BY THE CITY COUNCIL. WE HAVE SEVEN HERE THIS EVENING FOR MOST ITEMS THE PLANNING COMMISSION MAKES RECOMMENDATIONS TO THE CITY COUNCIL. THERE ARE SOME ITEMS IN WHICH THE PLANNING COMMISSION DOES HAVE FINAL DECISION MAKING AUTHORITY TONIGHT OUR ITEMS ARE ALL STUDY ITEMS WHICH DON'T INCLUDE A PUBLIC HEARING . >> FIRST ORDER OF BUSINESS THIS EVENING IS THE PLEDGE OF ALLEGIANCE. PLEASE STAND IF YOU'RE ABLE PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL . ALL RIGHT. AS I MENTIONED EARLIER, WE HAVE THREE ITEMS THIS EVENING. THEY ARE ALL STUDY ITEMS. WE'LL START WITH ITEM ONE WHICH IS THE ANNUAL HOUSING REPORT AND HOA STUDY AND WE HAVE PLANNER NAVARRO AND HOUSING DEVELOPMENT SPECIALIST NIEMEYER FOR THE STAFF REPORT. WELCOME. GOOD EVENING CHAIR AND COMMISSIONERS MY NAME IS NATALIE NAVARRO. >> I'M ONE OF THE PLANNERS AND WE WILL PRESENTING THE ANNUAL HOUSING REPORT WITH KENNY NIEMEYER. SO 2024 IN REVIEW FOR THE ALL THIS HOUSING REPORT WE WILL REVIEW BLOOMINGTON'S DEMOGRAPHIC EXISTING HOUSING AFFORDABILITY AND ACCOMPLISHMENTS OF 2024. IT IS IMPORTANT TO REVIEW THESE TRENDS BECAUSE HE GUIDES CITY SERVICES POLICIES AND PROGRAM DEVELOPMENT TO ENSURE THE BLOOMINGTON REMAINS A THRIVING AND INCLUSIVE COMMUNITY. SO FOR BLOOMINGTON DEMOGRAPHICS BLOOMINGTON HAS A TOTAL POPULATION OF 91,537 PEOPLE WITH AN AVERAGE HOUSEHOLD SIZE OF 2.27 PERSONS AND 39,634 HOUSEHOLDS. IT IS THE MINNESOTA'S FOURTH LARGEST CITY AND THE POPULATION CONTINUES TO GROW. WE ARE ANTICIPATING THAT WE WILL HAVE OVER 95,800 RESIDENTS BY 2040 AND THE MEDIAN AGE IN BLOOMINGTON IS 40.8 YEARS WHICH IS HIGHER THAN BOTH THE MEAN MINNEAPOLIS SAMPLE AND BLOOMINGTON METRO AREA AND THE MINNESOTA STATE AVERAGE HAS WELL JUST SO THAT'S A FUN FACT BUT THE MEDIAN AGE IN 1970 WAS 23 YEARS OLD. THESE DATA SUGGEST THAT BLOOMINGTON HAS AN AGING POPULATION AND UNDERSTANDING THAT POPULATION GROWTH HELP US ANTICIPATE HOUSING NEEDS, EDUCATION WORK FULL FORCE AND YES SERVICES NEEDS WITHIN THE CITY. >> BLOOMINGTON CONTINUES TO BECOME MORE RACIALLY AND ETHNICALLY DIVERSE BLACK, INDIGENOUS AND PEOPLE OF COLOR OR BIPOC REPRESENT 33% OF THE POPULATION. THIS INCREASE IN RACIAL AND ETHNIC DIVERSITY IN BLOOMINGTON BRINGS SEVERAL FACTORS SUCH AS CULTURAL ENRICHMENT AND ECONOMIC GROWTH ,IMPROVED PUBLIC SERVICES AND A STRONGER COMMUNITY CONNECTIONS. SO FOR EMPLOYMENT RESIDENTS WORK IN DIFFERENT INDUSTRIES BUT JUST SIX INDUSTRIES EMPLOY OVER SERVING 75% OF BLOOMINGTON EMPLOYEES THE TOP SIX INDUSTRIES FOR EMPLOYMENT AS REPORTED BY THE US CENSUS ARE ONE EDUCATIONAL SERVICES HEALTH CARE AND SOCIAL ASSISTANCE. TWO PROFESSIONAL SCIENTIFIC AND MANAGEMENT AND WASTE MANAGEMENT. THE THIRD IS ARTS, ENTERTAINMENT AND RECREATION AND ACCOMMODATION AND FOOD SERVICES. THIS IS INCLUDED THE HOTELS, HOTEL SERVICES, THE FOURTH IS MANUFACTURING THE FIFTH TRANSPORTS ZATION WAREHOUSING AND UTILITIES AND THE SIX IS RETAIL TRADE. >> SO BLOOMINGTON'S UNEMPLOYMENT RATE HAS IMPROVED GREATLY SINCE 2020 DURING THE PANDEMIC THE UNEMPLOYMENT RATE WAS 7.6% AT THAT TIME WAS HIGHER THAN THE COUNTY AND THE REGIONAL RATES AND THAT WAS MAINLY DUE TO JOB LOSSES IN THE RETAIL AND HOTEL OR ACCOMMODATION AND FOOD SERVICES SECTOR. HOWEVER, THE CITIES JOB MARKET HAS RECOVERED WELL AND WITH UNEMPLOYMENT DROPPING TO 3.0% IN 2020 FOR SO FOR THE INCOME IS STARTING IN 2010 BLOOMINGTON'S MEDIAN INCOME WAS OVER $59,000 WHICH WAS LOWER THEM BOTH HENNEPIN COUNTY AND THE METRO AREA. FAST FORWARD TO 2020 WE SEE A SIGNIFICANT GROWTH ACROSS THE BOARD. BLOOMINGTON ROSE TO 78,224 WHILE HENNEPIN COUNTY AND THE METRO AREA HIT A LITTLE BIT OVER $88,000 IN 2020, BLOOMINGTON CONTINUED TO IMPROVE WITH A MEDIAN INCOME OF 80,582 BUT IS STILL BEHIND HENNEPIN COUNTY AND THE METRO AREA BY 2023 BLOOMINGTON'S MEDIAN INCOME HAS REACH $90,677 BUT IT'S IMPORTANT TO NOTE THAT ETUS STILL REMAIN LOWER THAN BOTH THE HENNEPIN COUNTY AND THE METRO AREA ON THE LEFT SIDE OF THE SCREEN WE SEE A BREAKDOWN BAKER BREAKDOWN OF HOUSING IN BLOOMINGTON 63 OF HOMES, 63% OF HOMES ARE OWNER OCCUPIED WHITE, 32% ARE RENTAL OCCUPIED AND 4% ARE BACON. THE MEDIAN HOME VALUE IS 346,000 AND $200 WHICH IS AS LIKELY AS LATELY HIRED THEM BOTH A METRO AREA WITH 354,400 AND THE STATE AVERAGE WITH 3 OR 5500 ON THE RIGHT SIDE OF THE SCREEN AND I MIGHT BE SAYING IT THE OPPOSITE NOW YEAH THE RIGHT SIDE OF THE SCREEN WE HAVE A RECENT HOUSING TRANSACTIONS DATA AND MOST CELL WHERE FAMILY CITIES SINGLE FAMILY HOMES WITH AN AREA IN PRICE WITH A MEAN MEDIAN PRICE OF EIGHT 308 380 7000 AND $500 WE SEE TOWNHOMES AND CONDOS FOLLOWED BY SINGLE FAMILY HOMES WITH LOWER MEDIAN PRICES AND THE TWO FAMILY HOMES HAD THE HIGHEST MEDIAN PRICE AND THEY MADE UP JUST A SMALL PERCENTAGE OF SALES OVERALL. THESE GIVE US A SNAPSHOT OF A LARGE OWNER OCCUPIED CITY WITH A STEADY HOUSING VALUES AND IT SUGGESTS THAT WE NEED TO CONTINUE ADDRESSING HOUSING DEMAND CHALLENGE IS FOR RENTING BLOOMINGTON'S MEDIAN GIRLS RENT IS $1,526 WHICH IS HIGHER THAN BOTH THE METRO AND MINNESOTA STATE. OVER TIME THEIR RENT HAS INCREASED IN BLOOMINGTON STARTING FROM JUST OVER 1300 IN 1990 CENSUS TO WHERE WE'RE NOW I'M LOOKING AT THE LOWER CHART RENT INCREASES WITH THE NUMBER OF BEDROOMS AND BLOOMINGTON CONSISTENTLY SHOWING HIGHER RENTAL RATES ACROSS ALL UNITS SITES FROM STUDIOS FROM PREMISE STUDIOS TO FIVE PLUS BEDROOMS HOMES COMPARED TO BOTH THE METRO AND THE STATE AVERAGE. THIS TREND SUGGESTS THAT BLOOMINGTON HAS A HIGHER DEMAND FOR RENTAL HOUSING POSSIBLY DUE TO LOCATION AGE OR THE LOCAL MARKET. SO FOR HOUSING DISPARITIES THE DATA SUGGESTS OR SHOWS CLEARLY DIFFERENCE IN WHO RENTS AND WHO OWNS A HOME IN BLOOMINGTON BASED ON RACE AND ETHNICITY WHILE WHITE HOUSEHOLDS ARE MORE LIKELY TO OWN THEIR HOMES. BUT FOR NONWHITE HOUSEHOLDS RENTING IS MUCH MORE COMMON. THE BIGGEST GAP IS WITH THE BLACK IS WITH BLACK AND AFRICAN-AMERICAN HOUSEHOLDS WHICH MORE THAN 74% ARE RENTERS. THIS IS A BIG DIFFERENCE COMPARED TO WHITE HAS HOUSEHOLD OTHER GROUPS THAT HISPANIC, ASIAN AND MULTIRACIAL RESIDENTS ALSO HAVE HIGHER RENTAL RATES AND THIS DIFFERENCE REFLECT THE ONGOING IMPACTS OF HISTORIC INEQUITIES SUCH AS DISCRIMINATORY LENDING PRACTICES OR LAND REDLINING AND ECONOMIC INEQUALITY. >> IT SHOWS THAT WE STILL HAVE WORK TO DO TO MAKE HOUSING FAIR AND ACCESSIBLE FOR EVERYONE IN THE COMMUNITY. >> SO ON THE RIGHT SIDE OF THE SCREEN THE PIE CHART IS SHOWING THE HOUSING DISTRIBUTION BY UNIT TYPE IN BLOOMINGTON THE LARGEST PORTION WITH 51% IS SINGLE FAMILY HOMES AND MULTIFAMILY WITH 32.9%. JUST AS A NOTE, MULTIFAMILY IS CONSIDERED GREATER THAN THREE UNITS. BLOOMINGTON HAS A TOTAL OF 42,000 705 TAX TAXABLE UNITS HOUSING UNITS AND THE CITY'S HOUSING STOCK SPANS A BETWEEN CONSTRUCTION PERIODS BETWEEN 1950 AND 1959 AND THEN THAT'S FOLLOWED BY 20.4% FROM 1972 18 OF 18 18.5% FROM THE FROM 1960S HOMES BUILD FROM 2000 AND ONWARD ACCOUNTED FOR JUST ABOUT 10% OF THE TOTAL AND THEN THIS JUST SHOWS THAT IS A MARKET DOMINATED BY OLDER HOMES WITH LIMITED NEW CONSTRUCTION IN RECENT DECADES AND CITIES PER CITY PROGRAMS LIKE THE HOME IMPROVEMENT LOAN HELP RESIDENTS KEEP THEIR HOUSES SAFE, LIVABLE AND UP TO DATE AND SUPPORTING HOUSING STABILITY IMPROVEMENT AND MAINTAINING THE CHARACTER OF BLOOMINGTON'S NEIGHBORHOODS . >> SO AT THE BEGINNING OF THE YEAR THE PLANNING DIVISION THAT A HOMEOWNER ASSOCIATION STARTED TO ASSESS THE DISTRIBUTIONS OF HOA EXISTING UNITS THESE A STUDY IDENTIFIED ABOUT 5681 UNITS MAKING OVER 13% OF TAXABLE HOUSING UNITS IN BLOOMINGTON. MOST HOA FEES ARE TIED TO TOWNHOMES CONDOS AND THEY'RE MAINLY IN THE WEST AND SIDE PART OF THE CITY'S CONDOS ARE ALSO OFTEN IN HIGH DENSITY AREAS NEAR MAJOR ROADS AND TOWNHOMES ARE MOSTLY SPREAD OUT IN SUBURBAN SELL AREAS. WELL SINGLE FAMILY HOMES ARE IN HOA ARE USUALLY TRACKED BY A STAFF. THIS STUDY FOUND A FEW PROPERTIES AND THIS IS THIS INFORMATION WILL HELP WITH THE FUTURE HOUSING AND PLANNING DECISIONS. ANOTHER EXCITING THING THAT WE FOUND THROUGH THIS STUDY IS OUR DIRECTOR COMMUNITY DEVELOPMENT DIRECTOR WAS PART OF A GROUP AND THAT GROUP WAS ABLE TO PROVIDE FEEDBACK FOR A BILL THAT RECENTLY PASSED IN SENATE AND THEN FOR THAT BILL I'M NOT GOING TO BE ABLE TO PRONOUNCE THE WORDS AND YOU CAN HOLD ME BUT IT WAS AN AMENDMENT TO THE THE LAW THAT ESTABLISHES A COMMON INTEREST COMMUNITY A A BRUCE PERSON OMBUDSMAN PRISON AND THAT PERSON WILL BE APPOINTED BY THE GOVERNMENT WITH THING THE DEPARTMENT OF COMMERCE TO ASSIST UNIT OWNERS AND THEY WILL THAT PERSON WILL BE ABLE TO HELP THEM ENFORCE THEIR RIGHTS AND THEIR RIGHTS AND FACILITATE RESOLUTION OR DISPUTES BETWEEN UNIT OWNERS AND ASSOCIATION. SO THAT'S REALLY EXCITING FOR OUR RESIDENTS . SO FOR HOUSING AFFORDABILITY, THE TABLE ON TOP OF THE SCREEN SHOWS THE AREA MEDIAN INCOME THRESHOLD ESTABLISHED BY THE US DEPARTMENTF HOUSING AND URBAN DEVELOPMENT. THE DEPARTMENT HUD AND KENNY WILL GO INTO A LITTLE BIT MORE DETAIL ABOUT WHAT AM I MEANS. BUT ON THIS SLIDE I JUST WANTED TO SHOW THAT A FAMILY INCOME LEVEL AT 80% AM I CAN ONLY AFFORD A HOME PRICE OF 290,000 AND $300 AND IF WE LOOK AT THE BOTTOM OF THE SCREEN WE SEE THAT THE HOME VALUE DISTRIBUTION IN BLOOMINGTON, YOU KW IT'S SHOWING THAT HOUSES ARE 50% OF HOMES IN BLOOMINGTON ARE VALUE BETWEEN 300,000 AND 499,000. SO IT'S HIGHLIGHTING A SIGNIFICANT GAP IN HOUSING AFFORDABILITY BECAUSE MOST OF THE AVAILABLE HOUSING IS ALREADY OUT OF REACH FOR MANY MODERATE TO INCOME FAMILIES AT 80% AM I SO HOW HOUSEHOLDS ARE CAN SEE THEIR COST BURDEN AND WHEN THEY SPEND 30% OR MORE OF THEIR INCOME ON HOUSING FOR RENTERS THESE INCLUDES RENT AND UTILITIES AND FOR HOMEOWNERS IT INCLUDES THE MORTGAGE TAXES, INSURANCE AND UTILITIES. OVER TIME MORE PEOPLE IN BLOOMINGTON ARE FEELING THIS BURDEN. BACK IN 1990, ABOUT 22% OF ALL HOUSEHOLD HOUSEHOLDS WERE COST BURDEN AND THAT NUMBER HAS GROWN TO 29% IN 2023 HOMEOWNERS HAVE SEEN SMALL INCREASES FROM LIKE 15% TO 20%. BUT RENTERS ARE BEING MORE MUCH AFFECTED. NEARLY HALF OF ALL RENTER HOUSEHOLDS OR ABOUT 49% ARE COST BURDEN AND IT IS STAYING HIGH FOR OVER A DECADE. THIS DATA REFLECTS THAT AFFORDABLE HOUSING IS BECOMING A BIGGER CHALLENGE IN ESPECIALLY FOR RENTERS. THANK YOU. SO YEAH, WE MENTIONED TALKING A LITTLE BIT MORE ABOUT AM I SO I COME UP HERE OFTEN AND TALK ABOUT AM I IN AFFORDABILITY LEVELS AND I THOUGHT IT MIGHT BE HELPFUL TO JUST BRIEFLY GO OVER WHAT THAT ACTUALLY LOOKS LIKE IN THE TWIN CITIES METRO. SO AS WE MENTIONED, HUD SETS THIS NUMBER THEY CALCULATE IT EACH YEAR AND THEY TYPICALLY PUBLISH THAT NUMBER AROUND APRIL OF EVERY YEAR. AND SO WHAT THEY'RE ACTUALLY DOING IN THAT CALCULATION IS LOOKING AT THE MINNEAPOLIS ST. PAUL BLOOMINGTON METRO FRAMEWORK RENT AREA WHICH IS THE 13 COUNTY METRO NOT THE SEVEN COUNTY OR THE 15 COUNTY METRO BUT THE 13 AND THEY'RE PULLING WHAT THE INCOME IS FOR A FAMILY OF FOUR AND THAT'S USING AMERICAN COMMUNITY SURVEYS. THEY ADD US AS DATA WHICH IS ALSO THE DATA THAT INFORMED THE MAJORITY OF THE REPORT THAT YOU'VE BEEN GIVEN TONIGHT. SO WITH THAT DATA IN HAND THEY'RE ABLE TO GO APPLY AN INFLATION FACTOR FROM PREVIOUS YEAR AND THEN RUN TEN YEARS 200 AND THAT'S HOW THEY ARE ABLE TO PUBLISH ANNUALLY THESE MEDIAN FAMILY INCOMES. AND SO FROM THERE THOSE MEDIAN FAMILY INCOMES ARE TAKEN AT LEAST IN OUR CONTEXT. THEY'RE TAKEN BY THE METROPOLITAN COUNCIL. THE MET COUNCIL APPLIES A ASSUMED ANNUAL INCOME WHICH IS THAT EACH BEDROOM OF A UNIT WOULD BE ASSUMED TO HAVE ONE AND A HALF PEOPLE AND USING THAT THEY'RE ABLE TO ESTABLISH A HOUSEHOLD INCOME BASED OFF OF UNIT TYPE. SO ONE BED TO BED STUDIO ALCOVE AND THEN TAKING THAT ANNUAL HOUSEHOLD INCOME THEY JUST APPLY A 30% CALCULATION TO GET WHAT IS CONSIDERED AFFORDABLE HOUSING COST. SO ANYTHING IN EXCESS OF 30% AS DEARLY WE'RE SAYING WOULD BE HOUSING COST BURDEN. AND SO I'VE PULLED THE NUMBERS HERE SPECIFICALLY FOR TWO BEDS WITHIN THE METROPOLITAN AREA AND THAT IS WHAT WE USE HERE IN BLOOMINGTON FOR OUR AFFORDABLE AFFORDABILITY PROGRAM. SO THINK OF YOU THINK OF HOUSING TARIFF. THESE ARE THE THAT'S HOW WE'RE GETTING THE NUMBERS THAT WE'RE APPLYING. AND SO I DID A LITTLE ANALYSIS OF THESE NUMBERS FOR THE LAST ALMOST DECADE AND A HALF AND WANTED TO PULL OUT WHAT I THOUGHT WERE TWO INTERESTING INVERSION POINTS. SO THE LINE ON THE TOP IS WHAT AN AFFORDABLE HOUSING COST WOULD BE IF YOU JUST APPLIED THAT 30% TO THE BLOOMINGTON MEDIAN INCOME, THE MEDIAN INCOME HOUSEHOLD AND THE INVERSION HERE IS THAT A TWO BED THAT'S AFFORDABLE TO A HOUSEHOLD EARNING 100% AMI FOR THE 13 COUNTY METRO THAT UNIT IS NO LONGER AFFORDABLE TO THE BLOOMINGTON MEDIAN INCOME HOUSEHOLD SO THAT'S ONLY OCCURRED SINCE BETWEEN 2020 AND 2021. SO I FEEL LIKE THAT'S AN IMPORTANT INVERSION POINT. THE OTHER HERE IS THAT JUST ONE YEAR LATER WE SEE THAT THE BLOOMINGTON MEDIAN RENT IS NOW WER THAN A 60% AMI TOO BAD FOR THE METROPOLITAN AREA SO AS WE'RE WORKING WITH DEVELOPERS TO TRY AND BRING NEW DEVELOPMENTS TO THE CITY, THESE ARE THE KIND OF THINGS THAT WE'RE TAKING INTO ACCOUNT THAT WE'RE AT A POINT NOW WHERE BLOOMINGTON MEDIAN RENT IS ACTUALLY LOWER THAN A 60% AMI AFFORDABLE UNIT AND AS YOU ARE PROBABLY AWARE LOW INCOME HOUSING TAX CREDIT DEVELOPMENTS ARE TYPICALLY AVERAGE AT THE 60% AM I LEVEL. SO THIS HAS A LOT OF IMPLICATION FOR WHAT TYPE OF PROJECTS WE MIGHT WANT TO SUPPORT FINANCIALLY BECAUSE WHAT THIS DATA IS POTENTIALLY DEMONSTRATING IS THAT A MARKET RATE PROJECT IN BLOOMINGTON ISN'T FAR OFF FROM THE 60% LEVEL AND OF COURSE THIS ACCOUNTS FOR RENTAL UNITS ACROSS ALL AGES OF UNITS. SO WE'RE INCLUDING UNITS THAT ARE A HUNDRED YEARS OLD SO THAT WILL DEFINITELY SKEW THE RESULTS. BUT I STILL THINK THAT THESE ARE TWO IMPORTANT INVERSION POINTS. SO SPEAKING OF NEW DEVELOPMENT, WE DID HAVE SOME DELIVERIES OF PROJECTS IN 2024 AND SO I'VE PULLED THOSE OUT HERE AND WE'RE SHOWING THOSE AGAINST OUR MAP COUNCIL HOUSING NEED ALLOCATION AND I'LL BE REPORTING ON THIS MORE IN SEPTEMBER WITH THE REPORT THAT THE ANNUAL REPORT SO I WON'T GET TOO DETAILED HERE BUT THOSE THREE PROJECTS THAT WERE DELIVERED WERE OXBRIDGE HEIGHTS WHICH IS A 100% AFFORDABLE DEVELOPMENT. NOBLE APARTMENTS WHICH PROVIDED 9% OF THEIR UNITS AT 50% AM I THEY GOT ASSISTANCE THROUGH TIFF AND SO WE WERE ABLE TO NEGOTIATE FOR A DEEPER AFFORDABILITY THERE AND THEN HARDER ON THE BLUFFS AND THAT'S A FULLY MARKET RATE DEVELOPMENT OVER IN SOUTH LOOP THAT ELECTED TO PAY A FEE IN LIEU OF AFFORDABLE UNITS AND WE'VE BEEN WORKING WITH THE DEVELOPER THERE TO HOPEFULLY APPLY THAT FEE TO A SUBSEQUENT DEVELOPMENT IN AMERICAN SQUARE IN THAT SAME AREA AND PROJECTS THAT ARE IN THE PIPELINE ACTUALLY THE KNOX APARTMENTS YOU MAYBE KNOW HAS HAD THEIR OPENING A COUPLE OF MONTHS AGO BUT THIS IS THIS IS WE'RE LOOKING BACK AT 2024 SO EVER APARTMENTS OVER ON THE WEST SIDE THAT'S ENCLAVES DEVELOPMENT THEY'RE WELL UNDERWAY AND CONSTRUCTION CURRENTLY KNOX APARTMENTS IS COMPLETED KNOX APARTMENTS HAS THEIR 9% AT 50% AM I EVER APARTMENTS I SHOULD HAVE MENTIONED IS 9% AT 60% OF MY AND THEN THE ROSSLYN 700 AMERICAN MIGHT BE THE MORE FAMILIAR NAME THAT IS 100% AFFORDABLE PROJECT THAT WILL LIKELY BE COMPLETED NEXT YEAR IN MARCH OF 2026 AND WE DO HAVE A PROJECT IN BLOOMINGTON CENTRAL STATION THAT HAS THEY'RE ENTITLED ENTITLEMENT APPROVAL BUT THEY HAVE NOT YET PROCEEDED TO DEVELOPMENT. SO THAT IS STILL IN THE PIPELINE. SO THEN I WANTED TO PULL A COUPLE OF GRAPHS TO TALK ABOUT WHAT WE'VE BEEN HEARING FROM DEVELOPERS WHICH IS THAT THE COST TO DEVELOP HAS RISEN SINCE THE ONSET OF THE PANDEMIC AND IT CONTINUES TO POSE A LOT OF CHALLENGES TO STARTING DEVELOPMENT. SO WHAT I PULLED HERE WAS FROM ITS PRODUCER PRICE INDEX FOR CONSTRUCTION MATERIALS WITH A BASELINE SET IN THE YEAR 2000 AND IT SHOWS PRETTY CLEARLY A HUGE SPIKE ONE AT THE GREAT RECESSION AND THEN AGAIN AT THE ONSET OF THE COVID PANDEMIC AND WE HAVE STARTED TO LEVEL OFF SENSE AND I THINK IF WE STAY AT A MORE LEVELED OFF PACE THAT NEXT YEAR YOU WOULD BE ABLE TO SEE THAT IN TERMS OF A TREND LINE WE'RE KIND OF WHERE WE WOULD HAVE BEEN HAD THE CONSTRUCTION MATERIALS CONTINUED TO INCREASE AT THAT HISTORIC RATE. SO HOPEFULLY THIS WON'T BE A STICKING POINT FOR MUCH LONGER FOR DEVELOPERS. AND THEN I ALSO WANTED TO PULL OUT OUR INTEREST RATES AND WHEN I GAVE THIS PRESENTATION TO HRA AND PORT AUTHORITY I ONLY WENT BACK TO 2000 AND I MADE A GRAND CLAIM THAT WE'RE AT HISTORIC HIGHS FOR INTEREST RATES AND I WAS REMINDED THAT THAT'S NOT IT'S NOT HISTORIC ACTUALLY LOOKING BACK AT 1980 THAT'S WHERE WE'RE HISTORIC. SO MAYBE HISTORIC FOR HOW OLD I AM. SO YES, WE WE HAVE SEEN IMPROVEMENTS BUT WE'VE KIND OF LEVELED OFF AND I DID IF WE HAVE A LITTLE BIT OF TIME I WANTED TO GO THROUGH I WENT THROUGH A LITTLE EXERCISE OF WHAT THIS INCREASE OF PERCENT INTEREST RATE HAS, WHAT IMPACT THAT HAS ON CONSTRUCTION COSTS. SO I LOOKED AT LIKE WHAT'S AN EXAMPLE OF A DEVELOPMENT COST FOR A PROJECT IN BLOOMINGTON AND I JUST PUT A ROUGH NUMBER OUT AT 40 MILLION. SO FOR A $40 MILLION PROJECT WITH INTEREST RATES AROUND 6.25% INTEREST EXPENSES FOR THAT TYPE OF PROJECT WOULD BE AROUND 2 MILLION OR 5% OF THE TOTAL PROJECT COST. SO THAT'S MORE OF OUR PRESENT DAY VALUES. IN FACT WHERE WE'RE 6.75% FOR THE 30 YEAR FIXED RATE MORTGAGE IF INTEREST RATES WERE AT THAT LOWER LEVEL LIKE 2.65% OF BACK IN 2020, THE INTEREST RATE THE INTEREST COST GOES DOWN TO ALMOST HALF A MILLION. SO THAT'S A DROP OF 1.5 MILLION AND IT'S A 3.85% DECREASE TO THE TOTAL PROJECT COST AND THEN AT THAT POINT INTEREST EXPENSES ARE ONLY 1.16% OF PROJECT COST. SO FROM 5% OF PROJECT COSTS TO 1.16% OF PROJECT COSTS AND THAT NEW TOTAL PROJECT COST WOULD BE 38, 38.5 MILLION. SO I JUST WANTED TO THANK FOR THAT EXERCISE. THIS WAS BASED OFF OF FINANCIAL MODELING THAT WE WERE GIVEN BY A DEVELOPER AT BLOOMINGTON HOUSING DEVELOPER SITE. IT FOLLOWS THEIR MODEL AND I THINK IT JUST DEMONSTRATES THAT THERE ARE STILL VESTIGIAL COSTS FROM THAT COVID ONSET. BUT LIKE I SAID WITH CONSTRUCTION MATERIALS WE'RE HOPING THAT SOME OF THAT GETS ALLEVIATED. WE HAVE SEEN A LOT OF DEVELOPMENT INTEREST BUT WE'RE NOT SEEING A LOT OF THOSE PROJECTS COME TO FRUITION AND APPEAR BEFORE THE COMMISSION. SO THAT'S ALL FOR ME. WE HAVE SOME TAKEAWAYS THAT WE WANTED TO SHARE. YEAH I KNOW THERE WAS A LOT OF INFORMATION. SO A FEW TAKEAWAYS. BLOOMINGTON POST POPULATION IS OLDER THAN THE METRO AREA AND THE STATE AND THE CITY IS BECOMING MORE RACIALLY DIVERSE AND WE HAVE SEEN A CONSISTENT AND MEANINGFUL GROWTH OVER THE THE DECADES FOR INCOME THE INCOME LEVELS ALIGN CLOSELY WITH THE METRO AND THE STATE BUT DISPARITIES EXIST IN HOMEOWNER OWNERSHIP AND YOU KNOW, A GROWING NUMBER OF HOUSEHOLDS IN BLOOMINGTON ARE SPENDING MORE THAN 30% OF THEIR INCOME ON HOUSING AND THAT'S ESPECIALLY RENTERS AND JUST AS A WHOLE WE LOST OUR LAST SLIDE. BUT AS A REMINDER THIS ANNUAL ALL THINGS HOUSING REPORT IS AN ANNUAL REPORT AUTHORED BY THE HRA. IT IS BASED OFF OF AMERICAN COMMUNITY SURVEY DATA AND YOU'LL PROBABLY KNOW THAT THAT DATA HAS LAG TIME FOR WHEN THEY DO THEIR THEIR BIG DATA RELEASE SO THEY HAVE THE THREE YEAR AND THE FIVE YEAR ACL AND IT'S A TWO YEAR LAG. SO THE NEXT WHAT WE'VE CALLED A BANNER YEAR FOR THIS YEAR DATA IS IN 2026 AND THAT'LL BE FOR DATE FOR REPORTING FOR 2024 PRIOR. SO THIS REPORT THAT YOU'VE RECEIVED TONIGHT IS MORE OF AN INTERIM REPORT. YOU WON'T SEE HUGE CHANGES IN THE DATA FROM WHAT WAS GIVEN LAST YEAR. SO NEXT YEAR WE ANTICIPATE THERE WILL BE MORE SIGNIFICANT STATISTICAL CHANGES TO REPORT ON. SO I JUST WANT TO PROVIDE THAT AND IF YOU DO READ THE FULL REPORT THERE IS THERE IS DATA REPORTING INCLUDED FROM THE HRA, THEIR ACCOMPLISHMENTS FOR THE YEAR WITH THEIR PROGRAMS AND THERE ARE REPORTS INCLUDED FROM DIFFERENT COMMUNITY DEVELOPMENT DIVISION. SO ASSESSING ENVIRONMENTAL HEALTH AND OTHER DIVISIONS AS WELL PORT AUTHORITY SO THERE'S MORE INFORMATION IN THE REPORT BUT WE WANTED TO REPORT TO YOU ON THE DATA TODAY. ANY QUESTIONS FOR STAFF COMMISSIONER ISSA THANK YOU MADAM CHAIR. I HAVE A FEW QUESTIONS IF YOU DON'T MIND A COUPLE MORE THAN A COUPLE BUT A FEW, YEAH. SO ON THE OWNERSHIP SLIDE IT SAID THAT BLOOMINGTON'S MEDIUM MEDIAN I BELIEVE IS OWNERSHIP WAS HIGHER THAN THE METRO BUT LOOK LOWER WHEN YOU LOOKED AT THE ON THE NUMBERS ARE NOT YEAH SO IT SAYS IT'S HIGHER ON THE THIS THE TOP BOTTOM LEFT CORNER SECOND ROW SAYS THAT IT IS HIGHER BUT IF YOU LOOK AT THE MEDIAN HOME VALUE IT'S SEEMS LOWER YEAH YEAH SORRY ABOUT THAT THAT'S THAT'S A GOOD CATCH IT'S ACTUALLY I MEAN I WILL CHECK BUT I THINK IT'S LOWER NOW IT SHOULD BE HIGHER SO I THINK THE NUMBER IT'S INCORRECT AND I CAN DOUBLE CHECK THAT I CAN TAKE THE REPORT I CAN DOUBLE CHECK THAT AND THEN YOU KNOW BUT I THINK THE MEDIAN HOME VALUE IS HIGHER THAN THE METRO AREA AND MINNESOTA. >> OKAY. SO THESE TWO MEDIUM HOME VALUE THAT'S HIGHER NOW. YES, I SEE THAT 3046 NUMBER. OKAY. YEAH I THINK THE NUMBER MIGHT BE INCORRECT IS JUST YEAH. OKAY THANK YOU. YEAH I KNOW I WAS JUST I THOUGHT I WAS LIKE I TRY TO LOOK AT LIKE FIVE TIMES BUT ANYWAYS THE SECOND QUESTION I HAD I HAVE IS WHAT IS THE CURRENT REASONS FOR THE DISPARITIES BECAUSE I KNOW HISTORICALLY LIKE YOU MENTIONED THERE'S REDLINING, THINGS LIKE THAT, RIGHT? BUT FROM WHAT I'VE SEEN THERE IS NOW THERE'S NOW A LOT OF PROGRAMS TO HELP MINORITIES OR PEOPLE THAT THAT NEED HOUSING YOU KNOW ARE NEED HOME OWNERSHIP LIKE THERE'S DUMPING ASSISTANCE PROGRAMS SOME SPECIFICALLY EVEN SPECIFIC FOR LIKE AFRICAN-AMERICAN FAMILIES AND THINGS LIKE THAT. SO MY QUESTION IS WILL, WHY IS IT STILL SO HIGH AND IS THERE ANYTHING TO COMPARE BECAUSE I KNOW THIS IS FROM 2019 TO 2023 IS THERE 155 YEARS PRIOR TO COMPARED TO IF IT'S BEEN GETTING BETTER? YES. YEAH. THERE. THANK YOU CHAIR COMMISSIONER YOU SAY THERE IS I REMEMBER CORRECTLY I THINK THE MINNEAPOLIS FED RESERVE RECENTLY PUT OUT AN UPDATE TO WHAT'S CALLED THE ITASCA PROJECT. SO THAT'S A PROJECT THAT'S TRACKING PRODUCTION OF UNITS ACROSS THE METRO AND TRACKING HOW HOMEOWNERSHIP RATES ACROSS RACES AND THEY'VE BEEN LOOKING SPECIFICALLY AT THE DISPARITY BETWEEN HOMEOWNERSHIP FOR WHITE HOUSEHOLDS AND BLACK HOUSEHOLDS. AND IF I REMEMBER CORRECTLY, WE HAVE WE HAVE SEEN AN IMPROVEMENT IN RECENT YEARS. I THINK PART OF WHAT THE NARRATIVE THAT I WOULD WANT TO GIVE IS THERE ARE HUNDREDS OF YEARS OF NEGATIVE IMPACTS FINANCIALLY TO DIFFERENT DEMOGRAPHICS IN THE US AND SOME OF THE MEASURES THAT YOU'VE TALKED ABOUT TO IMPROVE THE SITUATION MAYBE THOSE HAVE ONLY BEEN IN PLACE FOR A DECADE OR A FEW DECADES SO IT MAYBE TAKES IT COULD TAKE QUITE A BIT LONGER TO SEE THOSE NUMBERS CONTINUE TO IMPROVE BUT I DO THINK THERE HAVE BEEN POSITIVE THERE'S BEEN WORK THAT HAS BEEN DONE THAT HAS HAD POSITIVE RESULTS IN RECENT YEARS. OKAY. YEAH. NO, THAT'S GREAT. OKAY. I WAS JUST CURIOUS ON THAT. THE OTHER THING I WAS LOOKING AT THE CHART I'M GOING TO PULL IT UP REAL QUICK THE PRICE IT WAS ECONOMIC CONSIDERATIONS CHART AND I HAD OR HAS THE PRODUCER PRICE INDEX FOR CONSTRUCTION MATERIALS SO IT'S MORE SO FOR THE COST FOR DEVELOPERS WHICH OBVIOUSLY THEN ARE GETS THE THE CONSUMER GETS AFFECTED OR THE RESIDENT OR HOMEOWNER OR WHATEVER AND SO I GUESS MY QUESTION IS IF ON THE MACRO LENS IF I MEAN IF YOU LOOK AT THIS CHART LIKE THE FED PRINTED A WHOLE BUNCH OF MONEY SINCE COVID AND THAT'S MOST LIKELY WHY THERE WAS LIKE A UPTICK IN INFLATION I BELIEVE IT'S LIKE WAY MORE FROM 2020 TO 2024 IT WAS LIKE MORE THAN LIKE I BELIEVE LIKE THE PAST 15 YEARS OR SOMETHING. THEY'LL CALL ME ON THAT JUST A WHOLE LOT MORE. RIGHT? AND IF THAT DROVE UP PRICES AND PRICES HOME PRICES WILL CONTINUE TO DRIVE UP AS LIKE THE NATIONAL DEBT INCREASES RIGHT. I GUESS MY QUESTION AND I KNOW IT'S NOT LIKE A CITY THING IT'S IT'S A BROADER IT'S KIND OF BIGGER THAN CITY HOW HOW WILL WE WILL WE JUST CONTINUE TO HAVE THIS PROGRAMS WHERE WE FUND LIKE DOWN PAYMENT THINGS LIKE THAT TO KEEP UP LIKE BASICALLY PUTTING A BAND-AID ON THE BROADER ISSUE BECAUSE HOME PRICES WILL CONTINUE TO GO UP AND APPRECIATE AND IT'S IMPORTANT OBVIOUSLY FOR MINORITIES AS WELL TO TO BUY HOMES BECAUSE IF YOU DON'T HAVE A HOME OR ANY ASSET YOU'RE GOING TO LACK DUE TO INFLATION. RIGHT. AND AND SO I GUESS MY MY QUESTION IS LONG TERM, HOW DOES A CITY PLAN TO ADDRESS THAT ISSUE THAT MAKES SENSE. I DON'T KNOW. IT'S KIND OF BIGGER THAN IT'S THE BIGGER PICTURE BUT I GUESS ON A MICRO LEVEL HOW IF YEAH HOW DOES HOW TO HOW TO HOW HOW DO WE SOLVE THAT LONG TERM YEAH SHARON COMMISSIONERS I'M I THINK YOU'VE BROUGHT A LOT OF IMPORTANT POINTS LIKE WEALTH HISTORIC WEALTH BUILDING LIKE HOUSING COST INEQUITY. I THINK PART OF THE EQUATION HERE IS WE WANT TO BE ABLE TO DELIVER UNITS THAT ARE AFFORDABLE THAT ARE DELIVERED DELIVERED THROUGH THE MARKET WITHOUT HAVING TO INTERVENE THROUGH PUBLIC SUBSIDY. I THINK THAT'S WHAT YOU'RE TALKING ABOUT AND SO IT IS A CHALLENGE AND WE CONTINUE TO TRY AND IDENTIFY LIKE FUNDING SOURCES THAT DON'T INCREASE BURDEN ON TAXPAYERS. THAT'S AN IMPORTANT PART OF THE WORK AND A LOT OF THAT COMES THROUGH PUBLIC PRIVATE PARTNERSHIP. SO I GUESS THE WORK THAT WE DO CONTINUES. YEAH, I DON'T MAYBE I DON'T KNOW HOW TO FULLY ANSWER YOUR QUESTION BUT I THINK YOU'VE BROUGHT UP A REALLY GOOD POINTS. I DON'T KNOW IF ANYONE ELSE WANTS TO WEIGH IN. CHERYL BURKE JACK COMMISSIONER, YOU SAY THAT IS A DIFFICULT QUESTION PARTICULARLY I MEAN THE HOUSING MARKET CERTAINLY DOES NOT STOP AND AND AT THE BLOOMINGTON'S BORDERS, RIGHT? WE'RE TYPICALLY OPERATING IN A MORE REGIONAL HOUSING MARKET THAN JUST A LOCAL HOUSING MARKET. CERTAINLY THE DATA ABOUT THE LOCAL HOUSING MARKET IS VERY IMPORTANT AND I APPRECIATE THEM PRESENTING THAT INFORMATION TO YOU AND WILL BE IMPORTANT THINGS TO THINK ABOUT FOR THE COMP PLAN COMING UP IN TERMS OF THE THINGS THAT ARE IN OUR CONTROL, YOU KNOW ONE OF THE THINGS I WROTE DOWN IS JUST MORE EFFICIENT USE OF LAND. THERE'S THERE ARE SOME THINGS WITHIN OUR CONTROL AND SOME OF THOSE THINGS ARE REGULATIONS. WE'VE TALKED A LOT ABOUT THOSE THINGS THE LAST COUPLE OF YEARS AND HOW DO WE KIND OF REDUCE THE CHALLENGE OR THE HEIGHT OF THE HURDLE WITH RESPECT TO SOME OF OUR PERFORMANCE STANDARDS THAT MAKES MORE HOUSING INFILL HOUSING FEASIBLE TO BE CREATED? THE OTHER THING I THINK WE'VE BEEN THINKING ABOUT AND THIS WILL COME UP IN THE MISSING MIDDLE HOUSING PROJECT IS JUST MORE CREATIVE FORMS OF HOME OWNERSHIP. CERTAINLY WHEN PEOPLE THINK ABOUT HOMEOWNERSHIP THEY'RE THINKING ABOUT TRADITIONALLY THEY'VE BEEN THINKING ABOUT CONDOS OR SINGLE FAMILY HOMES. THERE ARE OTHER FORMS OF HOMEOWNERSHIP OUT THERE THAT WE NEED TO ASSESS AND EVALUATE HOW DO WE INCENTIVIZE THESE THINGS? HOW DO WE CREATE THESE OPPORTUNITIES TO USE SO BUT I MEAN BY ME SHARING THOSE JUST TWO QUICK THINGS JUST OFF THE CUFF IT DOESN'T, YOU KNOW, DIMINISH THE SCALE OF THE CHALLENGE. IT IS A SIGNIFICANT CHALLENGE . YEAH. THANK YOU FOR THAT. YEAH I APPRECIATE THAT AND YEAH, BECAUSE IT'S FRUSTRATING BECAUSE IT'S NOT LIKE YOUR AVERAGE CITIZEN WHETHER YOU'RE MINORITY OR NOT, RIGHT? IT'S AFFECTING EVERYBODY. IT'S NOT LIKE THEY'RE TRYING TO JUST KEEP UP, RIGHT? IF YOU LOOK AT THERE'S LIKE A BUNCH OF CHARTS YOU CAN LOOK AT WHERE LIKE THE MEDIAN MEDIAN HOUSEHOLD BACK IN LIKE THE 50S VERSUS INCOME OR LIKE STUDENT LOANS BACK THEN VERSUS NOW IT'S LIKE IT'S A CRAZY DESPAIR. PARITY IN THAT SENSE DIFFERENT RIGHT? SO IT'S NOT THE YEAH I DON'T KNOW I GUESS IT'S A BIGGER ISSUE OPEN YEAH THANK YOU GUYS FOR UH FOR THAT INFORMATION. APPRECIATE IT. YEAH I THINK THAT'S ALL THE QUESTIONS I HAD THE OTHER QUESTIONS COMMENTS. COMMISSIONER CUNNINGHAM THANK YOU CHAIR I WANT TO TALK ABOUT ARDOR ON THE BLUFFS QUICK THAT JUST WANTED TO CLARIFY A SENTENCE YOU SAID ABOUT THAT THEY HAD A FEE FOR NOT HAVING ANY I DON'T WANT TO USE THE WORD SUBSIDIZED HOUSING ANY ANY UNITS AT DIFFERENT ARMY RANGES BEYOND MARKET RATE BEING FULLY MARKET RATE. IS THAT STANDARD THROUGHOUT THE CITY? I GUESS CAN YOU EXPAND ON KIND OF WHAT THAT FEE IS? YEAH, TURN COMMISSIONERS SO THROUGH OUR OPPORTUNITY HOUSING ORDINANCE THERE ARE MULTIPLE WAYS FOR DEVELOPERS TO COMPLY WITH THE REQUIREMENTS. THE ONE THAT IS MOST OFTEN USED IS PROVIDING 9% OF UNITS WITH AN AFFORDABILITY RESTRICTION. THE BASELINE OF THAT IS THE 60% AM I LEVEL. THERE'S ANOTHER OPTION TO PAY A FEE IN LIEU OF PROVIDING THOSE AFFORDABLE UNITS AND SO THAT'S CONTAINED IN THE APPENDIX OF OUR CODE OF ORDINANCES. THE RATE IS I BELIEVE $9.60 PER SQUARE FOOT OF LEASABLE SPACE IN THE BUILDING. SO THE WAY WE CALCULATED THE FEE FOR CHARTER IS THEY PROVIDED US WHAT THAT LEASABLE SQUARE FOOTAGE WAS IN THE DEVELOPMENT AND THEN WE JUST APPLIED THAT $9.60 AND THAT'S HOW THAT FEE WAS ESTABLISHED. GOT IT. AND YOU SAID THAT THEY HAD DEFERRED THAT TO A FUTURE PROJECT? TRAN COMMISSIONERS CORRECT. SO THERE'S TWO OPTIONS WITHIN THAT WHEN THAT FEE IS PAID THEY COULD PAY THAT INTO OUR AFFORDABLE HOUSING TRUST FUND AND IT COULD BE THEN AVAILABLE FOR SUBSEQUENT DEVELOPMENTS IN THE CITY OR THEY'RE ABLE TO THROUGH OUR ORDINANCE TO BASICALLY HAVE THAT FEE HELD BY THE CITY FOR UP TO 24 MONTHS FOR THAT FOR THAT SAME DEVELOPER OR FOR THEM IN PARTNERSHIP WITH A DIFFERENT DEVELOPER TO BRING FORWARD A SUBSEQUENT DEVELOPMENT THAT INCLUDES THE REQUIRED UNITS THAT WOULD HAVE BEEN REQUIRED IN THIS CASE IN ORDER AND THEN WHATEVER THAT NEW BUILDING WOULD HAVE WOULD REQUIRE FOUR UNITS. THEN THEY'RE ABLE TO DRAW ON THAT FEE THAT THEY'D PAID. GOT A CHAIR FOLLOW UP QUESTION FOR PLANNING MANAGER JOHNSON IF I CAN. SORRY. SO IF IF SOMEONE WAS TO PAY THIS FEE THAT YOU KNOW $9.60 PER SQUARE FOOT IN ADDITION IF A DEVELOPER WANTED TO DO A TRULY MARKET RATE BUILDING IT WOULD BE PARK DEDICATION FEES PERMIT FEES, INSPECTIONS, THE NEW CITY SAC FEE AND THE OPPORTUNITY HOUSING ORDINANCE COSTS. OKAY. COMMISSIONER CUNNINGHAM THAT'S CORRECT. OKAY. YEAH. THANK YOU. JUST WANTED TO GET THAT OUT OF MY MY BRAIN. GOOD. GOOD TO KNOW. THANK YOU, CHAIR EITHER QUESTIONS COMMENTS. COMMISSIONER HURRY UP TO IT. THANKS CHAIR. SO CAN YOU GO BACK TO THIS SLIDE THAT SHOWED I THINK IT WAS 60% AMI OVERTIME? SO YEAH THAT WAS IT. THIS ONE? YEAH. SO BASICALLY IS WHAT THIS IS SAYING IS THE MEDIAN RENT FOR BLOOMINGTON IN GENERAL IS BELOW THE MEDIAN 60%. AM I RIGHT? SO RIGHT TURN COMMISSIONERS IN 2023 OR I SUPPOSE THAT'S 22 ONWARD THE BLOOMINGTON MEDIAN RENT IS LOWER THAN A TWO BED A TWO BED THAT'S AFFORDABLE AT THE 60% AM I LEVEL FOR THE 13 COUNTY METRO? CORRECT. OKAY. BUT THEN THE AFFORDABLE HOUSING COSTS BASED ON BLOOMINGTON MEDIAN INCOME IS NOT I'M TRYING I'M JUST TRYING TO KIND OF MAKE SENSE OF THESE TWO. SO THE ONE THAT THE CHART THE COMPARISON ABOVE IS THAT AM I IN GENERAL OR AFFORDABLE RENT FOR A 100% AMAZON WELL ABOVE AGAIN I SUPPOSE WHAT IS IN BLOOMINGTON FOR AN AFFORDABLE OH THAT'S BASED ON BLOOMINGTON'S MEDIAN INCOME SO THAT'S A COMPARISON OF OUR MEDIAN INCOME VERSUS WHERE 100% AMI IS OUT TODAY SAYING THAT PEOPLE CANNOT GENERALLY AFFORD A 100% EMI. HOWEVER OUR MEDIAN RENT IS STILL BELOW ON AVERAGE 60% OF AM I TORY COMMISSIONERS IF I MAY WHAT I THINK ONE SO SO WE'RE WELL SO WE'RE WELL BELOW ON AVERAGE THE 100% THAT'S SHOWN ABOVE FOR TWO BED OKAY WHAT I IF I MAY TURN COMMISSIONERS WHAT I WANTED TO DRAW OUT IN THIS BESIDES THAT POINT I WAS TRYING TO MAKE ABOUT WHAT I CAN AFFORD A 60% AM I PRODUCT THAT A DEVELOPER IS BRINGING HOW THAT INTERACTS WITH OUR MEDIAN RENT NOW WHAT I ALSO THINK IS IMPORTANT HERE IS THIS QUESTION OF LOCALISM WITH REGARDS TO POLICY MAKING . SO WHEN WE THINK OF AM I IT'S ACTUALLY FOR THE METRO AREA SO WE'RE TAKING INTO ACCOUNT RENTS IN Y Z A NEW HOPE ROSEVILLE LIKE EVERYWHERE THAT'S THE WHOLE METRO SO THAT I THINK WHAT YOU HIGHLIGHTED HERE IS THAT 100% MY LEVEL FOR A TWO BED IS FAR HIGHER THAN WHAT A MEDIAN BLOOMINGTON MEDIAN INCOME HOUSEHOLD WOULD BE ABLE TO MAKE AND MAYBE THAT WHAT THAT'S INFORMING IS THESE AM I LEVELS ARE TAKING ARE LIKE INFLUENCED BY THESE MORE WEALTHY COMMUNITIES THEY'RE BRINGING THAT MEDIAN RATE MUCH HIGHER TRUE AND WHAT I I GUESS THE OTHER THING I WOULD BRING INTO IT IS JUST COMPARING THE HOUSING PRICES IN GENERAL AND BLOOMINGTON VERSUS THE REST OF THE METRO AREA WHERE WE HAVE A MUCH LARGER PERCENTAGE OF HOUSES AT $499,000 OR LESS THAN THE METRO AREA. SO WOULD YOU SAY THAT THE LARGER PERCENTAGE OF YOU KNOW OF RENT OF AFFORDABLE RENT IN BLOOMINGTON IS MOSTLY DUE SIMPLY TO NATURALLY AFFORDABLE HOUSING OR DUE TO THE ACTUAL PROGRAMS THAT THE CITY HAS IMPLEMENTED TRACK MEASURE IS I WOULDN'T BE ABLE TO CONFIDENTLY SAY THAT OUR ANALYSIS HAS UNCOVERED THAT I THINK WE COULD DO SOME WORK TOWARD THAT BUT FOR SURE THAT THE THE AGING HOUSING STOCK OR NO HOUSING IN SOME CASES WOULD INFLUENCE THAT GREATLY. I THINK WE'VE BROUGHT IN WELL ACTUALLY MAYBE ON A PRIOR SLIDE YOU'LL SEE THAT THERE IS AN OUTSIZED NUMBER OF UNITS HOUSING UNITS IN BLOOMINGTON THAT ARE OF AN OLDER VINTAGE. SO I THINK I WOULD YEAH I THINK BOTH OF THE THINGS THAT YOU'VE SAID ARE TRUE. SO YOU'RE AGREEING? YES. OKAY. DO YOU HAVE ANY INFORMATION ON WHAT THE ANNUAL PRICE APPRECIATION IS LIKE FOR BLOOMINGTON HOUSES OVER TIME VERSUS THE METRO AREA? NOT IN THIS REPORT BUT BECAUSE I BECAUSE EVEN THOUGH I MEAN YOU LOOK AT 300 AND 300,000 FOR 99,000 AVERAGE PRICE VERSUS THE METRO AND WHILE THAT'S NOT AFFORDABLE BASED ON THESE NUMBERS, IT'S NOT I MEAN IT'S IT'S MUCH WE'RE WE'RE IN A MUCH BETTER PLACE I WOULD SAY THAN THE METRO AREA RIGHT SO IT WOULD BE INTERESTING TO SEE WHAT THE HISTORY OF APPRECIATION IS LIKE IN BLOOMINGTON VERSUS THE METRO AREA AND JUST IN GENERAL RELATIVE TO THESE AFFORDABLE THESE AM I NUMBERS TO SEE IF BLOOMINGTON IS ACTUALLY BECOMING MORE AFFORDABLE OR BECAUSE THERE'S SUCH A LARGE PORTION OF HOMES AT THAT PRICE POINT OR BELOW YOU KNOW WHAT I MEAN? SO JUST A THOUGHT AS TO SOMETHING THAT WE SHOULD MAYBE TAKE A LOOK AT. BUT MR. JACKSON ERIC MR. CURRY THAT SOME OF AND I CERTAINLY CAN FOLLOW UP WITH THE CITY ASSESSOR ON TO GET A SENSE OF IF HE HAS ANY OF THAT DATA AVAILABLE AND HOW HARD WOULD IT BE TO YOU KNOW, CAPTURE IT IN A DIGESTIBLE WAY AND HOW MUCH WORK WOULD IT TAKE OF COURSE THAT TO YEAH, OKAY. I THINK THAT WAS IT. ANY OTHER THOUGHTS COMMENTS? CHAIR IF I CAN MAKE ONE MINOR CORRECTION OF A PREVIOUS CONFIRMATION TO COMMISSIONER CUNNINGHAM'S STATEMENT NOT ALL PROJECTS DO PLAY A PART DEDICATION FEES SOME SITES ARE ALREADY PLATTED SITES AND JUST TO REITERATE THE TRIGGER FOR PARK DEDICATION AS UNDER MINNESOTA STATUTE IS TIED TO PLANNING SO FOR SITES THAT HAVE ALREADY BEEN PLATTED AS PART OF PHASE TWO DEVELOPMENTS OR OTHER FORMS OF PREVIOUS DEVELOPMENT ACTION, THOSE SITES DO NOT PAY PARK DEDICATION FEES. COMMISSIONER HICKTON THANKS MADAM CHAIR. SO YOU KNOW THERE'S A LITTLE CONVERSATION EARLIER ABOUT WHAT CAN WE DO ABOUT IT. YOU KNOW, WE'VE SEEN SOME INFORMATION IN THIS REPORT THAT'S PRETTY PROMISING AND SOME THAT'S MAYBE NOT SO PROMISING. AND SO FOR THE THINGS THAT AREN'T SO GREAT, WHAT CAN WE AS A MUNICIPALITY DO ABOUT IT? AND SO YOU KNOW, I'M NOT AN EXPERT IN HOUSING BY ANY MEANS, BUT WHAT I CAN TELL YOU AND WHAT I CAN TELL THE FOLKS WATCHING IS THAT, YOU KNOW, WHEN I ATTEND SOME OF THESE PLANNING CONFERENCES, A LOT OF THE CONVERSATION JUST NATIONALLY AND THE WORLD OF PLANNING IS WHAT CAN WE DO TO CREATE AFFORDABLE HOUSING? AND I ALWAYS LIKE TO SIT IN ON THOSE PRESENTATIONS TO SEE HOW WE'RE DOING AND A LOT OF THE THINGS THAT ARE BEING DISCUSSED ON THE NATIONAL LEVEL OF THE SORT OF EMERGING THINGS MUNICIPALITIES CAN DO TO CREATE AFFORDABLE HOUSING. WE'VE ALREADY DONE OR ARE DOING AND SO LIKE I THINK WE HAVE A LOT TO BE PROUD OF IN THE CITY THAT WE'RE REALLY ON THE FORWARD FACING END OF THIS OF YOU KNOW WE TALK ABOUT THE OPPORTUNITY HOUSING ORDINANCE WHICH IS NOT PERFECT BUT IT'S BEEN VERY SUCCESSFUL AND WE'VE DONE ALL KINDS OF OTHER STUFF ESPECIALLY IN THE LAST COUPLE OF YEARS ABOUT YOU KNOW, WHETHER IT'S REDUCED LOT SIZES OR SMALLER HOME SIZES BEING ALLOWED, DIFFERENT HOUSING TYPES BEING ALLOWED. WE'RE DOING A LOT OF THE THINGS THAT THE EXPERTS IN THE FIELD ARE RECOMMENDING THAT MUNICIPALITIES DO TO CREATE MORE AFFORDABLE HOUSING. AND SO WHETHER THE MARKET ULTIMATELY ACCEPTS THAT OR NOT IS PERHAPS REMAINS TO BE SEEN. BUT I THINK WE CAN TAKE SOME COMFORT IN THAT. THE CITY OF BLOOMINGTON AT LEAST FROM MY PERSPECTIVE IS DOING A LOT OF THE RIGHT THINGS. COMMISSIONER CURRY THANK YOU, CHAIR. I WOULD AGREE WITH THAT. UP UNTIL THE POINT OF KIND OF GOING BACK TO WHAT I WAS GETTING AT BEFORE WHICH IS JUST NATURALLY AFFORDABLE HOUSING IS THE IDEAL THING TO HAVE BECAUSE YOU CAN'T REBUILD HOUSES NEW HOUSES ADD I MEAN I SUPPOSE YOU PROBABLY CAN BUT IT'S PRETTY TOUGH TO FIND A HOUSE FOR LESS TO BUILD A HOUSE FOR LESS THAN LIKE $400,000 THESE DAYS, RIGHT. OR $300,000. WHAT DID THEY WHAT DID THE WAS IT THAT THE CITY DID IT FOR? WAS A 500,000 OR SOMETHING? SORRY TO INTERRUPT. I'LL JUST SAY IT'S NORTH OF FOUR SO YEAH, SO I MEAN SO ULTIMATELY WE DON'T JUST FROM MY PERSPECTIVE I DON'T THINK WE WANT TO IMPLEMENT POLICIES THAT PROMOTE THE TEARING DOWN AND REPLACEMENT OF EXISTING HOMES BECAUSE AS WE'VE SEEN IN THE PAST, YOU KNOW FOR A DEVELOPER TO DO THAT TO FOR A DEVELOPER TO JUSTIFY DOING THAT THEY HAVE TO SELL IT FOR FOUR TIMES WHAT THEIR COST THEIR BASIS IS FOR THE INITIAL LOT RIGHT? SO MAYBE IF THEY CAN DOUBLE OR TRIPLE THE NUMBER OF UNITS ON THE LOT THAT MAKES IT STILL SOMEWHAT FEASIBLE TO MAINTAIN LIKE A REASONABLE PRICE BUT STILL YOU'RE JUST GOING TO INCREASE YOU KNOW YOU'RE GOING TO MOVE THE BLUE BAR AND THE 300,000 OR 499 IS GOING TO GET LESS AND 500 IS GOING TO GET BIGGER AND THEN YOU KNOW, I MEAN ANYTHING ON THE LEFT IS GOING TO GET LESS. SO THAT'S JUST MY MY OVERALL PERSPECTIVE EITHER COMMENTS, FEEDBACK QUESTIONS. THANK YOU FOR THE PRESENTATION. I AGREE THAT THERE'S A LOT OF WORK TO BE DONE IN THIS SPACE AND IT SEEMS LIKE BLOOMINGTON IS DEFINITELY LEADING THE CHARGE IN SOME OF THE CREATION OF UNITS SEEING AS WE HAVE ALREADY HIT OUR 2030 GOALS. THAT'S FANTASTIC. I THINK THE STAFF IS DOING A GREAT JOB AND I THINK THERE ARE STILL HEADWINDS THAT WE ARE GOING TO FACE WITHIN THE NEXT SIX, 12, 18 MONTHS. I JUST HEARD A FIGURE THAT THERE WERE ONLY 22 UNITS PERMANENT IN THIS METRO AREA LAST MONTH IN MAY AND IT'S LOOKING LIKE IT'S GOING TO BE ABOUT 100 FOR 24TH JUNE, MAYBE SLIGHTLY HIGHER BECAUSE JUNE IS NOT OVER BUT THAT IS SIGNIFICANTLY LOWER THAN THE AVERAGE WHICH IS ABOUT 600 UNITS PERMANENT ON A MONTHLY BASIS IN OUR REGION. SO I THINK BEING AHEAD OF IT IS THE KEY IN ORDER TO MAKE OUR COMMUNITY MORE ENTICING FOR ADDITIONAL DEVELOPMENT WHICH IS HELPFUL I THINK FOR ALL. SO THANK YOU VERY MUCH. APPRECIATE IT. THANK YOU. MR. JOHNSON, DID YOU HAVE SOMETHING? NO. I WAS WAVING AT MY COLLEAGUES. OKAY. ITEM TWO ON OUR AGENDA THIS EVENING IS ALSO A STUDY ITEM WE ARE LOOKING TO APPROVE THE JUNE 5TH AND JUNE 12TH PLANNING COMMISSION MEETING SYNOPSIS JUNE 5TH. WE'LL START THERE. MR. CUNNINGHAM WAS ABSENT LOOKING FOR A MOTION. MR. COOK I'M SURE I MOVE TO APPROVE THE PLANNING COMMISSION MEETING SYNOPSIS FROM JUNE 5TH AND JUNE. WELL WE'LL JUST DO ONE FROM JUNE 5TH, 2025 AS PRESENTED. WE HAVE A MOTION AND A SECOND. ALL THOSE IN FAVOR SAY I I THOSE OPPOSED AND ARBITRATION ABSTAIN. ALL RIGHT. AND WE'RE ON TO JUNE 12TH THE SYNOPSIS FOR THAT MEETING. COMMISSIONER CURRY, COMMISSIONER WHITE AND COMMISSIONER CUNNINGHAM WERE ALL NOT HERE LOOKING FOR A MOTION TO APPROVE CORRECTION. YES IT IS BOTH ABSENT AND PRESENT. OH GREAT CATCH. WERE YOU HERE OR NOT? OKAY. ALL RIGHT. SO MY NOTICE CORRECT. GREAT LOOKING FOR A MOTION TO APPROVE THE JUNE 12TH MEETING SYNOPSIS AS AMENDED I APPROVE THE JUNE 12TH 2025 PLANNING COMMISSION MEETING SO NOT SYNOPSIS AS AMENDED SECOND. ALL RIGHT, THERE'S A MOTION AND A SECOND. ALL THOSE IN FAVOR SAY I I THOSE OPPOSED AND THOSE WHO ABSTAINED CHRISTINE ALL RIGHT. THAT MOTION PASSES. ITEM THREE ON THE AGENDA IS ALSO A STUDY ITEM. WE ARE LOOKING FOR THE PLANNING COMMISSION POLICY AND ISSUES UPDATE PLANNING MANAGER JOHNSON YOU HAVE THE UPDATE. >> THANK YOU, CHAIR ALL RIGHT. I'LL START AS ALWAYS WITH AGENDAS ON THE NEXT TO UPCOMING PLANNING COMMISSION MEETINGS ON JULY THE 10TH. THE FIRST TIME ON THE AGENDA WILL BE SWEARING IN THREE NEW PLANNING COMMISSIONERS AS WELL AS SWEARING IN EXISTING COMMISSIONER ABDI SAY FOR HIS NEXT TERM THREE NEW MEMBERS WILL BE SWORN IN JARED MUNSTER AND LENNY AND MADELINE SUMMERS. THEY'LL JOIN THE BOARD AT THAT FIRST MEETING AND I ASSUME VICE CHAIR COOK JOHN WILL DO THE HONOR OF SWEARING THEM IN TO THEIR NEXT NEW ADVENTURE . THE SECOND ITEM ON THE AGENDA IS A CONDITIONAL USE PERMIT FOR A SCHOOL RELOCATING FROM ONE OFFICE BUILDING TO ANOTHER NEAR THE MALL OF AMERICA. THE THIRD ITEM IS A STUDY ITEM IT'S A TRANSPORTATION ITEM PRESENTING YOU INFORMATION ON THE BLOOMINGTON FERRY ROAD CORRIDOR STUDY. SO OUR TRAFFIC AND TRANSPORTATION STAFF WILL BE IN ATTENDANCE TO PROVIDE YOU AN UPDATE ON THAT PROJECT. THE NEXT MEETING ON JULY 24TH IS SHAPING UP TO BE A VERY BUSY AGENDA. THE FIRST ITEM IS A COMPREHENSIVE PLAN AMENDMENT AT ST MARK'S CHURCH TO RE GUIDE THAT SITE AT 8630 XERXES AVENUE FROM QUASI PUBLIC TO LOW DENSITY RESIDENTIAL IN THE CAM PLAN AND THAT WOULD BE TO POTENTIALLY SUBDIVIDE THOSE PROPERTIES FOR A SINGLE AND TWO FAMILY HOMES AT THAT LOCATION. AND SO THAT'LL BE PRESENTED TO YOU AS PART OF A PUBLIC HEARING THE PUBLIC HEARING ITEM NUMBER TWO THE COMMUNITY HEALTH AND WELLNESS CENTER, THE ZONING ENTITLEMENTS WILL BE COMING BEFORE THE BOARD AT THE NEXT AT THE JULY 24TH MEETING. SO THAT INCLUDES A COST PLAN AMENDMENT REZONING PRELIMINARY AND FINAL DEVELOPMENT PLANS AS WELL AS A PLAT APPLICATIONS. SO A PUBLIC HEARING FOR THAT. AND THEN THE THIRD ITEM PLAN FOR THAT MEETING IT WOULD BE A CITY CODE AMENDMENT THE AIRPORT EXCUSE ME THE AIRPORT PARKING ORDINANCE THAT WOULD ALSO BE A PUBLIC HEARING AND THAT'S PLENTY. SO WE'RE PROBABLY GOING TO CLOSE THE AGENDA AT THAT ONE. THAT IS THE UPCOMING ITEMS. ANY QUESTIONS ABOUT THE UPCOMING MEETING AGENDAS BEFORE I TRANSITION TO ONE FINAL UPDATE THAT I SAW SOME ON THE 724 MEETING THE CODE AMENDMENT FOR AIRPORT PARKING IS THAT PUBLIC HEARING OR STUDY ITEM THAT'S A PUBLIC HEARING. THANK YOU AND AS A PUBLIC HEARING THANK YOU COMMISSIONER CUNNINGHAM AND THEN FINALLY I JUST THIS IS THE FUN, FUN PART OR SAD PART FOR ME DEPENDING ON WHICH WAY YOU SLICE IT. BUT I JUST WANT TO ACKNOWLEDGE THAT THIS IS THE LAST PLANNING COMMISSION MEETING FOR THREE OF OUR MEMBERS. I'LL START AND REVERSE TENURE. SO COMMISSIONER DAN CURRY FOR TWO YEARS OF SERVICE TO THE BLOOMINGTON PLANNING COMMISSION COMMISSIONER JIM MCGOVERN WITH THREE YEARS OF SERVICE TO THE PLANNING COMMISSION AND THEN FINALLY AND SPECIAL THANKS TO AVRIL ALBRECHT SERVING SIX YEARS ON THE PLANNING COMMISSION AS WELL AS AN OFFICER POSITIONS SO MANY THANKS TO ALL OF YOU. I JUST WANT TO SHARE FOR THE COMMUNITY THAT IT IS A SIGNIFICANT COMMITMENT. ALL THE MEMBERS UP HERE ON THE BOARD SPEND A LOT OF TIME NOT JUST THE TIME UP HERE IN THE EVENING 2 TO 3 EVENING MEETINGS PER MONTH WITH NOT SIGNIFICANT FINANCIAL REWARD AND SERVICE TO THEIR COMMUNITY . SO I JUST WANT TO THANK ALL THREE OF YOU FOR ALL THE SERVICE THAT YOU'VE PROVIDED TO THE CITY OF BLOOMINGTON IN YOUR COMMUNITY. THERE'S A SIGNIFICANT NUMBER OF POLICY CHANGES THAT HAVE HAPPENED OVER YOUR TEN YEARS AS WELL AS DEVELOPMENT AND SO WE'RE VERY GRATEFUL TO STAFF TO WORK WITH KIND AND THOUGHTFUL PEOPLE WHO CARE A LOT ABOUT BLOOMINGTON AND WE VERY MUCH APPRECIATE YOUR SERVICE . THANK YOU. YEAH I, I DON'T KNOW IF ANY OF MY FELLOW COMMISSIONERS WANT TO SAY ANYTHING BUT I, I DO WANT TO THANK MY FELLOW COMMISSIONERS AS YOU ALL HAVE TAUGHT ME A LOT. A SPECIAL THANKS TO COMMISSIONERS WHO AREN'T HERE WHO HAVE ALSO TERMED OUT. I HAVE LEARNED A LOT FROM YOU AND THEN OF COURSE STAFF HAVE BEEN APPRECIATIVE OF ALL OF YOUR HELP AND GUIDANCE AS WE ARE ALL VOLUNTEERS BUT YOU MAKE IT FUN SO I APPRECIATE THAT. ALL RIGHT. ALL RIGHT. SEEING NOTHING ELSE THAT WILL CLOSE OUT ARE JUNE 26TH, 2025 MEETING OF THE BLOOMINGTON PLANNING COMMISSION. >> THANK YOU