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.
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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
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December 19, 1994
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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.
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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