2022 Eden Prairie Community Development Annual Report

Page 1

Table of Contents Organizational Chart 3 Note from the Community Development Director 5 Community Development Overview 6 Board and Commissions 7 Divisions Planning 8 Housing and Community Services 15 Assessing 23 Economic Development 29 2023–2027 Community Development Strategic Plan 32 Community Development 2022 Annual Report Page 2

Organizational Chart

(As of September 2022)

Residential/Commercial

Residential/Commercial

Residential

Residential

Dave Buswell Assessing Technical Operations Supervisor Rick Getschow City Manager Julie Klima Community Development Director Jonathan Thompson City Assessor David Lindahl Economic Development Manager Jonathan Stanley Housing and Community Services Manager Jeremy Barnhart City Planner Jody Carlson Assessing Technician Jim Wise Appraiser III Alex Oldefendt Appraiser II Jordan Crowe Appraiser I Zak Rexford Appraiser I Jeanne Karschnia Housing Services Coordinator (PT) Megan Yerks Community Services Coordinator (FT) Mohamed Duale Community Services Technician (PT) Beth Novak-Krebs Senior Planner Sarah Strain Planner II Ben Schneider Planner I Amy Mitchell Administrative Assistant Amanda Pellowski Administrative Assistant
Community Development 2022 Annual Report Page 3

Community Development Staff

Community Development 2022 Annual Report Page 4
Not pictured: Megan Yerks and Amy Mitchell

A Note from the Director

I am excited to share this overview of the Community Development Department achievements in 2022. As you browse the pages of this document you will see the meaningful impact that the Community Development team has made in Eden Prairie in the past year.

Review of development projects has resulted in current and future investment in the City. Project sizes vary from smaller-scale enhancements, such as building additions or façade improvements, to more sizable new construction projects. Commercial and industrial developments provide service and employment options within the City. The approval of new residential units will serve families at various affordability levels and create further opportunities for Eden Prairie residents to age within the community. In addition to the production of affordable housing, preservation of existing affordable housing that serves residents across income levels remains a priority.

With the City Council’s acceptance of the Race Equity Report, focus has shifted to implementation. A Race Equity Action Team (REAT) has been established and is making progress on the recommendations provided in the report.

Support of local businesses through various engagement activities continues to be a focus, particularly as businesses rebound from COVID. Additional economic development efforts include an emphasis on engaging with local entrepreneurs.

The City saw unprecedented property value increases in 2022. The Assessing staff worked diligently to answer property owners’ questions and help in understanding how increases might affect them.

The entire Community Development team greatly appreciates your support. We look forward to the work we will do together in 2023 to ensure Eden Prairie remains an outstanding community for residents and businesses.

Sincerely,

Community Development 2022 Annual Report Page 5

Community Development

Mission

Support the long-term vitality of the City through: land-use planning and development review activities, maintaining an environment that fosters local business, addressing housing and community service needs, and providing responsible property valuations.

Responsibilities

Community Development consists of four divisions that are responsible for a wide range of services. Details about the specific responsibilities of each division are provided throughout this report. In addition to coordinating the four divisions, the Community Development Director represents the department at City Council meetings, negotiates development and financial agreements, manages large redevelopment projects, collaborates with other agencies, manages the department’s budget and Capital Improvement Plan funding, and promotes positive legislative outcomes.

Community Development 2022 Annual Report Page 6

City Board and Commissions

Board/Commission

Board of Appeal and Equalization

Staff Liaison Schedule

Jonathan Thompson

April and May

Heritage Preservation Commission (HPC)

Beth Novak-Krebs

Third Monday of the month

Human Rights and Megan Yerks

Second Thursday of the month Diversity Commission (HRDC)

Second and Fourth Monday Planning Commission Jeremy Barnhart of the month

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The Planning Division works with developers, community members and organizations as a part of long-range land-use planning and current development projects. The Planning Division is also responsible for maintaining the City’s comprehensive plan and zoning ordinances.

Planning Overview

Comprehensive Planning

The Comprehensive Plan is the City’s long-range planning document that guides development and policy for a 20-year horizon. The Comprehensive Plan is updated every 10 years.

Ordinances

The City Code includes ordinances that provide a variety of permitted uses and performance standards such as setbacks, building height, etc.

Development Review and Variances

Businesses and property owners submit development or variance proposals to the City. Staff members review these applications and provide recommendations to the Planning Commission and City Council.

Design Guidelines

The Design Guidelines were established to support high-quality development by defining the expectations of building and site design.

Sign Permits

Telecommunications Permits

Staff Liaisons to the Planning and Heritage Preservation Commissions

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Planning Staff

(As of September 2022)

Beth Novak-Krebs Sarah Strain Ben Schneider
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Amy Mitchell Senior Planner Planner II Planner I Administrative Assistant

Received and reviewed 20 development projects. Notable examples include:

Suite Living of Eden Prairie: A 32-unit assisted living and memory care facility.

Singletree Façade Remodel: The former Jake’s restaurant is undergoing a significant remodel, splitting the large space into 3 smaller spaces for future restaurants and other services.

Schulman Addition: A 2-lot single-family subdivision.

GTS Housing: Includes 2 apartment buildings with a total of 425 units, 25% of which will be affordable.

Chick Fil A: A new fast food restaurant in the Flying Cloud Commons development.

Suite Living
Singletree Façade GTS Housing
Community Development 2022 Annual Report Page 10

Development Project Locations

2022 Development Map

• Projects requiring public review IDENTIFIED IN RED.

• Additional projects may have been administratively reviewed.

• The applications below represent only those received in 2022.

Project # Project Name

2022-02 Suite Living of Eden Prairie

2022-03 Tricam Industries

2022-04 12365 Singletree Lane Façade Remodel

2022-05 Eden Prairie Multi-Family

2022-06 6511 Rowland Road DA Amendment

2022-11 Kiwatchi Land Development

2022-12 Wallace Industrial Façade Improvements

2022-13 Dairy Queen

2022-14 Round Lake Park

2022-16 Holiday Inn Express Pool Addition

2022-19 Grace Church Second Addition

Community Development 2022 Annual Report Page 11

Code Amendments, Variances and Signs

Approved 3 major Code Amendments:

• Temporary Sales Events

• Signs

• Exterior Building Materials

One variance reviewed in 2022: 6939 Barberry Lane: Front yard setback to build a detached garage

Sign Permits: 66 issued as of Dec. 21, 2022

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The Planning Division reviewed 18

telecommunication applications in 2022:

• 17 antenna maintenance and upgrade applications; the administration involves coordinating with the Engineering Division, Fire Department, and in some cases Water Treatment Plant staff

• 1 new co-location site added (Dish)

Review process summarized:

• Review by the Planning Commission and City Council of any new telecommunications tower over 80 feet

• Administratively review any new telecommunications tower under 80 feet on private or public property

• Administratively review maintenance service for any telecommunications tower on private or public property

• Review any lease agreement between the City and telecommunications companies

Telecommunications
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Commission Accomplishments

Planning Commission

The Planning Commission provides a transparent, open and balanced review of development proposals and land use requests, both public and private. These applications are reviewed based on the City’s Strategic Plan, Comprehensive Guide Plan and the City’s land use. The staff liaison for the Planning Commission is Jeremy Barnhart.

The Planning Commission:

• Reviewed multiple development and redevelopment projects

• Reviewed 1 variance application and 5 City Code amendments

• More details on these projects can be found on pages 10 and 11

Heritage Preservation Commission

Residents can purchase retired street signs as a nostalgic memento of Eden Prairie. As of November 2022, $4,140 was raised for the year, which can be used for future historic preservation and education.

An Oral History project titled “Eden Prairie Remembers its Mid-Century Transformation” was initiated by the Eden Prairie Historical Society. The oral histories are being transcribed and edited. Concurrently, staff from the Community Development Department worked with staff from the City’s Information Technology Department and developed a website to host the edited interviews. The site was launched in 2022 and is named “Eden Prairie Has Tales to Tell.” Interviews are added as they are completed. The entire process has been a cooperative effort between the Historical Society, the City and the Heritage Preservation Commission (HPC).

The HPC is working on another oral history project titled “Reflections on the 1968 Comprehensive Plan” with the goal of adding the interviews to the website.

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The Housing and Community Services Division assists residents in finding safe, decent housing they can afford — in places where they want to live. HCS also helps people buy and make repairs to their homes, find jobs and connect with services that can help them live better lives.

Housing and Community Services Overview

• Affordable housing creation and preservation

• Community strengthening

• Community Services, Community Development Block Grants (CDBG) and Tax

Increment Financing (TIF) programs

• Home programs — first-time homebuyer and home rehab loans, senior repairs

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Housing and Community Services Staff

Mohamed Duale Jeanne Karschnia Megan Yerks Community Services Technician Housing Services Coordinator
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Community Services Coordinator (Part-time) (Part-time)

Housing and Community Services Accomplishments

• Created the Affordable Housing Trust Fund to provide a flexible funding source for housing activities

• Managed and participated in creation and administration of the Race Equity Action Team to further implementation of the Race Equity Report

• Provided critical funding through PROP to protect renters and homeowners from eviction or foreclosure due to lingering COVID impacts

• Continued to support Eden Prairie residents with employment and unemployment insurance applications as well as County, Housing Choice Voucher / Section 8 and other forms

• Inventoried the stock of Naturally Occurring Affordable Housing (NOAH) for Eden Prairie

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Community Strengthening

• Housing Choice Voucher / Section 8 wait list application assistance event, including PROP volunteers, aiming to fulfill the City’s commitment to attaining affordable housing

• Community engagement events such as the REI Town Hall and Human Library

• Property Managers Collaborative – launch of quarterly newsletter and resuming of in-person meetings

• Human Services and CDBG Public Services grant awards and administration activities serving youth, families and seniors

Human Library Event
Community Development 2022 Annual Report Page 18
REI Town Hall

Human Rights and Diversity Commission Accomplishments

• Assistance with completion of the Race Equity Report, presentation to and acceptance of report by City Council, role in beginning implementation

• Completion of 2023 Work Plan

• Strong involvement in planning and executing community engagement activities such as:

- PeopleFest!

- Words in Action Contest

- Race Equity Initiative (REI) Town Hall

Community Development 2022 Annual Report Page 19
HRDC members at the presentation of the Race Equity Report PeopleFest!

Employment and Unemployment Services

• Unemployment assistance requests down significantly while demand for employment services remained strong

• Established new working relationships with the following businesses

→ E.A. Sween

→ Emerson in Eden Prairie, Shakopee, and Chanhassen

→ SICO

→ Michael Foods in Chaska

→ Lund’s Food Holding Facility in Eden Prairie

→ City of Eden Prairie

→ Costco

→ Metro Transit

→ Flagstone Senior Housing

→ US Postal Service

→ ABM Industries

→ Danfoss Manufacturing

Community Development 2022 Annual Report Page 20

Community Services Funding

PR~P TREEHOUSE

Community Development Block Grants (CDBG) made to:

• Senior Community Services for the Household & Outside Maintenance for Elderly (HOME) program that helps elderly residents continue to live independently by providing maintenance services. Served 34 seniors (spent $18,000 CDBG)

• People Reaching Out to People (PROP) which has three programs focused on low/moderate income households that received CDBG funding in 2022: Homeless Prevention served 14 families (spent $30,000 CDBG); Car Repair served 13 residents (spent $15,000 CDBG); Child Care served 2 families (spent $4,000 CDBG)

COVID assistance to PROP:

• CDBG-CV grants to provide rent/mortgage assistance to residents affected by COVID. Served 17 households (spent $63,000 CDBG-CV)

Human Services Grants:

• $147,825 in City General Fund monies provided to 10 nonprofit organizations serving Eden Prairie

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Housing and Assistance Programs

CDBG funding and Pooled TIF funds are used to provide zero-interest, deferred loans to first-time homebuyers and to homeowners for housing repair and replacement, or to help seniors stay in their homes. CDBG funds are also used to help non-profits that provide services to our residents.

First-Time Homebuyer Loans

No-interest, deferred loans used for down payment assistance. In 2022, two first-time homebuyers were able to purchase affordable properties in Eden Prairie with help from this program.

Housing Rehabilitation Loans

Total Amount Spent CDBG — $15,000 TIF — $10,000

No-interest, deferred loans for homeowners to maintain their properties. Typical housing Total Amount Spent repairs include HVAC, water heaters, doors/windows, roofing and siding. Loans are forgiven

CDBG — $150,000 after 20 years. Twenty-six families received loans in 2022 to make structural improvements TIF — $200,000 to their homes.

Emergency Repair Program

Provides loans to seniors for emergency repairs including HVAC, water heaters and Total Amount Spent handicap-accessible upgrades. Loans are forgiven after three years. Three senior CDBG — $15,000 households received grants to make emergency repairs to their properties.

Homes Within Reach/WHAHLT

Total Amount Spent

One home was purchased by Homes Within Reach/WHAHLT for a first-time homebuyer. CDBG — $80,000

Nonprofit Rehab Grants

Provided rehab grants to two nonprofits for structural, mechanical and handicapaccessible upgrades.

Total Amount Spent

CDBG — $70,000

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The Assessing team estimates the value of properties in Eden Prairie. Those values are used as a basis for property taxes.

Assessing Overview

• Annual assessment of 21,959 taxable parcels and 179 personal property accounts

• Facilitate annual Local Board of Appeal and Equalization meetings

• Estimate value of new improvements

• Resolve Tax Court appeals

• Process homestead applications and administer special programs

• Support services to City divisions:

- Provide property data and reports as requested

- Prepare projections for budget planning and property tax impacts

Jonathan Thompson City Assessor
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Assessing Staff

(As of September 2022)

Dave Buswell Assessing Technical Operations Supervisor Jody Carlson Assessing Technician Jim Wise Appraiser III Alex Oldefendt Appraiser II Jordan Crowe Appraiser I
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Zak Rexford Appraiser I

Assessing Accomplishments

• Completed the 2022 assessment for 22,826 active parcels, with a total market value of taxable parcels at $13.44-billion

- A year of historic growth in value for residential properties

• Reviewed 295 properties for the Local Board of Appeal and Equalization

• Resolved 116 formal petitions through the Minnesota Tax Court involving approximately $1.689-billion of estimated market value

• Processed over 1,170 homestead applications

Homestead Application Form
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Market Value Assessments

2022 Homeowner Property Tax Allocation

The Assessing Division maintains records for every property in Eden Prairie. Adjustments are made to the market values of most properties based on actual real estate sales of comparable properties from the past year. Roughly 20% of existing properties are also physically inspected each year and updates are made based on the results of these inspections. Additional market value estimates are made for building additions, remodeling and other improvements to property.

Each spring, valuation notices are mailed to individual property owners, typically in early March. The notices also inform owners of their classification. Various amounts may appear on the notice including:

• Estimated market value

• Value deferrals

• Veterans exclusion

• Homestead market value exclusion

• Taxable market value

School District 34% Hennepin County 31% City of Eden Prairie 27% Other 8% Community Development 2022 Annual Report Page 26

Annual Valuations and Classifications

The Assessing Division is responsible for establishing valuations and classification of all real estate properties in the City for purposes of taxation.

By State law, the City must annually adjust values of all taxable parcels, physically inspect and review existing properties once every 5 years, estimate value for all new construction and appraise newly platted property.

In 2022, Assessing Division staff completed work in preparation for the 2023 assessment. The tables to the right compare 2020-2022 assessments.

Payable 2020: 90

Payable 2021: 96

Payable 2022: 85

Total Real Estate Parcels Taxable Real Estate Parcels 2020: 22,821 2020: 21,962 2021: 22,824 2021: 21,956 2022: 22,826 2022: 21,959
Estimated Market
Taxable Parcels Average Value per Taxable Parcel 2020: $11,432,806,600 2020: $520,572 2021: $11,802,291,800 2021: $537,543 2022: $13,435,669,100 2022: $611,853 Tax
Filed Median Value Single Family Detached Housing
2020: $415,800
Total
Value
Court Appeals
2021:
$430,400
2022:
Community Development 2022 Annual Report Page 27
$513,200

Board of Appeal and Equalization

The Board of Appeal and Equalization has statutory responsibility to review estimated market values and property classifications in the City. Its function is to hear valuation appeals by individual property owners and determine the correct value or classification. The Board consists of five members appointed by the City Council. City Assessor Jonathan Thompson serves as staff liaison.

708 inquiries were received in 2022, of which 566 involved questions regarding estimated market value:

• 295 reviews were completed by Assessing Division staff prior to the Board meetings

- 35 were resolved with no change to value

- 43 were resolved with a reduction in value

• 217 appeals were reviewed by staff with a recommendation to the Board of Appeal and Equalization

- For 130 appeals, the appraiser recommended reduction in value and the appellant agreed

- For 87 appeals, the appraiser recommended no change or a reduction to value and the appellant disagreed

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Economic Development Overview

• Liaison to the local business community focusing on retention and communication

• Development and redevelopment promotion

• City real estate leases

The Economic Development Division is responsible for ensuring that Eden Prairie continues to be a vibrant, thriving city where people want to live and do business.

• Transportation and infrastructure advocacy

• Chamber of Commerce liaison

Community Development 2022 Annual Report Page 29

Economic Development Accomplishments

• Coordinated RFP process and hiring of Avison-Young brokerage services to list vacant City Center space

• Completed seventh City business survey and “After Hours” presentation and networking event at Fat Pants Brewing Co.

• Completed Three Rivers bridge painting on Valley View Road and facilitated the City monument entry sign on the Three Rivers bridge over Hwy 212

• Engaged with Hennepin County for potential LRT trail funding

• Collaborated with Building Inspections Division for the demolition of Burger King buildings

• Various community engagement presentations including Edina Realty, EP AM Rotary and SWLRT Corridor Management Committee

Community Development 2022 Annual Report Page 30

• Participated in Eden Prairie Center master planning meetings with owner representatives

• Helped organize “Make it Manufacturing” job event at City Center

• Coordinated the Mayor’s business roundtable meetings in collaboration with the Chamber of Commerce

• Guided Economic Development bus tour for First Western Bank executives

• Participated in EP High School career expo

• Created presentation and coordinated business town hall meeting at Star Bank

• Annual Chamber golf and networking event

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2023–2027 Community Development Strategic Plan

The Strategic Plan is a vision of the priorities Community Development staff will work toward in the next 5 years. It is meant to inform the public of key projects and initiatives, communicate funding sources, potential redevelopment and development sites, and foster coordination between Community Development, other departments and the City Council.

The prior Strategic Plan was approved in 2017 and branded as the Strategic Plan for Housing and Economic Development. The 2023–2027 Strategic Plan was revised to include the broader efforts of the entire Community Development Department. Additional details were added focusing on the Race Equity Initiative, development and redevelopment opportunity sites, and funding sources for housing and economic development initiatives.

The 2023–2027 Strategic Plan can be viewed at:

edenprairie.org/CommunityDevelopment

Community Development 2022 Annual Report Page 32

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