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2e Clarification of Livable Communities Act CITY OF CHAHHASSEH ~e.., - 690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN, MINNESOTA 55317 (612) 937-1900. FAX (612) 937-5739 MEMORANDUM TO: Don Ashworth, City Manager Kate Aanenson, AICP, Planning Director 'fA- FROM: DATE: January 6, 1998 SUBJ: Clarification of the Livable Communities Act Attached is a letter to Guy Peterson of the Metropolitan Council. The purpose of the letter to Mr. Peterson was to address questions that the Met Council had regarding the city's revised goals (the goals changed from the original agreement to the current one). Staff has agreed to modify the LCA agreement to further clarify the city's goals. The only change is the city's life cycle owner rental mix. Staff believes that the goal is better expressed in a range. The other issues are an explanation of the city's density goals; the 3.3 units an acre average which meets the LCA goals. The other clarification is the amount of affordable ownership. This amount of housing is being reduced based on the total number of units that the city has the ability to provide. Staff is recommending approval of the modification to the Housing Goals Agreement of the Metropolitan Livable Communities Act. Attachments: 1. Letter to Guy Peterson dated December 22, 1997 2. Housing Goals Agreement 3. Housing Analysis December 12/22/97 CITY OF CHARHASSER 690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN, MINNESOTA 55317 (612) 937-1900. FAX (612) 937-5739 December 22, 1997 Mr. Guy Peterson Metropolitan Council Mears Park Centre 230 East Fifth Street St. Paul MN 55101 Dear Guy, This letter is a follow up to our discussions of the City of Chanhassen Housing Goals Agreement as a part of the Livable Communities Act. The city has reviewed the Goals as we submitted them on November 5, 1997. I would like to clarify the following goals. The owner renter mix for the City of Chanhassen should be expressed as a range of 80-90/20-10. The reason for the range of the mix is that stan has performed additional analysis based on existing land uses and historical development patterns. This analysis shows: 1) only owner occupied attached is able to meet the affordable housing criteria and, 2) without changes to the tax code, rental housing remains difficult to develop. We are reducing the amount of affordable ownership housing from 50 to 30 percent. Based on more detailed analysis of the city trends and future development potential, the city would still need to provide a total of 3,800 affordable units. This is just a little more then doubling the existing number of affordable units. Regarding the city's density goals for single family detached of 1.8 units per acre, this number is a misnomer because the 1 .8 represents an average of the city's anticipated single family detached development (RSF zoning). The city's minimum lot size in the RSF district is 15,000 square feet. This represents a density of 2.9 units an acre, which exceeds the benchmark goals. However, we have many areas of large parcels that are being further subdivided at lower densities that would be permitted in the zone, e.g. a one acre lot that is split into Y2 acre lots. The city has agreed to meet the overall density average of 3.3 units an acre. Based on our housing analysis for future development, we believe we can meet this target. I hope this information clarifies the city's position and our willingness to meet the goals of the Livable Communities Act. Attached are the revisions which I will be sharing with the City Council on January 12, 1998. If your have additional questions, please feel free to contact me. Sincerely, tk" ;(Ovtt 'I tJ!J\.Q/VV:]C!Yl!.J Kathryn R. Aanenson, AICP Planning Director Attachments CITY OF CHANHASSEN ~e.., - 690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN, MINNESOTA 55317 (612) 937-1900. FAX (612) 937-5739 MEMORANDUM TO: Don Ashworth, City Manager Kate Aanenson, AICP, Planning Director ~ FROM: DATE: January 6, 1998 SUBJ: Clarification of the Livable Communities Act Attached is a letter to Guy Peterson of the Metropolitan Council. The purpose of the letter to Mr. Peterson was to address questions that the Met Council had regarding the city's revised goals (the goals changed from the original agreement to the current one). Staff has agreed to modify the LCA agreement to further clarify the city's goals. The only change is the city's life cycle owner rental mix. Staff believes that the goal is better expressed in a range. The other issues are an explanation of the city's density goals; the 3.3 units an acre average which meets the LCA goals. The other clarification is the amount of affordable ownership. This amount of housing is being reduced based on the total number of units that the city has the ability to provide. Staff is recommending approval of the modification to the Housing Goals Agreement of the Metropolitan Livable Communities Act. Attachments: 1. Letter to Guy Peterson dated December 22, 1997 2. Housing Goals Agreement 3. Housing Analysis December 12/22/97 CITY OF CHAHHASSEH 690 COULTER DRIVE. P.O. BOX 147. CHANHASSEN, MINNESOTA 55317 (612) 937-1900. FAX'(612) 937-5739 December 22, 1997 Mr. Guy Peterson Metropolitan Council Mears Park Centre 230 East Fifth Street St. Paul MN 55101 Dear Guy, This letter is a follow up to our discussions of the City of Chanhassen Housing Goals Agreement as a part of the Livable Communities Act. The city has reviewed the Goals as we submitted them on November 5, 1997. I would like to clarify the following goals. The owner renter mix for the City of Chanhassen should be expressed as a range of 80-90/20-10. The reason for the range of the mix is that staff has performed additional analysis based on existing land uses and historical development patterns. This analysis shows: 1) only owner occupied attached is able to meet the affordable housing criteria and, 2) without changes to the tax code, rental housing remains difficult to develop. We are reducing the amount of affordable ownership housing from 50 to 30 percent. Based on more detailed analysis of the city trends and future development potential, the city would still need to provide a total of 3,800 affordable units. This is just a little more then doubling the existing number of affordable units. Regarding the city's density goals for single family detached of 1.8 units per acre, this number is a misnomer because the 1.8 represents an average of the city's anticipated single family detached development (RSF zoning). The city's minimum lot size in the RSF district is 15,000 square feet. This represents a density of 2.9 units an acre, which exceeds the benchmark goals. However, we have many areas of large parcels that are being further subdivided at lower densities that would be permitted in the zone, e.g. a one acre lot that is split into V2 acre lots. The city has agreed to meet the overall density average of 3.3 units an acre. Based on our housing analysis for future development, we believe we can meet this target. I hope this information clarifies the city's position and our willingness to meet the goals of the Livable Communities Act. Attached are the revisions which I will be sharing with the City Council on January 12, 1998. If your have additional questions, please feel free to contact me. Sincerely, , '(OvlY Itvr,-Q/vIJOll~) Kathryn R. Aanenson, AICP Planning Director Attachments 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 20 I 0, 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 Ownershio 37% 60-69% 30% Rental 44% 35-37% 35% Life-Cycle Type (Non-single family 19% 35-37% 34% detached) 1991 Camp Plan Owner/Renter Mix 85/15% 67 -75/25-33% 80-90/20-1 0 Density Sinqle-Family Detached 1.5/acre 1.8-1.9/acre 1.8 Multifamily 11/acre 10-14/acre 9-10 Overall averaae 3.3 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. CERTIFICA TION Nancy K. Mancino, Mayor Date HOUSING ANALYSIS EXISTING HOUSING UNITS (JANUARY 1997) Net Acres 2,955 664 3,619 Single Family Multi-Family Subtotal EXISTING MUSA 1991 (VACANT LAND) Single Family Multi-Family Subtotal MUSA EXPANSION AREAS Single Family Multi-Family Subtotal TOTALS Single Family Multi-Family TOTAL Existing Development Single Family Multi-Family TOTAL Future Development Single Family Multi-Family TOTAL Total Development Single Family Multi-Family TOTAL Net Acres 1,577 169 1,746 Units 4,502 1.412 5,914 Percent 76% 24% Units 3,816 1.817 5,633 Percent 68% 32% Percent 58% 42% Net Acres Units 953 2,306 252 1.683 1,205 3,989 Net Acres Units 5,485 10,624 1,085 4,912 6,570 15,536 Units Per Acre 1.52 2.13 1.63 Units Per Acre 2.42 8.31 3.26 Units Per Acre 1.94 4.53 2.36 (Analysis excludes 420 units on Large Lots) 9 :\plan\bg\housing analysis Percent 68% 32% 12/22/97 12/22/97 METROPOLITAN URBAN SERVICE EXPANSION AREA LAND USE 1998 - 2003 TOTAL TOTAL BC-7 BC-8 BC-9 ACRES UNITS Acres Units' Acres Units' Acres Units' LARGE LOT 0 0 0 0 0 0 0 0 LOW DENSITY 142.71 294 113.34 233 0 0 256.05 527 MEDIUM DENSITY 17.92 97 30.53 165 0 0 48.45 262 HIGH DENSITY 0 0 0 0 0 0 0 0 SUBTOTAL 160.63 390 143.87 398 0 0 304.5 788 2003 - 2008 BC-2 BC-3 LARGE LOT 0 0 0 0 0 0 LOW DENSITY 117.85 242 1.71 4 119.56 246 MEDIUM DENSITY 137.85 744 0 0 137.85 744 HIGH DENSITY 0 0 0 0 0 0 SUBTOTAL 255.7 987 1.71 4 257.41 990 2008 - 2013 TOTAL TOTAL LB-1 LB-2 LR-2 ACRES UNITS Acres Units' Acres Units' Acres Units' LARGE LOT 0 0 195.8 74 0 0 195.8 74 LOW DENSITY 287.18 591 275.82 567 36.76 76 599.76 1234 MEDIUM DENSITY 0 0 0 0 0 0 0 0 HIGH DENSITY 0 0 0 0 0 0 0 0 SUBTOTAL 287.18 591 471.62 642 36.76 76 795.56 1308 2013 - 2020 LB-3 LB-4 LB - 5 LARGE LOT 36.61 14 278.1 106 406.86 155 721.57 274 LOW DENSITY 66.16 136 8.48 17 70.8 146 145.44 299 MEDIUM DENSITY 46.98 254 0 0 0 0 46.98 254 HIGH DENSITY 46.98 423 0 0 0 0 46.98 423 SUBTOTAL 196.73 827 286.58 123 477.66 300 960.97 1250 TOTALS 900.24 2794 903.78 1166 514.42 376 2318.44 4,337 NOTE: Large Lot assumes 5% ROWand 2.5 acre lots; Low Density assumes 15% ROWand 2.42 units per acre Medium Density Assumes 10% ROWand 6 units per acre; High Density assumes 10% ROWand 10 units per acre Large Lot units already exist. g:'plan'bg\musa expansion analysis LIVABLE COMMUNITIES GOALS ANALYSIS 12/22/97 Single Family Multi-Family Units Percent Units Percent 1990 3,367 79% 882 21% 85 % Ownership 3,612 units Affordable 1,336 units 37% 15 % Rental 637 units Affordable 280 units 44% 1996 4,926 78% 1 ,408 22% 89 % Ownership 5,632 units Affordable 1,636 units 29% 11 % Rental 702 units Affordable 319 units 45% 2020 9,477 67% 4,590 33% Based on 1995 Livable Communities Goals: 80% Ownership 11 ,254 units Affordable 5,627 units 50% Would require an additional 3,991 affordable units. Total 4,249 6,334 14,067 20% Rental 2,813 units Affordable 985 units 35% Would require and additional 666 affordable rental units. Recent approved developments will achieve the following goals: Proiect Units Affordable Units % Affordable Walnut Grove 247 128 52% North Bay 76 35 46% Autumn Ridge 140 82 59% Total 463 245 53% If the city were to maintain the same ration of affordable units for all future multi-family development, we would add 1,684 affordable units to the housing stock. Total New Units 7,733 Total Multi-family units 3,178 53% multi-family units 1,684 This would lead to a total affordable ownership housing of 3,320 units. Staff is proposing a goal of 30% affordable ownership housing which would require 3,800 additional affordable units. A little more than double the existing affordable ownership housing. Staff is also proposing that the goal for rental housing be reduced to 10%, which would require the doubling of the existing rental housing. The goal for affordable rental units would remain at 35%, requiring a total of 492 affordable units, which is an increase of 173 units. g:\plan\bg\livable communities goals