Forward New Richmond Committee

Forward New Richmond Committee Meeting Agenda Wednesday, January 15, 2025 at 12:00 PM Council Chambers Page 1. CALL TO ORDER 2. ROLL CALL 3. ADOPTION OF AGENDA 4. CONSENT AGENDA a. Minutes 2-3 November 20, 2024 Minutes b. Community Development Updates - FNR January 2025 4-5 Memo: Community Development Updates c. General City Updates 6 - 10 Memo: General City Updates 5. AFFORDABLE HOUSING FUND a. Discussion on Affordable Housing 11 - 16 Memo: Affordable Housing - Survey Results and Next Steps PDF: Affordable Housing Survey Results 6. DISCUSSION ON PRIORITY #2 - INDUSTRIAL PARK a. Priority #2 - Industrial Park 17 Memo: Priority #2 - Industrial Park 7. COMMUNICATION AND MISCELLANEOUS 8. ADJOURNMENT  Forward New Richmond Committee Meeting Minutes Wednesday, November 20, 2024 at 12:00 PM Council Chambers The Forward New Richmond Committee was called to order on Wednesday, November 20, 2024, at 12:00 PM, in the Council Chambers, with the following members present: PRESENT: Ryan Shervey, Carrie Borgstrom, Kent Elkin, Aaron Sundeen, Joe Green, Liz Pizzi, and Mike Montello ABSENT: Bryan Knutdson and Pete Kling OTHERS Noah Wiedenfeld, Rae Ann Ailts, Beth Thompson, Jim Zajkowski, Pete Vrieze and Melissa Meschke CALL TO ORDER ROLL CALL ADOPTION OF AGENDA Liz Pizzi made a motion to approve the agenda. Aaron Sundeen seconded the motion. Carried unanimously. CONSENT AGENDA Aaron Sundeen made a motion to approve the consent agenda. Ryan Shervey seconded the motion. Carried unanimously. AFFORDABLE HOUSING Staff Powerpoint: Affordable Housing Fund Beth Thompson and Rae Ann Ailts presented information on current and past Tax Increment Financing Districts (TID). For the last three TID's that have been closed, the City Council passed a resolution to approve a one-year extension to collect funds for an Affordable Housing fund. Ideas were discussed on possible programs for the funds. The Powerpoint for this discussion can be found attached to these minutes. Considerable discussion followed. Per the discussion, FNR members really want to focus on the best use of the affordable housing funds by concentrating on the section "Affordable Home Initiatives" and the Smart Space Homes. This could include partnering with Habitat for Humanity, the new Housing Co-Op amongst others. FNR members directed staff to put additional information together based on the discussion for the January meeting. Forward New Richmond Committee Meeting November 20, 2024 COMMUNICATION AND MISCELLANEOUS ADJOURNMENT Kent Elkin made a motion to adjourn the meeting at 1:05 p.m. Mike Montello seconded the motion. Carried unanimously. Forward New Richmond Committee Meeting November 20, 2024  MEMO Prepared for: Forward New Richmond Staff Contact: Beth Thompson Meeting: Forward New Richmond Committee - 15 Jan 2025 Subject: Community Development Updates - FNR January 2025 BACKGROUND INFORMATION: Building / Zoning Updates – January 1, 2024 - December 31, 2024: Number of Building Permits - 359 Number of New Dwelling Units - 89 Number of Inspections - 1,436 Residential Construction Value - $25,044,596.00 Commercial Construction Value - $30,025,975.00 Building Permit Fees - $392,769.00 Impact Fee Collections - January 1, 2024 - December 31, 2024: Park - $83,645.00 Library - $220,162.00 Law Enforcement - $35,213.36 Transportation - $228,858.40 Stormwater - $49,763.52 Sewer (SAC) - $112,307.00 Water - $153,493.00 Occupancy Updates: For the month of December, the building inspector has given occupancy for two single-family homes, and one duplex. St. Croix Economic Development Corporation (SCEDC) Awards: Beth and Sadie researched, communicated and diligently worked on two nominations for 2024 Business of the Year Awards. These awards recognize exceptional achievements by local businesses. SCEDC is seeking to honor three businesses across specific categories that have demonstrated a significant impact on the St. Croix County community. To be eligible for the award the business must be in manufacturing, distribution, health care, or provide services to other businesses. Companies must operate for profit, retail and non-profit organizations are not eligible for consideration. Awards recipients will be announced at the SCEDC's Annual Banquet on Thursday, February 27th, 2025 5:00-8:00 p.m. at Ready Randy's. Two New Richmond local businesses were nominated.   Family Therapy for the Large Business of the Year Award-For companies with 30 or more employees, also located in St. Croix County for a minimum of five years.  Perceptive Avionics for the Emerging Business of the Year Award-Open to companies headquartered in St. Croix County and operating for less than five years. Momentum West Yearly Awards: City staff proudly nominated Westfields Hospital and Northwood Technical College for the Momentum West 2024 Top Talent Initiative of the Year Award, recognizing their collaborative effort in developing the Medical Laboratory Education Center. This innovative project, is located on W. 8th Street in the former Associated Eye Building. Exciting news! We’re thrilled to announce that the project has won the award! Congratulations to Westfields Hospital and Northwood Technical College on this well- deserved honor. The awards ceremony will take place at UW-Stout on February 18, 2025, at 11:30 a.m. Ribbon Cutting: January, 16th, 2025 3:00 p.m. for Enhanced Eye Care located at 302 S. Knowles Avenue, formerly known as Eyecare Center of St. Croix. Page 2 of 2  MEMO Prepared for: Forward New Richmond Staff Contact: Beth Thompson Meeting: Forward New Richmond Committee - 15 Jan 2025 Subject: General City Updates - January BACKGROUND INFORMATION: The Forward New Richmond Committee has requested a section under consent agenda for "General City Updates" for each meeting. New updates are below: Library and Archway Residences According to the City Administrator, the new library is progressing on schedule and favorable to budget. Temporary electricity and heat have been set up in the underground parking ramp; the concrete floor will be poured in January. Pre-cast concrete work is complete, including the shell of the library and what will become the elevator, and most of the backfilling work is finished. Underground plumbing and steel studwork will begin in January. Hoeft Builders will be the general contractor for the interior buildout of the library; their scope of the work is scheduled to begin in April, however they are already placing orders for materials. Framing of the stand-alone townhome building started in mid- December and is progressing well. Materials are beginning to be delivered on the property for the framing of the apartments above the library. The apartments will be known as Archway Residences, and price information and floor plans are now available online at https://archway.threesixty.bz/. Some marketing signage will be installed soon along the fencing facing S Green Avenue and S Arch Avenue. Please visit the following link for updates: https://newrichmondlibrary.org/building/ The mixed-use building, shown above, will include the New Richmond Community Library and Jewelltown Roastery on the first floor, 69 residential units on the three floors above, and an underground parking garage. The townhome building, shown above, will consist of 9 units, each with an enclosed garage. Projects  New Richmond Storage - West Richmond Way All seven of the New Richmond Storage buildings have been constructed. The individual units will be available for lease. The site is located southeast of the intersection of West Richmond Way and Madison Avenue. Page 2 of 5   St. Croix Automotive - South Knowles St. Croix Automotive's new 8,250 square foot facility is under construction. The site is located west of Highway 65, and north of Culver's. The site is accessible via Hamilton Avenue, which was recently extended to Paperjack Drive. The extension of Hamilton Avenue is now open to the public. Page 3 of 5   New Richmond Garage Condos - Hwy 65 Two buildings have been constructed at the New Richmond Garage Condos site. The total project consists of 6 buildings, with a total of (60) 25' x 45' condo units. Individual units are available for sale. To learn more please visit https://www.gatewaystoragewi.com/. Page 4 of 5 Visit the 2024 Year in Review, which highlights projects, events and ribbon cuttings from 2024 at the following link: https://storymaps.arcgis.com/stories/4c79deccc8404a7caaf02afb34310c51 Page 5 of 5  MEMO Prepared for: Forward New Richmond Staff Contact: Beth Thompson Meeting: Forward New Richmond Committee - 15 Jan 2025 Subject: Affordable Housing BACKGROUND INFORMATION: As a reminder, FNR conducted a survey to identify its top priorities for discussion and action in 2025. Affordable housing emerged as the highest priority and we have had great discussions over the past few months. At the January meeting, the discussion on affordable housing will continue. City staff will present and lead a discussion on the findings from the recent survey sent to local builders and developers. Staff will also present ideas for next steps. Please review the attached summary of survey results in preparation for the meeting.  City of New Richmond Affordable Housing Survey Results Background The City of New Richmond Affordable Housing Fund survey was sent to approximately 30 developers in late December of 2024. Eleven responses were collected, which are summarized below. 1. What price range do you consider to be an “affordable” single-family home? Responses ranged from $150,000 to $400,000. $150-250k $200-250k $200-350k $250-275k $250-350k $300-350k $300-350k $350k $380k $395k $400k 2. Do you feel that New Richmond needs a greater supply of so-called starter homes which first- time home buyers can afford to buy? 10 participants responded “YES,” New Richmond needs a greater supply of starter homes. Yes Yes Yes Yes Yes Yes Yes Yes. All communities need "so-called" starter homes for first-time home buyers. Yes. At the time of this survey there are 17 homes in New Richmond currently for sale under $395k. Yes. I’m not sure starter home is issue. It’s more to do with zoning to allow a higher density in your zoning. By allowing only twin homes & 80’ lots there,it’s more to do with density.  3. Should the City of New Richmond consider adjusting zoning requirements in specific districts to encourage the development of more starter homes and/or affordable housing lots? 7 participants responded “YES,” New Richmond should consider adjusting zoning requirements. Yes Yes Yes Yes Yes Yes Yes Undecided That would be a start, but it’s more about a allowing a higher density in these areas by reducing the large size and allowing more units to be built Per Acre, using an attached product with Association connected HO. No. I feel lowering standards dimishes the quality of a community. That isn't the problem. New Richmond has already had great flexibility. Financing is restrictive. You can't fight the Fed. 4. If you were developing a new residential subdivision, would you support the dedication of lots within your development for affordable housing, if the City in turn adjusted requirements regarding parkland dedication, green space requirements, minimum setbacks, etc.? 6 participants responded “YES,” they would support the dedication of lots for affordable housing if the City adjusted other requirements. 4 participants responded “NO” or “N/A.” Yes Yes Yes Yes Yes Yes No No N/A N/A. We don't build single family homes. Consider this, waive all city fees on homes that meet the "affordable home" criteria, but the fees or a portion of the fees will be repaid when and if the origional home buyer sells the home. The appreciation should cover repayment of the fees. 5. If lots in your respective development were dedicated for affordable housing, would you likely construct an affordable home on the lots, or would you instead prefer another builder or non- profit organization (e.g. Habitat for Humanity) to build the home? 6 participants responded “YES,” if lots were dedicated for affordable housing they would construct the homes. Yes Yes Yes Yes Yes Yes No comment Habitat for Humanity does a great job. Habitat for Humanity would be happy to construct affordable housing if a lot was offered for free. Most builders would mandate construction of all homes to control the housing standards. There has to be specific areas designated for affordable housing. I don't think you can mix and match inside a normal market rate product.  6. From your perspective, as a developer, please identify the top two items you feel would be beneficial if the City could provide assistance or incentives to facilitate affordable housing: Reduction of Impact Fees; Reduction of Building Permit Fees Reduction of Impact Fees Reduction of Building Permit Fees; Affordable Housing TID Less Restrictive Zoning Requirements; Reduction of Impact Fees; Reduction of Building Permit Fees Less Restrictive Zoning Requirements; Reduction of Impact Fees Less Restrictive Zoning Requirements; I will reiterate the zoning ordinance needs to be adjusted to allow 6 to 10 unit areas Per Acre not everybody wants a single-family home Creation of an Affordable Housing TID; Reduction of Impact Fees Creation of an Affordable Housing TID; Reduction of Building Permit Fees Creation of an Affordable Housing TID All of the above A number of the above list would be benificial, but I think waiving fees and costs until the original buyer sells would be most effective. 7. Do you feel the inclusion of affordable homes in a respective development would make it more difficult to sell other market-rate homes in the neighborhood? Why or why not? Yes. I think you could mix and match same neighborhoods with density, but I would not necessarily like to have a tattoo Hoopfer humanity inside a market right develop. Yes. A lot of people that want higher end homes don't want the starter homes which is usually younger people around them. Yes, to a point. I think it depends more the architectural design and detailing than price of the affordable home. Hidden incentives that are paid back at a later date would help to keep homes "appear" to be of equal value. No. Zoning within blocks can create separate divisions. Newer affordable homes can also be built with an eye catching appearance that would potentially keep residents interested in living in that area. No. We have been looking to build an entire neighborhood full of affordable homes. No. The housing market needs diverse housing stock, everyone wins that win. No. Not if done strategically; having a blend of varying price points of homes is key to a healthy, diverse neighborhood. Potentially it would affect the other homes. Typically, people living in "affordable" housing don't always have the means to take care of the property the way it should be. Therefore, bringing down the value of the other homes in the neighborhood. Mixed income neighborhoods reduce this concern. It's a challenge to mix as buyers often look at neighboring homes and neighborhoods to establish value and look for similarly priced homes and supporting values. Although not a deal breaker it certainly will bring out the NIMBY crowd. 8. Would you prefer to see affordable homes distributed evenly across all new subdivisions, rather than concentrated in a single area of the city? Please provide your rationale. 6 participants responded “NO,” they would prefer to see affordable homes concentrated in a single area. Yes. When a neighborhood has no diversity, it becomes "that" neighborhood and creates labels and judgement. When a neighborhood has a mix of incomes and home pricing, neighbors begin to understand each other and diversity is welcomed. Statistics show by building this way, everyone benefits. Yes. This diversification is healthy; condensing all affordable homes in one area is not beneficial to the neighborhood or community at large. No. Not particularly, concentrated can create a very pleasant look to starter homes. The right builder and architect can create a pleasantly looking neighborhood with parks and sideways to give people the feeling of great living. No. I think they should be more looped together/keep the starters with the starters No. I look at a city Lake Woodbury that designated specific areas and does not mix and match. It works just fine. No. Developments should have comperable home values. You normally do not see a $300,000 home in a neighborhood of $500,000+ homes. Home values should be compable. No. Dedicated areas so home values don't affect the others in the neighborhood. Unless it is twin homes or similar. No. Because the cost of land and land Devlopment is so high, I think it would be hard, most builders will be trying to get top dollar from all homes, and with that you need to make sure all homes in neighborhood are similar to increase and keep value of homes being built and sold. Undecided on this but this obviously gives the best balance to the city when housing is mixed andspread across cthe different areas. It would be totally dependent on what an affordable home is. Apartment complex? Twin homes? You certainly wouldn't want to create a "poor" part of town. Either or, going it "evenly" is probably not realistic. 9. If the City of New Richmond was to provide a financial incentive of some type to encourage affordable housing, how much funding would be needed to truly make an impact for your business to afford to construct an affordable home? If we built modular homes, at cost plus a small markup, rather than having to sell at fair market value, an incentive would help build more affordable homes. 10% of build cost would be ideal. ($25-30K) Depends on what affordable housing pricing is. Right now if its under $300K it's hard to build there as lot prices, concrete, permits and labor rates have exploded. Guess it all depends on building permit pricing and what material pricing does. I do not believe there's enough funding that you could afford to do. I think it's really the diverse housing that needs to be looked at. I think you have establish a program where the funds would regenerate so they could be used over and over again. Money would be needed to help with the development of the roads, city sewer/water, that upfront development cost would make construction feasible with no additional money needed for the construction of the home. Roughly around 150k for each home. This would be very specific to each project. It could be as high as 20% of the project costs. TIF financing or, city carried and assessed back public improvements. Unknown - we don't build single family.  10. Do you have any other suggestions or comments about how the City could utilize its Affordable Housing Fund to best support affordable housing initiatives in the community? Close TID/TIF districts to make tax increment finance opportunities available. Reduce impact fees - these are now cost prohibitive. I think you need a partnership between all the parties that would be involved in affordable housing. The city, developers, builders, trades, vendors & suppliers, realtors, and lenders. There is so much "fat" in housing that developing a more efficient process would go a long way in making homes affordable. I believe the key to building a "affordable home" program is a program that builds a more efficient...somewhat like Habitat for Humanity...but without giving homes away. I liked the concept to lower the cost of homes, but giving homes away is not the answer. This is such a complex issue that is hard to discuss or debate in this format. Short answer: other communities have been successful with TID that refunds to the developer all property taxes paid for a set number of years in return for meeting affordability standards. It's great that you are surveying and taking action to solve a ginormous issue in the marketplace! Maybe start with a particular development that's city owned, offer attractive lot pricing and reduced permit fees to help a couple builders construct affordable homes. It's a tough market to build for right now as literally all costs have increased even builders borrowing costs have gone from 4% to 8%+. I would like to sit down with the housing department and really look at different location and housing options to bring a different architectural look to a neighborhood that attracts buyers to the location. No Help smaller local builder purchase land and develop the land with affordable housing the goal. Typically, a smaller company can build cheaper than a larger company because of less overhead. The idea of the smaller company building will keep the money and jobs locally. The smaller builder typically has to buy more expensive land that someone else developed driving their building cost up making the house less affordable. I would suggest that you call the Woodbury city mayor Anne Bert and see if she would come out and visit with your staff and just talk about the variety of housing that Woodbury has from section 8 up to multimillion dollar houses to town houses etc. how they are specific areas done in a confined PUD, which has worked well. The last 40 years there is a variety of housing in that area from affordable, but they have very very liberal sewing guidelines, which allows for small lots. I build million dollar houses on 65 for Lots and at the average lot size and then we have areas where there's back- to-back townhouses where you get 8 to 10 units per acre two blocks away from million dollar houses. I think I've made my point that I believe that it should be done in zoning and open up. That is a more liberal ability. Also, one thing that I would consider is shrinking the size of your streets. It might not be a big deal today, but in 20 and 30 and 40 years, the width of your streets and 100 foot. Lots is going to make it for very expensive when it's time to rehabilitate those streets. Not that would be perfect, but they do allow a variety of housing. I would just drive through the neighborhood of the construction going on and look at the variety of housing that allows people that work at target to own a townhouse in Woodbury or a school teacher New Richmond does not have any of this. You either have to rent or buy a $450,000 single-family house or a twin home Frankly there samePrice. St Croix Homes has been looking into trying to build affordable homes in New Richmond. We can not make the dollars work due to the high cost to develop the streets, sewer and water, and the high cost of building permits and fees. For a similar house in New Richmond our permit fee was over $10,000, we recently (in 2024) built a similar house in Amery WI and the permit and fee's were $2400. Those are some of the obstacles we have come across when looking into building affordable homes. We would be willing to meet with the City to discuss further.  MEMO Prepared for: Forward New Richmond Staff Contact: Beth Thompson Meeting: Forward New Richmond Committee - 15 Jan 2025 Subject: Priority #2 - Industrial Park BACKGROUND INFORMATION: For the January meeting, I’d like to begin with a brief overview of land use and zoning as an introduction to the process of making recommendations for a potential new Industrial Park. This initial discussion will be concise, with more detailed conversations and additional information to follow in the coming months. Key Resources for Review: Comprehensive Plan - please refer to Chapter 3, which discussed land use and Chapter 4, which discusses economic development Future Land Use Map - current land use map for your review Zoning Map - current zoning map for your review City staff will provide a general overview and address initial questions during the meeting. Additionally, we will outline key questions to prepare for the February meeting.