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HomeMy WebLinkAbout06/19/1995 TENTATIVE AGENDA SHAKOPEE, MINNESOTA COMMITTEE OF THE WHOLE (MONDAY) JUNE 19, 1995 Mayor Gary Laurent presiding 1] Roll Call at 5: 30 P.M. 2] Approval of Minutes of May 30, 1995 3] 5-Year Capital Improvement Plan 4] Storm Water Management Plan 5] Affordable Housing Issues 6] Other business 7) Select date for next Committee of the Whole 8] Adjourn Dennis R. Kraft City Administrator OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL COMMITTEE OF THE WHOLE SHAKOPEE, MINNESOTA MAY 30, 1995 Mayor Laurent called the meeting to order at 7 : 02 P.M. with Councilmembers Brekke, Beard, Sweeney, and Lynch present. Also present: Dennis R. Kraft, City Administrator; Karen Marty, City Attorney; Judith S. Cox, City Clerk; Bruce Loney, Public Works Director/City Engineer, and Gregg Voxland, Finance Director. Beard/Lynch moved to approve the Minutes of April 11,- 1995. Motion carried unanimously. Mayor Laurent thanked the Minnesota River Valley Tobacco Control Coalition for the information that they have provided the City Council regarding limiting the accessibility of tobacco projects to minors. Julie Woodruff, Project Coordinator, addressed a few points of information found within the information packets provided to City Council: penalty provisions and banning the sale of cigarettes from vending machines. Barbara Harding, from Scott County Public Health Nurse and a representative from Health Promotion Coalition of Scott County, provided City Council with statistics about what the youth in Scott County are doing about the use of tobacco products. She said that she hopes that the Council will support the efforts to restrict tobacco use by kids. Pat Stege, Savage, member of the Tobacco Coalition, and works for the Minnesota Affiliate of the American Heart Association, urged the Council to adopt an ordinance similar to the City of Savage. Discussion ensued on enforcement of the current ordinance, fines, and restricting accessibility. The City Attorney was directed to draft an ordinance tightening up the tobacco regulations for Council consideration at a public hearing with all licensees to be notified of the public hearing. Julie Woodruff also asked Council to consider prohibiting minors from selling tobacco products. Copies of the proposed Suburban Rate Authority 1996 budget were provided to Councilmembers. Staff was directed to prepare a resolution for Council's adoption in support of the proposed budget. Mr. Kraft advised the Councilmembers of proposed legislative actions, which did not happen, which would have affected the City' s budget. Discussion ensued on the 1996 budget. Official Proceedings of the May 30, 1995 Shakopee City Council (COW) Page -2- Cncl.Sweeney stated that last year's budget resulted in a $10. 00 across the board increase in taxes because of changes in fiscal disparities and tax abatements. He proposed that the Council start out by not raising taxes on the basis of the 6% across the board market value increases that were made. Cncl.Beard acknowledged that new building permit values will allow increases, and that there may be an increase in revenue from Shakopee Public Utilities Commission. Discussion followed on service levels ie: operation of the civic center and staffing (code enforcement and filling positions budgeted in 1995) . There was a consensus to fill the code enforcement officer position and planning position as well as looking at restructuring within the Planning Department. Council also asked for information on the civic center: job descriptions and the organization of this new structure. Mr. Voxland appraised Councilmembers that the 1994 general fund surplus was approximately $650, 000. He said that 1994 was unusual year. Cncl.Brekke appraised Councilmembers of discussions at the Board of Review regarding possible improvements needed to the drainage pond between CR-79 and CR-17 and trails. Cncl.Sweeney suggested that staff consult with the City Attorney about whether or not there is any financial recourse available regarding the Upper Valley Drainage relating to design, construction, developers, builders, etc. Cncl. Sweeney stated that it is unknown what the debt service levy will be for 1996. Mr. Voxland stated that the debt service levy will be up $70, 000 over last year plus the 1995 bond issue will have an affect in 1996. Mr. Kraft stated that the Council discussion does give staff some direction in preparing the budget for 1996. Mayor Laurent adjourned the meeting at 9 : 02 P.M. LIJAL4' \/6 dith S. Cox ty Clerk Recording Secretary (2Z%1/4):143 TO: Dennis R. Kraft, City Administrator FROM: Gregg Voxiand, Finance Director SUBJ: Draft CIP DATE: June 15, 1995 Attached is the second rough draft of the 1996 - 2000 CIP. This is Council' s first look at the document and the format is similar to last year. Planning Commission has not received the document yet . It is planned to be on the 7/6/95 Planning Commission agenda. Council should discuss and give staff directions for preliminary changes on the draft at the C.O.W. meeting on June 19, 1995 . o�O II 0 1 O 01 O O 0 0Io . 0 0 0 0 + O O o � Nt- c`! Qco N ~) M N o t- M M M to 69 69 69 69 69 403 413 0001000 0 o O Ootn�0oo O 0 Q) Nco co UINCDO ti . M O Y-I 1 j M CO 00 N O O 696969696969 69 EA 0 0 0 0 0 0 0 0 O o o o 0 o o , O O N1 t. OOtoo 0)I co N '- N N U) O Lo N c O) v- � M M W a d 69 69 69 69 69 69 EA 4136 O V oovoicsi 000 O o 0 = W O in 0 c � N v U) C.) 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" -a A — N N -Co A — -a 0) C �-) N V A V W N W00 � O O) OW tr 00 Cn O V - C) V N O) N O O CJ 14 W W O O In 'co V O O O CD -► N In Co CO -• 0 W O N O W 0 A 0 0 O Cl 0 V 0 -4 O) A Cn CO Cl O -' co co O O O co O W O W d1 44 En En4164En61df di 44 64 64 d1 En EnEA4► CD O V A N -a -1 -+ A W N N CD -r Cr) J j j NO Cn W -4 N to c0 A V Cn W 0 0 COW W W Co V A W -4 N 0 0 W U1 0 0 03 O O CD N N 0 N V W W O In in In W O O O A A O A Cn A 0 CO U' (9 N 0 N —' (.4 0 0 0 N Cn 0 0) 0 -' CD W CD Cn A 0 V Cn CT o O O U) Cn O — O CJ) 44 44 En 61 d► d1 En En d) 44 64 En En d► d► En EA En En N W N —' 'r i —' j -a -J A --• . N N V IV A ' -' W W O N O 0 0 A -4 N 0 A 0 V CJ) V V 0 0 CID Cn V CJ) CD 0 CO V N A Co CJ) A — C) CO 0) O) 0 CJ) N 0 W V OD .. CO N A W O O O O O O O O O lo O O O) 0 0 + (0 N 0 U) A O A Co 0 0 0 0 0 -a 0 0 A 0 C.) C..) -► A Co U) 0 0) CO N 0 0 0 0 V CO 0 CJ) 0 V I v v COL) j MEMO TO: Dennis R. Kraft, City Administrator FROM: Bruce Loney, Public Works Director SUBJECT: Review of the Comprehensive Stormwater Management Plan for the City of Shakopee DATE: June 19, 1995 INTRODUCTION: Attached to this memo is the main body of the Shakopee Comprehensive Stormwater Management Plan as prepared by Orr-Schelen-Mayeron & Assoc. (OSM) for the City of Shakopee. This plan has been reviewed by the Planning Commission but has not been taken to the City Council level for their review and ultimate approval. The purpose of this item on the Committee of the Whole meeting agenda is to discuss the plan contents, status of the review by other agencies and implementation aspects of the plan once approved. BACKGROUND: Local Water Management Plans have been required by the recent 509 Management Laws. In the mid 1980's a law was passed requiring the seven County Metro area to have Water Management's Organizations (WMO) and Watershed Districts to be formed throughout the Metro area. WMO's have been formed and most have completed their Water Management Plan and once these plans were completed a local Water Management Plan for each local unit of government is required to be in compliance with the overall Water Management Plan. The City of Shakopee has area within four WMO's or Watershed Districts. These WMO's and Watershed Districts are as follows: 1. Lower Minnesota Watershed District 2. Prior Lake-Spring Lake Watershed District 3. Shakopee Basin WMO 4. Sand Creek WMO It is staff's intent to review the Stormwater Management Plan with City Council, particularly the financial considerations and implementation of the plan and stormwater improvements in Shakopee. In addition, staff will go over the comments received on a plan to date and review the status of stormwater management fees for new development with City Council. This Management Plan will eventually need to be approved by City Council on an official document for use for water management for land in the City of Shakopee. The purpose of this item is to discuss the plan, review the comments and provide staff direction on how to proceed with the eventual approval of this plan. BL/pmp LI MEMO TO: Dennis R. Kraft, City Administrator FROM: Bruce Loney, Public Works Director !.k' SUBJECT: Savage - Shakopee Proposed Joint Powers Agreement DATE: June 19, 1995 INTRODUCTION: Discussions have occurred on a Joint Powers Agreement on handling the stormwater and associated costs in the Eagle Creek Watershed located in western Savage and eastern Shakopee. City representatives from the two Cities as well as Lower Minnesota River Watershed District (LMRWD) engineer, Larry Samstead, have met to discuss the implementation of the recently approve AUAR document in Savage. The purpose of this memo is to update the Council as to the discussions and receive Council direction in this matter. BACKGROUND: Development has occurred in Savage, prompting the AUAR report and numerous meetings have been held in regard to the protection of Eagle Creek. From these meetings, the Department of Natural Resources (DNR) has determined that no stormwater discharge should be allowed into Eagle Creek. The Eagle Creek Watershed is approximately 893 acres with 361 acres within the City of Shakopee as shown on the attached map. The AUAR document requires no stormwater discharged to Eagle Creek, thus additional storm sewer costs will be associated in meeting this requirement. The LMRWD has tentatively agreed to participate in the cost of a project which diverts the stormwater since this area is in the District. The exact project scope and costs will be developed by Savage and a cost sharing agreement developed based on either areas or flows with participation from LMRWD. The rationale for participating in the cost of stormwater improvements in Eagle Creek Watershed is that Shakopee water previously flowed into Eagle Creek and can no longer do so. Staff will be presenting the details of the Joint Powers Agreement in a future meeting, however, if there is Council concern about the cost participation in Savage it would be appropriate to identify those concerns now. ALTERNATIVES: 1. Move to direct staff to continue with developing an agreement on the Eagle Creek Watershed with the City of Savage on flow rates and cost participation. 2. Table for more information. 3. Move to direct staff to discontinue discussions on the Eagle Creek Watershed Agreement at this time. RECOMMENDATION: Staff recommends Alternative No. 1 due to unique circumstances in regard to the Eagle Creek Watershed. ACTION REQUESTED: Move to direct staff to continue with developing an agreement on the Eagle Creek Watershed with the City of Savage on flow rates and cost participation. BL/pmp WA i I 1 1 r 1___._1 I L ;; .i,_ .._.1 1 I r I '•._ I : I V I 1 I l j • CA „ ' "' :::.,/,////' , , .. ., , , 4 e ,e 13th AVE ,. 6 " RCP �..�� 42 " RCP -�f l_70r.. I,. b )° o L,, P All W /73 �,`^ STORAGE R RED Alli Sl CHANNEL ==< 101 )1 ' ILIC;- Q x SI L" 2 �. z fh QST ST =.� ?4th 5_ :: .,,,,..,..1 it I Q a, • / iii Lc, 1 7 ? 30 " RCP ti o� I25thST �"„ �� 1 th ST . 3 . I URT - BOILING SPRINGS ' Q f , L y •:r'• y1 r1 V if,. . aTWO STAGE OUTLET `'. ,, 24-Hr DISCHARGE TO DISCHARGE TO STORM EVENT ZINRAN SYSTEM EAGLE CREEK 100 Yeo' 38 Cf5 16 ofS dr ir 8 /0411i1111110:;;;;°. 50 Yecr 27 ofS 16 ofS �, j 25 Year 15 CfS 15 ofS / 11 10 Yaw 4 oo 15 ofS a • •4 ,. •RINGS / i J 1 16 �f'c ,or, ' R j' SI-IAKOPE]E q 13 1990 POP . 11 739 � '� 0( W 0-JO ' Pr Qr 9,, * ..'.4 ---1 16 12 ec SAVAGE c ji) 1990 POP . 9 . 06 jiNCGU, M` C (16 I134th Sr IirCOI. !. UR s, ..„________________1(:: 2 / / `' DR 14 4, (1 11 LEGEND b v. SuBWATERSHED BOUNDARY i t�c� / 3 W / 1 2 SUBWATERSHED IDENTIFICATION ('&) ( r PONDS c / \\ \ \\\ \\\\ % \�\\\ CORPORATE BOUNDARY �/ .---.�. DIRECTION OF F L Ow / POND REQUIRED STORAGE PEAK DISCHARGE HWL / I.D. # (oo-ft) (Cf8) 1 1.4 EQUALIZES WITH 2 & 3 737.0 / 2 3.3 EQUALIZES WITH 1 & 3 737.0 / 3 01...54u .5 9 737.0 4 7.7 4 734.3 5 6.2 EQUALIZES WITH 4 734.3 ///,,, 6 43.8 4 740.0 7 22.7 10 731.9 f7////,, / 8 5.9 4 736.1 500 250 0 500 l000 11 5.2 4 955.5 1 12 37.7 15 737.7 SCALE IN FEET / 13 16.3 27 733.0 / 15 51 .0 26 727.5 19 12.6 35 723.5 20 2.9 56 721.0 21 2.0 54 716.1 MX Orr ..401161 u.,..... M...-.,..00..,n Co,.,a., w POW O.ry r CO w[.w COO CI a.w.wo.o x,lE h5 OOTLD Schelen r,ww.wo.or.�ua..ao..auw.r Mayeron & EAGLE CREEK .-.��•> p,.ity, oc ,l ay, Associates, Inc. •` TA.1 T°' FIGURE 4 Engineers • Architects • Planners •Surveyors PE1ER R.M'uE•BRe,C POW WATERSHED STUDY rKC.o mCoaanra..e.Te 300 Park Plaea Canter• 5776 VsyaaLa Boulevard AL TERNAT I vE 3 �O COPY 91 .76 DATE Mlaneapolle, K YN 56416-1228• 615-595-5775 .... L14 1294 .. P99 ,n, 8 Caws Memo To: Dennis Kraft, City Administrator / From: Nancy Emerson and Julie Baumann,Planning Interns Ti Date: June 12, 1995 Re: Affordable Housing Information Introduction: City Staff was directed by the City Council/Committee of the Whole, to further research affordable housing in Shakopee. Discussion: Attached as Exhibit A is the portion of the 1995 Draft Comprehensive Plan for the City of Shakopee. This attachment provides information regarding the age, value, affordability, median rent, and vacancy rate for housing in Shakopee. The City of Shakopee, through the Scott County Housing and Redevelopment Authority (HRA), is currently involved in several efforts to provide affordable housing to its residents. One of these is the use of Section 8 certificates. These certificates are distributed to tenants, allowing the tenant to rent a dwelling unit for 30% of their adjusted income, while the HRA picks up the remaining rental costs. Currently, there are 193 tenants in Scott County that receive Section 8 certificates. The City of Shakopee has 65 of these tenants. Shakopee has 184 units that are eligible for Section 8 subsidies. Shakopee's zoning and land use practices also impact the provision of affordable housing. Shakopee's housing was studied by Barbara Lukermann and Michael P. Kane of the Center for Urban and Regional Affairs at the University of Minnesota. They noted that there were few barriers to provision of affordable housing in Shakopee's Zoning Ordinance. The Metropolitan Council also monitors particular zoning practices to identify possible barriers to the provision of affordable housing. Shakopee's situation in respect to their standards is as follows: Minimum Lot Size: The Metropolitan Council's advisory standard for local land use regulations recommends a 7,500 sq. ft. minimum lot area for single family homes. Shakopee provides three different urban single family zoning classifications with different minimum lot standards to provide a variety of housing types. R-1A(0 percent of the land area)is a new zoning classification which is intended to be used sparingly to provide housing in areas where infrastructure or environmental constraints make it necessary or desirable to develop at lower densities. It is anticipated that the "move-up" market demand can be satisfied in these areas rather than by lowering the density in areas that could easily support higher densities. The minimum lot size in this district is 15,000 sq. ft. i R-1B (approx. 50 percent of single family land area) provides for a minimum lot size of 9,000 sq. ft. R-1C (approx. 50 percent of single family land area) provides for a minimum lot size of 6,000 sq. ft. This zoning classification is intended to provide housing areas where there is overcapacity in infrastructure that can support higher single family densities. It is also intended to keep the costs of entry level housing affordable. Minimum floor area: Shakopee's zoning ordinance has no minimum floor area requirements for residential units. Garage requirements: Shakopee does not require garages for single or multi-family residences. Residential downzonings: The 1995 Draft Comprehensive Plan does take a significant amount of vacant land designated for multi-family residential development east of Marschall Road and South of 4th Avenue and reclassify it for single family and medium density residential development. This was done to create a more viable neighborhood in a challenging development area (due to surrounding uses and bedrock). Sufficient new vacant land for multi-family has been proposed in a more appropriate location near commercial areas and transportation. Unsewered areas: Shakopee's zoning ordinance follows Metropolitan Council guidelines for unsewered areas. Affordable housing can be defined in a number of different ways. Attached is Exhibit B, which outlines some of the various definitions that are used by housing programs. The Metropolitan Council defines affordable housing as housing (rent and utilities) that is 30% or less of an area's median income. According to that definition, Shakopee has more affordable housing than most of the other suburbs in the area and the metropolitan area in general. Twenty three percent of Shakopee's housing units meet the Metropolitan Council's definition of affordable compared to 37 percent for Chaska, 12 percent for Prior Lake, 8 percent for Savage and Chanhassen and 6 percent for Eden Prairie (See Exhibit C). Staff researched the programs that other cities are using to provide affordable housing. The results show that very few programs are being administered at the city level and most communities rely on the County or Metro HRA(See Exhibit D). There are many options available for promoting affordable housing. Exhibit E displays a sample range of possible housing actions. Exhibit F outlines a sample list of technical assistance opportunities. These programs are provided by the Minnesota Housing Finance Agency. 2 Action Requested: Provide direction to staff on affordable housing including direction on criteria for measuring the degree of housing affordability, target demographic groups, and/or categories of housing actions for concentrating City involvement. 3 EXHIBIT A Volume I: Housing Housing • 61 i Shakopee Comprehensive Plan 3 Housing Tenure I 1 As with most other housing statistics, Shakopee generally follows Metro area trends. The I slightly larger percentage of home ownership is likely the result of the abundance of lower 1 priced "starter" homes in the community. i Chart J I 1 Housing Tenure ., 1990 cn 80% 0 so°i° •�_ 0 • = 40% 3 ° - s -- 1 a) 20% i 0% Owner Renter Shakopee ® Metro i 1 (Source: U.S. Census) Table 17 Housing Tenure 1980 1990 Owner 2,279 2,942 Renter 947 1,221 Total 3,226 4,163 (Source: U.S. Census) 62 Volume I: Housing Age of Owner-Occupied Units With the exception of Pre-1939 housing and the 1970's, Shakopee's owner-occupied housing unit development history has closely followed Metropolitan Area trends. Chart K Age of Housing Units Owner-Occupied c30% X 25% 20% O 15% i ri c10 /0 — O 5 /o Eig 0 Err. Ei BE 0 0 Pre-1939 1940-1949 1950-1959 1960-1969 1970-1979 1980-1990 Year of Construction Shakopee Metro Table 18 Age of Owner-Occupied Housing Units Year of Construction Shakopee Metro Pre-1939 10.1% 20.0% 1940-1949 7.0% 7.4% 1950-1959 16.4% 18.3% 1960-1969 14.9% 14.0% 1970-1979 28.4% 18.9% 1980-1990 23.2% 21.4% (Source: U.S. Census, Metropolitan Council) 63 Shakopee Comprehensive Plan Age of Renter-Occupied Units Shakopee's rental development history has also followed Metropolitan Area trends pretty closely with the exception that the development boom in the 1970's arrived a decade later in Shakopee. Chart L Age of HousingUnits cn Renter Occupied • X35% i X 35 0 -a-25% _ "■ v20% ....1 E-..........*'=_ .....: ° ._..... ..:,..:.: • ... ........ EU _ Pre-1939 1940-1949 1950-1959 1960-1969 1970-1979 1980-1990 Year of Construction MI ShakopeeM Metro Table 19 Age of Renter-Occupied Housing Units Year of Construction Shakopee Metro Pre-1939 13.4% 16.3% 1940-1949 5.1% 4.0% 1950-1959 7.0% 7.0% 1960-1969 14.8% 16.3% 1970-1979 25.1% 31.5% 1980-1990 34.6% 24.9% (Source: U.S. Census, Metropolitan Council) 64 Volume I: Housing Housing Values In comparison to the Metro Area as a whole, Shakopee is providing significantly more affordable, starter units in the $50-100,000 range (1990 value) as a proportion of its total units. All other price values are underrepresented in the City although Shakopee is very close to meeting the Metro area's proportion of very low value units. The largest deficit in the City is in the $200,000+ price range. Chart M Owner Occupied Units 1990 Value ($1 ,000's) 80% 60% U 40% O <$50 $50-$100 $1004150 $1504200 $200 + Shakopee ' Metro (Source: U.S. Census) 65 Shakopee Comprehensive Plan Table 20 Value of Owner- Occupied Units (1990) ($1 ,000's) Shakopee Metro < $50 2.1% 3.9% } $50-$100 75.7% 60.9% $100-$150 18.7% 23.1% $150-$200 2.8% 6.6% $200 + 0.7% 5.5% (Source: U.S. Census) 66 Volume I: Housing Recent Single Family Valuation Shakopee's tradition of providing affordable single family housing is continuing as evidenced by the 1993 building permit activity (the latest year for Metro Area statistics). The average single family home built in the Metro Area is over 33% more than the average new single family home constructed in Shakopee as shown below. Chart N Single Family Affordability 1993 $130,000 cz $120,000 ff $110,000 • (I) $100,000I Li 0-5 $90,000 i = swwrww�urs� $80,000 • El Shakopee ® Metro % Scott County Table 21 Average Single Family Valuation - 1993 Shakopee Metro Scott County Single Family Units 198 13,746 893 Average Valuation $91,171 $122,115 $117,391 (Source: Metropolitan Council) 67 Shakopee Comprehensive Plan Median Values-Owned Units When comparing median owned unit values, it appears that Shakopee has consistently maintained values that are more affordable than the Metro Area as a whole. In real terms, the median owned unit has become more affordable during the period 1980-90. Chart 0 Median Owned Unit Value (1990 $'s) $105,000 $100,000 $95,000 $90,000 $85,000 $80,000 1980 1990 Year ®Shakopee ® Metro Table 22 Median Value of Owner- Occupied Housing (1990 $'s) 1980 1990 Change Shakopee $99,852 $86,200 -13.7% Metro $102,542 $89,211 -13.0% (Source: U.S. Census) 68 Volume I: Housing Median Values-Rented Units Unlike owner-occupied units, rental units saw a real increase in median monthly rents between 1980-90 although the increase was much more dramatic for the Metro Area as a whole. In fact, Shakopee now has a slightly lower median monthly rent than the Metro Area. Chart P Median Monthly Rent (1990 $'s) $450 $425 _ $400 $375 $350 1980 1990 Year 1EShakopee ®Metro Table 23 Median Monthly Contract Rent (1990 $'s) 1980 1990 Change Shakopee $390 $445 14.1% Metro $377 $447 18.6% (Source: U.S. Census) 69 Shakopee Comprehensive Plan Affordability The 1980 Federal Housing affordability standard was defined as an individual household's housing cost not exceeding 25 percent of its household income. For the 1990 Federal Housing affordability standard, the standard was revised to be defined as housing cost not exceeding 30 percent of household income. As might be expected from the median values, Shakopee is general more affordable than the Metro Area as a whole. This is particularly true in rental units. Chart Q Unaffordable Units cn Owner Occupied 20% i Q 15% U p 10% 45 0 _ 0 0% 1979 1989 Year IMIShakopee M Metro (Source: U.S. Census) 70 Volume I: Housing Chart R Unaffordable Units Renter Occupied = 50% •0 40% - v 30% 20% ....:�: LL O 0 /o 1979 1989 Year ®Shakopee ® Metro (Source: U.S. Census) Table 24 Percent of Households In Unaffordable Housing 1979 1989 Change Shakopee Owner HH's 19.0% 14.3% -4.7% Metro Owner HH's 19.3% 14.9% -4.4% Shakopee Renter HH's 48.2% 29.4% -18.8% Metro Renter HH's 46.3% 40.1% -6.2% (Source: U.S. Census) 71 Shakopee Comprehensive Plan Vacancy Rates Shakopee's vacancy rates have generally remained lower than the Metro Area as a whole and have followed a similar rate of change between the years 1980-90. Chart S Vacancy Rates 6.0% 5.0% Er:... 4.0% _ inuirmigii 3.0% iiimilit 15=7= 2.0% 1 .0 % M _ m 1980 1990 Shakopee ®Metro (Source: U.S. Census) Table 25 Vacancy Rates Shakopee Metro 1980 3.0% 3.6% 1990 4.1% 5.1% 72 Volume I: Housing Table 26 Vacancy Rates 1980 1990 Households 3,226 4,163 Vacant Units 100 177 Total Housing Units 3,326 . 4,340 (Source: U.S. Census) Table 27 Vacancy Rates by Type 1990 1 Seasonal/Recreational 5.0% Homeowner 0.9% Rental 7.7% (Source: U.S. Census) 73 Shakopee Comprehensive Plan (This page intentionally left blank) 76 EXHIBIT B Sample Definitions of Affordable Housing Metro Stats: Metro family of four median income: $51,000 Metro one person household median income: $35,700 Estimated minimum cost of 3 bedroom house: $85,000 What is "affordable" Housing (Income Values for Family of Four)? Various Definitions Used By a Variety of Housing Programs: * Federal low-income tax credit program: 50-60% of median income ($25,500-30,600 income) * MN TIF districts for rental housing: 80% of median income ($40,800 income) * Fed. Program for Single-Family mortgage revenue bonds: 115% of median family income ($58,650 income) * Local housing and redevelopment authorities: 130%+ for rental housing limits ($66,300 income) * Rents are considered affordable if a person or family pays no more than 30% of their gross income for rents including utilities (senior housing level is generally higher due to a lower income/higher asset ratio). In general, housing available for people at or below 60% of median income (Single : $21,420) (Family of Four: $30,600) is considered "low income': Housing available for people between 80% to 120% of median income (Single: $28,560-$42,840) (Family of Four: $40,800-$61,000) is considered "moderate income': (Source: Ehlers and Associates, Inc., Minneapolis, April 1995) The Shakopee Experience In 1994, permits were issued for 140 sewered single-family homes. The total valuation was $12,809,125 for an average value of $91,494. (Average value excludes the price of the lot). (Source: City of Shakopee) c:\paul\housing\ehlers2.doc ::.';';'..'f'."?..."..'::::::.:.:::".!::::::'.'..::' cci: is y:?;{ik'crl1 '\�'ci> ^ ?�2^:2ztSS1>: -:.-•"7"....-''''::_::::::.!.::::::.'."'•.".•::: :::•.,:'.. ... :.< ; +ac+ , :.k•'.: z a:'>:r cg;.:.•;? :`:<i':•••••. <{?}::}z>::::` M1 { kr"a &:;,: 44 v) .- (1) � � O � Z O � � O • • ^ "C 0 +4 z .. 0 O a) 0 - •- 0 u a) e- v) = �y � N (0 -) � ' 00 � Z � 0 CD 00 00 00 N 00 00 C 00 00 Z 00 elg a •°. ° 0 .2 .o .o .o .2 .o .- .- .° a) a) a) z a)CE) a) a) a) a) h w v) cn a w v1 VD w VD a VD a a cn 01 :V — m > sp W cco > > > Q > > > > Ti W) N J J J J J J J J C C C LO C C C CC < bA 0 U U 2 0 0 UU U 0 0 0 L tera) a) a) a) 41*41* . a) O c a) as ri) a w Z a �' a) 3 0 cl .- 6 J U W ° Z Ai as 8 •o a '1 3 6 I .5 -8 w~ ►g3 U) y „ x til U) k. S :: N o -ox •U) > $ yoc), w o a E' .o 'L7 y t6 , 4 0)) ai ' a) a V O x . bb 0.)X › y . E-+CA S'' .b Ell .� 0 ami -o .2 •C W xi w ^ cl o :� en S e3 4 en L a Qs. o a? ^_ o o cn "0 C 5 3 F7 C� .— 0 U az ih I_I a ab ° ❑ o , p. o cc. :3 > ° o Vg o Ct b 1. a rn' on w vbA v -5 -9 � .a � c � = LcCc �' 9 Era � .. c.,.., ai , 9 . . . uo o o 6 CI ctj 03 .0 g a a ' y �a a) y o 0 o c4' • .y 5 ami °�-)5. U C' E A A O AC4O a bP4rigF.. x e tn d ate' co co v) ci cd .6 o ce ,.c ti cd .6 ci -ti ai 44 eh ca .6 ci cal .o d O o E a') a) " v > os" 0 cat e a) -os cu -8 a4i g aa)) o 5, a o 0O W 0 i t' H c4 0 CU U U -. N M 4 vi 1/46 EXHIBIT F The Minnesota Housing Finance Agency provides financial and related technical assistance opportunities for affordable housing. Listed below is a sampling of the programs that they offer. • Nonprofit Capacity Building Grant Program is intended to assist nonprofit organizations, local units of government and Indian tribal organizations to expand their capacity to provide affordable housing and housing related services. Grants can be used for a variety of activities including analysis of housing needs and staff training. The maximum grant amount will be $10,000. Warren Kramer 612-297-5142. • Nonprofit Capacity Building Revolving Loan Program assists nonprofit organizations and local units of government in the development of housing projects for low and moderate income persons. Loan funds are to be used for predevelopment costs such as architect fees, attorney fees, options on land and buildings, and other costs associated with the processing or preparations of a housing project proposal. In addition to the MHFA this program is delivered by the Duluth Housing Trust Fund, Greater Minneapolis Metropolitan Housing Corporation, Local Initiative Support Group (St. Paul) and the Minnesota Housing Partnership. Call for the name and phone number of the organization serving your area. Warren Kramer 612-297- 5142. • Low and Moderate Income Rental Program makes mortgage and rehabilitation funds available for the acquisition and rehabilitation or new construction/conversion of rental apartment buildings housing low- and moderate-income Minnesotans. Funds are available on an open pipeline basis. Denise Holter 612-297-3123. • Low Income Housing Tax Credit Program provides a federal income tax credit to investors who invest in the construction or substantial rehabilitation of rental housing. Housing must meet income and rent restriction for at least 15 years. Tax credits are awarded in three allocation rounds each year. Call for the application dates. Glory Hill 612-296-9827. • Minnesota City Participation Program provides a set-aside of mortgage revenue bond fund for a period of six to nine months to assist communities in meeting identified local homeownership goals. Funding is available one a year around April 1. Call for application materials. Gene Aho 612-297-3129. • Community Rehabilitation Fund provides grants to cities for single or multi-family construction, acquisition, rehabilitation, demolition, permanent financing and refinancing. Applications are solicited once a year. Reed Erickson 612-296-8843. • Community Activity Set-Aside Program provides lenders, local government and/or nonprofit housing providers with set-asides of MHFA mortgage revenue bond funds to meet the homeownership objectives/needs of their communities. Dan Tempel 612- 297-5146. • Minnesota Mortgage Program provides below market interest rate first mortgage loans for low and moderate income first time homebuyers through local lenders. Call 296-7613 or 1-800-657-3802 for a list of lenders in your area. • Purchase Plus Program is a mortgage program that enables borrowers to either purchase and rehabilitate, or refinance and rehabilitate existing housing with a single mortgage. This program is not limited to first time home buyers. Bruce Strong 612- 297-3131. • The Great Minnesota Fix-up Fund provides property improvement loans to assist homeowners increase the livability and energy efficiency of existing housing. The program is administered by local lenders. Call for a list of participating lenders. Kathy Aanerud 612-297-3121. • Accessibility Loan Program provides deferred payment loans to low-income homeowners for improvements directly related to the basic housing needs of a physically disabled person. Eligible applicants include those households in which one or more household member has a long-term physical disability that substantially affects functioning in the home. The program is operated in every county by a local agency. Call Susan Ude at 612-296-8844 for the name and number of the administrator in your area. MEMO TO: Dennis R. Kraft, City Administrator FROM: V. Paul Bilotta, Acting Planning Dir./Econ. Development Coordinator DATE: June 14, 1995 RE: Metro. Livable Communities Act INTRODUCTION: The Metropolitan Livable Communities Act was approved in the 1995 Legislative Session. The Policy Narrative from the Assoc. of Metropolitan Municipalities (AMM) is attached. DISCUSSION: The Metro. Livable Communities Act is designed to provide a large amount of flexibility for local communities to address affordable housing needs in cooperation with the Metropolitan Council. The program is voluntary and there are financial incentives to encourage cities to participate (either singly or with a County, Metro or even another City HRA). The exact impact of the Livable Communities Act on Shakopee is difficult to determine at the present time because it has scattered financing sources and three separate accounts. Staff has not yet estimated the level of annual funding that could be available for particular types of projects. The Metropolitan Council has been working on creating housing goals with an original target date of December, 1994. These goals have not been completed yet and in discussion with Metropolitan Council staff, it is uncertain whether the efforts completed so far will be sufficient to meet the requirements of this act. Metropolitan Council staff has a preliminary target date of Nov. - Dec. 1995 for completion of the housing goals, however, it was emphasized that the 1995 legislative session has mandated an extremely heavy workload onto Metropolitan Council staff so delays are possible or even likely. ACTION REQUESTED: No action is necessary. This memo is for informational purposes only. j:\plan\cow\1995\cow0619\I i vable.doc (I) METROPOLITAN LIVABLE COMMUNITIES ACT (S.F. 1019,Laws 1995, Chapter 255) This act establishes the Metropolitan Livable Communities Fund under the jurisdiction of the Metropolitan Council. Under the act,three separate accounts or programs are established with each account having specific purposes and specific revenue sources. (Please see graphic on page 2) City participation is voluntary. However,if a city does not participate in the Local Housing Incentives Account,it is not eligible for funds from the three accounts or the pollution clean-up fund,which is administered by the Department of Trade and Economic Development(DTED). The Met Council will establish criteria and guidelines for the Livable Communities Fund and the grants and loans process, as well as an annual plan for distribution of the funds and an annual usage report. Tax Base Revitalization Fund Grants for polluted land clean-up will be issued in the metro area. The Met Council will set priorities for the use of the funds if there are a great number of requests. Grants will be awarded for qualified sites that provide the highest return in public benefits. No more than half of the funds can go to a single city and no more than 75 percent to projects in first-class cities. Cities may use the grants for the local match requirements for projects funded under the DTED contamination clean-up grant program. The local match payment is reduced to 12 percent (was 18 percent) of the clean-up costs. Livable Communities Demonstration Account The Met Council may levy a property tax equal to 50 percent of the Metropolitan Mosquito Control District(MMCD)levy for taxes payable in 1995, indexed for market growth. The account will receive an annual HACA payment equal to 50 percent of the current MMCD HACA payment. Grants and loans will be provided to participating cities for projects that meet specific guidelines. The projects should: • Interrelate development or redevelopment and transit; • Interrelate affordable housing and employment opportunities; • Interrelate development or redevelopment that mixes incomes of residents; • Intensify land use that leads to more compact development; • Encourage public infrastructure investments which connect urban neighborhoods and suburban communities, as well as provide project area residents with opportunities for private sector employment. 1995 Policy Narrative 1 Metropolitan Livable Communities Fund Tax Base Livable Communities Local Housing Revitalization Account Demonstration Account Incentive Account Revenue Source Revenue Source Revenue Source • Right of Way • HACA payment equal • Local tax levy based Acquisition Fund to 50% of MMCD on portion of home payment stead base • Mega Mall fiscal disparities surcharge • Mosquito Control • Council bond District levy (50%) proceeds and levy • Approx. $5-7 million per year • Approx. $4.5 million • $1.5 million per year per year for grants! in matching grants Purpose: loans Purpose: • Polluted land clean- Purpose: up for C-1 • Expand affordable redevlopment • Develop incentives to housing in cities implement Council's Eligible applicants: policies and act • Cities negotiate with Council for housing • Counties Eligible applicants: goals • Cities participating in incentive account • Participating cities 2 1995 Policy Narrative Local Housing Incentives Account A city has until November 15 of each year to decide to participate or not. If a city does elect to participate,it is eligible to receive grants and loans for pollution clean-up and demonstration projects,as well as matching funds from the local housing incentives account. The Met Council may give consideration to a city's participation in the local housing incentives program when making discretionary funding decisions. The following is an outline of the process once a city opts to participate: (1)January 15, 1996. City negotiates affordable and life cycle housing goals (2)July 1, 1996. City develops an action plan. (3)July 1 of each year. County calculates municipality market value base amount and funds available for the local housing incentives account. (4)Met Council notifies city of its affordable and life-cycle housing opportunities amount. The amount is the lesser of the following: • Four percent of the residential homestead value x local tax rate; • Residential homestead value in excess of the market value base amount(2 times average)x local tax rate. (5) City uses local funds and available Met Council funds to meet its goals. (6)If a city has not met its goal and not spent 85 percent of its affordable and life cycle housing opportunities amount in the previous year by 1998,it may: • Distribute the funds to the Met Council to put in the local initiatives account; • Distribute the funds to the city or county HRA to create housing opportunities; • City may join together with adjacent cities to provide housing opportunities. Cities must match the Met Council funds dollar-by-dollar. The Met Council must give priority to cities that: • Receive less from fiscal disparities than it contributes by more than$200 per household; • Demonstrate that the project will link jobs to housing; • Provide matching funds from sources other than the affordable and life-cycle opportunities amount. If a city elects not to participate for some years,but then elects to participate, the municipality must establish what it agrees to spend on affordable and life-cycle housing, or agree to distribute to the local housing incentives account. 1995 Policy Narrative 3 This amount is equivalent to what it would have spent on affordable and life-cycle housing had goals been established under this section for the period in which it was not participating. The Met Council will determine which investments count toward the required cumulative amount by comparing the municipality to participating municipalities similar in terms of stage of development and demographics. Met Council Reports The Met Council must file an annual report with the Legislature outlining the participating and non-participating cities, as well as an annual comprehensive report card on affordable and life-cycle housing in the metro area by city. In addition, a report must be filed with the Legislature by Jan. 15,2003 which includes the funds accounts and how they were used. Another report must be filed by Jan 15, 19%describing the probable development patterns in the metro area by the year 2020. Miscellaneous Provisions The starting time for the city of Bloomington to begin repaying the fiscal disparities pool for interest on highway bonds sold in conjunction with the Mall of America is delayed. Also,the 1:1 housing replacement of low income housing for first-class cities is repealed. An urban homesteading program is established to encourage higher income persons to buy homes in areas that are in transition toward blight and poverty. Income tax benefits will also be provided to eligible persons. II) OMNIBUS TAX BILL (H •. 1864,Laws 1995, Chapter 264) Local G• ernment Aid/Homestead Credit Aid (Article 8, Secti, 5) Homestead . • Agricultural Credit Aid(HACA)was reduced by$ • ' 'on in 1996 for cities,counties, s and special districts. The city share of : eduction is slightly less than$8 million. The cut is for 1996 only an. e HACA will be re .red in 1997 unless the Legislature acts next year to make the cut •- -• • ent. Th- - •uction is limited within individual cities to .45% of the 1995 net tax capacity, . will benefit a few very property-poor cities. Aid Distribution and Servic: •elivery dy (Article 8, Section 22) The Legislative Commissio Planning and Fisc. '•licy is directed to establish a subcommittee by July 1 •95 to study: (1) Alternative - ethods of distributing general-purpose aids to unit : local government. (2) A!: oaches to maximizing the efficiency and effectiveness of local govern • . d se, ce delivery. 4 1995 Policy Narrative