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03/08/2011 - City Council SpecialAGENDA SPECIAL CITY COUNCIL RETREAT TUESDAY, MARCH 8, 2011 5:30 P.M. EAGAN ROOM - EAGAN MUNICIPAL CENTER I. ROLL CALL AND ADOPTION OF AGENDA II. VISITORS TO BE HEARD P. 1 III. OPPORTUNITY CITY UPDATE P 3 IV. OVERVIEW OF MSP REGIONAL ECONOMIC DEVELOPMENT PARTNERSHIP / ITASCA PROJECT V. REVIEW ALTERNATIVES FOR TRUNK HIGHWAY 77 MANAGED 4 LANE STUDY PA3 VI. MNDOT SOUND WALLS: UPDATE, PROPOSAL AND DESIGN ELEMENTS VII. OTHER BUSINESS VIII. ADJOURN Agenda Information Memo Joint Eagan City Council/APC Workshop March 8, 2011 III. FINAL REPORT RCM/ULI OPPORTUNITY CITY PROJECT — CITY OF EAGAN DIRECTION TO BE CONSIDERED: To receive a staff presentation regarding The Opportunity City Summary Report and to provide further staff direction regarding desired next steps. ■ The City Council meets jointly with its commissions annually; the Advisory Planning Commission will meet with the Council Tuesday night. ■ The goal for this evening is for the City Council to establish a short list of key points and set priorities regarding the Opportunity City Report FACTS: ➢ The Urban Land Institute and Regional Council of Mayors developed the Opportunity City Program as a tool for cities interested in receiving assistance in pursuing their goal of supporting a full range of housing choices in suburban cities for a stronger, more prosperous region. ➢ The Opportunity City project team consists of Cathy Bennett, Dennis Welsch and John Carpenter. In consideration of the role the Dakota County CDA plays in coordinating housing programs for Dakota County cities, Dan Rogness of the CDA staff also participated with City staff and the project team. ➢ During the Opportunity City process, the City Council received information and updates pertaining to Community Change Data, Eagan Housing Audit and the ULI Site Evaluation Panel's review of the Central Commons, Cliff Road Commons and Cedar Grove Commons Special Areas and developed the Site Evaluation Report. ➢ Presentations were made to the City Council on September 14, 2010 and January 11, 2011 and to the Advisory Planning Commission on December 16, 2010. All of the input and direction provided by the Council and APC is reflected in the Summary Report. ➢ City staff will provide an overview of the Summary Report at Tuesday's meeting. City Council and APC discussion will be encouraged and staff will ultimately look for Council direction on next steps. Some of the report recommendations touch on items discussed/considered in previous years (i.e. rental housing registration) and some may sound familiar to the City Council but have not been considered previously (i.e. Accessory Dwelling Units). ➢ Following review and discussion of the Housing Audit, if time permits, staff would like the City Council and APC to review the Professional Site Review Team recommendations on the selected Special Areas. ATTACHMENTS: (2) PowerPoint presentation on pages through I� Opportunity City Program Summary Report and appendices, attached without page number Community Change of a Full Range of osing cno,ce5 March 8, 2011 City Council /APC Work Session Modifications & Additions 05 a • Acceptance of Opportunity Cities Report by the Council. • Prioritize recommendations that will have the greatest impact on housing goals — First Thing and First Things. • Implement priority recommendations and revisit priorities periodically. • Evaluate the need to amend the City's Comprehensive Plan for specific priorities. ➢ Loss of Young Households ➢ Low Turnover of Aging Adults • Consider Long Term Impact on: ■ Schools ■ City Services — Parks ■ Retail & Commercial Market S ➢ Enhance neighborhood preservation ➢Address aging in place ➢ Attract /retain young households ➢ Increase Connectivity ➢ Continue Strong Partnership with CDA 0 Enhance Neighborhood Preservation ➢ Housing Renovation Loan Program • Consider additional income levels ➢ Rental Registration /Licensing ➢ Inspection Before Sale of Home Evaluate costs /benefits ➢ Designation of Neighborhoods ➢ Continue use of HIA Implement Design for a Lifetime y Support Universal Design Advocate for Expanded DARTS Household Services Attract /Retain Young Households Build Information Partnerships — Schools /Faith -based Groups /Realtors Senior Housing Regeneration Evaluate Options for Accessory Dwelling Units Support New Workforce Housing y Support New Lifestyle Rental 5 Increase Connectivity Overall Strategies BE 0 v Expand Broadband Capacity Support Living Closer to Work • Proactive Partnerships with Chamber & Businesses Increase Connectivity New Housing Strategies - I Require mix of housing options • Consider including in TIF Policy v Support ULI MN Community Site Principles • Housing Choice • Community Image • Sense of Place • Housing /Jobs Balance • Walkable Neighborhoods • Access to Transportation R Increase Connectivity New Housing Strategies - II Support ULI MN Community Site Principles (cont) • Mix of Land Uses • Compact Building Design • Efficient Use of Infrastructure • Long Term Success • Energy Efficiency • Community Collaboration ■ Increase Connectivity Capitalize on Transportation Investments G. Work with Dakota County to connect land use and transportation and transit planning • 40% Eagan Working Residents Commute • Available Transit -Community Asset • Opportunity for Higher Density Connected Places Increase Connectivity Rethink Local Street Design Adopt Complete Street Ordinance • Supports Connectivity, walk ability, bike ability ➢ Connect Cul -De -Sac Neighborhoods Continue Strong +Mika Partnership hakaa Cou i} with Dakota County CDA Annual Levy meets Range of Needs New Affordable Housing supports City Goals Annual Housing Forum — Align Goals with County and Area Cities 12 ■ • Acceptance of Opportunity Cities Report by the Council. • Prioritize recommendations that will have the greatest impact on housing goals — First Thing and First Things. • Implement priority recommendations and revisit priorities periodically. • Evaluate the need to amend the City's Comprehensive Plan for specific priorities. Direct staff (and APQ to prepare a work program that outlines: ❑ Steps and time needed to implement first priorities. ❑ Evaluate budget and staff resources tied to each prioritized recommendation. ❑ Discuss and evaluate demographic data as it compares to current market conditions and region. 0 ➢ Cedar Grove ➢ Central ➢ Cliff Road 10, ILO Cedar Grove Commons ➢ Continue Property Purchasing /Assembly Strategy ➢ Achieve Affordable Housing Goals - Pursue TCCLB ➢ Support Integration of Urban Park and Program Public Space to Build Community ➢ Engage Community — Seek Assistance TC —LISC ➢ Provide Storefront Loans — Partner with DCCDA ➢ Evaluate Use of Business Improvement District ➢ Connect Land Uses to BRT Station Area ➢ Ensure flexibility with Gateway uses /market opportunities '. ): , Include Broadband Access in Future Plans Central Commons ➢ Identify & Plan "Smaller Sub Areas" ➢ Provide New Housing Options ➢ Increase connectivity - circulator bus service ➢ Good Ring Road Concept ➢ Connect Land Use & Transportation Planning ➢ Incorporate Additional Walkable Areas ➢ Evaluate options for Lockheed Martin Site ■ Possible use of ULI MN - Technical Assistance Panel ➢ Include Broadband Access in Future Plans Cliff Road Commons ➢ Include Higher Density - connected to BRT Station ➢ Attract Complementary Uses ➢ Consider Church Site Reuse - Good Housing Location ➢ HKG Plan: Good Start — Update as Market Changes ➢ Review Soil Conditions ➢ Increase Connections - Neighborhood to the South ➢ Engage Community— Enlist TC —LISC ➢ Include Broadband Access uF • Thank you to those who participated in and supported the Opportunity Cities project for Eagan: • Urban Land Institute • Regional Council of Mayors • Family Housing Fund • Metropolitan Council • Dakota County CDA • Mayor and City Council • Advisory Planning Commission �a end Institute I LPG IV,nnesotal 1 Council of Mayors OVI rogra�' P rtun�ty ort ,umm ary vtep City o f Eagan ULI provides responsible leadership in the use of land and in the creation of thriving communities worldwide. Urban Land Institute Minnesota (ULI MN): ULI Minnesota actively engages public and private sector leaders in land use planning and real estate development to learn, network and join in meaningful, strategic action. The future holds many challenges and opportunities, we need the diversity of ULI Minnesota's professional community to meet them wisely. Regional Council of Mayors (RCM) Supported by ULI Minnesota, the nationally recognized Regional Council of Mayors represents Minneapolis, Saint Paul and 42 municipalities in the developed and developing suburbs. This collaborative partnership provides a nonpartisan platform that engages mayors in candid dialogue and peer -to -peer support, and builds awareness and action for a more connected, more sustainable and more prosperous region. 2 Eagan's Story The City of Eagan is a nearly fully developed, vibrant community conveniently located in the southeast Twin Cities area along two major interstates. Eagan is a relatively large suburban community with a total population of65,933 people, encompassing approximately 34 square miles or 21,000 acres. Its close proximity to both downtown Minneapolis and St. Paul, and location near the international airport have contributed to Eagan having one of the largest and most diverse employment bases in the region. The relationship between Eagan's large employment base and its housing needs are important to the City's future stability and economic prosperity. Historically, a large percentage of Eagan's homes were constructed from the 1970's to early 1990's. With the completion of Interstate 35E in the mid 1980's, major commercial concentration formed near the center of the City. The construction of Highway 77, a new Minnesota River bridge, and Interstate 35E accelerated the growth of the community. Development of townhomes, condominiums, and single family homes boomed during the 1980s and early 1990s. As the senior population living in Eagan has increased, residential development geared toward "empty nesters" and seniors has become more common. This has resulted in a decrease in persons per household and school- age children. Even though the City has a wide range of housing choices, homes and residents are beginning to age, which presents challenges related to the need for increased maintenance and ability to diversity the City's housing stock to be attractive to young families and young professionals. Eagan has a strong history and policy of working with other agencies to achieve community goals. In particular, the City's relationship with the Dakota County Community Development Agency will continue to be essential in addressing future housing needs as the County continues to develop, preserve and administer housing programs in support of a full range of housing choices. With the ability to guide redevelopment to diversify the housing stock, the City is in a good position to provide housing options that meet the needs of young professionals and older residents wanting to stay and thrive in the community. City Housing Goals and Policies: The Opportunity City Pilot Program has five key themes in support of a full range of housing choices: • Preservation and rehabilitation • Production of housing units that support varied resident life cycles and incomes • Use of regulatory incentives • Sustainability • Jobs /housing balance connected to transportation systems The review of Eagan's goals and implementation strategies indicate a wide range of support for these key themes. (A full summary is included in appendix 1.) • Increase the quality of housing stock and preservation of housing values • Ensure strong, desirable and safe neighborhoods with well- maintained property • Encourage appropriate recreational, educational, health and other supportive services for all residents • Maintain a diverse mix of housing types and values for persons of all incomes and stages of life • Maintain a "fair share" of housing to serve low /moderate income households • Ensure orderly and compatible redevelopment with existing surrounding uses. 4 Evaluate Community Factors: In every city, there are internal and external factors that hinder the city's ability to provide a full range of housing choices. In Eagan, a few factors were evident, as determined through interviews with staff, planning commission, city council and review of city materials. City is Close to Being Fully Developed • Lack of land for new development increases the challenge to diversity the housing stock • Current housing is beginning to age • Redevelopment of existing uses is costly and time consuming which may hinder the benefits of revitalization and increase property values Higher Land and Housing Costs • Higher land values may make it more difficult to attract /retain young households due to a higher cost of new homes • Younger households typically purchase existing homes as they become available Households and Homes are Aging • The City is experiencing an increased number of property maintenance violations • Decrease in persons per household, which results in an increase in empty nesters, lower turnover and households aging in place. These factors impact city and school services and facility needs. This aging trend is expected to continue. Program Review: Through the Dakota County Community Development Agency (DC -CDA), Eagan residents have access to a wide variety of housing programs for home renovation and purchase assistance. The renovation and purchase programs primarily serve low- to moderate- income households with incomes at or below 50 -80% of the area median income (AMI), based upon family size. Medium income is defined at an annual income of $78,000 for a family of four. The City of Eagan property taxes support these programs through contribution of the annual county tax levy in the amount of approximately $1.3 million. The following is a summary of the programs reviewed as part of the housing audit over the last five years. (Refer to Appendix 3 for details on the programs). Single Family Rehab Loan • Provides up to a $25,000 loan for home renovations. For those with income less than 50% AMI there are no payments until the home is sold, refinanced or becomes non - homestead. For those with incomes between 50 -80% of the AMI, 3% of the loan is deferred. Since 2005, the program has served 53 homeowners, which is less than 0.4% of Eagan's single family households. First Time Homebuyer Loan • Offers a first mortgage loan with an interest rate of 4.75% for those first -time homebuyers who have an income at or below 80% AMI and a purchase price less than $276,683. Since 2005, there have been 149 loans issued to first -time buyers of Eagan homes. Down Payment Assistance • Provides up to $10,000 in funds with zero interest and no payments until resale, refinance or the home becomes non - homestead. Thirty -one residents have been provided with down payment assistance. Housing Counseling Services • There were 768 Eagan residents served by home ownership classes (417) and foreclosure prevention (351) over the past 5 years. • Each year there were more residents taking a home ownership class rather than a foreclosure prevention class — with the exception of 2008, which was the height of the economic downturn. Production & Preservation of Affordable Housing. In addition to its housing programs, the DC -CDA provides funding for the development of new mixed income and affordable housing for seniors and families, as well as the renovation of apartments in the City of Eagan 5 New affordable & market- rate housing for families =- 264 units built and 47 planned • Commons on Marice -156 (32 affordable) • Oak Ridge Townhomes — 42 units • Erin Place Townhomes — 34 units • Cedar Villas -104 units (21 affordable) • Future Northwood Site — 47 units Renovation of existing affordable housing • View Pointe Apartments — 66 units Supportive Housing for youth & families = 61 units built /planned • Lincoln Place — 25 units • Dakota Woodlands — 21 units • Robert Lewis —15 units New Senior Housing = 245 units • Lakeside Pointe — 60 units • Oakwoods of Eagan — 65 units • Oakwoods East — 55 units • O'Leary Manor — 65 units City Official Controls & Land Use Strategies In addition to specific housing programs, the City uses several methods through its land use and official controls to support and promote redevelopment and reinvestment of the City's housing stock and reuse of land. • Special Areas —There are seven special development areas that allow flexibility and land use cohesiveness for future development /redevelopment. • Planned Development District — The tool is used for mixed use developments and to allow design flexibility where smaller lots /streets and connectivity are considered. • Property Maintenance Ordinance — The City has adopted an exterior maintenance ordinance to address home and business exterior code violations to maintain property values and protect the health and safety of residents. • Cedar Grove Master Plan —The City is committed to providing 20% of units as affordable within this development area. • Sustainability— Several key sustainability strategies have been identified within the City's comprehensive plan including the promotion of green building and development techniques. • Active Living Program —The City identifies several land use initiatives to support active living, including participation in the "Designing for a Lifetime" program to assess and report on the community's ability to serve older residents. Community Change Report - Key Points Community Change Key Points: Eagan's community change data - the review of householders ages; mix of housing types; owner and renter status; value of ownership housing; new birth trends; turnover and retention; and where people are moving to and from and in what type of housing - resulted in the observation of three key themes: 1. The progression of those individuals aging in place will make it increasingly difficult for younger households to find single family housing in the City. 2. The majority of younger households are living in rental housing and when they choose to move, they are leaving the City. 3. There is a small percentage of affordable ownership housing that may impact the ability to retain and attract younger professionals and families. The following is a summary of some key finding from the report (Refer to Appendix 5 - Full Eagan Community Change Report). Household Growth: Eagan has a resident base dominated by households ages 35 to 54. Between 2004 -2009, the majority of growth was seen in those ages 55 or more ( +2,149) — a 36% increase compared to the national growth rate of 25 percent. At the same time, households under age 35 experienced a 4.2% decrease in growth. Similarly, those age 35 to 54 (middle -aged and the largest number of household's) experienced an 8% loss of growth. Eagan's Householder Ages (2009( DM,lbution of Households by Household—Age (DeG •e, coven 35,568 hseholds In 2009•) Source: ou Exe LLC Medlen Householder As. In 3009 wes 48 Yeen [W SaPv r�� .4 y 14x - -- m-- - - - - - - - - - _ weuMNMrN- '.. r�. nevo No COU..'ila— nousenoldnum.e.1u 11 ............... . '. ExcEmsus. _. Turnover of Residents. Household turnover is a measure of mobility, which is an important indicator of housing availability. The overall turnover rate (2004 -09) is 6.8 %. This rate has trended down each year since 2004, resulting in many more households not moving. The owned single family turnover rate is even lower at 2.7 %- further limiting housing opportunities for people wanting to move into the City or move from an apartment to a single family home. There is a higher than average rate of households in multifamily housing moving out of the City indicating that there may be a lack of affordable single family options for them to move into. Housing Mix. In 2009, there was an owner -to- renter ratio of 74/26% and a mix of single family to multi - family of 53/47 %. 58 percent of households age 35 and under are in rental housing which is 41 percent of all the rental units. These are the future buyers of homes in Eagan. The percentage of younger households in rental housing is higher than Dakota County's average of 34.7 percent indicating that younger households in Eagan are more dependent on rental housing. Value of Housing. In 2009, only 29% of homes had a tax value less than $250,000, and less than 4% of home are under $200,000 value. Of the total units less than $200,000, 14% are owed by those under age 35. Households under the age of 35 have been moving away from the higher priced single family homes in the City. Most of this decline is seen in homes built between 1980 and 1999. A growing proportion of the homes built before 1980 are in the hands of households ages 55 and older, while 200 of those homes are occupied by households ages 75 or older. It is expected that this trend will continue and the need for housing maintenance services to increase with it. Because the single family housing of those over age 55 is not reselling in this market, many householders will chose to stay, to reinvest in updating the housing. They may remain for another 15 to 20 years. 1`70 3.ax Retention. Overall, 28% of those who moved within the 7- county area from a home in Eagan found another home or apartment in the City between 2004 and 2009. This is a lower turnover rate than other cities studied — Brooklyn Park at 33% and Rosemount at 35 %, but higher than Shoreview at 20% and Minnetonka at 25 %. The largest percentage of turnover by age group is for those under age 35. However, within this age group, there is the smallest percentage of retention at 23 %, indicating a need for new housing choices, or the availability of existing choices, for that age group. Within Eagan, 28% of apartment renters moved to a single family dwelling. This compares to 36% for Dakota County as a whole. Employment Base. Of the 47,000 jobs in the City, 13% are held by Eagan residents. Eighty -three percent of Eagan working residents commute, with 40% of those commuting to Hennepin County. Twenty -seven percent of Eagan residents working are under the age of 30 and 20% of those younger residents make less than $1,251 per month — the majority (56 %) make over $3,333 per month — and are likely middle aged and mid career. Site Evaluation Summary f Recommendations Recommendations to Increase the City's Capacity to Provide a Full Range of Housing Choices: The City of Eagan has had strong partnerships with other agencies and history of proactive planning and policy development resulting in a strong employment base and a diversity of housing units. However, key observations emerged through the Opportunity City process that will impact planning to support future housing choices and changes in market demands. • The loss of young households as they move • The lack of turnover of aging adults • A lack of connectivity and walkability created by suburban street patterns and segregated land uses These factors contribute to aging in place, loss of families and challenges in attracting the younger age cohort necessary to support schools, retail and city services. Increasing the number of options for both young households who want to live in the city and older adults who want to move from their single - family homes but stay in the city will be important. City leadership can prioritize its policies related to future land use and housing programs that help to create more connectivity and provide additional options and opportunities related to renovation and redevelopment to address these issues. There is no quick fix. The recommendations below should be considered as short and long term options to include within the City's housing and development tool box and evaluated to provide a balance in addressing the needs of residents as they age while maintaining an attractive community for young households. We have provided examples of best practices in italics after several recommendations. More details on these and other best practices are provided in appendix 8 for the city's further review. Enhance neighborhood preservation strategies. City leaders have a variety of public tools and strategies they can use to determine their participation in neighborhood preservation. Continuing to be part of the solution and helping to ensure that property is maintained takes strong local leadership and vision. Providing a wide range of strategies that balance renovation, maintenance and redevelopment of the existing housing stock is important. • Continue to market DC -CDA loan programs for home renovations. Evaluate need to create a City- specific program that targets households who have income above the maximum allowed for use of the County and State programs. Targets could include 120% Area Median Income, home value and age thresholds – Roseville Renovation Program model. • Consider establishing a rental licensing or registration program to maintain quality in rental housing and provide a mechanism for engaging the rental community – landlords and tenants - Bloomington Rental Licensing Program or Roseville Rental Registration models. • Consider long term strategy and economic benefits of a point of sale type program to ensure that property values are maintained over time - St. Louis Park Program model. • Consider the cost and benefits of designating established neighborhoods within the City to provide an increased sense of place, support for neighborhood initiatives, and a way for the City to more actively engage residents in land use, renovation, safety and service issues. • Continue to consider use and need for Housing Improvement Area tool to help finance the renovation of townhome and condominium complexes. Be proactive in addressing aging in place. Like most of the metropolitan region, Eagan is beginning to see evidence that residents are aging and remaining in their homes longer; they are "aging in place." Retention of households —even as they age —is a benefit for the city; it helps keep the social fabric and volunteer base of the community vibrant. However, losing younger households as they grow and move away and not having options that older adults desire to move into can stifle home values and shift public and private sector service and retail needs. Local leaders can provide policies and tools that create opportunities for all resident life cycles and maintain a vibrant community that keeps residents safe while maintaining healthy levels of household turnover (more than 4 %) and resident retention (higher than 20 %). • Evaluate options for allowing accessory dwelling units within existing single family neighborhoods to provide options for families to care for aging parents within the home or on the same lot. (Refer Appendix 4 for a summary of ULI MN research and sample ordinances). 11 Recommendations • Identify existing NORCs (naturally occurring retirement communities) — through targeted demographic mapping of neighborhoods with at least 60% head of households over age of 55 - expand on Excensus Community Change data - to help plan for transportation and other service geared toward seniors. Ex: senior villages. • Build on recommendations from the Design for a Lifetime Initiative and the ongoing activities of the Active Living Initiative. Expand upon this work by conducting an Aging in Place survey of resident needs. • Expand support for DARTS - Household Services that provides maintenance advice and service to seniors on a fixed incomes. • Utilize housing service providers to stimulate /incentivize Universal Design features in renovations for housing for those over age 55. Attract and retain young households. Efforts to provide opportunities for young households in the City are important to providing a full range of housing choices and to regenerate neighborhoods stabilize school enrollment and keep commercial services and retail businesses viable. National statistics indicate that future households will demand more compact and connected communities. The City of Eagan has several opportunities to develop land that includes options for young professionals and growing families in connected livable communities. The City can provide resources with a specific focus on retaining and increasing the younger resident population. • Market availability of homes and /or renovation programs to young households by partnering with the City's school districts, faith -based organizations and the real estate community. • Invest in the Senior Housing Regeneration Program — market to older households who wish to sell their home — renovate and resell to young households and /or first -time homebuyers — Ramsey County model. • Evaluate options for allowing accessory dwelling units within existing single family neighborhoods to provide options for older children to live with parents but retain independence — within existing home or on the same lot. • Invite non - profit community development agencies to become community partners and develop new workforce housing for young households. • Include new lifestyle rentals within key special area plans. Target young professionals who are not ready to purchase a single family home but want condo -type environment with amenities within the complex. This type of housing helps to create a ready market by attracting and retaining future buyers of single family homes and users of parks and services. Modify land use codes to allow them to be less prescriptive and more flexible to meet the needs of the target market at that time and support architectural creativity. Increase connectivity through new housing strategies and support of transit investments. While the City is nearly fully developed, there are opportunities through redevelopment and development of vacant land to construct new housing that addresses aging and helps to attract younger households. Supporting new housing units, in addition to proactive maintenance and renovation of existing housing, will help to ensure that a full range of housing options are available within the city in connected, livable communities. Also, federal transportation, housing and environmental policies have shifted to support strong, sustainable communities by connecting housing to jobs, fostering local innovation, and helping to build a clean energy economy. In order to support this mission, it is important that not only federal but state, county and local housing and transportation investments are coordinated with local land use decisions. The coordination will result in reduced transportation costs for families, improved housing affordability, energy savings, and increased access to housing and employment opportunities. • Require a mix of housing options — type, style, size and price — within Tax Increment Financing Policy and require a minimum of 20% of new housing to be affordable for working families. • Maintain and enhance density for housing that is connected to jobs, transportation options, and community amenities, including parks, open space, shopping & schools. • Support the expansion and availability of broadband capacity within all residential areas and require connectivity when housing projects are being built. • Use ULI MN Community Site Principles within the review of master plan developments and to respond to development proposal that include housing. The Community Site Principles support connectivity in land uses, street patterns and the connection of housing with jobs and transportation networks. • Provide a full range of housing choices within all new housing developments. Support a mix of options for young professionals connected to employment areas, workforce housing with a range of affordability options and housing for seniors and empty- nesters. • Adopt a Complete Streets Ordinance that requires new and redeveloped street patterns to support connectivity, walkability and bikability. • Work with employers and Chambers of Commerce to embrace the value of employees who live close to work. o Evaluate opportunity to partner with key employers to support a Live Where you Work housing loan program. — St. Louis Park model • Encourage residents to use available transit and entice retail and professional services companies to locate near park & ride and /or BRT locations. o 83% of Eagan working residents commute to work —with 40% of those commuting to Hennepin County, 17% Ramsey and 15% within Dakota County • Designate transit stations as community assets and amenities • Encouraging higher density and a range of housing choices within walking and biking distance to transit stations allows for vibrant and flexible commercial districts. Encourage Dakota County to modify county road design to support a more urban setting that connects land uses and transportation decisions allowing for more walkability and connectivity to people rather than vehicles. Evaluate local street design to connect cul -de -sac neighborhoods, increase mixture of land uses (commercial, civic, recreational and residential) and allow more traditional neighborhood development — increasing traffic flow, reducing travel time and creating a broader sense of community. o More and more recent national statistics conclude that there is a higher public cost in the maintenance of cul -de -sacs compared to a typical street grid pattern, and there is a decrease in connectivity of the residents to the broader community. • According to "Safe Routes to Schools" guide, increasing connectivity of streets, paths and sidewalks reduces travel distances and makes it easier for pedestrians and bicyclists to access destinations. Adding "connector Grid street networks create more direct routes and paths" within cul -de -sac neighborhoods can increase make walking easier walkability and provide additional travel options. MEMO __ ---- - °- =--3 • According to John Wasik, author of The Cul -de -Sac r Syndrome: Turning Around the Unsustainable 11 American Dream. "A cul -de -sac is basically a big, i long driveway that ends at your house. It's not very efficient from a connectivity standpoint." • A study by the Charlotte, N.C., Department of Transportation found they decrease efficiency and increase fire department costs. • A study by the University of Connecticut's Center for Transportation and Urban Planning found cul -de -sacs had more auto accidents because they must exit onto a much larger, heavily traveled arterial road. • According to a Milwaukee Magazine November 2010 article, "A plow can generally clear six to eight traditional streets in the time it takes to deal with one cul -de -sac, which is a 90 -foot asphalt circle (on average) comprised of hazards seen and unseen. Continue to work cooperatively with Dakota County Community Development Agency (DC -CDA) The City of Eagan and all of Dakota County's cities are fortunate to have the housing renovation, purchase assistance and affordable options provided by the Dakota County Community Development Agency. The wide range of programs and commitment to develop a wide range of housing options is a benefit to the cities and residents within the county. • Support annual levy contribution. Partner on new affordable housing developments that meet city goals and objective to provide a full range of housing options in the City. Hold annual housing forum among adjoining cities and county policy leaders - engage community in the discussion of housing needs. Understand the sub - regional housing market and impacts on neighborhood schools in larger districts. 10 Next Steps Next Steps: The Opportunity City Program is only the first step in supporting a full range of housing choices in the community. Suggestions for next steps associated with implementation of the recommendations that balance issues of aging in place and housing attractive and affordable to younger households include the following: • Gain acceptance of the ULI MN /RCM Opportunity City report by the City Council. • Prioritize recommendations that will have the largest impact in supporting housing goals for a full range of housing choices. Identify short and long term priorities. • Prepare a work program that outlines the steps and time needed to effectively implement short term priorities. Evaluate budget and staff resource implications tied to each priority. • Determine how the recommendations affect land use codes, program service providers and staff workload. Include performance targets to track the progress of program changes and additions. Setting performance targets and tracking the progress of local tools and strategies against benchmarks will provide a level of understanding to public officials and residents that become critical during the annual budgeting process. (Detail regarding performance measures as it related to housing tools and strategies are attached in appendix 9.) • Evaluate the need to amend the City's comprehensive plan based upon implementation of recommendations. • Discuss the broader meaning of demographic data as it compares to current market conditions and evaluate how the data relates to the region. Incorporate future data updates and online neighborhood level data tool. • Hold an annual housing summit to review progress on priority recommendations and determine next steps and implications of implementing long term strategies. City policy leaders are faced with an important opportunity to include a full range of housing options for their current and future residents. This supports economic prosperity for the long -term success of city services and business vitality. Policy leaders should support next steps that make valuable changes to the way that the tools and strategies are delivered throughout the City. Many of the recommendations have budget implications and affect staff resources. Prioritization of the recommendations will be essential. 11 12 Appendix List 1. City Housing Goals & Policies 2. Housing Framework Worksheet Summary 3. Program Review 4. Accessory Dwelling Unit Summary 5. Community Change Report 6. ULI MN Community Site Principles 7. Opportunity Site Evaluation 8. Best Practice Examples 9. Sample of Performance Measures ULI MN /Regional Council of Mayors Opportunity City Program - Housing Audit Summary of City of Eagan City Housing Goals & Policies Growth: According to the City of Eagan Comprehensive Plan projections, Eagan will experience an increase of 2,500 additional households by 2020 for a total of 28,500. To accommodate the projected growth the City recognizes the need to focus on diversifying the housing stock in new developments and ensuring that the existing housing stock remains in good condition. In addition, it is projected that Eagan project that Eagan will be the employment center for Dakota County by 2020 with nearly 27% of all the County's jobs. Connecting jobs and housing will provide a more balanced and sustainable community. As part of the ULI MN Regional County of Mayors Opportunity City Program there are 5 key themes with a focus on supporting of a full range of housing choices. These include: • Preservation & Rehabilitation • Production of new units of housing (affordable and to meet community life cycle housing balance) • Use of Regulatory Incentives • Sustainability • Jobs /Housing Balance The following is a summary of Eagan's housing goals and policies which support housing preservation, rehabilitation and the creation of new units as follows per the City's Comprehensive Plan dated January 2010. Housing Goals: • To maintain and enhance the quality of existing and future housing and preserve residential land values. • To ensure a community of strong, desirable and safe neighborhoods with well - maintained property. • To encourage (the provision of) appropriate recreational, educational, health and other supportive services for all residents. • To maintain a well - balanced community with 4.4 a diverse mix of housing types and values in the community to accommodate the housing needs of persons of all incomes and all stages of life. • To maintain the City's existing "fair share" of housing to serve persons of low and moderate incomes at scattered locations throughout the community. • To ensure redevelopment occurs in an orderly manner and is compatible with existing surrounding uses. Appendix 1—Goals & Policies - DRAFT ULI MN /RCM Opportunity City Report - Eagan Page 1 Housing Policies: Assets & Amenities • The City will encourage quality residential development through its requirements for landscaping; development of compatible architecture; preservation or provision of lakes, parks, and vegetation; and other amenities. • The City will encourage the provision of private amenities within neighborhoods or subdivisions to be maintained by private property owners or associations. • The City will require new development to provide for infrastructure, such as sewer, water, city standard streets, telecommunications, and sufficient roadway access. • The City will promote pedestrian and bicycle connections to link residential neighborhoods with shopping, work places, parks, schools, and other destinations throughout the community. • The City will encourage the preservation and maintenance of significant woodlands, vegetation, wetlands, and other natural features within all developments in order to maintain a high quality living environment. Type • The City will promote a diverse mix of housing types and values in the community to accommodate the housing needs of persons of all incomes and all stages of life. • The City will support higher density residential development in areas adequately served by municipal services; in close proximity to parks, schools, shopping and transit; and where existing environmental conditions can be protected. • The City will work cooperatively with other agencies, including Dakota County Community Development Agency, in developing and administering programs that meet housing needs of low and moderate income Eagan residents. • The City will strive to scatter low and moderate income housing throughout the community. Maintenance and Property Value • The City will continue to use housing maintenance standards to ensure the housing stock is maintained in a safe and sound condition that contributes to the continued value of the property and its surroundings. • The City will support the rehabilitation and upgrading of the existing housing stock. Redevelopment • The City will support redevelopment plans that utilize a comprehensive approach to development and prevent the isolation of small residual areas of homes among non- residential uses. • The City will support redevelopment proposals that ensure compatibility with surrounding existing land uses through the provision of adequate services, buffering and amenities. The City will re- evaluate the location and quantity of existing land uses, on a continuing basis, to determine their appropriateness. If necessary, the City will consider amending its Land Use Plan and Map to reflect more appropriate land uses. Appendix 1—Goals & Policies - DRAFT ULI MN /RCM Opportunity City Report - Eagan Page 2 ULI MN /Regional Council of Mayors - Opportunity City Pilot Program Housing Audit - Framework — City of Eagan Establish a Framework - The first step in the housing audit process was to review and evaluate examples of key tools and strategies that are being used by the City in support of a full range of housing choices. Eagan staff completed an exercise that reviewed and evaluated these examples of key tools and strategies. The staff from community development were asked to indicate the current use by the city, rate how well it was used in the city; and briefly describe its use. If the city did not use the tool or strategy they were asked to indicate the reasons why. The rating system was developed to understand the level of use in the context of local planning and action as 1.) proactive - to prevent and or provide early intervention into a solution to an issue; 2.) organized response - anticipating the issues and reacting to those issues or 3.) crisis response - by reacting to a specific issue and /or crisis. The following is a summary of the key tools and strategies and the city's response. a. Ability to Capitalize on Market Activity i. TIF (reactive —organized response) TIF has been used relatively little to assist with housing development in Eagan, other than the CDA supported Erin Place Project. ii. Tax Abatement (No action) The City's Public Financing Assistance Policy states that the City does not use tax abatement. iii. Housing Levy (No action) The city does not have a city specific HRA levy. However the Dakota County CDA serves as the City's HRA and is supported by a County -wide levy. iv. Zoning Policies & Regulatory Incentives (Proactive response) Small lot single family zoning and planned development zoning are in place to assist with more efficient use of land. b. Generating Capital —leverage outside funding sources i. Tax Credits Dakota County CDA based and coordinated. ii. Pre - development and Acquisition Funding Dakota County CDA based and coordinated. iii. State, County and City Bonding Dakota County CDA based and coordinated. Appendix 2 Framework - DRAFT ULI MN /RCM - Eagan Opportunity City Program Page 1 iv. MN Housing Funds Dakota County CDA based and coordinated. v. Local Employer Funding The city does not require and /or have a program for local employers to support homes purchases. vi. Housing Trust Funds The city does not provide local housing trust funds c. Preserving & Recycling — local programs i. Preservation and Rehabilitation of Older Ownership and Rental Properties (Reactive — organized response) Dakota County CDA— housing rehab programs. The City has allocated Community Development Block Grant funding to programs to help fund this activity. Rental properties may participate in rental rehab programs through the DC -CDA as well. ii. Down payment assistance Dakota County CDA based and coordinated. iii. Renovation Loans and incentives (Proactive) The City approved the establishment of two Housing Improvement Areas (NIA's) to assist with rehab of private owner occupied townhome association based exterior renovations. Dakota County CDA coordinated. iv. 15t Time Homebuyer assistance (Proactive) Dakota County CDA based and coordinated. v. land Trust, Habitat for Humanity There is no local land trust and /or habitat for humanity homes in the city at this time. vi. Preservation Codes — Point of Sale, Rental Licensing (Reactive — organized response) The City has no point of sale or rental licensing program but does have an exterior maintenance ordinance to assist in regulating housing maintenance. vii. Aging in Place Programs The city does not have specific aging in place programs. d. Expanding Development Opportunities Support of Mixed Use Development (Proactive) Cedar Grove redevelopment and land use planning efforts have identified and encouraged mixed use areas and land intensification. ii. Development Guidelines (Proactive) Cedar Grove guidelines establish design patterns and uses that promote higher density and mixed uses. Appendix 2—Framework - DRAFT ULI MN /RCM - Eagan Opportunity City Program Page 2 iii. Use of Publically Owned Land for Housing Opportunities (Reactive- organized response) The City supported Lincoln Place - youth supportive housing project at Cedar Grove. iv. Rezoning of Land for Housing Opportunities — Flexible Zoning (Reactive organized response) The City supports the use of Planned Development zoning designed to be flexible. v. Support of Higher Densities — Density Bonus Programs, smaller lot sizes, smaller street widths, cluster development (Proactive) The City's land use planning efforts have supported higher densities and intensification of land use within Special Area Plans, through mixed use zoning and planned zoning. vi. Identification of Sites (Proactive) The City identified mixed use areas established - Special Area Plans. e. Reduce Red Tape in Support of Housing Diversity i. Zoning policies that support diversity in housing types (Proactive) Cedar Grove redevelopment area has committed to 20% of the housing units as affordable. ii. Expedited permitting and review policies (Reactive Organized) The City assigns one point of contact for each development application from submittal to implementation. iii. Fee Waivers for affordable housing The city has not provided fee waivers for affordable housing iv. Favorable rehab codes to facilitate renovation of older homes The city concurs with the state building code for the renovation of older homes. f. Expand Efforts to Support Sustainability at the Local Level i. Energy Efficiency (Partially Proactive) The City has sustainability goals within the comprehensive plan but does not require energy efficiency and does not provide other incentives if a developer choose to include energy efficiency components within a new development or renovation. ii. Land Use Efficiency (Proactive) The Cedar Grove area is an example of promoting efficient land use patterns. Appendix 2-Framework - DRAFT ULI MN /RCM - Eagan Opportunity City Program Page 3 g. Connect housing choices to jobs and transportation networks Commute Patterns (Reactive -organized response) Minnesota Valley Transit Authority responds to employer requests to evaluate routes to provide links between stations and jobs. The City maintains systems of transportation trails adjacent to major streets for the same purpose. ii. Employment Connections The city needs better understanding of employment connections h. Help Residents Succeed L Promote Homeownership - Homeownership Classes (Proactive) Dakota County CDA based and coordinated - City Supported. ii. Foreclosure Prevention (Proactive) Dakota County CDA based and coordinated - City Supported. iii. Crime Free Multi - Family Housing (Proactive) Organized through the Eagan Police Department iv. Neighborhood Engagement (Proactive) The City Police Department has initiative geo- policing as well as annual National Night Out. v. Other The City participated in an annual Home Improvement Show. Appendix 2-Framework - DRAFT ULI MN /RCM - Eagan Opportunity City Program Page 4 ULI MN /RCM Opportunity City Pilot Program - Housing Audit Eagan Program Evaluation Summary The City, primarily through the Dakota County Community Development Agency (DC -CDA), provides a variety of housing programs in support of a full range of housing choices. These programs were evaluated by reviewing, when data was available, the following: • loan(grant) activity - number of loans (grants), amount of loans (grants) • number of residents served, median income levels • value of improvements • property value increase The following programs were reviewed and are summarized below. Additional background information on each of the programs is attached. • Reinvestment /Renovation Programs • Single Family Rehab Loan • State Fix Up Fund o State Rental Rehab Loan • Home Ownership Programs • First Time Home Buyer Mortgage • Down Payment Assistance • Housing Technical Assistance • Homeownership Classes * • Foreclosure Prevention Counseling • Specialty Assistance • Redevelopment Incentive Grant • Energy Assistance Program • Weatherization Program * These programs are funded and managed by the DC -CDA through the use of CDA annual levy and other state and federal sources of funds. The programs and services provide many options for Eagan residents. City of Eagan Residents Contribute to DC -CDA Levy annually to support housing programs: Eagan Levy in Millions 2009 1.3 2008 1.29 2007 1.4 2006 �� 1.33 i 2005 1.22 HRA Appendix 3 Program Review Summary - DRAFT ULI MN /RCM - Eagan Opportunity City Page 1 The renovation and purchase programs serve low to moderate income households with incomes at or below 50 -80% of the area median income (AMI) based upon family size. Medium income is defined at an annual income of $78,000 for a family of four. Single Family Rehab Loan • Provides up to $25,000 total loan amount for home renovations. For those with income less than 50% AMI there are no payments until the home is sold, refinanced or becomes non - homestead. For those with incomes between 50- 80% of the AMI, 3% of the loan is deferred. The program serves less than 0.4% of Eagan's single family households. First Time Homebuyer Loan • First mortgage loan with an interest rate of 4.75% for those first time homebuyers who have an income at or below 80% AMI and a purchase price less than $276,683. Down Payment Assistance • Provides up to $10,000 in funds with zero interest and no payments until resale, refinance or the home becomes non - homestead. Housing Counseling Services. • There were 768 Eagan residents served by home ownership classes (417) and foreclosure prevention (351) over the past 5 years. • Each year there were more residents taking a home ownership class rather than a foreclosure prevention class with the exception of 2008 at the height of the economic downturn where foreclosure prevention classes surpassed home ownership classes. 2009 ias 261 2008 its az 2007 55 2006 3 11132 2005 `i8 W27 o 100 ■ Forecbuxe Prevention ■ Homebuyer Gasses zoo 300 Appendix 3 Program Review Summary - DRAFT ULI MN /RCM - Eagan Opportunity City Page 2 Production & Preservation of Affordable Housing. In addition to the housing programs, the DC -CDA develops and provides funding for the development of new mixed income and affordable housing for seniors and families as well as the renovation of apartments in the City of Eagan. New affordable & market rate housing for families - 264 units built /47 planned • Commons on Marice (32 affordable)- 156 • Oak Ridge Townhomes — 42 units • Erin Place Townhomes — 34 units • Cedar Villas (21 affordable) —104 units • Future Northwood Site — 47 units Renovation of existing affordable housing • View Pointe Apartments — 66 units Supportive Housing for youth & families = 61 units built /planned • Lincoln Place — 25 units • Dakota Woodlands — 21 units • Robert Lewis —15 units New Senior Housing = 245 units • Lakeside Pointe — 60 units • Oakwoods of Eagan — 65 units • Oakwoods East — 55 units • O'Leary Manor — 65 units Appendix 3-Program Review Summary - DRAFT ULI MN /RCM - Eagan Opportunity City Page 3 ULI MN /RCM Opportunity City Pilot Program - Housing Audit Accessory Dwelling Unit Summary Tool to increase housing options in the City of Eagan Prepared by ULI MN /RCM with research support from Dennis Welsch, CPPP The following provides a general summary and definition of accessory dwelling units with a comparison of five cities that illustrate how each city has unique objectives and regulatory features to help establish accessory dwelling units in their communities. Also known as a granny -flat or a carriage house, an accessory dwelling unit (ADU) is an additional living unit that has separate kitchen, sleeping and bathroom facilities, attached or detached from the primary residential unit on a single - family lot. It can be a renovation or addition to a single family house, converted existing garage, an addition to a garage, or a new building. Accessory Dwelling Units (ADUs) - considerations on the benefit of ADU's to help provide a full range of housing options. • Gives homeowners more options — family use, home office, aging /ill parent, workforce /affordable rental, caregiver housing, occasional guests, etc • Increase affordable housing opportunities by providing an increased number of affordable apartment rental units. ADUs can be a permitted use or an entitlement on the property, depending upon a city's land use codes. • Increase homeownership opportunities by providing prospective homeowners with an additional source of income (in communities where this is legal) that lowers their effective mortgage payments and may increase the value of the property. • Increase density without requiring high -rise construction. • Provide space for inter - generational family and \or senior housing. • Make efficient use of existing infrastructure (roads, sewers, schools). • Increase safety by providing additional "eyes on the street." The Ventura Village neighborhood of Minneapolis ( http: // www. venturaviIlage .org /carriagehouse.htm) has plans for four types of carriage houses and other resources to facilitate the building of ADUs in Minnesota - including zoning language and design guidelines - and a link to the Metropolitan Council's 1985 Development Guide, which advocates for the wider use of these structures in its "Policy 2:... Cities should adopt ordinances that allow accessory housing as a realistic option to help meet their housing needs." Two issues not clear in most ADU ordinances: timing (how long is it good, is there a local review after 1 or 5 years, etc), and can it be age and \or income restricted (can such a restriction actually \practically be administered). Some states now enable \proscribe the details of ADUs for all cities. This is not the case in Minnesota. Fire suppression and accessibility (ADA) issues are also not addressed directly within ADU's. Resource on ADUs: The Santa Cruz, California Accessory Dwelling Unit (ADU) book provides well done guidelines and illustrations and can be accessed at http: // www. cityofsantacruz. com / Modules /ShowDocument.aspx ?documentid =8875 Appendix 4 —ADU Summary (July, 2010) - DRAFT ULI MN /RCM - Eagan Opportunity City Page 1 Five City Comparison of Accessory Dwelling Unit (ADU) Requirements ft. = feet s.f. = single family sq. ft = square feet ADU = Accessory Dwelling Unit Appendix 4—ADU Summary (July, 2010) - DRAFT ULI MN /RCM - Eagan Opportunity City Page 2 Bloomington Santa Cruz W.Bear Lake Apple Valley Plymouth Stated Objective Housing Choice, Contributes needed Senior (55 +) or No adverse impact Housing Choice Efficient use of housing ... consistent handicapped on adjacent housing and with Comp Plan, housing properties or infrastructure; enhances housing alteration in Affordability opportunities; character of affordable unit permit neighborhood fee waivers Zones allowed R -1 or RS -1, meeting RS -5A, RS -10A, RS -1A, Any zone where R -1 (large lot) RSF -R, RSF -1, all standards of s.f. RS2A, R -1 -10, R -1 -7, s.f. home is RSF -2, or PUD dwellings R -1 -56 permitted Permit type Bldg. Permit and Bldg Permit as per Bldg. Permit and Bldg. Permit and Admin. permit rental license; UBC; Permitted Use CUP with specific CUP with specific after Bldg Permit Admin. approval by with selected R zones; conditions; must conditions; and on Planning Mgr. those not meeting be renewed with Preliminary Plats standard are by CUP new ownership of 30+ lots. admin. permit Permit Term Annual Rental Annual cert. of Annual Rental License occupancy License Recording No Yes; owner\ADU deed Yes; owner \ADU CUP recording Entitlements restriction document restriction doc. and CUP recording Hearing No CUP Admin Permit by Yes Yes No zoning administrator with notice to adjoining properties Occupant(s) 2 occupants 2 normal; 4 max. 3 occupants Owner must live Yes; Max of one Yes; Max of one Yes; Max of one Yes; Max of one Yes; Max of one on site principal dwelling principal dwelling and principal dwelling principal dwelling principal and one ADU per lot one ADU per lot and one ADU per and one ADU per dwelling and one lot lot ADU per lot Neighborhood No more than 3 separation ADUs within Y between ADUs mile. Appendix 4—ADU Summary (July, 2010) - DRAFT ULI MN /RCM - Eagan Opportunity City Page 2 Appendix 4 —ADU Summary (July, 2010) - DRAFT ULI MN /RCM - Eagan Opportunity City Page 3 Bloomington Santa Cruz W.Bear Lake Apple Valley Plymouth 11,000 sq.ft. or 5,000 sq. ft.; Not mentioned 40,000 sq.ft. more; no more than Min. Lot Size one ADU per principal structure Min. Unit Size 300 sq.ft. 200 sq.ft. first 300 sq.ft. occupant and 100 sq.ft. add. occupant Max. Unit Size Lesser of 960 sq.ft. 500 sq.ft for lots of 5- Lesser of 880 sq.ft. 40% of principal Lesser of 100% of or 33% of 4 season 7000 sq.ft.; 640 sq.ft. or 40% of principal structure; total of principal principal structure for lots of 7,500- structure both units and dwelling or 1,000 10,000 sq.ft.; 800 pavement not sq.ft. sq.ft. for lots more than 35% of >10,OOOsq.ft. for all, lot coverage; 2 max. of 30% coverage bedrooms max. of rear yard Attached rental Yes —to 4 season Yes; same setbacks as Yes Yes —to living Yes -above or to s.f. dwelling living space or principal structure space or within or attached to unit within principal attached to garage structure principal structure not part of garage Detached No Yes; min. setbacks on No No Yes -above or side and rear = 3 ft.; attached to 10 ft. between bldgs.; garage alley orientation entry encouraged Accessibility, Design must allow Yes, door and \or Entry door to be barrier free for re- connection to enclosed ramp unobtrusive from principal structure primary structure space in future entry; Accessible as per the Uniform Building Code Fire Suppression Mn. Bldg. Code and As per duplex, for separation Mn. Bldg Code Separate Yes Bathroom, Kitchen No. Entrances One per street Appendix 4 —ADU Summary (July, 2010) - DRAFT ULI MN /RCM - Eagan Opportunity City Page 3 Appendix 4—ADU Summary (July, 2010) - DRAFT ULI MN /RCM - Eagan Opportunity City Page 4 Bloomington Santa Cruz W.Bear Lake Apple Valley Plymouth Address of Unit Separate from principal dwelling Parking (off- At least 4 total 1 space per bedroom; Off Street hard 2 outdoor spaces, 2 outdoor street) spaces on lot spaces covered surface reqd. No no more than 4 spaces, not (garage) parking for separate driveway total for principal conflicting with principal dwelling not cut structure and spaces required required with ADU is ADU.; second for principal present. No more garage allowed if structure. than 50% of front not visible from yard for parking public street Site Plan Exist. Conditions Existing conditions, As part of CUP survey, narrative, open space, and floor plans, privacy demonstrated elevation drawings for proposal & adjacent properties Utilities Sewer /Water Req. Sewer /Water Req.; Sewer /Water Req. Sewer /Water (from same service water conserving Req. as principal fixtures & toilets req. structure only) Materials, scale Yes Yes; minimize Yes Yes Yes and design windows to adjacent match principal properties D.U. Home Allowed as a Total of one home Occupations portion of the occupation in principal structure either principal or allowance ADU. Appendix 4—ADU Summary (July, 2010) - DRAFT ULI MN /RCM - Eagan Opportunity City Page 4 2010 Excensus Change Report — Eagan, MN ULI MN /Regional Council of Mayors — Opportunity City September 7, 2010 (Revised Draft) Summary This report spans a recent and critical period of demographic and economic changes in the City of Eagan. The initial years, May 2004 through April 2006, reflect an expanding housing market with increasing housing availability and demographic gains in all age categories. The second phase, from May, 2006 through April, 2008, shows a reversal in the region's housing market with dramatically reduced resident turnover. In the final year, May of 2008 through April of 2009, there are initial signs of a housing market recovery for some demographic segments. These economic swings have affected communities and household age groups in different ways. Overall, Eagan has a stable household base with some diversity of housing options, in both owner and renter - occupied housing. The City has experienced interesting changes in household characteristics including the types of housing that residents are living in. The most significant trend is the drop in turnover of households, particularly for those 55 and over living in single family homes. While low turnover indicates that residents may be happy with their housing choice, turnover that is too low could reduce opportunities for younger households to locate in the City or could indicate that older residents are not able to move due to underwater mortgages, loss of jobs or lack of downsizing options. The following observations are intended to provide a basis for Eagan's policy discussions as part of the Opportunity City Program. Household Growth. From 2004 to 2009, the City saw its occupied housing base grow from 24,752 to 25,588 households. There was a net loss of households under age 55 (- 1,313) while significant increases were seen in households ages 55 or more ( +2,149). In 2009, twenty -five percent of the City's households were age 55 or older. Much of the gain in the age 55+ category can be attributed to "aging in place ". Turnover: The housing turnover rate (the rate that the City's housing is changing hands) declined steadily over the period and particularly during the housing downturn beginning in 2007. Average turnover (2004 -09) was significantly lower for older households age 55 to 74 (at 3.8 %) than it was for households under age 35 (14.8 %) and ages 35 to 54 (5.5%). Turnover appears to have bottomed out in the 2007/2008 period when single family detached housing dropped to 1.8 percent and apartments dropped to 12.6 percent. In 2009, turnover rebounded to 2.1 percent for single family detached housing and 15.1 percent for apartments. Even with the rebound, housing turnover in 2009 was still well below the levels at the start of the period. Seventy percent of all households did not move during this five year period. Mix. Between 2004 and 2009, owner - occupied housing dropped only marginally as a percent of all housing from 74.1 to 73.7 percent. Occupied single family housing dropped from 60 to 58 percent of all housing in Eagan. The percent of single family detached homes in 2009 that were rented was a relatively low 1.8 percent. Nearly half (47.8 %) of the City's young households (under age 35) were in rental apartments. This percentage is high relative to the 33.6 percent for Dakota County as a whole. Nineteen percent of the young households in Eagan were owners of single family detached housing and 20.9 percent were owners of a multi - family unit. Value of Housing. A very small percent (3%) of the owned single family detached homes in 2009 were valued at less than $200,000 of which 14 percent were occupied by households under age 35. Homes valued at $300,000 or more accounted for 47 percent of all housing in the City. Households age 55 or older occupied 33 percent of these higher value "move -up" homes. Between 2004 and 2009, there was a 12 percent increase in homes under $200,000 owned by households age 55 or older. • Age of Single Family Housing. Two- thirds of the City's owned single family detached housing was built between 1980 and 1999 and approximately 3,650 housing units were built before 1980. With low turnover and aging in place, two hundred of these older homes are now occupied by households ages 75 or older. • Retention. From 2004 to 2009, twenty -eight percent of the Eagan households that moved within the 7- county area ended up choosing another home in Eagan. Households in either owned single family housing or rental apartments are the most likely to choose another home in the City. • Migration. Half of the household moves into the City (2004 to 2009) from within the metro area came from St. Paul, Minneapolis, or Bloomington. Half of all residents that moved from Eagan chose a home in St. Paul, Minneapolis, Bloomington, Woodbury, Richfield, Eden Prairie, or Savage. • Foreclosures. Sheriff's sale home foreclosures increased more than four -fold from 2004 to 2008 (49 foreclosed homes in 2004 to 220 homes in 2009). Just over half (56 %) of these foreclosures involved resident households between the ages of 35 and 54. The trends were sharply up between 2004 and 2008, but down in 2009. 2 Report Findings: Availability of housing is just as important to a household wishing to move into the City as home style, location, and affordability. Eagan has a mix of housing that is helping to ensure that housing options remain available even during a slowdown in the housing market. This mix is important since much of the City's single family housing stock has not been turning over fast enough to ensure that incoming households have sufficient housing choices. With opportunities to develop vacant land and redevelop older apartments and housing developments, the City remains in a good position to once again provide housing choices that can meet the needs of new households, growing families, and existing single family residents seeking other housing in Eagan. Housing needs are changing. These changes are being driven by long term population aging patterns as well as the recent downturn on the economy. This report uses detailed, household -level tracking data based on actual counts to show how the City's household base has changed over the period from May of 2004 to May 2009. This information was developed by Excensus LLC using data shared for research purposes by state and local governmental units. Definitions and a description of the methodology used in developing this data set are provided at the end of this report. Eagan Demographic and Housing Profiles (2004 to 2009) A. Trends in Householder Ages 2004 to 2009 Eagan has a resident base dominated by households ages 35 to 54. The large number of middle aged residents coupled with low housing turnover, is causing the City's demographic profile to age rapidly. Household Age Curve - Eagan Householder Ages (May, 2010) 3 In 2009, there were 25,588 occupied housing units in Eagan. Nearly half (49.1 %) of all head -of- households were between the ages of 35 and 54 and another 29 percent were between 55 and 74 years of age. One third were age 55 or older. Eagan Householder Ages (May, 2004) Householder Ages (May, 2009) 2004 2009 There were 1,313 fewer householders under age 55 in 2009 than in 2004. The number of households under age 55 increased during the years of the expanding housing market (2004 to 2006) but all of this growth was lost in the later years with the downturn in the housing market. Households age 55 to 74 increased significantly — growing by 1,870 households. The number of older households (ages 75 or more) increased by 279 during this same period. Much of the gains in both groups can be attributed to "aging in place." Eagan Households by Age (2004 to 2009) 16,000 - - -- — i 14,000 12,000 I 10,000 t Under Age 35 1 8,000 -0— Age 35 to 54 j 6,000 Age 55 to 74 1 4,000 --'-"—Age Age 75+ I 2004 2005 2006 2007 2008 2009 B. Household Aeine There are costs to an aging household base. Local commercial areas, built on an expectation of young families or workers, may become less viable in the face of an aging community. Community services may have to retool to meet the changing needs of an aging community. And, as workers age, employers may feel the need to relocate in order to find the workforce they need. For local workers, commuting distances to work may increase. Furthermore, there is an impact to local schools as families with children age and leave the community and are not replaced. The primary cause of community aging is "aging in place." Households that would otherwise move to accommodate a growing family or to meet the needs of a changing lifestyle choose instead to remain in their existing homes. With only limited turnover, housing availability is reduced and there are fewer opportunities to attract and retain a more balanced mix of households. Seventy percent of all Eagan's households remained in their existing home through the period 2004 to 2009. For households age 55 and older, eighty -seven percent remained in place through this period. 4 Eagan Households — Year Moved into Current Dwelling Under Age 35 ■ < 2004 1 Age 35 to 54 ■ 2004/05 2005/06 Age 55 to 74 ■ 2006/07 j Age 75+ ■ 2007/08 2008/09 0% 20% 40% 60% 80% 100% Net # of Householders that Aged into ( +) or Aged out of 0 an Age Category by Year Under Age 35 Age 35 to 54 Age 55 to 74 Age 75+ 2004/2005 (491) (36) 388 139 2005/2006 (449) (140) 445 144 2006/2007 (448) (190) 489 149 2007/2008 (411) (228) 500 139 2008/2009 (428) (218) 490 156 Source: Excensus LLC Eagan currently needs 428 new households (under age 35) each year (9% of total) just to maintain its existing base of younger households. Conversely, 156 householders age 75 or older (18% or their total) would need to move out of the City and be replaced by younger households each year for this age segment to keep from growing. The impact of aging in place can be mitigated overtime through new housing construction or by leveraging turnover so that as existing households move they are replaced with younger households. C. The Demographics of Homeownership — 2004 to 2009 Overall, 73.7 percent of the City's households live in owner - occupied housing. Owner - occupied single family housing accounts for about half (51.8 %) of the City's housing stock. Forty -two percent of all households under age 35 are homeowners. These households are using a wide variety of owned and renter - occupied housing. Forty -one percent of the City's 6,728 rental units are in the hands of households under the age of 35. This is higher than Dakota County's average of 34.7 percent indicating that younger households in Eagan are more dependent on rental housing options. (Note that nursing homes are not included in this analysis.) Eagan Homeowners and Renters — Percent by Householder Age Group (2009) Householder Age All HHs Owners Pct. Owners Renters Pct. Renters Under Age 35 4,825 2,010 41.7% 2,815 58.3% Age 35 to 54 12,562 9,965 79.3% 2,597 20.7% Age 55 to 74 7,321 6,284 85.8% 1,037 14.2% Age 75+ 880 601 68.3% 279 31.7% Occupied Housing Units 25,588 18,860 73.7% 6,728 26.3% Source: Excensus LLC 5 Eagan Age Curve — Homeowners and Renters by Householder Ape (2009) Eagan's Owners and Renters Homestead Status by Householder Age (2009) (Data set covers 25,588 households') Source:Excensus LLC 1500 -- — 1250 3. ____. ____. ....__. __ _....... Homeowners comprise ___ ._.. ... ....__I i 73.7% of all households 1000 -- -- - _ and 41.7%of households__ 9 77i 7. ......... _____. under age 35 ___..... ....... _.. ....... z750 V 3 500 - `o 250 0 _.- V 0 250 _ _ • _.... .....__. ......... ........_.._. ._.__.._ ____. ......_.__... 500 _..... ____ ...... ____. Percent Homeowners: __.......... _.__ ... .... _. 750 41.7% 79.3% 85.8% 68.3% 1000 Householder Ages The Metropolitan Councils 2008 household was 25,561. i IE� Eagan's homeowner base is aging — with significantly more households age 55 or older in 2009 than at the start of the period. The number of homeowners under age 35 dropped by 205 and homeowners between 35 and 54 dropped by 1,171. Usage of rental housing increased for households age 55 to 74 but was relatively stable for all other groups. Homeowners by Householder Age (2004 to 2009) 12,000 i I 10,000 �- i I 8,000 i - -� Under Age 35 6,000 j— ._ -- " ' --W- Age 35 to 54 4,000 ( .............- -&- Age 55 to 74 2,000 ��♦ ♦ --0 • ♦ -Age 75+ 2004 2005 2006 2007 2008 2009 Renters by Householder Age (2004 to 2009) I D. Housing Usage and Home Tax Values — 2004 to 2009 Owner- occupied single family detaching housing dominates housing usage for the two middle age categories. Each age group, however, shows a significant share of other owned and rental options. This is particularly true for households under age 35 and those ages 75 or more where there is a large concentration in owned single family, owned and rental multi - family, and apartments. Currently, 252 households age 75 or more are living in owned single family housing. This is a relatively small (2 %) portion of the City's single family detached housing. All Households by Housing and Ownership Type (2009) All Households in 2009 Households Under Age 35 HH Under Age 35 H H Age 55 to 74 290 ■ Owned SFD j 101 ■ Rental SFD 121 ® Duplex/Triplex of Total ■ Owned M F 13,258 ■Rental MF j j� 1 ■ Rental Apt Households Ages 55 to 74 All Households in 2009 H H Age 55 to 74 290 Occupied ■ Owned SFD Housing Type ■ Rental SFD of Total • Duplex/Triplex 13,258 • Owned MF Rental SFD • Rental MF 131 ■ Rental Apt 84 I All Households in 2009 Occupied Percent Housing Type Dwellings of Total Owned SFD 13,258 51.8% Rental SFD 459 1.8% Duplex /Triplex 557 2.2% Owned MF 5,197 20.3% Rental MF 1,192 4.7% Rental Apt 4,925 19.2% All Occupied Units 25,588 100.0% Households Age 35 to 54 Households Ages 75+ 7 The tables below show the changes in housing usage since 2004. The most significant changes are in single family housing and owned multifamily housing. An increasing proportion of this housing is owned by households ages 55 or older and a decreasing share by younger households. Some of this may be related to increases in home foreclosures in recent years. A reduction in the base of young households could also affect the City's ability to attract other young homebuyers to existing homes and may impact school enrollment levels for those neighborhoods with increased aging and fewer young households. Housing Usage Trends by Householder Age (2004 to 2009) All Occupied Housing Units 14,000 ....... .._._... ......... ... i 12,000 ..__.. -# -Owned SFD -+ -Owned SFD 10,000 12,997 -i- RentaISFD Rental SFD 8,000 .................... ! Duplex/Trip lex ! 6,000 ' 1,000 , �.... -fie -Owned MF 4,000 - (10) --ok- Rental MF -+- Rental MF 2, 000 Rental Apt 2004 2005 2006 2007 2008 2009 Rental Apt 2004 2005 2006 2007 2008 2009 31 Households Under Age 35 3,000 - i 2,500 ..__.. -# -Owned SFD -4-Owned SFD 2,000 12,997 -i- RentaISFD - 1,500 ----- - - - - -- - - Duplex /Triplex ' 1,000 , �.... -- r�Owned MF 500 (10) --ok- Rental MF - Rental MF 500 .... - - �..... T � •�� Rental Apt 2004 2005 2006 2007 2008 2009 ......... ... - ......... ....... Households Age 55 to 74 ......... ......_ .... __. 5,000 7 ....... .. ............................... . .... ................ .... - Housing Types - All Occupied Units 4,500 ......_. 2004 4,000 -4-Owned SFD 3,500 12,997 13,258 f RentaISFD 3,000 ................. ............................... i 454 2,500 .._.__ ......... ................. -- Duplex /Triplex ! 2,000 Y --4-,-Owned MF 1,500 iF (10) 1,000 .... - Rental MF 500 .... - - �..... T � •�� f Rental Apt 2004 2005 2006 2007 2008 2009 I L__.. ..... ......................... ................................................. ..... ......... _......... ............ ...... .......__. __.... Housing Usage - 2004 to 2009 Households Age 35 to 54 10,000 9,000�� 8,000 ....... 7,000 ....................................... .......................... -0 -Owned SFD _ _ ... 6,000 Rental SFD 5,000 4,000 -- Duplex /Triplex 3,000 - - - -- -- OwnedMF 2,000 1,000 .............................................. - e- RentalMF -•Q- Re nta l Apt 2004 2005 2006 2007 2008 2009 Households Ages 75+ 8 . . ........ ... ..... . ...... . . goo Housing Types - All Occupied Units Housing Types 2004 2,009 Chg'04 -'09 Owned SFD 12,997 13,258 261 Rental SFD 454 459 5 Duplex/Triplex 567 557 (10) Owned MF 4,892 5,197 305 Rental MF 1,161 1,192 31 Rental Apt 4,635 4,925 290 All Occupied Units 24,706 25,588 882 Households Age 35 to 54 10,000 9,000�� 8,000 ....... 7,000 ....................................... .......................... -0 -Owned SFD _ _ ... 6,000 Rental SFD 5,000 4,000 -- Duplex /Triplex 3,000 - - - -- -- OwnedMF 2,000 1,000 .............................................. - e- RentalMF -•Q- Re nta l Apt 2004 2005 2006 2007 2008 2009 Households Ages 75+ 8 . . ........ ... ..... . ...... . . goo ........ . ........ 350 300 tOwned SFD 250 -f- RentaISFD 200 �- -- •-•A -- Duplex /Triplex 150 - - -Owned MF 100 Rental MF 50 .< .... e�- Rental Apt 2004 2005 2006 2007 2008 2009 The City has a relatively small base of affordable single family homes. This study identified 13,258 owner- occupied single family detached homes in Eagan. Twenty -nine percent had a tax value in 2009 under $250,000 and just four percent were valued at less than $200,000. Single Family Homeownership bV Tax Value of Home (2009) Households under the age of 35, apart from an apparent resurgence in 2009, have been moving away from the higher priced single family homes. Households age 35 to 54 also declined in all but the lowest price range. Rather than young households leaving Eagan, this pattern suggests that there are not enough new homeowners coming into the City to overcome the inertia of households aging in place. Mix of Owned Single Family Homes by Tax Value (2009) and Age of Householder Households Under Age 35 Households Age 35 to 54 508 ...................................................................................... ............................... 450 M ..._._.._._-- 4 0 0 ...._ .................... .. ._...._....... ._............................. ..... 350 - 300 -i -LT 5200K 258 -!- $200 -249K 200 150 ............... $250 -299K 100 — i=GE$300K 50 0 2004 2005 2406 2807 2008 2009 Households Age 55 to 74 2500 .................................... ..... ..... ........._...................... ............................... j 2000 t 1500 �" ' t LT$200K ?E" --*--$200-249K 1000 I $250 -299K 500 —�E —GE $300K i 0 2004 2005 2006 2007 2008 2009 Households Ages 75+ E. Usaee and Aee of Owned Sinele Family Detached Homes The City's owned single family detached housing is aging. Just over a quarter of these homes (3,450 units) were built before 1980 and half of all owned single family homes were built before 1986. As these homes age, maintenance becomes increasingly more important. VJ Ape of Owned Single Family detached Housing in Eagan (2009) As indicated earlier, the share of younger households in owned single family housing has been decreasing. Most of this decline is seen in homes built between 1980 and 1999. Due to slow turnover and aging in place, a growing proportion of the homes built before 1980 are in the hands of households ages 55 and older. Two hundred of these homes are occupied by households ages 75 or older. The city can expect this trend to continue and the need for housing maintenance services to increase with it. Mix of Owned Single Family Homes by Year Built and Age of Householder Households Under Age 35 Households Age 35 to 54 Households Age 55 to 74 3000 i 2500 ..................................................... ............................... ............. 2000 - 0 Before 1960 1500 _ ...... .:........................ .......... .... -1- 1960 -1979 I 1000 *- - -1980 -1999 500 ? ....................................................................... ............................... �F 2000 or later I 0 - 2004 2005 2006 2007 2008 2009 Households Ages 75+ F. Housing Usage and New Birth Families — 2004 to 2009 The number of new births in the metro area tends to remain relatively stable year to year. Between 2004 and 2009, the number of Eagan households with new births increased by 2.9 percent. Births by households in owned single family housing, however, decreased by 15 percent. There were steady increases in birth families living in both multi - family units and apartments. Over the period, forty -five percent of the City's new births occurred in housing other than an owner- occupied single family home. Sixteen percent of these non - traditional housing units had a birth reported during the period 2004 to 2009. This trend towards more families with young children living in non - traditional 10 housing is a metro wide trend and points up the changing expectations for rental and multifamily housing. Housing Usage by Eagan New Birth Families (2004 to 2009) NewHousType 2004 2005 2006 2007 2008 2009 Total Pct. Of Total Owned SFD 422 426 410 412 364 359 2,393 54.8% Duplex/Triplex Rental SFD 27 21 21 20 16 24 129 3.0% 3.9% Duplex/Triplex 19 21 26 25 16 25 132 3.0% 18.9% Owned MF 102 113 96 110 121 127 669 15.3% Rental MF 25 24 20 25 36 42 172 3.9% Rental Apt 140 122 139 146 149 179 875 20.0% All Housing Units 735 727 712 738 702 756 4,370 100.0% Sources : MN Dept of Health, Public Birth Records, Excensus LLC G. Housing Turnover and Retention - 2004 to 2009 Household turnover is a measure of mobility and an important indicator of housing availability. Turnover is defined as the percentage of all households that moved from their home in a given year. In 2009, Eagan's turnover rate was at 5.7 percent. This is a moderate rate, but well below the City's 8.7 percent rate at the beginning of the period. The fact that this rate is up from 2008, shows some increasing housing market activity - a positive outcome following the housing downturn in 2007/2008. While slow turnover rates are seen across the metro area, the City's 2009 single family homeowner turnover rate of 2.1 percent is at the low end of the 2.5 to 3.0 percent range seen in other metro area communities. This rate is also up from the rate in 2007/2008. The turnover rate differs dramatically depending on type of housing - ranging from two percent for moves from owner- occupied single family housing to 15 percent for moves from rental apartment units. The low turnover for owner- occupied single family households translates into limited availability of owner- occupied housing in the City for new households wishing to move into the City and for existing households looking to move within the City. Housing Turnover Trends in Eagan - May 2004 through April 2009 Percent of All HHs that Moved Housing Types 2004/05 2005/06 2006/07 2007/08 2008/09 Owned SFD 3.8% 3.4% 2.7% 1.8% 2.1% Rental SFD 13.8% 11.9% 11.6% 7.0% 9.8% Duplex/Triplex 13.1% 7.8% 8.3% 7.2% 7.0% Owned MF 8.8% 7.3% 6.4% 3.9% 4.4% Rental MF 14.5% 14.1% 13.4% 8.1% 10.2% Rental Apt 20.1% 18.9% 16.9% 12.6% 15.1% All Occupied Units 8.7% 8.0% 7.0% 4.8% 5.7% Source: Excensus LLC Turnover rates, particularly for owned single family detached homes, have been falling steadily through most of this period. Turnover dropped in other types of housing as well, but not to the same degree. As single family turnover has decreased, rental apartments and multi - family properties have been taking on a more significant role providing a foothold for new households wishing to find a home in the City, providing transitional housing, and supporting a broader range of households types and needs. The section of new birth families supports this point. 11 Of the 8,608 households that moved from a home in Eagan during this five year period, fifty -seven percent (4,978) were tracked to a new residential address in the 7- county metro area. Twenty -eight of these moves both originated and ended in Eagan. Existing Eagan households represent a substantial share of the market for housing in Eagan. Turnover and Retention - All Eagan Household Moves (May, 2004 to May, 2009) Source: Excensus LLC This next table shows turnover of households under age 35. This group had higher levels of turnover across all housing types (14.8 percent) including owner- occupied housing (7.2 percent). Twenty -three percent of these younger Eagan households were able to find another residence in Eagan. Turnover and Retention - Moves by Households under Age 35 (May, 2004 to May, 2009) All HH Ages Moved Turnover Relocated in Eagan Housing Types 5 -year Base 2004 -09 Rate 7 -Co. Area Eagan Retention Owned SFD 65,688 1,805 2.7% 1,147 328 28.6% Rental SFD 2,223 240 10.8% 139 32 23.0% Duplex/Triplex 2,793 243 8.7% 154 37 24.0% Owned MF 25,388 1,550 6.1% 858 221 25.8% Rental MF 5,881 712 12.1% 415 118 28.4% Rental Apt 24,274 4,058 16.7% 2,265 660 29.1% All Occupied Units 126,247 8,608 6.8% 4,978 1,396 28.0% Source: Excensus LLC This next table shows turnover of households under age 35. This group had higher levels of turnover across all housing types (14.8 percent) including owner- occupied housing (7.2 percent). Twenty -three percent of these younger Eagan households were able to find another residence in Eagan. Turnover and Retention - Moves by Households under Age 35 (May, 2004 to May, 2009) Source: Excensus LLC Turnover drops sharply starting with households age 35 to 54. Turnover among households age 55 to 74 age groups (55 or older) was the lowest overall at 3.8 percent and for owned single family housing at two percent. Retention rates were highest for households age 35 to 54. Turnover and Retention - Moves by Households Age 35 to 54 (May, 2004 to Mov, 2009) HHs <35 Moved Turnover Relocated in Eagan Housing Types 5 -year Base 2004 -09 Rate 7 -Co. Area Eagan Retention Owned SFD 4,833 347 7.2% 242 56 23.1% Rental SFD 450 72 16.0% 44 9 20.5% Duplex/Triplex 578 79 13.7% 51 9 17.6% Owned MF 5,263 557 10.6% 314 59 18.8% Rental MF 1,705 286 16.8% 175 38 21.7% Rental Apt 11,814 2,299 19.5% 1,322 340 25.7% All Occupied Units 24,643 3,640 14.8% 2,148 511 23.8% Source: Excensus LLC Turnover drops sharply starting with households age 35 to 54. Turnover among households age 55 to 74 age groups (55 or older) was the lowest overall at 3.8 percent and for owned single family housing at two percent. Retention rates were highest for households age 35 to 54. Turnover and Retention - Moves by Households Age 35 to 54 (May, 2004 to Mov, 2009) Source: Excensus LLC 12 HHs 35 -54 Moved Turnover Relocated in Eagan Housing Types 5 -year Base 2004 -09 Rate 7 -Co. Area Eagan Retention Owned SFD 42,115 1,078 2.6% 696 226 32.5% Rental SFD 1,266 126 10.0% 74 19 25.7% Duplex/Triplex 1,603 134 8.4% 86 24 27.9% Owned MF 10,636 641 6.0% 375 119 31.7% Rental MF 2,241 281 12.5% 161 55 34.2% Rental Apt 8,886 1,390 15.6% 760 257 33.8% All Occupied Units 66,747 3,650 5.5% 2,152 700 32.5% Source: Excensus LLC 12 Turnover and Retention - Moves by Households Age 55 to 74 (May, 2004 to May, 2009) Source: Excensus LLC Turnover and Retention - Moves by Households Age 75 or more (May, 2004 to May, 2009) HHs 55 -74 Moved Turnover Relocated in Eagan Housing Types 5 -year Base 2004 -09 Rate 7 -Co. Area Eagan Retention Owned SFD 17,781 349 2.0% 197 43 21.8% Rental SFD 449 39 8.7% 20 4 20.0% Duplex/Triplex 592 28 4.7% 15 3 20.0% Owned MF 8,127 301 3.7% 142 38 26.8% Rental MF 1,379 122 8.8% 69 22 31.9% Rental Apt 2,923 337 11.5% 172 61 35.5% All Occupied Units 31,251 1,176 3.8% 615 171 27.8% Source: Excensus LLC Turnover and Retention - Moves by Households Age 75 or more (May, 2004 to May, 2009) Source: Excensus LLC H. Housing Choices - Housing Type Before and After the Move Choices in housing are important to Eagan residents. Between May 2004 and May 2009 a total of 4,689 households moved into an Eagan home from a home either in Eagan or elsewhere in the 7- county metro area. A quarter of these moves were to an owned single - family. Of these moves to single family housing, two- thirds (771 households) had come from another single family home. Most of the remaining third came from an apartment or condo /townhome. Of the 1,931 households entering an apartment in the City, forty -two percent had been previously living in a single family home and 44 percent had come from another apartment. All Households Moving Into a Home in Eagan (May, 2008 to May, 2009) HHs 75+ Moved Turnover Relocated in Eagan Housing Types 5 -year Base 2004 -09 Rate 7 -Co. Area Eagan Retention Owned SFD 959 31 3.2% 12 3 25.0% Rental SFD 58 3 5.2% 1 13.4% 0.0% Duplex/Triplex 20 2 10.0% 2 1 50.0% Owned MF 1,362 51 3.7% 27 5 18.5% Rental MF 556 23 4.1% 10 3 30.0% Rental Apt 651 32 4.9% 11 2 18.2% All Occupied Units 3,606 142 3.9% 63 14 22.2% Source: Excensus LLC H. Housing Choices - Housing Type Before and After the Move Choices in housing are important to Eagan residents. Between May 2004 and May 2009 a total of 4,689 households moved into an Eagan home from a home either in Eagan or elsewhere in the 7- county metro area. A quarter of these moves were to an owned single - family. Of these moves to single family housing, two- thirds (771 households) had come from another single family home. Most of the remaining third came from an apartment or condo /townhome. Of the 1,931 households entering an apartment in the City, forty -two percent had been previously living in a single family home and 44 percent had come from another apartment. All Households Moving Into a Home in Eagan (May, 2008 to May, 2009) 13 Eagan HHs ('04 -09) Previous Housing Types for Incoming Households Eagan Housing Move -Ins Percent Single Family Duplex /Triplex d Cono /TH Mobile Home Apartment Owned SFD 1,158 24.7 0 6.6% 3.2% 13.4% 0.8% 16.1% Rental SFD 131 % T. 3.8% 13.0% 0.0% 22.1% Duplex/Triplex 134 2.9% 36.6% 7.5% 7.5% 3.0% 45.5% Owned MF 980 20.9% 3.1% 12.0% 0.8% 33.4% Rental MF 355 7.6% 47.3% 3.9% 13.5% 1.4% 33.8% Rental Apt 1,931 41.2% % 42.2 3.3% 8.9% 1.2% 44.4% Grand Total 4,689 100.0% 50.8% 3.4% 11.1% 1.0% 33.7% Source: Excensus LLC 13 13 In looking at single family residents that moved out of a home in Eagan, nearly three - quarters (73%) moved to another single family home and 44 percent of those leaving an apartment moved to a single family home. Overall, fifty -seven percent of all moves ended in a single family home. Households Moving from a Home in Eagan (2004 to 2009) Eagan HHs ('04 -09) Distribution of Destination Housing Types for Move -out Households Move -Outs Percent Sin le Family Duplex/Triplex Condo /TH lobile Home Apartment 1,054 24.7% Owned SFD 1.8% 18.0% Eagan Housing 6.4% 132 3.1% 74.2% 0.8% 14.4 °k 1.5% Owned SFD 137 3.2% 65.7 °� 5.8% 12.4% 2.2% 13.9% 745 Rental SFD 60.9% 2.4% 22.0% 0.8% 13.8% 342 8.0% 55.0% Duplex/Triplex 20.2% 0.3% 20.2% 1,864 43.6% 44. % 3.5% 17.5% Owned MF 33.0% 4,274 100.0% 57.1% 3.0% 18.4% 0.9% 20.7% Rental MF 898 176 Owned MF 90 32 36 18 20 25 Rental Apt 2,187 458 413 240 Rental MF 67 62 48 Grand Total Rental Apt Source: Excensus LLC Eagan HHs ('04 -09) Distribution of Destination Housing Types for Move -out Households Move -Outs Percent Sin le Family Duplex/Triplex Condo /TH lobile Home Apartment 1,054 24.7% Owned SFD 1.8% 18.0% 0.4% 6.4% 132 3.1% 74.2% 0.8% 14.4 °k 1.5% 9.1% 137 3.2% 65.7 °� 5.8% 12.4% 2.2% 13.9% 745 17.4% 60.9% 2.4% 22.0% 0.8% 13.8% 342 8.0% 55.0% 4.4% 20.2% 0.3% 20.2% 1,864 43.6% 44. % 3.5% 17.5% 1.1% 33.0% 4,274 100.0% 57.1% 3.0% 18.4% 0.9% 20.7% A total of 1,479 Eagan households moved to another home in the City over the five year period. Seventy -three percent of all single family homeowners found another single family home in the City and about half (47.2%) of all apartment renters moved to another apartment in the City. Twenty -eight percent of apartment renters moved to a single family dwelling. This compares to 35.7 percent for Dakota County as a whole. Housing Choices for Eagan Moves that began and ended in Eagan (2004 to 2009) In -City Moves (2004 -09) Type of Housing After the Move (2004 -2009) Move -Outs Percent Eagan Housing Duplex/Triplex Condo /TH lobile Home Apartment 415 Owned SFD 73.7% 1.9 °� 17.8% 0.2% Rental SFD 46 3.1% 73.9% 0.0% Duplex/Triplex 2.2% 6.5% 41 2.8% Owned MF 12.2% 9.8% 0.0% 17.1% Rental MF 16.6% 58.9% 1.6% 25.6% Rental Apt 13.4% 113 7.6% 46.9% Grand Total 27.4% 0.0% 22.1% 618 Source: Excensus LLC In -City Moves (2004 -09) Type of Housing After the Move (2004 -2009) Move -Outs Percent Single Family Duplex/Triplex Condo /TH lobile Home Apartment 415 28.1% 73.7% 1.9 °� 17.8% 0.2% 6.3% 46 3.1% 73.9% 0.0% 17.4% 2.2% 6.5% 41 2.8% 61.0% 12.2% 9.8% 0.0% 17.1% 246 16.6% 58.9% 1.6% 25.6% 0.4% 13.4% 113 7.6% 46.9% 3.5% 27.4% 0.0% 22.1% 618 41.8% 28.0% 5.5% 18.6% 0.6% 47.2% 1,479 100.0% 49.8% 3.7% 19.9% 0.5% 26.1% I. Household Migration - Eagan's Resident Origins and Destinations Between 2004 and 2009, half (51%) of all metro area moves into Eagan came from three cities (St. Paul, Minneapolis, and Bloomington). Top Metro Area Origination Cities for Moves into Eagan (May, 2004 to May, 2009) Move -Ins Top Origination Cities for New HH Moves into Eagan (2004 -2009) New to Co. St. Paul Minneapolis Bloomington Richfield Woodbury Eden Prairie St. Louis Park Savage Cottage Grove 519 113 105 56 35 19 21 17 11 4 59 17 Eagan Housing 7 1 - Owned SFD 3 - 1 42 9 12 5 4 - 2 1 Rental SFD 2 518 118 82 67 26 14 22 17 10 5 Duplex/Triplex 25 35 15 8 9 3 4 2 4 898 176 Owned MF 90 32 36 18 20 25 24 2,187 458 413 240 Rental MF 67 62 48 40 Rental Apt Grand Total Source: Excensus LLC Move -Ins Top Origination Cities for New HH Moves into Eagan (2004 -2009) New to Co. St. Paul Minneapolis Bloomington Richfield Woodbury Eden Prairie St. Louis Park Savage Cottage Grove 519 113 105 56 35 19 21 17 11 4 59 17 15 7 1 - 1 3 - 1 42 9 12 5 4 - 2 1 - 2 518 118 82 67 26 14 22 17 10 5 151 25 35 15 8 9 3 4 2 4 898 176 164 90 32 36 18 20 25 24 2,187 458 413 240 106 78 67 62 48 40 14 Of those households that moved out of Eagan, half ended up in one of these seven neighboring cities: St. Paul, Minneapolis, Bloomington, Woodbury, Richfield, Eden Prairie, or Savage. Top Destination Cities for Moves from Homes in Eagan (May, 2004 to May, 2009) The table below shows those households that moved from Eagan to a single family home in one of the other six metro area counties. Half of these moves were to these seven cities: Minneapolis, St. Paul, Woodbury, Bloomington, Cottage Grove, Savage, and Shakopee. Top Destination Cities for Eagan Household Moves to a Single Family Dwelling (2004 -2008) Top Destination Cities for Moves to a Single Family Home Outside of Eagan (2004 -2009) Minneapolis St. Paul Woodbury Bloomington Cottage Grove Savage Shakopee Blaine Brooklyn Park Outside of City 204 14 24 25 Move out 7 4 Top Destination Cities for Moves out of Eagan (2004 -2009) 6 2 32 St. Paul Minneapolis Bloomington Woodbury Richfield Eden Prairie Savage Cottage Grove Edina Eagan Housing of City 1 Owned SFD 302 44 29 13 27 6 15 10 8 8 1 Rental SFD 43 9 2 3 - 2 16 1 2 15 9 Duplex/Triplex 151 28 22 13 6 3 5 3 1 2 822 Owned MF 106 82 38 35 34 29 28 15 1,683 251 205 Rental MF 89 63 61 60 50 36 Rental Apt Source: Excensus LLC Grand Total Source: Excensus LLC The table below shows those households that moved from Eagan to a single family home in one of the other six metro area counties. Half of these moves were to these seven cities: Minneapolis, St. Paul, Woodbury, Bloomington, Cottage Grove, Savage, and Shakopee. Top Destination Cities for Eagan Household Moves to a Single Family Dwelling (2004 -2008) Top Destination Cities for Moves to a Single Family Home Outside of Eagan (2004 -2009) Minneapolis St. Paul Woodbury Bloomington Cottage Grove Savage Shakopee Blaine Brooklyn Park Outside of City 204 14 24 25 9 7 4 6 6 2 32 2 3 - Eagan Housing 2 1 Owned SFD 1 2 30 8 - 2 5 2 1 1 - Rental SFD 184 - 42 2 9 6 2 2 1 2 2 - 323 35 37 28 16 15 6 15 9 11 151 28 22 13 6 3 5 3 1 2 822 133 106 82 38 35 34 29 28 15 1,683 251 205 145 89 63 61 60 50 36 The table below shows those households that moved from Eagan to a single family home in one of the other six metro area counties. Half of these moves were to these seven cities: Minneapolis, St. Paul, Woodbury, Bloomington, Cottage Grove, Savage, and Shakopee. Top Destination Cities for Eagan Household Moves to a Single Family Dwelling (2004 -2008) Moves to SF Top Destination Cities for Moves to a Single Family Home Outside of Eagan (2004 -2009) Minneapolis St. Paul Woodbury Bloomington Cottage Grove Savage Shakopee Blaine Brooklyn Park Outside of City 204 14 24 25 9 7 4 6 6 2 32 2 3 - Eagan Housing 2 1 Owned SFD 1 2 30 8 - 2 5 2 1 1 - Rental SFD 184 25 16 13 9 9 10 5 2 7 86 Duplex/Triplex 5 - 3 1 2 1 418 67 68 24 33 Owned MF 12 14 11 7 954 130 125 68 64 37 31 Rental MF 22 21 Rental Apt Grand Total Source: Excensus LLC Moves to SF Top Destination Cities for Moves to a Single Family Home Outside of Eagan (2004 -2009) Minneapolis St. Paul Woodbury Bloomington Cottage Grove Savage Shakopee Blaine Brooklyn Park Outside of City 204 14 24 25 9 7 4 6 6 2 32 2 3 - 3 2 1 1 1 2 30 8 - 2 5 2 1 1 - 2 184 25 16 13 9 9 10 5 2 7 86 14 14 4 5 - 3 1 2 1 418 67 68 24 33 17 12 14 11 7 954 130 125 68 64 37 31 28 22 21 J. Home Foreclosure (Sheriff's Sale) Demographics — 2004 to 2009 Sheriff's sale home foreclosures increased more than four -fold from 2004 to 2008 (49 foreclosed homes in 2004 to 220 homes in 2009). Just over half (56 %) of these foreclosures involved resident households between the ages of 35 and 54. The trends were sharply up between 2004 and 2008, but down in 2009. Washington County Sheriff's Sale Foreclosures by Resident Householder Age (2004 to 2009) Eagan Foreclosure Trends (2004 -09) Householder Age 2004 2005 2006 2007 2008 2009 Under Age 35 18 16 22 49 55 17 Age 35 to 54 24 44 67 93 122 44 Age 55 to 74 7 8 20 34 41 18 Age 75+ - 1 2 1 Foreclosed Total 49 68 109 177 220 80 Source: Excensus LLC 15 On a proportionate basis, household under the age of 35 and ages 35 to 54 have been equally hard hit. Overall, less than one percent (0.35%) of households under age 54 had a foreclosed property in 2009. Trends in Eagan Foreclosures (2004 to 2009) 140 .................................................................................................................. ............................... E 120 ! 100 80 -4- Under Age 35 60 - -*-Age 35 to 54 40 Age 55 to 74 Age 75+ or 20 2004 2005 2006 2007 2008 2009 Resident Householders in Foreclosed Homes as a Percent of All Households (2009) Eagan Foreclosures as Pct. of All HHs (2009) Housing Type Chosen Following 7- County Metro Area Move Move -Outs HHs in Foreclosured Units Householder Age All HHs Total Percent Under Age 35 4,825 17 0.35% Age 35 to 54 12,562 44 0.35% Age 55 to 74 7,321 18 0.25% Age 75+ 880 1 0.11% Foreclosed Total 25,588 80 0.31% Source: Excensus LLC 12 25.0% For households that went through a sheriff's sale foreclosure, very few have as yet shown up in new housing in the Twin Cities metro area. Some of this may be because those households moved in with parents or a roommate, left the metro area, or have not yet settled into a new home. Of the 48 that were tracked to a new dwelling in the metro area, 29 percent were living in single family housing, 31 percent in an apartment, and 13 percent in a condo or townhome. These choices did not seem to vary much based on the type of foreclosure housing. Housing Choices after Foreclosure - Housing Type After Relocation (7- County Metro Area - 2004 -2008) Eagan Foreclosed Dwellings Owned SFD Rental SFD Duplex/Triplex Owned MF Rental MF Rental Apt Grand Total Source: Excensus LLC Metro Area Moves ('04 -08) Housing Type Chosen Following 7- County Metro Area Move Move -Outs Percent Single Family Duplex/Triplex Condo/TH Mobile Home Apartment 12 25.0% 25.0% 16.7% 25.0% 8.3% 8.3% 5 10.4% 40.0% 20.0% 20.0% 0.0% 20.0% 2 4.2% 50.0% 0.0% 0.0% 0.0% 50.0% 12 25.0% 33.3% 0.0% 16.7% 0.0% 41.7% 10 20.8% 20.0% 10.0% 0.0% 0.0% 30.0% 7 1 14.6% 0.0% 0.0% 0.0% 0.0% 0.0% 48 1 100.0% 29.2% 8.3% 12.5% 2.1% 31.3% 16 More than half (56%) of the tracked foreclosure households ended up in another home in Washington County. Housing type does not appear to be a factor in determining the likelihood of foreclosed households finding another residence in Washington County. Housing Choices - Destination Cities following Eagan Home Foreclosures (Metro Area - 2004 -2008) Foreclosure Type Metro Area Moves ('04 -08) County Destination following Eagan Sheriff's Sale Dakota Washington Anoka Carver Hennepin Ramsey Scott Owned SFD 12 41.7% 8.3% 0.0% 0.0% 25.0% 25.0% 0.0% Rental SFD 5 40.0% 0.0% 0.0% 0.0% 20.0% 40.0% 0.0% Duplex/Triplex 2 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Owned MF 12 75.0% 0.0% 0.0% 0.0% 16.7% 8.3% 0.0% Rental MF 10 70.0% 0.0% 0.0% 0.0% 10.0% 10.0% 10.0% Rental Apt 7 28.6% 0.0% 0.0% 14.3% 57.1% 0.0% 0.0% Grand Total 1 48 56.3% 2.1% 0.0% 2.1% 22.9% 14.6% 2.1% Source: Excensus LLC K. Data Description and Definition of Terms The information presented in this report is based on household -level profiles and tracking data developed and maintained by Excensus LLC. All rights to this information remain the property of Excensus LLC. Data Sources The demographic profiles have been created by Excensus from administrative data sets shared for research and planning purposes by Federal, State, and local government sources. Principal data sets include the US Postal Service resident file, the Minnesota Department of Public Safety driver's license and vehicle registration files, the Minnesota Department of Health Live Birth data, City foreclosure data, and the MetroGIS parcel and property ownership files. All private and confidential information on individuals and households is protected by non - disclosure agreements, usage licenses, and /or Minnesota privacy statutes and may not be released by Excensus. Methodology All charts and tables used in this report refer to actual household counts. The 7- County metro area data set consists of more than 1 million households and their occupied housing units. Each household record is linked to its individual property parcel using GIS. This helps provide address verification and permits household and housing attributes to be mapped and linked by means of a relational database. This is a longitudinal data set. All householders and other adults in these households are assigned a unique identifier which permits the tracking of householders as they move from location to location within the 7- county metro area. Definitions of Terms Household - For purposes of this analysis, a household is equivalent to an "occupied housing unit." Note that households may be created or lost as members of a single household relocate to separate dwellings or where separate households come together into a single housing unit. This differs from the definition used by the Census Bureau which permits multiple households (unrelated individuals or families) to occupy a single housing unit. Householder - This is the oldest adult living in an occupied housing unit. Note that the householder may change from year to year as the members of the household change. In the Excensus system, the householder in each dwelling is updated annually. Turnover -The base consists of household moves from an existing home. A move is indicated when the household is no longer residing at a particular address. The turnover rate is the percent of all households that moved and is computed as an average annual rate. 17 Retention — Moves within the 7- county metro area where the householder relocated in the same geographic area (i.e., City for purposes of this report). The retention rate is the proportion of all moves that are retained in the same geographic area. Move -up Housing — Typically a larger, more expense home that a homeowner buys in response to an expanding household or increasing income. Aging in Place — Householders that remain in their current home rather than moving. Household members age during that period. A community that is aging -in -place may appear to be unchanged, but the needs of the residents change due of aging. Housing Choices — These are the housing options (type, style, price and location) available to a household looking for new owned or rental housing. This analysis shows "choice" based on actual market behavior —that is, what different groups of households are buying or renting. Single Family Housing — Generally, this is a dwelling with a separate, private entrance. A single family detached (SFD) home is a dwelling that is not attached to another dwelling unit. A single family attached (SFA) home is a dwelling that is physically attached to at least one other dwelling unit. Examples of single family attached homes include townhomes, duplexes, triplexes and quad homes. Mobile homes are also considered single family attached dwellings for purposes of this research. Multi - Family Housing — Generally, this is a group of attached dwelling units with a common entrance. Examples of a multi - family home would include most condominiums and apartments. Lifecycle Segments — These are groupings of householders by age that a representative of different stages in the life of a household — "forming households" (under age 35), "growing households" (ages 35 to 54), "mature households" (ages 55 to 74), and "aging households" (ages 75 +). This typology is useful for describing underlying household needs and housing requirements. 18 " �', "; f 'wl ^, pas x% - GourrociE of Minnesota ayrsrs Opportunity City Program Community Site Principles The Community Site Principles will support a full range of housing choices based upon best practices to maximize land use efficiency and connecting housing with jobs and transportation networks. An opportunity site that includes some or all of the following principles and aligns with the city's broader community -wide strategy provides economic benefits and long term sustainability. 1. Creates housing opportunities and choice • mixed housing types • mixed incomes • mixed uses 2. Creates a positive community image • design guidelines • integrates within the existing community • complements city's long range comprehensive plan 3. Fosters a sense of place • distinct and attractive • community gathering spaces within site and /or within walking distance • front doors to the street homes are oriented with eyes on pt and /or "play" spaces buildings directed away from hard edges (freeways and industrial uses) integrated into and directed toward existing neighborhood Sources: The above principles were created through the review of site and community building attributes identified by the following professional organizations: Urban Land Institute, Ahwahnee Principles, Smart Growth Network, Green Communities Network, Creating Quality Places, Metropolitan Council Livable Communities. Appendix 6_Eagan Opportunity City_ Page 1 4. Matches housing and jobs; both existing and future iobs • price points (rent /purchase price) are affordable for workers in the community • tie housing types, prices and location to jobs in retail, commercial and industrial sectors of the city 5. Creates or links to walkable neighborhoods • connection to pathways and /or sidewalks access to essential services such as convenience / food stores, parks /open space and recreational areas with a convenient and comfortable 5 to 10 minute walk (standard guideline ofX to % mile distance) 6. Provides access to nearby transit or transportation choices that are convenient and a comfortable 5 to 10 minute walk or 30 minutes bike (standard guideline is %, % mile ... distance for walking and 2 -5 mile for biking) 7. Creates a mix of land uses within the site or within a walkable distance of the site that includes: • housing, retail, office, restaurant, daycare, medical • civic, educational, social and recreational uses (examples: community centers, social services entities, schools and parks /sporting centers) Sources: The above principles were created through the review of site and community building attributes identified by the following professional organizations: Urban Land Institute, Ahwahnee Principles, Smart Growth Network, Green Communities Network, Creating Quality Places, Metropolitan Council Livable Communities. Appendix 6_Eagan Opportunity City_ Page 2 �3 7 Encourages compact building design and efficient use of infrastructure to support longterm sustainability • density that allows project to be feasible • site that has access to existing infrastructure — roads, water, se • maximizes green /open space • provides opportunities for multi- purpose \multi -use infrastructure such as storm water serving as greenway and /or water amenity • locate new developments near natural amenities with flexible buffers based on community surface water management and other environmental protection plans for wetlands, critical slope areas and /or land identified as habitat for a threatened or endangered species Ensure the projects long term success and marketability through the review of: • f' ; 1 f "b'1't t f I d t 1 Inancla easl I I y — cos o an , ren s, sa e prices, lease rates, permitting time and cost • Demographic market evaluation — who will live and shop there, are the uses already in the market? Sources: The above principles were created through the review of site and community building attributes identified by the following professional organizations: Urban Land Institute, Ahwahnee Principles, Smart Growth Network, Green Communities Network, Creating Quality Places, Metropolitan Council Livable Communities. Appendix 6_Eagan Opportunity City_ Page 3 �br s Sources: The above principles were created through the review of site and community building attributes identified by the following professional organizations: Urban Land Institute, Ahwahnee Principles, Smart Growth Network, Green Communities Network, Creating Quality Places, Metropolitan Council Livable Communities. Appendix 6_Eagan Opportunity City_ Page 3 10. 11. Provides energy efficiency and /or green building techniques • site allows building orientation with the greatest potential for passive solar heating and cooling and maximization of day lighting • use of green materials • storm water on site that serves as an amenity • minimize impervious surfaces Encourages community and stakeholder collaboration • planning process that includes positive public participation • guidance and input from For more information contact: Cathy Bennett, ULI MN /RCM Housing Initiative Bennett Community Consulting 612.670.8147 cathycbennett @frontiernet.net Caren Dewar, Executive Director ULI Minnesota 612.759.1016 caren.dewar@uli.ora Sources: The above principles were created through the review of site and community building attributes identified by the following professional organizations: Urban Land Institute, Ahwahnee Principles, Smart Growth Network, Green Communities Network, Creating Quality Places, Metropolitan Council Livable Communities. 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Ji a) E E C O a 4) O y v E C C OU a E O O O c N a L 0 N =s N }' O L O L c �- 0 C 1 >+ L 0 E a) rr E U 0 c0 C N O N L N -O N O a) a) aD n _ m C y o m L 0 d c .0 X O O _O ca C co CM > a) 0 0 c co O- = C a) !� 0) h O a 3 a C j r L O L C a) O L 0 .0 p cn d O U +O _ ,X E C U - n ca c c6 E 0 m U c"a c -C �° c a� C U — L L a) a o c Z -OO cu N .� — "� U 4) N 0i ns 0 �' Ca m O U a) H 2 m 0 J r� x T, a ID cw n. Ji Urban land Institute Minnesota/ Regional Council of Mayors Opportunity City Pilot Program Partial List of Best Practice Examples in Support of a Full Range of Housing Choices H.O.M.E. program Description: The H.O.M.E. (Household and Outside Maintenance for Elderly) program is a homemaker and maintenance program that is designed to assist the elderly. The goal is to assist those who are age 60 and older, or those with disabilities in order to allow them to remain in their homes. Services include: house cleaning, food preparation, grocery shopping, window washing, lawn care, and other maintenance and homemaker services. The H.O.M.E. Program currently operates in the cities of Bloomington, Brooklyn Center, Crystal, Eden Prairie, Edina, Golden Valley, Hopkins, Minnetonka, New Hope, Plymouth, Richfield, Robbinsdale and St. Louis Park. The Program maintains a core staff of trained individuals to assure prompt, quality services. Clients contribute toward the cost of their service based on ability to pay. Contact: For more information, please call Jeanne Swedberg at 952.939.8363 on Monday or Wednesday afternoons from 9 a.m. to 2 p.m. http:// www .seniorcommunity.org /index.asp ?Type =B BASICBSEC=%7B837686C8- 4386-4E43- 9997- 3D7351 F01 B36 %7D Senior Housing Regeneration Program Description: Greater Minnesota Housing Corporation created the Senior Housing Regeneration Program (SHRP) in 2002 to purchase homes at fair market value from seniors as they leave their single - family homes and move into condos, townhomes, assisted living, etc. Homes are renovated as necessary and sold as affordable housing to persons with incomes at or below 80% of median, adjusted by family size. Second and third mortgages with no monthly payment, but due on sale, make the homes affordable. Contact: For more information, please call Carolyn Olson at: 612 - 339 -0601 http: / /www.gmhchousing.org /programs /single family types.htm Shoreview SHINE Description: Project S.H.ME. stands for Shoreview Inspections for Neighborhood Enhancement and a program designed by the City of Shoreview to educate and raise awareness to residents on the importance of maintaining properties in order to protect property values and the quality of a neighborhood. This neighborhood enforcement and enhancement effort is aimed at maintaining the livability of neighborhoods and is critical to our community's long -term stability. Each year in the spring and fall, the City selects an area of the community to concentrate code enforcement efforts in a proactive approach through direct mail notification to residents informing them of the importance of maintaining quality neighborhoods and applicable property maintenance and nuisance regulations. City inspectors will then canvass the neighborhood to identify potential maintenance issues and follow -up with a letter informing the property owner of any violations. The City will encourage property owners to voluntarily cleanup their property within a reasonable time frame, but in some cases, could initiate legal actions against nuisance properties that do not comply with local regulations. The City of Shoreview has recognized that as the community matures there needs to be greater emphasis towards protecting the maintenance of our housing stock and our neighborhoods. The City believes this neighborhood code enforcement initiative can assist in achieving the goal of preserving the quality of life in our neighborhoods and our community as a whole. We hope that residents support the goals of this initiative and understand the value of maintaining the appearance of property and preserving the quality of our residential neighborhoods. Contact: For more information, please call Kathleen Nordine at (651) 490 -4687 http: / /www.ci.shoreview.mn. us /ZoningAnd Inspections /code %20enforcement /SHIN E200 4. pdf Come Home To Edina Description: Purpose - To provide assistance to families and individuals looking for affordable home ownership options in Edina. Maximum Loan Amount - Up to $60,000 – see your loan officer for the amount you qualify for. Term - Identical to the term of the first mortgage loan Interest Rate - The lesser of 5% simple interest or the first mortgage loan interest rate minus 1%. Payments - Option 1: Monthly payments of interest only; principle due upon sale, refinance or maturity of the first mortgage. Option 2: Defer all payments until sale, refinance or maturity of the first mortgage loan — payment not to exceed the principal loan amount plus 5% per year simple interest. Security - The loan will be secured by a subordinate mortgage on the property Assumability - The subordinate loan is assumable with the approval of the East Edina Housing Foundation. Purchase Price - Not more than $325,000. Downpayment - Borrower shall pay not less than $1,000 towards downpayment, closing costs and /or prepaid expenses. Income Eligibility - Loans will be made to borrowers earning at or below the following annual income levels: Household Size Income Level 1 $56,600 2 $64,800 3 $64,800 4 $64,800 5 $70,000 6 $75,200 7 $80,400 8 $85,600 Asset Eligibility - Household assets shall not be more than $50,000 after closing, excluding retirement accounts (i.e. 401(k), 503(b), IRA, SEP, etc.) However, a borrower who is 65 or older may have household assets up to $250,000 after closing, including retirement accounts. Contact: Call 952 - 826 -0462 or email Joyce Repya for details and other benefits website: http: / /www.comehome2edina.ora /index.html Brooklyn Park Rental Replacement Policy Description: GMHC created the Senior Housing Regeneration Program (SHRP) in 2002 to purchase homes at fair market value from seniors as they leave their single - family homes and move into condos, townhomes, assisted living, etc. Homes are renovated as necessary and sold as affordable housing to persons with incomes at or below 80% of median, adjusted by family size. Second and third mortgages with no monthly payment, but due on sale, make the homes affordable Contact: For more information, please call Carolyn Olson at: 612 - 339 -0601 http: / /citysearch. brooklvnpark. org /CommDev /replacementpolicy.1)df Brooklyn Park Neighborhood Action Program Description: The goal of the Neighborhood Action Program (NAP) is to reduce crime and improve the livability of challenged and distressed single - family neighborhoods. We are doing this through the creation of a problem - solving collaborative between city departments. Contact: For more information call Kim Berggren: (763) 493 -8050 http://www.brooklvnpark.org/sitepages/pidl460.php City of St. Louis Park - Partnership with AIA Description: The city, in partnership with the American Institute of Architects Minnesota, will cover the most of the cost of a two hour consultation (a $250 value) with an architect. Homeowners pay only $25 and may choose to meet with one of the 12 participating architects. Click here for a list of approved residential remodeling architects. After you've narrowed your search to one, two or three firms, consider contacting them by e-mail to set up a 20 minute phone conversation to get your questions answered and help you make your final selection. Once you've chosen an architect, the firm will schedule a time for your in -home consultation. The consultation will give you a chance to discuss options and ideas for your project, and the process of working with an architect. The American Institute of Architects (AIA) Minnesota is the professional organization of architects in Minnesota. AIA architects are licensed and required to take continuing education courses to keep current with laws, codes and new materials. For more information about working with an architect, click on the links below. You may also wish to visit www.aia - mn.org for additional information. • 20 Questions Before You Get Started • 20 Questions to Ask Your Minnesota Architect • What To Expect Architectural Design Assistance: Recognizing that many residents may want to build an addition to meet the needs of growing families, the City of St. Louis Park is underwriting much of the cost of a consultation with an architect. A consultation with an architect can help ensure that your new addition fits seamlessly with the style of your existing home and is compatible with your neighborhood. Contact: For more information call Michele Schnitker: (952) 924 -2571 or msch n itke r(cDstl ou is park. org. http:// www. stlouispark .org /home_improvement.htm City of St. Louis Park - Point of Sale Inspection Program Description: Selling your residential property Inspections at the time of sale are aimed at protecting the community's overall housing stock and avoiding unsafe conditions and major deterioration. The City of St. Louis Park requires property inspections whenever a property is sold or ownership is transferred. To ensure you are ready for closing, apply for your inspection before or immediately after you place your property up for sale. A Property Maintenance Certificate MUST be presented to the buyer and title company when the property transfer occurs at closing. The fee for the housing inspection includes the initial inspection and any follow -up inspections that may be needed. Inspection appointments are typically available within one to three days. A City inspector will visit your property to check that the siding, roof, garage and interior complies with the City's property maintenance code. A typical inspection takes about 45 to 60 minutes. Fees are • $200 house or townhome • $120 condo • $285 duplex If the inspector finds no code violations, a Property Maintenance Certificate is issued. If code violations are found, work orders are issued for the needed repairs. In most cases, corrections must meet the code requirements that were in place when the building was constructed. If a portion of the home was remodeled, the remodeled section must comply with the building code that was in effect when the remodeling occurred. (Exception: smoke detectors are required in all buildings, no matter when constructed.) In most cases, the seller makes the code corrections. However, buyers may obtain a temporary property maintenance certificate if they sign an agreement acknowledging the work orders and agreeing to make all required code work within a specific time period. Buyers and sellers must use the City's Agreement Form and pay a $50 service fee. In addition, sufficient funds must be put in escrow to cover the cost outlined in the agreement. A City representative must also sign off on the agreement. After repairs have been completed, a City housing inspector will return for a follow -up inspection to verify that all work meets code. Once this is done, a Property Maintenance Certificate is issued. Certificates are good for one year. Contact: Call the Inspections Department at (952) 924 -2588 http: / /www.stlouispark.org /selling renting home.htm City of Richfield - Richfield Rediscovered Program Description: The Richfield Rediscovered Program goal is to facilitate the construction of a new single - family home on a vacant lot. New home must meet program design guidelines. Application fee, application and HRA approval required. Program Basics • Program is first -come, first - serve, subject to funding availability. • Buyer purchases property, hires builder to demolish existing structures and constructs a new single - family home in conformance with program requirements. • A $70,000 Redevelopment Credit is available per completed property. • Projects must be completed within one year of HRA approval of the project. Program Objectives • To remove substandard, functionally obsolete housing on scattered sites throughout the city with new, higher - valued housing • To eliminate the blighting influence of substandard housing, thus improving residential neighborhoods. • To alleviate the shortage of housing choices for families. • To facilitate "Market Rate Initiatives" which include: o Larger three- to four - bedroom, owner - occupied homes designed for families • These objectives will be achieved through the acquisition of property by private Buyers and the development of newly constructed homes. Contact: Call Richfield Community Development Department 612 - 861 -9760 http://www.citvofrichfield.org/CD/docs/Guidelines.pd City of Richfield - Transformation Homes Program Description: The Transformation Homes Program is a loan program for large -scale renovations valued at $50,000 or more are eligible. Zero percent interest, 30 -year deferred loan. Loan covers 15% of total project costs, up to $15,000 A "home transformation" means a major home remodel, increasing its livable space and its value. Residents who enjoy their neighborhood, like the schools, and know the benefits of the community are choosing to adapt their existing homes to meet their current needs. The Transformation Homes Loan was developed to provide incentives for homeowners or homebuyers in Richfield to begin major remodeling activity. Program features include: • Remodeling Advisor Services. Dave Schaffer will provide initial remodeling advice as well as on -going assistance as you plan your project. Leave a message for Dave on the Remodeling Connection: 612 - 861 -9772. • The Transformation Loan. The Richfield Housing and Redevelopment Authority (HRA) characterized the Transformation Loan as an "incentive loan ". The incentive is just a little more financing with terrific terms, so that a homeowner may feel equipped to move forward on their remodeling project. To apply for the loan, the cost of your remodeling project must be $50,000 or more. The loan may be 15% of your remodeling project, when the cost of remodeling is $50,000 or more. The maximum loan amount is $15,000. It's interest -free, and is payable upon sale of your property, or forgiven after 30 years. Contact: Call Richfield Community Development Department 612 - 861 -9760 http:// www. citVofrichfield .org /CD /Housing.htm City of Richfield - Kids @ Home Program Description: Provides short term rental assistance to households with children to reduce housing turnover and stabilize the home environment for children. Contact: Call Richfield Community Development Department 612 - 861 -9760 City of Woodbury - Woodbury Goes Green Program Description: The objective of the Woodbury Goes Green Loan Program is to encourage sustainable and energy- efficient green building practices in the City of Woodbury. Low - interest loans of up to $5,000 are available to qualified families who earn no more than 115 percent of the area median income, capped at $90,000 per household. Eligible improvements include new high- efficiency furnaces or water heaters, improved insulation, new windows with better insulation and efficiency than existing windows and other improvements as pre- approved by the City of Woodbury Housing and Redevelopment Authority. This program may be combined with the Woodbury Home Improvement Fund if applicant households meet the criteria of both programs. Contact: City of Woodbury, Karl Batalden, Housing Specialist/Associate Planner (651) 414 -3438, kbataiden(a-)-ci.wood bury. mn.us http://www.ci.woodbury.mn.us/planning/howqql.html Village to Village Network Description: The Village to Village (VtV) Network is a national peer to peer network to help communities establish and continuously improve management of their own Villages whether in large metropolitan areas, rural towns, or suburban settings alike. The mission of the VtV Network is to enable communities to establish, and effectively manage, aging in community organizations initiated and inspired by their members. Villages: • are membership- driven, grass -roots organizations. • are run by volunteers and paid staff. • coordinate access to affordable services including transportation, inspring health and wellness programs, home repairs, social and educational activities and trips. • offer vetted- discounted providers. More Information: http : / /vtvnetwork.clubexpress.com City of Elk River - Energy City Program - Energy Houses Description: Elk River has been known as "Energy City" since 1997 when the Minnesota Environmental Initiative chose it from over 30 other applying communities to act as a geographical focal point for the demonstration of efficient and renewable energy products, services, and technologies. Energy City does not develop its own energy projects or demonstrations, but rather works with entities interested in completing an energy efficient and economically feasible project in the Elk River area. Such entities may include builders, residents, utility companies, government agencies, or businesses. Energy City is governed by the City of Elk River's Energy City Commission, which is made up of various local government representatives, energy consultants, and manufacturers. Funding for Energy City activities comes from the City of Elk River and the Economic Development Authority. Energy House III The City of Elk River's Energy City Commission began the third Energy House demonstration project at 19365 Zumbro Court NW, Elk River, MN after many "partners" were identified. The Suburban Northwest Builders Association spearheaded the project and acted as the organizer and identified the contractor, partners, and suppliers. Besides the General Contractor (Northwoods Custom Homes & Remodeling), 7 Project Partners and 31 Project Suppliers were able to work together to provide technical assistance, guidance, and products or services toward making the house a reality. The main objective of the Energy House was to provide builders or homeowners with a template of energy efficient and renewable energy technologies which could be replicated anywhere (in new construction or retrofitting existing homes). Energy House III opened in mid -April of this year and will be used for demonstration purposes (and tours) until March 2008. Energy House III was a recipient of the Governor's 2006 MN GREAT (Governments Reaching Environmental Achievements Together) award. Energy House 111 has been sold and is now a private residential home. Contact: Rebecca Haug, Energy City Administrator, City of Elk River, Direct 763.635.1068, email: rhaua(@ci.elk-river.mn.us http: // elkriverenergycity .org /ed_demol 6.html €!i ", Y� Minnesota Opportunity City Program Program Evaluation Model Evaluation Model for Program Effectiveness: Providing a method to evaluate how public funds are being used has become significant and instructive in recent years due to limited financial resources and increase public scrutiny. In addition, setting performance targets and tracking the progress of the programs against benchmarks will provide a level of understanding to government officials that become critical during the annual budget process. Cities that incorporate meaningful measures of performance within their housing plans realize significant benefits, which increase as the system evolves and improves. Performance measurement can: • Strengthen decision - making at all levels. Timely and relevant reports on performance lay the groundwork for sound decision - making. In addition, performance measurement systems enable decision - makers and staff to diagnose the lack of performance, identify and address causes for lack of performance, and track improvement. • Enhance program outcomes. Performance measurement helps provide focus on achieving results. Effective performance measures should be directly relevant to the program goals. • Improve communication of outcomes to key audiences. Quantifying achievements and the impact of the programs helps to demonstrate positive results to both public officials and residents. Each City program should include a specific goal over a period of years. The goals for performance measurement should be quantitative (numbers) and measurable. Evaluation of the goals should be done consistently both in time and with the same method of evaluation. The following is a sample model that can be used to evaluate the performance of existing and new programs understanding that in some circumstances a qualitative (comments, ideas) nature or public policy issue may skew the quantitative performance results but still achieves the public interest and overall goals of the program. 1 I Page, ULI MN/RCNI 0Pi;0rli3n1[y City'r.ograrn Appendix 9- Eagan Opportunity City Suggested Evaluation Model Program Goal Evaluation Performance Improvement Sample Method (results) Methods Low interest Provide xx Review loan Record results and If performance is Loan Program number of loans activity compare to goals. below the goals, to households annually evaluate methods to below 50% of make improvements. median income If performance per year exceeds goals, celebrate and report success. Code Reduce the Review and Record results and If performance is Enforcement number of code report code compare to goals below the goals, Program enforcement enforcement annually evaluate methods to cases by xx cases and case make improvements. percent, evaluate load annually If performance which are the exceeds goals, most important celebrate and report issue success. Scattered Site Increase property Track property Record results and If performance is Program tax value by xx assessment compare to goals below the goals, percentage after within a evaluate methods to property is sold specified period make improvements. and new home is of years from If performance constructed the time exceeds goals, purchased to celebrate and report the time a new success home is constructed. Affordable Meet or exceed Complete Evaluate scores If performance is Housing annual Met annual survey provided by Met below the goals, Council to record Council. evaluate methods to performance community make improvements. score activities If performance associated with exceeds goals, affordable celebrate and report housing success. For more information contact: Cathy Bennett, ULI MN /RCM Housing Initiative Bennett Community Consulting 651.257.4613 cathycbennett @frontiernet.net 2 1 Page ULI MN /RCtvl Opporunu.:y City Program Caren Dewar, Executive Director ULI Minnesota 612.759.1016 caren.dewar @uli.org Appendix 9- Eagan Opportunity City Agenda Information Memo Eagan City Council Workshop March 8, 2011 IV. PRESENTATION REGARDING REGIONAL ECONOMIC DEVELOPMENT PARTNERSHIP DIRECTION TO BE CONSIDERED: To receive a presentation regarding the Regional Economic Development Partnership. FACTS: • In 2009, the Itasca Project began discussions regarding means by which to improve job growth in the Twin Cities region. Itasca is made up of CEOs from firms including General Mills, Ecolab, Wells Fargo, United Health Group, Medtronic and others. The group recognized that the region was without a unified strategy and brand they viewed as necessary to both grow current businesses and to compete to attract business and job growth from elsewhere. • As an outcome of those conclusions, the organization initiated discussions with other stakeholders including area businesses, educational institutions, counties, cities, the Minnesota Department of Employment and Economic Development and others about the potential to form a partnership, the purpose of which would to meet those needs and to serve as a point of contact for site locators or business prospects considering locating in the region. • In mid -2010, the group came together as a private - public, non -profit entity and began to approach prospective partners for funding and board participation. While the majority of the partnership funding was sought from private sector businesses, requests were also made to the state and local governments for membership contributions. • Kathy Schmidlkofer of General Mills is serving as the loaned executive to guide the initiative until the Partnership can be staffed and become functional. She has made presentations to a number of counties and cities around the region and she will provide a presentation for the Council at this workshop. • For cities of Eagan's size, the REDP is requesting membership contributions of $25,000 per year. By the time the request from the organization was received in 2010, the City of Eagan 2011 budget preparation process was well underway and no allocation had been included for a membership of this kind. The organization remains interested in the City's participation, however, and Ms. Schmidlkofer will be covering the merits of participation in her presentation. While the Partnership will brand and promote the region for all communities, membership also provides for participation on the Board of Directors, that will help shape the strategic focus for the organization's efforts. • If the Council determines that the City should consider participation, it may direct an adjustment to the budget from the contingency for 2011 or that the staff include an allocation in the 2012 budget submittals to permit the City to join at that time. If the direction is the former, an item to authorizing that action can be placed on an upcoming regular Council meeting agenda. )3 • To date, 2011 membership commitments have been made by the Dakota County CDA, Rosemount and Burnsville, as well as Minneapolis, St. Paul, Bloomington and Hennepin, Ramsey and Scott Counties among others. • Mayor Maguire has received the presentation at the Regional Council of Mayors and Councilmembers Tilley and Hansen attended the Dakota County CDA meeting at which Ms. Schmidlkofer presented in the fall of 2010. The purpose of the presentation at this time is to permit the Council to receive the presentation together and to discuss the merits of membership for Eagan with Ms. Schmidlkofer directly. ATTACHMENTS: • REDP Purpose Statement on page • Business Journal article regarding REDP on pages *— through 14 Minneapolis — Saint Paul Regional Economic Development Partnership (REDP) Purpose Statement The REDP is a Private - Public Partnership (5010), funded by business, institutions, and government, whose mission is to stimulate economic growth and prosperity, and a resultant higher quality of life for all citizens of the Minneapolis — St. Paul Metropolitan Region (MSA). Its primary role is to be a value -added resource to all economic development organizations and activities in the region. The efforts of the REDP, and the resulting investment and prosperity, will lessen the burden of government and contribute to a brighter future for all residents of the region. The overall responsibility of a successful regional economic development partnership is to better coordinate the activities of the region's economic development partners by providing vision, strategy, resources, and staff support to link state and local governments and organizations involved with job creation, marketing, recruitment and retention. There are four specific activities that the REDP will lead or partner with existing organizations in order to accomplish: Set a Strategic Vision • Create the regional strategic vision for economic development • Define the tactical economic development agenda to guide resource prioritization Brand and Market the Region • Create regional brand to reflect strategic vision • Market the region's vision and brand internally to align regional stakeholders • Market the region to external site consultants, companies, and potential clients Retain Current Businesses in the Region Conduct local business check -ups and solve company specific problems Connect businesses to, and raise awareness of, state and local resources Attract Businesses to, and Expand Businesses in, the Region • Serve as main contact for site consultants and relocating businesses • Provide one -stop shop for regional data, permit processes, real estate information, etc. • Serve as project manager for local expansions and new attraction efforts Connect companies with local resources and incentive programs /S Itasca Project planning regional biz - recruitment organization I Minneapolis / St. Paul Busi... Page 1 of 3 From the Minneapolis / St. Paul Business Journal: http: /Iwww.bizjournals.com/tMncities /stories /2010 /09 /20 /story2. htm I Itasca Project planning regional biz - recruitment organization Minneapolis / St. Paul Business Journal - by Sam Black, Staff writer Date: Sunday, September 19, 2010, 11:00pm CDT The Itasca Project is seeking an executive to launch and lead a startup regional economic - development organization to recruit national and international businesses to the Twin Cities. The new entity would launch in January with the goal of growing to a $4 million annual budget and a staff of 20 by the end of its third year. Itasca, a local group comprising dozens of high -level CEOs and other executives, wants to hire a "rainmaker" CEO and president who will develop and implement a regional economic - development strategy, create a regional brand, and aggressively recruit and retain major employers, according to an online advertisement posted by executive recruiter John McLean at Chicago -based DHR International Inc. Itasca is creating the entity because the region's existing economic - development efforts and messages are too fragmented, said Kathy Schmidlkofer, a vice president of finance at Golden Valley -based General Mills Inc. who the company has loaned to the Itasca Project. Schmidlkofer has been spearheading the economic - development project for several months along with Ken Powell, the chairman and CEO of General Mills, and Marilyn Carlson Nelson, the chairwoman of Minnetonka -based Carlson Cos. Inc. Itasca, which involves CEOs from firms such as General Mills, Ecolab Inc., Wells Fargo & Co., UnitedHealth Group Inc. and Medtronic Inc., is pursuing the project along with a range of regional causes, such as improving early - childhood education and creating a better transportation system. About a year ago, Itasca members started talking about improving job growth in the Twin Cities and began planning for a regional economic development partnership, Schmidlkofer said. Carlson Nelson and Powell are co- chairs of the Itasca committee that's pushing for the new group. Many local government units in the Twin Cities have their own economic - development staffs, as do counties and the state, but each of them are focused on their own constituents and not the combined region. Several local chambers also have economic - development groups. The new Twin Cities - focused regional entity would provide a unified voice for the metro area, supporters said. Site - selection consultants from around the country have commented that the Twin Cities is "the largest metro area without a regional one -stop shop," Schmidlkofer said. That puts the region at a disadvantage when companies seek areas to expand. "We have such a great story to sell about our regional assets, and we're not out telling it." St. Paul Mayor Chris Coleman, who is a member of the Itasca Project, put $125,000 into his 2011 city budget to help fund the new regional economic development entity. "We're getting our hats handed to us by regions around the country, largely just because we're not competing," Coleman said. The new regional group might allow for a reduction in some of the cross -metro recruiting that happens now because it will focus on growing the region's entire economic pie. Getting this organization launched "may be among some of the most important work that we've ever done," Coleman said. Branding, budget in the works Itasca's proposed entity hasn't picked a brand name yet, but it hopes to select a catchy one in the next month or so. Economic - development partnerships around the country use various branding techniques to promote their regions, such as "OpportunityAustin: The Human Capital," in Austin, Ill http: // www.bizjournals.com /twincities/ stories /2010 /09 /20 /story2.html ?s =print 3/3/2011 Itasca Project planning regional biz - recruitment organization I Minneapolis / St. Paul Busi... Page 2 of 3 Texas, and "Research Triangle Regional Partnership: The shape of things to come," in Raleigh, N.C. For now, Itasca is using the generic legal name Minneapolis -St. Paul Regional Economic Development Partnership, or MSPREDP, which Schmidlkofer described as cumbersome and temporary. The new group will be independent of Itasca and have its own governing board. It will be a 501(c)(3) nonprofit organization that represents the Twin Cities' 11 counties in Minnesota and two in Western Wisconsin. The group is on track to launch Jan. 1, but that depends on hiring a CEO, Schmidlkofer said. A committee created by Itasca will make the final selection and appoint the executive. Itasca expects the organization will employ about 12 people and have a $2.7 million budget by the end of its second year. It would grow to a 20- person staff and a budget of $4 million by the third year. Its business plan estimates 70 percent of the group's funding will come from private - sector contributions and the rest from public funds. Schmidlkofer said the group's finance model is still in "conceptual design," but the seed money will be coming from Itasca group members. The preliminary budget and staff size was based upon benchmarks collected from other organization around the country with similar missions. The good news is the effort has a lot of support already, and some organizations, both public and private, have set aside funds in their 2011 budgets to help fund the new group, Schmidlkofer said. Talked about for years Twin Cities executives have bemoaned the lack of such a group for more than a decade, going back to a study done by the University of Minnesota in 2000. Itasca's job - growth task force examined what the Twin Cities is doing well and isn't doing to boost employment. The task force determined something needs to be done to catch up to the rest of the United States. Since 2002, the region has lagged the national average for employment growth, according to Itasca's May 2010 report on job creation. The report said the Twin Cities needs to address its image of being hostile to businesses, with high tax rates and burdensome government regulations. The new nonpartisan economic - development group won't fight those issues head on. Instead it will try to balance the message that reaches corporate executives looking for somewhere to expand or relocate. "I want to talk about the assets of our region," Schmidlkofer said. "This entity isn't going to be about policies, it's going to be about bringing jobs." Minneapolis -St. Paul Regional Economic Development Partnership What: A new nonprofit, nonpartisian group that will try to attract jobs to the Twin Cities Launch: Jan. 1, 2011 President: Ongoing search Funding: Private and public sources, about $2.7 million in first year Created by: Itasca Project Goal: Provide a unified economic - development message for the region and work with existing economic development agencies /groups Itasca Project Who: About 50 business and community leaders, mostly private -sector CEOs and a handful of local mayors and leaders of educational institutions and nonprofits Founded:2004 Select priorities: Increase understanding of socio- economic disparities, support a strategic re- direction of Minneapolis Public Schools, improve early childhood education, advance a regional transportation plan, build stronger ties between businesses and the University of Minnesota, and retain and grow large and small employers Sample of regional /metro economic development partnerships in the United States • Opportunity Austin (Texas) J7 http:/ /www.bizjoumals.com/twincities/ stories /2010 /09 /20 /story2.html ?s =print 3/3/2011 Itasca Project planning regional biz - recruitment organization I Minneapolis / St. Paul Busi... Page 3 of 3 • Allegheny Conference on Community Development (Pittsburgh) • enterpriseSeattle • Research Triangle Regional Partnership (Raleigh, N.C.) • Milwaukee 7 Regional Economic Development Partnership • World Business Chicago Other economic development groups in and around the Twin Cities: • Positively Minnesota, Minnesota Department of Employment and Economic Development • Grow Minnesota!, Minnesota Chamber of Commerce • St. Paul Area Chamber of Commerce • Capital City Partnership (St. Paul) • Minneapolis Regional Chamber of Commerce • St. Croix Economic Development Corp. (Hudson, Wis.) • Various city and county economic development departments and port authorities sblack @bizjournals.com 1 (612) 288 -2103 http: // www.bizjournals.com /twincities/ stories /2010 /09 /20 /story2.html ?s =print 3/3/2011 Special Council Workshop Agenda Memo March 8, 2011 V. TH 77 (CEDAR AVE) MANAGED LANES CORRIDOR STUDY — PREFERRED ALTERNATIVES DIRECTION TO BE CONSIDERED: Approve Alternatives 2B & 3B as the Preferred Alternatives for further environmental assessment as part of the TH 77 Managed Lane Evaluation Study and authorize the Mayor to submit a revised letter stating such support. BACKGROUND: • Mn/DOT, in cooperation with the Federal Highway Administration, Metropolitan Council, Metro Transit, Dakota County, Minnesota Valley Transit, and the Cities of Apple Valley, Eagan, and Bloomington, is exploring feasible alternatives to maximize and/or temporarily reallocate available lane capacities in the Highway 77 corridor (Cedar Avenue) from McAndrews Road (County Road 38) in Apple Valley to Old Shakopee Rd in Bloomington. There currently exists a disproportionate volume distribution between the north bound (NB) and south bound (SB) directional travel in the morning and evening rush hours resulting in significant congestion points during the morning commute at Co. Rd 38 in Apple Valley, the TH 13 interchange and the Minnesota River Bridge. • Mn/DOT completed a high level analysis and concluded there is potential merit in applying innovative technologies to manage this capacity issue. With Federal Grant monies being available, Mn/DOT conducted a detailed, comprehensive study of 9 various alternative design options. These were then narrowed down to 6 which were presented to Bloomington, Eagan, Apple Valley and Dakota County as well as at several public informational open houses last year. • This study was then presented to the City Council at a workshop on Nov. 10, 2009. Based on all comments received during the review process, a Final Draft Report was completed on July 9, 2010 and distributed for comment. MnDOT then requested the various agencies to recommend 2 Preferred Alternatives for further detailed environmental assessments and economic evaluations. The 4 Alternatives available for consideration are summarized as follows. o "No Build" Alternative — This is essentially a do nothing option. Congestion deteriorates dramatically by 2030, especially south of the Mn River Bridge. oAlternative IA — Builds an additional general purpose travel lane continuing the northbound 3`d lane out of Apple Valley from 138th St up to Diffley Rd where it meets up with the existing 3 lane section again. This basically moves the bottleneck congestion from 138th street in Apple Valley up to TH 13 in Eagan. However, busses would have dedicated use of the outside shoulder along the entire corridor. I9 Special Council Workshop Agenda Memo March 8, 2011 Page 2 of 3 BACKGROUND (Continued): o Alternative 2B (MnPASS) — Same 3`d lane extension as Alt 1 A, but a 4`" lane over the river valley would be configured by restriping the bridge deck which would eliminate the dedicated shoulder availability for transit use. The newly created 3`a and 4h lanes (on the left/inside) would be restricted to a "MnPASS" lane (toll & HOV) with full commuter accessibility along the entire corridor. Transit would then have to use this left side MnPASS lane in lieu of a dedicated outside shoulder. It is impractical for the Cedar Grove Transit Station (CGTS) to access this proposed MnPASS lane due to the difficulties of having to cross 3 lanes of congested traffic for such a short commute across the river valley (MnPASS lane ends at Old Shakopee Rd). oAlternative 3B (MnPASS) — Known as the "Contra Flow" Alternative. This provides for the deployment of a moveable barrier to allow the inside /left southbound lane to be used for northbound travel. It essentially "borrows" one opposing lane during peak periods. This Contra Flow lane would be restricted to a MnPASS lane (toll and HOV). It would have only 2 entrances for northbound traffic; one at McAndrews Rd in Apple Valley and the other under the Cliff Rd. Bridge in Eagan. This limits the accessibility for Eagan commuters to only those who would enter Cedar Ave from 35E. This alternative retains the dedicated outside shoulder for transit. • While various alternatives benefit each agency differently, the Cities of Bloomington and Apple Valley, along with Dakota County have all concurred with and formally supported Alternatives 2B & 3B for further study. • During consideration at the January 18, 2011 Council meeting, the Council continued to express concern regarding the lack of direct benefit to Eagan commuters from each of these 2 alternatives. They especially expressed opposition to Alternative 2B due to the significant reduction of feasible transit priority benefits for the recently completed Cedar Grove Transit Station. Subsequently, the Council stated that they could not support further study of Alternative 2B and formally approved only Alternative 3B. Public Works Director Colbert reiterated the Council's concerns to MnDOT and the other agency representatives in a joint meeting on February 17. ISSUES: • MnDOT has subsequently informed the City that there is a requirement that all affected agencies must reach consensus in supporting the same two Alternatives in order for the project to proceed to the next level of Environmental Assessment (EA or EAW) studies and Pre - Design Layouts to insure further funding eligibility. MnDOT further stated that there is not sufficient information at this time to determine a preference for Alternative 2B or 3B and emphasized the need to continue to the next phase of the design and environmental review so that all stakeholders can be better informed of the benefits and impacts between these alternatives. Special Council Workshop Agenda Memo March 8, 2011 Page 3 of 3 ISSUES (Continued): • MnDOT and Dakota County both recognize the importance of, not only preserving, but enhancing transit service along the entire corridor including access for the Cliff Rd and Cedar Grove Transit Stations. MnDOT believes that the Pre - Design layout studies of how transit station access can best be provided are more appropriately addressed by Dakota County as part of the Cedar Ave BRT Implementation Plan (to be done in concert with MnDOT's Managed Lane Study). Dakota County's Implementation Plan Update (IPU) has programmed these transit access improvements to occur during Stage 3 (2020- 2030). However, in response to MVTA and Eagan's concerns, they have programmed some funding in Stage 1 (2010 -2012) to conduct a Cedar Grove Transit Station Access Project, the results of which will be incorporated into MnDOT's Managed Lane Study for both Alternatives 2B & 3B. Dakota County also recognizes that if MnDOT proceeds with actual improvements relating to either Alternative 2B or 313, the IPU should most likely be amended to accelerate these transit access improvements to Stage 2 (2012 -2020) for concurrent construction. • If the City Council is willing to reconsider its previous position and join all the other agencies in supporting both Alternates 2B and 313, MnDOT will expand the EA study for both Alternatives to include the County's access options for Eagan's transit stations. It is hoped that this will address the Council's concern sufficiently to allow the TH 77 Managed Lane Study to proceed. Without Eagan's concurrence in these two Alternatives, any hopes for the study to proceed, or subsequent future improvements to be constructed, will end, in addition to any hope to accelerate the transit station access improvements to Stage 2 as part of the County's BRT improvement. ATTACHMENTS: • Eagan's Preferred Alternatives Support Letter (revised draft), pages grind --- M City of Ea�an Mike Maguire Mayor Paul Bakken Cyndee Fields Gary Hansen Meg Tilley Council Members Thomas Hedges City Administrator Municipal Center 3830 Pilot Knob Road Eagan, MN 55122 -1810 651.675.5000 phone 651.675.5012 fax 651.454.8535 TDD Maintenance Facility 3501 Coachman Point Eagan, MN 55122 651.675.5300 phone March 9, 2011 Mr. Amr Jabr Director, Office of Operations and Maintenance Minnesota Department of Transportation 1500 West County Road B -2 Roseville, MN 55113 Re: TH 77 Corridor Managed Lanes Study — Final Report Comments Dear Mr. Jabr, On January 31, the City of Eagan commented on the TH 77 Managed Lane Study and its Final Report based on the City Council's review at their January 18, 2011 meeting. In that letter we stated our support for Alternative 3B only, for several reasons. You have reiterated the need for Eagan to include support for a second alternative to allow the Study to proceed with the next phase of Environmental Assessments and pre- Design Layouts. Our Council understands that Eagan's support for Alternative 2B would then be in concert with Bloomington, Apple Valley and Dakota County. In our previous letter, we expressed our significant concerns regarding any of the Final Report Alternatives to adequately address both the general purpose and transit commuter needs from Eagan, especially access from its transit stations and maintaining priority service along the corridor. This still remains of critical importance to our community. However, based on MnDOT's stated commitment at our Workshop meeting on March 8 to include transit access options for the existing Cedar Grove Transit Station and the future Cliff Road station as part of the next level of the Environmental Assessments and Pre - Design Process, the City of Eagan will support Alternative 2B in addition to Alternative 3B. 651.675.5360 fax Again, we understand that it is extremely difficult to address all concerns when trying to 651.454.8535 TDD retrofit a capacity improvement into an existing freeway design, but we must make every effort to insure that future highway investments maximize transit and other multi -modal opportunities. www.cityofeagan.com Again, thank you for your past efforts in trying to address the congestion issues along one of the major river crossings in the metro area. I look forward to learning about your continued innovated approaches to address the concerns we have noted. Sincerely, The Lone Oak Tree The symbol of strength and growth Mike Maguire in our community. Mayor as Special Council Workshop Agenda Memo March 8, 2011 Page 1 of 2 VI. MNDOT SOUND WALLS — INTERSTATE 35 -E ACTION TO BE CONSIDERED: • Receive an update on a sound wall the Minnesota Department of Transportation (MnDOT) is proposing to construct along the west side of Interstate 35 -E, north of Diffley Road, and provide direction on financing the City's cost share. • Receive a presentation by MnDOT staff on another proposal to construct a 2nd sound wall along the east side of Interstate 35 -E, north of Deerwood Drive. • Provide direction on the standard design details for these and all future sound walls constructed in Eagan. BACKGROUND: • In 1995, the Minnesota Legislature passed Statute 161.125 - Sound Abatement Along Highways. The legislation required a noise abatement study and noise abatement measures within or along the perimeter of freeways and expressways in incorporated areas contingent on the availability of funding. The study was required to include a survey of all applicable noise standards and feasible noise abatement measures, and an evaluation of their ability to protect citizens. • As a result of this legislation, MnDOT completed a Metro Noise Study which identified the highest impacted areas that potentially offer the most cost effective opportunities for future noise mitigation improvements. The areas were accordingly ranked and prioritized. About $1.5 million have been allocated annually for the past 10 years to construct sound walls to provide noise mitigation for the designated areas. UPDATE: I't Sound Wall (35E southbound exit ramp @ Diffley Rd) • On August 11, 2009, the City Council received a MnDOT staff presentation on a proposal to implement noise abatement through the construction of a sound wall programmed for 2014 along the west side of 35E north of Diffley Road. • On September 17, 2009, a public presentation of the sound wall proposal was provided at an Open House. Information regarding the design and location of the proposed sound wall and materials to be used were presented. Requests regarding the construction of additional sound walls in other locations were received, as well as input on various financing options for the City. 22 persons attended representing 21 properties. • On November 5, 2009, the City Council approved a resolution amending the Public Works 5- Year Capital Improvement Program (2010 -2014) to incorporate the addition of MnDOT's sound wall north of Diffley Road in 2014. This was a necessary commitment required by MnDOT for them to continue with their pre- design efforts and maintain its priority ranking. • Since that time, the construction schedule for this 1st wall has been moved up two years to the spring of 2012 due to the elimination of other higher prioritized sounds walls within the metro area. Final design of Eagan's sound wall will be completed in 2011. The CIP will be adjusted this year to reflect the accelerated schedule. C�3 Special Council Workshop Agenda Memo March 8, 2011 Page 2 of 2 UPDATE (Continued): • The local financing obligation of sound walls has not been fully addressed by the City Council beyond its inclusion in the City's Capital Improvement Program, which is funded from the Major Street Fund. City staff's interpretation of the City's Special Assessment Policy would indicate that 100% of the City's cost could be the responsibility of the adjacent property owners. The City Attorney has questioned how the direct benefit for such noise abatement would be spread on an equity basis. Voluntary payment by property owners is unlikely to cover any significant portion of the cost based upon survey results from the potentially assessable property owners adjacent to the proposed wall. • The previous cost estimate for the City's share has been updated at $46,200 (based on the standard 90/10 split of the total $474,970 cost) and is based upon the standard MnDOT sound wall design. MnDOT is open to considering design enhancements. However, 100% of the additional cost would be the responsibility of the City. MnDOT is also open to considering extending the construction limits of any sound wall project, but such extensions have to be contiguous, at the City's request and also at the full (100 %) financial responsibility of the City. NEW PROPOSAL: 2 "a Sound Wall (east side of 35E north of Deerwood Dr) • MnDOT is now proposing to construct another sound wall along a segment of 35E, north of Deerwood Drive in 2016 as it has advanced on the metro priority ranking. This wall is proposed to be constructed along the east side of the freeway, adjacent to the Deerwood Townhomes Addition. • MnDOT will again follow their standard procedure to review the design, location and materials to be used of this 2nd proposed sound wall with the community during the design process. An open house is planned to be scheduled in early 2012. • If a local community prefers that sound walls not be placed in a particular area, Mn/DOT will respect that request. However, that location will be permanently removed from any future consideration. Therefore, MnDOT will be looking for a similar level of commitment from Eagan before they proceed with the pre - design efforts. • MnDOT staff will provide a presentation to the Council representing the new proposed sound wall location, standards and alternative architectural design details. Guidance will be sought by both MnDOT and City staff on creating a standard for sound wall design details for these and all future sound walls locations to be constructed in Eagan. ATTACHMENTS: • 2012 Sound Wall Project Exhibit, pagQL. • Proposed 2016 Sound Wall Location Map, paga�>. • Sound Wall Standard Design Details, pages(D—IT through ,�; 4 M l�l • 1, P. } MIT IT et NO lvT,�R� k ffi - ..• ,.. ?� \; : RG {i ?/ { ») < ^z \ \ \\ \\ \ƒ ? 6« / � | � >6/ \ )� A X�': x- z> b 1 tt =' t W -- n b 0% v J Q W O w w Z CL J J OZ LL 0 W (n Q� W O U W G �o x o� _� LL W O aN2 2 XU 20 J ~ 0000 N J W Z Q D- o W M