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10-09-2018 Work Session HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 9, 2018 CALL TO ORDER Pursuant to due call and notice thereof a regular work session of the Hopkins City Council was held on Tuesday, October 9, 2018 at 6:31 p.m. in the Raspberry Room at City Hall, 1010 First Street South, Hopkins. Mayor Cummings called the meeting to order with Council Member Campbell, Gadd, Halverson and Kuznia attending. Staff present included City Manager Mornson, Director of Planning and Development Elverum, Assistant City Manager Lenz, City Planner Lindahl and Community Development Coordinator Youngquist. AFFORDABLE HOUSING UPDATE Community Development Coordinator Youngquist gave an overview of the staff report, discussing policies that focus on the protection, preservation, and production of affordable housing. Ms. Youngquist gave an overview of the Governor's Task Force on Housing Report including housing goals and recommended actions. Staff would continue to review ways to work toward the actions and goals for Hopkins. Ms. Youngquist commented that the City of Hopkins couldn't do it on its own; it requires partnerships to achieve the affordable housing vision. Ms. Youngquist discussed the three pillars of affordable housing: protection, production and preservation. Ms. Youngquist introduced the topic of the Fair Housing Policy to the Council. The Metropolitan Council requires communities that receive Livable Community Grants to have a Fair Housing Policy and this does impact Hopkins. Ms. Youngquist gave an overview of the Fair Housing Act and Fair Housing policy components. Staff would prepare a draft policy to present to the Council. Mayor Cummings asked about the timeframe. Staff plans to have a policy prepared by the end of 2018 commenting that a policy would need to be in place by 2019 to draw on a Livable Community Grant. Ms. Youngquist discussed the Tenant Protection Ordinance. St. Louis Park has adopted a Tenant Protection Ordinance and other west metro communities have either adopted or are discussing the ordinance. Ms. Youngquist discussed the 90-day transition period and obligations for new owners of NOAH (Naturally Occurring Affordable Housing) properties. Ms. Youngquist discussed the definition of NOAH properties and what is involved with relocation assistance. There was discussion regarding a relocation flat fee vs. 3-month rent relocation fee. There was Council preference for the 3-month rent relocation fee. The relocation assistance provides tenant protection and transition time during the sale of a property. Staff would bring an ordinance recommendation to the Council. Council asked about Attorney response to the ordinance. Ms. Elverum commented that the City Attorney has reviewed the ordinance and the City would not have a big exposure. There was Council discussion about the rent increase amounts and the 90-day transition period. Ms. Youngquist commented that any amount of rent increase would obligate the new owners for relocation assistance and that after 90 days rents could be increased. Ms. Elverum commented that the 90-day period gives tenants time to make other plans. Mayor Cummings asked if the State had plans to provide resources to the cities. Ms. Elverum commented that she is not sure if the State would be taking on any legislation to assist cities. Council Member Campbell asked if new HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 9, 2018 owners could be asked their intentions regarding rent increases. Staff discussed the criteria for relocation assistance, rental license registration and information packets to educate buyers. Ms. Elverum discussed the timeframe to implement the changes and the impact on staff resources. There was Council discussion about the accuracy of the percentage of affordable housing declared by property owners, protection for landlords and complaint based enforcement of the ordinance. Ms. Elverum commented that staff would follow-up with the City of St. Louis Park regarding their experiences with the ordinance. Mayor Cummings asked if all tenants are notified or only those who qualify. Ms. Youngquist explained that new owners must notify those in NOAH units. Council Member Kuznia commented that the ordinance provides stability for tenants and that it is an important ordinance since Hopkins has a high percentage of rentals. Council Member Campbell commented that building owners should review the ordinance to get all perspectives. There was discussion about the percentage of rental units in Hopkins. Staff commented that the percentage fluctuates with the market and that a market study considered 100% of the rental properties in the Blake corridor as NOAH. Staff would draft an ordinance, get feedback from rental property owners anc other interested parties then bring it back to Council for review. Mayor Cummings commented that time is of the essence but it is important to draft the ordinance correctly. Ms. Youngquist discussed an Inclusionary Housing Policy that could encourage or require the addition of affordable units in new market rate developments or where there is a substantial renovation/expansion of existing developments. The policy could expand the supply of affordable housing and promote economically diverse housing options. Ms. Youngquist discussed the considerations of a voluntary or mandatory policy. A voluntary policy typically works best in areas with low density so it may not work in Hopkins. Ms. Youngquist commented that a mandatory policy could be tied to discretionary land use approvals and public financial assistance. Ms. Youngquist discussed alternatives for developers that could include a dedication of existing units, off-site construction, a housing trust fund payment or waiving the requirement if the project meets other city goals. There was discussion of a trust fund payment fee and impacts to staff. Ms. Youngquist discussed other considerations such as project size, minimum percentage of affordable units, affordability period and that standards are consistent with market rate units. There was discussion of the economic impact and whether the developer could absorb the costs or if the City would need to provide a subsidy. Ms. Elverum commented that there could be the potential that projects not be built until the market could support the affordable housing costs. Mayor Cummings discussed the idea of a fund for owners to preserve the NOAH properties in Hopkins and how housing impacts the business community. There was discussion about the importance of preserving the existing housing stock and that the trust fund fee would need to be great enough to be put towards the goal of affordable housing. There was Council discussion about the concept of inclusionary housing and the importance of housing developments for all. Council commented that it is important to be able to think the policy through carefully and what are the impacts on the city and staff. There was discussion about the mandatory inclusionary policy, options and negotiations with developers, requiring affordable and market rate to be mixed, the concern about adding another fee and the need for a regional or state funding source. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 9, 2018 Staff commented that the affordable housing issue is being discussed across the metro area and country. Staff would continue to explore the policy and bring back recommendations to the Council. AUTO RELATED USES MORATORIUM DISCUSSION City Planner Jason Lindahl began by summarizing the auto related uses text amendment process. In early 2017, staff began a process to review the City's zoning regulation for auto related uses (auto repair and auto sales). That process included a review of the comprehensive plan, zoning regulations, inspections of various sites throughout the community and a mapping analysis of all auto repair and auto sales uses. This information along with recommended zoning changes were presented to the Planning & Zoning Commission during the February and March meetings where they recommended the City Council approve certain zoning changes. Staff reviewed this information with the City Council during the February and March work sessions and brought the final recommended changes to the City Council in April. Ultimately, the City Council decided to table this item and approve a one year moratorium on auto related uses to allow time for more study. To help reaffirm the foundation for this process, staff led the City Council through a discussion of the following five questions. 1.) How do auto related uses align with the City's long term land use and economic development goals? 2.) What is the appropriate number and location of auto related uses in Hopkins? 3.) What are the appropriate types and service areas for auto related uses in Hopkins? 4.) What are the appropriate standards and enforcement policy for auto related uses? 5.) What should be the role of auto related uses in Hopkins' economy? Overall the City Council felt Hopkins had its fair share of auto related uses but the local economy should include a diverse mix of uses that includes auto repair and auto sales services. The standards for auto related use should be modernized to more closely align with the City's long range planning documents while still recognizing the role existing business fill in Hopkins. These standards should be clear, consistent and enforced. The Council directed staff to revise the proposed zoning changes based on this feedback and bring this item back for further review and discussion. The Council also stressed that staff should engage interested businesses and stakeholders in both the revision and implementation of these standards. INCLUSIVITY OPPORTUNITIES ON BOARDS & COMMISSIONS Mayor Cummings gave an overview of her project with NLC and recommendations. The goal would be to have participation on Hopkins boards and commissions that reflect the diversity of the community. Mayor Cummings discussed the following topics: • General promotion regarding what it means to serve on a board or commission. The process would begin early in the recruitment timeline. • Host an open house or informational meeting at varied times of the day and week. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 9, 2018 • Offer a stipend to the appointed members. The budget impact would be approximately $7200.00. • Establish a mentor relationship with new board and commission members with a small reimbursement fund of $250-$500. • Orientation for the new board and commission members. Mayor Cummings commented that the goals should be designed to be measurable. The public would be informed about the goals and the City's efforts to attain the goals. Mayor Cummings discussed publicizing efforts and the importance of connecting with already established resources. Mayor Cummings discussed Hopkins Race & Equity Initiative (HREI) training and the need for training for the Council. There was Council discussion about what boards and commissions would be included and that many cities already offer incentives for their boards and commissions. Mayor Cummings commented that the goal is to weave the community together and draw in those who are willing to make the step towards involvement in the City. There was Council discussion about barriers to participation, standards for the meetings, stipend, connecting with and building up leaders, intentionally speaking to various communities and other promotional outlets. Council discussed the importance of hearing from those that reflect the entire makeup of the City. Council would consider the suggestions to focus on diversifying the boards and commissions. UPDATES • Council Member Kuznia was contacted by Hopkins Area Little League about Council involvement in an opening ceremony. There was discussion about Maetzold Field improvements. • Mayor Cummings discussed the My Health Fundraiser. • Driskill's Downtown Market was featured in a Channel 11 news story regarding business that employ the disabled. City Manager Mornson gave the following updates: • Staff met with one of the property owners involved in the duplex dispute. • Captain Husevold was recognized at the International Association of Police annual conference as a 40 Under Forty award winner. • There have been road construction delays due to the weather. • Discussion of an upcoming meeting regarding the Cold Storage site. • Director of Planning and Development Elverum will be discussing the Artery at a Rail Conference. HOPKINS CITY COUNCIL WORK SESSION PROCEEDINGS OCTOBER 9, 2018 ADJOURNMENT There being no further business to come before the City Council and upon a motion by Campbell, second by Kuznia, the meeting was unanimously adjourned at 10:06 p.m. Respectfully Submitted, Debbie Vold ATTEST: // I'l - i,i.L Li-i( �M' CA =C. Molly ummings, Mayor Amy Domeier, City Clerk