2.5. Villages on the Ponds: Brad Johnson.CITY OF as
CHANHASSEN
MEMORANDUM
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: January 8, 1997
SUBJ: Villages on the Pond, Affordable Housing Initiative
This item has been placed under Visitor Presentations recognizing that we did not receive the
request in time for publication for this agenda. Mr. Johnson believes that there is urgency in
presenting his proposal to the state legislature. One solution would be for the mayor to write a
letter in support of the project (assumes that discussion comments are favorable). The other
alternative would be to make a motion to amend the procedures to allow for a vote for or against
the proposal. Should a motion to amend the rules pass, the city council then could consider the
secondary motion of approving or denying Mr. Johnson's request.
G:\ngr\vi11ages.doc
JAN -04 -1997 16:38 CHANHASSEN SECRETARIA 612 934 3561 P.02i02
L (fru-S
REALTY SERVICES
January 3,1997
TO: - • Chanhassei City Council
'visitor Presentation" 6
CC: Kate Aanenson; Todd Gerhardt, Don'Ashworth
FROM. Lotus Realty Services
SUBJECT:, Villages. on the Pond
Affordable Housing Initiative
The City Couxicil, Planning Commission, City Staff and The Developers of the Villages have all
agreed to put forth their best efforts to include affordable housing both rental and for sale - as
part of the "Villages" 'Development. , The Development currently includes up to 108 'for and
154 rental .units. "Affordable" housing is defined by the Met Council as $683.00 /month rent or .
$120,000 for' ownership. New market .rate apartments require rental rates of $1,000 /per 'month
without assistance, and for sale condominiums range in price from $130,000 to $180,000 in the
affordable range.
one way to bridge the gap between'market rate and affordability as defined by the Met Council
is to create. a 'housing tax, increment district within the "Villages. ". The City Staff and Lotus
discovered a law was passed in 1994 prohibiting.. new tak 'increment - districts located on •
previously. .'green acres property. The reason tor 'the law was to discourage the cohvdsion of
farm land to - industrial. In 1995 the Legislature also passed laws encouraging affordable housing
in growing suburbs, like Chanhassen. The problem exists for cities, trying to conform to the
Livable Cities Act is most of the potential housing has been in Green Acres, such as the
"Villages Property. " -
Assuming one altemative to, finance• affordable housing is the formation of a Housing District.
Lotus Realty 'has : met with various state legislatures and .fiscal consultants. Ever seems to
agree the Iaw could'be changed to exempt affordable housing efforts sucli as the "Villages" from.
the Green Acres.
We; therefore, respectfully request the :City co- sponsor with Lotus an et'fort to change the law-in
the 1997. Legislative'. session:. The. cost of such a change. including legal and lobbing .efforts is
estim4ed to be $5 'to. x•10 ;000: - The: developer is prepared to cover such a -cast. ' Lotus hereby
asks the. City Council to direcf staff to work - with -Lotus on legislation, to . exempt the Villages
from 'current law.:
An acfim plari`for assistance -and liotw it rnay-benefit residents of Chanhassen, the City: and the
Developer will be presented once permitting'Legislation is iu'pl'ace.
Thank you:A rnyour consideration n this matter.
TOTAL P.02