Date: February 15, 2018
To: Members of the Planning Commission
From: Scott Tempel, City Planner
Title
Review of Draft Southbridge Development Concepts
Body
Action Requested:
The Planning Commission is requested to provide preliminary review of two adjacent development proposals. Preliminary Review by the Planning Commission is an option in the Type 4 development procedure where the Planning Commission provides initial feedback to the developer without rendering any decisions.
8.4.7 (C) Preliminary Review by the Planning Commission
The applicant may request preliminary review with a quorum of the planning commission prior to submitting an application, except that a preliminary review meeting with the planning commission shall be required if the project contains environmentally significant areas as described in the comprehensive plan, Chapter 5, or park plan components as described in the comprehensive plan, Chapter 8. The purpose of the work session is to provide feedback to the applicant regarding the proposal (See Section 8.3.4, Effect of Pre-application Meetings and Preliminary Review).
Summary Report:
Over the past several months, Community Development staff have been working on two residential development concepts on adjacent properties. One project comes from the Housing and Redevelopment Authority (HRA) to build a second phase of multifamily housing and complete a development concept for the remainder of the HRA owned land in the neighborhood. The second project comes from Vernon Koester to complete the remainder of the Southbridge residential subdivision.
The subject properties are located at the extreme southern boundary of the City directly east of Division Street (246). Attachment 1 shows the ownership and location of these development properties. The aerial shows how the property has been preliminarily graded. This occurred in 2004 when the property had an approved development plan called Southbridge.
Southbridge was proposed by the ARCON Corporation to develop 52 single-family residential lots, 140 row-style townhomes and 124 back-to-back townhome units. The single-family lots had a minimum size of 6,500 square feet. The row townhomes were planned in 35 separate structures of 4 units apiece. The back-to-back units were to be in 14 buildings with 8-10 units per structure. The preliminary plat is included as Attachment 2.
Only Phase 1 of the project was constructed before the economic crash of 2007-8 forced ARCON to abandon the project. The final plat for the first addition consisted of 17 multi-family buildings and 10 single-family lots as shown in Attachment 3. Not all of the units were constructed.
In 2008, the remainder of the project was subdivided as the 2nd Addition to allow the HRA to purchase the northern 14.4 acres of the project. The remainder of the parcel was reacquired by the Kester’s. This is the Outlot they wish to develop now. The Koester’s approached the HRA regarding a potential land swap of land owned by the HRA for land owned by the Koester’s. The HRA obtained site concept plans and soil testing analysis to determine the feasibility of the land trade. Due to time constraints and other considerations, the Koester’s decided to move forward with development plans of the adjacent parcel without the land trade.
Presented as Attachment 4, the Koester’s proposal for this 32.2 acres consists of 59 single-family lots, 11 twin homes, four 4-plexes and two Neighborhood Commercial lots. The Koester’s wish is to provide a quality, affordable housing development. They approached staff with some draft concepts late in 2017 that varied from the expired preliminary plat. This increased development costs and caused connectivity problems with the HRA property. The current proposal uses the preliminarily graded street grid causing a reduction in the density of the project. It connects with existing development at Ford Street, Aspen Street extended and proposed Brookside Drive. The intended connection to Southbridge Drive to the west was eliminated as Southbridge will not be allowed to be connected to 246 by MNDOT. Extension of additional street connections in the project would eliminate too many lots to make the project viable.
The Northfield HRA has also been working on development concepts for their property. The Northfield Housing and Redevelopment Authority (HRA) was established to accomplish the following goals:
(1) to provide a sufficient supply of adequate, safe, and sanitary dwellings in order to protect the health, safety, morals, and welfare of the citizens of Northfield;
(2) to clear and redevelop blighted areas;
(3) to perform those duties according to comprehensive plans; and
(4) to remedy the shortage of housing for low and moderate income residents, and to redevelop blighted areas, in situations in which private enterprise would not act without government participation or subsidies.
The Housing and Redevelopment Authority (HRA) was originally created in 1969, but was re-constituted as an active Board by City Council by resolution on August 6, 1990. Since that time the HRA has worked to create more affordable housing in the City of Northfield.
Some of the projects that the HRA has developed or assisted in have included the Lincoln Wood single family and townhome developments, Northern Oaks rental townhomes, the redevelopment of the former Senior Center property on East 9th Street and Nevada, Presidential Commons townhomes & twin homes, Maple-Hills single family and twin homes, and the 28-unit Spring Creek Townhome Project.
The HRA plans to develop the 11.18 parcel in the Southbridge area. In the first phase of development, the HRA is partnering with Three Rivers Community Action Agency (Three Rivers) to construct an additional 30-34 workforce rental townhome units. The 2nd and possible 3rd phases would include the construction of mixed income single family and twin homes. Staff has worked with Three Rivers and the HRA on multiple potential concepts for the property. Attachment 5 shows the preferred concept chosen by the HRA. Attachment 6 shows the combined project layout.
Financial Impacts:
The private development project will cover its own costs which will be outlined in a standard Development Agreement. The financial analysis for the proposed expansion of Spring Creek Townhomes has not been completed, but Minnesota Housing Finance Agency (MHFA) Low Income Housing Tax Credits will be essential to financing the project. It is also anticipated that tax increment finance or abatement through the City of Northfield will be required. The HRA will also participate in the project by writing down the cost of land acquisition. It should be noted that development costs increase and affordability drops as more street connections are required.
Tentative Timelines:
If the preliminary concepts are accepted, both projects will move forward with platting in 2018. A preliminary plat will be required for both projects, with final plats for the initial phases.