4. Proposed Housing Plan & Program 11%
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CITY OF
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CHANHASSEN
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,,,„. _ 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937-1900
MEMORANDUM
TO: Don Ashworth, City Manager
1 FROM: Todd Gerhardt, Administrative Assistant V
1 DATE: November 4 , 1988
SUBJ: Public Hearing for Proposed Housing Plan and Program
1 The City Council on June 13 , 1988, approved the Housing Plan and
Program for the Chanhassen Heritage Square Apartments . Since
that time, the partnership has changed its name from "Heritage
1 Square Investors Limited Partnership" to "Heritage Park
Apartments Limited Partnership" . Due to this change, the City
Council is being asked to amend their resolution to read that the
developer of the project will be Heritage Park Apartments Limited
Partnership.
The partnership is not requesting any changes within the Housing
1 Plan or Program. Staff will also be notifying the Housing and
Redevelopment Authority of this change. Attached for the City
Council' s review is the amended resolution (see Attachment #1) .
RECOMMENDATION
Staff recommends approval of the amendment of the resolution
approving the Housing Revenue Bond Program and Housing Plan for
the construction of the Chanhassen Heritage Park Apartments.
ATTACHMENTS
1 . Amended Resolution.
2 . City Council minutes dated June 13 , 1988.
3 . Staff report dated June 13 , 1988 .
PO•! 04 == 16: 1,9 HOLME'=' - =t. 1'•iE l IF.
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CITY OF CHANHASSEN, MINNESOTA
RESOLUTION NO. ,
Authorizing the issuance of the City of Chanhassen,
Minnesota, Multifamily Housing Development Revenue
Bonds (FHA Insured Mortgage Loan-Heritage Park
Apartments Project) Series 1988.
WHEREAS, the City of Chanhassen (hereinafter the "City") is duly organized '
and existing as a statutory city under the Constitution and laws of the State of
Minnesota; and
WHEREAS, pursuant to the Constitution and laws of the State of Minnesota,
particularly Minnesota Statutes, Chapters 462A and 462C, as amended (the "Acts"),
the City is authorized to carry out the public purposes described therein and
contemplated thereby by issuing its revenue bonds to defray, in whole or in part,
the development costs of a rental housing development, and by entering into any .
agreements made in connection therewith and pledging them as security for the
payment of the principal of and interest on any such revenue bonds; and
WHEREAS, to provide a means of financing the cost of a rental housing
development that will provide decent, safe and sanitary housing for low and
moderate income residents of the City, including elderly persons, at rents they can
afford, and further to provide for and promote the public health, safety, morals
and welfare and to provide for efficient and well-planned urban growth and
development, including the elimination and prevention of potential urban blight,
and the proper coordination of industrial facilities with public services, mass
transportation and multifamily housing developments which constitute valid public
purposes for the issuance of revenue bonds under the Acts, the City has developed
a program (the "Program") with respect to the issuance by the City of its revenue
bonds pursuant to the Acts to finance the acquisition and preparation of a site and
the construction of a multifamily rental housing development located in the City
and containing approximately 60 units (the "Project"); and
WHEREAS, the City developed a Housing Plan pursuant to and in conformity
with the Acts and adopted the Housing Plan after a public hearing thereon after
one publication of notice in a newspaper circulating generally in the City; and
WHEREAS, the Program, an individual component of the Housing Plan '
pursuant to which the issuance of the housing revenue bonds of the City was
proposed, was developed by the City and made a part of the Housing Plan; and
WHEREAS, the City Council of the City adopted the Program by the
passage of Resolution No. 88-58 on June 13, 1988; and
WHEREAS, the Acts require review of the Program by the Minnesota '
Housing Finance Agency (the "Agency"); and
WHEREAS, the Program was submitted to the Agency and the Agency did ,
not reject the Program; and
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WHEREAS, pursuant to the Acts and the Indenture (as hereinafter defined),
the City proposes to undertake the Program and for the financing thereof, to
I authorize, issue and sell its housing revenue bonds, described below (the "Bonds");
and
WHEREAS, the Developer (as hereinafter defined) has proposed to secure
the Bonds by a FHA Mortgage and a Purchase Payment Agreement from the
Developer to the hereinafter defined Trustee; and
' WHEREAS, neither the State of Minnesota nor any political subdivision
thereof (other than the City and then only to the extent of the trust estate pledged
in the Indenture) shall be liable on the Bonds, and the Bonds shall not be a debt of
I the State of Minnesota or any political subdivision thereof (other than the City and
then only to the extent of the trust estate pledged in the Indenture), and in any
event shall not give rise to a charge against the general credit or taxing power of
' the City, the State of Minnesota, or any political subdivision thereof;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CHAMPLIN, MINNESOTA:
Section 1. The City acknowledges, finds, determines, and declares that the
preservation of the quality of life in the City is dependent upon the maintenance,
I provision, and preservation of an adequate housing stock which is affordable to
persons and families, including elderly persons, of low or moderate income, that
accomplishing this is a public purpose, and that many would-be providers of housing
units in the City are either unable to afford mortgage credit at present market
rates of interest or are unable to obtain mortgage credit because the mortgage
credit market is severely restricted.
I Section 2. The City further finds, determines, and declares that it is in the
best interest of the City that it (1) issue its Multifamily Development Revenue
Bonds (FHA Insured Mortgage Loan-Heritage Park Apartments Project), Series
1988 in an aggregate principal amount not exceeding $2,930,000 (the "Bonds" or
"Series 1988 Bonds"), (2) provide for the use of the Series 1988 Bond proceeds by
the City to make a loan (the "Loan") to Heritage Park Apartments Limited
Partnership, a Minnesota limited partnership (the "Developer") in accordance with
the provisions of a Loan Agreement, dated as of November 1, 1988, by and between
the Developer and the City (the "Loan Agreement") and (3) to provide for the use
of the proceeds of the Bonds and the security of the holders of the Bonds pursuant
to the terms of an Indenture of Trust, dated as of November 1, 1988 (the
"Indenture"), by and between the City and First Trust National Association, as
trustee (the "Trustee"), all pursuant to the Program in order to provide affordable
housing to persons and families of low and moderate income.
Section 3. For the purpose of financing the Program there is hereby
authorized the issuance of the Series 1988 Bonds in an amount not exceeding
$2,930,000. The Bonds shall be dated as of November 1, 1988 and mature and bear
interest from the dated date payable semiannually in arrears on January 1 and July
1 of each year, commencing January 1, 1989, in the amounts set forth in the
Indenture. The Bonds shall 5e issued only upon receipt by the City of an allocation
of bonding authority from the :Minnesota Department of Trade and Economic
Development in an amount sufficient to issue the Bonds and upon the expiration of
the thirty-day review period provided to the Agency under the Acts and the failure
by the Agency to reject the Program within said review period.
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HOV 04 '08 16:40 HOL lE =.4
The Bonds shall be in such denomination, shall
be numbered, shall be subject to ,
redemption prior to maturity, shall be in such form and shall have such other
details and provisions as are prescribed by the Indenture and the Official Statement
hereinafter referred to
Section 4. The Bonds shall be special obligations of the City payable solely
from the revenues of the Program and other amounts included in or derived from
the trust estate described in the Indenture. The Bonds do not constitute an
indebtedness, liability, general or moral obligation (except to the extent of the
trust estate pledged under the Indenture) or a pledge of the faith and credit or any
taxing power of the City, the State of Minnesota, or any political subdivision
thereof. The City hereby authorizes and directs the Mayor of the City (the
"Mayor") and the City Administrator of the City (the "Administrator") to execute,
on behalf of and under the corporate seal of the City, the Indenture, and to deliver
to the Trustee the Indenture, and hereby authorizes and directs the execution of
the Bonds in accordance with the Indenture, and hereby provides that the Indenture
shall set forth the terms and conditions, covenants, rights, obligations, duties, and
agreements of the bondholders, the City, and the Trustee.
All of the provisions of the Indenture, when executed as authorized herein,
shall be deemed to be a part of this resolution as fully and to the same extent as if
incorporated verbatim herein and shall be in full force and effect from the date of
execution and delivery thereof, The Indenture shall be substantially in the form on
file with the City on the date hereof, and is hereby approved, with such necessary
and appropriate variations, omissions, and insertions as do not materially affect the
substance of the transaction and as the Mayor and Administrator, in their
discretion, shall determine, including, without limitation, a reduction in some or all
of the rates of interest for the various maturities; provided that the execution
thereof by the Mayor and Administrator shall be conclusive evidence of such
determination. 1
Section 5. The Mayor and the Administrator are hereby authorized and
directed to accept the offer of Piper, Jaffray & Hopwood Incorporated (the
"Underwriter") contained in the Bond Purchase Agreement, dated as of or prior to
the date of issuance of the Bonds (the "Bond Purchase Agreement"), to execute the
Bond Purchase Agreement on behalf of the City under the corporate seal of the
City, and to deliver the Bond Purchase Agreement to the Underwriter. All of the
provisions of the Bond Purchase Agreement, when executed and delivered as
authorized herein, shall be deemed to be a part of this resolution as fully and to the
same extent as if incorporated verbatim herein and shall be in full force and effect
eet
from the date of execution and delivery thereof. The Bond Purchase Agreement
be substantially in the form on file with the City on the date hereof, and is
hereby approved, with such necessary and appropriate variations, omissions, and
insertions as do not materially affect the substance of the transaction and as the
Mayor and Administrator in their discretion, shall determine; provided that the
execution thereof by the Mayor and the Administrator shall be conclusive evidence
of such determination.
Section 6. The Mayor and Administrator are hereby authorized and directed
to execute and deliver the Loan Agreement and, when executed and delivered as
authorized herein, the Loan Agreement shalt be deemed to be a part of this
resolution as fully and to the same extent as if incorporated verbatim herein and
shall be in full force and effect from the date of execution and delivery thereof.
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Mayor and Administrator in their discretion, shall determine; provided that the
execution thereof by the Mayor and the Administrator shall be conclusive evidence
of such determination.
Section 6. The Mayor and Administrator are hereby authorized and directed
to execute and deliver the Loan Agreement and, when executed and delivered as
authorized herein, the Loan Agreement shall be deemed to be a part of this
resolution as fully and to the same extent as if incorporated verbatim herein and
shall be in full force and effect from the date of execution and delivery thereof.
The Loan Agreement shall be substantially in the form on file with the City on the
date hereof, and is hereby approved, with such necessary variations, omissions and
insertions as do not materially affect the substance of the transaction and as the
Mayor and Administrator, in their discretion, shall determine; provided that the
execution thereof by the Mayor and Administrator shall be conclusive evidence of
such determination.
Section 7. In order to provide for the continuing operation of the Project
within the limitations set forth in the Indenture and the Loan Agreement, the
Mayor and Administrator are hereby authorized and directed to execute and deliver
' the Regulatory Agreement, dated as of November 1, 1988 (the "Regulatory
Agreement") between the City, the Trustee and the Developer and, when executed
and delivered as authorized herein, the Regulatory Agreement shall be deemed to
' be a part of this resolution as fully and to the same extent as if incorporated
verbatim herein and shall be in full force and effect from the date of execution and
delivery thereof. The Regulatory Agreement shall be substantially in the form on
file with the City on the date hereof, and is hereby approved, with such necessary
variations, omissions, and insertions as do not materially affect the substance of
the transaction and as the Mayor and Administrator, in their discretion, shall
determine; provided that the execution thereof by the Mayor and Administrator
shall be conclusive evidence of such determination.
The City Council of the City further approves the form of the Declaration
of Restrictive Covenants, dated as of November 1, 1988, to be executed by the
Developer and filed against the Project in order to establish the limitations set
forth in the Regulatory Agreement as covenants running with the land on which the
Project will be located.
Section 8. The Mayor and the Administrator are hereby authorized and
directed to execute and deliver the Arbitrage Rebate Agreement, dated as of
' November 1, 1988 between and among the City, the Developer and the Trustee (the
"Arbitrage Rebate Agreement") on behalf of the City under the corporate seal of
the City. All of the provisions of the Arbitrage Rebate Agreement, when executed
and delivered as authorized herein, shall be deemed to be a part of this resolution
as fully and to the same extent as if incorporated verbatim herein and shall be in
full force and effect from the date of execution and delivery thereof. The
Arbitrage Rebate Agreement shall be substantially in the form on file with the
City on the date hereof, and is hereby approved, with such necessary and
appropriate variations, omissions, and insertions as do not materially affect the
substance of the transaction and as the Mayor and Administrator in their
discretion, shall determine; provided that the execution thereof by the Mayor and
the Administrator shall be conclusive evidence of such determination.
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Section 9. The City Council of the City hereby approves the forms of the
FHA Note, FHA Mortgage and Purchase Payment Agreement to be executed by the
Developer to the Trustee, to provide additional security for the repayment of the
Bonds. The City Council of the City further approves the form of the Partner
Payment and Security Agreement to be executed by each Partner of the Developer
to secure the Developer's obligations under the Purchase Payment Agreement.
Section 10. All covenants, stipulations, obligations, representations, and
agreements of the City contained in this resolution or contained in the Indenture,
Loan Agreement, Regulatory Agreement, Bond Purchase Agreement or other
documents referred to above shall be deemed to be the covenants, stipulations,
obligations, representations, and agreements of the City to the full extent
authorized or permitted by law, and all such covenants, stipulations, obligations,
representations, and agreements shall be binding upon the City. Except as
otherwise provided in this resolution, all rights, powers, and privileges conferred,
and duties and liabilities imposed upon the City or the City Council by the
provisions of this resolution or of the Indenture, the Loan Agreement, the
Regulatory Agreement, the Bond Purchase Agreement or other documents referred
to above shall be exercised or performed by the City, or by such members, officers,
board, body, or agency as may be required or authorized by law to exercise such
powers and to perform such duties. No covenant, stipulation, obligation,
representation, or agreement herein contained or contained in the Indenture, the
Loan Agreement, the Regulatory Agreement, the Bond Purchase Agreement or
other documents referred to above shall be deemed to be a covenant, stipulation,
obligation, representation, or agreement of any officer, agent, or employee of the
City in that person's individual capacity, and neither the members of the City
Council of the City nor any officer or employee executing the Bonds shall be liable
personally on the Bonds or be subject to any personal liability or accountability by
reason of the issuance thereof. No provision, covenant or agreement contained in
the Indenture, the Loan Agreement, the Regulatory Agreement, the Bond Purchase
Agreement, the Bonds or in any other document related to the Bonds, and no
obligation therein or herein imposed upon the City or the breach thereof, shall
constitute or give rise to a general obligation of the City or any charge upon its
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general credit or taxing powers. In making the agreements, provisions, covenants
and representations set forth in the Indenture, the Loan Agreement, the Regulatory
Agreement, the Bond Purchase Agreement, the Bonds or in any other document
related to the Bonds, the City has not obligated itself to pay or remit any funds or
revenues, other than the trust estate described in the Indenture.
Section 11. Except as herein otherwise expressly provided, nothing in this '
resolution or in the Indenture, expressed or implied, is intended or shall be
construed to confer upon any person, firm, or corporation other than the City, the
holders of the Bonds, the Trustee, and the Developer to the extent expressly
provided in the Indenture, any right, remedy, or claim, legal or equitable, under and
by reason of this resolution or any provision hereof or of the Indenture or any
provision thereof, this resolution, the Indenture and all of their provisions being
intended to be and being for the sole and exclusive benefit of the City, the holders
from time to time of the Bonds issued under the provisions of this resolution and
the Indenture, and the Developer to the extent expressly provided in the Indenture.
Section 12. In ease any one or more of the provisions of this resolution or of
the Indenture or of the Bonds issued hereunder shall for any reason be held to be
illegal or invalid, such illegality or invalidity shall not affect any other provision of 1
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this resolution or of the Indenture or of the Bonds, but this resolution, the
Indenture, and the Bonds shall be construed as if such illegal or invalid provision
' had not been contained therein. The terms and conditions set forth in the
Indenture, the creation of the funds provided for in the Indenture, the provisions
relating to the application of the proceeds derived from the sale of the Bonds
' pursuant to and under the Indenture, and the application of all revenues, collateral,
and other monies are all commitments, obligations, and agreements on the part of
the City contained in the Indenture, and the invalidity of the Indenture shall not
affect the commitments, obligations, and agreements on the part of the City to
' create such funds and to apply said revenues, other monies, and proceeds of the
Bonds for the purposes, in the manner, and according to the terms and conditions
fixed in the Indenture, it being the intention hereof that such commitments on the
' part of the City are as binding as if contained in this resolution separate and apart
from the Indenture.
' Section 13. The City Council of the City, officers of the City, and
attorneys and other agents or employees of the City are hereby authorized to do all
acts and things required of them by or in connection with this resolution and the
Indenture and the other documents referred to above for the full, punctual, and
' complete performance of all the terms, covenants, and agreements contained in
the Bonds, the Indenture and the other documents referred to above, and this
resolution.
Section 14. The City hereby consents to the use by the Underwriter in
connection with the sale of the Bonds of the Official Statement, substantially in
the form on file with the City; provided that the Mayor may consent to such
variations, omissions, and insertions as are not materially inconsistent with the
form on file with the City on the date hereof. The Official Statement is the sole
material consented to by the City for use in connection with the offer and sale of
the Bonds.
Section 15. The Mayor and Administrator are authorized and directed to
' execute and deliver any and all certificates, agreements or other documents which
are required by the Indenture, the Loan Agreement, the Bond Purchase Agreement,
or the Regulatory Agreement, or any other certificates or documents which are
deemed necessary by bond counsel to evidence the validity or enforceability of the
Bonds, the Indenture or the other documents referred to in this resolution, or to
evidence compliance with Section 142(d) or Section 148 of the Internal Revenue
Code of 1986, as amended; and all such agreements or representations when made
shall be deemed to be agreements or representations, as the case may be, of the
City.
' Section 16. If for any reason the Mayor is unable to execute and deliver
those documents referred to in this resolution, any other member of the City
Council of the City may execute and deliver such documents with the same force
1 and effect as if such documents were executed by the Mayor. If for any reason the
Administrator of the City is unable to execute and deliver the documents referred
to in this Resolution, such documents may be executed and delivered by any other
officer of the City or member of the City Council with the same force and effect
' if such documents were executed and delivered by the Administrator of the City.
Section 17. All costs incurred by the City in connection with the issuance,
sale and delivery of the Bonds and the execution and delivery of the Indenture, the
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Loan Agreement, the Regulatory Agreement or the Bond Purchase Agreement or 1
any other agreement or instrument relative to the Bonds, whether or not actually
issued or delivered, shall be paid by the Developer or reimbursed by the Developer
to the City. ,
Section 18. This resolution shall be in full force and effect from and after
its passage.
Adopted by the City Council on November 7, 1988.
Mayor
ATTEST:
City Administrator '
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I `City Council Meeting - June 13, 1988
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Whenever the City Council or on a temporary emergency basis, the City Manager or
I Fire Chief shall determine that a shortage of water supply threatens the city,
it may by resolution limit the use, times, and hours during which water may be
used from the city water supply system.
IIAll voted in favor and the motion carried.
Ilg:PUBLIC HEARING: PROPOSED HOUSING PLAN AND PROGRAM.
Mayor Hamilton called the Public Hearing to order. Being there were no comments
11 from the public, Mayor Hamilton asked for a motion to close the public hearing.
Councilman Geving moved, Councilman Horn seconded to close the public hearing.
All voted in favor and the motion carried.
II Councilman Boyt: A good bit of this may be more relevant to item 14 and if it
is, just tell me and I'll be happy to wait until then. I think that we have to
do this in the context that we're living with a school system that refuses to
acknowledge that they're going to have increased class sizes. Along with that,
' if we just accept that as a given for a second, then I think the other thing
that we have to look at is that we're actually subsidizing some housing and if
we're going to subsidize the housing, I think we should insist upon the very
Ibest construction and to me that includes a building exterior. It includes the
relative sound proofing of the building and I think the issue of fire resistance
is important but that's been addressed. So there's really two issues that I
think are in our control that need to be addressed as we look at this whole
Iplan. One of those is that we're building the best possible building that we're
going to be happy to see there for the foreseeable future. I guess incorporated
in that is that the building be as quiet as possible, which is always an issue
Iin an apartment building.
Mayor Hamilton: So you're saying that there perhaps should be different
standards for housing of this type than for anybody else?
IICouncilman Boyt: I'm saying if we're putting the City's money into it, I want
,
to put the City's money into the best possible project. I think it gives us
Isome leverage.
Mayor Hamilton: In other words, use potentially different standards for this
Itype of building than for others? I guess I would see some problems with that.
Don Ashworth: The Housing and Redevelopment Authority has placed a priority on
IIthe housing project for the past two years. One of the difficulties has been
financing. Financing for any type of a housing project is very, very difficult
at this point in time. One of the vehicles that was found to potentially help
them, or there are two vehicles. One is by obtaining tax exempt financing and
to obtain tax exempt financing you need to designate at least 20% of the units
as elderly and low and moderate income. That subsidy is really coming from the
federal government in terms of the lower bond sale. The City is taking no risk
II on those bonds. They are in no way pledged by the good faith of the community.
The second form of subsidy that's being provided is from the Housing and
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City Council Meeting - June 13, 1988
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Redevelopment Authority and it represents an amount being offered to the
developers to insure that x number of those units, in this case 12, would in
fact receive a $200.00 per month subsidy. To the extent that that falls within
the pervue of the City Council, I'd almost have to ask the City Attorney. I
think though that the Council has authority in terms of the general powers to
approve or deny the request for the federal subsidy which is really again, not
something directly out of our pocket. In other words, through the lower
interest rate. The third point though, as I believe the answer will really came
in item 14. I think the developer is prepared to stand in front of you and to
go through the quality of construction that they are proposing. This also is an
issue that the HRA will be addressing this next Thursday night.
Councilman Horn: Just a concern. What typically happens, as we found out when '
we've gone through governmental agencies to get assistance on things, they sound
like a good deal up front but there are so many restrictions going in that you
end up spending more money than what you get back from it. I want to be careful
that this doesn't become that type of a program. That we put so many
restrictions on it that no one would ever use it. We looked into HRA type of
subsidized housing before when we had the economic housing crunch going on as a
means to develop this city and we asked all of the developers to come in and we
talked about a program to set that up. None of them were interested. They
didn't want to get involved in a government type of subsidize even though it
wasn't what we consider the typical subsidized housing. They didn't want to be
involved in a government program because of the concern over escalating costs
once they got into it. Just like our Lake Riley Chain of Lakes things. The
further you get into these programs, the more restrictions keep escalating. I
think we have to be very careful not to contribute to that.
Don Ashworth: If there is any concern that the quality of construction is not
going to be at the level that you want, maybe you should table the item until
you hear number 14. If you approve this and then end up trying to deny 14
because of architectural concerns that you have, I think you'd have a problem.
Councilman Boyt: So you're really saying vote against this if we've got any
architectural concerns?
Don Ashworth: No. ,
Councilman Geving: Just to do item 14 first.
Councilman Boyt moved, Councilman Geving seconded to table action on the
proposed housing plan and program until item 14 has been discussed. All voted
in favor and the motion carried.
REVIEW LANDSCAPING PLAN, CURRY FARMS ADDITION.
Mayor Hamilton: I think we've looked at this many times. You received a letter
from the Kerber's this afternoon. Perhaps each of you had an opportunity to
look at it. Do you have any comments Barb on the comments made by the Kerbers?
Barbara Dacy: I haven't received the letter yet that you're referring to. '
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I .„.:.,--:
CITY OF --
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CHANHASSEN
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L.., �''' 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
;;i (612) 937-1900 ,clY•„ IT A,l t
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MEMORANDUM
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5cted..�_•TO Don Ashworth, City Manager _ ".. , " ---°---,, coim-nissim
P FROM: Todd Gerhardt, Administrative Assistant J [
li DATE: June 13 , 1988 y, ?- -
SUBJ: Public Hearing for Proposed Housing Plan and Program
IIOn April 25 , 1988 , the City Council adopted a resolution
i establishing June 13 , 1988 at the public hearing date for the
II proposed Housing Plan and Program. Attached for the Council' s
review is the proposed Housing Plan and Program prepared by Ron
Batty from the LeFevere Law Firm. Staff has reviewed each of the
II documents and feel that both plans meet the intent of the Housing
and Redevelopment Authority action.
Recommendation
IIStaff recommends approval of the Housing Revenue Bond Program and
Housing Plan for construction of the Chanhassen Heritage Square
Apartment complex.
1
Il .Attachments
1 . Staff report dated April 21, 1988 .
2 . Council minutes dated April 25 , 1988.
3 . Proposed Housing Plans and Programs.
II
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CITY OF
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I . 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 1
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rrbn by City Admtnisfrotdt,
IMEMORANDUM - cl w_
TO: Mayor and City Council �"_`�_`—�
FROM: Todd Gerhardt Adminis ,`+!�y/L/( '
trative Assistant
IDATE: April 21, 1988 - - •-
SUBJ: Resolution Establishing a Public Hearing Date for a- __%h4_/��'
Proposed Housing Plan and Program i
On March 24, 1988, the Chanhassen Housing and Redevelopment
Authority came to agreement with the Chanhassen Downtown
II
Development Association regarding the construction of a sixty
unit apartment complex in the downtown area. To make the housing
project work, tax exempt bonds are required. These bonds are
II
solely backed by the rents from the apartment complex and cannot
become a liability of the City of Chanhassen. The sale of these
bonds is similar to the old industrial revenue bonds.
On June 15, 1987, the City Council gave preliminary
II
for a 60 unit apartment building (see attachment #1) . If approval
Council member would like to see the if spy
preliminary site plans for
II
the porject, please call me prior to Monday night' s meeting.
For Heritage Square Investor Limited Partnership to sell the
E bonds, the City must incorporate a housing plan and program.
Attached is the resolution establishing the date of June 13, 1988 III
for the public hearing on the proposed Housing Plan and Program
I and necessity to issue revenue bonds.
I!
Recommendation
1. Staff recommends approval of the resolution establishing
June 13 , 1988, as the public hearing date for the proposed
Housing Plan and Program,ram and to
give preliminary approval for the
issuance of bonds to finance the 60 unit apartment complex.
Additionally, staff should be directed to prepare a Housing Plan
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and Program.
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III
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If : . .
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CITY OF CHANHASSEN, MINNESOTA C
if RESOLUTION NO.
1
It RESOLUTION ESTABLISHING THE DATE FOR A PUBLIC
HEARING ON A PROPOSED HOUSING PLAN AND PROGRAM
PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C; 1
AUTHORIZING PUBLICATION OF NOTICE THEREFOR, AND
GIVING PRELIMINARY APPROVAL TO A PROPOSAL FOR A
PROJECT TO BE FINANCED THEREUNDER
WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), authorizes a city
to plan, administer and make or purchase a loan or loans to finance one or more i
multifamily housing developments or the rehabilitation of multifamily housing
Idevelopments after adoption of a housing plan; and
WHEREAS, the housing plan must be considered at a public hearing held
Rafter notice published at least thirty (30) days Y ( y prior to the date of said hearing I
after which the housing plan may be adopted by resolution of the governing body of
the city with or without amendment; and
IWHEREAS, the Act requires that any such housing plan shall be submitted to
the metropolitan council for its review and comment; and t
I WHEREAS, the program for the issuance of bonds to finance a multifamily
housing development must be considered at a public hearing after notice published 1
at least fifteen (15) days prior to the date of said hearing after which the program
I may be adopted by resolution of the governing body of the city with or without
amendment; and
WHEREAS, the City of Chanhassen (the "City") has received a proposal from
I Heritage Square Investors Limited Partnership, a Minnesota limited partnership
(the "Developer") that the City adopt a program to issue its multifamily housing 1_
revenue bonds in an amount presently estimated not to exceed $3,000,000 (the
P "Bonds") to finance the acquisition of land and construction of an approximately 60
unit multifamily rental housing development (the "Project") to be located at the
Southwest corner of the intersection of Great Plains Boulevard and ChanView t
Street;
INOW, THEREFORE, BE IT RESOLVED BY THE f
CITY COUNCIL OF THE L
CITY OF CHANHASSEN, MINNESOTA, THAT:
1. The City Council of the City of Chanhassen (the "City") will conduct g
a public hearing on the proposed housing plan on June 13, 1988 at 7:30 p.m.
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City g
2. The Cit Manager of the City hereby� y is hereb authorized to cause a public
notice, substantially in the form of the notice attached hereto as Exhibit A, to be
—
published once in a newspaper of general circulation in the City at least thirty (30)
days prior to the date established for the public hearing by the preceding paragraph
of this resolution. L
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3. The City Manager of the City is hereby authorized to proceed, in
cooperation with the law firm of LeFevere, Lefler, Kennedy, O'Brien & Drawz with
the preparation of the housing plan and program relating to the Project, for
presentation to this City Council at the public hearing herein authorized.
I 4. That the City Council of the City hereby preliminarily approves the
proposal of the Developer for the financing of the Project through the issuance of IIII
the Bonds, subject to the final approval of the terms of the Bonds and the related
documents among the City, the Developer and the initial purchaser of the Bonds, to
the compliance with all requirements under the Act, and to the receipt by the City Ili
of an allocation of authority to issue the Bonds pursuant to Minnesota Statutes,
Chapter 474A. Notwithstanding the foregoing, the preliminary approval granted
I hereby shall not obligate or commit the City to issue the Bonds, and the City
reserves the right at its discretion to withdraw or refrain from participating in the III
financing of the Project at any time.
I5. All fees and expenses incurred by the City in connection with the
preparation of the housing plan and program for the issuance of the Bonds shall in
any event be paid or reimbursed by the Developer.
III
ADOPTED: , 1988
ATTEST:
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- Mayor
ICity Manager
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I EXHIBIT A f
ItNOTICE OF PUBLIC HEARING ON A HOUSING PLAN
I UNDER MINNESOTA STATUTES, CHAPTER 462C, AS C
AMENDED, INCLUDING A PROGRAM TO FINANCE A
lit MULTIFAMILY HOUSING DEVELOPMENT.
CITY OF CHANHASSEN, MINNESOTA I
NOTICE IS HEREBY GIVEN that the City Council of the City of
Chanhassen, Minnesota (the "City") will meet on June 13, 1988, at 7:30 p.m. at the
li City offices in Chanhassen, Minnesota, for the purpose of conducting a public
hearing on the adoption of a housing plan for the City prepared in compliance with
Minnesota Statutes, Chapter 462C. The plan includes a program to finance the [
cost of a multifamily rental housing development consisting of the construction of
a 60-unit multifamily rental housing development. The Developer of the Project
will be Heritage Square Investors Limited Partnership, a Minnesota limited
partnership, or its successors or assigns, which will own and operate the Project.
The proposed Project will consist of the construction of a building and the
installation of equipment in connection therewith for use as a 60-unit multifamily
rental housing development. The site of the proposed Project is located on the
southwest corner of the intersection of Great Plains Boulevard and Chan View
Street in the City of Chanhassen. The size of the bond issue proposed for the
Project is presently estimated not to exceed $3,000,000. The bonds shall be limited
obligations of the City and the bonds and interest thereon shall be payable solely
I from the revenues pledged to the payment thereof, except that such bonds may be
secured by a mortgage and other encumbrance on the Project. No holder of any
i_ such bonds shall ever have the right to compel any exercise of the taxing power of
the City of Chanhassen to pay the bonds, or the interest thereon, nor to enforce
payment against any property of the City except the Project.
All persons interested may appear and be heard at the time and place set
forth above.
May 5, 1988 I_
it BY ORDER OF THE CITY COUNCIL
OF THE CITY OF CHANHASSEN E
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CERTIFICATION OF MINUTES
iRESOLUTION ESTABLISHING THE DATE FOR A PUBLIC
HEARING ON A PROPOSED HOUSING PLAN AND PROGRAM
PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C,
iAND AUTHORIZING PUBLICATION OF NOTICE THEREFOR
Municipality: City y of Chanhassen,uncil Minnesota _
Y
I Governing bod : Cit Co
IMeeting: A meeting of the City Council of the City of Chanhassen,
Minnesota held on the day of
1988 at p.m. at 690 Coulter Drive, Chanhassen,
IMinnesota.
Members
present:
Members ..
absent:
1
I Documents: A copy of a resolution adopted by the City Council of the City
of Chanhassen at said meeting.
Certification: -
II, , City Manager of the City of Chanhassen, do
hereby certify the following:
IAttached hereto is a true and correct copy of a resolution on file and of
record in the offices of the City of Chanhassen, which resolution was adopted by it
the City Council at the meeting referred to above. Said meeting was a regular
Imeeting of the City Council, was open to the public, and was held at the time and
place at which meetings of the City Council are regularly held. Member
moved the adoption of the attached resolution. The motion for
I adoption of the attached resolution was seconded by Member A
vote being taken on the motion, the following voted in favor of the resolution: •
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and the following voted against the resolution:
Whereupon said resolution was declared duly passed and adopted. The attached
resolution is in full force and effect and no action has been taken by the City
Council of the City of Chanhassen which would in any way alter or amend the
attached resolution.
Witness my hand officially as the City Manager of the City of Chanhassen,
Minnesota, this day of . , 1988.
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LAND DEVELOP:IENT APPLICATION
CITY OF CHANHASSEII
690 Coulter Drive
Chanhassen, MN 55317
1
(612) 937-1900
Chanhassen Downtown First American
APPLICANT: Development Associates OWNER: Development Corporation
IADDRESS P.O. Box 100 ADDRESS 5100 Eden Avenue S. , Suite 305
Chanhassen, MN 55317 Edina, MN
55436
TELEPHONE (Daytime) 934-1505 Zip Code TELEPHONE 929-2122 Zip Code
REQUEST: •
Zoning District Change ` Planned Unit Development
IZoning Appeal Sketch Plan
Zoning
.t Sketch
Preliminary Plan
—'- Final Plan
Zoning ,Text Amendment Subdivision
ILand Use Plan Amendment Platting
Conditional Use Permit Metes and Bounds
I Street/Easement Vacation
II
Site Plan Review
Wetlands Permit
IPROJECT NAME Town Square Apartments
PRESENT LAND USE PLAN DESIGNATION High Density Residential and Commercial
IREQUESTED LAND USE PLAN DESIGNATION Same
PRESENT ZONING CBD, R12
IREQUESTED ZONING Same
1 USES PROPOSED 60 Unit Apartment Building
SIZE OF PROPERTY Approximately 2.5 Acres
LLOCATION See Attached Site Plan
REASONS FOR THIS REQUEST
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LEGAL
DESCRIPTION (Attach legal if necessary)
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MAY 0 6 i:;57
I C17Y OF CHANHASSEM
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City Council Meeting - June 15, 1987
1
6. The applicant shall enter into a development agreement with the City
II and provide necessary financial sureties for completion of the
improvements.
•
III 7. Submittal of an acceptable final drainage plan including calculations
for review by the City, Watershed District, and DNR and compliance
with all applicable conditions.
lir 8. A homeowners association shall be established to maintain the cul-de-
sac island.
ill 9. A culvert shall be installed within the ravine to allow drainage and
stabilization of the area.
10. The City Engineer must approve the design of the cul-de-sac island.
All voted in favor except Councilman Johnson who opposed and motion carried.
;I PLANNED UNIT DEVELOPMENT TO CONSTRUCT A 60 UNIT APARTMENT BUILDING ON 2.5
I ACRES, LOCATED ON THE SOUTH SIDE OF CHAN VIEW, CHADDA AND FIRST AMERICAN
DEVELOPMENT ASSOCIATION.
Barbara Dacy: The Planning Commission recommended approval of the request i
subject to six conditions as noted in the Staff update. Staff is requesting
that an additional condition, a detail item that we overlooked, that all
parking areas be lined with concrete curbing. Under the City Council section
of the Staff Report, the proposed motion is left out and you just have the
conditions there but that should read that should the Council wish to approve
I the subdivision that they approve it subject to the 7 conditions that are on E
Rage 7.
I Councilman Johnson: On number 7 should we say all outdoor parking areas since L
they have an indoor parking area and you don't need to put concrete curb in
I - the basement? I like this. I like the looks of this and.,everything else. I
wish all of our apartment complexes were as nice as this. `
Councilman Boyt: There was a comment raised at
the Planning Commission about is_
II the fire protection and you indicated you are working with the Fire Marshall
on that. Following what we just heard about the Eagan community, assure me L
that we're not going to go through that.
11 Tom Zumwalde: I wish I could. I'm not sure what happened down at Eagan. It
was a large complex and apparently something went ary out there. This L
building, our intent is not to install sprinklers and that is fairly typical
II in most apartment buildings. Typically the high rises are but not the 3
story. It is however, has fire walls, fire partitions, it has all the [..
elements required to make it a very safe building. Again, I'm not sure what
happened out in Eagan. I hope nothing like that happens here. What I've
heard on the news someone was barbequing.
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City Council Meeting - June 15, 1987
1
Mayor Hamilton: It was a barbeque that tipped over on a balcony on the third
ur1 floor and our ordinance already prohibits barbeques on apartment balconies.
Councilman Boyt: I don't know that we're real well prepared to fight a fire
I that's very high and I'm concerned. We're building this with a wood frame and
II
I watched one burn down when it was in construction and they go up real fast.
Mayor Hamilton: Jim Chaffee who is our Fire Marshall could probably respond
to your concern.
Jim Chaffee: We have discussed this issue, or at least I've discussed this
II
I issue with the Fire Chief and Fire Inspector and we are considering and I
don't know if we brought this up but requiring sand piping which would really
help us out in any kind of fire. It would prevent any situation like happened
II
in Eagan and probably would not allow barbeques and charcoal grills on the
balcony in this case. We are very concerned about that issue to make it as
safe as possible.
Councilman Boyt: My other question is the 60 foot space loss for retail.
II
Brad, since you're involved with both ends of this, maybe you can tell me a
little about the consideration of that lost retail space.
II1 Brad Johnson: You guys remember what the overall downtown plan was and we
were going to extend the retail in a long line up and down the city. In the
process we discovered one, that there may not be an immediate market for that
type of space in that one location and in addition to that, we also needed to
_ increase the amount of increments that we could generate. In other words,
build bigger buildings. So we put the apartment building in. The apartment
1 building was originally supposed to be 40 units so the' site plan we're working
on currently and brought to the HI on Thursday is to change the plan and make
use of now the beautiful clock you just approved will be located right here as
IL an entrance into the whole town. The apartment itself looks like the clock.
So as you come into the community you'll have that and actually have a little
courtyard located right in here. What they were concerned about is we would
not be able to set this retail strip all the way down the street. We will not
li
i_ be doing that because that's not in the plan currently. Instead we're going
to put a two story, what we'll call a medical arts building in there which we
were contacted by Dr. McCullum who is at Chanhassen Clinic and they are going
IL to move their facility there if we can get the whole transactions put
together. Then we have a daycare center going in here that we will be showing
before you here in the next two weeks that will go in this location and we're
excited about all of this because it's a start doing the downtown and maybe „I!
hopefully getting out of that side of the street. That's the current plan.
' I!
Councilman Boyt: What are we going to do with this variance problem? I know
I. I talked to Barbara earlier today. I'm not sure that I got the answer down
quite right as to the difficulty with rezoning this central business district
but that's the third issue and I guess I would like to hear a quick synopsis
1 Barb on how we're going to handle this.
Barbara Dacy: Your question is, whether or not the entire site can be rezoned
to the central busines district up to Chan View. We did not recommend that to
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City Council Meeting - June 15, 1987
I
i r the applicant because rezoning the ■
g property to central business district also
includes other commercial uses. If, for some reason, the multiple family
project were to fall through, you would have commercial uses located directly
onto Chan View, directly across from the residential development. Other
avenues that were discussed with the applicant were a zoning ordinance
amendment to allow high density district around 23 units per acre and the
final option was the PUD application allowing the Council a little more t
!! leverage in negotiating with the applicant as to establishing things like
pedestrian connections, allowing the project with the tax increment district
and requiring additional landscaping. That was why the rezoning issue was
not.. .
Councilman Geving: I'm ready to approve this but I have to put this in
because the neighbors have called me in this area. I live within two blocks
of this area and there has been some discussion and most of them have appeared
II here before the Planning Commission. I think the various comments were that
it's just too much density for our area and they would have liked to have seen [
a 48 or 50 unit apartment building here. I want to throw that in as a plug
II for the people but I personally approve of it. I think we need the 1 and 2
bedroom units in the city and I'm all in favor. I do have to ask one
i question. Whether or not this unit was projected in our downtown
redevelopment district for 60 units?
Don Ashworth: Yes.
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II Mayor Hamilton: I just would say that I live in the apartments across the
street from this on Chan View and those people there are anxious to see it I
built because they would like to move into it so I think it's a really nice
IIproject and I would like to see it move ahead.
Councilman Horn moved, Councilman Geving seconded to approve the PUD
application for the 60 unit apartment complex located on the south side of
II Chan View with the following conditions:
1. A detailed utility plan showing water, sewer and storm
sewer
11 connections, as well as fire hydrant locations shall be submitted
prior to building permit issuance.
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II 2. A revised landscaping plan shall be submitted detailing additional
screening along the south, west and east property lines prior to t
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building permit issuance. L
II3. A pedestrian walkway shall be provided on the site in conjunction
with the development plans for the retail projects to be developed to `
- the south and east of this parcel.
1 4. Detailed facia and signage plans shall be submitted for Planning
Commission and City Council final review prior to building permit
issuance.
111 5. Removal of existing single f
g g family residence including the proper
- L - demolition procedures.
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,- City Council Meeting - June 15, 1987
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6. Detailed lighting plans shall be submitted prior to building I
or lding permit
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7. All outside parking areas shall be lined with concrete curbing.
All voted in favor except Mayor Hamilton I
Y who abstained and motion carried.
IICONDITIONAL USE PERMIT FOR A PRIVATE STABLE, 3530 HIGHWAY 7, DAVID OBEE.
Jo Ann Olsen: The applicant is requesting qu ng a conditional use permit for a
II
li private stable in the RSF district. It is going to be limited to two horses.
Staff is recommending approval. We feel that the site is screened from all
surrounding properties. Is large enough for two horses and it is reviewed
annually for the horse permit so any problems with it can be taken care of. II
Staff is recommending approval with the conditions set forth.
Councilman Horn: What's the size of the stable?
I
Jo Ann Olsen: There are two proposed sizes but the applicant has stated that
he decided he isn't going to build any building right now if it's going to be
II
a problem.
1 Councilman Geving: I read
g all the comments from the Planning Commission like
the rest of you but I really wonder what the intent of Mr. Obee is. He's
It
I talking about a very large building then we find out he owns a lot of
equipment and so forth. Whether or not the stabling of these two horses is
really the issue. I don't mind him having two horses in that area. It's a
II
stable permit request. I have seen the letters and comments from the
neighbors but I'm most concerned about what's going to go in that building
that he's proposing. I wonder what his motive is and question that. Other
than that, I don't know how we can issue a stable permit just to put horses
I_ in. I don't know how that works with Mr. Headla.
Jo Ann Olsen: There is an existing building that he would b-. using for the
stable instead of constructing a new one. III
Councilman Geving: So in fact, if he had the horses he could move them in a
I_ use them if he had the permit? I have no other comments. nd II
Councilman Johnson: I went out and looked at the site and noticed there are I
existing stables to the west and pretty well treed area. For two horse and
1_ limited use of the building in there for just horse stables and stuff I:associated with that, I don't have a problem with this.
I_ Bill Schmid: I own property directly west of Mr. Obee's proposed site. A
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few years ago a few of the present Council members were here at that time and
there was a permit granted to a Mr. James Frizzell on the west side of me for
two horses. Jim keeps the place very neat. Very clean. Very tidy.
Regardless of all that, when it rains, it smells. You can't get around it.
It's a pasture. Now there are horses on the east side and I'm very much
[.. opposed to it 100%. There are 73 lots and I believe you have a letter from
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City Council Meeting - April 25, 1988 /���� CNi�1G17 �,(
117 v`
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ikWing and couldn't get a hold of him, I didn't sense that there was an '
1 overwhelming need to get this filled quickly. I'm disappointed that we're not
I interviewing any of these candidates. I'm disappointed that we have not seen
any of the objectives the Public Safety Commission had in filling these
1 positions. I don't know if they took geography into account. All I've got,
and I've said this every time, I think that we start people off the wrong way
on commissions when the council does not interview them. I think that this was
an opportunity in which we could have begun working out this system of having
objectives that the Council and the Commissions agreed would be followed when
people were sought and we didn't do it. It's not to say that these people
Ill aren't good people and worthy of being on the Commission. It's just, I don't
see why we're doing it this way. That's all I've got.
Mayor Hamilton: Just to comment, we had ten candidates and all excellent
people. It was not an easy task to select them. We looked at everything we
could think of into consideration.
IICouncilman Boyt: Are we finally done with this way of appointing people?
Mayor Hamilton: I don't know. We've talked to the staff about what we want to
do and I guess it's up to them to come back and start changing things.
IICouncilman Horn: It was going to come back as an item and I haven't seen it
yet.
I RESOLUTION ESTABLISHING THE PUBLIC HEARING DATE FOR THE PROPOSED HOUSING PLAN.
40
ii'i Resolution #88-39: Councilman Johnson moved, Councilman Horn seconded to
approve the resolution establishing June 13, 1988 as the public hearing date
for the proposed housing plan. All voted in favor and motion carried.
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ItCOUNCIL PRESENTATIONS: TH 5 UPDATE, COUNCILMAN HORN.
Councilman Horn: The bottom line is, by 1990 we're going to have a four lane
I highway up to Park Avenue in the Industrial Park which is a change and that's
planned and scheduled by MnDot.
ItMayor Hamilton: We got a bill passed and we got some funds.
COMPOSTING FACILITY IN CHASKA, COUNCILMAN JOHNSON AND COUNCILMAN GEVING.
ItCouncilman Geving: I think we ought to forget about this tonight Jay.
lit Councilman Johnson: Yes, we're all very tired. Unless everybody has digested
this huge thing. Basically there's an Environmental Assessment Worksheet
that's out for the Chaska, proposed composting facility in Chaska. If we want
to comment on it, it has be to by next Wednesday. The necessity of commenting
I on it is we don't have to. We're not required to comment one way or the other.
I've recommended that, in fact I've already sent my personal comments which
L I've attached here, have been sent in and I believe that the EAW provided is in
!I many cases almost lip sevice to the environmental issues involved. There are
II 81
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CITY OF CHANHASSEN HOUSING REVENUE BOND PROGRAM
CHANHASSEN HERITAGE SQUARE PROJECT
HERITAGE SQUARE INVESTORS LIMITED PARTNERSHIP
MAY 1988
Prepared By:
LeFevere, Lefler, Kennedy
O'Brien & Drawz,
a Professional Association
2000 First Bank Place West
Minneapolis, Minnesota 55402
(612)333-0543
3
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a CHANHASSEN HERITAGE SQUARE PROJECT
IIPursuant to Minnesota Statutes, Chapter 462C (Act) , the City of
Chanhassen, Minnesota (City) has been authorized to develop, plan and adminis-
ter programs for making construction and permanent financing loans for multi-
family housing developments located within its boundaries, under the circum-
stances and within the limitations set forth in the Act. Section 462C.05,
!I Subdivision 2 of the Act provides that a multi-family housing project
(Project) may consist of a development in which at least 20 percent of the
units are affordable to persons and families with adjusted gross income not in
II excess of 80 percent of the median family income of the metropolitan area.
In creating its multi-family housing finance program (Program) , the City
r has found and determined that the preservation and enhancement of the high
II quality of life in Chanhassen is dependent upon the maintenance and provision
of adequate, decent, safe and sanitary housing stock; and that encouraging the
4 provision of such housing is a public purpose and will benefit the citizens of
II Chanhassen; that a need exists within Chanhassen to provide in a timely
fashion additional and affordable housing for persons residing and expected to
reside in the City; that a need exists for mortgage credit to be made avail-
able for the new construction of additional multi-family housing.
The proposed Project will be constructed by Heritage Square Investors
4 Limited Partnership, a Minnesota limited partnership (Developer) . The Project
11 will consist of 60 residential units and will be constructed at the intersec-
tion of Great Plains Boulevard and Chan View Street in Chanhassen. The units
4 are expected to be available for occupancy in mid-1989.
IIThe City believes that the Project will assist it in addressing its
housing needs by generally increasing the supply of rental housing available
I- to low and moderate income persons. The City also believes, based on the
1! representations of the Developer, that the Project is not economically feas-
ible and would not have been constructed without housing revenue bond funds
available for permanent financing.
The Project will be funded through the issuance of City of Chanhassen
housing revenue bonds, Chanhassen Heritage Square Project, Series 1988
(Bonds) . The Bonds will be secured by a mortgage on the Project.
The City, in establishing the Program, has considered generally available
information regarding conditions in the housing industry and the information
contained in the City's Housing Plan, including particularly (i) the availa-
bility and affordability of other government housing programs; (ii) the `
availability and affordability of private market financing for multifamily
housing units; (iii) an analysis of the population; (iv) the recent housing
II trends and future housing needs of the City; and (v) an analysis of how the
Program will meet the needs of elderly and physically handicapped persons
- residing and expected to reside in the City.
IIThe City, in adopting the Program, has further considered (i) the amount,
timing and sale of the Bonds to finance the Program, fund the appropriate
treserves and pay the cost of issuance; (ii) the method of monitoring and
II 1
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implementation of the Program to ensure compliance with the City's Housing
Plan and its objectives; (iii) the method of administering, servicing, and
supervising the Program; (iv) the cost to the City, including future adminis-
trative expenses; (v) the restrictions on the multifamily development to be
financed under the Program; and (vi) certain other limitations.
The C'.*.y, in adopting the Program, considered the potential financing
impact of Bond issuance on affected public agencies. In addition, the City
reviewed the method of marketing the Program. Such review examined the equal
opportunity for participation by (i) minorities; (ii) households with incomes
at the lower end of the range that can be served by the Program; (iii) house-
holds displaced by public and private actions; and (iv) accessibility to the
handicapped.
The Project will be constructed pursuant to Section 462C.05, subd. 2 of
the Act.
Subsection A. Definitions.
The following terms used in the Program have the following meanings,
respectively:
1) "Act" means Minnesota Statutes, Chapter 462C, as currently in effect
and as the same may be amended from time to time.
2) "Agency" means the Minnesota housing finance agency, or any successor
to its functions.
3) "Bonds" means the housing revenue bonds to be issued by the City to
finance the Program and includes any and all other obligations payable as
provided hereunder.
4) "City" means the City of Chanhassen, Minnesota.
5) "Developer" means Heritage Square Investors Limited Partnership, a
Minnesota limited partnership.
6) "Housing Plan" means the City of Chanhassen's housing plan prepared
pursuant to Section 462C.03 of the Act.
7) "Housing Unit" means any one of the apartment units located in the
Project, occupied by one person or family, and containing complete living
facilities.
„;
8) "Land" means the real property upon which the Project is situated.
9) "Program" means the program for the financing of the Project pursuant
to the Act.
10) "Project" means the 60-unit multi-family development.
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Subsection B. Program for Financing the Project.
The City hereby establishes a Program to make a loan for the permanent
mortgage financing for the Project. In establishing and carrying out the
Il Program, the City may exercise, within its corporate limits, any of the powers
the Agency is authorized to exercise under the provisions of Minnesota
Statutes, Chapter 462A.
IF The City will hire no additional staff for the administration of the
Program. The City will, however, incur certain costs for administration
including an estimated $1,000 for preparation of reports. The City will
II select a trustee for the Program and the bondholders which is experienced in
trust management and has a large corporate trust portfolio. The trustee will
administer and maintain the Bonds sold to finance the Program.
The city council hereby authorizes and directs the city manager to
monitor all negotiations between the various parties taking part in the
Program to ensure that the documents of the Program are consistent with the
I/ City's Housing Plan and the requirements of the City as set forth in this
Program. Prior to the adoption of the resolution authorizing the sale of
Bonds to finance the Program, the city manager shall report to the city
II council his findings as to the consistency of the documents regarding the
Project with the Housing Plan and the policies of the City contained in this
Program.
II It is contemplated that the Bonds shall bear interest at a variable rate
per annum as set forth in the Program documents. The Bonds will not be
general obligation bonds of the City, but are expected to be paid from reven-
ues and properties pledged to the payment thereof, which includes a mortgage
on the Project.
I! Subsection C. Local Contributions to the Program.
It is not contemplated that any additional public financing or contribu-
II tions will be needed for the completion of the Project, or for the operation
of the Program, other than the Bond issue described above, except that the
City may use tax increment funds generated by the development to assist the
Project.
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1. Subsection D. Standards and Requirements Relatin: to the Financin: of
11 the Project Pursuant to the Program.
1_ The following standards and requirements shall apply with respect to the
operation of the Project by the Developer pursuant to this Program:
11 - 1) Substantially all of the proceeds of the sale of the issue of Bonds
will be used to provide funds for the permanent financing of the Project,
II which will include a total of 60 residential units. The proceeds of the Bonds
will be made available to the Developer pursuant to the terms of the Bond
offering, which may include certain covenants to be entered into between the
IICity and the Developer.
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2) The Developer or owner or the Project will not arbitrarily reject an 1
application from a proposed tenant because of race, color, creed, religion,
national origin, sex, marital status, or status with regard to public assist-
ance or disability.
3) Each Housing Unit within the Project must be used primarily for
residential purp'ses.
4) No Housing Unit may be in violation of applicable zoning ordinances or
other land use regulations, including any urban renewal plan or development
district plan, and including the state building code as set forth under
Minnesota Statutes, Section 16.83, et seq.
Subsection E. Evidence of Compliance.
The City may require from the Developer or such other persons deemed
necessary at or before the issuance of the Bonds, evidence satisfactory to the
City of the ability and intention of the Developer to complete the Project,
and evidence satisfactory to the City of compliance with the standards and
requirements for the making of the financing established by the City, as set
forth herein; and in connection therewith, the City or its representatives may
inspect the relevant books and records of the Developer in order to confirm
such ability, intention and compliance. In addition, the City may periodic-
ally require certification from either the Developer or such other persons
deemed necessary concerning compliance with various aspects of the Program.
II
Subsection F. Issuance of Bonds.
To finance the Program authorized by this section, the City may, by il
resolution, authorize, issue and sell housing revenue Bonds, in an aggregate
principal amount presently estimated not to exceed $3,000,000, pursuant to the
II
Act. In issuing the Bonds, the City may exercise, within its corporate limits
of the City, any of the powers the Agency is authorized to exercise under the
provisions of Minnesota Statutes, Chapter 462A, without limitation under the
provisions of Minnesota Statutes, Chapter 475.
Subsection G. Severability.
The provisions of the Program are severable and if any provisions,
sentences, clauses or paragraphs are held unconstitutional, contrary to
statute, exceeding the authority of the City or otherwise illegal or
inoperative by any court of competent jurisdiction, the decision of such court
shall not affect or impair any of the remaining provisions of the Program.
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Subsection H. Amendment.
The City shall not amend the Program to the detriment of the holders of
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the Bonds while such Bonds as are authorized herein are outstanding.
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1! HOUSING PLAN
FOR
CHANHASSEN, MINNESOTA
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May 1988
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Prepared By:
LeFevere, Lefler, Kennedy,
O'Brien & Drawz
a Professional Association
2000 First Bank Place West
Minneapolis, Minnesota 55402
(612)333-0543
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Table of Contents
Section I. INTRODUCTION AND INVENTORY
1
I.I. Housing Availability 1 111
A. Number and Type of Housing Units 1
B. Tenure 1
C. Cost of Housing 1
1.2. Housing Quality 2 r
A. Overcrowding 2
IF
B. Age of Housing 2
C. Housing Lacking Complete Plumbing Facilities 3
Section II. ANALYSIS 3
2.1. Housing Availability 3
2.2. Housing Quality 4
Section III. POLICY PLAN 4
3.1. Housing Availability 5
A. Housing for All Ages 5
B. Open Housing 6
C. Development Review Process 6
D. Land Use Regulations 6
E. Special Land Use and Zoning Provisions 7
F. Housing Types Offered 7
G. Tax Increment Financing and Housing Revenue Bonds 9
3.2 Using Quality 8
A. Compatible Development 8
B. Protection of Natural Resources 8
C. Providing Community Services 8
D. Pollution 9
E. Multiple Family and Attached Single Family Housing 9
Section IV. IMPLEMENTATION PROGRAM 10
4. 1. Housing Objectives 10
4.2. Affordable Housing 10
4.3. Land Use 11
List of Figures
Housing b
Figure 1
$ g Units by Housing Type 1
Figure 2 Market Value of Single Family Units 2
Figure 3 Average Cost of Single Family Housing 2
Figure 4 Age of Housing Units 3
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Section 1. INTRODUCTION AND INVENTORY.
This Housing Plan combines information from the 1988 amendments to the
Chanhassen Comprehensive Plan and the U.S. Census of the Population for 1980
and meets the requirements for a Housing Plan specified in Minnesota Statutes,
Section 462C.03. This Plan i' prepared and sr-,!.tte.r fn;- rev.tPw by the appro-
priate governmental bodies in fulfillment ' of the requirements of Minnesota
Statutes, Chapter 462C.
The purpose of the housing inventory is to examine the status of housing
in Chanhassen. In order to do this, it is necessary to focus on the various
elements which affect housing for residents of the City. Some of the factors
to be examined in the inventory include the kind, cost, age, and condition of
the housing stock.
1. 1. HOUSING AVAILABILITY.
A. Number and Type of Housing Units.
In Chanhassen there were 2944 housing units in 1986. Although the
majority of these were single family detached houses, a number of other types
of housing were also represented in the City's stock.
Figure 1
1986 Housing Units by Type
No. 7
Single Family Detached 2168 74.0
Farms 69 2.0
Duplexes 144 5.0
Townhouses 188 6.0
Multi-family 375 13.0
Total 2944 100.00
B. Tenure.
Owner-occupied housing prevails in Chanhassen. Of all housing units, 75%
were owner-occupied in 1980.
C. Cost of Housing.
The cost of housing in Chanhassen represents a significant proportion of
the income of persons residing in the City. This is particularly true for
households occupying rental housing.
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Figure 2
Estimated Market Value of
Single Family Housing Units, 1980
IIHousing Unit Value Percentage
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II Less than $39,999 2.9
$40,000 - 49,999 4.1
$50,000 - 59,999 36.8
$60,000 - 99,999 25.9
II $100,000 - 149,999 20.9
More than $150,000 9.4
ill The cost of housing in Chanhassen may also be illustrated by the cost of new
construction. The following figures are the average cost of a single-family
detached house within the City for a recent six-year period:
11 Figure 3
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Average Cost of
Single-Family Detached Housing
1 Year Cost
II1981 $107,591
1982 100,789
il 1983 86,391
1984 85,052
1985 78,614
1986 92,491
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I! 1.2. HOUSING QUALITY.
A. Overcrowding.
111 A housing unit is considered to be overcrowded if there is more than one
person per room. Out of 2075 occupied housing units in Chanhassen in 1980,
only 41 or two percent were considered to be overcrowded.
B. Age of Housing.
II - Chanhassen's housing stock spans a large age range, with a considerable
concentration among units constructed since 1960. This is significant since
the age of housing is generally related to the upkeep needed to maintain the
unit in good condition.
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Figure 4
Age of Housing Units
Year Built No.
1939 or before 299 11.0
1940 - 1959 533 19.0
1960 - 1969 609 22.0
1970 - 1979 854 31.0
1980 - 1985 446 16.0 1
Total 2741 100.00
C. Housing Lacking Complete Plumbing Facilities.
Chanhassen has very few housing units which lack complete and exclusive
plumbing facilities. Of all units in Chanhassen, only 1.0% lack such facili-
ties.
Section II. ANALYSIS.
The purpose of this portion of the Housing Plan is to examine present and
future issues which face the City in attempting to provide adequate housing
opportunities for its present and future residents. In order to do this, it
is necessary to focus on the primary factors which affect the availability and
quality of housing.
2.1. Housing Availability.
In Chanhassen, as well as elsewhere in the metropolitan area and through-
out the state, it is has become difficult to ensure the availability of hous-
ing. Those who are most severely affected by high housing costs are those
with low or moderate incomes. Families and individuals in these groups often
live in substandard housing or spend a disproportionate percentage of their
income on housing. Although some persons in these groups receive public
assistance, many are simply employed in areas of the economy in which wage
scales are relatively low.
Because Chanhassen has only a limited influence on the supply and cost of
housing, it needs to make its efforts to meet housing needs more effective.
There are many factors beyond the control of the City which have a great
effect on the supply and cost of housing. Market forces, including mortgage
interest rates and the availability of mortgage loans, generally have far more
influence on who can purchase housing than do actions of the City. Also, the
cost of land, labor and materials has increased over time and the effect of
local public policy designed to provide low and moderate or lower-middle
income housing has been lessened.
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litHowever, some actions of the City can have an effect on housing costs.
ill- Development regulations which are designed to provide orderly municipal growth
can increase housing costs, although they represent only a small portion of
the total monthly cost to the homeowner. Nonetheless, the City should contin-
ue to be conscious of the impact its actions have on the cost of housing and
I attempt to implement policies which minimize the cost without abandoning the
legitimate role the City needs to play in r^gulat{ng develo;.-'ient. Land use
regulations which allow prompt review of proposed developments and which do
II not require the submission of unnecessary data or applications should be
encouraged.
II The City should continue to avail itself of the resources of the U.S.
Department of Housing and Urban Development and the Minnesota Housing Finance
Agency. The City should also plan to use tax increment financing to assist in
the construction of multifamily rental housing for low and moderate income
families.
II2.2. Housing Quality.
3 The physical condition of housing in Chanhassen is generally good. A
1979 survey of Chanhassen indicated that 95 percent of the residential struc-
II tures were in sound structural condition. Visual observation suggests that
there has been no widespread deterioration in the quality of housing in
I Chanhassen.
IIMaintenance of housing quality in Chanhassen will undoubtedly require
1 greater attention over the long run. With a high percentage of its housing
having been constructed within the past 25 years, Chanhassen does not yet face
the task of maintaining a large stock of aging housing. In the future
Chanhassen's housing stock will begin to show signs of aging. As housing
ages, more emphasis must be placed on maintenance to prevent deterioration.
1! In order to ensure housing quality in the City, older housing units must be
kept in compliance with housing standards. Unfortunately, the enforcement of
these standards through the use of building codes and ordinances is not an
1! easy task. In many instances, those who live in housing units which do not
meet existing housing codes and ordinances have modest incomes. Individuals
with modest incomes are generally unable to afford costly household repairs
and housing deterioration is sometimes difficult to avoid.
Continued attention will also need to be given to prevention and
mitigation of the negative effects which commercial and industrial development
II can have on the residential environment. The increased traffic congestion,
noise and pollution which often accompany more diverse and concentrated c
L development will need to be carefully monitored.
II - Section III. POLICY PLAN.
1
11 The purpose of the Housing Policy Plan is to describe the course of
action Chanhassen will take to ensure the availability of quality housing to
those who reside and those who seek to reside in the City. The Policy Plan
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approaches housing in a comprehensive manner. Provisions within the Plan will
include ones for existing housing development and the conservation of existing I
neighborhoods. The Policy Plan will also encourage construction of modest
cost housing along with market rate housing. In addition, the Plan will
iii
discuss provisions for protecting the natural environment from poorly designed
housing developments. The Policy Plan is designed to implement the housing MI
goals articulated by the Metropolitan Council for all communities within the
seven-county metropolitan area.
3.1. HOUSING AVAILABILITY.
GOAL: To expand housing opportunities for all persons who are or wish to
be part of the community, including the promotion of lower cost housing and
the encouragement and development of housing for low and moderate income
families and senior citizens.
A. Housing for All Ages.
Housing in Chanhassen is most readily available to middle-aged house-
holds. Since persons between the ages of 35 and 64 generally have higher
incomes than those who are younger or older, they are the portion of the
population which is most likely to find housing to be affordable. Younger and
older persons with lower incomes have fewer opportunities for housing in the
City.
One way to provide housing for all age groups is to encourage construc-
tion of housing types which suit particular needs. This is especially true
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with regard to senior citizens. Senior citizens often cannot continue to
maintain their homes because of decreased physical abilities. A type of
housing which would lessen maintenance burdens, such as apartments, condo-
miniums, townhouses or patio homes, would be more suited to the needs and
abilities of this age group. Inclusion of services such as congregate dining,
transportation and shopping in such housing can further address the needs of
older senior citizens.
Many persons over the age of 50 are "empty-nesters" whose children have
grown up and moved out of the house. A house that was large enough to raise a
family is often too big for the remaining couple or individual. By encourag-
ing older couples and individuals to move into housing that is more suited to
their needs, existing single family homes become available for purchase by
younger families with children who require more space. Existing homes also
tend to be less costly than comparably-sized newly built houses and are more '
easily afforded by younger families.
An additional benefit of such housing turnover may be better maintenance
of the stock of older housing. Unusually long tenure in a home may lead to
deferred maintenance since occupants are most likely to make improvements to
their dwelling during the first few years of occupancy.
The provisions of adequate support services for older citizens, such as
transportation, health and social services, is an important additional contri-
bution the City can make to the living environment of this age group.
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POLICY: The City of Chanhassen will promote housing options to meet the
particular housing needs of all age groups and more efficiently use the City's
- housing stock.
B. Open Housing.
Ili Discrimination on the basis of color or national origin can defeat the
City's efforts to provide housing for all persons. The City of Chanhassen
IIIdoes not condone discriminatory housing practices and believes that housing
must be open to families and individuals without regard to race, religion,
sex, economic status, or cultural or ethnic background.
POLICY: The City of Chanhassen supports a policy of non-discrimination
in the sale or rental of housing.
C. Development Review Process.
In order to ensure the development of quality housing in Chanhassen, it
is necessary to subject development proposals to City review. While an
attempt is made to complete this process is quickly as possible, a small
amount of delay is inevitable. Under some circumstances the delay can be
considerable, especially when other public agencies also must also review a
IIproposal.
Short delays in the review process will not substantially affect the cost
li of housing. However, when long delays take place, the developer can incur
increased carrying costs which are ultimately passed on to the homeowner. To
ensure quality housing while at the same time not causing long delays, the
City must endeavor to ensure that its review process is efficient.
IIPOLICY: The City of Chanhassen will discourage unnecessary delays in
A. reviewing housing development proposals by streamlining the process to make
I development review more efficient.
D. Land Use Regulations.
Land use regulations are among the most important tools available to the
City in guiding housing development. Adequate land use controls are necessary
!I for providing orderly municipal growth, protecting the natural environment,
insulating communities from adverse developments and providing for the health
and safety of the residents. If land use regulations go beyond these pur-
poses, the type and cost of housing in Chanhassen can be affected.
il. One of the most important effects of land use regulations on the cost and
availability of housing is in regard to the design standards required by the
City's ordinances. Large minimum lot size and generous setbacks tend to push
up the cost of housing. While lowering these factors does not always result
in lowering the cost of housing, it has a general tendency to do so.
I POLICY: The City of Chanhassen supports development and implementation
of land use regulations which allow the private sector to provide housing
which is affordable to a broad spectrum of persons in the community.
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E. Special Land Use and Zoning Provisions.
To encourage the development of moderately priced housing in Chanhassen,
the City should utilize flexible land use and zoning standards. Innovative
planning approaches, such as the planned unit development and zero lot line
techniques, can reduce housing costs while at the same time provide for better
use of land, increased protection of natural resources, and a higher level of
supporting community services.
The City should not restrict itself to traditional land use and zoning
approaches for the remaining parcels of undeveloped land in the City. When
possible, land use and zoning regulations should be designed to fit character-
istics of land and surrounding development, while at the same time meeting the
needs of individual developments.
POLICY: The City of Chanhassen will encourage innovative zoning and land
use approaches to encourage the development of modest cost housing.
F. Housing Types Offered.
It is not surprising that a majority of families and individuals in
Chanhassen prefer single family detached housing. However, the preference for
this type of housing varies among age groups. Younger and older persons
generally have less desire to reside in single family homes than do middle
aged families.
In addition, many families and individuals are unable to afford the type
of housing in which they would prefer to live. The demand for multi-family
and attached single housing is likely to grow because such housing types offer
the potential for savings in construction costs, utility costs and energy
usage.
The City should encourage the development of multiple family and attached
single family housing units in a variety of cost ranges to meet the housing
needs of all groups.
POLICY: The City of Chanhassen will support the construction of multiple
family and attached single family housing units and not restrict development
to detached single family housing.
G. Tax Increment Financing and Housing Revenue Bonds.
With the decline in federal housing subsidies, local governments have had
to become more involved in providing housing which is affordable to low and
moderate income people. Two tools which have proven useful to cities are tax
increment financing and housing revenue bonds. Although in some instances
federal tax law changes enacted in 1986 have lessened the attractiveness of
these tools, they are still of great importance.
POLICY: The City of Chanhassen will consider participation in the
issuance of tax increment bonds and housing revenue bonds in appropriate cases
in order to increase the supply of affordable housing.
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1 3.2. HOUSING QUALITY.
GOAL: To maintain through careful planning, the character and condition
of existing neighborhoods and the important housing resources they contain.
A. Compatible Development.
11 Commercial and industrial structures located in or close to residential
areas can detract from the aesthetics of residential neighborhoods because
their scale and design often are inconsistent with housing. In addition,
II public facilities, transportation utilization and environmental quality
standards differ significantly in industrial and commercial developments.
In instances where topography, building forms and landscaping permit,
II commercial and industrial development can exist near residential areas.
However, it is necessary to protect the character of existing neighborhoods
from the negative effects of incompatible developments. In instances where
11 s the impact of these developments is harmful to adjacent residential areas, it
is necessary to separate and buffer neighborhoods from these developments.
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POLICY: The City of Chanhassen will ensure that industrial and commer-
II cial development is located and designed so as to be compatible with housing
in existing and planned residential areas.
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IIB. Protection of Natural Resources.
Chanhassen is fortunate to enjoy the benefit of numerous natural ameni-
tII ies. In some instances, however, development has encroached upon these
resources in a manner that threatens them. This process results in diminish-
ing the aesthetic value of these resources to the City as a whole and also
inhibits the natural drainage, water retention, and recreational functions of
ll these areas.
Housing development in the City can and should exist in harmony with the
I! natural environment rather than work against it. Provisions should be made to
ensure protection of these natural tracts of land from encroachment.
POLICY: The City of Chanhassen will restrict housing development on
ll wetlands, floodplains, steep slopes and other natural areas which perform
important environmental functions or provide aesthetic resources.
!I C. Providing Community Services.
Historically, housing development in Chanhassen has occurred on a parcel-
by-parcel basis. The construction of housing has sometimes not been timed to
coincide with the installation of adequate public facilities. When housing is
4 developed in this matter, residents are inconvenienced and are forced to pay
IIhigher prices for public facilities when they are eventually installed.
This problem is especially prevalent in communities such as Chanhassen in
IIwhich the supply of available land is relatively large. The City's Comprehen-
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sive Plan allocates 1578 acres to residential growth during the period
1985-2000. There is a strong temptation for development to "leap-frog" beyond
the limits of current development to outlying parcels. Such land may be
marginally less expensive but the long run costs, both public and private, are
usually greater than where development occurs in an orderly and compact
fashion.
POLICY: The City of Chanhassen will encourage residential development to
coincide with the development of urban facilities and services.
D. Pollution.
The quality of the residential environment in Chanhassen can be adversely
affected by pollution. Air and noise pollution from traffic along arterials
diminish the quality of life for those who live near these roadways. As
Chanhassen attracts more diverse development, increases in all types of
pollution may occur in residential areas abutting commercial and industrial
development. In these residential areas it will become necessary to provide
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adequate buffering and pollution abatement measures to protect residents from
more intensive development.
POLICY: The City of Chanhassen will encourage steps to protect residen-
tial areas from adverse environmental impacts of air, noise, dust and odor
pollution.
E. Multiple Family and Attached Single Family Housing.
Single family attached and multiple family housing developments are
sometimes located on the fringes of commercial and industrial areas. High
density housing built in these areas can be a desirable place to live. If
located in close proximity to shopping, employment and transportation facili-
ties, residents will be provided with a high level of urban services.
However, there are problems associated with locating housing in these
areas. In some instances, higher density housing is used exclusively to
buffer more intensive land uses from single family housing. Also, industrial
and commercial centers often produce nuisances such as congested roadways,
noise and air pollution. Some land near commercial and industrial uses is
simply not suitable for residential development.
It should be remembered that housing of all types should be in areas
amenable to residential living. Apartments and townhouses should be discour-
aged in areas not suitable for residential development and encouraged in areas
where they will not be subject to adverse conditions.
POLICY: The City of Chanhassen will discourage higher density housing in
areas not suitable for residential development due to such factors as lack of
shopping, employment and transportation, or exposure to adverse conditions
such as air or noise pollution.
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I Section IV. IMPLEMENTATION PROGRAM.
111 The purpose of the Housing Implementation Program is to identify steps
the City will take to implement the Housing Policy Plan. To be effective, the
i Housing Implementation Program will include a wide range of integrated func-
tions and activities in which the City will be involved. These functions will
include developing housing programs, designing development regulations, imple-
i menting administrative procedures, and establishing adequate monitoring
II systems to evaluate the success or failure of housing programs. The Housing
Implementation Program will emphasize maintaining present housing conditions
and expanding housing to those in all income groups.
III4.1. Housing Objectives.
Housing activities outlined in the Policy Plan are designed to ensure the
availability of quality housing to all those who live in or seek to live in
Chanhassen. Although the Policy Plan enumerates the course of action the City
I will take to achieve housing goals, the City must determine the anticipated or
desired result these actions will produce.
I As Chanhassen's Comprehensive Plan makes clear, the City can expect to
I experience an increase in both persons and households through the year 2000
and beyond. The number of households is related to the number of housing
I units which will be needed while the number of persons per household gives a
II rough indication of the type and mix of housing which will be demanded. There
is no way to determine future population with certainty, but the City's
Comprehensive Plan projects that there will be 3285 new households in
Chanhassen by the year 2000 compared to the number in 1985. The Metropolitan
I Council uses the more modest estimate of 1625 new households in the City
during that period.
ilf Whatever assumptions are made, it is evident that there will be a contin-
uing demand for housing in Chanhassen. It should also be remembered that the
above figures do not include the number of units which must be replaced
because of loss to dilapidation, redevelopment, or natural disasters. While
the private market will provide a majority of these units, City participation
will be required to ensure that units needed by persons on the lower end of
the economic spectrum are also constructed.
4.2. Affordable Housing.
The City's opportunities to encourage the development of housing afford-
able to those of low and moderate income have been severely limited by reduc-
tions in federal funding. The City will continue to investigate federal
programs and apply them when feasible and appropriate.
At present, the major tools available to the City to promote affordable
housing are tax increment financing and housing revenue bonds. The City will
I make use of these financing mechanisms to assist the construction of housing
for persons of low and moderate income.
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Chanhassen should also continue to explore opportunities to make avail-
able to its residents the benefits of programs offered by the federal govern-
ment through HUD and by the state of Minnesota through MHFA. These include a
variety of grant, loan and assistance programs which could be useful in
achieving the City's goal of providing affordable housing for all.
4.3. Land Use.
Land use and zoning regulations are among the primary tools Chanhassen
can use to guide housing development. These regulations must be designed to
protect the health, safety and welfare of existing residents without excluding
any group because of age or income.
To encourage an adequate supply and diversity of housing in Chanhassen,
the City's land use regulations, especially its zoning ordinance and subdivi-
sion controls, should be reviewed and updated to ensure flexibility in regul-
ating development. Provision should be made in Chanhassen's zoning ordinance
to encourage innovative housing types.
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