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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. Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 2 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. Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 3 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 Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 4 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 Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 5 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. Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 6 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. Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 7 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 Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 8 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 Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 9 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 Approved Minutes Plymouth Housing and Redevelopment Authority August 24, 2023 Page 10 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.