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Planning Commission Minutes 01-06-2004 . . . MINUTES REGULAR MEETING - MONTICELLO PLANNING COMMISSION Tuesday - January 6, 2004 6:00 P.M. Members Present: Dick Frie, Richard Carlson, Rod Dragsten, Lloyd Hilgart, David Rietveld Council Liaison Brian Stumpf leffO'Neill, Steve Grittman - NAC, Angela Schumann Absent: Staff: 1. Call to order. Chair Frie called the meeting to order at 6 P.M., noting the absence of Council Liasion Brian Stumpf 2. Approval of the minutes of the regular Planning Commission meeting held December 2.2003. A MOTION WAS MADE BY HILGART TO APPROVE THE MINUTES OF THE DECEMBER 2, 2003 PLANNING COMMISSION MEETING. DRAGSTEN SECONDED THE MOTION. MOTION CARRIED. 3. Consideration of adding items to the agenda. None 4. Citizens comments. None 5. Open House/Workshop - Discussion regarding potential amendments to the comprehensive plan establishing an acceptable mix of single family and attached housing in low density residential districts. Steve Grittman provided the staff report, noting that the overall Monticello land use plan was developed to identify areas of potential growth. In particular, the plan outlines long range transportation corridors and illustrates potential development areas along those corridors. Many ofthese proposed growth areas have been defined as low-density residential. To this point, the City has guided a more organic mix of low- density uses, including a mix of single family and attached dwellings. The low- density designation accommodates R-IA, R-l, R-2A, and R-2 zoning classifications, provided that overall density guidelines are met. Planning for these areas has used a guideline of a maximum of three units per gross acres, per parcel. Any development has to stay within that maximum and the standard of 4 units per developable acre (Amended from "40 units per developable acre - 2/3/04). In anyone development Planning Commission Minutes ~ 01/06/04 . within a low density area, 2 out of every 3 has to be single family, meeting traditional R-l standards. The Planning Commission has been involved in decisions that do not meet those requirements. Grittman indicated that those guidelines are concurrent with a more flexible planning approach, allowing developers to determine the best mixes based on land, rather than providing a very specific designation about what types of housing should appear where within each development, much like a zoning map. Staff believes that planning ofthis nature keeps attached housing values higher, avoiding over-concentrations, lowered values and related problems, such as traffic. This mix of housing also breaks up visual styles. Developers have thus far been very cooperative with this style of planning. Grittman indicated that it may be worthwhile to provide more guideline detail within planning documents in order to stay consistent. Grittman referred to the supporting documents to illustrate that Monticello is well within the current range oftownhome to single-family dwelling ratios in respect to surrounding communities. Monticello's actual density is a little over 2.5 per acre. This density meets basic R-l requirements. . Grittman posed the following questions for the workshop discussion: . Should these guidelines be formalized into the planning code? . Are there other alternatives or guidelines that should be discussed? . How much attached housing are we willing to consider in the new low density areas? . How will a formal decision affect long range land use plan in current and proposed annexed areas, and the comprehensive plan? Chairman Frie informed the audience that no decision on the ratio would be made this evening. Input would be gathered and a recommendation would be prepared if necessary . Chairman Frie opened the public hearing. Roger Fink of Woodside Communities ofMN, a single family housing home builder and developer, addressed the commission, noting that he is involved in several active projects in surrounding communities. Fink encouraged the concept of a less prescriptive plan that allows creativity on the part of the developer. Such an approach permits the developer to perform land use analysis, and to evaluate market trends. He also expressed support for the concept of integrating attached with single-family dwellings, as they have had success with an integration of products. He did note the rising cost of housing and achieving attainable house prices for families. . Mike Benedetto, Superintendent of Schools addressed the commission, representing the School Board. He expressed the opinion that anyone decision affects many others. As such, there should be a spirit of cooperation within the community. He related that since 2000, the educational system has undergone severe budget cuts. His concern is the flat growth of student population in Monticello, due to the fact that 90% -2- Planning Commission Minutes - 01/06/04 . of school funding is based on student enrollment. Therefore, continued growth in student enrollment is essential for funding. Currently, Monticello is averaging a 50 student growth per year. He noted that this is an unusual figure when one considers growth in the area and surrounding communities. Other districts are experiencing a growth rate of 5-1 0%, while Monticello's is only 2%. Benedetto related that this may potentially be a result of the number oftownhomes. He provided examples of the low number of students the district gained from townhome developments versus single- family developments. He also noted that without open enrollment (a net gain of 100 students) Monticello's school district would actually be in decline. Chairman Frie asked whether apartments were included in his numbers. Benedetto indicated more students come out of apartments than townhomes. . Mike Wigen, 321 Riverview Drive (Amended from 8617 Darrow Avenue NE- 2/3/04), addressed the Commission in his capacity as a member of school board. Wigen related that rather than having unattainable house prices, Monticello has an abundance of starter homes. With starter homes, families with school age children move on to other communities because of a lack of larger, "family home" stock. Wigen believes that Monticello needs more of these middle ground homes. Frie asked what middle ground referred to. Wigen thought that homes in the $200,000 - $300,000 range represented that sector. He is not opposed to townhomes, just believes that the community needs a better mix of housing styles. Carlson inquired whether the school district had any numbers on exiting students due to a lack of middle ground housing. Benedetto and Wigen indicated there was no information on that issue directly. Tom Holthaus, 12354 Aetna Avenue NE, spoke to the Commission, indicating that the more expensive home prices are, the fewer home buyers meet that qualification. Builders are responsible for selling lots and houses and are in a better position to analyze market trends. Home buyers need an incentive to pay more for homes. Mike Cyr, Monticello area builder and developer, spoke to commission, indicating that his comments were more from a citizen perspective than a builder's. He asked if the City and Planning Commission have a ratio goal, what is it? Frie stated that the goal should be based on the input tonight. Cyr related his belief that if the goal of establishing a ratio is to produce higher value homes, then it is critical to apply it consistently. Frie asked what ratio Cyr would be comfortable with. Cyr indicated an average of approximately 25% townhomes to 75% single family homes. . Dan Goeman, 201 West Broadway, spoke to the commission based on his experience as a realtor. Goeman noted that he has sold properties for both builders and developers. He expressed that a ratio of about 20% townhomes to 80% single family would be appropriate. He also noted that perhaps input from the hospital board would be beneficial. Goeman said that townhomes fill a housing niche for seniors, baby -3- Planning Commission Minutes - 01/06/04 . boomers, and new families. He believes that Monticello's geographic location creates more townhome buyers. He suggested the Planning Commission consider consider the alternative of providing more direction in terms of a demographic mix. For example, a larger or more expensive townhome would attract a different buyer. Goeman also noted the inter-relationships in communities; that those with more disposable income can influence other sectors, including commercial. Frie asked Goeman whether the City Council should consider adjusting the requirements for townhomes? Goeman indicated that he would like more direction given in townhome development, but said that whether we can fill the new higher range housing depends on builders and land. Carlson asked if townhomes satisfy both first time home buyers and retirees? Goeman believes so, indicating that young people are looking for low-maintenance due to busy lifestyle, but sill desire equity. Gene Bauer, builder, spoke to the commission. Bauer's stated opinion is that the market should control the type of community you build. Regulation is difficult. Monticello should adjust guidelines based on those who choose to build here. Schools have to make the best use of the resources available. . Jay Roos, Bison Devleopment, directed comments to the commission. He is currently working on Hunters Crossing, a Monticello development that is progressing based on the 2: 1 ratio. Relating to the ratio, Roos stated that he thinks it is commendable that the city allows amix oftownhomes within low-density. He alluded to greater flexibility with that mixture. He also indicated that similar to single-family homes, townhomes do have variety and range. Monticello should provide a life cycle of housing. Tom Yon Bishe, Heritage Development, addressed the commission. He stated that Monticello has been passed by for many middle- to higher-end single family housing developments due to lack of land supply. He feels that Monticello has things most communities want - including business, industry and other essential amenities. As such, Monticello should be growing. However, land supply has thus far made growth difficult and expensive. Von Bishe stated that Monticello should expand boundaries to make more land available to lower land costs. Von Bishe approves of a flexible approach, which will allow developers to build what is appropriate to the land. Von Bishe also indicated that if there is a need more single-family the trade-off may be higher density in smaller lots. . Charlie Pfeffer, Pfeffer Companies of Maple Grove, addressed the commission. Pfeffer noted that the development ratio process is not unique to Monticello. He explained that Maple Grove went through a similar discussion regarding townhome development 20 years ago. Pfeffer believes that flexibility is a major key to wise development, and that the City should not "allow", but "provide". He stated that the market responds to changes in lifestyle. Providing flexibility will provide -4- Planning Commission Minutes - 01/06/04 . marketability. Setting limits will adversely affect marketability. Pfeffer stated that people will find a place to build a middle level home ifthey want to stay in the community. Workforce housing, transportation, education are the three big issues affecting this. Wigen again addressed the commission, indicating that his position is not to advocate less of any type of housing. He believes it is the planning commission's responsibility to make a good mix. Chairman Frie closed the public hearing. Jeff O'Neill, Deputy City Administrator, provided further staff comments. O'Neill stated that the city's goal is to provide a mix of housing. He did acknowledge a lack of step-up housing. The City was addressing that lack by a recent amendment to the zoning ordinance which increased minimum square footage of single-family home and the foot print square footage. The City has designated R-IA areas, which require a minimum of 2000 finished square feet. Sprit Hills, Carlisle Village, Hillside Farms are all developments currently in progress which contain R-IA areas. Also, O'Neill clarified that Monticello's population is increasing. Monticello is averaging 200-250 new homes per year over the last few years. . Chairman Frie requested that the Commissioners now ask any questions of those who addressed the Commission and to state other related comments. Commissioner Reitveld concurred with the school board's analysis of the housing situation. Reitveld asked Benedetto if there was a correlation in attached/detached housing issues with student population growth in other communities? Benedetto did not address housing issue specifically, but indicated that Big Lake and St. Michael's student enrollment is growing at close to 10% versus Monticello's 2.5%. Dragsten noted that is also important to consider the zoning regulations outside the city. Monticello Township's zoning restriction of 1 home per 40 acres competes with St. Michael, which has no similar regulation. Dragsten said that he thinks flexibility is key. . Hilgart agreed that the township restrictions greatly affect higher-priced home development because the majority of those who build the larger homes want larger lots. He advised that those involved in planning should consistently adhere to zoning standards, particularly in RI-A. Hilgart also asked for a review of the size of townhomes in the R -1 districts. Hilgart inquired if Fink found a large gap between townhouse and single-family in price in same development? Fink answered that too many factors influence the price oftownhomes versus singly-family dwellings, particularly in configuration. Fink views R-IA as an opportunity that will help their products grow and an unmet need. Smart development will anticipate unmet need and create housing to meet the need. -5. . . . Planning Commission Minutes - 01/06/04 Carlson stated that many families don't want to pay new single-family prices. He believes that the next couple of years will tell how the mixed-use areas will develop. Reitveld stated that perhaps the number oftownhomes isn't the question, it's the placement. Consideration should be given to the development layout. Chairman Frie questioned whether a community should develop many townhomes because that's what the market demands, or is it the responsibility of the Planning Commission to help guide the market? He stated that density becomes a main issue in development due to the fact that developers need density to produce profit. The result may be a high townhome ratio. He questioned whether the community and comprehensive plan should be so flexible as to benefit builders who paid too much money for land? However, would a more formal approach to density adversely affect builders and inhibit growth? Carlson stated that so far, the City ratio's of2:1 has been a positive factor. He noted that a recent article in the Star Tribune has a majority of the metropolitan area at ratios closer to 1: 1. O'Neill stated that Monticello is still in an adolescent stage of growth compared to other communities. He noted that formal planning has not occurred in the proposed annexation area. A more general, guided approach has been taken. The majority of the proposed annexation area will be low-density residential. O'Neill indicated that growth will occur in a pattern similar to what is provided in the supporting table, assuming current ratios are followed. Chairman Frie requested that a summary of comments and a staff recommendation be prepared for February's agenda. At that time, the Planning Commission may provide a recommendation for Council. Secondary discussion on this item occurred prior to adjournment. Please see additional comments below. 6. Consideration of re-appointment for expired term of planning commission member David Rietveld. David Reitveld expressed interest in serving another three year term. Chair Frie opened the public hearing. Hearing no further response, the public hearing was closed. -6- . . . Planning Commission Minutes - 01/06/04 A MOTION WAS MADE BY REITVELD (Amended from Dragsten - 2/3/04) TO RE-APPOINT COMMISSIONER ROD DRAGS TEN TO A SUCCESSIVE THREE- YEAR TERM. CARLSON SECONDED THE MOTION. MOTION CARRIED UNANIMOUSLY. 7. Park Dedication/Commercial Property: Report by Jeff O'Neill Jeff O'Neill provided a staff report on the park dedication for commercial and industrial land. O'Neill stated that park dedication for residential developments was scheduled to increase due to increases in land values. For 2004, the dedication fee will be $1200 per unit as compared to the 2003 rate of $868 per unit. The Industrial Committee had studied the issue of park dedication requirements for industrial and commercial. The Parks Commission requested that no dedication fee be required for industrial land, as the committee felt industrial. development did not pose a large strain/use on parkland. However, the Parks Commission did request that research be completed regarding implementing a dedication requirement for commercial development. City staff has studied other city's requirements and will update and provide a recommendation to the Parks Commission. Any park dedication amendment will come to Planning Commission for approval. Secondary Discussion Regarding Item 5. O'Neill asked the Planning Commission members if the 2:1 ratio, allowing flexibility within developments has been an acceptable guideline. Frie stated that its acceptability for the community was the more important question. He indicated that some sectors were missing in the discussion. In speaking with citizens before the meeting Frie had heard such comments as "Only in Monticello are R-l areas high in townhome development". Grittman indicates this incorrect in that it mixed terminology. There are no townhomes in R-l designated areas, there are instead located only in areas designated low-density in the Guide Plan. Low density areas may contain both townhome and R-l zoning. Carlson said that it is difficult to take the proposed annexation area and divide it into zoning districts. However, the Commission still needs to consider the ultimate impact of development on the city while letting developers do their job. Grittman noted that it is common in other communities who have gone to more flexible zoning to define overall density while allowing developers to mix housing styles within that density. This results in a much more interesting residential pattern. -7- . . . Planning Commission Minutes - 01106/04 Developers have a stake in developing an appropriate number oftownhomes in order not to adversely affect single-family homes. Frie asked if this is the case, why does appear as if Monticello is being overrun with townhomes to the average person? Grittman answered that many people are sensitive to townhome development (for various reasons) and that townhouses tend to be built in more prominent areas (higher capacity or traffic areas). Hilgart indicated that setting standards for larger townhomes may be a solution. Frie stated that tax value on single family dwellings verus multi-family dwellings has corne up most often on this issue. Grittman noted that higher density tends to generate more taxes per acre. Charlie Pfeffer, Pfeffer Companies, indicated that if planning is guided by density, the result may ultimately be more green area due to the fact that park area dedication is based on units. He stressed that a change in one area of the development affects the whole development. 8. Adjourn A MOTION WAS MADE BY DRAGSTEN TO ADJOURN THE MEETING AT 8 P.M. REITVELD SECONDED THE MOTION. MOTION CARRIED UNANIMOUSL Y. >t71f~1/M/ /{~ Recorde -8-