01/05/2009 Council Packet - Laserfiche WebLink

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Our initial review indicates that with the proposed change the City's overall net density will drop below 3.0 units per acre. The 3.0 units per acres threshold is not related to affordability but rather the efficient use of regional infrastructure. Staff does not anticipate any flexibility from Metropolitan Council on this issue. However, staff is working with Met Council on reviewing what land must be included in the calculation. The possible removal of some areas included in the calculation could raise our net density. Alternatively, the City will need to reguide land for medium and/or high density areas to compensate for the reduction in the density range. The City faced this same issue during the last round of comprehensive plan updates. Corrective measures taken at that time included 1) elimination of the Low/Medium and the Medium/High Districts which were changed to medium and high respectively, 2) revisions to proposed density ranges, and 3) reguiding of land from commercial to both medium and mixed use districts. To address Item No. 4 staff is recommending the addition of a policy statement to the Housing goals in Chapter 4 as follows: "Establish requirements to provide for affordable housing in all residential land use districts. The implementation mechanism will be in the form of an ordinance, the drafting of which will necessitate some lengthy conversations with the council. A number of issues will need to be considered including but not limited to the following: 1. Does all residential development need to provide affordable housing? If so, how much? 2. Is it only required to be affordable for the first owner or also subsequent owners? 3. What financial incentives will the City provide, if any? 4. What is the potential impact to residential development within the city if affordability is mandated? What is the impact to commercial /industrial development? Staff is of the opinion that the proposed policy statement clearly identifies the council's preference and intent to provide affordability while still providing flexibility as we work through the necessary ordinance requirements. Item 5 proposes to provide increased density as an incentive for meeting higher standards or public values than otherwise required. Provisions for a density bonus are included within the Land Use Policies within the draft plan (pg. 3 -3, Policy No. 5 and 6). It is anticipated that the density bonus concept would get addressed as part of the zoning ordinance update, most likely as part of the PUD requirements. Staff would request further direction/clarification from the council on the issue. 2