04-12-17 PC Minutes - Comp Plan Special Meeting of the
Golden Valley Planning Commission
April 12, 2017
A special meeting of the Planning Commission was held at the Golden Valley City Hall,
Council Chambers, 7800 Golden Valley Road, Golden Valley, Minnesota, on Wednesday,
April 12, 2017. Chair Segelbaum called the meeting to order at 6:30 pm.
Those present were Planning Commissioners Baker, Blenker, Blum, Johnson, Kluchka,
Segelbaum, and Waldhauser. Also present were Planning Manager Jason Zimmerman,
Associate Planner/Grant Writer Emily Goellner, and Administrative Assistant Lisa
Wittman.
1. 6-6:30 pm: Open House (Housing)
2. 6:30-8 pm: Presentation and Discussion (Housing)
Goellner explained that this Comp Plan discussion will focus on the housing chapter. She
stated that the housing goals in the 2040 Comp Plan Update are proposed to be the
same as they are in the current (2030) Comp Plan and are as follows: maintain housing
quality, expand the variety of housing options, increase housing affordability, encourage
environmentally sustainable housing, and advance equity in housing practices and
policies.
Goellner introduced Matt Mullins from Maxfield Research and Consulting to discuss the
Comprehensive Housing Needs Analysis (Housing Study) findings.
Mullins explained that Maxfield's objective is to provide a custom, comprehensive housing
study that identifies current and future housing needs for residents in Golden Valley and
to provide a framework for meeting housing needs. He added that the study includes
short and long term housing needs, recommendations guiding future housing
development and tools/policies to implement the plan.
Mullins discussed Golden Valley's historic and projected population and stated that the
estimated population in 2040 is 23,900, with the highest growth rates among the 55+
population, and a shift towards smaller household sizes. He referred to a chart showing
growth and income trends by age of household and noted that Golden Valley has strong
household incomes.
Mullins stated that Golden Valley is a major job importer with approximately 31,000 jobs.
He noted that only 2.5% of Golden Valley workers reside in Golden Valley and 28% of
Golden Valley residents commute to Minneapolis.
Mullins referred to a chart showing construction permits issued from 2000 through 2015
and stated that multifamily projects are driving new construction. He discussed the rental
housing inventory and stated that approximately 23% of households are rental units, 50%
of the rental housing stock was built prior to 1980, and 20% of the rental stock consists of
single family homes. He explained that overall rental housing vacancies are low at 1.7%.
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April 12, 2017
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The vacancy rate for market rate (1,276 units) is 2.8% while the affordable/subsidized
units (175 units) have a 0% vacancy rate. He added that older rental properties are more
naturally affordable and that 55% of the inventoried market rate units are affordable to
people earning 50% to 60% of the Area Median Income (AMI). He discussed housing cost
burden (more than 30% of household income is allocated to housing costs) and stated
that more renters than owners are cost burdened. Mullins talked about the senior housing
inventory (restricted to residents age 55+) and said there are 575 market rate units, 202
subsidized units, and a 4.9% vacancy rate.
Mullins referred to housing sales and stated that home prices are topping the previous
peak. He showed several graphs that illustrated sale prices, lender mediated sale
percentages, and the active supply of homes for sale. He discussed the housing
demands through 2025 and stated that there is a demand for 900+ general occupancy
units by 2025 which includes: 590 for sale multifamily units, 173 for sale single family lots,
59 subsidized rental units, and 99 affordable rental units. The demand for senior housing
units is 600+ units and includes: owner, rental, congregate, assisted living, memory care,
and subsidized units.
Mullins discussed the recommendations from the study and stated that there is a demand
for 170+ single family homes with a strong demand for new single family homes across all
prices; however high land costs prohibit entry-level and middle-market product, so
redevelopment will occur through infill, teardowns, etc. and new single family homes will
be priced high.
Mullins stated that the demand for multifamily, for sale units is 590 units with a variety of
housing types at all prices points. Some potential multifamily, for sale housing types could
include twin homes/duplexes, townhomes/row homes, quads, detached townhomes, and
condominiums.
Mullins stated that the demand for rental housing is approximately 400 units for all
incomes, household types and product types and that the existing market rate buildings in
the pipeline should meet the short-term demand. The recommendations for rental housing
include more affordable rentals and subsidized units which are difficult to finance.
Mullins stated that the demand for senior housing is 637 units across most service levels
and he recommends the following: 50-60 units of senior cooperative, 80+ units of active
adult rental, 80 to 100 units of assisted living, 100+ units of inemory care, and 100 units
of subsidized by 2025.
Waldhauser noted that Mr. Mullins mentioned that 97% of the employees in Golden
Valley come from outside Golden Valley and asked if there is information about where
Golden Valley residents go for work. Mullins said majority of people go to work in
Minneapolis. Baker asked if there is a reason to serve the community that works but
doesn't live in Golden Valley. Mullins said some cities have "live where you work"
programs, but major corporations are drawing employees from across the area and that is
almost expected in the metro area. He added that Golden Valley is centrally located and it
is tough to answer why people choose to live where they live.
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Blenker referred to active adult rental housing for seniors and asked how that is different
from regular multifamily rental housing. Mullins said active adult rental refers to an age
restricted rental community with very few services. He said that type of product got hit
hard with the recession, but it is starting to come back. Blenker asked Mullins how he
decides what categories of senior housing are needed. Mullins said it comes down to
what kind of assistance people need, the percentage of people who need different types
of assistance, and the income of residents needing services.
Johnson stated that the report says demand exists for additional housing, but it also
states that the housing supply is ok for the foreseeable future and that supply is meeting
demand. He questioned where the gaps are in the supply and demand and how those
statements work together. Mullins stated that there is a matrix at the end of the report
where they make recommendations on product type and the number of units that should
be developed. He clarified that in his presentation he was referring to the supply of
"market rate housing" and that is what's adequate for the foreseeable future. Johnson
noted that the study "predicts housing demand from 2016 through 2025 to satisfy demand
from current and future residents over the next decade" and questioned what he is
missing. Waldhauser clarified that statement is only referring to "market rate rentals."
Mullins talked about AMI and stated that 55% of all the market rate units would qualify for
affordable housing according the income guidelines established by HUD. He said that
needs to be monitored because older rental properties are naturally affordable units that
could go away if developers replace them with more expensive units. He reiterated that
there is a demand for 600+ units of senior housing by 2025 and that the current vacancy
rate is low so that suggests there is a shortage of senior housing.
Segelbaum asked Mullins if the study has recommendations for other types of housing
units. Mullins referred to the executive summary from the Housing Study and discussed
the chart showing the recommended housing development for owner-occupied homes,
general occupancy rental housing, and senior housing units from 2017 to 2025.
Segelbaum opened the meeting to public comments.
Ruth Paradise, 8515 Duluth Street, said she took out long term care insurance in hopes
of staying in her house longer. She asked about the City's requirements regarding renting
out her basement or having live-in care.
Laurie Levin, 240 Brunswick Avenue South, said she knows this is a very complex issue
and she is only beginning to understand it, but she is coming away from this presentation
and from other conversations she's had, with the sense that Golden Valley is not a place
where people of modest means can afford to live. She encouraged the City to think about
changing that reality. She said she knows there isn't a lot of vacant land to build on and
that adding affordable housing is challenging, but she would like something to change as
the City moves forward in the Comp Plan update process. She stated that perhaps
Golden Valley doesn't need as many high-end apartment units as it already has. She said
she thinks people who build them may get rich, but they are not places where modest
folks can live.
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Alfred Lewald, 1350 Douglas Drive North, said the biggest demands are for senior
housing and affordable, lower income housing. He said he wonders how much thought is
being given to Section 8 vouchers and to preventing existing older buildings from being
bought, invested in a little bit and then raising the rents. He said most people who have
lived in a building for a long time don't have a lease and have to leave after a 30 or 60
day notice. He said he thinks it would be cheaper and easier to maintain existing buildings
so that rents can stay affordable. He said there are a lot of businesses in Golden Valley
that employ minimum wage workers and he questions where they will live.
Christine Hart, Community Action Partnership of Suburban Hennepin, said she would like
to echo what has already been said. She stated that one of the things they've been
working on is naturally occurring affordable housing across suburban Hennepin County.
She referred to Stonehaven, a 70-unit apartment building in Golden Valley that was sold
and tenants had 60 days to leave. The building was then remodeled and rents were
raised. She said they lost housing stock and neighbors who have lived there for 5, 10, or
15 years so this is something that is happening all the time across the County and she
encourages the City to consider how to preserve this type of housing stock to prevent
displacement. Segelbaum asked Hart if she had any information to leave with them. Hart
said she met with some of the Council Members recently and gave them some model
ordinances from other cities to review that address displacement, preserving naturally
occurring affordable housing, and increasing affordable housing.
Jason Wittak, St. Josephs, New Hope, stated that when people get displaced they turn to
PRISM and churches and have to rely on social services whose means are limited. He
referred to housing goal #3 in the Comp Plan and said he is heartened to see a goal
regarding increasing housing opportunities, but suggested a stronger word than "monitor"
regarding the City's housing supply. He added that he would like to see the City be
proactive and get ahead of displacements and preserve both affordable and senior
housing units.
Steve Mattix, 1604 St. Croix Circle, said the finro big demand areas that have been
presented are senior housing and multifamily units to own, but he thinks an equal amount
of focus should be on removing obstacles and allowing people to turn their single family
homes into twin homes or duplexes, because the entry level housing market is tight in
Golden Valley, lots are hard to find, and single family homes are being torn down and
replaced with more expensive homes. He said he thinks the Comp Plan should also
address getting people to stay and own homes in Golden Valley.
Seeing and hearing no one else wishing to comment, Segelbaum closed the public
comment period.
Goellner referred to the Comp Plan housing goals and reviewed each one along with the
objectives and proposed implementation options for each one. The first goal is about
maintaining housing quality. She stated that staff is recommending that the property
maintenance program continues, that the City promote Hennepin County's deferred loan
programs for housing rehabilitation, that new housing programs be adopted to help
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April 12, 2017
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people stay in their homes longer, and that design standards be considered to help keep
up the quality of new buildings.
The second goal is expanding the variety of housing options. For this goal, staff is
recommending authoring a Housing Action Plan to help meet the housing needs
explained in the Housing Study. Staff is also recommending a housing study be done
every five years, and also looking at areas of the City that can accommodate the "missing
middle" housing options such as twin homes and townhomes, and considering options for
multi-generational housing.
The third goal is to increase housing affordability. Staff is proposing a Housing Action
Plan be drafted shortly after the adoption of the Comp Plan to ensure that the City meets
the Metropolitan Council requirements of at least 111 affordable units by 2040. Staff is
also proposing that the Housing Action Plan proposes ways to preserve naturally
occurring affordable housing, and includes a mixed-income/inclusionary housing policy
that could require a certain number of affordable units in a high-end, luxury building for
example.
The fourth goal is encouraging environmentally sustainable housing. Staff is
recommending partnerships and housing programs for energy efficiency retrofits,
educating residents about energy efficiency and energy conservation, continuing
preserving open space and vegetation, implementing policy regarding sustainable/green
building, offering incentives, partnerships, and programs for renewable energy, and
locating new multifamily housing near transit, bicycle routes, trails, and sidewalks to
reduce the amount of driving.
The fifth goal is to advance equity in housing practices and policies. Staff is
recommending the continuation of training of government staff and officials on achieving
racial equity in all policies and procedures, limiting exclusionary rental practices, and
utilizing the City's Human Rights Commission to help educate the community on
discrimination issues and Fair Housing practices.
Waldhauser said Goellner addressed many of the public's comments/questions. She
asked about the ability to make more properties available for smaller lots, twin homes,
townhomes, etc. Goellner stated that the R-2 Zoning District allows for those types of
properties, but there is a very limited amount of land in the City that is zoned R-2.
Baker referred to the question regarding rental property and suggested the homeowner
contact staff at City Hall. Goellner stated that there is limited ability today to accommodate
separate rental units within single family homes, but that is something the City could
consider in the future.
Segelbaum referred to the suggestion that the word "monitor" in goal #3 be changed.
Blenker said she agrees that the word "monitor" is too soft and that the policies regarding
affordable housing aren't very strong and didn't get much action in the last Comp Plan.
She said if the City feels affordable housing is an important goal she would like to see it
moved up on the list of goals. Segelbaum asked if the list of goals is organized in order of
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priority. Goellner said no, but it can be. Baker agreed that is the perception of the list
whether it is the intent or not. Segelbaum said he thinks the goals regarding affordable
and senior housing would probably be higher on the list.
Baker said it is his impression that there is a decline in the interest in ownership
especially among millennials, but that is not what he sees reflected in the report. In fact,
the report states that more opportunities for ownership should be provided. He asked
Mullins to clarify the difference. Mullins stated that millennials today have a lot of debt and
are delaying home ownership. He added that the average age of home ownership has
gone up over the past several years, however, millennials will eventually want to be home
buyers.
Blenker stated that it is important to consider policies regarding naturally affordable
housing and added that a portion of all buildings should be affordable. She asked why the
City hasn't implemented that policy yet. Goellner agreed and said that when the Comp
Plan was last updated it might have been too early for those types of policies, and that it
might now be a better time for implementing these policies. Waldhauser asked if other
communities with land costs as high as Golden Valley's are implementing similar policies.
Goellner said yes and added that other communities have had success with their policies.
Johnson referred to goal #4 regarding environmentally sustainable housing and noted
that none of the policies address existing housing. He suggested that something be
added regarding encouraging energy efficiency in all homes.
Blum said he would like to consider other kinds of language in the goals and policies
regarding concentration of affordable housing in one particular building or one area. He
said the goal of having affordable housing is important and valuable, but there can be
negative externalities when it is concentrated in one area or one building. He said he
thinks the City's most important ally is the market and incentivizing developers to build
affordable housing within what the market can bear.
Baker said he realized that the Planning Commission is just looking at goals and
objectives at this meeting but he thinks it is hard to stay at this high level of thinking. He
said he wants to see the specific tools, details, and the list of actions and
recommendations to the City Council. Goellner reiterated that the Housing Action Plan will
use numbers from the Housing Study and will be very specific.
Kluchka asked if there are non-profit developers. Goellner said yes and stated that staff
has met with some of them, but there haven't been any proposals since the Cornerstone
Creek development. Kluchka asked if there is a way to encourage them, or add that as a
goal. Goellner said yes.
Johnson asked if the Planning Commission could get staff's assessment and takeaways
on the Housing Study.
The meeting was adjourned at 8:03 pm.
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April 12, 2017
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John Kluchka, ecretary Lisa Wittman, Administrative Assistant