City Council - 09/20/2022 - Workshop
APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, SEPTEMBER 20, 2022 CITY CENTER
5:00 – 6:25 PM, HERITAGE ROOMS
6:30 – 7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Ron Case, Council Members Kathy Nelson, Mark Freiberg, PG
Narayanan, and Lisa Toomey
CITY STAFF: City Manager Rick Getschow, Police Chief Matthew Sackett, Fire Chief Scott
Gerber, Public Works Director Robert Ellis, Community Development Director Julie Klima, Parks
and Recreation Director Jay Lotthammer, Administrative Services/HR Director Alecia Rose,
Communications Manager Joyce Lorenz, City Attorney Maggie Neuville, and Recorder Katie
O’Connor
Workshop - Heritage Rooms I and II (5:30)
I. STRATEGIC PLAN FOR COMMUNITY DEVELOPMENT
Klima presented on the Community Development Strategic Plan. The Strategic Plan takes a
phased approach in comparison to Aspire 2040, a 10-year plan. The Strategic Plan spans five
years. The 2023-2027 Strategic Plan has a handful of priorities, including the Race Equity
Report. Since the Council recently spent a workshop on this, there won’t be a large amount
of detail at this meeting.
Jonathan Stanley, Housing and Community Services Manager presented on Housing
priorities. Housing programs include the Housing Rehab and First Time Homebuyer Loans,
senior home maintenance programs, Community Land Trust Partnership with the West
Hennepin Affordable Housing Land Trust (WHAHLT) homes in Eden Prairie, Housing
Improvement Areas (HIAs), and Property Managers Collaborative. There were 17 housing
rehab loans and three first time homebuyer loans in 2021. Case inquired what is typical of
numbers. Stanley replied due to a backlog of projects with supply chain issues, in 2023 there
will likely be about 30 home rehab loans and 10 first time homebuyer loans.
Stanley stated Community Development Block Grant (CDBG) funds and general fund
dollars are given to Senior Community Services HOME Program to assist with projects
including basic home maintenance, shoveling services, and sprucing up of properties. There
were three senior City grants given in 2021, up to $5,000 each, for home maintenance such
as replacing a furnace. This is one service Staff would like to advertise more. The
Community Land Trust Partnership with WHAHLT assisted with 18 homes. Staff continue
to find it difficult to fund with CDBG as there are parameters of assisting up to 50 percent of
area median income (AMI). AMI in 2022 was $118,200. At 50 percent AMI for a household
of four is earning $16,000. Housing Improvement Areas (HIAs) is also offered but it requires
City Council Workshop Minutes
September 20, 2022
Page 2
a supermajority to agree on being specially assessed for an improvement. This is for common
interest communities or townhome developments. Another initiative Staff have spent some
time on recently is the property managers collaborative. Staff has had a variety of meetings to
work on establishing good relationships. Staff are working on putting together a more
professional newsletter to send out communications on a less frequent basis. There would be
quarterly meetings.
Stanley stated the inclusionary housing ordinance has been going well. When using tax
increment financing (TIF), Staff have been able to have an offering of 20 percent of units at
or below 50 percent (AMI) with a mandated five percent at or below 80 percent AMI. The 80
percent AMI or below is in perpetuity. When the TIF expires, those units will continue to be
affordable. There are a handful of affordable housing opportunity sites: a parcel on Venture
Lane, transit-oriented development (TOD) opportunity sites, parcels on the northeast corner
of Flying Cloud Drive and College View Drive, and possible church sites. The Metropolitan
Council has an expectation of number of affordable units produced based on the regional
allocation of affordable housing. By 2030, Metropolitan Council’s hope is for Eden Prairie to
produce 1,408 affordable units. Since 2019, there have been 391 affordable units produced.
About 24 percent of housing development has been affordable since 2019. The bulk of the
need is at 30 percent AMI. It is extremely challenging to produce. 57 percent of the housing
need, according to Metropolitan Council, is at or below 30 percent. Currently about seven
percent of units being produced are at or below 30 percent AMI. The 50 percent AMI units
have been achieved almost exclusively by TIF. Some have been negotiated outside of TIF
such as Eden Prairie Senior Living and Prairie Bluffs Senior Living. 60 percent AMI units
are also lower in number because it is the low-income housing tax credit threshold.
Nelson inquired if there have been more perpetually affordable units with TIF. Stanley
replied those units are expected to be in perpetuity. The Inclusionary Housing Policy gives
options for how many units at a specific percentage of AMI. When using TIF, Staff are then
asking for the additional five percent of units in perpetuity. There are approximately over 900
other income restricted units in Eden Prairie. The total number of affordable units in the City
is around 1,200. Some additional housing initiatives are creating a naturally occurring
affordable housing (NOAH) inventory list and action plan. The is interest in preserving
affordable properties.
Freiberg noted Saint Louis Park had a lot of affordable properties, and many of those have
been rebuilt or flipped. Case inquired if NOAH properties are categorized at a higher rate
after a 20 percent increase in assessed value. Stanley replied NOAH is defined differently
here than it is throughout the region. Klima added Metropolitan Council will define NOAH,
but the City could create their own definition for the purposes of the action plan to preserve
additional properties.
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September 20, 2022
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Nelson inquired if homes could be classified to maintain their affordability. Stanley replied
there currently is not a working model for single family homes. The funding has been
exclusively for multifamily homes to update and maintain affordability. Case added he
believes Minnetonka has worked on a program and funding to keep people, specifically
seniors, in their homes. Getschow noted many cities promote the WHAHLT land trust
program for maintaining affordability of single-family homes. Klima added with newly
acquired software Staff can more actively evaluate current rent levels and properties for sale
that are affordable.
Nelson noted large employers may have an interest in supplying housing opportunities for
their employees. Case added Illinois is helping the Black community with contributions
towards down payments. Narayanan added in California school districts are looking at
managing and owning multifamily housing to rent it out to teachers. Stanley stated employer
sponsored housing is promising. Polaris is an example in greater Minnesota. Narayanan
added this is very common practice in India and China.
Stanley stated there are three project-based section 8 properties in the City. Case inquired
how many units. Stanley replied about 350. There are about 250 housing choice vouchers,
and the remaining are project-based.
Narayanan asked if there is data available on the rate of people who over time increase their
income and no longer need a voucher. Stanley replied the data is not available. A voucher
can be used on a market rate unit, but project-based has income restrictions. Usually once a
property is project-based, it remains so. There are also a few low-income housing, tax credit
properties. Those have a 30-year affordability term. A couple properties will likely be
expiring soon, so a decision would need to be made on how to proceed.
Toomey inquired how long of a term Edendale has left on their project-based section 8 status
and if there is a possibility their status would change. Stanley replied to be project-based
section 8 housing they enter into a housing assistance payment contract with housing and
urban development (HUD). For a certain period of time, they will guarantee low-income
housing. He believes Edendale has a five-year contract. Toomey inquired if there is anything
the City can do to maintain those low income units. Klima responded part of the action plan
would be to have a plan in place. Case noted it would be helpful to know which places accept
vouchers.
Nelson inquired if 30 percent AMI units do tend to be utilized by the workforce. Stanley
replied yes. Case inquired if a voucher could be used towards an affordable unit at 80 percent
AMI. Stanley replied yes. There are thresholds set for the maximum rent that can be paid
with a voucher.
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September 20, 2022
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Stanley stated another initiative Staff would like to work on is to promote tenant fair housing
materials, a recommendation of the Housing Task Force. They also would like to develop a
partnership with Habitat for Humanity. HUD announced funding for aging while in place to
help seniors continue to live in their homes. New funds from the Metropolitan Council have
become available for affordable single-family housing in high-cost communities. There are
hopes to put more funds towards community land trust homes.
David Lindahl, Economic Development Manager, reviewed economic development
programs. Locally there is the Realtor’s Forum, Eden Prairie High School (EPHS)/Eden
Prairie Chamber Student Career Expo, I-494 Corridor Commission, and business
communications and meet and greets. Regionally the City is part of Open to Business, a
business advisory program the City shares cost with Hennepin County. Elevate Business is
fairly new and has more of a focus with Black, Indigenous, and people of color (BIPOC).
Narayanan noted the business town hall was successful and is something that should happen
regularly.
Lindahl stated another initiative, started by the Mayor, is the Innovation Sandbox partnering
with the schools. This would be located at EPHS, partnering with the Chamber and 1Million
Cups, and would focus on entrepreneurship with youth and community members. Staff
continue to support streetscape/pedestrian/light rail transit (LRT) improvements as they
encourage economic development. Economic development will help finance some of the
Town Center Flying Red Horse monument project as it supports wayfinding and branding.
Klima presented on redevelopment in the City and transit oriented development (TOD).
Focusing on TOD by the City West Station the Optum parcel Shady Oak Center are guided
TOD in Aspire 2040. It is anticipated there would be some sort of mixed-use development.
The American Investors Office has had inquires for redevelopment. There could be potential
for multifamily. The Golden Triangle Station has a recently approved development, GTS
Housing. The TAGS property and two properties north of GTS Housing are guided TOD in
Aspire 2040. Staff anticipate ground floor retail with residential above on the TAGS
property. The northern properties are expected to be geared towards TOD employment. In
regard to Town Center Station, Emerson is guided for TOD. The remainder of the
surrounding area are guided town center. There could be redevelopment with ground floor
retail and residential above. This would take advantage of some of the lake views. Toomey
inquired what is currently on the site. Klima replied it is largely vacant. Emerson has a
pavilion. Some of the area would be utilized as park and open space. SouthWest Station TOD
already exists at Elevate. Other properties could request TOD guiding.
Lindahl stated the Town Center Plan emerged from the Major Center Area (MCA) study in
2006. Staff are still committed to the downtown, main street concept. Staff have had
conversations with Bowlero about selling their air rights to build upright. The owner of Petco
and Champps is interested in redevelopment.
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September 20, 2022
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Narayanan inquired about the business community and if they have recovered from COVID.
Lindahl replied the City has experienced less impacts overall compared to other cities. Many
of the restaurants are still open. Narayanan inquired about commercial properties and office
space with people working from home. Lindahl replied the City is generally doing very well
with minimal vacancies.
Klima stated in regard to Mixed Use, Staff is working on drafting a new guiding code in
amended areas and to bring it to Council in early 2023. Eden Prairie Center is looking into
long term uses, consistent with Aspire 2040. In regard to infill sites, these properties are
expected to develop more quickly. Marshall Farm is guided for low density residential. The
southern corner will have little to no development due to the bluffs. There have not been any
development inquiries. Case asked if Staff get proactive with these possible development
sites. Klima responded Staff have responded to questions from the owners. Conversations
will be ongoing as inquiries come in.
Open Podium - Council Chamber (6:30)
II. OPEN PODIUM
III. ADJOURNMENT