HomeMy Public PortalAbout05/29/2014 Special City Council MinutesMEDINA SPECIAL CITY COUNCIL TOWN HALL MEETING MINUTES OF
MAY 29. 2014
The City Council of Medina, Minnesota met in special session on May 29, 2014 at 5:35
p.m. by Mayor Weir in the City Hall Chambers. City Administrator Johnson presided.
I. ROLL CALL
Members present: Anderson, Pederson, and Weir.
Members absent: Martin and Martinson.
Also present: City Administrator Scott Johnson, City Planner Dusty Finke, Chief of
Police Ed Be!land, and Recording Secretary Amanda Staple.
II. TOWN HALL ON PROPOSED AFFORDABLE HOUSING NEIGHBORHOOD
(5:35 p.m.)
Johnson explained that the town hall meetings are being held in order for residents to
provide input and ask questions. He advised that the formal review of the project will
occur at the City Council meeting on June 3, 2014. He stated that copies of the written
minutes or an audio recording for the May 28th or 29th meetings could also be provided
upon request.
Nick Anderson, Dominium, thanked everyone for the opportunity to be here tonight to
provide information and clarify misconceptions. He advised that Dominium is solely an
affordable housing owner that was founded in 1972. He noted that the company is the
largest affordable housing company in Minnesota and the fifth largest in the nation. He
advised that the company is actually headquartered in Plymouth. He clarified that this is
not section eight housing and would be a part of the Affordable Housing Tax Credit
Program; explaining that Dominium would receive tax credits to help finance the cost of
the project in return for agreeing to a rent limit, income limit, and minimum commitment
of 15 years to remain as the owner and manager of the project. He noted that this
project would be composed of high quality townhomes and reviewed the materials and
amenities. He stated that four of the 32 units would be set aside for families that lack
permanent housing and advised that Dominium would partner with Interfaith Outreach
and Community Partners (IOCP) to provide support services. He advised that Dominium
has a strict screening process and noted that 78 percent of the residents living within the
Albertville development previously lived less than 10 miles from the site and believed
that this development would be filled with. Medina residents. He reviewed the typical
income level, employment, and household composition of Dominium residents. He
displayed photographs of a similar Dominium development located in Albertville. He
again thanked everyone for the opportunity to speak tonight and hoped to answer any
questions that arise.
Jeff Huggett, Dominium, stated that he has worked with Dominium for the past 17 years
and has been involved in real estate for the past 30 years. He also thanked the
residents for the opportunity to speak tonight. He noted that he took notes the following
night and hoped to address some of the remarks made by residents. He stated that a
concern had been brought up regarding the density proposed, noting that the proposed
density would be eight units per acre, which would be low compared to the allowable
density for the site and the typical density for townhomes. He referenced the concern
Medina Special City Council Meeting Minutes 1
May 29, 2014
that the site could cause additional infrastructure expense and noted that Dominium is
attempting to utilize a site that already has the infrastructure in place. He stated that a
concern had been mentioned that there would not be space for the older children to play
and noted that there would be two playgrounds, one for smaller children and one for
older children. He also highlighted additional green space that exists which would
provide space for children to play. He stated that there is also a community room for the
residents. He noted that the partnership with IOCP would also provide a variety of
programs for children. He referenced the concern that this site, located near the
commercial district, may not be the best location. He stated that in his opinion this is a
good fit for the development and noted that the majority of the developments of this
nature are in similar locations because of the close proximity to retail. He stated that a
concern had been brought forward questioning if this development would pay taxes. He
advised that full real estate taxes based on the market value of the property, explaining
that because the site is within the Tax Increment Financing (TIF) district, the taxes would
be paid to that district. He stated that a concern had been mentioned that guests would
be living at the property that are not included on the lease. He advised that each unit is
inspected at least one to two times per year and the managers are trained to identify
those that are not included on the lease. He referenced the comments regarding the
zoning district and whether this project would comply with the zoning.
Anderson confirmed that the property is zoned mixed use business and read the
definition of the zoning district. He noted that the district identifies a residential density
of seven to 45 units per acre. He advised that while the residential only use does not
meet the literal use, the City Code identifies that not all residential properties would have
another use on the property. He referenced the City owned well property that Dominium
is requesting be conveyed and the comment that had been made that fair market value
should be paid for the property. He advised that the parcel does not have a market
value because nothing could be done with the property and noted that if the property
were not conveyed to Dominium, the City would have to continue to maintain the
property.
Huggett stated that Dominium has a lot of experience and knowledge in this area and
noted that over 80 percent of Dominium's portfolio is affordable housing. He stated that
in the past year 700 residents moved from Dominium properties to purchase their own
home. He advised that in the past year in the Dominium Albertville development there
have been four residents that moved out and two of those residents purchased their own
homes.
Ladonna Hoy, Interfaith Outreach and Community Partners (IOCP), stated that IOCP
has been in the community for 35 years and during that time the organization has noted
that the most destabilizing factor for families is the lack of affordable housing. She
reviewed the neighboring communities that IOCP services, noting that over $1,000,000
was spent in the past year by the organization to help families remain in their housing.
She stated that if housing is not stable it is very hard for families to remain on top of
other factors in their lives. She stated that when IOCP can help families stabilize, the
real work can begin. She explained that this project would combine the factors of
stabilizing housing and providing support services. She stated that the concern had
been brought forward that affordable housing developments like this do not work but
stated that is not the case and she has seen that this does work. She explained that the
stability in housing allows families to get back on track and improve their lives. She
reviewed the services that are provided to those families that have experienced
Medina Special City Council Meeting Minutes 2
May 29, 2014
homelessness and that work together with IOCP. She reviewed the positive impact
working with IOCP has on families they work with. She stated that in her experience this
works and needs to work to benefit many more families.
Belland stated that there have been resident questions regarding the estimated police
calls and the impact that this development could have on Medina. He advised that he
reviewed three Dominium projects and provided the number of police calls for those
developments compared to similar developments. He explained that the type of police
calls vary between developments, noting that some have a high number of parking
complaints while others have high numbers for medical or alarms. He explained that this
makes it very difficult to provide an accurate comparison for the number of police calls
and noted that just because an area has a high volume of police calls does not mean
that there is a high crime rate; noting that Wild Meadows has the highest number of
police calls.
Johnson stated that there are research papers available on the City of Medina website
regarding the impact of affordable housing on values of adjacent property and it has
been shown that there is a negligible impact on property values. He referenced the
request for the City to waive $300,000 in sewer and water connection fees and advised
that this is proposed to be paid back through tax increment financing, should the
analysis be completed by Ehlers and Associates and find that the applicant qualifies. He
noted that additional information can be found on the City website.
Holly Leuer, 4290 Wild Meadows Drive, stated that she has been a Medina resident for
22 years and is adamantly opposed to the Dominium project because she believes that
this will decrease the market value of the existing residents' homes and will increase
crime. She reviewed her real estate experience and stated that buyers at the price
range of Wild Meadows do not want to be one mile from an affordable housing
development. She addressed an email response she received from Mayor Weir
regarding her concern over property values and did not believe that this development
could be compared to the eight units run by IOCP in Wayzata. She did not believe that
Dominium would manage the property in the same manner that IOCP does. She
provided her experience managing tenants that have subsidized housing and believed it
to be a nightmare. She believed that section 42, subsidized housing tenants bring along
problems with alcohol and violence and an increased crime rate. She felt that there are
better options to meet the goals outlined by the Metropolitan (Met) Council. She
referenced a comment made by Weir that police and fire employees are unable to live
within Medina and believed that a better fit would be for homes to be built in the low
$200,000's that she believed could be purchased by that income range. She explained
that although Dominium has stated that they would not accept section eight housing,
they did not say if they would accept section 42 subsidized housing. She stated that she
is speaking for a number of residents in her development that were unable to attend and
while they do believe that affordable housing could be provided in the City, they felt that
a better plan could be developed.
Jim Driscoll, 880 Navajo Road, referenced the crime statistics and stated that he can
readilyreceive crime statistics on his phone through an app for Medina. He believed
that further research should be done to further provide those statistics. He asked for the
crime rate per 100 units for Dominium and the type of police calls made. He explained
that in comparing a development in Albertville is apples to oranges because the average
Medina Special City Council Meeting Minutes 3
May 29, 2014
house cost in Medina is much higher than Albertville and did not believe that residents of
Medina wish to be like residents of Albertville.
Linda Lake, Dominium resident at 10820 South Shore Drive #11 in Plymouth, stated that
her property accepts section 42 while an adjacent Dominium property that does not
accept section 42 seems to be better maintained and managed and believed that could
provide a better comparison.
Dan Strand, 1985 Hamel Road, stated that he has been a Medina resident for 23 years.
He questioned who the monthly payments for rent are made to.
Huggett advised that the payments are made to the Dominium management company,
which is collected by onsite managers and confirmed that Dominium receives a
management fee. He confirmed that Dominium typically manages their own property.
Mr. Strand questioned what would happen with the property in the future should
Dominium sell. He confirmed that the full property taxes would be paid based on the
market value of the property beginning the first year. He confirmed that Dominium
manages 21,000 units and questioned the total number of units that Dominium has
developed.
Huggett stated that he could obtain the number of units that have been sold but noted
that typically Dominium continues to manage the properties for a long period of time.
Mr. Strand stated that he believed the Council should take a step back because this is a
huge decision for the City. He believed that the Council should not vote as they
personally feel and should instead vote as the residents feel.
Carolyn Smith, 545 Medina Road, stated that she has been a resident of Medina for 36
years and moved here because they wanted a nice place to raise their kids and to have
animals. She stated that as a previous member of the City Council she worked on the
development of two Master Plans. She stated that she lives across the street from a
millionaire in a million dollar home that was on the news for crime. She stated that just
because someone lives in a million dollar home does not exclude them from crime. She
stated that 20 percent of the students in the Wayzata School District receive subsidized
lunch and noted that times are tough. She believed that Dominium could have a really
good agreement with their tenants and the police should treat everyone equally. She
believed that those less fortunate should be welcomed into the City. She hoped that the
residents of Medina could be more tolerant and work with the police department and
Dominium.
Derek Nicoll, 155 Meadowview Lane, stated that he moved to Medina six months ago
with his wife and three children. He stated that while he is compassionate he is also
pragmatic. He stated that he attended the meeting the previous night and believed that
the proposal for this specific project should be considered and not the issue at large of
affordable housing. He stated that Medina has an extremely caring Mayor and Council
that have worked hard to serve the City. He noted that the previous night there were
comments made by a resident of another Dominium community that the property was
not being well maintained; Dominium admitted that they would not proceed with
development of the community unless the SAC/WAC credits were received; and
Dominium will receive federal funding for the entire cost of development of the project
Medina Special City Council Meeting Minutes 4
May 29, 2014
and therefore should not receive credit from the City in addition. He stated that he did
drive by the site last night and the lot is located in a commercial and industrialized space
that is walled in on three sides and the fourth boundary is a large bar. He noted that the
site is also not near public transportation and did not believe that this site would be the
best location for affordable housing. He stated that while everyone is compassionate he
did not believe that this is the best plan to solve affordable housing in this area.
Sheryl Golin, 251 Cherry Hill Trail, echoed the comments made by the previous resident
that Dominium would receive funding through the Affordable Housing Tax Credit
Program for the entire project and is then requesting an additional $300,000 in
SAC/WAC credits from Medina. She stated that she greatly respects the Medina
Council and the work that they do for the City. She believes that this is a money -making
project for Dominium and would not benefit the City. She stated that she supports the
IOCP and volunteers her time to work with children but she does not support this project
and will be asking the Mayor and Council representatives to vote against this project.
She stated that there are already problems with the adjacent uses, such as the problems
with the fence by Ace Properties.
Huggett stated that Dominium is not trying to hide that they are a for profit company,
noting that the Affordable Housing Tax Credit Program was enacted in 1986 and has
been the longest running program of this nature and has bipartisan support. He stated
that Dominium believes that this would be a solid development, in a good location, with a
solid management company that would be successful. He stated that he will be happy
to respond to questions if that would be helpful.
Rachelle Rossini, 850 Tuckborough Court, asked for a show of hands of the residents
that support the project and those that do not, noting that the majority of the residents in
attendance do not support the project. She believed that if this project were to be put to
a resident vote that it would not pass. She stated that Medina is being overdeveloped
and is being turned into a Plymouth or Maple Grove. She stated that people moved here
for a reason and did not want to see that disappear. She stated that the goal for
affordable housing identifies 506 units of affordable housing by 2020, which would
exceed the number of units included in the last three developments and believed that
wouldhave a negative impact on traffic, crime, and home values. She stated that the
Met Council also noted that the number was simply a goal and is not a requirement that
would be punished. She stated that the people of Medina have the right to govern their
own City and believed that if the Council were to vote against the wishes of the residents
that would not be a true democracy. She stated that it is clear that this development is
not wanted in Medina and noted that she could obtain signatures, as she believed that
Dominium had said that they would not push this development into an area that does not
want it.
Huggett stated that he was in this room three years ago as he was invited to a Council
Worksession in order to provide testimony about affordable housing. He noted that this
has been a collaborative project and was not developed under cloak. She referenced
comments she agreed with made by a resident the previous night that also provided
findings of fact that could support denial of the request.
Johnson noted that the findings of fact submitted by that resident have been forwarded
to the City Attorney for review.
Medina Special City Council Meeting Minutes 5
May 29, 2014
Ms. Rossini noted that it was also pointed out the previous night that the development
would not pay County and School District taxes during the TIF period, noting that the
Medina residents would then shoulder that burden. She urged the Council to vote
against this proposal.
Kim Murin 290 Cherry Hill Trail, confirmed the Councilmembers in attendance tonight.
She believed that it was obvious that there were many more police calls to Dominium
properties compared to Medina as a whole.
Belland noted that wherever you put a development there will be police service calls.
Ms. Murin noted that the type of calls were not distinguished between part one and part
two crimes.
Huggett noted that police calls does not equate to a lack of safety and invited residents
to tour other Dominium properties to determine if they feel safe.
Ms. Lake stated that it is vastly different when management is onsite and when they are
not onsite on the nights and weekends. She stated that once school lets out the noise
level increases. She stated that in her experience Dominium encourages residents to
call the police rather than deal with the issues directly. She stated that she feels safe in
her development because she has a license to conceal and carry. She stated that she
has lived in the development for so long that she knows the neighboring children as they
have grown up along with her children but noted that she did not let her children play
with the other children in the development. She stated that the property is cleaned up
for inspections but is not well maintained at other times. She stated that there is a full
rent Dominium property adjacent to her property, which is better maintained. She
believed that perhaps this property would be better fit as a Dominium senior project.
Huggett displayed pictures of the property at which Ms. Lake lives in, which was
developed by Dominium 35 years ago, and was developed under a HUD subsidy. He
noted that all of the residents at that location receive government assistance for their
rent. He stated that Dominium invested an additional $2,500,000 in 2005 in that specific
property. He noted that there are frequent inspections of the property and advised that
out of a score of 100, the property received a rating of a 98A on the recent inspection.
He stated that no one is perfect but Dominium tries very hard. He displayed
photographs of the property that were taken this morning. He referenced the grass
cutting issue that had been brought up and noted that the contract Dominium has for
grass cutting is for service once per week. He confirmed that the contractor had not
been doing that and has been fired today. He advised that there is a similar contract
with a snow plow company that requires plowing within 24 hours after a snowfall. event of
1.5 inches or more.
Ms. Murin stated that the pros and cons must be weighed for this project. She reiterated
the issue of the TIF district and the possibility for Dominium to receive credits from the
City, funding through the Affordable Housing Tax Credit program, and a reduced tax rate
because of the TIF.
Huggett clarified that Dominium pays full market value tax for the property, which is paid
into the TIF district. He explained that normal taxes are split between the City, County,
and School District but noted that properties within the TIF district pay their taxes to the
Medina Special City Council Meeting Minutes 6
May 29, 2014
TIF district. He clarified that the frozen TIF value only applies to the property and the
market value of the property once improved would be the increment, which would be
paid to the TIF.
Johnson clarified the process under TIF and noted that once the TIF expires the property
would go back on the tax roll.
Ms. Murin confirmed that the Medina residents would pay the School District taxes for
the children within that development. She stated that the purpose of the TIF district is to
invest in future growth and did not think that rental property would invest in future
growth. She questioned if Dominium would want to build in that location is the TIF
expires and is not available.
Huggett confirmed that if the sewer and water connection fee credit of $300,000 is not
received, Dominium will not proceed with the project.
Ms. Murin stated that while Medina wants to support people that need help, she did not
believe that Dominium wants the same as they would not move forward if the credit is
not awarded. She questioned why the City is moving forward on this when there is not
benefit to the City or the residents. She stated that it is her understanding that the
Council represents the majority of the people and questioned if the Council is willing to
do that. She believed that it seems that this project is forced and did not believe that this
is the right product and location to provide the necessary assistance. She asked if the
Councilmembers present tonight are hearing the objection and are willing to vote
accordingly.
Johnson advised that the format tonight is for the Council to listen to the residents and
no vote will be taken tonight as the Council will discuss this proposal at the June 3`d
meeting.
Mike Siitari, 1795 Medina Road, stated that the public safety aspect has been brought
forward and noted that he has an extensive police career, with ten years as Chief of the
City of Edina. He stated that he has experience with affordable and low income housing
and felt that the fear expressed is unjustified. He stated that this is a low number of units
and with good management there would not be an issue. He stated that there are tools
to control crime and did not believe that 32 units would have a negative impact on the
City. He stated that he can provide anecdotal stories of neighbors that are not pleasant
at every price range. He stated that he loves living in Medina and noted that there is not
a mix of housing available. He questioned how it is socially or civically responsible to
ask people to work in your city but not provide housing that they could afford. He stated
that other developers have pushed back on affordable housing because of profit motive.
He stated that the benefits to the City outweigh the potential cost.
Mons Teig, 100 Clydesdale Trail #325, stated that he has also lived in New York and
Los Angeles and advised that affluent areas also have their problems. He stated that all
he has heard tonight was negativity and hoped that this community would look to provide
for all people. He believed that it seemed that the residents tonight have expressed
redline attitudes, attempting to keep people out. He referenced the partnership with
IOCP and questioned how the community should look to draw a multifaceted group.
Medina Special City Council Meeting Minutes 7
May 29, 2014
Huggett advised that photographs of other Dominium developments and additional
information can be found on the Dominium website.
Chris Hilberg, 4559 Trillium Drive, commended Weir for the time and effort that she has
put into this project as he believed that her efforts are truly from the heart and that she
has the best intentions. He noted that Weir also committed many hours in the past to
develop the Comprehensive Plan, in conjunction with a team of people. He stated that
in the past he had spoken with Weir in regard to the roll that public opinion plays on her
vote. He stated that she had responded that she reviews the information factually and
public opinion does not have an impact on her vote. He stated that he developed a list
of findings of fact and was confused on what the vote would be based on since it does
not appear that public opinion or finding of fact matter. He believed that it is reasonable
that citizens that vote and elected officials become conversant in the topics so that they
can thoroughly understand and make independent judgment. He stated that perhaps he
could meet Weir prior to the Council review to discuss these issues: how does the plan
comply with the mixed use zoning district, as the plan is simply residential and does not
contain a second use; how does the plan comply with the mixed use district density, and
the impact that higher density on this parcel could have on other similarly zoned
property; and how does the City owned property in discussion comply with the
Comprehensive Plan, which states that the land is public/semi-public.
Dean Herman, 3849 Linden Drive West, stated that he did not know about this project
three weeks ago but since then has been corresponding with his elected officials. He
stated that he has a number of concerns with the project. He stated that his takeaway
last night was that Medina can do better than this proposal and believed that the City
could do better. He was troubled that this plan would categorize the residents that live
there as low income and from the "project" and believed that perhaps those residents
could be better spread throughout the city. He stated that the involvement of IOCP will
be a success wherever they are located. He believed that four unit buildings throughout
the city would be a better solution. He stated that perhaps IOCP could purchase units in
the Enclave development that could be spread throughout the neighborhood and
believed that those residents would have higher success and be better welcomed. He
believed that the entire idea of affordable housing should be tabled for one year at which
time a plan that works for Medina could be developed.
Ann Nelson, 235 Meadowview, stated that she was disturbed by the idea that 506
affordable housing units was the goal for affordable housing for Medina in the next six
years. She read aloud a portion of an article published in the May 19th issue of the Wall
Street Journal which described the THRIVE plan identified by the Met Council. She
stated that there is a larger force at work that is and may again in the future apply
pressure to the City. She did not believe that this is the right location for the
development.
Beth Strand, 1985 Hamel Road, stated that she has been a resident of Medina for 21
years. She questioned the percentage of families that have been evicted from
Dominium developments. She questioned if residents have a limit on the amount of time
they are allowed to stay in the units.
Huggett explained that once residents move into the development they are allowed to
remain in the units for as long as they wish and are not forced to move out if their
income increases.
Medina Special City Council Meeting Minutes 8
May 29, 2014
Ms. Strand confirmed that the tenants pay their full utilities and do not receive assistance
for that. She questioned how the information gathered would be presented to the
Council prior to their vote.
Johnson explained that the information is placed into the Council packet for the
members to review prior to the Council meeting.
Ms. Strand did not believe that the Council would thoroughly review that information.
Johnson explained that all of the information will be placed into a packet and provided to
them on May 30th in order for them to prepare for the meeting on June 3, 2014.
Ms. Strand confirmed that inspections are noticed so that Dominium can prepare the
property prior to the inspection.
Jim Martin, 4620 Medina Lake Road, directed his question to the City Council and asked
if there could be an agreement that the City Council is elected by the tax paying
residents of Medina and owes its work to the residents solely and not to the Met Council
or their own views on social engineering. He stated that he would like confirmation as a
tax paying resident of Medina, from the City Council, acknowledging that the Council
owes its loyalties to the residents and not the developers, the Met Council or their own
social engineering. He believed that is the fundamental issue and duty.
Frank Mignone, 3316 Red Fox Drive, stated that he is in favor of affordable housing and
IOCP but noted that this discussion is solely about Dominium, which is a privately owned
company that makes approximately $217,000,000 per year. He asked where the
compromise is since Dominium is already receiving credits from the state and federal
government and is also asking for assistance from the City of Medina. He stated that he
pays tax to the School District, even though his kids are grown, noting that it is for the
good of everyone. He believed that the School District should receive taxes from this
property. He did not believe that this is the right location for this property but believed
that Dominium is solely choosing the property because of the location in the TIF district.
He stated that there is land available near his home that could be used for this
development and believed that would be a better fit. He clarified that the building permit
fees would be paid and did not believe that the sewer and water fees should be credited.
He questioned what would occur should Dominium choose to sell the property after 15
years and confirmed that the property would not need to remain as affordable housing.
He referenced a drop off that borders the site and believed that would be unsafe for
children. He stated that these four acres would not work for this purpose and advised
that there are eight acres available near his home. He stated that the Mayor and City
Council are stewards of the City of Medina and should protect the assets of the City,
noting that the elected officials will need to answer to a vote.
Mr. Strand stated that this is a business decision for Dominium and noted that the City
Council make the business decision for the City. He stated that within this room are the
stockholders and in his opinion as a business person he would walk away from this deal.
Ms. Lake, Dominium resident at 10820 South Shore Drive #11 in Plymouth, stated that
prior to inspections residents receive a letter and are asked to clean up their property.
Medina Special City Council Meeting Minutes 9
May 29, 2014
Ms. Rossini asked for a clarification on the Council vote, confirming that one
Councilmember will not be in attendance and therefore will not vote. She confirmed that
if the vote is deadlocked it would come back before the Council at the June 17th meeting.
Kirby Johnson, 320 Calamus Circle, thanked the Council and staff for their time and
effort. He stated that his neighbor just placed his house on the market for half of the
price he paid to build it. He stated that Medina is a nice community and Dominium
would reap the benefit of that when they sell the property in 15 years. He questioned if
there is an impact on housing values and believed that information could be helpful.
Johnson noted that studies can be found on the City website and advised that the
information on the website states that the impact on property values is negligible. He
stated that if there is other information that residents should bring that forward to the
City.
III. ADJOURN
The meeting was adjourned at 8:15 p.m.
46/7/2;
Eli • th Weir, Mayor
Attest:
Scott Johnson, Ci Administrator
Medina Special City Council Meeting Minutes 10
May 29, 2014