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09/14/2010 - City Council SpecialAGENDA SPECIAL CITY COUNCIL MEETING TUESDAY SEPTEMBER 14, 2010 5:30 P.M. EAGAN ROOM -EAGAN MUNICIPAL CENTER I. ROLL CALL AND ADOPTION OF THE AGENDA II. VISITORS TO BE HEARD III. OPPORTUNITY CITY UPDATE IV. ZONING PERMIT CONCEPT DISCUSSION V. PROPOSED AD HOC COMMITTEE STRUCTURE FOR FRANCHISE ENFORCEMENT VI. REVIEW SPECIAL ASSESSMENT POLICY FOR TRUNK AREA ASSESSMENTS VII. OTHER BUSINESS VIII. ADJOURNMENT Agenda Information Memo Eagan City Council Workshop September 14, 2010 FACTS: III. PROGRESS UPDATE FOR RCM/ULI OPPORTUNITY CITY STUDY PROJECT NOTE: While this workshop is not a joint meeting, because of the topics covered by this project, members of the APC and APrC and representatives of the MVTA and 360 Communities have been invited to present for this presentation and discussion. DIRECTION TO BE CONSIDERED: To receive a presentation regarding Eagan Community Change demographic information, housing program audit and next steps in the study process and provide feedback and direction for upcoming project elements. • The Urban Land Institute and Regional Council of Mayors developed the Opportunity Cities 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. • In early 2010, RCM and ULI invited applicants for a second round of studies. The City of Eagan responded to the invitation and, at its meeting of March 16, 2010, the City Council approved an agreement to move forward with the project. • In consideration of the role the Dakota County CDA plays in coordinating CDBG and other HUD housing programs for Dakota County cities, Dan Rogness of the CDA staff is also participating with City staff and the project team. • The Opportunity Cities project team consists of Cathy Bennett of Bennett Community Consulting, Dennis Welsch, the former Community Development Director for the Cities of Roseville and Apple Valley and John Carpenter of Excensus. Ms. Bennett will lead the presentation on Tuesday evening and respond to questions about the work to date and next steps for Council input and direction. ATTACHMENTS: • Project Update Summary on pages 3 through S • Community Change Report on pages 4 through c2 3 Eagan Opportunity City Program September 14, 2010 - 2nd Policy Leader Meeting - Housing Audit & Community Change Data Summary Summary prepared by ULI MN /RCM - Cathy Bennett There are four key steps involved in the Opportunity City Program. Page 1 I Background: The City of Eagan was selected by the Urban Land Institute Minnesota (ULI MN) and the Regional Council of Mayors (RCM) to participate in the Opportunity City Program which is part of the RCM Housing Initiative. The Housing Initiative builds on the collaborative relationships among RCM and ULI Minnesota professionals. The goal of the Opportunity City Program is to provide technical assistance to identify and implement tools and strategies within cities in support of a full range of housing choices for economic stability and regional prosperity. The process engages policy leaders, key city staff and program providers. The policy leader engagement is provided at two -three key points in the process through group meetings to identify community needs, gauge the perceived success of existing tools and strategies and discuss outcomes and implementation methods to support a full range of housing choices in the city. The Opportunity City Program is lead by a project team consisting of ULI MN /RCM contracted consultant, Cathy Bennett as the project manager with additional technical assistance provided by John Carpenter, Excensus, responsible for the Community Change Data, and Dennis Welsch, consultant to Cathy Bennett providing expertise in land use tools and strategies. 1. Community Change Data - provides a report including data that identifies demographic trends, household relocation patterns, housing accessibility and utilization and access to jobs to help enhance local understanding of demographics and to guide goals, priorities, policy development and implementation. Reviewing local data is very important in helping local policy leaders make informed decisions about supporting a full range of housing choices and about what tools and strategies they should invest in for a prosperous community. The data helps the cities answer the questions - what is the makeup of the community? Who lives in the city and in what type of housing? Where did the households come from and /or where did they go when they moved? (See attached draft Community Change Report for Eagan). 2. The Housing Audit - which consist of a review of the city's use of housing programs and land use tools. As part of this process we look at what key external factors hinder the city's ability to provide a full range of housing choices. These are barriers that typically are out of the local policy control but a result of the market, state and regional policies. In addition, through the housing audit we review the effectiveness of local programs and how the city is applying current and available land use tools that support a full range of housing choices. 3. Site Evaluation - a team of ULI experts will provide site evaluation that provides assessment of how city identified locations can meet the future housing growth needs with a focus on the connection to jobs, services and transportation networks. The site evaluation helps to apply what has been learned through the housing audit process related to specific opportunity site(s) in the city. Policy leaders and staff are able to apply the knowledge they Eagan Opportunity City Program September 14, 2010 - 2nd Policy Leader Meeting - Housing Audit & Community Change Data Summary Summary prepared by ULI MN /RCM - Cathy Bennett have gained through the review of community data and the housing audit to a specific site(s). Technical expertise is applied to the site review through ULI MN and their partners in two specific ways. The City will determine which method will best meet their local community needs. In each case, there is an opportunity to apply what has been learned through the housing audit to specific opportunity site(s) in the City. Page 2 I 3.1. Evaluation of city identified Opportunity Sites - A team of ULI MN members will review up to three city sites by applying ULI MN community site principles and professional expertise against current identified land use plans. The land use team will provide general suggestions to improve the city (re)development plan or vision for those sites. 3.2. Technical Assistance Panel (TAP) — This process provides a more detailed approach to site evaluation using a team of ULI MN professionals. Real estate, land use and development professionals provide expertise to dig deeper into the land use opportunities of one specific property and /or site in the City. The TAP is a ULI national model that includes detail review of a site and its current and future conditions. The process includes a site visit, professional site review and SWOT analysis - strengths, weaknesses, opportunities and threats, and the development of detailed recommendations by a ULI MN professional team. The panel approaches the assignment from all perspectives; including market potential, land use and design, financing and development strategies, and implementation. The process evolves over the course of 3 -4 meetings (2 with policy leaders at the beginning and end of the process). 4. Development of Recommendations. - The discussion provides an opportunity to understand what can be done to improve and the tools and strategies being utilized and develop new ideas based upon best practices identified through the Opportunity City Program process. The outcome of the process is an opportunity for the city leaders to learn about their community, backed by concrete data and determine ways that they can change their policies and priorities to be better prepared to support a full range of housing choices moving forward. This is an opportunity for policy leaders and staff to apply what they learn through the process and inform the recommendations that will be included in the final report. Eagan Opportunity City Program September 14, 2010 - 2nd Policy Leader Meeting - Housing Audit & Community Change Data Summary Summary prepared by ULI MN /RCM - Cathy Bennett Policy Leader Meeting - Review Community Change Data & Housing Audit Findings: The policy leader meeting on September 14, 2010 will consist of a presentation by the consulting team to review the key findings of the Community Change Report (Step 1) and the Housing Audit (Step 2). The City Council will have an opportunity to respond to these findings and key observations and considerations brought forward by the consulting team. In addition, the Council will review and discuss options for conducting the Opportunity Site Evaluation (Step 3) that will be completed in November /December. The Opportunity City Program recommendations (Step 4) will be developed by the City Council upon completion of the Opportunity Site Evaluation in December with a final report completed in January. At the meeting on September 14th, the consulting team will review the following: HRA /City Goals & Policies Provide Community Change Data Key Findings Outline City's Current and Use Tools & Strategies Review: Team Observations & Opportunity Site(s) Evaluation The next steps in the process will include the following components with key Council participation in December and January. Page 3 I September 14th - Feedback /Comments & Determine Site Evaluation Process ober - Complete Site Evaluation Process Nov /Dec. — Review Site Evaluation Findings & Develop Program Recommendations January Review Final Report Findings 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 1 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 7 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) V1 l0 00 O N V VD CO O N V N N M M M M M q V V V u l n Ol . M V I n CO .-1 M N N N men M m o l d . V Eagan's Householder Ages (2009) Distribution of Households by Householder Age (Data set covers 25,588 households in 2009 *) Source: Excensus LLC auz N v v HouseholderAges *The Metropolitan Council's 2008 household estimate is 25,561. O N V l0 00 0 N V LID CO 0 N V 00 00 0 N d N IA to to M l0 b lD l0 lD n r n N N CO 00 00 Ol M V1 n Ol e-1 M VI n pl M N n PI . M V Ul N Nn tel L l0 lD l0 VD lD N n N n n 00 03 3 ' Median Householder Age in 2009 was 48 years N W EXINsisat 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) 5,451 601 3% 22% 2004 5,037 20% Eagan Households by Age (2004 to 2009) ▪ Under Age 35 ® Age 35 to 54 ® Age 55to74 ® Age 75+ 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 2004 2005 2006 2007 2008 2009 Householder Ages (May, 2009) —4— Under Age 35 —f— Age 35 to 54 Age 55 to 74 -+-Age 75+ 4 C� ® Under Age 35 ® Age 35to54 Age 55 to 74 ® Age 75+ 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." B. Household Aging 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. Eagan Households — Year Moved into Current Dwelling r Under Age 35 Age 35 to 54 Age 55 to 74 Age 75+ 0% 20% 40% 60% 80% 100% • < 2004 • 2004/05 O 2005/06 • 2006/07 O 2007/08 02008/09 Net t1 of Householders that Aged into ( +) or Aged out of (-) 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 over time 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 Under Age 35 Age 35 to 54 Age 55 to 74 Age 75+ Occupied Housing Units Source: Excensus LLC All HHs 4,825 12,562 7,321 880 25,588 Owners Pct. Owners Renters Pct. Renters 2,010 41.7% 2,815 58.3% 9,965 79.3% F 2,597 20.7% 6,284 85.8% 1,037 14.2% 601 68.3% r 279 31.7% 18,860 73.7% 6,728 26.3% 5 Eagan Aqe Curve — Homeowners and Renters by Householder Aqe (2009) 3,500 3,000 2,500 2,000 1,500 1,000 500 1500 • 1250 1000 '! 750 500 1 . 250 250 500 • 750 • 100 8,000 1- 6,000 4,000 2,000 Eagan's Owners and Renters Homestead Status by Householder Age (2009) (Data set covers 25,588 households *) Source: Excensus LLC Homeowners comprise 73.7% of all households and 41.7% of households under age 35 0 ner. ( 8 .60) Percent Homeowners: 41.7% > 79.3% 4 • • • ) .( ) )< 2004 2005 2006 2007 2008 2009 Renters by Householder Aqe (2004 to 2009) >< 2004 2005 2006 2007 2008 2009 85.8% > < Y 9 4 4 v ` ti W N `4 ■ 4. 4 Householder Ages "The Metropolitan Councils 2008 household was 25,561. 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 - -. 10,000 r — -P- Under Age 35 --Age 35 to 54 --.- -Age 55 to 74 -Age 75+ -4- Under Age 35 -f-Age 35 to 54 -Age 55 to 74 Age 75+ 6 68.3% 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) 1,192 Households Under Age 35 All Households in 2009 • Owned SFD • Rental SFD o Duplex /Triplex • Owned MF IS Rental MF O Rental Apt Households Ages 55 to 74 HH Under Age 35 HH Age 55 to 74 • Owned SFD • Rental SFD 121 Duplex /Triplex • Owned MF ® Rental MF O Rental Apt 101 • Owned SFD • Rental SFD O Duplex /Triplex ® Owned MF O Rental MF Rental Apt Households Aqe 35 to 54 7 All Households in Housing Type Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt All Occupied Units HH Age 35 to 54 300 265 Households Ages 75+ HH Age 75+ 2009 Occupied Percent Dwellings of Total 13,258 51.8% 459 1.8% 557 2.2% 5,197 20.3% 1,192 4.7% 4,925 19.2% 25,588 100.0% • Owned SFD • Rental SFD O Duplex /Triplex • Owned MF ® Rental MF O Rental Apt • Owned SFD • Rental SFD o Duplex /Triplex • Owned MF IN Rental MF Rental Apt 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 12,000 10,000 8,000 6,000 4,000 2,000 3,000 2,500 2,000 1,500 1,000 500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 • • • • • • 2004 2005 2006 2007 2008 2009 Households Under Age 35 Households Aqe 55 to 74 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 -• -Owned SFD -a•- Rental SFD -0- Duplex/Triplex --X-Owned MF -f Rental MF Rental Apt 0 01 • Owned SFD -0- Rental SFD -0- Duplex /Triplex -X -Owned MF >_E Rental MF - Rental Apt -• -Owned SFD - e-Rental SFD --14,-Duplex/Triplex Owned MF -- Rental MF -0- Rental Apt 8 Housing Usage - 2004 to 2009 Housing Types - All Occupied Units Housing Types Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt All Occupied Units Households Age 35 to 54 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 Households Ages 75+ 400 350 300 250 200 150 100 50 2004 12,997 454 567 4,892 1,161 4,635 24,706 2,009 13,258 459 557 5,197 1,192 4,925 25,588 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Chg '04 -'09 261 5 (10) 305 31 290 882 -4-Owned SFD -f- Rental SFD -4-- Duplex/Triplex + Owned MF -«- Rental MF Rental Apt • Owned SFD -E- Rental SFD -4-Duplex/Triplex -X-Owned MF - Rental MF -0- Rental Apt 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 by Tax Value of Home (2009) 506 2009 SF Home Values 3.8% • LT $200K ■ $200 -249K ▪ $250 -299K • GE $300K 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 Aqe of Householder Households Under Aqe 35 450 350 300 250 -... 200 150 ... 100 50 • Households Aqe 55 to 74 0 .. ... ... . .... 2004 2005 2006 2007 2000 2609 4 • • 2004 2005 2006 2007 2008 2009 -a -LT $200K --E- 5200 -249K »- 1r°5250 -299K GE5300K --P-- LT $200K -6-$200-249K $250 -299K -aF-GE $300K 9 Households Age 35 to 54 5000 .__ 4500 4000 �--- 3500 3000 2500 2000 1500 1000 - 500 100 90 80 h 70 40 0 • Households Ages 75+ 2004 2005 2006 2007 2008 2009 30 r - 20 10 0 2004 2005 2006 2007 2008 2009 -4- LT $200K --a- $200 -249K $250 -299K - -GE $300K t LT $200K -44-$200-249K --.04-$250-299K -x- -GE $300K E. Usage and Age of Owned Single 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. Aqe of Owned Single Family detached Housing in Eagan (2009) Year Built - Owned SF Homes 808 452 6.1% 3.4% 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 Aqe of Householder Households Under Aqe 35 800 700 600 500 400 300 6 —�— .-- 200 • 100 0__ 2004 2005 2006 2007 2008 2009 Households Aqe 55 to 74 3000 2500 2000 1500 1000 k -� 500 0 .._ ,.... * 2004 2005 2006 2007 2008 2009 ▪ Before 1960 ■ 1960 -1979 u 1980 -1999 • 2000 or later –#– Before 1960 t -1960 -1979 1980 -1999 – 0-2000 or later –4–Before 1960 -- !-1960 -1979 -, -1980 -1999 --,r --2000 or later 10 Households Age 35 to 54 7000 6000 5000 4000 3000 2000 1000 0 .4.4 Households Ages 75+ –4–Before 1960 – 0-1960 -1979 .. -1980 -1999 E 0 ■ ■ E • –* --2000 or later 2004 2005 2006 2007 2008 2009 160 140 120 100 80 60 40 20 0 E 3( < 2004 2005 2006 2007 2008 2009 –4-- Before 1960 – 0-1960 -1979 a 1980 -1999 –4+ -2000 or later 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 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 Owned SFD 422 426 410 412 364 359 Rental SFD 27 21 21 20 16 24 Duplex /Triplex 19 21 26 25 16 25 Owned MF 102 113 96 110 121 127 Rental MF 25 24 20 25 36 42 Rental Apt 140 122 139 146 149 179 All Housing Units 735 727 712 738 702 756 Sources : MN Dept of Health, Public Birth Records; Excensus LLC Total Pct. Of Total 2,393 54.8% 129 3.0% 132 3.0% 669 15.3% 172 3.9% 875 20.0% 4,370 100.0% 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 fa ling 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 A, 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) Housing Types Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt All Occupied Units Source: Excensus LLC All HH Ages Moved Turnover Relocated in Eagan Rate 7 -Co. Area Eagan Retention 1,147 328 28.6% 139 32 23.0% 154 37 24.0% 858 221 25.8% 415 118 28.4% 2,265 660 29.1% 4,978 1,396 28.0% 5 -year Base 2004 -09 65,688 1,805 2.7% 2,223 240 10.8% 2,793 243 8.7% 25,388 1,550 6.1% 5,881 712 12.1% 24,274 4,058 16.7% 126,247 8,608 r 6.8% 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) Housing Types Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt All Occupied Units Source: Excensus LLC HHs <35 Moved Turnover Relocated in 5 -year Base 2004 -09 Rate 7-Co. Area 4,833 347 7.2% 242 450 72 16.0% 44 578 79 13.7% 51 5,263 557 10.6% 314 1,705 286 16.8% 175 11,814 2,299 19.5% 1,322 24,643 3,640 r 14.8% 2,148 Eagan Eagan Retention 56 23.1% 9 20.5% 9 17.6% 59 18.8% 38 21.7% 340 25.7% 511 23.8% 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 May, 2009) Housing Types Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt All Occupied Units Source: Excensus LLC HHs 35 -54 Moved Turnover Relocated in 5 -year Base 2004 -09 Rate 7-Co. Area Eagan 42,115 1,078 2.6% 696 1,266 126 10.0% 74 1,603 134 8.4% 86 10,636 641 6.0% 375 2,241 281 12.5% 161 8,886 1,390 15.6% 760 66,747 3,650 r 5.5% 2,152 226 19 24 119 55 257 700 Eagan Retention 32.5% 25.7% 27.9% 31.7% 34.2% 33.8% 32.5% 12 /7 Eagan HHs ('04 -09) Previous Housing Types for Incoming Households Move -Ins Percent Single Family Duplex /Triplex Condo/TH Mobile Home Apartment 1,158 24. 0 (66.6% ) 3.2% 13.4% 0.8% 16.1% 131 % 613% 3.8% 13.0% 0.0% 22.1% 134 2.9% 36.6% 7.5% 7.5% 3.0% 45.5% 980 20.9% 50.7% 3.1% 12.0% 0.8% 33.4% 355 7.6% 47.3% 3.9% 13.5% 1.4% 33.8% 1,931 41.2% (42.2 %% 3.3% 8.9% 1.2% 44.4% 4,689 100.0% 50.8% 3.4% 11.1% 1.0% 33.7% Turnover and Retention - Moves by Households Aqe 55 to 74 (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 Aqe 75 or more (May, 2004 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 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) Eagan Housing Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt Grand Total Source: Excensus LLC In -City Moves (2004 -09) Type of Housing After the Move (2004 -2009) Move -Outs 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% C % 3.7% 19.9% 0.5% (6.1% Eagan HHs ('04 -09) Distribution of Destination Housing Types for Move -out Households Move -Outs Percent Single Family Duplex/Triplex Condo /TH lobile Home Apartment 1,054 24.7% ( 73.4 %p 1.8% 18.0% 0.4% 6.4% 132 3.1% 74.2% 0.8% 14.4% 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% 44.8 %) 3.5% 17.5% 1.1% 33.0% 4,274 100.0% 57.1% 3.0% 18.4% 0.9% 20.7% 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 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 Housing Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt Grand Total Source: Excensus LLC 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) Eagan Housing Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt Grand Total Source: Excensus LLC 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) Eagan Housing Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt Grand Total Source: Excensus LLC 14 / 9 Move out of City Top Destination Cities for Moves to a Single Family Home Outside of Eagan (2004 -2009) Top Destination Cities for Moves out of Eagan (2004 -2009) Bloomington Cottage Grove St. Paul Minneapolis Bloomington Woodbury Richfield Eden Prairie Savage Cottage Grove Edina 302 44 29 13 27 6 15 10 8 8 43 9 2 3 - 2 - 1 2 - 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 Moves to SF Outside of City 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 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 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) Eagan Housing Owned SFD Rental SFD Duplex/Triplex Owned MF Rental MF Rental Apt 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) Eagan Housing Owned SFD Rental SFD Duplex/Triplex Owned MF Rental MF Rental Apt Grand Total Source: Excensus LLC 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 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 14.6% 0.0% 0.0% 0.0% 0.0% 0.0% 48 100.0% 29.2% 8.3% 12.5% 2.1% 31.3% 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) 140 120 100 80 60 40 20 1 2004 2005 2006 2007 2008 2009 -�-- Under Age 35 - 111- Age35to54 Age55to74 -4E-Age 75+ Resident Householders in Foreclosed Homes as a Percent of All Households (2009) Eagan Foreclosures as Pct. of All HHs (2009) Householder Age Under Age 35 Age 35 to 54 Age 55 to 74 Age 75+ Foreclosed Total Source: Excensus LLC HHs in Foreclosured Units Total Percent 17 0.35% 44 0.35% 18 0.25% 1 0.11% 80 0.31% All HHs 4,825 12,562 7,321 880 25,588 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 Tota l Source: Excensus LLC 16 9? / Metro Area Moves ('04 -08) County Destination following Eagan Sheriff's Sale Dakota Washington Anoka Carver Hennepin Ramsey Scott 12 41.7% 8.3% 0.0% 0.0% 25.0% 25.0% 0.0% 5 40.0% 0.0% 0.0% 0.0% 20.0% 40.0% 0.0% 2 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 12 75.0% 0.0% 0.0% 0.0% 16.7% 8.3% 0.0% 10 70.0% 0.0% 0.0% 0.0% 10.0% 10.0% 10.0% 7 28.6% 0.0% 0.0% 14.3% 57.1% 0.0% 0.0% 48 56.3% 2.1% 0.0% 2.1% 22.9% 14.6% 2.1% 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 Owned SFD Rental SFD Duplex /Triplex Owned MF Rental MF Rental Apt Grand Total 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 ?,5 Agenda Memo September 14, 2010 Special City Council Meeting IV. ZONING PERMIT DISCUSSION DIRECTION TO BE CONSIDERED: To receive a presentation and to provide staff with input regarding the potential use of this type of tool for future private property improvement activities. FACTS: > There are a number of property improvement activities that do not require a Building Permit or any formal review by Planning, Building and/or Engineering staff. These include accessory structures 120 SF (or less) in size, patios and sidewalks, sport and tennis courts, fences, retaining walls (less than four feet in height), etc. ➢ As the City Council may recall, certain improvements that have been made to properties over the years have resulted in the need for the property owner to seek a Variance or a lot line adjustment (replat or subdivision) due to a private improvement resulting in a non- conforming situation that requires correction before the property can be sold or granted a Building Permit for additional improvements. ➢ This type of permit would be required for improvements that do not require a Building Permit. The purpose of this type of review is to insure standard zoning requirements are adhered to such as setbacks and impervious surface coverage. ➢ Planning staff researched other communities to see how others manage these types of improvements. The city of Chanhassen has a program (handout attached) that we believe would provide Eagan staff the opportunity to provide information and suggest corrections before an investment is made and the site has been altered. ATTACHMENTS: (1) City of Chanhassen Zoning Permit Handout/Application on pages through, 7. w W .i..• . 03) • • a E c 'to o_ ° CC Q i ' � M CCD a CO Q Q 1- a v a Q O N .E N .. C O � . .E l f j t C ' I N �+ - C� N = 0) .: w G ' UJ u) N- z 2 c co M E Lo a) o o Z � mm 2 m c c o � CO UmXCt�c�3 w m N 0 +'Qd O ti a U a ID 0 N . a) C O a c N co a) ai • E E o ) N o O a.5 y = 0) .c N E o .0 y_ o ,c ii . Za..' 2 a p1 • c p a ) of o,0 ` c 0 , ca cI C CL .� ca� ' .0 a • c c O aso� a� `c 0 Q.0 fv.E U c c a 0. 0 • 0) 0 . CL C E • o 'E O 0 >. ( Q .m i.12 Owner: Contact Person: Address: Phone: Review for: Retaining Wall ( <4 feet) Patio Sidewalk Deck Other Explain: Planning Setbacks, hard surface coverage, wetlands, shoreline, tree /vegetative preservation, bluff zone /setbacks. Approved: Y / N Date: By: Required corrections: Revised survey /plans approved: Y / N Date: By: Engineering Elevation, grading /drainage /utility easements, erosion control. Approved: Y / N Date: By: Required corrections: Revised survey /plans approved: Y / N Date: By: Comments: g: \plan \forma\zoning permitdoc RESIDENTIAL ZONING PERMIT -J7 Permit No. Date Received Agenda Information Memo Special City Council Meeting September 14, 2010 V. PROPOSED AD HOC COMMITTEE STRUCTURE FOR FRANCHISE ENFORCEMENT ACTION TO BE CONSIDERED: • Provide direction to staff regarding desired alternative for franchise enforcement and public access programming appeals. Direct the matter to a future regular City Council meeting for formal ratification. FACTS: • Staff was directed at the June 8 work session to bring back for consideration, by the City Council, structure possibilities for a proposed ad hoc committee or modified and downsized commission to handle governance of the Eagan cable franchise. • Attached is a memo on pages �`/ to 33 from Communications Director Garrison outlining the pro's and con's of five streamlined governance options and the public policy questions for the City Council to consider. All options have been reviewed with Eagan's cable law attorney, Bob Vose, and with the City Administrator. • It should be noted that there is an unstated 6 option, which is the status quo —to continue on as we are currently with staff oversight only, and without a Commission, or an ad hoc committee. • Council is asked to provide direction in three areas: 1) The appropriate division of authority between the Council itself and its desired franchise enforcement structure (ad hoc committee, streamlined Commission, or status quo.) 2) The Duties /responsibilities committee /Commission will have, and 3) The frequency needed to accomplish these duties (only as needed meetings, biannual, etc.). • The Director Garrison will briefly give an overview of the powers delegated to the previous Commission shared with Burnsville, and review the narrowed options for meeting frequency and scope of authority for franchise governance going forward. • The Council's answers to the questions about desired responsibilities and division of authority, plus meeting frequency will quickly narrow the options. Director Garrison can provide additional background, if needed, or answer questions concerning the merits of the remaining /narrowed options. ATTACHMENTS: • Narrowed Franchise Enforcement Options Memo cited above. 4 City at Eaaau Memo To: CITY ADMINISTRATOR HEDGES AND CITY COUNCIL From: COMMUNICATIONS DIRECTOR GARRISON Date: September 10, 2010 Subject: NARROWED OPTIONS FOR CABLE FRANCHISE ENFORCEMENT AND PROGRAMMING APPEALS At the June 8, 2010 work session, the Eagan City Council briefly discussed future governance options for the Eagan cable franchise. (Options included Council as the hearing authority, a cable commission, a modified commission with Councilmember, City Administrator and one other citizen that meets when necessary, etc.) Staff was directed to come back to a future workshop with structure possibilities for a proposed ad hoc committee or modified commission similar to the third option listed above, and to indicate the pros and cons of such a structure. (See page two.) Policy Decisions Prior to reviewing those options, it may be helpful to determine three matters: 1) The duties and responsibilities needed or expected; 2) The frequency of meetings needed to meet those responsibilities; 3) The appropriate authority to be vested with the City Council and /or delegated to an ad hoc committee or commission. What's Changed Many things have changed since Eagan's franchise was first agreed to in 1999 and since the dissolution of the former Burnsville /Eagan Telecommunications Commission in 2008: ➢ City staff research and prepare budgets for review by the budget team and approval by the City Council. Years ago the Commission was involved in budget approvals and operational decisions. ➢ As opposed to when cable was first being installed, there are far fewer franchise- related cable customer complaints and most are resolved by Comcast first, or by Eagan's cable franchise administrator (Director Garrison) working through existing expedited complaint procedures with the company. ➢ Likewise, complaints about cable access programming are rare. ➢ However, unlike most of the City's advisory commissions, most of the former BETC's duties were delegated powers. (See note below.) ➢ What is more constant are threats to local authority arising from proposed state or federal law changes, or FCC decisions, but even this is variable. Though more occasional now, below is a list of the duties related to franchise enforcement and public access television governance. Such matters may or may not take on more urgency during or just after franchise renewal. The list may assist the Council in gauging which model or structure is the most appropriate match to the Council's wishes. Primary Responsibilities • As the Local Franchise Authority (LFA), monitor compliance with terms of franchise, particularly regarding customer service standards, PEG Support obligations, payment of Franchise fees, I -Net performance standards, disturbance of property and restoration of Rights -of -Way provisions. • In conjunction with the designated franchise administrator (Director Garrison) review any previous unresolved cable customer service complaints and act, if necessary, as hearing officers should a member of the public wish to make complaint to the LFA. • Direct, as necessary, any needs assessments, and technical or rate reviews necessary to determine City expectations in a franchise renewal and proper payment of existing PEG or franchise fee obligations. • Hear public appeals, if necessary, of staff decisions regarding programs accepted or rejected and sponsorships allowed or denied. Provide oversight, as needed, of sponsorship rules and Public, Educational and Governmental (PEG) access procedures. • Receive applications from any new providers for a video franchise. Secondary Responsibilities • Receive briefings on state or federal regulatory issues affecting cable franchises, PEG eligibility, etc. • Suggest, as appropriate, cable issues the City Council may wish to contact its legislative delegation about. Meeting Frequency It would appear, based on what's changed, that there is little need to meet more than is necessary to carry out responsibilities. The options would appear to be three: 1. Schedule meetings 2 -3 times a year to receive updates 2. Called or special meetings only as necessary 3. Or a combination of a couple of regular meetings (say twice a year) augmented only as necessary with a special meeting if circumstances arise. Appropriate Authority There are several options for scope and authority of a modified commission or ad hoc committee, depending on the City Council's wishes: 1) Advisory to the City Council only 2) Delegated authority from the City Council 3) A combination of reserved powers by the City Council and delegated authority 4) A division of responsibilities where staff first, and then the City Council only as necessary handles franchise enforcement matters. Split off from that would be a separate ad hoc group that would meet or be appointed only if programming complaints or issues arise. NOTES: • In the previous commission structure, the City Council delegated most powers except it reserved to itself the right to revoke a franchise (and the public hearing necessary to effect a revocation), approvals of sales or transfers of a franchise (such as when AT &T Broadband sold to Comcast), lawsuits or other actions for non - compliance with the franchise, and release or capture of the franchisee's performance bond /letter of credit. • The Ad Hoc Committee or small commission structure should not be confused with negotiations for a new franchise. Closer to renewal date, the Council will be asked to formally establish a negotiating committee, which typically includes a cable attorney representing our interests, a lead staff member, a Council representative, and technical experts, as necessary. A 7 Option # Members Frequency Role & Authority Pros Cons #1 (3) • One City Council Member, • City Administrator • Member of public Meet only as needed Advisory only. Ad hoc committee recommends action to full Council • Advisory in nature. Authority still resides at Council level • Council has direct insight into cable franchise enforcement issues and programming matters • Meets only as necessary • If there is a thorny programming complaint, Council still has to weigh in on content matters • Direct involvement by Council or Administrator in programming may not be viewed positively #2 (3) Same as above Twice a year unless needed more frequently Actual Commission status. Delegated authority to handle programming appeals and franchise enforcement short of initiating lawsuit • Twice a year provides for regular update without being overwhelming • Commission can handle matters short of lawsuit without bogging down Council • Nimble way and size to handle franchise enforcement similar to other cities • Direct involvement by even a single Councilmbr or Administrator in programming may not be viewed positively, though such complaints are rare. #3 3 Members • One from Tech Task Force or Planning Cmsn. • Person selected with skills of evaluating content • City Administrator or designee Meet only as needed twice a year Either option outlined above • Keeps most cable matters at arm's length from Council • Previous commission had delegated powers • A Library member, for instance, might be used to weighing issues of content • No direct Council involvement • Tech Working Group may or may not be ongoing body. Options for Structuring Franchise Governance: 3 :,1_ #4 3 Members • Councilmember or their designee; • City Administrator or designee • Access volunteer or someone expert in customer service complaints or dispute resolution Meet only as needed or twice a year Either option outlined above • Council has direct insight into cable franchise enforcement issues and programming matters • Meets only as necessary • Access volunteer may have vested interest in outcome of complaint • May add additional interview to Council commission candidate interviews #5 Council as franchise Meet only Reserved • Nothing ongoing; • Nothing ongoing; enforcement if staff as needed powers for meets only meets only can't resolve; ad Council; as needed as needed • Provides staff • May take hoc panel of 3 delegated or authority getting up citizens named if advisory with Council back -up as to speed; • May be programming powers for needed for harder to complaint cannot ad hoc franchise or enforcement find ad hoc citizen be resolved programming complaints issues • Keeps programmin g complaints arms - length from Council committee members at spur of the moment. Option it Members Frequency Powers Pros Cons Final Notes & Legal Questions As Eagan Television matures, we're beginning to see an uptick in subscriber complaints and inquiries regarding cable provider billings specifically and service response. The standards to be enforced are covered by Eagan's franchise. Most matters are resolved through expedited complaint procedures, but if the matter is not resolved, there is no current mechanism short of the full Eagan City Council for airing of such a grievance or to enforce Eagan's franchise. Likewise, though extremely rare, Eagan may be faced with a programming dispute about whether a program is appropriate for its public access channels. Our cable law attorney, Mr. Bob Vose, indicates that while a Commission structure is more common, from a legal standpoint there is no difference between an "ad hoc committee," as one councilmember suggested, or from a staff, Commission or Council enforcement structure. All would derive their powers, as appropriate and as specifically delegated, from the City Council itself. It really depends on what the City Council's preference and direction is regarding duties, powers and frequency of updates. Special Council Workshop Agenda Memo September 14, 2010 VI. REVIEW SPECIAL ASSESSMENT POLICY FOR TRUNK AREA ASSESSMENTS DIRECTION TO BE CONSIDERED: Review the current Special Assessment Policy on Trunk Area Assessments and provide direction for possible revisions or amendments, if any. FACTS: • The City's Special Assessment Policy Guide was originally compiled and formally adopted by the City Council on December 13, 1977. During the ensuing development growth years, several amendments were adopted as special circumstances dictated when the Policy didn't adequately address the various and unique issues that were encountered during the many public improvement projects. On February 19, 1991 the Council adopted an updated/revised Special Assessment Policy that reiterated, amended and incorporated the numerous previous City policies into a single unified document. These policy guidelines continue to be the basis for proposing special assessment financing for public improvement projects. • At the public hearing for Project 1033 (Cliff Rd — Trunk Watermain), trunk area assessments were proposed to 40 parcels owned by 30 individuals. Several property owners expressed concerns regarding the amount of their assessments and their limited ability to get any immediate benefit from this trunk facility without laterals and individual services being installed to their property. Staff presented and explained the Assessment Policy for Trunk area improvements and the various assessment financing & payment options provided by the City (i.e. long term spread, deferments, postponements, etc). • After discussing the area credits currently provided for dedicated ponding easements, the Council inquired about potential credits for any conservation easements that might be dedicated prior to the Final Assessment Hearing. Since Conservation Easements were not a common occurrence when the current Special Assessment Policy was adopted in 1991, there is no specific reference to such a credit being applicable. If it is deemed beneficial by the Council, the Policy would have to be amended accordingly. If so, consideration should be given to possible applications of minimum/maximum size, restrictive uses, compliance enforcement, permanency, agreement on deferment of impacted assessment and property tax obligations if ever vacated, etc 3// Special Council Workshop Agenda Memo July 27, 2010 Page 2 of 2 • There are other options that are in the current policy that could be considered for trunk area assessments on larger platted properties. The fee schedule states that the 2010 rate for trunk area water main oversizing assessments for single family properties are $2,770 /acre OR $1,325 /platted lot. Project 1033 proposed assessments at the per acre rate (with ponding credits applied). Of the 40 total parcels to be assessed, 31 properties are recorded platted lots within one of the following subdivisions: o Lakewood Hills (19 lots) o Rockwood's Woods Add (3 lots) o Lakewood Hills 2 (2 lots) o Wilderness Retreat (1 lot) o Acorn Pond Addition (3 lots) o Noreen Addition (3 lots) and another 9 parcels are unplatted. Some of the platted lots are much larger than the typical single family platted lot and have the ability to further subdivide. Others are representative of typical single family property with frontages less than 150'. One of the tenants of special assessment law requires that all similar property be assessed similarly; hence the justification of using the area method. • Prior to the opening of the public hearing on August 2, 2010, the Director of Public Works distributed a handout entitled "Project 1033, Cliff Rd Trunk Watermain, Special Assessment Options." The information included in the handout addressed types of public improvements, funding mechanisms, bond financing options, and special assessment levy options. This handout has been updated with information regarding the manner in which special assessments are calculated. An additional handout specifically addressing potential assessment credits that are included in the current City Special Assessment Policy is also attached for your reference. ATTACHMENTS • Map of assessable area, page 3 6 . • Special Assessment Options, pages through • Assessment Credit Options, page / f / . I + + 0 PROJECT 1033 CLIFF RD TRUNK WATERMAIN SPECIAL ASSESSMENT OPTIONS August 1, 2010 (Updated September 9, 2010) TYPES OF PUBLIC IMPROVEMENTS Types of City Utilities (Sewer, Water & Storm Drainage) • "Trunk" Utilities are oversized mains that are greater than the minimum standard requirements for direct connection service needs. They constitute the "backbone" of the comprehensive citywide distribution /collection system. Trunk Utilities provide opportunities for branches or lateral extensions into specific developments or neighborhoods. All Trunk Utilities are installed by the City under a Public Improvement process. • "Lateral" Utilities are mains that provide direct service to a limited area as necessary to allow direct connections to the Utility. Lateral Utilities can be installed either by the City under a Special Assessment Public Improvement process, or privately by a developer and then turned over to the City for perpetual ownership and maintenance. • "Services" are the individual connections from the structure to the City's Utility system. Individual Services are typically installed by the property owner with the Building Permit. FUNDING PUBLIC UTILITY IMPROVEMENTS In the 1970's, when the City started to install public utilities in accordance with an approved Comprehensive Plan, it also adopted a Special Assessment Policy that provided a funding mechanism to pay for the initial construction and installation costs. Ongoing maintenance and repairs were opted to be paid for through user fees (i.e. Quarterly Utility Billings). • "Trunk" Utilities are financed through Special Assessments against all properties that lie within the district that would be serviced by the related trunk main (typically within mile of the proposed trunk). The Trunk Assessment Rate was determined by estimating the cost to construct the entire trunk system according to the Comprehensive Plan and then dividing it proportionately to the various types of land uses based on their demand /need. Properties are assessed (at a rate based on their respective land use) when either, a trunk facility is constructed within their service district, or whenever the property developes, whichever comes first. • "Lateral" Utilities have 100% of the related costs funded by the City (Special Assessment when installed under a Public Improvement) or directly by a developer (with the cost typically included in the purchase price of the lot). • "Services" are funded 100% by a developer with a building permit or by the property owner when a connection is made to the City's system. FINANCING PUBLIC UTILITY IMPROVEMENTS For municipalities, Public Improvements are often financed through Special Assessment Bonds, which required that a minimum of 20% of the improvement cost be covered through a special assessment against the benefiting properties. This minimum requirement became critical when financing large Trunk Utility projects in the early stages of the City's development when the revenue from the assessable area would be substantially less than the costs of the oversized trunk utility (that would eventually serve other areas with future development and related lateral extensions. Throughout the course of the City's history, utility extensions to serve new development would also provide immediate service to adjacent or nearby property in the service district that wasn't ready for development or in need of the Utility at that particular point in time. SPECIAL ASSESSMENTS OVER TIME Special Assessments can only be levied in accordance with statutory procedures requiring a formal Public Hearing for both the public improvement and again for the adoption of the Final Assessment Roll. Also, the amount of the special assessment cannot exceed the increase in value to the property, nor can the collective special assessment revenue exceed the cost of the project. Recognizing the financial burden that a premature Special Assessment can sometimes place on a property, the City adopted several different financing options. Long Term Payment Options Trunk Utility Assessments were typically spread over 15 — 20 years for agricultural and residential properties and 10 years for all other land use classifications. Lateral Utility Assessments are typically spread over 5 -10 years for all classes of property. Legislative Deferrals • Legislative Deferrals include Green Acres (for active cultivated farmland) which are handled directly by the County • Senior Citizens (for qualifying age and income limitations) — Agreements must be approved by the Council and includes accruing interest on the adopted principal amount. Council Deferrals • By Agreement. The City Council has the discretionary option to defer an assessment for a period up to 30 years under terms of an agreement that must be recorded against the property at the County. The terms of the agreement are flexible to address issues such as interest, inflationary adjustments to the deferred principal and /or length and installment terms (i.e. balloon payments, etc). Deferral agreements have historically been processed in response to an adopted assessment at the request of the affected property owner (i.e. an assessment typically has to be adopted before it can be deferred). • By Postponement. A project's benefit or property owner's obligation can also be "postponed" until the time of connection (applies to sanitary sewer and water improvements only). A Postponement implies that an assessment will not be levied, but rather collected in the future (typically at the time of connection) and at some future undetermined rate deemed to be equitable and appropriate. There is no formal agreement recorded against the property and the obligation does not show up in a Special Assessment search to adequately inform prospective buyers of the unusual and exceptionally large one time upfront cost. The City then has to carry the cost of the related trunk assessment obligations to an unknown future date. The City has rarely, if ever, postponed assessments. 5Y SPECIAL ASSESSMENT CALCULATIONS As noted previously, Special Assessments can only be levied in accordance with Minnesota Statutes, Chapter 429. Said statute allows the cost of any improvement to be assessed upon property benefited by the improvement, based upon the benefits received, whether or not the property abuts on the improvement. Assessments to properties are accordingly limited by the benefit received and the actual improvement cost. Calculations Special assessments for properties may be calculated in a variety of methods, each method unique to the individual project, with all similar properties being assessed in a similar fashion. Per Lot Method • All Tots served by the improvement would be assessed equally; typically similar lots (i.e. all subdivided single family or all subdivided commercial /industrial). Lot Equivalent Method • Assessment rate is computed using a divisor equal to the total of existing lots AND future lots that could be created as the result of lots splits. Typically similar land use (i.e. all single family or all commercial /industrial). Area Method • May be expressed in terms of any commonly used method that defines area; typically similar land use (i.e. all single family or all commercial /industrial). Linear Method • Assessment rate is multiplied by the parcels' assessable footage (adjusted frontage). Fee Schedule • "Trunk" Utilities are assessed at the following rates (2010 rates, approved annually) o Sanitary sewer Un- platted and platted non - residential Platted residential o Water main oversize Un- platted and platted non - residential Platted residential o Storm sewer oversize per sg ft per sq ft per sq ft • "Lateral" Utilities are typically assessed at the actual costs or the following upon annual actual cost experience (2010 rates, approved annually) Single- family Multi- family Non - residential o Sanitary sewer o Water main Single- family Multi- family and non - residential o Storm sewer (based on pipe at 15' depth) 12" storm sewer 15" storm sewer 18" storm sewer 21" storm sewer 24" storm sewer $ 2,625.00 per acre 1,275.00 per lot 2,770.00 per acre 1,325.00 per lot .117 .150 .180 62.70 per centerline foot 63.30 per centerline foot 79.75 per centerline foot 68.80 per centerline foot 71.20 per centerline foot 76.40 per centerline foot 82.10 per centerline foot 93.75 per centerline foot rates based • "Services" are typically assessed at the actual costs or the following rates based upon annual actual cost experience (2010 rates, approved annually) o Sanitary Sewer - 4" service 765.00 per service o Sanitary Sewer - 8" stub 1,760.00 per stub o Water - 1" service 855.00 per service o Water - 6" stub 2,945.00 per stub CITY OF EAGAN SPECIAL ASSESSMENT POLICY CREDIT OPTIONS September 10, 2010 Credits • Pond Easements — Area Credit When calculating net assessable area or frontage in determining assessments, all land that lies within or abuts a defined, dedicated ponding easement of a designated Comprehensive Storm Sewer Pond /Lake shall be deleted from area or frontage calculations. No area or frontage deduction, credit and /or refund would be allowed without the dedication of a pond easement. • Public Right -of- Way /Street — Area Credit o Platted parcels — area of dedicated public right -of -way shall be deducted. o Unplatted parcels (no dedicated streets) — 20% of gross area shall be deducted. • Corner Lot — Linear Credit o Utility Laterals • Platted parcels — assessments along both sides, 150' shall be deducted from side lot. • Unplatted parcels — assessments along both sides, 150' shall be deducted from adjusted front footage. o Streets — assess short side and half of long side (up to 150'); maximum of 75' shall be deducted from adjusted front footage. `f /