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03-08-2022 Council Work Session WORK SESSION CITY COUNCIL/HRA/PLANNING VIRTUAL MEETING HELD VIA WEBEX MARCH 8, 2022 6:00 PM Call to order 1.Proposal by Beacon Interfaith Housing Collaborative to develop up to 40 units of supportive housing on the Portland Avenue roundabout remnant parcels (6613-25 Portland Avenue). Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9739. AGENDA SECTION:Work Session Items AGENDA ITEM #1. STAFF RE P ORT NO. 07 WORK SESSION 3/8/2022 RE P O RT P RE PA RE D B Y: Julie Urban, A ssistant C D D irector D E PA RTME NT D IRE C TO R RE V IE W: Melissa P oehlman, C ommunity D evelopment D irector 3/1/2022 O THE R D E PA RTM E NT RE V IE W: C ITY MA NA G E R RE V IE W: K atie Rodriguez, C ity Manager 3/1/2022 I T E M F O R WO RK S E S S IO N: Proposal by Beacon Interfaith Housing Collaborative to develop up to 40 units of supportive housing on the Portland Avenue roundabout remnant parcels (6613-25 Portland Avenue). E X E C UT IV E S UM M ARY: Beacon I nterfaith Housing Collaborative (Beacon) has expressed an interest in developing a 30 to 40 unit building on the property owned by the Housing and Redevelopment Authority (HRA) at 6613-25 Portland Avenue. Beacon develops supportive housing at deeply affordable levels throughout the Twin Cities. All units would be efficiencies and 25 parking stalls would be provided under the three-story building. The population to be served would include neuro-diverse youth and young adults, and supportive housing services would be provided on-site. The units would primarily be affordable at 30% of the Area Median I ncome. Beacon would seek Low I ncome Housing Tax Credit (L I HTC) funds, along with funds offered by Hennepin County and others to finance the project. They would be asking for a reduced land price and potentially additional financial contributions by the HRA. Kirsten Spreck, the Housing Director at Beacon, will present the concept in greater detail at the work session. Some of the questions for policymakers to consider: - The density being proposed would be consistent with High Density Residential; however, the site is currently guided for Medium Density Residential in the Comprehensive Plan. Do policymakers believe a re-guiding of the property would be appropriate? - The proposed development contains all efficiencies. The City's Zoning Ordinance limits the number of efficiencies within a building to 20%. Given the population to be served, would it be appropriate to exceed that limit? - The proposed parking ratio is below that of the City's requirements. Given the population to be served, is a reduced parking requirement appropriate? - W ould HRA members consider a reduced land sale price and potentially additional financial assistance for the project? D IRE C T I O N NE E D E D: Beacon is seeking direction from the policymakers on the proposed concept, as well as on the questions of density, unit-size, parking ratio, and financial assistance. B AC K G RO UND INF O RM AT I O N: A.H IS TOR IC AL C ON T E X T The property contains remnant parcels from the Portland Avenue roundabout project. HRA staff have received interest from a variety of housing developers over the past few years but no project has progressed beyond the exploratory stage. Proposals for both apartments and townhouses have been discussed. The adjacent commercial property owner has also expressed an interest in acquiring the property and expanding the existing service station. B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc): The Portland Avenue and 66th Street Sub Area Study encompasses this property and provides design guidelines that encourage townhomes or apartments and building(s) set forward on the property. The Comprehensive Plan guides the property as Medium Density Residential, which suggests a density between 8 and 34 units per acre. The proposed 30-40 unit building would result in densities consistent with High Density Residential. The property is currently zoned for single-family residential; however, a rezoning to a district consistent with the guide plan is expected once a specific development concept is identified. C.C R IT IC AL T IMIN G IS S U E S: Beacon is seeking direction from policymakers in order to refine a development concept in time to submit for funding applications during 2022. I f policymakers express support for the project concept, a resolution of support for the project concept, similar to the one prepared for the MI C C project, would be brought before the Council and HRA so that Beacon can incorporate that support into funding applications. The first funding application is due April 14. D.F IN AN C IAL IMPAC T: Beacon would be seeking a reduced land price. Given the small size of the project, it is unlikely that a tax increment financing (TI F) district would be created. Pooled TI F, through the City's Affordable Housing Trust Fund, is a possible local funding source for filling any financial gaps. E.L E GAL C ON S ID E R AT ION: None at this time. ALTE R N AT IV E(S): N/A P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G: Kirsten Spreck, Director of Housing, Beacon I nterfaith Housing Collaborative AT TAC H ME N T S: D escription Type B eacon P resentation P resentation Suburban Hennepin Development Opportunity City of Richfield 2 As a collaborative of congregations united in action, Beacon creates homes and advances equitable housing. Create New Homes Sustain Stable Homes Shelter Families Change Systems Beacon engages in new construction and rehabilitation in the Twin Cities metro area providing quality, affordable homes for those with the lowest incomes. We develop award-winning properties with a portfolio of 600+ homes and an additional 450+ homes on the way. 85% of our homes serve residents at or below 30% AMI. Our strengths include: •A proven record of technical expertise •A mission that strongly aligns with public funders •A collaborative model that inspires public support and lived-experience engagement •A trusted partner with well-respected service providers and property managers 3 Similar Beacon Development 66 West, Edina •39 permanent supportive apartments for youth and young adults emerging from homelessness •Near transit, jobs, and education •Services Partner, Simpson Housing provides on-site professional support staff to help with the transition from homelessness to stability –housing, education, and work •Professional on-site property management •Hennepin County Coordinated Entry 4 Similar Beacon Development Prior Crossing, St Paul •44 permanent supportive apartments for youth and young adults emerging from homelessness •Near transit, jobs, and education •Services Partner, YMCA provides on-site professional support staff to help with the transition from homelessness to stability –housing, education, and work •Professional on-site property management •Ramsey County Coordinated Entry 5 The Population Concept Beacon is Developing with our Partners Beacon’s concept articulates a program that “prioritizes” youth/young adults living with Neurodiversity (ND), likely youth with a variety of disabilities, and some 20% who are explicitly understood as living with ND conditions. Site-based supportive housing for youth and young adults living with ND does not currently exist. Key Stakeholders Beacon is connecting with (Fraser, Arc, Hennepin Co, YMCA) who serve this population state that this housing is “desperately needed.” Accommodate youth with neuro-diverse conditions. Create new multi- family rental at/below 30% AMI for those experiencing homelessness with equitable access. Connect to local employment, schools, transit, and services. Neurodiverse Youth & Young Adults Supportive Housing Needed Hennepin County Priorities 6 Project Feasibility Hennepin County Supportive Housing, AHIF, Housing Support, TOD, ARPA Metropolitan Council LCDA, TOD, TBRA, LHIA Minnesota Housing Finance Agency 9% LIHTC, 4% LIHTC, Housing Infrastructure Bonds (HIB) The City of Richfield Reduced land cost, other? Multiple funders align and prioritize with the development Beacon is proposing. Stable Homes for Youth and Young Adults in your community! 7 Project Feasibility •High Priority Homeless ($763) •Persons with Disabilities ($763) •Project-Based Vouchers ($840) Majority of the units at 30% AMI •Contract Rent ($882) Some of the units at 50% AMITotal Development Cost -$17M 8 The Richfield Site 66th Street East and Portland Avenue South Beacon envisions a development that… •enriches the neighborhood leveraging transit, parks, and amenities •is three stories (35’) with 32% lot coverage •provides 40 furnished efficiency apartments •contains 25 below grade parking stalls plus bicycle storage •offers 5,500 SF of program, service and community spaces •includes outdoor spaces for residents 9 The Richfield Site 66th Street East and Portland Avenue South These concept floorplans provide for an efficiently designed building that will enhance the neighborhood leveraging the transit, parks, and amenities. Level Parking Level 1 Level 2 Level 3 10 The Richfield Site Hennepin County Supportive Housing (April), TOD (March), ARPA (May) Metropolitan Council LCDA, TOD, TBRA, LHIA (Spring) Minnesota Housing Finance Agency 9%, 4%, HIB (June) The City of Richfield Reduced land cost, other? (Now) Stable Homes for Youth and Young Adults in your community! Time is of the essence as we position ourselves to seek resources from multiple funders. 11 Suburban Hennepin Development Opportunity City of Richfield Questions?