2023 Community Development Annual Report

Letter from the Director

Dear Mayor Case, City Council, Commission Members and City Manager,

It is my pleasure to share the Community Development Department 2023 Annual Report with you. This report highlights the strides that have been made toward implementing City goals over the past year. I know I speak for all members of the Community Development staff when I say it is a privilege to work alongside Eden Prairie’s elected and appointed officials to maintain and grow the exceptional standards that are synonymous with Eden Prairie.

Investment in Eden Prairie has steadily continued in 2023 with development and redevelopment projects. Through these projects, the City has increased options for lifecycle housing and affordability, supported job creation and enhanced retail opportunities to serve the needs of Eden Prairie residents. Efforts to support the business community remain a core function. Community Development staff members have been involved with several initiatives on this front, including Chamber of Commerce events, collaboration with the Eden Prairie School District to support entrepreneurial endeavors and promoting Eden Prairie as an employment destination.

Collectively these functions demonstrate the City’s commitment to quality which is reflected in the continued growth of the City’s market value. In 2023, Eden Prairie’s estimated market value increased to $14.37-billion. Assessing staff members engaged with property owners throughout the City to address questions on property valuations and the assessment process.

Since the early 2000s, the Housing and Community Services Division has been officed in the lower level of Eden Prairie Center. In 2023, this team relocated to City Center. This move increases access for Eden Prairie residents that are served by Housing and Community Services staff members for employment, housing and other social services support.

I am incredibly proud of the successes of the Community Development staff. They are dedicated to implementing the City’s vision and always looking toward the future to maintain the qualities that make Eden Prairie the remarkable community it is. In their work, the focus is always the people who we serve.

The support you provide to Community Development is extremely appreciated. We look forward to a year of continued collaboration and success in 2024.

Sincerely,

Julie Klima Community Development Director

Mission

The Community Development Department supports the long-term vitality of the City through land-use planning and development review activities, maintaining an environment that fosters local businesses, addressing housing and community service needs, and providing responsible property valuations.

CITY OF EDEN PRAIRIE

City Council

Lisa Toomey

Mark Freiberg

Mayor Ron Case

PG Narayanan

Kathy Nelson

City Department Structure

Community Development Administration Parks and Recreation Fire Police Public Works City Manager

Eden Prairie is a “Plan B” city, meaning it has a council-manager government where all policy and legislative decisions are the responsibility of the City Council. The Council delegates all administrative duties to the City Manager.

Community Development Structure

Community Development determines department priorities based on direction from the City Council.

Economic Development Assessing Housing and Community Services Planning

Community Development Director

Community Development Staff

City Commissions

There are seven City commissions that advise the City Council and perform work on behalf of the Council. Community Development provides staff liaisons to four of those commissions:

Local Board of Appeal and Equalization

The Board of Appeal and Equalization meets annually to review resident appeals of property valuations and determines the correct values or classifications. Jonathan Thompson, City Assessor, is the liaison to this group.

Heritage Preservation Commission (HPC)

The HPC advises the City Council on safeguarding the heritage of Eden Prairie through the preservation of sites and structures that reflect significant elements of the City’s history. Beth Novak-Krebs, Senior Planner, serves as the HPC liaison.

Human Rights and Diversity Commission (HRDC)

The HRDC advises the City Council on matters of diversity, civil and human rights, and the Americans with Disabilities Act. Megan Yerks, Community Services Coordinator, was the HRDC liaison in 2023.

Planning Commission

This commission provides a preliminary review of development proposals, land -use requests and zoning ordinance amendments, and makes recommendations to the City Council. Jeremy Barnhart, City Planner, is the Planning Commission liaison.

Community Development Team

Planning

The Planning Division works with developers, community members and organizations for long-range land-use planning and current development projects. This team is also responsible for maintaining the City’s comprehensive plan and zoning ordinances, administering sign and telecommunication permits, and providing support for the Planning Commission and Heritage Preservation Commission.

Housing and Community Services

The Housing and Community Services Division assists with the production and preservation of affordable housing options. They provide support for residents seeking safe, decent housing they can afford in places they want to live. The HCS team helps people make repairs to their homes, buy homes for the first time, find jobs and connect with services that can help them live better lives. HCS also provides the staff liaison to the Human Rights and Diversity Commission.

Jeremy Barnhart City Planner

Beth Novak-Krebs Senior Planner

Sarah Strain Planner II

Ben Schneider Planner I

Amy Mitchell Administrative Assistant

Jonathan Stanley HCS Manager

Jeanne Karschnia Housing Services Coordinator

Mohamed Duale Community Services Representative

Megan Yerks Community Services Coordinator

Assessing

The Assessing team estimates the value of properties in Eden Prairie. Those values are used as a basis for property taxes. The City Assessor is also the liaison to the Local Board of Appeal and Equalization.

Economic Development

The Economic Development Division is responsible for ensuring Eden Prairie continues to be a vibrant, thriving city where people want to live and do business. The Economic Development Manager provides support for and communicates with the local business community.

Jonathan Thompson City Assessor

Dave Buswell Assessing Supervisor

Jody Carlson Assessing Technician

Jim Wise Appraiser III

Alex Oldefendt Appraiser II Zak Rexford Appraiser I

Callie Saumweber Appraiser I

David Lindahl Economic Development Manager

How We Engage With the Community

Words In Action Contest submission

Almost every task we perform involves interaction with the Eden Prairie community, whether it’s through a Commission meeting, helping a landowner with questions about uses for their property, visiting a home to assess its value, or coordinating the annual Words In Action Contest as part of Black History Month. Keep reading to learn about a few of the ways Community Development connects with residents and businesses.

The Planning team provides easy access to information related to development projects. The Development Projects Map includes information about proposed, approved and in-progress development in Eden Prairie. The Planning team also updates the Development Dashboard, which provides a higher-level view of development over a longer period of time.

Economic Development hosted several bus tours throughout the year for residents, business leaders and students. The tours are always well -received they’re fun, informative and a great way to showcase how Eden Prairie is thriving.

Last year the Housing and Community Services staff managed over $370,000 in Community Development Block Grant (CDBG) funds allocated to the City by the federal government to provide loans to residents with basic housing needs. This entailed time spent with residents to ensure eligibility and complete paperwork. The loans help with significant housing repairs, accessibility upgrades so seniors are able to continue living in their homes or down payments for first-time homebuyers. Staff members are also responsible for making sure the City is in compliance with the guidelines that come with CDBG funds.

Every year the Assessing team inspects 20% of properties in Eden Prairie. Last year that meant visiting 5,069 properties. Of those visits, 685 (14%) involved interior inspections, meaning the owners made an appointment to have an appraiser come inside the home or business to ensure the information on file for their properties is as accurate as possible. The other 86% of visits are exterior- only inspections.

June 2023 Economic Development Bus Tour

An Eden Prairie appraiser on his way to a site visit.

Planning Accomplishments

Development Projects

Planning Division staff members worked on 10 development proposals that were submitted to the City in 2023. The process for each project varies, but it usually takes several months and involves reviewing plans, gathering feedback from other departments, providing feedback to the developer, preparing to bring the project before the Planning Commission and City Council for approval, and then negotiating the development agreement.

Some of the larger projects submitted in 2023 included Baker Road Assisted Living, Bush Lake Pet Hospital, Kinsley Townhomes by Pulte, Mr. Car Wash, Crew Car Wash and Aldevron.

Additional information about these and other development projects can be found on the City’s Development Projects Map.

Baker Road Assisted Living

Kinsley Townhomes

Crew Car Wash

Aldevron

Code Amendments Permits

Planning staff members regularly Planning staff members review City Code to ensure it review applications reflects market conditions and for signs and City goals. In 2023 major code telecommunications amendments were prepared for a equipment to ensure they new Mixed Use Zoning District, a meet City standards before new Flex Service Zoning District, issuing permits. There were reformatting Chapter 11 of the 73 sign permits and seven City Code and parking regulation telecommunications permits revisions. All amendments were issued in 2023. approved by City Council.

Variances

A variance is a request from a property owner to allow development standards that existing City zoning ordinances would typically restrict. The Planning Division received and reviewed three variances in 2023 a request for a second freestanding sign at 7475 Flying Cloud Drive, shoreland setbacks and lot coverage for replacing retaining walls at 7953 South Bay Curve and a rear yard setback at 15201 Birch Island Road.

Heritage Preservation Commission (HPC)

The HPC promotes preservation of Eden Prairie’s history. In 2023, HPC members kicked off an oral history project titled “Reflections on the 1968 Comprehensive Plan,” began the process of relaunching the Heritage Sites Recognition Program and worked on interpretive panels for the Flying Red Horse monument. The staff liaison to the HPC also manages the historical books and retired street sign fundraisers available year-round at edenprairie.org/HPCFundraisers.

Rendering from a 2023 sign permit application

Housing and Community Services

Accomplishments

Housing Policy

HCS staff members worked diligently in 2023 to ensure Eden Prairie residents continue to have access to fair and stable housing. Part of that work was researching and drafting a Tenant Protection Ordinance that was approved by City Council in December. This ordinance put rules in place that purchasers of multi -family housing must follow to ensure current tenants are

Community Services

HCS offers walk-in support for residents who need assistance with employment applications, unemployment paperwork and Housing Choice Vouchers/Section 8. Staff members also help with referrals to appropriate social service agencies for housing, immigration and other concerns. Since a majority of requests from residents are for help finding employment, staff members continue to foster relationships with businesses such as Costco, Danfoss and Flagstone Senior Housing to maintain a “pipeline” for employment referrals.

Sterling Ponds is an example of a potential NOAH property

Mohamed Duale helping a resident

Housing and Assistance Programs Administered by HCS

First-Time Homebuyer Loans

Total Amount Spent

No-interest, deferred loans for down payment assistance. In 2023, five first-time CDBG $30,000 homebuyers received loans to purchase affordable properties. TIF $35,000

Housing Rehabilitation Loans

Total Amount Spent

No-interest, deferred loans for homeowners to maintain their property. Typical CDBG $200,000 repairs include HVAC, water heaters, doors, windows, roofing and siding. Loans are TIF $110,000 forgiven after 20 years. In 2023, 43 families received loans.

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. In 2023, 10 CDBG $50,000 senior households received grants to make emergency repairs.

Homes Within Reach/WHAHLT

Total Amount Spent

Two homes were purchased by Homes Within Reach/WHAHLT for low/moderate CDBG $80,000 income homebuyers in 2023

Nonprofit Rehab Grants

Total Amount Spent

Provided rehab grants to local nonprofit for structural repairs. CDBG $10,000

Funding for Community Organizations

Eden Prairie receives annual Community Development Block Grant (CDBG) funds from the federal government. HCS ensures compliance with regulations for these funds and determines distributions to local organizations. In 2023, $89,000 in CDBG funds granted to local nonprofits helped 39 seniors with maintenance services so they could continue to live in their homes, 21 families with rent/mortgage assistance, 13 residents with car repair services and six families with child care costs. In addition to CDBG, the City grants over $250,000 from the General Fund to local organizations that provide services to residents.

Human Rights and Diversity Commission (HRDC)

The HRDC acts in an advisory capacity to the City Council on matters of diversity, civil and human rights, and the Americans with Disabilities Act. In 2023, the HRDC coordinated the Human Rights Awards and the Black History Month Words in Action Contest and organized the Human Library event for PeopleFest! A Community Celebration of Culture.

HRDC members at PeopleFest!

Assessing Accomplishments

Assessing 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 active parcels, physically inspect existing properties once every five years, estimate value for all new construction and appraise newly platted property.

In 2023 Assessing staff members completed work in preparation for the 2024 assessment. The tables below compare 2021-2023 assessment information gathered by Assessing staff.

Local Board of Appeal and Equalization (LBAE)

This Board consists of five members appointed by City Council who hear valuation appeals by individual property owners and determine the correct value or classification. In 2023, 380 inquiries were received. Assessing staff members completed 97 reviews prior to the Board meeting, including 89 appeals with recommendations to the Board.

Market Value Assessments

Assessing maintains records for every property in Eden Prairie. Adjustments are made to market values based on actual real estate sales of comparable properties from the past year and physical inspections of existing properties. Additional market value estimates are made for building additions, remodeling and other improvements.

The Assessing team coordinates the mailing of valuation notices every year to individual property owners, typically in early March. The notices also inform property owners of their classification. Various amounts may appear on the notice including:

• Estimated market value

• New improvement value

• Veterans exclusion

• Homestead market value exclusion

• Taxable market value

2023 Homeowner Property Tax Allocation

Economic Development

Accomplishments

Economic Development touches many parts of the City’s work to encourage growth, foster the creation of jobs, and ultimately ensure that residents and businesses have a high quality place to live and work.

Economic Development staff coordinated several programs in 2023. “Breakfasts with the Mayor” take place a few times a year with a small group of business leaders to give the Mayor and City leaders a chance to gather suggestions and feedback. Individual and Greets” with local business leaders have been occurring since 2004. These are meant to help City leaders learn how they can make doing business in Eden Prairie easier. The Mayor and City leaders met with eight Eden Prairie businesses in 2023. A half- day Realtor’s Forum was also organized in 2023. This event occurs every three years and is always well attended. It educates realtors on current development and market conditions in Eden Prairie.

2023 Meet and Greet

Dave Lindahl, Economic Development Manager, can often be seen at community events or hosting multiple bus tours during the year to showcase the City’s economic growth, development and redevelopment for residents and businesses. In 2023 he presented about Eden Prairie’s economic development to the Eden Prairie Rotary, Chamber of Commerce and staff from Edina Realty. He also organized and hosted a lunch event for the Chamber of Commerce and DEED Deputy Commissioner

Dave often participates in educational events for Eden Prairie High School. He narrated several bus tours for Capstone classes and one for a Civics class. He organized a tour of City Center with overviews of each department for the same Civics is a regular students.

Economic Development has several other important but lesser known responsibilities such as transportation and infrastructure advocacy, and managing leases for City- owned buildings, like Chuck & Don’s, Smith Coffee & Cafe and Eden Prairie Montessori.

Captain Chris Wood with students during the Civics In Action Tour

Race Equity Initiative

While each of the six City departments Administration, Community Development, Fire, Parks and Recreation, Police and Public Works are responsible for the integration of equity and inclusion principles into their work plans, Community Development coordinates the City’s internal Race Equity Action Team (REAT), which is comprised of several staff members from every City department.

In 2023 REAT focused on publishing progress toward implementing recommendations from the Race Equity Report on the City website. The community can see the progress at edenprairie.org/DEIProgress.

2023-2027 Community Development Strategic Plan

The Strategic Plan is a five -year vision of the priorities Community Development is working toward. 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 full 2023-2027 Community Development Strategic Plan can be viewed at edenprairie.org/CommunityDevelopment .