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Planning Commission Agenda 08-06-2020 (Joint Meeting)AGENDA SPECIAL/JOINT MEETING - MONTICELLO PLANNING COMMISSION AND CITY COUNCIL Tuesday, August 6th, 2019 - 4:45 p.m. Mississippi Room, Monticello Community Center Commissioners: Sam Murdoff, John Alstad, Marc Simpson, Alison Zimpfer, Paul Konsor City Council: Brian Stumpf, Jim Davidson, Bill Fair, Charlotte Gabler, Lloyd Hilgart Staff: Angela Schumann, Steve Grittman (NAC), Jacob Thunander, Ron Hackenmueller 1. Call to Order 2. Concept Stage Planned Unit Development proposal for a 4 story, 80 unit residential multi-family apartment complex Applicant: Kent Kj ellberg 3 . Adj ournment ������li�d� ��r�����1��� 4����Oi�4A���dh ���t 4150 Olson Memorial Highway, Ste. 320, Golden Valley, MN 55422 Telephone: 763.957.1100 Website: www.nacplanning.com MEMORANDUM TO: Angela Schumann Mayor Stumpf and Monticello City Council Monticello Planning Commission FROM: Stephen Grittman DATE: July 29, 2019 RE: Monticello — Kjellberg/Firm Ground Multi Family Project— Concept PUD Review NAC FILE NO: 191.07 — 19.12 PLANNING CASE NO: PROPERTY ID: 155-221-100-0010 Application and Proiect Description. This memorandum reviews the elements of a proposed concept plan for a Planned Unit Development on the parcel bound by School Boulevard and commercial buildings to the north, townhomes to the east, Walmart to the west and a vacant lot/power lines (owned by Walmart) to the south. The parcel currently has some development upon it. An insurance company has a portion of the northeast corner of the parcel of approximately .8 acres, and a veterinary clinic occupies a separate parcel in the northwest corner. The total PUD (including both commercial lots) is approximately 4.4 acres in size. Access to future development on the property is provided from School Boulevard via an internal private drive. The proposed project consists of an 80 unit multi-family building in the south portion of the property. The site plan shows one access point from School Boulevard that would be shared between the apartment complex, the insurance company and the veterinary hospital to minimize road connections. The proposal is made by Kent Kjellberg, the property owner, and Tom Wasmoen, representing architect Firm Ground. The property is currently zoned B-4 Regional Business District. It was originally developed to be a multi-building commercial PUD, expecting a future commercial building to occupy the south portion of the site. However, the developers are asking for the parcel to be rezoned to PUD, Planned Unit Development District, utilizing the R-4, Medium-High Residence District as the baseline zoning for comparative purposes. Approximately two-thirds of an acre (out of the 3.6 acres owned by the applicants) will continue to be used for commercial purposes within the amended PUD for the existing insurance company. As stated, the housing portion of the project consists of a general market apartment building of 80 units total. The apartment complex will have a variety of studio, one bedroom and two bedroom options. The other portion of this project consists of parking and open space, along with a redesign of the existing parking for the adjacent businesses. The applicant is proposing to remove the current parking stalls and modify them to have a common central drive area between the two parking spaces for a more direct access route to the apartment building. Parking for the adjoining businesses would consist of 35 stalls for the office building and 30 stalls for the pet hospital. Parking requirements for the two commercial sites result in some limited concerns. The original plan for the PUD provided parking for office space at a rate of one space per 200 square feet of net floor space. The office building is approximately 10,600 square feet in floor area above grade with a 2,760 square foot basement that is utilized for various activities. At one parking space per 300 square feet, the office building would be expected to require 35 spaces plus an additional 9 spaces for the basement use. The existing conditions show 44 parking spaces along the front of the office building. For the veterinary clinic, the ordinance requires one space per 250 square feet. The building has approximately 6,960 square feet above grade, plus a mezzanine and some basement space. The requirement for space above grade would be approximately 31 spaces. The allotted 30 spaces are close to this standard, and would reasonably account for non-productive floor space such as mechanical rooms and restrooms. The multi-family housing project would provide 82 uncovered, on grade parking stalls, 26 indoor, at-grade parking stalls on the west side of the building and 74 underground, below grade parking stalls on the east side of the building. The city's zoning ordinance states a density for the R-4 district of 10-25 units per acre. With the parcel size of approximately 3.6 acres, the residential density is approximately 22 units per acre. However, because a portion of this parcel also provides land for an existing commercial building and its associated parking, it is estimated that only 2.8 acres of land are solely for R-4 purposes (apartment building, greenspace, parking and including the entire access driveway). With this size in mind, the residential density is at least 28 units per acre, and would be more if the area of the main driveway is not included in the residential density. For the project to proceed, there are a series of City approvals that will be required: o PUD Concept Review (the subject of this report). The project requires a PUD as it proposes to develop a combination of separate land parcels and a mix of land uses that will share access to School Boulevard. In addition, certain aspects of site design may require flexibility. Further approvals would include the following: o Comprehensive Land Use Plan amendment reguiding the proposed residential parcel from "Places to Shop" to "Places to Live"; o Preliminary and Final Plats incorporating the residential and commercial parcels, dedicating the appropriate right of way, and subdividing the property for the proposed commercial and residential uses; o Rezoning to R-4, Medium and High Density Residential District; The current proposal is for a PUD Concept Plan review, which is not a formal zoning application, but is intended to provide the applicant an opportunity to get City feedback on a potential development proposal prior to more formal zoning review and the extensive supporting materials that such reviews require. The Planning Commission and City Council will have the opportunity to review the project, ask questions of the proposer, and provide comment as to the issues and elements raised by the project. The neighboring property owners have been notified of the meeting, but it is not a formal public hearing. This memorandum provides an overview of the project and will serve as an outline for the discussion. No formal approval or denial is offered for a Concept Review. However, it is vital that Planning Commission and City Council members engage in a frank and open discussion of the project benefits and potential issues. The Concept Review process is most valuable when the applicants have the opportunity to understand how the City is likely to look at the project and the potential issues it presents. In this way, the subsequent land use and development details can be more finely tuned to address City policy elements. PUD Concept Review Criteria. The first stage consists of an informal Concept Plan review which is separate from the formal PUD application which will follow the Concept Review step. The Ordinance identifies the purpose of Planned Unit Development as follows: (1) Purpose and Intent The purpose of the Planned Unit Development (PUD) zoning district is to provide greater flexibility in the development of neighborhoods and non- residential areas in order to maximize public values and achieve more creative development outcomes while remaining economically viable and 2 marketable. This is achieved by undertaking a process that results in a development outcome exceeding that which is typically achievable through the conventional zoning district. The City reserves the right to deny the PUD rezoning and direct the developer to re-apply under the standard applicable zoning district. PUD Concept reviews are to proceed as follows: (a) PUD Concept Proposal Prior to submitting formal development stage PUD, preliminary plat (as applicable) and rezoning applications for the proposed development, the applicant may, at its option, prepare an informal concept plan and present it to the Planning Commission and City Council at a concurrent work session, as scheduled by the Community Development Department. The purpose of the Concept Proposal is to: 1. Provide preliminary feedback on the concept plan in collaboration between the applicant, general public, Planning Commission, and City Council; 2. Provide a forum for public comment on the PUD prior to a requirement for extensive engineering and other plans. 3. Provide a forum to identify potential issues and benefits of the proposal which can be addressed at succeeding stages of PUD design and review. The intent of Concept Proposal review is to consider the general acceptability of the proposed land use, and identify potential issues that may guide the City's later consideration of a full PUD application. The City Council and Planning Commission meet in joint session to provide feedback to the developer, and may include an opportunity for informal public comment as they deem appropriate. Staff Preliminarv Comments and Issues. For this proposal, the primary considerations evident at this point in the process include the following elements: Land Use. As stated above, the proposed land use is currently zoned B-4 Regional Business District, and guided "Places to Shop" (Commercial). The property is a component of what was originally envisioned to provide land for commercial buildings in addition to the two that have been constructed. The applicants propose the parcel to be reguided to accommodate a mixed commercial/residential category that would support a multiple family development. Monticello's code states that B-4 property can be rezoned if it is not in a prime commercial area. This aspect is the key issue for City officials. As the south portion of the property does not have direct visibility to a major roadway (School Boulevard 3 in this case), does the City consider this site an important component of its commercial land inventory? If not, multiple family residential may be considered a reasonable use given the mix of other uses in the immediate area, including townhomes to the east, and mobile home park to the south. While the real estate market had significantly slowed during the last several years, commercial development continued in some measure, occurring almost exclusively in more highly exposed areas. The proposed site would appear to be a reasonable candidate for non-commercial uses. City officials need to determine if they consider this property non-prime commercial area in order to be amended. Parking and Circulation. While the initial concept plan appears to provide adequate parking for all uses, there is a concern over circulation in and around the entry area for the residential building. Access is indirect at best, and delivery vehicles would likely have difficulty navigating the many turns necessary to get access to the entry and/or service locations on the site. Moreover, the circuitous driveway path through the residential parking lot reduces the visual impression of the use — it would make a visitor feel as if the building were merely tucked behind a somewhat randomly organized parking lot. A recommended change would be to eliminate the parking directly in front of the building entrance and create a more unified landscaped space — a circular drive would be one possibility. Parking lost to this amenity would need to relocated to the sides of the project. However, this change would place the building as the principal focus of the site, rather than the parking lot. One of the objectives of the R-4 district was to reduce the visual impact of large multi-family parking lots along the main access road. In this case, because the main access road is a significant distance from the building, recreating this visual open space amenity should be addressed — the concept noted above is one suggestion to accomplish this objective. iii. Building Height and Architecture. The applicants have provided preliminary details relating to building design at this stage. Staff would note that the R-4 zoning district encourages certain specific elements related to roof line, building materials, and overall design. With regard to roofline, the R-4 code requires 5:12 pitch roof and to avoid a single continuous ridgeline. The applicant is asking for flexibility with the roof line, as they are not proposing a 5:12 roof. The applicant is proposing a flat roof to achieve the aesthetic they have envisioned. This design has become a common architectural style for multiple family projects, and can be accommodated through the PUD. Indeed, staff has discussed amending this requirement to avoid the need for PUD flexibility. 0 The proposed building is 4 stories, which would be expected to rise to approximately 50 feet in height. On the west side of the building, the at-grade floor includes parking garage, increasing covered parking (in addition to the underground parking level) to the quantities noted above, consistent with the intent of the R-4 District standards. The central portion of the building would include common areas, and the east portion of the first level would contain apartment units. Building materials are conceptually illustrated in this submission, but should eventually be specified to include a mixture of masonry and composition siding, rather than vinyl. In addition, PUD design is expected to exceed the basic district standards in exchange for the flexibility offered under the PUD process. iv. Site Planning. A preliminary site plan is provided as a part of the PUD Concept plan. Staff notes that specific requirements for open space and extensive setback regulations apply in the R-4 District. If the applicants propose to vary from the base zoning standards, they should provide rationale that supports the variation, and note the additional amenities or elements of the site plan that balance the proposed flexibility. a. The zoning requirements for the setback standards need to be taken into consideration. The setback standards are as follows: 40 feet, corner side 30 feet, interior side 40 feet, rear 100 feet, front Clear open space from Clear open space from ROW - 60 feet, property line - 40 feet. b. The site plan does not identify the setbacks. Estimating from the scale on the site plan, all setbacks appear to be consistent with the required amount. As noted, however, the front setback is somewhat misleading as it applies to this site, given the mixed-use nature of the overall project site. v. Open Space. Based on the site plan and concept narrative provided by the applicant, the amount of open space was not detailed, although the plan shows open common space in the courtyard on the south side of the building, and the site abuts a large powerline corridor that will remain open, although this area has limited use, and is owned by the adjoining Walmart property. To meet the zoning standards, the applicant must propose at least 500 square feet of common open space per dwelling unit. The high amount of impervious surface (driveways, parking, sidewalks and principal buildings) appears to limit usable green space available to future residents of the project. Maximizing the utility and attractiveness of the open space on the site would be an important design consideration as the project moves 5 forward, both as a component of residential environment and to meet the City's intended amenities requirement under a PUD option. a. Trails. The addition of trails on the property will require further review. Trail locations will be important internal to the project, as well as along the major roadways serving the project. Various trail connections should be considered. The applicant should explore working with the townhome property owner to the east to provide a cross connection to their trail which extends out to the sidewalk on School Boulevard and east to Edmonson Avenue. Connecting the multi-family residential apartment to the trail along the main roadway of School Boulevard should be the first priority since it has a major connection to the rest of the city and the nearby parks. Another connection to consider would be a short trail connecting the property to Walmart's parking lot for convenience of using the city's commercial amenities. The third possible connection to contemplate would be a connection to the south which would join to Kjellberg Court and then to another trail that connects to 89t" street, which leads to another nearby park, Featherstone Park. This southern option would need to be explored as it would go under power lines. b. Sidewalks. The applicant's proposed total sidewalk area was not mentioned. The site plan shows sidewalks leading from the parking area to the front of the principal building and two other sidewalks leading to each side of the principal building. c. Landscaping and Buffering. The project will be subject to a buffer requirement between the commercial and residential properties, requiring specific additional setbacks and landscaping to screen and buffer the differing land uses. This requirement is likely to result in additional setback and landscaping beyond that shown on the Concept plan. Landscaping is recommended along the west property line to screen from the adjacent Walmart, as well as along the southern property line to provide a buffer to the power lines. vi. The City Engineer has provided additional comment per the attached letter dated July 24t", 2019. Summary. As noted, the Planning Commission and City Council provide comment and feedback to the developer at the Concept Review level. City officials should identify any areas of concern that would require amendment to avoid the potential for eventual denial, as well as any elements of the concept that the City would find essential for eventual approval. 0 Specific comment should address the following potential issues: 1. Overall Land Use — is the site appropriate to change from commercial to residential? 2. Density — Calculation of density on the available site is complicated, given the mixed uses and shared aspect of the main driveway. 3. Building Design — Are there aspects of the concept sketches that warrant comment at this point? 4. Parking Supply, and the access locations of the covered parking garages — are they functional? How does parking supply impact the commercial uses in the PUD? 5. Building Materials and Architecture — Preliminary at this point. 6. Landscaping, green space, setbacks, and other site plan improvements — How adequately does the plan provide access to trails and open space? 7. Circulation and Access — Consider conceptual changes to the front entry drives to refocus on the building, rather than on parking. 8. Internal private street design and circulation. 9. Engineering comments and recommendations. The notes listed above acknowledge that a significant amount of detail will be added as the project proceeds to a more advanced stage of review. SUPPORTING DATA A. Aerial Image Subject Site B. Concept Narrative C. Concept Site Plan D. Concept Elevations E. City Engineer's Letter F. Official Zoning Map G. Excerpts, R-4 Zoning Ordinance H. Excerpts, Comprehensive Plan — Land Use I. 2017 Housing Study 7 o � .�. . - _ . � " ,. '�� � ... � � r~� ` � � h y ' S�f�`i� . * .r�' � . .. � �� � .- C •�• � , __. � �y ���Gi�� � ' %' r i.r� � :� '� � O '-�i„"�� `�..�,: • � 4r..' , � � � � Y � � s ," � . �� r -;:: � �^ _ � - r � � *� �'� f ..,., Ss-. � '.. � � �P . .. � '1 ``s r N p , ' i� , � . �-;� � . . � - . . r .-�r . � �c,+ , r �:'. s� fi� � 4 + � f A�, �.. s . .• �, .:: , � � 1, ��* {w� ` •'�" { } � ,' I � � i`J. r { U � �^. � �i� C+ �+ yy� , � ,�. I C' � 13 3�.`J'd3 � v W" � � r�'v. s�"v' .a. .�' ` � �� ,� � � � .�� a.� e� 6' -, � � �,���.� ., � �.. ;. .� � � ,. � , r. , , � : ': � � ' � IF�a� t; s�'}.. � �� �i �� �u�7�� �i'" � ',..�!. � r� r � � L � �, u7-. u7 , U . . . . . . • • � . . . . , � . 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P'� � N �{ `" `- N , w` � `; ^_ � � ��� = �. i�,. � ". � � � .. � � ,S '��• `�� �,- r .--~-' ' f'`_ � � . � � Z�`.�`��� _ .. . ` �:.� _ M, , ��,^ �� � �„� ,_ :�.. ..� C� FIRM GROUN� � ���� ,:,��_ �uv��� r�.;��.� �. �r��� ���� ����m���.�. ���� � .����� .���;���� July 8, 2019 City of Monticello Community Development Attn: Angela Schumann 505 Walnut Street, Suite 1 Monticello, MN 55362 Dear Angela, For your review are Firm Ground's application items for the PUD Concept Proposal of the property described in the attached Land Use Application form. The checklist item description is copied in bold with Firm Ground's response written below. • A listing of contact information including name(s), address(es) and phone number(s) of: the owner of record, authorized agents or representatives, engineer, surveyor, and any other relevant associates Owner of record: Kirk Kjellberg 1000 Kjellberg's Park Monticello, MN 55362 Phone: 763-295-2931 Email: Kjellber�spark(cr�,�mail.com Owner's Development Consultant: Christopher Haas 2680 Sneling Ave N, Suite 100 Roseville, MN 55113 Phone: 612-810-4227 Email: c.haas(a�kwcommercial.com Owner's representative (Architect) Tom Wasmoen 275 Market Street, Suite 368 Minneapolis, MN 55405 Phone: 612-819-183 5 Email: twasmoen(cr�,firm�roundae.com Once we move to the second PUD phase, a Civil Engineer/surveyor will be added to the proj ect team. Firm Ground Architects & Engineers Inc. 612.819.1835 I 275 Market Street, Suite 368 info@firmgroundae.cor Minneapolis, Minnesota 55405 www.firmgroundae.cor ho z;.� �� FIRM GROUN� A listing of the following site data: Address, current zoning, parcel size in acres and square feet and current legal description(s); o Address: site does not have a street address; it is located on School Boulevard immediately east of the Walmart located at 9320 Cedar Street. The Parcel ID is 155221000010 o Current zoning: B-4 o Parcel size: 152,151.33 square feet, 3.49 acres o Current partial legal description: Sect-14 Twp-121 Range-025 MONTICELLO BUSINESS CENTER 6TH OUTLOT A • A narrative explaining the applicant's proposed objectives for the PUD amendment, and public values that the applicant believes may be achieved by the project The applicant seeks to build an 80-unit apartment building that offers a modern, comfortable and convenient lifestyle for renters in Monticello. With the consistently full occupancy of the nearby Monticello Crossings, we believe that another multi family development of this scale would be a benefit to the community as another distinctive living option. We are proposing a mix of studios, 1 bedroom, and 2-bedroom units. Most units will either be 1 bedroom or 2 bedrooms. Main access to the building will occur at the main entrance under a covered drop off that faces north. This is accessed from a driveway from School Boulevard to the north that also serves the existing businesses in the parcels on the interior borders of the property in question. The site access between these two parcels (which are also owned by Mr. Kjellberg) and the proposed development will be designed to maximize ease of access and efficiency. Ramp access to the below grade parking level is located on the eastern half of the building while covered on grade parking will be provided in the western wing on the first floor. Further surface parking will also be provided to meet requirements. Pedestrian pathways will be provided across the site to connect all the entrances as well as outdoor amenity space. This site design will facilitate a distinguished and attractive living destination while also accommodating and strengthening the adjacent businesses. The design intent of the new building is to apply the latest technology, materials and trends in lifestyle housing in an appealing combination that will capture a certain timelessness and be fresh and attractive for years to come. Materials will be selected for their durability, constructability and textural appeal. A combination of brick, glass, and fiber cement siding will create an interesting fa�ade and low Firm Ground Architects & Engineers Inc. 275 Market Street, Suite 368 Minneapolis, Minnesota 55405 612.819.1835 info@firmgroundae. cor www.firmgroundae. cor �� FIRM GROUN� maintenance exterior finishes. The proposed material palette is both contemporary and dignified. Dark grey brick and rhythmic white paneling are accented by areas of the warmer sandstone-textured fiber cement and sleek vertical ribbed fiber cement. It is important to create a dynamic and balanced fa�ade with the way in which the materials accent each other. 80 units in the proj ect allow us to dedicate space to a club room and lounge for social activities to support the creation of a sense of community. These rooms will provide comfy and cozy space, filled with natural light and a hearth to create a focal point and sense of place. The mailboxes will be incorporated into the area to further create opportunities for spontaneous social interactions and tables, chairs and a coffee server will be located in this area to give people a reason to tarry in the space a bit longer and enj oy the company of their neighbors. Exterior space will include a patio with built in BBQ grills, trellis or other space defining elements that make the patio both attractive and useful. This space is envisioned as another bustling social gathering space for residents and friends to unwind and relax with one another. With an attractive contemporary building and units design, this proposed project has the potential to be a popular addition to Monticello's renter housing market. We believe it will enhance Monticello's businesses by attracting younger renters and families to the community who seek modern housing amenities in a growing and charming community near the Twin Cities. • A listing of general information including the number of proposed residential units, commercial and industrial land uses by category of use, public use areas including a description of proposed use, and any other land use proposed as part of the PUD 0 80 proposed residential uses o The sole proposed use for this site is the 80 unit apartment building with associated resident amenities and parking. We are also proposing re-calibrating parking for the existing businesses on the north part of the land to work concurrently with our site circulation and access. • Calculation of the proposed density of the project and the potential density under standard zoning regulations, including both gross density and net density, accounting for Firm Ground Architects & Engineers Inc. 275 Market Street, Suite 368 Minneapolis, Minnesota 55405 612.819.1835 info@firmgroundae. cor www.firmgroundae. cor �� FIRM GROUN� developable and undevelopable land. Undevelopable land shall include all wetlands, floodplains, sensitive ecological areas identified in the Natural Resource Inventory, slopes greater than 18%, poor soils and areas of concentrated woodlands o While a survey or soil borings has not yet been completed at this stage, we do not anticipate any undevelopable land on the parcel o The parcel area of 3.49 acres provides a unit density of 22.92 units/acre, which is under the R-4 maximum density of 25 • Outline a conceptual development schedule indicating the approximate date when construction of the project, or stages of the same, can be expected to begin and be completed (including the proposed phasing of construction of public improvements and recreational and common space areas) o Ideally, we'd be looking for a late fall (2019) or early spring (2020) construction start assuming final City approvals happen at the September 23 City Council meeting. Typically for a proj ect of this size, we' d expect a 12 month construction timeframe. • A listing of the areas of flexibility from the standard zoning sought through the use of PUD design. o Following the R-4 zoning standards, we believe we will meet building setback, design, parking and density standards. o We would be seeking flexibility regarding roof design- it is our understanding that a pitched 5:12 roof is required. To achieve the aesthetic we have envisioned, we would ask for flexibility to have a flat roof with parapets. o Once we engage with a civil engineer to prepare a formal site plan, we may seek flexibility for parking setbacks depending on what the City will require. Firm Ground Architects & Engineers Inc. 612.819.1835 I 275 Market Street, Suite 368 info@firmgroundae.cor Minneapolis, Minnesota 55405 www.firmgroundae.cor ho z;.� Z O ��w e ��= p�s0= z � �� � �� - �<= e ` o. _ �a � --a vS v_ �.. � �--w� Em: � �c €awo E� n� =an�, Z O a� o O'_ z � �� � �� - �<= e ` o. _ �a — ..i �� ^� ^ _^ - � ��.��. -- —_ —�_ --- �—� - :�;�,.�� .. o� � � � � � � � � n = - 1 =a1 �� 1 � � t ■ .�.� V�i V�i i�., �.,i �J nF i � ■�■ �I � r. i�., �., i�� i�F �.�.,. �I � IL`J � �J L'JI � - + � �i � ,� ..:�� I�I � � _ _ 1 � mo � � m° � n o � 9�� o�e � ❑❑ o — a o 0 0 � � e � o�r z��" ��� � � � �m � �� .e ,oe .e ,oe .e ,oe � Z O a� o O�� z � �� � �� - �<= e ` o. _ �a ,IO ,I� ��: 1�: � � � � ■ � - � — � -- — � - - = � = _ -'� � � 1 � . -- -- -- �''���1'� , . �Ik FA ���, � ��- ,� ��� ,� �:,. , � � �� �P ,� <} � wr .�}�; :#� QN L Z� A � � O� � w/ � IL� V N U �N ;;� � U :.�} � � I :4 — s� ;� I �., , � , � .si � y;��„; �� � ti�`r �� �� � , �,�� �' '��:. � ��~- I � :r`.i "� ! �i ^' . �,'; �' � � ��� ', ;��x, z , r � �,�' �" � � ' � � f r�t-, `/. v . �'. � r S✓�f � S / i 7`� ij '�l� ����f�_. . '/ i /.'.;.. +� � j � �� ; � �l % . I. �, 1 � 0 U c� z W m � � z � � J 0 a Q w z z � � W � z w > a a z w X 0 � ws k� July 24, 2019 Matt Leonard City Engineer/Public Works Director City of Monticello 505 Walnut Street, Suite 1 Monticello, MN 55362 Re: Kjellberg Firm Ground Apartments Concept Stage PUD Plan Review City Project No. 2019-027 WSB Project No. R-014468-000 Dear Mr. Leonard: We have reviewed the conceptual site plan received on July 8, 2019 and offer the following comments: The site plan shows the access from School Blvd shifted to the west. It is recommended to not shift the access and utilize the existing access location in order to maintain the existing right turn and left turn lane configurations from School Blvd and to maintain adequate access spacing along School Blvd. Shifting the access to the west would require construction modifications of the existing concrete medians on School Blvd and would shorten the eastbound right turn lane length. These modifications don't appear to be feasible and would be at the applicants cost. 2. The applicant shall provide an estimate of the average daily traffic and peak hour traffic generated from the entire site as developed. 3. A minimum 6-foot green area should be provided between curb line of the new access drive to the modified curb lines of the parking areas/drive aisles serving the existing buildings. 4. Dimensions of the access road, parking areas and drive aisles should be provided. 5. The proposed sidewalk from the proposed building should extend along the new access drive to the existing sidewalk along School Blvd. 6. The proposed development is part of a Common Plan of Development as defined by the MPCA and 1 or more acres of impervious surface is proposed, therefore permanent stormwater treatment is required. Volume control/water quality (i.e. infiltration), including pre-treatment measures, is required priorto discharging to this pond. The infiltration basin shall be designed to accommodate the entire existing and proposed drainage that enters the existing storm sewer outfall for the site. 7. The site drains to an existing pond to the south via an existing storm sewer that was constructed with the initial phase of the development. The capacity of the existing pond and any needed improvements is being reviewed with the City's water resource K:\014468-000\Admin\Docs\Ltr-m-leonard Kellberg-072419.docx Kjellberg Firm Ground Apartments July 24, 2019 Page 2 management plan update. Any additional improvements needed will be further reviewed when the applicant submits civil plans and a stormwater management report with the plat submittal for the project. The easement limits of the pond will also be reviewed. 8. An NPDES/SDS Construction Storm Water General Permit (CSWGP) shall be provided with the grading permit or with the building permit application for review, prior to construction commencing. 9. A utility plan shall be provided showing the existing and proposed sanitary sewer, watermain and storm sewer serving the site. 10. Sanitary sewer and watermain mains are extended to the existing developed area. These mains should be extended to serve proposed site. The watermain should be looped within site. 11. The building department will review required fire hydrant location(s) and emergency vehicle access/circulation. 12. Underground parking is proposed forthe site. A positive drainage outlet is recommended such that the garage area will not be at risk of frequent flooding. Once a grading plan is developed, this will be reviewed. 13. The City's Wellhead Protection Plan identifies this site within the "low vulnerability" DWSMA, but it is outside of the Emergency Response Area (ERA), therefore infiltration is allowed. Residential uses typically do not pose a risk of potential contaminants and will be reviewed at the time of proposed development submittal. 14. A revised preliminary and final plat shall be submitted. The proposed site is currently platted as Outlot A, Monticello Business Center 6th Addition plat, which includes a blanket drainage and utility easement over the Outlot. The easements will need to be vacated with required easements forthe utilities dedicated on the final plat. 15. A more detailed review of the development plans will be completed when the applicant submits complete civil plans and a stormwater management report. Please have the applicant provide a written response addressing the comments above. Please give me a call at 612-360-1304 if you have any questions or comments regarding this letter. Sincerely, WSB . � ,�', �ss� Shibani K. Bisson, PE Senior Project Manager �. � _:at"EIQIIII �:�,a;k � �,£ �,eI��M6 , `II�I � — ����� � _ .' . _-- ` _ _.�- �� �u �� ti , �� --�v ,-- _ _ �l �• �r /, _'�' . — �° �"�� �i „� � ■ �:.� �� +�� ; � . ���L �� � �. _ � k�� Ililr� �°a� I�I f _ �, — � -- = --_ � � � � car�r o� � � rl l � �tC�� Prepared for City of Monticello 505 Walnut Street Monticello, MN 55362 (763) 295-2711 Project No. 2596-34 � WSB � Acknowledgements We would like to thank everyone who participated in the development of the Monticello Housing Study, including the Monticello City staff, Wright County Assessor's Office and the various realtors in the community. Completed in coordination with: � � WSB & Associates, Inc. l��age � � � Montic;ello WSB PURPOSE AND SCOPE OF RESEARCH Housing is an important component of all communities. Housing quality, availability, affordability and diversity enhances the quality of life, supports economic development, and contributes to a community's sense of place. WSB & Associates, Inc. was engaged by the City of Monticello to conduct a Housing Study to assess the housing market conditions and provide recommendations for housing needs within the City of Monticello. The market analysis focused on the housing needs within the City of Monticello including market rate, subsidized, and move- up housing for various age categories including owner-occupied and renter occupied housing options. Monticello's Housing Market Study ("Study") should be used as a reference to guide planning efforts, financial initiatives and strategies, and provide direction to the City regarding the approach it should take; the types of housing opportunities the City should promote, and the roles in providing those opportunities. This Study is intended to be flexible to meet unforeseen housing needs and future land use decisions. It should be noted that the findings presented in this report should not be used to determine the market feasibility of any single development or project; rather, it is designed to be a broad analysis of the entire Monticello housing market and is intended to guide planning efforts, especially as they relate to future land use designations. The Study contains data from both primary and secondary research. Primary research includes interviews with local officials, and the real estate community. Secondary research data includes data from the US Census, American Community Survey, Department of Employment and Economic Development (DEED), Wright County, Business Analyst', and other local planning agencies. Secondary research is always used as a basis for analysis and is carefully reviewed along with other factors that may impact projections. All the information on pending developments was gathered by WSB & Associates, Inc. and is accurate to the best of our knowledge. INVENTORY AND ANALYSIS �� i�-����:� r��r� c�r��������r���Tl�� This section looks at the demographic characteristics that underlie the need for various types of housing in Monticello. The U.S. Census and Business Analyst served as the primary sources forthe demographic overview. While population projections are an effective planning tool when used correctly, their accuracy is dependent on several factors including assumptions for birth rates, death rates, migration, and economic conditions. Assumptions are based on past trends and the best information available at the time, but assumptions do not always remain true, and unexpected changes can occur. Therefore, Monticello should use the population projections presented in this Market Study as a general guide and not as an absolute certainty. Moreover, the City should periodically review and update the population projections based upon new conditions. WSB & Associates, Inc. determined the Study Area to be used as comparison points. The area was based on geographic and man-made boundaries, community orientation, our knowledge of the area, and the dictates of the proposaL Considering these factors, we determined a Study Area to include the cities of Monticello, Big Lake, Buffalo, Elk River, Becker, and Rogers. In addition, Wright County and the State ' Business Analyst is a data processing service that uses ESRI technology, U.S. Census data, and American Community Survey data. 2I ��c��� � � � MOTItIC;el10 WSB of Minnesota are also included as part of the analysis in the report. Though outside the scope of this report, it is important to note that surrounding communities' populations and available housing stock may affect Monticello's housing market. Figure 1: City of Monticello, MN �, � ,.,,�..� � HISTORIC P(�PLILATION CHANG� � The total population of Monticello has grown substantially since the 1980s. Between 1980 and 2010, the City has grown by 597% adding 10,929 new residents, accounting for 18% of the study areas total growth. During the last U.S. Census period (2000-2010), Monticello saw a 38% growth with the addition of 4,891 new residents. Please refer to Table 1 A for further details. 3���age � � � Montic;ello WSB � Place 1980 Monticello N 1,830 Big Lake 2,210 Buffalo 4,560 Elk River 6,785 Becker 601 Rogers 652 Study Area 16,638 Total Wright County 58,681 Minnesota 3,806,10 3 Source: U.S. Census Bureau Table 1-A: POPULATION CHANGE 1980-2010 US Census 1990 2000 4,941 7,868 3,113 6,063 6,856 10,097 11,143 16,447 902 2,673 698 3,588 27,653 46,736 2010 12,759 10,060 15,453 22,974 4,538 11,197 76,981 1980-1990 No. % 3,111 170.0% 903 40.9% 2,296 50.4% 4,358 64.2% 301 50.1 % 46 7.1 % 11,015 66.2% Change 1990-2000 2000-2010 No. % No. % 2,927 59.2% 4,891 62.2% 2,950 94.8% 3,997 65.9% 3,241 47.3% 5,356 53.0% 5,304 47.6% 6,527 39.7% 1,771 196.3% 1,865 69.8% 2,890 414.0% 7,609 212.1 % 19,083 69.0% 30,245 64.7% 68,710 89,986 124,700 10,029 17.10% 21,276 30.90% 34,714 38.50 % 4,075,907 4,375,09 4,919,47 269,804 7.10% 299,19 7.30% 544,38 12.40 9 9 2 0 % Monticello's age distribution has remained relatively consistent from 2000 to 2010 with the largest age group being 25 to 34 in both census periods. The percentage of people 19 and younger decreased from 33.7% to 32.8% while the percentage of those 65 and older increased from 8.9% to 9.8%. Keeping with national trends, the median age increased in Monticello from 2000 to 2010 from 29.8 to 31.6. Please refer to Table 2-A for further details. Total Population Under 5 years 5 to 9 years 10 to 14 years 15 to 19 years 20 to 24 years 25 to 34 years 35 to 44 years 45 to 54 years 55 to 59 years 60 to 64 years 65 to 74 years 75 to 84 years 85 years and over Median age (years) Source: U.S. Census Bureau Table 2-A: MONTICELLO HISTORIC AGE DEMOGRAPHICS 2000-2010 Number 7,868 799 725 610 511 547 1,571 1,215 719 271 202 316 260 122 29.8 2000 � � � % 100.0 10.2 9.2 7.8 6.5 7 20 15.4 9.1 3.4 2.6 4 3.3 1.6 (X) ■ � � � Number 12759 1292 1101 969 823 731 2255 1991 1505 490 395 584 394 229 31.4 2010 � % 100.0 10.1 8.6 7.6 6.5 5.7 17.7 15.6 11.8 7.0 3.1 5.0 3.0 1.8 (X) 4��'age � �� Monticello WSB AA. dl. ��� �i � dl. � � .FJ �� AA. I.@���'�v A_i b> i�l �..IA_.e� l. l.�'4..^r"R.�.Fd ��i.r�.�. .:. 4� Population projections are an effective planning tool when used correctly. They are based upon assumptions for birth rates, death rates, migration, and economic conditions. In 2010, the U.S. Census reported Monticello's population as 12,759. Monticello's estimated population was 13,568 in 2016, and is projected to increase to 14,383 in 2021. Again, it is impossible to know with certainty what Monticello's future population will be, but it is reasonable to believe that any future population increases resulting from new housing development or redevelopment in Monticello will be offset (to some extent) by population trends resulting from an aging population and diminishing household size. However, based on available data, Monticello's population will likely see a continued increase through year 202 L It is anticipated that Monticello will account for 18.8% of the Study Area's population growth between 2016 and 202 L Monticello's expected rate of population change is roughly equal to the County and double the State. Refer to Table 1-B: Projected Population Change: 2010-2021 for additional information. Place Monticello Big Lake Buffalo Elk River Becker Rogers Study Area Total 2010 12,759 10,060 15,453 22,974 4,538 11,197 76,981 TABLE 1-B: PROJECTED POPULATION CHANGE: 2010-2021 Change U.S. Census Bureau 2010-2016 2016 2021 No. % 13,568 14,383 809 6.3% 10,629 11,080 569 5.7% 16,093 16,699 640 4.1 % 23,984 24,891 1,010 4.4% 4,858 5,253 320 7.1 % 12,675 13,844 1,478 13.2% 81,807 86,150 4,826 6.3% No. 815 451 606 907 395 1,169 4,343 2016-2021 Wright County 124,700 132,801 140,895 8,101 6.5% 8,094 Minnesota 4,919,479 5,541,669 5,720,647 622,190 12.6% 178,978 Source: U.S. Census Bureau, ESRI forecasts % 6.0 % 4.2 % 3.8% 3.8% 8.1 % 9.2 % 5.3% 6.1 % 3.2 % The City of Monticello has developed its own projections based on building permits and certificates of occupancy over the past two years. The Minnesota State Demographer's 2015 Annual estimate was utilized as base reference point. It indicated the City had 13,311 residents at the end of 2014. During the 2015-2016 time-frame, the City issued permits for 307 additional housing units. Using ESRI's estimated household size of 2.72, this yields an estimated population of 14,146 at the end of 2016. In recognition of the trend of increasing household size and the moderate pace of new residential development and household formation in the City, the projections for the 2017-2021 period indicate an increase of 893 people (2.74 persons per 326 new units or 65 +/- units per year). The annual population increase of 179 is si�teen (16) people higherthan ESRI's annual projections based on U.S. Census Bureau data estimates. Again, ESRI's figures appear to have under-accounted for the sizeable number of new units in the community during 2015-2016. Basically, ESRI does not factor in the steady recovery in building permit issuance in this period and applies its projections to a lower beginning population figure than a more realistic number. Refer to Tables 1-C and 2-C for more information. S���age � � � Montic;ello WSB Year: 2010 2011 2012 2013 2014 2015 2016 Total TABLE 1-C: MONTICELLO HOUSING PERMITS & POPULATION FORECAST CALCULATIONS Single-Family Detached 2 2 22 49 70 38 61 244 Single-Family Multifamily Attached 0 0 0 � 0 � 0 0 = 3 = 0 � 3 0 = 6 = 136 T 0 66 12 202 POPULATION FORECAST CALCULATIONS Time-Frame "' New Housing Average HH Size New Residents Units (Permits x HH Size) 2015 - 2016 307 2.72 835 Time-Frame New Housing Average HH Size New Residents Units (Permits x HH Size) 2017 - 2021 � 326 (65.2 x 5) 2.74 893 Source: City of Monticello, Minnesota State Demographer TABLE 2-C: POPULATION PROJECTION DIFFERENCE City of Monticello ESRI Difference Source: ESRI forecasts, The City of Monticello 2016 14,146 13,568 578 2021 15,039 14,383 656 Total 2 2 22 52 73 180 127 458 2014 Pop 13,311 2016 Pop 14,146 I���J���J��� �,�II-� ��,�� I�TJ�� t��� � E�I����9 Average 65.2 peryear End of 2016 Pop 14,146 End of 2021 Pop 15,039 Annual Growth 179 163 16 In 2010, the US Census reported 4,693 households in Monticello and 3,164 families. A household refers to a housing unit occupied by at least one person. A household can involve a family living in a housing unit or it can involve unrelated people sharing an apartment or housing unit. A family refers to a household consisting of a householder and one or more other people related to the householder by birth, marriage, or adoption. In the future, it is likely that the percentage of married couples without children living with them will increase. The percentage of single parent households will also increase. Family households with no spouse present accounted for approximately 30% of the family households in Monticello in 2010. The average household size in Monticello in 2000 was 2.64 persons compared to 2.68 in 2010 according to the U.S. Census Bureau. These figures were projected to increase, according to ESRI, to 2.72 in 2016 and 2.74 by 2021. According to the American Community Survey 5-Year Estimates, Monticello has seen a decrease in family households, a decrease in households with children under the age of 18, and an increase in non-family households (see Table 1-D: Household Occupancy Characteristics for further details). These trends held true from 2009-2014 aside from an outlying year (2014 - highlighted in gray on Table 1-D) when there was an increase in family households, an increase in families with children, and a decrease in nonfamily households. This may have been caused by an increased availability of single- family housing units. These trends have implications for the demand of future housing types in Monticello. Since the average household size is projected to decrease and the trend of family households has been decreasing, a shift in demand will likely occur less for 3-4 bedroom, single-family homes and more for smaller housing units, and multi-family units. 6�Y�age � �� Monticello WSB TABLE 1-D: HOUSEHOLD OCCUPANCY CHARACTERISTICS - 2009-2014 �Family Familywith Children Nonfamily 2009 72.2% 47.0% 27.8% 2010 69.6% 46.4% 30.4% 2011 �� 68.5% 45.3% 31.5% 2012 66.8% 43.8% 33.2% 2013 66.2% 42.3% 33.8% 2014 68.8% 43.8% 31.2% Source: American Community Survey 5-year Estimates 1-person 22.0% 25.1 % 25.8% 26.5% 27.0% 24.9% 2-person 29.8% 25.8% 26.9% 25.3% 27.0% 29.0% 3-person 18.8% 18.6% 16.9% 19.1% 16.4% 13.7% 4-or-more-person � 29.4% 30.6% 30.9% � 29.1 % 29.6% 32.4% � Between 2010 and 2016, the number of new households (4,693 and 4,936 respectively) has grown proportionally to the increase in population (12,759 and 13,568 respectively) suggesting stability in household size (see Table 1-E: Historic and Projected Households: 2010-2021). The number of households in Monticello is projected to increase by 5.3% by 2021 accounting for 182% of the study area's projected household growth. Place Monticello Big Lake Buffalo Elk River Becker Rogers Study Area Total TABLE 1-E: HISTORIC AND PROJECTED HOUSEHOLDS: 2010-2021 � US Census 2010 4,693 3,377 5,700 8,080 1,526 3,748 27,124 2016 5,136* 3,566 5,872 8,452 1,635 4,232 28,893 2021 5,399 3,720 6,058 8,780 1,772 4,610 30,339 Wright County 44,473 46,817 49,383 Minnesota y 2,087,227 2,176,475 2,258,733 2010-2016 No. 443* 189 172 372 109 484 1,769 2,344 89,248 % 8.6% 5.6 % 3.0 % 4.6 % 7.1 % 12.9% 6.1 % 5.3% 4.3% Change 2016-2021 No. 263 154 186 328 137 378 1,446 2,566 82,258 % 4.9% 4.3% 3.2 % 3.9 % 8.4% 8.9 % 4.8% 5.5% 3.8% *The 200 occupied units of the new IRET Apartment Complex were accounted for here. Note: There is potential for household growth to exceed these projections based on the housing markeYs recovery from the Great Recession. Sources: U.S. Census Bureau, ESRI forecasts, WSB & Associates 7��'age � � � Montic;ello WSB :��� � 1��� �Iri`� � I�1F:�C�T � �I L1�II��'� In addition to knowing how many people currently live and will likely live in Monticello, an understanding of the population's age composition can help the City plan for and provide necessary and desired services for its residents. The following provides an overview of the e�sting age composition of Monticello's residents and the anticipated changes in age composition that will occur through the year 2021 (see Table 1-F: Age Composition 2010-2021). Composition will remain relatively consistent outside of a slight decrease in the 25-34 age category (by 2.1%) and slight increase in the 55-64 age category (by 2.5%) which reflects aging baby boomers and a smaller succeeding generation. Extrapolating further past year 2021, Monticello can expect a surge of 7,438 residents entering the over- si�ty-five (65) age group as is indicated by the red box in Table 1-F. The age cohort closest to age si�ty- five (65) typically is comfortable downsizing their living situation. This is a substantial number of households who will be causing the demand in housing types to change in Monticello for future years as current projections do not have a corresponding offset in future age groups. TABLE 1-F: AGE COMPOSITION 2010-2021 2010 2016 Age Number Age 0 - 4 1,292 Age5-9 1,101 Age 10 -14 969 Age 15 -19 823 Age 20 - 24 731 Age 25 - 34 2,255 Age 35 - 44 1,991 Age 45 - 54 1,505 Age 55 - 64 885 Age 65 - 74 584 Age 75 - 84 394 Age 85+ 229 Median Age 31.6 Source: U.S. Census Bureau, ESRI forecasts HOUSING SUPPLY % 10.1% 8.6 % 7.6 % 6.5% 5.7 % 17.7% 15.6% 11.8% 6.9 % 4.6 % 3.1 % 1.8% Number 1,206 1,150 1,033 924 901 1,968 2,065 1,771 1,240 751 372 185 33.1 % 8.90% 8.50% 7.60% 6.80% 6.60% 14.50% 15.20% 13.10% 9.10% 5.50% 2.70% 1.40% Number 1,293 1,226 1,163 949 903 2� 2� 1� 9 353 836 404 171 32.3 2021 % 9.00% 8.50% 8.10% 6.60% 6.30% 15.60% 15.00% 11.70% 9.40% 5.80% 2.80% 1.20% Number and Types of Housing iJnit� The US Census indicates that there were 4,693 households in Monticello in 2010: 1,749 more units than identif�ied in 2000 (2,944). Data describing the household type, as shown below in Table 1-E, was only available as an estimate. The most recent data is from the 2014 American Community Survey. Roughly, 54.5% of the housing units in 2014 were single-family detached houses: this is considerably lower than Wright County (76.4%) and lower than the State of Minnesota (672%). In 2014, roughly 182% of the housing units in Monticello were single-family attached units (townhouses): this is almost double the figure for Wright County (9.8%) and much higherthan the State (7.5%). In 2014, the City also had a considerably higher percentage of multi-family housing than Wright County but was consistent with the State of Minnesota. Refer to Table 1-G: Housing Supply by Type - 2014, for more information. 8��jage � � � Montic;ello WSB TABLE 1-G: HOUSING SUPPLY BY TYPE - 2014 Housing Type Monticello Monticello Wright County Wright County Units % Units % Single-Family 2,663 54.5% Detached Single-Family 889 1820�0 Attached 2-4 Unit Multi- 123 2.5% Family 5+ Unit Multi- 787 16.1 % Family Mobile Home 422 8.6% Other - 0.0% Total Units 4,884 100% Source: 2010-2014 American Community Survey 5-Year Estimates 37,715 76.4% 4,863 9.8% 799 1.6% 3,609 2,335 50 49,371 7.3% 4.7 % 0.1 % 100% � State State Units % 1,589,773 67.2% 176,173 7.5% 104,411 4.4% p 410,648 82,441 703 2,364,149 C;a�����i�c�� �z��1 _F`�r����t c�f ����x•-(���upi��! ��d I���t�r-(���upi��! TJr�i�� 17.4% 3.5% 0.0 % 100% It is important to have a balance of owner-occupied and renter-occupied units. In general, many communities strive to have roughly 65-70% of their housing units owner-occupied and 30-35% renter occupied. In 2010, approximately 68% of the housing units in Monticello were owner-occupied; this is slightly lower than Wright County (75%), and about the same as the State of Minnesota (68%). During 2016, the City of Monticello's housing occupancy ratio (owner: renter) has changed slightly, with 69% of the housing units being owner occupied and 25% being renter occupied. In 2021, the housing occupancy ratio is forecasted to remain consistent with past trends. Refer to Table 1-H: Housing Tenure by Type - 2010, for additional information. Please be aware that there is roughly a 6% gap between owner occupied housing units and renter occupied housing units; this gap will be addressed in the following section. TABLE 1-H: HOUSING TENURE - 2010 - 2021 Owner Occupied Housing Units % Location: 2010 2016 2021 Monticello 68.2% 68.7% 68.1 % Wright County 75.8% 74.7% 74.7% State of MN 64.9% 64.0% 63.9% Source: U.S. Census Bureau, ESRI forecasts Renter Occupied Housing Units % 2010 2016 2021 26.2% 25.3% 24.9% 14.9% 15.8% 15.9% 24.0% 24.8% 24.9% �a1�i�Il�I�S Today, the City of Monticello faces an overall housing vacancy rate of 6.0%, which is 3.4% lower than the vacancy rate for Wright County, and 5.2% lower than that of the State. Monticello's vacancy rate has increased by 0.4% since 2010 and is projected to increase by 1% in 2021 which will still be significantly lower than the County and State. Both the County and State are projected to remain consistent through year 2021. The increase of vacant housing units in Monticello can partly be explained by the fact that the number of housing units in the City increased by nearly 6% from 2010-2016, and the housing market experienced a significant decline. Please see Table 1-I for further details. � � Montic;ello 9�Y�age � WSB TABLE 1-I: VACANT HOUSING FORCAST & COMPARISION — 2010-2021 Year City Vacant Units City Percent Vacant County Percent Vacant 2010 2016 2021 280 5.6% 9.2% 315 6.0% 9.4% 391 7.0% 9.4% Source: U.S. Census Bureau, ESRI forecasts State Percent Vacant 11.1% 11.2% 11.2% The rental housing average vacancy rate is low in Monticello but is projected to increase indicating a demand for addition rental units at all levels of affordability. Table 2-I indicates specif�ic vacancy rates for eight of the rental properties in the City. TABLE 2-I: RENTAL APARTMENTS — VACANCIES AND RATES Ridgemont Apartrnents River Park View Apartrnents Ridgway Apartments Hillside Terrace Cedar Crest Apartrnents Broadway Square 7th Street Townhomes Monticello Crossings* Monticello Village Average Vacancy Rate * 202-unit IRET Apartment Complex built in 2016 Source: WSB & Associates Phone Interviews �alu� �f I3lousi�� Vacancy 0.0 % � 0.0% 2.3% � 0.0% 0.0 % � 0.0% 6.7 % 1.0% 3.3% 1.5% Rates $566 - $610 30%of income $460 - $725 30%of income 30%of income 30%of income $825 $925 - $2,210 $1,018—$1,610 � � � � The median value of owner-occupied housing units in Monticello in 2016 was $179,095 and is projected to increase by $30,314 in 202L Most housing in Monticello is valued in the range of $150,000 to $199,999, which is consistent with the County and State. In comparison to low and moderate valued housing, there is a relatively limited choice of higher valued housing units in Monticello. Only 16.5% of owner-occupied housing units have a value of $250,000 or greater compared to 38.8% in the County and 36.7% in the State. The median value of owner-occupied housing in Wright County was $216,395 and $205,288 in the State of Minnesota. Monticello needs to focus on later-stage housing opportunities to meet the demand for higher valued housing units. Refer to Table 1-J: Owner-Occupied Housing by Value -2016 for additional information. Table 2-J illustrates the affect that the Great Recession had on housing values in Monticello. Note that median sale price fell below median appraised value in mid-2007, then recovered and surpassed appraised value in 2011to regain a more traditional relationship. Data from Table 2-Jcame from the Wright County Assessor. lO�Page � � � Montic;ello WSB Value Less than $50,000 $50,000 to $99,999 $100,000 to $149,999 $150,000 to $199,999 $200,000 to $249,999 $250,000 to $299,999 $300,000 to $399,999 $400,000 to $499,99 $500,000 to $749,999 $750,000 to $999,999 $1,000,000 or More Median Value V Source: ESRI Forecasts $zio,000 $zoo,000 $i9o,000 $iso,000 $i�o,000 $i6o,000 $i5o,000 $i4o,000 $iso,000 TABLE 1-J: OWNER-OCCUPIED HOUSING BY VALUE - 2016 City Units 411 240 407 1282 672 269 217 65 18 22 5 $179,095 ■ � � City % 11.4% 6.7 % 11.3% 35.5% 18.6% 7.5% 6.0 % 1.8% 0.5% 0.6 % 0.1 % � Wright County % 6.5% 4.8% 11.8% 21.4% 16.7% 11.5% 13.2% 6.4% 4.5% 1.8% 1.4% $216,395 � ■ � State % 6.5% 9.4% 14.7% 17.9% 14.7% 10.3% 12.2% 6.1 % 4.9 % 1.9% 1.3% $205,288 CHART 2-J: MONTICELLO HOUSING VALUES THOUGH THE GREAT RECESSION 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Median Sale Median Appraised C��vr���� i�Ic��thly ��st� �� P�r��r�t��� c�f I3����1��i�� I���€�rr�a� Housing decisions should not be based solely on the value of housing, but also the cost of housing expenses in relation to household income. In general, housing costs (taxes, insurance, principal, interest, etc.) should not exceed 30% of total household income. In 2014, only 19% of homeowners in Monticello had monthly costs that were more than 30% of their household income, compared to 27% in Wright County and 29% in the State of Minnesota (see Table 1-K: OwnerMonthly Costs as Percent of Household Income -2014). These figures suggest that housing was more affordable in Monticello than in Wright County and the State of Minnesota in 2014 possibly due to age and livability of housing units. This is an important strength for the City as it continues to grow and evolve into a regional center linking the Twin Cities Metro with the St. Cloud MSA. Monticello should consider a goal to maintain appropriate amounts of affordable housing to mitigate the negative impacts of a housing price correction like that seen during the Great Recession (2007-2010). This will allow for the community to see steady and modestly increasing home values and reduce the 11�Page � � � Montic;ello WSB likelihood of rapidly increasing home prices causing homeowners to be required to spend a larger portion of their income on housing. While the provision of affordable housing is one side of the coin, the City should also incorporate a plan to encourage the development and attraction of livable wage employment opportunities in the City. TABLE 1-K: OWNER MONTHLY COSTS AS PERCENT OF HOUSEHOLD INCOME - 2014 Percent of Household Income City Units* City % Less than 20% 1,286 47.0% 20.0 to 24.9% � 611 � 22.3% 25.0 to 29.9% 611 11.4% 30.0 to 34.9% 169 � 6.2% 35.0%or More 361 13.2% Total 2,738 100% Source: 2010-2014 American Community Survey *Housing Units with a Mortgage � County % 39.0% 18.9% 14.8% 7.6 % 19.6% 100% � State % 41.3% 17.8% 12.3% 7.9 % 20.8% 100% Contract Rent In 2014, rental housing units accounted for roughly 25% ofthe occupied housing units in Monticello. In 2014, roughly 88% of units had a monthly rent of $500 or more, which is higher than Wright County (87%), and the State of Minnesota (79%). See Table 1-L: Renter-Occupied Housing Units by Gross Rent - 2010, for additional information. TABLE 1-L: RENTER-OCCUPIED HOUSING UNITS BY GROSS RENT - 2014 , � - City County State Monthly Rent Units % Units % Units Less than $200 23 2.0% � 141 2.0% 24,764 $200 to $299 57 4.9% 233 3.3% 31,166 $300 to $499 66 5.6% 582 8.2% 68,601 $500 to $749 367 31.2% 2136 30.1 % 159,802 $750 to $999 322 27.4% 2012 28.3% 139,386 $1000 to $1,499 306 26.0% 1514 21.3% 105,182 $1,500 or more 34 2.9% 188 2.6% 34,297 No Rent Paid 0 0.0% 300 4.2% 27,938 MedianRentPaid $773 $778 $747 % 4.2 % 5.3% 11.6% 27.1 % 23.6% 17.8% 5.8% 4.7 % Total Specified Units ` 1,175 100% 7,106 100% 590,136 100% Source: 2010-2014 American Community Survey lZenter Monthly Co�ts as Perc�ntage of Ho�isehold Income In 2014, 46.5% of renters paid over 30% of their household income in rent (see Table 1-M.� Gross Rent as Percent of Household Income - 2014). This number is slightly lower than Wright County (47.7%) but higher than the State of Minnesota (46.1%). This suggests that there is not an abundance of affordable rental units in Monticello and efforts should be made to decrease rental costs. 12�Page � � � Montic;ello WSB TABLE 1-M: GROSS RENT AS A PERCENT OF HOUSEHOLD INCOME - 2014 Percent of Household Income Units Percent Wright County Less than 10% 0 0.0% 3.2% 10 to 14.9% 73 6.2% 8.1 % 15 to 19.9% 205 17.4% 13.6% 20 to 24.9% 262 22.3% 13.1 % 25 to 29.9% 72 6.1 % 9.1 % 30 to 34.9% 194 16.5% 9.7% 35 to 39.9% 86 7.3% 8.1 % 40 to 49.9% 102 8.7% 9.8% � 50.0%orMore 164 14.0% 20.1% Not Computed 17 1.4% 5.2% Total Specified Units � 1,175 100% 100% Source: 2010-2014 American Community Survey State 3.5% 8.2 % 12.3% 12.5% 11.4% 8.8% 6.1 % 8.1 % 23.1 % 6.0 % 100% �g� �nd :��ir�i���n�� �i�1a��in� �t��l� In 2014, roughly 39% (1,910 units) ofthe City's units were constructed before 1990 (greater than 27 years old). Just 5.4% of the housing units in Monticello were built before 1939. Monticello has a relatively new housing stock in comparison to Wright County and the State of Minnesota, with 60.8% of housing units being built since 1990 compared with 50.4% for the County and 29.0% for the State. TABLE 1-N: YEAR STUCTURE BUILT Year Structure Built Monticello Units Percent 2010 or later 0 0.0% 2000 to 2009 1,697 34.7 1990 to 1999 1,277 26.1 % 1980 to 1989 748 15.3% 1970 to 1979 654 13.4% 1960 to 1969 63 1.3% � 1950 to 1959 96 2.0% 1940 to 1949 86 = 1.8% _ 1939 or Earlier 263 5.4% Total Specified Units � 4,884 100.0% Source: 2010-2014 American Community Survey Wright County 0.7 % 32.2% 18.5% 12.2% 16.0% 4.9 % 4.1 % 2.3% 9.2 % 100.0% � State 0.8% 14.6% 13.6% 13.0% 15.6% 9.8% 10.4% 4.8% 17.3% 100.0% 13�Page � � � Montic;ello WSB LIFE-CYCLE HOUSING AND PROFILE OF HOUSEHOLDS The housing needs of a community relate to the demographic profile of the household. Typically, households move through several life-cycle stages; including entry-level households, first time homeowners, move-up buyers, empty nesters/young seniors, and senior citizens. The following describes each of these household types and the effect that they have on housing demands in Monticello. Er��r��-1����1 li��us�ta€�Ids People in the 18 to 24-year-old age group typically leave their childhood home and establish their own household. They often rent a house or an apartment because they generally do not have the income and savings needed to buy a home. In addition, many people in this age group move frequently, so they are hesitant to buy a house. They are also more likely to share housing with other unrelated people of similar age. The entry-level household population in Monticello will fluctuate annually. Many Monticello residents that graduate from high school move to other communities to attend a university or to pursue other job opportunities. In the long term, unless current conditions and trends change, Monticello is projected to see a 0.5% decrease in the 15 to 24-year-old age group by year 2021 (Table 1-F�. Job opportunities aimed at retaining this age cohort need to be strongly considered. Nevertheless, there will always be a strong need to provide affordable housing for people of all ages. Fit�si-Ti�� _F��r�a����r����� First time homeowners are typically in their 20s and 30s. They are usually "move-up" renters, meaning they "move up" from an apartment to a home. They are often married with young children, but increasingly, first time homeowners are single. They are prone to moving within several years of buying their first home for several reasons; including, increased salaries allow them to move to more expensive housing, children may require larger housing, and job opportunities may require that they move to another community. Monticello is projected to see a 0.3% increase in the 20-44Z age group by year 2021 (Table 1- F�, which could translate into an increased demand for lower-end housing units. ����r�-I1� ������ Move-up buyers are typically in their 30s and 40s. They move up from the smaller, less expensive house that they had previously purchased. From an economic growth perspective, this is an important age group of people. Typically, move-up buyers have children in school and an established career. They are less likely to move to another community and start over. Also, professionals who are moving to a community to advance their career are generally looking to move to a more expensive house than what they had in their previous community. Monticello is projected to see a 0.5% decrease in the 25-543 age group by the year 2021 (Table 1-F�. This is 0.3% lower than the study area average of a 0.8% decrease. This may be an indicator that there is a shortage of available units for move-up buyers. Monticello must continue to z People in their 40s were included due to U.S. Census age groups. 3 People in their 20s and SOs were included due to U.S. Census age groups. 14Ii���� � � � MOTItIC;el10 WSB ensure that it has adequate choices for those who are looking for move-up housing that will satisfy their needs until they are in their SOs and beyond. E;�n��t� �'�st��°s �a�d �'e►t���� 5�x�i�r� Empty nesters and young seniors are generally in their SOs, 60s, and early 70s. Often, their children have moved out of their house and left them with a larger house than needed. Empty nesters and young seniors often want to live in a smaller home, like a townhouse or patio home, that has less maintenance. The baby boom generation in Monticello is projected to increase by 0.6% by year 2021 (Table 1-F�. A notable increase in apartment rentals in Monticello by members of this population segment is likely to occur. A large portion of these individuals will likely desire higher-end apartment complexes with quality amenities so they can maintain their current lifestyles. ��rti�� �i%i��r�� This age group is generally in their late 70s and older and are often looking for low maintenance or assisted living housing. As the population ages, Monticello must continually ensure that it has adequate housing to meet the needs of seniors. The City is projected to see a 0.1% decrease in the 75 and older age group by year 2021 (Table 1-F�. Monticello should continue to strive to be a senior-friendly community that values the contributions of seniors, promotes positive intergenerational interactions, considers the needs of seniors in community planning, supports the efforts of seniors to live independently, and acknowledges the role that family, friends, and neighbors play in the life of seniors. 5���°i�l �'��c�� Housing for those with special needs includes housing for those with mental and/or physical disabilities or health issues and those who need temporary or transitional housing. The number of people with special housing needs is expected to increase as the population of Monticello continues to age and grow. ��i7ia� 1-�a�a�ir�� ���z�l��� Monticello City staff inembers have identified a need for senior housing market analysis. Based upon population growth forecasts, household forecasts, and the current age of householders, we can extrapolate what the senior housing market will require. Table 1-O: Senior Housing Projections 2010-2021 illustrates how the change in the sixty-five and older population will affect the number of occupied housing units. By year 2021, Monticello will need 940 units suitable for senior residents to meet demand, which is an increase of 136 units from 2010. We consider senior housing to be any housing unit (affordable, renter, duplex, patio house, etc.) that meets the needs of residents si�ty-five (65) and older. 15�Page � � � Montic;ello WSB TABLE 1-0: SENIOR HOUSING PROJECTIONS — 2010-2021 � Year 2010 2016 Total Population 12,759 13,568 Total Occupied Units 4,693 � 4,936 65+ Population 1,207 65+ Population Percent 9.5% Units Occupied by 65+ population 804 Percentage of Units Occupied by 65+ Population 17.1 % Source: U.S. Census, ESRI Forecasts, WSB & Associates AFFORDABLE HOUSING 1,308 9.6 % 871 17.7% � � 2021 14,383 5,199 1,411 9.8% 940 18.1% Affordable housing is important to a strong economy and a healthy community. Increasingly, housing is not affordable for many working families and the lack of affordable housing for people of all ages and incomes causes families stress, dampens productivity and stifles job growth. Various organizations define "affordable housing" in many ways. The Department of Housing and Urban Development (HUD) generally defines housing as affordable if it costs less than thirty (30) percent of a household's income. However, HUD's Section 8 Income Guidelines are the basis for most affordable housing programs. Section 8 guidelines define low and moderate incomes on a sliding scale, depending on the number of persons in the family. For example, a four-person household is considered "moderate income" if their family income is eighty (80) percent of the area's median family income. Most housing affordability programs and data place emphasis on creating owner-occupied units at eighty (80) percent of the median family income (moderate income) and rental units at fifty (50) percent of the median family income (low income). Since low income persons are typically renters, the definition of "low income" is tied to the number of persons in each unit. This study identifies "affordable owner occupied units" as those affordable for moderate income families (eighty (80) percent of inedian income). Affordable rental units are based on fifty (50) percent of the median income and reflected on a per capita and per family basis. It is very important to note that the definition of "affordable" in terms of a dollar amount will continue to change as the cost of living increases and interest rates change. Therefore, the City should periodically review income/housing statistics and update the definition as warranted. Factors such as interest rates will impact housing affordability in both a positive and negative manner. Ir���rr�� l�� ��� �f �I�a�as�°��lcl�r Looking at income data is also important when predicting future housing demands in the City of Monticello. In 2010, the median household income in Monticello was $68,135 ($67,963 in the County) and the largest employment industries were educational, health and social services, manufacturing, and retail trade. By 2016, the median household income increased significantly to approximately $76,954 ($73,798 in the County) and the top employment industries were the same. Monticello's median household income is projected to increase to $85,218 by 2021 ($83,257 in the County) according to ESRI Business Analyst. 16�Page � � � Montic;ello WSB Income distributions as reported by the U.S. Census Bureau can be compared to affordability standards to determine how many households and families in the City of Monticello may require affordable housing. Table 1-P: Monticello Affordable Housing Units Requirements - 2016 & 2021 depicts the number of households (renter and owner) that may require affordable housing (based on family income). The gray shaded area indicates family incomes of 80% or less of the median household income ($61,449 in 2016 and $68,174 in 2021). The red box indicates family incomes of 50% or less ofthe median household income ($38,406 in 2016 and $42,609 in 2021). By 2021, 2,214 owner households may require affordable housing, and 1,629 renter households may require affordable housing. TABLE 1-P: MONTICELLO AFFORDABLE HOUSING REQUIREMENTS - 2016 & 2021 2016 2021 � Annual Household Number of Households % of Total Number of Households % of Total Income Less than $15,000 378 $15,000 to $24,999 286 $25,000 to $34,999 332 $35,000 to $49,999 543 $50,000 to $74,999 834 $75,000 to $99,999 � 887 $100,000 to $149,999 1,262 $150,000 to $199,999 341 $200,000 and over 74 Total Households Y 4,937 Source: U.S. Census Bureau, ESRI forecasts 7.7 % 5.8% 6.7 % 11.0% 16.9% 18.0% 25.6% 6.9 % 1.5% 100% 411 271 316 631 512 937 1,564 472 85 5.199 7.9 % 5.2 % 6.1 % 12.1% 9.8% 18.0% 30.1 % 9.1 % 1.6% 100% The following table illustrated the maximum affordable housing costs for renters and owners based on median income. A direct relationship exists between monthly affordable housing costs and median income. Steps should be taken in Monticello to keep housing costs affordable as housing values increase such as maintaining current affordable housing stock and assuring opportunities for the construction of new affordable housing units. TABLE 1-Q: MAXIMUM AFFORDABLE HOUSING COSTS (RENTER & OWNER) - 2016 & 2021 Renter Year 2016 Median Income $76,811 Affordable Income: $38,406 50%Renter, 80%Owner 30% of Affordable $11,522 I ncome Monthly Housing Cost � $960 Source: U.S. Census Bureau, ESRI forecasts 2021 $85,218 $42,609 $12,783 $1,065 Owner 2016 $76,811 $61,448.80 $18,434.64 $1,536.22 2021 $85,218 $68,174.40 $20,452.32 $1,704.36 17�Page � � � Montic;ello WSB OWNER-OCCUPIED HOUSING MARKET ANALYSIS This section analyses the City of Monticello's owner occupied housing market. Analyzed in this section are single-family home resale trends, home foreclosures, actively marketing subdivisions, pending subdivisions, interviews with local real estate professionals and others involved in the local housing market to gain their feedback on existing market conditions and trends. The Wright County Assessor's Office provided data on resale trends. The following are key findings regarding the owner-occupied housing market. Hame Resale Trends The average resale price of single-family homes in Monticello in 2016 was $202,073 and there were 342 sales. This was an increase in price from 2015 ($169,025 and 266 sales). While some ofthe price changes from year to year can be attributed to the age and quality of the homes sold during a year, an interview with a realty expert indicated the average resale price likely bottomed out in 2011 and slow price appreciation is expected to continue to bring prices back to a more market-neutralleveL Median sale price is often a more reliable measure of price trends. In Monticello, the median sale price of single- family homes increased from $171,500 in 2015 to $185,269 in 2016, which reflects an increase of 8% for that period. TABLE 1-R: RE-SALE TRENDS OF EXISTING SINGLE FAMILY HOMES : � — Year Number of Sales Median Sale Price Average Sale Price 2015 266 $171,500 $ 169,025 2016 342 185,269 $ 202,073 Source: Wright County Assessor's Office; WSB & Associates, lnc. Table 1-S shows the number of home sales in 2016 by the decade the homes were built. In 2016, 181 of the 342 (52.9%) single-family homes sold were built during year 2000 or later. Similarly, Table 1-N showed that approximately 34.7% of Monticello's owner-occupied single-family homes were built after 2000. Only 11.7% of the sales in 2016 were homes built prior to 1980. This highlights the relatively large supply of newer homes available to potential new residents moving to the community. Table 1-S also highlights how the median sale price decreases as the homes get older. Most homes sold in Monticello in 2016 for under $170,000 were built before 1980. Homes priced above $180,000 were generally built since 2000. Decade 1970 and Older 1971-1980 1981-1990 1991-2000 2001-2010 2010-2016 TotaL � Source: Wright CountyAssessor's Office TABLE 1-S: HOME SALES BY DECADE BUILT 2016 Number of Sales 27 13 � 23 98 ' 132 49 342 Percentage 7.9 % 3.8% 6.7 % 28.7% 38.6% 14.3% 100.0% � Median Sale Price $151,509 $166,000 $157,500 $181,467 $193,951 $221,050 18�Page � � � Montic;ello WSB Beginning in the middle of the last decade, home foreclosures began to have a significant impact on housing markets across the nation. Initially, most foreclosures occurred among buyers with lower credit ratings who had sub-prime mortgages. Gradually, foreclosure activity increased as jobs plummeted and home prices sank precipitously. Foreclosures have gradually decreased over the past few years as housing markets have stabilized. Table 1-T presents foreclosure data for Wright County and Minnesota. The data are considered "Sheriff's Sales Foreclosures" and was compiled by the Minnesota Homeownership Center and published on their website. There were 7,212 foreclosures in Minnesota in 2015. This was down from 8,313 in 2014 and significantly lower than 11,834 in 2013. Wright County had 205 foreclosures in 2015, down from 240 in 2014 and 372 in 2013. Wright County has maintained a higher foreclosure rate than Minnesota. The foreclosure rate, as shown in Table 1-T, is defined as the number of foreclosed mortgages as a percent of total residential parcels. In 2015, Wright County's foreclosure rate was 0.49% compared to 0.40% in Minnesota. Foreclosures have hindered Wright County's housing market as they have other areas of the State. Out of 87 counties in the State, only 6 had a higher foreclosure count than Wright County. Those counties were Saint Louis, Washington, Dakota, Anoka, Ramsey, and Hennepin. TABLE 1-T: HOME FORECLOSURES WRIGHT COUNTY, 2013 to 2015 Wright County Minnesota � Year Number of Foreclosures Foreclosure Rate Number of Foreclosures Foreclosure Rate 2013 372 0.89% 11,834 0.64% 2014 � 240 0.57% 8,313 0.46% 2015 205 0.49% 7,212 0.40% � Sources: Minnesota Homeownership Center, HousingLink �ir�gl��I��r�ai��� Li�����s Based on a review of various Realtor websites, there were 77 single-family homes actively listed for sale in Monticello in November 2016. The homes were unevenly distributed by price range; weighted heavier toward higher priced homes. Only two (2) homes were priced below $120,000 and 68 priced $150,000 or higher listed for sale. Four (4) homes were listed for sale between $100,000 and $150,000. The average list price of homes on the market was $271,759 in November 2016. While homes typically sell for less than the list prices, the current prices suggest that Monticello should continue to see appreciation in home prices since the low point in 2011. �.�i�iii�� L,t�t Sa�p�ly There are currently a limited number of lots available to accommodate new single-family homes in Monticello. The City is experiencing a shortage in buildable lots as bank owned lots have been purchased and developed. As of the end of 2016, there are a total of 74 single-family lots and sites that can accommodate up to 101 multi-family units. Permit numbers have steadily recovered from the 2010 and 20111ow point (two single family permits issued each year) to the issuance of 61 single-family permits in 2016. Prior to the recession, the City issued more than 300 permits annually. During that time (2002- 2007) housing lots were selling in the $70,000-$90,000 range. The sale price of lots fell by more than 80% after the recession. Bank foreclosures of developers resulted in existing lots becoming bank owned 19�Page � � � Montic;ello WSB and ultimately being developed quickly. Many of the approved single family pre-plats were not completed due to the diminished demand for new homes. Refer to Table 1-U for full details. TABLE 1-U: AVAILABLE PLATTED & UTILITY SERVICED LOTS Development Single Family Lots Multi Family Lots Featherstone 15 0 Hunters Crossing 0 0 Hillside Farm 22 0 Spirit Hills 0 5 SunsetPonds 21 0 Carlisle Village 7 � 17 Autumn Ridge 0 79 Easiview 1 0 Club West 7 0 Pine View 1 0 Total � 74 101 Source: City of Monticello In mid-2016, the average price of a lot was about $20,000. As the housing market has improved and lot prices have increased due to the limited supply, it has allowed for an increase in prices for new single family lots. The new housing price situation is further aggravated by the limited number of remaining small home builders which have either closed or changed professions due to the recession and is now resulting in higher construction costs. According to a Monticello realty expert, another critical factor impacting the demand for single family homes is the degree to which first-time home buyers are riddled with college debt and unable to afford the price of a new home. The interest rate for new home loans has increased slightly from an all-time low of 3.4% during the depths of the recession to approximately 425% in late 2016. Monticello's average re-sale price currently sits in the five to seven percent range and is expected to go up. There are no major complaints or concerns among current homeowners looking to move up into more expensive homes. However, Monticello currently lacks availability of lots that are attractive for higher end housing. The community should focus on the development or attraction of a high-end housing development. The two-major upper-bracket areas (Carlisle Village and Briar Oakes Boulevard) have limited availability of undeveloped lots and are surrounded by agricultural uses. City-annexed land west of Monticello provides development opportunities but is unattractive to developers looking to build higher-market homes due to the lack of natural amenities and features generally associated with high end housing areas. ��n�le-f�r�i�l� I�����i�Y� �'�r�rtits The City of Monticello issued si�ty-one (61) building permits in 2016. This number is up 38.6% from 2015 when forty-four (44) permits were issued (6 attached and 38 detached). To meet demand, the City will need to continue this trend. Please refer to Table 1-C for additional information. 20�Page � � � Montic;ello WSB RENTAL HOUSING MARKET ANALYSIS �i%r�i��k�l� F2��i�1 [-�4rasifi� This section of the report analyses the affordable rental housing market in Monticello. The analysis includes data collected from Affordable Housing Online. All the properties in this section are general occupancy. As shown in the demographic and housing stock overview sections, there are approximately 1,175 renter households in Monticello which is down 127 households from 2010. The overwhelming majority of renters live in larger multifamily properties. There are approximately 2,923 renters (24% of total population) living in Monticello. As of 2014, 25% oftotal Monticello households were renter-occupied, compared to 15.6% for Wright County, and 28% for the State of Minnesota. Properties that include units assisted by federal programs were surveyed as part of this analysis. In total, eight (8) properties with 322 units were surveyed. Twenty-six (26) percent of the City's rental units are federally subsidized. Monticello's federally assisted affordable rental housing stock includes properties financed through the following programs: Program Section 8 LIHTC RD 515 Total TABLE 1-V: FEDERALLY ASSISTED AFFORDABLE RENTAL HOUSING STOCK Properties 2 3 6 9 Units 74 102 189 307 Note: The total does not necessarily equal the sum of each program as some properties may participate in multiple funding programs Source: Affordable Housing Online The average number of units per property for affordable rentals in Monticello is 34. The largest federally assisted affordable rental community in Monticello is Ridgemont Apartments at 48 units and the smallest is Hillside Terrace II at 12 units. Two apartment properties provide housing for seniors totaling 59 units. A11307 units include some form of rental assistance (like Section 8) to make rent more affordable for very low income families. In Monticello, a family of four must earn $42,900 or less to qualify for Section 8 housing. See Table 1-W.� Federally Assisted Units by Property for details. Name Broadway Square Cedar Crest Apartrnents Hillside Terrace -- Monticello Hillside Terrace II Ridgeway Apartments River Park View Apartrnents Ridgemont Apartrnents TABLE I-W: FEDERALLY ASSISTED UNITS BY PROPERTY Sec 8 LIHTC RD 515 38 - � - 36 - - - � - � 12 - - 44 - 31 31 - - 48 Source: Affordable Housing Online Note: Not all unit counts are available from HUD � � Senior 28 31 21�Page � � � Montic;ello WSB Photographs of Monticello Apartment Buildings Image 2: River Park �'�e� ' �:, '�ents :;�i��z.�:�..�ryg�;�.m a�._�.,mn i� � .���, � �� � ,'i����� .� � �,. � �II�i�����!�l�Ial � —r+:iia';^.lifllt6 Image 6: Ridgeway Apartments :�'� r r , - 1 . � � ��(i . � I �I I'-J „ '� , r�� . � '_ -'— _ . � -_ " ` - �� . . ` .. ,_"" �-1 Y : - ^'�` � �' � . _ " �--�—�=��"`'�- - �I�Y�y � � Montic;ello Image 1: Ridgemont Apartments �r�...=-� _ � . _ _ Image 4: Cedar Crest Apartments , ! '� �w��" ��' ��. * ' 1���:�� - Y � �. - � r `.;� j� 9 } � �� �' , � : '�=- �, � � � `'� � ��. r; � ' ,�_ �;�+' '"' � � ; � �ti - � _ � � �,� 4 3'"�' � ,' � � � � �,r � � � ,. . .c��....1� `"V i� � — .___ � � ---- � Ima�e 5: Broadway Square �� �il- „�rar; t�.,� � , � �! - �` �9 -.� �=� - �,.-.-.. � 22�Page � WSB y �¢ - ::����. � � —iavi:":ef— � .. .--- � „��” �fti,. � %.,�' � ;:�� �:�. ,. `�s %h, ; ,� r ,. �: . . . ,g �,u�'�;� Y�&��<�<xe �. ?��=.�r�te�;��l�sa �'��c�����a„,�m �i �.�"a�.� �'r►�� . ■ m � a a ■ ^�- � � � : � � • i 7 � .i Y� ■ �� , 1 Opl �� � �:���_ ��,�y,�.�� - �41 ;' � - �� , � � _ ,.yr_'_. �, _.-as�-��tr�'_..a .. �__ �... . _. . _ ,� , Y � •r � �°'=,s4,�= `�`� � a�L�: '°�°. ._.....�,..� �� � .� i _ � �. � i� � _... :, e� -� _ =,�' _ There are currently three future housing development sites that have been identified in Monticello. Site A is an 11.93-acre area located at 506 Territorial Road and is the site of the historic registered Rand House which was the home of the Minnegasco founders. This site is zoned low density residential (R-1) and performance-based overlay and may be used for the development of a senior housing apartment complex with sixty to eighty units (60-80) in addition to forty (40) patio homes. The Rand House would be used as a community center and guest home for the development. Rezoning this area using the planned unit development (PUD) process may be the best option to allow for this higher density development. The uniqueness of the property and the City's need for additional senior housing units could be used to justify the PUD. Also, we believe the proposed housing development is consistent with the purpose of the performance based enhancement district. Site B is a 6.4-acre area located north of the lake on the corner of Elm Street and 7t'' Street West. It is zoned for medium density residential (R-3) and may be used for multifamily, senior, or market-rate development. It is within proximity to the Cub Food Store and the Community Center. The site's southern exposure to the wetland pond offers an attractive natural amenity. Finally, Site C is located at the corner of Locust Street and 3rd Street West and has already been approved for the construction of a twenty-three (23) unit three story residential development. As stated earlier in the "Senior Housing Market" section, from 2010-2021 Monticello will need to construct 136 new senior housing units to meet the forecasted demand. Sites A and B have both been identified as ideal locations for senior housing development. Depending on the number of units permitted on each of these sites, and on how many senior housing units have been constructed from 2010-2016, Monticello may need to identify more sites suitable for senior housing. 23�I�agL L � � Montic;ello WSB P� Image 9: Site � \ , ,� � ;�. 7 � � �_ 7sesasno�u�a �' ♦- i 'e'4:f�C ^�' :t'�� A'°� v S { �i� y,� �� �a.. �� t5i5l/Di�i�3G11�• . ` �r _ ' ; y�"' �. _ ` :.. ��. !� ' ''., j. +" i }�, ..,�ti � � 1 � ! �' �� i � � ` :" issiisooso^�/'� E • ��I � / �.�?...�,... --.� --- � " --�:,.75511�::._— . � r , >> r ti •�' caLFCOURSE RD 4 �15550o1a13oo+" � 4j S�'���� W � W q ��� I� ��`` �, ;.� � ryy y u � Q ',wi �� ; � V +�.�f _ `� � Srysr�, � a�° -� � ; a " i ,-ro � I a�. � ._ � . . � t " 1' � u, �r-� � ���5�5�aoo�9o7o��t ' � , � , . `�s �`��— Z-F'�_ � � �. ' �y"� V Q , �? �4. �rW : f f � � �p.. }' � r �T. �- + � e�� = eY' 9: ,Z Hsr ,;;3 i � w � � ^'�W ��J9 � .:a. �� .. _�-' �A�* ' . ,� /: � _ F15v033p� , -' � I 35556p1a1402 .15550�101s�H w ;� � � `ki 3 550339(10�'I,0' ��T`yy: , _ 6 7 2 ST' �` ti p `� �.�,M��r.� � \`ST� � - '", �r� � g ,: 1'..�'. �i . I-1. • �I.`+ ussuo3naiao �ssz2�aooaio � . , ' r� . ff �155bVb5'td7t� 5550U11�1�SI /. '�""er y�—� � . 3 i 3 t ``i ��p� r � \\�i/ � . ��"�'� :4 •.. �Y��LL �s•} �a `+� �, �.i. . .'15522600d029:� .� - . � i55b68 � i. "t�4 :. . - D.�� V� 93Jfl ��j��� ' ,° � U]ytl � �. i � `%:i�:� .,. �_ • . .. . .r . . , . Image 11: Site C 24�Page i � � Montic;ello tNSB DEMAND ANALYSIS AND CONCLUSIONS This section of the report utilizes data collected in the previous sections to calculate demand for owned and rental housing in Monticello through 2021. �lc��u�ir�� 1)��t��r�d w����nl����is Demand for additional housing in Monticello will primarily come from household growth. Replacement of older homes will contribute to the need for additional residential development, as will pent-up demand. Table 1 X outlines our calculations for owner and rental housing demand in Monticello from 2017 to 2021. TABLE 1-X: POTENTIAL HOUSING DEMAND OVER NEXT 5 YEARS 2017 to 202� A. Household growth* B. Replacement Demand C. Total housing growth (A+B) D. Percent rental demand E. Rental housing demand (C x D) F. Pent-up rental demand G. Total rental housing demand (E+F) H. Percent owner demand 500 10 510 Range to occur over ne� 5 years: 30% to 35% 153 to 179 64 64 217 to 243 I� 65% to 70% I. Total owner housing demand (C x H) � 332 to 357 * Includes projected growth for Monticello (263 households) and one-fifth the growth in the remainder of the market area (237) Sources: US Census Bureau, ESRI forecasts, WSB & Associates, lnc. Table 1-E shows that Monticello is projected to add 263 households between 2016 and 2021 and the remainder of the market area is projected to add 1,183 households. We estimate that Monticello can capture one-fifth of the demand in the remainder of the market area, or 237 households, by providing greater housing choices to retain and attract some potential residents who otherwise would live in the surrounding areas. Thus, an additional 500 housing units would need to be developed from 2017 to 2021 to satisfy projected household growth in Monticello. Replacement demand is generated from the loss of housing or the need to replace housing units that are physically or functionally obsolete. A review of Monticello's housing stock from the U.S. Census revealed that there are about 340 housing units built prior to 1950. It can be assumed that these homes' values are decreasing at a faster rate relative to other types of housing. Most of these homes are in good condition4, and we estimate that 0.5% percent per year should be removed annually from the housing supply because of obsolescence, which equates to two units every year or ten units over the ne�t five years. A healthy rental market is expected to have a vacancy rate of about 5% to allow for sufficient consumer choice and unit turnover. With pent-up demand (a shortage of units), persons who would normally form ' Good condition meaning that these homes do not need renovated or demolished. 25�I�ag� L � � Montic;ello WSB their own rental households, instead decide to move in with other persons in a housing unit, live with their parents, or live in housing outside of the area and commute to j obs. In 2016, Monticello had an estimated 1,300 rental households, of which 20 units (1.5% from Table 2-� were vacant. This percentage is well below the stabilized vacancy rate. In order to bring the overall vacancy rate to a balanced 5%, about 64 additional rental units would need to be added to the city. Based on demographic and market trends, we project 30% to 35% of the housing demand from household growth and replacement-need in Monticello between 2017 and 2021 will be for rental housing. There is a total of demand for appro�mately 217 to 243 rental households (about 44 to 49 annually). This demand is for all types of rental housing — from subsidized and market rate general occupancy housing to senior housing. An estimate of 65% to 70% of housing demand in Monticello between 2017 and 2021 is projected to be for owner-occupied housing. This equates to demand for 332 to 357 households from 2017 to 2021 (66 to 71 homes annually.). This would equate to the projected demand for single-family homes and townhomes. These demand projections are based upon the housing market's behavior over that last ten years. During this time, we experienced the market correction of 2009-2013 which greatly impacted the calculations causing the projections to be historically low. It can be anticipated that if the housing market continues its recovery, the demand for both rental-occupied and owner-occupied households will be greater than the projections. It can be further extrapolated that in response to the increased regulations on mortgages, and the high rates of student debt, the demand for rental housing will dramatically increase. �t��a° 13��sixt� �����y���Yid�ta���� Proj ected demand for new housing products in Monticello through the remainder of the decade from current and future residents is outlined on the preceding pages. In addition, there are other programs that Monticello can implement to assist in meeting local housing needs and improving the quality of the existing stock. The key programs/initiatives that Monticello should pursue are outlined below. • Monticello needs to closely monitor rental vacancy rates and availability as new rental properties are added to the community. The addition of the 202-unit Monticello Crossing apartment complex has set a precedent with 200 of its units being occupied during a very short timeframe. This indicates a clear pent-up demand that should continue to increase at the housing market recovers from the correction. • Monticello should also work towards converting vacant housing units into renter-occupied to reach 30-35% oftotal housing units. In its current state, the rental housing inventory sits at 25% of total housing units. As seen in Table 1 I, the City is projected to have seventy-six (76) additional vacancies. • Monticello needs to maintain its low housing costs and low percentage (19%) of residents paying more than 30% of their monthly household income on housing to reduce the negative impacts from another housing correction like 2006-08. This percentage is much lower than county and state averages (27% and 29% respectively). • Monticello should make efforts to increase affordable rental housing inventory so they are available for younger generations of citizens as well as baby-boomers and empty-nesters. The latter two cohorts of residents are downsizing their living spaces and need affordable places to 26�Y�ag� L � � Montic;ello WSB live. Combining affordable housing options with job opportunities could lead to an increase in 19-24-year-old residents. • Monticello should also ensure an adequate amount of higher-end rental units for higher-income individuals looking to retire and downsize their living quarters. While these individuals are looking for smaller spaces, they are not willing to surrender the amenities to which they have grown accustom. • With the expected increase in the percentage of residents over the age of sixty-five (65), Monticello needs to increase their stock of senior housing units. Refer to Table 1-O for projected figures. • Monticello should consider the development of housing in the downtown area to accommodate young seniors and millennial residents. Both cohorts share the same preference for areas that are rich with amenities and walkable, and housing properties that have lower maintenance requirements. 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J , t � y �yi � % li � �' f � �• �� x� �•' ; 1' � "��P�`�' r � � � ' � ,',r��.. ,�.i::i � �� / � � N!S � � �. - �. .,�`,� ¢ r� �� i a '� '� �1 �, �., � r � � � °' �,� �Y '3 •.,5, �� �� � +� ����� J -y �i �y i, � x i` f . � ' -.�. � � Y � ;:�� � I' * '��r. � :� 6 � I � ' - �� �C , � �� h/ • I�.�'* �y�"'i',� ry,.�- � �`�,_ '.7r ��...���, ,�,� �..°..�1� � �g� r � �i� f� r •�^ ���.. �� ��r ;/' 'yiY���..';� ' r .sJ"�r �` � i� t, 4J�J�' �' � . �, 8 e � �� �Y '.,7 � r �', .�.. . ' i � � � �S � : t ,�, �' �. ' °�'� �. , � o � �� f +� �r �:,: r { � , � ���a�� .t ,�' '�y�� �� ' �� 11, '' +^,�,r `r � � ;4f � ,� '"� , e .. � � � '�i y� � :,���i1 ,q r� 4r. � ,� ;t' � a �i p/r, `� / ,,'�( � r ..+�{'-t :.. r:a �.� ?.,i,�t�IFr,�.. ��� �t� ..��' '"�y, � �,.., ,., � .�� , ...M+,:r ./ I ,;t� � f`'y�.r �F ' 7R�" � y .� f �.�,'/ � r �' YlI� '� � } � N";� �; � �L ! G% �;7 T ,11.1�`!. "�f' � ,� ` ..�� . - �; ��:� ; �(, �' r r, �' � "� � � �r' '� r'u► " �`' ' ' . � � +k, ��.f �7�J,,v ,'i' ��'� ,�rR. � � � , '�". / �r . �t �' `� kr I a.' � 1 � , �� 6�Ai � / � ' � � � 5 1 � .� . . � � � �,�� � 1 / r.� - .. . ,p� ' ..�iyfL �' �.' . ��..T E.� �/ . '.rt�:id1'. �.'�—�! .� � h �.A' : ,,. s��+ �P-'�'� ., ar�� . .�.. , . � `�. , ;1 ��' � � r � �� �1 The future vision for Monticello provides the foundation for the Comprehensive Plan (the vision statement appears in Chapter 1). 1he Land Use Plan, in turn, provides the frameworl< for how land will be used to help achieve the future vision for Monticello.lhe Land Use Plan seel<s to reinforce desirable land use patterns, identify places where change is needed and guide the form and location of future growth. The Land Use Plan for Monticello was shaped by a variety of factors, including: ► Community input gathered through public worl<shops and Tasl< Force discussions. ► The existing built and natural environment in Monticello. ► 1he vision for Monticello's future. ► Factors described in the Community Context chapter of the Plan. ► Systems plans for transportation, sanitary sewer and water supply. lhis represents a departure in form from the 1996 Comprehensive Plan. 1he 1996 Plan included the land use plan as part of a broader Development Frameworl< section. The 1996 Plan described Monticello's land use plan by general district of the community as a means of attending to the unique issues in each district. 1he 2008 Update of the Comprehensive Plan establishes a separate land use chapter consisting of the following components: ► A section on Future Growth describes the implications of future resident growth and the amount of growth anticipated by the Plan. ► 1he Land Use Plan Map (see Figure 3-2) shows the land uses assigned to each parcel of land. ► Land Use Cate o� further explain the Land Use Plan by describing the land uses depicted in the Map. lhis section includes land use policies describe the objectives that Monticello seel<s to achieve through the implementation of the Land Use Plan and the supporting elements of the Comprehensive Plan. ► Focus Areas provide a more detailed discussion of characteristics, goals and policies for 1<ey areas of the community. 2008 Comprehensive Plan � Updated 2014 Land Use � 3-1 Future Growth In lool<ing to the future, Monticello must not just consider the qualities of the future community, but also the nature of growth. Assumptions about the amount and pace of future growth are important parts of the foundation for the Comprehensive Plan. Growth has several important implications for the Comprehensive Plan: ► Growth proj ections are used to plan for the capacity of municipal utility systems. ► Growth projections are used to create and manage finance plans for capital improvements. ► The school system uses growth projections to forecast enrollments and to plan for programs and facilities. ► Marl<et studies use growth projections to analyze the potential for locating or expanding businesses in Monticello. ► The characteristics of growth influence the amount of land needed to support this development. ► Growth adds trips to the local street system. ► Assumptions about growth influence the policies and actions needed to implement the Comprehensive Plan. For these reasons, it is essential that the Comprehensive Plan state assumptions of the nature of future growth. A challenge in forecasting future residential development is that the Comprehensive Plan influences, but does not control, the factors that determine where people live. lhese factors include: ► Quality of life. ► Access to employment. ► Availability of desired housing and neighborhood options. ► Affordability. ► Competition from other places in the region. Given these uncertainties, the Comprehensive Plan seel<s a balance between optimism and prudence. For many reasons, the Plan should not significantly understate the growth potential of Monticello. 1he balancing force lies with the implications of assuming Figure 3-1: Growth Trends and Projections more growth than is reasonable. 1he chart in Figure 3-1 shows the projection of future residential growth assumed in the Comprehensive Plan. The projections assumes that the rate of growth slowly rises over the next five years and continues at a level of 150 units per year from 2012 to 2020. This amount falls below the 229 units/year average for 2001 through 2005. lhis rate of growth is intended to reflect several factors. Monticello will remain a desirable place to live, attracting both builders and residents. Housing marl<et conditions will improve from the weal<nesses experienced in 2006 and 2007. A combination of marl<et conditions, local policy objectives, and changing demographics may reduce the potential for achieving and sustaining higher rates of residential growth. Slower future growth reflects the belief that achieving the objectives of the Comprehensive Plan, in particular seel<ing more move up housing, will result in less development than in previous years. Growth Policies 1. 1he Citywill consistendyreview recent development trends and update growth projections to serve as a basis for public and private planning. 2. Over the life of this Comprehensive Plan, growth will occur within the boundaries of the current municipal boundaries and the Orderly Annexation Area. 3. Future development should be guided to locations that utilize existing infrastructure and locations 3-2 � Land Use City of Monticello that facilitate the construction of street and utility systems that meet the objectives of the Comprehensive Plan. 4. The Comprehensive Plan does not anticipate action by Monticello to annex or extend utility systems to property immediately north of the Mississippi River. Development in this area will place additional traffic on STH 25 (particularly in the Downtown area) and channel investment away from other parts of the City, especially the Downtown. Land Use Plan Map 1he Land Use Plan Map (shown in Figure 3-2) shows the desired land use for all property in Monticello and the Orderly Annexation Area 1he land use plan depicted in this map builds on the previous community planning in Monticello. The Comprehensive Plan uses the Land Use Plan to define the broad land use patterns in Monticello. 1he Land Use Plan seel<s to: ► Organize the community in a sustainable manner. ► Mal<e efficient use of municipal utility systems and facilitate the orderly and financially feasible expansion of these systems. ► Provide the capacity for the type of growth desired by the community. 1he Land Use Plan Map is only one piece of the land use plan for Monticello. 1he other parts of the Land Use chapter of the Comprehensive Plan worl<with this map to explain the intent and objectives for future land use. Further, this map lays the foundation for land use controls that are used by the City to implement the Comprehensive Plan. Land Use Categories 1he Land Use Plan Map uses a set of specific categories to guide land use in Monticello. One element missing from the 1996 Comprehensive Plan was a description of the land use categories shown in the Land Use Plan. 1he ability to use the Comprehensive Plan as an effective land use management tool requires a definition of each land use. lhese definitions provide a common understanding of the basic characteristics of each category used in the Land Use Plan. 1he 1996 Plan relies on three basic categories of private land use: residential, commercial and industrial. Each of these categories is further divided into subcategories that distinguish between the character, type and intensity of development desired in different locations. 1he 2008 update of the Comprehensive Plan uses a different approach to achieve similar land use patterns. The Land Use Plan map depicts series of "places" for private development: Places to Live, Places to Shop, Places to Worl<, and Downtown. lhis approach is based on the following rationale: ► lhese broad categories more clearly illustrate the pattern of development and the plan for future growth. ► Although residential land uses vary by type and density, they share many public objectives. ► This approach mal<es a more enduring comprehensive plan. 1he Plan can guide an area for the appropriate land use without the need to predict future community needs and marl<et forces. ► The Plan relies on policies, land use regulations, performance standards and public actions to provide a more detailed guide for land use and development. This approach conveys more flexibility and control to the City Council and the Planning Commission. Role of Zoning Regulations Zoning regulations play a critical role in implementing land use plans in Monticello. StateLawgiveszoningregulationspriorityovertheComprehensive Plan. If land uses are different, zoning regulations control the use of land. Zoning regulations are particularly important in the application of the land use categories in the Monticello Comprehensive Plan. The "places to" land use categories set forth a broad and flexible land use pattern for Monticello. Zoning regulations (and other land use controls) will be usedto determinethe appropriate location for each form of development and other regulations on the use of land, consistent with policies ofthe Comprehensive Plan. 2008 Comprehensive Plan � Updated 2017 Land Use � 3-3 Figure 3-2: Land Use Plan Map 3-4 � Land Use City of Monticello Figure 3-3: Land Use Plan - Places to Live 1he remainder of this section describes the categories used in the Comprehensive Plan in greater detail. Places to Live 1he Comprehensive Plan seel<s to create and sustain qualiryplaces for people to live in Monticello (see Figure 3-3). This category designates areas where housing is the primary use of land. The emphasis behind Places to Live is to help ensure that Monticello offers a full range of housing choices, while preserving and enhancing the quality of neighborhoods. Although a single land use category, Places to Live does not suggest housing is a homogenous commodity or that any type of housing is desirable or allowed in any location. When someone says "house" the most common image is a single family detached dwelling. lhis housing style is characterized by several features. There is a one-to- one relationship between house and parcel of land - the housing unit is located on a single parcel. 1he house is not physically attached to another housing unit. 1he housing is designed for occupancy by a single family unit. 1he typical neighborhood in Monticello is made up exclusively of single family detached homes. The primary variables become the design of the subdivision, the size of the lot and the size and style of the dwelling. Many older neighborhoods in Monticello (north of Interstate 94) were built on a traditional grid street system. Over the past thirty years, development patterns have moved to a new suburban curvilinear 2008 Comprehensive Plan � Updated 2017 Land Use � 3-5 pattern, characterized by curvilinear street layout with the use of cul-de-sacs. A variety of factors, including consumer preference and housing cost, have increased the construction of attached housing in recent years. Duplexes, twin homes, quads and townhomes are common examples of this housing style. Although the specific form changes, there are several common characteristics. Each housing unit is designed for occupancy by a single family. The housing units are physically attached to each other in a horizontal orientation. Places to Live will include some neighborhoods designed to offer a mixture of housing types and densities. Mixed residential neighborhoods create a pattern that combines single-family detached housing with a mixture of attached housing types. Using good design and planning, these mixed residential neighborhoods can achieve a higher density without compromising the overall integrity of the low-density residential pattern. This integration strengthens neighborhoods by increasing housing choice and affordabilitybeyondwhat is possible by today's rules and regulations. It also avoids large and separate concentrations of attached housing. It enhances opportunities to organize development in a manner that preserves natural features. A complete housing stocl< includes higher density residential areas that consist of multi-family housing types such as apartments and condominiums. In the near term, the Comprehensive Plan does not anticipate expanding the existing supply of higher density housing. It is lil<ely that Monticello will need additional higher density housing to: ► Provide housing suited to the needs of an aging population. ► Facilitate redevelopment in the Downtown or in other appropriate locations of the community. ► Provide housing needed to attract the worl< force required to achieve economic development goals of the City. Higher density residential land uses should be located and designed to be compatible with nearby residential or mixed uses, on lots able to accommodate larger buildings and added traffic generation. In addition, siting factors for high density residential uses will prioritize access to services and amenities including public utilities, parl<s, trails and open space, and commercial and/or medical services. It will be important, when considering potential designation of high density housing development, that the parcels meet the specific standards of the zoning district, and such development can be accommodated in accordance with the policies in this Plan. While these comments and the comments in the zoning ordinance are intended to be instructive they are not necessarily the only factors that might come into play on specific properties. Policies — Places to Live The Comprehensive Plan seel<s to achieve the following objectives for residential land use in Monticello: 1. Provide a range of housing choices that fit all stages of a person's life-cycle (see below). 2. Support development in areas that best matches the overall objectives of the Comprehensive Plan. Develop quality neighborhoods that create a sense of connection to the community and inspire sustained investment. The Comprehensive Plan seel<s to maintain the quality and integrity of existing neighborhoods by encouraging the maintenance of property and reinvestment into the existing housing stocl<. Changes in housing type should be allowed only to facilitate necessary redevelopment. 4. Create neighborhoods that allow residents to maintain a connection to the natural environment and open spaces. 5. Seel< quality over quantity in residential growth. Achieving the objectives for quality housing and neighborhoods may reduce the overall rate of growth. 6. Reserve areas with high amenities for "move up" housing as desired in the vision statement. lhese amenities may include forested areas, wetland complexes, adjacency to parl<s and greenways. Some of the City's policy objectives require further explanation. 3-6 � Land Use City of Monticello Figure 3-4: Life Cycle of Housing Supply ��� g � - .� y � � �-.. �f � •� �i ,, � � Life Cycle Housing Housing is not a simple "one size fits all" commodity. Monticello's housing stocl< varies by type, age, style and price. 1he Community Context chapter of the Comprehensive Plan describes the characteristics of the housing stocl< based on the 2000 Census and recent building permit trends. The concept of life cycle housing recognizes that housing needs change over the course of a person's life (see Figure 3-4). Young adults may not have the income capacity to own the typical single family home. lhis segment of the population often seel<s rental housing. Families move through different sizes, styles and prices of housing as family size and income changes over time. With aging, people may desire smaller homes with less maintenance. Eventually, the elderly transition to housing associated with options for direct care. As noted in the Vision Statement, Monticello's population will continue to become more diverse. lhis diversity will be seen in age, race, culture and wealth. lhese factors will influence the housing needs of Monticello. 1he Comprehensive Plan recognizes these differences and seel<s to create a balanced housing supply that encourages people to move to and stay in Monticello. lhis balance may not be achieved solely by marl<et forces guided by this Land Use Plan. Actions by the City may be needed to promote the creation of housing in underserved segments of the marl<et. Neighborhood Design A priority for the community is diversification of the housing stocl< by providing more "move up" housing. In this context, the term "move up" housing refers to larger homes with more amenities in structure and setting. lhis type of housing may not be exclusively single-family detached or low density. Attached forms of housing with medium or high densities may meet the objectives for move up housing in the appropriate locations. In this way, the objectives for move up housing and life cycle housing are compatible and supportive. While every community wants a high quality housing stocl<, this issue has particular importance in Monticello. It is a 1<ey to retaining population. Without a broader 2008 Comprehensive Plan � Updated 2017 Land Use � 3-7 variety of housing options, families may encouraged to leave Monticello to meet their need for a larger home. It is a factor in economic development. One facet of attracting and retaining professional jobs is to provide desirable housing alternatives. It must be recognized that creating move up housing requires more than policies in the Comprehensive Plan. 1he Comprehensive Plan provides a guide for achieving the desired results. 1he desired outcomes require private investment. This investment occurs when demand exists or the City can provide an incentive to attract investment. Part of attracting move up housing comes from creating great neighborhoods – places that will attract and sustain the housing options sought by the City. Neighborhoods are the building blocl< of Places to Live in Monticello. 1he goal of the Comprehensive Plan is to create and maintain attractive, safe and functional neighborhoods. 1he following policies help to achieve this objective: 1. Neighborhoods should incorporate the natural characteristics of the setting. Trees, terrain, drainageways, and other natural features provide character to neighborhoods. 2. Housing should be oriented to the local street, minimizing access and noise conflicts with collector streets. 3. 1he City will use public improvements to enhance the appearance and character of a neighborhood. Some examples of improvements that define an area include streets with curb and gutter, trees in the public boulevard, street lighting systems, and storm water ponding. 4. Sidewall<s, trails, and bil<eways will connect the neighborhood to other parts of the community. 5. Every neighborhood should have reasonable access to a public parl< as a place for residents to gather and play. All of these elements worl< together to create a desirable and sustainable place to live. Figure 3-5: Relationship Between Development and Natural Features - Parkway -.���� ��'�.���� ��. Y �.�- -,�� '_..:'� ���r' �t �{� �._ ��_:.: � f .�'i ''. .' �, — , t T-- �^ � ', �� ��� :�� : Figure 3-6: Relationship Between Development and Natural Features - Trail Corridor �;; �`1'� T �' .� � .�� .'�'�'`'{�* �. ��.. :k,��' �;_,. �.. .,f =�;,._ �� � _ ; � .. � a�_ I -_ ,._.��4 _ ; I � �.� � � e�_ . � Balancing the Built and Natural Environments 1he natural amenities of the growth areas (west and south) in Monticello should serve as a catalyst for residential development. 1he Bertram Chain of Lal<es Regional Parl< offers the dual assets of natural features and recreational opportunities. Lal<es, wetlands and other natural amenities exist throughout the orderly annexation area. Studies have shown that parl<s and open space have a positive economic effect on adjacent development. An article published by the National Parl< and Recreation Association states that "recent analyses suggest that open spaces may have substantial positive impacts on surrounding property values and hence, the 3-8 � Land Use City of Monticello Figure 3-7: Example of Conservation Design Development . � � �1 OPEN SPACE DESIGN � . �il�-- W: �f- . , wM�F� �"�I - Pastu res � � - Equestnan Facility �� � � - WetlandsEnhancements ��. ��' "M1�� � ' �.,' _ - Conservation Easements �'� � � � �� �, �� til - Central Park �� ` �,+s , �4�, _ � - 27 Acre Park South of Lake + 9 !"�, � �" �� `� ;-� �:k � �� T. � 4 NEIGHBORHOOD FEATURES �- '4' '-'��- ��}," '�� CentralPark � �. Y - �;. { � � � f' r�'�� '.�= �'� p = NoHheast Neighborhood Green ,`+f Y • ''�f: "'��' y� SouthNeighborhoodGreen 7 +,_"' �. . . � r-� , ,�F F� " �.r��� �.""� - Association Dock and Park J r . 5 1`g �� � y �}�.'. � ' . 'S .,' .. /yi,h % � A _ ' i' � �„ � rt ��� �' xM ' �, �4 '* �.. _. �x: r�..�:, � - --- � ,.+ � n!'� property tax base, providing open space advocates with convincing arguments in favor of open space designation and preservation:' Balancing the built and natural environments should provide a catalyst to the types of development desired by the City and in the expansion of the property tax base. In attempting to meet residential development objectives, the City should not lose sight of long-term public benefit from access to these same natural areas. 1he original development of Monticello provides an excellent illustration. 1he majority of the riverfront in Monticello is controlled by private property. Public access to the River comes at points provided by public parl<s. A well 1<nown example of balancing public use with private development is the Minneapolis chain of lal<es and Minnehaha Creel<. Public streets (parl<ways) and trails separate neighborhoods from the natural � .e t�; 'a r � � � , . i_ � ,.�'+� � +� � � . � t ��� , y , �}�� �� �, �'��;` i 4�`' .. � # i j ��� � . • �'� � � - � �� s ��� # Y/ � j` � p �. r ._ Y 1.�� � *�r. NORTHWEST NEIGHBORHOOI Total Housing Units: 98 Semi-Custom, Smgle-Family Homes LotWidth: 82 Minimum Lot Size: 9 900 to 16 000 Sq R House Sq. Ft.: 2 400 to 4 800 Sq. Ft. Price Point Packages: $450,000 to $650,000 NORTHEASTNEIGHBORHOOD Toha/ Hous�ng Un�fs: 66 Custom, Wxury THnn Homes LofWitlfh. 45 x90 Twinhome Lof Size: 4 O50 Sq. R. House Sq. Ff.: 2,800 to 3,800 Sq. Ft. Prvce Poinf Packages: $475,000 to $750,000 f .. _:'i,�, r,�-..� � _ � i �� features, preserving public use and access. These neighborhoods are some of the most desirable in the region, demonstrating that public use and private benefit are not mutually exclusive. The figures on the previous page show two options for integrating housing, natural features and public use. Figure 3-5 is the parl<way concept. An attractive street forms the edge between the parl< (or natural area) and the housing. A multi-use trail follows the street while homes face the street and draw on the attractiveness of both the parl<way and the natural amenities. 1he alternadve is to use a trail corridor to provide public access to these areas (see Figure 3-6). 1he trail follows the edge of the natural area. Access to the trail between lots should come at reasonable intervals. There are a variety of real world examples of how Minnesota cities have used conservation design strategies to promote high quality development and 2008 Comprehensive Plan � Updated 2017 Land Use � 3-9 preserve the natural environment. The illustrations in Figure 3-7 shows elements of the Chevalle development in Chasl<a. Using open space design and rural residential cluster development techniques, HI<Gi's concept plan provides for a variety of housing options while preserving a majority of the area as permanent open space, including public and common open spaces. Amenities would include access to protected open spaces (lal<eshore, woods, meadows, pastures, wetlands), wall<ing/bil<ing trails, equestrian trails and facilities, common outdoor structures and an environmental learning center. 1he experience of other cities and developments can guide future planning and decision mal<ing in Monticello. Attractive Places Attractive physical appearance is one of the most common attributes of Places to Live in Monticello. Attractiveness is a combination of design, construction and maintenance. These characteristics apply to buildings and sites. Attractiveness is relevant for both private and public property. Attractiveness reflects individual pride in property as well as an overall sense of community quality. The City may use a variety of regulatory tools to influence the potential for attractive neighborhoods: owner. lhis relationship may include a third party property manager retained by the owner to perform maintenance duties. Owners of attached housing may act collectively through a homeowner's association. In multiple family rental housing, the tenants have no direct responsibility for property maintenance. lhis discussion does not imply a preference, but is intended solely to highlight the differences. lhis understanding becomes relevant when public action is needed to address a failure of the private maintenance approach. Nuisance ordinances are one tool used by the City to address failures in private maintenance and use of property. Economics also influences property maintenance. 1he greater the portion of income devoted to basic housing costs (mortgage/rent, taxes, utilities), the less money available for maintenance activities. Maintenance can be deferred, but not avoided. If left unchecl<ed, this cycle of avoided maintenance produces negative effects. Safe Places Safety is frequently identified as the most desired characteristic of Places to Live. Several aspects of the Comprehensive Plan and city government influence safe neighborhoods. ► Building codes and additional regulations to 1. promote quality construction. ► Subdivision regulations control the initial configuration of lots. ► Zoning regulations establish limitations on the size of lots, placement of the house on a lot, relationship of structure size to lot area, and building height. ► Nuisance ordinances enable the City to prevent and correct undesirable uses of property. ► Other City regulations control other ancillary uses of residential property. Maintenance of property is a factor in sustaining quality neighborhoods. 1he tenure (form of ownership) influences the responsibility for housing maintenance. 1he owner-occupant of a single family detached home is solely responsible for the maintenance of building and grounds. If this same home is rented, maintenance responsibilities are often shared between tenant and The City will encourage existing neighborhoods and develop new neighborhoods where people are involved in the community, interact with their neighbors and support each other. 2. 1he City will design, build and maintain a system of streets that collects traffic from neighborhoods, allows movement within Monticello to jobs, shopping and other destinations and minimizes traffic that "cuts through" neighborhoods on local streets seel<ing other destinations. 3. The City will provide, directly or by contract, services needed to protect people and property. 4. 1he City will support the Land Use Plan with a water supply that provides clean water at pressures needed to support fire suppression. 5. The City will protect the natural environment by requiring new development to connect to the sanitary sewer system and by adequately treating all municipal wastewater. 3-10 � Land Use City of Monticello Figure 3-8: Land Use Plan - Places to Work 6. The City will provide water that is safe to drinl< by protecting water supply sources. Places to Work This land use is primarily intended for industrial development. Places to Worl< seel<s to provide locations for the retention, expansion and creation of businesses that provide jobs for Monticello residents and expansion and diversification of the property tax base. In order to be a center of employment with a wide range of job opportunities, it is critical that Monticello preserve sufficient land for Places to Worl< over the next twenty-five years. These land uses can be one of the most challenging to locate because of its need for convenient transportation access and influence on surrounding land uses. In planning for future Places to Worl<, the Comprehensive Plan considers the goals of the community; what type of industrial development is sought; and what factors should be considered when locating an industrial land use. In planning for sustaining existing businesses and attracting new development, it is necessary to understand why Places to Worl< are important to Monticello. 1he objectives for this land use include: ► Expanding and diversifying the property tax base. ► Providing jobs with an increasing opportunity for people to worl< and live in Monticello. 2008 Comprehensive Plan � Updated 2017 Land Use � 3-11 Figure 3-9: Land Use Plan - Places to Shop ► ► Promoting wage levels that provide incomes needed to purchase decent housing, support local businesses and support local government services. Tal<e advantage of opportunities to attract companies that have a synergy with existing companies in the community, including suppliers, customers and collaborative partners. ► Encouraging the retention and expansion of existing businesses in Monticello. 3• Policies - Places to Work 1. The City will use the Comprehensive Plan to designate and preserve a supply of land for Places to Worl< that meets current and future needs. 2. Consistent with the vision for the future of Monticello, the Land Use Plan promotes the 4. establishment of business campus settings that provide a high level of amenities, including architectural controls, landscaping, preservation of natural features, storage enclosed within buildings, and other features. The zoning ordinance, subdivision regulations and other land use controls will also be used to create and maintain the desired business campus settings. Places to Worl< supports the City's desire to attract businesses that complement existing businesses or benefit from the community's infrastructure, including power and telecommunications. The Comprehensive Plan also recognizes that Places to Worl< should provide locations for other general industrial development in the areas 3-12 � Land Use City of Monticello of manufacturing, processing, warehousing, distribution and related businesses. 5. Places to Worl< may include non-industrial businesses that provide necessary support to the underlying development objectives of this land use. Examples of supporting land uses include lodging, office supplies and repair services. Additional public objectives and strategies for Places to Worl< can be found in the Economic Development chapter. Places to Shop Places to Shop designate locations that are or can be developed with businesses involved with the sale of goods and services. Places to Shop may include offices for service businesses. Places to Shop guides land uses that are both local and regional in nature. Policies - Places to Shop � °�,._ � '. � - i� ' � . - - � . <# � � � y �� �� � � _ • ��M1 ' .;. -_ The Comprehensive Plan describes issues, plans and policies related to the Downtown in several sections of the Plan. between the commercial parcel and adjacent residential uses. These policies help to create sustainable locations for Places to Shop in a manner that enhances Monticello. In guiding land uses for Places to Shop, the Downtown Comprehensive Plan seel<s to: 1 2. 3. 4. 5. 1he Comprehensive Plan seel<s to attract and retain businesses that provide goods and services needed by Monticello residents. The Comprehensive Plan seel<s to capture the opportunity for commercial development that serves a broader region. Places to Shop with a regional orientation should be located where the traffic does not disadvantage travel within Monticello. Commercial development will be used to expand and diversify the local property tax base and as an element of a diverse supply of local jobs. Places to Shop will be located on property with access to the street capacity needed to support traffic from these businesses. Each parcel should supply an adequate supply of parl<ing that mal<es it convenient to obtain the goods and services. Building materials, facades and signage should combine with public improvements to create an attractive setting. 7. Site design must give consideration to defining edges and providing buffering or separation The Embracing Downtown Plan was adopted by City Council resolution 2012-011 on January 9, 2012. The City einbarked on an update to the Downtown Plan in 2017and the Downtown Sinall Area Plan was adopted by City Council resolution 2017-070 on SepteJnber 25, 2017 and is herein incorporated as an appendix of the Coinprehensive Plan. Downtown is a unique commercial district that is part of Monticello's heritage and identity. It is, however, no longer possible for powntown to be Monticello's central business district. 1he mass of current and future commercial development south of Interstate 94 along TH 25 and in east Monticello along interstate 94 have replaced the downtown area as primary shopping districts. 1he future success of downtown requires it to be a place unlil<e any other in Monticello. The Comprehensive Plan seel<s to achieve the Vision, and Goals described in the Downtown Small Area Plan. Downtown is intended to be a mix of inter-related and mutually supportive land uses. Businesses involved with the sale of goods and services should be the focus of Downtown land use. Residential development facilitates reinvestment and places potential customers 2008 Comprehensive Plan � Updated 2017 Land Use � 3-13 in the Downtown area. Civic uses draw in people from across the community. During the planning process, the potential for allowing commercial activity to extend easterly out of the Downtown along Broadway was discussed. 1he Comprehensive Plan consciously defines Cedar Street as the eastern edge of Downtown for two basic reasons: (1) Downtown should be successful and sustainable before new areas of competition are created; and (2) The Comprehensive Plan seel<s to maintain and enhance the integrity of residential neighborhoods east of Downtown. More than any other land use category, Downtown has strong connections to other parts of the Comprehensive Plan. Therefore the City has adopted the Downtown Small Area Plan as its guiding planning document for the Downtown. The following parts of the Comprehensive Plan also address community desires and plans for the Downtown area: ► ► The Land Use chapter contains a specific focus area on Downtown. The focus area contains a more detailed discussion of the issues facing the Downtown and potential public actions needed to address these issues. The operation of the street system is a critical factor for the future of Downtown. The Transportation chapter of the Comprehensive Plan and the Transportation Frameworl< of the Downtown Small Area Plan influence the ability of residents to travel to Downtown and the options for mitigating the impacts of traffic on Highway 25 and other Downtown streets. ► The Parl<s chapter of the Comprehensive Plan and the Parl<s & Open Space Frameworl< of the Downtown Small Area Plan provide for parl<s in the Downtown and the trail systems that allow people to reach Downtown on foot or bicycle. ► The Economic Development chapter of the Comprehensive Plan and the Implementation chapter of the Downtown Small Area Plan lay the foundation for public actions and investments that will be needed to achieve the desired outcomes. Goals - Downtown ► Improve Pine Street for all users. ► Shift the center of Downtown to Broadway and Walnut Streets ► Encourage Small and Medium Scaled Investments ► Become a River Town Policies/Guiding Principles - Downtown 1. � 3. 4. 5. I� Downtown is a special and unique part of Monticello. It merits particular attention in the Comprehensive Plan and in future efforts to achieve community plans and objectives. Downtown is intended to be an inter-connected and supportive collection of land uses. Land uses should support and enhance the overall objectives for powntown. The City will build on core assets of greater Downtown Monticello as identified in the Downtown Small Area Plan. lhese assets include the preponderance of civic activity, proximity to the river, a grid of streets and small blocl<s, and a varied building stocl< - both old and new. A shared vision among property owners, business owners and the City is the foundation for effective team worl< and long term success. A shared understanding of realistic marl<et potential is the foundation for design and generation of a healthy mix of land uses. This includes both residential and non-residential land uses. Housing the core blocl<s is encouraged to be medium density (apartments or townhouses) and to face the perimeter of the blocl<s and be pedestrian friendly, either with street level commercial uses or doors, stoops, porches, plazas, or other features that face the sidewall<. A safe, attractive human scale environment and entrepreneurial businesses that actively emphasize personal customer service will differentiate Downtown from other shopping districts. Property values can be enhanced if property owners and the City share a vision for powntown and actively seel< to cultivate a safe, appealing environment and attractive mix of inter-related uses. 3-14 � Land Use City of Monticello 8. Housing in the Downtown can facilitate necessary redevelopment and bring potential customers directly into the area. Housing may be free- standing or in shared buildings with street level commercial uses. 9. Downtown is the civic center of Monticello. To the degree possible, unique public facilities (such as the Community Center, the Library and the Post Office) should be located in the Downtown area as a means to bring people into the Downtown. 10. Downtown should emphasize connections with the Mississippi River that are accessible by the public. It is especially important to design Broadway so it is easy and safe to cross as a pedestrian or cyclist - with an emphasis on Walnut and Cedar Streets. 11. Downtown should be a pedestrian-oriented place in a manner that cannot be matched by other commercial districts. Pedestrian scale is achieved at the scale of both the blocl< and the building. Blocl<s should reflect the historic fabric of the City and buildings should present a pedestrian friendly facade to the sidewall<. 12. Downtown should have an adequate supply of free parl<ing for customers distributed throughout the area. The Downtown should be well connected so customers are comfortable wall<ing 1-2 blocl<s from their car to their destination. 13. The City and business community must worl< actively with MnDOT to ensure safe local access to the Downtown. All of these policies worl< together to attract people to Downtown and to enhance the potential for a successful Downtown environment. Mixed Use The Mixed Use is a transition area between the Downtown and the hospital campus. It has been created in recognition of the unique nature of this area. 1he area serves two functions. It is the edge between long-term residential neighborhoods and a major transportation corridor (Broadway Street). It is also a linl< between the Downtown, the hospital campus and the east interchange retail area. 1he primary goal of this land use is to preserve and enhance housing in this part of Monticello. Any non-residential development should be designed to minimize the impacts on and conflicts with adjacent neighborhoods. Policies - Mixed Use 1 2. 3. Development should not have direct access to Broadway street. Access should come from side street. Non-residential development should be limited to small retail, service and office businesses. 1he scale, character and site design should be compatible with the adjacent residential neighborhoods. All non-residential development will be oriented to Broadway Street and not to 3rd Street or River Street. 4. Commercial development compatible with the Downtown should be encouraged to locate there. 5. More intense housing and commercial uses may be allowed if directly related to the hospital. Places to Recreate Places to Recreate consist of public parl<s and private recreation facilities. The land uses are essential elements of the quality of life in Monticello. 1he Parl<s and Trails chapter of the Comprehensive Plan describes the current parl< and trail system and the future plan to maintain and enhance this system. The Comprehensive Plan is only one aspect of managing the land use for public parl<s and private recreation facilities. 1he City's zoning regulations place these locations into a zoning district. Often, the purpose of the zoning district is to guide private development, such as housing. Under current State Law, zoning regulations "trump" the Land Use Plan and govern the use of land. With the potential for the redevelopment of golf courses, it is important the Comprehensive Plan and other land use controls worl< in concert to achieve the desired outcomes. The City's plans and policies for parl<s, trails and open space can be found in the Parl<s chapter of the Comprehensive Plan 2008 Comprehensive Plan � Updated 2017 Land Use � 3-15 Places for Community Places for Community consist of public and semi- public land uses. Public uses include all governmental facilities (city, county, state and federal) and schools. lhis category also applies to churches, cemeteries, hospitals, and other institutional uses. It is important to note that these land uses relate only to existing land uses. 1he Comprehensive Plan does not guide the location of new churches, schools, public buildings and other institutional land uses. Places for Community will be needed in the Northwest area as it develops. lhese uses are typically allowed in residential areas and governed by zoning regulations. These institutional uses (such as schools and churches) are important parts of the fabric of the community, but require guidance to ensure a proper fit with its residential surroundings. New institutional use should be allowed in residential areas under certain conditions. These conditions should address the aspects of the use that conflict with desired characteristics of residential neighborhood. Criteria for locating an institutional use in a residential land use area include: 1. Size. Large buildings and site areas can disrupt neighborhood cohesiveness. Use in lower density in the near term in this Plan. The objective is to encourage rural and agricultural uses, preventing barriers to future development opportunities. It is anticipated that the City will grow into portions of the Urban Reserve as planned land use areas become fully developed and capacity for future growth in needed. The Urban Reserve is not simply a holding area for future development. Parts of the Urban Reserve are lil<ely to be preserved as natural resource areas or for agricultural purposes. Future planning will consider the locations in the Urban Reserve best suited for development. Interchange Planning Area The Interchange Planning Area encompasses undeveloped land in the northwest part of Monticello around the site of a potential west interchange with Interstate 94. The purpose of this land use is to preserve the area for future development and prevent the creation of development barriers. If built, the area should be planned to support a mixture of commercial, employment and residential land uses. The interchange location and the routes of future connecting roads are solely for illustration. Future land use issues in this area are discussed in the Focus Area for Northwest Monticello. residential areas should not be more than [to be Private Infrastructure determined] square feet in lot area. 2. Parl<ing. Parl<ing may spill on to neighborhood streets without adequate on-site facilities. 1he parl<ing needs will vary with the use of the facility. Each facility should provide adequate on-site or reasonable off-site shared parl<ing based on the use of the facility. 3. Traffic. Institutional uses should be oriented to designated collector or arterial streets. 4. Lighting and signage. Site lighting and signage needs may resemble commercial uses. lhese site factors should be managed to fit the character of the surrounding residential development. Urban Reserve 1he Urban Reserve contains all property in the Orderly Annexation Area that it not shown for development lhis category applies to Xcel Energy's power plant and railroad right-of-way. lhis category recognizes the unique role of the power plant in Monticello. Greenway 1he Land Use Plan Map shows a"potential greenway" ringing the western and southern edges of Monticello. 1he Greenway is intended to provide an environmental corridor that connects large community parl<s and open spaces to neighborhoods, schools, shopping areas and places to worl<.1hey serve to protect environmentally sensitive areas such as natural habitat, wetlands, tree canopy, and drainage ways. Land within this corridor could be comprised of a combination of public and private open space. Development would not be prohibited within the greenway but would be 3-16 � Land Use City of Monticello reasonably restricted to ensure that development is carefully integrated with the natural environment. The Greenway is intended to shape development patterns in a manner that is sensitive to the existing environment and harmonious with the landscape. 1he Greenway creates opportunities for a continuous trail corridor connecting neighborhoods with large parl<s and open spaces. A trail within this corridor is intended to be fully accessible to the general public. 1he following are the City's goals for the Greenway: 1. To provide (where possible) a continuous green corridor connecting large community parl<s and open spaces to neighborhoods, shopping areas, schools and places to worl<. 2. To connect people to significant places. 3. To protect the community's natural resources (trees, ponds, wetlands, slopes, etc). 4. To create environmentally sensitive development and design. 5. To provide opportunities for corridors for wildlife movement and ecological connections between natural areas. Focus Areas For certain parts of Monticello, the intentions of the Comprehensive Plan cannot be adequately described solely with the land use map and the related category descriptions. 1he following Focus Areas provide a more detailed examination of the plans and issues in 1<ey locations that will shape the future of Monticello. Northwest Monticello lhis focus area includes the entire northwest corner of the community. 1he land use objectives in this area include: 1. Encourage development in this part of the community to utilize infrastructure investments and to provide the capacity to develop in high amenity areas. 2. Provide for a variety of housing alternatives based on the natural features and the surrounding land uses. Areas with high natural amenities or Figure 3-10: Land Use Plan - Northwest Monticello proximity to the Bertram Chain of Lal<es Regional Parl< should be reserved for move up housing. 3. Expansion of existing Places to Worl< in a manner that creates more "head of household" jobs. 4. Preserve and promote public use of natural areas, including the establishment of greenway corridors. 5. Identify and preserve 1<ey street corridors. 6. Preserve areas for future Places to Shop and Places to Worl< around a future highway interchange, if such an interchange proves viable. The Comprehensive Plan envisions that growth will extend westward from existing development. 1he initial high amenity residential development is expected to occur along the eastern perimeter of the Bertram Chain of Lal<es Regional Parl<. No Places to Live are planned with the boundaries of this parl<. Future development will be influenced by the capacity of the street system, including plans for the construction of a highway interchange. 2008 Comprehensive Plan � Updated 2017 Land Use � 3-17 1he remainder of this section describes the land use issues and objectives for northwest Monticello in greater detail. West Interchange A new interchange with Interstate 94 is a critical should not be limited to the property in the Interchange Planning Area land use category. An interchange and the supporting street system has future land use implications for a broader area. Bertram Chain of Lakes Regional Park variable in the future development of this area. VC/hile Another critical factor in the future of the Northwest the Comprehensive Plan recognizes the potential for a future interchange, in 2008 it is only a concept. It is not part of the State's plans for future highway improvements for this district. This interchange could be a valuable part of the long- term transportation plan for Monticello if it is part of a new river crossing that removes traffic from Highway 25. Without the bridge, the primary benefit is to provide access to this area and expand the development opportunities. 1he Land Use Plan assumes that the interchange is a future possibility. For this reason, property adjacent to the interstate has been placed into a combination of Places to Live, Worl< and Shop. 1he Plan seel<s to prevent development from limiting the location of the interchange (or blocl< it) and to preserve the area around the interchange for future commercial, industrial and residential development. Without the access provided by the interchange, commercial, industrial and residential development should not be anticipated in this area. Ideally, the City will pursue additional investigations following the adoption of the Comprehensive Plan. lhese investigations should be designed to resolve some of the unanswered questions related to the interchange. lhese questions include: ► Where should the interchange be located? ► What is the potential for a new river bridge connection? ► How would the interchange be funded and what are the financial and land use implications for the City? Area is the former YMCA camp that is being converted into the Bertram Chain of Lal<es Regional Parl<. 1he City and Wright County formed a partnership in 2005 to start purchasing portions of the 1,200 acre YMCA property. As of 2013, 495 acres have been purchased through state grants with another 300 planned for acquisition. The YMCA will lease land at the regional parl< to run their Camp Manitou Summer Camp. The area around this parl< is guided for future Places to Live. No residential development should be allowed within the parl<. The amenity of this land and the regional parl< provide an excellent setting (around the perimeter of the parl<) for some of the "upscale" neighborhoods and housing desired by the City. In planning for this parl<, it is important to lool< beyond the boundaries of the parl< and to its context in the broader community. 1he illustration in Figure 3-11 highlights several 1<ey community development opportunities: ► 1he City must create connections between the parl< and other sections of Monticello. ► Building streets in a"parl<way" design emphasizes the desired qualities of a regional parl< and of the surrounding Places to Live and Worl<. ► 1he parl<is a critical piece in creating a"greenway" system that linl<s to the Mississippi River and may, over time, ring the community. Industrial Growth 1he Northwest area is a cridcal location for current and future industrial development. 1he Mondcello Business Center, located south of Chelsea Road and west of 90th ► What time frame should be used in planning for Street, has already started to be developed as a high the improvements? amenity environment with protective covenants that 1he answers to these questions provide invaluable guidance to future land use and transportation in Monticello. The area included in future planning address building materials, loading docl<s, outdoor storage, and landscaping. In order to provide sufficient land for Business Campus uses over the next 25 years, 3-18 � Land Use City of Monticello Figure 3-11: Community Connections to Regional Park � Existing _ _ Natural . Land ;1 ' Potential ' .� Greenway i J• Corridor ----- --- —= t - 39 - Existing �_.�'�� Natural r Land Potential Parkways 7To Mississippi River .• $_,°i � Existing �' �;'--�. Green '' ' Corridor the Comprehensive Plan extends this land use south to of this roadway should be identified and preserved as the planned expansion of School Boulevard. development occurs. It is important to recognize that activity generated by business development can create conflicts with residential development. 1he Comprehensive Plan seel<s to create both high quality business parl<s and residential neighborhoods in this area. Careful site planning and development management will be needed to meet these objectives. School Boulevard Extension School Boulevard has several other Comprehensive Plan implications: ► lhis major collector street will influence the nature of adjacent land use. ► 1he Northwest Area serves as a good example of the ► need to coordination land use and transportation planning. An extension of School Boulevard is needed to provide access to the area and to connect development to the rest of the community. 1he route Streetscape improvements would help to define the high quality character desired by the City as a gateway to the Bertram Chain of Lal<es Regional Parl< and to new neighborhoods. The street is a means for bringing trail connections to the parl<. 2008 Comprehensive Plan � Updated 2017 Land Use � 3-19 Golf Course In 2006, the Silver Springs Golf Course was part of a development proposal (Jefferson at Monticello) that would have redeveloped this property mixing golf and housing. 1he development did not proceed beyond the environmental review. The Comprehensive Plan shows the area as Places to Recreate based on the continued use as a golf course. This designation does not preclude a future proposal and Comprehensive Plan amendment for residential development. It is lil<ely, however, that this scale of new development will require the access provided by a new highway interchange. The Comprehensive Plan seel<s to fill in other development areas and mal<e effective use of other infrastructure investments before extending utilities for redevelopment of the golf course. Downtown Focus Area Downtown Monticello needs special attention in the Comprehensive Plan. Following the 2008 Comprehensive Plan update, the community undertool< a separate downtown planning process. lhis process resulted in the Embracing Downtown Plan. In 2017, recognizing the changes in the retail marl<etplace, and more specifically marl<et changes and investments in the Downtown, the City engaged the community in a planning effort for the core blocl<s of the Downtown. On September 25, 2017, the City adopted a Downtown Small Area Plan, which provides guidance for the downtown, including the core blocl<s and extending to include the full Downtown Central Community District (CCD). 1he Plan emphasizes the importance that the community places on Downtown. 1he 2008 Comprehensive Plan Update relies on the Downtown Small Area Plan as a guide for public and private actions in the Downtown area. Revitalizing and sustaining Downtown Monticello requires a collaborative effort of the City, businesses, property owners and other stal<eholders. Planning for the future of the Downtown must recognize the practical realities facing commercial development in Downtown: ► The configuration and traffic volumes of Highway 25 significantly reduce opportunities for direct access from the Highway to adjacent properties. ► Traffic volumes on Highway 25 will continue to increase. Greater volumes and congestion act as an impediment for people living south of I-94 coming to Downtown. ► There is no controlled intersection on Highway 25 between Broadway and 7th Street. 1he lacl< of a controlled intersection combined with traffic volumes mal<e pedestrian connections between Downtown and residential areas to the east very difficult. ►"Big box" and retail development continue to occur in other parts of Monticello. lhese businesses directly compete with the Downtown and attract smaller businesses (that might otherwise consider a Downtown location) to adjacent parcels. Downtown Goals ► Improve Pine Street for all users. ► Shift the center of Downtown to Broadway and Walnut Streets ► Encourage Small and Medium Scaled Investments ► Become a River Town Land Use ► Create a Center to Downtown that is active throughout the day and into the evening — year- round. The Walnut / Broadway Intersection should become the heart of this area. ► Improve connections to the River by locating uses that benefit from open spaces and activities associated with the River. ► Improve the entry experience from the north. ► Maintain a shopfront District along Broadway, west of Pine Street comprised of traditional main street (mercantile) buildings that have retail/restaurant space on the ground floor and housing or offices above. ► Create a development pattern on Pine Street that benefits from high visibility and regional access. ► Infill Walnut Street and Cedar Street with mid- scale housing (2-4 stories) that creates an effective transition between the in-town neighborhoods and the Downtown. 3-20 � Land Use City of Monticello Figure 3-12: Land Use and Development Framework from the Downtown Small Area Plan F .�M _ _ �y f � �� � . �� ��. `� ��'' ' � .'..� �, �� � f�, *�i r� 5 i; , • "`� '�� � S •-+.,� f ��t �� � a., �``'.� �• � `.r1.� �.�n�� �{ ; � ���� �^''-�. _ / 4� f � ' i �-w, �� f�•� � *�f �� � .f� �� �� ��,%� �Y ���:� 4r,: C � � �. � `� . � ,. � .�� ��k�'�-.1 . �- � Transportation ► Connect Walnut Street to River Street ► Maintain the River Street / Pine Street signal as the formal entrance to Downtown and an important pedestrian connection across Pine Street. ► Add a traffic signal at 4th and Pine to help balance the grid and turning movements at the Pine / Broadway Intersection. ► Modify Walnut / Broadway and Cedar / Walnut Broadway intersection to prioritize pedestrian crossings and access to the river. ► Narrow the travel lanes on Walnut Street, add parl<ing where possible and ensure continuous safe and pleasant sidewall<s. ► Add sidewall<s at the perimeter of blocl<s where they are not currently present. ► Discourage direct property access to Pine Street; favoring the side streets wherever possible with through-blocl< lanes or easements. ► Allow direct property access to Blocl< 52 from Pine Street in order to reduce volumes at the Pine / Broadway intersection. ► Consider traffic calming at River Street and Locust (or Linn) to prevent excessive speeds - similar to River Street and Cedar Street as an example. Open Space and Parks ► Redesign East and West Bridge parl< to include an amphitheater, water feature, riverfront access, 2008 Comprehensive Plan � Updated 2017 Land Use � 3-21 picnicl<ing, and additional space for passive parl< use. ► Improve Front Street Parl< to include improved boat landing and space for nature oriented programming. ► Connect the two Bridge Parl<s with Front Street Parl< with improved pathways and trails. Design all three parl<s as a single parl< with multiple uses. ► Provide access to the islands with a seasonal bridge ► Create small pocl<et parl<s mid-blocl< on Broadway to offer plazas that connect to parl<ing lots in the middle of the blocl<. ► Redesign Walnut Street between River Street and Broadway as a special street that can be closed and used for festivals and events throughout the year. ► Consider all sidewall<s for opportunities to enhance greenery and public art. Emphasize Walnut Street, River Street and Broadway as the main pedestrian corridors in Downtown. ► Use public art throughout the parl<s and corridors to distinguish Downtown as a place of cultural expression and celebration. ► Worl<closelywithlocalbusinesses, residents (new and existing) to ensure local parl<s and open spaces are appropriately designed and programmed for their varied needs. ► Create north / south bil<e access to the river along Walnut and Cedar through a complete streets policy. Encourage bicycle crossing of Pine Street at 4th, River and 7th Street. Downtown Design and Image ► 1he Downtown Small Area Plan provides guidance for the core blocl<s of the Downtown. VC/here the Downtown Small Area Plan does not provide specific design guidance, the City's zoning ordinance will guide design and image. South Central Focus Area Continued residential growth to the south is an important element of the Comprehensive Plan. lhis growth achieves several objectives: ► It helps to facilitate the expansion of the sanitary sewer system in conjunction with the reconstruction of Fallon Avenue. lhis sanitary sewer capacity is � ��� . �� �,� _ M � ,c �,_ ' �„� � ' � � _ `, ti �, . � h� ;� �-= �'�.� '� �_: .r — 4' _ „. �,^ � rr•:' . __ —h � �I.�e #' - - .� ,. •F� ._ � � `w^ ��, � �,;i ;: � � {�� r � ` ' _ � � � � � � '�,' • � � ..�,� k � i� �* — "� � +fr"-''+1 Y9 v �-._ " The Comprehensive Plan seeks to enhance the existing commercial core along Broadway by building sfrong connecfions wifh fhe riverfronf and fhe cividrefail disfricf on fhe soufh end of Walnuf Sfreef. . �'��'�:, -,-"^'«'� r. � � + : } ,��,,, � � s � � , �:. ��`F�' x I��Sf+s���� '4.. � ., k}�f�', .�� -.,�;, "� ��,� �,� � �� � �: ,' �`,�. a -�-�� ti�'5�.. . ;._.►�� . �?� � , ' �e - =�� � _ - _ `�` ..# _ � �— � � . .. � , _ � •,�.4 � - �--',,,:±'_ _ `��. _ _ , - `�� . - �p ; _ ,��a � � " . �,- �--�-- The currenf end of Walnuf Sfreefis a barrier fo improving connecfions befween Downfown and fhe riverfront. needed to support future industrial growth area along Highway 25. ► These areas encourage growth in areas that could use the new eastern interchange with I-94 rather than Highway 25. ► These areas provide appropriate locations for continued growth in entry-level single family homes and medium density housing types. These Places to Live are important elements of maintaining an adequately diverse housing stocl<. 3-22 � Land Use City of Monticello ► Orderly expansion to the south moves development towards area of higher natural amenity. Areas along the southern edge of the Orderly Annexation Area provide another location for potential "move up" housing. A 1<ey to development in this focus area is the construction of the Fallon Avenue bridge. 1he bridge leads to the reconstruction of Fallon Avenue and the related expansion of municipal sanitary sewer and water systems. Future development will be limited without additional utility capacity. East Focus Area The Comprehensive Plan places greater priority on growth to the west and south. Development should be directed to areas that most effectively achieve the objectives of this Plan. Several factors could cause the City to encourage future residential development in the East Focus Area: ► Increased overall housing demand that exceeds the capacity to support growth in other areas. ► Traffic congestion on Highway 25 that increases the need to channel use to the east interchange. ► The need to solve stormwater and drainage management issues (Ditch 33) in this area. Solving drainage issues allows eastward expansion along County Road 18. Future growth in the east should continue to fill in the development area within the Orderly Annexation Area on the east side of Monticello. 1he natural features in these areas allow for higher amenity neighborhoods. This growth can occur with new collector/arterial street corridors. Figure 3-13: Land Use Plan - South Central Figure 3-14: Land Use Plan - East Focus Area 2008 Comprehensive Plan � Updated 2017 Land Use � 3-23 t;f-l�i�°��t� :�: ��i�l�i� i3(�`i�it;iS Section 3.4 Residential Base Zoning Districts :�,�bsection (1) R-4: Medium-High Density Residence District Section 3.4 (I) R-4 Medium-High Density Residence District The purpose of the "R-4", medium-high density residential district is to provide for medium to high density housing in multiple family structures of 13 or more units per building, and at densities of between 10 and 25 units per acre. The district is intended to establish higher density residential opportunities in areas appropriate for such housing, to be determined by the City on a case by case basis. The City of Monticello shall zone land to the R-4 District only when, in its sole discretion, all aspects of the property support the potential uses of the R-4 district, including location, private and public services, and compatibility with existing and future land uses in the area. In making a determination as to the suitability of a site for R-4 rezoning, the City will prioritize the following site and area factors: Replacement Land Uses. R-4 zoning fits the following zoning categories and circumstances: • Land already zoned for R-3 • Land currently zoned for commercial uses, but which would not be considered "prime" commercial (the City would like to protect "prime" commercial areas that show the most promise for that use in the future). Proximity to Other Residential Neighborhoods. • R-4 zoning may be allowed in proximity to other medium to high density residential areas, however the nature and concentration of existing multi-family structures shall be carefully considered to avoid an over concentration of these uses. R-4 zoning may be allowed in proximity to lower residential uses, if it is determined that the high density site can address the site and area factors provided here. Architectural Compatibility and Building Massing • In the vicinity of lower density residential areas, R-4 District buildings need to be lower profile with regards to size and mass, or need to be screened or buffered by distance and natural features. Requirement for Adequate Public Facilities. High density residential development shall be located to provide for the following essential services and amenities: • Access to public parks, pathways, and open space, without overburdening them. R-4 development may be required to provide additional facilities to meet the City's open space planning policies. • Connection to public utilities. • Access to major streets, or at the very minimum, avoidance of traffic generation that would utilize local streets in lower density residential areas. • Proximity to commercial and/or medical services. This district is intended to provide exclusively multiple family housing as defined in this ordinance, as opposed to lower density housing types such as townhouses, two-family homes, or single family homes. City of M�rr�ieeilo Loning Ordinanc� h��� V 05 �I�A�i�� 3: Z��+liP�ffC; �/S7"�l�l`S Section 3.4 Residential Base Zoning Districts Subsection (1) R-4: Medium-High Density Residence Distri�t Minimum and Maximum Density: 10 — 25 dwelling units per acre Maximum Base Density: 1,750 sq. ft. per unit (25 units per acre) Maximum Density through Planned Unit Development: 1,750 sq. ft. per unit (25 units per acre) Base Lot Area • Minimum = 30,000 square feet Base Lot size Gross Density a Max Density w/o PUD Net lot area per du Frontsetback Corner side setback Interior side setback Rear setback to building Clear open space setback from ROW Clear open space setback from Property Line Buffer Req. to Single Family Common open space per du Landscaping Parking requirements Arc h itectu re Roofs Unit square feet Garages Garage Setback Garage Doors R-4 District Multi-Family (13+ units / building) 30,000 sf 10-25 du/acre NA Max 1,750 sf/du 100 feet 40 feet 30 feet 40 feet 60 feet 40 feet — no more than 50% of any yard facing a street covered with parking/drive aisles C buffer 500 sf/du 2 ACl/ 2,500 sf open space + 4 shrubs / 10 feet bldg. perimeter 2.25 spaces/du, with max I.I space/du uncovered 20% street min frontage covered with enhanced materials, horizontal siding of steel or cement-board only (no vinyl or aluminum) 5:12 pitch, plus roof ridge line articulation of 3 feet min. 900 sf finished floor area per unit, minimum Attached or Underground Detached accessory garages allowed only after base requirements are met May not access street directly — must be served by interior driveway Must include glass and decorative panels if visible from public street or adjoining residentiallv zoned orooertv Page I 06 City of Monticello Zoning Ordinance cHaPrER a: zo►v►►vG DrsrRrcrs Section 3.4 Residential Base Zoning Districts :�,�bsection (1) R-4: Medium-High Density Residence District PUD Options for Multi-Family (6 — 12 units / building) Multi-Family Buildings Landscaping Increased landscape quantities and/or sizes beyond code minimums; Special landscape features includin� water features, recreational structures, patios, etc. Open Space Increased open space areas per unit beyond code minimums of 10% or more Parking All required garage parking underground Building Materials Arc h itectu re Site Work Housing for Seniors restricted to 55 vears of age or more Increased use of stone, brick beyond front, or on other exterior walls Extensive use of ornamental features, building and/or roofline articulation, fenestration and building wall undulation atypical of other buildings in similar zoning districts Use of decorative paving materials in parking, sidewalks, etc.; Extensive use of ornamental site lighting or similar features. Accommodations to design and density through PUD process only City of Monticello Zoning Ordinan�� Page I 07