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Conservation Commission - 12/12/2017 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, DECEMBER 12, 2017 CITY CENTER 5:00—6:25 PM, HERITAGE ROOMS 6:30—7:00 PM, COUNCIL CHAMBER CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher Wickstrom, Kathy Nelson, and Ron Case PLANNING COMMISSION: Vice Chair Ed Farr, Michael DeSanctis, Mark Freiberg, Ann Higgins, John Kirk, and Charles Weber CITY STAFF: City Manager Rick Getschow, Police Chief James DeMann, Fire Chief George Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks and Recreation Director Jay Lotthammer, Communications Manager Joyce Lorenz, City Planner Julie Klima, City Attorney Ric Rosow, and Recorder Cynthia Harder GUESTS: John Houseal, Nik Davis, and Sean Tapia from Houseal Lavigne Associates Workshop - Heritage Rooms I and H(5:30) I. ASPIRE EDEN PRAIRIE 2040 Mayor Tyra-Lukens called the workshop to order at 5:35 p.m. Council Member Butcher- Wickstrom was absent. Julie Klima, City Planner, announced John Houseal, Cofounder of Houseal Lavigne Associates, would be sharing new information on the Aspire Eden Prairie 2040 Plan that staff and the consulting team have been working on since the last update was given during September's workshop. Houseal introduced Sean Tapia and Nik Davis who were also in attendance from Houseal Lavigne. In September, Houseal's team reviewed the Plan's direction with focus groups, met with City staff to discuss initial findings, and met with Council at a workshop to discuss the anticipated direction of plan recommendations. Since September, Houseal said his team has been developing a detailed Housing Study and City staff has been reviewing draft Plan chapters. He said his team has also been reviewing transportation-related recommendations and exploring options for mixed-use development (especially within TOD, Town Center, and Martin Drive areas). He explained they have been identifying new land use designations for future development and some land use may change with the future of the Plan since it goes out until 2040. He said his team has been drafting best practices for Sustainability, Community Health, and Equity and callouts for review by staff to be integrated throughout the Plan. Tyra-Lukens asked what was meant by callouts. Houseal clarified callouts were topics not detailed enough to have an entire chapter, but important enough to be noted in bold font or City Council Workshop Minutes December 12, 2017 Page 2 different colored font to draw the reader's attention. He stated these drafts will be updated as necessary based on staff feedback. Houseal reviewed the Housing Study. He said the heart and soul of a comprehensive plan is the Land Use Plan and the Housing Study helped to determine how to use land in the future. He noted Met Council has growth estimates to 2040 and has several requirements to be addressed in City plans to show how the City will house the population growth over the next 20+ years. He said his team is currently refining Eden Prairie Aspire 2040's Housing Chapter to incorporate staff feedback and Met Council requirements. He noted findings from an economic study are being integrated into the housing study to ensure housing recommendations are actually viable. Houseal explained the City's Housing Study was completed through online surveys and focus groups with 184 millennials and 55 empty nesters. Nelson asked who qualifies as a millennial. Tapia replied a millennial is someone born between 1982 and 2000. Houseal said they found out where millennials and empty nesters currently live and why, and also examined where they plan to live in ten years. Houseal first summarized the millennial survey results. He found that most millennials (66%) live in single-family detached homes and two-thirds own their housing unit. Aho asked if this is typical across the county and the state, or if this is unique to Eden Prairie. Houseal replied there is not a set standard and people typically live in what is readily available to them. He continued that people choose to buy or rent based on the local point of entry for purchase price or rental price and so many Eden Prairie residents may choose detached single-family homes because there are more single-family homes on the market than other home types. He said it is important to note the top three residence factors for millennials were: proximity to job or school, within budget, and located in a safe environment. In ten years, Houseal said 88% of the millennials surveyed responded they envision themselves living in a single-family detached home, 92% envision themselves owning their preferred dwelling unit type, and 82% envision themselves having children. Next, Houseal summarized the empty nesters survey, finding most live in single-family detached homes and 96% own their housing unit. He noted 96% is a very high number of home owning empty nesters as he sees more empty nesters renting in other communities. Empty nesters identified the same top three residence factors as millennials, but in a different order: within budget, located in a safe neighborhood, and proximity to job or school. He thought it was interesting millennials and empty nesters are looking for the same things now more than ever. Case asked how samples were selected. Klima replied the City put out a call though social media and the City website to make it known we were looking for input on these items and asking people for their time to attend a focus group. She said if those interested were available for the in-person focus group, they attended and if they could not attend then the online survey was given to them. Houseal noted empty nesters were much more diversified when it came to where they envisioned themselves living in ten years: 25% single-family detached, 25% townhomes, 22% weren't sure, and 9% condominiums. The rest of the responses were either senior City Council Workshop Minutes December 12, 2017 Page 3 living or `other' category. The most important factors for future residence to empty nesters were: close to family/friends, accessibility to fit needs, and maintenance free. Houseal noted they performed an analysis of about 12 different income levels and found there is an undersupply of housing options for both renter-occupied and owner-occupied households in both lower-income and upper-income ranges. Case asked how upper- income, owner-occupied households are considered an unmet demand. Houseal said this is the number of upper-income residents looking for housing compared to the number of high-value homes for sale in the City and noted this is not necessarily a problem to fix. Jeremiah added upper-income residents have more discretionary income but it doesn't mean they want or intend to spend more on housing. She also noted there tends to be low turnover in upper-end homes. Houseal mentioned there is a unique distinction between the lower-income and upper-income shortages in that lower-income levels cannot "move up" and buy homes considered moderate-level while upper-income levels can downsize or buy at a more moderate price point. Houseal said Met Council estimates nearly 7,000 more owner-occupied units will be needed in Eden Prairie by 2040. This does not include the increased number of rental units also needed by 2040. Tapia said this data comes from Met Council's regional household projections, along with Eden Prairie's existing housing stock and past trends. Aho said Met Council seems to regularly project higher growth than what the City anticipates. Houseal said this is common when regional NPOs project growth because they are only looking at regional need. Houseal said they are not considering the challenges of meeting the regional needs locally given a community's constraints, such as already being built up or having land costs too high for affordable housing. Houseal stated many communities are looking to vertical condos with mixed-use to meet growth. For Eden Prairie, he said a high-density, mixed-use category is being considered for land that will be redeveloped in the future. They are also looking into a new land use designation for the Eden Prairie Mall to accommodate integration of uses such as hotel, office, multi-family, entertainment. Additionally, they are exploring options to better specify preferred uses and development characteristics within the TOD, Town Center, and Martin Drive areas. Going forward, Houseal said his team will make revisions based on Council workshop and staff comments, draft the final Plan, and then coordinate with Eden Prairie staff, SRF, and Met Council to refine Plan recommendations. He said his team will attend Council workshop sessions in early 2018 to review the final draft Plan, and then the public hearing and adoption process should occur in Summer or Fall 2018. Jeremiah noted the Planning Commission will be invited to future workshops. Aho asked how closely Met Council projections and goals are going to align with Eden Prairie's reality. Houseal said Eden Prairie's future perhaps is closer to Met Council than it seems. He said we will do what's right for Eden Prairie and see where we land according to Met Council's goal. Case said he would like to see Met Council's expectations noted in the land use plan along with a description of what Eden Prairie realistically thinks it could do while preserving a City Council Workshop Minutes December 12, 2017 Page 4 high quality of life. Houseal agreed and said the goal is not to merely meet Met Council's number. He said Met Council's projected growth highlights regional needs, but they know there are limitations. Nelson said the City has been mindful of not building next to homes if the new building will devalue the existing home. Houseal said the City is in a position to do some new, creative things in areas where it will be welcomed and not fought because it will add to Eden Prairie's appeal, not detract from it. Tyra-Lukens asked if builders are taking into consideration making a new building accessible so someone can live in the same place for many decades. Houseal said mindful developers are doing more of this,but it is not mandated in a local building code. Open Podium - Council Chamber (6:30) II. OPEN PODIUM III. ADJOURNMENT