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03-15-95 Agenda and Packet - Special Work Session FILE AGENDA SPECIAL WORK SESSION COURTYARD CONFERENCE ROOM CHANHASSEN PLANNING COMMISSION WEDNESDAY, MARCH 15, 1995, 7:00 P.M. CHANHASSEN CITY HALL, 690 COULTER DRIVE DISCUSSION ITEMS 1. Buffer Yard Requirements 2. Hillside Protection Ordinance Amendment •w CITY QF .______ q CHANHASSEN , . _... ., s. ..., :w, R�.,,, _, A .., 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 • FAX (612) 937-5739 MEMORANDUM TO: Planning Commission FROM: Bob Generous, Planner II DATE: March 7, 1995 SUBJ: Issue Paper - Buffer Yards/Transition Zones PROPOSAL SUMMARY This item is a follow up to the Planning Commission hearing held on February 15, 1995. Staff's intention is to bring this item forward as a discussion item to explain the ordinance and to receive Planning Commission and public input. After any proposed modifications, another public hearing will be held. BACKGROUND Recently, there has been considerable discussion concerning transitions and buffering between different intensities and densities of uses, e.g. Creekside Additionaimberwood Estates, Lake Ann Highlands/Windmill Run. While the city has revised its ordinance to address tree preservation/forestation and parking lot landscaping requirements, there are no specific, quantifiable standards regarding what constitutes acceptable buffering or screening. In each instance of proposed new development, the city has responded on an ad hoc basis in determining what is appropriate buffering. The buffer yard ordinance is an effort to provide quantifiable standards for both city staff and property owners in determining minimum buffer landscaping. GOALS A discussion of the buffer yard standards should begin with agreement on the goals as to what is to be achieved by the ordinance. The following goals are presented for discussion purposes. The Planning Commission is encouraged to redefine, ad, subtract, or redirect this list as appropriate. 1. Buffer yard standards should be calculated to ensure that they do, in fact, function to Planning Commission March 7, 1995 Issue Paper - Buffer Yards/Transitions Page 2 2. The buffer yard standards should provide aesthetic as well as functional planting requirements for sites and buildings. These plantings should not only provide screening or transition between adjacent uses, but they should also be designed to add color, natural growth, a sense of identity, as well as an enhancement to the natural environment. 3. Standards should be understandable, reasonable, and easily implementable. 4. Buffer yard standards should complement preservation/forestation and parking lot screening requirements. Emphasis shall be given to the protection and enhancement of natural features, rather than replacement. 5. Buffering should be provided between different intensities and densities of uses. 6. Standards should be comprehensive covering all sorts of development 7. The ordinance shall provide minimum standards to assure that a baseline level of quality is achieved. 8. The ordinance should not unduly limit design flexibility and should allow a good designer to reflect the demands of the site and the setting in which it is placed. CURRENT ORDINANCE Section 18-61 (a) (5) Landscaped buffers around the exterior of the subdivision shall be required by the city when the plat is contiguous with collector or arterial streets as defined by the comprehensive plan and where the plat is adjacent to more intensive land uses. Required buffering shall consist of berms and landscape material consisting of a mix of trees and shrubs and/or tree preservation areas. Where appropriate, the city may require additional lot depth and area on lots containing the buffer so that it can be adequately accommodated and the home protected from impacts. Lot depths and areas may be increased by twenty-five (25) percent over zoning district standards. The landscape plan must be developed with the preliminary and final plat submittals for city approval. Appropriate financial guarantees acceptable to the city shall be required. Section 20-1176 (f) Buffering shall be provided between high intensity and low intensity uses and between a site and major streets and highways and in areas where buffering is required by the comprehensive plan. COMMENT: The city's current language requires buffering between different intensities of uses and a buffer requirement is part of the comprehensive plan. Planning Commission March 7, 1995 Issue Paper - Buffer Yards/Transitions Page 3 However, there is no defined standards for either staff or developers to determine what constitutes appropriate and adequate buffering. ANALYSIS Since this ordinance was first brought before the Planning Commission, staff has been able to assemble some addition information including a cost estimate per 100 linear feet of buffer yard, review of the ordinance vis-a-vis existing landscaping buffers, a survey of other local governments' requirements, create a partial location map where transition areas are located, and further refinement in the required landscaping illustrations. Cost Staff has created a cost estimate for each type of landscape buffer illustrated in the ordinance. Cost estimates range from a low of $100 to a high of $7,600 per 100 linear feet of buffer yard. Comparison with Existing Buffers A survey was completed comparing six different land uses and their existing buffering zones completed in Chanhassen within the last 2 years. Comparisons were made between low, medium, and high density residential areas and the neighboring roads, various densities and commercial uses to the proposed densities listed in the Table of Buffer yard Requirements. The following situations were found: LAND USE PROPOSED REQUIREMT. EXISTING/COMMENTS Bluff Creek (LD/ROAD) B Exceeds B; present buffer is Estates/Audubon Rd wider and more heavily sample area 100' x 70' planted than ordinance would require. Windmill Run/Galpin Blvd. B Fairly equivalent to B; (LD/ROAD) contains 1 more overstory sample area 100' x 20' than would be required, but no shrubs. Willowridge/Lake Lucy B Somewhat equivalent to B; Road (LD/ROAD) contains more understory sample area 100' x 20' vegetation that required, but no overstory trees. Planning Commission March 7, 1995 Issue Paper - Buffer Yards/Transitions Page 4 Prairie Creek/ Lake Susan B Does not meet B for overall Hills Developments buffer; not a consistent (MD/LD) planting - some areas would sample area 100' x 25' meet req., some wouldn't. Oak Ponds/West Village A Exceeds requirement Hts. (HD/HD) sample area 100' x 25' Oak Ponds/Byerly's D Does not meet D; lacking (HD/COMM) in all categories - overstory, sample area 100' x 30' understory, and shrubs. Byerly's/Oak Ponds E Does not meet E; same (COMM/HD) comments as above. sample area 100' x 30' Byerly's/W. 78th St. B Does not meet E; no buffer (COMM/ROAD) was provided by Byerly's sample area 100' x 20' It appears that in no case should the buffer yard be reduced. In most cases a slight increase in the types, rather than the numbers, of plants installed would occur. Recent plantings tended to exclude overstory trees, the new requirement would include them in all plantings near residential areas. In only one instance does the increase of the bufferyard requirement appear necessary. Planting between HD/HD usage should be increased to reflect the present trend of existing buffers with present buffer yards more closely reflecting B or C requirements than A. Survey Results Staff contacted the following communities to determine how they address transitions and buffering: Apple Valley, Bloomington, Burnsville, Eagan, Eden Prairie, Plymouth, and Woodbury. All the communities had ordinances that require some type of "screening" between different uses. However, all the standards were generic in nature stating that screening shall be provided, but providing no specific guidelines. Three of the communities had an opaqueness requirement in their ordinance, Apple Valley, Burnsville, and Eden Prairie. All of the communities contacted had greater setback requirements when residential uses were adjacent to commercial or industrial uses. In addition, none of the communities contacted made a distinction between single-family attached and single-family detached. Rather, the density of the development was used to differentiate land uses. Planning Commission March 7, 1995 Issue Paper - Buffer Yards/Transitions Page 5 Location Map Staff has provided a transition area map to show some areas where the buffer yard will be required. Following is a listing of the types of land use and the required buffer yard (Note - the required buffer yard for each use is provided. Please see the appropriate sheet to see a visual representation of how these buffer yards could be developed.). No. Land Uses Buffer yard 1. Low Density/Medium Density A/B 2. Low Density/High Density B/C 3. Low Density/Office-Industrial F/H 4. Low Density/Office-Industrial -/H 5. Low Density/Office-Industrial -/H 6. Low Density/High Density -/C 7. Low Density/Medium Density -/B 8. Medium Density/Office/Commercial B/BB 9. Commercial/Office-Industrial BB 10. Low Density/Office-Industrial -/H 11. Low Density/Mixed Use C/C 12. Low Density/High Density B/C Revisions Staff has revised the ordinance to include both the subdivision section and the exclusion for single-family detached housing as part of a subdivision. Staff has included a footnote requiring a buffer yard between low density attached and detached. Staff has not changed any of the listed required buffer yard requirements designations. Staff is requesting that the Planning Commission provide direction for any changes to the matrix. Since Chanhassen has not zoned all property consistent with the land use plan of the comprehensive plan, we are specifying the use of the land use designation in determining appropriate buffer yards rather than the zoning. However, before proceeding too far, we are requesting feedback from the commission. RECOMMENDATION Staff has drafted a buffer yard ordinance for your review and consideration. We request that you provide us with direction in finalizing this ordinance. Planning Commission March 7, 1995 Issue Paper - Buffer Yards/Transitions Page 6 ATTACHMENTS 1. Draft Transitional Buffering Ordinance 2. Transition Areas Map 3. Bufferyard Landscaping Cost Estimate 4. Matched Landscaping Buffer Yard Illustrations A/A - F/H CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 20 OF THE CHANHASSEN CITY CODE, THE ZONING ORDINANCE CONCERNING LANDSCAPING AND TREE REMOVAL FOR TRANSITIONAL BUFFERING BETWEEN USES THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS: Section 1. ARTICLE III. DESIGN STANDARDS, Section 18-61 (a) (5). Landscaping and tree preservation requirements is amended to read: (5) Landscaped buffers around the exterior of the subdivision and adjacent to collector and arterial streets shall be required by the city as specified in section 20-1176 (f). Section 2. ARTICLE XXV. LANDSCAPING AND TREE REMOVAL, DIVISION 1. GENERALLY, Section 20-1176. Intent, scope and compliance, subsection (b) of the Chanhassen City Code is amended to read: (b) Except for buffer yard requirements specified in section 20-1176 (f) below, this artical does not apply to single-family detached residences in Al, A2, RR, RSF, and R4 zoning districts which are regulated by landscaping requirements in contained in the subdivision ordinance (chapter 18). Section 3. ARTICLE XXV. LANDSCAPING AND TREE REMOVAL, DIVISION 1. GENERALLY, Section 20-1176. Intent, scope and compliance, subsection (f) of the Chanhassen City Code is amended to read: (f) Buffering shall be provided between high intensity and low intensity uses and between a site and major streets and highways and in areas where buffering is required by the comprehensive plan. Such buffering shall be located within a required buffer yard. The buffer yard is a unit of yard together with the planting required thereon. The amount of land and the type and amount of planting specified for each buffer yard required by this ordinance are designed to ameliorate nuisances between adjacent land uses or between a land use and a public road. The planting units required of buffer yards have been calculated to ensure that they do, in fact, function to "buffer." (1) Buffer yards shall be located on the outer perimeter of a lot or parcel extending to the lot or parcel boundary line, except where easements, covenants or natural features may require the buffer yard to be set back from the property line. Buffer yards shall not be located within any portion of an existing public or private street or right-of-way. (2) To determine the buffer yard required between two adjacent parcels or between a parcel and a street, the following procedure shall be followed: a. Identify the proposed land use of the parcel and the land use of the adjacent parcel based on the City of Chanhassen Future Land Use Plan. b. Determine the buffer yard required on each boundary, or segment thereof, of the subject property by referring to the following Table of Buffer yard Requirements and illustrations which specify the buffer yard required between adjacent uses or streets. c. Buffer yard requirements are stated in terms of the width of the buffer yard and the number of plant units required per 100 linear feet of buffer yard. Each illustration depicts the minimum buffer yard required between two uses. The plant unit multiplier is a factor by which the basic number of plant materials required for a given buffer yard is determined in accordance with the selected width of the yard. d. Whenever a wall, fence, or berm is required within a buffer yard, these are shown as "structure required" in the buffer yard illustrations. The erection and maintenance of all required structures shall be the responsibility of the higher intensity use. Whenever a wall is required in addition to a berm, the wall shall be located between the berm and the higher intensity use in order to provide maximum sound absorption. e. All buffer yards shall be maintained free from all forms of development or storage of equipment or materials. A ground cover of vegetative or organic material shall be provided. Buffer yards shall be maintained free from junk and debris. Dead or diseased vegetation shall be removed and replaced with healthy vegetation. The responsibility to maintain, remove or replace plant materials shall be that of the landowner on whose property the plant material needing maintenance or replacement is located. TABLE OF BUFFER YARD REQUIREMENTS LIJL MD HD OFF MIX COM PUB ACT PASS OFF/ D IND LULD A, B C C C E B B A H MD A A B B C E B B A H HD B B A B C E B B A G OFF B B B A B B B B B B MIX C C C B B B C C C B 2 COM E E D B B A C C C B PUB B A A B C E A A A F ACT A A B B B C A A A F PASS A A A B B C A A A F OFF/IND F E E B B B F E E E ROAD B B B B B B B B B C 1. Single-family attached adjacent to single-family detached shall provide a bufferyard. (The land use of the proposed development is across the top of the matrix. The land use of the abutting property is along the side of the matrix.). The land use abbreviations are as follows: L/LD - large lot and low density residential; MD - medium density residential; HD - high density residential; OFF - office; Mix - mixed use; Corn - commercial; Pub - public/semi-public; Act - active park/open space; Pass - passive park/open space; Off/Ind - office/industrial; Road - collector and arterial road. (3) Plant material existing on a parcel which meets the buffer yard planting requirements of location, size and species may be counted toward the total buffer yard plant material requirement. (4) Buffer yards may be used for passive recreation and they may contain a trail provided that no plant material is eliminated, the total width of the buffer yard is maintained, and all other regulations of this ordinance are met. Utility easements may be included within buffer yards provided that the utility requirements and buffer yard requirements are compatible and canopy trees are not planted within said easement. (5) Where front, side and rear yards are required by this ordinance, buffer yards may be established within such required yards. (6) Canopy trees are defined as those trees specified as primary or secondary deciduous trees in the city's subdivision ordinance. (7) Understory trees are defined as those trees specified as ornamental or conifer trees in the city's subdivision ordinance. Section 4. This ordinance shall be effective immediately upon its passage and publication. 3 PASSED AND ADOPTED this day of , 1995, by the City Council of the City of Chanhassen, Minnesota. Don Ashworth, City Manager Donald J. Chmiel, Mayor (Published in the Chanhassen Villager on ) 4 BUFFERYARD A REQUIRED PLANT UNITS/100' I Canopy Trees 2 Understory Trees 0 3 Shrubs Evergreen Trees/ Conifers • Plait Unit 100 Multiplier .4 25' .6 20' 04/ . 8 15' _1l. 060 1 .0 101 = 063 9) 3UFFERYARD B REQUIRED PLANT UNITS/I00' !, 2 Canopy Trees 4 Understory Trees 0 6 Shrubs Evergreen Trees/ ifb Conifers • Platt Unit 100 Multiplier • .4 30. 0 �' a Op ,its 25 6 . 8 . zo' :104 �t' a (9) IS' 09d 1` tee BUFFERYARD C REQUIRED PLANT UNITS/100' 3 Cenopy Trees -rt I 6 Understory Trees 0 9 Shrths d Evergreen Trees/ Cib Conifers • Pit Unit Multiplier L 100' Structure Relived c . 6 30' r/ �J . AA,d 65) • 1.0 20'1 _N- • 4 _ Lower Int ensIty Use gight. �. • .Q HIDer Intensity Use • 3UFFERYARD D REQUIRED PLANT UNITS/100' 5 Canopy Trees117 10 Understory Trees 10 15 Shrubs d Evergreen Trees/ CD Conifers P:cit Unitloop Structure Multiplier1 Requed . 6 30. .7g. 0065 (61 • �;1,44V V4ir- 12 i ii%. z.,Pr-4,tir eV:rf.0",yi .11 15 =iY �lAa r y.�.� . �.•� tom ` I 2 Lower Intensity Use ti.U s 3ry1 . . wvia. � R � iws,—. .isw.+ri '! F3 4, Higher Intensity Use 3UFFERYARD E REQUIRED PLANT UNITS/100' • 4 Canopy Trees -; 6 Understory Trees 24 Shrubs Putt Unit • Structure 12 Evergreen Trees/ >� Multiplier J 100' Reuuired Conifers � I 40' dVi dile/ , a d .8 30' a ,x -.t • 'ice - 'flit e 1.0 25' 1f1r43 ��= • • .7 5 20' .: ,—=A '��?4� _n-• , a. w,� F3 • Lower Intensity Use .19 15'1 :7A724.114141410-aratiri. :•c F4 4, Higher Inte tsIty Use 3UFFERYARD• F REQUIRED PLANT UNITS/100' 5 Canopy Trees 1,.4= 7.5 Understory Trees 30 Shrubs �3 15 Evergreen Trees/ Conifers Plat Unit 100' Struct�e Multiplier 1 Required i 1 d6s. "`r ®p,d .6 50' 9P% dp" A. .8 q 0s : ',� .>t �..tJ St- 700 ."- G o r r ti _ � �' F3 • i D • %Air or JJ # !*• F4 Lower Intensity Use T .6 20' aar•_�'�.r t--T:t 4.6 p WIN; 4, Higher Intensity Use _. UFFERYADG Plcnt Unit100 Structure Multiplier 1 Required REQUIRED PLANT UNITS/I00' 11 / • 49 6 Cancpy Trees �0�d ,►% go h� 9 Understory Trees 0 .60 i;4d 75' aI e 36 Shrubs d ..4e, 'i �d d _le a 0 . • 18 Evergreen Trees/ a a.4.7. 06 ,70 Ccnifers .f .„„::: 0„,:ve ilk 5:h ©© © .Q .8 , git _law a ..=�T°� I so' '-' • ,l �i�'�d or 41 F•. •. 0 d''`a 0 � u.a F *i► ® d !t' " 3 VO ^ 0 loe 0 cZ 4111. ��f S © ,� . 2 • , �141..x •� t._ as or 4.4�� - ✓ F4; a .7 5 30' i; ... .6. rp. __: F + 4 as 5 Lower Intensity Use r T .� • as •:: aer4 F6 Higher Intensity Use . . _ . .. 3UFFERYAD H . . REQUIRED PLANT UNITS/I00' • 8 Canopy Trees .lig 12 Understory Trees 0 PIc.,t Unit Structue ;hold tiplier 100` Required 48 Shrubs a fi 24 Evergreen Trees/ g ' Conifers ,16;d:fif) d 0 ®d cisc II to .8 7S' a a.: -1�-01 - . a CD I tFr. .....z.,....06 a __ ed a . ,a too' 1. s �1N: ® s 06) ©© iv r 0 0IP p ''© 0 0 0 C) . 114 At rr ANIIPATAIrarnininnati 221.4 .1 1411,SgfrgreP.I.Skj loo 0, © rM, Ci� gi;=•:sc -_2I7.7 po a 3 c , 4:21 0 0 p 0 p • ';�a`2a-:sie t ma am.' r _ .....11 i a:• a ,►� a a:• a BW .t :. x+. _14 a dna Asj .8 4 0 ' .,a 0 " s' ,�1�1raa o r j��ra�'i �1�� r ..i� i.. a ♦,rrt. F6 Lower Intensity Use T _1i=•at a s , 440 r a ea a: ' ~j+r 'JAL 2 Higher Intensity Use FE \ CES TYPICAL MINIMUM SYMBOL HEIGHT MATERIAL OPACITY F, 44" - - -- - I 25% MMMOIMMOMMWE II Wood Rail n n n n n n n n/nvnvyvvv% F2 48" 50% Wood Picket F3 6� I 95% F4 8' Oct 1L Wood Stockade III 11 I _ I IlI - 11_ FS 6 1 1 1 1 I T I I I I I I I 95% Fs I 1 1 T I I I I I 1 I I I I Masonry Wall (Required) (Poured Concrete. Cement Block, Brick. etc.) • A -yn BENS SYMBOL HEIGHT MATERIAL B, 4' EARTH • B2 5' B3 6' 4,gmt 4rcilE;„Ei = � BES V WALLS SYMBOL HEIGHT BW, 4' BERM WIG' MASONRY WALL BW2 5' BERM "'/7' MASONRY WALL BW3 6' BERM W/8' MASONRY WALL LESS! MORE INTENSIVE I INTENSIVE 44 r TRANSITION AREAS 1 A 1 I IIIIII II ! C- 1_ I i 1 1 1 1-D-1 i 1 l • �. I ! F ..--"— ■fl' i.'-♦ / •q��.• '�°t: �"� I 111 r ,c....1'..•...7::'- .. ••� 1A t�: , �rs,1a Ya rc -- ri—. "' m;�111 tr-L.,.1=91iiiimi_il— rntiin -_i- '. � '=L,ca:1.--......w,,...r,, s= _ .L_w4.ir,... - [ii�i ,�L� -7-- :�:rte .�' w (+ i - }/} ? ( �•,_ . ..- - 1 fhb m� Y �y..- =r+=irk. • z•.J f 4)r obi `-. -� l _ ,.- -ter = - �� '. ..... , _ , iliA,ot.:_;,-,.04__-.4.44_ — ft ._....„.w.,,,-,, . - - P. .11., r'''' Oar/. L-..i ' ,:'Fe•:7--•.'- Y e•—• ' ' I - ...t., At.. ille.,S.,,...4. '. - ' � _ —' A \ : I rieir ., ! 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I t t 4 J • . : , . ,r ; 1 , f 1 J BUFFERYARD LANDSCAPING COST ESTIMATE PER 100 LINEAR FEET 02/15/95 BUFFERYARD Canopy Understory Shrubs Conifer COST ALTERNATE COST TYPE A 25 FT. 0 1 1 0 $100 $175 20 FT. 1 1 2 0 $325 $400 15 FT. 1 2 2 0 $400 $550 10 FT. 1 2 3 0 $425 $575 TYPE B 30 FT. 1 2 2 0 $400 $550 25 FT. 1 2 4 0 $450 $600 20 FT. 2 3 5 0 $750 $975 15 FT. 2 4 6 0 $850 $1,150 TYPE C 30 FT. 2 5 5 0 $900 $1,275 25 FT. 2 5 7 0 $950 $1,325 20 FT. 3 6 9 0 $1,275 $1,725 10 FT. 3 5 8 0 $1,175 $1,550 TYPE D 30 FT. 3 6 9 0 $1,275 $1,725 25 FT. 4 8 12 0 $1,700 $2,300 20 FT. 5 10 15 0 $2,125 $2,875 15 FT. 5 9 14 0 $2,025 $2,700 10 FT. 4 8 12 0 $1,700 $2,300 TYPE E 40 FT. 2 4 14 7 $2,100 $2,400 30 FT. 3 5 19 10 $2,950 $3,325 25 FT. 4 6 24 12 $3,650 $4,100 20 FT. 3 5 18 9 $2,775 $3,150 15 FT. 3 4 17 8 $2,525 $2,825 TYPE F 50 FT. 3 5 18 9 $2,775 $3,150 40 FT. 4 6 24 12 $3,650 $4,100 30 FT. 5 8 30 15 $4,600 $5,200 20 FT. 3 5 18 9 $2,775 $3,150 TYPE G 100 FT. 2 4 14 7 $2,100 $2,400 75 FT. 4 5 22 11 $3,375 $3,750 50 FT. 5 7 29 14 $4,350 $4,875 40 FT. 6 9 36 18 $5,475 $6,150 30 FT. 5 7 27 14 $4,300 $4,825 25 FT. 4 5 22 11 $3,375 $3,750 TYPE H 100 FT. 4 6 24 12 $3,650 $4,100 75 FT. 6 10 19 19 $5,275 $6,025 50 FT. 8 12 24 24 $6,700 $7,600 40 FT. 6 10 19 19 $5,275 $6,025 30 FT. 5 7 14 14 $3,975 $4,500 Notes: Cost estimates - Canopy $200, Understory $75, Shrubs $25, Conifer$150 Alternate Pricing replaces all understory trees with conifers g:\plan\bg\buffer.wk4 d A / A 0 c3ccJo • ;aD _It 'It ;Ix 06 9. 0 I Fr- ot � —,� - a - A / B , . 30 -►t- 0 -,;`= d e - T.") 15'1 1 Ait 000 . eiTiwir- 25 00 A_�. 00 1 2011OD9 .2te- i •.. — -tet tam, 1.� 20' % ' /j: 0 0 -: ?�/.�.: • ' [ 1 • 2 5' 1 0 0 151f Qt=66 0 B, ` ••• 9:p _ •�I.` i t: II0 _Ilea_ Is'ag (r3 0 dip ,I ` tip A / C 30' 0 g`. 0a 0iii ) 0 0 fr . • 1T— 15' . ♦ 0 0 n 0 illi 2 5 . `• d .n. ,1%.- ��0♦.bo a.' 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BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 • FAX (612) 937-5739 MEMORANDUM TO: Planning Commission FROM: Kate Aanenson, AICP, Planning Director DATE: March 8, 1995 SUBJ: Hillside Protection Ordinance Attached is a proposed Hillside Ordinance as drafted by the City Attorney's office. Staff has reviewed the proposed ordinance and has numerous recommendations for change. Please review the ordinance. Staff will be prepared to revi their issues and show how this ordinance could be applied to future development. CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 18 OF THE CHANHASSEN CITY CODE ADDING ARTICLE V CONCERNING HILLSIDE PROTECTION THE CITY COUNCIL OF THE CITY OF CHANHASSEN ORDAINS: Section 1. Chapter 18 of the Chanhassen City Code is hereby amended by adding Article V to read: ARTICLE V. HILLSIDE PROTECTION Sec. 18-80. PURPOSE AND INTENT. The purpose of this article is to ensure that development enhances rather than detracts from or ignores the natural topography, resources, and amenities of the hillsides. To this end, the following standards shall be used in evaluating all single-family residential subdivision development proposals: (a) All development proposals shall strive for maximum retention of the natural morphological features and qualities of the site, and development shall seek to enhance these natural features and qualities. (b) All development proposals shall take into account and shall be judged by the application of current understanding of land-use planning, soil mechanics, engineering geology, hydrology, civil engineering, environmental and civic design, architecture, and landscape architecture in hill areas. Such current understanding includes but is not limited to: (1) Planning of development to fit the topography, soils, and other conditions existing on the proposed site; (2) Orienting development to the site so that grading and other site preparation is kept to an absolute minimum; (3) Shaping of essential grading to compliment the natural land forms and prohibiting all successive padding and/or terracing of building sites; (4) Accomplishing all paving as rapidly as possible after grading; (5) Landscaping of areas around structures, and blending them with the natural landscape; 21201 (6) Placement, grouping, and shaping of man-made structures to complement one another and the natural landscape, providing visual interest, and creating a "sense of place" within the development; (7) Demonstrating a concern for the view of the hills as well as the view from the hills; (8) Special consideration in the design of such visual elements as street lighting, fences, sidewalks, pathways, and other street furniture to enable maximum identity and uniqueness of character to be built into each development; (9) Minimizing disruption of existing plant and animal life; (10) Locating roads to follow natural topography to minimize cutting and grading. Sec. 18-81. APPLICATION. (a) The requirements of this article shall apply to single-family residential subdivision. (b) The regulations of this article are in addition to those set forth in Chapter 18 and Chapter 20 of the City Code and any other relevant ordinances and do not convey any rights not otherwise granted under other provisions and procedures contained therein except as specifically provided herein. (c) Wherever this ordinance contains provisions which require more restrictive grading provisions, or other greater restrictions or limitations on development than would be allowed pursuant to other provisions of Chapter 18 or Chapter 20 of the City Code, this article shall prevail and supersede the provisions of the foregoing Chapters of the Code. Sec. 18-82. GRADING PLAN. (a) A grading plan shall be submitted with each preliminary and final plat, in addition to the information required under Sections 18-40 and 18-41, and shall include the following information: (1) All information required by this ordinance; 21201 -2- (2) Details and contours of property as required under Section 18-40(2)(f) of the Chanhassen City Code; (3) Details of terrain and area drainage; (4) Location of any existing buildings or structures on the property where the work is to be performed, the location of any existing buildings or structures on land of adjacent owners which are within 100 feet of the property or which may be affected by the proposed grading operations, and proposed or approximate locations of structures relative to adjoining topography; (5) The direction of drainage flow and the approximate grade of all streets (not to be construed as a requirement for final street design); (6) Limiting dimensions, elevations, or finish contours to be achieved by the grading, including all cut and fill slopes, proposed drainage channels, and related construction; (7) Detailed plans and locations of all surface and subsurface drainage devices, walls, dams, sediment basins, storage reservoirs, and other protective devices to be constructed with, or as a part of, the proposed work, together with a map showing drainage area, the complete drainage network, including outfall lines and natural drainageways which may be affected by the proposed development, and the estimated runoff of the area served by the drains; (8) A description of methods to be employed in disposing of soil and other material that is removed from the grading site, including the location of the disposal site; (9) A schedule showing when each stage of the project will be completed, including the total area of soil surface which is to be disturbed during each stage, and estimated starting and completion dates; the schedule shall be drawn up to limit to the shortest possible period the time that soil is exposed and unprotected. In no event shall the existing ("natural") vegetation ground cover be destroyed, removed, or disturbed more than 15 days prior to grading or construction of required improvements. (b) The grading plan shall be prepared by a professional engineer registered in the State of Minnesota. 21201 -3- (c) The City may require that grading operations and/or project designs be modified if delays occur which incur weather-generated problems not considered at the time approval was granted. (d) The City may require on-site inspections at any point during the development period to ascertain compliance with the approved grading plan and the applicable provisions of this ordinance. Sec. 18-83. DEVELOPMENT STANDARDS. (a) No grading, filling, clearing, or excavation of any kind shall be initiated until the final grading plan is formally approved by the City. (b) Fill areas shall be prepared by removing organic materials, such as vegetation and rubbish, and other material which is determined by the soils engineer to be detrimental to proper compaction or otherwise not conducive to stability; no rock or similar irreducible material with a maximum density greater than eight inches shall be used as fill material in fills that are intended to provide structural strength. (c) If the developer can demonstrate conclusively to the City that any of the following requirements are not necessary in the proposed subdivision and that the omission of such requirements would not result in hazard to life or limb, hazard to property, adverse effects on the safety, use, or stability of a public way or drainage channel, or adverse impact on the natural environmental, the City may waive those particular requirements. (d) Cut slopes shall be no steeper than two horizontal to one vertical; subsurface drainage shall be provided as necessary for stability. (e) Fill slopes shall be no steeper than two horizontal to one vertical; fill slopes shall not be located on natural slopes 2:1 or steeper, or where fill slope toes out within 12 feet horizontally of the top of an existing or planned cut slope. (f) Tops and toes of cut and fill slopes shall be set back from property boundaries a distance of three feet plus one-fifth of the height of the cut or fill, but need not exceed a horizontal distance of 10 feet; tops and toes of cut and fill slopes shall be set back from structures a distance of six feet plus one-fifth the height of the cut or fill, but not exceeding 10 feet; (g) Borrowing for fill shall be prohibited unless the material is obtained from a cut permitted under an approved grading plan obtained for some purpose other than to 21201 -4- produce fill material, or imported from areas in which the average percent slope of site before grading is less than eight (8%) percent. SEC. 18-84. GRADING CONTROL. (a) No land over thirty-five per cent (35%) slope prior to grading shall be developed unless it can be shown that a minimum amount of development is in the spirit of, and not incompatible with, the objectives of this article. In no case shall restrictions be placed which result in the use of such lands being unreasonably withheld. (b) The following formula indicates those minimum percentages of the ground surface of a site which shall remain in a natural state, or be developed solely for recreational purposes, based on the average per cent slope of the parcel in question after the deduction of land over thirty-five per cent (35%) slope. Access streets and driveways, but not including parking areas, may be given credit toward inclusion in the definition of "natural state" described above where it may be deemed beneficial to the City or where it can be shown that location and alignment requiring extensive runs of such streets and driveways cannot otherwise be practically altered. The following formula shall be used in determining the average slope: S = 0.00229 I L A Where S = Average per cent slope of site, after deducting any portion of site of over 35% slope I = Contour interval, in feet L = Summation of length of contours, in feet A = Area in acres of parcel being considered The minimum per cent of site to remain in a natural state, or to be developed solely for recreational purposes, shall be based on the following relationship: U = 30 + (S - 5)2 Where U = Per cent of site to remain in condition as described above, S = Average per cent slope of site, after deducting any portion of site of over 35% slope. 21201 -5- (c) In areas where the slope exceeds thirty-five per cent (35%), at least ninety per cent (90%) of such lands should remain in uncovered area as described above, unless such restriction based on the topography would be confiscatory. (d) In addition, except as provided in subsection (e), cuts and fills are only permitted for construction of the following: (1) Roads, not to exceed a grade of 10%, to connect roads outside the plat with roads inside the plat; (2) Access driveways and pedestrian accessways; (3) Drainage facilities and slope easements; (4) Dwelling foundations; (e) The City may approve cuts and fills for reasons other than those provided in subsection (d) after making the following written findings: (1) Such grading conforms to all other requirements of this ordinance and City Code; (2) The graded slopes have a natural appearance compatible with the characteristics of the surrounding locality; (3) Grading is minimized and prevents erosion; (4) Disruption of the natural topography and native vegetation is minimized; (5) Grading is necessary to allow the owner reasonable use of the lot; Sec. 18-85. VEGETATION AND REVEGETATION. (a) The developer shall submit a slope stabilization and revegetation plan which shall include a complete description of the existing vegetation, the vegetation to be removed and the method of disposal, the vegetation to be planted, and slope stabilization measures to be installed. The plan shall include an analysis of the environmental effects of such operations, including the effects of such operations, including effects on slope stability, soil erosion, water quality, and fish and wildlife. 21201 -6- (b) The revegetation and slope stabilization plan shall be submitted with the grading plan. (c) Vegetation shall be removed only when absolutely necessary, e.g., for buildings, filled areas, roads. (c) Every effort shall be made to conserve topsoil which is removed during construction for later use on areas requiring vegetation or landscaping, e.g., cut and fill slopes. (d) Vegetation sufficient to stabilize the soil shall be established on all disturbed areas as each stage of grading is completed. (e) New plantings shall be protected with organic cover. (f) All disturbed soil surfaces shall be stabilized or covered prior to the first day of November. If the planned impervious surfaces (e.g., roads, driveways, etc.) cannot be established prior to November 1, a temporary treatment adequate to prevent erosion shall be installed on those surfaces. (g) Construction shall be scheduled to minimize soil disturbance between the first day of November and the fifteenth day of April. (h) The developer shall be fully responsible for any destruction of native vegetation proposed for retention. The developer shall carry the responsibility both for the developer's own employees and for all subcontractors from the first day of construction until the notice of completion is filed. The developer shall be responsible for replacing such destroyed vegetation. (i) The use of qualified personnel experienced and knowledgeable in the practice of revegetation shall be required. Sec. 18-86. MAINTENANCE. The owner of any private property on which grading or other work has been performed pursuant to a grading plan approved or a building permit granted under the provisions of this ordinance shall continuously maintain and repair all graded surfaces and erosion prevention devices, retaining walls, drainage structures or means, and other protective devices, plantings, and ground cover installed or completed. Sec. 18-87. REQUEST FOR VARIANCE. If the developer intends to request a variance from any of the provisions of this section, the developer must submit a request, 21201 -7- in writing, with the grading plan. The request shall itemize each requirement for which a variance is sought and shall state the reason(s) for which each variance is requested. Section 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this day of , 1995, by the City Council of the City of Chanhassen. ATTEST: Don Ashworth, Clerk/Manager Donald J. Chmiel, Mayor (Published in the Chanhassen Villager on , 1995). 21201 -8- h tti Gl -7J r r•u ICrc1...rt.1 r LI-11 u IAA Z.,-3 -66 0(1,%-i -Q/xeiak c-4)-'-41 1/A4J TABLE OF NATURAL SITE TO BE PRESERVED MINIMUM PERCENT OF SITE TO REMAIN IN NATURAL STATE (NO CUT OR FILL AVERAGE PERCENT SLOPE OR GRUBBING) OR BE DEVELOPED OF SITE SOLELY FOR RECREATIONAL/OPEN SPACE PURPOSES 10. 0 - 12. 4 70 . 0 12 . 5 - 14. 9 77. 5 15 . 0 - 17 . 4 85. 0 17 . 5 - 19 . 9 92. 5 20. 00 or more 100 . 0 "Average Percent Slope" means the average natural inclination of the ground surface of a lot or parcel expressed as a percent and as measured by the following formula: S = 0. 002296xIxL A Where : S = Average Natural Slope in Percent I = Natural Contour Interval in Feet L = Length of Natural Contour in Feet A = Acres of Property (Parcel of Record Existing on November 13 , 1979 ) 0 . 002296 = Constant which Converts Square Feet into Acres and Expresses Slope in Percent 9 . 145 . 050 DEVELOPMENT STANDARDS. A. Maximum density and minimum lot permitted. In the H.C. Zone the maximum density permitted shall be one residential unit per 10 acres. On a contiguous parcel which includes areas both above and below the "toe of the slope" , residential units may be clustered together below the "toe of the slope" to take advantage of buildable areas with lower slope angles, provided the overall density for the parcel of one unit per ten. acres is not exceeded. Structures shall remain single family, BJ/ORDDRFT. 003 - 9 - IllaSuiferEE 21 '95 03:59PM AMERICAN PLANNING - — r.. • Page T►w THE ZONING REPORT parks ttcYn/ toitesit. Mochaniarrsa for liabStity and h�rilrling its 14,5 ctr, ?Uro nr pRved area is al- maintenance of this open space lodge with lot lowed in this area other than for drainage, owners or the homeowners association. Its per- elope retention and the driveway. Development, manence is assured by deed restrictions for perhaps; can be allowed in this area as a ape- individual lots and covenants for hillside plats. cial exception sought from the BZA upon ap- Exclusion areas might not count toward maxi- proval by the public engineer, where such de- mum gross density allowed on the tract, a pro- velopment is an enlargement or extension of vision required in about 30-50% of hillside the principal building or construction' of an codes, especially in locales with extensive hill- accessory structure. side terrain. These portions of the tract are deleted from the calculation of allowable den- The buildable site area is differentiated from sity. Even if excluded from the allowable den- . the actual building area, which is shown on the sity, these areas are always allowed to count site plan submitted for building permits. The toward minimum lot area of individual lots in a building area is the ground floor of the pro- plat if exclusion areas are distributed to the posed dwelling and garage to be built on the lots. Almost all codes do not allow exclusion lot. It excludes land set aside on the lot for • areas to count toward subdivision parkland personal recreational facilities such as tennis dedication requirements. courts and swimming pools. Some codes prohibit these facilities except by conditional use per- The buildable portion of a tract excludes zone mit. These facilities require a large flat area yards and the exclusion area. Within the build- subject to extensive cut and fill and extensive able portion on each lot in a hillside subdivi- removal of vegetation, which, in hillside areas, sion is an area identified as the buildable site greatly amplifies problems of controlling runoff area, defined by many hillside codes with a onto adjoining lots, creates a scarred appear- special term, such as the buildable site area, ance and a looming effect viewed from adjoin- level site area or building/dwelling site.area. It ing lots due to high'fills and deep cuts. is juxtapositioned on each lot to provide rea- sonable accessibility by a logical location of Several terms are defined that are used to cal- \ its driveway at a slope of no greater than culate the buildable and unbuildable parts of a about 15%. tract and to locate their boundaries on devel- The buildable area has a minimum size and opment plans. maximum slope level enough upon .which a Average cross slope defines the slope of the dwelling can be constructed without excessive tract to be subdivided to identify the exclusion resort to pier foundations with little or no area and to derive gross density. It also applies cantilevering. The minimum size is .typically to individual lots not part of a platted.subdivi- 40% of the buildable area allowed by the mini- slon developed under the hillside regulations. mum lot area required in underlying base zones Average cross slope is derived from the for- or a minimum dimension of about 30x40 ft, mule: S = .0023 IL/A. Where S is the average whichever provides the greater area. The maxi- slope of the tract in percent, I is the contour mum slope ranges in zoning codes from 10-16%, interval in feet shown on the tract map, L is typically about 15%. The boundaries of the , the combined length of all the contour lines on buildable site area are shown on both the pre- the tract, in feet, .0023 converts acreage to liminary and final plat for each lot, square feet, and A is the area of the tract in Development of that portion of the lot be- acres. The combined length ("L") is measured yond the buildable site area and outside the by rolling a planimeter wheal along the mapped exclusion area is prohibited by lot deeds and contours, then multiplying this length in inches plat covenants, although many codes allow times the map scale, to feet. The largest pre- grading and cuts and fills in this area for the termed map scale is one inch equals 100 ft, June 19, 1992 issue • • jage Three THE ZONING REPORT • with a larger scale of 50 ft or 20 ft preferred tract to be subdivided or on a lot predating to obtain a more accurate planimeter reading the hillside regulations or rezoning. on tracts with rugged terrain having very steep Thside elowest regulatfon grage ranges crossslope 10-20%uiring with 15%1ll- (20-25% or more) slopes. most typical. SIopes of 10-20% allow lot sizes Many codes also define building site slope in at densities of 4-6 dwelling units per acre; 20% • addition to average cross slope. It is the aver- slope allows 0.5 to 4 units per acre, or a mini age natural slope measured along a line located mum lot area of about 10,000 sq ft to 2 acres; near the center of the area set aside for the 25% slope allows 0.165 (116) to 3 units per ac- principal building and perhaps parking areas, re, or a lot area of about 15,000 sq ft to 6 from one side of this area to the other, locat- acres; 30% slope allows 0.0625 (1/16) to 2 units ed on the map to intersect .the contour lines in -per acre acres;or and90-40%lot area f about pe 20,0001sq ft allows to this area at.right angles. 1 unit per acre or a lot area of 1. to 32 acres, Other terms defined in hillside codes might where development is allowed by codes. No include 'fuel break' and 'fire lane' as forest development allowed by any code on slopes regulations applying to hillside areas. A fuel over 30-40%. Within these ranges, minimum lot break is a strategically placed portion of the area tends to be smaller for semi-arid and lot or strip whose vegetation is thinned or re- desert areas and larger for forested areas. placed to provide safer access for fire fighting and to reduce fire spread. Fuel break areas Hillside codes encourage concentration of the and fire lanes are often identified on prelimi- dwellings together on the most level and build- ' nary plans and plats and are mapped on the able portions of a tract so that the most rug- final plat as easements to assure emergency ged and steeply sloped terrain remains undis- access onto private property to suppress fires turbed as permanent open space. Most zoning and to clear trees and vegetation and bulldoze codes allow dwelling units to be transferred earth while fighting wildfires. These easements within the tract as a housing cluster plan or a need not be shown on plata if state law allows PUD. Averaging the area of lots is required for such access and bulldozing anywhere on private use of slope-density tables that are based on property to suppress wildfires. Or such access gross dwelling density on a tract but is not and bulldozing anywhere on a lot might be pro- necessaryif slope-density is based a minimum vided by deed restrictions, plat covenants and required area of each lot for steepness of perhaps even set forth in sales contracts so slope. that buyers are aware of the possibility of Cluster housing and• PUD plans are encour- their property being torn up to fight forest aged in hillside projects by granting density fires. bonuses through the CPC and elected board, of 5-15%. Hillside use regulations that allow only detached dwellings might allow attached sin- Slope-density regulations gle-family dwellings (2-6 units per building) in clusters and PVDs. Common recreational faclli- For hillside regulation, lot area increases as ties can be provided, since they are critical to slope increases, or conversely, gross dwelling the success of cluster and attached-housing unit density decreases as the percentage of projects. The percentage of building site area average cross slope increases. on the tract should be increased to accommo- Zoning codes show this relationship as a date these recreational facilities. slope-density table. For each range of steep- ness of slope, a minimum lot area or maximum Most codes allow a project developed in phases gross dwelling unit density is imposed on a to develop the most level and buildable parts June 19 , 1992 Issue FEE 21 '95. .04;01PM AMERICAN PLANNING P.5 F .iiiiiiilllilllllll.IIIIIiiIIIIII�llllii 1 i z lc, 44 P i 112 AP i r z i I i 30 ...IA" N Inrig Z d 5 F Pi! mi 05,V51 4 gl c�� i m a o % x r f' • 7' f` f / )4 k / iann • �? f. - 0 N c l 'mi 2.3 TL) f Ir c z m 2gsfi A�m< �— m Do ii �m 50 l! n I"' r i7do 0 k, `-'4 Z ri 4 : fil i 010 \ ` ?• '').4k.. Iri .0 • G rr; MI5 oD-i Z m,C N, V1 Z 0 m z3 m m'm J� ` z nitiOrn�mm P.0 m \ ?gym Q R0 �� mmp�Z.� <� r:0- Q ,r D N 0 cn G1Z m. m� t ' Kr fl z Z D 1)- ,m z '� co x2 —c) 7 PC; .0 I 13 rim $ 0 SI V, ;in mi c.) ox;11-�1m S VD m< 2?0,0 cly mx �0 ,ZDm-4 Z-1 Z 0 , i V w FEE 21 '95 04:02PM AMERICAN PLANNING r•o 3.4 TOPOGRAPHY,SLOPES/3.5 GRADIENTS • ,a •—. . —. —. . ..._ . u F ' I ae '•\ Min MI •J0 '\ i 1•• ,i. isrft.0 t A T IL I, C T ) .........\___________ _____±.„.....i__________.....„.. .........1 25 . o •X — moo_ Tt��Tr'sb J,.. t S T tt. ! ET .zp-- r0i ItaVec - e- p ce''1 2 LCTI O N z)I p • Figure 3.32 Thls site Is too shallow and too steep for walk-up buildings. ------------- hillsides. .-_.___ ------ -_- hillsides. Streets are either.parallel to the buildings and Slope Percentages Several adaptations are given as a cer substantially parallel to the contours,or they are as nearly taln percentage slope or ratio of horizontal distance to ver- perpendicular to the contours as the maximum practica- tical distance. ble gradient permits. Slope is very important, as too steep an incline can be an 2. Buildings are built In a series of steps following streets that effective barrier. In all cases the percentages of slope should oppose the contours. be as small as possible; Figure 3,38 converts the percentage of slope to the horizontal and vertical distances. Distance IS The choice of a site may not always be a part of the archi• not measured in any particular unit as long as the horizontal • tect's job. However, all other factors being equal, level or and vertical distances are in the same units, i.e., inches to gently sloping sites present few serious topographical cid- inches, feet to feet, meters to meters. culties as compared with those of hilly sites.See Figures 3.34, Calculating Slope You may calculate the percentage of 3.35,and 3.36. slope horizontal or vertical distance using the following formulas. Slope ratio = H:V(horizontal to vertical) VS r--- HX 100 3.5 Gradients where H - horizontal distance Suggested gradient standards are shown in Figure 3.37 and in V = vertical distance . the accompanying table. %.5 percentage of slope —218— FEE 21 '95 04:02PM AMERICAN PLANNING 0. P,7 i' 1ope- no \- av e- p ,... . APPENDIX A GLOSSARY OF TERMS 1. Drainage Course - a natural or man-made drainage network having a defined channel which appears on M-NCPPC 200 foot scale topographical coverage or on a developer's field topographic. 2. Floodplain (100 yr.) - the area along a stream/drainage course, lake, or pond, which would experience inundation by stormwater runoff equivalent to that which would occur on the average of once in every one hundred years after total ultimate development of the watershed. 3. Hydraulically Adjacent (Near Stream) Slopes - slopes lying within 200 feet of a stream/drainage course (from bank), which drain directly to the stream/drainage course or its associated floodplain. 4. Hydraulically Remote Slopes - slopes lying beyond 200 feet of a stream/drainage course (from bank) which may or may not drain directly to the stream/drainage course or its associated floodplain. S. Intermittent Stream - a stream or portion of a stream that flows only in direct response to precipitation. It receives little or no water from springs and no long- continued supply from melting snow or other sources. It Is dry for a large part of the year. ______-_--_ 6. Percent SloQe s Vertical Rise in Feet x 100515 100 ft. Horizontal lLun ____.2 - 7. Perennial stream - a stream that maintains flowing water In its channel throughout the year. • 8. Steep scope - a slope in which the gradient equals or exceeds 23 percent. 9. Stream buffer - ideally, an undisturbed strip of natural vegetation contiguous with and parallel to, the bank of a perennial stream (base flow channel), which may be designed to: protect hydraulically adjacent steep slope areas; • ▪ maintain or improve the water temperature regimen/water quality of the stream(s); ▪ provide groundwater storage/recharge for a stream; • complement regulations pertaining to the 100-year ultimate floodplain; 7 '--------- �__. - -- = sem_ _ - — — SCIENCE & SOCIETY ,:iyi,,I r y l?I 0;.:!,l l:., ''y Old forms of public ,/ discourse are vanishing, and i • .; ` �`;a, R ;� *` _�;. ;�, citizens are troubled by the ili ��,,. � ,• ;.31.., °A" �.-a .f; _r meanspiritedness of modern 3 Y- ` s 1 1 }• debate over issues that ` • `' : j center on American values. `' c $ • i. i PI • • t-' ,fig r :.•w'. . ( ti;- -\lk itiliri" ? \ • 46( :- - • y xa ( ,` ir • t • Fr .� r , r , j: 47(....it- \ , -\ PHorOs.on%ow mita-Luoult(RIGom maim.AREC„E-CoNucr Our identity In angry times, can we rebuild a true American sense of community? When city planners in San Luis but about more shadowy, philosophical balkanization that characterize Ameri- • Obispo, Calif., introduced a issues as well: emotional dislocation can society in the 1990s. measure last year that would and disconnectedness from dependable Intellectuals of a generation ago could have required all new homes to have a moorings. A wide array of cultural crit- not have anticipated the many events front porch, they were neither being ics believe that this public uneasiness that would eat away at the hegemony of whimsical nor trying to impose their per- reflects some gut-level sense that the postwar liberalism:the civil rights move- sonal aesthetics on the city's 43,000 resi- right relationship between citizen, state ment and feminism, and subsequent re- dents. But they were trying to impose and civil society has been distorted or actions to the perceived excesses of their values. The idea was that if people perhaps even lost. those movements; America's military have front porches,they will likely sit on Into tribalism.It's remarkable that just and moral entanglements in Indochina; them,and if they sit on them they will be a generation ago the social critic Lionel the wrenching social legacy of the '60s more apt to meet and chat with passersby Trilling was lamenting the complete counterculture; encroachments on and the people living next door.In short, dominance of American intellectual life America's worldwide economic power good porches make good neighbors,and by liberalism,by which he meant a gener- and consequent threats to the personal a more solidified,safer and more satisfy- al optimism about a capitalist democra- financial security of the middle class. ing community in the process. cy's potential to create the good life. A Americans increasingly find themselves Although this city's modest effort at liberal himself, Trilling nevertheless be- angrily brooding about the value con- social engineering was defeated in the lieved it was unhealthy for any unchal- flicts those changes have created. They end by developers and libertarian oppo- lenged social philosophy to overshadow a want to know if there is such a thing as an sition, it signifies a deep sense of anxi- nation's politics and culture. Trilling's American anymore and, if so, what this ety in the land, not only about street concern seems naively misplaced today, person acts like and believes.What's the problems like crime and homelessness given the political divisiveness and social ideal "American" way to think about tLS.NEws&WORLD REPORT,MARCH 6.1995 81 . r ■SCIENCE&SOCIETY the knowledge society,he says,but most Paradoxically,argues Lasch,the new elit- tradesmen and workers have moved into ists are often those who feel most free to class and economic opportunity,race,af- the American middle class economically espouse traditional liberal values—inte- firmative action, welfare and immigra- without ever acquiring the intellectual grated schools, wealth redistribution, tion—the value-laden social issues that capital to join the knowledge society. preferential hiring policies—even citizens confront every day? These people will be left behind. though those policies don't affect their An unusually large number of recent The stresses to families—and to de- own daily lives. They then stand above and upcoming books are attempting to mocracy—caused by this shift are wors- the fray as different groups of less privi- dissect the nation's cultural crisis.Their ened by the globalization of the Ameri- leged citizens fight over the very real very titles are ominous: Jean Bethke can economy. In this new economy, consequences of those policies,often di- Elshtain's Democracy on Trial, Christo- cognitive elites can move around easily, viding across racial lines. pher Lasch's The Revolt of the Elites and and they see their mobility as a freedom, The perversion of rights is a control- the Betrayal of Democracy, Myron PHOTOS. • A„p„LLE„_,.,,,G,,UM(BOTTOM)KO,R,,,,NO„-CONTACT Magnet's The Dream and the 6--r- ,._ � : D ' ', Nightmare,to name just a few.The •�� _ .- ` = writers come from different per & 3 1 ..1•-g4,,,,,,:-„z-..."4•.,... ,.,.= ... far spectives, but almost all point to The noble and shared - similar symptoms of societal trau- =J 7:,, . ma—including economic and purposes of the early civil _Al ; emotional rootlessness, cultural rights movement have been 00Mtic, tribalism and a rampant, market- -�0 driven individualism that is cor- lost in the self-absorption i* - ` t roding family and neighborhood. . ,. EVUA IT Cs Fewer and fewer Americans are and divisiveness of multi- _.� _ ix OT? fit; e giving primacy to their identity as culturalism and politics universal American citizens. In- . ~_ stead, they are withdrawing into based on group identity. Z. enclaves defined by gender, eth- - �. -g 1 nicity,lifestyle or fear. Y' _ - Some of these cultural enclaves - - ls;. -.. �..�. are familiar.Others are emergent. '' ' - Lasch, for example, indicts what _ - - - t - he sees as a new cultural elite as - -- - ` ~ :: • I'� the cause of America's moral -_ _-,- 1,,,. _I it, , foundering. In his final work be- f' " ' ,` ,_ { y, fore his death last year,the histori- '' - ,,"...t. '=< i`'-; an argues that the ultimate divi- '% -''-) - - . - sion in American society is %-- ; F- intellectual. Elitists, defined by �'=. ' kr ' .,- education and powers of mind, have divorced themselves from - - middle America and become in- !r~----- y"OD creasingly isolated. Dealing in in- ��II� ' 1 formation, concepts and abstract - p - • • symbols,this elite of lawyers,jour- nalists, our nalists, academics, consultants and other professionals has be- _ come increasingly cosmopolitan _ and"ceased to think of themselves t J;, , � as Americans in any important ", I` sense," Lasch argues. Middle- class Americans are left outside; _ they know it and feel bitterly re- sentful over their outsider status. Cognitive dissonance. Lasch's gloomy a modern version of the frontier legacy, ling thesis of many of the new cultural analysis is echoed by management spe- the national mythology. But those with- critiques.According to Elshtain, for ex- cialist Peter Drucker, who sees Ameri- out knowledge-based skills will be even ample, rights were once defined as im- ca's working world going through a more threatened by foreign competition. munities against harm.Today, she con- unique social transformation that will pit For them, global mobility is a menace tends, rights have come to mean privileged"knowledge workers"against rather than a cause for celebration. entitlements,often in the form of state- 1 everyone else.In contrast to the turn-of- The exit of the cognitive elite into their sanctioned favors for groups of self-pro- the-century social shift from agrarian to rarefied,comfortable world has created a claimed victims. A"politics of displace- industrial society,which didn't require a bizarre form of tension with the working ment,"Elshtain says,has hopelessly con- , major shift of workers'skills,this massive class. It's not the old tension between fused private and public life, so that rearrangement allows no easy retooling labor and capital,since many in the new private identities—"me and my fleeting 1 of low-and moderately skilled workers. elite are not wealthy and indeed can be angers,resentments,sentiments and im- i Education will be the ticket to success in harsh critics of unfettered capitalism. pulses"—become the stuff of public poli- i U SNEwS&WORLD REPORT,MARCH 6,1995 83 • SCIENCE&SOCIETY mitment in almost every sphere of Amer- very limited, immensely large and very . ican life. Voter turnout is down, people minute.... Nothing, in my view, de- cy and lawmaking. This argument has are less apt to attend public meetings or serves more attention than the intellectu- been elaborated by attorney Mary Ann political rallies,even PTA meetings,and al and moral associations in America." Glendon in Rights Talk,in which she ar- "the solidarity of union halls is now most- But Tocqueville also worried about the gues that America's obsession with legal- ly a fading memory of aging men." Peo- future of American civic life and predict- ism and individual entitlements leaves ple are even withdrawing into their pri- ed that this robust democracy could suc- little room for discourse about the right vate shells for leisure, Putnam notes. cumb to the excesses of individualism— ordering of citizens'lives.The result is a Writing only half whimsically in the cur- what he called"egoism." 1 cavernous silence with respect to person- rent issue of theJoumal of Democracy,he Many believe that Tocqueville's dire al and civic responsibilities- points out that more people are bowling prediction has come true. What Glen- When citizens define themselves pri- today than ever before-80 million in don calls"hyperindividualism" is at the marily as victims,then the institutions of 1993—but that the number of people root of civic disengagement,victim poli- state and society tend to move away from bowling in leagues has plummeted. Put- tics and the growth of the therapeutic their traditional functions and to „4O,O CrOB)BROWN ,„VIS(BOTTOM,JEFFREY „-„s„,,w„ substitute various forms of thera- p py. Indeed, according to Glen- t i I don, rights talk has convergedI with the language of psychothera- J1--' ' .k* /yatti, Following decades of py in contemporary American so �► : �i ,�- �. ,. T- ciety, encouraging the unfortu ' ,,:`illNIF '¢ /. 4 i, :r:: :a: et natehumantedencytosituate .— 4V.&' e cthe self at the center of the moral - /. uni , universe,which creates ill effects - . �� fewer and fewer in every corner of society. -. +;• Schools, for example,have be- Vit_; ,,a -.'-- a_. American citizens i come social service agencies and J i I • �� choose to exercise self-esteem clinics and are so l overburdened with therapeutic y•:1 - ” ` even this basic form tasks that they cannot perform — of participatory their primary function—teach ;-_,,:.,:ting—very well. Nowhere is this ,,-.0 democracy. • preoccupation with rights and = =:`"' _ " feelings more clearly seen than in " is 'a:_�.-- ., _ the teaching of American history, 7'" "`` ' `' � _ which is increasingly guided by „:•12;41,--7--,`:.-. _ -c 'rK - egf-i.•- - multiculturalism, political cor - � ,r rectness and the desire to assuage +n� �” ' �, the feelings of groups who would _ " , �� •!Wi ,�„`--- -, I A �a.�.6 -- �" �: ,... r prefer that their history be differ- ' rnc '`� `. ent than it in fact was. ....i....,,‘„, --' -'- T•715.,--z" i• tr' ""' How needy are you? Similarly, /' - - \ j the institutions of government \ -- - - ' spend less time governing and _.-.- \ more time attending to the -- - \ - \/'- '"\� " //1 .\ bruised feelings of various class- - es of victims. Most government _ • - programs, says Elshtain, do not go into communities and ask, What are your strengths? How can we nam believes the leisure-time trend is state. Critics like political scientist Sey- build on them? Instead, growing out of another sign of the woeful decline in mour Martin Lipset blame the intrusion New Deal liberalism, they ask, What Americans'social interplay. of the capitalist ethos into the moral lives are your weaknesses? How needy are Social critics take such evidence seri- of Americans. This "double-edged" be- you? This fragmentation of the citizen- ously and point out that one of the earli- lief in rational self-interest and distrust ry into segments of needy clients is at est and most astute critics of American of the state is responsible for America's the root of the growing discontent with democracy,Alexis de Tocqueville,did as economic competitiveness as well as its long-standing social policies, including well.Indeed,when this French aristocrat alarming social troubles,including crime everything from affirmative action to traveled throughout America in the and divorce rates,Lipset contends in his welfare and immigration policy. 1830s, what impressed him most as the forthcoming book American Exception- The overarching issue, almost all of keystone of democracy was the vast array alism. Making matters worse, this me- these critics agree, is the absence of ro- of civic associations that Americans first morality is largely unaffected by any bust debate about these questions, the tended to form: "Americans of all ages, serious religious,moral,literary or polit- disengagement of average Americans all stations of life,and all types of disposi- ical prescriptions about how to balance from the basic values questions that de- tion,"he wrote in Democracy in America, the rights of the self with obligations to termine the quality of their lives. Har- "are forever forming associations. ...of others,says sociologist Alan Wolfe in his yard's Robert Putnam,for example, has a thousand different types—religious, book Whose Keeper? documented a slackening of civic corn- moral, serious, futile, very general and Prescriptions for the future vary great- 84 U.S.NEWS&WORLD REPORT.MARCH 6.1995 - -- - ly,and reflect distinct theories about how • SCIENCE&SOCIETY American society reached this state of crisis in the first place.According to My- ron Magnet, for example, most modern The new promise of ills can be laid at the door of the '60s— the counterculture's moral relativism and permissiveness,the narcissist preoc- • cupation with the self and the narrow- cancer vaccines ness of movement politics. Few others are as thorough in their denunciation of counterculture values. It was not the Triggering the immune system to battle tumors challenges to authority that were the problem,Elshtain argues,but the rancor w nONAL UR INSTRUTE and meanspiritedness that have persist- Vaccines for Cancer and ed and remain evident in the battles over AIDS in San Francisco. hate speech and special interests today. The scientists are trying to Further, she adds, overzealous judicial grab the immune system's at- interventions effectively closed off public tention with vaccines contain- debate on such charged issues as abor- ing antigens, foreign sub- tion and affirmative action,imposing so- stances that normally trigger lutions and generating bitterness that , an immune response. On tu- might not have arisen if these issues had mor cells, antigens might go been resolved through the democratic unnoticed,so vaccine develop- processes of debate and compromise. - ers are "manipulating" them Beyond ideals. How to re-engage citi- _ to increase the likelihood zens is a question without an easy answer. _ -- they'll be recognized and at- No one is arguing for rolling back the ' - • " tacked by the immune system. progress of the '60s, the permanent and • - Such "therapeutic vaccines" positive achievements of the feminist '+___ ! F*•- are designed to treat people movement and the early civil rights .. •.• llk,.. who already have cancer. A movement. Indeed, many voices warn - '+ vaccine that would actually against nostalgia: The middle-class val- prevent cancer in high-risk in- ues of an earlier time often were stultify- f dividuals is the next step but ing; small-town America was bigoted inprobably years away. many instances; patriarchal institutions Recent research findings are like the corporation and church did need encouraging, although no trial to be questioned and shaken up a bit. "" comparing cancer vaccines If the communitarian critiques can be " with a placebo has shown a faulted for being short on prescriptive dramatic therapeutic effect. particulars,this reflects a broadly shared But some scientists say their reluctance to offer (or expect) any kind i results are too good to be a of national corrective to democracy's matter of luck."It isn't just one current ills. Glendon, for example, sug- The fight.Medicine might stoke the body's defenses. miracle patient,"says Malcolm gests revitalizing Louis Brandeis's idea of Mitchell of the University of using states and regions as laboratories f the immune system is the body's California at San Diego. Mitchell creat- to test ideas,much the way leaders of the defending army against foreign in- ed his vaccine a decade ago with cells new congressional Republican majority vaders, then cancer cells are Stealth cultured from two patients' melanoma are pushing"devolution." Cultural con- bombers.For reasons not yet fully under- tumors.About 10 percent of his 154 treat- flicts, she notes, are often local in color stood, tumors manage to elude the im- ed patients have lived three to more than and resist prescriptions from on high.As mune system's radar.Patients must turn eight years, compared with an expected Magnet comments,"You cannot by fiat to chemotherapy, radiation and surgery survival of six to 10 months, Mitchell command a counterrevolution." to eradicate their cancer.But medicine's says. Still, he and his patients shy away As for the divisiveness and squab- arsenal is a clumsy substitute for the usu- from the word"cured.""I think cure is a bling, Elshtain points out that Ameri- ally hawk-eyed immune system.Conven- concept that most cancer doctors don't can democracy was never intended by tional treatments often kill normal tissue come to easily," Mitchell says. the Founding Fathers as a utopia where as well as tumors,while stray cancer cells Custom-made cures?Others in the field struggle ended and problems vanished. sometimes escape destruction. are capitalizing on an old idea—vaccinat- "Democrats know better," she writes. Frustrated by standard therapies' in- ing patients with their own tumor cells— "Democracy is precisely an institution- ability to cure patients consistently, a by designing antigen potions that put the al, cultural, habitual way of acknowl- growing number of cancer researchers immune system in high gear. Michael edging the pervasiveness of conflict and are hoping to create vaccines that en- Hanna,president of Per Immune,a bio- the fact that our loyalties are not one; list the aid of the body's own sharp- technology company in Rockville,Md.,is our wills are not single; our opinions shooters—special immune cells called immunizing colon cancer patients with are not uniform; our ideals are not cut cytotoxic, or killer, T cells. Some of their own tumor cells and BCG, one of from the same cloth." • their pathbreaking work will be ex- several substances called adjuvants that plored this week at the Second Inter- boost the immune system. BY WRAF HERBERT national Conference on Engineered The time needed to custom-make U.S.NENS&WORLD REPORT.MARCH 6 1x45 - - • • t- ;,..'''":%..7.:'.....,0 -, : �i a - ., !;i.....14.-,_ • s r ` '.;o'. ,;r k w+. t: t r # Mart No �«�•' aC t lab �.�. s � • • a ~ 'based .E5mpaniet.�fLa� sn`. -� ., , beear- ix. � atnnesoja: },,r -.4.;.11.--.. .,t-•'',im P '�' - property} -nosae---, often that •- i s M.r r ,... ~ ""``�e� ---14'..1.!--. b c pas Eawor'r l cadre_ t rt"�'f't ': 'oWnera of coin , e t, , gent own�'�tIt�chang "No ,oqr prop „Rihoiiave'suf.r` +" i E ` .„.„..f."4:_ 4 wantsuchangedso'bedlyY6albe # •' t^ rx. J »<. ..Ladd tazs»reo 5 eo a3 F'• �K 1 --, to�toundi717rtha pub}taufor�,th5�"` „ ,F .�, Y � � .�= t -- $r#velopment offices of ne ghban g 11 ea -'a tend. awaretha ry "� � $ The b ggest.operating xpeose�in this rts� ever�g a-'i-i:'. ,j', . -r ,' .-; ; - - i t .business s '"'_far real estatattazea'1lbaays▪ v ` s ,� - t se e - erg n tiff .s•••.!. <<r esota . .. }. Olan.lrb0aF.00mpantirrnj andimana8 _ ,;s... eat 3 '-'r tme 1000 rental�itiptkIorra, Y lb u1ttHp BAas"4o4ci6ats0a _AA)an -t- ;,44;4i..'. -r =� > , ....... • e -peeoenf to percent leaf in-i„pc y-taxes. y c)ce`president, -r ._ ssi:x Y.��ii.+, ,r, r l.s 'fit --3;i.. G- -i a s '.�lf^"1;9-'.a.-- :•... acid in Nebraska it's 10 percent to,50 parent. -m;,*1-0t ar*,sayc�t it -4,f-f.-'--S 4 e- Y-7- ' ,, �" " be taxed so m .4 than here m �w� had • �,-tY Owners 01 AIS ..-e-.1. It -increases maome:Mianesotamunicipali 1 .°47-. sof-..., R astatie,sreal"es r$ 14-11--ti•es—without any increase;m values E-of as'mttate ser Yaff0."whose eo any owns and. '"'c'' *^ 4•" .:"."1,-;' r, • r,--.- .a �, ,d�;ti :� ,F,- 'zham. r'a,.5,• much as n percent in cn az aAnd the IDaw$es a 000 apartments m fo �e t F. r problem continues to escala should somebodY PaY tourer z p I3ow bad sit?Not only do owners of_ .. rttmes what another person pays?,Th m les_ „�ir r - i�"Z.apaitmmts m Minnesota pay higher pioper- line is thatourstate has chosen to fk.'1.:,--. v- sgiS:tytaxes than neighbors awning homes of--P• bsidize homeowners at the expense of more than Idle the .+fes t market valise.they . ` o0utparabk also s• hell out oa psi t�a' ��q ` i s flan t wi exaf much as-their cou nter • the "P.n..' rars.taxes paid�nati�nal4. < saris the oamtry.Nationally approz Mtnnesoti apartments have____.„,...re,,,,„, aually re- national aver i i " imatel 9 t t rem - mained stable, because c f L stilet. Y Peroeu Of ilpn Min... s fa mainly , >ta �§ �r '11-.0- �asward property-taxes.In Mmnesota,-it r - timing proper_,,,_. is EVw.. the high,y t '&t - .a r 4�-most-•20-percents according 'to'�,rthe' rates at whidi malhfaindy housing bas been� �perty�eS■ .� Chicago-based Institute of Real Estate Man t�taxed rutuallyeliminated mart went owners •_,,11.1, 1171,40,.. 7, 14,,,,,.--- +- t +agement 78 tum ou mmtuagedi _ ,.w.„[.-, „ . � --- - ;.--_- :: - inVCSlOR+20a6CCk.- el b▪ A Who'reaHy Pays?:-z-'.. ,. 1 k_. r T ,,_7. -time house'baye:I2o save more''-j-4 i .1- - x,,_i r '� .4 { l _ y-�-,-. e•: . r p pay`-. - -far adowLnpaylmseutaudueateda ps s r. a i1„ < d Moms ' shitewaissOortege VlmaL5Rtatebousmg �-- t{1Gnte a 3_ ''''.-':i..10,4 :•-. se##L;' •J �. 4?e.-41 1•r ‘--T ' - ---.' ::::..----'4.';:--:-. -1-.- -...", --j--'"..*:-.'-ir::ri ;.:-.': ' '- "AS'. - r s a t WI; . -4.- �+ t S r • / • • i 'i'�S - r- u // < ..-,-;,,t i t-. - -.` Y:1 ^. r o-:$y '�' s tG� 2.rR k� 1- ..._,._ '�3 s '' i +ter rsv fir. a. , g s G ' s { yy -'s, 5�4.rt / �'�`�"' r Y''�' ▪ r WIN CITIES BUSINESS YONTNLY FEBRUMY 1995 es • "It's all counterproductive to the needs of the state,"Nolan says."We're going to get to the point where there will be a large need for rental owning apartments,however,will dispel that housing,and they're going to be pointing fin- notion faster than you can say double-digit fin- gers at us.Our answer will still be,'It just creases. doesn't work,folks.'" "Operating a building with about 100 units is The simple fact is that significant gradual re- comparable to running a S3 million factory,plus lief could be granted without causing a major during that three-year period. having expert knowledge in accounting,engi- effect on the rest of the tax base because apart- "Even if you concede that the state has an in- neering and social problems," says Gary ments comprise only 3.3 percent of the market terest in home ownership,it's hard to defend a Hegenes,president of Bloomington-based value and pay 6 percent of all property tax.But system that lets people buy a more luxurious Hegenes Properties,which owns more than even if,by some act of God or the Minnesota home and the price to pay is penalving renters," 1,600 units."No one has any idea what we go Legislature,taxes on Minnesota apartments says Jack Homer,general counsel and chief lob- through to run our businesses.In North Dako- were reduced by 30 percent,the rate in Min- byist for the MHA,who has tackled the issue for ta,our property taxes are 8 percent of our gross nesota would still be more than twice the na- 20 years."We give each and every homeowner income.In Minnesota,it's between 20 percent tional average. in the state with a house valued at$72,000 or and 25 percent." more approximately$900 via a homestead credit The issue is a critical one,affecting the one of every year,whether they need it or not.That every four Minnesotans who rent housing.Be- Favors For Homeowners doesn't help you buy a house.It helps you move cause metropolitan property values are higher from a big house to a bigger one." than they are in the rest of Minnesota,taxes inrying to find out why,in a state bally- Advocates of the current system counter that paid by apartment owners in the 11-county honed for its progressive nature,Min- apartments are"income-producing property" metro area,where 31 percent of the state's pop- nesota's legislators pass laws that ac- and,therefore,justifiably taxed almost as much ulation rented in 1990,are significantly higher. tively discriminate against one class of as the first$100,000 worth of commercial and More than half of the people living within Min- people based on their inability to buy a home is industrial land. neapolis city limits are in rental housing;in St. as difficult as getting any of them to return "Legislators will tell you blatantly that even Paul,the total is slightly less than half. phone calls for this story.Senator Carol Flynn though they agree with us that it's not fair to In 1990,when the vacancy rate for multifami- (DFL-Minneapolis)of the Senate tax commit- renters and does nothing to promote well- ly housing was 8 percent,the median monthly tee was among those who did. maintained apartment buildings.they're not go- rent in the Twin Cities was$444—and accord- "Our goal has been,and continues to be,en- ing to do anything to hurt homeowners and indi- ing to census figures,only seven U.S.metropoli- couraging home ownership,"Flynn says."Our rectly hurt their chances for reelection,"Homer tan areas had higher median rents."Frankly, system is a success;Minnesota has the highest says."Politicians are very fearful of doing any- renters are largely unaware of their tax burden percentage of home ownership in the country. thing that could be perceived as raising home- and tend to not be nearly as effective a voice in Our system is not discriminatory to renters or owners taxes.Across-the-board breaks to home- the legislature as homeowners,so they're easy we wouldn't have a renter's credit.And when owners area tremendous reelection machine." to create inequitable policies for,"says Pam we've had reductions in property taxes,I'm sure Neary of Afton who,as a first-term state sena- renters haven't seen a reduction in their rates." for two years ago,proposed with Representa- According to Edina-based Apartment Tax Rates:A Sea of Subcategories tive Steve Kelley(DFL-Hopkins)a 109-page Search Profiles,which surveys 1,600 major bill that would dramatically simplify the tax sys- multifamily properties containing more than , erhaps because it lacks smokestacks tem into only four classes of property. 130,000 apartments,the average monthly rent and facilities surrounded by chainlink Although fairness alone should require that for major apartment buildings in the Twin fences,the rental-housing industry in taxpayers be able to understand the tax sys- Cities increased from$516 in June 1991 toMinnesota is seldom viewed by out- tem,virtually no one in Minnesota does.Even 5544 in June 1994.That's because vacancy siders as a vital contributor to the state econo- a Senate tax-committee analyst has a tough rates dropped from 5.7 percent to 3.6 percent my.A quick glance at the tax returns of anyone time explaining the basics,saying after only 30 • Legislators are not going 56 FEBRUARY 1995 TWIN CITIES BUSINESS MONTHLY { Larry Pogemiller(DFL-Minneapolis)who has worked hard to provide substantial property- will dispel thattax relief."We didn't do that]with the proper- .double-digit in- ty-tax reduction bill for apartments in 1989]. We paid for the reduction in tax rates with$100 tant—than cash flow and the economic value of ibout 100 units is million in state cash." the buildings.The predictable result was an Ilion factory,plus The result:In 1990,taxes paid on rental prop- overheated market for rental housing and com- tccounting,engi- erty not only stopped going up by double digits, mercial properties,with buyers paying more for ss."says Gary but actually went down,by an average of 10 them than they were worth. Imineton-based percent.For properties with three units or less, Then the worst disaster property owners ,wns more than the tax capacity rate fell from 2.8 percent in could imagine came in the form of the federal idea what we go seconds."This stuff gets so complicated so 1992 to 2.3 percent in 1994.For larger units,the Tax Reform Act of 1986.One of the most dras- In North Dako- quickly,it might be best if I just fax it to you." rate has dropped from 4.1 percent in 1988 to 3.4 tic changes:The period over which rental prop- .cent of our gross It all adds up to the most complex property percent today. erty could be depreciated was changed from 19 ween 20 percent tax classification system and the highest apart- Unfortunately,for apartment owners—and years to 27.5 years.Worse yet,depreciation ment taxes in the nation,according to the MHA renters—rising property values mean rising shifted from accelerated to straight-line. ecting the one of and Lynn Reed.research associate with the taxes.Meanwhile,as cities see less federal and Because rental-property values had been tied ent housing.Be- Minnesota Taxpayers Association."Thirty of state money coming their way,they are creating to the tax shelters,investors were left with build- alues are higher the 50 states have only one class of property,we new fees and raising others to balance their ings that were hugely devalued.In fact,investors dinnesota,taxes have 15,"Reed says."With our 15 major class- ever-tightening budgets. were left holding portfolios of real estate that n the 11-county es.the only state that even comes close to us is Often,higher fees are being charged to own- were no longer worth as much as the debt with 1 the state's pop- Arizona,with 10." ers of multifamily housing,who,in addition to which they were encumbered.Some observers nificantly higher. Dozens and dozens of subcategories and state being saddled by per-unit per-year licensing cited the value-debt disparity as a fundamental vine within Min- formulas complicate matters further.The Min- fees,pay more(in relation to value received) cause of the savings-and-loan crisis. al housing;in St. nesota Department of Revenue even has a spe- for trash pickup,sewer hookup and streetlight Then another decision made in Washington in half. dal 52.000 property-tax credit classification for maintenance.When the MHA recently sur- rocked the industry The ability of the state and to for multifami- recipients of the Congressional Medal of Honor. veyed 40 cities throughout the state to estimate cities to issue tax-exempt bonds on behalf of median monthly Sound confusing?It gets worse.While most the annual cost of municipal fees for a 24-unit multifamily housing developers—in effect,cut- 44—and accord- states simply multiply the estimated market vat- building,the totals ranged from$1,768 in Du- ting the costs of financing construction—was t U.S.metropoli- ue of property by the tax rate,Minnesota multi- luth to$8,124 in St.Paul. cut back.Jurisdictions were allowed to sell rents."Frankly, plies estimated market values by a special tax bonds between 1987 and 1989,however,and their tax burden classification—a"tax capacity"rate—and then that spurred construction.Lots of it. fective a voice in multiplies that by the tax rate for a particular Bantle Back From the Overbuilt Efiit es The result was high vacancy rates and so they're easy jurisdiction. plateauing rents in some markets,decreasing for,"says Pam The current tax capacity rare for properties a efore the mid-1980s,federal tax laws rents in others."A person couldn't open the -term state sena- with four or more rental units is 3.4 percent, benefited rental-housing owners—and newspaper classifieds in the late 1980s without rith Representa- which has moved slightly downward in recent 1.- income-producing property owners in seeing an ad touting an incentive to sign a lease, :ins)a 109-page years,but not to the extent other classes have. general—to spur rental housing,keep like'Sign our 12-month lease and get the 13th iplify the tax sys- The effective tax rate,which refers to the rents down and transform the rental market once month free'or'Rent here and get a free P1tLy'. amount of money owners pay in property taxes again into a good investment. VCR,'"Horner says. uld require that divided by the market value of the buildings,is To no one's surprise,the government's strate- The local industry is only now recovering; and the tax sys- 3.7 percent for Minnesota apartment owners gy worked.In fact,it worked too well.Savvy in- multifamily property values seem to have stabi- sota does.Even this year.For homeowners,it's only 1.6 percent. vectors were attracted to the tax-shelter nature lized,and apartment-vacancy rates are clearly yst has a tough 'You can lower rates on a classification of of the industry,and for many of them,the tax drifting downward.With the abating glut of ng after only 30 property and shift it to another."says Senator shelters were as important—if not more im Po pot- housing stock,renters can expect gradually ris- homeowners . TWIN CITIES BUSINESS MONTHLY FEBRUARY 1995 57 O SPECTACULR The Light at the End of the Decade A VIEW. wners taking a stab at the low-income market face the added headaches of competing with nonprofit developments. Take Tom Fletcher of Fletcher Manage- O ment,Inc.,who owns 60 units in three locations in FANCY Minneapolis.After he bought a Loring Park build- EUROPEAN ing that was in rough shape and rehabilitated its 32 units at a cost of about$14.000 per unit,a govern- NAME. ment-subsidized program spent$50,000 updating each unit of a neighboring building. ing rates;owners can expect a return to profitabili- "I got a building into good running shape for ty.How soon will depend on several factors,in- one-third of the cost that they did,"Fletcher says. r'„,.10 eluding the direction of interest rates. "In fact,I don't see government-funded projects Mark Sween,president of Minneapolis-based spending anything less than$40,000 per unit. It DOWNTOWN Hawthorne Management,Inc.,says that the recov- gets tough when you've got to charge$300 rent to ADDRESS. ery has been based more on reductions in long- come out even,while a lot of these nonprofit pro- term interest rates than on increased earnings jects target the same people I'm trying to rent to. j from operations."Net operating incomes—bot- "It discourages someone like me from getting in- tom lines—haven't increased much,because other volved.They'll say that I didn't do as good a job of operating costs have tended to eat up much of any rebuilding,but the on-site manager for their prop- ry/ OU SHOULD increase,"he says. erty said at a city council meeting that she wouldn't STILL MAKE i To date,only one segment of the market is en- hire that building's general contractor to build a RESERVATIONS. joying demand clearly in excess of supply,and dog house." that's"the very low-income housing,where rent To offset his property-tax increase,especially is less than$300 a month,"says Mary Rippe,pres- when rates weren't increasing.Fletcher went to a ident of the MHA."We just can't build a building property assessor and negotiated the values of his • to meet that need.We're a long way.from having properties down.His taxes went up anyway,but even an appreciable amount of any construction, not as much as they might have. because the rental dollars don't cover the costs." "We're nervous about what's going to happen in 7lur'r G,aa„G•n•/I•d!•1.•,. Nationally,multifamily rental starts declined by 1996 and 1997,though,"he says."The taxes I pay .:.;,.,,,r.l ae u.0 asen,,,,::1: •. about 75 percent from their high of 515,000 units in 1995 are based on the market value in 1994,and in 1985 to the 1991 level of about 134,000,the unless the city of Minneapolis goes crazy with a 15 tf,,:,!! w,r Prr lowest level since the 1950s,according to New percent increase,I expect an increase of 5 percent York-based Multi-Housing News,an industry next year.What makes me nervous is the assessor n:;-A_,:!}n.,i,,.S.v u.'n.• trade journal.Locally,Harry Yaffe's only ongo- coming on January 1,1995,boosting the value on /iu.0:.:,r.w/..,-,:-. ing project is an 80-unit addition to an existing the property that's now doing better and giving me ru r/„Tn,u(:ni., property in Cottage Grove,for example.Stuart a 15 percent increase in 1996." Nolan is building a few townhomes—"a pittance The good news?Societal trends and demograph- compared to what we're used to,"he says."I'm is shifts bode well for multihousing property own- .t'<h,•.rr ij t••„a,rur r./•;.:. still an active developer,but in Minnesota,we're ers.Perhaps most significantly,the age of first-time ud.,Lt.)aha:.x. going to be dinosaurs pretty soon."he adds. home buyers is on the rise,which means that peo- •'/l.r,F.Bu,if u:,.,: ple are renting longer.The average age at which .�.,ur,,i•.J twi'll 1.,.-,u. . • n n,r:,ri•.a,u„/,n,,•..u. Societal . .�---- • bodetwell for mult�housilg property 58 FEBRUARY 1995 TWIN CITIES BUSINESS MONTHLY -1 1 I NEITHER SNOW NOR RAIN, NOR HETEROGENEOUS COMPUTING PLATFORMS WITH MULTIPLE WAN LINES CAN KEEP THE MAIL FROM GOING THROUGH. the low-income d headaches of 4 _ • _ Now that we've introduced Mail* developments. ! x `+?M' i r i Hub,a comprehensive and extraor- letcher Manage- '. - • ":-.:.-7-..;4-.. dinary approach to E-mail mtegra- hree locations in k • _. [ion,nothing can stop the mail from >ring Park build- habilitated its 32 • going through.■fou see.Mail'Hub r unit,a govern- Americans purchase their `�• r •r - is a package of products and ser- 50,t)00 updating first homes was 28 in 1983, '' ;=, , vices Nat can bring together even but is expected to climb to xJ' • Y the most incompatible of E-mail nning shape for 32 by 2000.Meanwhile,the 's. j z platforms-■Multiple gateways. I."Fletcher says. number of renters between �' +• a multiple W:4N lines,multiple sen- -funded projects the ages of 35 and 64 is ex- dots and directories—it makes no .000 per unit.It petted to increase almost --(V-\ - difference.With 11ai1•Hub,you age 5300 rent to 30 percent as divorces and - _ .e nonprofit pro- large numbers of people •-.`\ t � can achieve unprecedented syn- in to rent to. decidingto remain single -`- . g gi S' is r chronization.'Take Honeywell. •from getting in- increase demand for apart- They wanted a messaging as good a job of ment space lsystems and r for their prop- Although rent prices j 1 to link multiple E-mail and hat she wouldn't have been relatively flat s y 4` provide a truly global directory for 35,000 E-mail users in 95 coun- actor to build a since about 1986.they in- i '- - •. •- ' _-' I evitably rise as vacancy • �Y tries.Thirteen companies.including ease,especially rates fall.That could,how- Y -----i-.„-:,,,,!,7-4!, Control Data.responded to this -cher went to a ever,backfire for apart- sia - J challenge with proposals.'Control the values of his ment owners. ''c Data won because no one could up anyway,but "If vacancies keep drop- match our networking experience ping and rents start inching i �' r �_ in complex heterogeneous environ- .ing to happen in up as they already have, • ' me• rits.And only we could come The taxes I pay we're going to get some '' alue in 1994,and people calling for rent con- I up with a solution that could can- s crazy with a 15 trol.as we had with the I �,,:;'` nett everyone without dumping :ase of 5 percent rent-control referendum in . existing systems.'In tact,thanks is is the assessor Nlinneapolis,"Nolan says. • to Mail'Hub.Honeywell now has ing the value on "We beat it handily.but 1 a single company-wide address er and giving me don't want to no through it direclo Na[will be the foundation again." 4' and demograph- Industry observers aren't ii for worldwide E-mail communica- Ig property own- betting the family apart- 'r Lion.'For more information on age of first-time mens on drastic improve- Mail•Hub and our ability to pull means that peo- ments any time soon."If - together computing environments age age at which [key]legislators like Ann so organizations are more eRc enc Rest, Doug Johnson or Roger Moe said it was time * call 1-800-257-OPE\and ask for tax reform,that would ''� for our interactive presenta- he reason for hope," tan disk. Electronic Messaging Horner says. "I haven't Solutions.With our help.the mail heard that yet." ■ e��ms...� will always get through. T^ Jared Morris it assistant ed- @D CONTROL DATA -e trot d Twin Cities Business Monthly. The integration Compery )erty owners. • TWIN CITIES BUSINESS MONTHLY FEBRUARY 1995 59 1 I !