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HomeMy WebLinkAboutCity Council Minutes 12-19-1994 SpecialMINUTES SPECIAL COUNCIL MEETING DECEMBER 19, 1994 A special meeting of the Plymouth City Council was called to order by Mayor Tierney at 5:45 p.m. in the Council Chambers of the City Center, 3400 Plymouth Blvd., on December 19, 1994. PRESENT: Mayor Tierney; Councilmembers Edson, Granath, Helliwell, and Lymangood. Councilmember Anderson arrived at 6:00 p.m. Tim Wold was also present. ABSENT: None. STAFF PRESENT: City Manager Johnson, Assistant Manager Lueckert, Public Works Director Moore, Community Development Director Hurlburt, Housing Supervisor Goldsmith, Housing Intern Urban, and City Clerk Ahrens. ALSO PRESENT: David Crain, Plymouth HRA; Marjie McFarland, HRA; Bob Renner, Metropolitan Legislative Commission (MLC); Cindy Thomas, Public Policy Research. Bob Renner, MLC, said that two years ago, Representative Myron Orfield initiated legislation that required cities to abide by affordable housing quotas or lose LGA or HACA aid. That bill passed the house and senate, but was vetoed by the Governor. The following year, Representative Orfield initiated legislation that amended fiscal disparities to include higher valued homes. That bill also passed the house and senate, but was vetoed by the Governor. In the 1995 legislative session, it appears unlikely that Representative Orfield will compromise on these issues. He believes that Representative Orfield plans to introduce legislation that would place a 10 percent property tax surcharge on homes over $150,000 in value. The MLC requested a study on housing in the 13 member suburbs. He said that the results of that study are being shared to bring local officials up to date on the housing debate and to get develop legislative initiatives for the upcoming session. Mr. Renner introduced Cindy Thomas, Public Policy Research, who conducted the survey of the 13 member communities. He said the base of information somewhat refutes the statements by Representative Orfield. The study shows that land prices are pushing the issue of lack of affordable housing. He said that building affordable housing in the suburbs alone is not the sole cure for reducing the decay of the core cities. Jobs should be provided for people in the core cities, transportation provided to the suburbs, or the taxation/worker compensation laws need to be addressed to get manufacturing jobs back. Mr. Renner said that the MLC agrees there is an affordable housing problem, but believes there is a need to redirect the solution. Special Council Meeting December 19, 1994 Page 2 Cindy Thomas, Public Policy Research, said that Representative Orfield is not addressing the underlying issues that are driving the need for affordable housing. People lack English skills, transportation, education, and full-time employment. She said that some of the statistics used by Representative Orfield, such as the school lunch program participation rates, are flawed. Ms. Thomas shared the following conclusions of her housing study. The affordable housing debate in Minnesota has been primarily focused on zoning practices by selected cities, and the conclusions in these studies have been reached without using scientific methodology. The public policy debate has generally taken a simplistic view of lower- income households. Suburban cities within the seven -county metro area have actively established multi -family housing containing affordable rental units for low- and moderate - income households. The discussion of affordable housing and access to job opportunities has not made a distinction between the types of manufacturing jobs being created and lost. Very little public policy consideration has been given to the structural and financial commitment necessary to greatly expand public transit throughout the seven county area. The discussion on affordable housing has inaccurately suggested that most homes in the suburbs are beyond the reach of many households. There is evidence in the land economic literature to suggest that the Metropolitan Urban Service Area line, established by the Metropolitan Council, may be increasing the cost of land in the Twin Cities and causing urban sprawl as families seek less costly land beyond the seven county area. The cost of housing and the cost of its maintenance are linked to the age of the housing units --newer homes cost more to purchase and older homes cost more to maintain. Over half of the Minneapolis and St. Paul housing stock was built prior to 1940; half of the housing in the suburbs was built in the last 10 years. This study found several examples of questionable data being used in the public policy debate on affordable housing. Housing Supervisor Goldsmith stated that city staff has also been studying affordable housing issues. Since 1970, the cost of housing has been rising at a rate higher than incomes. He said there are almost 1,000 households in each category of median income that are paying greater than 50 percent of their income for housing. About 74 percent of all CDBG money received by Plymouth has been used for housing related issues, and he described the various affordable housing programs offered through the HRA and other efforts. Plymouth zoning regulations are similar to other developing suburbs, and there are some regulations that create additional costs to housing. He said that the current land prices make the cost of developing affordable housing prohibitive, and the City is running out of residential land which only increases the price of land. The City's large lot size requirements increase the total cost of purchasing and developing housing. There is also a need for a community to meet life cycle housing needs. As people move through their life cycle, housing needs change. He suggested that the Council consider how the City will meet the housing needs of its citizens in 10, 20 and 30 years? Will people have to move to other communities when their housing needs change? Will Plymouth be left with an oversupply of large single family homes? What Special Council Meeting December 19, 1994 Page 3 household types live in Plymouth? At what stage are people in the housing life cycles? What income levels live in Plymouth? What income levels work in Plymouth? What variety of housing types is available in the City? What variety of housing prices is available? What variety of housing tenure is available? What changes can be expected to occur in housing need and demand? He stated that a current Metropolitan Council policy emphasizes the linking of jobs, transportation and housing within the metropolitan region. Using this approach, community plans should focus on the types of jobs that are available in the community, or group of communities, and whether or not people who work in these jobs can afford to live in the area. Councilmember Helliwell said she is aware of situations where an elderly person has had to move to another community. Even though they were raised here, they couldn't afford to continue living here. She is concerned with the number of large homes being developed and believes that more housing types are needed. Full-time job opportunities are often not available, and her concern is also improving business and manufacturing development. She feels that transportation and jobs play a major role in the entire housing issue. Ms. Thomas said the next phase is to suggest positive solutions, such as ways to encourage affordable housing and enhance public transit in the suburbs. Bob Renner said the MLC will need direction from its member cities on the direction to take. One solution could be addressing transportation with the MTC and suggesting additional routes to the suburbs. Councilmember Lymangood stated that he believes the MLC is being reactive to this issue. A proactive response would define the problem and reasons for the problem, find solutions, and then solicit support. He quoted from the MLC study that "Inherent in the argument of Orfreld and others and many democrats is that the core problem with underclass poverty is that once poor people are dispersed metro -wide, they begin to act middle-class." He asked where anyone has demonstrated that to be fact. He said that the report justifies our policies, rather than suggesting solutions. He believes that time would be better spent working on resolving the issues, such as building a house, that debating the problem and its causes. He believes that proactive action is needed; not additional studies, reports, and debates. David Crain, HRA, said that there has been a noisy political debate on affordable housing the last few years. He said that lack of affordable housing is truly a regional issue and a Plymouth issue. There are too many people who are spending half of their income or more on housing. Whatever the exact numbers may be, the problem needs to be addressed. Special Council Meeting December 19, 1994 Page 4 Mayor Tierney noted there are also national issues that impact the housing issue, such as the future of HUD. Supervisor Goldsmith said there are issues that get missed that relate to this issue. Some children and parents of Plymouth residents have to live elsewhere because there is not affordable housing here. Affordable housing is only a piece of the issue. There are also issues of health, education, drug addiction, etc. Councilmember Granath stated that he will provide his suggests through written input to Mr. Renner on this issue. Director Hurlburt stated that a lot of data has been collected. She agreed that we are not most productive when debating data, but believe that the data will be used in the future when considering the development of northwest Plymouth, development of a housing plan, amendment of zoning ordinances, and other plans specific to Plymouth. Councihnember Lymangood requested that additional information be provided to the Council on the details of the Eden Prairie housing efforts. The meeting was adjourned at 6:55 p.m. Laurie F. Ahrens City Clerk