HomeMy Public PortalAbout2015.02.04 Special MinutesMINUTES
McCall City Council
Special Meeting
Legion Hall - McCall City Hall (Lower Level)
February 4, 2015
Agenda
Call to Order
Public Forum
Adjournment
CALL TO ORDER AND ROLL CALL
Mayor Aymon called the Special meeting of the McCall City Council to order at 6:30 p.m.
Mayor Aymon, Councilor Giles, Councilor Scott, Councilor Swanson, and Councilor Witte
were present.
City Staff present were Gene Drabinski, City Manager; Michelle Groenevelt, Community
Development Director; and BessieJo Wagner, City Clerk
PUBLIC FORUM
Gene Drabinski, City Manager, addressed those in attendance stating the rules of the public
forum. He asked that everyone respect each other and allow those to speak who want to speak.
AB 15-12 Request for Commitment of long term lease for potential affordable housing and
community space — City Campus
Michelle Groenevelt, Community Development Director, gave a brief presentation on the
proposal to develop affordable housing. She also covered the need for affordable housing within
the City of McCall and that the need was identified in the City's Comprehensive Plan. The City
of McCall was approached by an affordable housing development team, VCD, LLC, and partner
Northwest Real Estate Capital Corp. for a proposed 36-unit affordable housing complex on the
west portion of the City campus owned by the City of McCall. The Developers are requesting a
long-term lease agreement be entered into between the City and the Developers, or their
designee, for a term of not less than 65 years at an annual rental rate of $1 if funding is awarded
for the project and subject to conditions outlined in the letter of commitment. The concept of
affordable housing and community space is consistent with the 2005 McCall City Campus Plan.
The specific site plan and design would be determined if funding is awarded, and the Developers
would work with City staff on the details. The project also requires approval through the Design
Review with a public hearing process.
A member of the audience asked how long had the City known about the proposal. Ms.
Groenevelt stated that the development team had approached staff about 5 weeks prior to this
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February 4, 2015
meeting. She stated that there were questions at the staff level that needed to be satisfied prior to
the lease commitment letter coming to the Council. She clarified that the Council learned about
the request 2 weeks prior, and before then they met the developers back in December at a
Council Meeting and proposed the idea of pursuing affordable housing in partnership with the
City.
Jean Odmark, a city resident, stated that she looked up this development team on line and shows
how much money they could make on the deal but could not find any information on how much
the City could make through taxation. The audience member also stated that it did not mention
anything about if the development would be compatible with the adjacent property.
Chance Hobbs the developer with VCD, LLC addressed the question stating that it would be
very similar to how the Springs is set up. The Springs Apartments are on land that was donated
by the County. He explained the proposed apartments would be owned by a private partnership
that would be paying property taxes on the property and the improvements. He stated that those
taxes would be paid to both the City and Valley County. Mr. Hobbs also stated that the taxes for
affordable housing are regulated by the Federal Government. He stated that approximately $20-
24,000 would be paid out in property taxes per year. Ms. Odmark was appalled by the low
amount of taxes that would be paid in comparison to neighboring properties.
Lynn Lewinski, a city resident, asked why a different piece of property that had already been
preapproved by this type of development be considered. Ms. Groenevelt stated that with these
types of developments the developers generally partner with cities that can donate the land so
they are able to offer the units at a much lower price.
Chance Hobbs the developer with VCD, LLC, gave a brief presentation regarding his business
and time spent in affordable housing developments. He stated that if they are able to build their
project in the requested location it would be aesthetically pleasing and look on the outside much
like Alpine Village.
Mr. Hobbs introduced Jess Defray, a development officer at Northwest Real Estate Capital
Corp., his non-profit partner out of Boise. Mr. Defray stated that they had been around since
1999. He stated that their mission was to develop and preserve affordable housing throughout the
northwest. He gave a brief overview of their business including their Idaho presence. Mr. Defray
also explained how these projects are funded through tax credits.
Mayor Aymon stated that the Council would now hear comments from the audience.
Helen Layton from Donnelly, works with the Senior Center — commented that Mr. Hobbs had
spoke with the Seniors on what the plans would be for the Senior Center. She stated that her
concerns were that with a shared space others would have access to their kitchen and they had
worked very hard to obtain an A rating with the health department. She is concerned that if they
are a community center the Seniors would not be eligible for the grants they receive now or be
able to do the functions they enjoy doing now. She stated that it would no longer be a Senior
Center, it would be Community Center and that would not be fair to the Seniors. She was also
concerned that there would be parking issues.
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Richard Layton, member of the Senior Center. He commented that the Senior Center was at risk.
He stated that a Community Center was not a Senior Center. He stated that the City was taking a
risk of giving up their space when at some point in the future would need to expand and would
not be able to. Mr. Layton was also concerned with parking issues. He stated that his primary
concern was that the Seniors would lose the ability to gather.
Joann Zimmerman, McCall resident. Agrees that there is a need for affordable housing; however
does not think this is the way to go. She did not think that the downtown was a place for
affordable housing. She felt that there could be better places around town for affordable housing.
Ms. Zimmerman also did not think that the Senior Center and Community Center should be
combined.
Rita Teders, McCall 30 year resident. She stated that with other special uses within this
neighborhood, the City did not do their part in making sure those businesses did what they were
supposed to, the radio station on Mission street is not landscaped as promised and the back side
of Paul's look like a dump. She does not think the proposed location for the affordable housing is
appropriate for the neighborhood.
Wayne March, McCall resident, stated that he did not dispute the need for affordable housing.
His concern was that the City was subsidizing a developer from out of town when there was
already a viable developer in town. Does not believe the proposed location is appropriate. He
also stated that it was the only space for the city to expand its facility and did not make since to
build housing there. He stated that the Seniors have done an awesome job with their building.
Mr. March also stated that it was a money making venture for the developers.
Don Bailey, McCall resident, stated that he and his wife support the project. He stated that it was
clearly part of the Comprehensive Plan and totally appropriate to have affordable housing
downtown. He also stated that the building should be a platinum rated building and meet all
planning and zoning requirements. Mr. Bailey also suggested that City offices could be built into
the main floor of the building. There should also be covered parking and the entire parking lot
should be redone. First Street should be redone to standard along with sidewalks.
Bob Halleke stated that the commitment for 65 years in downtown is concerning not knowing
what the City will need in the next 20 years.
David Byars a 37 year resident and multi -business owner recognized that there is a need for
affordable housing. Something needs to be done for affordable housing; however there is a need
for the Senior Center. The Seniors have invest a lot of time and money into their current
building. Does not think the proposed location is appropriate as the space is too small. The
Senior Center is very important for the Seniors.
Harriet Byars a lifetime resident has been involved with the Senior Center even prior to
becoming a Senior herself. She does not see another location that would work for them. She was
also concerned that if they had to move temporarily would be very difficult. She was not in favor
of a shared space.
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Joan Edwards McCall resident was in support of the project. She stated that as a prior Vice
Present of the College of Southern Idaho, she had some experience with this type of project. She
stated that there was some land contiguous to the college that a similar facility was built. She
stated that it was a wonderful facility that added to their community. She stated that as a young
person she was in the low income category and was a good contributor to her community as she
and her husband went to school. She stated that these projects need land to be donated to make it
affordable. She stated that she has sympathy for the Seniors; however, she also has sympathy for
the young people who are trying to make a living and find affordable places to live.
Cynthia Peacock a City employee spoke about the need of affordable housing in McCall. She
currently lives in Cascade and commutes to McCall for work. She would rather live in McCall
and be a part of the community; however, on her salary she cannot find any affordable housing
that is decent enough to live in. She has been treated poorly when she states her price range to
property managers who tell her that is not possible in McCall without 1-3 roommates. She also
stated that there is a misconception of people who need affordable housing. People who work for
places like the City and the Forest Service cannot find affordable housing.
George Poole McCall resident and Chairman of the Senior Center, stated that the previous night
Chance Hobbs spoke with the Seniors regarding the project. He stated that there is a need for
affordable housing; however the location is not appropriate. The new proposed facility would be
smaller than their current facility and they would not have control over the facility. They would
have to have permission prior to holding any function. He also expressed concern over parking.
He stated that he did not feel that the proposed location is the right size for the need. He again
recognized the need for affordable housing but the proposed location is not appropriate.
Jean Odmark McCall resident stated that she is very much in favor of affordable housing. Does
not feel it is a large enough space for 36 units. Parking will be an issue and possible issues with
infrastructure.
Woody Woodson McCall long time resident, business owner and member of the Senior Center
stated that he is for affordable housing. However, he stated that there were properties on the bus
route outside of the downtown core that would be more appropriate.
Judy Drake McCall resident and coordinator at the Senior Center stated that in her experience a
separate Senior Center is the best scenario. She stated that it is good for Seniors to have a place
separate from where they live to go to. She does recognize the need for affordable housing just
does not feel it is the right location. She thought that the space should be reserved for cultural
activities. Felt that a site over by River Front Park would be a better location for families.
Garth Kanigowski McCall resident and current owner of workforce housing in McCall stated
that his concern was the quoted rents and market rents are inflated and are 20-30% higher than
they offer. He stated that none of the amenities are stated in the paperwork. He stated that he is
very much in favor of affordable housing. He also expressed concern that out of town developers
were being considered for the project and not local developers and builders. Mr. Kanigowski also
stated that it should be required that the project should be of the top energy efficiency possible.
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February 4, 2015
Mary Nuckols a McCall resident expressed concern over parking. With 36 units there should be
1.5 parking spaces for each unit, she does not see that there would be enough for parking. She
was also concerned about the infrastructure needs and who would pay for that and would they
pay market rate. She stated that First Street needs to be improved that would equal additional
costs. She was also concerned with the additional traffic on First Street. She stated that she is in
favor of affordable housing just not in this location. She stated that the Forest Service has a much
larger piece of land in town that would accommodate the project more favorably. Ms. Nuckols
also expressed concern that as the City grows the need for additional facilities will grow also and
would tie the City's hands with the land. She is in favor of affordable housing just not in this
location.
Sadie Noah a McCall resident commented the she is a realtor in town. In 2004 she represented
the Idaho Association of Realtors at the National Association of Realtors at the very first
Workforce Housing Symposium. There were people from all over the country from
municipalities, realtors, and corporations that discussed the importance of work force housing
and the benefits as well as the challenges. She stated that she some experience in regard to
workforce housing and is a huge proponent and commended the City for working with the
appropriate partners. Her concern with the site is the site and there is no potential for expansion.
She stated that the Springs was looking to expand and should be supported as well as any
developer wanting to do work force housing should be supported. Ms. Noah also stated that the
City facilities will need to expand at some point and the space should be available for any
possible expansion there. She hopes that the City will continue to support workforce housing just
not in this location.
Colby Nielson a McCall resident he thought that maybe the developers should come back in
September with some more solid ideas. He stated that due to the amount of vacation rentals it has
caused some of the issue with available affordable housing. He thought that an additional Local
Option Tax on the vacation rentals could result in some of those converting to long term rentals.
He is in favor of workforce housing and thinks that a downtown location would be good. As for
the Senior Center it is a valuable part of our community but would do well on the south side of
town as well as City Hall and the Library. Mr. Nielson stated that he has more concern over the
location of the City Campus and why would we have buildings in the City in prime locations that
do not generate any money for the City. He felt like the south end of town needs to be re -
imagined.
Lynn Lewinski McCall resident commented that there needs to be a much better plan for the
needs of this space. Concerned the general public is not confident in how the City spends its
money.
Joann Zimmerman commented that the City needs to generate money.
Ray Osborn commented that there is indeed a great need for affordable housing however, the city
property has better possible use in the future. He also commented that with the proposal there
would less space and the space would be shared. With the less space it would prohibit the
Seniors from storing and having available for people that need them things like wheel chairs,
walkers, crutches and other items.
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Ed Hayes a member of the Senior Center stated that he does not disagree with the need for
affordable housing. He is concerned about how this project would affect the Senior Center.
Marleen Bailey asked if the design team could comment about how the Community Center
would work.
The developers will address the group after all comments are made.
Mike Robnet a 6 year resident and contractor commented on the need for work force housing. He
stated that he tried historically to build affordable homes however the costs to do that have
doubled over the past few years. He stated that the need for affordable housing is going to grow
in the very near future. He stated that it is very difficult to build new affordable housing.
An audience member asked if there were any stipulations on the City property and how it can be
used from the person who originally donated the land to the City.
Michelle Groenevelt, Community Development Director, stated that here were no known
stipulations or obligations as to the use of the City property. She stated that there were some
grant dollars used for the Senior Center but those grant obligations have been fulfilled. She stated
that the only stipulation on the land is that there was land and water conservation money that was
used to build the pathway and there are some standards that have to be considered.
Jean Odmark wanted to know if the developers had looked at any other sites.
There was some discussion regarding the property and possible stipulations that may have been
established.
Chance Hobbs addressed the group. He thanked everyone for coming and sharing their questions
and concerns. He addressed the kitchen concerns stating that the proposal would consider those
concerns and make every effort to accommodate those needs. He acknowledged the work the
Seniors have done and would execute an agreement with the Seniors to do what they are doing
and continue to do. Mr. Hobbs listed some of the other areas they looked at some of the obstacles
they ran into. He addressed the fact that the City property is the best location to encourage people
to walk in the downtown. He addressed all the amenities the community center would have to
include an exercise room and a computer room. He stated through the process other amenities
would be considered.
Mr. Hobbs also explained who would qualify to live in the proposed affordable housing. There
was a brief explanation of the difference between low income housing and affordable housing.
This project would be for working people or people on fixed incomes. It was called out that 50%
of the people that are within 20 miles of the proposed location would qualify for this housing.
There was a brief discussion on why this piece of property was chosen for the proposed location.
Michelle Groenevelt, Community Development Director, stated that the issue had been
addressed and identified as appropriate use for this property in the Comprehensive Plan and the
Downtown Mater Plan that had received extensive public involvement.
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There was a brief discussion regarding the condition of the roads and infrastructure and who
would cover those costs. It was reiterated that this was a preliminary step in the process. Many of
the issues would be fully vetted as the process progressed. Mr. Hobbs reiterated that their intent
was to provide for a need and the need is affordable housing. The three primary issues are: is it
the right location, what are they going to do about parking, and what will happen to the Seniors.
Mr. Hobbs stated that as many contractors that are local will be used as possible and it will be a
certified energy efficient building. The big concern was the short timeline for the City to make
the commitment.
The Council requested that staff fully vet the question of whether there are any stipulations on
the land.
Councilor Witte wanted to know what the plans are for the Springs. A developer for the Housing
Company's the Springs stated that they are applying for funds to build additional units and feels
that they have a good chance of receiving funding. It was also identified that due to the need for
affordable housing in Valley County both projects would have a good chance of getting funding.
There was a brief discussion in what the letter of commitment was actually committing the City
to. It was clarified that this letter of commitment was a preliminary step and anytime throughout
the process the City could put a stop to the project if it was determined it was not a viable project
for whatever reason. The general consensus of the Council was that they needed more time to
digest the information they had just received and give the community an opportunity to weigh in.
Councilor Giles moved to table the long term lease commitment letter for affordable
housing and community space on the City Campus until February 12, 2015. Councilor
Swanson seconded the motion. In a roll call vote Councilor Giles, Councilor Swanson,
Mayor Aymon, Councilor Scott, and Councilor Witte, all voted aye and the motion carried.
ADJOURNMENT
Without further business, Mayor Aymon adjourned the meeting at 9:12 p.m.
ATTEST:
BessieJo agner, City Clerk
McCall City Council Regular Meeting
February 4, 2015
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