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04-23-18 CC WS Agenda PacketCITY OF SHOREWOOD CITY COUNCIL WORK SESSION MONDAY, APRIL 23, 2018 AGENDA 1. CONVENE CITY COUNCIL WORK SESSION A. Roll Call B. Review Agenda 2. Comprehensive Plan 3. ADJOURN 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 6:00 P.M. Mayor Zerby Johnson Labadie Siakel Sundberg ATTACHMENTS NAC Handout NORTHWEST ASSOCIATED CONSULTANTS, INC. T. ,., ... .,n h.emorial y....�y, Ste. %L. .,..,..I Vaiiry, MN Telephone: 763.957.1100 Website: www.nacplanning.com MEMORANDUM TO: Shorewood Mayor and City Council Shorewood Planning Commission FROM: Bob Kirmis /Alan Brixius DATE: April 17, 2018 SUBJECT: Shorewood - 2040 Comprehensive Plan Update - Land Use Plan and Housing Plan CASE NO: 227.03 BACKGROUND As previously conveyed, the general approach to Shorewood's 2040 Comprehensive Plan Update entails the following phases of work: 1. Planning Tactics (Issues Identification) 2. Inventory / Community Profile 3. Policy Plan 4. Development Framework (includes various plans) 5. Implementation At the last City Council /Planning Commission Workshop meeting held on February 26, 2018, Planning Staff introduced draft versions of the Policy Plan and the Natural Resources Plan. The Natural Resources Plan was the first of the various plans included in the Development Framework phase of the Plan. Attached for informal City Council and Planning Commission review and feedback at this time are draft Land Use Plan and Housing Plan Chapters. LAND USE PLAN Purpose. Generally speaking, the Land Use Plan is intended to illustrate logical relationships between a variety of major land use types, including residential, public, semi - public, commercial and undeveloped open space. The locations of various land uses are a result of applying the general planning concepts and the specific policies contained in the Policy Plan. In preparing the Land Use Plan, a number of factors were considered. These include the following: • Community Function • Community Character • Housing • Preservation of Open Space • Regional Growth Management Objectives Concept Plan. Included in the Land Use Plan chapter are an explanation of various planning principles which are intended to guide community and /or neighborhood planning and improvement in the City. These include the concepts of land use transition, green space (as an anchor to residential neighborhoods) and the establishment of community focal points. Land Use Plan Classifications. The Land Use Plan map illustrates the proposed juxtaposition of a variety of land use types and densities. Generally speaking, these guided land use categories mimic the various land use classifications included in the City's 2030 Comprehensive Plan and are described in general below. Minimum Density Residential. Minimum Density Residential areas depicted on the Land Use Plan map consist of land where such development presently exists. Overall density in this classification is proposed at .1 to 1 unit per acre. This density remains unchanged from the 2030 Plan. Low Density Residential. This land use category consists of single family residential uses at a density of one to two units per acre. This density range is the same as that identified in the City's 2030 Plan. Most of the area designated as Low Density Residential on the Land Use Plan is presently zoned to accommodate such development. Low to Medium Density Residential. This category of land use is provided to allow residential development at a density of three to six units per acre. This density range exceeds the two to three unit per acre range identified in the City's 2030 Plan. Such change is intended to reflect existing development patterns and provide a means by which density objectives of the Metropolitan Council may be achieved. This land use category allows a greater variety of housing types than the two previous land use categories. Small lot single family residential, double bungalows and medium density townhouse development may be permitted in this land use classification. 2 Medium Density Residential. This land use category directs residential uses at densities of six to eight units per acre. This density range differs from the City's 2030 Plan which directs densities of three to six units per acre in the category. This change is intended to reflect existing development patterns, typical densities associated with medium density residential housing projects and provide a means by which density objectives of the Metropolitan Council may be achieved. Types of housing allowed in these areas would include medium density townhouse development and potentially small -scale apartment or condominium units. High Density Residential. This land use designation represents a new land use category and directs the highest density residential use proposed within the City of Shorewood. The category makes an allowance for residential densities ranging from eight to 30 units per acre. To accommodate such greater densities, the following zoning alternatives should be considered: A. Amend the City's R -313, Multiple Family Residential District to accommodate residential densities up to 30 units per acre (a maximum of 10 units per acre are presently allowed in the district). B. Utilize PUD, planned unit development to accommodate residential development densities which exceed those allowed in the City's base zoning districts. C. Establish a new "High Density Residential" zoning district which corresponds with the density range identified on the 2040 Land Use Plan. Commercial. This land use category is intended to earmark locations where commercial retail and service uses are desired. Semi - Public. This land use category includes churches, cemeteries and the Xcel property on County Road 19. All areas so designated on the Land Use Plan map are already in existence. Public. This land use classification includes all existing public buildings, schools, parks and recreational facilities in the community. Land Use Plan Changes. For the most part, land use patterns in the City of Shorewood are well - established. In this regard, only two changes to the City's 2030 Land Use Plan map are proposed. These are as follows: 3 1. The guided use of the Minnetonka Country Club site has been changed from "Semi- Public" to "Low Density Residential." 2. Uses located in the north west quadrant of the County Road 19 /Smithtown Road intersection have been changed to reflect the uses directed by the City's Smithtown Crossing Redevelopment Study. Specifically, high density residential use is proposed as a transition between commercial uses at the corner of the intersection and low /medium density uses which are guided to the west. It is the City's intention to implement desired Land Use Plan through zoning. HOUSING PLAN The Housing Plan is intended to identify housing - related issues, desired outcomes and establish a plan to achieve desired outcomes. Specific housing issues addressed in the Housing Plan include the following: Housing Condition and Maintenance. The section of the Housing Plan identifies steps that can be taken to ensure that homes in the City are properly maintained. Included are references to the City's existing rental housing code, available housing renovation programs and an opportunity to adopt a "point of sale" ordinance. Variety of Housing Options. This section of the Housing Plan recognizes that that the City of Shorewood is characterized by large lot single family homes and that limited alternative housing options exist within the City. While the section highlights alternative housing options which presently exist in the City, the section concludes that limited opportunities for greater housing variety are anticipated in the future. Senior Housing. This section documents senior housing facilities which presently exists in the City of Shorewood. Specifically, it is noted that a total of 191 senior housing units exist within the City. Also noted is that an additional 115 senior housing units exist within the Waters of Exce/siorsenior living facility in the adjacent City of Excelsior. Also highlighted in the section are services which are presently available to seniors who reside in the City (Meals on Wheels, Metro Mobility etc.). Affordability. This section defines "affordable housing" and documents a Metropolitan Council determination that an affordable housing need for 48 units exists for the City of Shorewood in the 2021 - 2013 timeframe. Also included in the section is a notation that, in 2016, 17 percent of the City's existing, owner - occupied housing stock (478 units) was considered affordable. 12 Also included in the section is a housing values map which illustrates the location of homes which are above and below the $243,500 affordability threshold. Housing Programs. This section identifies various housing programs which are available to the City of Shorewood to help meet the City's affordable housing requirement. Also, included is a listing of programs which are available to persons with special needs who live in the State of Minnesota. Sub - Regional Cooperation. This section stresses the City of Shorewood's willingness to cooperate with neighboring communities to address housing needs in the Lake Minnetonka area. Also identified are a number of specific cooperative efforts which could be undertaken. RECOMMENDATION The City Council and Planning Commission are being asked to provide specific feedback on the draft Land Use Plan and Housing Plan chapters. This material will be discussed at the forthcoming April 23, 2018 workshop meeting. cc: Greg Lerud Marie Darling Development Framework - Land Use Plan INTRODUCTION Based upon the Existing Land Use Map (2016) included in the Inventory chapter of this document, approximately four percent of the land in Shorewood is undeveloped at this time. This includes land that exists as residential estate property, capable of further subdivision and development. While limited, a number of buildable tracts of land remain on which development can be expected to occur. As this vacant land develops and /or when redevelopment occurs, the City must have a guide for how it will be used. The Land Use Plan is formulated to show logical relationships between a variety of major land use types, including residential, public, semi - public, commercial, and undeveloped open space. The locations of various land uses are a result of applying the general planning concepts and the specific policies contained in the Policy Plan. For the most part, land use patterns in the City are well - established. In this regard, it is the City's intention to implement desired future uses through zoning. In deciding the amount which is desired of each land use type, the following factors have been considered: Community Function. Within the context of the Metropolitan Area, the primary role of Shorewood has been the provision of housing. As such, planning must be geared toward providing a quality living environment with adequate supportive services (i.e. park and recreational facilities, neighborhood convenience commercial areas, etc.). Community Character. Shorewood's current character is primarily single family residential. Shorewood will strive to maintain its character. Housing. Current residential development in Shorewood consists mainly of single family units. Few new housing units are available to young singles and newly married couples. While housing opportunities for the elderly have increased over the past decade, it is believed that a demand for such housing type continues to exist. As land becomes increasingly scarce, market forces often conflict with what would be considered affordable housing by Metropolitan Area standards. Given Shorewood's desire to maintain its low density residential character, the Land Use Plan attempts to preserve the community's present variety of housing stock. Preservation of Open Space. Past planning efforts in the City have tended to assume that any land that is not set aside for wetland protection or parks will ultimately be developed. This does not necessarily need not be the case. This section of the Comprehensive Plan explores means of establishing permanent green space areas such as the use of zoning tools, assisting neighborhoods in purchasing land, obtaining conservation easements, or outright land acquisition by the City. Regional Growth Management Objectives. As indicated in the Policy Plan, an established goal of the City of Shorewood is to satisfy the Metropolitan Council's minimum residential density objectives for "suburban" communities. It is further the Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 1 Development Framework - Land Use Plan intent of the City to promote growth strategies for orderly and efficient land use which are consistent with the Metropolitan Council's Thrive MSP 2040 regional development guide. In this regard, the Metropolitan Council has established certain land use - related expectations for designated "suburban" communities such as the City of Shorewood. These expectations are as follows: • Plan for forecasted population and household growth at overall average densities of at least five units per acre. • Target opportunities for more intensive development near regional transit investments at densities and in a manner articulated in the 2040 Transportation Policy Plan. • Identify areas for redevelopment, particularly areas that are well - served by transportation options and nearby amenities and that contribute to better proximity between jobs and housing. • In collaboration with other regional partners, lead major redevelopment efforts. • Lead detailed land use planning efforts around regional transit stations and other regional investments. • Plan for and program local infrastructure needs (for example, roads, sidewalks, sewer, water, and surface water), including those needed to accommodate future growth and implement local comprehensive plans. Shorewood recognizes its role and responsibility in the attainment of the Metropolitan Council's regional planning objectives. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 2 Development Framework - Land Use Plan CONCEPT PLAN The preceding principles serve as an initial reference guiding community or neighborhood district planning and improvement. The next reference point is the Concept Plan. The Concept Plan forms the basis from which categorical elements of the Comprehensive Plan are developed. The plans for environmental protection, land use, transportation and community facilities will relate to the concepts set forth in this section of the document. The physical development and design concepts are derived from the established goals, objectives and policies and an assessment of the community's function within the context of the Metropolitan Area. The primary role of Shorewood within the Metropolitan Area is to provide housing. The function of most adjacent lakeshore communities is similar, making it somewhat difficult to differentiate between one community and another. In addition to the similarity in basic function, irregular boundaries and geographic configuration compound the difficulty of identifying each individual community. The absence of a "traditional downtown" in Shorewood contributes to a lack of identity. Shorewood has adopted as one of its goals the preservation of the community's residential and natural character. For the purpose of this Plan, a community is defined as an entity possessing a common likeness or character. Since the basic character of Shorewood is that of a residential community, it is essential that each residential neighborhood be maintained as a unit with a sense of continuity and focus. Moreover, as certain supportive services and facilities are required in order for a residential community to function properly, nonresidential uses should be likewise maintained. Thus, proper attention to each constituent part of the community is essential to the establishment of an identity or sense of community. Relative to the function and goals of the community, the overall concept plan for the City of Shorewood is the development of the community on a district or neighborhood basis. While a neighborhood can be considered as much a social entity as a physical area, for planning purposes these neighborhoods or planning districts have been determined based upon natural divisions and /or physical barriers. So, for the purpose of this Plan, the terms "neighborhood" and "planning district" may be used interchangeably. The map on the following page illustrates the City of Shorewood divided (for planning purposes) into twelve individual districts. Plans which are specific to the various planning districts are provided in a latter chapter of this Plan. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 Planning Districts City of Shorewood 2040 Comprehensive Plan Map created: April 2018 Data: NAC, MnDNR, Metropolitan Council J 0.25 0.5 1 Miles N NORTHWEST ASSOCIATED CONSULTANTS. INC. PW 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.231.2555 We hsi te:www.nacplanning.com Development Framework - Land Use Plan In order to enhance or reinforce the sense of community identity in Shorewood, it is essential that constituent planning districts within the City are provided with a sense of continuity and focus. An internal continuity within each district is desirable as each neighborhood should relate well within itself as well as to adjoining neighborhoods and the entire community. Within residential districts, it is proposed that neighborhood parks ranging in size depending on the circumstance serve as the focus or unifying element. This concept is illustrated on the sketch shown on the following page. Furthermore, in terms of overall circulation within each neighborhood district, it is essential that major traffic routes border, and not penetrate, the district. This is necessary from the standpoint of increasing the safety to pedestrians and bicyclists as well as maintaining the environmental quality of the neighborhood. Within the concept of developing the entire community on a unit or district basis, it is important that individual districts not only have an internal continuity, but also that they relate to one another. In order to relate neighborhood districts on a community scale, it is recommended that community focal points be developed (see concept plan sketch). Typically, a community would have one central activity center to serve this purpose. However, given the elongated shape of the City of Shorewood, multiple activity centers are proposed. While these focal points already exist to a certain extent, planning for the community should recognize and attempt to enhance these activity centers. The commercial center should remain easily accessible to all residential districts. The center should also project a unified image with individual components of the center arranged so as to create functional and complementary use relationships. Circulation within the core should be, to the extent possible, largely pedestrian - oriented. In order to increase the continuity of the center, while at the same time increasing pedestrian safety, major traffic flow should be routed around the periphery of the center, penetrating it as little as possible. Finally, commercial property maintenance should represent and reflect the vitality and stability of the entire community. The primary commercial focus for the City has been the shopping center at Lake Linden Drive and Highway 7. More recently, the commercial areas abutting County Road 19 have come to the forefront. The City's County Road 19 Corridor Study emphasizes the issue of identity, going so far as to identify the corner of Smithtown Road and County Road 19 as "Smithtown Crossing." Smithtown Crossing is viewed as a significant entry point into the City and efforts to enhance such identity continue. The Waterford commercial area located south of Highway 7 between Vine Hill Road and Old Market Road is also considered a commercial focal point. Neighborhood and /or convenience type commercial as well as office uses should continue to be encouraged in this area. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 5 Development Framework - Land Use Plan Land Use Transition Mediu Densii Residen Natural Space Buffe Cc Act Public and Institutional Uses Major Traffic Carriers ,w Density esidential Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 Development Framework - Land Use Plan j �TI {�'�711111i1�i1�`' {+�i�l';yl�lf �1 ^h1 \r `�•� {{ 11H11i1••r -- 11 �nr�.. �'i fill *r.,...• u,n1:::E1�' *�' . ;: 4\ \i.li{k'�tr riiwli +lN nnni— 'ri�'y�t� . w `l111111i1i i4�w e. I.ya5:io: ,'. 14 � �lL•.11�• 1.I�fll�ll .. Ell.i:: :�. rr:r7 �2 Ai :•.Gri Community l Points Co mmunity) Medium /High Y oca Q NeighMLVhtood Z7 Density 10 Commercial Focal Points Residential Areas A�tiviiyCenters The City Hall and surrounding City property are considered another community focal point and serve as the civic center for Shorewood. Development of this area should be representative of community attributes and set an example for private development in the community. Renovation of the South Shore Center is currently underway and demonstrates this commitment. Community parks have been developed within the community to serve the recreational needs of the City. Additionally, trails developed as a result of the trail planning process serve to tie the community together. Planned Unit Development (PUD) is a concept that has been incorporated into Shorewood's existing Zoning Ordinance and utilized to a certain extent in the past. Advantages of PUD are as follows: 1. The contractual agreement between the developer and the City gives the City more total control than traditional subdivision; 2. More efficient circulation patterns can be achieved for a large area than piecemeal development might allow; 3. Land use transitions can occur within the site; and 4. Natural features can be preserved by functional clustering of units and /or uses. Applicants for PUD must provide clear and convincing evidence demonstrating that the use of PUD meets the City's criteria and that the use of PUD will provide benefit to the City over traditional zoning requirements. The primary advantage of this zoning tool is that it encourages Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 7 Development Framework - Land Use Plan preservation of natural features, such as wooded areas and wetlands, while still allowing efficient and economically advantageous use of land. Land Use Classifications The following maps illustrate Existing Land Use in Shorewood and the Land Use Plan for the community. The Land Use Plan map shows the proposed juxtaposition of a variety of land use types and densities. These land uses are described in general below. More detailed information and the justification for various land use designations are included in the Planning District chapter that follows the Housing chapter. Undeveloped Open Space. Based upon the assumption that all buildable land in Shorewood will eventually be developed in one fashion or another, this category consists primarily of wetlands. These areas are indicated on the Land Use Plan Map as designated wetlands, and are taken from the official Shorewood wetlands map. These areas are scattered throughout the community and range in size from small potholes to the very large tracts of land found near Howard's Point Road and east of Christmas Lake. Protection of these natural areas is considered important, both in terms of Shorewood's natural drainage system and retention of community aesthetics. As undeveloped land in Shorewood becomes scarcer, there is increasing interest in preserving at least some of it as permanent open space. Given the high cost of remaining land in Shorewood, the focus of the City's efforts should be acquisition of conservation easements versus outright purchase of land. Minimum Density Residential. While the City has recognized a need for providing areas that allow a somewhat higher density than one -acre lots, there is still a market for large lots. The areas indicated on the Land Use Plan map consist of land where such development is already prevalent. Any residential infill development should be compatible with existing neighborhood densities (to retain the character of neighborhoods). This is consistent with past City practices and approved comprehensive plans. Overall density is proposed at .1 to 1 unit per acre. Most of the areas proposed as minimum density are adjacent to natural areas such as lakes or wetlands. In this regard, the City must ensure that any changes in density to surrounding areas have a minimum of impact on the lower intensity use. The following is a summary of the City's single family residential zoning districts and the minimum lot sizes which could be applied within the Minimum Density Residential land use category: R -IA, Single - Family Residential District 40,000 square feet R -1B, Single - Family Residential District 30,000 square feet Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 8 Existing Land Use 2017 City of Shorewood 2040 Comprehensive Plan Legend = Shorewood Boundary Existing Land Use Low Density Residential Medium Density Residential = High Density Residential Platting and construction for the Minnetonka Country Club Development has begun, which inI cud es 142 units of low density residential I" Commercial ® Open Space F Industrial ® Cemetary Public /Institutional E= Vacant Parks J Open Water Map crewed= A a" 2019 Data: NAC, MnDNR, Metropolitan Council & Hennepin County 0 0.25 0.5 1 Miles N NORTHWEST ASSOCIATED CONSULTANTS. INC. FW 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.231.2555 we bsi te:www.nacplanning.com Land Use Plan City of Shorewood 2040 Comprehensive Plan Legend Shorewood Boundary Future Land Use Minimum Density Residential (.1 -1 unit /acre) Low Density Residential (1 -2 units /acre) Low to Medium Density Residential (3 -6 units /acre) Medium Density Residential (6- 8 units /acre) High Density Residential (8 -30 units /acre) - Commercial - Public Semi - Public ROW Open Water Map created: April 2018 Data: NAC, MnDNR, Metropolitan Council & Hennepin County 0 0.25 0.5 1 Miles N NORTHWEST ASSOCIATED CONSULTANTS. INC. 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.231.2555 Wehs i te: www.nacplanning.com Development Framework - Land Use Plan Low Density Residential. This land use category basically consists of single family residential uses at a density of one to two units per acre. Most of the area designated as low density residential on the Land Use Plan is already zoned for this type of development. The following is a summary of the City's single family residential zoning districts and the minimum lot sizes which could be applied within the Low Density Residential land use category: R -IA, Single - Family Residential District 40,000 square feet R -1B, Single - Family Residential District 30,000 square feet R -1C, Single - Family Residential District 20,000 square feet Low to Medium Density Residential. This category of land use is provided to allow residential development at a density of three to six units per acre. This density begins to allow a greater variety of housing types. Small lot single family residential, double bungalows and medium density townhouse development may be permitted in these areas. Residential development at this density is viewed as serving two purposes: 1) proper location creates a transitional area between lower density residential uses and higher intensity uses such as commercial (see concept plan), and 2) applies the concept of locating a greater density of population nearer to activity centers and major traffic carriers. The following is a summary of the City's residential zoning districts and the minimum lot sizes which could be applied within the Low to Medium Density Residential land use category: R -113, Single - Family District R -2A, Single and Two - Family District R -2B, Single and Two - Family District R -2C, Single and Two - Family District R -3A, Multiple Family District R -3B, Multiple Family District 10,000 square feet 20,000/30,000 square feet 15,000/20,000 square feet 10,000 /15,000 square feet 20,000/30,000 square feet 15,000/20,000 square feet Medium Density Residential. This land use category directs residential uses at densities of six to eight units per acre. Types of housing allowed in these areas would include medium density townhouse development and potentially small -scale apartment or condominium units. The areas proposed for medium density residential are relatively limited in area and number so as to have a minimum effect on the overall density of the community. These areas include primarily the properties immediately adjacent to the existing commercial uses. Once again, the concepts of land use transition and higher density near activity centers have been applied. The following is a summary of the City's residential zoning districts and the minimum lot sizes which could be applied within the Medium Density Residential land use category: Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 11 Development Framework - Land Use Plan R -3A, Multiple Family Residential District 20,000/30,000 square feet (dwellings with up to four units) R -3B, Multiple Family Residential District 15,000/20,000 square feet (up to 10 dwelling units per acre) High Density Residential. This land use category represents the highest density residential use proposed within the City of Shorewood. Specifically, the category makes an allowance for residential densities ranging from eight to 30 units per acre. It is anticipated that greater densities could potentially be accommodated via planned unit development for projects which fulfill PUD development objectives and for which adequate services can be provided. This category is applied to the existing "Shorewood Landing" senior housing facility and Shorewood Place Apartments sites. Additionally, two potential redevelopment sites located north of Smithtown Road may be considered for high density residential use in the future. Commercial. This land use category is intended to earmark locations where commercial retail and service uses are desired. As in the case of the City 2030 Comprehensive Plan, it is recommended that commercial uses in Shorewood be confined to cohesive, compact activity centers. Existing commercial development in Shorewood is relatively limited. While Shorewood lacks a traditional downtown commercial center, adjacent commercial centers located in abutting communities supplement the commercial needs of Shorewood residents. Nearby Downtown Excelsior and the Tonka Village commercial strip center located in Tonka Bay are two primary examples. In recognition of such neighboring commercial uses, the demand for additional commercial services in the City of Shorewood may be limited. The only existing commercial uses shown in the western portion of the community are an existing marina on Howard's Point Road and an auto repair operation on Smithtown Road near Eureka Road. Both uses presently exist as lawful non - conforming activities. While the City's marinas are lawful non - conforming uses (which lie within residential zoning districts), they are viewed as community amenities. In this regard, the City will investigate zoning mechanisms which make an allowance for the uses in a manner which is compatible with surrounding residential neighborhoods. Most of the commercial land use in Shorewood is located near the center of the community (along the County Road 19 corridor) and on the east end between Vine Hill Road and Old Market Road. The area near the intersection of Smithtown Road and County Road 19 has been devoted primarily to auto - oriented commercial uses. The shopping center in such area lies within the City of Tonka Bay, but serves as a general commercial area for Shorewood residents as well. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 12 Development Framework - Land Use Plan Commercial development along the County Road 19 corridor through Shorewood has been noted as being prime for redevelopment. The City has expressed a strong preference to see the northwest quadrant of Smithtown Road and County Road 19 redeveloped in a unified manner. This will require the assembly of various parcels and is well suited for planned unit development. The City should be open to a possible mix of residential and commercial uses in order to facilitate a coordinated redevelopment of the area. The auto - oriented strip of commercial uses on the south side of County Road 19, adjacent to Smithtown Crossing, could be redeveloped with more retail or office uses. Shorewood's primary shopping district is located on Highway 7 east of Lake Linden Drive. It is recommended that, if commercial development is proposed, it be located in the shopping center or its immediate vicinity. The area surrounding the shopping center has been designated for low to medium density residential use on the Land Use Plan. The City should however, remain open to proposals for commercial expansion there as well. The area located on the south side of Highway 7, between Vine Hill Road and Old Market Road is primarily neighborhood and convenience -type commercial. No change in use or expansion of the commercial zoning is proposed for this area. To be noted is that the Metropolitan Council's Thrive 2040 regional development guide forecasts an additional 73 jobs in the City by the year 2040 (1,327 in 2014 compared to 1,400 in 2040). With only 39 acres guided for commercial use and no land guided for industrial use, job growth in forthcoming years is expected to be minimal. Considering the lack of available land in the City for new commercial development, it is anticipated that many of the forecasted jobs will be comprised of "work from home" employees. Semi - Public. This land use category includes churches, cemeteries and the Xcel property on County Road 19. All areas so designated on the Land Use Plan map are already in existence. No new areas are proposed for semi - public use nor are any existing semi - public uses proposed to be eliminated. Public. This land use classification includes all existing public buildings, a school, parks and recreational facilities in the community. Since light rail is not anticipated in the foreseeable future, the former Chicago and Northwestern rail right -of -way will continue to be operated by Three Rivers Park District and used for trail purposes. Land Use /Zoning Changes As in the case of the Shorewood's 2030 Land Use Plan, the City's zoning map must be consistent with the proposed 2040 Land Use Plan map. To achieve such consistency, some changes to the zoning map may be necessary to implement the Land Use Plan: Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 13 Development Framework - Land Use Plan Going forward, it is anticipated that the following issues should be addressed through future Zoning Code amendments: High Density Residential Zoning District. As previously indicated, the City's zoning ordinance does not presently include a high density residential zoning district. While the City's R -3B, Multiple Family Residential zoning district makes an allowance for apartment buildings, it establishes a density cap of 10 units per acre. Considering that the "High Density Residential" land use category provided on the City's 2040 Land Use Plan makes reference to a density range of eight to 30 units, the following processing alternatives may wish to be considered to accommodate future high density residential housing projects in the City: 1. Amend the City's R -3B, Multiple Family Residential District to accommodate residential densities up to 30 units per acre. 2. Utilize PUD, planned unit development to accommodate residential development densities which exceed those allowed in the City's base zoning districts. 3. Establish a new "High Density Residential" zoning district which corresponds with the density range identified on the 2040 Land Use Plan. Teardown and Rebuild Regulations. Like many communities throughout the country, Shorewood has become concerned about the construction of very large homes on existing lots in existing neighborhoods. While the City cannot do much about the seemingly increasing market for large homes, it can, through its zoning regulations, attempt to maintain the scale of existing neighborhoods. In this regard, the City should consider incorporating FAR (floor area ratio) into its Zoning Code. This establishes a maximum amount of building area relative to lot area, further addressing the issue of residential scale. Alternative Energy Regulations. While the City's Zoning Code specifically recognizes solar, wind and geothermal (ground source heat pump) energy systems, specific regulations have only been stablished for solar and geothermal energy systems at this point. Thus, consideration of regulations which apply to wind systems may wish to be considered. While the City encourages solar energy systems, it is important that the allowance of such systems be balanced with the community's desire to protect and preserve significant trees. As noted on the Planning Tactics chapter of this Plan, the preservation of significant trees in the community is considered a community priority. Off - Street Parking Requirements. Parking requirements for both non - residential and residential development has been noted as an area of future study. As noted in the Policy Plan, efforts should be made to limit on- street parking and protect adjoining properties from nuisance concerns associated with construction projects. In this regard, it is recommended that staging plans be required for all infill development projects. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 14 Development Framework - Land Use Plan Minimally, such plans should address contractor parking locations, construction material storage, and construction hours. Residential Density Directives As previously indicated, the Metropolitan Council's Thrive MSP 2040 regional development guide stipulates that "suburban" communities such as Shorewood should plan for forecasted population and household growth at overall average densities of at least five units per acre. In this regard, such minimum densities apply to new residential subdivisions or redevelopment projects. To the extent possible, densities of new projects will be sensitive to and compatible with surrounding residential densities. The regional development guide also notes that higher densities are expected in locations with convenient access to transportation corridors and adequate sewer capacity. Given the extent and pattern of existing development in Shorewood, very few opportunities appear to exist to achieve higher residential densities. This is compounded by the fact that only half of the City has is provided municipal water service and that existing streets are not designed for higher traffic volumes that would accompany higher density housing. Also, the City does not have adequate mass transit to support higher residential densities. There are, however, a couple of potential redevelopment locations that could potentially support some medium and /or high density housing. They are as follows: 1. The five -acre Xcel Energy site located south of the Lake Minnetonka LRT regional trail and east of County Road 19, if redeveloped, may be suitable for higher density housing or some sort of mixed use development. It is anticipated that the site could yield 30 to 40 residential units. 2. Similarly, and likely sooner, the northwest quadrant of the intersection of Smithtown Road and County Road 19 (Smithtown Crossing) is viewed as being an excellent redevelopment site. The area is comprised of up to eight individual parcels of land which 6 acres of land (depending upon the extent of land assembly). Again, a mixed -use approach to that area could yield as many as 24 to 40 units, depending on the type of housing proposed. The redevelopment potential of the area was subject to specific study as part of the "Smithtown Crossing Redevelopment Study approved by the City in 2012 (confirm date of approval). To be noted is that the City considers the intersection of Smithtown Road and County Road 19 to be a northern gateway to the City. It is believed that the preceding sites have the potential to attain the average minimum density sought by the Metropolitan Council (5 units per acre), when combined with lower density infill development, over the next several years. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 15 Development Framework - Land Use Plan Land Subdivision Controlling the way land is subdivided goes hand in hand with zoning regulations in ensuring the quality of urban development. As Shorewood's larger tracts become developed, increasing pressure will occur to re- subdivide smaller parcels and land once considered to be marginal. The City's subdivision regulations should periodically be reviewed and updated to better address these situations. Further, all subdivisions of land should be examined for opportunities to preserve open space. The current Subdivision Code requires developers to extend streets and utilities as necessary to accommodate the development of adjacent properties. Also, the Code prohibits private streets except where determined "to be absolutely essential to the enjoyment of property rights." With these rules in mind, the review of all subdivision requests should consider how nearby land might develop in the future. Area planning should be done to demonstrate how specific subdivision requests fit with existing and future development. In all cases, steps should be taken to ensure that new subdivisions do not negatively impact surrounding neighborhoods and street systems. To address cites concerns related to narrow street widths, related on- street parking and sidewalks /trails, it is recommended that the City develop a local street template. More often than not when one landowner is ready to subdivide its property, the adjoining landowner is not. Timing then becomes an obstacle to avoid detrimental, piece -meal development. The City can, in certain instances, overcome such obstacles by carefully crafting development agreements and restrictive covenants that provide for future development. For example, public right -of -way can be required for future streets with provisions that further development will result in street and utility assessments. Also, planned unit development can be used as a tool to accommodate the different timing of various landowners' development requests. As smaller pieces of land are re- subdivided, lot configurations become a problem. Backlot divisions, flag lots and gerrymandered property lines undermine the benefits of building setbacks and disrupt continuity of open spaces. All subdivisions, regardless of size, should adhere to good planning and design principles. To this end, the use of formal platting procedures will be encouraged, while lot splits with metes and bounds descriptions will be approved only in the very simplest of cases. Tree Preservation As previously noted, the preservation of Shorewood's natural features in considered a community priority. With this in mind, it is recommended that a review of the City's existing Tree Preservation and Reforestation Policy should occur periodically to ensure that existing policies adequately reflect desired preservation objectives. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 16 Development Framework - Land Use Plan Presently, the terms and provisions of the Tree Preservation and Reforestation Policy apply to all activities which require the issuance of a Land Disturbance Permit. At some point, consideration may wish to be given to formally incorporating the "policy" provisions into the City's Zoning and Subdivision Codes. Housing Variety /Affordability Shorewood's attempts to provide affordable housing have been thwarted in the past by market forces. The desirability of the area, coupled with scarcity of available land make it very difficult to achieve housing that is considered affordable by Metropolitan Area standards. The City's efforts have been focused on preserving the existing housing stock. For example, limitations have been imposed relative to combining small buildable parcels of land into larger lots. With respect to housing variety, the City may consider updating its current zoning regulations to accommodate and encourage senior housing that includes dependent living such as assisted living and dependent care facilities. The Metropolitan Council has forecast affordable housing needs for all cities and townships within the seven - county Metropolitan Area for the period from 2021 -2030. The housing plan element of local comprehensive plans is required to reflect the allocated portion of the forecasted demand for affordable housing. Shorewood's share of this affordable housing allocation is 48 units. While the areas shown as "vacant" on the Existing Land Use Map are currently available, their development is entirely dependent on the housing market. The areas having the greatest potential to provide affordable housing are the Xcel Energy site and the northwest quadrant of Smithtown crossing (previously mentioned). Of the two sites, redevelopment of the Smithtown Crossing site is considered the most imminent. Programs, initiatives and actions relative to housing are included in the Housing chapter of this Plan. Lake Access In 1988, after considerable study, the City adopted zoning controls that addressed the use of old existing fire lanes within the community. Originally platted as public rights -of -way leading to Lake Minnetonka and Lake William, these lanes have been classified and regulated based upon their historic use. This effort concluded that the fire lanes should not be vacated, but should be preserved for public use. Access to Shorewood's lakes is also provided by a marina and two yacht clubs as described below: Howard's Point Marina. While limited in size, Howard's Point Marina is considered a community amenity. In this regard, it's continuance as a function marina is encouraged. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 17 Development Framework - Land Use Plan Upper Minnetonka Yacht Club. Like Howard's Point Marina, the Upper Lake Minnetonka Yacht Club located on Enchanted Island is considered a community amenity. Shorewood Yacht Club. The City recently relaxed a restriction on the mooring of power boats at the Shorewood Yacht Club, located on the north side of County Road 19, east of Timber Lane. Over the next several years, the City will monitor activity at the Yacht Club to determine if such activities are compatible with surrounding residential uses. While the marina and yacht clubs are lawful non - conforming uses (which lie within residential zoning districts), they are viewed as community amenities. In this regard, they should continue to function as they have in the past but not be expanded due to their residential neighborhood context and limited accessibility. In this regard, the City will investigate zoning mechanisms which make an allowance for the uses in a manner which is compatible with surrounding residential neighborhoods. The Minnesota Department of Natural Resources and the LMCD continue to search for lake access parking spaces adjacent to Lake Minnetonka. The City should cooperate with these agencies to provide small, scattered facilities compatible with nearby land uses. Historic Preservation From a land use perspective, historic structures oftentimes have not only a local but a regional significance as well. In this regard, The Metropolitan Council suggests that 2040 comprehensive plan updates include a plan for the protection of historic sites. The City of Shorewood recognizes that historic assets help to promote community pride and create a sense of community. In this regard, the City of Shorewood should consider the creation of an inventory of historically significant features, landmarks and buildings and evaluate tools for preserving these areas and structures. Where feasible, the City could potentially assist with the acquisition of historically significant sites or structures, in order to provide educational or recreational opportunities. Population and Household Projections Based Upon Land Use Plan The following table shows the acreages of various categories of land use based upon the Existing Land Use Map and the 2040 Land Use Plan. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 18 Development Framework - Land Use Plan Existing and Proposed 2040 Land Uses City of Shorewood Existing Land Use - 2017 Proposed Land Use - 2040 % of Total of Total (% of Land Use Type Acres (% of total Land Use Type Acres total w/o water) to t w/o water) Minimum Density _ _ Minimum Density 1261 24%(38%) Residential Residential Low Density 2127 41%(64%) Low Density 1090 21%(33%) Residential Residential Low to Medium _ _ Low to Medium 359 7%(11%) Density Residential Density Residential Medium Density 137 3%(4%) Medium Density 30 1% (1 %) residential Residential High Density 5 <1% ( <1 %) High Density 9 <1% ( <1 %) Residential Residential Commercial 57 1%(2%) Commercial 39 1% (1 %) Industrial 9 <1% ( <1 %) Industrial - - Public /Institutional 66 1%(2%) Public 123 2%(4%) Parks 95 2%(3%) Semi - Public 43 1% (1 %) Cemetery 18 <1% (1 %) Cemetery - - Open Space/ 238 5%(7%) Open Space/ - Undevelopable Undevelopable ROW 384 7%(11%) ROW 384 7%(12%) Vacant or 202 4%(6%) Vacant or - Undeveloped Undeveloped Excelsior* - - Excelsior* 0.002 <1% ( <1 %) Open Water 1874 36% (n /a) Open Water 1874 36% (n /a) TOTAL 5212 100% TOTAL 5212 100% Source: City of Shorewood, Metropolitan Council, analyzed via GIS * parcel has been incorporated into Excelsior ** Wetlands not included in future land use acreage analysis Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 19 Development Framework - Land Use Plan The amount of land shown as undeveloped is somewhat deceiving in that there is a considerable amount of land included in developed categories that has potential for additional development. For example, an existing home on a three -acre lot could eventually, and often likely will be, re- subdivided into three residential lots. Therefore, the best way to project future land use, and ultimately population, is by comparing the Vacant and Underdeveloped Land map with the 2040 Land Use Plan. The Vacant and Underdeveloped Land map illustrates not only undeveloped land, but also "underdeveloped" land, that is, land already accounted for in a land use category, but which has potential for further development. The Metropolitan Council provides forecasts for population, households, and employment which are shown on the table below. As shown on the table, 2,695 households existed in the City in 2014. The Metropolitan Council forecasts that Shorewood has the potential for 3,000 households (or 305 additional households) by the year 2040. Population Projections, 2010 — 2040 City of Shorewood 2010 Census 2014 (estimate) 2020 Forecast 2030 Forecast 2040 Forecast Population 7,307 7,425 7,400 7,500 7,600 Households 2,658 2,695 2,800 2,910 3,000 Household Size 2.75 2.76 2.64 2.58 2.53 Employment 1,113 1,327 1,300 1,340 1,400 Source: Metropolitan Council The forecasts suggest that Shorewood will add 11 units per year between 2020 and 2030. Between 2030 and 2040, 90 additional units are projected to be added. The Metropolitan Council estimates that the 2014 average household size for Shorewood was 2.76 persons per household. For the seven - county region, the Metropolitan Council projects a decline in household size to 2.46 in 2020 and 2.43 in 2030 and 2040. While this may be true for the region as a whole, the decline in household size in Shorewood is expected to be less considering the City is predominantly comprised of single - family homes. It should be noted that the projections above do not account for redevelopment where several existing lots are combined then re- subdivided to create additional lots. While this requires extraordinary cooperation between property owners, it will increasingly occur as land prices continue to outstrip the value of some of the older housing stock. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 20 Bay Vacant and Undevelopable Land City of Shorewood 2040 Comprehensive Plan 1 Y 1 Map created: April 2018 Legend Data: NAC, MnDNR, Metropolitan Council g & Hennepin County Vacant Land /Open Space /Undevelopable 0 0.25 0.5 1 Parcels over 80,000 Square Feet Miles N oPotential Redevelopment NORTHWEST ASSOCIATED CONSULTANTS, INC. Sites by 2040 FW 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Future Phases of the Minnetonka Counhy Club project are Telephone: 763.231.2555 Website:www.nacplanning.com subject to final plat approval. Development Framework - Land Use Plan CHAPTER SUMMARY The Land Use Chapter sets forth goals, objectives and policies which serve as a guide for how land within the City is to be developed and used. Shorewood has established itself as a predominantly residential community. Any nonresidential activities which are allowed should be located and designed to support a quality living environment. The City's land use goals are as follows: • The City shall establish a pattern of land uses which is consistent with the residential and recreational functions of the community. • The land use plan shall promote harmonious relationships between various land uses (e.g. homes, commercial outlets, churches, parks, schools, etc.) through proper development and locational planning. • Land use regulations shall discourage land uses which are inconsistent with the residential and natural character of the community. The following summary of recommendations is reflective of the City's goals, objectives and policies: 1. Establish planning districts based upon natural divisions and physical barriers. 2. Create and enhance focal points within each planning district or neighborhood. 3. Concentrate commercial development in the following primary locations: A. Smithtown Road / County Road 19 B. Lake Linden Drive / Highway 7 C. South of Highway 7 between Vine Hill Road and Old Market/Road 4. Require commercial development to be consistent with the residential character of the community. 5. Promote the use of sound planning and design principles, including planned unit development. 6. Coordinate the development of small land parcels to ensure that access and utility service comply with City standards. 7. Maintain a Land Use Plan to illustrate the relationship of various densities of residential development and non- residential uses. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 22 Development Framework - Land Use Plan 8. Keep the City's land use controls (e.g. Zoning and Subdivision Ordinances) up to date as a means to implement the Land Use Plan. 9. Identify areas which are best suited for planned unit development. 10. Require formal platting procedures for the subdivision of land, allowing metes and bounds divisions only in the simplest of cases. 11. Establish zoning provisions which are intended to accommodate the continuance of the City's marinas in a manner which is compatible with surrounding neighborhoods. 12. Promote and implement programs for the preservation of open space. Shorewood 2040 Comprehensive Plan Update DRAFT MARCH I7, 2018 23 Development Framework - Housing Plan MCI INTRODUCTION Shorewood is a bedroom community. Less than one percent of the City is devoted to commercial uses. As a predominantly residential community, housing is an important aspect of Shorewood's Comprehensive Plan. Past planning efforts in Shorewood have focused on housing quality and maintaining the character of existing neighborhoods. Residential densities have historically been kept low to minimize the demand for public utilities and services. This has also resulted in low traffic volumes relative to other suburban communities in the Metropolitan Area. Over the past several years, attention has been given to the lack of housing options, particularly to accommodate an increasing elderly population. Shorewood's zoning regulations have been amended to address senior housing. Also, to be noted is that the City of Shorewood is willing to work with other Lake Minnetonka cities to address housing issues from a sub - regional perspective. As in the case of other Development Framework chapters of this Plan, the Housing Plan considers housing - related issues identified in the Planning Tactics chapter and the goals, objectives and policies included in the Policy Plan. HOUSING PLAN Housing Condition and Maintenance While some minor housing maintenance issues exist in the City, housing conditions are not considered significant enough to warrant the preparation and adoption of a maintenance code at this time. Nevertheless, the City may want to consider the adoption of a "point of sale" ordinance in the future. This type of regulation attempts to identify certain deficiencies in housing at the time of sale, putting buyers on notice of problems. The objective is to create an incentive for property sellers to improve maintenance conditions prior to the sale. Often more noticeable than the condition of structures is the outside maintenance of property. Shorewood has historically addressed problem sites on a complaint basis. Although this "neighborhood standard" method has worked reasonably well, it is recommended that local nuisance ordinances be reviewed and periodically updated. The City's annual spring clean -up event is also viewed as an effective tool for encouraging residents to maintain their properties. In 1993, the City adopted a rental housing code that presently affects approximately 300 rental units in the City. This code establishes standards and a licensing procedure for all types of rental dwellings. The program has been successful in that a number of rental units were improved. The City has received no tenant complaints since the adoption of the code. Continuation of this effort is recommended. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 1 Housing Plan MCI For many years, Shorewood has allocated a portion of its Community Development Block Grant (CDBG) funds for rehabilitation of substandard housing. The CDBG program is administered by Hennepin County. Since the early 1990's, the City has had seven households which received a total of $90,000 to fund home repairs for persons in need of assistance. Not only is it suggested that the CDBG program be continued, it is recommended that it and other assistance programs be better publicized on the City's website. Other housing/renovation programs which are available to the City include the following: • Minnesota Fix Up Fund. Through this statewide program, funds are available to City residents that offer loans at below market interest rates to homeowners. The fix up fund was established to improve the basic livability and /or energy efficiency of the borrower's home. Eligible project included interior or exterior improvements, general remodeling or maintenance items. • Minnesota Housing Rehabilitation Loan Program. This Statewide program assists low income homeowners in financing basic home improvements that directly affect the safety, habitability, energy efficiency or accessibility of their homes. Eligible improvements include, but are not limited to, electrical wiring, furnace replacement and plumbing repairs. Variety of Housing Options Shorewood's housing stock consists primarily of large lot, single - family homes. While the City's development regulations have historically encouraged this type of housing, a strong market for larger single - family homes has had an even greater influence on housing type in Shorewood. The City has attempted to introduce some variety in lot size, housing type, and value in the past. For example, in the mid 1980's, the Near Mountain development in the southeast area of the City was approved which called for a mixture of single - family homes on lots ranging from one quarter to three quarters of an acre in size. The project also included quadraminiums and townhouses in the original plan. Citing a very strong market for single - family homes, the developer ultimately requested that the quadraminiums and townhouses be eliminated from the project, resulting in 70 fewer units by the time it was completed. Similarly, houses in the Covington Vine Ridge neighborhood were built larger and were more expensive than originally suggested by the developer, this despite quarter acre lot sizes. Some variety of housing types was achieved in the 1990's. A number of two- family dwellings were built in the Waterford area and on Lawtonka Drive, west of Timber Lane. The Seasons senior housing project offers low maintenance twinhomes for residents who qualify under Federal Fair Housing Act guidelines. Shorewood Ponds provides "step down" single - family, attached cottages in four -unit buildings as an option to seniors 62 years of age and older. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 2 Housing Plan MCI More recently, the City approved the Minnetonka Country Club housing project which involved the redevelopment of the former 117 -acre Minnetonka Country Club golf course site located south of Smithtown Road and west of Country Club Drive. The project was approved in 2016 and calls for the construction of 142 single family residential homes upon the property. Of the 142 homes, 103 are considered traditional and 39 are targeted toward empty nesters. Lot sizes within the project range from 7,200 square feet to 45, 780 square feet. Although these projects have increased the variety of housing types in Shorewood to some degree, housing values remain high relative to Metropolitan Area standards, even though higher densities have been allowed. Housing values in Shorewood have risen steadily over the years. In 2014, the median housing value for owner - occupied units was $391,600. In 2015, housing values had risen to $401,400 and by 2017, the median value increased to $428,000. Given the limited amount of land remaining for development in the City, the relatively high cost of utilities and often soil correction, the high value of land in the Lake Minnetonka area, this trend is anticipated to continue. Future opportunities for increasing housing variety in Shorewood are viewed as limited. Consequently, maintenance of the existing mixture of housing will be important. In this regard the City's policy of keeping house sizes proportionate to lot size should continue to be implemented. This simply means that smaller lots will accommodate smaller houses. It is acknowledged that the City of Shorewood, within its municipal boundaries, is not necessarily consistent with regional housing goals. When the City of Shorewood is viewed as part of a larger South Lake Minnetonka community, a relatively traditional model town emerges. Excelsior serves as the downtown core, with multiple - family housing and small, urban lots. Shorewood, Tonka Bay and Deephaven exist as surrounding suburbs with larger lots and lower densities. Senior Housing In the early 1990's, the City recognized that there was shortage of housing options in Shorewood and that senior citizens who were no longer able remain in their single - family homes, were not able to relocate to a senior housing facility within the Shorewood. In 1991, a study was prepared for the City which demonstrated that a market existed for senior housing in the Lake Minnetonka area. In response to an increasing elderly population and recognizing the importance of keeping senior citizens in the community, the City set a goal to promote the development of safe, healthy and affordable housing options for seniors. In conjunction with the referenced study, Shorewood updated its zoning regulations to address senior housing. It was determined that the impact of senior housing on streets, parks and utility services was less than that of other types of residential development. Consequently, senior housing is now allowed to be built at somewhat higher densities than otherwise provided by existing zoning. The City also reduced the park dedication fees and sewer connection charges for senior housing in order to minimize development costs. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 3 Housing Plan MCI The City then actively sought developers of senior housing to build in Shorewood. Response was limited, however, due to several factors: 1) limited funding resources; 2) relatively high land costs in the area; 3) unavailability of City water; and 4) conflict with many residents' desire to retain a low - density character throughout the City. Nevertheless, the following senior housing projects presently exist in the City: • The Seasons (24 units) • Shorewood Ponds (62 units) • Shorewood Landing (105 units) In total, 191 senior housing units are provided within the preceding facilities. This accounts for approximately seven percent of the City's total housing units. It is important to note that, as part of a recent cooperative effort, land which previously straddled a municipal boundary shared by the Cities of Shorewood and Excelsior was recently conveyed to the City of Excelsior to accommodate The Waters of Excelsior senior housing project. The Waters of Excelsior project includes 115 units and, due its adjacency to the City of Shorewood, is expected to supplement the community's senior housing needs. In administering the current zoning regulations, a number of issues have arisen. For example, there is some question, given land and development costs, as to the feasibility of developing senior housing on land zoned for one -acre lots (R-IA zoning district). Also, the densities allowed in the R -1C district are higher than what is practical to accommodate the "step- down ", single -level housing that seems to be favored by local seniors. Finally, the site analysis used to identify sites suitable for senior housing is considerably outdated. Some land previously considered as suitable has since been developed. New sites for affordable housing will be considered as they become available. Many seniors wish to stay in their homes as long as possible. Their ability to do so is enhanced by services provided within the community. For example, programs such as "Meals on Wheels" are administered through Senior Community Services. Transit services such as "Metro Mobility" and "Dial -a- Ride" are also available. The City will continue to work with surrounding communities and various agencies to ensure that these services remain available to seniors. Affordability The City of Shorewood recognizes its responsibility to provide opportunities for its share of the region's need for low and moderate - income housing. Affordable housing provides housing options for a diverse population. As noted in the Inventory chapter of this Plan, the Metropolitan Council defines the terms "affordable housing" and "low income" as follows: Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 4 Housing Plan l Affordable Housing. Housing is "affordable" for low and moderate- income households when they pay no more than 30 percent ofgross household income on housing. Low Income. A household is considered "low income" if it makes 80% or less of the median income of the seven - county region. In regard to rental units, the definition of an affordable unit varies depending upon the number of bedrooms in the unit. Like owner - occupied housing, the affordability limit for renter - occupied housing is 80 percent of the area median income (AMI). For rental units, affordability is based upon the number of bedrooms in the unit. For the year 2017, the Metropolitan Council's affordability rates were as follows: Rental Housing Affordability Limits, 2017 City of Shorewood Number of Bedrooms 80 %AMI Efficiency $1,265 1 Bedroom $1,356 2 Bedroom $1,627 3 Bedroom $1,880 4 Bedroom $2,097 Source: Metropolitan Council According to the Metropolitan Council, the the median rent paid in the City of Shorewood in 2016 was $1,139. The Metropolitan Council's Thrive MSP 2040 Plan (Housing Element) assigns a low and moderate - income housing need for the City of Shorewood for the decade of 2021 through 2030. Specifically, the Council has identified a need for 48 new affordable units within this timeframe. Of these new units, 23 need to be affordable to households earning at or below 30 percent of the area median income, 16 need to be affordable to households earning 31 to 50 percent of the area medium income and 9 need to be affordable to households earning 51 to 80 percent of the area median income. These needs are summarized in the table below: Affordable Housing Need Allocation 2021 -2030 City of Shorewood Percent of Area Medium Income Housing Units At or Below 30% AMI 23 31% to 50% AMI 16 51% to 80% AMI 9 Total Units Needed 48 AMI = Area Median Income Source: Metropolitan Council Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 5 Housing Plan ng With the preceding Metropolitan Council directives in mind, it is worthwhile to understand the number of affordable housing units which presently exist in the City. For 2017, the Metropolitan Council has determined that homes with a purchase price of $243,500 or less are considered "affordable" in the seven - county metropolitan area. According to the Metropolitan Council, 2,770 housing units existed in the City in 2016. Of these units, 2,527 were owner - occupied. Of these, 478 units had a value of $243,500 or less. As a result, 17 percent of the City's existing owner - occupied housing stock at that time was considered "affordable." Between 2008 and 2016, the City added 105 owner - occupied housing units and 105 renter - occupied units. While the owner - occupied units were added at a relatively consistent rate over this time period, all 105 renter - occupied units were added in 2016. Within this time period, none of the added housing units (owner and renter - occupied) were considered affordable. Housing values within the City are depicted on the map on the following page. The map specifically identifies locations of single family homes which exceed the affordable housing threshold ($243,500) and locations of homes which are considered affordable. To be noted is that the City of Shorewood routinely encounters teardowns of lower value single family homes and replacement with new, higher value homes. This activity results in a reduction in the number of affordable single- family homes in the City. Specific teardown / replacement data to be added Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 6 Estimated Market Value of Single Family Homes City of Shorewood 2040 Comprehensive Plan Estimated Market Value $243,500 or Less $243,501 - $350,000 - $350,001 - $450,000 - Over $450,000 Non - Residential Parcels Lakes Shorewood Boundary Map created: March 2018 Data: NAC, MnDNR, Metropolitan Council & Hennepin County 0 0.25 0.5 1 Miles N NORTHWEST ASSOCIATED CONSULTANTS. INC. 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.231.2555 W e hs i te: www.nacplanning.com Housing Plan Ing The City of Shorewood understands the intent of the Metropolitan Council's affording housing allocation (48 units between 2021 and 2030) and supports the idea of providing alternative housing choices in the community. There are however, conditions which are unique to the Shorewood which raise questions related to the ability of the community to realistically reach the noted affordable housing objectives. These include the following: A limited amount of land exists within the City for new development (vacant parcels and redevelopment sites). 2. Current market conditions and land values in the City are such that new rental housing would likely demand higher rents. 3. The City of Shorewood presently lacks convenient access to mass transit. This condition is not expected to change in forthcoming years. It is expected that the lack of such serve will decrease the demand for affordable housing in the City. 4. Presently, the City Shorewood has a limited amount of commercial land (57 acres). With no plans to increase the amount of land devoted to such uses, minimal employment opportunities exist for persons to live and work in the City. Housing Programs The Metropolitan Council supports affordable housing in the region through various programs and initiatives. The following are programs that are available to the City of Shorewood which may be pursued to meet the Metropolitan Council's affordable housing requirement (48 units between 2021 and 2030): Metropolitan Housing and Redevelopment Authority (Metro HRA) 2. Family Affordable Housing Programs (FAHP) 3. Livable Communities Act Programs: Livable Communities Demonstration Account (LCDA). Supports innovative development and redevelopment that links housing, jobs, and services and demonstrates efficient and cost - effective use of land and infrastructure. Local Housing Incentives Account (LHIAJ Produces and preserves affordable housing choices for low to moderate incomes. Tax Base Revitalization Account (TBRA). Cleans up contaminated sites for redevelopment that creates jobs and /or produces affordable housing. 4. Hennepin County Programs: Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 m Housing Plan 16 • Community Development Block Grant Funds (CDBG) • HOME Investment partnership program (HOME) • Affordable Housing Incentive Fund (AHIF) 5. Project Based Voucher Program (PBA) 6. Other housing tools as identified in the Metropolitan Council's Local Planning Handbook. Unlike many other Lake Minnetonka area communities, the City of Shorewood does not participate in the Metropolitan Council's Livable Communities Program. The program, established via the authority of the 1995 Livable Communities Act, is intended to provide incentives for addressing various issues facing the seven - county Metropolitan Area. Metropolitan Area municipalities which elect to participate in the Livable Communities Program are eligible to compete for funding for community development activities. Considering Shorewood's character and lack of available building sites, the City's exclusion from the Livable Communities Program is understood. However, an investigation into possible City benefits and participation and may wish to be investigated. In addition to housing programs which may be used to meet the referenced affordable housing requirement, it should be noted that programs are also available for persons with special housing needs in the State of Minnesota. These programs include the following: 1. Adult Foster Care - Housing for one to five individuals with disabilities and seniors who each live in their own bedroom and get some services from an on -site caregiver. Adult Foster Care is for people who need some daily care, but do not need skilled nursing care. 2. Housing with Services - Housing for seniors and people with disabilities that includes services and is licensed by the Minnesota Department of Health. Housing with Services establishments can include individual apartments. 3. Public Housing - Rental housing for people with low income which is owned and managed by public housing authorities. Public housing comes in many sizes and types, from single - family houses to large apartment buildings. 4. Permanent Supportive Housing - Site -based housing or subsidies for people who have experienced homelessness and have disabilities. Anyone living in Permanent Supportive Housing should have access to a comprehensive package of supports that help tenants sustain housing stability and meet life goals. 5. Veterans Housing Programs - Programs and agencies help veterans find and pay for housing. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 9 Housing Plan C 6. Housing Opportunities for Persons with AIDS - Housing Opportunities for Persons helps people living with HIV /AIDS pay for housing. 7. Minnesota Supplemental Aid Housing Assistance Program - Provides housing cost assistance for people with disabilities (persons who pay more than 40 percent of their income toward housing costs). Sub - Regional Cooperation Just as Shorewood pools its Community Development Block Grant funds into the Hennepin County program for housing rehabilitation assistance, it is believed that addressing housing issues in a cooperative manner with other Lake Minnetonka communities would be worthwhile. In this regard, the City of Shorewood is willing to participate in in such cooperative efforts with other Lake Minnetonka area cities. Specific cooperative efforts could include the following: 1. Continue to work with the Metropolitan Council Transit Organization (MCTO) to improve transit in the Lake Minnetonka area 2. Provide education programs for residents and property owners on renter /landlord rights, homebuyer education, how -to seminars for home maintenance, etc. 3. Coordinate support services available through community religious organizations such as day care, family mentoring, food shelves, donation programs, etc. with those households in the LMACC sub - region most in need of assistance. CHAPTER SUMMARY As a predominantly residential community, housing and issues related to housing are an important aspect of Shorewood's Comprehensive Plan. Following are the City's goals relative to housing: • Provide safe, healthy and quality housing that respects the natural environment of the community. • Maintain the present variety of housing options and provide sufficient housing types, sizes and values to meet the needs of varying segments of the population. • Maintain and strengthen, where necessary, the character of individual neighborhoods within the community. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 10 Housing Plan MCI • Address local and sub - regional housing issues through cooperative efforts with neighboring communities through organizations such as the Lake Minnetonka Area Cooperating Cities. • The City shall promote safe, healthy and affordable housing options. Following are recommendations intended to achieve these goals: 1. Review local development regulations, and amend as necessary, to promote a balanced housing supply. 2. As opportunities present themselves, attempts shall be made to satisfy the Metropolitan Council's affordable housing directives (48 new units between 2021 and 2030). 3. Identify locations for alternative residential housing types and densities. 4. Make available to residents and property owners educational programs on such topics as renter /landlord rights, home buying, home maintenance, etc. 5. Continue the City's rental housing license program to maintain current standards for rental housing. 6. Consider the adoption of a "point of sale" ordinance to address housing maintenance issues. 7. Promote private sector maintenance, rehabilitation and redevelopment of existing properties through improved communication of available community services and financial assistance programs. 8. Continue to allow accessory apartments to allow seniors to remain in their single family homes. 9. Encourage housing types that are designed to appeal to senior citizens to allow existing residents to downsize and remain in the City of Shorewood. 10. Programs for housing structural condition maintenance shall be pursued to protect the health and safety of residents and ensure stability of neighborhoods within the community. 11. Maintenance problems and code violations shall be addressed to improve and strengthen the character of neighborhoods and avoid spreading the impact of deterioration. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 11 Housing Plan MCI 12. A proactive, rather than reactive, approach to code enforcement shall be undertaken as a means of maintaining the City's existing housing stock. 13. Substandard housing units shall be rehabilitated whenever possible. 14. Work with Hennepin County to administer programs which provide financial assistance for the rehabilitation of substandard housing units within the community (as funding sources and market conditions permit). 15. Residential redevelopment of substandard housing within the community shall be encouraged whenever compatible with adjacent land uses and economically feasible. 16. Appropriate regulations shall be established for development upon lawful nonconforming lots. 17. Staging plans shall be required for all residential infill projects. Minimally, such plans shall address contractor parking locations, construction material storage and construction hours. 18. Low density residential neighborhoods within the community shall be protected from encroachment or intrusion of incompatible higher density residential land uses, as well as nonresidential use categories, through adequate buffering and separation. 19. The character of individual residential neighborhoods shall be respected and maintained. 20. Residential developments shall be protected from and located away from sources of adverse environmental impacts including noise, air and visual pollution. 21. Home occupations, commercial and other nonresidential activities shall be minimized and are not to be evident within residential neighborhoods. 22. Accessory buildings within the community shall be of a compatible design and size to maintain a residential character. These buildings shall be limited exclusively to residential use related activities. 23. Outdoor storage is to be minimized. In those instances when it is acceptable, it shall be conducted in an orderly, confined and limited fashion which is consistent with City Code requirements. 24. Violations of property maintenance standards that infringe upon residential neighborhood quality, pose public health and safety problems and threaten neighboring property values shall be aggressively eliminated. 25. Owner occupied housing shall be encouraged. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 12 Housing Plan C 26. Shorewood's housing needs, as well as the needs of the overall Lake Minnetonka sub- region, shall be addressed by providing and maintaining a variety of housing types, styles and values. 27. The emergence of a polarizing age distribution within the Lake Minnetonka sub - region is to be prevented through the provision of diverse housing that reflects life -cycle stages and economic considerations. 28. A range of property values and rent rates within the Lake Minnetonka sub - regional housing stock shall be encouraged as a means of diversifying the population and sustaining individual communities in the area. 29. Adequate living space and fully utilized housing are to be encouraged and promoted through the provision of a range of choices among housing types and values throughout the Lake Minnetonka sub - region. 30. The development of housing for special needs populations (e.g., elderly, physically challenged) within the Lake Minnetonka sub - region shall be supported by financial assistance programs that may be available as funding sources and market conditions allow. 31. In consideration of new or redeveloped housing projects, the affordable housing directives of the Metropolitan Council shall be given due attention. Shorewood 2040 Comprehensive Plan Update DRAFTAPRIL 17, 2018 13