HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 08-24-2023APPROVED MINUTES
PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 24, 2023
MEMBERS PRESENT: Acting Chair Wayne Peterson, Commissioners James Williams, Ronald Kelner, Joel
Spoonheim, and Kim Vohs
ABSENT: Chair Michelle Soderberg
STAFF PRESENT: HRA Executive Director Grant Fernelius, Planning and Development Manager Chloe
McGuire and Permit Technician Michelle Bast
OTHERS PRESENT: Mayor Jeffry Wosje, Stacie Kvilvang of Ehlers, Jody Boedigheimer of Grace
Management, Ed Goldsmith of Outreach Development Corporation
1. CALL TO ORDER
Acting Chair Peterson called the Plymouth Housing and Redevelopment Authority meeting to order
at 7:00 p.m.
2. PUBLIC FORUM
Acting Chair Peterson opened and closed the Public Forum as there was no one present to speak.
3. APPROVE AGENDA
MOTION by Commissioner Williams, seconded by Commissioner Kelner to approve the Agenda.
Vote. 5 Ayes. MOTION passed unanimously.
4. CONSENT AGENDA
4.1. Approved minutes from June 22, 2023.
4.2. Plymouth Towne Square. Accept Monthly Housing Reports and Financials.
4.3. Vicksburg Crossing. Accept Monthly Housing Reports and Financials.
MOTION by Commissioner Kelner, seconded by Commissioner Vohs to approve the Consent
Agenda. Vote. 5 Ayes. MOTION passed unanimously.
5. PUBLIC HEARINGS
5.1. 2022 Community Development Block Grant (CDBG) Consolidated Annual Performance and
Evaluation Report (CAPER) and Notice of Annual Citizen Participation Meetings
HRA Executive Director Fernelius gave an overview of the staff report.
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Commissioner Spoonheim referenced the table within the application and asked if a dollar amount should
be included in each of those areas within the table.
HRA Executive Director Fernelius commented that he was unsure and could clarify that before this moves
to the city council. He believed that this follows the template from previous years, noting that he was not
the one that drafted this application.
Commissioner Spoonheim acknowledged on page ten of the report which identifies goals for affordable
housing and commented that it would be helpful to have discussions with staff about those goals; where
they come from and whether the HRA should be providing input and setting those goals.
HRA Executive Director Fernelius commented that the city adopts a five-year action plan as part of
participation in the program, which is where he suspects those goals come from.
Acting Chair Peterson commented that it was his memory that those goals come from the consortium
and that they do have input in that process.
Commissioner Williams asked if they could look at the previous application to look at those goals which
would provide better understanding of how those goals have progressed.
HRA Executive Director Fernelius confirmed that could be included in the next packet.
Acting Chair Peterson opened and closed the public hearing as no one chose to speak
MOTION by Commissioner Spoonheim, seconded by Commissioner Williams, to recommend
City Council approval and submission of the 2022 Consolidated Annual Performance and Evaluation
Report (CAPER) to the Department of Housing and Urban Development. Vote. 5 Ayes. MOTION
passed unanimously.
6. NEW BUSINESS
6.1. Discussion: Proposed Moderate-Income Housing Policy
HRA Executive Director Fernelius gave an overview of the staff report.
Commissioner Williams noted a missing category of affordable housing, noting that seems to have
transitioned to moderate housing. He stated that the policy should reflect the existing situation in
the community. He stated that there is a waiting list for affordable housing and asked if a larger
impact would be made by first helping those people.
HRA Executive Director Fernelius commented that he is not sure of the history of the policy
change. He stated that if collectively this is important, that should be part of the
recommendation to the city council. He did not disagree that there is a need for affordable
housing.
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Commissioner Vohs asked if the desire is to finalize the language in this document for
presentation to the council or make a recommendation.
Acting Chair Peterson stated that there are two options, the first would be to make a
recommendation to forward this policy while the second would be a more involved process
involving the stakeholders and staff to update the policy.
HRA Executive Director Fernelius stated that if the group believes that updates are necessary, that
could be done by giving direction to staff who could then update the policy. He stated that if
stakeholder input were desired, that clarification would be needed as well.
Commissioner Kelner commented that it appears there are only five cities that have a policy
requiring 30 percent AMI. He was unsure whether there would be enough funding to support the
30 percent AMI level and therefore that may deter developers from coming forward. He
commented that moderate income housing seems to be a compromise in encouraging developers
to provide affordable housing at that level of income. He referenced Cranberry Ridge which was
50 and 60 percent AMI and noted that development filled up within a month.
Commissioner Vohs commented that the split is close to equal between cities that require 30
percent AMI and those that do not.
Commissioner Spoonheim commented that the developer has a choice and is not mandated to
include those affordable units. He stated that including the language for 30 percent AMI within
the policy would open the door for developers to access additional funding opportunities. He
stated that if a developer receives funding from the city, a percentage of units would need to be
provided whether that is a larger percentage of units at the higher AMI or a smaller percentage of
units at the lower AMI. He commented that the chart needs clarification as there is a difference
between broader policies and funding requirements.
Ms. Kvilvang commented that there are 13 metro cities that have a policy, and it is an either-or
choice on the AMI units. She explained that there are discussions between the developer and the
city staff to find the AMI that best meets the goals of the community. She provided additional
details on the funding that would be provided from a city for different projects. She commented
that the policy, as currently written, is somewhat clunky and believed that it could be better
streamlined.
Commissioner Vohs asked the AMI for Cranberry Ridge.
Ms. Kvilvang did not recall the exact mix but noted that there were some units under 60 percent
AMI.
Commissioner Williams referenced the proposed changes from ODC and believed that meets the
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intentions of this group. It was noted that document has not yet been provided into the record
from staff. He asked if there was a time contemplated when that version would be up for
discussion.
HRA Executive Director Fernelius replied that is one of the topics they should talk about tonight in
terms of expectations. He stated that this topic arose between meetings and staff was not clear
on how to proceed. He stated that if there is interest in discussing the content of that, the HRA
should provide that direction. He stated that if they are going to entertain additional stakeholder
input, perhaps they should also consider other perspectives as well.
Acting Chair Peterson recalled in the previous discussion there was desire for one more round of
stakeholder input and thus far ODC is the only one to provide input.
Ms. Kvilvang commented that the only thing that is different in the ODC policy is the option for 30
percent units. She stated that if the desire is to include 30 percent units, the HRA needs to choose
the threshold of those units. She stated that the other area where Plymouth differs from every
other policy is that the Plymouth trigger is financial assistance, where the other communities
trigger with a planning/zoning change as well.
Commissioner Williams commented that he would like to have the best product that they can and
a policy that is as transparent as possible. He understood that the policy would not satisfy
everyone, but it should meet the circumstance and intent of the community. He stated that he
would like to use the document from ODC, which was a redline version, as a baseline. He noted
that there does not seem to be a rush as even if there was a policy, there is not sufficient staffing
to implement that plan.
HRA Executive Director Fernelius commented that while there is not a strict timeline, there are
some projects on the horizon that could benefit from having the policy in place. He agreed that
there is time for staff to make adjustments, but that direction needs to be provided by the HRA.
Commissioner Vohs commented that they received input over one year ago and believed that
they should provide another opportunity for shareholder input, perhaps via a public hearing. He
stated that they would first need to update the policy in order to present something to the public
for additional discussion. He commented that it is the role of the HRA to craft a policy and then
solicit input from ODC, rather than ODC to draft a policy that the HRA provides input on. He
recognized that ODC did have some good points. He stated that he would like to work from the
city document and work towards updated language that could be reviewed by the public.
Commissioner Spoonheim stated that he believes the city draft needs to be amended. He
commented on the makeup of ODC and its Board which specializes in affordable housing. He
believed that 30 percent language should be included as an “or” and believes that the threshold
suggested by ODC would be appropriate. He also believed that the planning/zoning trigger should
be added as mentioned by Ms. Kvilvang. He stated that the ODC draft provided a lot of clarity. He
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suggested redlining the redline version from ODC, which would create a draft that could then be
put out for public comment. He understood that the city is short staffed but noted that it would
be helpful to adopt this policy sooner rather than later as two developments have already come
through without this policy in place. He asked if the changes he suggested could be made before
next month with a public hearing to be held at the next meeting.
Acting Chair Peterson asked if it would be proper to have one member of the HRA, one member
of ODC, one developer, and members of staff meet to discuss this to develop a more concise
statement that could be used as the basis moving forward.
HRA Executive Director Fernelius replied that some clarity has been provided in terms of policy
specifics tonight and believed that staff could make those changes. He stated that he would
prefer to be open and transparent in the process, whether that is stakeholders or the general
public, rather than the meeting as mentioned. He stated that staff could present the updated
policy at the September meeting and could also notice that as a public hearing as mentioned. He
confirmed that staff could meet with ODC, but he would not want to bring in HRA members and
would prefer to keep those meetings open to the public.
Commissioner Vohs stated that he also supports the 30 percent AMI and planning/zoning trigger.
He stated that he also does not like the policy name of moderate income.
Commissioner Spoonheim stated that there is an element of preservation of the investment that
is lacking in the policy which was identified by ODC. He commented that could/should be
included.
Commissioner Vohs suggested that moderate be replaced with affordable in the title of the policy
and throughout. He referenced page 76 of the packet, the bottom of the page, suggesting that
percentage be 125 rather than including 140 percent as well. He stated that on page 77, Item A,
and suggested that it read, “approved by the City Council and HRA”. He noted that he would
make that same change throughout the page.
Acting Chair Peterson commented that he was unsure that would be proper as the city council is
the deciding body, which can overrule other recommending bodies.
Mayor Wosje confirmed that the council is the final body.
Commissioner Vohs agreed to drop that suggestion.
Commissioner Spoonheim referenced the change suggested to 125 percent rather than 140
percent, noting that 140 percent was included in order to align with low-income tax credits which
helps to remove barriers for developers. He noted that the 140 percent would help to create
sustainability long-term.
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Acting Chair Peterson clarified on the intent of those percentages, noting that in this instance
those refer to someone being able to make 125 or 140 percent of the AMI and still being able to
stay in the affordable unit. He did not believe that someone making that amount above the AMI
should be able to stay within the affordable unit.
Ms. Kvilvang commented that would be 140 percent of applicable family size. She stated that she
reviews the annual reports for these cities and rarely does this happen. She commented that
someone should not be booted out of their apartment because they are making slightly more as
people often finish their education. She agreed that 140 percent does align with the federal
standard.
Acting Chair Peterson commented that it would seem there should be a time limit on how long
people can remain at higher income.
Ms. Kvilvang replied that there is no time limit as it is set in federal law. She stated that relating to
30 percent units and the percentage, perhaps the goal should be five percent. She stated that
developers choose what they will do and if the goal is to get 30 percent units, and that is set at 10
percent, developers are not going to choose that. She commented that staff can always negotiate
higher.
Acting Chair Peterson introduced, Ed Goldsmith, member of the ODC Board, commented on his
40-year career experience noting that he previously worked at the Plymouth HRA Manager. He
explained that 140 percent is the industry standard for over income families and is the maximum
that federal programs would allow people to stay within an affordable unit and therefore a lower
standard could be set if desired. He stated that if there is a family over the income limit, the
owner of the building could establish a different rent level for that family which would allow the
family to remain in that unit. He explained that the rent could be set at 30 percent of their new
income. He stated that the other option would be to move the family out of that unit and into a
unit affordable at a higher rent or into a market rate unit. He commented that the role of the HRA
should be to look at the recommendations from ODC to see what they like or dislike and decide if
any of those recommendations should be included in a revised policy for the city.
Commissioner Vohs stated that he would agree to leave the percentage at 140 percent if that is
the industry standard. He referenced page 80 of the packet, noting that he would add H, zoning
changes or comprehensive plan changes. He added he would replace moderate with affordable
wherever moderate appears in the policy.
Acting Chair Peterson stated that each of the members of the HRA could also go through the
document as Commissioner Vohs did to provide their suggestions.
Commissioner Williams stated that he would still like to think they listen to people in the
community. He commented that the community has evolved and there are interesting things
included in the ODC draft.
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Acting Chair Peterson commented that could be part of his input to staff.
Mayor Wosje commented that typically the HRA would discuss potential changes and develop
consensus rather than individually sending things to staff in order to provide clear direction to
staff.
Commissioner Vohs commented that he did try to compare the ODC draft versus the city draft but
there were times the language was very different and that is why he believed they should work
off the city draft, make the revisions and then ask for input.
Commissioner Williams commented that this is a continued cycle as they had a draft, and this was
the input received from ODC that should be reacted to.
Commissioner Spoonheim stated that he would like to simplify this for staff and will make
motions on changes as that will provide clear direction to staff.
MOTION by Commissioner Spoonheim, seconded by Commissioner Williams, to change the
name of the policy from moderate income housing to affordable housing. Vote. 5 Ayes. MOTION
passed unanimously.
MOTION by Commissioner Spoonheim, seconded by Commissioner Williams, to add throughout
the document as appropriate pertaining to 30 percent affordability with a five percent target.
Further discussion: Acting Chair Peterson commented that he does not have enough knowledge to
say that is the right percentage for Plymouth.
HRA Executive Director Fernelius noted that the intent would be to provide that as an option to the
other options.
Vote. 5 Ayes. MOTION passed unanimously.
MOTION by Commissioner Spo onheim, seconded by Commissioner Williams, to add that
assistance that triggers the requirement includes other city assistance meaning a discretionary
action that the city has the authority to take that may include but is not limited to adoption or
changes; modifications, amendments, or exceptions; or waivers to the comprehensive plan, land
use regulations, policies, ordinances, building codes, public infrastructure, right-of-way
modifications, and city fees.
Further discussion: Commissioner Vohs asked about how the comp plan changes.
Planning and Development Manager McGuire replied because of the zoning Plymouth uses, all
apartment projects need to request rezoning, therefore a trigger of financial assistance or zoning
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change would make every new development follow this policy. Developments that fall under comp
plan guidance are the larger projects, such as Four Seasons and Prudential, and those projects
usually have TIF assistance. By including financial assistance and zoning restrictions in this policy it
will make Plymouth one of the most restrictive cities.
Commissioner Spoonheim commented that a project can always request a variance from a policy
and therefore he would prefer to be proactive so that a developer can seek a variance. He said it
will take years to rezone the entire city to align with other cities. He suggests language that the city
can make changes and have discretionary ability.
Commissioner Vohs asked about the comp plan, it is redundant, that if we ask for a zoning change
it will be a comp plan change to trigger the policy there is no need for a separate to include a comp
plan change.
Planning and Economic Development Manager McGuire said it probably is redundant and it sounds
like you do want all possible triggers in the policy then she advises to include all.
Commissioner Spoonheim reread the motion language.
HRA Executive Director Fernelius noted this would be a policy and the council would ultimately
choose which measures to enforce for a development as each development includes negotiation.
Commissioner Kelner commented under this scenario if a developer were to come forward with a
market rate policy, without financial assistance, they would still have to follow this policy. He
stated that is basically telling developers not to come here if they do not want to include some
affordable units.
Commissioner Spoonheim commented that this would set an intention that the city would like to
see this happen, but a developer could still request a variance from the policy. He commented that
there are many examples being built at this time that include moderate income housing at their
own choice.
Mayor Wosje stated that there are two recent developments that have been approved that are full
market rate with no financial assistance. He noted that in the future those projects would be
subject to this policy.
Commissioner Vohs appreciated that Mayor Wosje is present and will be the ongoing liaison. He
noted that the mayor does communicate with other cities and many other cities include zoning
changes as a trigger for the policy. He asked if Mayor Wosje had suggested language that would be
more in line with other cities.
Mayor Wosje agreed with staff that Plymouth zoning is different than other cities, as every project
requires rezoning where other cities would not require the zoning change in certain areas. He
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commented that he does not want to weigh in on the HRA decision and will reserve his thoughts
for the council discussion.
Commissioner Spoonheim commented that including this language would include it in the draft
which will be present to the public when they solicit input. He noted that they can continue to
make changes after the public input is received.
Commissioner Vohs commented his concern is that if the language is too broad, the council may
not approve any of the changes.
Commissioner Spoonheim stated if the intent is to move forward to a public hearing, he would
rather include the more restrictive language as it is easier to move back after the public hearing if
that is the desire, than it would be to become more restrictive. He stated between now and the
public hearing he also intends to do additional research.
Vote. 4 Ayes. 1 Nay (Kelner) MOTION passed.
MOTION by Commissioner Spoonheim, seconded by Commissioner Williams, to add to the
policy, language that clarifies the preservation of affordability upon receipt of city subsidy or
applicable zoning changes.
Further clarification: Commissioner Spoonheim suggested staff and Ehlers work to simplify the
document for clarity. He commented it would be a mistake to not include a preservation element.
Acting Chair Peterson stated that perhaps staff could consider section nine, part three, related to
preservation.
Commissioner Spoonheim agreed. He noted having a stronger policy actually helps developers in
being more competitive for the outside funding they would be soliciting.
Vote. 5 Ayes. MOTION passed unanimously.
Commissioner Spoonheim recognized the shortage of staff and asked that a public hearing be held with
the revised policy at the earliest convenience of staff.
HRA Executive Director Fernelius replied they will work within a time frame that would ideally be
September or October.
7. UPDATES
HRA Executive Director Fernelius provided updates on staffing, capital projects, budgeting, and a
potential study session.
Commissioner Spoonheim referenced special legislation and asked that Ehlers bring back additional
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information to ensure that the city does not miss out on these opportunities. There was additional
discussion about new housing funds provided through the legislature.
Commissioner Vohs inquired about the capital projects at HRA buildings and asked if both those projects
are at Plymouth Towne Square.
HRA Executive Director Fernelius confirmed.
Commissioner Vohs stated there is $700,000 working in the capital fund and $300,000 in the operating
fund for that location and asked why CDBG funds are slated to be used for the capital projects.
HRA Executive Director Fernelius replied using CDBG funds was a staff choice because there are funds
that need to be spent down.
8. ADJOURNMENT
MOTION by Acting Chair Peterson, with no objection, to adjourn the meeting at 8:55 p.m.