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Home My WebLink About9A - Habitat for Humanity Proposal 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT AUGUST 3, 2009 9A DANETTE M. PARR, COMMUNTIY DEVELOPMENT AND NATURAL RESOURCES DIRECTOR CONSIDER APPROVAL OF A RECOMMENDATION BY THE PLANNING COMMISSION RELATED TO A HABITAT FOR HUMANITY PROPOSAL Introduction The purpose of this agenda item is to follow-up with the City Council regarding a possible opportunity for the City to partner with Habitat for Humanity to provide a future residential home on City owned property located at 3631 17011i Street (location exhibit attached) and to share Planning Commission recommendations related to the proposal. Current Circumstances At the April 20, 2009 and June 15, 2009 City Council meetings, the Council was presented with a proposal to partner with Habitat for Humanity to allow for a future residential home on City owned land. At those meetings, Habitat for Humanity and City Staff provided information related to the following: . The appraised value of the City lot ($58,000). . The need to integrate the design of the proposed house into the existing neighborhood. . The possibility of relocating an existing home from 16046 Tahinka Place to the subject site. . The proposed site layout. . Legal avenues for transferring City land to Habitat for Humanity. At the June 15, 2009 City Council Meeting, all Councilmember's expressed support of the project, however, not all agreed as to if the City should require compensation for the subject lot. Section 110.300 of the City Code states "No publically owned interest in real property within the City shall be acquired or disposed of until after the Planning Commission has reviewed the proposed disposal and reported in writing to the City Council findings as to compliance of the proposed disposal with the Comprehensive Plan." For that reason, the City Council directed Staff to take the proposal to the Planning Commission for their consideration. On July 13, 2009 the Planning Commission considered the proposal and gave the following feedback (draft minutes attached): . Supported the proposal. . Stated that the City should receive some compensation for the subject parcel. . Felt the proposal was in consistent with the 2030 Comprehensive Plan in respect to the following goals and objectives: www.cityofpriorlake.com I Ph~n~<952.447.9800'! F~x952.447.42145 ISSUES: FINANCIAL IMPACT: ALTERNATIVES: RECOMMENDED MOTION: ReVi~~ ~r~n:::::~!U Encourage the development of suitable housing in a desirable environment. Provide opportunities for a variety of affordable high quality housing. Maintain choice of and encourage development of quality residential environments. Work with the County Housing and Redevelopment Authority, other agencies, foundations and non-profit agencies to assist in meeting housing needs. Identify and implement innovative strategies for meeting the needs of entry-level and median-income house buyers. Achieve diverse housing. Since the June 15, 2009 City Council meeting, Habitat for Humanity has made additional design modifications to the structure proposed to be relocated to the City parcel. The modified renderings show front entry pillars that are more in proportion to the house, as well as showing an additional window on the left side of the home, and the addition of decorative rock along the lower fa9ade of the house (rendering attached). Habitat for Humanity representatives have also confirmed that they would provide the City with partial compensation of the value of the parcel in the amount of $ 14,500 If the Council believes the City should proceed with the proposal either in its current form, without requiring compensation for the City land, or including the compensation offered by Habitat for Humanity, the Staff should be directed to draw up a Development Contract and bring the item back to the Council once Habitat for Humanity has finalized their plans regarding new construction on the site versus relocating an existing home. As part of the 2010 CR 12 project, the City will be reimbursing the County for the right of way. The 2010 Project has identified full funding for the $100,000 reimbursement. If the property is sold, or the council agrees to accept the amount offered by Habitat for Humanity, the proceeds would be required to go back into the Street Oversize Fund. 1. Direct that a Development Contract be created between the City and Habitat for Humanity and brought back to the City Council at a later date. 2. Direct that the parcel be sold to recoup a portion of the right of way investment cost (any recouped proceeds would be directed to the Street Oversize Fund). 3. Provide direction to the Staff regarding identification of any concerns the Council may have. Alternative 1. PLANNING COMMISSION MINUTES (Exert of New Business) MONDAY, JULY 13,2009 1. Call to Order: Chairman Ringstad called the July 13,2009 Planning Commission meeting to order at 6:00 p.m. Those present were Commissioners Perez, Billington, Howley and Ringstad, Community Development/Natural Resources Director Danette Parr, Planner Jeff Matzke and Community Development Assistant Michelle Czycalla. 5. New Business: A. 09-118 Habitat for Humanity is requesting the transfer of City land for a future Habitat for Humanity site. The site is located at 3631170th Street. Community Development/Natural Resources Director Danette Parr presented the Staff Report dated July 13,2009, on file in the office of the Community Development/Natural Resources Department. Parr explained the possible opportunity the City has to partner with Habitat for Humanity for future construction or relocation of a home on City owned property. Parr highlighted that Scott County acquired this property in 2007 as part of the County Road 12 project. The County conveyed the property to the City and deferred the City's contribution to the right-of-way acquisition until the City sold the property or as part of phase 2 of the County Road 12 project scheduled to begin in 2010. Parr added at which time the City will owe the County $100,000. Questions from the Commissioners: Howley asked staff if this is a legal conforming lot. Parr replied yes. Howley asked if the driveway will come off Stonebriar. Parr replied yes. Perez asked if Habitat for Humanity has encountered a similar situation involving a transfer of money for land. Parr stated Habitat for Humanity has transferred money in exchange for land. Parr could not comment on specific communities or the amount of money involved. Ringstad asked Chad Dipman of Habitat for Humanity if there is a possibility that Habitat for Humanity could provide some level of compensation for the land. Dipman replied that he can't make that decision himself. Dipman added Habitat for Humanity could definitely take it into consideration as there may be some funding available from the State. Commissioner Comments: Howley . The project definitely meets the goals of the Comprehensive Plan. . Thinks this is a fantastic idea. . Thinks the land should be transferred to Habitat for Humanity, but compensation is different question. . Believes there needs to be some negotiations with Habitat for Humanity before a decision to transfer the land takes place. . Thinks the City should absolutely get something in return for the land, but doesn't know where to begin on deciding a number. R:\Council\2009 Agenda Reports\08 03 09\Draft PC Minutes for Habitat for Humanity.doc 1 Planning Commission Meeting July 13,2009 Perez · Agrees with Commissioner Howley. · The City does have a need for entry level/median income homes. · Staff has been looking for opportunities where the City can meet the strategic plan and this seems to be the answer. · This is the direction the City wants to go. · Tough to put a number on the compensation. · With funding from the State there is some opportunity to make this work. Billington · Likes this proposal and thinks Habitat for Humanity has done great work around the country. · Thinks it would be a good step for Prior Lake and sees no problems with the proposal. · The City's fiscal situation and budget pressure is a real challenge. The City would be hard pressed if it were to donate the property at the present time. · Views the appraisal of $58,000 should be a starting point in determining compensation for the land. · The City could be criticized for recommending donation of the land given its current fiscal situation. · The citizens/tax payers of Prior Lake deserve some compensation for this land. The City has a $100,000 bill to pay in 2010. · Likes the project and supports the idea, however the City and Habitat for Humanity need to come to terms with some sort of compensation. Ringstad · Agrees with everything that's been said. · There is no question that this fits with the Comprehensive Plan. · This lot is an asset to the City and tax payers. · Will not support handing this land over with out any sort of compensation. · The City could list this property with a realtor and get some money that is needed. A few years back when building permits were high these types of donations probably wouldn't stand out as much. · Encourages City Council to consider something that would come back to the taxpayers. · Hopes that something can be worked out through some of the money that is available through the State. This item will go back to the City Council on August 3rd or August 17th, 2009. 6. Announcements and Correspondence: Parr clarified that the next Planning Commission meeting will be held on July 27,2009 and will include the Conditional Use Permit and Combined PreliminarylFinal Plat applications received from EFH Realty Advisors, Inc. 7. Adjournment: The meeting adjourned at 7:15 p.m. Michelle Czycalla, Community Development Assistant R:\Council\2009 Agenda Reports\08 03 09\Draft PC Minutes for Habitat for Humanity.doc 2