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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 09-28-2023APPROVED 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 Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 2 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. Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 3 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 Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 4 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. Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 5 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 Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 6 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. Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 7 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 Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 8 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 Approved Minutes Plymouth Housing and Redevelopment Authority September 28, 2023 Page 9 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.