EDA Minutes 06-14-2017 (Workshop Meeting)MINUTES
WORKSHOP- ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Wednesday, June 14, 2017 — 4:30 p.m.
Academy Room, Monticello Community Center
Present: Bill Demeules, Jon Morphew, Lloyd Hilgart, Jim Davidson
Absent: Bill Tapper, Steve Johnson, Tracy Hinz
Staff Present: Angela Schumann, Jim Thares, Jeff O'Neill, Wayne Oberg
1. Call to Order
Bill Demueles called the Workshop Meeting of the EDA to order at 4:30 p.rn.
2. Roll Call
3. Consideration of Review of 2017 Housing Study, Kurt Bearinger and Jim
Grombem, WSB & Associates
Kurt Bearinger introduced himself and Jim Gromberg from WSB. They were the
consultants that worked on the Housing Study for the past five months.
Bearinger reviewed the demographics of Monticello with the EDA, noting a 9.8 percent
growth from 2010-2016 and expected growth 5.9 percent growth to 2021. Hilgart asked
how that number compares to other surrounding cities. Bearinger explained that Big
Lake, Buffalo, Elk River, Becker, and Rogers population growth and expected population
growth were explained in Table 1-B. Wayne Oberg asked how those projections were
made. Bearinger stated that the projections were taken from ESRI forecasts and
information taken from the City (such as building permit data).
Bearinger also pointed out that the median value of owner -occupied housing in
Monticello in 2016 was almost at $180,000, with most of the housing being valued from
$150,000 to $200,000. It was suggested that the City focus on later stage housing options.
Bearinger explained that only 19 percent of Monticello homeowners have monthly costs
greater than 30 percent of their income, much lower than the County and State. However,
almost half of renters paid over 30 percent of their household income in rent. It was
explained that status suggests that efforts should be made to decrease rental costs.
Bearinger noted that 72 percent of the units were considered single family in 2014, with a
higher percentage of multi -family homes than the County. He added that cities should
strive to have 65-70 percent owner occupied housing with 30-35 percent renter occupied.
Monticello is very close to this comparison.
Bearinger stated that six housing recommendations were created from the plan which
included: converting vacant and deteriorating housing units into renter -occupied housing
options; maintaining low housing costs and the low percentage of residents paying more
than 30 percent of their monthly household income; expanding rental housing
opportunities (in addition to the Monticello Crossings location); increasing affordable
rental opportunities for new residents, baby boomers, and empty nesters; increasing
senior housing stock; having higher -end rental units for individuals looking to retire and
downsizing their living quarters; and developing housing in the downtown area to
accommodate young seniors and millennial residents.
Lloyd Hilgart expressed a lack in Monticello of adequate higher -end units for higher -
income individuals to retire and downsize to. Jiro Gromberg noted that the
recommendation should be available for renters and owners. Jim Davidson concurred.
Jeff O'Neill asked what the density of projects like these would be. Gromberg indicated
that they are usually 4-5 units per acre with most patio homes being in an association.
Jeff O'Neill asked if views were important to people when residing in the city. Gromberg
thought the setting and quality of neighborhoods was more important rather than the
views.
Gromberg explained the importance of a City plan for redevelopment housing options.
Angela Schumann added the importance of selecting how to accomplish the goals (TIF
funds, etc.), where to focus these efforts, and balancing housing options. Gromberg
recommended that the City gather an inventory of all housing values in Monticello and
target the lowest value homes for redevelopment potential.
Wayne Oberg asked if Monticello was eligible for home improvement grants. Gromberg
stated that the City is eligible for grants such as the Small Cities Development Grant
which is a competitive program.
Discussion continued about the importance of selecting priorities for housing
development and redevelopment. Hilgart expressed interest in grants for rehabilitation
rather than redevelopment. O'Neill explained a methodical vacant/dilapidated tear -down
program through the City of Richfield that improved neighborhoods.
Jeff O'Neill stated that the City has a GIS map of areas that have a tax value of $75,000
and $50,000 or less. He mentioned this may be a starting point for redevelopment
opportunities. Gromberg strongly discouraged a program wherein the EDA begins taking
residential property because of low value.
Schumann asked if WSB would be able to present the study at a future Planning
Commission meeting. Gromberg agreed to do so.
Discussion regarding housing affordability ensued. Gromberg stated that the 30 percent
of income threshold for housing needs will be increasingly difficult to achieve due to
higher amounts of student loan and consumer debt obligations among young households.
Schumarm expressed the need for maintaining pre -1980s rental housing options.
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4. Adiourn
LLOYD HILGART MOVED TO ADJOURN THE MEETING AT 5:45 PM. JON
MORPHEW SECONDED THE MOTION. MOTION CARRIED, 4-0.
Recorder: Jacob Thunander
Approved: July 11, 2017
Attest:
Ji hares, Executive Director
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