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HomeMy WebLinkAbout2022-11-28 PACKET 06.2. (COMP PLAN AMENDMENT-MINOR)STAFF REPORT CASE: CP2022-065 ITEM: 6.2 PUBLIC MEETING DATE: 11/28/22 TENTATIVE COUNCIL REVIEW DATE: 12/7/22 APPLICATION APPLICANT: City of Cottage Grove REQUEST: A comprehensive plan amendment for minor mapping corrections and a text amendment to allow for density bonuses to assist in the development of affordable housing in the 2040 Comprehensive Plan. SITE DATA LOCATION: N/A ZONING: N/A GUIDED LAND USE: N/A LAND USE OF ADJACENT PROPERTIES: CURRENT GUIDED NORTH: EAST: SOUTH: N/A WEST: SIZE: N/A DENSITY: N/A RECOMMENDATION Approval. Cottage Grove COTTAGE GROVE PLANNING DIVISION � here Pride and,Ospellty Meet Planning Staff Contact: Mike Mrosla, Senior Planner; 651-458-2825; mmrosla(c-)_cottagegrovemn.gov Application Accepted:. N/A 60-Day Review Deadline: N/A City of Cottage Grove Planning Division • 12800 Ravine Parkway South • Cottage Grove, MN 55016 Planning Staff Report 2040 Comprehensive Plan Amendment Planning Case No. CP2022-065 November 28, 2022 Proposal The City of Cottage Grove is proposing a minor mapping correction to re -guide 6850 and 6999 East Point Douglas Road South to Mixed Use and a text amendment to allow for density bonuses to be used as a tool to assist in the development of affordable housing in the 2040 Comprehensive Plan. Background Over the last year plus, planning staff has been working on a Zoning Code rewrite. The Zoning Code was written in the 1970's and hasn't seen a major rewrite since then. During this process staff has also been reviewing 2040 Comprehensive Plan to ensure consistency between the two documents. Minnesota State Statute requires that any official controls in conflict with the Comprehensive Plan be amended. Minnesota State law requires that all communities within the seven -county Minneapolis -St. Paul metropolitan area update their Comprehensive Plans every 10 years. The purpose of the Com- prehensive Plan is to establish the policies that guide the future physical and community devel- opment of Cottage Grove. All land use decisions, including zoning, subdivision review, and development controls, must be consistent with the Comprehensive Plan. The Comprehensive Plan is also a reference document for the Planning Commission and City Council when evaluating private development projects. The Comprehensive Plan and all its amendments must reflect the adopted regional policies in the Metropolitan Council's system and policy plans. Local planning efforts are linked to the larger regional infrastructure of parks and trails, road networks, and wastewater infrastructure, and the City's Comprehensive Plan shall conform to the regional vision. An amendment to the Comprehensive Plan requires a recom- mendation from the Planning Commission following a public hearing, and adoption of a resolu- tion by the City Council. Adjacent communities and impacted governmental agencies normally have a 60-day review, but this requirement has been waived by our Metropolitan Council Sector Representative due to no impacts. Text Amendment The existing Zoning Code (Title 11-9E-6) and the proposed Zoning Code rewrite (Special Zon- ing Provisions) includes language that permits the use of density bonuses for residential devel- opments. Density bonus is a tool that grants the City Council the authority to allow a housing developer to increase the maximum allowable density above the district standard in exchange in -kind support for specified public policy goal of affordable housing. The Zoning Code limits the maximum allowable total density increase to no more than 20 percent. Planning Commission Staff Report — 2040 Comprehensive Plan Map and Text Amendment Planning Case No. CP2022-065 November 28, 2022 Page 2 of 4 However, density bonuses are not currently mentioned in the City's 2040 Comprehensive Plan. Since density bonuses are not included in the 2040 Comprehensive Plan, the Metropolitan Council does not permit the use of them to increase density above the maximum permitted den- sity. Staff is proposing to add language to the Housing and Implementation Chapters of the Comprehensive Plan to authorize the use of density bonuses. In the Housing Chapter, staff identifies that the use of non -financial tools such as density bonuses may be used to assist in the development of affordable housing. The proposed language can be found on page 47 of Attachment A and below. "The City will continue to use non -financial tools such as official controls and land use regulations to assist in the development of affordable housing units. These tools may include density bonuses, planned unit developments, other controls and regulations that can be used to simplify the process of expanding local housing options." In the Implementation Chapter staff authorizes the use of density bonuses to increase density above the maximum permitted density when a project is meeting the specific affordable housing public policy objective. On page 144 of Attachment B staff added language describing what a density bonus is and the maximum permitted increase above the density standard. The pro- posed language can be found on page 47 of Attachment A and below. "Utilization of non -financial tools such as official controls. These tools may include density bonuses and planned unit developments. A density bonus is a tool that grants the City Council the authority to allow a housing developer to increase the maximum allowable density above the district standard in exchange for meeting affordable housing public policy objectives. The maximum allowable total density increase shall not exceed twenty percent (20%) as permitted by the Zoning Code." Staff also updated the Housing Implementation Plan, Table 10-1 in the Comprehensive Plan to allow for the use of density bonuses as an available tool to achieve affordable housing with average medium incomes (AMI) ranging from 30 to 80 percent (Attachment B, page 146). Identified Need Available Tools Potential Partners Circumstances and Sequence of Use 333 new housing units affordable TIF assistance to developer, Washington County CDA, The City will work with developers to accommodate the for 30%AMI tax abatement, MN Housing, Metropolitan development of affordable housing Consolidated RFP, LCDA, Council, Affordable housing LHIA, tax credits, TBRA, developers, non-profit density bonus organizations 221 new housing units affordable TIF assistance to developer, Washington County CDA, The City will workwith developers to accommodate the for 31 to 50%AMI tax abatement, MN Housing, Metropolitan development of affordable housing Consolidated RFP, LCDA, Council, Affordable housing LHIA, tax credits, density developers, non-profit bonus organizations 14 new housing units affordable for TIF assistance to developer, Washington County CDA, The City will work with developers to accommodate the 51 to 80%AMI tax abatement, MN Housing, Metropolitan development of affordable housing Consolidated RFP, LCDA, Council, Affordable housing LHIA, tax credits, density developers, non-profit bonus organizations Housing Implementation Plan, table 10-1 in the Comprehensive Plan Map Amendment As planning staff has been working on the Zoning Code rewrite, it was discovered that certain land uses identified in the 2040 Comprehensive Plan are not consistent with underlaying zoning Planning Commission Staff Report — 2040 Comprehensive Plan Map and Text Amendment Planning Case No. CP2022-065 November 28, 2022 Page 3 of 4 district or vice versa. The area that is not consistent with the Comprehensive Plan is located at 6850 and 6999 East Point Douglas Road South. The existing Legends of Cottage Grove site is guided High Density Residential in the 2040 Comprehensive Plan. High Density Residential al- lows for densities of 14 to 30 units per acre. However, the density of 6999 East Point Douglas Road South (Legends of Cottage Grove) is 37 units per acre and because of this the subject property should be re -guided to Mixed Use as this district allows for densities of 20-40 units per acre. It is recommended that the subject property should be re -guiding to Mixed Use so it is in conformance with the permitted densities. Lanu use anu coning %.ompanson In addition, it is proposed that the property located at 6850 East Point Douglas Road South be re -guided to Mixed Use. The subject site has been vacant since 2007 and is highly encumbered by a gas line easement that runs through the middle of the site. Upon review, the subject site was previously guided Mixed Use when the City Council approved the 2040 Comprehensive Plan at their January 16, 2019, meeting. However, the subject site was re -guided High Density Residential for consistency with the surrounding land uses by the City during the Metropolitan Council review process. uny uouncii Hpprovea zuiy uomprenensive Tian Lana use Planning Commission Staff Report — 2040 Comprehensive Plan Map and Text Amendment Planning Case No. CP2022-065 November 28, 2022 Page 4 of 4 The intent of the re -guiding the subject site back to Mixed Use is to facilitate development of the site by allowing for increased densities. Staff has previously been approached by multi -family users interested in developing the site, but they could not obtain the densities needed to finance a project, thus the site has remained undeveloped. Notice and Public Comments Notice was published in the Pioneer Press on November 16, 2022. At the time of writing this re- port, City staff has not received any comment letters, e-mails, or telephone calls from property owners or residents in regard to this planning case. Recommendation That the Planning Commission recommend to the City Council approval of the 2040 Compre- hensive Plan map and text Amendment subject to text modifications as requested by the Metropolitan Council. Prepared by: Mike Mrosla Senior Planner Attarhmantc- A. Comprehensive Plan Housing Chapter B. Comprehensive Plan Implementation Chapter— Housing Section C. 2019 City Council Approved 2040 Future Land Use Map D. Proposed Land Use Map HOUSING The health and character of a community may best be measured in its housing stock. Livable cities provide a variety of housing choices and work to ensure that existing housing is well maintained. The City must also ensure that new housing meets the changing needs of the community. COTTAGE GROVE COMPREHENSIVE PLAN HOUSING 35 INTRODUCTION The health and character of a community may best be measured in its housing stock. Livable cities provide a variety of housing choices and work to ensure that existing housing is well maintained. The City must also ensure that new housing meets the changing needs of the community. Existing and future residents are looking for more services and amenities near where they choose to live, including convenient shopping options and easily -accessible walking and biking trails. Housing has evolved into more than a place to live, but a community in which to thrive. While Cottage Grove expects to grow, it wants that growth to support livable and healthy communities. Where people live is important. For many Americans, a high -quality environment, walkable neighborhoods and diversity make a neighborhood a great place to live. Not only does Cottage Grove need to provide housing options for current residents to stay in the city if their family size or income changes, but the city should be welcoming to those who desire to live in Cottage Grove. More housing options means accommodating empty nesters and seniors in their own single-family homes or apartments, while also promoting move -up housing opportunities for younger families. As part of the established Community Vision, the City of Cottage Grove strives to address these key themes related to housing: • Housing Options — strive to provide a diverse mix of housing types that are needed to serve all income levels and stages in the life cycle. • Great Schools — work with the school district to support strong schools to attract and retain families. • Serving All Generations — continue to create diverse and vibrant neighborhoods with equal access to services and amenities for all citizens. • Defining Our Character — preserve and enhance the variety of neighborhood experiences in the city. HOUSING ISSUES AND OPPORTUNITIES IN COTTAGE GROVE On February 26, 2018, the City of Cottage Grove hosted a Housing Forum, identifying key issues and opportunities for housing in the city. The forum was attended by a variety of stakeholders including members of the Housing Task Force, Comprehensive Plan Steering Committee, and Planning Commission. The forum began with an open house, educating attendees on existing housing stock in Cottage Grove and affordable housing issues. Participants believe that there is a need for multi -family and townhome properties that have access to transit, additional senior housing facilities, and housing at a range of price points. Some challenges the city faces include negative perspectives on new development and the cost of construction for new homes. Next, participants were able to participate in real-time voting. Generally, participants feel that the quality of life in Cottage Grove is very high (92 percent responded good or excellent) and have chosen to stay in the city because of this high quality of life. However, participants also agree that the city has too few rental units (86 percent) and too few senior units (79 percent). However, participants in the forum also believe that the city should prioritize low density development at one to four units per acre over other types of development (64 percent). This process was replicated in an online survey. Twenty members of the public completed the survey. Like housing forum participants, survey participants were generally satisfied with the quality of life in Cottage Grove (75 percent responded good or excellent). Participants agreed that there should be more senior single- family housing (70 percent) but that there was disagreement about the need for other types of senior units. The main challenges inhibiting the development of affordable housing are the cost of land and construction. The in -person polling and online survey revealed some misconceptions about the cost of rental units. Specifically, in -person participants voted that they would pay $1,000 to $1,200 per month for a two -bedroom apartment in Cottage Grove. Online participants voted that they would pay $800 to $1,000 per month for the same unit. In 2018, two -bedroom units in Cottage Grove rent for $1,200 to $1,500, depending on the unit and amenities. There should be additional education about housing costs and affordability as development occurs. COTTAGE GROVE COMPREHENSIVE PLAN HOUSING GOALS AND POLICIES Goal 1: Preserve and improve existing neighborhoods and housing units • POLICY 3.1 Continue to enforce housing maintenance and zoning codes. • POLICY 3.2 Add flexibility to the Zoning Code in areas such as building setbacks which allow expansion and reinvestment in existing houses. • POLICY 3.3 Partner with the Washington County Community Development Agency and other agencies that provide housing rehabilitation programs and services. • POLICY 3.4 Encourage the safety of the general public by requiring owners to repair substandard housing or as a last resort, abate and demolish dangerous housing. • POLICY 3.5 Develop housing maintenance program that promotes and requires safe neighborhoods. Goal 2: Meet future needs with a variety of housing products • POLICY 3.6 Encourage life -cycle housing opportunities in Cottage Grove that allow residents to remain in the community throughout their lives. This includes: • Maintenance of existing entry level housing. • Construction of move -up single family housing. • Construction of various types of senior housing, including senior ownership units, senior rental units, memory care and assisted living units. • POLICY 3.7 The 2040 Housing Policy Plan prepared on December 10, 2014 will continue to be used as an implementation tool in accomplishing the City's Livable Communities Act housing goals. • POLICY 3.8 The City will strive to encourage environmentally sustainable housing development and construction practices. • POLICY 3.9 Provide for housing development that maintains the attractiveness and distinct neighborhood characteristics in the community. • POLICY 3.10 Support the maintenance and rehabilitation of the community's existing housing stock. • POLICY 3.11 Periodically assess the housing needs of current and prospective residents, including the elderly, disabled, active retirees, and other groups with special housing needs to determine development priorities and to formulate specific strategies and activities to meet those needs and maintain an adequate and quality housing supply. COTTAGE GROVE COMPREHENSIVE PLAN HOUSING Goal 3: Encourage the development of sustainable housing options that have access to amenities, use land efficiently, conserve natural resources, utilize resource -efficient design and constructions, and incorporate the use of renewable energy generation. • POLICY 3.12 Support the design of residential neighborhoods with mixed land use at a scale appropriate to residential development and with convenient access to neighborhood shopping or larger commercial areas. • POLICY 3.13 Encourage a mix of residential housing to be near pedestrian, bicycle, and transit or high capacity transportation routes, community facilities and services, and employment to ensure that the benefits of public investment in those facilities are available to as many households as possible. • POLICY 3.14 Provide opportunities for alternative housing types and patterns, such as planned unit developments, mixed -uses, and other techniques that reduce development costs, increase density, and achieve projects that are flexible and responsive to the site and surroundings, including the conservation and enhancement of areas having special, historic, architectural, or cultural value. • POLICY 3.15 Encourage the infilling of housing in urban areas that make more efficient use of existing infrastructure. • POLICY 3.16 Encourage the use of resource efficient technologies and materials in housing construction that meet adopted codes and increase the useful life of new and existing housing. 0 HOUSING DEVELOPMENT Prior to the late 1950's, all housing in Cottage Grove was on scattered rural parcels served by private wells and on -site septic systems. In 1958 the suburbanization of the community began with the development by Orrin Thompson Homes of the Thompson Grove subdivision located south of TH 61. This development was followed by other single family subdivisions in the 1960's, most also built by Orrin Thompson Homes. The most common housing style of this era was the single -story rambler, typically with a detached single car garage. By the 1970's, housing subdivisions began to include the split-level design in addition to earlier rambler and Cape Cod style houses. In the 1990's, and continuing to the present, larger two-story houses became the most common form of new construction. Figure 3-1 illustrates the residential housing age throughout the city, with the oldest neighborhoods located near St. Paul Park and the newest neighborhoods in the northeast part of the City. As discussed in the demographics section of this Plan, Cottage Grove has seen an increase in population since the 1970s, with an associated increase in housing needs. Single family residential development has continued steadily in the community, even in the wake of the economic downturn. However, there has been minimal multifamily or senior housing development since 2010. Table 3-1 describes residential unit types for permits issued in each year between 2007 and 2015. 38 COTTAGE GROVE COMPREHENSIVE PLAN HOUSING Figure 3-1: Residential Housing Age Cottage Residential Housing Age City Boundary Open Water Building Year Pre-1950 1951 - 1960 �1961-1970 1971 - 1980 1981 - 1990 1991 - 2000 2001 - 2010 2011 - 2015 �T �••�•• •• •� ••�••�•• 190th-StS �6:1 ..... Mississippi River September 19, 2018`•.� /' '�. 0 4,500 9,000 Feet ��'•�• �•� N V:\1938\active\193803560\GIS\Projects\Housing Age.mxd •�, „/' FBI ]I COTTAGE GROVE COMPREHENSIVE PLAN HOUSING 39 Table 3-1: New Residential Units Permitted Year Number of Units Permitted Single Family Detached Single Family Attached Multifamily or Senior Total 2007 65 2 187 254 2008 87 2 - 89 2009 54 12 - 66 2010 45 - 44 89 2011 50 - - 50 2012 53 - - 53 2013 46 10 - 56 2014 73 4 - 77 2015 59 6 - 65 2016 98 - 1 99 2017 111 4 2 117 Total 741 40 234 1,015 Source: City of Cottage Grove HOUSING STOCK Cottage Grove's demographic mix is heavily shaped by the residential development patterns of the community. The vast majority of residential development is in single family detached homes and townhomes, which were built in the 1950s and later. As a result, households tend to be families with an income that supports home ownership. The predominance of owner occupied homes is one of the reasons there are relatively few older residents. And it is consistent with the low rates of unemployment and poverty. Single family homes comprise 81 percent of 12,521 units in the community. This is much higher than the average in Washington County (68 percent) or the Twin Cities Metropolitan Area (61 percent). The next most common unit type in Cottage Grove is the single-family attached home, also known as townhomes. Townhomes make up about nine percent of Cottage Grove's housing stock. Other housing types in Cottage Grove include small apartments (two to nine units), medium or large apartment buildings (ten or more units) and mobile homes. The Metropolitan Council defines home ownership affordability as $85,500 for households making less than 30 percent Area Median Income (AMI), $153,000 for households making 31-50 percent AMI, and $240,500 for households making 51-80 percent AMI. In Cottage Grove, the median home value is $204,600, indicating that much of the City's housing stock is affordable at 80 percent AMI. Housing affordability is discussed further later in this chapter. These housing characteristics are summarized in Table 3-2 on the following page. COTTAGE GROVE COMPREHENSIVE PLAN HOUSING Table 3-2: Housing Stock Characteristics Total Number of Units 12,407 Number of Affordable Units At or below 30% AMI 31-50% AMI 51-80% AMI 146 11,441 7,314 Number of Units Owner Occupied Rental 10,792 1,615 Number of Units Single Family Multi -family 11,316 989 Number of Publicly Subsidized Units Senior Housing People with Disabilities All other publicly subsidized units 0 0 1388 Source: Metropolitan Council The neighboring community of Woodbury provides an interesting comparison to Cottage Grove. Fifty-five percent of Woodbury's housing stock is single family homes, much lower than Cottage Grove. This is due in part to the large number of townhomes in Woodbury. Twenty-seven percent of Woodbury's housing stock is townhomes, one of the highest percentages in the Twin Cities region. These housing stock characteristics are illustrated in Figure 3-2 on the following page. HOUSING TENURE About 88 percent of residents in Cottage Grove own their home. This is a much higher number than either Washington County (approximately 80 percent) or the Twin Cities Metropolitan Area (approximately 70 percent). In Cottage Grove, renters live in an array of housing types, though about 40 percent live in medium to large apartment buildings (10 or more units). Because of the high percentage of single family homes in the City, many renters also rent single family homes and townhouses (43 percent of renters). COTTAGE GROVE COMPREHENSIVE PLAN HOUSING 41 Figure 3-2: Housing Unit Types in and around Cottage Grove 1007 9,V .T 80 r70 i0 60T. 5 0 0 40% C=Qge Grotie YVacdbu, Hashings Inver Grove Heights Lolcev a Rosenwunt Nevdperl St. Pau Fcaa : Afton Washingion County Twin C71es F&-tdo ■AAGbifehome 1.3% 0.1% 6.07. 6.5% 4.30% 250% 0.07. 5.4% 0.07. 1.4% 1.7% DApartmentBuldsngs, 10+ Unit 4.8% 10.6% 13.1% 19.7% 2.90% 6.00% 20.1% 0-8% 0.0% 9.1% 19.3% ®ApartmentBuldings,2-9Umt 3.1% 62% 3.3% 3.9% 3,80% 2-20% 9.09T, 9.9% 0.0% 5.1% 7.1% ■ 1-unit. attached 9.0% 27.3% 21.6% 21.9% 17.30% 22.60% 5.1% 6.8% 0.9% 15.8% 10.8% ■ 1-und. detached 51.7% 55.3% 51.0% 47.9% 71.70% 66.60% 65.7% 76.5% 99.1% 63.SP 612% Source: American Community Survey, 2014 COTTAGE GROVE COMPREHENSIVE PLAN HOUSING HOUSING VALUE AND RENT The median home value in Cottage Grove is $204,600, which is lower than the Washington County median value of $240,200 and slightly lower than the Twin Cities Metropolitan Area median of $212,600. Compared to other communities in the region, Cottage Grove's housing values are fairly average. Afton is the only nearby community with significantly higher housing values (median value of $409,700). Table 3-3 includes median housing values in nearby communities. Housing values in Cottage Grove are mapped in Figure 3-3. Table 3-3: Median Housing Values in and around Cottage Grove Community Median Housing Value Cottage Grove $204,600 Woodbury $267,500 Hastings $175,200 Newport $168,400 St. Paul Park $157,500 Afton $409,700 Washington County $240,200 Twin Cities Metropolitan Area $212,600 Source: American Community Survey, 2014 Median Housing Valt $450,000 $400,000 $350 000 $300,000 $250,0D0 — $200, 000 $150 000 $0,000 0 $5- ' $50,0�- Az 4 4����� G The median rent in Cottage Grove is $1,098 per month, which is higher than the Twin Cities Metropolitan Area ($916) but lower than Washington County ($1,125). Compared to other communities in the area, Cottage Grove's median rent is slightly higher. This may be attributed to the large number of single family homes that are rented in the City, which tend to be more expensive to rent than apartments. This may also be the case in Afton, the neighboring community with the highest median monthly rent ($1,479). Table 3-4 includes median monthly rents in nearby communities. Table 3-4: Median Rent in and around Cottage Grove Community Median Monthly Rent Cottage Grove $1,098 Woodbury $1,344 Hastings $825 Newport $722 St. Paul Park $758 Afton $1,479 Washington County $1,125 Twin Cities Metropolitan Area $916 Source: American Community Survey, 2014 S1,600 S1,400 $1,200 $1,000 $800 $600 $400 $200 $0 Median Monthly Rent COTTAGE GROVE COMPREHENSIVE PLAN HOUSING 43 Figure 3-3: Owner Occupied Single Family Residential Housing Values ">,�.. ..�..�a�.•���a. Cottage ,,, ' .' Grove w� ED �>• - a y w ■ Owner Occupied Single Family c ; Residential Housing Values City Boundary v .Open Water q�P fo r Estimated Total Market Value: I Up to $148,000* 80Th-ST-S ` i $148,000 to $180,500* $180,500 to $235,000* $235,000 to $500,000 ° ° a Above $500,000 1 RW f � of von, St S E� 1 x * Metropolitan Council Affordable Housing Guideline: g, wsTn srs `F 2016 Home Ownership �L ,. �p%4o Household Income Affordable Home Price 80%AMI ($65,700) $235,000 x° aSRas 60% AMI ($51,480) $180,500 I r -=•, i! 50% AMI ($42,900) $148,000 loan sTl s a I loan s' T s� 30% AMI ($25,750) $85,500 `! - `o_ O c 1 L._.._..I k- k .��..�Mississippi River �. op September 19, 2018••.,„_,.op 0 4,500 9,000 Feet ��'•�, N V\1938\active\193803560\GIS\Projects\Housing Value.mxd E 44 COTTAGE GROVE COMPREHENSIVE PLAN HOUSING COST BURDENED HOUSEHOLDS Many residents in communities across the Twin Cities experience challenges affording their housing costs. The Department of Housing and Urban Development (HUD) defines housing to be affordable if the residents do not pay more than 30 percent of their income towards housing costs. Housing costs can include rent or mortgage payments, utility bills, HOA fees or other fees associated with living in the home. Residents who pay more than 30 percent are considered "Cost - burdened". In Cottage Grove, over two thousand households (16.9 percent of households) are considered to be cost-burdend. Table 3-5 describes the cost burdened households by median income level. Table 3-5: Housing Cost Burdened Households Household Income Level Number of Cost -burdened Households At or below 30% AMI 698 31 to 50%AMI 663 51 to 80%AMI 648 Total Households 2,009 Source: Metropolitan Council HOUSING PROJECTIONS AND NEED With a growing population, Cottage Grove will need to accommodate for new residents of all socioeconomic backgrounds. The Community Vision, Goals and Policy Consistent with Metropolitan Council requirements, Cottage Grove must supply 568 new units of affordable housing (at or below 80 percent AMI) by 2040. The units must be affordable at different levels, described below in Table 3-6. Table 3-6: Affordable Unit Allocations for Cottage Grove Household Income Level Number of Units At or below 30% AMI 333 31 to 50%AMI 221 51 to 80%AMI 14 Total Units 568 Source: Metropolitan Council In the decade 2021-2030 the City estimates about 65 acres of High Density Residential and Mixed Use development, as follows: • High Density: 15 acres x 14 units/acre: 210 units • Mixed Use: 50 acres x 20 units/acre: 1,000 units • Total: 1,210 units All of this land is within the City's current service area, not in the future Staging Areas. The Mixed Use land is currently developed, but is expected to redevelop with a housing component, so all 50 acres in the estimate above would develop with residential uses at the density noted. COTTAGE GROVE COMPREHENSIVE PLAN HOUSING Housing Need The housing needs in Cottage Grove include • Multi -family units accessible to transit, especially near the future BRT stations at 80th Street and Jamaica Avenue • Senior housing for the aging population who wish to age in place with lower maintenance units or the full spectrum of assisted living • More affordable housing of many kinds • Maintenance of existing housing stock through enforcement and partnering with agencies who can assist homeowners LIVABLE COMMUNITIES Cottage Grove has placed an emphasis on not only increasing housing supply and options but on creating communities that are healthy and livable. The City received a grant from Washington County in 2016 as part of the Statewide Health Improvement Program (SHIP) that evaluated key indicators of community health and surveyed residents on their desires for where they live. The survey found that residents in Cottage Grove believe that their parks and trails system is one of the most valuable assets in their community and 35% of residents bike or walk daily. However, safety and accessibility remain major concerns for residents. The healthy and active living survey, as well as associated goals and policies, are discussed further in Chapter 9: Resiliency. MANUFACTURED HOUSING Cottage Grove currently has one manufactured home park called Cottage Grove Estates located north of 100th St and east of Hadley Ave S. Manufactured home parks are an important source of naturally occurring affordable housing and create opportunities and access to homeownership. The City has a strong relationship with the manufactured home park and will explore opportunities to preserve this valuable source of affordable housing. Options that the City may explore include the use of available homeownership resources for residents of manufactured housing, including first time homebuyer and rehabilitation resources. The City may also explore including manufactured housing as an allowable use in land use and zoning districts assigned to the existing home community. Finally, the City may consider supporting a local notice of sale or first look provisions to provide residents time to consider cooperative ownership if/when the community becomes available for sale. STRATEGIES TO PROMOTE A DIVERSE HOUSING STOCK In order for Cottage Grove to meet its goals and policies pertaining to housing, and especially to accommodate the projected needs of affordable housing units, the City can rely on a number of existing programs and policies to promote housing stock diversity. Numerous efforts are available for Cottage Grove to employ in order to facilitate the construction of affordable housing and to expand local housing options including regional, state, and national programs, fiscal devices, official controls, and land use regulation. Livable Communities Act In 1995, Minnesota Legislature created the Livable Communities Act (LCA) as defined by MN State Statute 473.25. The LCA is a voluntary, incentive -based approach to help the Metro Area communities address affordable and lifecycle housing needs. The LCA provides funds to communities to assist them in carrying out their development plans for affordable housing and creation of new jobs. Participation in the Local Housing Incentives Program portion of the LCA requires communities to negotiate housing goals with the Metropolitan Council and prepare a Housing Action Plan. 46 COTTAGE GROVE COMPREHENSIVE PLAN HOUSING Livable Communities Demonstration Accounts (LCDA) LCDA funds support regional growth strategies promoting development and redevelopment that make efficient and cost-effective use of urban lands and infrastructure; improve jobs, housing, transportation, and service connections; and expand affordable and lifecycle housing choices in the region. The funds are available to municipalities that participate in the Local Housing Incentives Program of the Livable Communities Act (LCA). The LCDA is open to local housing and redevelopment authorities, economic development authorities or port authorities in LCA-participating cities, or to counties on behalf of projects located in LCA- participating cities. As the name of the account suggests, LCDA funds are intended to be used for projects that demonstrate innovative and new ways to achieve and implement the statutory objectives, not merely to fill project funding needs. Local Housing Incentive Account (LHIA) LHIA grants help to produce new and rehabilitated affordable rental and homeownership, promote the Council's policy to expand and preserve lifecycle and affordable housing options to meet changing demographic trends and market preferences, and support the region's economic competitiveness. Tax Base Revitalization Account (TBRA) The TBRA provides funds to clean up polluted land to make it available for economic redevelopment, job retention, and job growth, or the production of affordable housing to enhance the tax base of the recipient municipality. TBRA funds are raised by a legislatively authorized levy capped at $5 million annually. If the TBRA project includes a housing component, a portion of the housing is required to be affordable. Ownership units are considered affordable if they can be purchased by buyers earning 80% of the area median income (AMI). Affordable rental units are those renting at the Low -Income Housing Tax Credit rent limits based on 50% of the AMI. Community Development Block Grant (CDBG) Program The CDBG Program is provided through the U.S. Department of Housing and Urban Development. The CDBG program is a flexible program that provides communities with resources to address a wide range of unique community development needs. The CDBG program works to ensure decent affordable housing, to provide services to the most vulnerable in our communities, and to create jobs through the expansion and retention of businesses. Fiscal Devices Fiscal devices, such as revenue bonds, tax increment financing, or tax abatement can be used to help ease the construction and availability of affordable housing in the City of Cottage Grove. Official Controls The City will continue to use non -financial tools such as oOfficial controls and land use regulations Gan be to assist in the GGIRStIFUefiee development of affordable housing units. These tools may include density bonuses, planned unit developments and other cGontrols and regulations that can a4se be used to simplify the process of expanding local housing options alse. The following is a list of official controls that the City of Cottage Grove can use to implement its housing goals and policies: Zoning Ordinance, Subdivision Ordinance, Building Codes, Design Requirements, and the actual approval process itself. These regulatory tools impact the type and cost of new housing. COTTAGE GROVE COMPREHENSIVE PLAN HOUSING CONCLUSION Cottage Grove will continue to focus short-term and long-term efforts on improving housing options for all residents. This will be accomplished through maintenance of the existing housing stock, working with developers who want to provide varied housing models, and partnering with Washington County, Metropolitan Council, and Minnesota Housing to accommodate people who are cost -burdened. 48 COTTAGE GROVE COMPREHENSIVE PLAN HOUSING Other Implementation Steps • Future Land Use Map — implement the future land use plan by updating the existing zoning map to reflect new land use changes • Future Land Use Categories • Implement the mixed -use category by adding a new mixed -use district to the zoning code • Complete master plans for areas identified as Transitional Planning Areas • Land Use Staging — work with developers and property owners to encourage contiguous development in appropriate staging area Action Plan Item/Action Goal and Policy Implementing Body Timeframe Priority Level Make zoning decisions consistent with the land use Goal 1, policy 2.1 City Staff, Planning Ongoing Medium plan Commission Update zoning code to emphasize high -quality Goal 2, policy 2.7 City Staff, Planning Short-term (1 year) Medium design standards in new subdivisions Commission Update zoning code to require high -quality design Goal 2, policy 2.8 City Staff, Planning Short-term (1 year) Medium standards for public buildings and facilities Commission Complete character district studies, identifying and developing strategies to enhance neighborhood Goal 2, policy 2.9 City Staff, new task force Medium -term (5 years) Medium character in Old Cottage Grove Develop a plan for access to the Mississippi River Goal 2, policy 2.10 City Staff, new task force Medium -term (5 years) Medium Develop a plan for the future of Lower Grey Cloud Goal 2, policy 2.11 City Staff, new task force Long-term (10+ years) Low Island and supporting infrastructure Update zoning code to emphasize energy efficiency Goal 4, policies 2.13, 2.15 City Staff, Planning Short-term (1 year) Medium and stormwater management in new construction Commission Implement the future land use plan by updating the N/A City Staff, Planning Long-term (10+ years) Medium existing zoning map to reflect new land use changes Commission Implement the mixed -use category by adding a new N/A City Staff, Planning Short-term (1 year) High mixed -use district to the zoning code Commission Complete master plans for areas identified as N/A City Staff, new task force Long-term (10+ years) Low transitional planning areas Work with developers and property owners to encourage contiguous development in appropriate N/A City Staff Ongoing Medium staging areas CHAPTER 3: HOUSING Summary The housing chapter of the Comprehensive Plan addresses existing and future housing needs for residents of Cottage Grove. In addition to goals and policies developed by the community, the Metropolitan Council has placed affordable housing requirements on the City which will need to be met by 2040. Housing needs and opportunities were especially important topics in the comprehensive planning process, leading to the development of a housing task force for interested stakeholders. COTTAGE GROVE COMPREHENSIVE PLAN IMPLEMENTATION 143 Goals and Policies to be Implemented • Enforce existing zoning and building standards for residential properties (Goal 1, policy 3.1) • Update zoning code to allow for flexibility to reinvest in existing housing stock (Goal 1, policy 3.2) • Partner with Washington County and other agencies to implement housing rehabilitation programs in the region (Goal 1, policy 3.3) • Develop a city-wide housing maintenance program (Goal 1, policy 3.5) • Conduct a housing needs assessment for different population groups in Cottage Grove including the elderly, disabled, and residents with special needs (Goal 2, policy 3.11) Other Implementation Steps • Provide 568 affordable housing units by 2040, as per requirements from the Metropolitan Council. • Seek funding opportunities to develop an affordable and diverse housing stock including funds from the CDA's GROW program, the US Department of Housing and Urban Development (HUD) Community Development Block Grants, HOME programs administered by the CDA, Low Income Housing Tax Credits, Livable Communities Act, Local Housing Initiative Account, or Tax Base Revitalization Account. • Utilization of non -financial tools such as official controls. These tools may include density bonuses and planned unit developments. A density bonus is a tool that grants the City Council the authority to allow a housing developer to increase the maximum allowable density above the district standard in exchange for meeting an affordable housing public policy objectives. The maximum allowable total density increase shall not exceed twenty percent (20%) as permitted by the Zoning Code. Action Plan Item/Action Goal and Policy Implementing Body Timeframe Priority Level Enforce existing zoning and building standards for Goal 1, policy 3.1 City Staff Ongoing High residential properties Update zoning code to allow for flexibility to reinvest Goal 1, policy 3.2 City Staff Short-term (1 year) High in existing housing stock Partner with Washington County and other agencies to implement housing rehabilitation programs in the Goal 1, policy 3.3 City Staff Ongoing Medium region Develop a city-wide housing maintenance program Goal 1, policy 3.5 City Staff Complete Conduct a housing needs assessment for different City Staff, CDA, new task population groups in Cottage Grove including the Goal 2, policy 3.11 force Medium -term (5 years) High elderly, disabled, and residents with special needs Provide 568 affordable housing units by 2040, as per N/A City Staff, partner agencies Ongoing, long-term (10+ Medium requirements from the Metropolitan Council years) Seek funding opportunities to develop an affordable and diverse housing stock including funds from the N/A City Staff Ongoing Low Livable Communities Act, Local Housing Initiative Account, or Tax Base Revitalization Account. 144 COTTAGE GROVE COMPREHENSIVE PLAN IMPLEMENTATION Implementation Plan Table 10-1: Housing Implementation Plan Identified Need Available Tools Potential Partners Circumstances and Sequence of Use Rehabilitation and maintenance of HOME Washington County CDA, The City will provide information on potential resources existing housing units Minnesota Housing CDBG Washington County CDA The City will consider using a portion of the city's total CDBG allocation to provide for rehabilitation and maintenance of existing housing units Rental Licensing and The City intends to continue the existing Rental Licensing and Inspection Program Inspection Program Effective Referrals Washington County CDA, The City will provide referrals to partner organizations that address Minnesota Housing, rehabilitation and maintenance of housing units Non-profit organizations Multi -family units with access Consolidated RFP, LCDA, Minnesota Housing Upon request by a qualified developer, the City would consider to transit, especially near the LHIA, TBRA, sponsoring an application to LCDA, LHIA, TBRA, Consolidated RFP, and/ future BRT stations at 80th CDBG/HOME or CDBG/HOME programs for multi -family units with access to transit Street and Jamaica Avenue GROW (Gap Financing Washington County CDA Upon request by a qualified developer, the City will consider support for Redevelopment and for gap financing funds for multi -family projects near transit Rental and Owner - Occupied Housing) Various types of housing for Start -Up Loan Program Minnesota Housing The City will work to provide information on potential resources to the multi -generational community best of its ability Home Improvement Washington County CDA, The City will work to provide information on potential living, including senior housing Loans Minnesota Housing resources to the best of its ability Home Buyer Education Washington County CDA The City will consider partnering with the CDA and other agencies to offer resources to homeowners pre- and post -purchase. Affordable Mortgage Minnesota Housing The City will provide information on this potential resource Products/MCPP to the best of its ability. (Minnesota Cities Participation Program) Fair Housing Policy The City will consider developing a Fair Housing Policy and understands such a policy will be required to apply for LCA grants starting in 2019. Site Assembly It is unlikely the City will consider using site assembly for this purpose. COTTAGE GROVE COMPREHENSIVE PLAN IMPLEMENTATION 145 Implementation Plan Cont'd. Identified Need Available Tools Potential Partners Circumstances and Sequence of Use 333 new housing units affordable TIF assistance to developer, Washington County CDA, The City will work with developers to accommodate the for 30% AMI tax abatement, MN Housing, Metropolitan development of affordable housing Consolidated RFP, LCDA, Council, Affordable housing LHIA, tax credits, TBRA, developers, non-profit organizations 221 new housing units affordable TIF assistance to developer, Washington County CDA, The City will work with developers to accommodate the for 31 to 50% AMI tax abatement, MN Housing, Metropolitan development of affordable housing Consolidated RFP, LCDA, Council, Affordable housing LHIA, tax credits, developers, non-profit bonus organizations 14 new housing units affordable for TIF assistance to developer, Washington County CDA, The City will work with developers to accommodate the 51 to 80% AMI tax abatement, MN Housing, Metropolitan development of affordable housing Consolidated RFP, LCDA, Council, Affordable housing LHIA, tax credits developers, non-profit e. organizations Tools to address multiple housing Use of local HRA/EDA The City would consider this tool as needed needs powers Participation in housing- The City would consider this tool as needed related organizations and partnerships Preservation of existing Washington County CDA The City would consider partnering with Washington County CDA LIHTC properties to preserve existing LIHTC properties as needed Specific tools that preserve MN Housing, Greater The City will explore use of these tools and partnerships as naturally occurring Minnesota Housing Fund needed affordable housing: Housing Improvement Areas, partnerships with sources of preservation financing, local program utilizing 4(d) tax incentives Partnership with Two Rivers Community The City would consider assisting CLT's working in the area as Community Land Trust (CLT) Land Trust requested COTTAGE GROVE COMPREHENSIVE PLAN IMPLEMENTATION CHAPTER 4: HISTORIC PRESERVATION Summary The historic sites of Cottage Grove contribute to the character of the community. Chapter 4 of the Comprehensive Plan addresses historic preservation and identifies goals and policies to balance new development with these historic features. As the City of Cottage Grove continues to grow, it will be important that the City work proactively with property owners to preserve and enhance heritage resources in their community. Goals and Policies to be Implemented • Partner with Washington County, SHPO and other relevant organizations to implement the City Historic Preservation Program (Goal 1, policy 4.1) • Maintain a historic resources inventory on the City's website (Goal 2, policy 4.5) • Monitor historic resources in the community and determine eligibility of resources using existing city processes (Goal 2, policy 4.8) • List properties deemed significant by the Advisory Committee on Historic Preservation on the City and National Registers of historic places on an ongoing basis (Goal 3) • Follow established processes in the review and permitting of properties with established or potential historic resources (Goal 4, policies 4.11, 4.12, 4.13) • Develop and provide owners of historic property with educational resources and guidelines for the rehabilitation and restoration of their properties (Goal 5, policy 4.14) Other Implementation Steps • Develop an education program for residents to help empower them to realize the community vision for historic preservation in the future. • Complete a character district study, identifying and developing strategies to preserve and enhance the neighborhood character of old Cottage Grove. COTTAGE GROVE COMPREHENSIVE PLAN IMPLEMENTATION 147 Figure 2-10: 2040 Proposed Future Land Use f=+ e.P%�CGoroet,tva. neee * ?� -�va'_;�:i • • • ir�a-�--_ � • ti° S�T3 �1% �;> OI PIP. a ' _..y .._.._.._..__ -..- _ _.._`.._.._... _ _.. ° 1 ° _.._ _. 'eg65th T 2040 Future Land Use - ' City Boundary 1� — BothStS - - - Major Future Roadways •'� r, ® Agriculture Preserve yo�f`'ss,•• Subject Area Rural Residential Low Density Residential =—• o RUIIman.Ave _ 77th-StS Medium Density Residential 'BOrh �S}S "-' - High Density Residential i - Commercial .� Hi/lS• ¢ �� Mixed Use ® r� Mixed Use thin 300' of Arterial Roadways , • $Y,,, �A'oor - — ` wi i v Industrial A • Public/Semi-Public 90Th Sr'S a Agricultural - Parks/Open Space -Golf Course •� FA 1 ¢ 95th-Sf-S Transition Planning Area v - A os Open Water Street and Railroad Right -of -Way - - - - ♦ ��� loorh sts — I � ' ,tooth sts 1 o -----a -� =i .._.. �_ 1 41 s to T o s w - si Rol �°. •�.. Mississippi River 4.0 i� ._.' September 19, 20P8•�„..�'•�• •�• 0 4,500 9,000 Feet •.. �' N V:\1938\active\193803560\GIS\Projects\Final\2040 Future Land Use.mxd •�.,,•_.•�• COTTAGE GROVE COMPREHENSIVE PLAN LAND USE 29 Exiting 2040 Land Use Plan Rural Residential Low Density Residential Med Dens1y Residential Hi h Density Residential - Commercial - Mixed Use Industrial - Golf Course - Parks/Open Space Propose Rezoning Propose 2040 Land Use Plan I1 - General Industrial = I2 - Heavy Industrial I3 — Commercial Excavation I I B1 - Limited Business M 132 — Retail Business ® B3 — General Business ® PB — Planned Business MU Mixed Use Rural Residential Low Density Residential Med Density Residential High Density Residential Commercial Mixed Use Industrial - Golf Course Parks/Open Space Rural Residential Low Density Residential - Med Density Residential - High Density Residential Commercial ixe se Industrial - Golf Course M Parks/Open Space eAg'% '.A