1e Livable Communities Act
i~
__AI
-
CITY OF
CHANHASSEN
MEMORANDUM
TO:
Don Ashworth, City Manager
S90City Center Drive, PO Box 147 FROM:
Chanhassen, Minnesota 55317
Phone 612.937.1900 DATE:
General Fax 612.937.5739
Engineering Fax 612.937.9152 SUBJ:
Public Safety Fax 612.934.2524
\\'feb WlUlU. ci.chalihassen. 1Il1i. /IS
Kate Aanenson, AICP, Planning Director
October 20, 1998
Metropolitan Livable Communities Act
Housing Goals Agreement
Background
In 1995, the city agreed to participate in the Metropolitan Livable Communities
Act. The city stated that they reserved the right to negotiate these goals after two
years. The city has until November 15, 1998 to submit new goals to the
Metropolitan Council. Attached are the goals that were approved in 1995. They
were last revised and approved in 1997.
Analysis
In 1997, staff modified the goals to reflect the comprehensive plan land use
changes. Staff recommends the goals remain the same. Attached is the report
"Livable Communities Survey" which shows compliance with the act.
Recommendation
Staff is recommending that the City Council approve the 1999 Livable
Communities Act Housing Goals Agreement.
Attachments
1. 1999 Housing Goals Agreement
2. 1997 Housing Goals Agreement
3. City Council minutes dated October 27, 1997.
4. Memo from the Metropolitan Council dated August 7, 1998.
5. Livable Communities Survey - 1997
6. Building Statistics 1995-1998.
g:\plan \ka \lca. 98.doc
The City ofChallhnssCll. A gi'Oll'ing communit), with clean I,d?"s, iJU,z/i0' .,J,UO/.r, a channing downtown, thrilling businesses, and bCilutifit! pili}.'. A grcilt p!ilCC to !ilc, work. 11IId play.
HOUSING GOALS AGREEMENT
METROPOLITAN LIVABLE COMMUNITIES ACT
PRINCIPLES
The City of Chanhassen supports:
1. A balanced housing supply, with housing available for people of all income levels.
2. The accommodation of all racial and ethnic groups in the purchase, sale, rental and
location of housing within the community.
3. A variety of housing types for people in all stages of the life-cycle.
4. A community of well maintained housing and neighborhoods, including ownership and
rental housing.
5. Housing development that respects the natural environment of the community while
striving to accommodate the need for a variety of housing types and costs.
6. The availability of a full range of services and facilities for its residents, and the
improvement of access to an linkage between housing and employment.
GOALS
To carry out the above housing principles, the City ofChanhassen agrees to use the benchmark
indicators for communities of similar location and stage of development as affordable and life-
cycle housing goals for the period of 1996 to 2010, and to make its best efforts, given market
conditions and source availability, to remain within or make progress toward these benchmarks.
*
**
The City of Chanhassen reserves the right to negotiate the goals after 2 years.
Chanhassen agrees that the Metropolitan Council will use other market indicators to
evaluate goals. These indicators may include land prices, interest rates, cost of
construction, and environmental factors including trees and wetlands.
City Index Benchmark Goal
Affordability
Ownership 37% 60-69% 30%
Rental 44% 35-37% 35%
Life-Cycle
Type (Non-single family detached) 19% 35-37% 34%
1991 Comp Plan
Owner/Renter Mix 85/15% 67-75/25-33% 90/1 0
Density
Single-Family Detached 1.5/acre 1.8-l.9/acre 1.8
Multifamily 11/ acre 10-14/acre 9-10
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E. ALHOA
For 1997 the Affordable and Life-cycle Housing Amount (ALHOA) for the community is the amount
indicated on the enclosed ALHOA notification. The LeA requires participating communities to
expend at least 85% of their ALHOA toward meeting its negotiate~ affordable and life-cycle housing
goals. . .' '. . .. .' . .. .'. .
How much of yo~f 1997 ALHOA was expended in 1997?
$ 106; 765
What were the sources of your community's ALHOA for 1997 .. local tax levy revenues such as those
. that support a local or county HRA; other local discretionary contributions to housing assistance,
development or rehabilitation programs, or to housing inspections and maintenance efforts? Please
describe and indicate the amount of such expenditures to meet your affordable and life-cycle housing
goals.
Develop housin~ TIF district (North Bay)$17,175
Assumed assessments
$73,590
Senior HOlIsjf1CJ slIbc:irly
$1R,nnn
Page 5
LeA Survey, 1997
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B. Production of Ne. ~ffordable Housing Units in 199i
1. New affordable rental units for which bUilding permits were issued in 1997. Housing costs
listed are for rent and utilities paid for by the tenant.
Monthly Rent Affordability levels for New Rental Housing (1)
Efficiency One Two Three +
Income Groups and SRO* Bedroom Bedroom Bedroom
Units Affordable by Under Under Under Under
Households (1) $501 0 $572 0 $716 0 $773 0
All other New Rental Above Above Above Above
Units $501 n $572 n $716 n $773 n
*
Single room occupancy units
Affordable to households eaming less than 50% of the regional median income,
adjusted for households size ($28,650).
(1)
2. New affordable units for owner occupancy (for which permits were issued in 1997).
New Owner Occupied Housing Units
Single-family Duplex, Quads &
Affordability level Detached Townhomes Condominiums
less than $120,000 (1) 0 84 0
$120,000 and over 181 13 0
(1) Affordable to households eaming less than 80% of the regional median income
($45,840).
3. How many owner-occupied units were constructed in 1997 that would be affordable to
households earning 50% of the metro area median household income of $28,650 (units
costing $76,000 or less)? None
4. Were any owner-occupied or rental units added to the housing stock in 1997 that would be
affordable to households earning 30% of median household income of $17,190 (units
costing $40,000 or less)?
None
C. Removal of Housing Units
. t. How many housing units were removed from the housing stock during 1997?
single-family, detached units 4 multifamily units 0 mobile homes~
2. How many of these units were occupied until demolition? None
3. How many were in substandard condition at the time of demolition? n
Reasons for substandard condition, e.g. fire or natural disaster:
4. How many of the single-family replacements were priced at $120,000 or less? n
How many multifamily units met affordability standards shown above? 0
Page 3
LeA Survey, 1997
A. Comprehensive Planning & Development Incentives
1. Last year's survey asked in what ways your community supports the development of affordable and
life-cycle housing through comprehensive planning and zoning. Please describe new initiatives, if
any, that were used in 1997.
Rezoning of property to PUD-R to provide mixed density residential
development, Walnut Grove
2. Did your community add any of the following incentives for the development of affordable and Iife-
cycle housing last year?
density bonuses Yes e
fee waivers or reductions Yes &>
"..-
assessment abatements Yes &
acquisition or write-down Yes @
of the cost of land
3. How many new manufactured homes were added outside of mobile home parks in 1997?
(The Metro Council annually surveys all mobile home parks for unit counts.)
None
4. During 1997, did you re-examine, waive or permanently change any official controls and approvals
to facilitate the development of affordable or life-cycle housing? If so, please describe. (Examples
of local requirements include: minimum lot sizes, minimum floor area, garage and off-street
parking, set-back requirements, private streets in subdivision development, sidewalks or non-
motorized pathways, park and trail dedications, street lighting, trees, landscaping costs, building
materials, accessory apartments, development fees for off-site public improvements, environmental
regulations regarding wetland preservation, and the length and complexity of the local approvals
process.)
Walnut Grove: rezpned property, permitted mixed density development,
amended land use, permitted private street and reduced setbacks.
5. Did your community establish task forces, commissions or committees to address affordable or Iife-
cycle housing issues last year? If so, please describe.
No
6. Briefly describe any working relationships formed by your community in 1997 with non-profit or for-
profit developers of low- and moderate-cost housing.
Work with Carver County HRArHabitat for Humanity
7. For the 1998 legislative report we would like to highlight several projects that have contributed
toward meeting the need for affordable housing in communities. If your community completed a
project in 1997 that could be included in this section, please describe.
NA
Page 2
LCA Survey, 1997
",\.J
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Livable Communities Survey
January - December, 1997
Community Name: City of Chanhassen
Primary person completing the survey: Robert Generous r AICP
Title: Senior Planner
Telephone:
937-1900 ext. 141
Fax: 937-5739
E-mail address:chpln3(81ci.chanhassen.mn.us
Others involved in completing the survey:
Name:
Telephone:
Section(s):
E-mail address:
Name:
Telephone:
Section(s):
E-mail address:
Thank you for taking time to complete this survey. Your responses are essential to us as an
important part of our compliance with the Livable Communities Act of 1995. We need to receive your
completed form by June 5, 1998. Hand written responses are acceptable, and feel free to add to the
space provided for responses. If you have questions about the form, please feel free to contact
Kathy Johnson (602-1332) of the Research and Policy Analysis staff, or Guy Peterson (602-1418) of
the Local Assistance staff. Again, thank you for your assistance.
Survey Contents:
A. Comprehensive Planning & Development Incentives..................................................page 2
B. Production of New Affordable Housing.................................................................. .... page 3
C. Removal of Housing Units.................................................................................... page 3
D. Affordable and Life-Cycle Housing Programs................................................. ......... ..page 4
E. ALHOA......... ...... ............ ...... ... ...... ... .. .............................................. ...... .......... page 5
Page 1
LCA Survey, 1997
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Column H-230,000
This number is the total of all homestead property tax capacity (not market value of the
properties) in your city times 4 %. The number is calculated and supplied by the County
Auditor. Why 4 %? Since all higher priced homes will have a value above $ 72,000, then
their tax capacity would be at 2 %. However, since the program doubles the market value
to arrive at the base value, then the tax capacity on the homestead tax capacity should
also be double or 4 % (2 % x 2 = 4 % ).
Column 1-57,500.00
This number is the result of multiplying the 4% Homestead Tax Capacity ( Column H )
times your city's local tax rate ( Column K).
Column J-12,500.00
This column is the lower of Column G or Column J. Simply stated it represents the
calculated extra property taxes your city receives from. these higher priced houses. In
some cases these extra property taxes may be the 4% of Homestead Tax Capacity number
( Column J) rather than the Excess Growth number ( Column G ). In these instances,
the growth of high priced homes is faster than 4 % of the net tax capacity for the city.
Column K---25.000 0/0
This is your city's local tax rate for 1998 as certified by the county auditor.
Column L---12,500.00
This is the same as Column J. It represents the Affordable Life-Cycle Housing
Opportunities Amount for 1998.
Column M--125
This is the actual number of higher priced homes that had values above the hurdle rate in
1997.
Column N--150
This is the actual number of higher priced homes that had values above the hurdle rate for
1998.
Column 0-20.000/0
This is the increase in higher priced homes from 1997 to 1998. For information only.
EXPLANATION OF
AFFORDABLE LIFE-CYCLE HOUSING OPPORTUNITIES AMOUNTS
FOR THE YEAR 1998
Simply stated, here's how we determined your community's ALHOA for 1998.
Determine the average market value of your city's houses in 1995. Double it to arrive at a
base value. Find all of the 1995 high priced homes that are above this base value.
Subtract the base value from each of the high priced homes to arrive at an excess value
number. Add up all of those excess values. This is the base year excess number. It
doesn't change.
Do the same for the current year, this time using the current market values for the houses
and the current base value supplied by the Met Council.
If the current year's excess is bigger than the 1995 excess, subtract the 1995 excess from
the current year. Multiply the resultant number times your city's tax rate. This is your
Affordable & Life Cycle Housing Opportunities Amount.
Definitions:
HO:MESTEAD
A homestead is defined as property regularly "homesteaded" by its owners. For farm
homes, it represented the assessment of the farm house, a garage and one acre of land
only.
CONSUMER PRICE INDEX ( CPI )
The Consumer Price Index measures the inflation factor in the U.S. economy. The
Department of the Interior publishes this rate monthly along with a yearly average. For
this program, the yearly average CPI is used.
To ensure that this base value did not lose its meaning in future years the base value is
increased by the CPI each year. This increased value represents the effect of inflation on
the market value of houses in your city. Changing the base value every year, prevents
some houses that did not get included in the base year calculation getting included in
future years just because their market value changed.
Refer to attached sample city printout for assistance
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DATE:
August 7, 1998
i~~u
~~n
AUG 1 G 1998
o v\ J "-
,~le L---
~ Metropolitan Council
~ Working for the Region, Planning for the Future
TO:
. CITY OF CH^Nn^;:,~C:..I~
City Managers and Administrators .A A ~
Thomas C. McElveen, ~eputy Director, Community Development Division 4;V" ~
Certification of 1998 ALHOA
FROM:
SUBJECT:
Thank you for your participation in t.~e 1998 Metropolitan Livable Communities Act (LCA) program.
Your community's commitment and involvement has contributed to the region's overall economic
competitiveness and made tangible progress in providing affordable and life-cycle housing for metro area
residents.
Looking ahead to 1999, the Metropolitan Council seeks your community's renewed participation and
continued cooperation in Livable Communities efforts. As part of the LCA legislation, the Council
annually notifies each community of its "Affordable and Life-cycle Housing Opportunities Amount
(ALHOA)". The ALHOA is derived from the formula prescribed in law including market value, tax
capacity and tax rates by the county assessor. It is an amount oflocal expenditure to support or assist the
development of affordable and life-cycle housing or maintain and preserve such housing. The enclosed
ALHOA is the amount oflocal expenditure expected of the community during 1998.
Communities have some flexibility in determining which local expenditures fulfill the ALHOA
contribution. Examples include local dollars for housing assistance, development or rehabilitation
programs, local housing inspection and code enforcement, or local taxes to support a local or county
HRA.
Incentives for your community's renewed participation include access to $11 million for housing
development, clean-up of polluted sites for business and housing development, and mixed use
development. Also, your community's ALHOA expenditure will be reported in the Council's Annual
Housing Report Card required by the LCA.
Your community's intent to participate in the 1999 Metropolitan Livable Communities program is needed
by Nov. 15. To help you in the preparation, a model resolution is enclosed. Planning assistance for staff
or information presentations for elected officials are available by contacting your sector representative
(see below). Questions about the ALHOA can be referred to Guy Peterson at 602-1418.
We look forward to continuing our regional commitment to affordable and life-cycle housing. Thank you
for your consideration.
Sector Representatives:
Anoka, Washington, and Ramsey Counties
Dakota, Carver and Scott Counties
Hennepin County
Minneapolis and St. Paul
Guy Peterson
Carl Schenk
Tom Caswell
John Kari
651-602-1418
651-602-1410
651-602-1319
651-602-1548
V:\LIBRARY\COMMUNDV\Kruger\PETERSON\ALHOA Ill' to new part 98.doc
230 East Fifth Street St. Paul. Minnesota 55101.1634 (612) 291-6359 Fax 291-6550 TDDfTIY 291-0904 Metro Info Line 229-3780
An Equal Opporlunity Employer
City Council Meeting - October 27, 1997
Councilman Mason: I will move approval of the 1997 Livable Communities Act with the changes as
proposed in the staff report.
Councilman Engel: Second.
Councilman Mason moved, Councilman Engel seconded to approve the 1997 Livable Communities
Act with the changes proposed in the staff report. All voted in favor and the motion carried.
DISCUSSION OF DOWNTOWN HISTORIC DISTRICT.
Kate Aanenson: Thank you. The purpose of bringing this before you tonight is several. One, I wanted
you just to kind of review the elements of the document. Kind of the boundaries that I established. The
scoping of the document, and then review with you the procedure I'd like to take with it. And this should
really go back to the Planning Commission for their review if they could, and have a public hearing and
then be brought back before you. .. .kind of go through the document itself. This came about based on
the, being precipitated by St. Hubert's moving and the change, possible change in use of the old St.
Hubert's building. And it kind of changes the character of the neighborhood with the removal of the old
Paulysl Pony/Pryzmus site so with that Council wanted to look at what kind of this being the historic
area. The centennial. We moved the railroad depot down there. Should we look at some architectural
standards? So based on that we tried to develop a study area.. . really this is the core that's down there
and try to label the uses that are down there. Give the existing, kind of the character to the area. There's
a couple of documents that come into play with this. One was the Vision 2002. Some of you may have
been involved in the process that kind of talked about what we're trying to do with the downtown and
focus on this as the historic area of the city and what that means as far as the community's culture and
how do we maintain that. Whether it's architecture or types of uses that you want to allow in that
district. Some of the designs that you want to do to maintain that. Proximity to the street. Some of the
same things we're trying to do in the downtown corridor itself. Also the comprehensive plan speaks to
this area. The fact that we should try to preserve the structures. While there isn't a lot of architectural
significance, really the ones would be the Village Hall and the Old St. Hubert's. The rest ofthem...have
historic significance based on the fact of use of the building itself. And we do have better pictures of
photo copies didn't go the greatest job on that but we have a pictorial essay of all the buildings that are
down there just to give you an idea, kind of give you a flavor of design of the buildings themselves.
What's down there. Starting on page 4, just try to go through the existing uses that are down
there... future land uses and some possible alternatives. Again this is something I want the Planning
Commission to go through. I know.. .park and rec desires for some open space down... The Planning
Commission may have some different concerns so we'll kind of shift through that part of the hearing
process and come back to you with more specific alternatives on the different designs. Such as the
Colonial Center. We talked about that being an extension of the Medical Arts facility and moving that
building forward. St. Hubert's, as you're aware, has several different opportunities, whether it retain a
private religious school or even we've heard talk of maybe being senior housing facility. And
also.. .introduce more residential property on the Schlenk property which that's guided for. And then the
old Klingelhutz building down there which is historic in the fact that the date of the building, but if that
was to go away, what should be the use on that and could that be something architecturally significant.
Again, we talked about the Pony/Pauly/Pryzmus site. Whether or not we want to form that comer.. .or
maybe a pocket park and how useful that would be and how that should be presented. And then also I
included the originaL.. we've had a lot of requests for that to be commercial and the staffs position on
that. Then also I just kind of gave a brief description of some designs that could be.. . recommendations
that the Planning Commission wanted to do like an overlay or if they saw architectural. Maybe it's just
some certain designs that they want to put in. To add to the building that would go with the area
38
City Council Meeting - October 27, 1997
Mayor Mancino: Well I like having the line in, looking at it. Renegotiating it, whatever you want to call
it. Looking at in two years again to say how have we done. You know how have the market forces
changed in our area. I mean just by looking at the new construction costs of a single family detached
house is $163,000.00 compared to last year, $200,000.00, that's a huge difference. I mean even though
76 of those were.
Kate Aanenson: ... but we are...
Mayor Mancino: But it does tell you, I mean that's a huge number difference. The other cost that has
come down or value difference is even the single family attached that's gone from $129 to $121. So and
land costs aren't coming down.
Councilman Senn: And there's positives and negatives with that whole argument too.
Mayor Mancino: Yes, there are positives and negatives to that.
Councilman Senn: Tax base.
Mayor Mancino: Yep. Yep. Any other comments? Questions from staff? One other question. Kate, on
the matrix under housing goals agreement on page 3. City index. Does that mean where we are right
now? Okay.
Kate Aanenson: Again, that's 1990 data. There are a few that are.
Mayor Mancino: Can we upgrade that?
Kate Aanenson: Well that's what's going to measure us back against. Where we were in 1990. That's
one other thing. You have to look at the fact that we're going to bolster that and... as what's happening
in the marketplace. For example we're getting away from the rental, there's no ifs, ands or but about it.
As we continue to add more single family, the ratio of rentals is going to be a problem. Substantial
amount of single family and not the same ratio.
Mayor Mancino: You can't change the marketplace.
Kate Aanenson: Right, and that's what I'm saying. That's why we reflect the change. Right. Other
forces that are going to have to be brought to bear. So I think if you want to renegotiate after 2 years, I'd
be comfortable with that based on the fact that we're updating our comprehensive plan. We might just be
tweaking it...
Mayor Mancino: Sure. I think it's good for us to look at and make sure we're on track or where we're
not on track. May I have a motion?
Councilman Mason: Yes. I \vill move.
Councilman Senn: On what? Oh, are we doing something?
Mayor Mancino: Yes, we need to have a motion to go ahead.
.
37
City Council Meeting - October 27, 1997
Kate Aanenson: Right.
Councilman Senn: I mean obviously, I'm sorry. I was taking that as a given. I mean I'm not trying to
put a lot of weight on '90 to '95. They're like non-existent years as it relates to this. It kind of clutters
up the data but I mean if you take these changes that have occurred between '95 and '97 and relative.
Mayor Mancino: So we made a 10% increase.
Councilman Senn: You know the relative scope of things in terms of what we're trying to do, okay. It's
over a couple year period you sit there and you say well, you know. That 10% increase mayor may not
seem bad, but then when you compare it overall to the goals, are we ever going to get there?
Mayor Mancino: We're going to try.
Kate Aanenson: ...I think we're going in the right direction. The reason 1990 is in there, that's the year
that Met Council based our... The numbers that are on the regional city benchmark, city index. Those
ar~ b;l:)~d, as a general rule, based on the.. .census data that's in there. So as we explained before, if you
look at this as any snapshot in time, you're going to move further or closer to those goals, depending on
where the market is... That's why goals are set up to, as stated at the beginning, to work towards that...
We are going to move, depending on what's moving in the marketplace.. .couple years to bring on...
accomplished, based on our land use plan, and that's what this all comes back to. Based on what we've
got guided for the city, and there's going to need some things we're going to have to do where we've got
some...and \\'e've got 50%. We are creative when we have those opportunities.
Councilman Senn: Well I assume that the, I mean I assume all of this 2 year reporting now is going to be
consolidated and effectively put in some report back to the legislature. I mean do you have a feel for
where, I mean the other cities, you know or third tier suburbs sit on this? I mean it'd be nice to be in a
proactive position on that again rather than a reactive position because I mean if the picture isn't showing
any progress, I think you're going to have one situation oreven marginal progress. You're going to see
one situation at the legislature versus, you know what I'm saying. I mean there's going to be a definite
movement afoot to, how would I say it, revisit. You know do you accomplish it and how do you put the
teeth into accomplishing it and Ijust think it would be nice to know that ahead of time if that's going to
be something we're faced with and again be proactive to it rather than reactive to it. Because last time
we were quite honestly all caught kind of short, you know, being in the reactive mode on it. It ended up
coming out okay luckily, you know, but again I think the effort's going to be a lot more concentrated this
time now given data, especially since one of the major proponents of it is a very data based person, I
think would be a.
Kate Aanenson: Well we used to give a report in every year. I could call the Met Council and they could
give a copy of the report to other communities. .. It's not just the numbers. It's the other things that we
do to assist affordable housing so...
Councilman Senn: No, I understand that and I understand how that may impact what the Met Council. I
guess the point I'm trying to make is I'm not sure that's going to have that big an impact when it goes to
the legislature.
Kate Aanenson: That's the report that goes to the legislature, right. And whether or not they feeL..
Councilman Senn: That's going to be more empirical.
36
City Council Meeting - October 27, 1997
Mayor Mancino: Which page number are you on?
Councilman Senn: There's no page numbers so I think it's the one on the back of the resolution. AT the
top it says Livable Communities Goals Analysis. Dated 10-22-97.
Mayor Mancino: Oh, thank you.
Councilman Senn: If you look at effectively the trends between 1990 and 1996, we went from roughly
3,600 ownership units to 5,600 ownership units, but in that increase of 2,000 units, effectively 300 of
them were affordable. Which is roughly around, what is that? That's 6 or 7. 6%, 7%, something like
that. Or no, it'd be more than that. 300 out 01'2,000 would be a little over 10%, right?
Councilman Engel: Yep.
Councilman Senn: But so, I mean pretty small numbers and if you look at the rental, we've gone from
637 units to 702 units. And affordable wise we've gone from 280 to 319, there but just in terms of the
rental. I mean effectively all we've done is produced about what, 60 new rental units?
Kate Aanenson: 65. Senior housing.
Councilman Senn: Okay, and that was to be my next question. I assume that's the senior project. And
okay. And those are, I mean are those truly affordable housing units or are they affordable housing units
because of the senior subsidies attached to them?
Kate Aanenson: There is in there a number of those are affordable...5 of those 65 units that meet the
criteria by the Met CounciL.. There's other assistance that we're not counting in here that we're
pro\'id ing that we're getting credit for and that's the fact...
Councilman Senn: Because the MET Council doesn't care how we get there, does it?
Kate Aanenson: Well you get credit for all those things. ..that's under the goals. But we're also getting
credit for, right downtown the apartment building that used assisted housing. Tax credit. All those
things that we do.. .block grant money went towards helping... All of those things.. . affordable housing.
So you're right on the numbers here but if you look at what's happened on '95 and '96 and...find out
what the goals...
Councilman Senn: Well no, I understand but I mean like everything else, we're betting on the come. I
mean we don't know whether those 300 units are going to be built or not yet so. All I'm trying to get at
is if you take effectively what's happened over the last 6 years and even throw in the additional year at
this point, I mean there's been really no additional progress.
Kate Aanenson: Well I wouldn't say that though because you're taking.. .1995 was the first year we did
more rental than affordable so I think you have to step back. Throw out '90, '91, '92, '93 and '94
because that was pretty much weighted single family.
Councilman Senn: Okay, I mean let's throw out '90 to '95 and my guess is, even if you throw out '90 to
'95, the change in the numbers here we're affecting on whether it's ownership or rental has been
predominantly affected between '95 and '97, correct?
35
.
City Council Meeting - October 27, 1997
to refresh your memory, back in 1995 was the first year ever in the history of the city, we did more
attached housing than we did single family detached. By 262 non-traditional detached, and 216
traditional single family detached in 1995. That was the first year, first time ever in the history. In 1996,
significant change. We did 170 single family detached and only 37. We based that anomaly on the fact
that all those units were taken out of the market. We had projects that weren't on line yet. As a matter of
fact a lot of the projects were still haven't been brought to market. Right now where we are processing a
lot of non-traditional single family detached. Walnut Grove and Autumn Ridge, which is now underway.
Those permits are moving faster. As we've told you before, the larger home market is slowing down.
Those in the upper price range are slowing down.. .if we can get something under $200,000.00, that
seems to move a lot faster. I believe we indicated to you before that all 76 permits out on North Bay,
which is considered single family detached, even though it's...5,000 square foot lots, all 75 of those
permits were pulled this year. So that's reflected in single family. If you look at where the price range,
the average price range are, you can see the price, average single family price, how that's going down,
skewed by the fact that those homes, those 76 homes, there's a large percentage if you look at what
we've done as far as single family, is in a more affordable price range. So while it looks like it's, the
average home price is dropping, it's... We're pretty confident in what we're projecting here again based
on curr:::nt trends and... to believe that while we will always be predominantly single family detached
housing, what we're going to see a lot more of different alternative housing. We are very confident
we're going to meet our life cycle goals. We're not recommending changing that 34% not...single
family. To meet that. The goal that we are recommending changes is the owner/renter mix. We
had.. .based on what we've looked at here, unless there's some other. ..it'd be very difficult to try
to.. .and that's, we put some assumption in here. We'd have to double what's out there right now as far
as rental. 1,400. We'd have to double that in the next... We're not sure that we can bring another 1,400
on... IF we do another senior housing project in Villages on the Pond, which we haven't counted into
this yet, and then bringing in the southern area. Something with transit. We talked about meeting
another mixed project. Maybe on the Hidden Valley site. I don't think realistically \ve can get another
1,400 rental.. .so what that did is, we changed the owner renter mix and then that also affected what we
put down for our goals as far as affordability because we're not having any affordability...on ownership
down 30% also... That's based on current market trends...If you look at what we put in the summary, the
last few projects that we've done, we've been very successful. If you look at Walnut Grove. We had
52% affordability. North Bay, 46. Autumn Ridge, 59% affordability... Again those are more PUD
mixed... What's hurting us is that we've got so many built in subdivisions that have already been
approved, single family large lot that's already, that's skewing our numbers because it's such, single
family detached...out there right now. It's going to take a lot of the other type product to change the
number ratio, if that makes sense. We have a lot of stock out there in single family, and we're going to
still see some more coming on line that have already been designated. Then \ve also have some multi-
family that's sitting out there that may never come in that we had counted on for... That's Eckankar
which is right close to downtown... being in close proximity to downtown. And the Gorra property
which also had a high density designation. What the timing of that would be... those are significant
numbers as far as dwelling units. So with that we are recommending a change to, in those numbers for
the housing...staffrecommends supporting six goals. Principals and these are pretty much straight
forward that we have in our comprehensive plan, the housing element. But it does take a resolution
approval by the City Council and we're recommending it. I'd be happy to answer any.
Mayor Mancino: Any questions for staff?
Councilman Senn: I've got a couple, if nobody else does. Kate, going back on I guess the Livable
Communities Goals Ana1ysls. This one here.
"
34
"
City Council Meeting - October 27, 1997
variance here, you know we're not talking about variances. If there are some legitimate changes that this
whole Council agrees can be made, fine. If this whole Council says they can't be, that's fine too.
Mayor Mancino: Okay. I'm just saying I want to see how it ties in with everything else.
Councilman Mason: Sure, no problem. No problem.
Mayor Mancino: The only other thing that I saw a difference in, Mr. Copeland was the exit doors and
those are different than what's on the drawing too. The ones in the original drawing, there was more,
again architectural detail around the doors. They again are on a boardwalk, especially on one side where
one of the drawings shows an overhead, I don't know. It's not a marquee but it's something.
Councilman Senn: A cornice.
Mayor Mancino: A cornice over the doors. The other thing is the original drawings had backlit on some
of the cornice areas. There's also, not only back lighting in the window area but there is some back
lighting in the, under the cornices. So I'm assuming those will still be there too. So may I have a motion
please.
Councilman Mason: I will move to table this until the next Council meeting to give Mr. Copeland the
time to provide a little more detail to the changes he'd like to make. Contingent upon your request to see
how it fits with the whole.
Councilman Engel: I'll second that.
Councilman Mason moved, Councilman Engel seconded to table the site plan amendment for the
Chanhassen Cinema to the next Council meeting contingent upon the changes being made to the
cinema being shown with the entire complex. All voted in favor and the motion carried.
Mayor Mancino: Are there any other issues or clarity that staff or Mr. Copeland, that you need prior to
coming back and what we'd like to see? Okay, thank you.
Zl
Q
, ()./"
.'1i L
.r 7/i j'
'J"
REVIEW GOALS-LIVABLE COMMUNITIES ACT. PLANNING DIRECTOR.
Kate Aanenson: Thank you. ... when we signed on with the Livable Communities Act. . . the goals.
Renegotiate the goals in 2 years. That time frame comes to an end on November 15th. Since we did the
goal, staff, with the approval of City Council, has guided those areas of the city that were either
undesignated or were inappropriately zoned in a holding zone or the like so the future land uses of the
city have been determined. In the process of doing that it made it a lot easier to go back and re-evaluate
where we were as far as data on whether we meet these goals. Included in the packet we put the original
goals that were signed and the proposed new goals. Attached with that, we've documented where we are
as far as what we did in 1990. '91 where we were. It's a breakdown of single family ownership, rental.
Where we are to date and where we believe we're going. We've broken that down by what's currently in
the MUSA line. What's outside the MUSA. We've even tried to break it down based on what we
believe we'll be showing you with the comprehensive plan update. Kind of a strategy for bringing land
into the MUSA area. It's pretty well documented and we think, we're pretty confident in our numbers.
Obviously you can't always predict a market but based on current trends, and that's the best information
that we have, where we're.going. We know the markets out there changing. We've documented that in
here... Also included in the packet is a summary of the 1995-96 and where we are.. .as far as 1997. Just
33
To achieve the above goals, the City ofChanhassen elects to participate in the Metropolitan
Livable Communities Act Local Housing Incentives Program, and will prepare and submit a plan
to the Metropolitan Council by June 30, 1996, indicating the actions it will take to carry out the
above goals.
CERTIFICA TION
-\ I . t' .
l t (V0\.(,V,r- t . ) (c. l( C L u~v----
Nancy K. Mandino, Mayor
~ 1Arv--unJU/v 5/ I r; 7' 7
,
Date
"
"
~l G(~
HOUSING GOALS AGREEMENT
METROPOLITAN LIVABLE COMMUNITIES ACT
PRINCIPLES
The City of Chanhassen supports:
1. A balanced housing supply, with housing available for people of all income levels.
2. The accommodation of all racial and ethnic groups in the purchase, sale, rental and
location of housing within the community.
3. A variety of housing types for people in all stages of the life-cycle.
4. A community of well maintained housing and neighborhoods, including ownership and
rental housing.
5. Housing development that respects the natural environment of the community while
striving to accommodate the need for a variety of housing types and costs.
6. The availability of a full range of services and facilities for its residents, and the
improvement of access to an linkage between housing and employment.
GOALS
To carry out the above housing principles, the City of Chanhassen agrees to use the benchmark
indicators for communities of similar location and stage of development as affordable and life-
cycle housing goals for the period of 1996 to 2010, and to make its best efforts, given market
conditions and source availability, to remain within or make progress toward these benchmarks.
*
The City of Chanhassen reserves the right to negotiate the goals after 2 years.
Chanhassen agrees that the Metropolitan Council will use other market indicators to
evaluate goals. These indicators may include land prices, interest rates, cost of
construction, and environmental factors including trees and wetlands.
**
City Index Benchmark Goal
Affordability
Ownership 37% 60-69% 30%
Rental 44% 35-37% 35%
Life-Cycle
Type (Non-single family detached) 19% 35-37% 34%
1991 Comp Plan
Owner/Renter Mix 85/15% 67-75/25-33% 90/1 0
Densitv
Single-Family Detached 1.5/acre 1.8-1.9/acre 1.8
Multifamily lllacre 10-14/acre 9-10
To achieve the above goals, the City ofChanhassen elects to participate in the Metropolitan
Livable Communities Act Local Housing Incentives Program, and has prepared and submitted a
plan to the Metropolitan Council indicating the actions it will take to carry out the above goals.
CERTIFICATION
Nancy K. Mancino, Mayor
Date