Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Item 03.a
Memorandum r4E. City of Lakeville Planning Department To: Mayor and City Council From: Daryl Morey, Planning Director 'I David Olson, Community and Economic Development Director Date: March 23, 2016 Subject: March 28, 2016 City Council Work Session Transportation Corridors/Strategic Density Housing Options Background and Analysis In the past several months, staff has been contacted by numerous developers interested in constructing multi -family residential projects in Lakeville in 2016 or 2017. The developers include: Dominium, Ron Clark Construction, Common Bond Communities, Fortune Realty, Lennar, Blackhawk Development, Roers Investments, and KJ Walk. Many of the properties that that are being considered by these developers are not currently zoned for multi -family housing, including the Cedar Avenue/Dodd Boulevard area and property located north of Super Target. The projects discussed with the developers include attached townhomes, market rate apartments, independent living senior housing, work force housing, and attainable senior housing. Opportunities for multi -family residential development projects in the city are fairly low, given the current land use and zoning designations of undeveloped properties with City sewer and water available. In 2017 the City will begin the process of updating the Comprehensive Plan, with City Council approval of the final document by December 2018. The 2018 Comp. Plan Update will examine the City's housing needs and make recommendations that will likely adjust current land use and zoning designations in the Cedar Avenue Bus Rapid Transit Corridor south of 1791h Street, which is predominately guided and zoned for rural/agricultural uses, and the 1-35 corridor which will be a future Bus Rapid Transit Corridor. Also, the Economic Development Commission's 2014-2016 Strategic Plan for Economic Development identified the development of high density housing as a Strategic Priority. The Strategic Plan includes Key Outcome Indicators for this Strategic Priority that includes identifying up to 12 scattered sites in the City to be re -guided or zoned for high density housing and allowing high density housing in commercial zoning districts. The Strategic Plan also identified Strategic Initiatives to achieve these the Key Outcome Indicators. They included: • Adopt city "housing goals" • Develop an economic development housing strategy • Determine CA high density housing demand • Create a plan to address expanded housing options in CA zoned districts The Dakota County CDA retained Maxfield Research to do a Housing Needs Assessment for Dakota County, which was completed in February 2014. This needs assessment identified the need in Lakeville for 3,050 rental units among all income levels to be developed between 2010 and 2030 which comprises 22% of the overall housing need during this period. The rental housing vacancy rates in Lakeville have ranged from 1-3% over the past three years, which is consistent with vacancy rates throughout the metro area. This has resulted in, and continues to result in, numerous private developers inquiring about options and possible sites for multi -family development in Lakeville. Consistent with the goals outlined in the EDC's Strategic Plan, staff has analyzed potential multi -family housing sites that are not currently guided or zoned for such use. These potential multi -family housing sites, which are shown on the attached map, include properties discussed with the developers listed above, as well as other areas in the city that would be consistent with the EDC's Strategic Plan that are located primarily along major transportation/transit corridors. To implement the housing goals within the 2016 timeframe included in the EDC's Strategic Pian, staff has identified the following options for City Council consideration: Rezone individual properties to PUD, Planned Unit Development on a case-by-case basis and work with the developer on specific development standards and project amenities. Rezone select properties to RM or RH which would require that multi -family housing projects meet the performance standards listed in the Zoning Ordinance. Amend the Zoning Ordinance to allow all types of multi -family housing by conditional use permit in commercial zoning districts. Staff is requesting the City Council's direction on this issue. Staff expects that some of the developers and property owners interested in multi -family housing projects will attend the work session. Staff will also be present to answer questions. Attachments: • Letters of interest from multi -family residential developers and property owners • 2014-2016 Economic Development Strategic Plan • Dakota County Housing Needs Assessment Report • Various News Articles Regarding Recent Multi -family Developments • Potential Development Areas Map 2 March 15, 2016 Dave Olson Community Development Director City of Lakeville 20195 Holyoke Ave. Lakeville, MN 55044 Dear Dave, We own approximately 35 acres just north of the Target development (Timbercrest). We have owned it for many years. It is currently; zoned commercial. This does not permit residential development. The site does not lend itself to commercial development due to the terrain as well as the market for commercial .use as evidenced by the fact that we have not had a serious buyer over this extended period of time. Currently we have a national homebuilder that has put together a preliminary plan for townhouses while leaving us with 5.5 acres for market rate apartments. We have had a meeting with your staff who responded favorably to this idea. In order for this to work for us we will also need a variance on the density for the apartment site. One other thing that we hope the City will address is the amount of fees required per apartment unit. Developers tell me that is why there have not been market rate units built in Lakeville for some time. We hope you will consider rezoning this property or entertain a PUD proposal. Fortune Realty Gary Gustafson Vice President FORTUNE REALTY, INC. • P.O. BOX 22173 • EAGAN, MN 55122-0173 • (651) 905-1075 • FAX (651) 452-3582 March 7, 2016 Dave Olson City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 Dear Dave. 1 am one of the owners of the land parcel at the northwest corner of Cedar Avenue and Dodd Boulevard, approximately 15.5 acres. As our representative Bruce Rydeen has discussed with you, we have a couple of requests from prospects looking to acquire portions or all of the property foi multifamily type of uses, including senior, market rate and financially assisted in cooperation with the CDA. We engaged Maxfield Research and Consulting to conduct a market study this past October. Their findings recommended multifamily type uses as the highest and best use for our land. Dave, we are writing to request consideration of these types of uses for our property. Could you also indicate the process involved? Sounds like one path is to rezone the property to a PUD, but would like clarification on the process involved to consider these uses. Thank ii. fes,, rte, /F• Fy i' Paul Johnson F'y Economic Development Commission 2014®2016 Strategic Plan for Economic Development Summary Report November 2013 AI RLLC IMPROVING ORGANIZATIONS & THE PEOPLE WHO LEAD THEM CHICAGO - 40 East Chicago Aavenue #,340, Chicago, IL 60611 E. MINNEAPOLIS; 3208 West lake Street #142, 10nneapolis, MN 55416 TOLL FREE: 800-550-0692 - ctaig@craigrapp.coni Lakeville EDC Strategic Planning Summary November 2013 Date: November 22, 2013 To: David Olson, Community & Economic Development Director From: Craig Rapp Subject: Strategic Planning Summary The following is a summary of the strategic planning sessions held at City Hall on October 8, and November 12, 2013 with the Lakeville Economic Development Commission, City Administrator and EDC staff. The sessions focused on establishing strategic direction and focused outcomes. A facilitated process was used that produced six strategic priorities, a set of key outcome indicators for each priority, and a list of strategic initiatives that will guide follow-up action. Prior to the meeting, each participant was asked to complete a questionnaire -providing opinions on the strengths, weaknesses, opportunities and threats (S.W.O.T.) facing the community and organization. In addition, they were also asked to identify the highest priority issues confronting the city. The group process included three rounds of review and discussion: In the first round, the group identified the most frequently mentioned attributes in each category. In the second round, the groups compared strengths with opportunities and weaknesses with threats- to determine which opportunities would maximize strengths, and which weaknesses would be exacerbated by the threats. From this round, each group identified strategic priorities for further consideration. The full group then engaged in a discussion centered on determining which priorities were most important- based upon both the SWOT analysis and their own sense of community needs. In addition, they considered the Envision Lakeville guidance regarding economic sustainability - listed below: • Emphasize the attraction of businesses that can provide higher skill, higher wage, head of household jobs. • Retain existing businesses and facilitate growth and expansion • Provide a broad range of financial incentives to attract businesses that employ higher skilled, high wage jobs. • Support the aggressive transportation program that is in place to enhance economic development opportunities What emerged is a set of six strategic priorities. The priorities are: 2 Lakeville EDC Strategic Planning Summary November 2013 Strategic Priorities 1. High Skill, High Wage Job Creation 2. Infrastructure to Leverage Opportunities 3. Business Retention and Expansion 4. Incentives and Tools to Achieve Success 5. Enhancing a Pro Business Environment 6. High Density Housing The next step in the process was the development of Key Outcome Indicators (KOI's) for each strategic priority. Key Outcome Indicators reflect performance connected to a desired outcome. They are defined or each priority and include specific measures and targets related to a desired end state. The KOI's are: Key Outcome Indicators 1. High Skill, High Wage Job Creation a) Create an additional two hundred jobs with an average salary of $60,000 or greater by 12/31/2016 2. Infrastructure to Leverage Opportunities a) The City has the capacity and mechanisms to meet the needs of 95% of business prospects. b) Dakota County is engaged and supportive of our Economic Development efforts —reflected in polices and cost sharing for public improvements that impact our projects. 3. Business Retention and Expansion a) Existing businesses have expanded by 500,000 square feet by 12/31/2016 b) An additional 300 jobs have been added at existing businesses by 12/31/2016 c) 90% of non -retail businesses have been retained between 1/1/2014- 12/31/2016 3 Lakeville EDC Strategic Planning Summary [November 2013 4. Incentives and Tools to Achieve Success a) Three new businesses choose to locate/expand based upon leveraged financial incentives by 12/31/2016 S. Enhancing a Pro Business Climate a) 90% of real estate developers doing business in Lakeville indicate satisfaction with city processes- determined by survey b) 90% of existing businesses indicate that Lakeville is a good place to operate, expand and/or locate a business- determined by survey 6. High Density Housing a) 12 scattered sites reguided/zoned for high density housing by 12/31/2016 b) High density housing is allowed in C/I zoning districts by 12/31/2016 Following the development of K0I's, the group developed a preliminary set of strategic initiatives. Strategic initiatives are focused activities that ensure that priorities are addressed and that outcomes specified in the K0I's are achieved. Strategic Initiatives 1. High Skill, High Wage Job Creation a) Conduct a market analysis to determine target markets with a special emphasis on higher -education b) Develop a strategy to leverage existing business partners, vendors, and alliances for job creation c) Correlate incentive packages for high skill/high wage jobs with overall incentive strategy 2. Infrastructure to Leverage Opportunities a) Develop a detailed infrastructure plan to meet developer needs b) Explore infrastructure financing methods c) Analyze provider -city partnership/relationship opportunities to provide for infrastructure needs d) Initiate and participate in city -county economic development discussions 4 Lakeville EDC Strategic Planning Summary November 2013 3. Business Retention and Expansion a) Expand and enhance the business outreach program b) Analyze expanded methods for increased business contacts c) Evaluate city business expansion requirements- for streamlining opportunities 4. Incentives and Tools to Achieve Success a) Expand the marketing strategy to ensure alignment with Lakeville's success factors and current incentive policies b) Establish EDC/City Council consensus on incentive policies, assumptions, ROI, and priority locations 5. Enhancing a Pro Business Climate a) Continue and enhance surveys of contractors, developers, and businesses b) Develop a concise "development review process" document c) Conduct a professionally administered and statistically valid business survey every three years d) Create "internal brand champions" to market and communicate Lakeville's benefits internally 6. High Density Housing a) Adopt city "housing goals" b) Develop an economic development housing strategy c) Determine C/l high-density housing demand d) Create a plan to address expanded housing options in C/I zoned districts I. Next Stens To successfully address the strategic priorities and reach the intended outcomes, a focused work plan will need to be developed. Following the adopted strategic initiatives, detailed action plans will be developed for each -specifying steps, timing and accountabilities. The strategic plan, while subject to periodic review and revision over the performance period, provides a solid foundation for action and accountability. 0 Economic Development Commission Strategic Plan Outline 2014-2016 Strategic Key Outcome Measure Target Strategic Initiatives Priority Indicator (KOI) High Skill, High High quality jobs New jobs over 200 btwn 1/1/14- a) Conduct mkt. analysis to determine target Wage Jobs $60k 12/31/16 mkts: special emphasis- higher ed b) Develop strategy to leverage existing business partners, vendors, alliances for job creation c) Correlate incentive packages for high skill/high wage jobs with overall incentive strategy Infrastructure to Infrastructure Developer need 95% of time- has a) Develop detailed infrastructure pians to Leverage capacity and meet developer needs Opportunities mechanisms to b) Explore infrastructure financing methods meet needs c) Analyze provider -city partnership/relationship opportunities County support Cost sharing County supports & d) Initiate and participate in city -county shares cost 90% of discussions time Business Existing businesses Square footage 500k sq. ft. added a) Expand/enhance the business outreach Retention and of expansions 1/1/14-12/31/16 program Expansion Existing businesses Employment 300 jobs added b) Analyze expanded methods for increased growth 1/1/14-12/31/16 business contacts Existing businesses Retention 90 % of existing c) Evaluate city business expansion non -retail requirements for streamlining businesses retained opportunities Incentives and New business Leveraged 3 new businesses a) Expand marketing strategy to ensure Tools to Achieve development investment via tools/leverage alignment w/ Lakeville success factors and Success btwn 1/14-12/16 current incentive policies b) Establish EDC/City Council consensus on incentive policies, assumptions, ROI, priority locations Enhancing a Pro- RE Developers Satisfaction w/ 90% satisfied- a) Continue and enhance surveys of Business Climate city processes survey contractors, developers, and businesses b) Develop a concise "development review process" document Existing businesses Business 90% good place to c) Conduct a professionally administered environment operate, expand, and statistically valid business survey locate every 3 years d) Create "internal brand champions" to market/communicate Lakeville's benefits internally High Density Housing Sites reguided for 12 scattered sites a) Adopt city "housing goals" Housing high density btwn 1/1/14- b) Develop an economic development 12/31/16 housing strategy CA zoned districts C/I districts with All C/I zones c) Determine C/I high-density housing hsg allowed changed to permit demand hsg by 12/31/16 d) Create a plan to address expanded housing options in C/I zoning districts $1,150 $1,100 $1,050 $1,000 - $950 — $900 $850 -- $800 — Average Rents 2nd Quarter 2011 to 2015 Lakeville/Farmington MAXFIELD RESEARCH & CONSULTING, LLC Twin Cities Metro Area ■ 2011 2012 2013 2014 n2015 TABLES AVERAGE RENTS/VACANCIES PRIMARY MARKET AREA 2nd QUARTER 2011 to 2015 2011 2012 2013 2014 2015 Units 506 506 506 506 509 No. Vacant 26 19 9 14 13 Avg. Rent $1,048 $1,030 $1,069 $1,086 $1,096 Vacancy 5.1% 3.8% 1.8% 2.8% 2.6% Twin Cities Metro Area Units 106,986 107,822 114,715 114,496 120,668 No. Vacant 2,561 2,919 2,675 2,986 3,440 Avg. Rent $921 $951 $979 $1,004 $1,055 Vacancy 2.4% 2.7% 2.3% 2.6% 2.9% Sources: GVA; Maxfield Research and Consulting LLC Average Rents 2nd Quarter 2011 to 2015 Lakeville/Farmington MAXFIELD RESEARCH & CONSULTING, LLC Twin Cities Metro Area ■ 2011 2012 2013 2014 n2015 6.0% 5.0% 4.0% 3.0% 2.0% Average Vacancies 2nd Quarter 2011 to 2015 Lakeville/Farmington ni Twin Cities Metro Area 2011 2012 2013 2014 2015 Twin Cities Metro Area Apartment Vacancy vs. Rent 1st Quarter of Each Year 10.0% $1,zoo __..._.. 9.0% r Rent -41- Vacancy $1,100 8.0% 7.4% $1,000 6.9% $900 7.0% $800 6.0% 5% 4.946 j $700 5.0% 4.4% $600 w U s 3.9% 00 > 4.0% t t $500 3.0% 2S% 2.8% 2.6%ll 7..740 $400 a �' $300 2.0% $200 1.0% $100 $841 $847 $850, $85S $876 $909 $908 $901 $916, $935 $966 S1,044 51,018 0.0% $- 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MAXFIELD RESEARCH & CONSULTING, LLC Summary of Findings Lakeville Housing needs and Recommendations From the Report: Comprehensive Housing Needs Assessment For Dakota County, Minnesota Prepared for: Dakota County Community Development Agency Eagan, Minnesota February 2014 4 e,Id Research laic. 21 Nicollet Avenue S. Suite 218 Minneapolis, MN 55403 612.338.0012 Introduction Maxfield Research Inc. was engaged by the Dakota County Community Development Agency (Dakota County CDA) to complete an updated comprehensive housing needs assessment for Dakota County. Based on an analysis of demographic growth trends and characteristics, the County's existing housing stock, and current housing market conditions, the needs assessment calculated housing demand in the County to 2030 and recommends housing products to meet demand between now and 2020. The following are key findings pertaining to Lakeville from the study, which was completed in late fall 2013. Key Demographic and ftAarket Findings 1. Dakota County was grouped into three sub - markets; as in 2005, Lakeville was placed into the Growth Communities. Sites for new hous- ing are limited in the Developed Communities and the Rural Area is primarily reserved for agricultural uses. 2. Demand is projected for 49,525 new housing units in Dakota County between 2010 and 2030. This includes about 34,750 new units in the Growth Communities (70% of the total), and about 13,628 new units in Lakeville. E, Job growth is a key creator of housing de- mand. From 2000 to 2010, Lakeville added 3,942 new jobs, which was slightly more than half of what had originally been projected by the Metropolitan Council for the decade. Nevertheless, Lakeville's job growth was the second highest after Mendota Heights in Dakota County and accounted for about 12% of the County's job growth during the 2000s. Lakeville is anticipated to seethe highest job growth (53.6%) this decade for the County and is projected to command 20% of the Cou n- ty's job growth through 2020. Dakota County Submarkets County Submarkets Developed Communities Growth Communities Rural Area Population, Household, and Employment Growth Lakeville, 2020 to 2030 2000 2010 Population 43,128 55,954 Households 13,609 18,683 Employment 10,966 14,908 Sources: US Census; IVetropolitan Council; Maxfield Research !nc. MAXFIELD RESEARCH INC. 1 Change i 2020 2030 2000_2030 67,000 82,000 38,872 23,000 29,800 16,191 22,900 27,400 16,434 Sources: US Census; IVetropolitan Council; Maxfield Research !nc. MAXFIELD RESEARCH INC. 1 4. As the adjacent chart shows, Lakeville is expected to continue to experience strong population and household growth over the next 20 years. Lakeville remains poised to capture a large portion of the County's household growth between 2010 and 2030 (21%). N All age groups in Lakeville will in- crease in population over the next two decades. Growth is an- ticipated to be greatest among those between the ages of 35 and 74. This will support continued demand for single-family housing and a growing demand for maintenance -free housing to 2030. From 2010 to 2030, Lakeville's 35 to 54 population is projected to grow by 12,800 people; the 55 to 74 category is projected to grow by 11,700 people. 6. As of 2011, 38% of renters in Lakeville were considered "cost -burdened" or paid 35% or more of their income for rent (31% in Dakota County). Of those considered "cost - Distribution of the Adult Population Lakeville, 2000 to 2030 30,000 ......... .a..,.....n.,.._ ....,....,-..,. R„- __� _..._. 25,000 20,000 v 0 15,000 a 10,000 5,000 0 2000 2010 2020 2030 - f -18-3418-3434 -- -35-54 X55-74 75+ burdened,” 20% were consi- dered "severely cost -burdened," paying 50% or more of their income for rent (21% in Dako- ta County). Among owner households, 17% in Lakeville pay 35% or more of their income for housing, with or without a mortgage (19.8% in the County). An estimated 8% pay 50% or more of their income for housing (9.0% in the County). 7. Similar to the Metro Area and Dakota County as a whole, the market rate rental market in Lakeville is tight (2.5% in Lakeville, 2.25% in Dakota County, 2.5% in the Metro). In addition, demand for rental housing targeted to low- and moderate -income households remains high. In Lakeville, there are four affordable family rental townhome projects, all of which are essentially fully occupied. 8. Lakeville Woods, 75 market rate rental units, was built in 2007. This new building leased up rapidly, despite opening during the Recession. Overall, Lakeville has it relatively low percen- tage of renter households (12.3%) compared to the County (23.5%) and the Metro (30.0%) (2010 Census). The update analysis supports that 22% of all new housing added in Lakeville MAXFIELD RESEARCH INC. � ` Lakeville up to 2030 should be rental and that 47% of that rental construction be targeted to households with moderate incomes. 9. In 2005, the average price of new homes in Lakeville was calculated at about $460,000 for single-family homes and $225,000 for town- homes/condominiums. The aver- age sale price of new construction homes in Lakeville was $326,714 for single-family homes and $264,220 for townhomes/ condominiums as of April 2013. New housing is primarily satisfying demand from move -up and execu- Average Horne Resale Prices -Lakeville 2005 through 2013 (March) $400.Oo0 --------------------- ---------------- _.._..-_-._..._.._....___.__.---._._.._.-----.------...------------ milt' -..---.._.- y $350,000 pSingie•Family uJ_ .2 5300,000 [Multifamily y m $250,000 v j $200,000 la_ y slso,000 a — a $100,000 — $50,00o y so J- I le Source: Northstar Multiple Listing Service tive buyers, while older existing homes are providing housing for entry-level and first-time buyers. The median resale price for single-family homes was $355,721 in 2005. As of 2013, the median resale price was $266,475. Price deflation during the Recession, has resulted in existing homes becoming more affordable, creating an increase in demand for this product type. The average resale price of existing for -sale multifamily homes was $226,277. As of 2013, the average resale price had decreased to $153,567. In 2012 and early 2013, 460 new single-family lots were platted. Among the permits issued, 82 were for new housing units as of April 2013. Months of supply of single-family vacant developed lots as of April 2013 were almost two years, just shy of the typical three year in- ventory. Months of supply of town home/condominium vacant developed lots as of April 2013 were much higher, more than 20 years. We anticipate that developers may request some townhome lots to be re -platted for single-family homes in the short-term. 10. In 2005, Lakeville only had one subsidized project (24 units) targeted to very low income seniors and two affordable rental projects. Over the past several years, three new market rate senior housing developments have opened in Lakeville with a total of 345 units. All of these properties offer a continuum of care including independent living with optional ser- vices, assisted living and memory care. An additional affordable senior property was built in 2008, bringing the total to three senior properties targeted to seniors with moderate in- comes (202 units). iMAXFIELD RESEARCH INC. 3 Housing Demand Calculations 11. The projected demand of an average of 13,628 housing units in Lakeville from 2010 to 2030 is shown by type below. These figures reflect the ability of Lakeville to draw some demand from other nearby communities and from the Metro Area as a whole. For -sale single-family homes = 6,759 units (50%) For -sale multifamily = 3,583 units (26%) Rental market rate = 943 units (7%) Cl Rental affordable/subsidized = 749 units (5%) f Rental senior affordable = 608 units (5%) Rental senior market rate w/ services = 756 units (5%) o For -sale senior market rate — 230 units (2%) Total = 13,628 units 12. Lakeville has an ample supply of residential land available for development and is projected to continue to lead the County in the development of for -sale housing over the next 20 years. Projections indicate that Lakeville could add 10,500 units. Demand for rental hous- ing too, is expected to increase substantially over the next 20 years. Over the next 20 years, Lakeville is projected to have a demand for approximately 3,050 rental units among all in- come levels. This total general occupancy and senior rental housing demand amounts to 22% of overall housing need. However, the proportion of households in Lakeville that rent their housing is anticipated to remain relatively stable over the next 20 years. Housing Recommendations The overall projected need for var- ious housing products to satisfy demand from current and future residents in Lakeville through 2030 is presented in the table on Page 6. Specific recommendations to ad- dress the affordable housing needs of low- and moderate -income households in Lakeville (as pre- sented in the table) over the short- term are summarized below. For -Sale Housing liecomn►endations Projected Housing Demand In Lakeville by Decade 2010 - 2020 0 2020 - 2030 5,000- 4,500 - ---- ----- - -- 4,000 ---------- 3,500 --- ---------------- _._.. -- - --- - -- --- 3,000 - -- -- ---- - -- - - - --- - ----------------- - - 2,500 - - - - ------------- 2,000 ---------___1___-______- ----------- ---- - 1,500 - -- -- -- - - -- -- - - 1,000 500 ----- - -- - - __ �_. 5$1 The Recession caused some price deflation for single-family new construction, but a greater level of price deflation occurred among existing homes. The new construction market will con- tinue to develop homes beginning at $300K and above. Although there is demand for homes MAXFIELD RESEARCH INC. 4 priced less than $300K, existing homes are expected to satisfy most of the demand from mod- erate -income buyers. For -sale multifamily could also satisfy a portion of this demand. Housing Rehab Recommendations In general, most of Lakeville's housing stock is relatively new. Where there are pockets of older housing, housing rehabilitation will become important to maintain the quality of older homes moving through the next two decades. The Dakota CDA can be instrumental in assisting the City of Lakeville's current and future residents that may need assistance with loans to improve the quality of their properties. Encouraging the use of housing rehabilitation and housing wea- therization programs should continue to be a priority for the city. Subsidized/Affordable Rental Housing Recommendations There is demand in Lakeville for rental housing that is affordable to low- and moderate -income households and new properties located in Lakeville are full. Identifying appropriate high- density sites may be challenging as these sites will also be in competition from private develop- ers. Over the short-term however, there is likely to be slightly less demand for market rate multifamily which would enable the CDA to take advantage of a slower multifamily market to identify and purchase sites for future development. Mixed income buildings can also help to increase the amount of affordable housing in the community while also producing market rate housing. We recommend the development of one workforce townhome development in Lakeville by 2020 and a second development by 2030. These properties, in addition to other mixed -income properties (80% market/20% affordable) should be promoted in areas where residents would have convenient access to shopping, services, and transit. Preserving the quality of the existing stock of older apartments in the community is also important as it provides affordable rental housing to low/moderate income households long-term. Lakeville could also encourage the use of rental rehabilitation programs for older rental housing units. Although Lakeville Woods was developed in the late 2000s, there remains demand for addi- tional market rate rental housing in the community. Encouraging additional development of new multifamily rentals will support ongoing household growth in Lakeville. Affordable Senior Rental Housing Recommendations The Dakota County CDA's senior housing program has been very successful in providing afford- able housing to lower- and moderate -income seniors. Lakeville has three affordable senior properties (Main Street Manor, Winsor Plaza and Crossroads Commons). All are full with wait- ing lists. We recommend the development of one affordable senior property in Lakeville by 2020 and another by 20130. MAXFIELD RESEARCH INC. �' Special Needs Recommendations A portion of Dakota County's population has physical or cognitive limitations and/or has expe- rienced challenges in securing and maintaining private housing. Based on our research, several groups were identified as needing specialized housing options in Dakota County through this decade and into the next, including housing for the homeless, housing for youth who do not qualify to reside at the existing Lincoln Place, transitional and supportive housing for teenage single women with children, permanent supportive housing for those with physical and/or cog- nitive limitations. These developments may be added throughout the County. However, we recommend that Lakeville consider a location near transit opportunities to locate a property that would be affordable and offer a strong connection to transit and services for those with special needs. MAXFIELD RESEARCH INC. ����� 6 T Ln O \ Ln \ ' In in N Ol O a H ri m — n s a in N OO li m aa)) a N io ` 0 ri M o o O c o E rl N Ln 00 dl } O1 N 0 Ln + M m of N Ln m O�0 u O O O Y E ^ W Q M O LM N h M r�-I O r M l0 O N i N v 5 O a O E O T -O V O O M N N E N \ O ED N LD N * M \ O v N Ln b O M tb O * M M N m M M t 'Q d' N 7Ln .--I' c-I :p , N M > >N It n + _ !Z Ln O Ln 75 E Ln Ln O '+ m M N Ci m N N n Li M N M m �-1 u O1 tko O V d1 n N m o o 00 00 � 00 N 6 j0 L O\ LO 00 N n n C 00 n C O 'O m O N M M * ti! m c-I M m f y c-I c-1 ci ci O i(u m O m w o O m c E o Ln 0Yo 0 N tom ri 11 m O Ln M Ln O in N m 00 LL V m kc +n Ln } ri H CP O y �Ni cQ Om > 'E G LY C) i/1 a J o Z n H O z N0 O ei O 4- Y N = "'Q N N = n r-I 2 v QQ J m N W 7F0 Q W 0 O J Q Q N m O� ca O m C 7 ai O O N O N i O H Ln m N oC ^ > Q > O (J LU C = 0 VI 0) LL > ' O N = m O O O " M 00 N N H LO Lo 11 + O1 O to V O N m lii Ll'f O 0�j i i i i 'L.. i i O i O O ONtl9 O O LO _ O C N ro Ln 00 N � O O O .q LLnn O 4� N N N O O V O O +' M T N p N t Ln 'd' _ W N N p a i! N d. N m M m T M H O � i - j, e-I N M Ln a=, O CCL O M N O V E O N Ln �-i m Q M f\ n ti N N N O1 U M In 60 .- O a m a Ln\ n v LO m * Ln \ N n 0 +-'Nko ) r` n M m N a m o E N O/ H 1 ci 1 N 1 T N M � 1 1 Ln 1 n 1 cL (u1 Ln N m 0 Ln LD C C O d' Ln Ln LD 00 LnL.L N N M m �l `� O Lu Lr n p v- 'z3 m N am 01 m v m m E aiK C C i C F Y 0 0 E CD H Q p OO G O _ V U (_J O U C m 01 +, C t— 01 a.. N t E ° m ° m o c'Yo a J C7 O m a J C7 D * * N W J co u O W X_ 0 Z W a a a !2 "t 00 Ln LR rn m Fl: d 00 G N CY) ri {:l m 00 Ln 01 r� O d N 1--t rl p C N ri a -I O a ai -i a --I M M M O O O N O to O N O Lr) O N O a) O c 0 Ln o c o ri a O o co 0 N O O O O O N O O co 00 O N O O rn c-1 O N Z Ln 'i LO I Ln tY'i O N Z tp 00 N r -i n N Z N M O O m a -i N I,. 00 O ei tD 1- tD f -I c -i {.� `7 Q1 O 07 Li M m Lr �'i M rl cr1 O D. It ci ci O a N c -i rH O C Ln N N N N t l t " O CF m M O c -I ,�-i Lr1 O m tND rl O O O1 ""i M n N e -I Z N Z ri I m N Z O O N Ln N Z r- N O d' N Ln O Ln F- u W 0 1� O M C1 cn N Ln Y, Ln Dl LM O 00 Q ei ci ei ZN I N N a N O I W M O 07 O O N tT N Q O N N dm O 01 O V c -i r -I O 00 tD rn O ® M N ® O m O Lr'l W N Z N N m N Z Ln O LO N Z d' � ei � Ln M N 01 IY'1 N � O yy O O O O Ln O O N w F p O tD O p 00 Lrl O p tD O C7 Z O M Z N t0 r, M Q 01 .-i d M Z I, 1, m N N O W N Z O O C O 0 O N N CP ai W u N O a M O x O } a F y _ O O OO O 0 0 Ln O O O O O MN O O O a c CL O co ry 01 - =O 1 , O C Ln O p p M W N 1� ci moi lV M N N N Lrl rrl u Q N p �r Qfn a -i ci U Q ca J � _ N Ln tD co CD d' O lD Ln4J W0 0� Lrl O p LD O r- p 01 N I� = G 111 Ln 00 m N �"1 aa 00 vi N Ln I- o d' ,-i LnO 00 rn v O N M (D N a -i �i N -i tD ir- = V1 N H r' ul X m Z C C C _O H 4/ a u 00 dl O u Q1 .-I O'. u LO N In u N O N O U') Ln. to cY p rl Ol i, p LO ci d p C N N 3 O M Lrl W O M H O O ct m 0 0 N N N N Ln U M rq cm -I C -i N ri I6 O Q 0 a� D I H —— ro 0 m H — co c c FO- H F2U o. n o v o .y O .d — O cc0 — .y O J C- c- !n !2 V5 W J m U Q Cl - V C0 C W V❑ z W M i " CD LO o m � O m N M0 -4 M d LD m M O o C LD o N )' m N LT U N N lD LD Ln 00 m N O W N O O ti -1N Ln dM' O N m LO O O m N 00 ^ N ^ Ln' N � L1) Ln to c)' V T CD r, O N O N m Ln 14 Ln O m )3) N Ln Om) O O Ln d' N O m Ln N N 0 N N00 Ln 4)Vim` m _ m m Q Q O 't O O Ln fl O 00 rt O Ln O Ln m O O 00 O N M ci O N O O m N LD' j N N LD' N m Ln Lf) N V N m ol 00 LD O N 1, O -t r- m ci (3) m e -I W N Q1 Ln (3) 00 O V 01n O) W N N lfl 00 LD V Lf) Ln 1-4 N (� N Ln O O m m 00O m o OLO Ln N m Ln O Ln n N m LD O N r M N Z LO N LD N N m m ci W M O n 000 O W LSD O lMO O N m' m N O I m m ci Ln N N LO N -qa m N rn j N O 00 m O n m lfl Ln O O ct M^ L O O M 0�0 N cl'1 O V N 0 N I r z- C 0 m 00 < L z 0 Q O �-i LO Q O Ln m O 00 L m O m 00 O -i T O 00 o m o p O m ci O N N O to V N V N N N 00 N Lf) D) N ti 0) O � Ym y� O M O O �-I m O I� m w X O O N O N N o Q N r4 Ln fV !L n N N tt-- LN Ln M 0 m "moi p Ln M m m O N LO d' O n LO 0D N N' N' N m LD N Lf) w try t6 d N N N m O LO N ri m O 00 ct Ln f` O 0o m ci +O+ i N O' e -I N m L11 Ln N ei li LO M Lp y O a Cd O 0 0 O .--I N 1. O lD M= N Ln O W O M O Ln N m LO O N N N O nj N O +L 0D ai Ol Q Q U C Q O LLD LLD O' Lr)DY) O m dt u o Ln oo O n .- i O 00 00 N L 0 N m 0 ko0 N .moi Y _ ci I Lz O cot Om) a0C:, Om1 m ccO N C N � N O^ G 00 LY L7 — W N 3 O O O 0 V N U N U — .> Co _ . _ .� v o O j y0 U Y --,e fa Y 1 f0 Y Y (6 7 J O J ❑._. _. r J D L i H W J m Q H U 2 a 0 3 O 2 a W v I�1 z LU CL CL 1 -05 A � a m C _ d K Ln O m O 00 Lo rC G i CL ' CR Ln cq m io C M lD O z � co N � n l0 }yid C O W N n N N o°1c N m j1 71I O .41 M • N f N m C 3 M ri N o p m n y Z p w cc o M 01 ti n N M Lo m G O N a N O o n c Z p N 0 = en OO W Z U N W m Q Q1 a, Ln m W O G M a z O K F � � O O N LOO N = C W m W � D O O ci N 'i C u m N N O C N ~ m co � N N v N O O N n � ti X � C 3 W a N o _ C LlL O v c V d M M Ln 1 a � U L � � N o o cn m m m ❑ C 3 OM1 b Ll N o � n C F �. C N U N ry o U � d m o Y u J 0 ❑ N -05 A BUSINESS Homebuilding increased in the Twin Cities last year, but mostly for apartments Twin Cities residential construction rose in 2015, fueled largely by rental demand By Jim Buchta (http://Wtvw.ftrtribune com/jim$uchte/10644536/) Star Tribune JANUARY 5.2076 — 8:20PM Twin Cities homebuilders gained ground in 2015, chiefly driven by demand for new apartments, according to a year-end report from the Builders Association of the Twin Cities. Throughout the 13 -county metro area, 4,899 permits were issued to build 10,208 units, up from 10,093 in 2014. Of those units, more than half were apartments; 4,679 were single-family homes, up just five units from 2014. "We had hoped to see a much stronger year in 2015," said Chris Contreras, the Builders Association of the Twin Cities' 2015 president. Although some metro -area builders posted healthy gains over the previous year, sales of new single-family houses have yet to regain the kind of momentum that other segments of the industry have experienced over the past several years. Instead, apartments have led the construction recovery, reflecting a deep and long-term shift in the way people live in the Twin Cities. As it has for the past several years, Minneapolis was the most active city in the region for new housing. The city accounted for 1,470 of the new units. Edina was No. 2 with 604. The vast majority of the new housing built in both cities was upscale apartments. Last year, U.S. homeownership fell to a 48 -year low despite an increase in the number of people in need of housing. Instead of buying, many are renting, putting significant pressure on the rental market in the Twin Cities, where until recently there had been a nearly two -decade lull in apartment construction. Since January 2015, 5,750 apartments have become available in the metro area, but the average vacancy rate fell slightly to 2.3 percent by the end of October, according to a quarterly report from Marquette Advisors. Meanwhile, new home sales haven't met expectations. Builders blame the situation on a variety of issues. Contreras said the regulatory climate in Minnesota, for example, has increased the cost of new houses, making it difficult for builders to compete with less expensive existing homes. Oittp://slmedia.star r bune.com/images/ows_1452046 New energy and building codes were implemented in the state last year, including a The Arcata luxury apartment complex in Golden mandate that required large houses to have built-in fire sprinklers. Builders said the cost Valley, with amenities such as this community of compliance would add tens of thousands of dollars to the cost of an average new kitchen, is one of the recent additions in the Twi... house, and they successfully appealed the rule to the Court of Appeals, which invalidated it. "We are hopeful that more families will be able to afford their dream home in 2016," Contreras said. Todd Stutz, president of Twin Cities -based Robert Thomas Homes, said that higher construction costs, including labor and materials, has made it particularly difficult for builders to compete. Still, the company was able to increase sales in 2015. The company built 124 houses last year, 18 more than the previous year. "We were satisfied with 2015," Stutz said. "We considered it a relatively stable, uneventful year." Stutz and other builders said that a late -season increase in sales suggests an early and strong spring market in 2016. During December alone, 386 permits were issued to build 1,041 units. That was an 8.7 percent increase in permits and 5.5 percent increase in planned units from the four comparable weeks of 2014. Graham Epperson, division president for Pulte Homes, a large national builder, said that though Pulte's Tbvin Cities sales were up 35.5 percent over the previous year, the company expected more. He also noted a late -year uptick. "We had a very good December and are feeling some good momentum in early January," Epperson said. One of the challenges in 2016 will be to attract a broader range of buyers, including first - timers. and empty nesters looking for less space. So the company is rolling out more affordable side-by-side houses at The Enclave, a new development in New Brighton. Those three-story townhouses will have at least 1,900 square feet and a three -car garage and will be priced in the $300,OOOs. Epperson said Pulte's Minnesota business was one of the company's fastest-growing divisions last year. "We think the Midwest has a tremendous opportunity to grow much faster than it is today," he said. `But a lot of people are choosing to rent." jim.buchta@startribune.com 61273-7376 BUSINESS Big construction projects downtown, at U have peaked; action will move to neighborhoods and suburbs DECEMBER 6, 2015 — 2:OOPM Chris Grzybowski, a partner in the local office of Utah -based Big -D Construction, is kind of a proxy for the Twin Cities building boom .w` a that in Minneapolis alone is heading for a record four years in a row of $1 billion -plus in commercial -residential building permits issued. "We've been fortunate," said Grzybowski, 51, a Wisconsin native ] FAL ST• who moved to Minnesota with his family in 2013. "We've got about ANTHONY $180 million worth of projects done or underway this year. "It's been mostly multifamily-, also public works projects; a bank building, a restaurant. We're diverse. We also have put some projects on Big -D's portfolios in Colorado, Washington and Utah through relationships here. The owner of Big -D is pretty happy with our performance." Yet Grzybowski and other veteran contractors also believe the pace of development, at least in downtown Minneapolis and at the University of Minnesota, will slow over the next year or so. Minneapolis topped a record $2 billion in construction permits pulled in 2014. About a quarter of that was a big chunk of Vikings stadium construction and re- lated private developments in Downtown East, the last undeveloped downtown tract. Minneapolis crossed $1 billion for 2015 in September, again thanks to about $120 million in construction permits pulled for the Wells Fargo office buildings that are nearly com- plete in Downtown East and the nearby Portland Towers condominiums on Seventh Street, according to city records. But this year should fall short of last year in terms of volume in the city, particularly downtown. And things may be cooling in the several years -hot loop that has witnessed its biggest boom ever since 2010. "Potentially there will be some pain for developers," said Kelly Doran, CEO of Doran Cos. and a developer -builder in the Twin Cities for 30 -plus years. Doran, who has been engaged in at least $100 million in projects for several years, in 2009 broke ground on upscale student housing on the U's East Bank campus, and apart- ments for professionals and retirees downtown and near St. Anthony Main. "We're still doing projects downtown [as a contractor], but I don't understand how all the planned downtown [residential] projects are going to work," said Doran, who built hundreds of downtown -area apartment units that rent from $1,200 to $8,000 a month for a penthouse. He's lately shifted his focus to multifamily housing in Maple Grove and other suburbs. Some empty -nester baby boomers arc selling houses into a solid market and choosing to stay and rent in their home communities. Doran, the fust developer in town to get financed and start building private projects in late 2009, said: "Wall Street looks at real estate as a commodity but it's not. It's a local game. You can have areas where its overbuilt in one neighborhood ... and the U of M is now overbuilt. "And almost all our campus buildings are at least 95 percent leased. The debate is wheth- er these [neighborhoods] can take anything more." Builders such as Doran and Big -D are swinging to the suburbs and parts of Minneapolis and St. Paul with market -rate housing. The part of the market that still lags is affordable housing for workers whose wages ha- ven't grown for a decade. (http://stmedia.startdbune.com/images/ows_1449290191384 SUBMITTED PHOTO Big -D Construction partners Cory Schubert, ieft, and Chris Grzybowski run the Utah firm's Twin Cities office. Grzybowski believes the pac... CEO Alan Arthur of nonprofit developer Aeon and a variety of partners have spent about a decade on a $50 million overhaul of the once -blighted intersection of Portland and Franklin avenues in south Minneapolis with 250 housing units in four buildings that bear market rents for families of up to $1,600 per month but also affordable efficiencies and one -bedrooms for folks making $12 an hour. The development includes retail, child care and office space. However, affordable housing often takes years to develop through a patchwork of finan- ciers, including banks, foundations, government and tax credits for affluent investors who participate. A few of these deals are now coming to fruition but not enough to sup- plant the activity created by the taxpayer -financed Vikings stadium and the other down- town projects. Jamey Flannery, owner of Flannery Construction in St. Paul, which does up to $20 mil- lion a year in projects, said she's balancing affordable -housing projects with nonprofit partners with small commercial developments. "We're patient and we carne out of the recession very lean and grew slowly since 2011," said Flannery, one of the few female construction -firm owners. '"This year was very busy. But it takes a long time to develop affordable housing with the 'alphabet soup' of fund- ing. And we do light commercial, under $2 million for most jobs, such as the new 'Italian Eatery' on Cedar Avenue S. "We're not exactly Mortenson Construction," (general contractor on the $1 billion -plus Vikings stadium). Neal St. Anthony has been a business columnist and reporter for the Star Tribune for 30 years. He also has worked in financial communications for two publicly held companies. M nstanthony@starhibune.com 612-673-7144 NORTH METRO Developer Kelly Doran shifts his attention to the suburbs After selling upscale apartments built near the U, developer Kelly Doran has new projects in north and west suburbs. By Jim Buchta(http://wwwstartribune.com/jlm-buchta/10644536/) Star Tribune NOVEMBER 5. 2015 — 5:37PM After building hundreds of upscale apartments near the University of Minnesota in Minneapolis, Kelly Doran is shifting his focus to the suburbs —for now. Last week, he broke ground on a 484 -unit apartment project in Brooklyn Park called 610 West, and he's about to start construction on major apartment projects in Maple Grove and Hopkins. "I guess you could say we're bullish on the suburban market," Doran said. Though the company isn't working on any development projects of its own in Minneapolis, the company is still active in the city. Doran owns four multifamily properties and its construction company is building The Encore luxury apartments in the Mill District for Sherman Associates. The company is also the general contractor on the expansion of the Depot Renaissance Hotel, also in the Mill District. "Minneapolis is a dynamic, ever-changing city that will always present development opportunity," Doran said. "Just because our next three projects are in the suburbs doesn't mean we wouldn't develop a project in Minneapolis if the right deal came along." Doran is at the leading edge of a metro -area development trend. In a second quarter analysis of apartment construction across the Twin Cities, Brent Wittenberg of Marquette Advisors said the suburbs are poised to outpace Minneapolis and St. Paul in apartment construction. In 2015 and 2016, he predicts more than 50 percent of the new rentals coming to the metro will be built in suburban locations, compared with just V percent in 2014. In Brooklyn Park, Doran's 610 West project will have four buildings and a 24,000 square -foot clubhouse, all of which will be connected by underground walkways. They'll be the first new market -rate apartments in the city since 1992. "We're excited about 610 West," said Doran. "You can image why there is a lot of enthusiasm for the project among city leaders and the community in general." The project is in the Hwy. 610 corridor, across from the Target campus and next to an LA Fitness and Cub Foods store. The $90 million project will include about $7 million in assistance over 15 years from the city's Economic Development Authority, depending on the profitability of the project. After he starts that project, Doran will start building the Moline, an upscale apartment building in Hopkins. It is named for a tractor manufacturing company that was once based in the city. The Hopkins City Council recently gave Doran approval to build the five -story building, which will have 241 units on the north side of Excelsior Boulevard at 810 S. 1st St. The Moline will replace a warehouse that Doran bought in February for $3.55 million. The project will have a mix of units sizes, several walkout units and a combination of underground and surface lot parking spaces. Amenities will include public indoor bicycle lounge with vending, trail maps, bike repair stations and electronic device charging stations. There will also be a public outdoor plaza with hydration stations, bicycle storage, dog watering stations and public art. The project isn't Doran's only interest in Hopkins. This summer he paid $12.8 million for the three-year-old, 53 -unit Marketplace & Main apartments. Doran is also proceeding with his plans to build what could be one of the largest apartment projects in Maple Grove. He received preliminary approval to develop a two- phase project with nearly 700 apartments in the fust phase and retail and a hotel or two in the second phase. (ht1p:0stmedla.startribune.comlimager tows_ 144676407813819.j (http://stme-dia.startribune.com/ima,ges/ows_1446764 Rendering of the 610 West project in Brooklyn Park that's within the Hwy. 610 corridor. After selling four apartment buildings near the U this summer, Doran paid $10.5 million for a 40 -acre parcel at the northeast corner of Hemlock Lane and Elm Creek Boulevard in the Arbor Lakes area- jim.buchta@startribune.com 612-673-7376 - RE]ournals.com - http://www.rejournals.com - Employment gains drive Twin Cities' apartment market Posted By Dan Rafter On December 3, 2015 @ 6:24 am I No Comments Why is the multifamily market such a hot one in the Twin Cities? Marcus & Millichap points to the jobs market here. According to the company's most recent apartment research, the abundance of employment opportunities is attracting job seekers to the Minneapolis/St. Paul area. And when these job hunters get here? Many of them want to live in apartment buildings in the heart of the city's urban areas, which explains the multifamily construction boom still taking place in the Twin Cities. Don't expect apartment construction to slow soon. Marcus & Millichap says that major employers such as UnitedHealth Group and Amazon plan to hire hundreds of workers during the next several months. As more residents stream to the Twin Cities in search of these jobs, apartment vacancies throughout the metropolitan area should fall, even as developers are expected to add thousands of apartment units to the area throughout 2015. This is all good news for owners. Marcus & Millichap reports that the demand for apartments is causing rents to soar. The company says that apartment rents during this year have seen their largest climb in seven years. To no one's surprise, the downtown Minneapolis area is seeing the most new apartment projects, followed by the area around the University of Minnesota. But developers aren't neglecting the suburbs, with Marcus & Millichap predicting that they will add more than 2,000 units to the Twin Cities' suburbs during 2015. The raw numbers tell an impressive story: Construction: Marcus & Millichap says that apartment completions reached their highest peak since 2000 during 2014, when 6,100 apartments were brought into service. In 2015, construction slowed, but only by a bit. Developers are expected to add a total of 4,800 new apartment units this year. Vacancies: Marcus & Millichap reports that the multifamily vacancy rate will fall to 2.5 percent by the end of 2015. That's down 20 basis points for the year. Net absorption will reach 5,200 units. In 2014, the apartment vacancy rate fell 50 basis points. Rents: Marcus & Millichap reported that effective apartment rents will rise an average of 4.8 percent to $1,098 a month during 2015. This increase comes after last year's gain of 3.1 percent. Copyright © 2010 REJournals.com. All rights reserved. NORTH METRO Apartment construction booms in Twin Cities suburbs after decades -long drought Several new market -rate apartment complexes are in the works, reversing a decades -old trend in which single-family home construction has driven growth. By Shannon Prather (http://www.startribune.com/shannon-prather/188067161/) Star Tribune MARCH 14, 2015—10:24PM Brooklyn Park City Council Member Peter Crema once campaigned on a "no new apartments" pledge, citing the nuisance and crime problems linked to some of the aging cookie -cutter apartments already peppering the city. Yet even Crema acknowledges that a $90 million upscale -apartment project proposed by Doran Companies could be a shot in the arm for the northern suburb, answering a housing need for young professionals and downsizing empty nesters. 'This is a different product, and there is a need for it," Crema said. Located on the Hwy. 610 corridor across from the Target campus, the 480 -unit project will be the first market -rate apartment complex built in Brooklyn Park since 1992. It is one of several new market -rate apartment complexes in the works in the suburbs, reversing a decades -old trend in which single-family home construction has driven growth and been the preference of many suburban City Council members. Brooklyn Park Community Development Director Kim Berggren believes the shift is primarily market-driven. "We are seeing this new lifestyle renter," Berggren said. "We are trying to fill the gaps in our housing options." In many instances, cities are now chipping in dollars to make the apartment projects happen. Changing lifestyles, especially among millennials and baby boomers; hesitation to buy after the price free fall of the previous decade, and the expansion of light and commuter rail into the suburbs are spurring the trend. A hot rental market is also pushing developers to look at options outside of the urban. core. In 2014, Minneapolis replaced Philadelphia as the 10th -most -expensive U.S. rental market, according to the real estate database Zumper. "This will set a new standard in the marketplace," Berggren said. "There are a lot of young professionals looking for a housing option. They are waiting for a project like this to become available." Even with strong support from the Brooklyn Park Economic Development Authority, developer Kelly Doran was still asked to stand up and differentiate his project from existing apartments. "People confuse the apartments of old and the new generation of living," he said. "There is a growing part of our society that is choosing as a lifestyle to live in an apartment project. "There isn't going to be anything comparable to what this project is," he said, describing plans for heated underground parking, fitness center, a deluxe clubhouse and private party spaces. Doran, known for his upscale student -apartment projects in Minneapolis, is investing $11 million into the project and borrowing an additional $76 million. And the city's Economic Development Authority is offering up to $7 million in aid over 15 years. The amount of assistance would be reduced if Doran's profits exceed a certain threshold. Doran said he is also exploring apartment projects in Hopkins and Maple Grove. He said changing market forces and evolving opinions about density and development have drawn him to the suburbs. Suburban councils have come to understand that young (http://stmedia.startdbune.com/images/1 426374123 -_ 1003W1 + DAVID DENNEY. DML - STAR TRIBUNE ♦ DAVID DENNEY A $90 million, 480 -unit upscale -apartment project proposed by Doran Companies is planned for the Hwy. 610 corridor in Brooklyn... professionals working in the suburbs are seeking more compact urban enclaves with apartments, retail and coffee shops close to the job. "Cities are now evolving and are willing to accept some more density," Doran said. "Many communities were resistant to multifamily housing, perceiving they had enough of it. Some of the existing product they had was old, tired and not kept up." Action in other suburbs Other suburbs are also approving their first market -rate apartment projects in decades: • The Blaine City Council will consider approval of the Emberwood Apartments, 112 units on the north edge of the city. It's the first market -rate apartment complex the city has considered in two decades. • In Fridley, construction has started on Cielo, a 259 -apartment complex blocks from the Northstar commuter rail station. It's the city's first market -rate apartment complex since 1988. • Shoreview approved construction of Lakeview Terrace, the fust market -rate apartments in nearly 40 years. It's all brick on the outside, with heated parking. Inside, apartments have 9- and 10 -feet -tall ceilings, crown moldings, granite countertops and other high-end finishes. "At six stories, it's our tallest building and the densest development we've ever done," said Tom Simonson, Shoreview's community development director. Working to provide apartments is part of preparing for the future, he said. "Our home values have always been really strong," Simonson said. "That is usually a positive, but it does limit the number of people who can afford homes. The idea is we may be able to capture some younger people interested in making Shoreview their home." `Retail chases rooftops' St. Louis Park, which borders Minneapolis' Uptown area, was on the front edge of the trend. "Over the last five years, we've had over 1,000 apartment units constructed. We've got 330 under construction now," said the city's economic development coordinator, Greg Hunt. "St. Louis Park is a very progressive community. There is a lot of interest from young professionals and the empty nesters." The apartment boom is fueling a commercial and retail revival, including renovation of the Shoppes at Knollwood, he said. "Retail chases rooftops," Hunt said. "With more residential coming in, you are going to attract retailers." Shannon.Prather@startribune.com 612-6734804 ShannonWrather Plans for multifamily housing advance in Shakopee By Natalie Daher Star Tribune MARCH 3, 2616 - 7:15PM Two plans for high-density housing in Shakopee are advancing as Scott County looks to house more people in less space. Preliminary requests for a 3oo-unit multifamily housing complex by Southbridge Crossings East got unanimous approval by City Council last month, and its developer, Sand Companies, now must submit another round of applications. On Wednesday, the developer MWF Properties secured a fee waiver to apply for a 57 -unit workforce housing property next to Target on Marschall Road. "Scott County is the fastest-growing county in the state and has been for some time," said Bill Jaffa, executive director of the county's Community Development Agency. "As a result, we're rapidly using up our pad -ready sites," or potential real estate property, "especially in Shakopee." The CDA commissioned a study in 2011 that confirmed Shakopee's growing renter population, and the Metropolitan Council has recommended more affordable housing. Shakopee, already home to Shutterfly and Emerson, is making room for a second Amazon.com center this year that will create another 1,00o full-time jobs. "The variety of jobs that are being created are everything from a lower -wage entry job to higher -end tech jobs," Jaffa said. "Where are people going to come from to fill these jobs?" Shakopee's City Council is discussing potential sites for multifamily housing, as potential single-family lots dwindle and more residents move in. The city's most recent market -rate housing complex is Addison Apartments, which was completed last year. The most recent affordable housing complex was the All Saints Senior Living facility in 2012. Residents are also simply less interested in the demands of homeownership, or less equipped to make down payments on mortgages, according to senior planner Kyle Sobota. People want a "lower - maintenance lifestyle," Sobota said. "Not as many people are looking for single-family houses, even if they can afford one." A common misconception, according to city planners and developers, is that all high-density housing is subsidized by taxpayers — causing friction among council members and criticism by homeowners. Eligible residents for the MWF Properties complex must earn between 3o and 6o percent of the area's median income. Council Member Jay Whiting said the city has "a lot of people that would need and use" affordable housing, while Mayor Bill Mars criticized the Metropolitan Council's fees for prospective developers. Council Member Matt Lehman said he's a mortgage holder and "not sure I want to be paying for somebody else's home." Neighboring communities have successfully launched workforce housing developments, including the 66 -unit Village Commons that opened in Savage in 2013. For Peter Harmon, a chiropractor, the lower -rent opportunity arose at the right time. His co -owned practice had folded, so his family of five applied. He and his wife, Katy, a stay-at-home mom, moved in and saved up, and Harmon opened his own practice in St. Paul last March. "That's really helped us get on our feet and get moving," he said. "Living there just really helped us to utilize the money that we did have," and bought him time to build a business. The closer quarters, Harmon said, connected his family with neighbors of different socioeconomic and cultural backgrounds."I get to learn a lot of customs and a how a lot of different people live ... It breaks down barriers," he said. Jaffa said: "The [housing] issue itself is almost like a perfect circle. There's no beginning, and there's no end." From the Minneapolis / St. Paul Business Journal: http://www.bizjournals.com/twincities/blog/real_estate/2015/08/roers-cpm- opus-ii-business-park-a partments.htmI 274 -apartment complex planned in Minnetonka business park Aug 24, 2015, 5:22pm CDT Updated: Aug 25, 2015,1:39pm CDT Roers Investments and CPM Cos. want to replace two vacant warehouses with a $62 million, 274 -unit apartment complex in the middle of Minnetonka's Opus II Business Park. The joint venture proposed market -rate apartments above a two-level underground parking garage. Construction would likely begin in the spring of 2016 and take 14 to 18 months, according to Dave Higgins, vice president of development at Long Lake -based Roers. CITY OF MINNETONKA Roers Investment and CPM Cos. have proposed a 274 -unit apartment development in the middle of the Opus II Business Park in Minnetonka. The partners will discuss the project and solicit informal feedback at the Aug. 27 Minnetonka Planning Commission meeting. They have the 7.92 -acre site under contract to purchase and need guidance from the city on re -zoning of the industrial property to residential before they close on the land. The 600 -acre -plus Opus II Business Park was originally planned as a mixed-use project but now is mostly offices and manufacturing space. The property is near the UnitedHealth Group headquarters at Highway 169 and Highway 62. The site appealed to the developers because it is near heavy concentration of employment, Higgins said. The apartments will benefit from a planned Southwest Corridor light rail transit station nearby and natural features including mature trees and walking trails. The project also meets the city of Minnetonka's goals for adding a mixture of uses to the business park, he said. One of the two warehouses, at 10101 Bren Road E., totals 73,000 square feet and was built in 1974. The other, at 10105 Bren Road E., is 43,000 square feet and was built in 1999, according to a marketing flier from CBRE Group. Both buildings are owned by Minnetonka -based Scicom Data Services, according to Hennepin County, which values the real estate at $4.72 million for property tax purposes. The plans suggest a hotel could be built to the west of the apartment project, although Roers hasn't submitted or formalized any development plan for a hotel yet. Minneapolis-based Urbanworks Architecture is the designer. Roers has $100 million in its development pipeline this year in Minnesota, Iowa, North Dakota and South Dakota. It has been a big investor in housing in North Dakota's Bakken oil region with projects in Stanley and Tioga. The company is led by owners Kent Roers and Brian Roers and partner Jeff Koch. Minneapolis-based CPM has become a big developer of housing in Minneapolis over the past five years with projects in Uptown and near the University of Minnesota's Twin Cities campus. CoCiVIF-d tic 5meiana Ra k 2 AN I�A r e yr wen DaYre Dr kP Bren 0 watnuf Ridge Parg� VO Cir Dr ;bSen Ad E lisp C-1 CL 114 Uredesej bqarit Lake Reaionaf Park %.-and GO= gle My Maps Edina Public Map data @2016 Google Terms 1,000 ft West '',&Ir Sam Black Senior reporter Minneapolis / St. Paul Business Journal 12/3/2015 Developer plans 375 luxury apartments near Edina's Southdale Center -- Minneapolis /St. Paul Business Journal From the Minneapolis / St. Paul Business .journal :http://www.bizjournals.com/twincities/blog/real estate/2015/08/dic- residential-edina-luxury-apartments-66th-york.html Developer plans 375 luxury apartments near Edina's Southdale Center Aug _25, 2015, 1:09pm CDT r , • a Sam Black Senior reporter- Minneapolis / St. Paul Business Journal Email I Twitter I Google+ The Florida firm that's developing housing at the West End in St. Louis Park wants to build a 375 -apartment complex near Edina's Southdale Center. Hallendale Beach, Fla. -based DLC Residential proposed the construction of two apartment buildings in two phases on a 5.7 -acre site at 66th Street West and York Avenue South, according to city documents. The Edina Planning Commission will review the concept plan Aug. 26 and send it to the City Council's Sept. 1 meeting. See Also • Six -story housing project could replace vintage Best Buy in Edina • Excelsior Group has deal to buy West End site for office towers The development would displace two office buildings immediately north of the shopping mall: the 30,800 -square -foot medical office building at 3250 66th St. W and the 62,000 -square -foot Titus Building at 6550 York Ave. S. Minneapolis-based Thrivent Financial sold both properties for about $7.25 million in December to entities controlled by Wayzata -based Wayzata Investment Partners. The 230 -apartment first phase would displace the 3250 building on the western portion of the site. The 145 -unit second phase would replace the Titus Building. Both buildings would have two levels of underground parking. "The vision for 66th & York is to begin the transformation of this site by bringing 24/7 life and vitality to what is currently a traditional, auto -oriented, single -use, office environment," DLC http://www.bizjournals.cornitwincities/blogtreal estate/2015/08/dic-residential-edina-luxury-apartments-66th-york.htmI?s=print 1/3 12/3/2015 Developer plans 375 luxury apartments near Edina's Soulhdale Center - Minneapolis/ St. Paul Business Journal wrote in its project summary for the planning commission. DLC asked Edina officials to amend its comprehensive plan to allow the apartments, which would rise seven stories and cover an average of 66 units per acre. Most of the apartments will be one or two bedrooms, but there also will be some studio and three-bedroom units. Minneapolis-based Elness Swenson Graham Architects designed the project. DLC has developed more than 4,000 housing units across the country. In St. Louis Park, it is developing about 520 apartments in three adjacent apartment buildings near The West End. Its first building there, the 158 -unit Millennium at West End, is expected to open in September. In Minneapolis, DLC pitched a 500 -unit apartment project near the Mississippi River on the Superior Plating site but scrapped the plan after failing to get sufficient neighborhood and city support. Edina officials are also considering a 210 -unit apartment complex proposed to replace a shuttered Best Buy store near the same intersection. The Edina Planning Commission reviewed that project Aug. 12, but no formal development plan has been submitted. Kurt Krumenauer from Edina -based Midwest Apartment Brokers Inc. is assisting an undisclosed developer with that project, which was designed by St. Paul -based Collage Architects. http://www.bizjournals.com/twincities/blog/real_estate/2015/08/dic-residential-edina-luxury-apartments-66th-york.html?s=print 2/3 -T tit EVER, r.4 W Q�- 4 M !1E"", A 1will.". Is - A-1 a