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Home My WebLink AboutCouncil Information Memorandum 12-14-2017CITY OF PLYMOUTH COUNCIL INFO MEMO December 14, 2017 EVENTS / MEETINGS Planning Commission Agenda for December 20th ............................................................................. Page 2 MLC Regional Legislative Breakfast .................................................................................................. Page 3 Official City Meeting Calendars ......................................................................................................... Page 4 Tentative List of Agenda Items ........................................................................................................... Page 7 CORRESPONDENCE Hampton Hills Drainage Outcomes .................................................................................................... Page 8 Volunteer Coordinator Nets Statewide Leadership Award ............................................................... Page 16 REPORTS & OTHER ARTICLES OF INTEREST Why Do Twin Cities Homes Cost So Much? We Went to Find Out, Pioneer Press ......................... Page 17 Stryler to Buy Plymouth-based Entellus Medical for $662 Million, Star Tribune ........................... Page 29 Property Taxes, Homeowners' Voices on the Rise across Twin Cities, Star Tribune ........................ Page 32 Page 2 Page 3 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6:00 PM SPECIAL COUNCIL MEETING Board & Commission Interviews Medicine Lake Room 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 December 2017 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 5:00 PM SPECIAL COUNCIL MEETING Hotel Licensing Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PARK & REC ADVISORY COMMISSION (PRAC) MEETING Council Chambers CHRISTMAS DAY CITY OFFICES CLOSED CANCELLED 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY (HRA) MEETING Medicine Lake Room SUN TUES MON WED THUR FRI SAT CANCELLED 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE (EQC) MEETING Council Chambers 7:00 PM CHARTER COMMISSION MEETING Medicine Lake Room 7:00 PM PLANNING COMMISSION MEETING Council Chambers 2:00 PM - 5:00 PM Old Fashioned Christmas Plymouth Creek Park 31 CHRISTMAS EVE Observed CITY OFFICES CLOSED AT NOON Page 4 SUN MON TUE WED THU FRI SAT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 January 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers SUN TUES MON WED THUR FRI SAT CHANGES ARE NOTED IN RED 5:30 PM SPECIAL COUNCIL MEETING Goals/Legislative Priorities Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 7:00 PM PLANNING COMMISSION MEETING Council Chambers NEW YEAR’S DAY CITY OFFICES CLOSED 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room MARTIN LUTHER KING JR. BIRTHDAY CITY OFFICES CLOSED 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room 5:30 PM SPECIAL COUNCIL MEETING Highway 169 Mobility Study Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers Page 5 SUN MON TUE WED THU FRI SAT 1 2 3 3:00 PM - 7:00 PM Fire & Ice Festival Parkers Lake Park 4 5 6 7 8 9 10 11 12 13 14 7:00 PM ENVIRONMENTAL QUALITY COMMITTEE MEETING Medicine Lake Room 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SUN TUES MON WED THUR FRI SAT February 2018 3400 Plymouth Boulevard Plymouth, MN 55447 OFFICIAL CITY CALENDAR Phone: 763-509-5000 Fax: 763-509-5060 7:00 PM PLANNING COMMISSION MEETING Council Chambers 7:00 PM PARK & REC ADVISORY COMMISSION MEETING Council Chambers 7:00 PM HOUSING AND REDEVELOPMENT AUTHORITY MEETING Medicine Lake Room 5:30 PM SPECIAL COUNCIL MEETING Plymouth Creek Center improvements Medicine Lake Room 7:00 PM REGULAR COUNCIL MEETING Council Chambers 5:30-7:00 PM Board & Commission Social City Hall Lobby 7:00 PM REGULAR COUNCIL MEETING Council Chambers PRESIDENTS DAY CITY OFFICES CLOSED 7:00 PM PLANNING COMMISSION MEETING Council Chambers Page 6 Note: Special Meeting topics have been set by Council; all other topics are tentative. EDA refers to the Economic Development Authority Tentative Schedule for City Council Agenda Items January 9, Special, 5:30 p.m. Medicine Lake Room •Goals and Legislative Priorities for 2018 January 9, Regular, 7:00 p.m. Council Chambers •Accept donation from the Wayzata Youth Hockey Association for training center at the Plymouth Ice Center •Appoint 2018 Health Officer •Appoint 2018 Council Secretary •Appoint 2018 Official Depository •Appoint 2018 Official Newspaper •Public hearing on revocation of Wine and 3.2 Malt Liquor Licenses for Bawarchi Indian Cuisine, 187 Cheshire Parkway, Suite 100 January 23, Special, 5:30 p.m. Medicine Lake Room •Highway 169 Mobility Study January 23, Regular, 7:00 p.m. Council Chambers •Approve renewal of liquor licenses for 2018 February 13, Special, 5:30 p.m. Medicine Lake Room •Plymouth Creek Center improvements February 13, Regular, 7:00 p.m. Council Chambers February 27, Board and Commission Social, 5:30 p.m. City Hall Lobby February 27, Regular, 7:00 p.m. Council Chambers •Recognize board and commission members March 13, Regular, 7:00 p.m. Council Chambers March 27, Regular, 7:00 p.m. Council Chambers April 10, Regular, 7:00 p.m. Council Chambers April 24, Regular, 7:00 p.m. Council Chambers Page 7 December 6, 2017 Resident «HOUSE_NUMB» «STREET» Plymouth, MN, 55446 SUBJECT: HAMPTON HILLS DRAINAGE OUTCOMES AND RECOMMENDATIONS GROUP A Dear Resident: City staff has been investigating homeowner concerns of persistent water in yards within the Hampton Hills neighborhood since the summer of 2015. Over this time, staff has reviewed a number of potential causes of persistent water including precipitation, irrigation, sump pump discharges, landscaping and accessory structure placement, storm sewer infrastructure, site grading, and draintile function. While there is no single cause staff could isolate for the persistent water, the following are the outcomes of the investigation: 1.The Developer will repair damaged draintile proposed with the development and identified during the televising this past August. The Developer, after making the repair, will confirm the remainder of the draintile proposed with the development is functioning properly (if not those sections must also be fixed) or install new draintile. 2.An emergency overflow (EOF) to allow for backyard drainage to get to the street in the event of an extreme storm was included in the development plan between 5460 & 5470 Orchid Lane. The EOF lacks adequate slope and the developer is required to regrade this swale, install draintile which connects to functional draintile in the street, reconnect existing draintile from adjacent properties to this new line, and re-sod the swale. Low openings of homes adjacent to the EOF will surveyed by the developer to ensure those openings are a minimum of 18” above the EOF. 3.The swale between 5470 & 5480 Orchid lacks adequate slope to drain to the street. The developer is required to confirm draintile along property is functional and connects to functional draintile in the street. 4.It is strongly recommended that homeowners leave irrigation systems off until it is necessary in the spring or summer to turn them back on. It is also strongly recommended that each homeowner utilize a wi-fi smart controller such as the Ranchio Smart Irrigation Controller (Generation 2), RainMachine Touch HD, SkyDrop Smart Watering Sprinkler Controller, or similar to maximize water conservation. Homeowners can also consider modifying irrigation zones to water less or not at all in areas that have had persistent water. 5.Homeowners should bring as much roof, sump, and yard drainage to the street as possible. 6.Homeowners should review home construction contracts for warranties and potential repairs. 7.Group A requested mediation with the developer and staff is reviewing this possibility. Included is additional information with regard to findings and conclusions which you may find helpful. Required improvements by the developer are anticipated late this year or early spring and the developer has been asked to provide property owners with 48 hours notice before commencing work. Sincerely, Derek Asche Water Resources Manager Enc Page 8 Page 9 December 6, 2017 Resident «HOUSE_NUMB» «STREET» Plymouth, MN, 55446 SUBJECT: HAMPTON HILLS DRAINAGE OUTCOMES AND RECOMMENDATIONS GROUP B Dear Resident: City staff has been investigating homeowner concerns of persistent water in yards within the Hampton Hills neighborhood since the summer of 2015. Over this time, staff has reviewed a number of potential causes of persistent water including precipitation, irrigation, sump pump discharges, landscaping and accessory structure placement, storm sewer infrastructure, site grading, and draintile function. While there is no single cause staff could isolate for the persistent water, the following are the outcomes of the investigation: 1.The Developer will repair damaged draintile proposed with the development and identified during the televising this past August. The Developer, after making the repair, will confirm the remainder of the draintile proposed with the development is functioning properly (if not those sections must also be fixed) or install new draintile. 2.An emergency overflow (EOF) to allow for backyard drainage to get to the street in the event of an extreme storm was included in the development plan between 5410 & 5420 Polaris Lane. The EOF lacks adequate slope and the developer is required to regrade this swale, install draintile which connects to functional draintile in the street, reconnect existing draintile from adjacent properties to this new line, and re-sod the swale. Low openings of homes adjacent to the EOF will surveyed to ensure those openings are a minimum of 18” above the EOF. 3.It is strongly recommended that homeowners leave irrigation systems off until it is necessary in the spring or summer to turn them back on. It is also strongly recommended that each homeowner utilize a wi-fi smart controller such as the Ranchio Smart Irrigation Controller (Generation 2), RainMachine Touch HD, SkyDrop Smart Watering Sprinkler Controller, or similar to maximize water conservation. Homeowners can also consider modifying irrigation zones to water less or not at all in areas that have had persistent water. 4.Homeowners should bring as much roof, sump, and yard drainage to the street as possible. 5.Homeowners should review home construction contracts for warranties and potential repairs. Included is additional information with regard to findings and conclusions which you may find helpful. Required improvements by the developer are anticipated late this year or early spring and the developer has been asked to provide property owners with 48 hours notice before commencing work. Sincerely, Derek Asche Water Resources Manager enc Page 10 Page 11 December 6, 2017 Resident «HOUSE_NUMB» «STREET» Plymouth, MN, 55446 SUBJECT: HAMPTON HILLS DRAINAGE OUTCOMES AND RECOMMENDATIONS GROUP C Dear Resident: City staff has been investigating homeowner concerns of persistent water in yards within the Hampton Hills neighborhood since the summer of 2015. Over this time, staff has reviewed a number of potential causes of persistent water including precipitation, irrigation, sump pump discharges, landscaping and accessory structure placement, storm sewer infrastructure, site grading, and draintile function. While there is no single cause staff could isolate for the persistent water, the following are the outcomes of the investigation: 1.The Developer will repair damaged draintile proposed with the development and identified during the televising this past August. The Developer, after making the repair, will confirm the remainder of the draintile proposed with the development is functioning properly (if not those sections must also be fixed) or install new draintile. 2.A swale to allow for backyard drainage to get to the street in the event of an extreme storm was included in the development plan on the northwest side of 5280 Polaris. The developer is required to survey this swale and the adjacent properties and low openings to homes to determine if adequate slope and flood protection exists. The developer will televise draintile installed within this swale and confirm it to be functional. The developer may be required to regrade this swale, install draintile which connects to functional draintile in the street, reconnect existing draintile from adjacent properties to this new line, and/or re-sod the swale. Low openings of homes adjacent to the EOF will surveyed to ensure those openings are a minimum of 18” above the EOF. 3.Vacant lots east of 5270 Polaris need to be graded such that drainage goes into the nearby catch basin or comes to Polaris Lane rather than through the back yards. Storm water is currently draining through lots 1 and 2 to the west which is not consistent with the proposed grading plan. 4.It is strongly recommended that homeowners leave irrigation systems off until it is necessary in the spring or summer to turn them back on. It is also strongly recommended that each homeowner utilize a wi-fi smart controller such as the Ranchio Smart Irrigation Controller (Generation 2), RainMachine Touch HD, SkyDrop Smart Watering Sprinkler Controller, or similar to maximize water conservation. Homeowners can also consider modifying irrigation zones to water less or not at all in areas that have had persistent water. 5.Homeowners should bring as much roof, sump, and yard drainage to the street as possible. 6.Homeowners should review home construction contracts for warranties and potential repairs. Included is additional information with regard to findings and conclusions which you may find helpful. Required improvements by the developer are anticipated late this year or early spring and the developer has been asked to provide property owners with 48 hours notice before commencing work. Sincerely, Derek Asche Water Resources Manager Enc Page 12 Page 13 December 6, 2017 Resident «HOUSE_NUMB» «STREET» Plymouth, MN, 55446 SUBJECT: HAMPTON HILLS DRAINAGE OUTCOMES AND RECOMMENDATIONS GROUP D Dear Resident: City staff has been investigating homeowner concerns of persistent water in yards within the Hampton Hills neighborhood since the summer of 2015. Over this time, staff has reviewed a number of potential causes o f persistent water including precipitation, irrigation, sump pump discharges, landscaping and accessory structure placement, storm sewer infrastructure, site grading, and draintile function. While there is no single cause staff could isolate for the persistent water, the following are the outcomes of the investigation: 1.The Developer will repair damaged draintile proposed with the development and identified during the televising this past August. The Developer, after making the repair, will confirm the remainder of the draintile proposed with the development is functioning properly (if not those sections must also be fixed) or install new draintile. 2.An emergency overflow (EOF) to allow for backyard drainage to flow to the east to Juneau Lane in the event of an extreme storm was included in the development plan from 14930 52nd Avenue North through 14880 52nd Avenue North. The EOF may be 0.6’ high and the developer is required survey the EOF and to regrade this swale or confirm low openings of adjacent homes are 18” above the EOF elevation , install or replace draintile, reconnect existing draintile from adjacent properties to this new line if those lines exist today, and/or re-sod the swale. 3.It is strongly recommended that homeowners leave irrigation systems off until it is necessary in the spring or summer to turn them back on. It is also strongly recommended that each homeowner utilize a wi-fi smart controller such as the Ranchio Smart Irrigation Controller (Generation 2), RainMachine Touch HD, SkyDrop Smart Watering Sprinkler Controller, or similar to maximize water conservation. Homeowners can also consider modifying irrigation zones to water less or not at all in areas that have had persistent water. 4.Homeowners should bring as much roof, sump, and yard drainage to the street as possible. 5.Homeowners should review home construction contracts for warranties and potential repairs. Included is additional information with regard to findings and conclusions which you may find helpful. Required improvements by the developer are anticipated late this year or early spring and the developer has been asked to provide property owners with 48 hours notice before commencing work. Sincerely, Derek Asche Water Resources Manager enc Page 14 Page 15 City of Plymouth News Release For Immediate Release Dec. 12, 2017 Contact: Jackie Maas Volunteer Coordinator City of Plymouth 763-509-5230 jmaas@plymouthmn.gov Plymouth’s volunteer coordinator nets statewide leadership award Plymouth, Minn. – City of Plymouth Volunteer Coordinator Jackie Maas was recently presented the Mary Wiser Award for Leadership in the Field of Volunteer Resources by the Minnesota Association for Volunteer Administration. Each year, MAVA recognizes outstanding individuals for significant contributions to their community and the field of volunteerism. “Plymouth’s volunteer program and our community would not be the same without Jackie. She is a talented and thoughtful leader, who is greatly respected by her peers, volunteers and city officials,” wrote City of Plymouth Communications Manager Helen LaFave in a nomination letter. A recognition of excellence by the recipient’s peers, the award honors a professional in the field of volunteer administration who demonstrates the vision, diligence and commitment to service that are the hallmarks of professionalism in the field. This award was established to honor Mary Wiser, past director of volunteer services at Courage Center. Wiser was recognized for her outstanding contribution in teaching and inspiring others in the field. “Jackie Maas is well known and liked by those who volunteer for the City of Plymouth. She represents the city in a very professional yet personal way,” wrote seven-year Plymouth volunteer Nancy Jensen. “The city has over 2,000 volunteers under Jackie’s supervision and she knows them all by name, and their areas of strength as a volunteer.” In 2016, Maas recruited, interviewed and managed more than 2,900 volunteers. Those volunteers contributed 39,000 hours, which is equal to $921,313 of in-kind contributions. Cutline: City of Plymouth Volunteer Coordinator Jackie Maas (center), pictured with niece Erin Hocking (left) and son Graham Maas, was recently presented the Mary Wiser Award for Leadership in the Field of Volunteer Resources by the Minnesota Association for Volunteer Administration. -30- Page 16 Why do Twin Cities homes cost so much? We went to find out. New housing construction continues on Garden Drive in Woodbury on Wednesday, April 12, 2017. The Twin Cities was No. 1 in housing costs among the nation’s 20 largest metro areas, according to 2014 U.S. Census data. (Jean Pieri / Pioneer Press) By Bob Shaw | bshaw@pioneerpress.com and Tad Vezner | tvezner@pioneerpress.com | Pioneer Press PUBLISHED: April 16, 2017 at 11:00 am | UPDATED: April 17, 2017 at 11:03 am Mary Kay Curtis wrinkled her nose at the window. It wouldn’t go up. After three inches, it was just stuck. The salesman for the new Woodbury home she toured last fall explained that, no, it wasn’t broken. It would only open so far because of a state regulation. Windows more than six feet off the ground in new homes must be unlatched by an adult to open any further. “It’s a good feature if you have younger children, but we don’t,” she said. Page 17 When her husband Rick learned the required safety feature adds $1,000 to the house’s cost, he balked. “I wouldn’t pay any more for that,” he said. Talk to a builder about why Minnesota’s housing costs are so high, and they’ll mention regulations. And it’s true: Minnesota’s regulatory process is far more complex than many of its surrounding states. But it’s only one factor why. According to interviews with more than 60 government officials, builders, Realtors, housing and energy lobbyists and home buyers, Minnesota’s housing costs are higher because: •Those regulations, including energy-saving rules and safety codes, are tougher and costlier than in surrounding states; •The cost of metro-area land is elevated by centralized planning, larger mandated lot sizes and a public resistance to development; •An increasing use of city fees, tucked into the price of a new house, can add tens of thousands of dollars. “It’s kind of like the perfect storm,” said Mike Paradise, president of Bigelow Homes of Rochester and the former head of the Builders Association of Minnesota. And just how high? Outside coastal states like New York and California, the Twin Cities was No. 1 in housing costs among the nation’s 20 largest metro areas, according to 2014 U.S. Census data. And they have remained at or near the top of other cost-comparison surveys since then. Statewide, Twin Citians pay an average of 26 percent more than neighboring states. That price gap explodes when compared with southern states like Texas. Mary Kay Curtis wrinkled her nose at the window. It wouldn’t go up. After three inches, it was just stuck. The salesman for the new Woodbury home she toured last fall explained that, no, it wasn’t broken. It would only open so far because of a state regulation. Windows more than six feet off the ground in new homes must be unlatched by an adult to open any further. “It’s a good feature if you have younger children, but we don’t,” she said. When her husband Rick learned the required safety feature adds $1,000 to the house’s cost, he balked. “I wouldn’t pay any more for that,” he said. Talk to a builder about why Minnesota’s housing costs are so high, and they’ll mention regulations. And it’s true: Minnesota’s regulatory process is far more complex than many of its surrounding states. Page 18 But it’s only one factor why. According to interviews with more than 60 government officials, builders, Realtors, housing and energy lobbyists and home buyers, Minnesota’s housing costs are higher because: •Those regulations, including energy-saving rules and safety codes, are tougher and costlier than in surrounding states; •The cost of metro-area land is elevated by centralized planning, larger mandated lot sizes and a public resistance to development; •An increasing use of city fees, tucked into the price of a new house, can add tens of thousands of dollars. “It’s kind of like the perfect storm,” said Mike Paradise, president of Bigelow Homes of Rochester and the former head of the Builders Association of Minnesota. And just how high? Outside coastal states like New York and California, the Twin Cities was No. 1 in housing costs among the nation’s 20 largest metro areas, according to 2014 U.S. Census data. And they have remained at or near the top of other cost-comparison surveys since then. Statewide, Twin Citians pay an average of 26 percent more than neighboring states. That price gap explodes when compared with southern states like Texas. Supporters of Minnesota’s tougher codes admit they increase purchase prices but say the money spent is worth it. Page 19 Supporters of Minnesota’s tougher codes admit they increase purchase prices but say the money spent is worth it. “The reason we have codes is to protect buildings, protect public health and not unduly waste energy,” said Michael Noble, executive director of Fresh Energy, an energy conservation nonprofit. But the equation has made some housing advocates state the obvious: if only expensive homes can be built, only the affluent can afford them. And increasingly — as concern about affordable housing intensifies — many Minnesotans can’t afford to live here. One in four Minnesota households pay too much for their housing, according to the Minnesota Housing Finance Agency. THE “R” WORD In the U.S., regulations by cities, states and the federal government account for 24 percent of the cost of a home, according to the National Homebuilders Association. There are no statistics showing what the regulations cost in Minnesota, but Clay Dietrich has a pretty good idea. “The first thing I ask homebuyers is this: Which side of the river?” said Dietrich, who builds homes in both Moorhead and Fargo, the Minnesota/North Dakota border towns split by the Red River. Page 20 Clay Deitrich, seen April 6, 2017 in a house his company is building in Fargo, N.D., says that building requirements across the river in Moorhead, Minn., add thousands to the purchase price of a home there. (Michael Vosburg / Forum News Service) Top to bottom — from roofs requiring higher “snow loads” to automatic air exchangers to basement walls needing two inches of extra insulation — Minnesota requires more expensive construction. “I can tell you, it’s just as damn cold in Fargo as it is on the other side of the river,” Dietrich said. But by his books, a higher-end build on the Minnesota side of the river will cost $17,000 to $29,000 more, not including land price differences. As a member of Fargo’s Code Board of Appeals and a former Moorhead assistant fire chief, he’s hardly anti-code. “But you can over-engineer something so all you’re doing is spending money. And that’s kind of where Minnesota is right now,” he said. Greg Houston agrees. He built two houses in Forest Lake, one in 2014, and another one a year later. They were perfect twins — built side-by-side, with the same floor plans, lot sizes, appliances. Subcontractor Randy Pritchard sheetrocks the mechanical room in the basement of a new housing construction project on Garden Drive in Woodbury on Wednesday, April 12, 2017. “It’s a new code they just came out with last year or so,” said Pritchard. “You can only have 80 feet or less of ceiling not covered with sheetrock or sprayed with fire retardant.” (Jean Pieri / Pioneer Press) Page 21 The only differences were the 2015 changes in Minnesota building codes. The new rules mandated a long list of tweaks to plumbing, heating and insulation. They were nothing, said Houston, that a homebuyer would notice — except for the price tag. The cost difference? $15,000. “That price difference is outrageous,” said the developer, who works with Bald Eagle Builders of Centerville. State officials and regulation advocates say builders often exaggerate the impacts of new codes. And, others argue those changes were for the better. GAINING A REPUTATION Fresh Energy’s Noble compares the energy-saving rules to seat-belt laws — inexpensive, widely accepted, sensible. And he wants more. “Denmark is twice as efficient as Minnesota,” said Noble. “I don’t really want to compare myself to Texas — I want to compare myself to Denmark.” Minnesota’s reputation for regulation accelerated in the early 1990s. That’s when the Legislature passed a lofty mandate: Adopt the most stringent energy code of any jurisdiction in the nation. The mandate has since been rolled back. “Still, it got all of our code officials and all of our builders in the habit of thinking about saving energy,” Noble said. Since then, officials have been toughening up the energy codes every three to six years. That means taking the federal guidelines, reworking them in a years-long process, and writing their own. The latest code book affecting residential homes was 567 pages. Related Articles •Minnesota OSHA investigates man’s fatal fall at turkey manure power plant •Gums overgrow dentures, leading state to cite Rochester adult residential facility •Minnesota announces restrictions on using herbicide dicamba •Blind, abandoned pig from Minnesota recovering at N.D. animal rescue •Minnesota elder-care whistleblower was fired, according to state lawmaker: ‘I want answers’ Page 22 It’s something states like North Dakota and Iowa don’t do. “We don’t rewrite the book. We don’t even publish,” said Ljerka Vasiljevic, deputy building code commissioner for Iowa, whose state code — unlike Minnesota’s — only applies to state-owned buildings. One year’s energy revisions in Minnesota — in 2012 — cost homebuyers about $1 per square foot, or $2,400 for a typical 2,400-square-foot home, said Scott McLellan. “That was a big jump and really caused a lot of discussion and controversy,” said McLellan, who is the Director of Construction Codes and Licensing with the Minnesota Department of Labor and Industry. That’s the department that oversees the code process. Legislators have, at times, trimmed regulations — a rule affecting sprinklers, for example, was softened at the Capitol. But for the most part, the work is done by McLellan’s department with input from builders, but without a legislative signoff. And McLellan believes the rules were reasonable. While some builders say homebuyers don’t appreciate the improvements, McLellan and energy-saving advocates say they’ll sure notice when they get their utility bill. Chad Schany, right, and Dirk Eden prep a wall for insulation at a new house under construction on Garden Drive in Woodbury on Wednesday, April 12, 2017. (Jean Pieri / Pioneer Press) Homes built under the 2012 code consume an average of 30 percent less energy, McLellan said. A study by the U.S. Energy Department stated that Minnesota’s 2012 energy code revisions will save consumers an average of $10,000 over 30 years — which exceeds the added cost to a mortgage. It’s one reason Noble says the tough energy codes should be a source of pride. “Why wouldn’t you be in favor, Mr. Builder, of a minimum standard raising you up? You have a better product now.” Page 23 But the impact of such regulations hits less-wealthy buyers harder, said Bob Michels, owner of Michels Homes of North Oaks. Someone buying a $500,000 home might not complain about paying an extra $1,000 for safety windows, but the buyer of a $200,000 home would. Which encourages builders to focus on higher-priced homes, Michels said. DEBATING “COST” Safety codes are a different animal than energy codes. They’re about saving lives, not money. And their value is harder to assess. “With some of these safety codes, there isn’t a right or wrong. It’s just the degree of safety you build in,” the Department of Labor and Industry’s McLellan said. In the case of the safety windows, noted home-builder Paradise, legislators were told about the death of a Minnesota child from a window fall. “To fight it — how can you?” said Paradise. But like the energy-saving codes, safety codes have expanded in scope and in price. One example was raised by Arlen Tietel as he counted sprinkler heads in a Woodbury townhome during last fall’s Parade of Homes. There were 28. Two in a single closet. “People say, ‘Why are these here?’ ” Tietel said. Potential buyers didn’t even realize how much extra they were paying — about $10,000 for the sprinklers, which the state mandated in all new townhomes in 2014. Its effect in Moorhead has not been subtle. In the two years prior to the code change, 94 twin homes were permitted in Moorhead. This past year there were four — and two didn’t get built. But in Fargo, with no sprinkler mandate, twin homes permits shot from 54 to 82 last year. According to 2009 statistics from firefighters’ groups and the state, once sprinklers are installed over the next 40 years, they would then save about three lives per year. “To their credit, they’re interested in preserving loss of life,” McLellan said of firefighters’ lobbying efforts. “One life — any life. Their call is to do that at any cost.” Page 24 Matt Endrizzi said he is “taping and mudding” — getting drywall ready for paint — at a new housing construction site on Garden Drive in Woodbury on Wednesday, April 12, 2017. Endrizzi works for J and J Enterprises. (Jean Pieri / Pioneer Press) “FEES” NOT “TAXES” Then there’s the matter of mandating things that have nothing to do with bricks and mortar. More than ever, Minnesota cities increasingly slap an array of one-time fees on the sale of a new home — on top of taxes — to support police, parks, boulevard trees and even streetlights. Park fees alone tack up to $7,000 on house prices in Minnetonka, $6,000 in Plymouth and $2,000 in Blaine. The Met Council levies a sewer availability charge of $2,500 per lot — and some cities typically charge an equivalent, for another couple thousand. “It’s always been that way to some degree. But it’s intensified,” said Jim Erchul, who runs Dayton’s Bluff Neighborhood Housing Services of St. Paul. A new $277,000 townhome in Woodbury recently was charged $53,000 in land-related fees. That included city fees, pass-through fees from other agencies and a fee for infrastructure including roads and sidewalks. The total was 19 percent of the value of the home. Fees can even be charged for development that hasn’t happened yet. “Impact fees” are charged by cities for off-site improvements, should the development generate increased traffic. That way, said Woodbury associate planner Eric Searles, taxpayers don’t have to pay for improvements necessitated by newcomers. “The development pays its own way,” Searles said. Page 25 But home-builders say the cities have gone too far — and Minnesota’s courts recently agreed. New Brighton-based builder Martin Harstad wanted to build the 183-unit Bailey Park in Woodbury. He was already paying a “seven-figure sum” in fees, according to lawyer Peter Coyle. But Woodbury charged him $1.3 million more — for future improvements that would not be on his land. Harstad sued and won in Washington County District Court in November. The savings, per potential home buyer: $7,000. SIZE MATTERS A LOT A key factor in Minnesota’s higher housing costs is very down to earth — the land itself. In the Twin Cities metro area, land costs can reach $100,000 for a plot — before a single wall is built. That’s partly because the plots are big. Zoning rules in the suburbs often prefer putting new homes on larger lots. In Blaine, the minimum size for a lot is one-third of an acre. In West Lakeland Township, lots can’t be smaller than 2.5 acres. Even a tiny house on a big plot of land is going to be expensive, notes Bob Clark, president of the St. Paul Area Association of Realtors. When you consider the land price of those bigger lots, “it’s difficult to build a starter home,” Clark said. SOME LINES YOU CAN’T CROSS The “MUSA” line, short for “Metropolitan Urban Services Area Line,” is an invisible boundary that zigzags around the metro area. The Metropolitan Council, in consultation with cities, draws it to determine which areas will be developed. And which won’t. Property inside the line will be first to get streets, transit, sewers and homes. Property outside the line will have to wait. But when you designate an area for development, its value goes up. Page 26 Along Dale Road in Woodbury, farmland to the north is worth an average of $27,000 an acre, according to the Washington County Assessor’s records. Land just across the road to the south — outside the MUSA line — is $11,000 per acre. Len Pratt, owner of Pratt Homes, builds homes in Washington County, where a one-third- acre lot inside that MUSA line can sell for as much as $100,000. Matt Endrizzi tapes and muds drywall in a house under construction site in Woodbury on Wednesday, April 12, 2017. (Jean Pieri / Pioneer Press) In most metro areas nationwide, there are no such regional lines. Builders chose from among thousands of landowners, wherever they are, and negotiate the best deal they can. They pay less for the land, and homebuyers pay less for their houses. But the line helps orchestrate the projects of the 182 cities in the seven-county metro area, said Council Manager of Local Planning Assistance Libby Starling. “We don’t have any roads to nowhere,” Starling said. “Imagine the inefficiency if cities all had their own sewage systems.” Such planning saves about 40 percent of costs on road construction, the council estimates. GOAL SETTING The variety of factors affecting Minnesota’s housing prices are the responsibility of a labyrinth of entities. Cities, the state, the Metropolitan Council — and to a lesser extent, the Legislature, which is called upon to rehash rules only after the fact. This session, for instance, they’re attempting to redefine the rules on twin homes so they don’t need sprinklers. Page 27 But the culture remains and will continue to keep housing costs high, said Bob McDonald, owner of McDonald Construction Inc. of Apple Valley. Remi Stone, vice president of the Builders Association of Minnesota Stone, is matter of fact about how things currently stand in Minnesota. “We are a high-regulation, high-housing-cost state. That is our preference, and if you don’t like it you can move to Canada or Texas.” Page 28 BUSINESS 462576963 Stryker to buy Plymouth-based Entellus Medical for $662 million It's unclear how the deal will affect the 280 workers who make products to treat chronic sinus problems. By Joe Carlson and Jeffrey Meitrodt Star Tribune DECEMBER 7, 2017 — 10:11PM JOEY MCLEISTER, Star Tribune file photo Dr. Ted Truitt performed sinus surgery in 2008 and talked to the patient during the procedure. Entellus Medical and Truitt developed the sinus operation which involves inserting a balloon catheter into the sinus cavity through an opening above the incisors, then inflating the balloon to force open a pathway so that mucus can drain properly. The patient is under a local anesthesia. Plymouth-based medical device maker Entellus Medical, which went public in 2015 and has been growing sales by more than 40 percent per year, is set to be acquired in a $662 million deal by Michigan’s Stryker Corp. Page 29 Stryker has agreed to pay $24 per share for Entellus, a premium of about 50 percent from Wednesday’s closing price. The deal is subject to regulatory approval. “I wouldn’t call it a bargain, but I think it makes sense,” said Mike Matson, an analyst with Needham & Co. who follows medical device companies. “They are paying a lot, but everything is expensive right now. Founded in 2006, Entellus developed a cheaper, less invasive way to treat chronic sinus problems with its XprESS family of balloon catheters, which are used to drain infected sinus cavities and prevent recurring infections. The treatment, typically performed in a doctor’s office, is an alternative to surgery. While Entellus also makes surgical instruments and other medical equipment, its XprESS products account for about 80 percent of company revenue, which climbed from $17 million in 2012 to $75 million in 2016, according to its most recent annual report. The company has yet to turn a profit. At the end of 2016, Entellus reported an accumulated deficit of $150.8 million. In its most recently quarterly report, Entellus said it lost $3.2 million on sales of $23.3 million, compared with a net loss of $9.5 million for the same period last year. In announcing the Entellus deal, Stryker said it does not expect the acquisition to become profitable for the company until 2019. BRIAN PETERSON • Brian.Peterson@startribune.com Bob White, CEO of Entellus in his Plymouth production facility. ] Brian Peterson • Brian.Peterson@startribune.com Plymouth, MN - 5/05/2015 Stryker, by contrast, has a widely diversified product line, ranging from implants used in hip and knee replacements to an extensive line of surgical tools and basic medical equipment such as hospital beds and stretchers. The company, which has bought more than 40 medical companies in the past five years, earned $1.6 billion on revenue of $11.3 billion in 2016. Analysts noted that Stryker already has a small but significant presence in the market catering to ear, nose and throat (ENT) doctors. The company offers about 15 ENT products in its instruments business, according to Matson. Page 30 “They typically buy companies that offer products that are complementary to what they already have,” Matson said. “They can leverage the relationships they have with these doctors.” Analysts said the deal could have a big upside for Stryker, noting that Entellus believes the total market for its products tops $2 billion. So far, about 150,000 patients have been treated with Entellus’ XprESS products since the line debuted in 2010, according to the company. Entellus estimates that 690,000 patients could use the balloon catheters annually. “Entellus is a leader in the ENT segment and offers a comprehensive portfolio of products that enable physicians to conveniently and comfortably perform a broad range of ENT procedures,” Stryker executive Timothy Scannell said in a written statement. It’s not clear how the deal would affect the 280 people who work for Entellus, which makes the majority of its products at its facility in Plymouth. Officials with Entellus and Stryker did not respond to questions about the future of those workers or the Plymouth plant. “The combination of Stryker’s established commitment to making health care better and Entellus’ innovative products within the ENT segment will continue to provide our customers the tools they need for cost-effective solutions,” Entellus chief executive Robert S. White said in a written statement. The announcement comes less than a month after Entellus announced that Anthem, the largest member of the Blue Cross and Blue Shield Association, had agreed to cover balloon-sinus dilation for chronic and recurrent sinusitis. Following Anthem’s coverage policy, Entellus estimated that 95 percent of insured patients in the U.S. had access to the procedure, when deemed medically appropriate. joe.carlson@startribune.com 612-673-4779 JoeCarlson jeff.meitrodt@startribune.com 612-673-4132 JeffMeitrodt Page 31 LOCAL 463071093 Property taxes, homeowners' voices on the rise across Twin Cities Double-digit percentage hikes that had drawn complaints in St. Paul are popping up in the suburbs, too. By Anthony Lonetree Star Tribune DECEMBER 9, 2017 — 8:40PM Renee Jone Schneider - Star Tribune file Hennepin County Commissioner Peter McLaughlin, shown in 2015, supported a bike-pedestrian safety proposal. Property taxes are on the rise again across the metro area, and at a recent hearing in Ramsey County, homeowners voiced their discontent. “We are not your ATM machine,” Joyce Thompson of Shoreview told County Board members. Page 32 The county has too easy a time spending money, said Sean Favorite, who owns rental property in St. Paul but has moved to more fiscally conservative Chanhassen. But the double-digit percentage hikes that had drawn complaints in St. Paul are popping up in the suburbs, too — in Columbia Heights and Fridley, where home values are rebounding, and in Dayton, Blaine and Shoreview, too. “It does appear that the value of existing properties is continuing to march upwards,” and that change often triggers higher tax bills, said Gary Carlson, intergovernmental relations director for the League of Minnesota Cities. Hopkins residents also may find themselves inching nearer a 10 percent increase mark after voting in November to approve school spending proposals. JOEL KOYAMA - STAR TRIBUNE FILE Ramsey County Commissioner Toni Carter, shown in 2014, impressed a constituent with her insight on spending. Because the cost of those levy votes do not appear on the Truth in Taxation statements sent to individual property owners in November, homeowners in Scott County — where a majority of the school districts had proposals on the ballot — can expect bigger increases when their 2018 bills arrive in March. That will be the case in Roseville, Shoreview and Mounds View as well. Roseville and Mounds View district residents were among the 25 or so people who rose to challenge the size of their tax bills at the recent Ramsey County hearing. In Hennepin County’s boardroom, however, the situation was quite different. There, as in Minneapolis City Hall the following night, the vast majority of speakers championed spending proposals, leaving the people who came to vent about their taxes puzzled and frustrated. Pitching projects Page 33 Mark Sauter, who lives on 16th Avenue S. in Minneapolis, had a simple message to share with Hennepin County Board and Minneapolis City Council members: He is nearing retirement, and after a property tax increase of 10.5 percent in 2017 and a projected 12.2 percent hike for 2018, he is worried that he will be taxed out of his home. But Sauter was 13th on the list of speakers in Hennepin County, and 18th in Minneapolis. That meant he had to listen first to advocates — seniors, high-rise residents and young people — speak on behalf of a $1.8 million plan to make county roads safer for bicyclists and pedestrians. Commissioner Peter McLaughlin successfully added that proposal to the county’s budget in an amendment last week. At the Minneapolis hearing, speakers pushed for funding aimed at helping seniors stay in their homes, creating a sober house for American Indians struggling with heroin addiction and beefing up the Civil Rights Department for enforcement of the city’s new minimum wage and sick leave ordinances. “I am a progressive. I want to see nice things,” Sauter said after the hearing. “But to raise your taxes by 20 to 22 percent in two years is a little too much.” A contributing factor in Sauter’s increase is the value of his house, which jumped 15.6 percent this year. Taxpayers whose property values rise more sharply than others are more vulnerable to steeper hikes. A city assessor, he said, offered at the hearing to take a new look at the house. “She was nice and I was cordial,” he added. But he is uncertain about taking her up on the offer because he fears it might trigger another increase. Homeowners whose property tax bills increase by at least $100 and more than 12 percent in a single year are eligible for a state refund, regardless of income. For an application form, go to bit.ly/1loIEcw or call 651-296-3781. Sparse attendance at City Hall Favorite, who had challenged the Ramsey County Board’s spending practices, was approached after the hearing by Commissioner Toni Carter. She represents the Lexington-Hamline area in St. Paul where Favorite owns a rental property. He said that Carter explained that spending decisions aren’t easy — that the county operates in a complex environment that involves state and federal funding, too. Page 34 Carter was gracious, he said, and walked him to his car, which he found impressive. Now, Favorite said, he would stand with her on issues of mutual interest if she needs him. The other tax hearings in St. Paul were not as eventful. No one addressed the school board. Just four people spoke at City Hall, despite the fact that the owner of the city’s median-valued home is eyeing an 11.7 percent tax hike — an increase to be eased by a reduction in what he or she has paid separately for street maintenance. Danette Lincoln, who lives on Marshall Avenue, is facing a 23.9 percent property tax hike. She expected a bigger crowd, she told the City Council. Maybe people figured it would be a waste of time to come, she said. But she wanted her say, and she sounded a familiar refrain: “You are taxing us out of this city.” Page 35