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Home My WebLink About3.Multi-family Housing Pres. Memo.12.14.21City of Lakeville Community & Economic Development Memorandum To: Economic Development Commission Justin Miller, City Administrator From: David L Olson, Community & Economic Development Director Copy: Kati Bachmayer, Economic Development Coordinator Date: December 14, 2021 Subject: Presentation on Multi-Family Housing Development in Lakeville The EDC has discussed the issue of multi-family housing development at the last several meetings including the recent joint work with the City Council and Planning. EDC members have posed several questions that staff has attempted to research. Attached is a copy of the draft PowerPoint presentation that contains information from several public sources. We plan to present and discuss this information at next Tuesday’s meeting and attempt to answer any additional questions. At the end of the presentation, we will discuss next steps. Lakeville, Minnesota—Positioned to Thrive Multi -Family Housing Data Economic Development Commission December 14, 2021 Lakeville, Minnesota—Positioned to Thrive Housing Stock by Structure Type Maxfield Study, March 2020 Lakeville, Minnesota—Positioned to Thrive Larger (24+ Units) Market-Rate Rental Projects Maxfield Study, March 2020 VACANT Lakeville, Minnesota—Positioned to Thrive Shallow-Subsidy General Occupancy Rental Properties Maxfield Study, March 2020 Lakeville, Minnesota—Positioned to Thrive Household Growth Trends and Projections Maxfield Study, March 2020 Lakeville, Minnesota—Positioned to Thrive Summary of Additional General Occupancy Rental Demand by Community Maxfield Study, March 2020Note: Demand figures already account for proposed, approved, and under construction projects as of August 2019. Lakeville, Minnesota—Positioned to Thrive 2020 Census Data Lakeville, Minnesota—Positioned to Thrive Homeownership Rate in Lakeville Met Council Lakeville, Minnesota—Positioned to Thrive Homeownership Rate in Lakeville Dakota County 2021 Assessed Valuation % of homes in Lakeville <$200,000 9.7% $200,001 -$300,000 24.8% $300,001 -$400,000 29.1% $400,001 -$500,000 23.0% $500,001 -$600,000 9.0% >$600,001 4.4% Lakeville, Minnesota—Positioned to Thrive Median Housing Value in Lakeville Met Council Note: Median Housing Value for taxes payable in 2022 is $361,000 Lakeville, Minnesota—Positioned to Thrive 2016 Multiple Family Housing Study Multiple Family housing: Life -cycle Market support Employment Attainability EDC recommended commercial properties for possible multiple family development SBF 24th Lakeville, Minnesota—Positioned to Thrive Multiple Family Developments Lakeside Flats: 120du. Lakeville Pointe: 49du. Edison at Avonlea: 146du. Springs at Lakeville: 260du. Edison at Spirit: 160du. Northlake Lofts: 208du. Arris Apartments: 197du. SBF 24th Addition: 204du. TOTAL: 1,140du. 4.7% of Housing Supply Lakeville, Minnesota—Positioned to Thrive Lakeville, Minnesota—Positioned to Thrive 2040 Comprehensive Plan High Density Residential Townhouse Multiple Family 9 to 18 du/ac. Corridor Mixed Use Near planned transit Commercial Multiple Family 26 to 45 du/ac. 294ac. undeveloped for commercial or mixed use. Lakeville, Minnesota—Positioned to Thrive Median Gross Rent in Lakeville Met Council Lakeville, Minnesota—Positioned to Thrive Regional Attainable Housing Allocation Goal Lakeville, Minnesota—Positioned to Thrive Housing Type in Lakeville Met Council 944 352 16,750 2,720 2,406 Lakeville, Minnesota—Positioned to Thrive Lakeville Residential Units Permitted 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 APARTMENTS 101 0 0 0 98 315 75 325 408 390 SINGLE FAMILY HOMES 279 370 316 361 389 454 446 521 639 475 DETACHED TOWNHOMES 1 4 3 5 14 33 32 35 103 113 TOWNHOMES 12 24 29 54 62 44 49 64 73 62 0 100 200 300 400 500 Lakeville -Residential Units Permitted YTD November 2021 Lakeville, Minnesota—Positioned to Thrive Commuter Inflow/Outflow (2019) Inflow/Outflow Analysis in 2019 by Private Primary Jobs Census OnTheMap Work in Lakeville, Home Destination (2019) Live in Lakeville, Work Destination (2019) Lakeville, Minnesota—Positioned to Thrive Employment Growth Trends and Projections Maxfield Study, March 2020 Lakeville, Minnesota—Positioned to Thrive 14,586 15,310 15,374 15,973 16,624 17,170 17,207 17,240 17,848 15,927 19,105 14,000 15,000 16,000 17,000 18,000 19,000 20,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: Minnesota Department of Employment and Economic Development, Quarterly Census of Employment and Wages. Data from Q2 of each year. Lakeville Business Employment Lakeville, Minnesota—Positioned to Thrive Largest Lakeville Taxpayers City of Lakeville Lakeville, Minnesota—Positioned to Thrive Lakeville Woods / Target Tax Comparison TARGET 15.23 acres PUD, Commercial 2022 Estimated Market Value: $12,230,500 2022 proposed tax total: $384,468 City portion: $50,649.76 City tax collected per acre: $3,325.66 LAKEVILLE WOODS 3.15 acres, 76 Units RH-1, Multi-Family District 2022 Estimated Market Value: $14,594,600 2022 proposed tax total: $206,696 City portion: $61,397.84 City tax collected per acre: $19,491.38 Lakeville, Minnesota—Positioned to Thrive Lakeside Flats / Bowlero Tax Comparison BOWLERO 4.57 acres C-3, General Commercial District 2022 Estimated Market Value: $4,908,000 2022 proposed tax total: $153,092 City portion: $20,232.04 City tax collected per acre: $4,427.14 LAKESIDE FLATS 4.18 acres, 120 Units PUD, Multi-Family District 2022 Estimated Market Value: $20,329,900 2022 proposed tax total: $287,040 City portion: $85,525.44 City tax collected per acre: $20,460.63 Lakeville, Minnesota—Positioned to Thrive Springs at Lakeville / Lifetime Fitness Tax Comparison LIFETIME FITNESS 19.51 acres PUD, Commercial District 2022 Estimated Market Value: $13,429,900 2022 proposed tax total: $422,334 City portion: $55,632.06 City tax collected per acre: $2,851.46 SPRINGS AT LAKEVILLE 15.45 acres, 260 Units PUD, Multi-Family District 2022 Estimated Market Value: $19,788,700* 2022 proposed tax total: $280,256 City portion: $83,248.68 City tax collected per acre: $5,388.26 *partial value Lakeville, Minnesota—Positioned to Thrive Edison at Avonlea / Crossroads Tax Comparison CROSSROADS 17.23 acres PUD, Commercial 2022 Estimated Market Value: $17,339,800 2022 proposed tax total: $545,766 City portion: $71,873.64 City tax collected per acre: $4,171.42 EDISON AT AVONLEA 5.6 acres, 146 Units PUD, Multi-Family District 2022 Estimated Market Value: $24,449,100 2022 proposed tax total: $346,258 City portion: $102,854.40 City tax collected per acre: $18,366.86 Lakeville, Minnesota—Positioned to Thrive Next Steps?