot areas for R-1 district have been mapped •Map shows the range of lot sizes that exist in the R-1 district Page 72 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit R-1 Existing Lot Sizes •Strictly based on the 9,000 square foot lot size minimum, not accounting for “median” criteria •Existing lot widths and depths difficult to map •Map shows a significant number of non-conforming lots Page 73 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Supplementary Regulations Page 74 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Key Findings: Supplementary Regulations 1.This article/division’s random grouping of 25 regulatory sections makes it harder to find them. 2.These regulations generally relate to the zoning districts, so evaluate and update in conjunction with the zoning districts. Page 75 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Recommendations: Supplementary Regulations 1.Reorganize and update the wide variety of sections/divisions that are currently in the Supplementary Regulations article to focus on the general development standard sections applicable to all districts (e.g. parking, landscaping, fences/walls, screening, lighting) 2.Relocate the other sections to the appropriate articles and update in conjunction with the zoning districts. Page 76 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Development Procedures Page 77 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Development Procedures •Site Plan Review •Lot Splits / Subdivisions •PUD Rezoning Page 78 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Development Procedures Table Pre-App Conference Neighborhood Meeting Sketch Plan Staff/PC/CC Meeting w/Staff Admin Review PC Review CC Review Site Plan Review N/A Encouraged Encouraged Required PH, R PH, D Rezoning & Site Plan N/A N/A N/A N/A PH, R PH, D PUD – Preliminary Dev Plan & Rezoning Required N/A Encouraged N/A PH, R PH, D, O PUD – Final Dev Plan & Rezoning N/A N/A N/A N/A R, D, O Subdivision – Plat not Required N/A N/A N/A N/A R, D Subdivision – Prelim Plat N/A N/A N/A N/A PH, R PH, D Subdivision – Final Plat N/A N/A N/A N/A R, D Notes: R = Review; D = Decision; PH = Public Hearing; O = Ordinance Page 79 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Site Plan Review Analysis •Fairly infrequent as a standalone request •If site plan meets zoning requirements, City must approve •Public hearings not typically required •Many cities allow administrative review for minor modifications •Edina allows administrative review if building is enlarged by <10% Page 80 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Site Plan Review Key Finding: Even though site plans are subject to clear and objective standards, site plan reviews require a time- consuming process, including 2 public hearings. Recommendation: Update the site plan review standards and procedure to remove unnecessary barriers for projects that comply with the zoning ordinance. •Opportunities for administrative review and the reduction or elimination of public hearings Page 81 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Lot Splits / Subdivisons Analysis •Lot splits currently processed using full platting procedure •Challenging to split lots that were previously combined •Many cities use “minor subdivision” process to allow shortened review process for subdivisions creating 3 or fewer lots Page 82 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Lot Splits / Subdivisions Key Finding: The lot split procedure is overly complex and time-consuming with 4 meetings required, including 2 public hearings. Recommendation: Update the Subdivisions ordinance and the R-1 district regulations to remove unnecessary barriers •Opportunities for administrative review and the reduction or elimination of public hearings for minor subdivisions that comply with lot standards Page 83 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit PUD Rezoning Analysis •Difficult for simpler PUDs to meet each requirement (9) for “purpose and intent” •One minor modification may be approved administratively –Larger or multiple changes require review by PC and CC Page 84 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit PUD Rezoning Key Finding: The PUD process is being used for most proposed development projects. The required procedure is overly complex and time-consuming, including numerous meetings. Page 85 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit PUD Rezoning Recommendation: Update the PUD procedure to reflect best practices. •Stronger purpose clauses and a minimum project size to prevent the PUD from being overused and a bypass of other procedures (CUP, variance, rezoning to a base district) •Separation of PUD/rezoning procedures from site plan review procedures Page 86 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Overall Ordinance Structure Page 87 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Key Findings: Ordinance Structure 1.Articles are inconsistent in their breadth; some are very short while others are long, ranging from 1 page to 74 pages in length. The districts article has 85 sections. 2.Information, such as uses and dimensional standards, is contained in long lists, overly specific, and redundant. 3.Supplementary Regulations is a catch-all article with unrelated sections. 4.Development procedures located across six articles. 5.Definitions located in multiple places. Page 88 of 89 December 2024 Council Work Session Edina Zoning/Subdivision Ordinance Audit Recommendations: Ordinance Structure 1.Establish a new hierarchy and numbering system for the ordinance that makes it consistent across all articles, easier to navigate, and set up for adding new sections. 2.Reorganize the ordinance to group related topics together and convert text-based information to tables where possible. 3.Consider reconfiguring the ordinance structure to integrate all development-related regulations and procedures into one place, often times referred to as a unified development code. Page 89 of 89