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HomeMy WebLinkAbout04/13/70CITY OF HASTINGS Office of ENGINEER MINUTES OF HASTINGS PLANNING COMMISSION MEETING HELD MONDAY, APRIL 13, 1970 AT 7:30 P.M. Those present: Walt Petersen, Don Pluegel, Don Hallberg, Leonard Bauer, and Mr. Moen, and Arland Siebrecht. Also present: Mr. Willis Olson, Mr. and Mrs. Leo Schumacher, Mrs. Darlene Hallberg, representing the Mississippi Valley Star, Mr. Charles Bartelma, Mr. James Baird, Mr. Hy Kilborn, Mr. Bill Pechacek, Mr. Frank Sieckert, Mr. Dick Collins and Mr. Jack Christenson, and City Engineer John Davidson The first action was approval of the minutes of the Planning Commission Meeting of March 23, 1970. The first item of business was a presentation by Mr. Enwald regarding FHA Rent Supplement Program Housing for the Elderly. Mr. Enwald represented Investors Real Estate Fund. (See copy of handout attached. ) Mr. Enwald stated that the 235 Program provides for ownership rather than rental of these units. Under his proposed program the development company would either own and manage the total facility or develop the total facility and turn it over to local control and management, or they will arrange for local contractor construction. These buildings are designed from a set of canned plans. It is conservative size-wise in construction. There is about a 6% return of investment on these properties and they now have developed properties in Rochester and Stillwater. These facilities in Minnesota as yet though have not been constructed, however they do have facilities in operation in New Richmond and the Eau Claire and West Central Wisconsin area. Under the Program there is a 10% profit and development cost allowed which takes into account design engineering and construction fees. They can also arrange for group investment programs in these facilities. He would estimate that the City of Hastings could use 60 to 100 units and they would recommend the rent supplement program rather than the public housing program. The next item on the agenda was review of the letters of intent for filling the vacancy on the Planning Commission by Mr. Kilborn, Mr. Sieclmrt, Mr. Solac and Mr. Olson. It was suggested that they defer any interviews until after the regular business meeting. The next item was a petition for rezoning which was 95. 5% adequate of Mr. Leo Schumacher's to rezone from R-1 to R-3 the area for multiple dwelling units in the Imperial Estates area. It was moved by Mr. Hallberg, seconded by Mr. Siebrecht that the R-3 zoning be recommended to the City Council for lxiinutes o£ ttastings ?lanning Commission Iwieet{ng Monday, April 13, 1970 at ?:30 P.M. approval, subject to acceptance of final platting. The next item on the agenda was a presentation for Hastings Construction Co. by Mr. Ralph Wagner of Apache Engineering and also in part of the presentation, Mr. Don Gustafson took part. They are proposing a 486 unit multiple dwelling area, consisting of 42 unit buildings on the property which has partially been rezoned R-3 by Norbert Conzemius and a part of Bauer's grid Addition which was left open for rezoning for multiple dwelling use. The area is approximately 26.Z7 acres in size and would be fronting on a collector street, Westview Drive on the east, a thoroughfare, Pleasant Drive on the west and the South Frontage Road of T.H. 55 on the north. 13th Street would make up part of the south boundary. They are requesting R-4 zoning for this area for a density of approx- imately 18 units per acre. Mr. Wagner also had a handout attached showing the benefit of apartments versus single family development, a land use summary which would indicate the density of 18 apartment units per acre, the parking facility would allow for Z. 1 spaces per nnit. This would meet the 1.5 as proposed in the Zoning Ordinance. The units would be all three-story, above grade, and would be made up of three categories; A, B, & C units. The A being about 938 square feet, the C unit being 1008 square feet and the B unit made up of an adaptation of the A & C units. There would also be a laundry on each floor of the building. There would be no incineration for solid waste, all would be refuse collection. The rental range would be from SZ00 per month and the program would be a four to five year development program, proposed to be completed in five years. It is set up so a module of complexes could be constructed at one time, usually consisting of three apartment buildings. There second proposal was a shopping center of 200, 000 square feet in area in the area of the Valley Manor Addition and also a parking area for 1300 car parking facility. It would be a mall-type development with all stores facing the center mall and corridor complexes, with no store fronting onto the parking areas. The next item on the agenda was a request from Mr. Bill Pechacek as to area sizing for lots in Mobile Home Parks. He was informed that the last correction with off site parking provided would allow 3600 square foot area lots in accordance with Section 7. g. Z4 of the proposed Zoning Ordinance. Mr. Pechacek was also informed that he could not develop the Mobile Home Park piecemeal, but would have to develop it as a total concept plan. There was a review of the Vermillion River Flood Plain Project by the Corps of Engineers. The plan and estimated costs were reviewed. It was moved by Mr. Finegel, seconded by Mr. Bauer to recommend to the City Council that a formal hearing be provided by the Corps of Engineers. (This will have to be on the agenda for the Council Meeting of April Z0, 1970. ) The next item of discussion was the Kingdom Hall to be constructed at 5th and Ash on the northeast corner. This had been turned over to a committee of Mr. Siebrechf, Mr. Bauer and Mr. Moen for study. The lot is 100' x 150' and according to our proposed zoning ordinance, offstreet parking will have to Minutes of Hastings Planning Commission Meeting held Monday, April 13, 1970 at 7:30 P.M. Page be provided, one parking space for each 3-1/2 seats in accordance with Section 8. Z. 6 and Section 8.4. 10 of the proposed Zoning Ordinance. The proposed building is 66 feet x 32 feet. The committee would like to be furnished a site plan prior to any action or recommendations to the City Council for construction. Another item briefly mentioned was the fact that the Hastings Co-op Creamery wanted to surface with bituminous the area between the sidewalk and the curb in front of the creamery. It was explained that this area was not grassed, that it was unsightly and in a muddy condition every Spring because of the amount of chloride used by the State on T. H. 61. The approval was granted subject to the creamery placing either parking blocks or a barricade between the creamery property and the curb so the sidewalk area would be open to pedestrian traffic. The next item discussed was the interviews of candidates for Planning Commission membership. Mr. Kilbo rn: He is employed by the St. Paul Insurance Companies He has beena resident of Hastings for one year, but he grew up in the East. He has a wife and two children. He is 36 years of age He lives at 620 Prairie Street Mr. Siecke rt He deals in the manufacture of building materials. He moved to Hastings in 196Z from the Michigan Area. He lives at ZZZ0 Pine Street. He has a wife and four children He is 34 years of age. He ran for City Council in 1968 and was defeated. He is working with builders such as Pemtom, Adolphson & Peterson and such developers in the Metropolitan area. Mr. Solac He moved to Hastings in 1954. He has been dealing in technical agricultural and veterinarian medicine. He was a district veterinarian for the State of Minnesota and is now with the University of Minnesota, Agricultural School. He deals through County Agents in contact work. He is not in the building trades, but he does take part in space allocations for the University of Minnesota Building Program. Mr. Willis Olson He has a Bachelors Degree in Chemistry. He works for 3M Company. He is supervisor of nine purchasing agents and buyers in the Research Division. He is a 19 year resident of Hastings. Prior to that he grew up in Hastings. His father was a builder and he is familiar with the building Minutes of Hastings Planning Commission Meeting held Monday, April 13, 1970 at 7:30 P.M. Page 4. Mr. Willis Olson (Cont.) trades. He has a strong desire to be active in City Government and prefers the Planning Commission. Mr. Walt Petersen explained that the Planning Commission has been meeting the second and fourth Mondays each month and went through the criteria for choosing a commission member. A motion was made to adjourn, the next meeting set for Monday, May 11, 1970 at 7:30 P.M. at the Hastings Public Library. It was suggested for that meeting each Planning Commission member come with their choice of a member to the Planning Commission and also two recommendations for placement on the Recreation Committee of the Planning Commission. Each Planning Conamission member was furnished a map to work on for proposed zoning. I also have on file the Vermillion River Project drawings, the Valley Manor proposed shopping center development and a set of plans in regard to the multiple dwelling units proposed by Hastings Construction Co. The meeting adjourned at approximately 10:30 P. M. John Davidson, City Engineer INVt:§TOR§ Ri;AL I:§TATI:: 'UND, INC. 715 So. Barstow Street Eau Claire, Wisconsin 54701 Telephone (715) 834-2691 PROPOSED "RENT SUPPLEMENT PLAN" FOR HOUSING FOR THE ELDERLY Q. What is "Investors Real Estate Fund"? A. It is an association engaged in providing housing for Iow income elderly persons under the "free enterprise" system; whose members have experience and expertise in dealing with the agencies which administer federal housing programs. Q. What is the "Rent Supplement" program? A. It~is a program administered by the Federal Housing Administration to provide housing for Iow income elderly citizens. Q. By whom is the program developed? A. The facilities are developed by local area developers. Q. By whom are the facilities constructed? A. Local and/or outside labor. Q. Who controls the amount of rent to be paid by the occupants? A. The Federal Housing Administration. Q. What capital investment is required of the community? A. None Q. What action is required of the community? A. The adoption of an ordinance to approve participation in the program. Q. Does the community or federal government lose control upon adoption of the resolution? A. No. The site location, the established economic rent, the cost of the structure~ the rules governing occupancy, the allowable return on investment are established by the Federal Housing Administration. Q. Are the facilities taxable by the communities? A. Yes - at full real estate property tax rates. Q. Who are eligible to occupy the Rent Supplement housing? A. Persons over 62 years of age, the physically handicapped, persons displaced by government action, persons presently living in substandard housing. Q. How is the rent amount determined? A. The economic rent for a given locality is established by the Federal Housing Administration. The tenant pays rent according to his or her ability to pay (the amobnt must be at least 30% of the established economic rent or 25% of the tenant's income). Q. How is the site for the housing development determined? A. It is selected by the local developer and approved by the Federal Housing Administration. Q. Who owns the facilities? A. The facilities may be locally owned, if desireble. Q. What services are provided under the Rent Supplement Program? A. Lights, heat, hot water, snow removal, lawn care and building maintenance. For Credit Information about INVESTORS REAL ESTATE FUND, INC., please contact: FIRST WISCONSIN NATIONAL BANK 131 So. Barstow Street Eau Claire, Wisconsin 54701 Telephone (715) 835-3111 SPECIAL FEATURES COMPARISON PUBLIC HOUSING PROGRAM -- RENT SUPPLEMENT PROGRAM Administered by: Developed under: Controlled by: Funded by: PUBLIC HOUSING Public Housin.q Authority Local Housinq Authority Local Housinq Authority RENT SUPPLEMENT Federal Housina Administration Private enterprise Private enterprise Federal Government Private enterprise & Federal Government Mortgage insured: Federal Government Funds Federal Housinq Administration Constructed(or rehabilitated)) Building standards: Occupied by: REnt control: % Tenant's rent: "Turnkey" or subcontracted locally Government specs Low income elderly Same Local Housing Authority (Fed.) 25% of income Same Local and outside Local, State and F. H. A. Federal Housinq Administration Govt. supplement or subsidy? Yes Yes Taxation: Location: ', ;iai features; Certain funds in lieu of taxes (experience shows this to be substan- tially less than local real estate taxes) Close to business, transportation, churches, etc. Owner taxed at municipal tax rates Close to business, transportation, churches, etC. Requires no investment of capital by municipality Requires no investment of capital by municipality Increases tax base REQUIRES: Tight control by FHA results in good quality construction at less cost REQUIRES: Establishment of Local Housing Authority Adoption of resolution by Governing Body Housing Code INVESTORS REAL ESTATE FUND, INC. GENERAL INFORMATION INCOME: The law provides that a tenant must meet certain eligibility requirements before he can receive rent sup- plements. His income must not be more than $3,000 for one person, or $4,000 for two persons. He must also qualify under one of the following categories: {1) Be displaced by government action, such as urban renewal, code enforcement, highway development, etc., (2) Be 62 years of age or older (husband or wife); {3) Be physically handicapped; (4) Be living in substandard housing; (5) His present or former dwelling must have been destroyed or extensively damaged by natural disaster in an area determined by the Small Business Administration since April 1, 1965, to be a disaster area. ASSETS: Total assets cannot exceed $2,000 unless the applicant is 62 years of age or older, in which case assets may not exceed $5,000. The asset limitation is higher for elderly than for other tenants because elderly persons must often rely on savings to supplement social security or other retirement benefits to pay current living expenses. Cash, checking and savings bank accounts, U. S. Savings Bonds, and other bonds and stocks are con- sidered assets. Real estate and automobiles, less indebtedness, are also considered assets. In addition, assets include the ~cash surrender value of life insurance. Unpaid bills for food and medical expenses may be deducted. Furniture, clothing and other such personal property will not be counted as assets for the purpose 6f determining eligibility. NUMBER OF OCCUPANTS: Since the apartments are one bedroom units, the maximum number of persons allowed to occupy each apartment will be limited to two (2). (FHA requirement). LEASE: Basic landlord-tenant relationship will apply in this project, and tenants may be evicted for violation of lease provisions in keeping with local or state law. Each applicant must be willing to sign a one year lease, which cannot be assigned. The housing owners will comply with the provisions of any local or state laws and with FHA regulations prohibiting discrimination in occupancy on the basis of race, color, creed or national origin of applicants. FURNISHINGS: The owners will furnish a stove and refrigerator for each apartment. All other furnishings must be pro- vided by tenants. (carpets and draperies are provided in some instances). RENT SUPPLEMENT AMOUNT: The amount of each rent supplement will be based on the difference between 25 per cent of the income of the eligible family or individual and the FHA approved rental for the living unit occupied. In no case may the rent supplement exceed 70 per cent of the FHA approved rent for the living unit. The economic rent is calculated by FHA for the area concerned. This amount includes heat, lights, snow removal, lawn mowing, garbage service, hot and cold water, decorating and maintenance. EXAMPLES: FHA Allowable INCOME TOTAL RENT PAID BY TENANT PAID BY FHA $1,800 $ 131.25 $ 40.00 $91.25 2,400 131.25 50.00 81.25 3,000 131.25 63.00 68.25 4,000 131.25 83.00 48.25 The above figures are examples only. Final determination of the supplement in each case will be made by FHA. INVESTORS REAL ESTATE FUND, INC. REQUIRED RESOLUTION WHEREAS, under the provisions of Section 101 of the Housing and Urban Development Act of 1965, the Secretary of Housing and Urban Development is authorized to enter into contracts to make rent supplement payments to cer- tain qualified housing owners on behalf of qualified Iow-income families who are elderly, handicapped, displaced, victims of natural disaster, or occupants of substandard housing. WHEREAS, the provisions of said Section 101 cannot be made available to housing owners in certain localities unless the governing body of the local- ity has by resolution given approval for such participation in the Federal Rent Supplement Program. NOW THEREFORE: be it resolved by the Common Council of the City of ., as follows: Approval is hereby granted for participation in the Federal Rent Supple- ment Program by qualified housing owners of property located in the City of APART],~3NTS vs. SINGLE FAMILY Comparison of Tax Revenue a~ School E×pense expected fr~n one acre of developeab!e l~d in the City of Hastings, Minn. AA.SiC STATISTICS of School Age Children: Apartment Unit: '['he Villages of iloseville, Brookl}/n Park and Bun~sville all report an average ~f 0.2 school age children per apartment unit. ~./ NO. ~f School Age Children: Single F~md_ly Dwelling: '[}~e Village of Burnsvi]]c reports ~l average of ].6 school age children per single f~ily dwelling. The other villages noted above had no statistics readily available on this, but asmm~aed about the smae figures. No, ~f Apartments Per Acre: City of Uastings 18.5 Units per Acre (based on i{-4 Zoning) No. of Single Family Lots ier Acre: City of Hastings 3.0 Lots per Acre Total Real Estate 'Pax Revenue: City of Hastings Per Apartment Unit: $500.00 per year Per Single F~mily Dwelling: $55&.OC per year. Division of Real Estate Tax kevenue: School District: City County 65] of Total Reve~me 23~' of Total Revenue !2~[ of Total ~evenue Cost to Educate One Child: City of Hastings Cost per year: $6P0.O0 ($20,000.00 evaluation) APARTMENTS vs? SINGLE~ FAMILY City of Hastings C~mparison of Annual Hevenue for one acre of raw land. Apartments (18.5 units per acre) Single Family (3.0 lots per acre) Total Revenue per acre Revenue to School District per acre (6~ of total) Revenue to City per acre (2~ of total) Revenue to County per acre (12% of totalI $9,250.00 $6,012.00 $2,128.00 $1,110.O0 $1,662.00 $1,O80.OO $ 382.00 Co~parison of Tax Advantage or Disadvantage to School District for one acre of raw land. APARTMENTS vs.S~NGLE FAMII,Y City of Hastings Revenue to School District (from above table) Expense to School District Net Advantage or Disadvantage Single Family (1.6 child per unit~ $1,080.OO 3.26~.00 Apartments (0.2 child per unit) $6,O12.00 2,~16.00 +$3,~96.00 LAND USE SUMMARY Required Land Area: Actual Land Area: Req'd Per Unit Les~ for gara6e credit Net Rsq'd Area per Unit 2500 sq. ft. - 2350 sq. ft. Total Req'd Area 2350 x &86 = 1,L42,1OO sq. ft. = 1,144,441 " " Total Parking: R~quired Parking Open = 53& Cars Garages = 488 Total 1,022 Cars = 2.10 Spaces per Unit = 1.50 Spaces per Unit 18 Plex 551 E. 18th Street Hastings, Minnesota 18 Apartment Units - No school age children 36 Plex 1021 Lyn Way 36 Apartment Units - (30 unite a~eady rented) Hastings, Minnesota 5 school age children