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04-02-1984 JointCITY OF RICHFIELD SPECIAL JOINT riEETING CITY COtTNCIL, HOUSING & REDEVELOPMENT AUTHORITY PLANNING COMMISSION & COMMUNITY SERVICES COMMISSION APRIL 2, 1984 The City Council of the City of Richfield met in special joint session with the Housing & Redevelopment Authority, Planning Commission and Community Services Commission on April 2, 1984 at 7:00 p.m. Mayor John Hamilton called the meeting to order at 7:10 p.m. Council Members Present: Hamilton, Bunce, Ludeman and Kirsch Planning Commission Members Present: Kritzman, Ahlquist, Luettinger, Jensen, McDermott, Hoverson Community Services Advisory Commission Members Present: Dunham, Sandahl Housing & Redevelopment Authority Members Present: Harms, Helmberger, Luettinger, Aassenstab and Ludeman Introductory remarks were made by the Mayor. City Manager Cartwright said the purpose of the meeting is to allow a thorough discussion of issues related to Legion Lake park development and the proposed Portland Avenue housing development (DADA). I. Park Development A. Legion Lake Community Services Director Don Fondrick reviewed the history of Legion Lake. The master plan envisioned Legion Lake being developed as a central park for the entire community. Also mentioned was the fact that land along Portland Avenue has been acquired by the HRA. In 1980, the consulting firm of Setter, Leach & Lindstrom did a study of Legion Lake and specific Richfield school facilities. The study indicated the need for more basic data:-storm water collection information, soil data, topography and water plant facility data. Special Joint Meeting -2- April 2, 19$4 Mr. Fondrick indicated that the next phase in park development is to collect this data. Legion Lake has an area of 100 acres, but not all of it will support building construction or active recreation activities. The next step after data gathering is to prepare a park development master plan. Mr. Fondrick stated it was his opinion that a park consultant should be hired. Two alternatives were mentioned by Mr. Fondrick: (1) the University of Minnesota; or, f,2~ a private consultant. The U of M approach was favored by Mr. Fondrick. Themes of the park include "a park for young families" or a "21st century'`' park. Mr. Harms raised a question about the timeframe for park development. Pro- fessional consultants could initiate a study immediately and the U of M would not be able to start the study until the fall of 1984. Mr. Cederholm, 5th Avenue South, asked about the improvement of 62 & I-35 and the impact on Legion Lake. Commissioner Luettinger asked whether funds are presently available for park improvement. Mr. Cederholm made the comment that Portland Avenue is a poor location for a Iow and moderate income housing project. Mr. Dennis Rraft, Community Development Director, responded that this project is targeted at families with incomes of $25,000 to $35,000. Mr. Rraft also indicated that the. proposed housing development would not substantially add to the volume of traffic on Portland Avenue. B. Housing 1. Housing Plan Discussion Community Development Director Kraft presented a brief overview of the history of housing-related activities at the Legion Lake site. He also indicated members of his staff would provide further background on this subject. (a) Susan Merriam presented an overview of Richfield demographics during the past 50 years. The population grew rapidly between 1950 and 1970, and peaked in 1970. Between 1970 and 1980, Richfield had the largest percentage of decline Special Joint Meeting -3- April 2, 1984 in population in the entire state. The age composition has changed from a large concentration of young people to a gradual aging of the population. Income remained •s table between 1950 to 1970, but increased dramatically between 1970 to 1980. Single family housing starts peaked in the 1950'x. There was a large increase in housing value between 1970 to 1980, a larger increase than in income. Richfield presently has low vacancy rates, which restricts the availability of housing in the community. (b) Mr. Itraft presented the adopted housing policies, goals and priority issues. He stated that the Comprehensive Plan is a guide for future growth. It is a way to preserve and enhance price in housing, require high standards, to diversify housing stock and balance types of housing and demographic composition. With in- creased housing costs., he indicated there is a need to provide some housing subsidies to attract young families to Richfield. The Housing Plan essentially reflects the Comprehensive Plan in describing community needs. The City contains mostly middle income housing. There is a need to continue to pursue funding sources which benefit the community by offering new ownership and rental opportunities for middle income younger families. Subsidized housing is one of the seven Cop priorities of the City Council. Legion Lake housing is included in the high-priority category as delineated by the City Council for 1984. (c) Marcia Hale discussed the HRA and its programs that address housing goals for Richfield. Ms. Hale indicated that there was a pent-up demand for housing in the 1940'x. New federal programs for veterans and tax deductions helped supply housing following the war. The Richfield HRA was formed in 1974 to provide affordable housing for persons with low and moderate incomes. The HRA programs include: 1. Rehabilitation Grants/Loans - Targeted to lower income families - 167 homeowners have been assisted by this program since its inception. Special Joint Meeting -4- April 2, 1984 2. MHFA Rehab Loans/Grants - Low and moderate income focus - 53 homeowners have been assisted with grants and 338 homeowners have been assis ted with loans. 3. Energy Conservation - Low interest loans, sliding scale, no income limits - 27 homeowners have been assisted since November 1984. 4. Vo-Tech Rehab or New Construction - Section 8 financial limits - 6 units provided since 1978, with CDBG funds used to acquire property. 5. Section _8 Eristint~ Rental Assistance - 30% of income is paid, and as of February, 1984, the remainder is paid by HUD - 261 elderly or families are participating in the program. Bruce Nordquist presented a 1984 perspective. 6. New Home Program - 25 units have been provided since inception using CDBG funds with a city match - 14 New Ford Towns lots have been developed and 5 units of rental housing 'provided within the Section 8 income limits.o. 7. Voluntary Acquisition - 4 properties have been acquired with CDBG funds. 8. Lyndale-Hub-Nicollet Redelo~oment Area/Coach Homes - Townhouses, 92 units - $59,000 to $92,000 selling price - Lake Shore Drive Condominium Project - 178 units with selling price of $47,000 to $93,000. 9. Richfield Towers - 149 units, elderly - 100% assisted. Mr. Nordquist raised the hypothetical question: If we were to develop housing and assistance programs, what would they be? His theorized response was that they would address the following concerns: - Stabilize the population in Richfield. - Minimize the impact of housing costs on middle income families. - The diminishing financial resources in housing finance market. - The limited land available in Richfield. Special Joint Meeting -5- April 2, 1984 - A site analysis (advantages and disadvantages) of the following sites was discussed: PADA, Cedar, 76th and 77th, 77th and Colfax, 77th and Emerson, 35-W and 494, 62nd and Queen. - Variety of income groups which have been met - we have assisted low and moderate. PADA would assist slightly higher income families. - Metro housing market. Mr. Bruce Palmborg presented the housing strategy for 1984. He initially presented a PADA chronology which included actions of the HRA,_Planning Commission , and City Council over the past two years. Mr. Palmborg described examples of housing types which could be built on the Portland Avenue site. PADA would fit into the existing value structure of existing housing on the Portland site and also within the income of Richfield residents. Mr. Tom Harms, HRA Chair, stated that Legion Lake is a valuable resource and that housing is an important addition to the community. This project is not for the low income persons, but first time, middle income homebuyers. He indicated that in his opinion this project is good for the city. He also stressed the need to move fast in order to utilize the bonding authority granted by the MHFA. Mr. Dave Dunham, Community Services Advisory Commission, stated that it appeared to him that housing is being "plopped" on the site. He was concerned about mass housing and the need to inform people residing in the area. Mr. Mike Sandahl, Community Services Advisory Commission, stated that it is not a question of whether housing is appropriate, but that a well thought out plan for all of Legion Lake is needed prior to any development occurring. Mr. Mark Ahlquist, Planning Commission Chair, stated that the Planning Commission first heard of PADA in 1982 as part of Comprehensive Plan conformance Special Joint Meeting -6- April 2, 19.84 findings. He stated that he recalled the Commissioners had deleted housing from the resolution at that time, yet housing development was still being considered for the Legion Lake site. Mr. Ahlquist also said there appeared to be a lack of communication between city staff and the HRA concerning Planning Commission actions concerning PARA. He indicated that the next time the Planning Commission heard about PADA was February, 1984. He remarked that, in his opinion, overall planning is necessary. The Comprehensive Plan should first be amended, then rezoning should occur when the developer is selected for the housing project. The City Council questioned what the best type of development for Legion bake was. Mayor Hamilton indicated that he would like to see {shat is to be planned for Legion Lake Park first. Mr. Bunce indicated that the city needs additional housing, but that DADA is not necessarily the site. He thought that additional study of the area is needed. He also indicated that he was not convinced that complete develop meat of Legion Lake was either necessary or appropriate. Mr. Ludeman stated that the PADA project, as proposed was at too high a density, and that maybe duplexes would be better for the site. He also indicated concern about where 40 to 80 children would play. A Comprehensive Plan of Legion Lake is needed, in his opinion. Mr. Kirsch also felt that a Comprehensive Plan of Legion Lake is necessary and that proposed housing density was too high. City Manager Cartwright outlined the four alternatives available for future direction on PADA. The most likely choices appeared to be to either proceed with the housing regardless of the status of park planning, or to accelerate the park planning if possible in order to fit it into the MHFA bond schedule deadline of September 1, 1984. Mr. Harms indicated it was best to speed up park planning. Commissioner Luettinger asked if a time extension could be granted. Mr. Kraft said he would look into this. Commissioner Sandahl questioned how specific the location 1 i Special Joint Meeting -7- April Z, 1984 of housing needed to be with MHFA. Mr. Fondrick expressed concern about receiving adequate information before September 1. Commissioner McDermott asked if any information could be used from the Setter Leach study. The reply was that this study was of limited value. Mayor Hamilton directed staff to consider the issue discussed and to report back in a month to all four bodies with a recommendation based on the discussion. Neighborhood notices and the impact of the decision also need to be considered by the staff. II. Zoning Hearing Officer Process Director of Community Development Dennis Kraft gave a brief history of .the joint City Council - Planning Commission Committee discussions concerning instituting a hearing officer process. The council discussed the role of the hearing officer and whether or not to proceed in developing a hearing officer process. The council directed staff to work with the city attorney's office in developing an ordinance for Planning Commission and City Council consideration to implement a zoning ordinance hearing officer process. III. Lake Shore Drive Street. Renaming Director of Community Development Dennis Kraft outlined the streets to be considered for renaming and the potential impact of the renamings. Councilman Bunce said that the request for renaming of Lake Shore Drive was to honor Fred Babcock because he was the only Richfield police officer to die in the line of duty. The council directed staff to change the name of the portion of Rae Drive between 65th Street and 66th Street to Lake Shore Drive. The council also directed the Planning Coaanission to hold a public hearing on the possible renaming of the portion of Lake Shore Drive lying south of Wood Lake and to make a recommendation to the City Council after consideration of this subject. Special Joint Meeting -8- April 2, 1984 IV. S4ecial Use Permit Amendment to Allow Professional Offices in Certain Residential Districts Planning Commission Chairman Mark Ahlquist inquired about the council action r concerning the professional office related ordinance amendment the Planning Commission had recommended for council adoption. Council members outlined their concerns that the ordinance included too many professions. The council indicated that they would discuss referring this item back to the Planning Commission for further study at their next meeting. The meeting adjourned at 10;20 p.m. Date Approved; May 14, 1984 Ronald Rankin Acting City Clerk r-,, -`J