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Home My WebLink About8C - Livable Communities Prgm. AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: STAFF AGENDA REPORT 8C DONALD RYE, PLANNING DIRECTOR CONSIDER APPROVAL OF RESOLUTION 95-108 AUTHORIZING CITY PARTICIPATION IN LIVABLE COMMUNITIES PROGRAM OCTOBER 16,1995 The Council has received summaries of information regarding the Metropolitan Livable Communities Act and,at a joint meeting with the Planning Commission on October2,1995,had an opportunity to discuss the prograrn with Metropolitan Council staff. During that meeting, a number of questions arose concerning the City's participation in the program. Metro Council staff were to refer these questions to the appropriate person and get answers back for the Council's consideration.Staff has received responses to several of the questions which were asked and the questions and responses are as follows: . Are the benchmarks reviewed annually and is there any consequences if satisfactory progress is not made each ~?No, they are not reviewed annually. If the City spends at least 850/0 of it' ALHOA amount each year, this will constitute satisfactory progress. . Does the money spent by the Scott County HRA count toward the City's ALHOA amount? Yes. Monies spent by the HRA within Prior Lake will count.The HRA is gathering this information at this writing and it should be available by the Council meeting. . Is there a limit on the amount the ALHOA can increase each year? At this time, there is no limit on the annual increase in the ALHOA amount but the increase must be based on the formula in the Act. Presently, the maximum ALHOA for Prior Lake is $79,000 based on the total homestead tax capacity. . Would another Wilds-type development be permitted if the City was not reaching its' benchmarks? If the City has_been spending the ALHOA each year, yes. . Can the Tax Base Revitalization money be used to replace failing septic tanks? In all likelihood,no. If it were tied to a 16200 ~~~~R9(Ve. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER job creation project, it might be eligible. · Would neighborhood improvements such as streets and sidewalks be eligible for funding? No. DISCUSSION: While municipalities are not required to participate in this program, it seems that the program is structured in such a way that non-participation is a singularly unattractive option. If the City fails to participate, the following would or could occur; · The City would not be eligible to receive any of the money available through the program. . The Metropolitan Council will report to the Legislature on the status of the program and will likely highlight those communities that elect not to participate. . The City could be viewed unfavorably by the public if it does not participate. . The lack of participation will be considered in any decision in the City which involves a regional investment, an impact on a Metropolitan system or a MUSA expansion. If the City does participate, it will be obligated to spend a designated amount of money ( the so-called ALHOA) toward the achievement of the negotiated housing goals. If the ALHOA is not spent, that amount must be given to the County or Metropolitan HRAs. Staff understood at the joint meeting with the Planning Commission that Council members have reservations about City participation in this program and that, for all practical purposes, the City really has little choice about participating.To that end, the attached resolution has been drafted which indicates the City will participate in the program while also expressing the City's discomfort with the manner in which this participation has been achieved , and the fact that no other choice is realistically available. ALTERNATIVES: The Council has two alternatives: 1. Elect to participate in the program. 2. Elect not to participate in the program. RECOMMENDATION: Alternative 1 ACTION REQUIRED: LIVCOMOK.OOC RESOLUTION NO. 95-108 RESOLUTION AFFIRMING CITY POSITION REGARDING THE LOCAL HOUSING INCENTIVES ACCOUNT PROGRAM UNDER THE METROPOLITAN LIVABLE ~OMMUNITIES ACT WHEREAS, WHEREAS, WHEREAS, WHEREAS, WHEREAS. WHEREAS, CALENDAR YEAR 1996 the Metropolitan Livable Communities Act (1995 Minnesota Laws Chapter 215) establishes a Metropolitan Livable Communities Fund which is intended to address housing and other development issues facing the metropolitan area defined by Minnesota Statutes section 473.121; and the Metropolitan Livable Communities Fund, comprising the Tax Base Revitalization Account, the Livable Communities Demonstration Account and the Local Housing Incentives Account, is intended to provide certain funding and other assistance to metropolitan area municipalities; and a metropolitan area municipality is not eligible to receive grants or loans under the Metropolitan Livable Communities Fund or eligible to receive certain polluted sites cleanup funding from the Minnesota Department of Trade and Economic Development unless the municipality is participating in the Local Housing Incentives Account Program under Minnesota Statutes section 473.254; and the Metropolitan Livable Communities Act requires the Metropolitan Council to negotiate with each municipality to establish affordable and life-cycle housing goals for that municipality that are consistent with and promote the policies of the Metropolitan Council as provided in the adopted Metropolitan Development Guide; and by June 30, 1996, each municipality must identify to the Metropolitan Council the actions the municipality plans to take to meet the established housing goals; and the Metropolitan Council must adopt, by resolution after a public hearing, the negotiated affordable and life-cycle housing goals for each municipality by January 15, 1996; and 16200 IMgteo~k Ave. S.E.. Prior Lake. Minnesota'3S3l72-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER WHEREAS, a metropolitan area municipality which elects to participate in the Local Housing Incentives Account Program must do so by November 15 of each year; and WHEREAS, for calendar year 1996, a metropolitan area municipality can participate under Minnesota Statutes section 473.254 only if: (a) the municipality elects to participate in the Local Housing Incentives Account Program by November 15, 1995 ; (b) the Metropolitan Council and the municipality successfully negotiate affordable and life-cycle housing goals for the municipality; and (c) by January 15, 1996 the Metropolitan Council adopts by resolution the negotiated affordable and life-cycle housing goals for each municipality; NOW, THEREFORE BE IT RESOLVED THAT the City Council of the City of Prior Lake has no other choice than to participate in the Housing Incentives Program because: 1. Failure to participate disqualifies the City from any funding which might be available for program assistance. 2. An election not to participate initially would require that the City repay each years "A.L.H.O.A." contribution which would otherwise be due. 3. Failure to participate results in a negative report card to the legislatlWand increases the likelihood of future legislative action further undermining municipal zoning authority. ~ 4. Failure to participate will result in unfavorable Metropolitan Council consideration of Major or Minor Comprehensive Plan amendments submitted by the City not on merit but based upon failure to participate in this program or its equivalent. FURTHER, that based upon the foregoing, the City Council has no effective option but to participate in the Local Housing Incentives Program under the Metropolitan Livable Communities Act during calendar year 1996. RES9S108.DOC PAGE 2 Passed and adopted this 16th day of October, 1995. YES ANDREN GREENFIELD KEDROWSKI SCHENCK SCOTT ANDREN GREENFIELD KEDROWSKI SCHENCK SCOTT Frank Boyles, City Manager City of Prior Lake { Seal} RES9SI08.DOC PAGE 3 NO