Item 7.2 • Item # 7.2.
.• /,L. ..,
City of
Elk _
River
MEMORANDUM
TO: Planning Commission
FROM: Lori Johnson, Finance Director
DATE: March 26, 2002
SUBJECT: Resolution Concerning the Elk River Economic Development
Authority's Development Project Proposals
The Planning Commission agenda includes review of a Conditional Use Permit request by
the City Council for a public safety facility and an expansion of the existing City Hall. In
addition to reviewing the CUP for this project, the Planning Commission is asked to
• consider a resolution related to the financing of this project.
As you may know,the Elk River Economic Development Authority is being asked to issue
lease revenue bonds to finance the construction of the public safety facility and the Elk River
Municipal Utilities'part of the City Hall expansion. Both the EDA and City Council will
hold public hearings on April 8 to discuss the financing plan for both of these facilities and
take public comment on the financing plan. The Planning Commission's role in the
financing process is to review the attached Development Project No. 1 and adopt the
Development Program for the Project(collectively,the"Plans")once it has determined that
the Plans are consistent with the City's Comprehensive Plan. The Planning Commission is
only to address the project in relation to the Comprehensive Plan. All questions and
comments on the financing proposal should be directed to the EDA or City Council.
Action Requested
The Planning Commission is asked to consider the attached Resolution of the Elk River
Planning Commission Concerning the Elk River Economic Development Authority's
Development Project Proposals.
ill
S:\PLANNING\PlanningCommission\Financing Plan.doc
• RESOLUTION 02-01
RESOLUTION OF THE ELK RIVER PLANNING COMMISSION
CONCERNING THE ELK RIVER ECONOMIC DEVELOPMENT
AUTHORITY'S DEVELOPMENT PROJECT PROPOSALS
WHEREAS, the proposals made by the Elk River Economic Development Authority to establish
its Development Project No. 1(the"Project")and adopt the Development Program
for the Project to reflect public development and redevelopment costs and activities;
all pursuant to Minnesota Statutes, Sections 469.090 through 469.108, 469.001
through 469.047, and 469.124 through 469.134, respectively (collectively,the
"Plans"), have submitted to the Elk River Planning Commission (the
"Commission"); and
WHEREAS, the Commission has reviewed the Plans to determine the consistency of the Plans
with the Comprehensive Plan of the City.
NOW, THEREFORE, BE IT RESOLVED by the Elk River Planning Commission that the
Plans are consistent with the Elk River Comprehensive Plan and the Commission recommends
approval of the Plans to the Elk River City Council.
Adopted this 26th day of March, 2002.
IIIMark Pederson
Chair
III
S:\PLANNING\RESOLUTI\Res02-01City Hall.doc
•
Development Project No. 1
of the
Elk River Economic Development Authority,
Including Establishment of Development Project Area and
Adoption of its Development Program
April 8, 2002
•
This document was drafted by: Briggs and Morgan (JOM)
Professional Association
2200 First National Bank
Building
332 Minnesota Street
Saint Paul, Minnesota 55101
Tel: (651) 223-6600
Fax: (651) 223-6450
•
1382791v1
Development Program for Development Project No. 1 •
and Establishment of the Development Project Area
Section 1.1. Definitions. The terms defined below, for purposes hereof, shall have the
following respective meanings, unless the context specifically requires otherwise. As used
herein, the term "development" includes redevelopment, and the term "developing" includes
redeveloping.
"City" means the City of Elk River, Minnesota.
"Council" means the Elk River City Council, the City's governing body.
"County" means Sherburne County, Minnesota.
"Development Program" means the Development Program for the Development Project,
hereby adopted, as the same may be amended.
"Development Project" means the EDA's Development Project No. 1 within the City,
hereby established, as the same may be amended. (Note: the initial Project Area is the City Hall
campus, being the property depicted on the attached Exhibit A.)
"Development Project Area" or "Project Area" means the real property within the City
constituting the Development Project, as amended.
"EDA" means the Elk River Economic Development Authority. •
"Enabling Act" means Minnesota Statutes, Sections 469.090 to 469.108, and all other
powers and statutes referenced therein, including Minnesota Statutes, Sections 469.001 through
469.047 and 469.124 through 469.134.
"State" means the State of Minnesota.
Section 1.2. Background and Purposes. Pursuant to the Enabling Act, the City
established the EDA.
In establishing and maintaining the Development Project and adopting and implementing
the Development Program it is the EDA's purpose to benefit and/or achieve development areas,
goals, objectives, development costs, and activities to the fullest extent permitted by the Enabling
Act and other applicable law. It is hereby found that through such efforts the necessary
development of the City can be assisted and accomplished more consistently, efficiently, and
economically.
Pursuant to Section 469.094, Subdivision 2, of the Enabling Act, the EDA is authorized
to exercise the powers of a city with respect to a development district under Minnesota Statutes,
Sections 469.124 through 469.134, and the powers of a housing and redevelopment authority
under Minnesota Statutes, Sections 469.001 through 469.047, among other powers, and it is the
intention of the EDA and the City that the EDA shall have and be permitted to exercise any and •
all such powers, and all other powers provided pursuant to the Enabling Act, as may be deemed
1382791v1 1
• by the EDA to be necessary or appropriate for the development of the Development Project in
accordance with the Development Program.
The Development Program shall include such goals and activities as may be identified
and pursued pursuant to housing and redevelopment authority powers and development district
powers under Minnesota Statutes, Sections 469.001 through 469.047 and 469.124 through
469.134. Without limitation, these may include the promotion of and assistance to any"project"
within the meaning of Minnesota Statutes, Section 469.002, Subdivision 12, including without
limitation a "redevelopment project," as defined in Minnesota Statutes, Section 469.002,
Subdivision 14.
In addition, the EDA and the City hereby designate the Development Program as and
determine that it is a "redevelopment plan" within the meaning of Minnesota Statutes, Section
469.002, Subdivision 16, and a "development program" within the meaning of Minnesota
Statutes, Section 469.125, Subdivision 3.
Section 1.3. Statement and Finding of Public Purpose. The EDA finds that there is a
need for development within the City and the Development Project to provide necessary public
safety and other government services, to provide employment opportunities, to improve the local
tax base, and to improve the general economy of the City and the State. The sound development
of the economic security of the people in the City depends upon proper development of marginal
and other property, which includes property that meets any one of a number of conditions,
including properties whose values are too low to pay for the public services required or rendered
• and properties whose lack of use or improper use has resulted in stagnant or unproductive land
that could otherwise contribute to the public health, safety, and welfare.
The EDA and the City find that in many cases such property cannot be developed without
public participation and assistance in forms including property acquisition and/or write-down,
assistance in acquiring necessary streets or other public rights-of-way, proper planning, the
financing of land assembly in the work of clearance or development, and the making or financing
of various other public and private improvements necessary for and supportive of development.
In cases where deemed appropriate, the EDA and the City believe it to be in the public interest to
consider the exercise of its powers to advance and spend public money, and to provide the means
and impetus for such development.
The EDA and the City find that in certain cases property within the Development Project
would or may not be available for development without the specific financial aid or other
assistance to be sought, that the Development Program will afford maximum opportunity,
consistent with the needs of the City as a whole, for the development of the Development Project
by private enterprise and otherwise, and that the Development Program conforms to the general
plan for the development of the City as a whole.
The EDA and the City also find that the welfare of the City and the State requires the
active promotion, retention, attraction, encouragement, and development of economically sound
industry, commerce and public service facilities through governmental action for the purpose of
• preventing the emergence of blighted and marginal lands and areas of chronic unemployment. It
shall also be the policy of the EDA to facilitate and encourage such action as may be necessary
1382791v1 2
to prevent the economic deterioration of such areas to the point where the process can be •
reversed only by total redevelopment. Through the use of the powers conferred on the EDA
pursuant to the Enabling Act, promoting public service, economic, housing, industrial and
commercial development may prevent the occurrence of conditions requiring redevelopment and
prevent the emergence of factors contributing or giving rise to blight, marginal land, and
substantial and persistent unemployment.
Section 1.4. Statement of Objectives. The EDA seeks to achieve one or more of the
following objectives with respect to such property within the Development Project as the EDA
may determine and in such circumstances and upon such terms as the EDA may deem
appropriate or necessary from time to time:
(a) To promote and secure the prompt development of property within the
Development Project, including necessary governmental and other public service
facilities and public infrastructures and rights-of-way, in a manner consistent with
existing and applicable land use plans.
(b) To secure the prompt development of property in the Development Project
in order to (i)realize return on presently existing public investment in public utilities,
services, streets, and other infrastructures, (ii) prevent the emergence of or to help remedy
blight or blighting factors and (iii) promote retention and expansion of the City's housing
stock and other property tax base.
(c) To assist such prompt development through the acquisition or write-down •
of certain interests in property within the Development Project which is not now in
productive use or in its highest and best use, to make or defray the cost of demolition,
removal, remediation and/or soil corrections or other site improvements on said property,
and to construct or reimburse for the construction of public improvements and other
facilities on or for the benefit of said property, thereby promoting and securing the
development of other land within the Development Project. Such acquisition may occur
both through negotiation and the power of eminent domain, where deemed necessary to
achieve the desired goals and specific implementation of the Development Program.
(d) Through the implementation of this Development Program, to provide an
impetus for residential and other development desirable or necessary to accommodate
increased population within the City.
(e) To promote and secure additional employment opportunities within the
City, and the diversification thereof, and to prevent the loss of existing employment
opportunities, thereby preventing the loss of valuable human resources.
(f) To provide funding for an ongoing development strategy and to prioritize
the use of available resources.
(g) To implement and revise from time to time, as may be deemed necessary
or desirable, a consolidated and unified Development Program and to finance the •
associated development costs on a area-wide basis.
1382791v1 3
• (h) To employ any of the powers of the EDA or the City for the benefit of the
Development Project in such cases and upon such terms as the EDA or the City may
deem appropriate.
(i) To construct or acquire public and other facilities deemed desirable for the
development of the Development Project.
(j) To promote redevelopment of blighted or marginal property.
Section 1.5. Establishment and Boundaries of the Development Project. The property
within the City which is hereby designated as and which shall initially constitute the
Development Project is the property shown on Exhibit A attached hereto. The EDA and the City
find that the Development Project, together with the objectives sought to be accomplished or
encouraged with respect to such property, constitutes a "development district" within the
meaning of Minnesota Statutes, Section 469.125, Subdivision 9, and a "redevelopment project"
within the meaning of Minnesota Statutes, Section 469.002, Subdivision 14, and that the
Development Program constitutes without limitation a "development program" within the
meaning of Minnesota Statutes, Section 469.125, Subdivision 3, and a "redevelopment plan"
within the meaning of Minnesota Statutes, Section 469.002, Subdivision 16.
Section 1.6. Estimated Development Costs. The Development Program shall include
the estimated public improvement and public development costs to be made or incurred within
the Project Area and financed in whole or in part by such City or EDA revenues as may be
• available for such purposes. The Development Program shall specifically include the following
estimated costs of the development within the Project Area of facilities (1) for City Hall
expansion for the benefit of the Elk River Municipal Utility totaling approximately$1,000,000 in
currently estimated costs and (2) for public safety facilities, including police and fire totaling
approximately$8,000,000 in currently estimated costs.
Should bonding be required, for these public utility and public safety costs, as is
expected, issuance costs, capitalized interest, bond discount and other customary bonding costs
(development costs would also include interest on indebtedness incurred to pay such costs)
would be additional costs of the Development Program. The EDA may issue lease revenue
bonds or other obligations to assist in financing these various costs, in whole or in part.
•
1382791v1 4
EXHIBIT A •
Development Project No. 1
of the Elk River Economic Development Authority
Initially, the Project Area consists of the Elk River City Hall campus, which includes the
following legally-described property:
Lots 1 and 2, Block 1;
Lots 1, 2 and 3, Block 2;
Lot 1, Block 3;
Outlots A, B, and C;
all in Gospodor's Orono Lake Addition, Sherburne County,
Minnesota .
•
1382791vI
BNFORMATIOU
•
City of
Elk
River
MEMORANDUM
TO: Housing & Redevelopment Authority
City Council
Planning Commission
FROM: Heidi Hall, Economic Development Assistant T
DATE: March 25, 2002
SUBJECT: Related Articles on Housing Issues
Attachments
• "Building Momentum," Star Tribune, March 3, 2002
• • "Keys to More Affordable Housing," Star Tribune, February 24, 2002
As the HRA, City Council, and Planning Commission continue to consider the City's
role in addressing the housing needs identified in the recent Elk River Housing Study
completed by the Central MN Housing Partnership, staff will continue to provide
information on related housing issues such as the information provided in the attached
articles.
•
PAGE D8•STAR'UNE • SUN13r ,MARCH 3.2002
BUSINESS FORUM INFORMATION
FEEDBACK:To submit a Forum commentary or a letter to the editor,call 612-673-9071 or fax Business Forum Editor John Oslund at 612-673-7122,or e-mail him at oslund@startribune.com.
Business leaders finally are making the link between affordable
housing and a competitive Minnesota economy.
We must press ahead on this issue, despite these trying times.
h-
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Building momentum
By Chuck Slocum new exhibit at the 2001 Minne- — „ ,,,. ,., additional resources from the is disagreement on one impor-
sota State Fair called"Monop- ' -•'y�. The author public and private sectors will tent point: Businesspeople
ust as education re- oly:A Play for Affordable Hous- i be necessary. want a plan, complete with
y Chuck Slocum is president of the Williston Group,a
form(1980s) and men- ing." > An effective safety net for problem definition, verifiable
• •!t management-consulting organization.Long active
toying (1990s) became Thousands of fairgoers those who are homeless,or on facts, cost parameters, priori-
the
with important causes for played a life-sized version of ._;'�• '_ in civic affairs,Slocum consults with HousingMin
P p y nesota,a business backed organization that's con- the verge of becoming home- ties and accountability meas-
responsive and con- the popular game,raising more ,_ "_ ; less,be put in place. urements.
.t. cerned about the quantity and quality of housing
cerned Minnesota than $250,000 in donations. ),- Hard-to-come-by finan- The nonpartisan vision
available for workers in Minnesota.His e-mail is
businesses in recent decades, More than 80 percent of Min- � cial support must be provided must,over time,assure that the
cslocum@willistongroup.com.com.
housing will be a part of the nesota business owners and first to lower income workers right things happen.Most pro-
current decade's policy push. operators interviewed in a pri- Chuck Slocum in need of housing. fessional advocates, many of
It is unlikely that a long- vate survey said they were con- > Repair and rehabilitation whom have spent years in the
term,effective solution can be cerned about the ability of - of existing housing is an im- movement and have climbed
crafted without the active lead- their employees to find hous- portant part of the solution. considerably further up the
ership of the state's private em- ing. tists have long agreed that little > Builders and developers > The development of pri- housing mountain,believe that
ployers, whose firms provide For the past several years, progress can be made on any deserve to make a reasonable vate, nonprofit community it is time to move ahead with-
the vast majority of jobs. an innovative matching grant front—improved literacy,job profit. land trusts will help contain out further study.
Undeniably, there is a sig- program administered by the training,unwanted pregnancy, > Low interest rates on the costs of land on which af- A fast-track housing plan,
nificant housing challenge, as Minnesota Housing Finance crime prevention, chronic dis- home mortgages and the newly fordable homes can be devel- including a full and fair public
Doug Strandness, chairman of Agency has established finan- ease, mental health, domestic adopted property tax reduc- oped. , debate during the 2002 elec-
the Minnesota Multi Housing cial partnerships with dozens violence,addictive drug use— tions should stimulate afford- > Desity-zoning require- tion campaign,could go a long
Association,pointed out in his of employers investing money without a safe place in which to able housing, particularly for ments should be eased so that way toward meeting the needs
recent article ("Keys to more to create housing for their live. much needed apartments. community housing develop- of some 300,000 families whose
affordable housing" in last workers. In a HousingMinnesota- Last November, 100 busi- ments include a portion of important work as service pro-
Sunday's Business Forum). Still, the housing challenge sponsored letter to Gov. Jesse ness leaders and hundreds of units that are affordable for viders, teachers, bank tellers,
The independent Minneso- must be better defined and the Ventura and state policymak- others as delegates attended lower-income workers, allow- farmers, health care profes-
ta Legislative Auditor conclud- financial implications more ers in January,former Gov. El- the first Minnesota Housing ing them and their families to sionals,food and factory work-
ed in a widely discussed report widely understood even as the mer L. Andersen urged law- Convention in St. Paul. Ideas live in neighborhoods near ers, and retail sales clerks can
a year ago that one in five of state experiences its first seri- makers "to consider the long- that most business leaders at their jobs. be best sustained through a de-
our state's residents lack con- ous economic slowdown in term impact of failing to prog- the convention shared with cent, affordable place to call
venient, affordable housing, two decades. ress on this important issue." housing advocates include the Fast-track plan needed home.
defined as a home that costs a HousingMinnesota (http:// Individual businesses have following:
family no more than 30 percent www.housingminnesota.org) long understood the relation- > The marketplace alone is As business leaders join
of household income before is a three-year-old statewide ship between recruitment and not sufficient to solve all the af- others to advocate for neces-
taxes and deductions. campaign sponsored by 110 retention of productive work- fordable housing needs and sary affordable housing, there
Surveys by the Metropolitan organizations. The group esti- ers and the availability of hous-
Council and others show that mates that during this decade ing. Organizationally, there is
the public now views housing Minnesota must invest more increasing momentum within
as a"top four"issue,along with from all sources—private and the business community.
the economy, education and public—to meet the growing HousingMinnesota's decision
public safety. New Mayors needs for housing of the state's to create the Committee on
Randy Kelly of St.Paul and R.T. lower income workers and its Workforce Housing attracted
Rybak of Minneapolis, whose most economically vulnerable 350 employers and business
campaigns were dominated by citizens, 40 percent of whom leaders who seek to address
housing issues, already have are children. what some call the nation's
begun to outline ambitious There is a direct economic most complicated and costly
plans to secure thousands of payback to communities challenge.
lower-priced rental units and whose housing stock is a result Most business people share
homes in their cities. A select of such investments:For every a perspective that emphasizes
Mayor's Task Force represent- $10 million in housing subsidy, that:
ing various suburban commu- there are an estimated 2,676 > Affordable housing can
nities has presented an array of new jobs and $69 million in be framed as an economic as
affordable housing ideas to the wages paid. The Twin Cities- well as a social concern.
Legislature. based Family Housing Fund 1> The current system ;e
also determined that the lack works well for 80 percent of the
Business interests of affordable housing resulted state's population. •,;
in $137 million in lost annual > Minnesotans have a 75 ;;r
income to area businesses be- percent homeownership rate
There is ample evidence of cause prospective workers can —the highest in the nation.
businesses'growing interest in not find adequate housing. > The private housing
housing. Slumberland, Bach- Indirect benefits also will market could do much more if
man's, Target and two dozen result from the creation of af- given regulatory relief and in-
other companies sponsored a fordable housing.Social scien- centives.
I
1
• FORMATION ) •
PAGE D4•STAISBUNE SUNDAY,FEBRUARY 24.2002
BUSINESS FORUM
FEEDBACK:To submit a Forum commentary or a letter to the editor,call 612-673-9071 or fax Business Forum Editor John Oslund at 612-673-7122,or e-mail him at oslund@startribune.com.
Limited housing for the vast majority of workers means limited growth opportunity for our region.
Our communities hold the keys to the availabilty of new and rehabilitated housing.
Keys to more affordable housing
By Doug Strandness terpretation at the beginning nicipalities will see further in-
.
?:� and another later on.Such last- vestment in quality housing if
ong a moral imperative,L
M:> ,.�•r> t-
_ ; w minute changes can drive up they keep the benefits of prop
affordable housing in-
creasi •nglysignificant-is an econom-
ic ,''
' _„`; : ? ly. consumed by local tax in-
issue that threatens ,
; s,t ;t; Furthermore, interpreta- creases or excessive hikes in
our region's vitalityand ro= 1 x K'•
g �s` ;,? tions have varied widely from apartment assessed values.
growth. The numbers < f:, e<- �"
don't lie. Minnesota needs ~.;, A . - - ,�• ' community to community.
194:i a3k :. Significantsdale legislation thatn was
more affordable housing. _.,.,,<=;1 'r,;- • •, g stereotypes
s, t, >, r` � ,,; passed last session should Overcoming �Jp
According to a recent Fam- -.� sr .< '' ` ' helpensure that municipalities Finally, we must continue
sly Housing Fund report — ""'.% • 11 *' " ;" `' -,4*-,` ` p
"Workforce Housing: The Key ' y interpret building codes in a to debunk outdated percep
s 14'li
, , �� ' uniform manner. It's time for tions of rental housing. While
to Ongoing Regional Prospers- Wt, ,Xy; ,:, ; q
" s. housing local government to cooperate some renegade landlords and
ty" — the Twin Cities metro Wt,
•; ; , ;•,
f'„x remain with the new law and remove tenants dogive apartments a
area loses out on$128 million a •« .. °. ` ? 1
year in consumer spending •1" :x :,= # ' :� afford- this barrier to affordable hoes bad name, the vast majority of
µ„ • i able. ing. rental housing in Minnesota is
and $137 million in annual �'3 We also Building and permit fees well-maintained and of the
business income because it4. '
; , s must make must be fair.Fees are appropri highest quality.
lacks housing for households �� certain that ate as long as they serve to re- Higher-density, smart-
that earn $15,000 to $50,000 ;n,o -••'' " - ' &' land-use plans imburse government for pro- growth development projects
annually. s' ,f
• ,,� ,, vrt < succeed. Rental viding a service (for example, are integrating low-, middle-
Who are these wage earn
z g . •L.f01,1 y e, housing develop- sewer and water). Too often, and higher income housing
ers. They are retail workers, • : t
,t:; s ers want to develop. however,local government im- units. Unless you viewed the
customer service agents, ` However, rigid zon- poses fees on rental housing lease agreements in these
teachers,firefighters,police of- t E' ing restrictions often that far exceed the actual cost planned communities, you
ficers and others.In fact,earn- ;' can handcuff develop- of providing a particular ser- would be hard-pressed to iden-
ers in the $15,000-to-$50,000 ,.., ment. Certain local re- vice and look to rental housing tify the"affordable"housing.
major-
rangerepresent the vast s
- � quirements — such as in effect as a profit center. The numbers don't lie. In a
ity of Minnesota workers.Lim- '"" large minimum lot and Legislation passed last ses- study of affordable rental
•'�•'' ,x
ited housing for workers
I unit sizes, setbacks and Siongiveslocalgovernmentyet housing developments built in
means limited opportunity for street widths—reduce den- 11 Twin Cities suburbs during
growth. sity and increase the cost of the 1990s, researchers found
In some ways, Minnesota isEthe land.To cover those costs,a victim of its own success.The ;r;<'. .: � >,7,. ' w'r,'>':-�!s:.: ;- , ,ti:==°'.e' The author little or no evidence that conmore-expensive housing must struction of affordable rental
robust period of the past seven _;- be built.Another hurdle is that ' I housing eroded property val-
years pushed up housing de- some cities'zoningregulations Doug .
nand and the cost to supply Illustration by Jim Freitag/Star Tribune Strandness is ties or hurt home sales.To the
PP y are inconsistent with their "~i, contrary:
affordable housing. Higher in- land-use plans — making it chairman of the . > Prices of homes located
comes, a growing population impossible to achieve required Minnesota Multi near affordable rental housing
and lower interest rates led to long-term availability of af- While new is nice,we also must densities. Housing As- grew at least as quickly after
higher housing prices. fordable rental housingin Min- look at existinghousingto sociation.He
the rental housing was built as
Meanwhile, the strong nesota? make certain that it is used to also is owner of • before.
economy tightened the labor Many have tried to answer its fullest extent. Better cooperation Dunbar Strand- > Prices of homes located
market and increased con- that question during the past The wrecking ball has elimi- As the Affordable Rental ness Inc.,which helps manage near affordable housing were
struction and land costs.These several years.Some of the most nated too much affordable Housing and Mayors' Task more than 1,500 apartment at least as high as those located
forces have dealt a serious intensive analysis has come housing in neighborhoods Forces have recommended, units in the Cities.He was farther from rental housing in
blow to new construction of af- from two task forces: the Min- throughout the Twin Cities. In communities should collabo- an apartment renter for 24 98 percent of cases.
fordable rental housing in Min- nesota Affordable Rental fact, more housing has been rate more closely with the Met- years. > Homes sold at least as
nesota. Permits for new apart- Housing Task Force, a broad- destroyed than built in Minne- ropolitan Council to ensure quickly after the construction
ment construction in the Twin based group of developers, apolis_and St..Paut during the that affordable housing and.. of nearby rental housing as
Cities fell from about 61,600 public officials, financiers and past decade.Between 1990 and density goals set forth in land- another opportunity to con- they did before the rental
units per decade in the 1970$ nonprofit housing advocates; 2000, Minneapolis lost more use plans are met. tribute to the affordable hous- housing was built.
and 1980s to about 30,000 in and the Mayors' Regional than 4,000 net units and St. - The council has the statu- ing solution by imposing fees Local governments, busi-
the 1990s. I-lousing Task Force, compris- Paul nearly 2,000. While some tory responsibility to review lo- in the fairest manner possible. nesses,schools, the faith corn-
Rehabilitation of older 'ing Twin Cities area mayors. housing no longer was livable, cal land-use plans to deter- We must hold the line on munity and others must help
housing stock also has become Through the work of these much more could have been mine their consistency with re- property taxes. For the past educate and remove the unfair
more difficult because of strin- task forces and others, a road spared. gional plans. However, it does two decades, apartments have stigma of affordable rental
gent building codes. map is evolving for overcoming Regulations and codes not have authority to monitor been taxed at substantially housing.
While apartment vacancy hurdles to affordable housing. make rehabilitation of housing zoning implementation.By re- higher levels than have home- By holding the line on prop-
rates have risen in the Twin Last year, Gov. Jesse Ventura a losing proposition in some porting land-use progress to steads — sometimes by four erty taxes,finding ways to save
Cities in the past few months, and the Legislature addressed communities. Re-examining the council and citizens, there times as much. Under the existing housing from destruc-
it's important to remember a long-standing roadblock to and in some cases relaxing re- would be more accountability property-tax changes passed tion, re-examining policies re-
that this results primarily from construction and renovation of habilitation regulations could to ensure that communities' last year, those disparities will lated to housing costs and dil-
a sluggish economy— a time apartments — high rental restore existing affordable land-use plans lead to more- decrease over the next three ferentiating facts from myths
when many renters double-up property taxes. That tax relief housing without compromis- affordable housing. years,freeing up much-needed regarding rental housing,Min-
with friends or move back in was an important achieve- ing quality. Promoting uniform inter- capital to renovate existing nesota can significantly ease
with parents.This relief is only ment. But more changes are Also,additional units can be pretation of building codes is units and build new apart- the affordable housing crunch.
temporary. needed, made available through zoning another important goal.Build- ments. It won't be easy. But lowering
For example, we must bet- changes by local government. ing codes can be interpreted in We already are seeing area property taxes wasn't easy,and
Seeking the answer ter utilize existing housing. And economic incentives of- a variety of ways.As developers apartment owners who are do- we did it.
Much of the affordable hous- fered by state government also build apartment complexes, ing their first extensive renova- The keys are in hand to
ing discussion focuses on the can go a long way to ensure their construction plans are tions in more than a decade open the door to more afford-
So how do we increase the need for new construction. that rents on existing rental sometimes subject to one in- because of the tax cuts. Mu- able housing.Let's use them.