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III.2. Sustainable Building Policy Update and Stakeholder Engagement Plan; Howard CITY OF HOPKINS Memorandum To: Honorable Mayor and Council Members Mike Mornson, City Manager From: Kurt Howard, Planner Date: October 1, 2024 Subject: Sustainable Building Policy Update and Stakeholder Engagement Plan _____________________________________________________________________ PURPOSE The purpose of this item is to update the City Council on staff’s progress towards developing a Hopkins Sustainable Building Policy and seek input on the proposed Hopkins-specific standards before beginning a stakeholder engagement process. INFORMATION Over the past year, the City has been developing a sustainable building policy. Sustainable building policies are tools that enable local jurisdictions to increase the degree to which new development contributes to improvements in public health, environmental justice, and environmental and economic sustainability. This is accomplished by requiring, incentivizing, or encouraging development to occur in ways that contribute to sustainability goals, such as reductions in carbon emissions, protection of natural areas, mitigation of stormwater, and incentivizing the use of renewable energy sources. At its meeting on December 19, 2023, the City Council was presented with a general policy framework based on several other Minnesota cities that have adopted formal sustainable building policies, as well as resources and guidance provided by the Center for Energy and Environment (CEE). The key components of this policy framework involve: • Establishing policy triggers that control which types of development the policy does and does not apply to • Leveraging existing third-party rating systems by requiring applicable developments to receive certification from at least one of the following: LEED, Minnesota B3 Benchmarking, MN GreenStar Home, or Enterprise Green Communities green building program • Developing a city-specific list of sustainability standards or “universal requirements” that must be met by all developments to which the sustainable building policy applies The City Council expressed support for this general policy framework and staff has since been partnering with subject matter experts at CEE to further develop detail on the various components of a Hopkins Sustainable Building Policy, as outlined below. Planning & Economic Development Policy Triggers Policy triggers enable to cities to determine what scales and types of development a sustainable building policy should apply to in order to help strike an effective balance that both delivers on the sustainability goals of the policy but also avoids being overly burdensome such that development becomes infeasible. The triggers for a Hopkins Sustainable Building Policy that are currently under consideration would have the policy apply to developments that have occupiable building space above a certain number of square feet and meet one or more of the following conditions: • Publicly owned • Requesting discretionary land use approvals (e.g. Planned Unit Development (PUD), Rezoning, Comprehensive Plan amendment) • Requesting over $300,000 in City financial assistance (e.g. Tax Increment Financing, grant dollars from other organizations that pass through the City) One question that has been identified that could be informed by direction from the City Council and stakeholder engagement is whether an exception should be carved out for townhome or condo developments given the goal of bringing more home-ownership opportunities to Hopkins. Third-Party Rating Systems Incorporating existing third-party rating systems into the policy helps establish a level of standardization across the policies of different cities in Minnesota, reduces the administrative costs of implementing the policy, and also covers many of the fundamental bases of sustainable building design, including energy efficiency, greenhouse gas reduction, use of renewable energy, stormwater mitigation, and electric vehicle infrastructure. The third-party rating systems that are currently under consideration include: • U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) • Minnesota Sustainable Building Guidelines (B3) • Enterprise Green Communities • Green Communities - MN Overlay Universal Requirements The city-specific universal requirements component of a sustainable building policy gives cities the ability customizes their policy to reflect the unique sustainability goals of the community, helps fill any gaps not covered by the third-party rating systems, and also ensures that certain priorities are advanced with every single project to which the policy applies. The universal requirements currently under consideration for a Hopkins Sustainable Building Policy include: • Greenhouse gas emission reduction • Renewable energy • Cool roofs and passive cooling • Resilience and backup energy • Waste management • Electric vehicle charging • Low salt design Based on an initial analysis of the practicality of developing and administering standards related to each of these topics, the universal requirements under consideration to be included in a first draft of a Hopkins Sustainable Building Policy are greenhouse gas reduction, renewable energy, electric vehicle charging, and low salt design. These universal requirements will be a key topic for stakeholder engagement and can be modified with future revisions and evolutions of the policy. Stakeholder Engagement Plan Depending on the feedback received during this discussion, staff plans to commence a stakeholder engagement process over the next several weeks. Stakeholder engagement will include presentations to both the Planning and Zoning Commission and the Park Board, in-person community engagement to collect input at the Hopkins Fire Department Open House, one-on-one meetings as requested, and the development of an online tool to engage the development community. The feedback gathered will be incorporated into a draft policy that will be brought to the Planning & Zoning Commission for a Public Hearing before subsequently going back to the City Council for proposed adoption. FUTURE ACTION If there is agreement on the framework and content of the elements of a Hopkins Sustainable Building Policy covered in this discussion, staff will begin a process of stakeholder engagement to inform a draft policy to be proposed for adoption before the end of 2024