HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 10-26-2023Housing and Redevelopment Authority 1 of 1 October 26, 2023
CITY OF PLYMOUTH
AGENDA
Regular Housing and Redevelopment Authority
October 26, 2023, 7:00 PM
1. CALL TO ORDER
2. PUBLIC FORUM—Individuals may address the HRA about any item not contained on the regular
agenda. A maximum of 15 minutes is allotted for the Forum. If the full 15 minutes are not needed for the
Forum, the HRA will continue with the agenda. The HRA will take no official action on items discussed at
the Forum, with the exception of referral to staff for future report.
3. APPROVE AGENDA —HRA members may add items to the agenda for discussion purposes or staff
direction only. The HRA will not normally take official action on items added to the agenda.
4. CONSENT AGENDA —These items are considered to be routine and will be enacted by one motion.
There will be no separate discussion of these items unless HRA member or citizen so requests, in which
event the item will be removed from the Consent Agenda and placed elsewhere on the agenda.
4.1 HRA Minutes
Housing & Redevelopment Authority Minutes 09-28-2023
5. PUBLIC HEARINGS
6. NEW BUSINESS
6.1 Discussion and Recommendations for an Inclusionary Housing Policy
Draft Inclusionary Housing Policy (10-26-2023).pdf
7. UPDATES
7.1 Staff Updates
HRA Updates (October 2023)
Sketch_Layout (Prudential)
8. ADJOURNMENT
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Regular
Housing and
Redevelopment
Authority
October 26, 2023
Agenda
Number:4.1
To:Dave Callister, City Manager
Prepared by:Grant Fernelius, Community and Economic Development
Director
Reviewed by:
Item:HRA Minutes
1. Action Requested:
Staff recommends approval of the September 28, 2023 HRA Minutes.
2. Background:
The September 28, 2023 minutes are attached.
3. Budget Impact:
N/A
4. Attachments:
Housing & Redevelopment Authority Minutes 09-28-2023
2
DRAFT MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
September 28, 2023
MEMBERS PRESENT: Chairman Michelle Soderberg, Commissioners Wayne Peterson, James
Williams, Joel Spoonheim and Kim Vohs (arrived at approximately 7:10 PM).
ABSENT: Commissioner Ronald Kelner
STAFF PRESENT: HRA Executive Director Grant Fernelius, Housing Manager Steven Schmidt, and
Permit Technician Michelle Bast
OTHERS PRESENT: Mayor Jeffry Wosje, Jody Boedigheimer of Grace Management
1. CALL TO ORDER
Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at
7:00 p.m.
2. PUBLIC FORUM
Chair Soderberg opened and closed the Public Forum as there was no one present to speak.
3. APPROVE AGENDA
Chair Soderberg requested to add an item 6.1, Elect Secretary.
MOTION by Chair Soderberg, seconded by Commissioner Williams, to add item 6.1, Elect
Secretary, to the agenda. Vote. 4 Ayes. MOTION passed unanimously.
MOTION by Commissioner Williams, seconded by Commissioner Peterson, to approve the
agenda as amended. Vote. 4 Ayes. MOTION passed unanimously.
4. CONSENT AGENDA
4.1. Approve HRA Meeting Minutes for August 24, 2023.
4.2. Plymouth Towne Square. Accept Monthly Housing Reports.
4.3. Vicksburg Crossing. Accept Monthly Housing/Marketing Reports.
MOTION by Commissioner Williams, seconded by Commissioner Peterson, to approve the
consent agenda. Vote. 4 Ayes. MOTION passed unanimously.
5. PUBLIC HEARINGS
5.1. Public Hearing Regarding Inclusionary Housing Policy
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September 28, 2023
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HRA Executive Director Fernelius presented an overview of the staff report.
Commissioner Peterson asked and received confirmation from staff that while some items are not
proposed to be added into the policy, they could still be addressed in a case by case basis when
they work through the details of a project. He agreed with that process.
Commissioner Spoonheim commented that it appears that most cities are using discretionary
zoning as a trigger and asked for clarification on whether staff supports that as a tool.
HRA Executive Director Fernelius replied that he is not advocating one way or the other for that
provision. He commented that if there were a 100 percent market rate project that were coming
forward which required a PUD, rezoning, or reguiding, but does not require any financial
assistance, that would trigger the policy if discretionary zoning were used as a trigger, and then
would also trigger a need for financial assistance. He stated that if they are going to require
affordable units because of discretionary zoning, they would also need to understand that will
trigger a need for financial assistance.
Commissioner Spoonheim commented that he would have a different interpretation and believed
that a waiver or exemption could be requested that would resolve that issue. He noted that it
would create an opportunity for that conversation to ensure the needs of the community are
being reviewed. He noted that there are also external resources through the state and other
funding opportunities that would not require the city to always provide the financial assistance.
Commissioner Vohs commented that he shares the opinion of Commissioner Spoonheim related
to zoning. He commented that if the requirement is made up front requiring the affordable units
to remain for a period of time, developers would know that. He commented that often those
types of development projects are refinanced around 15 years.
HRA Executive Director Fernelius clarified that the 25 years referenced in the policy would mean
that if a developer is subject to this policy, they would enter into the agreement to provide a
percentage of affordable units for 25 years. He noted that the 25-year period aligns with other
assistance that can be provided for these types of projects. He commented that there could then
be additional discussions with each developer after that time to determine if that project would
remain affordable after that time.
Commissioner Williams asked what most cities are doing for their time period and the rationale
behind those decisions.
HRA Executive Director Fernelius replied that a 25-year period is consistent among cities.
Chair Soderberg commented that she reviewed regulations of other cities and agreed that 25
years was a common length of time.
Commissioner Williams referenced language related to the tenant’s change of income and asked
what would occur if there are no market rate apartments available in the complex.
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September 28, 2023
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HRA Executive Director Fernelius replied that the goal of the provision would be to allow that
tenant to move to a market rate unit within the development if their income exceeded the
maximum level.
Chair Soderberg replied that the language does state that the tenant would be moved to the first
available market rate unit, therefore they would not be displaced if a unit were not yet available.
Commissioner Vohs commented that developers creating affordable housing have most likely
made a commitment to have a certain number of affordable units in return for funding they
receive and therefore are familiar with the process of moving tenants if their income exceeds the
standards. He commented that if there is not a market rate apartment is not available, the
developer will often let the tenant remain. He did not believe that language needed to be
included in the policy as other regulations would guide that process for the developer.
Chair Soderberg opened the public hearing.
Chair Soderberg introduced Igor Rudenko, 5372 Empire Lane North. He stated that he moved to
Plymouth because of the great quality of life and the great schools. He commented that he was
concerned when he became aware of this issue and therefore is present to speak on behalf of a
group of about 2,200 Eastern European residents and business owners. He expressed concern
with a potential increase in crime and the increased burden this would place on city services. He
expressed a concern with the safety of his family while at the park. He believed that once the
developer has built the project their responsibility would be done and the burden for
maintenance would be placed on the city. He commented that all the comparison cities selected
were within Hennepin County and believed that a broader search should be done. He also
believed that the city should wait to participate in this type of program. He suggested conducting
a referendum to determine if the residents would like affordable housing.
Chair Soderberg introduced Tony Kuechle 15985 55th Avenue N, who stated he is not speaking for
or against affordable housing tonight. He is a private developer of market rate units and wanted
to provide his insight. In his experience these types of policies can provide benefit to both parties,
but they need to be concise. He stated the cost of design for a market rate project is typically
$300,000 per unit and therefore would not want it to be discretionary that affordable units could
be required as that could be the factor that would make a project not feasible. He commented
on additional funding recently approved by the state that the city will have access to. He spoke
about conflicts between zoning and the Comprehensive Plan. He was concerned with some of
the triggers currently included such as outside funding, PUD or zoning changes, infrastructure
improvements, and park dedication. He said there are very limited funding sources. He provided
additional explanation on how the debt is matched to the income source for the project and
described a scenario that if fire causes reconstruction of a unit, or units, that could then seem to
trigger affordable housing and could put a developer into default on their loan. He referenced
the income targets and stated that as written, this would require financial assistance on any
project that includes affordable housing. He noted that would also become discretionary as he is
not sure of the financial packet until they are further into the development process. He agreed
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Plymouth Housing and Redevelopment Authority
September 28, 2023
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that 25 years is a standard term for affordable units. He referenced the language related to
interior/exterior appearance of the affordable units and commented that the language seems to
be in conflict between the two paragraphs. He believes the affordable units should be mixed
throughout the different bedroom options. He commented the city should create a clear and
enforceable standard. He stated the change in income is a standard clause and explained how
that process typically works. He did not believe a separate agreement would be required and that
these standards could be included in a development agreement or TIF agreement. He suggested
the annual audit be kept as simple as possible. He referenced the suggestion that an exemption
be used for a market rate project and noted that he would not want to spend the money
developing plans only to find out he would not receive an exemption.
Commissioner Vohs asked the name of the company the resident works for.
Mr. Kuechle replied that he is with Doran Companies. He commented that they are currently
working on a project in Plymouth that includes affordable units and received TIF funds.
Chair Soderberg introduced Linda Ferguson, 3803 Minnesota Lane North. She said she lives within
walking distance and has confidence in the city council. She stated she would like to share the
things they enjoy in Plymouth with others and does not equate being poor with criminal activity.
She recognized the concern relating to who owns or is responsible for a project after 25 years and
requested clarification. She asked how many buildings would be proposed and where those
projects would be located as she did not find that information to be clear.
Chair Soderberg replied this is a policy for future projects. She commented the city would not be
responsible after 25 years but there had been previous discussion about the city having the first
right of refusal, should a developer want to sell after 25 years. She noted that language was not
included in the draft policy.
Chair Soderberg introduced Mandy Rhead, 14915 32nd Avenue North, who stated that she lives in
walkable distance to the city center. She shared a concern with safety when the population
increases in the city center area. She inquired if there are plans to increase funding for the police
and fire departments if more residents are added to this area. She asked if the affordable units
would be offered only to citizens or whether the units would be offered to immigrants.
HRA Executive Director Fernelius commented that issue is not addressed in this type of policy and
is not something the city would weigh in on.
Chair Soderberg introduced Bob Swanson, 9915 25th Avenue North. He stated he has been a
resident for 30 years. He said he is in favor of affordable housing. He commented that his church
has been studying this issue for two years and it is clear there is a need for affordable housing in
Plymouth as residents making a decent wage cannot afford housing in this community. He
commented that four or five years ago the city supported Cranberry Ridge, which has been an
excellent addition to the community and has operated well. He asked others to limit their fear
and embrace affordable housing as it enriches the community.
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Chair Soderberg introduced Russ Simpson, 3665 Urbandale Lane North, who thanked the HRA for
considering this policy. He stated this is a vibrant community, but the housing is not extensive in
terms of options. He noted people want housing that is affordable for their children or in
retirement. He stated affordable housing also provides a place for people to live that work in the
community. He commented on the lack of zoning in New England where he is originally from that
leads to problems. He commented that the city does a remarkable job maintaining this
community.
Chair Soderberg introduced Marcos Ayala, 3890 Harbor Lane North. He stated they live a few
blocks away and wanted to provide their support for affordable housing. He said his family
previously lived in Willow Woods Estates and their children attended Wayzata Public Schools. He
commented that he and his wife now own a business and, while they did not always live in
affordable housing, it was a step in their journey that allowed them to be successful. He heard
the concerns related to crime and commented that they did not experience issues with crime. He
hopes the HRA will consider the affordable housing policy as it does help people.
Chair Soderberg closed the public hearing.
MOTION by Commissioner Peterson, seconded by Commissioner Spoonheim, to move to
committee of the whole for 15 minutes for the purpose of having a discussion on this topic. Vote.
5 Ayes. MOTION passed unanimously.
Commissioner Peterson provided some grammatic suggestions that he felt would make the
language clearer.
Chair Soderberg commented that including affordable or inclusionary is helpful for developers
and is a common term used by the cities she reviewed.
Commissioner Williams asked if there is a definition of inclusionary.
HRA Executive Director Fernelius replied in the affordable housing industry, inclusionary is a
common term and describes the essence of what a city is attempting to do in providing more
housing options. He noted that word was also part of the previous policy and had been removed
for some reason; it was reinserted because it is in alignment with the goals of the policy and is
commonly used by municipalities.
Commissioner Peterson suggested deleting the first sentence and provided proposed changes to
the second paragraph to include units affordable to those below AMI.
Commissioner Vohs commented that he agrees with the changes but would keep inclusionary in
the policy title.
Chair Soderberg expressed concern with the other city assistance paragraph. She noted examples
were provided tonight from the developer that could trigger this policy. She said if someone was
asking for something big the policy would be triggered but struggled to reason the necessity of
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September 28, 2023
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triggering the policy for smaller things that could come up such as eliminating three parking stalls
or constructing a required turn lane.
Commissioner Vohs commented the developer that spoke was talking about changes he was
paying for and believed those would not trigger the policy. He understood that the policy would
be triggered if assistance were requested for those items. He noted his experience in the area of
affordable housing and stated that there should be a line drawn so that every little thing does not
trigger the policy. He commented that under other city assistance there are items such as a
comprehensive plan amendment that would be a large change and should trigger the policy, while
smaller items or items that involve outside entities should not trigger the policy.
Chair Soderberg asked staff for clarification.
HRA Executive Director Fernelius commented that this language was provided by ODC and
discussed at the last meeting. He commented this essentially include most actions that involve
discretionary action by the city. He suggested the commission have a discussion on where it is
collectively on whether affordable housing should be required when a developer is not requesting
financial assistance. He stated that once that position is known, staff could finesse the language.
Commissioner Peterson asked Commissioner Spoonheim to recap his reason for including this list
in the motion at the last meeting.
Commissioner Spoonheim commented he has considered the feedback from the developer about
the need for conciseness. He noted that the absence of this policy is creating confusion for
developers and is also creating a barrier for developers to receive appropriate funding. He stated
the discretionary triggers for other cities are more condensed in terms of zoning changes rather
than all the items listed in the draft. He agreed that the smaller items should not be triggering
this policy. He believed there should be discretionary triggers but should be more focused,
narrowing down to the zoning related items.
MOTION by Commissioner Peterson, seconded by Commissioner Williams to extend committee
of the whole for an additional 15 minutes for the purpose of having a discussion on this topic.
Vote. 5 Ayes. MOTION passed unanimously.
Commissioner Williams stated that when he reviewed this, he was concerned about waiving
exceptions to environmental considerations. He stated perhaps additional language could be
added that would provide environmental protections for a waiver.
Commissioner Vohs agreed there should be some restrictions but also supports the comments of
Commissioner Spoonheim to better focus the discretionary triggers.
Commissioner Spoonheim clarified that he would keep A, C and D for the discretionary triggers.
Commissioners Vohs and Peterson agreed.
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September 28, 2023
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Chair Soderberg also agreed but would want to acknowledge this could potentially trigger a need
for city assistance.
Commissioner Spoonheim disagreed and stated that would not trigger affordable housing but a
conversation to determine whether it would be feasible to add affordable housing to a project.
He noted there could then be a discussion of the tools the city has in terms of funding for
affordable housing, if that were appropriate. He noted significant funding for affordable housing
would not be provided by the city but by the state.
Commissioner Williams also agreed with the suggestions to limit the discretionary triggers to A,
C, and D.
Chair Soderberg asked how language suggestions and typos could be addressed.
HRA Executive Director Fernelius commented that staff could clean up that language.
Commissioner Peterson provided additional grammatical suggestions.
Chair Soderberg also provided grammatical suggestions.
Commissioner Spoonheim provided some grammatical suggestions. He asked if redevelopment
would trigger the policy as that could remove older, more affordable housing units to make way
for newer, more expensive housing. He asked if an older building with affordable housing is torn
down would that trigger the policy.
Commission Peterson said if the project is market rate the policy would not be triggered.
Commissioner Vohs said policy is triggered if city assistance is sought.
Chair Soderberg mentioned NOAH (Naturally Occurring Affordable Housing) housing and said that
needs to be addressed.
MOTION by Commissioner Vohs, seconded by Commissioner Williams, to extend the committee
of the whole for an additional 10 minutes for the purpose of having a discussion on this topic.
Vote. 5 Ayes. MOTION passed unanimously.
Commissioner Spoonheim used the example where older buildings are sold and torn down, which
displaces families. He noted those are examples of naturally occurring affordable housing (NOAH)
that were redeveloped into market rate buildings and the families that are displaced have no
where to go. He commented that ten percent of seniors in this community live on under $15,000
per year. He commented that demolition of naturally occurring affordable housing without
replacement should be addressed.
HRA Executive Director Fernelius understood the point but believed that the group is wandering
into territory that would require legal guidance. He stated if that scenario described were to
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September 28, 2023
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happen, there would most likely be a zoning or land use request that would trigger the policy but
there would then be a legal question related to legal use of the property. He stated that staff
could bring back legal input on that issue for the next meeting.
Commissioner Williams asked why the definition of units does not include triplexes or fourplexes.
HRA Executive Director Fernelius commented that clarifying language could be added.
Commissioner Vohs commented he also does not think this policy and the requirement for
affordable housing would cost the city money. He commented there is often thought to be a
correlation between affordable housing and crime. He stated that a number of studies have been
done to disprove that thought. He then provided some suggested language changes and provided
an example of where he believes the policy could be an overreach involving outside funding. He
also noted in the case that those outside funding sources are secured, that will require a local
funding contribution from the city, which would also trigger the policy and therefore the
statement is redundant.
Commissioner Spoonheim agreed with the suggestions of Commissioner Vohs to strike H and I
from financial assistance.
Chair Soderberg commented that staff will incorporate the changes and suggestions, and this will
be revisited at the next meeting.
Commissioner Spoonheim commented on the input received from a resident related to safety in
the neighborhood and wanted to address that comment. He acknowledged the comments
received about city center. He stated the density proposed in city center is not part of this
discussion and is not something the HRA can act on. He commented that Plymouth residents
want more restaurants and services and the reason those are not coming is because more
residents are needed to attract developers. He noted that density is not related to crime. He
thanked the residents for providing input tonight.
Commissioner Vohs commented that most cities have people leaving to work in other places,
whereas Plymouth has more people coming to work here but they cannot afford to live here.
Mayor Wosje said before COVID there were over 60,000 jobs in the city where people were
coming to work but now more people are working remotely, there are about 54,000 people
coming to work here. He stated there is a lot of manufacturing in Plymouth with people making
$30 to $35 per hour. He noted that people can purchase the same size home in a different
community for a lesser price than Plymouth and therefore choose to live somewhere else. Met
Council has conducted a study showing that the highway 55 corridor has the highest reverse
commute between Corcoran, Medina and Plymouth where people travel to jobs in Plymouth and
Golden Valley.
6. NEW BUSINESS
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6.1. Elect Secretary
Chair Soderberg asked if anyone was interested in the position.
Commissioner Vohs volunteered.
MOTION by Chair Soderberg, seconded by Commissioner Peterson, to elect Commissioner Vohs
as Secretary of the HRA. Vote. 5 Ayes. MOTION passed unanimously.
7. UPDATES
Commissioner Vohs commented that he would like the HRA to stay informed on housing related
development requests.
Chair Soderberg confirmed that is the intent of this agenda item.
Commissioner Vohs referenced the sun valley mobile home park, which is a form of affordable
housing, and provided input on some review he had done of that park. He stated that perhaps
there could be outreach to advise the residents about funds that could be available to rehabilitate
that housing stock.
Commissioner Williams stated that he would be interested in a list of projects that are occurring
or on the horizon so that they could stay informed.
HRA Executive Director Fernelius confirmed that he could put together that type of list to share
with the HRA. He then introduced the newest member of staff, Housing Manager Steven Schmidt.
He reviewed his verbal update to the group.
8. ADJOURNMENT
MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 9:09 p.m.
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Regular
Housing and
Redevelopment
Authority
October 26, 2023
Agenda
Number:6.1
To:Housing and Redevelopment Authority
Prepared by:Grant Fernelius, Community and Economic Development
Director
Reviewed by:Grant Fernelius, Community and Economic Development
Director
Item:Discussion and Recommendations for an Inclusionary Housing
Policy
1. Action Requested:
Staff is requesting that the HRA discuss and then make a recommendation to the City Council on
adoption of an Inclusionary Housing Policy.
2. Background:
In 2022, the HRA discussed a proposed policy to encourage the development of additional
affordable housing in the city. The policy was formulated with the help of several different
stakeholder groups and discussed by the HRA at their July, August and September 2022 meetings. At
the September 2022 meeting the HRA ultimately chose to delay action on the policy to a future date.
The item was on hold until June 2023 when the HRA requested to bring the policy back for further
discussion.
At the August 24, 2023 meeting the HRA reviewed the 2022 draft moderate income policy and
requested several changes. The board also requested that a public hearing be held at the
September meeting to review the policy and allow for public input.
At the September 28, 2023 meeting, the HRA reviewed the policy once again and conducted a public
hearing. A total of 7 residents testified at the hearing. The comments received are reflected in the
meeting minutes. The HRA suggested the following changes:
1) Clean-up minor grammatical errors throughout the document and revise the introductory
paragraphs that had several redundant statements about the purpose of the policy. Those changes
have been incorporated.
2) Reduce or limit the type of discretionary actions that would trigger the policy to those impacting
the Comprehensive Plan; zoning or land use policies/ordinances; or the use of Planned Unit
Developments (PUD) to approve a project. Staff reviewed the draft policy with the city attorney and
based his guidance, the policy for discretionary actions should be limited to Planned Unit
Development (PUD). The city does have a relatively higher amount of discretion when it comes to
PUD's and often times there are negotiations that take place achieve various land use and comp plan
goals. There is less discretion on other zoning matters and its important to avoid a challenge that
the city is overreaching legally on what it can require through housing policy.
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3) The policy should clarify what happens in situations when an existing apartment building or
Naturally Occurring Affordable Housing (NOAH) is demolished or substantially rehabilitated and
existing tenants are displaced. Staff did revise the policy to include existing apartments that
undergo substantial rehab or are demolished, but only if city assistance is provided or discretionary
decisions are made. Staff does not believe the policy should be a deterrent to reinvestment in
existing housing stock.
4) The policy should be expanded to include triplexes and fourplexes. Those housing types have
been added to the definitions section of the policy.
5) With regard to City Assistance, the policy should remove outside funding sources that already
include affordable housing requirements. The previous draft referenced a program from the
Federal Home Loan Bank, as well as federal, state, county and Met Council funding. The board felt it
was unnecessary to add those programs since many already include some element of housing
affordability. Those references were deleted.
Lastly, there was a question raised after the meeting about whether the policy applies to new
single-family developments. The existing language was confusing because it referenced
single-family housing in various places but was not included in the list of eligible projects. Staff
believes this was an oversight and has clarified that the policy applies to any new residential
developments of 10 or more units.
Staff has also invited the city attorney (Soren Mattick) to attend and help answer questions the HRA
may have about the topic.
3. Budget Impact:
Previous staff reports suggest that the city could incur some costs for compliance activities related
to this policy. Those impacts will need to be considered as part of any future implementation.
4. Attachments:
Draft Inclusionary Housing Policy (10-26-2023).pdf
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1
Inclusionary Housing Policy
(HRA Packet: 10/26/2023)
The City recognizes the need to provide affordable housing for a broad range of income levels to
maintain a diverse population and attract residents to live or work in the city. This Policy has
been created to ensure that a reasonable proportion of each new residential Development
receiving City financial assistance or requesting Planned Unit Development (PUD) approval
include units affordable to low and moderate income households (generally defined as 30% to 80%
of Area Median Income). The requirements set forth in this Policy further the City’s Housing Goals
and the Comprehensive Plan to create and preserve affordable housing opportunities.
I. Definitions
1. City Financial Assistance: The use of public funds of, or administered by, the City for any
new residential development, including but not limited to:
A. City or HRA funds or fee waivers;
B. Community Development Block Grant (CDBG);
C. Housing Rehabilitation Fund;
D. Revenue Bonds (private activity bonds are negotiable);
E. Tax Increment Financing (TIF);
F. Tax Abatement;
G. Land Write Downs;
2. Discretionary Actions: A decision or action that the City has the authority to take, or
request from or make application to other governmental entities to take, that without
such action, a proposed development or project would not be possible to be
accomplished. Such decisions or actions include, the adoption of or changes,
modifications, amendments, exceptions or waivers to:
A. Planned Unit Development (PUD)
3. Unit(s): Apartment, housing condominium, townhome, duplex, triplex, fourplex or a
single-family dwelling.
4. Development: Any undertaking to provide residential dwelling Units to which requests for
City Financial Assistance or other Discretionary Actions are made of the City.
II. Applicability and Minimum Development Size
This Inclusionary Housing Policy applies to all new residential Developments and some existing
multi-family dwellings that receive either City Assistance or a Discretionary Action and meet the
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following thresholds:
(1) new Developments that create at least 10 dwelling Units; or
(2) reconstruction, expansion or demolition an existing residential multi-family
building that will contain after completion of such alteration at least 10
dwelling Units,
(3) any change in use of all or part of an existing building from a non-
residential use to a residential use that includes at least 10 dwelling
Units.
III. Affordable Dwelling Units
General requirements
To ensure affordability, the City requires that (i) a certain percentage of Units in a Development
are reserved for and leased or sold to individuals or families of low or moderate-income as
described in this section, and (ii) that the rents for such Units remain affordable for such
individuals and families, or, in the case of the sale of a Unit, that the sale price at the time of sale
is affordable for such individuals and families.
(i) Number of Affordable Units
A Development that is subject to this Policy shall provide a number of affordable dwelling Units equal to
the percentages cited below, times the total number of Units in the Development. The required
number of affordable dwelling Units is based on the total number of dwelling Units that are
approved by the City. If the final calculation includes a fraction, the fraction shall be rounded to the
nearest whole number.
(ii) Income Targets
The required number of affordable dwelling Units within a residential Development subject to this
policy shall be reserved for and either leased to or sold to individuals or families who meet the income
thresholds as outlined below . The Developer can select the level of affordability that is appropriate
for their project:
(1) Rental Developments:
A. At least twenty percent (20%) of the Units shall be reserved for and leased to
individuals or families whose household income does not exceed sixty
percent (60%) of the Area Median Income (AMI); or
B. At least ten percent (10%) of the Units shall be reserved for and
leased to individuals and families whose household income
does not exceed fifty percent (50%) of the Area Median Income; or
C. At least five percent (5%) of the Units shall be reserved for and leased to
individuals or families whose household income does not exceed thirty
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3
percent (30%) of the Area Median Income (AMI).
(2) For-Sale Developments:
A. At least fifteen percent (15%) of the Units shall be reserved for and sold to
individuals or families whose household income does not exceed eighty percent
(80%) of the Area Median Income (AMI).
(iii) Rent and Sale Price Levels
Rental Unit: The monthly rental price for affordable dwelling Units shall include rent and utility
costs and shall be based on the applicable Area Median Income (AMI) for the Twin Cities
metropolitan area adjusted for bedroom size and calculated annually by Minnesota Housing for
establishing rent limits for the Housing Tax Credit Program.
For-Sale Developments: The qualifying sale price for an owner-occupied affordable dwelling Unit
shall be based on the applicable amount affordable to household or individual at 80% Area
Median Income (AMI) for the metropolitan area and calculated annually by Minnesota Housing
for the Impact Fund program.
Period of Affordability
For rental Developments subject to this Policy, the period of affordability for the affordable
dwelling Units shall be twenty-five (25) years. Units of for sale Developments shall be subject to
this policy until sold to the income eligible owner(s).
Standards for Affordable Rental Units
Size and Design of Affordable Units
The size and design of the affordable dwelling Units should be consistent and comparable with
the market rate Units in the project and are subject to the approval of the City.
Exterior/Interior Appearance.
The exterior materials and design of the affordable dwelling Units in any Development subject
to these regulations shall be indistinguishable in style and quality with the market rate Units in
the Development. The interior finish and quality of construction of the affordable dwelling units
shall at a minimum be comparable to entry level rental or ownership housing in the City.
Construction of the affordable dwelling Units shall be concurrent with construction of market rate
dwelling Units.
IV. Integration of Affordable Dwelling Units
Distribution of affordable housing Units.
The affordable dwelling Units shall be incorporated into the overall Development unless
expressly allowed to be located in a separate building or a different location approved by the
City Council. Affordable dwelling Units shall be distributed equally by bedroom size and
throughout the building.
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Number of bedrooms in the affordable Units.
The affordable dwelling Units shall have a number of bedrooms in the approximate proportion
as the market rate Units unless the developer demonstrates the need for a different proportion
based upon a documented need for such units within the City . The mix of Unit types, both
bedroom and accessible Units, of the affordable dwelling Units shall be approved by the City.
Tenants Change of Income
Affordable rental dwelling Units shall be rented only to income eligible families during the period
of affordability. An income eligible family may remain in the affordable dwelling Unit for
additional rental periods as long as the income of the family does not exceed one-hundred forty
percent (140%) of the applicable AMI. If the family income exceeds this amount they must be
moved to the first available market rate Unit that meets their household size.
V. Alternatives to On-Site Development of Affordable Dwelling Units
This section provides alternatives to the construction of onsite affordable dwelling Units as
a way to comply with this Policy. The alternatives are listed in subsection (3), below.
(1) The alternatives must be:
A. Approved by the City Council, and
B. Agreed to by the applicant in a separate agreement.
C. Applicant must show the City acceptable documentation that a
formal commitment to the proposed alternative is in place.
(2) This Section does not apply unless the applicant demonstrates:
A. The alternative provides an amount of affordable moderate-income
dwelling Units equivalent or greater to onsite Units in a way that the City
determines better achieves the goals, objectives and policies stated in the
Housing Goals and Comprehensive Plan; and
B. Will not cause the City to incur any net cost as a result of the alternative
compliance mechanism.
(3) If the conditions in (2) are met, the City may approve one or more of the
following options to providing affordable moderate-income dwelling Units that
are required by this Policy.
A. The dedication of existing market rate Units to permanently affordable
moderate-income dwelling Units that are of equivalent quality and size.
Existing dwelling Units are approved as suitable affordable housing
dwelling units through covenants, contractual arrangements, or resale
restrictions.
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B. Offsite construction of affordable dwelling Units within the City. Offsite
construction of units should be located in proximity to public transit service
at a site approved by the City.
C. Participation in the construction of affordable dwelling Units by another
developer on a different site within the City.
D. An alternative proposed by the applicant that directly provides or enables
the provision of affordable housing Units within the City.
VI. Non-Discrimination Based on Rent Subsidies:
Developments covered by the policy must not discriminate against tenants paying rent with
federal, state or local public assistance, including, but not limited to rental assistance, rent
supplements, and Housing Choice Vouchers.
VII. Housing Performance Agreement
(1) Applicability
Developments that are subject to this Policy shall enter into a Housing Performance
Agreement as described below, which documents how the developer complies with
each of the applicable requirements of this Policy.
(2) Approval
The Housing Performance Agreement shall be approved by the City.
(3) Contents.
The Housing Performance Agreement shall include at least the following:
A. General information about the nature and scope of the development
subject to these regulations.
B. For requests to an alternative to on-site provision of affordable housing,
evidence that the proposed alternative will further affordable housing
opportunities in the City to an equivalent or greater extent than
compliance with the otherwise applicable on-site requirements of this
Policy.
C. The total number of market rate Units and affordable dwelling Units in the
development by bedroom size and income threshold.
D. The pricing for each affordable ownership dwelling Unit. The pricing of each
unit shall be determined at time of approval. At time of sale this price may
be adjusted if there has been a change in the median income or a change
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in the formulas used in this ordinance.
E. Proposed schedule of individual Unit development (market rate
vs. affordable units).
F. For owner-occupied units, documentation and specifications regarding the
exterior appearance, materials and finishes of the development for each of
the affordable dwelling units illustrating that the appearance of affordable
Units are comparable to the appearance of the market-rate Units.
G. Any and all other information that City staff may request to achieve
the Council’s affordable housing goals.
VIII. Recorded Agreements, Conditions and Restrictions
(1) The Housing Performance Agreement and/or Declaration of Restrictive Covenants
shall be executed between the City and Developer, in a form approved by the City
Attorney, which formally sets forth Development approval and requirements to
achieve affordable housing in accordance with this Policy and location criteria. The
Housing Performance Agreement shall identify:
A. the location, number, type, and size of affordable housing Units to
be constructed; and
B. income limitations for the affordable Units; and
C. sales and/or rental terms; occupancy requirements; and
D. a timetable for completion of the Units; and
E. restrictions that will be placed on the Units to ensure affordability; and
F. annual rental tenant income and rent reporting requirements; and
G. any terms contained in the approval resolution by the City as applicable.
(2) The applicant or owner shall execute any and all documents deemed necessary by
the City Manager, including, without limitation, a Declaration of Restrictive
Covenants and other related instruments, to ensure the affordability of the
affordable housing Units in accordance with this Policy.
(3) The applicant or owner must record all documents, restrictions, easements,
covenants, and/or agreements that are specified by the City as conditions of
approval of the application prior to issuance of a building Permit for any
Development subject to this Policy.
(4) Documents described above shall be recorded in the
Hennepin County Registry of Deeds as appropriate.
IX. Exemptions
The City acknowledges that, in some circumstances, it may prove difficult for a developer to meet
the standards set forth in this Policy. In cases where a developer can demonstrate, in the sole
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judgment of the City Council, that the requirements represent an undue burden to their project,
the City Council may grant a full or partial exemption from this Policy or may otherwise alter the
requirements of this Policy
X. State and Federal Law
This Policy is not to be interpreted, nor intended to be in conflict with state or federal law. If any
portion of this Policy is determined to be in conflict, state or federal law will control. Many state
and federal law programs provide for similar regulations regarding affordability to
Project/Developments. In such instances where participation in state or federal law programs
providing financial assistance to a Development results in more strict regulations regarding
affordability, such Development will be deemed to have met the requirements of this Policy.
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Regular
Housing and
Redevelopment
Authority
October 26, 2023
Agenda
Number:7.1
To:Dave Callister, City Manager
Prepared by:Grant Fernelius, Community and Economic Development
Director
Reviewed by:
Item:Staff Updates
1. Action Requested:
Receive update from staff on various projects and activities.
2. Background:
As requested at the last meeting, staff has prepared the attached memo updating the HRA on
various projects and activities involving the Community and Economic Development Department.
3. Budget Impact:
N/A
4. Attachments:
HRA Updates (October 2023)
Sketch_Layout (Prudential)
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MEMORANDUM
DATE: October 19, 2023
TO: HRA Commissioners
FROM: Grant Fernelius, HRA Executive Director/CED Director
SUBJECT: Updates for October 2023
As requested, staff has prepared the following updates on projects and activities of the
Community and Economic Development Department.
Four Seasons Mall
Earlier this year the city and Wellington Management chose to part ways and discontinue their
negotiations for redevelopment of the former shopping mall. The parties were far apart
financially on a deal. The city acknowledges this is a challenging site and has been prepared to
offer various tools, including tax increment financing. Unfortunately, the gap was simply to big
to overcome. Since then, staff has been in informal discussions with another developer. Those
talks are on-going. No formal plans have been submitted as this point.
Prudential Redevelopment
Scannell and Roers Co. received approval at the September 26th city council meeting for a
Comprehensive Plan amendment that will re-guide the site from its current Office designation
to Mixed-Use Development (future use). The MXD designation would allow for range of land
uses including housing, commercial/retail and med-tech. The Comp Plan amendment is the
first step in the process. Future steps will include rezoning, re-platting and one or more site
plans for the individual projects. At this point, the developer has a concept plan (attached), but
no specific details about individual development components. Building demolition and site is
anticipated to start some time in 2024.
Dietrich Development
Earlier this year, Dietrich Development presented a sketch plan for a mixed-use (apartments
and retail) project on a vacant parcel of near 10th Avenue and South Shore Drive. This parcel is
often referred to the John Allen site, the developer who originally bought the property in
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1990’s. The Dietrich proposal includes 330 units of apartments and a small amount of ground
floor retail. Since last spring the developer has been working on their financing. The developer
is still evaluating options unit mixes and level of affordability. We don’t a timeline on next
steps, but at some point the developer will need to go through a formal site plan application
process. Any requests for development assistance will be also need to be evaluated.
Parkera Development
Parkera which redeveloping the former Dundee Nursery site along Highway 55, is requesting an
extension of their PUD approval that was originally granted in 2021. The company cited rising
interest rates and construction costs as the reason the delay. They are asking the city council
for a 2-year extension, which will be considered on October 24th. TCO Had their grand opening
on October 7th and the event was well attended.
The Brooks Apartments
Enclave Companies continues on the construction of their new apartment building near Nathan
Lane and Bass Lake Rd. The 219-unit complex is expected to open in late 2024.
City Center
As follow-up to adoption of the City Center 2.0 plan, the City Council approved updated zoning
code changes and new design standards in September. The goal is to revitalize the area that
serves as Downtown Plymouth and encourage new investments in housing, retail,
entertainment and other activities. As part of the plan, the city will also make some significant
infrastructure improvements. Plymouth Blvd. will be reconstructed between Highway 55 and
Rockford Rd. beginning in 2024. Additional details can be found here: Plymouth Boulevard
Rehabilitation Project | City of Plymouth, MN (plymouthmn.gov)
In addition to Plymouth Blvd. the City is also looking to add a 4th sheet of ice at the Plymouth Ice Center;
construct regional stormwater ponding to address needs throughout City Center; add a parking ramp
that would serve multiple users at the Hilde, LifeTime and potentially serve commuters for a transit stop
that would be part of a new Bus Rapid Transit (BRT) line along Highway 55.
Development News
Other development news can be found on the CED webpage. Link here: Development Happenings | City
of Plymouth, MN (plymouthmn.gov)
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