IV.12. Second Reading Ordinance Amending Part 2, Chapter 8 of the Hopkins City Code relating to Establish a Hopkins Sustainable Building Policy; Howard
CITY OF HOPKINS
City Council Report 2025-070
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Kurt Howard, Planner
Date: April 15, 2025
Subject: Second Reading of Ordinance 2025-1224 Adopting Hopkins Sustainable
Building Policy
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO Adopt for Second Reading Ordinance 2025-1224, Amending Hopkins City
Code Part II, Chapter 8, Establishing a Hopkins Sustainable Building Policy
OVERVIEW
Sustainable building policies are tools used by 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 reduce
carbon emissions, reduce waste, protect natural areas, mitigate stormwater runoff, and
contribute to other sustainability goals. The Hopkins Sustainable Building Policy holds
potential to advance the following goals documented by the City of Hopkins:
• The Cultivate Hopkins 2040 Comprehensive Plan encourages sustainable
practices in locating, designing, constructing, and maintaining development in
the city, with an associated strategy of exploring implementation of
heightened development review through sustainable building regulations.
• Adopted in May of 2024, the Hopkins Energy Action Plan identifies
sustainable development as one of four focus areas for achieving Hopkins’
desired energy future, with an associated strategy of developing a Hopkins
Sustainable Building Policy
• The City Council’s formally adopted Goals and Strategic Action Plan for 2024
identifies an action step of exploring a sustainable building development
policy.
At the end of 2023, the City Council directed staff to develop a Hopkins Sustainable
Building Policy. With the support of funding from Hennepin County and subject matter
expertise from staff at the Center for Energy and Environment, staff developed the
policy detailed below, that is now proposed for adoption and detailed below.
SUPPORTING INFORMATION
• Proposed Ordinance 2025-1224
• Planning & Zoning Commission Resolution 2025-03
• Written comments received
Planning & Economic
Development
Overview of Proposed Policy
The key components of the proposed Hopkins Sustainable Building Policy include:
• Policy Triggers: these control which types of development are subject to the
policy.
• Third-party rating systems: developments subject to the policy are required to
achieve certification from at least one approved third-party sustainable building
rating system.
• Hopkins universal requirements: must be met by all developments subject to the
policy regardless of which third-party certification is achieved.
Policy Triggers
Policy triggers enable cities to determine the scales and types of development to which
a sustainable building policy applies. This helps strike an effective balance between the
sustainability goals of the policy and the practical feasibility of new development.
The Hopkins Sustainable Building Policy is proposed to apply to a development if it
meets the following criteria:
• It is new construction, AND
• It has at least 10,000 square feet of non-residential space and/or has 20 or
more residential units, AND
• It meets at least one of the following criteria:
o It is publicly owned, OR
o It is receiving discretionary land use approvals, including Planned Unit
Development (PUD), Rezoning, or Comprehensive Plan Amendment,
OR
o It is receiving over $300,000 in City financial assistance, such as Tax
Increment Financing, land write-downs, grant dollars from other
organizations that pass through the City, etc.
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 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 (EV)
infrastructure. The proposed list of eligible third-party rating systems for developers to
select from include:
• U.S. Green Building Council’s Leadership in Energy and Environmental Design
(LEED), certified Silver, Gold, or Platinum
• Minnesota Sustainable Building Guidelines (B3)
• Enterprise Green Communities
• Green Communities - MN Overlay
• Other rating systems as approved by staff
Universal Requirements
The Hopkins-specific universal requirements component of the Hopkins Sustainable
Building Policy gives cities the ability customize their policy to reflect the unique
sustainability goals of the community and helps fill any gaps not covered by the third-
party rating systems. The universal requirements currently proposed for a Hopkins
Sustainable Building Policy include:
• Reporting Predicted Greenhouse Gas Emissions
• Evaluating feasibility of
o Installing a cool or green roof OR
o Sourcing 2% of energy with on-site renewable energy.
• Make 5-10% of parking spots EV-ready or EV-capable, depending on land use
type.
• Evaluate feasibility of activities from low-salt design checklist.
Community Input and Engagement:
Beginning in October 2024, staff undertook a stakeholder engagement process to seek
input and feedback regarding the policy. The feedback received through stakeholder
engagement includes:
• Positive feedback for pursuing a Hopkins Sustainable Building Policy
• It is critical to ensure that the hard and soft costs of complying with the policy
be proportional to the financial and/or land use incentives received.
• Concerns about raising project costs and the ability for developers to predict
cost impacts.
• Interest in adding certification programs, including the U.S. Department of
Energy’s Zero Energy Ready Home program and Phius Core.
• Commentary on pros and cons of proposed certification programs.
Engagement Activities:
• In-person community engagement at the Fire Station Open House on
October 12, 2024
• Discussion at the Hopkins Planning and Zoning Commission meeting on
October 22, 2024
• Discussion at the Hopkins Park Board meeting on October 28, 2024
• Direct outreach to development community
• Published notice of this public hearing in the City’s official paper
• The Planning and Zoning Commission’s public hearing on March 25, 2025
Planning & Zoning Commission Recommendation
The Planning & Zoning Commission held a public hearing regarding the proposed policy
at their meeting on March 25, 2025. One member of the public commented in favor of
adopting the policy. Following the public hearing, the Commission discussed the policy
and voted 3-1 in favor of recommending that the City Council approve the policy with
one modification to reduce the policy’s square footage threshold of applicability from
15,000 square feet to 10,000 square feet. This recommended change has been
incorporated into the proposed Ordinance 2025-1224.
NEXT STEPS
If approved for a second reading, the Ordinance will be published in the City’s official
paper, as is required to make it effective.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
ORIDNANCE 2025-1224
AN ORDINANCE AMENDING PART 2, CHAPTER 8 OF THE HOPKINS CITY CODE
TO ESTABLISH A HOPKINS SUSTAINABLE BUILDING POLICY
THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS
FOLLOWS:
SECTION 1. Hopkins City Code, Part II, Chapter 8 is hereby amended to add Article
VIII, to read with the double-underlined language after as follows:
Article VIII. - Hopkins Sustainable Building Policy
Sec. 8-321. – Applicability. The Hopkins Sustainable Building Policy applies to a
development if it meets the following criteria:
(a) It is new construction, AND
(b) It has at least 10,000 square feet of non-residential space and/or has 20 or
more residential units, AND
(c) It meets at least one of the following sub-criteria:
i. It is publicly owned, OR
ii. It is receiving discretionary land use approvals, including Planned Unit
Development, Rezoning, or Comprehensive Plan Amendment, OR
iii. It is receiving over $300,000 in financial assistance from Tax Increment
Financing, City land write-downs, the Housing Redevelopment
Authority, Local Affordable Housing Aid, grant dollars from other
organizations that pass through the City, or property tax abatements.
Sec. 8-322. – Sustainable Building Rating System. All applicable projects must certify
the project under the current version of one of the following rating systems and levels:
(a) LEED Building Design and Construction or LEED Residential BD+C
Multifamily Certified Silver, Gold or Platinum
(b) State of Minnesota B3 Guidelines Certified Compliant
(c) Enterprise Green Communities Certification or Certification Plus
(d) Equivalent rating systems with prior staff approval
Sec. 8-323. - Hopkins Universal Requirements. All applicable projects must comply with
the following Hopkins Universal Requirements:
(a) Calculate predicted greenhouse gas emissions and report to City staff
(b) Evaluate feasibility of sourcing 2% of energy with on-site renewable energy
and install if cost-effective by B3 guidance OR evaluate feasibility of installing
a cool or green roof through a similarly developed cost effectiveness
assessment as used for the B3 renewables guidance.
(c) For 5-10% of parking spots, install electric vehicle charging equipment or
make EV-ready. Exact requirement is based on land use type.
(d) Evaluate feasibility of activities from the City of Hopkins’ low-salt design
checklist.
Secs. 8-324 – 8-340 – Reserved.
SECTION 2. The effective date of this ordinance shall be April 24, 2025.
First Reading: April 1, 2025
Second Reading: April 15, 2025
Date of Publication: April 24, 2025
Date Ordinance Takes Effect: April 24, 2025
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk
Miles & Associates Inc.
Construction Management / Architects
1121 Jackson Street NE Suite 127
Minneapolis, MN 55413
612 328 1981 cell
612 378 4870 office
miles@milescm.com
www.milescm.com
Memorandum
To: Kurt Howard
From: James Miles
Date: March 7, 2025
CC:
Re: Hopkins Sustainability Policy
I commend Hopkins for considering this policy, I especially am pleased that you are allowing ONE path to be followed,
unlike St. Paul which requires multi paths.
I’ve worked on many sustainable multifamily projects and here are my comments.
• LEED
This is a robust but very expensive option and few if any developers will pick this path due to the excessive
costs and administrative burden.
• B3 Guidelines
Again, not a bad option, but in my experience, this pushes projects to all electrification, at the expense of in
example exterior insulation. My opinion is that mechanical systems last 15-20 years, but the building envelope
is for the life of the building. Weather all electrification is the way of the future can be debated, but no doubt the
most energy efficient multifamily building TODAY is gas fired magic paks, out of the question using B3
guidelines.
• Green Communities.
Requires Energy Star Certification. In Minnesota this dictates the insulation of underground parking garages, a
VERY expensive option and the benefit is marginal, with no options, you must do it. This adds 10,000 dollars
per unit construction costs with a pay back of 30-50 years. Makes no sense in our climate. This program is
also heavy on paperwork.
• DOE Net Zero (ZERH) Program
Building needs to be wired for FUTURE electric mechanical system
Garage does not need to be insulated (1 unit needs to meet Energy Star Certification Standards), common
spaces need to meet 2021 IECC Standards.
This program gives developers some flexibility with provisions being made for future changes, as economics
may dictate. It is low cost (No fees), and a Rater does most of the paperwork.
I am hopeful that you will put the ZERH program on your list, if nothing else, it will expose developers to this most
important program.
Thank you for your consideration.
This Message Is From an External Sender
From:Peter Schmelzer
To:Kurt Howard
Subject:Re: Proposed Hopkins Sustainable Building Policy
Date:Monday, March 10, 2025 2:12:43 PM
Attachments:Outlook-A picture .png
Hopkins Sustainable Building Policy Handout.pdf
Hello, Mr. Howard,
Congratulations on adopting a sustainability policy! This is an important step in the right
direction. Thank you also for reaching out for input from the design community.
For the last 30 years, I have followed the sustainability movement, after writing my master's
thesis on the topic in the early '90's. After licensure, I became LEED accredited, and then
finally about 10 years ago, I became a Certified Passive House Consultant. Now I volunteer as
the president of Phius Alliance Minnesota, promoting passive building approaches in our great
state.
Through the years, I came to understand that energy efficiency for reduced carbon emissions
has not been guaranteed by sustainability standards. Design teams have had the option to
score in other point categories than reducing emissions. So projects have been built and
certified that use more energy than before.
That is why I joined Phius. Phius certification focuses on hitting aggressive energy reduction
targets, which are micro-climate specific and cost-optimized. Phius certification means your
project is as energy efficient as it can reasonably be in your location. (Phius also ensures
proper ventilation, thermal comfort, less draftiness, and quieter buildings...)
I argue that Phius should be the core of every sustainability standard. Start with efficiency, so
less energy is required. This means fewer power plants, wind turbines, and solar panels. It
also means less impact on electric, gas, and water treatment facilities.
The sustainability aspect can then begin in earnest, once energy efficiency is required. Then
we start to look at responsibly sourced materials, avoiding toxins, providing for non-motorized
transit, and all the other sustainability features well-enumerated in LEED v5. In fact, Phius
certification can be used to achieve points within the sustainability standards.
I have also learned that all sustainability standards have not been created equally. SB2030
and the B3 guidelines have for many years had loopholes that prevented the intended level of
sustainability, and the process has been ambiguous. ICC 700 National Green Building
Standard is known to be one of the easiest standards to meet, without much variation from
code-built construction. So, choose wisely your standards and the required performance
tiers within.
Also, I recommend requiring actual certification. Some may argue that funding must be
locked in before the certifications are finalized, but I argue that requiring certification is the
only way to know that you are getting what you paid for. What does 'following' a standard
mean, if certification is not required? When certification is mandatory, you can open
conversation after the fact about why it might not have been attained and work out an
acceptable solution. But if certification is optional, there can be no followup conversation
since you'll never know how closely the standard was or was not followed.
In summary, I would recommend the following to achieve the best results for the Hopkins
Sustainability Policy:
1. Adopt Phius Core as the basis of your new construction energy efficiency requirement,
2. Adopt Phius REVIVE as the basis of your retrofit energy efficiency requirement, and
3. Require a sustainability certification (non-Phius) to achieve your broader sustainability
goals.
I would be happy to converse further on this, if that would be helpful.
Best regards,
Peter
Peter Schmelzer
President, Phius Alliance Minnesota
AIA, LEED AP, NCARB, CPHC
Senior Project Manager, Contract Administration
1301 American Blvd. E, Suite 100
Bloomington, MN 55425
Mobile: 507.649.9768
Office: 612.879.6000
Email: peters@kaaswilson.com
Web: www.kaaswilson.com
From: Kurt Howard <khoward@hopkinsmn.com>
Sent: Thursday, March 6, 2025 3:02 PM
To: Kurt Howard <khoward@hopkinsmn.com>
Subject: Proposed Hopkins Sustainable Building Policy
Greetings,
The City of Hopkins is considering adopting a Sustainable Building Policy and welcomes
your input to help inform a decision. The details of the proposed policy are outlined in
the attached handout. You are invited to review the policy and provide any feedback by
Tuesday, March 18th.
Please feel free to let me know if you have questions or if it would be helpful to discuss.
Thank you,
Kurt
Kurt Howard (he/him) | Planner | City of Hopkins
1010 1st Street S | Hopkins, MN 55343 | 952-548-6339
www.hopkinsmn.com
This Message Is From an Untrusted Sender
You have not previously corresponded with this sender.
From:Jim Kumon
To:Kurt Howard
Subject:Re: Proposed Hopkins Sustainable Building Policy
Date:Thursday, March 6, 2025 10:49:42 PM
Hi Kurt,
Nice to meet you. While I don't have a lot of context for the tradeoffs for putting this policy in
place, the number one goal of any such policy on a development project is that it does not
incur more hard cost or soft costs to comply with than the revenue provided that triggered the
need for compliance. While there are a couple of items here that are pretty direct and easy to
predict cost impacts, there are many which have significant cost implications for the reporting
or compliance that would probably put a dent in the budget where the incentive is trying to
probably be used to offset other costs (depending on the order of magnitude of the incentive
$3,000 or $300,000 would be a big swing in expectations). In general, adding these kinds of
compliance mechanisms which are not directly tied to the actual costs of greening the project
itself run the risk of just increasing costs.
The Minneapolis Green Cost share program is a good model because the building gets better
directly through measures that help pay for that first cost improvement. Calculating energy
savings or emissions is often then able to be calculated by third party agencies like Franklin
Energy who are running the Utility programs that the city relies upon (and does not create
secondary compliance burden) for ensuring compliance. I would suggest that if you want
green outcomes, you'd have to apply some of the resources being provided to get those green
outcomes, whether hard or soft costs, not a trade off for something unrelated. Or work with
other partners already providing some services such that they are able to complete reporting
and compliance for the project free of charge. Tacking on green elements to a project that is
fundamentally not on that path will likely result in uneven and inefficient outcomes.
In short, unless the developer can clearly see the dollars, the compliance pathway and the
timeline that is associated with an incentive, along with those items being right sized and
curated toward that product type (residential vs commercial for instance), it would be hard to
judge whether the help of the incentive is worth the harm of the strings attached. The policy
as written gives me no real parameters for a sample deal or what rules apply to which types or
sizes of projects. Having sample pathways for a multifamily residential, vs a warehouse vs a
small commercial building along with the typical programs that are already associated with
those projects (rating systems or other energy rebates), would make it much clearer.
At this juncture it's too broad and too hard to evaluate the best way to comply to provide good
feedback. If you can provide a list of the types and sizes of projects that would be the most
likely to be subject to these policies, plus the incentives amount range that would go with, a
group of developers could probably suggest the best pathway across these types to provide the
city guidance for choosing the rating system and the reporting required for each. Hopefully
this general feedback is helpful to providing a loop where then more information is also the
relevant information in determining these factors.
Best
Jim
On Thu, Mar 6, 2025 at 3:02 PM Kurt Howard <khoward@hopkinsmn.com> wrote:
Greetings,
The City of Hopkins is considering adopting a Sustainable Building Policy and welcomes
your input to help inform a decision. The details of the proposed policy are outlined in the
attached handout. You are invited to review the policy and provide any feedback by
Tuesday, March 18th.
Please feel free to let me know if you have questions or if it would be helpful to discuss.
Thank you,
Kurt
Kurt Howard (he/him) | Planner | City of Hopkins
1010 1st Street S | Hopkins, MN 55343 | 952-548-6339
www.hopkinsmn.com
--
Jim Kumon
Principal | Electric Housing
Minneapolis, MN
612-875-1196