HomeMy Public PortalAbout05/28/2014 Special City Council MinutesMEDINA SPECIAL CITY COUNCIL TOWN HALL MEETING MINUTES OF
MAY 28. 2014
The City Council of Medina, Minnesota met in special session on May 28, 2014 at 5:37
p.m. in the City Hall Chambers and was called to order by Mayor Weir. City
Administrator Johnson presided.
I. ROLL CALL
Members present: Anderson, Pederson, Martin, and Weir.
Also present: City Administrator Scott Johnson, City Planner Dusty Finke, Chief of
Police Ed Belland, and Recording Secretary Amanda Staple.
I1. TOWN HALL ON PROPOSED AFFORDABLE HOUSING NEIGHBORHOOD
(5:37 p.m.)
Johnson thanked all the residents in attendance tonight and explained that this time is
meant to receive input from residents regarding the proposed Dominium project. He
advised that these are not the formal hearings for the project that will come before the
City Council on June 3, 2014. He noted that written minutes or a recording of the
meeting could be provided to residents upon request and advised that although staff and
the Dominium staff will attempt to answer any questions, more time may be needed to
gather the necessary answers.
Nick Anderson, Dominium, stated that he is excited to be present tonight in order to
present information and provide clarity in regard to what affordable housing is and to
also answer any questions. He explained that Dominium was founded in 1972 with the
sole focus of affordable housing, noting that Dominium is headquartered in Plymouth
and is the largest affordable housing company in Minnesota and the fifth largest in the
nation. He clarified that this project is not section eight and explained that this project
would qualify for the Affordable Housing Tax Credit Program. He explained that there
will be a rent limit, income limit for tenants, and Dominium will maintain ownership of the
property for a minimum of 15 years. He stated that this project would be high quality
townhomes with amenities. He stated that in order to qualify for the tax credit program,
four of the 32 units would be set aside for households lacking permanent housing. He
noted that those units would most likely be occupied by single mothers with children. He
advised that Dominium has a very thorough screening process and does not allow those
with criminal records or poor rental history, and also reviews the credit history and
income of potential residents. He stated that there are approximately 260 households
within Medina that would qualify under the income limits for this development, noting that
78 percent of the residents occupying a similar Dominium project in Albertville previously
lived within ten miles of the property. He reviewed the typical income level, household
composition of the tenants, noting that rent would range between $850 and $1,200. He
also displayed pictures from the development in Albertville that Dominium developed
and owns.
Ladonna Hoy, Interfaith Outreach and Community Partners (IOCP), referenced the
challenge of affordable housing, not just in Medina and Hamel but within the eight
communities that IOCP services. She reviewed the areas that families IOCP assists
struggle with and noted that once housing is stabilized, those families are able to get
back on track. She noted that over 400 families were assisted by IOCP in the past year
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and that opportunity allowed those families to move away from survival mode into a
thriving mode. She stated that this project will provide a winning combination of
affordable housing and support services. She advised that IOCP also works with
Common Bond in affordable housing projects. She stated that there is a handout
available, which provides information on the positive benefits and outcomes that have
resulted from these collaborative affordable housing projects. She advised that IOCP
continues to be impressed by Dominium, not only in the use of high quality materials and
development but also in property management and support services. She explained the
approach that would be taken to work with the families that would provide intensive
support. She stated that expectations are outlined and participants are held highly to
those expectations. She advised that there has been great success with those who
participate in the program and explained that this changes futures and provides
opportunities for children, families and parents.
Belland explained that the department received resident concern with the police calls
that could be generated from this proposed development. He advised that he received
information on the police calls that were made to neighboring cities with similar
development projects. He explained that all neighborhoods generate police calls and
advised that he could provide specific information upon request. He advised that the
number of calls include all service calls. He provided the number of police calls for like
units, including Gramercy and the Hamel Road townhomes, to the number of police calls
for Dominium developments in neighboring communities. He explained that it is difficult
to provide an equal comparison because calls range from medical and parking to
criminal and nuisance. He estimated that if the development were to move forward there
would be approximately 30 to 50 calls for service per year but explained that it is difficult
to determine the type of calls.
Linda Lake, Dominium resident at 10820 South Shore Drive #11 in Plymouth, asked for
additional information regarding the type of police calls.
Belland provided additional information regarding the type of police calls received from
both Common Bond and Dominium affordable housing developments in this area.
Johnson stated that the City has also received concern regarding the impact on property
values, noting that research does not commonly find negative impacts on property
values. He advised that the full information can be found on the City website and asked
residents to provide other relevant studies to planning staff on this subject.
Sheryl Golin, 251 Cherry Hill Trail, stated that this project is unique because it is right
next to retail and bar establishments.
Belland advised that the Cherry Hill development is the closest location wise.
Johnson noted that this development would be 32 units and research shows that
developments of 50 units or less have very little, or no negative impact. He provided
information on the utility fees that the Council could choose to waive and would pay the
utility funds back with Tax Increment Financing (TIF) funds. He advised that Ehlers and
Associates would verify if the applicant would qualify for those credits under the "but for»
test.
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Chris Hilberg, 4559 Trillium Drive North, clarified that the resolution passed did not link
the fee waiver to the TIF.
Johnson identified the process allowing residents to make comments tonight.
Julie Faxvog, 1220 Oakview Road, stated that she has lived in Medina for 26 years and
supports this project. She hoped that the City Council would also support the project.
She stated that Dominium is a reputable company and would fit well into the challenging
site. She stated that this is the chance for Medina to support families in the city that
could benefit from affordable housing.
Laura Good, 2765 Capriole Drive, stated that she has lived in Medina for ten years and
is on the Board of IOCP. She stated that she supports the project because there is a
need for affordable housing not only in Medina but in this area. She stated that
Dominium is a great developer and property manager and believed that the location
would be a good fit for the property. She noted that the location would not be adjacent
to any existing development and would only be composed of 32 units, which is less than
one percent of the total Medina households. She stated that this project is in line with
the Comprehensive Plan and with only 32 units the project will not stress the City water
and sewer services. She stated that while she agrees with the angst regarding the rapid
development, she did not believe that this should be the breaking point as this is 32 units
on land that does not have a higher use and focus should perhaps be on the 300 unit
developments.
Christa Sullivan, 1245 Oakview Road, spoke in representation of Joann Ferris, 1225
Oakview Road, and read a letter that expressed concern with the proposed
development. She stated that they had chosen to move to Medina to escape the rapid
development in neighboring communities. She commented on the developments
currently underway, such as Lennar. She stated that Medina is unique and residents
should preserve the rural past rather than focus on additional development. She stated
that they are not interested in high density as there could be expense for infrastructure
and staff. She believed that high density housing should be found in other communities.
Frank Mignone, 3316 Red Fox Drive, stated that he is not against change but believed
that change should be fair for everyone. He hoped that the full park dedication and
building permit fees would be paid, just as anyone else would have to pay. He also
believed that any variance requests should be justified. He stated that there is no time
restriction on this and believed that the community should complete the full due
diligence. He referenced the well house found on the property and confirmed that is City
owned property and hoped that the City would not be giving that away. He stated that
this property would totally segregate the development from every other development in
the City and referenced eight acres near his home that he believed would be a better fit
for the development.
Linda Lake, Dominium resident at 10820 South Shore Drive #11 in Plymouth, stated that
she loves Medina and has driven through the community every day on her way to work.
She did not believe that due diligence was being done. She stated that her grass is
currently knee high and the development rarely receives snowplow services. She
believed that Dominium encouraged criminal activity because they do not report activity.
She explained that when she reported fire activity near the wetland the management did
not respond while the fire department did consider that to be a violation.
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John Shishilla, 4335 Shorewood Trail, questioned why the City must consider this
request and what would happen if the City rejects this development. He questioned the
influence that the Metropolitan (Met) Council has on the City. He stated that this project
was nowhere on his radar 60 days ago but noted that it seems a lot of effort has been
put into this project already. He questioned how the process has gotten this far and
whether the City has to go along with this.
Johnson advised that this will be a policy decision that will come before the Council on
June 3rd and possibly June 17th or future meetings. He stated that Dominium has
brought this request forward and the Council will need to make a policy decision on
whether this will move forward.
Freya Thamman, Metropolitan Council, stated that her role is to mainly work with
communities and their Comprehensive Plan. She stated that this development is
consistent with the Medina Comprehensive Plan and the policies of the Met Council.
She explained that one of the duties of the Met Council under State law is to determine
the need for affordable housing and delegate where that housing should be found in the
area. She explained the process that is used to allocate affordable housing by the Met
Council under State law. She advised that the Met Council is supportive of providing
housing choices and diversity, and of this project.
Lorie Cousineau, 4587 Medina Lake Drive, stated that she has lived in Medina for 15
years and shared the concerns expressed by the previous resident in regard to the
impact the Met Council would have should the City deny this type of development. She
questioned the plan of the Met Council to address traffic and other issues that this rapid
development is having on this area.
Katie Rodriquez, Metropolitan Council District One Representative, stated that she has
voiced the concern over traffic and roads at the Met Council but noted that although the
Met Council is advocating for additional transportation funding the shortfall is in funding.
Ms. Cousineau stated that perhaps the Met Council could accommodate the City in
terms of growth until the issue of transportation is solved.
Ms. Rodriguez stated that the Met Council has worked with the City on this issue but
noted that the Met Council does not control the market. She advised that other
communities want to see the growth, noting that Medina has a very different stance in
wanting to delay development. She stated that the population forecast is not what the
Met Council wants to see but is their best estimate of what will occur. She stated that
personally she lives in Maple Grove, near two affordable housing developments, and
she believes those to be assets in the community and not a burden.
Ms. Cousineau confirmed that the Met Council is not forcing the City to enact affordable
housing in 2014 and questioned the ramifications should the City not meet the goal
identified for 2030.
Ms. Thamman explained that the goal of 506 units is a goal and not a mandate. She
explained that if the goal is not met that means that the need for those units is not being
met.
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Ms. Rodriquez explained that the need for those units would still exist, even if they are
not provided within the communities.
Johnson stated that the City Council and staff have provided comments regarding the
2040 plan and the issues with transportation.
Bill Ciora, 915 Sunset Court, stated that he has been a Medina resident since 1997. He
asked for additional information regarding the economics of this project. He discussed
the proposed cost for the development and amenities with onsite staff in comparison to
the proposed rent. He did not believe that there would be any investor that would spend
$6,000,000 to generate $300,000 per year in revenue without including expenses.
Jeff Huggett, Dominium, explained that this housing would be built through the
Affordable Housing Tax Credit Program. He explained that there would be tax credits
received in return for the 15 year agreement Dominium would have on the property. He
confirmed that someone at Dominium would address the concerns expressed by the
Dominium resident.
Ann Nelson, 235 Meadowview Lane, stated that she did not believe that 506 units of
affordable housing would be needed for Medina residents. She stated that she donates
time and funds to IOCP and stated that her comments are in regard to effectiveness.
She referenced the comments made by IOCP in regard to moving from survive to thrive
and noted that is not the only option, the residents could also stay in the same condition
or their situation could become worse. She stated that there was a large campaign to
redistribute people from poverty to other areas and noted that changing addresses does
not always change the families situation and sometimes brings crime with them. She
referenced affordable housing developments in neighboring communities and reviewed
the number and type of police activity. She also discussed the impacts of low income
housing on school districts and services. She questioned where kids would play in this
development, noting that the proposed tot lot would not support 70 to 80 kids. She
stated that in her opinion the strategy of the Met Council to change addresses is not
successful and is outdated. She stated there is a program in Minneapolis called The
Jeremiah Program that is nationally recognized for helping single moms thrive. They
would never locate single moms in a rural area where they are far away from a
community college or vocation training program. She stated she believes in affordable
housing but not at this location.
Jerry Hertaus, House Representative for this District, questioned if this site conforms to
the generally guided principles for highest and best use. He stated that Dominium
provide a presentation noting that they would manage the property for 15 years and
questioned what would occur after that 15 years, whether Dominium would sell the
property and if the property would then remain as affordable housing. He referenced the
fees that could be waived and questioned if the waived fees could be recaptured upon
sale, should Dominium sell the property after 15 years.
Johnson noted that the $300,000 of waived fees in discussion applies to sewer and
water connection fees.
Hertaus noted that affordable housing is an issue, not solely within Medina but
everywhere. He believed that this is a pursuit to create uniformity in the lifestyles of the
people. He stated that he sees people lining up to receive assistance and noted that
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while some deserve the assistance, there are some that perhaps do not. He questioned
if the redistribution is serving the purpose, noting that the waived fees would be paid for
by the residents. He noted that this is an expensive area to attempt to create affordable
housing.
John Anderson, 2785 County Road 24 and City Councilmember, referenced an email
that Weir received from Freya Thamman on May 8th. He read the email aloud which
addressed the ramifications that the Met Council could bring on communities that do not
meet the requirements of the Met Council. The Comprehensive Plan of Medina was
referenced and it was explained that the cities must attempt to reach the goals set for
affordable housing. It stated that the affordable housing need number is a goal and not
a mandatory requirement that would have penalties. The primary impact of not meeting
that goal would be that the community would not provide a diverse mix of housing for its
residents.
Chris Hilberg, 4559 Trillium Drive North, stated that he has spoken with a lot of people
about this project in the past few weeks and was stricken by the number of comments
that if the residents were not in support of this that would mean that they are not
compassionate. He stated that he takes that comment to heart as he donates his time
and believes that Medina residents give their time, money and resources to assist
others. He did not believe that a commercial district would be the best place to put a
residential development and also questioned if the plan that will come before the Council
is financially responsible. He stated that when TIF works, it works great, but questioned
the impact that would occur if the TIF does not work. He stated that if the forecast is not
met, the residents would have to make up for the downfall. He believed that a pay as
you go method would be a better fit for that type of development.
Johnson stated that Ehlers and Associates will be conducting the analysis on the "but
for' test to determine if this project would qualify for the fees to be waived.
Mr. Hilberg stated that members of the Council have said that while they do not like
affordable housing they must allow affordable housing because of the requirements of
the Met Council. He explained that there are funds that could be applied for through the
Met Council for this type of project and did not believe that had been done. He also
discussed the possible conveyance for the City owned well property and questioned if
there is a purchase agreement in place and what the price would be for that purchase.
Johnson noted that the City Council will discuss the possible conveyance or sale of the
City owned property at their June 3`d meeting.
Mr. Hilberg stated that the property has value and believed that fair market value should
be paid for that property. He stated that Weir stated that she did not see reasons to
deny this request and that Councilmembers that do not approve the request would have
to submit findings of fact. He noted that he did prepare findings of fact and provided that
to staff and Weir. He noted that the parcel is zoned mixed -use business, which requires
two of the allowed uses, while the proposal would only include residential and would
therefore not comply with the Comprehensive Plan. He noted that the proposal also
exceeds the recommended density for the zoning district and would therefore take away
the land rights of other parcels zoned mixed use business.
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Weir explained that this would be a Planned Unit Development (PUD), which would
override some of those aspects.
Mr. Hilberg believed that if reasons other than shorter driveways and house spacing
were driving the PUD request that another review of the Planning Commission would be
necessary. He also noted that the City owned property was not noticed prior to the
Planning Commission review. He reviewed State statute regarding the conveyance or
sale of City owned property and the requirements that would be necessary regarding
notification of residents. He stated that there are a lot of technical issues that have not
been thoroughly vetted. He believed that the City is doing their best to review the issues
in the necessary application timelines. He believed that the Council are excellent
members of the community that are doing their best to review the project.
Peg Rasmussen, owner of the Countryside Cafe for the past 40 years, stated that she
has always loved that Medina is a large community that gets along with each other. She
stated that she always makes the assumption that everyone wants the best for their
family, including schools. She noted that Medina is a nice, crime free community with
excellent schools. She agreed that there are a lot of residents in Medina that not only
donate funds to organizations like IOCP, but also volunteer their time and effort. She
believed that Medina could and wants to have affordable housing and that it could be
great here. She stated that there are people living in Medina that could benefit from this
affordable housing and stated that if this is not the project, than perhaps the minds in this
room could get together and do it right. She stated that she would be proud to be a part
of an effort that could create a meaningful effort to bring affordable housing to Medina,
where her employees and employees of other local businesses could live.
Phillip Milne, 1880 Buckskin Drive, stated that he has served on the Board of IOCP with
Peg Rasmussen and is on another Board that was created through IOCP. He stated
that he does support affordable housing and believed that 32 units of safe housing for
employees of local businesses would be a drop in the bucket in terms of density. He
stated that he has witnessed the move of families from survive to thrive.
Seth Hoyt, 1382 Tamarack Drive, stated that he and his wife have heard many issues
regarding development throughout their time in Medina and they have observed that
over a period of time there is an absolute commitment of the Council, and past Councils,
to do their best for the City. He stated that he has never felt that he has been ripped off
during his time in Medina. He stated that he is a close friend of Weir and has not met
anyone that cares as much about Medina as she does. He commended Weir for her
contributions into this process, noting that this development has been the most
contentious issue that he has seen in his 18 years in Medina.
Kim Murrin, 290 Cherry Hill Trail, confirmed that the police call information included the
Dominium development in Rogers and questioned if that range of calls was similar to
other neighborhoods in the city. She confirmed that Belland did not believe that the
police calls would be disproportionately generated from that development. She
referenced the TIF District property and believed that the purpose of the TIF district is to
enhance future growth for the area.
Johnson stated that the total project cost for the Dominium project would be roughly
$7,000,000 and noted that the sewer and water connection waiver that will come before
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the Council in the future would be in the amount of $300,000. He explained that this
property would change from a bare piece of property to a $7,000,000 project.
Ms. Murrin understood how Target enhanced the area and questioned how the housing
development would enhance the area.
Johnson explained that the property would pay property taxes from the property valued
at $7,000,000 once the TIF district expires. He confirmed that the County and School
District taxes would not be paid as long as the development is within the TIF district.
Ms. Murrin questioned if the opportunity to build within the TIF district were not available,
would Dominium build in another area of Medina, or whether the incentive of the TIF
district is driving the project.
Huggett stated that he would be unable to answer that because this project is within the
TIF district.
Ms. Murrin questioned what would occur should the TIF district July deadline expire and
the sewer and water connection fees were not waived.
Huggett explained that the sewer and water connection fees and TIF district inclusion
were not available Dominium would not proceed with the project.
Ms. Murrin stated that there is a lot of opposition and questioned if Dominium has
experienced this in other communities.
Huggett stated that there has been some opposition and some support, which is
common of other communities as well.
Ms. Murrin stated that there is a lot going on for both sides, in favor and opposition, and
questioned the basis for the Council to vote; whether their vote would be based on the
input of the residents.
Johnson stated that the point of this meeting is for the public to provide input and for the
Council to hear that input. He advised that the Council will review the issue and make
their comments at the meeting on June 3`d. He confirmed that resident input does
matter.
Councilmember Martin stated that she appreciates the input of the residents and is here
to listen. She stated that the Council would not have requested these public meetings if
they did not care what the residents say. She stated that the Council works hard and
spends a lot of time reviewing and discussing projects of this nature. She stated that
there have been a lot of negative comments and the Council is doing their best to
thoroughly review the issue and receive resident input. She stated that she also has her
issues with the requirements that the City must meet density requirements without
transportation support but noted that this development of 32 units is not the breaking
point and stated that perhaps the residents should provide similar input in the review of
the next large development that is proposed that will affect traffic.
Ms. Murrin stated that perhaps the City should take a step back to thoroughly evaluate
the project and ensure that residents are being best represented.
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Karl Hanson, 2000 Lost Horse Road, stated that the Met Council Charter is not set in
stone and can change in the future, noting that the force from the Met Council may not
be there in the future. He stated that while he is in favor of affordable housing he is not
in favor of subsidized housing and did not believe that taxpayer money should be used
to subsidize housing. He stated that subsidized housing attracts crime and believed that
families with single parents, specifically mother run households, create more crime. He
did not believe that subsidized housing would provide a benefit to the community as a
whole.
Sheryl Golin, 251 Cherry Hill Trail, stated that her family has lived in Medina for the past
15 years and commended the City Council for their efforts. She believed that the
residents are reasonable and could be respectful. She stated that there is a need and
everyone has been down and out at one time. She believed that there was a way for
this to be a win if the process is slowed down. She stated that she loves kids and
walked the proposed property with Weir. She believed that the location should be the
best place for the kids and that there should be enough room for the kids to play. She
noted that the proposed location would be fenced on three sides and would be
neighbored by a bar. She believed that location would be too much for kids to thrive in.
She stated that the development proposed is beautiful but did not include enough
playroom for older kids and would not provide the right opportunities for children. She
believed that there is a lot of talent in this room that could work together to make this
successful. She stated that her family has always has positive interaction with the police
and Mayor Weir.
Linda Lake stated that she is passionate about this because she lives this every day as
a resident of a Dominium development. She stated that if the rules in the handbook
were followed, the community could be nice.
Johnson believed that those issues brought forward by Ms. Lake should be brought
forward to Dominium.
Ms. Lake, Dominium resident at 10820 South Shore Drive #11 in Plymouth, stated that
there are teenagers wandering the property with nothing to do and not sufficient space.
She invited everyone to visit the property, and other Dominium properties, in order to
gather additional information.
Johnson thanked everyone for attending tonight and advised that a town hall meeting
will be .held the following night.
Weir also thanked the residents in attendance for the time they spent to provide their
input.
III. ADJOURN
The meeting adjourned at 7:50 p.m.
Eliz th Weir, Mayor
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Attest:
Scott Johnson, Ci Administrator
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