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Housing&Redevelopment Authority Page 2 <br /> September 4,2012 <br /> • Promotion of first-time home-buyer programs • <br /> • Renovation of housing stock <br /> Mayor Dietz noted that Otsego,Zimmerman and Rogers are also in the same school tax <br /> district. <br /> Councilmember Motin asked if distressed properties were included in the total of housing <br /> sales. Mr.Mullins stated yes. Councilmember Motin stated that the purpose of the study <br /> was to figure out if there is the right mix of housing types in Elk River.He stated the study <br /> talks more about demand does not tell us what the proper mix should be. Councilmember <br /> Motin stated that if they built more affordable housing and subsidized housing the people <br /> would come,but he questioned if this is what we want. He stated he did not feel the city <br /> should provide additional affordable housing just for the sake of getting more residents. He <br /> stated the projected growth is 35,000-40,000 people, so we are not growing just for the sake <br /> of growth and they want to do it in the right way. <br /> Mr. Mullins stated that he felt the city has a diverse housing stock and is well-situated,as far <br /> as the housing products types that are offered. He did not find a lot of demand in the short <br /> term, since the existing stock will meet that need. He stated he would not recommend more <br /> than one affordable housing project. He explained that there is clearly a need for more <br /> upscale rental housing with amenities, such as the Granite Shores project. Elk River's <br /> vacancy rate is 2.5 percent and he feels that should be more towards 5 percent. He stated <br /> that multifamily development is where the short term needs are. <br /> Commissioner Toth asked for clarification on Mr.Mullins'statement that finding housing is <br /> not a problem for manufacturing employees. Mr. Mullins stated that this is an issue in some • <br /> communities where employees cannot find housing that they can afford. He stated that a <br /> goal would be to have ample housing for new employees to move to Elk River. The <br /> comments he received indicated that this is true. <br /> Chair Wilson stated that he concurred that multifamily and single family rental housing is <br /> becoming more popular. He asked what effects the shift from home owner to renter will <br /> have on the community. Mr.Mullins stated that the prediction is rental housing will <br /> continue to grow through 2014. He stated that 80 percent homeownership in Elk River is <br /> very high. The study indicates that rate will remain strong in Elk River. He stated that <br /> affordability for home ownership is at all-time high. Rents are quite substantial due to high <br /> costs of multifamily construction. He stated that one of the challenges for Elk River is the <br /> number of single family or townhomes are being rented today. With the low home prices, <br /> investors can come in a buy up properties at a low cost and provides a good cash flow for <br /> them. <br /> Chair Wilson agreed that there is a market for renting,but people would tend to stay in Elk <br /> River longer if they owned their home. <br /> 3. Review Downtown Task Force Plan <br /> HRA Chair Stewart Wilson presented the first portion of the Downtown Task Force Plan, <br /> which covered"why are we doing this?"and"how did we get here?" <br /> Planning Manager Jeremy Barnhart noted that an open house will be held on September 13th <br /> from 4-8 pm. He explained that comments will be taken thru September 24th. He • <br /> anticipated that the final/revised plan will be presented to the Council in December. <br />