HomeMy WebLinkAbout2024-08-07 Work Session Meeting Packet
Meeting location:
Edina City Hall
Community Room
4801 W. 50th St.
Edina, MN
City Council Work Session Agenda
Wednesday, August 7, 2024
Accessibility Support:
The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification,
an interpreter, large-print documents or something else, please call 952-927-8861 at least 72 hours in advance of the meeting.
1. Call to Order
2. Roll Call
3. Meeting Topics
3.1. Joint Meeting: Edina Housing Foundation Discussing Development Concepts for Fire
Station 2
3.2. Update on the Lincoln and Londonderry Small Area Planning Process
4. Adjournment
Page 1 of 65
d
ITEM REPORT
Date: August 7, 2024 Item Activity: Discussion
Meeting: City Council
Agenda Number: 3.1
Prepared By: Stephanie Hawkinson, Affordable Housing
Development Manager
Item Type: Other Department: Community Development
Item Title: Joint Meeting: Edina Housing Foundation Discussing Development Concepts for
Fire Station 2
Action Requested:
Provide directional feedback to the Edina Housing Foundation
Information/Background:
The Edina Housing Foundation (the "Foundation") Board of Directors engaged LHB Architecture &
Engineering to create concept plans for the development of City-owned land adjacent to the new Fire
Station 2 site. Although the Foundation does not have development rights, during a previous Work
Session the Council granted permission to explore non-binding, preliminary ideas.
In the future, the Foundation seeks to obtain either site control or tentative development rights to
this property, with the first step being the sharing of development concepts to address the need for
additional affordable housing in the City.
LHB will be in attendance to share the concept plans that were created in partnership with the
Foundation.
Resources/Financial Impacts:
At this juncture there is no financial impact. If, in the future the Edina Housing Foundation is granted
tentative development rights, or if the land is conveyed to the Foundation, the Foundation would
prepare a Request for Qualification to select a developer. There are multiple steps prior to the
developer seeking financial assistance. The cost of the land, if acquired by the Foundation, has not
been determined. The Edina Housing Foundation would like control of the site and oversee the
developer selection process. The selected developer would need to go through the regulatory site
plan approval process and financial approval process, if needed. The Edina Housing Foundation is
seeking feedback on development concepts and direction on whether they should formally request
site control. Final control of the site is yet to be determined.
Relationship to City Policies:
The Edina Housing Foundation would like control the site to further affordable housing goals as
stated in the Comprehensive Plan and the Housing Strategy Task Force Implementation Plan. The
concepts discussed will include higher density housing which aligns with the Climate Action Plan and
the Transportation Plan to increase density along transit corridors.
Budget Pillar:
Reliable Service: Address the need for additional affordable housing in Edina at different price
points and provide additional options for people who work in Edina to live here in addition
to providing life-cycle housing for people who grew up in the City to remain here or move
Page 2 of 65
back.
Livable City: Create affordable housing located on a transit corridor with access to food,
employment, health services, entertainment, and recreation.
Better Together: Address the growing need for housing within the City and regionally.
According to American Community Survey data, in Edina 21% of homeowners and 49% of
renters experience housing cost burden. Furthermore, approximately 42% of existing Edina
Households make less than the 80% AMI income for a family of 4.
Values Impact:
Equity
The Edina Housing Foundation is proposing concept ideas in increase
affordable housing opportunities in Edina. The concepts include both
affordable ownership and rental. Currently, according to census data, in
Edina 74.8% of white households own their homes and 25.2%
rent. Conversely, in Edina 19.8% of Black/African American households
own their homes and 80.2% rent. With over 40% of Edina households
having income at or below 80% of the Area Median Income, both
affordable ownership and rental housing is needed.
Stewardship
Lower income households face a higher degree of energy cost
burden. New affordable housing at the Fire Station 2 site would comply
with the Sustainable Building Policy to help reduce carbon gas emissions
and reduce energy costs for the residents.
Health
The Fire Station 2 site is located in a walkable neighborhood, with a
walkscore of 64, with access to food, recreation, employment, health
care, and entertainment. Furthermore, the creation of affordable housing
provides opportunities for residents who are currently cost burdened to
ease some of their financial stress.
Supporting Documentation:
1. Edina Housing Foundation Presentation
2. Edina Housing Foundation Presentation Updated
Page 3 of 65
CITY COUNCIL
JOINT MEETING
WITH THE EDINA
HOUSING
FOUNDATION
AUGUST 7, 2024
Page 4 of 65
TODAY’S REQUEST
Explore continued
partnership between the
Edina Housing
Foundation and City to
increase housing supply
2
Page 5 of 65
INTRODUCTIONS
Housing and Redevelopment Authority
Jim Hovland – Chair
Kate Agnew
James Pierce
Carolyn Jackson
Julie Risser
Edina Housing Foundation
Ann Swenson – President
Jerry Gilligan
Bernadette Hornig
Jeff Huggett
Mary Kay McNee
3
Page 6 of 65
ALIGNED GOALS
Edina Housing Foundation:•Expand ownership
housing opportunities.
•Land and sites
available for
residential
development.
•Adequate lifecycle
rental opportunities
City Policies:
4
Comprehensive Plan
•Affordable Housing – Increase to number of affordable units towards the approved goal of 1804 by 2030.
•Create affordable ownership opportunities.
Climate Action Plan
•Increase average population per developed acre by 4% by 2030.
•Preserve and enhance affordable housing, especially near bus service to protect vulnerable populations
•Promote more compact development that reduces sprawl and makes walking, biking and transit more viable.
Race and Equity Implementation Report
•“In Edina, affordable housing has a higher percentage of people of color than market rate housing.” Create ownership opportunities.
•Be an open and inclusive community.
Quality of Life Survey
•“Overall, a majority of respondents felt that there was somewhat too little or far too little housing for lower-income singles and families (65% and 68%, respectively);..”
Page 7 of 65
NEW FIRE STATION 2 SITE
5
Page 8 of 65
PRESENTATION
BY LHB
Page 9 of 65
EDINA HOUSING
FOUNDATION’S FINANCIAL
OUTLOOK
July 1 Cash Balance For future
Work
Money Market Balance
$
1,231,917.81
Checking Account Balance $ 123,846.79
$
1,355,764.60
Expected Expenditures
Housing Position
$
9,088.00
Senior Community Services Donation
$
32,000.00
Legal Bill (Foreclosure)
$
3,064.06
7/12 CH2E Closing
$
46,750.00
7/26 CH2E Closing
$
57,500.00
8/13 CH2E Closing
$
90,000.00
8/15 CH2E Closing $ 36,225.00
8/30 CH2E Closing
$
70,000.00
$
344,627.06
Estimated Balance for 8/31/2024*
$
1,011,137.54
*If no additional CH2E Applications
Expected Year End Balance if CH2E
Loan continue at same rate
YTD CH2E Applications $ 1,113,077.00
Avg/Month $ 139,134.63
4 More Months $ 556,538.50
Estimated Year End Balance $ 454,599.04
7
Page 10 of 65
BACKGROUN
D
INFORMATION
8
Page 11 of 65
EHF BACKGROUND INFORMATION
Formed in 1985 as a 501 (c)3 nonprofit corporation to provide modest cost housing opportunities to persons of low and
moderate incomes.
Funding Source: Second Mortgages from the Edinborough development.
Programs:
•Operates Come Home 2 Edina downpayment assistance
program
•Created First Generation downpayment assistance program
•Instigated Multifamily Development – Amundson Flats and 4040 Flats
•Spearheaded the New Multifamily Affordable Housing Policy
•Partially finances the Affordable Housing Development Manager
•Lends money to miscellaneous affordable housing projects
9
Page 12 of 65
EDINA HOUSING FOUNDATION 3-10 YEAR GOALS
•Expand ownership housing opportunities.
•Land and sites available for residential development.
•Sustainable funding sources for housing affordability
•A role for EHF to advise the HRA on housing investments.
•A robust “Come Home 2 Edina” program.
•Adequate lifecycle rental opportunities.
•A narrative that frames the values of housing affordability in Edina.
10
Page 13 of 65
HOUSING AFFORDABILITY
IF HOUSEHOLD EARNS (4 ppl)
$37,260 $62,100 $74,520 $99,360 $124,200 $149,040
<30% AMI 31-50% AMI 51-60% AMI 61-80% AMI 81-100% AMI 101-120% AMI
THE MAXIMUM RENT YOU CAN AFFORD IS*
$931 $1552 $1,863 $2,484 $3,105 $3,726
THE MAXIMUM HOME YOU CAN AFFORD IS**
$111,109 $194,966 $238,683 $326,116 $404,597 $490,137
TYPICAL HOUSING TYPE FOR THIS INCOME IS
Publicly Subsidized
Apartment
Existing or
Subsidized New
Apartment/ Condo
Existing or
Subsidized New
Apartment/ Condo
New Apartment/
Condo/ Smaller
house
New Apartment/
House
New Apartment/
House
11
*Based on spending 30% of income on housing costs
**Based on Zillow mortgage calculation Page 14 of 65
HOUSING IN EDINA
IF HOUSEHOLD EARNS (4 ppl)
$37,260 $62,100 $74,520 $99,360 $124,200 $149,040
<30% AMI 31-50% AMI 51-60% AMI 61-80% AMI 81-100% AMI 101-120% AMI
THE MAXIMUM RENT YOU CAN AFFORD IS
$931 $1552 $1,863 $2,484 $3,105 $3,726
THE MAXIMUM HOME YOU CAN AFFORD IS**
$111,109 $194,966 $238,683 $326,116 $404,597 $490,137
TYPICAL HOUSING TYPE FOR THIS INCOME IS
Publicly Subsidized
Apartment
Existing or
Subsidized New
Apartment/ Condo
Existing or
Subsidized New
Apartment/ Condo
New Apartment/
Condo/ Smaller
house
New Apartment/
House
New Apartment/
House
12
Median Rent*
$1,700
Median Income
$126,420
$696,600
Median Home Value**
*Includes efficiencies and 1 bedroom units
**Requires a $177,813 HH Income
CH2E Median Income
(2023)
$68,849
Page 15 of 65
EDINA RESIDENTS: % OF HOUSEHOLDS AT VARIOUS
INCOMES*
IF HOUSEHOLD EARNS (4 ppl)
$37,260 $62,100 $74,520 $99,360 $124,200 $149,040
<30% AMI 31-50% AMI 51-60% AMI 61-80% AMI 81-100% AMI 101-120% AMI
THE MAXIMUM RENT YOU CAN AFFORD IS
$931 $1552 $1,863 $2,484 $3,105 $3,726
THE MAXIMUM HOME YOU CAN AFFORD IS**
$111,109 $194,966 $238,683 $326,116 $404,597 $490,137
TYPICAL HOUSING TYPE FOR THIS INCOME IS
Publicly Subsidized
Apartment
Existing or
Subsidized New
Apartment/ Condo
Existing or
Subsidized New
Apartment/ Condo
New Apartment/
Condo/ Smaller
house
New Apartment/
House
New Apartment/
House
13
<$25
14.4%
$25K-$50K
7.2%
$50K-$75K
11.4%
$75K-$100k
9.3%
$100K-$150K
14.9%
>$150K
(42.9%)
*2022 American Community Survey
CH2E Median Income
(2023)
Page 16 of 65
EDINA RESIDENTS: % OF HOUSEHOLDS AT VARIOUS INCOMES*
HOUSEHOLD AGES 25-44 (CHILD REARING)
IF HOUSEHOLD EARNS (4 ppl)
$37,260 $62,100 $74,520 $99,360 $124,200 $149,040
<30% AMI 31-50% AMI 51-60% AMI 61-80% AMI 81-100% AMI 101-120% AMI
THE MAXIMUM RENT YOU CAN AFFORD IS
$931 $1552 $1,863 $2,484 $3,105 $3,726
THE MAXIMUM HOME YOU CAN AFFORD IS**
$111,109 $194,966 $238,683 $326,116 $404,597 $490,137
TYPICAL HOUSING TYPE FOR THIS INCOME IS
Publicly Subsidized
Apartment
Existing or
Subsidized New
Apartment/ Condo
Existing or
Subsidized New
Apartment/ Condo
New Apartment/
Condo/ Smaller
house
New Apartment/
House
New Apartment/
House
14
<$25K
6%
$25K-$50K
10%
$50K-$75K
10%
$75K-$100k
9%
$100K-$150K
17%
>$150K (49%)
*2022 American Community Survey
CH2E Median Income
(2023)
Page 17 of 65
“RESEARCH HAS REPEATEDLY SHOWN
THAT THE MOST EFFECTIVE CHECK ON
SKYROCKETING HOME PRICES IS SIMPLY
TO BUILD MORE HOMES. ONE SURVEY
OF THE LITERATURE FOUND THAT NEW
CONSTRUCTION OF MARKET-RATE UNITS
IN SEVERAL U.S. CITIES MODERATED
THE PRICES OF ALL TYPES OF NEARBY
HOUSING, BOTH HIGH- AND LOW-
PRICED.”
-SCOTT LINCICOME, THE DISPATCH,
MARCH 27,2024
Page 18 of 65
TODAY’S CONTEXT
16
1986 1990 1994 1998 2002 2006 2010 2014 2018 2022
100.0
150.0
200.0
250.0
300.0
146
318
Median Household Income (MN)CPI Rent of Primary Residence (MSP)
Change in Rent Expense vs. Household
Income
Minneapolis/ St. Paul MSA - Minnesota
Rents are dropping in communities where more are getting built – regardless of the class of the new building.
- Jay Parsons, Housing Economist
Page 19 of 65
TODAY’S CONTEXT: SINGLE FAMILY HOUSING
FORECAST
17
Page 20 of 65
TODAY’S CONTEXT: CHANGING DEMOGRAPHICS
18
1990 2000 2020
0%
20%
40%
60%
80%
100%
120%
Change in Demographics: Race
White Black or African American American Indian/Alaskan Asian Other Two or more races Latino
Page 21 of 65
OWNERSHIP & RENTAL
DEMOGRAPHICS
According to census data, 74.8%
of White Edina residents own
their homes and 25.2% rent.
Conversely, 19.8% of
Black/African American Edina
residents own their homes and
80.2% rent.
Action: Increase the supply of
affordable home ownership
opportunities AND continue
providing affordable rental
options that meet the needs of a
diverse population.
19
Page 22 of 65
INCOME
DEMOGRAPHICS
According to census data, 71%
of seniors and 51% of
households of child-bearing ages
have a household income of less
than $150,000, which is less than
what is needed to buy a median
priced home.
Action: Increase the supply of
affordable home ownership
opportunities AND continue
providing affordable rental
options that meet the needs of a
diverse population.
20
15%
11%
17%
14%
7%
6%
29%
Seniors
<25,000 25,000-49,999 50,000-74,999
75,000-99,000 100,000-124,999 125,000-149,000
>$150,000
6%
10%
10%
9%
7%
10%
49%
Ages 25-44
<25,000 25,000-49,999 50,000-74,999
75,000-99,000 100,000-124,999 125,000-149,000
>$150,000
Page 23 of 65
“One thing most people agree on is that America has too few homes. According to Freddie Mac, the mortgage finance giant, the nation is short about four million units. The deficit is particularly acute in both low-cost rentals and the entry-level starter homes favored by first-time buyers.”
-Conor Dougherty, “Too few Homes,” New York Times, March 27, 2024
The Edina Housing Foundation seeks to continue partnering with the City to develop strategically located City owned land.
21
Page 24 of 65
CITY COUNCIL
JOINT MEETING WITH
THE EDINA HOUSING
FOUNDATION
AUGUST 7, 2024
Page 25 of 65
TODAY’S REQUEST
Explore continued
partnership between the
Edina Housing Foundation
and City to increase housing
supply
2
Page 26 of 65
INTRODUCTIONS
Housing and Redevelopment Authority
Jim Hovland – Chair
Kate Agnew
James Pierce
Carolyn Jackson
Julie Risser
Edina Housing Foundation
Ann Swenson – President
Jerry Gilligan
Bernadette Hornig
Jeff Huggett
Mary Kay McNee
3
Page 27 of 65
ALIGNED GOALS
Edina Housing Foundation:
•Expand ownership
housing opportunities.
•Land and sites
available for
residential
development.
•Adequate lifecycle
rental opportunities
City Policies:
4
Comprehensive Plan
•Affordable Housing – Increase to number of affordable units towards the
approved goal of 1804 by 2030.
•Create affordable ownership opportunities.
Climate Action Plan
•Increase average population per developed acre by 4% by 2030.
•Preserve and enhance affordable housing, especially near bus service to
protect vulnerable populations
•Promote more compact development that reduces sprawl and makes
walking, biking and transit more viable.
Race and Equity Implementation Report
•“In Edina, affordable housing has a higher percentage of people of color
than market rate housing.” Create ownership opportunities.
•Be an open and inclusive community.
Quality of Life Survey
•“Overall, a majority of respondents felt that there was somewhat too little or
far too little housing for lower-income singles and families (65% and 68%,
respectively);..”
Page 28 of 65
NEW FIRE STATION 2 SITE
5
Page 29 of 65
PRESENTATION BY
LHB
Page 30 of 65
EDINA HOUSING FOUNDATION
08.07.2024 CITY COUNCIL WORK SESSION
Page 31 of 65
08/06/2024 Concept Image for Discussion Only 2
Page 32 of 65
08/07/2024 Concept Image for Discussion Only 3
Greater Southdale District Plan
Page 33 of 65
08/07/2024 Concept Image for Discussion Only 4
Future Land Use Guidance
Currently Zoned PID – Planned Industrial
Future Guidance – Office/Residential (20-75 units per acre)
Page 34 of 65
08/06/2024 Concept Image for Discussion Only 5
Page 35 of 65
08/06/2024 Concept Image for Discussion Only 6
Page 36 of 65
08/06/2024 Concept Image for Discussion Only 7
Page 37 of 65
07/23/2024 Concept Image for Discussion Only 8
Page 38 of 65
07/23/2024 Concept Image for Discussion Only 9
Page 39 of 65
07/23/2024 Concept Image for Discussion Only 10
Page 40 of 65
07/23/2024 Concept Image for Discussion Only 11
Page 41 of 65
07/23/2024 Concept Image for Discussion Only 12
Page 42 of 65
08/06/2024 Concept Image for Discussion Only 13
Page 43 of 65
08/06/2024 Concept Image for Discussion Only 14
Page 44 of 65
08/06/2024 Concept Image for Discussion Only 15
Page 45 of 65
08/06/2024 Concept Image for Discussion Only 16
Page 46 of 65
08/06/2024 Concept Image for Discussion Only 17
Page 47 of 65
08/06/2024 Concept Image for Discussion Only 18
Page 48 of 65
08/06/2024 Concept Image for Discussion Only 19
Page 49 of 65
08/06/2024 Concept Image for Discussion Only 20
Page 50 of 65
08/06/2024 Concept Image for Discussion Only 21
Page 51 of 65
08/06/2024 Concept Image for Discussion Only 22
Page 52 of 65
08/06/2024 Concept Image for Discussion Only 23
Page 53 of 65
08/07/2024 Concept Image for Discussion Only 24
Scheme 1 Scheme 2 Scheme 3
Page 54 of 65
EDINA HOUSING FOUNDATION’S
FINANCIAL OUTLOOK
July 1 Cash Balance For future Work
Money Market Balance $ 1,231,917.81
Checking Account Balance $ 123,846.79
$ 1,355,764.60
Expected Expenditures
Housing Position $ 9,088.00
Senior Community Services Donation $ 32,000.00
Legal Bill (Foreclosure) $ 3,064.06
7/12 CH2E Closing $ 46,750.00
7/26 CH2E Closing $ 57,500.00
8/13 CH2E Closing $ 90,000.00
8/15 CH2E Closing $ 36,225.00
8/30 CH2E Closing $ 70,000.00
$ 344,627.06
Estimated Balance for 8/31/2024*$ 1,011,137.54
*If no additional CH2E Applications
Expected Year End Balance if CH2E Loan
continue at same rate
YTD CH2E Applications $ 1,113,077.00
Avg/Month $ 139,134.63
4 More Months $ 556,538.50
Estimated Year End Balance $ 454,599.04
7
Page 55 of 65
d
ITEM REPORT
Date: August 7, 2024 Item Activity: Discussion
Meeting: City Council
Agenda Number: 3.2
Prepared By: Addison Lewis, Community Development
Coordinator
Item Type: Other Department: Community Development
Item Title: Update on the Lincoln and Londonderry Small Area Planning Process
Action Requested:
None. Discussion only.
Information/Background:
On April 2, 2024 the City Council approved a contract with Mend Collaborative to serve as a
consultant for the Lincoln and Londonderry Small Area Plan. Since then, the working group has met
four times and hosted a community work shop event on June 11 at Walnut Ridge Park. Two pop-up
events were held July 11 at the Loden and near-by Caribou and a third on July 15 at Walnut Ride
Park.
The consultant from Mend Collaborative together with working group members and staff from the
Community Development Department will update the Council on process and take-aways.
Resources/Financial Impacts:
Budget – There are no budget actions at this time.
Implementation – Mend Collaborative, the working group and staff will continue working on the Small
Area Plan until completed. City Council will then take action.
Relationship to City Policies:
The Lincoln and Londonderry Small Area Plan, if approved, will be a subsection of the
Comprehensive Plan to help guide future land use.
Budget Pillar:
Strong Foundation: The SAP will take into consideration the sewer capacity for
the study area.
Livable City: The SAP process is to gather community input to plan for the area
that incorporates a variety of perspectives.
Better Together: There are many opportunities for public participation
throughout the process. The working group includes volunteer
residents. Updates are added to the Better Together Edina page.
Values Impact:
The Values Viewfinder process has been discussed with the working group at two meetings. The
Page 56 of 65
final plan will go more in depth on how the plan aligns with the five values.
Supporting Documentation:
1. Presentation
Page 57 of 65
2024 Small Area Plan
LLSAP City Council Workshop
Page 58 of 65
Lincoln and Londonderry Small Area Plan2
July - September 2024
Understand
May + June 2024
Goal: Understand key issues,
challenges, and previous plans
affecting the study area.
Envision
Goal: Provide vetted strategies
and approaches related to
project goals.
Act
Goal: Document a clear path
to implementation.
Adopt
Goal: Facilitate adoption by
relevant regulatory bodies.
October - December 2024
January - March 2025
Project Study Area & Schedule
Page 59 of 65
Lincoln and Londonderry Small Area Plan3
Complete
• 4 Working Group Meetings
• Public Open House
• Online Engagement
• 3 Pop-up Meetings
Underway
• Business and Land Owner Survey
Community Engagement
Page 60 of 65
Lincoln and Londonderry Small Area Plan4
1. Economic Development and Local Businesses
2. Character of Housing and Development
3. Community and Gathering Spaces
4. Green Spaces and Environmental Stewardship
5. Getting Around Safely
6. Community Involvement and Visionary Planning
Results of Engagement: 6 Community Priorities
Page 61 of 65
Lincoln and Londonderry Small Area Plan5
In 2040, the Lincoln and Londonderry area will be a welcoming
gateway to western Edina. There will be shops, restaurants,
homes, and jobs, all in a natural setting along Nine Mile Creek.
It will be thoughtfully and sustainably designed, blending
eco-friendly amenities with natural beauty. The area will be
easy to get to and move around in, with bike lanes and trails,
walking paths, bus stops, and carefully integrated parking.
The Lincoln and Londonderry area will be a great place to
live, work, and gather, fostering community and encouraging
people to use the trails and gathering spaces.
Vision Statement
Page 62 of 65
Lincoln and Londonderry Small Area Plan6
Community Priorities Statements
Encourage a diverse array of local businesses
that support the community’s needs.
Promote a balanced approach to housing that
respects community needs and preferences.
Preserve and enhance the natural environment,
prioritizing sustainability and outdoor activities.
Create vibrant spaces that encourage and
foster community and inclusivity.
Ensure safe, accessible, and efficient
movement for all.
Foster a forward-thinking approach to
development that involves the community.
Page 63 of 65
Lincoln and Londonderry Small Area Plan7
Current Situation:
• Capacity is nearly fully utilized
• Even uses currently allowed by
zoning could be denied permits
Options:
1. Capacity shifts on site
2. Connection to Minnetonka
3. Upgrade in Edina
Sewer Capacity Issue
City of EdinaSanitary Sewer Pipe Constraints
Properties with Sewer Constraints
Properties with Sewer Constraints Removed 2024-2025
Page 64 of 65
Lincoln and Londonderry Small Area Plan8
Development of the
Concept Plan
Community Feedback
on the Concept Plan
Next Steps
September 10, 2024
1 2
Page 65 of 65