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WS 2013 04 02 CITY COUNCIL CHANHASSEN PLANNING COMMISSION WORK SESSION SUMMARY MINUTES APRIL 2, 2013 CHAHASSEN SENIOR CENTER 5:30 P.M. – WORK SESSION CITY COUNCIL PRESENT : Mayor Furlong, Councilman McDonald, Councilwoman Tjornhom, Councilwoman Ernst, and Councilman Laufenburger PLANNING COMMISSION MEMBERS PRESENT: Lisa Hokkanen, Kim Tennyson, Mark Undestad and Maryam Yusuf. PLANNING COMMISSION MEMBERS ABSENT: Andrew Aller and Steve Weick. STAFF PRESENT: Todd Gerhardt, Laurie Hokkanen, Kate Aanenson, Greg Sticha, Todd Hoffman, Alyson Fauske and Bob Generous. PRESENTERS: Eric Anderson, Ryan Companies US, Inc.; Bill Beard, Beard Group, Inc.; Kathy Bennett, ULI Minnesota; Gordon Hughes, ULI Minnesota; and Anthony Schertler, Springsted Incorporated. PUBLIC PRESENT : None WORK SESSION 1. Navigating the New Normal Gordon Hughes introduced the presenters and welcomed everyone to the discussion. Gordon Hughes then began a PowerPoint presentation about the function of the Urban Land Institute describing its mission as actively engaging public and private sector leaders to foster collaboration, share knowledge and join in meaningful strategic action to create thriving, sustainable communities. He described the Regional Council of Mayors in which 50 communities voluntarily join together and discuss collaborative, non-partisan solution-oriented issues and concerns. The strategic issue areas of discussion include the environment, housing, transportation and jobs. Kathy Bennett then continued the PowerPoint presentation discussing the changing demographic, social, economic and housing preferences in the state, metropolitan area and City of Chanhassen, noting that the ULI Minnesota had data down to the City level from 2004 to 2011. It was pointed out that the population was aging and that households without children are becoming the dominant household going from 52 percent in 1960 to 72 percent in 2025. Additionally, there are two significant age cohorts: 75 million baby boomer (1946-1964) and 80 City Council/Planning Commission Summary – April 2, 2013 million generation Y (1979-1996). Housing choices of these groups were discussed showing the change in housing choices over time from primarily single-family detached housing to more mixed-used and higher-density development and a decline in the proportion of homeowners. Nationally, the supply of townhouse and smaller lot homes is well below the demand for these housing types and the supply of larger lot detached housing significantly exceeding its demand. Changing economic and social conditions were highlighted including changes in household income versus cost of living and a comparison of walkable areas versus drivable areas and the amount of disposal income. In the capital markets, the equity requirement for developers dropped from 80 percent in 2007 to 60 percent in 2009 to 65 percent today. The emerging market trends in the metropolitan area were shown, which all results in a need for a collaborative approach to find solutions to these issues. Community change in Chanhassen was then highlighted showing the changing household distribution by age, housing preferences by age groups, comparing Chanhassen to key communities, home values, home values by age, median home values, future residential land use by area, changes in job numbers, types of jobs, labor force location and Chanhassen working resident age breakdown. Eric Anderson, Bill Beard and Anthony Schertler as a panel discussed the implications of these changing trends to communities and developers as well as the developer’s view of the private market. The Work Session concluded at 8:25 p.m. Submitted by Kate Aanenson Community Development Director Prepared by Robert Generous