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Home My WebLink About02-04 work session CITY OF LAKEVILLE PLANNING COMMISSION WORK SESSION MINUTES February 4, 2021 Vice Chair Jeff Witte called the work session to order at 6:22 p.m. Members Present: Vice Chair Jeff Witte, Karl Drotning, Scott Einck, Jenna Majorowicz, and Christine Zimmer Members Absent: Chair Pat Kaluza, Brooks Lillehei, and Jason Swenson Staff Present: Planning Director Daryl Morey, Community and Economic Development Director David Olson, and Daniel Licht, TPC Others Present: Ryan Sailer, Timberland Partners, Eric Thom, Continental Properties, and Jonathan Adam, Silverstone Others Present via Zoom: Benjamin Lang, Continental Properties, Brady Busselman, Sambatek, and Scott Israelson Timberland Partners and Continental Properties Comprehensive Plan Amendment Requests Mr. Licht provided an overview of the 2040 Comprehensive Plan and how the two proposed projects would impact the City and its housing goals in reference to the TPC memorandum dated 27 January 2021. Mr. Licht discussed the 2016 Multiple Family Housing Study, which was conducted to identify commercial properties for possible multiple family development and included four goals: life cycle, market support, employment, attainability. The two proposed sites were both identified in the study as opportunities for multiple family development but remained guided for commercial land use in the 2040 Comprehensive Plan. Mr. Licht provided a comparison of multiple family housing guided by the Comprehensive Plan to communities of similar character and development pattern such as Blaine, Burnsville, Plymouth, and Woodbury. Eden Prairie and Maple Grove were also included in the comparison because the City Council and Planning Commission had the opportunity to tour multiple family developments in those cities to look at land use changes and evaluate how this type of housing would fit into the character of Lakeville. If both of the projects were approved, it would increase the allocation of high-density residential land use to 1.7% of the total area of the City with approximately 250 acres of undeveloped land remaining for development of new commercial uses. Planning Commission Work Session Minutes – February 4, 2021 Page 2 Mr. Licht stated the Metropolitan Council establishes a housing policy across the metro area that includes projections on the needs for affordable housing that is achievable based on the average median income for the region. The Metropolitan Council identified the need for 1,414 affordable dwelling units for Lakeville in 2021-2030. Current Zoning Ordinance incentives available to encourage affordable housing include exceptions to building exterior finish materials, garage size, and landscaping requirements. If a developer uses the aforementioned incentives, the project is required to commit through a development agreement to provide regional affordable housing rents 10 years. All of the Authentix and a portion of the Sundance development intend to comply with the affordable housing rent limits, which would meet 27% of Lakeville’s affordable housing dwelling unit goal. Mr. Licht reviewed that there have been a number of multiple family projects approved in the City (or that are in the review in process) since 2016, bringing the multiple family dwelling unit total to 1,140 (4.7% of the overall housing supply). The Sundance project is proposing 188 multiple family units and 12 single family units and Authentix is proposing 288 multiple family units. Any amendment to the Comprehensive Plan and Zoning Ordinance would require a public hearing at a Planning Commission meeting which would include the opportunity for public comment. Mr. Licht stated the Economic Development Commission (EDC) reviewed the proposed projects and Comprehensive Plan amendments and expressed support for both. Eric Thom from Continental Properties presented information about the proposed Authentix development project. Continental develops, owns, and manages all of their apartment communities and doesn’t participate in any third-party management contracts. Mr. Thom said employment recovery is slow but moving in the right direction and the nearby Amazon project makes this location very desirable for housing. The lease rate at their Springs at Lakeville project has been strong and is currently 60% complete. The Authentix project is proposing 288 units in 12 residential buildings. Continental is proposing the rezoning of this property in part because retail market conditions across the country have softened during the COVID-19 pandemic. Mr. Thom said the Authentix project provides a pathway for attainable housing through construction savings and finishes. The rent projections will achieve 80% Area Median Income (AMI) rates. Mr. Thom described this location as difficult for commercial development due to a large wetland located in the southern portion of the site; Continental’s design accounts for the wetland area and proposes that a majority of the residential buildings will be constructed on the northern portion of the site. Ryan Sailer from Timberland Partners presented information about the proposed Sundance development project. Timberland Partners typically develops, owns, and manages their projects and doesn’t participate in any third-party management. The site is located adjacent to a well-established single-family neighborhood near I-35. A 12-unit single family rental development has been included in the proposed project to act as a buffer between the existing single family neighborhood and the proposed multiple family development. All of the townhome-style units in this project will have direct- access entry garages. Timberland is proposing rezoning of this site because this land has sat vacant on Planning Commission Work Session Minutes – February 4, 2021 Page 3 the market for over 20 years, no commercial development has occurred through three real estate cycles, recent changes in consumer behaviors and retail demand warrant this type of development on this site, and it is one of the only remaining sites near transit in this part of the City. Mr. Sailer also indicated that this type of development will be attractive to millennials and help them to get established in the City as they work toward home ownership. Timberland is projecting the development cost to be $55 million and estimates it will generate $550,000 in property tax revenue. The majority of the rents will be at or below 80% Area Median Income (AMI). Timberland Partners is not requesting public financing; the Sundance project would be completely privately funded. Planning Commission comments:  Asked for more details regarding the Metropolitan Council’s requirement for affordable housing projects to meet the minimum 10-year affordable rents, which Mr. Licht explained.  Asked about Timberland’s proposed 12 single family rental homes and if this a new concept for the Twin Cities. Mr. Sailer addressed this saying it is new to their concept.  Asked the developers how they screen the renters for their projects in terms of background checks and criminal records, which both developers confirmed they do.  Expressed support for the smaller two-story hybrid townhouse buildings for both proposed projects that will be more compatible as transitional land uses than a single multiple story principal building.  Agreed that the proposed Authentix property will serve existing and new businesses in the City’s industrial park citing Amazon as an example.  Discussed off-street parking needs in terms of surface parking and demand for garage spaces. Mr. Licht pointed out that the off-street parking requirements can be reduced by conditional use permit (CUP) based upon a parking study conducted by the developer to ensure that parking supply meets actual demand. This could be an additional cost savings to help make the projects more affordable. The work session adjourned at 7:11 p.m. Respectfully submitted, Daryl Morey, Planning Director