11-13 Special Concurrect CC, HRA, and PC Work Session
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Concurrent City Council, Housing
and Redevelopment Authority and
Planning Commission Work Session
November 13, 2018
CALL TO ORDER
The work session was called to order by Chair Supple at 6:15 p.m. in the Bartholomew Room.
HRA Members Mary Supple, Chair; Erin Vrieze Daniels; Sue Sandahl; Pat Elliott; and
Present: Michael Howard.
Council Members Pat Elliott, Mayor; Maria Regan Gonzalez; Edwina Garcia; Michael Howard
Present: and Simon Trautmann.
Planning Commission Sean Hayford Oleary, Chair; Allysen Hoberg; Susan Rosenberg.
Members Present:
Planning Commission Bryan Pynn; Kathryn Quam; James Rudolph; and Daniel Kitzberger.
Absent:
Staff Present: Steven L. Devich, City Manager; John Stark, Community Development
Director; Julie Urban, Housing Manager; Kate Aitchison, Housing Specialist;
and Jared Voto, Executive Aide/Analyst.
Item #1 EMERSON LANE REDEVELOPMENT
Housing Specialist Aitchison presented on the history of the site. The Housing and
Redevelopment Authority (HRA) purchased the property in 2005, hired a design architect to sketch
out possibilities for the property, and in 2007 released an RFP for developers that received no
responses. She showed a video walkthrough of the property. She discussed internal opportunities for
the City’s use of the site and outside interests since summer of 2014 to summer of 2018. She
discussed a current development proposal by Endres Custom Homes for five homes with list price of
approximately $330-340,000. Lastly, she also discussed the financials of the property, including the
amount the HRA has spent thus far and a number of scenarios including: do nothing; sell as vacant
land; divide and sell; transfer to recreation services; development of one home; development of three
homes; and development of five homes.
Council Members, HRA Commissioners and Planning Commissioners asked questions of staff
about the sound wall, the roadway being public versus private, the number of proposed homes, what
is included in the development costs estimates, the annual cost and replacement costs of the public
roadway compared to the tax revenue from new homes, and sewer and water access to the property.
Special concurrent Council, HRA and Planning
Commission Work Session -2- November 13, 2018
Mayor Elliott invited Dustin Endres, Endres Custom Homes, to the table to speak and answer
questions.
Commissioner Sandahl asked Mr. Endres about the type of home.
Mr. Endres stated the homes would be 4 bedroom, 3 bath, and 2,145 square feet. He stated it
is a popular floor plan and built five of these homes in the north east of Richfield last summer. He
stated he has two people who have reserved lots if this proposal moves forward and four others who
are interested.
Mayor Elliott asked staff about the affordable housing plan and if it was applicable to this
proposal.
Housing Manager Urban outlined the affordable housing plan requires over a 3-year period the
City expects 20% to be affordable. She stated they would have to recalculate the numbers, and that
these would not be affordable, and staff would have to look into another area to ensure the 20% are
affordable. She mentioned that currently the City is at around 30% affordable, but these numbers
would need to be recalculated.
Commissioner Hoberg commented about including affordability into new developments and
not falling back on not including it because we are already at 30% affordable, and having the housing
plan incorporate affordable housing especially on the west side.
Mayor Elliott invited homeowners near the proposed development to speak.
Jody Powell, 6800 Emerson Lane, discussed their factors in purchasing their home being near
Wood Lake Nature Center and the vacant lot behind their home. She asked how they would be
compensated for the loss in value for their home.
Mayor Elliott responded he wasn’t certain there would be a loss in value.
John Stark responded that they have tracked this in larger projects and in other areas —
Sheridan and 76th St — and the values have risen. He stated they could look at the assessed value
of the homes near there.
Ms. Powell asked about the width of the road and the ability for emergency vehicles in the
area. She commented on changing the character of the neighborhood with five additional homes in a
space where there was previously one or none and asked about the timeline.
Housing Manager Urban responded that there is no timeline at this point, they are seeking
guidance from policy makers and mentioned if the proposal moved forward there would be a
neighborhood meeting before approvals were considered.
Jerri Scott, 6608 Emerson Ave S, shared her concern about placing five homes and the
increased traffic that would come into the street. She also was concerned about the height of these
home compared to the ramblers currently there and aske the height to be reduced.
Paul Zobeck, 6714 Emerson Ave S, asked about the proposed costs of purchasing the lot.
Housing Manager Urban responded that they estimated $60,000 per lot based on previous
values.
Special concurrent Council,HRA and Planning
Commission Work Session -3- November 13,2018
Mr. Zobeck asked if neighbors had the potential to purchase the lot outright. He commented
they purchased in 2009 and the driving force to purchase it was not having neighbors behind them
and he was more in favor of one home than five homes.
April Pream, 6639 Emerson Ave S, commented on the quiet nature of the block and asked
about the look of the proposed homes.
Urban stated they are the same model but they would change the roof lines and colors and
would expect that from the builder.
Ms. Preem stated it would be helpful to see how the homes would actually look. She asked
about the annual costs of maintaining the property currently and commented on the range of property
values on the block and that any homes on the block above the price of the new homes might reduce
in their value and those below the price of the new homes might increase in value.
Mayor Elliott commented on the availability of homes in Richfield and the limited options of lots
for the HRA to purchase.
Urban asked the policymakers if there was an option they wanted staff to pursue.
Mayor Elliott did not see this project moving forward while he was on the Council and deferred
to the other Council Members.
Council Member Regan Gonzalez stated she did not feel comfortable with the five house
proposal.
Council Member Trautmann stated he shared questions about the property if the City is not
gaining revenue from the development or sale and taking on certain costs with the public road.
Planning Commission Chair Hayford Oleary stated it is worse if it is three houses than five
houses if it has to be a public road and considered if it was better to stay vacant, as it doesn't seem
feasible with three homes.
Council Member Howard suggested having another work session in 2019.
ADJOURNMENT
The work session was adjourned by unanimous consent at 7:00 p.m.
Date Approved: January 15, 2019
1/147 /120.
HRA Ch.
11 (1.41444vim- _In
L 1
Kate Aitchison Stark
Housing Specialist cutive Director