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City Council - 10/02/2018 - Workshop APPROVED MINUTES CITY COUNCIL WORKSHOP & OPEN PODIUM TUESDAY, OCTOBER 2, 2018 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, Kathy Nelson, and Ron Case 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 Attorney Ric Rosow, and Recorder Katie O'Connor GUESTS: Gordon Hughes, Cathy Capone Bennett, Max Musicant, Robyn Bipes-Timm, Phil Cattanach, and Stacie Kvilvang Workshop - Heritage Rooms I and H(5:00) I. URBAN LAND INSTITUTE OF MN DEVELOPMENT PANEL Council Member Butcher Wickstrom was absent. The presenters were Gordon Hughes in Advisory Services for Urban Land Institute of Minnesota (ULI MN) and Cathy Capone Bennett in Housing Initiatives for ULI MN. The panel included Robyn Bipes-Timm Vice President of Twin Cities Habitat for Humanity, Phil Cattanach Director Real Estate Development for Opus Development Company, Stacie Kvilvang Senior Municipal Advisor/Director of Ehlers, Max Musicant Founder and Principal of The Musicant Group, Gordon Hughes presented on the four major change drivers influencing the country and region: demographics, market forces, technology, and resilient infrastructures. Demographic shifts are affected by generational shifts, aging population, and cultural diversity. Statewide, most new household growth will be ages 65 or older. This can be attributed to longer life expectancy and the decline in household size. Additionally, Minnesota's communities of color experience significant disparities. More than 40 percent of people of color are spending more than 30 percent of their income on housing. Hughes stated in regards to market forces, there are impacts to our community due to the types of housing preferred by different generations and housing costs and the mismatch of jobs available. The number one attribute that people are looking for in choosing a community is the availability and affordability of housing. A large portion of people in the region have been at wages that struggle to meet housing costs where the jobs are located. There is a projected shortfall of 100,000 plus skilled workers by 2020 due to baby boomer retirements, stagnant labor force growth, and challenge recruiting to the region. E-commerce has changed the retail. Amazon sales alone may account for more than half of the e-commerce growth. City Council Workshop Minutes October 2, 2018 Page 2 New and developing technologies are changing and challenging business models. Access is becoming more important than ownership. Autonomous vehicles will create land use opportunities and challenges due to a large percent of space devoted to parking. There are four times as many parking spaces as cars in America. Hughes stated in regards to resilient infrastructure, needs for facilities have been changing due to the rise in e-commerce. This has left some cities with aging infrastructure to be redeveloped. Green space and connectivity are highly desirable for attracting development. Cathy Capone Bennett stated Eden Prairie had about four percent growth between 2010 and 2016. Since 2000 Eden Prairie's cultural diversity has expanded. It's estimated by 2035 about 35 percent of the Twin Cities population will be non-white. In regards to housing, 70 percent of residents are homeowners, 26 percent of residents live in rentals, and about three percent of properties are vacant. Eden Prairie has a mix of types of housing. Based on the Relators Association, the year to date median sales price is about$342,000. The median gross rent according to Trulia is $2,200, and vacancy rates continue to decline. Only nine percent of the housing is affordable for an income $50,000 and lower. In regards to employment and labor, there are 62,844 jobs in Eden Prairie with diverse fields. Tyra-Lukens inquired if those are jobs within Eden Prairie or jobs Eden Prairie residents hold. Capone Bennett replied they are jobs employers within Eden Prairie offer. About 11 percent of these jobs are held by residents, less than the 15 percent average. Council Member Aho inquired what factors impact this number. Capone Bennett responded there are many theories. It could be due to types of jobs available in the City,personal preference, or related to the affordability of housing within the community. The data is determined by employers who contribute to employment taxes, and the data may not include self-employment. Hughes asked panelists what Eden Prairie can do to enhance its attractiveness to generation y and baby boomer populations. Musicant responded both populations are in transition. It has become increasingly important to provide high-quality experiences for socializing and wellness. People pay for experiences and opportunities to socialize, and they want to spend their time at one-drive locations. One-drive locations can attract people,housing, and businesses. Consider the connecting walking paths as places and experiences as well. These areas could be highlighted with programing and regularly occurring events. Ten different types of businesses and entertainment in one location is a good amount to aim for. Planning Commissioner Mette inquired of examples. Musicant responded a recent shopping center redevelopment in Rochester by United Properties created high quality waiting environments and curb appeal with benches, lawn games, a dog run, bike lane, and programming with a concert series. Planning Commissioner DeSanctis added he has noticed gathering spaces and entertainment centered around fountains and sculptures. Musicant added people value natural waters and loops that allow for a continually new experience. Hughes asked panelists what the City can do to promote a full range of housing choices. Bipes-Timm stated Habitat for Humanity has done research on home ownership and trends. In the Twin Cities, 35 percent of homebuyers are first-time homebuyers. For subsequent moves, homebuyers tend to stay within a 12 mile radius of their first home. People, on average, tend to stay in their homes for 7 to 15 years. About 11 percent are seeking multi- City Council Workshop Minutes October 2, 2018 Page 3 generational housing. About 25 percent of homebuyers ages 35 to 50 are people of color. People are beginning to buy their first homes in their thirties, and much of this is attributed to student debt. Communities want gathering space that is versatile, food options, and pet- friendly locations. People want to be able to see themselves in the community. Hughes inquired if the generation y population still desires home ownership. Bipes-Timm stated Minnesota has a 76 percent rate of home ownership and a 46 percent rate of home ownership for people of color. The biggest barrier to this generation is student debt, and sometimes they continue to rent for job mobility. Hughes inquired of the cutting edge developments for sites similar to Eden Prairie Mall. Cattanach stated parking is a barrier for developers. Additional opportunities for foot traffic need to be created, such as cohabitating with health care industries. This would help utilize parking. Additionally, amenities such as food trucks are considered for common areas. Many business owners are repurposing their space to make it an enjoyable environment, including pet-friendly work spaces. This helps retain employees. Being creative with development and zoning codes that are non-traditional is a better alternative to vacant sites. Tyra-Lukens stated there are two opposing priorities, a need for less parking but vendors are pushing for more parking. Cattanach responded it may need to be demonstrated that they can successfully provide their services without more parking spaces. Kvilvang added it's a delicate balance to lower the parking ratio. Forward vision for area malls is considering housing and hotel opportunities, food vendors, and entertainment. Tyra-Lukens noted the east side of Eden Prairie Mall is not welcoming for pedestrians. Musicant stated one thing the City can do with code is require sidewalk pathways between property types. Aho stated we could consider work places and housing near the mall, and he inquired what the City is missing to make it better. Musicant suggested regulating design and not use. Some examples to consider at the mall are hospitality, offices, residential, and medical. Kvilvang added connecting medical creates a one-stop location. Council Member Nelson inquired how one should account for seniors and large spaces that require a lot of walking. Musicant responded it would be successful to have at least one adjacent use to senior centers that is complimentary. Kvilvang added seniors want the same amenities as other generations. There are many varying levels of physical abilities, so they cannot be categorized in one way. Hughes asked panelists what distinguishes successful communities with a great environment for development. Kvilvang responded retain amenities such as schools, entertainment, retail, parks, and trails. Consider first impressions people get from the City as well as the Planning Commission and Council. A lot of communities are revising parking requirements and looking ahead to one parking stall per unit. Consider how the City can be more innovative. Tyra-Lukens inquired if there is any one thing Eden Prairie needs to do to be more open to development and to increase attractiveness to younger generations. Kvilvang replied to continue having these conversations. Musicant stated to allow people to try small ventures and pilots, and that could unlock a lot of potential and resources. Downtown Robbinsdale began transforming their downtown with allowing outdoor seating for Wuollets Bakery, and City Council Workshop Minutes October 2, 2018 Page 4 that lead to lawn games, a little free library, and a local gym hosting outdoor yoga. Don't overcapitalize and under operate. Tyra-Lukens noted many communities have raised the age of tobacco sales to people over 21. She would like staff to research and present ways this might be incorporated in the City. Open Podium - Council Chamber (6:30) II. OPEN PODIUM A. CHERI WHITE—KOPESKY DEVELOPMENT TRAIL Cheri White, 18281 Dove Court, stated they are concerned about safety with the trail connecting to Dell Road. The path will create access to people not part of the neighborhood and is not necessary. Dove Court does not provide access to the trail system. They are opposed to the trail and to leaving the path unpaved. B. VICKY GOLDEN SMITH— BROADMOOR APARTMENT GROUP Vicky Golden Smith, 635 Prairie Center Drive, stated thanks to Presbyterian homes, the developer, Council and staff for their support in extending the end of the lease from March 31 to June 30. Children can finish out the school year in their current schools without the worry of moving. C. STEVE DAVIES —KOPESKY DEVELOPMENT TRAIL Steve Davies, 18290 Dove Court, stated with the five lane traffic on Dell Road, the trail is not an appropriate area to direct foot traffic. III. ADJOURNMENT