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5 <br />Policy Triggers <br />Given the regional competition for development, cities often balance priorities of encouraging <br />development while achieving community-wide goals, such as sustainability targets. For this <br />reason, we 1) encourage the greatest number of cities to adopt similar sustainable building <br />policies to standardize the practice across a region, and 2) recommend cities consider their <br />unique leverage points for the greatest impact. Cities can use the following triggers to activate a <br />sustainable building policy: <br />1. Funding incentives. The most straightforward trigger is a <br />developer’s request for public funding. To date, several cities <br />have successfully used a minimum trigger of $200,000 in <br />cumulative public funding. The types of qualifying funding <br />sources vary. We recommend maximizing public funding <br />sources for the greatest impact. (See examples below.) <br />2. Land use incentives. Though there is little track record of this <br />approach for sustainability in Minnesota, it is used in other <br />areas of the country. For cities with established zoning rules, <br />we recommend cities consider three types of land use triggers: <br />a. Planned unit development (PUD). Where a city has a <br />large tract of land for development, it can set high-level <br />density and other rules, such as a sustainable building <br />policy, for the site, while giving the developer flexibility <br />in how that is accomplished. <br />b. Premiums. Setting clear expectations for developers <br />can reduce costs and encourage specific types of <br />development. We recommend cities consider codifying <br />sustainability premiums as an incentive for density and <br />height bonuses. <br />c. Variance. Where not codified as premiums, cities <br />should consider applying a policy when more intense <br />variances are requested. <br />3. Process incentives. Cities can create faster approval processes and higher prioritization in <br />permit and inspection reviews for developments that adhere to the sustainable building <br />policy. This has not yet been tried in Minnesota but has been done elsewhere. <br />4. Building size. Because larger building developments have the greatest environmental <br />impact and more sophisticated design teams, we recommend that a policy apply to buildings <br />that meet the following size thresholds. This trigger is only activated when a project receives <br />a funding, land use, or process incentive. <br />a. New construction of 10,000 square feet and greater. <br />b. Significant renovation of buildings 10,000 square feet and greater that include a new <br />heating, ventilation, and air conditioning (HVAC) system. <br />Funding Sources <br />Comprehensive policies count all <br />public dollars toward the <br />threshold that triggers <br />compliance including: <br />1. Community Development <br />Block Grants (CDBG) <br />2. Bonds <br />3. Tax Increment Financing <br />(TIF) <br />4. HOME Investment <br />Partnership Program <br />5. Housing Redevelopment <br />Authority funds <br />6. Land write-downs <br />7. Low-Income Housing Tax <br />Credits (LIHTC) <br />8. A dedicated Sustainable <br />Building Policy fund <br />9. Any other Federal, State, <br />Regional (e.g., Met <br />Council), or City funding <br />source