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HomeMy WebLinkAbout2021-08-25 Planning Commission Regular Work Session PacketAgenda Plan n ing Com m ission Work Se ssion City of Edina, Minnesota City Hall, Community Room This m ee tin g will be he ld in person a n d e lectronically using We be x software . The m ee tin g will be stream e d live on the City's You Tu be ch anne l, YouTube.com /Edin aTV or you can liste n to th e m e e ting via te le phone by callin g 1-415-655-0001 a cce ss code 177 246 5380 Wednesday, August 25, 2021 5:30 PM I.Call To Order II.Roll Call III.2022 Planning Commission W ork Plan IV.Adjournment The City of Edina wants all res idents to be c om fortabl e bei ng part of the publi c proc ess . If you need as s is tanc e i n the way of heari ng am pli %c ation, an interpreter, large-print doc um ents or s om ethi ng els e, pleas e c al l 952-927-8861 72 ho urs in advance of the m eeting. Date: Augus t 25, 2021 Agenda Item #: I I I . To:P lanning C o mmis s io n Work S es s io n Item Type: O ther F rom:C ary Teague, C o mmunity Development Directo r Item Activity: Subject:2022 P lanning C ommission Work P lan Disc ussio n C ITY O F E D IN A 4801 West 50th Street Edina, MN 55424 www.edinamn.gov A C TI O N R EQ U ES TED : N o action required. C ontinue consideration of the 2022 P lanning C ommission Work P lan, including recommendations from the H ousing Strategy I mplementation S tudy. I N TR O D U C TI O N : T he E dina Housing Task F orce completed the attached H ousing S trategy Implementation S tudy. T here are specific recommendations within the study that would require the P lanning to take the lead on. (S ee attached items for P lanning C ommission consideration.) S tephanie H awkinson, the C ity's Affordable H ousing Manager, who was the staff liaison to the Task F orce will attend the Work Session. AT TAC HME N T S : Description Draft 2022 PC Work Plan Hous ing Strategy Implementation Report Recommendations from the Hous ing Tas k Force for Planning Commis s ion Cons ideration Template Updated 2021.06.08 Commission: Planning Commission 2022 Annual Work Plan Proposal Initiative #1 Initiative Type ☐☐☐☐ Project ☒☒☒☒ Ongoing / Annual ☐☐☐☐ Event Council Charge ☐☐☐☐ 1 (Study & Report) ☐☐☐☐ 2 (Review & Comment) ☒☒☒☒ 3 (Review & Recommend) ☒☒☒☒ 4 (Review & Decide) Initiative Title: Review Land Use Applications. Deliverable: Final Decisions on variances and recommendations to the City Council on CUP, Site Plans and Rezoning Leads: Staff Target Completion Date: On-going Budget Required: (Completed by staff) No budget required. Staff Support Required (Completed by staff): Yes. 60-80 staff hours per week (between 3 planners and administrative assistant) Liaison Comments: This is the bulk of the Planning Commission responsibilities; including reviewing the packets (staff reports, plans, studies, and applicant narratives twice per month) City Manager Comments: Progress Q1: Progress Q2: Progress Q3: Progress Q4: Initiative #2 Initiative Type ☒☒☒☒ Project ☐☐☐☐ Ongoing / Annual ☐☐☐☐ Event Council Charge ☐☐☐☐ 1 (Study & Report) ☐☐☐☐ 2 (Review & Comment) ☒☒☒☒ 3 (Review & Recommend) ☐☐☐☐ 4 (Review & Decide) Initiative Title: Continue the Planning Study of the Edina Business Park. (The office/industrial area between Highway 100, Cahill Road, 70th Street and Edina's southern border.) This Study would include recommendations from Chapter 10, Economic Competitiveness. Deliverable: Recommendation on a District Plan for the City Council to consider Leads: Staff, Work Group Chairs & Consultant Target Completion Date: End of 2022 Budget Required: (Completed by staff) Yes. This study is already included in the City’s budget. Staff Support Required (Completed by staff): Yes. 10-20 staff hours per week (between planning staff and administrative assistant) Liaison Comments: On-going review from 2021. This will include several evening meetings. City Manager Comments: Template Updated 2021.06.08 Progress Q1: Progress Q2: Progress Q3: Progress Q4: Initiative #3 Initiative Type ☒☒☒☒ Project ☐☐☐☐ Ongoing / Annual ☐☐☐☐ Event Council Charge ☐☐☐☐ 1 (Study & Report) ☐☐☐☐ 2 (Review & Comment) ☒☒☒☒ 3 (Review & Recommend) ☒☒☒☒ 4 (Review & Decide) Initiative Title: Re-consider sketch plan process. Including an examination of the development process, public feedback, and number of public hearings. Deliverable: Recommendation to the City Council on the Sketch Plan process. Leads: Staff & small work group of the planning commission Target Completion Date: End of 2022 Budget Required: (Completed by staff) No budget required. Staff Support Required (Completed by staff): Yes. Staff support required. Liaison Comments: Staff support would include study of other city processes, staff memos and recommendations. City Manager Comments: Progress Q1: Progress Q2: Progress Q3: Progress Q4: Initiative #4 Initiative Type ☐☐☐☐ Project ☒☒☒☒ Ongoing / Annual ☐☐☐☐ Event Council Charge ☐☐☐☐ 1 (Study & Report) ☐☐☐☐ 2 (Review & Comment) ☒☒☒☒ 3 (Review & Recommend) ☐☐☐☐ 4 (Review & Decide) Initiative Title: Zoning Ordinance Amendments. Front Yard Setbacks, Sign Ordinance Deliverable: Recommendation to the City Council Leads: Staff and small working group of the planning commission if needed. Target Completion Date: End of 2022 Budget Required: (Completed by staff) No budget required. Staff Support Required (Completed by staff): Yes. Staff support required. Liaison Comments: Staff support would include study of other city processes, staff memos and draft ordinances. Template Updated 2021.06.08 City Manager Comments: Progress Q1: Progress Q2: Progress Q3: Progress Q4: Initiative #5 Initiative Type ☒☒☒☒ Project ☐☐☐☐ Ongoing / Annual ☐☐☐☐ Event Council Charge ☐☐☐☐ 1 (Study & Report) ☐☐☐☐ 2 (Review & Comment) ☒☒☒☒ 3 (Review & Recommend) ☐☐☐☐ 4 (Review & Decide) Initiative Title: Public & Private Parking. Continuation from the Off-Street Private Parking Regulation Ordinance. To review the City of Edina parking ordinances and the extent of subsidy given to car infrastructure in Edina. Planned deliverables during 2022 would be a report to City Council with our findings related to car infrastructure, a strategy for engagement with residents, and subsequent ordinance revisions." Deliverable: Recommendation to the City Council Leads: Staff and small working group of the planning commission. Target Completion Date: End of 2022 Budget Required: (Completed by staff) No budget required. Staff Support Required (Completed by staff): Yes. Staff support required regarding the ordinance amendments. Liaison Comments: Some of this work would be completed by planning commissioners. City Manager Comments: Progress Q1: Progress Q2: Progress Q3: Progress Q4: Template Updated 2021.06.08 Parking Lot: (These items have been considered by the BC, but not proposed as part of this year’s work plan. If the BC decides they would like to work on them in the current year, it would need to be approved by Council.) Housing Strategy Implementation Report City of Edina 4801 West 50th Street Edina, MN 55424 Advancing Housing Priorities for Edina 2 Introduction There are many ways to define a city. At its essence, a city is a group of people who live in close proximity to one another and practice a level of interdependence that contributes to their overall quality of life. As humans have evolved, cities have grown more sophisticated, and shelter needs more complicated. Because of its centrality to human life, our need for safe reliable shelter has become a matter of great concern to our leaders. The purpose of this report is to identify and address the shelter (i.e. – housing) needs of a modern suburban community in 21st century America in order for the leaders of this community to make sure that the residents of Edina have a broad supply of housing options available to them. This report is a strategy documents that reflects the will of the elected leaders in Edina 2020. It was produced by a group of City staff, community volunteers and consulting partners who collectively dedicated thousands of hours of time to the overall goal of insuring the housing needs of Edina residents, present and future, are considered first and foremost as the key to Edina’s overall quality of life. Scott H. Neal 3 Table of Contents Housing Strategy Task Force ....................................................................................................................... 4 Staff Evaluation Process ............................................................................................................................. 5 Impact Matrix ...........................................................................................................................................................6 Housing Priorities ....................................................................................................................................................7 Goals and Strategies ................................................................................................................................................8 Notes for Reading ...................................................................................................................................... 9 Recommendation for Moving Strategies Forward ...................................................................................... 10 I. Strategy Items in Process ........................................................................................................ 10 II. Recommendation to Include on 2022 Workplan ............................................................ 15 III. Recommendation to Reassess for 2023 Workplan ......................................................... 20 IV. Strategies where City has Limited Authority to Implement ..................................... 24 Appendix: Housing Strategy Report Recommendations 4 Housing Strategy Task Force Task Force Members Bernadette Hornig, co-chair Daniel Hunt, co-chair Janet Kitui Joe Burke Norm Siekman Steve Brown (joined January 2020) Thomas Koon Feroza Mehta (served June - November 2019) City Staff Stephanie Hawkinson, Affordable Housing Development Manager MJ Lamon, Community Engagement Coordinator Scott Neal, City Manager Cary Teague, Community Development Director Consultant Team Merritt Clapp-Smith, Moxie Consulting LLC Janne Flisrand, Flisrand Consulting Antonio Rosell, Community Design Group 5 Staff Evaluation Process Each goal and strategy was evaluated by designated City staff, who also provided input on the Imapct Effort Matrix Score*. The Affordable Housing Development Manager led the evaluation process. *Impact Effort Matrix Score Lead Staff had colleagues provide feedback on the forty-two strategies. Staff participation included feedback from the following people: Kris Aaker, Assistant City Planner Emily Bodeker, Assistant City Planner Grace Hancock, Sustainability Coordinator Risi Karim, City Management Fellow MJ Lamon, Community Engagement Coordinator Bill Neuendorf, Economic Development Manager Luther Overholt, City Forester Cary Teague, Community Development Director Don Uram, Finance Director Jessica Vanderwerff Wilson, Water Resources Coordinator 6 Impact Matrix The Impact Effort Matrix is a 2 x 2 grid that helps assess solutions for their relative impact given the effort required. It provides a quick way to filter out solutions that might not be worth the effort. The best solutions are in the upper left quadrant, easy to implement but with substantial impact. 1 – High Impact/Low Effort 2 – High Impact/High Effort 3 – Low Impact/Low Effort 4 – Low Impact/High Effort 1 2 7 Housing Priorities The top five Task Force recommended housing priorities are: 1. Add 992* affordable rental housing units a. 80% affordable rental for general occupancy b. 20% affordable rental for active seniors. 2. Add 900 market rate rental housing units for general occupancy 3. Add 360 senior ‘independent living,’ congregate housing units 4. Add 250 owned multi-family housing units 5. Add 200 senior ‘assisted living’ housing units *As adopted by the City Council per Metropolitan Council goals. Remaining values derived from Maxfield Housing Study. 8 Goals and Strategies Goal 1: Promote Lifecycle Housing Strategies: A. Promote Affordable and Attainable Housing B. Promote Missing Middle Housing Production C. Promote Special Needs Housing D. Encourage Preservation and Promotion of Diverse Housing Stock Goal 2: Amend Land use Regulations to Enable a More Diverse Housing Stock Strategies: A. Adjust Zoning Standards for Housing B. Consider Zoning District Amendments to Expand Housing Options. Goal 3: Reduce Building Costs Strategies: A. Streamline the Approval Process for Housing Developments Requiring Variance or Subsidy. B. Reduce the Cost of Building, Renovating and Financing Quality Housing. Goal 4: Encourage Sustainable Design and Technology in all New and Substantially Rehabilitation Housing. 9 Notes in Reading Steps for Moving Forward The following pages are a reorganization of the Task Force’s recommendations from a linear reading of goals and strategies to placing those goals and strategies into implementation categories. Therefore, in the first section under “Strategy Items in Process” there is Goal 1, Strategy A then Goal 1, Strategy D. Strategies B and C are in different sections. The full list of Goals and Strategies is provided in the Appendix. 10 Recommendation for Moving Priorities Forward I. Strategy Items in Process: Staff has already begun moving these strategies items forward. Some of these with a Matrix Score of 1 could be completed in 2021, some by their nature are on-going, and others have a longer time line and require either HRA or City Council approval. GOAL 1: Promote Life Cycle Housing Strategy A: Promote Affordable and Attainable Housing 1 Strategy 1A.3: Attract new residents and retain existing residents by preserving and expanding housing options for moderate- and low-income households. Staff Response Lead Partner • HRA allocated funds to Metro HRA and West Hennepin Community Land Trust for affordable single family housing. • Improve communication to owners of moderate priced homes that HRA or Land Trust may want to acquire. • Lack of interest to place a moratorium on teardowns. • City needs to affirmatively further housing diversity. • There is a need to larger family units of affordable housing. • City can create incentives but not mandates. • Per unit, affordable single family housing is more expensive than multifamily housing. • Single Family ownership helps with wealth creation. • City/HRA already providing gap financing for affordable rental, including for land acquisition. • On-going effort Affordable Housing Development Manager Edina Housing Foundation Matrix Score:1 Strategy D: Encourage Preservation and Promotion of Diverse Housing Stock 2 Strategy 1D.2: Encourage the preservation, maintenance, and rehabilitation of existing subsidized and naturally occurring affordable rental and ownership housing (NOAH) Staff Response Lead Partner • HRA has approved two iterations of the 4d program which is primary tool for NOAH preservation. Neither has been successful. • City approved gap finance for 7008 Sandell to preserve as a NOAH property. Affordable Housing Development Manager Sustainability Coordinator 11 • City has agreement with Center Energy & Environment’s Home Energy Squad to assess homes for energy efficiency measures. • We need a better mechanism for selling the 4d and energy efficient program as message may not be getting to owners. • On-going effort. Matrix Score: 2 3 Strategy 2D.4: Support program(s) for assisting income eligible property owners with rehabilitating their homes to extend their useful life. Staff Response Lead Partner • City has agreement with Center for Energy and the Environment (CEE) Home Energy Squad to assess homes for energy efficiency measures. • Exploring expansion of relationship with CEE to support emerging home rehab program. • City allocates a portion of CDBG allocation to Hennepin County to administer a rehabilitation program. • In March 2021 HRA approved Home Rehab pilot program. • Will review program outcomes when the Pilot Program has concluded. Affordable Housing Development Manager Edina Housing Foundation Matrix Score: 1 GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock Strategy A: Adjust Zoning Standards for Housing 4 Strategy 2A.1: Provide zoning flexibility in the specific areas identified for development in the 2040 Comprehensive Plan to streamline the public approval process for minor variances. Staff Response Lead Partner • Planning employs the PUD process that provides zoning flexibility. Process works well, although would be helpful to have just one public hearing. • Propose having only one public hearing – at Planning Commission. If developers do not agree with outcome, may appeal to City Council. Eliminate City Council Public hearing. • Planning Commission is the reviewing authority for minor variances. Process works well now. Planning Department Planning Commission 12 • On-going. Matrix Score: 2 5 Strategy 2A.3: Allow for creative solutions and some flexibility in the provision of off-street parking standards for housing. This might include options like shared parking, reduced minimums near transit and activity nodes, or exceptions to structured parking requirements for affordable housing. Staff Response Lead Partner • The Planning Commission is currently considering an ordinance amendment to the city's parking standards. • This will be concluded in 2021. Planning Department Planning Commission Matrix Score: 2 Goal 3: Reduce Building Costs Strategy A: Streamline the Approval Process for Housing Development Requiring a Variance or Subsidy 6 Strategy 3A.1: Fully empower the City’s Community Development Department to identify properties for development or redevelopment, analyze projects for both fit with the 2040 Comprehensive Plan Design Guidelines and economic feasibility in prevailing market conditions, balancing these two as needed. Communicate development objectives to developers and encourage the preparation of proposals for development. Staff Response Lead Partner • Staff cannot dictate development on property it does not own. • Encourage flexibility in design guidelines to achieve affordability. • Staff does identify potential sites for redevelopment and work with property owners interested in redevelopment by sharing small area plans, studies, comprehensive plan etc. • On-going. Planning Department Planning Commission Matrix Score: 1 7 Strategy 3A.2: Implement active outreach and recruit developers with a successful track record in providing the housing desired. Staff Response Lead Partner • When the City has control of property, they issue an Request for Proposals/Request for Qualifications to attract developers: e.g. Amundson Flats and Cornelia View Apartments • Assists in achieving City goals. Affordable Housing Development Manager Edina Housing Foundation 13 • The availability of land and financial resources is a limiting factor. • On-going. Matrix Score: 2 8 Strategy 3A.3: Empower the City’s Community Development Departments to guide developers through the project approval process. Staff Response Lead Partner • Practice already in place. Community Development Director Matrix Score: 1 9 Strategy 3A.4: Provide better guidelines for development requirements, based on location and economic objectives. Staff Response Lead Partner • Practice already in place. • This has been done with development of the 2040 Comprehensive Plan which includes small area plans for the commercial nodes, and design experience guidelines for the Southdale area. Some of those guidelines have been codified into the City's Zoning Ordinance. Planning Department Matrix Score: 1 Strategy B: Reduce the Cost of Building, Renovating and Financing Quality Housing 10 Strategy 3B.1: Develop a parking policy that reflects the latest thinking for current and future parking needs, parking construction costs, sustainability and evolving economic and marketability needs for successful projects. Staff Response Lead Partner • The Planning Commission is currently working on a Zoning Ordinance Amendment regarding parking. • Current parking rules often result in a variance request, allowing planning to require more sustainability measures (among others) than typical. Some people prefer incentive here to keep parking rules as is. • Planning Commission is seeking City Council approval in quarter 2 of 2021. Planning Department Planning Commission Matrix Score: 1 11 Strategy 3B.4: Utilize land trusts and land write-downs to secure land for future development projects. Staff Response Lead Partner • A partnership with West Hennepin Affordable Housing Land Trust already exists. Affordable Housing West Hennepin 14 • Edina Housing Foundation entered into a 99-year ground lease to secure 99-year affordability on a multifamily development at 4040 W. 70th St. • Limiting factor is the availability of land. • On-going. Development Manager Affordable housing Land Trust Matrix Score: 1 12 Strategy 3B.5: Empower the City’s Affordable Housing Development Manager to be responsible for establishing/evaluating the parking, design, and amenity requirements for affordable housing developments to ensure economic viability of these projects. Staff Response Lead Partner • The Affordable Housing Manager is already a part of the staff review process. • Staff needs to consider how the proposed development fits within the neighborhood. • This strategy limits some oversight control of the Planning Commission and City Council pertaining to the Sketch Plan process if implemented to the extreme Affordable Housing Development Manager Planning Commission Matrix Score: 1 13 Strategy 3B.7: Authorize the City, through a public hearing process, to have authority to make property purchases that are consistent with a city development strategy, within a financial limit, to be able to secure control of potential properties for affordable housing development, in an expeditious manner. Staff Response Lead Partner • The HRA began acquired land to fulfil the development mission with the acquisition of 4040 W. 76th Street. • The HRA also acquired 7075 Amundson to help facilitate those two affordable housing developments. • On-going. Affordable Housing Development Manager Edina Housing Foundation Matrix Score: 1 15 II. Recommendation to Include on 2022 Workplan Strategies included in this section include those that are not currently underway, but staff recommends be prioritized for 2022 workplans as they support the City’s pillars of Equity and Inclusion and sustainability. GOAL 1: Promote Life Cycle Housing Strategy A: Promote Affordable and Attainable Housing 14 Strategy 1A.1: Prepare a housing implementation plan using a mix of tools to achieve the City’s housing goals, including the Comprehensive Plan goal range of 992 to 1,804 affordable units, in the ten-year horizon, with time-bound goals and milestones, to be reviewed on an annual basis. Staff Response Lead Partner • Staff can refer to this strategy when developing annual work plans. • Staff may track number of affordable units developed and include in staff report to HRA. • Affordable housing requires gap financing and participating developers. This goal could be a challenge due to the availability of funding using City sources and government partners. Affordable Housing Development Manager Edina Housing Foundation Matrix Score: 2 15 Strategy 1A.2: Facilitate the development of “new” housing options such accessory dwelling units to accommodate the diverse needs of people of different ages, household sizes, lifestyle and incomes. Staff Response Lead Partner • Requires a Comp plan amendment to allow more density in R1 zoning districts. • The Planning Commission reviewed before and opted to not proceed. • Could be included in Planning Commission 2022 Work Plan. • This would require buy-in with residents in established neighborhoods. This was discussed during Comp Plan update with no support at the time. • Although allowing ADUs could fill a niche of smaller more affordable housing in Edina, in reality building them is expensive and cities that allow them are not seeing them developed in high numbers. • If ADUs are consider, should also include duplexes to four-plexes. There is a racial component of who is in Planning Department Planning Commission 16 favor of ADUs vs. other forms of increased housing density. Matrix Score: 4 Strategy B: Promote Missing Middle Housing Production 16 Strategy 1B.1: Support opportunities to accommodate Missing Middle housing within the city, defined as range of multi-unit or clustered housing types compatible in scale with single-family homes Staff Response Lead Partner • May require a Comp plan amendment and zoning change. • Higher zoning creates higher land value. In districts that already have Multifamily zoning - this could reduce land value. In areas with R1 zoning - this could increase value. • Missing Middle can have same massing as single-family houses, with each unit being more affordable. Planning Department Planning Commission Matrix Score: 2 Strategy C: Encourage Preservation and Promotion of Divers Housing Stock 17 Strategy 1C.1 Support a range of housing options for people with special needs (Developmentally, Physically, or Mentally) 1) Families with a disabled member 2) Affordable housing for working households with a disabled member Assisted living for individuals with disabilities. Staff Response Lead Partner • Requires a developer to provide this type of housing. • If the City owns the land, we can make this a requirement in RFP. • Land is scarce and expensive. Affordable Housing Development Manager Edina Housing Foundation Matrix Score: 2 GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock Strategy B: Consider Zoning District Amendments to Expand Housing Options 18 Strategy 2B.3: Support the development and preservation of affordable housing throughout Edina where there is access to transit. Staff Response Lead Partner • On-going now when possible. • Preserves/increases housing options. • Scarcity of available Land. Affordable Housing Development Manager Planning Commission Matrix Score: 2 17 GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock Strategy B: Consider Zoning District Amendments to Expand Housing Options 19 Strategy 2B.1: Consider zoning amendments in limited areas (such as transitional areas and activity nodes) to allow lot splits for infill, single-family ownership housing, detached or attached (zero lot line), on lots after splitting that are 50’ or wider (or 3,500 sf or larger). Staff Response Lead Partner • Allows for more inclusionary housing - more affordable. • The City has considered many requests like what is suggested here. Some get approved and some get denied. The process seems to work well as the city has flexibility on when to approve or deny. • Review design elements that make single family housing more expensive such as basements, minimum lot size, minimum lot width, minimum house width, etc. • This would have to be a planning commission work plan item. Planning Department Planning Commission Matrix Score: 2 20 Strategy 2B.2: Consider amending current R1 zoning to allow attached or detached Accessory Dwelling Units (ADU) such as self-contained "mother-in-law units". Develop Small Area Plans for extending R2 zoning along Vernon Ave from 169 to Interlachen, France Ave north of Hwy 62, and Valley View from 66th to Hwy 100. Evaluate additional areas for R2 zoning. Staff Response Lead Partner • If allow for ADUs also allow for duplexes. ADUs are perceived as "white" duplexes, so if they become allowed should allow for attached two-household residences. SF zoning is considered exclusionary. • May not require rezoning as ADUs are not main dwelling unit but may can be considered a structure like gazebo or garage. • The concept has been considered and rejected in the past (2008 Comp Plan). Issue was discussed briefly during the current Comp Plan consideration, but not suggested. Some were concerned with the potential of doubling the density in the R1 District. • Although allowing ADUs could fill a niche of smaller more affordable housing in Edina, in reality building them is expensive and cities that allow them are not seeing them developed in high numbers. Planning Department Planning Commission 18 • This could be another consideration for the Planning Commission on their work plan item for 2022. • Many of these areas are currently zoned R2. • City staff has not been approached by developers to redevelop these areas for duplexes where single family homes now exist. Matrix Score: 2 GOAL 3: Reduce Building Cost Strategy B: Reduce the Cost of Building, Renovating and Financing Quality Housing 21 Strategy 3B.8: Fully utilize the other options the city has to lower the cost of development and or financing (i.e. rebate on fees, tax exempt bond financing, upgrading to an Economic Development Agency, selling land below market value, reduced property taxes, etc.) Staff Response Lead Partner • Transfers cost to other sectors. • Need to review legal parameters. • Assists in reducing the development costs of affordable housing. • Provides incentives to developers. Affordable Housing Development Manager Finance Director Matrix Score: 2 GOAL 4: Encourage Sustainable Design and Technology in all New and Substantial Rehabilitation Housing 22 Strategy 4.1: Encourage alternative energy sources including solar, wind, waste material, and geothermal. Staff Response Lead Partner • State Building Code does not allow cities to require more stringent building measures than the state. This limits ability to require sustainable design of private buildings. • Wind energy is not practical to install in urban environments, but residents can subscribe to wind energy through Xcel Energy. • City is developing a Green Buildings policy which would apply to all projects receiving TIF or other public funds. For projects not receiving public funds, there is no mechanism to require renewable energy, though there is opportunity to better communicate utility incentives. Sustainability Coordination Energy and Environment Commission 19 • Staff time for research/conversations with Xcel energy about promoting solar garden subscriptions. • If City installs more solar this could be opened to public subscribers like the array on Public Works' rooftop. Could also include affordability carve-out. • If City wishes to promote conversion from natural gas to electricity for heating, would likely include financial resources needed. • Residential energy use accounts for ~40% of all building energy use in Edina (outside commercial/industrial). • Existing tools: Home Energy Squad to assess current conditions and list of actions for rehabs to be more efficient, Xcel 2016 Electricity Action Plan & residential energy subscriptions, Centerpoint community affordability programs, emerging City Green Buildings policy & existing Energy Benchmarking ordinance, CAS Fund for city projects. • More tools/actions will come with '21 Climate Action Plan Matrix Score: 2 20 III. Recommendation to Reassess for 2023 Workplan The following strategies require a longer lead time, may be more politically charged, and/or the outcomes may not match the effort to implement. GOAL 1: Promote Life Cycle Housing Strategy D: Encourage Preservation and Promotion of Diverse Housing Stock 23 Strategy 1D.5: Increase awareness about the range of housing variety that exists in Edina. Staff Response Lead Partner • Housing in Edina is more varied than common perceptions. • The City has had affordability and diversity for a long time. • Address misconceptions regarding housing in Edina. Communications Department Matrix Score: 3 GOAL 2: Amend Land Use Regulation to Enable a More Diverse Housing Stock Strategy A: Adjust Zoning Standards for Housing 24 Strategy 2A.2: Continue to allow teardowns/rebuilds but consider design guidelines and regulations that prevent privacy invasion via window placement and infringement on both active and passive solar energy capture. Staff Response Lead Partner • Zoning ordinance amendment would be required. • Would have to be added to the planning commission work plan. They have not identified these as issues. • It is debatable on whether the City should micromanage window placement. • The City has addressed the tear down rebuilt issue several times over the past 15 years. Modifications have been made to address resident concerns. Those include reducing height, adding architecture controls (prohibiting blank walls), increasing setbacks, better regulations on grading. The planning commission has not identified these as issues. Planning Department Planning Commission Matrix Score: 4 21 GOAL 3: Reduce Building Cost Strategy A: Streamline the Approval Process for Housing Development Requiring a Variance or Subsidy 25 Strategy 3A.5: Simplify the current project approval process. Limit discussion to the variance or 2040 Comprehensive Plan amendment issues being raised. Staff Response Lead Partner • Consider eliminating one public hearing. State law requires one official public hearing. • The length of the entitlement process has been shown to determine whether a development moves forward. • Reducing time, and therefore cost. • City Council would not hold a public hearing but simply approve or deny Planning Commission’s determination. Community Development Director Planning Commission Matrix Score: 2 26 Strategy 3A.6: Conduct semi-annual project review meetings between Staff, City Council and Planning Commission to discuss lessons learned, gain alignment and determine policy implications of projects completed in the past six months. Staff Response Lead Partner • This could be accomplished as part of the annual work session with the planning commission and city council. • Learning process to improve City functions. Community Development Director Matrix Score: 3 27 Strategy 3A.7: Complete Post-mortem reviews of the current development review process, paying particular attention to assessing the level of quality of resulting developments. Identify what developments have been delayed or have been negatively impacted by incurring additional costs in the development process due to multiple levels of approvals or ad hoc design and amenity requests Staff Response Lead Partner • This could be accomplished as part of the annual work session with the planning commission and city council. • Requires willingness to participate by developers. • Learning process to improve City functions. Planning Department Planning Commission Matrix Score: 3 28 Strategy 3A.8: Ensure that there is a robust system in place to identify the evolving best practices for managing housing developments being used by other communities. For example, Bloomington, St. Louis Park, Brooklyn Center or others. Staff Response Lead Partner • This takes time. Only in hind-site do we understand "Best Practices." Planning Department 22 • Requires willingness of other Cities to share information. • Staff regularly attend conferences, webinars, and read articles to improve their work. Matrix Score: 2 Strategy B: Reduce the Cost of Building, Renovating and Financing Quality Housing 29 Strategy 3B.3: Expand the HRA levy to generate funds that can be leveraged for land acquisition, bridge loans and renovations. Staff Response Lead Partner • Increases tax obligation on Edina Residents. Currently the obligation is only $9 a year. • Need to study effects on lowest income residents based on the size of proposed levy increase. Finance Director Matrix Score: 2 GOAL 4: Encourage Sustainable Design and Technology in all New and Substantial Rehabilitation Housing 30 Strategy 4.2: Promote active and passive energy efficiency in the design and placement of buildings and trees and education of property owners regarding weatherization and energy efficiency. Staff Response Lead Partner • City has agreement with Center for Energy and the Environment (CEE) Home Energy Squad to assess homes for energy efficiency measures. • Tree placement on property is considered to help increase energy efficiency. • Staff provides hand-out on where to plant trees for hedgerow to block wind. • There is a Tree ordinance in building code. Reviewing tree ordinance - forthcoming Summer 2021. • City conducting Tree give-aways with U of MN document on tree placement. Sustainability Coordinator City Forester Matrix Score: 3 31 Strategy 4.5: Support mitigation of water run-off by encouraging use of rain gardens, rain barrels, cisterns, permeable driveways and walkways, and appropriate landscape design. Staff Response Lead Partner • When redeveloping we have requirements for stormwater management. Sustainability Coordinator Engineering Department 23 • We are a Blue Thumb partner and annually host raingarden workshops. • Other local government units and non-profit groups fill this niche – providing resources for resilient landscaping. We regularly promote their programs and materials. • We have fact sheets on our flooding and drainage webpage to help people understand how to better manage drainage on their own properties. • Rain garden and rain barrels have minimum impact. Cisterns are expensive. Mixed impact on permeable surfaces because they stop working if not maintained properly. • Items are minor and will not move needle. Matrix Score: 4 24 IV. Strategies Where City has Limited Authority to Implement Staff has determined that the following strategies are challenging to implement due to building codes, or state or Federal law. GOAL 1: Promote Life Cycle Housing Strategy A: Promote Affordable and Attainable Housing 32 Strategy 1A.4: Promote affordable and workforce housing that includes a range of housing prices and options, based on the principle that those who contribute to the community should have the opportunity to live here. Staff Response Lead Partner • Staff needs to be cognizant of Fair Housing Laws. • Advanced marketing to people who work in the City may occur. • Options remains to be limited as single family housing prices keep rising, as do their corresponding taxes. • Availability of land for Multifamily development is limited. • Creates more opportunities for people to live closer to their work. Reduces travel time. Positive environmental impacts. Affordable Housing Development Manager Edina Housing Foundation Matrix Score: 2 33 Strategy 1A.5: Explore directing for a limited period of time, the City’s portion of the increased tax value of tear down properties to support Affordable Housing. Staff Response Lead Partner • Diverts money away from other uses. • Possible look at Citywide increase in market value to avoid single out any one type of resident. • Review increase in market value due to teardown and allocate a portion of the increase to the AHTF. • Makes available additional resources for affordable housing programs. • Requires political will. Finance Director Matrix Score: 4 Strategy D: Encourage Preservation and Promotion of Diverse Housing Stock 34 Strategy 1D.1: Assist neighborhoods in retaining starter housing stock that can accommodate young families. Staff Response Lead Partner • Neighborhoods have no say in what individual homeowners do with their houses. Affordable Housing Edina Housing Foundation 25 • City can create incentive programs. Development Manager 35 Strategy 1D.3: Maintain some of Edina’s single-family, lower square footage housing stock. Staff Response Lead Partner • Property owners have rights to sell their homes to whomever. • Expensive for the City to step in an be a buyer. • Staff working on developing an home rehab program. Affordable Housing Development Manager Matrix Score: 4 GOAL 3: Reduce Building Cost Strategy B: Reduce the Cost of Building, Renovating and Financing Quality Housing 36 Strategy 3B.2: If underground or covered parking is required, be willing to fund it by Tax Increment Financing (TIF) or other means of subsidy. Staff Response Lead Partner • Need to comply with TIF rules – either through the creation of a Redevelopment TIF district in which case blight needs to be detected and remedied, or through an affordable housing TIF district. TIF simply for parking is not allowed. • Seek different options for funding. • Another source of funding is possible, such as the Trust Fund it it become robust enough. • A better use of TIF is to pay for a high capital cost that will reduce operating costs (I.e. solar panels) Planning Department Finance Department Matrix Score: 2 37 Strategy 3B.9: Explore directing City portion of increment of increased tax value of tear down properties to Affordable Housing Trust Fund. Staff Response Lead Partner • These funds would be directed away from general fund. • Possible look at Citywide increase in market value to avoid single out any one type of resident. • Need to study impacts. • Seeking different funding sources. Finance Director Matrix Score: 3 26 GOAL 4: Encourage Sustainable Design and Technology in all New and Substantial Rehabilitation Housing 38 Strategy 4.3: Require shadow studies on new or replacement housing structures to ensure active and passive solar energy use by adjacent properties is not adversely impacted Staff Response Lead Partner • State statutes limit the City authority to require, but City could promote or incentivize. • This might discourage tall buildings and increased density. • More research to determine best practices in this area. Sustainability Coordinator Planning Commision Matrix Score: 4 39 Strategy 4.4: Promote water conservation by homeowners and housing property owners through education about water conserving appliances and fixtures, and reusing wastewater. Staff Response Lead Partner • Reusing waste water: State Building code issue. We may be years out from this endeavor in terms of technology, policy, and scaling for residential housing. Do not want to include as a strategy. • People already conserving water for indoor uses as appliances become more efficient; this is a form of passive water conservation that doesn’t require behavior change. Water efficient appliances are common in the market. • Irrigation summer use is still an issue. Promote native vegetation. • Set conservation tiers for water usage - look at pricing. Add another top tier or shrink down range of existing lower tiers. Charge people more when they use more, would be designed to charge a higher rate for the biggest users who are presumably using for irrigation and not regular household drinking and/or cleaning. Sustainability Coordinator Energy and Environment Commission Matrix Score: 3 40 Strategy 4.6: Frequently review housing codes and policies to incorporate new technology regarding alternative energy sources, new more energy efficient building practices, and conservation Staff Response Lead Partner • Building codes are governed at the State level. Sustainability Coordinator 27 • City includes updates to state building code in legislative priorities, and in annual resolutions of support for more efficient building standards. Matrix Score: 3 41 Strategy 4.7: Promote new construction and substantial rehabilitation projects to following leading industry sustainability standards. Staff Response Lead Partner • State Building Code does not allow cities to require more stringent building measures than the state. This limits ability to require sustainable design of private buildings. • On HRA acquired property, through an RFP HRA can request that developer incorporate sustainability best practices as allowed by code. • City offers new home construction training annually (ERRCATS) where Sustainability describes best practices and promotes resources to improve sustainable design and construction. Sustainability Coordinator Matrix Score: 3 28 Appendix: Goals and Strategies GOAL 1: PROMOTE LIFECYCLE HOUSING Actively work to create lifecycle housing to support a range of housing options that meet people’s preferences and circumstances in all stages of life, such as renters, first-time homebuyers, empty nesters, and seniors. A. Promote Affordable and Attainable Housing 1) Prepare a housing implementation plan using a mix of tools to achieve the City’s housing goals, including the Comprehensive Plan goal range of 992 to 1,804 affordable units, in the ten-year horizon, with time-bound goals and milestones, to be reviewed on an annual basis. 2) Facilitate the development of “new” housing options such as accessory dwelling units to accommodate the diverse needs of people of different ages, household sizes, lifestyle, and incomes. 3) Attract new residents and retain existing residents by preserving and expanding housing options for moderate- and low-income households. 4) Promote affordable and workforce housing that includes a range of housing prices and options, based on the principle that those who contribute to the community should have the opportunity to live here. 5) Explore directing for a limited period of time, the City’s portion of the increased tax value of tear down properties to support Affordable Housing. B. Promote Missing Middle Housing Production 1) Support opportunities to accommodate Missing Middle housing within the city, defined as range of multi-unit or clustered housing types compatible in scale with single-family homes C. Promote Special Needs Housing 1) Support a range of housing options for people with special needs (Developmentally, 29 Physically, or Mentally) a) Families with a disabled member b) Affordable housing for working households with a disabled member c) Assisted living for individuals with disabilities. D. Encourage Preservation and Promotion of Diverse Housing Stock 1) Assist neighborhoods in retaining starter housing stock that can accommodate young families. 2) Encourage the preservation, maintenance, and rehabilitation of existing subsidized and naturally occurring affordable rental and ownership housing (NOAH). 3) Maintain some of Edina’s single-family, lower square footage housing stock. 4) Support program(s) for assisting income eligible property owners with rehabilitating their homes to extend their useful life. 5) Increase awareness about the range of housing variety that exists in Edina. GOAL 2: AMEND LAND USE REGULATIONS TO ENABLE A MORE DIVERSE HOUSING MIX A) Adjust Zoning Standards for Housing 1) Provide zoning flexibility in the specific areas identified for development in the Comprehensive Plan to streamline the public approval process for minor variances. 2) Continue to allow teardowns/rebuilds but consider design guidelines and regulations that prevent privacy invasion via window placement and infringement on both active and passive solar energy capture. 3) Allow for creative solutions and some flexibility in the provision of off-street parking standards for housing. This might include options like shared parking, reduced minimums near transit and activity nodes, or exceptions to structured parking requirements for affordable housing. 30 B. Consider Zoning District Amendments to Expand Housing Options 1) Consider zoning amendments in limited areas (such as transitional areas and activity nodes) and pursue zoning changes to encourage split lots to allow infill, to allow lot splits for infill, single-family ownership housing, detached or attached (zero lot line), on lots after splitting that are 50’ or wider (or 3,500 sf or larger). 2) Consider amending current R1 zoning to allow attached or detached Accessory Dwelling Units (ADU) such as self-contained “mother-in-law units”. Develop Small Area Plans for extending R2 zoning along Vernon Ave from 169 to Interlachen, France Ave north of Hwy 62, and Valley View from 66th to Hwy 100. Evaluate additional areas for R2 zoning. 3) Support the development and preservation of affordable housing throughout Edina where there is access to transit. GOAL 3: REDUCE BUILDING COSTS A. Streamline the Approval Process for Housing Developments Requiring a Variance or Subsidy 1) Fully empower the City’s Community Development Department to identify properties for development or redevelopment, analyze projects for both fit with the Comprehensive Plan Design Guidelines and economic feasibility in prevailing market conditions, balancing these two as needed. Communicate development objectives to developers and encourage the preparation of proposals for development. 2) Implement active outreach and recruit developers with a successful track record in providing the housing desired 3) Empower the City’s Community Development Department to guide developers through the project approval process. 4) Provide better guidelines for development requirements, based on location and economic objectives. 5) Simplify the current project approval process. Limit discussion to the variance or Comprehensive Plan amendment issues being raised. 6) Conduct semi-annual project review meetings between Staff, City Council and Planning 31 Commission to discuss lessons learned, gain alignment, and determine policy implications of projects completed in the past six months. 7) Complete Post-mortem reviews of the current development review process, paying particular attention to assessing the level of quality of resulting developments. Identify what developments have been delayed or have been negatively impacted by incurring additional costs in the development process due to multiple levels of approvals or ad hoc design and amenity requests. 8) Ensure that there is a robust system in place to identify the evolving best practices for managing housing developments being used by other communities. For example, Bloomington, St. Louis Park, Brooklyn Center, or others. B. Reduce the Cost of Building, Renovating and Financing Quality Housing 1) Develop a parking policy that reflects the latest thinking for current and future parking needs, parking construction costs, sustainability and evolving economic and marketability needs for successful projects. 2) If underground or covered parking is required, be willing to fund it by Tax Increment Financing (TIF) or other means of subsidy. 3) Expand the HRA levy to generate funds that can be leveraged for land acquisition, bridge loans and renovations. 4) Utilize land trusts and land write-downs to secure land for future development projects. 5) Empower the City’s Affordable Housing Development Manager to be responsible for establishing/evaluating the parking, design, and amenity requirements for affordable housing developments to ensure economic viability of these projects. 6) Empower the City’s Affordable Housing Development Manager and the Director of Community Development to be responsible for parking, design, and amenity requirements for housing for seniors, people with disabilities and other housing market segments with specific needs. 7) Authorize the City, through a public hearing process, to have authority to make property purchases that are consistent with a city development strategy, within a financial limit, to be 32 able to secure control of potential properties for affordable housing development, in an expeditious manner. 8) Fully utilize the other options the city has to lower the cost of development and or financing (i.e. rebate on fees, tax exempt bond financing, upgrading to an Economic Development Agency, selling land below market value, reduced property taxes, etc.). 9) Explore directing City portion of increment of increased tax value of tear down properties to Affordable Housing Trust Fund. GOAL 4: ENCOURAGE SUSTAINABLE DESIGN AND TECHNOLOGY IN ALL NEW AND SUBSTANTIAL REHABILITATION HOUSING 1) Encourage alternative energy sources including solar, wind, waste material, and geothermal. 2) Promote active and passive energy efficiency in the design and placement of buildings and trees and educate property owners regarding weatherization and energy efficiency. 3) Require shadow studies on new or replacement housing structures to ensure active and passive solar energy use by adjacent properties is not adversely impacted. 4) Promote water conservation by homeowners and housing property owners through education about water conserving appliances and fixtures, and reusing wastewater. 5) Support mitigation of water runoff by encouraging use of rain gardens, rain barrels, cisterns, permeable driveways and walkways, and appropriate building and landscape design. 6) Frequently review housing codes and policies to incorporate new technology regarding alternative energy sources, new energy efficient building practices. 7) Promote new construction and substantial rehabilitation projects to follow leading industry sustainability standards. 1.Strategy 1A.1: Prepare a housing implementation plan using a mix of tools to achieve the City’s housing goals, including the Comprehensive Plan goal range of 992 to 1,804 affordable units, in the ten-year horizon, with time- bound goals and milestones, to be reviewed on an annual basis. 2.Strategy 1C.1 Support a range of housing options for people with special needs (Developmentally, Physically, or Mentally) 3.Strategy 3A.6: Conduct semi-annual project review meetings between Staff, City Council and Planning Commission to discuss lessons learned, gain alignment and determine policy implications of projects completed in the past six months. 4.Strategy 3A.8: Ensure that there is a robust system in place to identify the evolving best practices for managing housing developments being used by other communities. For example, Bloomington, St. Louis Park, Brooklyn Center or others 2022-2023 Workplan: Community Development HSTF 1.Strategy 1A.2: Facilitate the development of “new” housing options such accessory dwelling units to accommodate the diverse needs of people of different ages, household sizes, lifestyle and incomes. 2.Strategy 1B.1: Support opportunities to accommodate Missing Middle housing within the city, defined as range of multi-unit or clustered housing types compatible in scale with single-family homes. 3.Strategy 2B.3: Support the development and preservation of affordable housing throughout Edina where there is access to transit. 4.Strategy 2B.1: Consider zoning amendments in limited areas (such as transitional areas and activity nodes) to allow lot splits for infill, single-family ownership housing, detached or attached (zero lot line), on lots after splitting that are 50’ or wider (or 3,500 sf or larger). 2022-2023 Workplan: Planning Commission HSTF Planning Commission Continued 5.Strategy 2B.2: Consider amending current R1 zoning to allow attached or detached Accessory Dwelling Units (ADU) such as self-contained "mother-in-law units". Develop Small Area Plans for extending R2 zoning along Vernon Ave from 169 to Interlachen, France Ave north of Hwy 62, and Valley View from 66th to Hwy 100. Evaluate additional areas for R2 zoning. 6.Strategy 2A.2: Continue to allow teardowns/rebuilds but consider design guidelines and regulations that prevent privacy invasion via window placement and infringement on both active and passive solar energy capture. 7.Strategy 3A.5: Simplify the current project approval process. Limit discussion to the variance or 2040 Comprehensive Plan amendment issues being raised. 8.Strategy 3A.7: Complete Post-mortem reviews of the current development review process, paying particular attention to assessing the level of quality of resulting developments. Identify what developments have been delayed or have been negatively impacted by incurring additional costs in the development process due to multiple levels of approvals or ad hoc design and amenity requests HSTF