HomeMy WebLinkAbout2004 [02] Feb 02February 2, 2004
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Pursuant to due call and notice thereof, the Planning Commission for the City of St. Joseph met in regular
session on Monday, February 2, 2004 at 7:00 PM in the St. Joseph City Hall.
Members Present: Chair (Council Liaison) Gary Utsch. Commissioners S. Kathleen Kalinowski, Kurt
Schneider, Bob Loso, Jim Graeve. Administrator Judy Weyrens.
Others Present: Jamie Thelen, Richard Hennings, Jim Sand
Approve Aaenda: Graeve made a motion to approve the agenda as presented; seconded by
Kalinowski and passed unanimously by those present.
Sand Companies. Morningside Acres Concept Plan• Jim Sand spoke on behalf of Sand Companies.
Sand stated that he has recently entered into a purchase agreement to purchase and develop the area
known as Morningside Acres. Sand provided the following background information on the services Sand
Companies provide:
• Construction Services to include general contracting, construction management, on-site
supervision and guaranteed pricing.
• Development Services to include site selection, market analysis, design concept, satisfaction of
budget goals, secure government approvals, cultivation of project capital and financing
arrangements.
• Property Management Services to include full service management, hotels, townhouses,
apartments, marketing, competitive analysis, accounting and network purchasing of furniture,
fixtures and equipment.
• In 1999 Sand Companies had development assets of 56 Million, which has risen to 160 Million in
2003.
• Examples of Townhome development include: 322 Luxury/Upscale townhomes in Plymouth; 150
upscale townhomes in St. Cloud (Heritage Park); 10 unit work force townhomes in Albany
(Countryside).
Sand stated that if the townhomes are approved, Sand Companies will be seeking financing from the
Minnesota Housing Financing Agency (MFHA). The townhomes will be considered work force housing
with income restrictions. The units would be available to families whose income is 60% or less of the
area median income. Sand stated that the financing through MFHA is competitive and is not awarded
until September or October. Therefore, the townhouse portion of the project would not begin until Spring
of 2005. Sand further stated that if successful in receiving assistance, the project must be held by the
awarded agency. Therefore, Sand Companies is looking to become a partner in the development and will
not be selling the development after it is constructed. MFHA Financing requires a 15 year commitment
and offers incentives after 15 years to help the project maintain the goals for which financing was
received.
If the project is allowed to move forward, Sand Companies will conduct neighborhood meetings to inform
the neighborhood of what they can expect from the development. Utsch recommended that the
neighborhood meeting be conducted before the City conducts the public hearing.
Sand stated that work force housing will provide affordable housing in St. Joseph. All the townhomes will
be fully furnished with appliances and the exterior will be as maintenance free as possible. The median
income for this area is $ 58,200. Based on that median, income qualifying families must earn less than $
34,920 per year. When questioned on the proposed rent for the homes, Sand stated that a two bedroom
is anticipated to be $ 655 per month and three bedroom $ 756 per month, inclusive of utilities.
In addition to the townhomes, the proposed development includes 27 single family dwelling units. The
homes will be market rate and all the lots will meet or exceed the minimum design standards. If the
development is approved, the single family homes could be constructed in 2004. Sand stated that they
will sell the lots to residential home builders as Sand Companies does not build single family homes.
Sand requested the City consider extending the decorative lights to the entrance of the proposed
February 2, 2004
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development. If the lights are extended then Sand companies will continue the lighting in the
development.
The Planning Commission questioned Sand as to how he proposed to satisfy the park dedication
requirement. Sand stated that he has not completed the detail for the plan but he understands that he will
be required to meet the park dedication requirement and connect the development to the trail system via
sidewalks. Loso questioned if the proposed plan has been reviewed by the Stearns County Engineer.
Weyrens stated that since the plan before the Commission is concept only, it has not been forwarded to
the County or APO. If the concept is approved, the developer must provide detailed plans which will then
be forwarded for comment and review.
Weyrens stated that if the concept plan is acceptable to the Planning Commission, a public hearing to
amend the Comprehensive Plan must be conducted. The Comprehensive Plan illustrates the area known
as Morningside Acres as Single Family while the development of Townhomes would constitute multiple
family. The same process is needed for the proposed plat of the Walz Farm. The Commission agreed to
conduct a public hearing for the proposed amendment to the Comprehensive Plan. Since both of the
proposed developments are in the same planning district, one hearing will be held for both proposals.
The Commission was in general agreement that the proposed development of Morningside Acres is an
acceptable plan and encouraged Sand Companies to proceed to the Platting process.
The Commission discussed the proposed development in relation to the agreement to provide affordable
housing. Utsch stated that since the townhomes are targeted for affordable housing, none of the single
family lots would be required to be affordable in terms of the agreement signed with the area Cities.
Graeve questioned at what time does the City start requiring developers to designate 15% of their
development as affordable and require participation in the Life Cycle Housing Agreement. Utsch stated
that the City is providing affordable housing, but they are not receiving credit for such since the financing
mechanism is not being utilized.
Weyrens clarified that if the valuation for new homes built in 2003 were reviewed, it can be noticed that a
large number of homes were valued at or near the target house valuation for the Affordable Housing
Agreement. However, Cities do not receive credit for participating in the Affordable Housing Agreement
unless the property owner utilizes the financing established in the Affordable Housing Agreement. During
2003 the financing mechanism was not in place when the plats were approved, therefore, they did not
qualify. St. Joseph had one unit that applied for the financing and the Developers Agreement had to be
amended to allow for such. Therefore, based on building permit data, the City did provide ffordable
housing, but not through the established program.
Adiourn: Loso made a motion to adjourn at 8:05 PM; seconded by Kalinowski and passed
unanimously by those present.
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Ad inistrator