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02-11 Work Session (2) CITY COUNCIL MEETING MINUTES Richfield, Minnesota Special Concurrent City Council, Housing and Redevelopment Authority and Planning Commission Work Session February 11, 2019 CALL TO ORDER The work session was called to order by Mayor Regan Gonzalez at 6:31 p.m. in the Bartholomew Room. Council Members Maria Regan Gonzalez, Mayor; Edwina Garcia; Mary Supple; and Simon Present: Trautmann. HRA Members Mary Supple, Chair; Erin Vrieze Daniels; Pat Elliott; and Maria Regan Present: Gonzalez. HRA Members Sue Sandahl. Absent: Planning Commission Sean Hayford Oleary, Chair; James Rudolph; Kathryn Quam; Allysen Hoberg; Members Present: and Peter Lavin. Planning Commission Bryan Pynn; and Susan Rosenberg. Absent: Staff Present: Katie Rodriguez, City Manager; John Stark, Community Development Director; Julie Urban, Housing Manager; and Jared Voto, Executive Aide/Analyst. Item #1 DISCUSS PROPOSED HOUSING DEVELOPMENT FOR THE CITY GARAGE SOUTH SITE Julie Urban, Housing Manager, introduced representatives from MWF Properties. Chris Stokka, MWF Properties, presented the development team that includes the developer, builder and property manager. He provided a development summary of the proposed project, with a four story building with underground parking, a mix of 1, 2, and 3-bedroom units. Lastly, he discussed the proposed development schedule. Council Member Supple asked for a definition of a “land write down”. Community Development Director Stark stated the developer would be asking for the HRA to sell the property for a lesser amount than it appraised for, possibly zero. This is in an established TIF District and the City could pay itself back the difference using tax increment funds. Special concurrent Council, HRA and Planning Commission Work Session -2- February 11, 2019 Planning Commissioner Rudolph asked why there is a TIF District if the developer want not looking for TIF. Community Development Director Stark stated it is a faster pay back than the City/HRA would receive from the city allotment of the tax revenues. Council Member Garcia asked about staff’s review of the proposed project and if the neighborhood has heard about this project. Community Development Director Stark responded it has generally been reviewed by staff for its fit in planning and zoning but specifics, like setbacks, have not been reviewed. He also stated a notice has not been sent out for this work session; if policymakers were interested in the proposal then the next step would be to engage the neighbors. Planning Commissioner Hoberg asked if there are any environmental concerns since this was a previous industrial site. Mr. Stokka responded it would be something they would look into, but they have developed sites previously used as dry cleaners. Community Development Director Stark responded that environmental reports have been done on the entire site and there shouldn’t be many issues on this site, other than possible soil removal and clean fill brought in. Commissioner Elliott commented that it is nice to see workforce housing brought back as he thinks it is needed in Richfield. He discussed the figures shown and the City Council and HRA’s decision to know what the buy down would be. He also asked about the size of the units and discussed the need for affordable housing for families. Mr. Stokka responded that about 25% are 1-bedrooms and the rest are 2- or 3-bedrooms. Planning Commission Chair Hayford Oleary asked about the public storage site to the south and the possibility of redevelopment of that site. Department Director Stark responded he did not know if there was possibility of redeveloping that site. Commissioner Quam commented that she was impressed that they had never sold a property and headquartered in Richfield. Commissioner Lavin asked about the financing and if there was a difference between standard affordable housing and workforce housing. Mr. Stokka responded there are a lot of different terms for housing that are financed with tax credits and affordability levels can go from 20-80%. Their housing is more toward the 50-70%, which they classify as workforce housing. Council Member Trautmann commented about his concerns on family housing in this particular location due to the railroad and I-494. Community Development Director Stark responded that this is use is what is indicated in the comprehensive plan, currently and the previous plan, so that is the direction they have taken. This proposal is similar to what was proposed in 2011-2012. He stated it received policymaker support Special concurrent Council,HRA and Planning Commission Work Session -3- February 11,2019 initially, but had neighborhood opposition. He commented staff is committed to bring the neighborhood and policymakers together at the same time, if there is interest in the proposal. ADJOURNMENT The work session was adjourned by unanimous consent at 7:01 p.m. Date Approved: February 26, 2019 1Y\OAE-t Maria Regan Gonzal— Mayor J d Vo Katie Rodriguez Executive Aide/Analyst City Manager