04-23-2024 PC MIN - Laserfiche WebLink

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Planning Commission Minutes April 23, 2024 --------- Page 3 of 4 Mr. Leeseberg presented the staff report. He stated the applicant is requesting informal, non-binding feedback regarding this proposed residential apartment project. Jared Ackmann with Rueter Walton presented details regarding the proposed housing project. He stated the property is under contract with the current owner and is looking for feedback from the city. He provided a background on Rueter Walton and projects they've built in the Twin Cities. He reviewed the site itself and felt the natural topography and tree coverage naturally screened the building from neighboring properties. Based upon feedback from the neighborhood meeting, they made two minor adjustments; one change was to add a privacy fence along the eastern side of the property adjacent to the garages to help with screening; the other change was moving the dog run to the southwest corner of the property. He stated they will be asking the city for a parking variance to the parking ordinance to allow for 1.88 stalls per unit as they feel their request would provide sufficient parking spaces to the point of being over parked. He stated this request is backed up from data on other family-style housing projects they've built, and along with parking studies, stated these current projects use 1.3 to 1.6 parking stalls with no issues. He stated Elk River has a stronger, outdated parking ordinance. Mr. Ackmann then went into the covered parking requirement and will be proposing 30 covered stalls; the city requires 96. He indicated it comes down to financial feasibility and the cost for one covered parking unit is $25,000. The market doesn't allow the necessary rent to cover the cost of constructing covered parking for all units and it isn't financially feasible. He outlined the amenity package for tenants such as a playground, fitness center, in-unit laundry, community areas, and noted these were high quality housing amenities. He stated they would be applying to the state for tax-exempt bonds that would allow them to sell for tax credits to finance the project. He stated with this financing, that they would be restricted to income that renters could make, and the rent charged, which would be 60% Area Median Income (AMI) as dictated by Sherburne County. Mr. Ackmann outlined the proposed rents and explained the goal of this project was to provide affordable housing for the 'missing middle' workforce housing. He noted the current market of homes for sale and stated this project provides another housing option for young families or couples trying to work or live in the area. Commissioner Mauren asked for more clarification on AMI and asked if this was considered low- income housing. Mr. Ackmann explained Sherburne County is lumped into the metropolitan counties when calculating the midpoint of a metropolitan area's income distribution, which is 60% of the average median income. Therefore, income cannot be more than $52,200 for an individual, $59,640 for 2 adults. This allows Rueter Walton to get a grant to lower the costs of rent to offset the costs of development. Mr. Ackmann states it does restrict their rental pool. They utilize a management company that does a rigorous income verification process to ensure compliance of renters. Mr. Ackmann explained this type of program is called Section 42 housing, where the tax credit encourages developers to build affordable housing to meet the need of the community. He stated CommonBond was a similar project in Elk River, which went through Minnesota Housing; this project would go through the state. The Planning Commission then provided feedback on the concept plans submitted. They discussed the following: ▪ Parking requirements - typically 2-1 requirement with proof of parking, which shows where they could build additional parking spots should they need it ▪ Parking lot design and snow removal/storage ▪ Landscape plan and stormwater plan - need more infomation ▪ Local motorcycle dealership on-street overflow parking - busy roadway