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HomeMy WebLinkAbout10/01/2020 EDAC Packet AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: September 3, 2020 3. DISCUSSION ITEMS A. Livable Communities Act Reenrollment B. Project Updates 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, October 1, 2020 8:00 A.M. Meeting to be held electronically Pursuant to MN Statute 13D.021 How to Join the Meeting Phone: Dial 1-312-626-6799 Meeting ID: 843 7705 3954 Web link: https://us02web.zoom.us/j/84377053954 CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES I. CALL TO ORDER Chair Schueller called the Economic Development Advisory Committee meeting to order at 8:02 A.M. on September 3, 2020. II. APPROVAL OF MINUTES Mr. Cravero made a MOTION to approve the August 6, 2020 Meeting Minutes. Motion was supported by Mr. Vojtech, passing unanimously. III. DISCUSSION ITEMS A. Woods Edge Developer Forum Follow-up Mr. Grochala, Community Development Director, presented the staff report. EDAC members had several questions and noted additional information regarding the future of the YMCA, census figures, and tax implications would be important to any future decision on the property. As a first step, staff requested Ehlers to prepare a tax estimate comparison of 4 different development options. Mr. Kohler asked Mr. Grochala to explain what the service impacts would be per scenario. Mr. Grochala explained what some of the service impacts would be with the intention of looking deeper into this issue and analyzing which scenario would be most cost effective. Mr. Cravero asked if additional residential development would place pressure on the schools in the area. Mr. Grochala pointed out that the development splits two school districts and that they could certainly have a conversation to assess what the potential school impacts would be. Mr. Kohler wanted clarification on whether or not the DATE : September 3, 2020 TIME STARTED : 8:02 A.M. TIME ENDED : 8:55 A.M. MEMBERS PRESENT : Jim Schueller, Andrew Cravero, Thomas Colgan, Nathan Vojtech, Patrick Kohler MEMBERS ABSENT : Julie Jeffrey-Schwartz, Chad Wagner, Don Johnson STAFF PRESENT : Michael Grochala, Janele Waterman, Jessica Eller Economic Development Advisory Committee September 3, 2020 Page 2 DRAFT MINUTES original plan included standard apartments or age restricted. Mr. Grochala explained that the original master plan just allowed for multi-family, however after reaching out to developers senior housing, market rate, and luxury apartments all appear to be suitable options. Mr. Cravero commented that he would prefer a multi-generational option. Mr. Vojtech asked whether or not retail below apartments would be a feasible option. Mr. Grochala commented that it is still a feasible option but it has not proven out very well in suburban areas. Mr. Grochala gave board members an update on the Chain of Lakes YMCA. Mr. Colgan asked if the City has garnered any financial statements for the YMCA stating that it would be helpful in understanding why they closed. Mr. Grochala commented that the City does not monitor their financial records. Mr. Kohler asked if the City was seeing a demand for distance learning facilities. Mr. Grochala stated that the school district is seeing a shortage in their ability to provide daycare for distance learning. Mr. Kohler asked if the YMCA facility is conducive to distance learning. Mr. Grochala stated that the YMCA believes that they could arrange the facility to accommodate that. B. Lyngblomsten at Lino Lakes Addition PUD Final Plan/Final Plat Mr. Grochala, Community Development Director, presented the staff report. The applicant, Lyngblomsten at Lino Lakes, LLC has submitted a land use application for PUD Final Plan/Final Plat for development of Phase 1, the senior living community. C. Otter Crossing Mr. Grochala, Community Development Director, presented the staff report. The applicant, Tyme Properties, LLC, is creating a 1.43 acre commercial subdivision located in the northwest quadrant of Otter Lake Road and CSAH 14 (Main Street) for the purpose of constructing a 7,800 sf commercial retail building. The name of the preliminary plat is Otter Crossing. D. Project Updates Mr. Grochala updated the committee on the status of the Anoka County Business Relief Program. IV. ADJOURNMENT Mr. Cravero made a MOTION to adjourn the meeting at 8:55 A.M. Motion was supported by Mr. Kohler, passing unanimously. Respectfully submitted, Jessica Eller, Community Development Intern 1 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: October 1, 2020 TOPIC: Livable Communities Act Reenrollment REQUEST: Discussion BACKGROUND The Livable Communities Act (LCA) was adopted by the Minnesota Legislature in 1995. The Metropolitan Council administers the Livable Communities program. The LCA provides funding for communities to invest in local economic revitalization, work force housing initiatives, and development or redevelopment that connects different land uses and transportation. The program is a voluntary, incentive-based approach to help communities grow and redevelop, and to address the region’s affordable and lifecycle housing needs. From 1996 through 2018 the Metropolitan Council awarded 1,086 grants totaling about $401 million in Livable Community funds. To participate in the program, communities must agree to long-term affordable and lifecycle housing goals and develop a Housing Action Plan. Participation is also required for certain grant opportunities from the Minnesota Department of Employment and Economic Development. The City of Lino Lakes has participated in this program since 1996 and has benefited from four grants totaling $1,645,000 in funding for past projects. Reenrollment is now necessary for participation in the program from 2021 through 2030. Participation has three primary requirements: 1. Establish a Housing Action Plan 2. Spend an affordable and life-cycle housing opportunity amount (ALHOA) 3. Adopt Affordable and life-cycle housing goals Additionally, the community must adopt its 2040 Comprehensive Plan Update to participate. Housing Action Plan The City currently has a Housing Action Plan, put in place with the last LCA reenrollment in 2011. The plan is based predominately on the goals, policies, and implementation strategies outlined in the 2030 Comprehensive Plan. This plan would need to be updated to reflect policies outlined in the 2040 Comprehensive Plan which are nearly identical. 2 Spend ALOHA Amount The City’s ALHOA for 2021 is $75,979. This is the amount of your City budget that must be spent on affordable or life-cycle housing opportunities to participate in the LCA programs. At least 85% must be spent on activities that help to create, sustain, preserve, or advance affordable and/or life-cycle housing opportunities. Examples include direct housing expenses, debt service on affordable housing projects, and staff time administering programs that create affordable housing. The City has previously met this requirement through Tax Increment Financing payments for the Willow Ponds Senior rentals and the Legacy at Woods Edge projects. TIF currently proposed for the Lyngblomsten project would be an eligible expenditure. Adopt Affordable and Life Cycle Housing Goals The 2030 Comprehensive Plan included an affordable housing goal for the City of 560 new affordable units between 2011 and 2020. The new 2040 Comprehensive Plan has land guided at densities that can accommodate our affordable housing need allocation of 515 units between 2021 and 2030. The forecasted growth between 2020 and 2030 is 1,700 new households. The affordable allocation amounts to approximately 30% of new household growth. As shown in Table 4-10 of the 2040 Comprehensive Plan, approximately 50% of the City’s units were affordable (2017). The LCA program establishes a goal range of 283 – 515 for affordable units and a goal of 790 for Life-cycle units. Affordable is defined as housing that is affordable to low and moderate income families making no more than 80% of the area median income (AMI). In 2020, the area median income (AMI) for a household of four is $103,400. An affordable home price for a family of four with a household income of 80% AMI ($78,500) is $293,500. Examples of both rental costs and home price at various income levels is attached. “Lifecycle” refers to housing, other than single family detached, which meets the needs of the community in all age ranges. This can include twin homes, townhomes, or multi-family for example. 3 EDAC CONSIDERATION Staff is seeking EDAC’s recommendation to pursue reenrollment in the Livable Communities Program. ATTACHMENTS 1. Affordability Rates (2020) 2. 2011 Housing Action Plan 4 Rental housing Rents include tenant-paid utilities. We have not separated tenant-paid utilities from the rent value because we want to consider all housing costs to determine affordability, rather than just rent alone. # Bedrooms 30% AMI 50% AMI 60% AMI 80% AMI Efficiency $543 $905 $1,086 $1,448 1 Bedroom $582 $970 $1,164 $1,552 2 Bedrooms $697 $1,163 $1,395 $1,860 3 Bedrooms $806 $1,344 $1,612 $2,150 4 Bedroom $900 $1,500 $1,800 $2,400 2020 Rental Housing Ownership housing For owner-occupied housing, the income limit includes principal, interest, property taxes and home insurance. Assumptions include: • Fixed-interest, 30-year home loan • Interest rate of 3.625% • A 29% housing debt-to-household income ratio • A 3.5% down payment • A property tax rate of 1.25% of the property sales price • Mortgage insurance at 0.85% of unpaid principal • $100/month for hazard insurance Household Income Level Affordable Home Price 80% AMI ($78,500) $293,500 60% AMI ($62,040) $228,500 50% AMI ($51,700) $187,500 30% AMI ($31,000) $106,000 2020 Home Ownership Applying an interest rate of 3.625% on a 30-year fixed-rate home loan for 2020 and other standard mortgage assumptions listed above to the 80% of AMI amount for a family of four ($78,500), yields an affordable purchase price of $293,500. With ongoing increases in HUD income limits and the recent decline in mortgage interest rates, the affordable purchase price has increased from the 2019 limit of $254,500 and the 2018 limit of $234,500. City of Lino Lakes Livable Communities Act Housing Action Plan May 25, 2011 Introduction The Lino Lakes 2030 Comprehensive Plan includes a chapter on housing. The housing chapter has several purposes. It establishes policies and programs to meet the existing and projected housing needs in Lino Lakes. It also develops new strategies to accommodate the development of low and moderate income housing. The policies, programs, and strategies will guide the community to integrate housing into land use, transportation, economic and other decisions. It also provides direction for the private sector to participate in the creation of affordable and life- cycle housing opportunities. This Livable Communities Act Housing Action Plan reiterates and supports the purposes and implementation strategies of the Comprehensive Plan. The condition, affordability, and availability of housing affects the social and economic health of every city. As a developing community, Lino Lakes has an excellent opportunity to provide a variety of housing options to meet the needs of all its current and future residents throughout their lives. Through Lino Lakes’ Comprehensive Plan and Visioning processes, participants identified the need for a greater variety of housing options within the community, which currently consists mainly of single family detached homes. In response, the Comprehensive Plan Advisory Panel developed a Land Use Plan that identifies areas for high density housing, medium density housing, and low density housing, as well as mixed use areas that will incorporate a mix of commercial areas with higher density housing options. This can accommodate a wider variety of housing types including senior housing, live/work units, and multi-family in a variety of styles from rental, condo and townhomes. Single family options will range from entry-level single family, move-up for growing families and “executive housing” to meet the needs of a changing population. This shift to provide a more diverse housing supply supports future economic development objectives by retaining existing residents and attracting new residents from all social and economic backgrounds, and is an essential component for sustainable growth. The varied City of Lino Lakes Livable Communities Act Housing Action Plan page 2 residential areas will provide much needed housing options for the city’s work force, young professionals, families, and senior residents. Future Affordable and Life-Cycle Housing To provide for affordable housing in the community, the City is taking the appropriate regulatory measures within its 2030 Comprehensive Plan by guiding areas for higher density housing and including policies to integrate affordable housing in residential land use districts. These regulatory measures represent one of the City’s most effective tools for the development of affordable housing. To meet affordable housing goals, the City has planned for potential new growth with a variety of residential land use types and densities for the development of life-cycle and affordable housing across the city. As part of the 2030 Regional Development Framework, the Metropolitan Council conducted a study to determine the additional affordable housing units will be needed in the region between 2011-2020. The study included a method for allocating affordable housing to all communities within the region. The allocation for Lino Lakes was 560 High Density and Mixed Use units at a minimum density of 6 units per net acre by 2020. The city’s 2030 Comprehensive Plan includes the city’s future Land Use Plan , which accommodates that goal. After the preparation of the Land Use Plan , the City and the Metropolitan Council negotiated a more refined set of Livable Communities goals for 2011-2020: 364 to 560 affordable dwelling units, and 560 to 1860 life-cycle dwelling units. The Land Use Plan accommodates these goals as well. While the City is doing its part in creating a regulatory Land Use Plan to guide areas for higher density housing, which is where most affordable housing will likely occur, barriers to development of affordable housing still exist in Lino Lakes and the region. Some of these barriers are beyond the City’s control, including the following: • Steady increases in land prices and construction costs. • Physical limitations of land—due to wetlands, poor access, and poor soils—that would increase the cost of land development or construction. • State, county and local tax structures. There are some significant barriers to construction of new affordable housing, and the above list includes just a few of these barriers. Despite these difficulties, the provision of affordable housing is an important effort that cities undertake. The most effective role Lino Lakes will have in the provision of affordable housing is its regulatory tools: including land use and zoning regulations that do not impede the construction of affordable housing. Many of these tools can be used to encourage developers. Flexibility, through the use of the Planned Unit Development (PUD) process, may be provided to encourage the construction of affordable housing. Acknowledging the regional housing goals established by the Metropolitan Council and adopting new Livable Communities goals does not commit the City of Lino Lakes to provide funding for City of Lino Lakes Livable Communities Act Housing Action Plan page 3 housing. The City will continue to investigate means to pursue the goals in its comprehensive plan. However, this should not be interpreted as a commitment to use City funds to overcome the financial obstacles to life-cycle and affordable housing. Housing Implementation Strategies and Recommendations The housing chapter in the 2030 Comprehensive Plan identifies efforts Lino Lakes will pursue to create opportunities to maintain the existing housing stock, and to provide increased housing options for future residents. This Housing Action Plan reiterates and supports those strategies. These strategies are based on goals and rationales for Community, Neighborhood and Residential development developed by the Citizen Vision Committee. Many of the strategies are designed as resource tools for specific measures the City can effectively undertake and enforce. Others are designed as tools to encourage developers to incorporate affordable housing into future development. As future subdivisions are proposed, the City will use these resources and implement the strategies in working with developers to create new affordable housing opportunities. Many of these items are things the City itself can do. Others will occur through partnerships the City will seek out in order to provide for and maintain housing quality and increase affordable housing opportunities. During the community’s Visioning and Comprehensive Plan processes, participants developed new goals and strategies for housing development in the community. The complete set of goals and strategies, is listed in Chapter 3 of the 2030 Comprehensive Plan, the Land Use Plan. Several goals are particularly related to housing in Lino Lakes, and they form the bases for implementation of housing policies and thus for this Housing Action Plan. The following implementation strategies can be found in the housing chapter of the 2030 Comprehensive Plan. Several have been grouped together here with additional information describing actions that have been taken, are underway, or are planned. To ensure housing development is compatible with existing and adjacent land uses and provides accessibility to key community features and natural amenities (Goal 3), the City will: • Offer incentives to developers who provide for affordable housing units while conserving environmentally sensitive sites, such as density bonuses, expedited permitting processes, or reduced fees. • Encourage innovative low impact development to preserve open space or natural features. o To implement the 2030 Comprehensive Plan, the City is conducting a major review of its official controls including zoning and subdivision regulations. The PUD is a tool providing discretionary flexibility that can promote many policy goals such as environmental protection and the provision of affordable and life-cycle housing. City of Lino Lakes Livable Communities Act Housing Action Plan page 4 o Fees can be reduced when it would be consistent with specific public values. For example, common open space within a development can reduce park dedication requirements. Ecologically sound stormwater management design can reduce stormwater management charges. • Pursue funding opportunities to increase the affordability of housing units within conservation subdivisions. • Pursue funding opportunities to incorporate green building techniques within affordable housing developments. • Ensure that all new housing, including high density, adheres to the highest possible standards of planning, design and construction feasible. • Promote development of neighborhoods that incorporate housing in a range of densities and affordability limits in close proximity to shopping, services, daycare, and medical services. Safe access to parks and schools, and the ability to walk, bike or have access to transit should be part of the design. o The Land Use Plan in the 2030 Comprehensive Plan reflects the relationship between housing and services. Commercial nodes are planned to provide services in proximity to neighborhoods of all types of housing styles. To improve the availability of affordable housing and enhance opportunities for senior housing (Goals 5 and 6), the City will: • Create an incentive based program or Residential Planned Unit Development (PUD) ordinance that includes density bonuses for construction of affordable housing. This allows an increase in density, beyond the underlying zoning, if the development includes affordable housing. • Allow the creative use of site planning or PUDs that provide flexibility for development containing affordable housing such as a reduction in lot size, setbacks, street width, floor area and parking requirements, and consideration of reduction in City fees. • Update the zoning ordinance and subdivision ordinance to reduce impediments to affordable housing. • Periodically review land use regulations to determine the effectiveness of current ordinances in encouraging additional affordable units as well as encouraging modifications to keep the existing housing stock desirable and livable. o To implement the 2030 Comprehensive Plan, the City is conducting a major review of its official controls including zoning and subdivision regulations. The PUD is a tool providing discretionary flexibility that can promote many policy goals such as environmental protection and the provision of affordable and life-cycle housing. City of Lino Lakes Livable Communities Act Housing Action Plan page 5 • Participate in the Livable Communities Act Local Housing Incentives Program. • Develop policies to use Tax Increment Financing to fund activities that increase new affordable housing. o On September 13, 2010, Lino Lakes adopted Resolution No. 10-73, electing to continue participation in the Local Housing Incentives Program. Participation in this program includes successfully negotiating and adopting new goals and spending the required Affordable and Life-Cycle Housing Opportunities Amount (ALHOA). Lino Lakes is meeting and will continue to meet the ALHOA primarily through Tax Increment Financing payments that are supporting two projects that include affordable and life-cycle housing. In 2009, these payments were $160,690 and $35,660 for the two projects. • Activate and utilize powers and tools of the City Economic Development Authority and/or a City Housing and Redevelopment Authority to make funds available for the creation of new affordable housing. • Utilize techniques, such as land trusts to maintain long-term affordability for any new affordable housing unit. • Support and actively promote Anoka County’s 1st Time Homebuyers programs to assist new homeowners entering the market for existing homes. • Work with the Anoka County HRA to meet the community’s life-cyle and affordable housing needs. • Partner with, support and market programs offered by the County, State, MHFA, Federal Government and non-profits to fund the development of affordable housing. • Cooperate with developers or other agencies as appropriate to assess senior housing needs in the community. • Seek housing developers to work cooperatively with the City to construct affordable units. • Use the Land Use Plan as a tool to provide a variety of residential land uses in a range of densities, concentrating higher density opportunities along major transportation and transit corridors and around future job centers. o The Land Use Plan in the 2030 Comprehensive Plan reflects the relationship between land uses, transportation, housing needs, and employment. • Streamline permitting and development processes to ease the rehabilitation or improvement of existing homes and reduce unwarranted cost impacts on the price of entry-level homes. City of Lino Lakes Livable Communities Act Housing Action Plan page 6 o The City’s review of its official controls is including consideration of timelines and processing costs. However, many elements of development review are required by state law, such as public hearings and minimum time for public notices. Other elements are out of the City’s control: incomplete submittal information often delays review and approval. The goal is to reduce costs by collaborating with development interests early and working out design and other issues before significant expenditures in plans and other formal submittal requirements. To maintain existing housing stock to ensure a high-quality environment in all residential neighborhoods (Goal 11), the City will: • Support and actively promote housing rehabilitation programs for existing owner- occupied homes and rental buildings or units. This includes promotion of all county and state programs and non-profit programs. • Utilize the city’s website, newsletter and other sources for promotion and advertising of housing programs. • Continue enforcement of the Housing Maintenance Code to maintain existing housing stock. • Study the feasibility of establishing a program to require a property inspection and disclosure report before residential property changes hands. • Maintain City rental licensing program and enforcement efforts. • Promote programs that encourage maintenance of existing house including a housing remodeling fair, neighborhood watch programs, city beautification programs, city wide clean up programs, etc. • Develop a list of available resources and providers of in-home services to older adults and those with special needs. For further information, contact: Jeff Smyser, AICP City Planner (651)982-2425 jeff.smyser@ci.lino-lakes.mn.us Appendix A Goals and Policies Related to Housing and Listed in the Housing Chapter of the Lino Lakes 2030 Comprehensive Plan Goal 3: Ensure housing development is compatible with existing and adjacent land uses and provides accessibility to key community features and natural amenities. Rationale: Accessibility to the most attractive features of Lino Lakes is important to the citizens of our community. Policies: 1. Link trails to parks, lakes, and schools. 2. Ensure commercial development and mixed-use areas are appropriately dispersed throughout the city. Goal 5: Improve availability of affordable and life-cycle housing. Rationale: Lino Lakes, as a developing city, is expected to accommodate the projected housing needs, entry level through retirement, of the community’s population. Policies: 1. Work with developers to identify innovative strategies for providing entry-level and life-cycle housing. 2. Use redevelopment tools to revitalize aging residential properties, made possible by various federal, state, local government, and non-profit programs. 3. Provide expanded opportunities for housing ownership made available by various federal, state, local government and non-profit agencies. 4. Provide for and designate appropriate areas for high-density and mixed-use development. 5. Strive to integrate affordable housing in all residential land use districts. Goal 6: Enhance opportunities for senior housing. Rationale: As Lino Lakes continues to grow and develop, it must also accommodate the housing needs of a growing aging population. Policies: 1. Develop partnerships with non-profit and private sector groups who assist in the creation of senior housing. 2. Coordinate development of housing with retail accessibility (restaurants, shops, groceries). Goal 11: Maintain existing housing stock to insure a high-quality environment in all residential neighborhoods. Policies: 1. Promote the improvement of the existing housing stock, and to encourage the rehabilitation or redevelopment of substandard housing. 2. Encourage in-fill housing where appropriate.