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HomeMy WebLinkAboutHousing & Redevelopment Authority Minutes 01-25-2024APPROVED MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY JANUARY 25, 2024 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners Wayne Peterson, James Williams, Ronald Kelner, Joel Spoonheim, Ronald Kelner, Kim Vohs and Tony Kuechle. ABSENT: None STAFF PRESENT: HRA Executive Director Grant Fernelius, Housing Manager Steven Schmidt, Housing and Economic Development Coordinator Shelonda Marie-Alves, Permit Technician Michelle Bast OTHERS PRESENT: Mayor Jeffry Wosje 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:01 p.m. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Williams, seconded by Commissioner Vohs, to approve the agenda. Vote. 7 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approved minutes from December 7, 2023. 4.2. Plymouth Towne Square. Accept Monthly Housing Reports. 4.3. Vicksburg Crossing. Accept Monthly Housing Reports. MOTION by Commissioner Williams, seconded by Commissioner Peterson to approve the Consent Agenda. Vote. 7 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS No public hearings. 6. NEW BUSINESS 6.1. Election of Officers: Chair, Vice-Chair, Secretary Approved Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 2 Chair Soderberg commented that she would be willing to serve an additional term. MOTION by Commissioner Peterson, seconded by Commissioner Williams, to elect Michelle Soderberg as Chair. Vote. 7 Ayes. MOTION passed unanimously. MOTION by Commissioner Williams, seconded by Commissioner Vohs, to elect Wayne Peterson as Vice-Chair. Vote. 7 Ayes. MOTION passed unanimously. MOTION by Chair Soderberg, seconded by Commissioner Williams, to elect Kim Vohs as Secretary. Vote. 7 Ayes. MOTION passed unanimously. 6.2 Discussion and Recommendations for an Inclusionary Housing Policy HRA Executive Director Fernelius gave an overview of the staff report. Commissioner Spoonheim commended staff for incorporating the changes, noting that he would send additional grammatical changes to staff. He referenced the period of affordability, noting that in earlier drafts there was discussion related to that duration. He inquired about reinserting “a minimum of 25 years” as that would provide discretion to match the term from other outside entities that may require a longer term. He stated to ensure long-term affordability, they had discussed whether the city would want to have a first right of refusal to maintain the affordability component. He stated he also appreciates the perspective that would be hard to administer. He asked if there have been examples where cities have managed those first right of refusals to sustain affordability. MOTION by Commissioner Spoonheim, seconded by Commissioner Vohs, to amend the period of affordability to include the language “a minimum of 25 years”. Further discussion: Commissioner Vohs stated that he believes that would be appropriate as some entities that provide funding require a period of 30 years. Vote. 7 Ayes. MOTION passed unanimously. HRA Executive Director Grant Fernelius stated he does not have a lot of experience in his career dealing with that specific situation. He stated one of the concerns of the city attorney with the first right of refusal clause is that once the 25-year period has passed, a potential buyer may see that as an impediment to purchasing the property; therefore, that may be seen as a disincentive to participating in the program. He commented affordable projects include subsidies from different entities that come with their own requirements and therefore he did not believe this situation would occur that often. Commissioner Kuechle said that often causes more issues than one would think because of the required waiting periods and other elements that muddy the process of selling an asset. He provided additional information on the limitations involved for some buyers/sellers along with other requirements that could Approved Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 3 interfere with the sale of property. Commissioner Kelner stated that the intent is to encourage developers to participate in this program. He agreed with Commissioner Kuechle that the first right of refusal creates a stumbling block for getting developers interested in Plymouth. He said he is not in favor of this. Commissioner Kuechle suggested a notice period given to the city when a property is to be sold. Chair Soderberg clarified the notice would only be for properties that meet the requirements of this policy and asked how long the notice period is. Commissioner Kuechle replied a minimum of 30 days Commissioner Williams commented that is a short time period. Commissioner Kuechle replied it will take longer than the notice period to process and this creates opportunities for a city to organize resources if they want to purchase the property. Commissioner Peterson used the example of Lakeview Commons, where there was a group of people that would have liked the opportunity to make an offer. He agreed that the notice period would be a good way to accomplish that goal. Commissioner Vohs asked if the notice period should be more encompassing than this policy, as Lakeview Commons would not have fallen under this policy. MOTION by Commissioner Williams, seconded by Commissioner Peterson, to recommend City Council approval of the Inclusionary Housing Policy. Vote. 6 Ayes. 1 Nay (Kuechle) MOTION passed unanimously. Chair Soderberg stated they are now to discuss the supplemental statement. Commissioner Vohs stated that his concern is with the third paragraph and provided a copy of the alternate suggestion that he provided. He stated that Commissioner Spoonheim also expressed concern. He read aloud his proposed paragraph. He recognized the different roles of each body (HRA, planning commission, city council), but also believed that those are intertwined as well. Commissioner introduced the following text (in italics): While it is not in the purview of the HRA to make zoning/land use policies, as the HRA has discussed the Inclusionary Housing Policy and zoning/land use policy discussions have been inexorably intertwined as it relates to the creation of affordable housing. The Plymouth HRA Strategic Plan adopted March 25, 2021, and reviewed on January 25, 2024, calls for the HRA to be proactive. The Strategic Plan states, Approved Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 4 “Values. The Plymouth HRA is a facilitator and significant contributor to creating an economically healthy and diverse community, which is supportive of quality affordable and workforce housing for all incomes and family sizes.” As the HRA has learned the limitations of an Inclusionary Housing Policy that is not an Ordinance, the HRA is compelled, by its mission and values, to make an advisory statement to the City Council that it consider an Inclusionary Zoning Ordinance, as other Hennepin County communities have done. The HRA would be willing to collaborate with the City Council in this task, as its Mission states. The HRA believes that all policy options should be explored and that the board is prepared to participate in these discussions, as requested. MOTION by Commissioner Vohs, seconded by Commissioner Spoonheim, to substitute the third paragraph with the language that he provided. Further discussion: Chair Soderberg commented that she supports the language as presented by staff. Commissioner Spoonheim commented he seconded the motion because while the HRA is aware of the extensive work it has done on this policy; he believes that the planning commission and city council know very little about the work conducted by the HRA for this policy. He stated the HRA should advise with specificity and believes this language would provide that specificity. He suggested the entire statement begin with the following sentence “The City of Plymouth Comprehensive Plan calls for the creation of addition affordable housing.” He believes additional explanation is needed related to the strategic plan and its direction for affordable housing as well. He said context is needed. Chair Soderberg stated the Strategic Plan has been brought to the city council who approved it. Commissioner Williams commented he has concern with both versions. He did not believe the last sentence is needed in the third paragraph on the staff version. He referenced the second paragraph and expressed concern with the statement for increased density and decreased parking. HRA Executive Director Grant Fernelius stated that language was intended to provide examples of what could be considered. He stated that there are other cities that incentivize affordable housing, and this was merely included to provide an example and could be removed. He stated that there are ways to incentivize affordable housing outside, or in addition to, financial assistance. Commissioner Peterson clarified that the language does not imply that Plymouth has done this, but builds upon the previous sentence. Commissioner Vohs concurred with the suggestion from Commissioner Williams to remove the last sentence. He stated that he would like to strike the last sentence of his proposed third paragraph Approved Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 5 and replace that with the last sentence from the staff drafted suggestion. MOTION by Commissioner Williams, seconded by Commissioner Kelner, to amend the suggested paragraph as described by Commissioner Vohs. Further discussion: Commissioner Peterson requested clarification of the authority of the HRA and its role. He stated perhaps one role of the HRA is to keep reminding the other commissions and governing bodies about affordable housing and its mention within the comprehensive plan and strategic plan. Commissioner Kuechle commented he does not believe this is needed. He stated he believes that this statement adds another level of uncertainty for developers. He stated that he does not like the policy at all. Commissioner Vohs commented that he does not believe that any of these four paragraphs mention a housing project, but just the policy. He stated that in terms of the supplement, he did not think this would limit development in any way. Commissioner Spoonheim commented the supplemental statement is not for the policy but is like a cover letter to be provided to the city council. He stated it could be drafted more as a letter to the council. Commissioner Kuechle stated the Supplemental Statement adds confusion to the policy. Commissioner Spoonheim believed that could be clarified by addressing this in letter format to the city council explaining the work that the HRA has done on this for the past two years. He stated that the last paragraph could be simplified to state that the HRA recommends that the council consider an inclusionary housing ordinance as other cities have done. He noted that would be a more confined version. Commissioner Kuechle commented on some of the things that he considers when coming into a community to consider creating a housing development, along with the research that he does on regulations, the comprehensive plan, and city fees. He stated that if a city has an inclusionary zoning ordinance, he tends to remove that city from consideration. Commissioner Spoonheim recognized that point of view. He noted there are developers with other interests looking for this type of clarity. Commissioner Vohs understood the opposition of Commissioner Kuechle. He noted the policy has already been approved and this discussion is just related to the supplemental statement. He asked why the wording of the supplemental statement would create additional burden or hurdles for a developer. He agreed that this is intended to be a cover letter for the city council. Chair Soderberg commented that is sounds more like the HRA is leaning more towards a cover Approved Minutes Plymouth Housing and Redevelopment Authority January 25, 2024 Page 6 letter and, if so, the motion should be pulled. HRA Executive Director Grant Fernelius commented that perhaps this is more of a transmittal letter and supplemental should not be used. He stated that the substance is more important, and the format could be changed to be a letter or memo. MOTION by Commissioner Kelner, seconded by Commissioner Vohs, to change the name of the supplemental statement to transmittal letter. Vote. 7 Ayes. MOTION passed unanimously. Further discussion: Commissioner Vohs provided a summary of the proposed changes to the document as discussed tonight. He requested to strike two words from his submitted paragraph, removing “strong” and “seriously”. HRA Executive Director Grant Fernelius confirmed the first and second paragraphs would be kept the same as drafted by staff and the third paragraph would be replaced by that provided by Commissioner Vohs, except for that last sentence. And the last paragraph would be amended to delete the two words as just mentioned by Commissioner Vohs. Chair Soderberg noted that this would also be called a transmittal letter rather than a supplemental statement. She asked for a vote on the proposed document as discussed. MOTION by Commissioner Vohs, seconded by Commissioner Spoonheim, to substitute the language in the third paragraph of the Supplemental Statement with the language Commissioner Vohs read into the record. The last sentence of Commissioner Vohs’ language will be omitted, and the last sentence of the original document will be inserted in its place. Additionally, the words ‘strong’ and ‘seriously’ will be omitted. Vote. 5 Ayes. 1 Nay. (Kuechle) 1 Abstained. (Soderberg). MOTION passed. Chair Soderberg thanked staff, recognizing that this has been a long haul over the past two years. 7. UPDATES HRA Executive Director Grant Fernelius provided a verbal update related to development activity and interest. He also provided an update on the city’s legislative funding request and a recent visit from a legislative committee regarding that request. Commissioner Vohs asked about the location of the trailer park property and if that will be preserved. HRA Executive Director Fernelius said that some manufactured homes encroach in the right-of-way. The developer has chosen to dedicate additional right-of-way to resolve that issue. 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:02 p.m.