City Council - 09/17/2019 - Workshop
APPROVED MINUTES
CITY COUNCIL WORKSHOP & OPEN PODIUM
TUESDAY, SEPTEMBER 17, 2019 CITY CENTER
5:00 – 6:25 PM, HERITAGE ROOMS
6:30 – 7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Ron Case, Council Members Brad Aho, Mark Freiberg, PG
Narayanan, and Kathy Nelson
CITY STAFF: City Manager Rick Getschow, Housing and Community Services Manager
Jonathan Stanley, Police Chief Greg Weber, Fire Chief Scott Gerber, Public Works Director Robert
Ellis, Housing and Community Services Manager Jonathan Stanley, City Planner Julie Klima, Parks
and Recreation Director Jay Lotthammer, Administrative Services/HR Director Alecia Rose, City
Attorney Ric Rosow, and Recorder Kyle Salage.
GUESTS: Housing Task Force Members Joan Howe-Pullis (Chair), Carol Bomben, Terry Farley,
Marlene Fischer, and Joan Palmquist
Workshop - Heritage Rooms I and II (5:30)
I. HOUSING TASK FORCE
Case called the workshop to order at 5:31 p.m. He then led introductions of City Council,
City staff, and the Housing Task Force members in attendance.
Getschow noted the Task Force has only had four (4) meetings so far, and this
presentation is not the end or culmination of their work as an authorized body.
Howe-Pullis summarized the current status of the Task Force, what topics it has covered
so far, what guests have attended the meetings, and how the members have engaged thus
far. She stated the purpose of this presentation will be to give the Council a preliminary
recommendation on what the Task Force wishes to have adopted as a formal inclusionary
housing policy.
Stanley provided an explanation of what an inclusionary housing policy is. He then gave
an overview of how the City has incorporated inclusionary housing policy informally as a
practice in its more recent negotiation with developers. The Task Force supports adopting
a formal policy for both consistency and clear expectations of developers when they
come into the City. He then outlined the parameters of inclusionary housing policies been
set by neighboring cities, noting Saint Louis Park has a policy closest to what is being
recommended. However, he added the request for affordability in perpetuity is not a
common policy element. Aho asked for clarification as to whether developers would be
required to select at least one of the affordability options, and Stanley confirmed this.
Freiberg asked whether the City has looked at the policies of Minnetonka or Chanhassen.
Stanley indicated these cities have not been looked at for comparison, but clarified that
Minnetonka is only just now starting to work on developing one.
City Council Workshop Minutes
September 17, 2019
Page 2
Stanley noted the Task Force recommends the City include the option of an in lieu
payment, so as to ensure that all developers are contributing to affordability, whether
directly or indirectly. Aho inquired as to how the money from those payments would be
used. Stanley indicated the Task Force recommends this money go into an affordable
housing land trust, which would need to be established and defined by the City. This
definition would state exactly what the funds could go towards.
Aho noted the Twin Cities metropolitan area generally has a higher cost of development
than Chicago or the state of Wisconsin, primarily because of regulations imposed by the
state. Stanley stated a balance between regulation and development opportunity. Case
added perhaps the cost of development could be due to the supply of developable land.
He requested follow-up in the future on this question of what is driving the cost of
development locally. Getschow noted the median home value in the City has surpassed
$400,000. Joan stated that the Task Force wants accountability in both the ownership and
rental housing realms, which is why affordability requirements have been recommended
for both.
Nelson noted developers in Edina have consistently paid the in lieu fee, but the City has
not gained enough income from these payments to actually make strides towards creating
affordability there.
Getschow asked for clarification on the Task Force’s reasoning behind the
recommendation to have the development size threshold set at ten (10) units. Narayanan
suggested perhaps even developments below the threshold should be asked to pay some
fee towards the affordable housing land trust, if the City is to be consistent with having
all developer contribute in some way. Aho stated it will be very important to set clear
parameters for how money in such a trust is used. Naryanan suggested soliciting feedback
from residents regarding the concept of in lieu payments and an affordable housing land
trust. Getschow noted it is already under considering to bring this discussion to the real
estate and development community. Case added cities can inadvertently disincentive
development when you tighten the lots of available land. He noted the City did not have
an apartment unit built within its limits between 2005 and 2015. Nelson indicated she
would prefer the development size threshold to be fifteen (15) rather than ten (10).
Case inquired as to what the primary reason is to not require units to be affordable in
perpetuity. Aho noted the City already renews TIF districts on occasion, which is
essentially creating affordability in perpetuity because of the requirements associated
with receiving TIF financing. Getschow stated developers are generally more willing to
provide affordability in perpetuity when they are given incentives. Nelson raised the
question of whether developers have any incentive to improve or adequately maintain
affordable units. Getschow stated the problem of getting developers to improve units is a
general one, not one specific to affordable units or homes. Case requested follow-up on
the benefits and risk of requiring affordability in perpetuity.
Stanley outlined the remainder of the Task Force’s policy element recommendations, as
well as the available cost offset options. Howe-Pullis noted some cost offset options are
already perpetual by definition. She then described upcoming plans for the Task Force.
City Council Workshop Minutes
September 17, 2019
Page 3
Case requested follow-up regarding the available tenant protection policies are available,
what is being implemented in neighboring cities, and what is feasible given the City’s
housing and economic climate. Freiberg suggested it may be best to add protection
policies and affordability policies elements gradually, rather than all at once. Policies
requiring significant change can be hard to sell to the public and the development
community. Aho reiterated the state already has many regulations in place.
Nelson noted the current inspection policy is to thoroughly check units every five (5)
years and ensure everything is in good working order. She raised the question of whether
these inspections also include elevators. Getschow indicated the City’s inspectors would
be able to provide such inspection process details. Narayanan suggested perhaps
mandatory inspections could be made more frequent than every five (5) years. Getschow
noted inspections are also conducted on a by-complaint basis, so they are generally more
frequent than this. He then inquired why Chanhassen and Victoria have yet to establish
inclusionary housing policies. Howe-Pullis indicated this is likely because they still have
plenty of available land, and their housing is not nearly as dense. Nelson added there is
still a demand for their larger, high-price lots, so the need for such policies is not as
pressing. Narayanan asked whether the City and/or Task Force has yet to get feedback
from developers about the proposed policy elements. Howe-Pullis indicated the
development community will be consulted. Palmquist stated the goal of the policy is to
not only create affordability, but preserve it. Howe-Pullis added a policy will make
discussions with developers on this matter more straightforward, and there will no longer
need to be negotiations to include affordable units. Aho suggested there should still be
some flexibility incorporated, but a policy will be beneficial for consistency and
commitment to the issue. Farley added the Task Force is sensitive to both the needs of
developers, as well as the needs for the inclusionary housing market.
Open Podium - Council Chamber (6:30)
II. OPEN PODIUM
A. CURT CONNAUGHTY – EDEN PRAIRIE LIONS CLUB SCHOONER
DAYS PARADE
Curt Connaughty, 11860 Sunnybrook Road, representative of the Eden Prairie
Lions Club. Connaughty gave a presentation to the Council regarding the Lions
Club’s proposed parade for the 2020 Schooner Days celebration. The proposed
parade would take place on the corresponding Saturday, and it would begin and
end at Eden Prairie high school. The Lions Club would seek to involve,
community organizations, residential communities, and the diverse groups of the
City.
III. ADJOURNMENT