Loading...
PC-06-29-10 CITY OF SHOREWOOD COUNCIL CHAMBERS PLANNING COMMISSION MEETING 5755 COUNTRY CLUB ROAD TUESDAY, 29 JUNE 2010 7:00 P.M. MINUTES CALL TO ORDER Vice-Chair Arnst called the meeting to order at 7:02 P.M. ROLL CALL Present: Vice-Chair Arnst; Commissioners Davis, Hasek, Hutchins, Ruoff, and Vilett; Planning Director Nielsen; Administrator Heck; Council Liaison Turgeon; and Councilmember Woodruff Absent: Chair Geng APPROVAL OF AGENDA Davis moved, Vilett seconded, to revise the Agenda by deferring Item No. 2. Discuss Capital Improvements Program to a later date so that it can be given full attention. Motion passed 6/0. APPROVAL OF MINUTES  May 18, 2010 Hasek moved, Vilett seconded, Approving the Planning Commission Meeting Minutes of May 18, 2010 as presented. Motion passed 6/0. 1. SMITHTOWN CROSSING – DEVELOPER PANEL DISCUSSION Vice-Chair Arnst welcomed the panel of land-development professionals in attendance at the invitation of the Planning Commission. They were asked to introduce themselves and provide some background information. Colleen Carey, President, The Cornerstone Group, said her company does real estate development and started out doing affordable housing. It moved onto broader development projects mainly residential, including multi-family apartments, condos, and some retail and mixed-use. Terry McKinley, President, Cooperative Housing Resources and Senior Cooperative Foundation, said he works with Dennis Johnson, who will provide an overview of their company, and he will answer any questions that may arise. Dennis Johnson, said they are actually lenders, rather than a developer. The company is a HUD approved lender and their business is strictly financing senior housing cooperatives or consulting with developers about senior co-ops. He said there are thousands of senior housing developments in the country, but only 95 cooperatives. The smallest senior co-op is 10 units, and the largest is over 300 units. The occupant pays 35 - 50% of the total unit value to move in and pays a monthly fee for the maintenance costs. Tom Wartman, Landform, Inc., said he is a long-time local resident who has developed both commercial and residential projects over the years. Most recently, has done a mixed-use development in Glen Lake, and is currently working on a senior housing project He said he believes the three-story height restriction in Shorewood will cause limitations for the site. PLANNING COMMISSION MINUTES 29 June 2010 Page 2 of 5 Frank Dunbar, Dunbar Development, said he has many projects around the Twin Cities area, and owns and manages apartment complexes. He said they have done public, government buildings, and are currently finishing a large student-housing development. Stacey Kvilvang, Ehlers and Associates, said she spends much of her time working on redevelopment for cities and assisting them in negotiations with developers. Vice-Chair Arnst asked the panel what type of project would they see working on the Smithtown Crossing site? Tom Wartman said he looked at the site about 18 months ago, and said he thinks it needs to be a coordinated mix of multifamily, independent and assisted senior housing, with service-oriented retail. He said the area provides an opportunity to fill that gap, but needs city assistance such as TIF at minimum. He said the City of Minnetonka actually made financial contribution to some redevelopment projects. Frank Dunbar said the first thing to look at is the market and know who you are appealing to. He said we know there are 35 million people over 65 years of age and over 80 million between 45 to 65 years. Those are the seniors that will need housing. He said he defines seniors into three groups: the “go-go”, “slow-go”, and “no-go” seniors. The go-go is an average 74 years old single female, and is the typical person that needs senior housing. The slow-go is about 85 years old and needs assisted housing. A no-go is in a nursing home. He said he doesn’t see a large younger population in the suburbs; they want to be closer to downtown. And the renters have a lot of toys, which is not conducive to apartment living. Therefore, open multi-family units probably doesn’t have a market in Shorewood. There is more of a senior housing market, for the baby boomers. Colleen Carey said she agrees with Wartman and Dunbar, but there is an opportunity that hasn’t been met yet in the senior market. She said most people she has talked to in that age group have said the product they want hasn’t been developed yet. She said it needs a location that has some action and amenities. The opportunity that exists for cities is to focus on the infrastructure like parks, trails, connection to activities; the things that create a sense of place, and let the developer deal with the bricks and mortar. She said she has also been looking at the multi-family rental market, and is finding that land prices preclude affordable rental housing. Commissioner Hasek said he recently read an article stating that seniors want to stay in their homes longer, and asked the panel for their thoughts about that. Carey said she believes it is because the development professionals haven’t created the product that seniors really want, and they are waiting for that to happen. There isn’t anything on the market that would make them want to leave their homes. Terry McKinley said senior co-ops serve a segment of the senior population in a way that traditional senior housing does not. The seniors are still owners, they are involved in the management, and there are community activities. He said co-ops provide housing where people are able to age in place, and live longer vital lives because they are active and involved. He said he asked one of their clients to evaluate the site, and thought it could support around 30 or more units, with underground parking and 3 stories. Dunbar said he doesn’t think market-rate apartments would succeed. He said even though the product needs to be changed, the customer is the senior. Vice Chair Arnst asked for examples of place-making. Colleen Carey said what people want is to be able to be part of the action and watch other people doing things. A mixture of uses, some of which extend into the evening, can provide some of that. PLANNING COMMISSION MINUTES 29 June 2010 Page 3 of 5 Frank Dunbar cited a rental complex overlooking Turtle’s Bar and Grill in Shakopee as an action-watching place that keeps leases full. Dennis Johnson said they did a survey of their 6,000 co-op unit residents and received 2600 responses which showed that 60% of that group were couples, and about two-thirds of them came from within a 4-mile radius of where they were living. Commissioner Davis commented that, even though there may not be the product out there that people really want, there are still many seniors that must sell their home due to the economy and downsize for financial reasons. Dunbar responded that the problem is that they can’t sell their homes because of the market, also because they mentally can’t sell it. They have put an emotional price on their homes that just won’t sell. Vice Chair Arnst said she has heard reference to four tools that could be used to encourage developers: P.U.D., T.I.F., change the height restrictions, and city cash contribution. She asked if there were any other suggestions. Dunbar said most of the senior housing they do is government owned. A true non-profit ownership. They don’t pay real estate taxes at the same rate as a private development. This drops the rental rate by about $250 per month for the customer. The city puts their full faith and credit behind the senior project just to bring the costs down. Commissioner Vilett asked how parking issues are handled. Dunbar said senior housing doesn’t need much parking. They have one car which is parked underground. Commissioner Davis asked, in regard to mixed uses, are there any particular types of commercial businesses that are doing well right now? Tom Wartman said there are businesses that are starting to see some turn around, although the banks are still being tight with lending. Commercial development proposals must be realistic, but developers can’t afford to wait months for the approval process. Flexibility is important, and the 40-foot height restriction will be very limiting to a good architectural design. He said the City could be more proactive by picking up some of the properties as they become available so a developer can afford to something good. Stacy Kvilvang stated that it is important to plan ahead and be prepared to be patient and wait for the right time for things to happen. She said it is best to work with a small pool of developers, but does not advocate RFPs. Holding these informal discussions is a good way to get to know what’s best. Arnst asked if there is anything that’s being missed. Carey suggested getting RFQs, setting the bar high, and don’t settle for a pretty picture. Dunbar said you want someone with experience and a long track record. They will bring in a good finance team. Administrator Heck asked for the panel’s opinion about the site being good for mixed use. Wartman said it’s a tough market for retail right now, and you couldn’t put just anything there, but it definitely needs a gateway. Hasek asked how many acres are needed for cooperative housing. McKinley said they have built 56 units in three stories on two acres, with parking underground. Dunbar said he has done 52 units on less than one acre in five stories. He said ponding can be an issue though. PLANNING COMMISSION MINUTES 29 June 2010 Page 4 of 5 Kvilvang suggested it would be more beneficial to make site visits by taking a field trip. Commissioner Hutchins asked how you balance a 4-5 story building with the surrounding area being open and low. Dunbar said the developer’s perspective is concerned about the occupant’s experience living inside the building, and the City is concerned about people looking at the outside of the building. Carey said the actual number of stories don’t matter as much as how it actually looks. Hasek asked if an RFQ would include a market analysis. Kvilvang said an analysis would probably not be part of an RFQ since the project is probably 5 years out. McKinley said if it were for a cooperative, an analysis would be part of an RFQ. Director Nielsen asked what the holdup is for creating the “product” that seniors really want. Carey said it’s the add-ons that people aren’t really expecting from typical housing. Administrator Heck said it’s also the non-brick and mortar amenities, the maintenance free building, trails and parks, etc. McKinley said the co-ops are the answer for many of the seniors who do not otherwise want to leave their home. He suggested that the Commission be sure to include them on their field trip visits. Vice Chair Arnst thanked the panel for their time and generous contribution of their knowledge and expertise. After departure of the panelists, the Commission continued discussion of Smithtown Crossing. Vilett clarified that commercial services are different than retail commercial. Nielsen said those terms need to be defined. Vilett referenced many places she is familiar with that are comprised of “boutique”-style shops that are very successful and busy. The Commission discussed the idea of acquiring available parcels within the study area. Administrator Heck said in a dilapidated area with multiple properties, when a parcel goes up for sale and the city has money available it should buy it. If someone else buys one of the parcels and puts something on it, it kills any kind of cohesive development. If the city owns all or most of the parcels, that makes it more feasible for a developer to do something with it, and the city controls the land. He said the down side of the City owning property is it’s taken off the tax rolls, and the City becomes a landlord which is not a good thing. Arnst said a major drawback for senior housing is the inability to walk anywhere within Shorewood due to the lack of pedestrian safety. 2. DISCUSS CAPITAL IMPROVEMENTS PROGRAM (C.I.P.) This item was deferred to a later date under Approval of Agenda. 3. MATTERS FROM THE FLOOR None. PLANNING COMMISSION MINUTES 29 June 2010 Page 5 of 5 4. NEW BUSINESS Vice-Chair Arnst shared copies of a booklet entitled Housing in America – The Next Decade. 5. DRAFT NEXT MEETING AGENDA th The Agenda for the July 20 meeting will include discussion of the Capital Improvements Program. 6. REPORTS • Liaison to Council None. • SLUC None. • Other Director Nielsen gave an update of the Co. Rd. 19 crossing-upgrade. 7. ADJOURNMENT Vilett moved, Davis seconded, Adjourning the Planning Commission Meeting of June 29, 2010 at 9:35 P.M. Motion passed 6/0. RESPECTFULLY SUBMITTED, Patti Helgesen, Recorder