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HomeMy WebLinkAbout8A - Northview Development - 4520 Tower Ave Property MEETING DATE: AGENDA #: PREPARED BY: REVIEWED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT dl~ ~:m: KANSIER, PLANNING COORDINATOR <"hfrl, ~ rV' DON RYE, PLANNING DIRECTOR ') ~ rY;(Jr I' CONSIDER APPROVAL OF RESOLUTION 99- ~ENYI~ F..Jtj AN AMENDMENT TO THE COMPREHENSIVE PLAN REQUEST BY NORTHVIEW DEVELOPMENT FOR THE PROPERTY LOCATED AT 4520 TOWER AVENUE NOVEMBER 15, 1999 History: Northview Development has submitted an application to amend the 2010 Comprehensive Plan Land Use Map from the C-CC (Community Retail Shopping) designation to the R-HD (High Density Residential) designation for 2.92 acres of vacant land located on the south side of Tower Street between Toronto Avenue and Duluth Avenue, south of the Priordale Mall and west of Pond's Edge Early Learning Center. In 1997, this applicant, under the name Stonewood Development, submitted an application to amend the Comprehensive Plan designation of this property from the C-CC designation to the R-HD designation, and to rezone the property from the then B-3 district to the R-3 district. The City Council considered the request on May 4, 1998, and ultimately denied the request due to the concern about the reduction of available commercial land in the City. This proposal has not changed from the original application. The narrative submitted with the application notes that the developer has not been able to find a commercial use for the site in the past 18 months. A concept plan for the development of this site, identifying a 54-unit apartment building, has been submitted by the applicant. The applicant has also filed an application for a rezoning of this property, which will not be considered until the Council makes a decision on the proposed amendment to the Comprehensive Plan. If the amendment is approved, and the property is rezoned, development of the site with a multifamily dwelling will require a conditional use permit. The Planning Commission considered this proposal at a public hearing on August 9, 1999. After considerable testimony and discussion, the 162b'89fiJg~~t:?:d1fIJ\'3tqg~~~W6~'r~ke. Minnesota 55372-1714 / Ph. (612) 447-4230 / Falf6H~) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER Planning Commission voted to recommend denial of the proposed Land Use Plan Amendment. The Planning Commission felt the circumstances had not changed appreciably since the earlier request. The development of the new hardware store on Duluth Street north of Tower Street is even a stronger case against the proposed R-HD designation. A copy of the minutes of the August 9, 1999 meeting are attached to this report. This item was originally scheduled for City Council consideration in September. However, at the request of the applicant, the item was deferred until this date. Current Circumstances: The total site area involved in this request is 2.92 acres. The site has an elevation change of about 10' from the east to the west boundary. There are also several existing trees on the site, although no tree inventory has been completed. Any development on the site is subject to the Tree Preservation requirements of the Zoning Ordinance. Access to this site is from Tower Street, which is identified as a minor collector street in the Transportation element of the Comprehensive Plan. Sewer and water service can be extended from the existing services located in Tower Street. Adjacent to this property on the north and on the west are vacant land and the Priordale Mall, zoned C-4 (General Business). To the south are single family dwellings zoned R-1. To the east is Pond's Edge Early Learning Center, zoned R-4. The Issues: The R-HD designation is consistent with the stated goals and objectives ofthe Comprehensive Plan in that it offers a variety of housing and it provides for open space and the preservation of the natural elements of the site, and with the City's Livable Community Goal to provide affordable and life-cycle housing. The Scott County Housing and Redevelopment Authority recently completed a study on the rental housing in Scott County. This study (attached) identified both existing housing and the future need for rental units. At the time of the study (1998), only 4 of the 368 rental units in Prior Lake were vacant, creating a vacancy rate of 1.4 percent. According to this study, as the growth in Scott County continues to accelerate, the demand for market rate rental units will also increase. The study estimates an additional demand of approximately 190 general occupancy units and 70 senior apartments in the City of Prior Lake between 1998 and 2003. The Prior Lake Economic Development Authority also completed an inventory of the properties within Prior Lake designated for High Density Residential uses (attached). This inventory identified a total of 391.7 acres ofland available for High Density Residential development. Of this total, 26.7 acres are presently zoned R-4 and I :\99files\9geompam\99-050\9905 Oee.doe Page 2 FISCAL IMPACT: ALTERNATIVES: have municipal services available. Another 30 acres is designated for High Density Residential uses, but is presently zoned C-5 (Business Office Park). The remaining 335 acres is located north ofCSAH 42 and is presently outside of the City's MUSA boundary. The 2020 Comprehensive Plan, which has not been approved by the Metropolitan Council at this time, proposes a floating MUSA concept, which may make some of this land available for development. Approval of this request will reduce the amount of commercial land available for development by approximately 3 acres. This site is not conducive to large scale commercial development; however, there may be smaller commercial uses that can be accommodated on the site. On the other hand, the proposed amendment to the Comprehensive Plan Land Use Map will provide additional land for the development of High Density Residential uses, which will in turn help to satisfy a need for rental housing in the City of Prior Lake. Conclusion: The Comprehensive Plan amendment to the R-HD designation is consistent with the stated goals and objectives of the Comprehensive Plan in that it offers a variety of housing types and provides for open space and the preservation of the natural elements of the site. The R-HD designation is also consistent with the City's Livable Community goal to provide affordable and life-cycle housing. Furthermore, the studies completed by the Scott County Housing and Redevelopment Authority and the Prior Lake Economic Development Authority have indicated a real need for additional higher density rental housing. For this reason, the staff recommends approval of this request. The Planning Commission felt the need for commercial land outweighed the need for additional high density residential land, and that it is in the best interest of the City to maintain the existing supply of commercial land for future development. Attached is a letter from the petitioner's attorney, Bryce Huemoeller, reiterating the rationale for the Comprehensive Plan Amendment. Despite the petitioner's rationale, the Planning Commission also found that the applicant had not provided any additional information to indicate the existing Comprehensive Plan designation of the property is incorrect. The Planning Commission therefore recommended denial of this request. Budget ImDact: There is no direct budget impact involved in this request. Approval of this request may facilitate the development of this property, and increase the City tax base. The City Council has three alternatives: 1: \99files\9geompam\99-05 0\9905 Oce.doc Page 3 RECOMMENDED MOTION: REVIEWED BY: 1. Adopt Resolution 99-XX denying the proposed Comprehensive Plan Amendment to the R-HD designation as recommended by the Planning Commission. 2. Direct the staff to prepare a resolution with findings of fact approving the proposed Comprehensive Plan Amendment to the R- HD designation as recommended by staff. 3. Continue the review for specific information or reasons per City Council discussion. The Planning Commission recommends Alternative #1. If the Council agrees with this recommendation, a motion and second to adopt Resolution 99-XX denying the Comprehensive Plan Amendment to designate this property as R - HD is required. The staff recommends Alternative #2. If the Council agrees with this recommendation, a motion and second directing staff to prepare a resolution with findings of fact approving the proposed Comprehensive Plan Amendment to designate this property as R-HD is required. I: \99files\9geompam\99-050\9905 Oee.doe Page 4 RESOLUTION 99-XX RESOLUTION DENYING A PROPOSED AMENDMENT TO THE 2010 COMPREHENSIVE PLAN LAND USE MAP FOR THE PROPERTY LOCATED AT 4520 TOWER STREET MOTION BY: SECOND BY: WHEREAS, Northview Development submitted an application to amend the City of Prior Lake 2010 Comprehensive Plan Land Use Map from the C-CC (Community Retail Shopping) to the R-HD (High Density Residential) designation for the property legally described as follows: Lot 1, Block 2, Enevid First Addition; and That part of Outlot A, Enevid First Addition, contained within the following described tracts: That part of Lot 1, Block 3, Brooksville Center 1st Addition, according to the plat on file in the office of the County Recorder, Scott County, Minnesota, described as beginning at the southwest corner of said Lot 1; thence North 00 degrees 04 minutes 17 seconds West record bearing, along the west line of said Lot 1, 300.00 feet to the south line of a roadway and utility easement; thence North 89 degrees 55 minutes 43 seconds East along said south line 51.99 feet; thence North 28 degrees 34 minutes 57 seconds East along the southeasterly line of said easement 247.34 feet to the south line of South Anna Lane, now known as Tower Street; thence southeasterly along said south line 105.18 feet, along a nontangential curve, concave to the southwest, having a central angle of 2 degrees 21 minutes 55 seconds, a radius of 2,547.98 feet and the chord of said curve bears South 75 degrees 28 minutes 12 seconds East; thence South 74 degrees 17 minutes 15 seconds East, tangent to said curve 39.82 feet; thence South 1 degree 30 minutes 45 seconds West a distance of 379.84 feet; thence South 71 degrees 30 minutes 13 seconds West 316.39 feet to the point of beginning. Together with that part of the south half of vacated South Anna Lane, known as Tower Street, which lies between the northerly extension of the easterly line of said property and the southwesterly extension of the westerly line of Lot 2, Block 1, Brooksville Center 2nd Addition, according to the recorded plat thereof. and WHEREAS, legal notice of the public hearing was duly published and mailed m accordance with Minnesota Statutes and Prior Lake City Code; and WHEREAS, the Planning Commission conducted a public hearing on August 9, 1999, for 16200 E~~rJil:i-~~~o.B;8~~E~5e~~it~~e~~innesota 55372-1714 / Ph. (612) 447-4230 / Fax (61~g447-4245 AN EQUAL OPPORTUNITY EMPLOYER those interested in this request to present their views; and WHEREAS, on August 9, 1999, the Planning Commission recommended denial of the proposed amendment to the Comprehensive Plan; and WHEREAS, on November 15, 1999, the Prior Lake City Council considered the application to amend the 2010 Comprehensive Plan Land Use Map to designate the above described property to the R-HD designation; and WHEREAS, the City Council received the recommendation of the Planning Commission to deny the proposed Comprehensive Plan amendment along with the staff reports and the minutes of the Planning Commission meetings; and WHEREAS, the City Council has carefully considered the testimony, staff reports and other pertinent information contained in the record of decision of this case. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA, that the proposed amendment to the 2010 Comprehensive Plan Land Use Map to designate the above described property as R-HD (High Density Residential) is hereby denied based upon the following findings of fact. FINDINGS OF FACT 1. The supply of available commercial land in the City of Prior Lake is minimal. Approval of this proposal will reduce the available supply of land by three acres. 2. It is in the best interest of the City to maintain the existing supply of commercial land for future development. 3. The applicant has not provided any information to indicate the existing Comprehensive Plan designation and zoning of the property is incorrect. Passed and adopted this 15th day of November 1999. 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",L'~' -:t:.:-- i;" -..... c..._...uc -~ - .~ ..i.O~NG MAP , , A R-S R.1 R-2 R-3 R~ C-1 C~2 C-3 .AqiclJitcral 'Rural Subdivision Residential low OensityResidential Low to.Medium Density Residential Medium Density Residential High Q€rnsity Rf::5idential Neigt1l:Xlf1'lOOd Commerc:al CommunIty' BusineSS soeealty BusineSS Gd.efal BuSIO~ BUSlness Park. Generallndustnal Planned Unit Qevelopmef'lt sooreland Oistnct C-4 :-5 1-1 PUO SO PLA"-l~JNb Lor-i MI5~IO"J M'N"1"E~ Staff felt the variance hardship criteria had been met and recommended approval of the driveway width. Bryce Huemoeller, ttorney for the applicant, 16670 Franklin Trail, said the staff report states the facts and as ed the Commissioners to approve the varians.; . Comments from the Com V onhof: . Supported the variance at th frevious me mg. The hardship criteria has been met. . The DNR letter indicated they\vere no opposed to the driveway width. Stamson: . Concurred with V onhof. lie's interest as w I as the individual property owner to grant Kuykendall: . Added it was in the the variance. MOTION BY V OF, SECOND BY KUYKE ALL, TO APPROVE RESOLUTIO 99-12PC APPROVING A 15 FOO ARIANCE TO PERMIT A DRIVEW WIDTH OF 39 FEET INSTEAD OF T MAXIMUM WIDTH AS MEAS D AT THE PROPERTY LINE OF 24 FEET. V e taken signified ayes by all. MOTION CARRIED. ~ B. Case File #99-050 Northview Development Corporation is requesting an amendment to the City of Prior Lake Year 2000 Comprehensive Plan for the property located at 4520 Tower Street. Planning Coordinator Jane Kansier presented the Planning Report dated August 9, 1999 on file in the office of the City Planner. Northview Development is requesting an amended to the 2010 Comprehensive Plan Land Use Map from the C-CC (Community Retail Shopping) designation to the R-HD (High Density Residential) designation on the property located at 4520 Tower Street. This site consists of2.92 acres of vacant land and is located on the south side of Tower Street, between Toronto Avenue and Duluth Avenue, south of the Priordale Mall and west of Pond's Edge Early Learning School. I :\99files\99plcomm\pcmin\mn080999 .doc 2 The Planning staff finds the proposed R-HD designation consistent with the goals of the Comprehensive Plan. While there is a definite lack of commercial land available, there is also a very real need for rental housing in the City of Prior Lake. The staff therefore recommends approval of this request. Comments from the public: Jeffrey Gustafson, Northview Development, explained his company has tried to come up with the best use for this property but still felt high density apartments was the best fit. They feel apartments meet the needs of the community blending in very well with the single family homes. They would also put in a park and be part of the neighborhood. Gustafson also explained their management company's goals and procedures. There will also be some underground parking. The developer said they would be willing to meet with the neighborhood and present their proposal. Tom Batchmen, Pinnacle Realty Management Company, stated they are a nation-wide company and he personally has been in the Twin City area for 30 years. Batchmen said he would answer any questions from the Commissioners or neighbors. James Gustin, 4543 Pondview Trail, said he was opposed to the rezoning request. Gustin pointed out two newspaper articles; 1) The property owner claiming the land is top commercial property. And, 2) According to the recent city survey citizens of Prior Lake indicated they want commercial property and slower growing developments. Gustin also read comments from the Commissioners from previous meetings supporting commercial development. All comments were against rezoning. Jim Ericson, 4544 Pondview Trail, reviewed previous meeting comments. Ericson said he called the Federal Post Office and indicated the availability of property for their development. The Post Office seemed interested. His feeling was for commercial development rather than high density housing and did not want to see it rezoned. Clayton Harder, 4510 Pondview Trail, agreed with his neighbors. He mentioned the traffic situations and felt there would be a short-cut from the new ball fields through Toronto Avenue creating more congestion. Harder felt the property should stay commercial. Neil Boderman, general partner of the Priordale Mall, responded to the neighbors comments. He did talk to the Post Office who felt the property was too small, but they are looking at a larger site behind the Priordale Mall. Boderman explained the visibility is not good for commercial businesses. He has owned the property for 7 years and has not been able to attract a business and feels the best use for the property would be apartments as a buffer zone between the single family homes and businesses. James Kennedy, 4486 Pondview Trail, is a new resident to Prior Lake and agreed with his neighbors opposing the development. He felt the traffic would be much higher with the apartment project. 1 :\99files\99plcomm\pcmin\mn080999 .doc 3 The public hearing was closed. Comments from the Commissioners: Stamson: . Against redevelopment at this time. The commercial property is a greater benefit to the City rather than a residential development. . There is sufficient high density in the area. Other areas in Prior Lake could be better served. . Recognizes it is not an attractive commercial property today, but there are many small businesses who will be interested especially when Coast to Coast is building in the area. . No evidence to change his mind. Kuykendall: . The proposal is very attractive. . Believes the area could be better used as a commercial area. . Spoke on visual impact for traffic flow. . Compliment the owner and public addressing the Post Office location. . Encouraged with the development of the Coast to Coast development. Other businesses may start looking at the area. . Kansier read the types of businesses permitted in the area. . Boderman explained there are no uses that will go back in the area. Visibility is a big issue for businesses. . Kansier explained the mini-storage zoning districts. . Not an unreasonable use to allow mini-storage in the area. . Supports the general principal of commercial property. . Kansier pointed out the high density land available in Prior Lake. V onhof: . Gustafson responded to the issue on the mini-storage and the setback problems with the surrounding districts. The project could not work on the property. . Agreed with the Stamson, that things have not changed significantly to justify the rezonmg. . The Commissioners are looking beyond today in terms of development. . Mentioned the Coast to Coast relocation and believes the area will redevelop. . Explained the available land for high density. There is a need for commercial land in the City. . No evidence to rezone. Open Discussion: Stamson: . Commented on the visibility ofthe property. I :\99fi1es\99plcomm\pcmin\mn080999 .doc 4 . The City is currently moving ahead with a ring road to develop in front of this proposed property. . Do not rush into changing the district. Kuykendall: . Explained the City has space for high density rental development. . Kansier responded to Kuykendall's question on the Scott County Housing Redevelopment Authority's report. . Suggested the Commissioners should revisit the mini-storage proposal as a conditional use under the Comprehensive Plan. Felt it would be a good compromise for all. . Rye stated that a mini-storage was not approriate in a commerical district. MOTION BY VONHOF, SECOND BY KUYKENDALL, TO RECOMMEND DENIAL OF THE REQUEST BASED ON THE FINDINGS STATED BY THE COMMISSIONERS INTO THE RECORD. Vote taken signified ayes by all. MOTION CARRIED. This item will go to the City Council on Tuesday, September 7, 1999. This issue will not be a public hearing. C. Case ~ #99-026 Consider an amendment to the Zoning,brdinance regulating,~he use of off-road motorcycles. ./ Planning Director Don Rye presented the Planning Report dated August 9, 1999, on file in the office of City Planner, . , . In April, May and June of 1998,"t4e Planning COmlIlission and City Council considered the issue of regulating recreational,\rehicles in the' City. A proposed ordinance was rej ected and staff directed to develop ~'n,ew ordinance. During consideration of the last ordinance, one of the primary difficulties was defining and measuring noise levels from the vehicles b~iI!g considered. Noise monitoring is technically difficult to do properly and the necessary equipment is expensive. There is also the practical difficulty of having the equipment oh)1and when a violation is observed. ' " ", " "- The proposed ordinance adopts the definition of a competition-~otorcycle from the Federal Rules and restricts their operation in the City to property'which is more than 1,000 feet from a residential structure or property which is zoned f&'r:esidential purposes. ~ ,/ Questions f{"om Commissioners: / ;: / StamJPn questioned removing or altering the labels from the cycles. would be illegal with modifications and alterations. Rye responded it I :\99files\99plcomm\pcmin\mn080999 .doc 5 NOV 08 '99 04:16PM HUEMOELLER & BATES P.2/6 HUEMOELLER & BATES ATTORNEYS AT LAW 1 h670 FRANKLIN TRAIl,. pOST OFFIC~ !lOX 67 PRIOR, I,.AI<€, MINN~SOT^ 55372 J^M~S D. BATES BR,YCE D. I'IU~MOELLER Telephone- (h121447-Z131 T('lecopier (61 21447-5628 November 8, 1999 Prior Lake City Council 16200 Eagle Creek Avenue Prior Lake, MN 55372 RE: Application for Comprehensive Plan Amendment to Designate Property at 4520 Tower Street as High Density Residential Dear Council Members: This letter is written on behalf of Northview DevelopmenT. Corporation, the prospective purchaser of 2.92 acres of vacant land located at 4520 Tower Street. in support of its application to amend the 2010 Comprehensive Plan to change the designation of the property from Community Retail Shopping to High Density Residential. PROPOSED USE Northview proposes to construct a 64 unit market rate apanment complex. on the property. The project will have underground parking, limited amenities, on-site full- time caretakers. and professional management. mSTORY OF REQUEST A similar application had previously been considered and denied by the City Council in 1998, primarily due to concern about the reduction of available commercial land in Prior Lake. Since that time, Northview has attempted unsuccessfully to find a viable conunercial use for the property, such as professional offices, low density retail, brick and tile distribution and sales, welding or similar fabrication facility, or a mini- storage facility. In general, these efforts were unsuccessful because the property is not visible, has limited access, requires an excessive setback from the adjacent school use, and has been severed by a public sewer line. Based on its 18 month investigation, Northview is convinced that commercial use of the property is not economically viable noW or in the foreseeable future. -~ NOV 08 '99 04:16PM HUEMOELLER & BRTES P.3/6 Prior Lake City Council November 8, 1999 Page 2 The Planning Department evaluated the current request and in its Planning Report of August 9 recommended approval because the proposed R-HD designation is consistent wiTh the goals of the Comprehensive Plan and there is a documented need for quality renW housing in Prior Lake. The Planning Commission reviewed the request on August 9. Numerous neighbors appeared and testified in opposition, the common theme being the desire of the neighbors to have commercial property and business activities next to their homes. The Commission members ultimately recommended denial of the request, saying in essence that circumstances had not changed significantly since 1998 to justify a reduction in available commercial land in Prior Lake. After the Planning Commission hearing, Northview met individually with 4 of the 5 Council members. For the Council members who ex.pressed concern over designating the property as High Density Residenrial, the principal reason was the reduction of available commercial land in Prior Lake. NOT A VIABLE COMlVlERCIAL PROPERTY Northview would ask the City Council to consider the following factors that relate to the viability of preserving the propeny at 4520 Tower Street for future commercial use: . 4520 Tower was originally zoned commercial because it sat on the City's south boundary next to Priordale Mall. At that time, there was no other use for the property, because the adjacent land was either undeveloped township land (south boundary), a bar/bowling alley (east boundary), or the shopping mall. There was no reason to consider transitional or buffer zoning because the adjacent Woodridge Estates single family areas had not yet been annexed into the City or developed. However, the situation today is much different. and the need for transitional zoning between the adjacent single family uses and a future busy commercial area will be important. Good planning requires buffers between low density residential and nearby retail and commercial uses. The City's recent experience and litigation with the residents of Boudin's Manor is an example of the failure to provide an adequate transition between business and low density residential uses. NOV 08 '99 04:17PM HUEMOELLER & BATES P.4/6 Prior Lake City Council November 8, 1999 Page 3 . The rezoning of the adjacent school property from commercial to residential has the affect of increasing the side lot setback from 20 to 60 feet. As a result of that change in zoning, the options for commercial use of 4520 Tower are furmer limited. This issue was not considered in 1998. . Since 1998, it has been discovered that a public sewer line crosses and severs 4520 Tower. Although the existence of the sewer line effectively precludes many commercial uses, a sewer line will not interfere with the apartment complex that is proposed for the property by Northview. This was not considered in 1998. . Since 1998, 4520 Tower has become much less competitive as a commercial site because of oTher development that has occurred in and around Prior Lake: _ Shakopee has opened a major retail center at Marschall Road and STH 169 that draws customers from Prior Lake and its market area; _ Savage has opened a major retail center at CSAH 42 and 8TH 13 which draws customers from Prior Lake and its market area; _ Savage has opened a new light industrial park on STH 13; _ Savage is amending its comprehensive proposals to designate the west McColl Drive area for mix.ed use commercial and business park developments. _ Scan County has rezoned land at STH 13 and 282 for light industrial and commercial development; _ Prior Lake has rezoned 58 acres of land at CSAH 21 and Revere Way for business park development; _ Prior Lake has approved commercial developments on CSAH 42; _ The Mdewakanton Community has expanded its commercial area and has added retail and mini~storage facilities. NOV 08 '99 04:17PM HUEMOELLER & BRTES P.5/6 Prior Lake City Council November 8, 1999 Page 4 . By any reasonable comparison, 4520 Tower is presently not, and in the foreseeable future will not be, ripe for commercial developmem: of any kind. This is verified in part by Northview's actual experience over the past 18 months. However, the same conclusion is reached by applying the economic and financial analysis recommended by me Urban Land Institute in its various handbooks for shopping center, office, business and industrial park developments. The ULI says that market analysis is a crucial component in the development of property. That analysis requires an evaluation of the community's economic base, demographics, transportation system, amenities, development climate and projected demand for the end product. The ULI recommends "an analysis of competitive [commercial] facilities in [the] metropolitan area in...." A critical factor in the analysis is "the local cost of living and housing, and the variety of housing and neighborhood types." Based on the standard set out in the ULI handbooks on commercial development, this property is Dot and will not be ripe for commercial development within any reasonable time period. . While the Planning Commission referred to the new Coast-to-Coast building as evidence of commercial activity in the area, another recent commercial project in the immediate neighborhood gives a much different view of the situation. The Park NicolJer Clinic was recently constructed on a site that was intended to be the start of an aggressive commercial development in Prior Lake, In fact, after the construction of me initial building, no further significant activity has occurred because of both economic and political factors. Mos[ importantly, the construction of the new Park Nicollet Clinic did not become a catalyst for economic development in the Priordale area (as Planning Commission members say the new Coast-to-Coast store will do), even though the clinic has highway visibility and better access. . The Scott County Housing and Redevelopment Authority completed a study on rental housing in Scott County, and found additional demand for approximately 190 general occupancy units and 70 senior apartments in Prior Lake between 1998 and 2003. This study was not available in 1998, . 4520 Tower was not selected by the Postal Service as the site for the next post office. In fact, the parcel selected by the Postal Service lies between 4520 Tower and the Priordale Mall, and will effectively sever the property from The adjacent commercial uses. NOV 08 '99 04:17PM HUEMOELLER & BATES P.6/6 Prior Lake City Counr.il November 8, 1999 Page 5 BENEFIT TO PRIOR LAKE The requested Comprehensive Plan amendment has immediate and tangible benefits for Prior Lake. . As stated in the August 9 Planning Report, the proposed designation is consistent with the objective of the Comprehensive Plan to offer a variety of housing in Prior Lake; and is consistent with the City I S Livable Community Goal of providing affordable and life-cycle housing. . There is a documented and recognized shortage of quality housing for seniors in Prior Lake, and this request will allow the construction of affordable market rate rental housing that will be of benefit to our senior population. . The requested change will allow the immediate development of a quality project in a difficult area of Prior Lake that will otherwise remain undeveloped for the foreseeable future. . The development of 4520 Tower as an aparnnent site will facilitate prompt resolution of the pending sewer line easement dispute. . The request will allow the City Council to consider the rezoning of other areaS within the city that have better visibility and access to commercial use. Based on the foregoing, it is the request of Northview Development Corporation that the City Council approve the request to designate the property at 4520 Tower Street as high density residential in the comprehensive plan. Sincerely yours, ~~~ Bryce D. Huemoel1er BDH;dw cc: Northview Development Corporation -- . SUMMARY OF FfNDINGS Demographic Review · Since households are occupied housing units, household growth is the best indicator of housing demand. According to the Metropolitan Council, Scott County added nearly 6,300 households between 1990 and 1997, surpassing its gains for the entire 1980s (5,866 households). Meanwhile, the County is expected to see increases of roughly another 2,880 households between 1997 and 2000. · Growth in Scott County will continue to accelerate over the next two decades with increases of 12,370 households between 2000 and 2010; and 13,170 households between 2010 and 2020. This rate of growth is three times that of the metro area as a whole, between 1990 and 2020. · The accelerated growth forecast for Scott County over the next two decades is the result of improved access provided by the new Bloomington Ferry BridgelHighway 169 Bypass, coupled with adjacent communities, particularly West Bloomington and Bumsville, becoming fully-developed. · During the 1990s, 75 percent of the household growth in Scott County occurred in its three larger suburban communities - Savage, Shakopee and Prior Lake. Based on Metropolitan Council's projections, the three suburban communities are expected to account for roughly 85 percent of the County's household growth over the next two decades. · New Prague, Belle Plaine, and Jordan also experienced relatively significant gains in house- holds with increases of between roughly 20 and 30 percent projected for the 1990s. Growth in the rural portion of the county has also been strong during the 1990s, resulting from leapfrog development. Overall, the number of households in rural Scott County is expected to increase by about one-third during the 1990s. · The Metropolitan Council's projections shows household growth accelerating in the freestanding communities within Scott County over the next two decades while growth in rural Scott County will taper-off. The deceleration of growth in rural Scott County is based on the belief that managed growth will be enforced in rural Scott County, however, we believe that these figures are likely conservative and that this area will experience greater growth than is projected · Thus far during the 1990's, every age group posted gains. Children (persons 17 and under age group experienced by far the greatest numerical increases, with an increase of just over 5,000 persons or 60.2 percent. The next two largest gains occurred among the 35 to 44 age group, (3,800 persons) and the 45 to 54 age group (2,150 persons), both representing baby boomers. · . Scott County's senior population (persons age 65 and older) also experienced significant growth thus far during the 1990s, with an increase of nearly 1,670 persons (an average of 210 per year). The senior population growth is expected to accelerate over the next five years with the projected addition of 1,475 persons (an average of295 per year). MAXFIELD RESEARCH, INC. SUMMARY OF FINDINGS . As with the age of the population, types of households also affect the types of housing needed. In Scott County, the largest household type categories in 1990 were married couples with children (41 % of all households) and married couples without children (29% of all households). The number of households in every household type category experienced substantial gains in Scott County during the 1980s. Married couples without children, however, experienced by far the largest numerical increase, with a gain of over 2,200 households (66%). . The proportion of all households that rent their housing declined from 19.5 percent in 1980 to 18.1 percent in 1990, due to the substantial increase in owner-occupied housing units. Renter households comprised only 15 percent of the County's household gro\\th during the 1980s. . In 1990, the proportion of renter households in the cities of Scott County ranged from 8.0 percent (Elko) to 29.3 percent (Shakopee). Most of the county's householders age 15 to 24 rented their housing (64.2 percent in 1990), while the vast majority (between 65.8 and 90.9 percent) of households in the remaining age cohorts owned their housing. . Scott County's seniors tend toward renting their housing as they age: 16.5 percent of the householders age 65 to 74 and 34.2 percent of the householders age 75 and over rented their housing in 1990. On the other hand, the 25 to 34 age group comprised by far the largest number of renter households, accounting for 36.2 percent of all renters. . The rnedian household income in Scott County is expected to increase from just under $55,000 in 1998 to just over $64,000 in 2003. The number of households with incomes of $50,000 or more will increase by 25 percent between 1998 and 2003, while the households with incomes below $50,000 will increase by only 16 percent. The substantial increases in income are due to large numbers of baby boomers aging their peak earning years. . According to Metropolitan Council estimates, Scott County will have added about 10,950 jobs during the 1990s. As with employment growth throughout the metro area, employment growth in Scott County is expected to taper-off slightly between 2000and 2010, with a projected increase of9,360 jobs. Job growth is expected to slow considerably in both Scott County and the metro area between 2010 and 2020. Rental Market Review . Limited rental housing construction during the 1990s has driven vacancy rates in the Twin Cities to an all-time low. Rental vacancy rates metro-wide were 1.1 percent as of3rd Quarter 1998. . 380 rental units were built in Scott County between 1990 and December 1998. In addition, we identified 20 rental units that were lost to fire or converted to ownership housing resulting in a net increase of about 360 units. Meanwhile, the County has seen an increase of about 7,200 households. Thus, rental housing has accounted for only about 5 percent of the County's household growth between 1990 and 1998. ") ~lAXFIELD RESEARCH, INC. SUMMARY OF FINDINGS . Of the roughly 380 units built in the County during the 1990s, about 10 percent were subsidized, 40 percent were market rate and one-half were affordable units. . The rental market in Scott County is also very tight. A survey oflarger rental projects throughout the County, revealed a vacancy rate of 1.0, excluding, River City Apartments which was still in its initial lease-up period at the time of the survey. . The following tables summarize vacancy'information for both the general occupancy and senior rental proj ects surveyed. Shakopee Savage Prior Lake Market Rate Total Vacant Rate 668 7 1.0% 268 2 0.7% 280 4 1.4% 31 0 0.0% 55 0 0.0% 52 0 0.0% 1.354 13 1.0% Jordan Belle Plaine New Prague Total RENTAL MARKET SURVEY SUMMARY GENERAL OCCUPAJ.'lCY PROJECTS SCOTT COUNTY November 1998 Tax Credit Subsidized Total Vacant Rate Total Vacant Rate 48 0 0.0% 56 0 0.0% 43 0 0.0% 17 0 0.0% 48 0 0.0% 40 2.5% 0 0 38 2 5.3% . 4 0 0.0% 53 1.9% 48 2 4.2% 57 1.8% - 191 2 1.0% 261 5 1.9% Total Units Vacant Rate - 772 7 0.9% 328 2 0.6% 368 5 1.4% 69 2 2.9% 112 1 0.9% 157 3 1.9% 1,806 20 1.1% · Belle Plaine Apartments is a 25-unit building with a maximum of 21 units receiving HUD Section 8 subsidies; the remaing units fall under MHFA's tax-credit program. Thus. the minimum number of tax credit units is four, but could be more. Source: Maxfield Research Inc. . The general occupancy projects surveyed had 1,806 units and an overall vacancy rate of 1.1 percent. Market rate and tax-credit projects both reported vacancy rates of 1.0 percent while subsidized projects had a vacancy rate of 1.9 percent. . There are currently 10 senior rental projects with 484 units in Scott County. A survey of these projects revealed 11 vacant units, a vacancy rate of 2.3 percent. However, eight of these vacancies occurred at River City Apartments. Excluding River City, the vacancy rate was 0.7 percent. Subsidized senior projects had a vacancy rate of 0.3 percent while the market rate projects had a vacancy rate of2.3 percent, excluding River City. MAXFIELD RESEARCH, INC. 3 SUMMARY OF FINDINGS RENTAL MARKET SURVEY Sffi\iIMARY SENIOR RENTAL PROJECTS SCOTT COUNTY November 1998 Shakopee Market Rate Total Vacant Rate 52 8 15.4% 45 0 0.0% 0 0 -- 0 0 -- 0 0 -- 42 2 4.8% 139 10 7.2% Savage Prior Lake Jordan Belle Plaine New Prague Total Source: Maxfield Research Inc. Conclusions and Recommendations Subsidized Total Vacant Rate 128 0 0.0% 0 0 -- 39 0 0.0% 52 0 0.0% 35 0 0.0% 91 1 1.1% 345 1 0.3% Total Total Vacant Rate 180 8 4.4% 45 0 0.0% 39 0 0.0% 52 0 0.0% 3S 0 0.0% 133 3 2.3% ~ 484 11 2.3% . Demand for rental housing in Scott County was estimated at 1,110 units between 1998 and 2003. General occupancy demand was estimated at 750 units and demand for senior rental housing was estimated at 360 units. . Our dernand methodology accounted for household growth (nearly 900 units), replacement need (100 units), pent-up demand (roughly 60 units) and a vacancy rate of5.0 percent (50 units) to allow for consumer choice and unit turnover. . Based on the projected change in income distribution of Scott County residents in 1998 and 2003; we believe that about 45 percent of the general occupancy demand (340 units) will be for market rate projects, 40 percent of demand (310 units) will be for moderate rent units, and 15 percent (110 units) will be for subsidized units. . There is a need for additional general occupancy housing throughout Scott County. The majority of the demand for market rate general occupancy rental housing is in the suburban portion of the county, however, a small market rate project could also be supported in the Belle Plaine-Jordan area. We feel that some moderate-rent general occupancy housing could MA..XFIELD RESEARCH, INC. -+ SUMMARY OF F~TIINGS be supported in each of the larger cities in Scott County. We also recommend additional subsidized general occupancy housing in Shakopee, Prior Lake, Savage, and New Prague. · There are currently a large number of general occupancy rental projects either under construction and in various planning stages for Scott County, they include: No. of Units 4 32/6 152 24 56 136 56/12 30 26-28 50 Product Type Affordable Afforda b leiS u bsidized Market Rate Affordable Affordable Market Rate Affordable/Subsdized Affordable ~,farket Rate Subsidized Location Belle Plaine Savage Shakopee Belle Plaine Savage Savage Shakopee Shakopee Shakopee Scattered Developer Tom j\feger Evergreen Development Srnart Corporartion Bergstad Properties Mary T. Inc. Hartford Financial Evergreen Development Sand Companies Sand Companies Scott County HRA Starns under const. under const. under const. planned planned planned planned planned planned planned · There are 152 units of market rate general occupancy housing currently under construction and an additional 198 to 200 units of market rate housing planned for development over the next few years. If all of the planned projects are built as planned, the remaining demand for market rate general occupancy housing through 2003 will likely be satisfied. · 32 units of affordable general occupancy housing are currently under construction; an additional 178 units are planned, resulting in excess demand for 86 units through 2003. · Six subsidized (MHOP) units are currently under construction and additional 62 units are planned, resulting in excess demand for 42 units through 2003. · Based on review of incomes of senior households in 1998 and 2003, we believe that there is an unmet need for an additional 55 senior subsidized units through 2003. The remaining demand, roughly 305 units, will be for market rate senior housing. However, some of these households will need affordable market rate housing options such as those offered at River City Apartments. · Based on the age of the senior base and the supply of market rate senior housing already in Scott County, both independent senior housing and housing with services (congregate and/or assisted living) will be needed. About 35 percent of the market rate demand (about 105 units) will be for service-intensive housing and the remaining demand (200 units) will be for independent senior housing. · Currently there are a number of senior projects either under construction or planned for construction over the next few years, they include: :\lAXFIELD RESEARCH, INC. 5 SUMMARY OF ENDINGS No. of Units 24 24 42 24 30 29 Product Type Subsidized Subsidized AffordablelMarket Rate C ongrega tel Optional-Services Assisted Living Assisted Living Location Belle Plaine Belle Plaine Savage Belle Plaine Belle Plaine J ordari Developer Belle Plaine Lutheran Home Belle Plaine Lutheran Home Scott County HRA Belle Plaine Lutheran Home Belle Plaine Lutheran Home Benedictine Health Services Status under const. planned planned planned planned planned . The two subsidized project either under construction or planned by the Belle Plaine Lutheran homes, if built, will likely satisfy the majority of the county's demand for subsidized senior housing over the next five years. . Between the two affordable market rate projects in planned by the Scott County HRA (River City and the planned Savage project) and the planned congregate/optional services project by the Belle Plaine Lutheran Home a large portion of the demand for independent senior housing will be satisfied. However, demand still exists for additional 82 units of independent senior housing in the County through 2003. . The two assisted living projects planned by the Belle Plaine Lutheran Home and Benedictine Health Services will satisfy 59 of the 105 units of demand for service-intensive housing in the County. Yet,excess demand still exists for another 46 units of this type of housing. However, the development of two assisted living facilities in communities as close as Jordan and Belle Plaine could create a saturation of assisted living housing in the Belle Plaine- Jordan market area in the short-term which could lead to extended absorption periods and excess vacanCIes. . A summary of the distribution of rental demand as well as recommendations for rental development in each community is discussed in the Conclusions and Recommendations section of the report. . It is important to note that the recommendations presented are to be used only as a guideline for development and should demand be unmet in anyone community it is possible that neighboring communities may be able to capture a portion of the stated demand. Furthermore, demand for rental housing is allocated only to incorporated municipalities because they have the necessary infrastructure in place for such high-density development. That is not'to say that demand forrental housing does not exist in the rural portions of the county, but that much lower-density would need to be developed because of the lack of infrastructure. 6 MAXFIELD RESEARCH, mc. CONCLUSIONS Ai"ID RECONL\1ENTIA TIONS These projects have been very successful and a concept similar to this would do very well in Scott County. The recommended unit mix, sizes, and the rent structure are presented in Table 35. A ceiling or market rent could also be applied to these projects with rents similar to those suggested for the adulUfew services projects presented earlier in this section. TABLE 35 GENERAL RECOMME:'iDATIONS SUBSIDIZED SENIOR BUILDINGS SCOTT COUNTY November 1998 Unit Mix 60% Unit Tvpe IBRlIBA Size/So.Ft 625-650 40% 2BRll.5BA 825-900 Rent 30% of AGI Basic $275 30% of AGI Basic $375 Source: Maxfield Research Inc. Summary of Recommended Rental Development in Scott County Table 36 summarizes our rental demand calculations for Scott County by type of project and by community. TABLE 36 RENTAL DEMAJ.'ID SL~IMARY SCOTT COUNTY 1998- 2003 Market Rate General Occupancy Moderate Rent Subsidized Senior Market Rate Service-Intensive Independent Subsidized Shakopee 100-110 28-36 G 50-60 Prior Lake 316-324 66-72 24-36 45-50 Savage 36-42 28-36 40-45 Belle Plaine 16-24 30-36 0 50-65 0 Jordan 30-36 0 20-30 0 New Prague 0 18-24 16-24 0 24-30 340 300 110 135 170 Source: Maxfield Research Inc. 25-30 o ~ o 55 I") - -) MAXFIELD RESEARCH, INC. RENT AL HOUSING MARKET REVIEW Valley and Countryview Apartments have outdoor swimming pools. The remaining three projects have limited building amenities. Tax-Credit Proiects ~ Currently, there is only one affordable general occupancy rental project in Savage, the recently completed 48-unit Evergreen Pointe Townhomes. The project received funding through Minnesota Housing Finance Agency's (MHFA) Section 42 Low Income Tax Credit program and the Minneapolis Public Housing Authority's Metropolitan Opportunities Housing Program (MHOP). Five of the units have been designated as MHOP units and are owned by the Scott County Housing and Redevelopment Authority (HRA). Four of the five MHOP units are reserved for families displaced by the demolition of Minneapolis Public Housing units and the other unit is reserved for the Scott County Public Housing program. The tax credit portion of the building includes 16 two-bedroom units and 32 three-bedroom units. The two-bedroom units have monthly rents of $590, while the three-bedroom units rent for $679 per month. The units feature private entrances, one and one-half bathrooms, dishwashers, disposals, central air conditioning, and washer and dryer hook-ups. In addition, a detached garage is included in the rent. Subsidized ~ The five MHOP units of Evergreen Pointe consist of three, three-bedroom units and a (hearing-impaired compliant) four-bedroom unit. All MHOP units have rents based on 30 percent of the household's adjusted gross income. ~ The only other rental housing project in Savage with a deep subsidy is a 12-unit public housing project owned by the Scott County HRA. The project, which was built in 1980, consists of two-story, three-bedroom townhome-style units with private entrances and detached garages. Rents are based on 30.0 percent of the household's adjusted gross income (AGI). All of the units were occupied and the vast majority of the residents are families. Prior Lake Twelve general occupancy projects were surveyed in Prior Lake. These projects are summarized on Table 16. The 12 projects have 368 units and an overall vacancy rate of 1.4 percent. Market Rate ~ Nine of the 12 general occupancy projects surveyed in Prior Lake were market rate projects. Combined, they have a total of 280 units. ~ There were four units vacant among these projects at the time of the survey, a vacancy rate of 1.4 percent; this compares with a vacancy rate of 2.4 percent in the 1995 study. One project surveyed in the 1995 study was lost to fire and not included in this survey. 71 :\'lAXFIELD RESEARCH, INC. -----.or...--- f, r TABLE 16 Gl<;NERAL OCCUPANCY RENTAL PRO.met's CITY OF PRIOR LAKE Novcmbcr 1998 Year No. of Projcct Namc/Location Uuilt Units Unit Mix/ Rents Vacancies Tcnant Prolilc Commcnts/ Amenities/Features Market Rate: Tower Ilill Easl 1987 68 18-1 flR - $555 0 30% couplcs w/o childrcn, 3-slory elv. bldg. WaIl-unit Ale, DW, disposals, 4680 Tower SI. S.E. 8-11 DEN - $560-655 0 30% singles, 20'% in-unit WID, balcony/ patio, ceiling fans, blinds. 30-2BR - $700 0 families, Some units have gas fireplaces. Security entry, 12-2+DEN - $740-920 I 20% seniors. party I'm., outdoor pool, whirlpool, sauna, tanning beds, alrium, storage lockers, 13llQ/picnic area, lot lot, underground heated pkg. w/car wash (inc!. in rent). Priorwood 1984/87 48 8-IUR - $525 0 35% couples w/o chil- Four 12-unit, 2-story bldgs. WaIl-unil A/C, DW, 16635 Five llawks A v. 16-2UR - $615-650 0 dren, 35% singles, disposals, oak cabinets & trim, vaulted ceilings, 24-2UR/Loft - $725-775 0 30% families. utility rooms. 2 bldgs. have in-unit WID - olher 2 bJdgs. have com. coin-op. laundry. Some unils also have ceiling fans and some have skylights. Party 1'111., gamc I'm., tot 101. 48 detached garagcs (incl. in rent). Brandel Apts. In7 8 8-21JR $600* 0 Mostly couples w/o Two 1.5-story 4-plexes. WaIl-unit A/C, common 1 (1554-56 Franklin Trail children coin-op. laundry, detached garages included in renl. Ilcarthwood Apts. 1986 24 16-llJR - $600 0 Mix of tenants 2-story bldg. Wall-unit A/C, OW, disp., 16516 Franklin Trail 8-213R - $725 I balcony/patio, stortlge room, blinds, wood-burning fireplaces. Security entry, com. coin-op laundry, tot lot, 24 detached garages incl. in rent. Towering Woods early-1980's 7 1-Il3R - $575 0 2 couples w/ children, I & 2-story condominium projcct, 7 units rentcd. 4664 Tower St. 3-211R - $650 0 2 singles the rest are WaIl-unit AlC, OW, in-unit WID, disposals, 3-313R -$750 0 couples. balcony/patio, walk-in closets in 3BRs. Private entrances, attached garagcs. A Ilen 4-plexes 1979 8 2-2lJR - $525 0 Families 16558/16578 6-313R - $555 0 Two 1.5-story 4-plexes. Central AlC, OW, blinds, Franklin Trail balconies. Com. coin-op laundry, dctachcd garages (incl. in rcnt). TA'~I.E 1 (, GENERAL OCClWANCY RENTAL PROJI~CTS CITY OF PRIOR LAKE Novemher 1998 (Continued) Year No. of Project Name/Location I3uilt Units Unit Mix/ Rents Vacancies Tenant Profile Market Rate (continued): Tower Ilill West 1970 51 6-0I3R - $410 0 60% singles, 4671 Tower St. ,,' 21-\I3R - $510 0 20% seniors, 24-2BR - $610-650 0 20% couples w/o child. Ilrooksville Apts. late-60's 36 24-\I3R - $475 0 Mix of tenants. 16829 Toronto Avo S.E. 12-2I3R-$615 0 I'arkwood Apts. 1960 30 10- \I3R - $500 50% families, 5160 -5200 160th SI. S.E. 20-2I3R - $550 40% singles, 10% seniors. Markl:l RaIl' Suhlolal 2XO 4 (1.4'% vacancy rate) Tax-( 'rcdil: Kl'Sleral Village Apls. 121<J5 48 32-213R - $680 0 Mix of residents 16714-16720 Bnlllswick . 3/96 12-313R - $720 0 Suhsidized: lIighwood Townhomes 4716 Tower St. 1980 36 o Families w/ children. 24-2I3R - 30% of AGI Market - $619 1O-3I3R - 30% of AGI Market - $663 2-413R - 30% of AGl Market - $ 707 o o Comments/Amenities/Features 3-story clv. bldg. Wall-unit A/C, DW, disposals, balcony/patio, blinds, walk-in closets. Security entry, tennis courts, coin-op laundry (ea. flr.), trash chutes. Undergmd healed pkg. incl. in rent. 3-slory bldg. Wall-unit A/C, OW, com. coin-op laundry, balconies, 2I3R units have 2I3A's, 20 detached garages $30/mo. Two 2.S-story bldgs. Wall-unit A/C, DW, disposals, balconies, storage nns., I313Q/picnic area. Off-st. pkg. MIIFA tax-credit financed. Four 2-story 12-unit bldgs. Wall-unit AlC, DW, blinds, balcony/patio, com. coin-op. laundry (ea. bldg.), security entry, tot lot, 30 detached garages ($40 mo.). Significant no. of Section 8 residents. MIIFA financed, HUO subsidized. Two-story townhome units w/ private entrances and basements. A/C sleeves, laundry hook-ups, COlli. coin-op laundry, off-st. pkg w/ plug-ins. One tenant pays market rent, 35 receive rental assistance. Average rent paid is $250/mo. Projecl Name/Localion Subsidized (continued): Franklin Trail4-plex Subsidized Sublotal Grand TOlul AGI = Adjusted Gross Income Year Built 1979 TABLE 16 GENERAL OCCUPANCY RENTAL PROJECTS CITY OF PRIOR LAKE November 1998 (Conlinued) No. of Units Unil Mix/ Renls 4 40 368 Vacnncies Tenanl Prolile 4-3BR - 30% of AGI Single-parcnls 25 - 35. (2.5% vacancy rate) 5 (1.4% vacancy rate) * ESlimaled by Maxfield Research, project owner did not wish to disclose current rents. Source: Maxfield Research Inc. Commenls/ Amenities/Feu lures Scoll County liRA projecl. Utililies and detached garage incl. in renl. RENTAL HOUSING MARKET REVIEW ~ There are three market rate projects of 40 or more units in Prior Lake, Tower Hill East (68 units) and Tower Hill West (51 units) and Priorwood (48 units). In addition, there are three other projects of between 24 and 36 units. The remaining three projects surveyed consist of a 7- and two 8-unit projects. ~ Five of the projects surveyed (with a total of 155 units) were built during the 1980's, two projects (with a total of 59 units) were built during the 1970's, and two projects (with a total of66 units) were built during the 1960's. ~ Of the 280 market rate units surveyed, six were efficiency units, 98 had one bedroom (35% of all units), eight had one bedroom plus a den, 123 had two bedrooms (about 44% of all units), and 45 units (16%) had either two bedrooms plus a den/loft, or three bedrooms. ~ Monthly rents for one-bedroom units in Prior Lake ranged from $475 to $600 and averaged $525 per month. Two-bedroom units ranged from 5525 to 5725 per month and averaged $625 per month. Four projects had either two bedrooms plus a den, two bedrooms pblS a loft, or three bedrooms. Rents for these units ranged from 5575 to $920 per month and averaged roughly $745 per month. All of the efficiency units identified in the survey were located at one project, as were the eight one-bedroom plus den units. The efficiencies had rents of $41 0 per month, while the one-bedroom plus den units rented for between 5560 and $655 per month with an average of $630 per month. ~ Most of the projects surveyed in Prior Lake saw only modest rents increases over the last three years, approximately 5 percent. However, rents increased more significantly at Tower Hill East and particularly at the Hearthwood Apartments. At Tower Hill East rents increased between 7 and 14 percent depending on the unit, while rents at Hearthwood increased by 22 to 28 percent. ~ The amount and type of amenities found in rental projects in Prior Lake varied greatly from one project to another. Every project surveyed in Prior Lake includes air conditioned units and all but two projects have garages available. While most of the projects have detached garages, both Towering Hill East and West has underground heated parking and Towering Woods Condominiums has attached garages. About half of the projects have dishwashers in their units. All of the projects, with the exception of Towering Woods Condominiums and some of the units at Priorwood (which have in-unit washer and dryers), have coin-operated laundry facilities. Unique features included wood-burning fireplaces in the units at Hearthwood Apartments and vaulted ceilings at Priorwood Apartments. Towering Hill East includes the largest number of recreational amenities (outdoor swimming pool, whirlpool, sauna, and tanning beds). Tower Hill West is the only project that has tennis courts. A portion of the two-bedroom units and all of the two-bedroom plus loft units at Priorwood have one and three-quarters bathrooms, and some of the larger units at Tower Hill East and Tower Hill West have two full bathrooms. 75 MAXFIELD RESEARCH, L~C. RENT AL HOUSING MARKET REVIEW Tax-Credit ~ There is only one tax-credit project in Prior Lake, the 48-unit Kestrel Village Apartments. The project consists of 32 two-bedroom units with rents of S680 per month and 16 three- bedroom units with rents of S720 per month. The project is limited to households with incomes of 60% or less of the County median. The units include wall-unit air conditioners, dishwashers, mini and vertical blinds, and either balconies or patios. Each building has a security entrance and a common coin-operated laundry. In addition, there is a tot lot and 30 detached garages are available for $40 per month. As of November 1998, all of the units were occupied. There is a diverse mix of residents and a significant number of them receive Section 8 rental assistance. Subsidized ~ There are two subsidized general occupancy projects with a total of 40 units in Prior Lake. One unit was vacant at the time of the survey, a vacancy rate of2.5 percent. The largest subsidized project is Highwood Homes, a 36-unit townhome project built in 1980. The project consists of24 two-bedroorn units, 10 three-bedroom units, and two four-bedroom units. Rents are based on 30% of the tenant's AGI up to the market rent ofS619 for the two- bedroom units, $663 per month for the three bedroom units, and 5707 for the four-bedroom units. The two-story units have private entrances, basements, air conditioning sleeves, and laundry hook-ups. The average rent paid by the tenants is $250 per month although one tenant pays the market rent. ~ The other subsidized general occupancy project in Prior Lake is Franklin Trail, a four-plex owned by the Scott County HRA. This project is subsidized through RUD's Public Housing program and tenants pay 30% of their AGI for rent. All four units have three bedrooms and detached garages. Jordan Data on the six largest general occupancy rental projects in Jordan appears in Table 17. The projects have a total of 69 units, all but two of which were occupied for a vacancy rate of 2.9 percent. Of the six general occupancy projects in Jordan, four are market rate and two are subsidized. Like Belle Plaine, all of the rental units in Jordan are in smaller projects, the largest being 24 units. Jordan has more subsidized than market rate general occupancy units. Market Rate ~ Only four market rate projects were identified in Jordan, one small 3-unit project that was identified in the 1995 study has since been converted to ownership housing. The four market rate projects have 31 units, the smallest number of the six larger cities in the County. All of the units were occupied at the time of the survey. 76 MAXFIELD RESEARCH, INC. Available High Density Properties (Properties Guided as R-HD up to 30 units/acre) LOCATION ACRES CURRENT LAND WITHIN ZONING USE MUSA 1 17 R-4 R-HD YES 2 4 R-4 R-HD YES 3 4 R-4 R-HD YES 4 1.7 R-4 R-HD YES 5 30 C-5 R-HD YES 6 205 A R-HD NO 7 90 A R-HD NO 8 40 A R-HD NO ];,' * 56.7 acres of the properties designated as High Density Residential are located within the present MUSA boundary. The 2020 Comprehensve Plan proposes a "Floating MUSA" which would make most of the 391.7 acres available for development. I:\deptwork\rh properties.xls :'i -$- -$- .. 1"-\"- T ...- ( i ." . --I 1\ 1 :1\ I \ \ I \ I I, ,-- I I 'I " \ I , ! ' \ l -$- -$- NORTHVIEW DEVELOPMENT CORPORATION 13241 Holasek Lane Edcn Prairie, MN 55346 Tcl (612)- 949-2667 Cell (612)-720-7174 City of Prior Lake 16200 Eagle Creek Avenue S. E. Prior Lake, MN 55372 RI:: Proposeu R-4 apartmcntuse on property on Tower Slreelnear Duluth Street In 1997 we analyzed the property adjacent to the uaycare lur the highest and best use of this commercially zoned property. We could not come up with any prospective eommercialusers, and aller studying the location and needs in the community, we realizeu an apartment use was lhe highesl and most suiteuuse. Cityl Stall' concurred with this, and concept plans were developed. We did notl<Jresee any neighborhood opposition, as residential apartment units have historically made more compatible bulTers between single lamily homes and commen.:ially used land than any corrunercial uses. The neighbors did, however, object, and the PlaJUling Commission and Council agreed that before some of the limited, remaining commereially zoned land in Prior Lake was allowed to be zoned residential, eommereial use possibilities should be exhausted belurehand. This land was always part of a larger part of the Brooks Hauser conunercial parcel, and had this eorrunercial zoning c1assilication for some time- while all surrounding land was still fannland. We feel that as the surrounding land was developed, the corrunereial zoning on this partieular parcel beeame grand fathered to it, and that if it were presently zoned residential, it would not be allowed to be reclassilied as commercial at this time. 1l1is land is remote Irom the highway lur both exposure and access, and aller the adjacent bowling alley and bar was allowed to be reclassitied to R-3 to allow daycare use, the l1avor of this entire back blOl.:k became more residential rather than eommereial in use. Over the past 18 months various uses were considered. The City has not been able to refer any eorrunereial users our way. A mini- storage business was reluctantly contemplated, which led to the actual location of the placement of sewer and water lines across the property. This location became dimcult for the storage faeility design, as it basically utilizes a large footprint. After more analysis, we kept coming back to the realization that the highest and best use for the property is apartments. (As tar as the location or the utility lines, it is coincidental that; the present location does not interrere with a proposed R-4 building lm.:ation, as it would with most commercial multi-tenant conligurations. The lines lidl within what would be realistically acceptabk utilitv easement boundarics 1'01' an R-4 apartment site plan). Two years ago the neighhors has several concems. -They did not really foresee a need in the City lor more apartments. Recent studies now show that there is need that our project would liIl. -They did not want to come home to see hecklers on decks looking down at them, and view people multiplying like rabbits before their eyes. This would not he the case. "Dle homes would view the end of the building rather than a longer lront elevation, and is considerably quieter and less intmding than most eommereial stmeture users. We worked with our management eompany to eliminate some of the exterior decks on some of the upper floors to eliminate the possibility or anyone of any age looking down at the existing rear yards.' Apartments are relatively consistent in occupancy loads. Family do not usually grow in numbers of household numbers and stay in the same b'.lilding. We asked the neighborhood what use 1'01' our land they would like to see. Although they represented that they felt that any commercial use would he both a better use that apartments, and that any corrunercial use would not he objectionable, the only suggested use otlered was that of the continuing use as a play area for their ehildren- where then played then and would like to continue to be abk to do so. While we can be sympathetic to this, it is somewhat unrealistic. Our experience is that people are a[raiu or the possibility or future change, but readily accept it when it happens, and are more content once no additional change is possible in the future. The site plan could oner reasonable bul1ering betwet:n our proposed building anu the residential yards. It could even include playground type areas in this area acceptable to their tamily members as well as the building residents if desired. This is not totally uncommon. Our project would Jill a need in the City. Our project would add the key amenity of proCessional on site managemt:nt and caretaking to the property. Our selt:cted third party management company spends their entire el1'ort toward managing apartments 1'01' owners. They do not have any ownership themselves. Management is a Cull time business. Our buildings are designed for ease of maintenance and management. We do not want to own a proj eet that is hard to keep maintained or diflieult to manage any more than the City would want a projeet that deteriorates and is not manageable. This is not the case with our design. For the past two years we have continued to keep Starr support for our suggested highest and best use, and again request a new review of our plans. We request an amendment to the Comprehensive Plan Map and an amendment to the Onicial Zoning Map to allow R-4 apartment use on this property. ,.:II .lIC , , i · jIlt ~l 2 . l =1 S I !~! i !I! )1 ji!l iL.~'!:I !. J~ H L~"~". ~ ~' I ! ~ j ~~ .g ~E I -:! If, '< J - ii' I l~ h I J ~ J 1 ~. I 0 :. . - . ~ ~ :! - - - ~ ~ ~ ~ ~ ~ ~ ~ j ~ ~ ~ C>l "" ':t , , I I I ! L ~ l I l _ ONE BEOROOIA ~ . 0: ~ OIl ONE BEDROOIA ONE BE OROOIA ONE BEOROOIA ~' Oa<al AAOtmCTV .I ~.t..-~ 1MJl)l'MoQ a.a..._ .1.......-- ....- ..---'..............11...... ......-.........,~... ::L~.............- TWOBEOROQIA 2B TWOBEDROQIA 2" TWO BEOROOIA 2.. 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