MANASSEH IS GOING TO TAKE CARE OF THAT FOR US. COUNCILMEMBER LOWMAN COUNCIL MEMBER CARTER I COUNCIL MEMBER DE LA SANDRA I COUNCILMEMBER
RIVAS COUNCILMEMBER NELSON I CONSIDER ROBERTSON AND MAYOR BUSSE I MOTION CARRIES SEVEN ZERO THANK YOU VERY MUCH. SIMILARLY I WILL MAKE THAT
SAME MOTION FOR THE PORT AUTHORITY TO HAD TO APPROVE TONIGHT'S AGENDA SECOND BY COUNCIL MEMBER NELSON THANK YOU VERY MUCH.
ANY FURTHER DISCUSSION ON THIS? IF NOT WE AGAIN WILL HAVE TO DO A VOICE VOTE AND KEVIN'S GOING TO DO THAT. UH, COMMISSIONER NELSON I'M A
COMMISSIONER LANCE. I COMMISSIONER HUNT HIGH COMMISSIONER SANTANA HIGH COMMISSIONER BASI I AND
COMMISSIONER ERICKSON PRESIDENT ERICKSON IS NOT HERE . >> VERY GOOD. THANK YOU. AND WAS ESTABLISHED. VERY GOOD. ALL RIGHT, SO I DIDN'T REALIZE OTHERS HAD TO DO IT AS WELL. DO WE WANT TO JUMP INTO HRA?
DO YOU WANT TO GET THE APPROVAL AND YOU DON'T HAVE TO DO A VOICE VOTE BECAUSE YOU GOT NOBODY OR YOU DON'T HAVE TO THE ROLL CALL VOTE. YOU JUST CAN DO A VOICE VOTE BECAUSE YOU DON'T HAVE EVERYBODY REMOTE. >> ALL RIGHT. SO EVERYONE WHO APPROVES
OF THE WELL FIRST I NEED A MOTION TO APPROVE THE AGENDA FOR TONIGHT MOVED BY COMMISSIONER ROBERTSON AND SECOND BY COMMISSIONER WHO WHO CAME ALL IN FAVOR I MOTION
PASSES SEVEN ZERO. >> THANK YOU SO MUCH. SUSTAINABILITY LOVELY.
OH, OKAY. BUT MOTION CARRIES VERY GOOD. GOOD ENOUGH. ALL RIGHT. PLEASE.
OH, YOU'RE NOT THE CHAIR WHO'S I'M SORRY, ANGIE. GO AHEAD. PLEASE. WE DON'T EVEN THOUGH WE DON'T HAVE A QUORUM YOU DON'T HAVE A QUORUM. YOU OKAY? VERY GOOD. WE'RE GOOD THEN WE ARE GOOD.
>> ALL RIGHT. YOU REMEMBER FOR FOLKS TO KEEP THEIR CAMERAS ON DURING THAT PERIOD. >> ALL RIGHT. I JUST WAS REMINDED THAT IF YOU ARE PART OF THIS MEETING, YOU NEED TO HAVE YOUR CAMERAS ON. SO ROB, WE NEED TO SEE 93 AND
SONNY AND CECILIA, WE NEED YOUR CAMERA ON AS WELL. >> OKAY?
OH YEAH. >> AND JUST A REMINDER TO EVERYBODY ELSE IF YOU HAVE A QUESTION OR COMMENT OR IF YOU'RE RECOGNIZED BY YOUR CHAIR TO SPEAK IF YOU COULD USE THE MICROPHONE AND GET INFORMATION CLOSE NOT ONLY SO
WE CAN HEAR YOU HERE BUT ALSO SO THE RECORDING AND SO THE FOLKS ON LINE CAN HEAR YOU AS WELL. ALL RIGHT. OUR FIRST ORDER OF BUSINESS TONIGHT, GANG IS ITEM 1.1 THE HOUSING NEXUS STUDY RELATED TO
OUR OPPORTUNITY HOUSING ORDINANCE. YOU ALL ARE AWARE OF OUR OPPORTUNITY HOUSING ORDINANCE AND WAY BACK WHEN WE FIRST ADOPTED IT IT WAS BASED ON A HOUSING NEXUS STUDY BASICALLY
TRYING TO FIGURE OUT EXACTLY WHERE WHERE WE WERE IN TERMS OF HOUSING IN THE CITY OF BLOOMINGTON WHERE WE WANTED TO BE AND PUT SOME HARD NUMBERS TO IT INTO TO MAKE SENSE OF IT ALL.
SO KENNY NIEMEYER IS GOING TO LEAD US THROUGH THIS MR. NIEMEYER GOOD EVENING. >> WELCOME. THANK YOU MAYOR AND BOARDS AND COMMISSIONS SO AND THANKS FOR THE WARM INTRO TO THIS ITEM SO I WON'T TAKE TOO LONG BEFORE I
HAND IT OVER TO OUR CONSULTANTS WHO HAVE JOINED US REMOTELY. BUT THE BACKGROUND IS THAT OUR OPPORTUNITY HOUSING, OPPORTUNITY, HOUSING ORDINANCE WHICH WAS ADOPTED BACK IN 2019
HAD A BASIS OF A HOUSING NEXUS ANALYSIS AND WITHIN THE ORDINANCE IT THE ORDINANCE LANGUAGE ALLOWED FOR PERIODIC REVIEW AND REVISION OF THE ORDINANCE AND ITS REQUIREMENTS
BASED OFF OF THE ECONOMIC CONDITIONS AND EVOLVING REAL ESTATE MARKET. SO TO THAT PURPOSE STAFF WORKED WITH THE CONSULTANTS WHO ARE ONLINE TO PREPARE A
UPDATED VERSION OF THAT HOUSING NEXUS STUDY AS WELL AS THE FINANCIAL FEASIBILITY ANALYSIS OF THE OPPORTUNITY HOUSING ORDINANCE AND THAT IS WHAT WE'LL HAVE PRESENTED BY
OUR CONSULTANTS THIS EVENING AND THEN ONCE THEY'VE CONCLUDED THEIR PRESENTATION I'LL BRING FORWARD THE STAFF RECOMMENDATION FOR POTENTIAL ORDINANCE ADJUSTMENTS BASED OFF OF THE REPORT FINDINGS AND
THEN WE'LL HAVE TIME FOR DISCUSSION AND QUESTIONS AND ANSWERS. SO WITH THAT I WILL HAND IT OVER TO OUR CONSULTANTS.
EXCELLENT. >> SO FIRST CAN EVERYONE SEE MY SCREEN? >> YES. YES. >> YES.
OKAY, SO MY NAME'S SEAN BOURGEOIS AND I'M GOING TO WALK YOU THROUGH I'M A DATELESS AND OUR TEAM DATELESS
AND WE WERE THE PEOPLE WHO PUT THE OUR HELP THE CITY WAS THE FIRST AWAY TO DRAFT AND PLANNING AND IMPLEMENTATION PLANNING BACK IN 2018. SO IT'S GREAT TO BE BACK. IT'S GREAT TO HAVE SUCH AN
AUGUST GROUP THAT WE CAN PRESENT TO. I'VE ALSO NEVER SEEN WHERE A PLACE WHERE WE'VE HAD THE MAYOR OF THE CITY COUNCIL THE HRA OF SUSTAINABILITY AND
PLANNING AND THE PUT IT ALL TOGETHER IN ONE TIME SO THANK YOU FOR LETTING US PRESENT TO YOU GUYS. THAT'S THAT'S REALLY INTERESTING. OKAY SO WHAT WE'RE GOING TO DO
IS COVER A LOT OF MATERIAL IN A SHORT TIME SO WE'VE GOT SIX SORT OF BUCKETS OF INFORMATION THAT WE'RE GOING TO GIVE YOU BEFORE WE
GET TO THE OR THE LAST ONE IS THE RESULTS THAT GET US TO THE RESULTS AND THE SIX ARE THAT WE'LL LOOK AT THE MARKET CONTEXT, REALLY LOOK AT HOW THINGS HAVE CHANGED SINCE WE
ORIGINALLY HELPED TO DESIGN THE SHOW AND LOOK AT HAS IT ACHIEVED WHAT WE THOUGHT IT WOULD ACHIEVE AND THAT'S THE WE SHOW PERFORMANCE TO DATE. WE'LL TALK ABOUT WHAT THE
DEVELOPERS THEMSELVES HAVE TOLD US AND WE'LL LOOK AT WHAT AN UPDATED VERSION OF THE NEXT STUDY HAS SHOWN. WE'LL LOOK AT SOME POLICY OPTIONS THAT FLOW FROM THOSE
AND END WITH SOME KEY FINDINGS AND NEXT STEPS. FIRST OFF I'M AS I MENTIONED SEAN FROM DATELESS I'M GOING TO BE LEADING MOST OF THE PRESENTATION BUT WHEN WE GET
TO THE NEXT THIS WORK I'M GOING TO HAND OVER TO SHERRY OKUN FROM THAT FROM THE AP AND SHE'LL WALK YOU THROUGH THE
NEXT DETAILS. OH MY COLLEAGUE AS WELL I MEAN TO LALA'S ON IF YOU SEE HIM SO THE PROJECT PURPOSE REALLY WE HAD THREE BROAD QUESTIONS THAT
WE WERE LOOKING TO ADDRESS FROM OUR SIDE. SO THE FIRST WAS JUST TO UNDERSTAND HOW IS BLOOMINGTON'S HOUSING MARKET CHANGED SINCE THE OLD SHOW WAS ORIGINALLY DESIGNED AND
IMPLEMENTED? YOU KNOW THE TIME FROM YOU KNOW SEEMS STRANGE TO THINK ABOUT BUT THERE WAS A TIME PRE-COVID AND PRE INFLATION AND IN A WAY THOSE ARE HALCYON DAYS FOR REAL ESTATE.
SO LOOKING AT HOW THE MARKET'S CHANGED SINCE THEN IS IMPORTANT HOW THE WAY TO PERFORMED AGAINST ITS ORIGINAL OBJECTIVES HELPS US TO
UNDERSTAND IF NEED TO MAKE THOSE CHANGES AND WHAT CHANGES IF ANY WOULD THEN NATURALLY FLOW. THE WORK THAT WE DID WAS NOT
BASED ON ANY ONE SET OF DATA. IT WAS REALLY A READ ACROSS A LOT OF DIFFERENT SETS OF DATA THE FIRST BEING THAT WE USED
CENSUS ACROSS TABLES. THE FIVE YEAR ESTIMATES ARE TWO DIFFERENT PERIODS THAT COVER ABOUT TEN YEARS WORTH OF DATA SO THAT WE COULD GET STRUCTURAL CHANGES TO
BLOOMINGTON'S BOTH HOUSING DEMOGRAPHICS AND OTHER FACTORS THERE. WHEN YOU LOOK AT SOME OF THE DATA, IF YOU USE SHORTER TERM ESTIMATES IN TABLES FROM
CENSUS YOU CAN GET DIFFERENT NUMBERS BUT THEY TEND TO BE VALUABLE AND NOT AS STATISTICALLY SIGNIFICANT. SO WE WENT WITH THE STRONGER VERSIONS OF THOSE NUMBERS TO PRESENT THE FACTS THAT WE'RE
GOING TO SHOW YOU. WE ALSO TALKED TO DEVELOPERS AND THE DEVELOPER INTERVIEWS WERE ALL HELD AFTER OFF THE RECORD SO THAT THE DEVELOPERS COULD SPEAK FREELY.
THEY WERE ROUGHLY ONE HOUR INTERVIEWS WITH TEN DIFFERENT GROUPS AND THEY WERE SEMI-STRUCTURED. WE HAD AN OUTPUT FORMAT THAT WE WERE LOOKING TO COMPLETE BUT WE ALSO LET THE DEVELOPERS
GUIDE THE CONVERSATIONS AS THEY WANTED TO IF THEY WANTED TO EXPAND ON CERTAIN POINTS. WE TOUCHED ON THE SHOW AS PART OF THOSE CONVERSATIONS BUT
OTHER PARTS OF THE CONVERSATIONS WERE STRICTLY ABOUT MARKET CONDITIONS INPUT NUMBERS THAT WE COULD USE IN OUR FINANCIAL MODELS AND THINGS THAT WE SHOULD KNOW. >> THE FINANCIAL MODELS WERE
ALL THAT WE USED WERE ALL CUSTOM BUILT IN EXCEL USING TWO DIFFERENT METHODOLOGIES. ONE IS JUST LOOKING AT THE THE
PRE DEVELOPMENT YIELD ON COST NUMBERS THAT WE COULD GET FOR DIFFERENT KINDS OF PROJECTS AND WE'RE GOING TO GET INTO THIS MORE IN IN A FEW MINUTES AND WE ALSO LOOKED AT
DISCOUNTED CASH FLOW SO WE COULD TAKE ACCOUNT OF WHAT HAPPENS TO THESE PROJECTS WHEN YOU TAKE INTO ACCOUNT THE TIME VALUE OF MONEY. AND LASTLY WE HAD WE HAD A
NEXUS ANALYSIS THAT WAS DONE. SO ALL OF THOSE TOGETHER REFLECT WHAT YOU SEE HERE. >> OKAY.
SO FOR MARKET CONTEXT WE'RE GOING TO ZOOM OUT AND LOOK AT THE BIG, BIG PICTURE FOR SECOND AND THIS IS ONE OF THE
MOST INTERESTING SLIDES THAT WE HAVE IN THE DECK AND IT'S IT'S REALLY EMBLEMATIC OF WHAT'S HAPPENED IN BLOOMINGTON. YOU START AT THE TOP LEFT CORNER OF THE SLIDE WHERE YOU
SEE A HIGH INCOME HOUSEHOLD 250,000 PLUS WE SEE THAT THEY WENT FROM A BIT UNDER 6.5% OF THE TOTAL OF ALL THE HOUSEHOLDS IN BLOOMINGTON TO
NEARLY A QUARTER. IT'S A STUNNING TRANSFORMATION AND TO THE RIGHT AS YOU LOOK AT THOSE IS AS YOU LOOK AT THE GRAPH YOU'LL SEE THAT EXCEPT
FOR THE VERY, VERY LOWEST INCOME GROUP WHICH MAY EVEN BE A STATISTICAL FLUKE, EVERYONE ELSE PRODUCED AS A SHARE OF HOUSEHOLD POPULATION. RIGHT?
SO LOW INCOMES WORKFORCE NOW IS 47% WITHIN THE MANAGEMENT BUSINESS SCIENCE AND ARTS GROUPING WHICH TENDS TO BE FAIRLY WELL PAID UPPER INCOME WHITE COLLAR TYPES.
WE'VE SEEN SOME DEMOGRAPHIC SHIFTS THE THE NUMBERS YOU SEE HERE A 30% GROWTH IN THOSE AGED 65 TO 79. WE'RE LOOKING AT THE PERIOD
BETWEEN 2014 AND 2023. NOW SOME PORTION OF THAT GROWTH REFLECTS PEOPLE AGING IN PLACE MEANING IN 20 24 THEY MAY HAVE BEEN UNDER 65 AND
THEN THEY WERE OVER 65. SO THEY GET COUNTED IN THIS OTHER GROUP. BUT SOME PORTION OF IT ALSO REFLECTS INWARD MY MIGRATION. WE ALSO SAW A SMALL CHANGE A
BUMP IN THE 35 TO 44 YEAR OLD WHICH AGAIN LIKELY IS UPPER INCOME WORKERS MOVING INTO THE CITY. SO THOSE TYPES OF STRUCTURAL
CHANGES WILL SHIFT THE SUPPLY DEMAND FUNDAMENTALS OF THE OF THE AREA IN THIS CASE WE'VE GOT A LOT OF MONEY COMING IN AND OF COURSE IT'S MUCH
SLOWER TO BUILD HOUSES THAN IT IS TO CHANGE JOBS AND OR MOVE TO A NEW CITY. >> SO A FINITE STOCK OF GOODS IS EFFECTIVELY BEING BID UP BY
MORE PEOPLE WITH THE MONEY TO PAY FOR IT AT THE SAME TIME IT'S HARD TO GENERATE HOUSEHOLDS THAT QUICKLY NOT POPULATION OF HOUSEHOLDS
HOUSING UNITS. SO YOU SEE THE 2021 IS OBVIOUSLY OUR BIG COVID DROP BUT EVEN PRE-COVID WHERE WE WERE GROWING FROM THE POINT IN TIME AT WHICH THE
WINTER WENT INTO EFFECT WE GREW UP TO OUR PEAK OF 793 FELL QUITE A BIT AND THEN THE POST-COVID BOOM BROUGHT US REALLY BETWEEN THE 19 AND 20
PERIODS BUT WE'VE NEVER RECOVERED AFTER AND THAT THAT REFLECTS QUITE A NUMBER OF ECONOMIC FACTORS. ONE OF THE MOST IMPORTANT BEING THAT WE HAD THE INTEREST RATE SPIKE WITH THE
INFLATIONARY SPIKE HOME PRICES NATIONALLY AND BLOOMINGTON'S NO EXCEPTION HERE ALSO WENT UP. SO AGAIN THE THE UNDERLYING ECONOMIC DRIVERS OF OF HOUSING
SUPPLY AND DEMAND WERE IMPACTED IN MEANINGFUL WAYS. AND IF YOU LOOK BEFORE I CHANGE THE SLIDE THE COST PER
UNIT IN 2024 WAS UP 28% RELATIVE TO ITS 2019 BASELINE. SO THAT'LL BE IMPORTANT LATER AS WE TALK THROUGH THIS. >> SO WITH THE IF WE LOOK AT
HOW HOUSING COSTS CHANGED BETWEEN 2014 AND 2023, YOU CAN SEE ALL OF THE YELLOW LINES. THESE ARE EFFECTIVELY THE
PLACES WHERE YOU WOULD LOOK FOR NOT NOT STRICTLY JUST AFFORDABLE HOUSING BUT FIRST TIME HOME BUYERS, YOU KNOW, MIDDLE MARKET HOME BUYERS AND
YOU CAN SEE THAT THE STOCK OF HOUSING AVAILABLE AT THOSE PRICE POINTS REALLY DECLINED SUBSTANTIALLY AND EVERYTHING THAT BECAME AVAILABLE MOVED
FROM THE YOU KNOW, MID ONE, 52 300 UP TO 300 TO 500,000 AND WE'RE IN $500,000 AND ABOVE HOMES NOW REPRESENT 9% OF THE
TOTAL HOMES AVAILABLE IN BLOOMINGTON RIGHT SO IF YOU LOST YOUR STARTER HOMES THOSE HOMES THAT ARE UNDER 200,000
WON'T SAY THEY'RE COMPLETELY GONE BUT YOU WENT FROM 70% OF THE MARKET HAVING THEM TO OR THEM BEING 17% OF THE TOTAL MARKET AND NOW THERE'S 6.5% POSSIBLY EVEN LOWER NOW
BECAUSE THESE THIS DATA ENDS IN 2023. YOU KNOW THAT'S REAL MOTION AWAY FROM WHERE MIDDLE INCOME
PEOPLE ARE ABLE TO TO MAKE HOUSING CHOICES AND IT'S NOT JUST OLDER RENTERS FACE THE SAME PRESSURE WHERE YOU USED
TO HAVE UNITS THAT WERE BROADLY AVAILABLE UNDER LET'S SAY $1,000 A MONTH. YOU CAN SEE WHEN WE LOOK AT
THE GRAPH TO THE RIGHT AND 48% OF UNITS AT THE TIME WERE UNDER $1,000 PER MONTH. NOW JUST 10% ARE RIGHT. AND EVEN IF WE ADJUST THE
NUMBERS FOR INFLATION, WHICH IS WHAT YOU SEE THERE TAKING THE MIDPOINT OF THE 500 TO 999, WE WOULD HAVE ADJUSTED IT AGAIN JUST UNDER $1,000 PER MONTH AND YOU CAN SEE THAT
ALMOST ALL OF THE GROWTH IN RENTAL PROPERTIES HAS HAPPENED AT THE $1,500 A MONTH AND UP AREA THAT'S NOW 52% OF YOUR RENTAL MARKET AND
AGAIN PARTIALLY THAT REFLECTS THE UPWARD COST BASIS OF NEW CONSTRUCTION AND PARTIALLY IT REFLECTS THE SUPPLY DEMAND FACTORS THAT HAPPEN WHEN YOU
HAVE LIMITED STOCKS OF HOUSE OF HOUSING UNITS AND MANY PEOPLE WITH THE DISPOSABLE INCOME TO PAY FOR THOSE THINGS. RIGHT AND I GUESS THE FINAL
POINT HERE IS JUST THAT WITH UNITS UNDER $1,000 A MONTH NOW MOVING FROM 56 TO 15% OR LESS, YOU'RE LOOKING AT 85% OF THE
MARKET IS IN A PLACE THAT IS, YOU KNOW, DIFFICULT TO OBTAIN FOR PEOPLE OF MODEST MEANS. CONSTRUCTION COSTS CONTINUE TO
RISE. IF YOU LOOK YOU'LL NOTICE OUR COVID PEAK AGAIN IN 2021. BUT AS YOU SEE THE DECLINE IN THAT ORANGE LINE IN THE PERCENTAGE OF COST REMEMBER
THAT'S A DECLINE OF THE PERCENTAGE GROWTH RATE. SO YOU KNOW AS YOU GO TO 5.6% THAT'S 5.6% ON TOP OF THE
22.5% FROM 2021 AND THE 2.4% IN 2023 IS ON TOP OF THE 5.6% AND ON TOP OF THE 22.5%. SO THOSE COST PRESSURES HAVE CONTRIBUTED SUBSTANTIALLY TO A
LOT OF STICKINESS IN THE NEW CONSTRUCTION MARKET WHICH WE'RE GOING TO TALK MORE ABOUT IN A FEW MINUTES. OKAY. SO LET'S TALK ABOUT THE SHOW
PERFORMANCE TO DATE. HOW DOES THAT WORK SO FAR? SO IF WE DO JUST A QUICK REVIEW OF OF OUR REQUIREMENTS,
WE'VE GOT 9% OF THE UNITS IN NEW MULTIFAMILY PROJECTS THAT HAVE AT LEAST 20 UNITS. THEY HAVE TO BE AFFORDABLE AT 60% EMI OR BELOW AND WE HAVE
16 INCENTIVES AVAILABLE TO SUPPORT THE ECONOMICS AT THE SITE LEVEL AND ARE IN LIEU FEE IF A DEVELOPER CHOOSES NOT TO
HAVE ON SITE UNITS THEY CAN PAY FEE THAT'S CURRENTLY SET AT $9.60 PER GROSS SQUARE FOOT THAT WAS SET IN 2018 AND
EFFECTIVE FOR EVERYTHING THAT WE DID FOR THIS PROJECT TO EVALUATE HOW THE SHOW HAS WORKED IN PRACTICE IS WHAT WE DID ORIGINALLY TO SET IT UP SO
WE WERE CURIOUS HOW THE NUMBERS WERE ORIGINALLY SET. WE FOLLOWED THE EXACT SAME PROCESS BASICALLY WHAT WE SAW FROM THE USE OF THE INCENTIVES IS INTERESTING FOR A FEW
DIFFERENT REASONS. ONE IS THAT YOU CAN SEE THAT THERE'S UNEVEN INCENTIVE USAGE SO THAT DOESN'T MEAN THAT THE INCENTIVES DOWN NEAR THE RIGHT HAND SIDE ARE NOT VALUABLE.
IT COULD BE THAT WE CAN DO BETTER JOBS OF EXPLAINING IT OR SHOWING DEVELOPERS HOW TO LAYER TAKE IT. BUT THE REALITY IS THEY'VE SHOWN STRONG PREFERENCES AND THOSE PREFERENCES YOU CAN SEE
VERY STRONGLY IN THE PARKING STALL REDUCTION EVERYONE TOOK THAT AND IN CONVERSATIONS WITH DEVELOPERS THAT ACTUALLY GAVE US AN INSIGHT, A VERY GOOD INSIGHT INTO HOW THE SHOW IS
ACTUALLY HELPING DEVELOPMENT IN BLOOMINGTON RATHER THAN RETARDING IT. WE'RE GOING TO COME BACK TO THIS POINT IN IN A MINUTE BUT IT'S WORTH NOTING THAT THE INCENTIVES THAT YOU SEE BEING
USED ARE STRONGLY SUPPORTED BY THE DEVELOPMENT COMMUNITY AND THE SHOW ITSELF HAS DELIVERED RESULTS. SO ON THE LEFT THESE ARE THE
THE PIE CHART REFLECTS ALL THE SHARE OF ALL OF THE UNITS THAT WERE BUILT UNDER THE YEARS SINCE IT'S BEEN IN PLACE 62% OF THOSE HAVE BEEN AT THE 60%
AMI LEVEL, 32% AT 50 AND ONLY 6% AND 30% EMI. SO THAT'S OUR DISTRIBUTION OF WHAT WAS BUILT OR IS UNDER CONSTRUCTION OVER TO THE RIGHT .
THESE ARE THE GOALS HOUSING POLICY GOALS OF THE CITY AND HERE YOU CAN SEE THAT WE'VE GOT A BIT OF AN INVERSE SO JUST 18% OF THE GOALS ARE AT
THE 60 TO 80% EMI LEVEL A FURTHER 29% ARE AT 50 AM I AND MORE THAN HALF 30. AND SO WE HAVE A CLEAR FOCUS
HERE THAT WE WOULD LIKE TO BE AT 50% OR BELOW ANYMORE BUT THAT'S REALLY THE NEED THAT HAS NOT BEEN TOUCHED VERY
STRONGLY CURRENTLY. >> SO WHAT DID THE DEVELOPERS TELL US? WELL, THE DEVELOPERS FIRST TOLD US THAT AT 6% AMAZON
INCENTIVE FEES ARE GENERALLY WELL CALIBRATED AND THAT THAT MEANS THAT IF YOU SHIFT THE PERCENT EDGE OF UNITS TO LOWER
EMI THEN YOU MAY HAVE TO CONSIDER CHANGING INCENTIVES OR SWEETENING THE DEAL. BUT AT THE MOMENT THEY'RE REASONABLY HAPPY WITH HOW THINGS ARE SET. THEY MENTIONED THAT A MUCH
BIGGER PROBLEM CURRENTLY AND IT'S GETTING BETTER. I LITERALLY JUST SAW NUMBERS RIGHT BEFORE THIS PRESENTATION STARTED ABOUT RENT GROWTH IN THE TWIN CITIES AND
BLOOMINGTON SPECIFICALLY GROWING FASTER THAN MANY OF THE AVERAGES IN THE AREA WHICH IS SUPPORTIVE FOR FUTURE DEVELOPMENT. BUT WHAT THEY HAVE TOLD US IS
UP TO THE POINT AT WHICH WE HAD DONE THE INTERVIEWS AND THE COSTS HAD RISEN FASTER THAN THEY COULD GROW RENTS RIGHT? SO EVEN WITH UPPER INCOME POPULATIONS THERE'S STILL A
LIMIT AT WHICH YOU JUST CAN'T GO OR ELSE YOUR BUILDING SITS EMPTY OR IT TAKES A VERY LONG TIME TO LEASE UP AND THAT THAT WAS A VERY BIG BARRIER TO DEVELOPMENT.
SO SOMETIMES REAL ESTATE GOES THROUGH THESE GROWTH CYCLES AND WE'RE IN A SOMEWHAT PAINFUL PART OF THAT CYCLE. CURRENTLY THOUGH, WE SEEM TO BE POTENTIALLY GROWING OUT
OF IT DEPENDING UPON, YOU KNOW, OIL SHOCKS AND TARIFFS AND OTHER THINGS THAT COULD THROW A MONKEY WRENCH INTO IT . WE'RE OVER THE POST COVID
IMPACT PORTION OF THAT CYCLE. ONE OF THE KEY MESSAGES THAT THE DEVELOPERS TOLD US IS THAT COST VOLATILITY HAS MADE FORECASTING THEIR PROJECTS
DIFFICULT AND IN LAYMAN'S TERMS WHAT IT MEANS IS IF YOU'RE A DEVELOPER AND YOU'RE TRYING TO PUT PENCIL TO THE NUMBERS TO SAY HOW MUCH WOULD IT COST ME TO DO PROJECT X,
IT'S VERY HARD TO KNOW UNTIL YOU ACTUALLY GO OUT AND START GETTING REAL COST FROM YOUR SUBS AND VERY OFTEN THEY SURPRISE YOU WITH WHAT THEY COME BACK WITH. SO THE REDEVELOPMENT PIPELINE
HAS BEEN CHOKED A BIT BY THAT. >> ANOTHER THING THAT'S HAPPENED THAT WORKS NEGATIVELY AGAINST THE DEVELOPMENT GROWTH IS THAT INVESTOR RETURNS HAVE
GONE UP NOT DOWN AND THE REASON THEY'VE GONE UP IS THAT THE INVESTORS VIEW THE RISK PROFILE OF DEALS IN THE CURRENT ENVIRONMENT AS GREATER
THAN BEFORE BECAUSE OF THE THINGS LIKE AGAIN WHEN INFLATION WAS A BIT HIGHER BUT STILL THE ISSUE THAT IT'S HARD
TO UNDERWRITE YOU DON'T KNOW HOW LONG YOU'RE GOING TO HAVE TO SIT ON A PROJECT YOU DON'T KNOW IF PRE DEVELOPMENT AND DUE DILIGENCE IT'S GOING TO TAKE LONGER. SO THAT ALL GETS TRANSLATED INTO HIGHER RETURNS TO EQUITY
THAT ARE REQUIRE HARD AND HARDER BANK UNDERWRITING. FINALLY THE VERY COMMON COMMENT WAS JUST THAT PARKING REQUIREMENTS AS PER CODE THEY
OFTEN EXCEED WHAT THEY THINK THE DEMAND IS AND THAT'S PARTIALLY WHY YOU SAW SUCH HIGH USAGE FOR THE PARKING INCENTIVE UNDER THE OLD SHOW.
WAS THAT WAS THERE A WAY TO BETTER APPROACH WHAT THEY BELIEVE MARKET MARKET DEMAND IS FOR THOSE PARTS OF STALLS? SO THAT BASICALLY GETS US TO A
COST REVENUE SQUEEZE AND COSTS ARE UP, THE REVENUES ARE HARDER TO UNDERWRITE AND SO WHAT WE ORIGINALLY HAD UNDERWRITTEN THE HL WITH YOU
KNOW THAT THE WORLD IS NO LONGER SO OUR FINANCIAL MODELING APPROACH HAD TO GO BACK TO SQUARE ONE AND WE TOOK FIVE CONSTRUCTION TYPES AND WE
TESTED THESE ALL THE GARDEN RAT PODIUM MID RISE AND FOR SALE WITHIN EACH ONE OF THOSE WE USE WE HAD DIFFERENT VARIATIONS WE HAD VERSIONS
WHERE WE HAD 30% EMI UNITS 5060 C A MARKET RATE DEVELOPMENT OR IN A MARKET RATE DEVELOPMENT WHERE THEY PAID THE IN LIEU FEE AND REALLY WHAT WE WERE TRYING TO
DO WAS JUST GET TO SOLID NUMBERS FOR YIELD ON COST IRR AND NET PRESENT VALUE THAT WOULD GIVE US SOME INDICATION OF WHAT NOTIONAL PROJECTS FOR
THESE DIFFERENT CONSTRUCTION TYPOLOGIES MIGHT LOOK LIKE. NOW GRANTED THESE ARE CONCEPTUAL RIGHT? >> SO IT'S NOT AN ACTUAL PROJECT THAT WE ARE UNDERWRITING.
>> THERE ARE LOTS AND LOTS OF NUANCES TO DOING UNDERWRITING DEVELOPERS WHO MAY HAVE LAND BANKED AT ANY GIVEN POINT IN THE CYCLE MAY
BE ABLE TO USE THAT LAND WHEN THEY'RE READY AND BE ABLE TO BRING A PROJECT OUT OF THE GROUND. BUT OTHER DEVELOPERS WOULD STRUGGLE TO DO IF THEY HAD TO PAY MARKET PRICES FOR FOR LAND
COULD BE THAT THEY WERE ABLE TO TAP BETTER SOURCES OF EQUITY THAN OTHER DEVELOPMENTS. THERE'S A LOT OF NUANCE SO WE TRIED TO DO VERY GOOD BUT STILL SOMEWHAT GENERIC VIEW
OF HOW WOULD THESE PROJECTS PENCIL AND YOU CAN SEE SOME OF THE ESTIMATED INPUTS THAT WE USED OFF TO THE RIGHT. WHAT'S USEFUL IN THIS BIG
BRICK OF NUMBERS IS SIMPLY TO SAY THAT WHEN WE RAN OUR NUMBERS WHAT WE WERE LOOKING FOR WAS TO GET Y Y YOU SEE JUST MEANS YIELD ON COST AND IT SIMPLY LOOKS AT WHAT'S
CALLED THE NET OPERATING INCOME BASICALLY THE OPERATING INCOME FOR A BUILDING AS COMPARED TO WHAT IT COSTS TO BUILD IT A DEVELOPMENT COST AND DEVELOPERS USE THAT AS A
KIND OF SNAPSHOT TO TEST IS MY BUILDING LIKELY TO MAKE MONEY OR IS IT NOT AND YOU NEED TO HAVE ENOUGH SPREAD BETWEEN YOUR YIELD ON COST AND WHAT'S CALLED THE EXIT CAP RATE FOR
THEM TO BE ABLE TO SAY OKAY THIS THIS MAKES SENSE IN MOST OF OUR UNDERWRITING WE COULDN'T CLEAR THAT THRESHOLD AS SAME PATTERN WE SAW FOR IRA'S NET NET PRESENT VALUES.
>> WHAT I WOULD SAY IS THAT MEANS THAT ON THE ONE HAND WE'RE IN A HARD PART OF THE CYCLE. ON THE OTHER HAND, REAL ESTATE BY NATURE IS CYCLICAL AND YOU
CAN'T BASE ALL OF YOUR DECISION MAKING ON WHAT HAPPENS AT THE LOWEST POINT OF THAT CYCLE. YOU HAVE TO ASSUME THAT THINGS WILL GET BETTER, THINGS WILL TURN THE CORNER, INCOMES WILL
RISE, COSTS WILL MODERATE AND STABILIZE AND YOU CAN SEE THAT WITH PRETTY PRETTY GOOD CONFIDENCE BECAUSE THIS HAPPENS PERIODICALLY IN REAL ESTATE AND IN FACT WE'RE SORT
OF DUE FOR A RESET BACK TO MORE NORMAL GROWTH RATES. SO WE WEREN'T NECESSARILY FLOORED BY THE RESULTS BUT IT DOES INDICATE THAT WE DO HAVE
TO TAKE SERIOUSLY THE IDEA THAT IT'S NOT SIMPLE FOR DEVELOPERS TO MAKE DEALS PENCIL AND WHEN YOU SEE THE $1,500 A MONTH AND HIGHER
RENTS THAT OFTEN REFLECTS WHAT'S NECESSARY TO GET THE PROJECTS OUT OF THE GROUND AND GET THEM FUNDED. BUT IF THEY TRY TO UNDERWRITE WITH LOWER RENTS THEY WOULDN'T BE ABLE TO MAKE IT MAKE IT HAPPEN.
THIS IS JUST GRAPHICALLY SHOWING YOU THE SAME THING AGAIN, THE MOST IMPORTANT POINTS HERE IS WE WOULD IDEALLY LIKE TO SEE NUMBERS THAT GET UP TO, YOU KNOW, 6 TO
18%, EVEN 20%. >> WE DON'T SEE THAT. >> SO NOW I'M GOING TO TURN THIS OVER TO SHERI TO GO OVER THE EXIT STUDY NUMBERS AND
THEN WE'LL COME BACK WITH SOME OTHER DETAILS ON FINDINGS, THE NEXT STEPS. THANK YOU, SEAN. THANK YOU. HONORABLE MAYOR BOARDS AND
COMMISSIONS WHEN WE PERFORM A STUDY BOTH THIS TIME AND LAST TIME UNLESS A STUDY SHOWS THE CONNECTION BETWEEN MOVING HOUSE WILL DEVELOPMENT AND NEW
HOUSEHOLDS MOVING IN AND THE DEMAND FOR AFFORDABLE HOUSING UNITS OR HOUSING UNITS AT VARIOUS INCOME STRATA. SO THE WAY THAT THIS WORKS IS
WHEN NEW HOUSEHOLDS MOVE INTO MARKET RATE HOUSING UNITS AND REMEMBER THAT NEW HOUSING UNITS TEND TO BE NICER AND BUILD TOWARDS THE TOP OF MARKET INCOME THAN PREMIUMS
. THE PEOPLE WHO MOVE THERE HAVE INCOMES AND THEN THEY GO OUT AND THEY SPEND THEIR DISPOSABLE INCOME IN THE LOCAL ECONOMY AND THEY CREATE JOBS
FOR NEW COMMERCIAL DEVELOPMENT. SOME OF THOSE MIGHT BE HEALTH CARE JOBS, SOME OF THOSE MIGHT BE RETAIL JOBS, SOME OF THOSE MIGHT BE OTHER KINDS OF JOBS. THEY CREATE JOBS ACROSS THE
THE INCOME STRATA. THEY'RE REALLY TRYING TO FIGURE OUT HOW MANY HOW MANY JOBS AND MORE HOW MANY HOUSEHOLDS ARE CREATED THAT
NEED AFFORDABLE UNITS. SO SEVEN HOUSEHOLDS WITH REASONABLE WAGE WORKERS WILL QUALIFY FOR AND NEED AFFORDABLE HOUSING OPTIONS. SO THAT'S THE CONNECTION WE'RE TRYING TO MAKE IN THE NEXUS
STUDY. >> AND SO PLEASE, IT'S TRUE. >> SO THE WAY THAT WE DO THIS IS WE HAVE A THREE STEP
PROCESS WE GO THROUGH FIRST WE DEFINE HOUSING TYPES AND IDENTIFY THE MARKET PRICES AND RENTS FOR WE LOOKED AT FOR SALE AND RENTAL HOUSING WE
ESTIMATE THE HOUSEHOLD INCOMES OF BUYERS AND RENTERS AND IN ORDER TO TO CELEBRATE HOUSING UNITS WE MAKE THE ASSUMPTION THAT THE PEOPLE
MOVING INTO THOSE UNITS ARE PAYING NO MORE THAN 30% OF THEIR INCOMES TOWARDS HOUSING AND THEN WE ESTIMATE THE SPENDING BY THE MARKET
RATE HOUSEHOLDS WITHIN THE LOCAL ECONOMY WHICH IN THIS CASE IS HENNEPIN COUNTY AND WE USE THE EMPLOYMENT INPUT
OUTPUT MODEL TO GENERATE THE INFORMATION AND THEY DISTRIBUTE IT CREATE THE NUMBER OF JOBS CREATED BY INDUSTRY AND THEN WE GO BACK
AND USE PUBLIC USE MICRO DATA FROM THE AMERICAN COMMUNITY SURVEY AND CENSUS TO ESTIMATE THE WAGES AND HOUSEHOLD
INCOMES OF THOSE WORKERS WHERE WE'RE NOT NECESSARILY INTERESTED IN THE NUMBER OF JOBS CREATED, WE'RE MORE INTERESTED IN THE HOUSEHOLD
INCOMES THAT INCLUDE SOME OF THE LOWER WAGE WORKERS. SO YOU KNOW, WE'RE NOT ASSUMING THAT EVERY RETAIL
POSITION CREATED OR MINIMUM WAGE JOB CREATED IS A SINGLE PERSON WHO LIVES ALONE AND WE USE THIS THE CENSUS DATA TO
CROSSTABS YOU WAIT TO SEE OKAY, HOW MANY WORKERS ARE THERE PER HOUSEHOLD AND WHAT IS THE OVERALL HOUSEHOLD INCOME OF THESE HOUSEHOLDS TO
THOSE THAT THE NUMBER OF HOUSEHOLDS CREATED THAT ARE IN THESE LOWER INCOME STRATA AND WE USE THAT TO CALCULATE THE JUSTIFIABLE INCLUSIONARY PERCENTAGE BY HOUSEHOLD TENURE.
>> SO WE'RE LOOKING. NEXT SLIDE PLEASE. AT THE DEVELOPMENT OF MARKET RATE MULTIFAMILY RENTAL AND DEVELOPMENT OF TOWNHOME CONDOMINIUM AND BASED ON WHAT
SHE WAS JUST TALKING ABOUT IN TERMS OF YOU KNOW AND HOUSING ATTAINABLE MEET ARE BECOMING MORE INCREASINGLY OUT OF REACH YOU COULD YOU KNOW YOU WOULD YOU WOULD ANTICIPATE
AND WE DID FIND THAT THE HOUSEHOLD INCOME WAS REQUIRED TO MOVE INTO A NEW MULTIFAMILY RENTAL BUILDING IN BLOOMINGTON
OR A BIT MORE AND NOT THE SAME AS THOSE REQUIRED TO PURCHASE A NEW TOWNHOME OR CONDOMINIUM. NEXT SLIDE PLEASE. >> SO WHAT WE FOUND WAS THAT
THE INCOMES NEEDED TO MOVE INTO A NEW RENTAL UNIT ARE ABOUT $86,700 PER YEAR FOR THE HOUSEHOLD AND THE INCOMES
NEEDED TO PURCHASE A NEW TOWNHOUSE OR CONDO WAS AROUND $173,900 PER YEAR AND USING
THE INFORMAL MODEL WHICH WHICH AGAIN DISTRIBUTES SPENDING THROUGHOUT THE LOCAL ECONOMY AND WE ESTIMATE THAT HOUSE
ALONE IN A NEW RENTAL UNIT CREATES ABOUT 55 JOBS WHEREAS HOUSEHOLD IN A NEW TOWNHOUSE OR CONDO SPENDING IN THE LOCAL
ECONOMY CREATES ABOUT 72 JOBS AND THERE ARE DATA SHOWS US THAT THAT EQUATES TO ABOUT 34 HOUSEHOLDS IN THE CASE OF THE
RENTAL UNIT AND 45 HOUSEHOLDS IN THE CASE OF THE CONDO OR TOWNHOME AND ALL OF THOSE HOUSEHOLDS SIX OF THE HOUSE
HOUSEHOLDS FROM THE NEW RENTAL UNIT ARE BELOW 50% AMI SO AGAIN WHEN SOMEONE IN NEW
RENTAL UNIT GOES OUT AND SPEND THEIR MONEY IN THE LOCAL ECONOMY IT CREATES JOBS THAT CREATES DEMAND FOR ABOUT SIX AND A HALF HOUSING UNITS OR
HOUSEHOLDS THAT EARN UP TO 50% OF AREA MEDIAN INCOME ANOTHER FIVE POINT SIX OR NEARLY SIX
HOUSEHOLDS BETWEEN 50 AND 80% AMI SEVEN AND THEN ALSO ALMOST HOUSEHOLDS BETWEEN 80 PERCENT
AND 115% I AND THEN ANOTHER 14.5 HOUSEHOLDS THAT ARE ABOVE 115% AM I DID WORK UP TO 115%
AM I JUST IN CASE WHEN IT COMES TO SHIFTING THE POLICY AROUND YOU WANTED TO KNOW THAT IS I KNOW HRA HAS ON THEIR
WEBSITE THAT THEY DO LOOK AT DIFFERENT ROOMS UP TO 115% AS MAYBE NOT QUALIFYING FOR AND
CERTAINLY NOT QUALIFYING FOR FEDERALLY SUBSIDIZED HOUSING BUT THAT IS THE WORKFORCE HOUSING THAT SO MANY COMMUNITIES ARE CONCERNED WITH THAT IS THE MIDDLE INCOME HOUSING THAT SO MANY COMMUNITIES ARE CONCERNED WITH
AND SO WE JUST WANTED TO SHOW THAT FULL COMPLEMENT PLEASE. >> NEXT SLIDE. >> SO WHAT WE FOUND WAS A
RECENT 100 UNIT PROJECT A 100 UNIT MULTIFAMILY RENTAL PROJECT CAN JUSTIFY AN INCLUSIONARY REQUIREMENT OF UP TO 17% OF UNITS FOR HOUSEHOLDS
UP TO 250% AM I ARE BELOW SO ESSENTIALLY THERE IS 100 MARKET RATE UNITS CREATE DEMAND FOR AN ADDITIONAL 20
UNITS SERVING HOUSEHOLDS ACROSS THOSE LOWER INCOME STRATA UP TO 115% AMI. AND SO IF YOU HAVE AN INCLUSIONARY REQUIREMENT THAT SAYS YOU HAVE TO BUILD THOSE
20 UNITS ON TOP OF YOUR 120 UNITS THAT TURNS OUT TO BE ABOUT 17% OF THE PROJECT. SIMILARLY IT IS 21% OF THE
PROJECT OF A FOR SALE HOUSING DEVELOPMENT BECAUSE THAT HAS ADDITIONAL DEMAND FOR FOR FOR
THOSE UNITS BELOW 115% AMI SO THAT CREATES DEMAND FOR 26 UNITS AND SO WE STILL HAVE 400 MARKET RATE UNITS BUT WITH ANOTHER 26 UNITS OF THAT LOWER
INCOME STRATA THAT'S ABOUT 21% AND SO THAT IS YOUR MAXIMUM JUSTIFIABLE INCLUSIONARY PERCENTAGE NOT TO SAY YOU HAVE TO GO UP TO THAT THAT IS A
POLICY QUESTION BUT IF YOU WANTED TO SORT OF KNOW WHAT THAT UPPER BOOKEND IS, THAT'S WHAT WE WERE TRYING TO CALCULATE. NEXT SLIDE. >> THAT MIGHT BE IT. YEAH.
YEAH. AND AS SHERRY WAS TALKING ABOUT WHEN WE WERE LOOKING AT THE FINANCIALS EVEN BACK IN 2018 WE HAD A SIMILAR
DIFFERENCE BETWEEN WHAT'S MAXIMUM ONLY ACCEPTABLE AND WHAT THE POLICY ULTIMATELY SETTLED ON LARGELY FOR FEASIBILITY AND ADOPTION REASONS.
>> SO THAT'S A GOOD SEGWAY INTO OUR POLICY OPTIONS. >> SO WE MENTIONED THAT THE IN LIEU FEE WAS SET BACK IN 2018 AND OBVIOUSLY A LOT'S HAPPENED SINCE THEN SO YOU
KNOW I GUESS WE SHOULD START WITH JUST SAYING WHAT IS THE IN LUCY AND THAT'S THE THAT'S THE FEE THAT A DEVELOPER CAN PAY IF HE DOESN'T WANT TO KEEP
ONSITE AFFORDABLE HOUSING UNITS BUT STILL BE WITHIN THE THE STILL BE COMPLIANT WITH THE HOA SO HE PAYS A FEE BASED UPON THEIR GROSS SQUARE
FOOTAGE AND AGAIN THE FEES $9.60 PER SQUARE FOOT IF WE ADJUST THAT FOR INFLATION SINCE SINCE IF HE WAS SO IT
MOVES TO $12.24 THAT'S BELOW THE RATE OF CONSTRUCTION COST INFLATION THAT'S JUST GENERAL INFLATION. >> BUT IT HELPS TO UNDERSTAND
THAT THAT FEE WHEN IT IS PAID GOES INTO THE AFFORDABLE HOUSING TRUST FUND AND THAT THEN DIRECTLY SUPPORTS THE PROVISION OF OTHER AFFORDABLE
HOUSING UNITS SINCE IT'S LOST 28% ROUGHLY OF ITS VALUE, THERE'S BEEN A REAL LOSS OF PURCHASING POWER FOR THOSE ILF DOLLARS.
SO WE COULD DO A COUPLE OF THINGS TO THAT. >> WE COULD KEEP IT WHERE IT IS NOTING THAT AS WE SAW EARLIER, THE FINANCIALS REALLY AREN'T VERY GOOD. IT'S HARD TO MAKE THINGS PENCIL AND WE COULD YOU KNOW
NOT WE COULD CHOOSE NOT TO ADD ANY ADDITIONAL BURDEN. I THINK THE SECOND OPTION IS TO JUST BRING IT UP TO ITS
INFLATION ADJUSTED NUMBER SO THAT WE'RE ROUGHLY IN LINE WITH WHERE WE STARTED IN 2018. >> IT'S ANALYTICALLY SUPPORTED
AND WHILE IT DOES ADD SOME COST IT'S ITS ONLY THERE WHEN DEVELOPERS CHOOSE TO PAY THE IN LIEU FEE TO EXIT A DEAL VERSUS PUTTING THE AFFORDABLE UNITS IN THEIR PROJECT.
AND THE THIRD OPTION IS THAT THERE IS ACTUALLY A NUMBER MUCH HIGHER THAN THIS WHICH IS IF YOU DO THE MATH IN THE REPORT FOR THE FULL COST OF ADDING AFFORDABLE UNITS AND
BUILDINGS IT'S ACTUALLY HIGHER THAN THE IN LIEU FEED THAT WE'RE QUOTING BUT IT BECOMES IT BECOMES MEANINGFULLY HIGHER AND IF WE BEGIN TO SET IT
CLOSER TO THE $10 SQUARE FOOT LEVEL, IT MAY BE THE CASE THAT WE SIMPLY CLOSE OFF THE USE OF THE ILF OR IT BECOMES RESTRICTED TO ONLY THOSE CASES
WHEN THE DEVELOPER ABSOLUTELY HAS TO PAY TO MAKE HIS DEAL WORK. OKAY. THERE'S ALSO THE POTENTIAL ADDITION OF ANY AMOUNT HERE.
SO WHEN THE WE CHOSE ORIGINALLY FORMULATED WE IN FACT HAD IN SOME OF THE PLANNING DOCUMENTS BOTH 30 AND 50% A YEAR MY TEARS AND SO WE
POTENTIALLY COULD ADD THOSE BACK IN AND BECAUSE THE LOSS FROM THOSE UNITS OF THE NOISE LEVEL MEANING THE OPERATING INCOME FOR 30% UNITS FOR
EXAMPLE TYPICALLY DON'T PAY EVEN THE OPERATING COSTS FOR THOSE UNITS 50% PAYS A BIT OVER THEIR OPERATING COSTS. BUT OBVIOUSLY NOT AS MUCH AS
MARCH UNITS. SO WE WOULD LOOK AT POTENTIALLY ADJUSTING THE NUMBER OF UNITS THAT WOULD BE APPLICABLE AT THOSE IN YOUR MIND DOWN SO THAT THE NET
BURDEN ON THE DEVELOPERS PROFORMA FALLS A BIT BUT NOT SO MUCH THAT WE'RE OVERCOMPENSATING ON THE INCENTIVE SIDE IT'S STILL KEPT IN BALANCE.
>> OKAY. SO OUR KEY FINDINGS SUMMARY WE SAW THAT THE MARKET TRANSFORMED LOTS OF MORE UPPER INCOME HOUSEHOLDS BUT AT THE SAME TIME DEVELOPERS SAW A COST RISE AND SUPPLY
CONSTRAINTS HELPED TO PUSH PRICES HIGHER. WE SAW THE SUCCESS OF THE SHOW IN THE AFFORDABLE HOUSING TRUST FUND COMBINED TO PRODUCE
621 AFFORDABLE UNITS OUT OF BELOW 60% RMI WE SAW THE POLICY GOALS REALLY TRYING TO PUSH US TOWARDS GETTING THOSE
30 AND 50% AIR UNITS SO THE FEASIBILITY CHALLENGES OF GETTING THE DEVELOPER PRO FORMA US TO ACTUALLY PENCIL FOR STANDARD DEALS AND WE RAN THROUGH THE POLICIES THAT WE
JUST TALKED ABOUT ABOUT POSSIBLY CHANGING THE ILF FEE AND ADDING THE ADDITIONAL TIERS. >> SO THAT LEAVES US WITH JUST THE ISSUES THAT WOULD BE AVAILABLE FOR THE CITY AND
CARNEY IS GOING TO TALK THROUGH THIS IN A SECOND WITH YOU ABOUT WHAT WHAT THE CITY STAFF HAVE RECOMMENDED AND WHAT'S AVAILABLE FOR YOU AS POLICYMAKERS TO LOOK FORWARD.
THANKS, SEAN. YEAH, I'LL TAKE IT FROM HERE IF YOU COULD GO TO THE NEXT SLIDE. YEAH. SO THANK YOU AND THANKS MARION COMMISSIONERS SO I'LL JUST CUE UP THE POLICY CONSIDERATION BEFORE WE OPEN IT UP TO
QUESTIONS AND A Q&A. SO AND YOU CAN GO TO THE NEXT SLIDE FROM HERE SO BASED ON REPORT FINDINGS STAFF DID HAVE RECOMMENDED ADJUSTMENTS TO THE OPPORTUNITY HOUSING ORDINANCE
WHICH YOU ALREADY HEARD SEAN PRESENT THE MENU. SO HERE ARE THE OPTIONS THAT STAFF ARE RECOMMENDING PROCEEDING WITH OR CONSIDERING. SO ONE WOULD BE ADJUSTING THE FEE IN LIEU BUT IT WOULD BE TO ACCOUNT FOR INFLATION.
SO THAT WAS THAT POLICY OPTION TWO RATHER THAN THE FULL GAAP RECOVERY WHICH THE CONCERN THERE IS THAT IT INHIBITS DEVELOPMENT. SO THE PROPOSAL WOULD BE FOR
$12 PER SQUARE FOOT INCREASE FROM $9.60 AS IT IS CURRENTLY AND THEN THE OTHER RECOMMENDED ADJUSTMENT WOULD BE ADDING THOSE COMPLIANCE TIERS AT 50% AND 30% AM I THIS WOULD
ACTUALLY MIRROR ACTION TAKEN BY THE CITY OF MINNEAPOLIS RECENTLY. SIMILARLY THEY COMMISSIONED A REPORT THAT FOUND THE DIFFICULTIES OF DEVELOPMENT IN THE CURRENT MARKET AND
INTRODUCED THESE COMPLAINTS TIERS TO HAVE FLEXIBILITY FOR DEVELOPERS. AND THEN WE'VE INCLUDED WHAT THOSE INCOME LEVEL SO OUR RENT LEVELS ARE AT THOSE VARIOUS AND MY LEVELS.
NEXT SLIDE PLEASE. WE ALSO STAFF HAVE ALSO BEEN LOOKING AT THE EXISTING OWNERSHIP REQUIREMENTS FOR THE OPPORTUNITY HOUSING ORDINANCE WHICH CURRENTLY ARE BASED OFF OF THE TYPE OF HOUSING BEING
PROVIDED. SO FOR SINGLE FAMILY DETACHED HOMES 9% OF DEVELOPMENT OF 20 UNITS OR MORE MUST BE
AFFORDABLE AT 115%. BUT CONDOS, TOWNHOMES OR COOPERATIVE DEVELOPMENTS WOULD BE REQUIRED TO HAVE 9% OF UNITS AT 60%. SO THERE ARE CONCERNS HERE THAT WE'RE INTRODUCING
CHALLENGES JUST FOR CERTAIN HOUSING TYPOLOGIES OR HOUSING TYPES. AND THEN THE OTHER THING THAT STAFF LOOKED AT WITH REGARDS TO OWNERSHIP IS THAT THE REQUIREMENTS AND INCENTIVES
FOR OWNERSHIP HOUSING IN THE OPPORTUNITY HOUSING ORDINANCE DON'T ALL LINE UP WITH WHAT WE CURRENTLY HAVE AS OUR MOST POWERFUL AND AVAILABLE SUBSIDY FOR AFFORDABLE HOMEOWNERSHIP
WHICH IS LARGER THE LOCAL AFFORDABLE HOUSING ED LARGER QUALIFIES AFFORDABLE HOMEOWNERSHIP AT 115%. AMI SO IF YOU GO TO THE NEXT SLIDE PLEASE SEE THE
RECOMMENDATION WITH REGARDS TO OWNERSHIP HOUSING WOULD BE TO SET THAT REQUIREMENT ACROSS THE VARIOUS HOUSING TYPES TO 9% AT 115% AMI AND ALSO TO
INTRODUCE A DIFFERENT COMPLIANCE TIER TO PROVIDE FLEXIBILITY AND THAT WOULD BE 4% OF UNITS AT 80% OF THE AREA MEDIAN INCOME. AND JUST A REMINDER THAT THIS
IS FOR DEVELOPMENTS OF 20 UNITS OR MORE. SO THIS WOULDN'T BE IMPACTING HOUSING OWNERSHIP DEVELOPMENTS OF 4 OR 5 UNITS ANYTHING FEWER THAN 20 UNITS WOULDN'T BE IMPACTED. AND THEN WE ALSO WANT TO
ENSURE THAT THE ORDINANCE DOES APPLY TO COOPERATIVELY OWNED HOME OWNERSHIP WHICH WE'VE SEEN STAFF HAVE SEEN PROPOSALS THAT THERE ARE CONCERNS THAT
IT ISN'T COVERED OR THAT THE APPLICABILITY OF THE REQUIREMENT ISN'T CLEAR. SO WE WOULD ENSURE THAT THAT REQUIREMENT IS CLEAR AND A FEW OTHER FINAL SLIDE PLEASE FOR
YOUR CONSIDERATION ARE THE NEXT STEPS THAT WE WOULD TAKE TO ENACT THOSE CHANGES AND THAT FOLLOWS THE REQUIREMENT FOR AN ORDINANCE AMENDMENT SO THERE WOULD BE COMMUNITY ENGAGEMENT AND UPDATES BROUGHT
TO THESE BOARDS AND COMMISSIONS WITH A FINAL FORMAL APPROVAL OCCURRING AFTER PUBLIC HEARINGS HELD BY THE PLANNING COMMISSION AND CITY COUNCIL AND THAT COULD
TAKE PLACE LATER THIS YEAR. AND WITH THAT WE'LL OPEN IT UP TO THANK YOU. >> THANK YOU VERY MUCH AND THANK YOU TO OUR CONSULTANTS FOR A VERY COMPREHENSIVE PRESENTATION.
THANKS MUCH THAT THAT'S SOME DEEP STUFF AND INTERESTING VERY INTERESTING. THIS IS BASICALLY A STUDY SESSION SO IT'S AN OPPORTUNITY TO ASK QUESTIONS AND TO TRY AND UNDERSTAND BETTER LEARN
MORE AND SO I WOULD OPEN IT UP TO QUESTIONS AND I'D ASK CONSIDERING THE SIZE OF THE GROUP MAYBE WE LIMIT THE THE OPINIONS AND DISCUSSION TO YOU KNOW, KEEP IT TO A MINIMUM BUT
WE ASK QUESTIONS AND TRY AND UNDERSTAND BETTER SO WE OTHERWISE I THINK IF EVERYBODY TRIED TO WEIGH IN ON THIS IT MIGHT GET A LITTLE UNWIELDY. I KNOW EACH OF YOUR GROUPS, EACH OF THE BOARDS AND
COMMISSIONS WILL BE DISCUSSING THIS AND SO YOU'LL HAVE THE OPPORTUNITY THEN. BUT AS AS THE BIGGER GROUP HERE MAYBE WE CAN MAKE SURE THAT WE EVERYBODY GETS AN OPPORTUNITY TO ASK A QUESTION
PLEASE. THANK YOU. AND THAT WAS A VERY INTERESTING PRESENTATION. QUICK TECHNICAL QUESTION ON THE IN LIEU OF FEES, IT'S A TWO PART QUESTION.
THE FIRST QUESTION IS IS IT A ONE TIME PAYMENT? AND THE SECOND QUESTION IS WITH THE PROPOSED CHANGES, WOULD THE IN LIEU FEE WOULD
THE PROPOSAL BE TO KEEP IT AS AN ALL OR NOTHING FEE I.E. YOU EITHER COMPLY COMPLETELY OR YOU DON'T COMPLY? WHAT IF A DEVELOPER IS WILLING TO COMPLY WITH PROVIDING YOU
KNOW, THE 60% BUT NOT THE 30%? THANK YOU. THANK YOU MAYOR COMMISSIONS THE FOR THE FEE FUNCTIONS AS A FLAT FEE AS YOU SAID AND IT'S
CALCULATED BASED OFF OF THE LEASABLE SQUARE FOOTAGE FOR THE BUILDING SO THAT $9 PER SQUARE $9.60 TIMES THE LEASABLE SQUARE FOOTAGE AND THAT FEE IS PAID OUT AT
BUILDING PERMIT ISSUANCE SO THE FEE THERE'S OPTIONS FOR HOW THAT IS COLLECTED BY THE CITY EITHER IT'S IMMEDIATELY RELEASED FOR USAGE WITHIN THE HOUSING AFFORDABLE HOUSING TRUST FUND OR THE DEVELOPER
MAY ELECT TO ESSENTIALLY HOLD THAT FEE FOR TWO YEARS AND HAVE IT APPLIED TO A SUBSEQUENT DEVELOPMENT THAT SUBSEQUENT DEVELOPMENT WOULD HAVE TO PROVIDE THE AFFORDABLE HOUSING THAT WOULD HAVE BEEN REQUIRED WITH THEIR INITIAL DEVELOPMENT.
SO THAT'S THE CURRENT STRUCTURE OF THE FEE IN LIEU. AND THE TO YOUR QUESTION ON FLEXIBILITY FOR HOW THAT REQUIREMENT IS APPLIED, THE STRUCTURE OF THE HOA DOES
ALLOW FOR DEVELOPERS TO TAKE A MENU OF COMPLIANCE OPTIONS. WE HAVEN'T SEEN THAT YET UTILIZED TO DATE BUT ESSENTIALLY IT OPENS UP THE OPPORTUNITY FOR NEGOTIATION AND THE ORDINANCE HAS LANGUAGE
OF HOW TO VALUE SOME OF THESE THINGS SOME OF THOSE COMPLIANCE OPTIONS THAT WE HAVEN'T GONE OVER BUT ARE VERY INTERESTING IF YOU WANT TO TAKE A LOOK AT INCLUDE THINGS
LIKE ACQUISITION OF EXISTING HOUSING AND CONVERTING TO AFFORDABLE HOUSING OFF SITE DEVELOPMENT OF AFFORDABLE HOUSING INSTEAD OF ONSITE DEVELOPMENT AND THEN THERE ARE SOME OTHER OPTIONS SO
DEVELOPERS MAY CHOOSE TO SELECT FROM THIS MENU OF COMPLIANCE OPTIONS. OTHERS LET'S REMEMBER NELSON
OR A COMMISSIONER NELSON MACHETE WHERE A COUNCILMEMBER NELSON OR IS THERE SOME GREAT
I'M SORRY I JUST HAVE A COUPLE OF QUESTIONS. UM, SO IN THE INFORMATION THAT YOU SAID THAT HOUSING WAS SOMEWHERE AROUND $200,000 PER
UNIT BUT MY MY RECOLLECTION FROM LOOKING AT THE VARIOUS PROJECTS THAT HAVE COME FORWARD IS FRANKLY OUR SUBSIDY WAS OVER $200,000 PER UNIT.
CAN SOMEBODY SORT OF EXPLAIN WHY WE'RE SUBSIDIZING A UNIT $200,000 AND YET THEY ONLY COST 200,000? I'M CONFUSED BY THAT DATA
POINT. AM I WRONG IN MY RECOLLECTION ABOUT THAT? MAYBE I'LL COME AND THOSE OKAY. THANK YOU MAYOR COMMISSIONERS,
I THINK YOU'RE MAYBE REFERRING TO BLOOMINGTON AFFORDABLE HOMEOWNERSHIP PROGRAM BUT NOW I AM REFERRING TO TIFF. OH OKAY. >> YEAH, I'LL HAND IT OVER.
KEVIN OKAY. YEAH I CAN ALSO SAY THAT IN OUR MODELING WE USED TO 22 300,000 DEPENDING UPON THE TYPOLOGY THAT WAS USED WE MAY
HAVE EVEN GONE TO 350 FOR THE HIGHER LEVELS SO I THINK IT WAS ONLY GARDEN UNITS THAT WERE DOWN THAT THAT LOW. I THINK THE OTHER QUESTION I
HAVE TO DEFER TO LOCAL MAYOR COMMISSIONERS COUNCILMEMBER NELSON SO WE HAVE DONE SOME ANALYSIS OF THE PER UNIT SUBSIDY THAT HAS BEEN PROVIDED
THROUGH THE HISTORY OF THE AFFORDABLE HOUSING TRUST FUND AND THAT PER UNIT SUBSIDY IS NOT AT THAT 200,000 AMOUNT. IT'S I THINK IT'S CLOSER TO 3035. I'M LOOKING AT KENNY WHO'S
SHAKING HIS HEAD. YES. SO THAT'S SORT OF BEEN OUR BENCHMARK WHEN WE'RE EVALUATING PROJECTS THE 200,200,000 AMOUNT THAT WAS
REFERENCED IT I'M NOT QUITE SURE WHERE THAT NUMBER CAME FROM MAYBE IF WE WANT TO GO TO THAT SLIDE BUT FROM A CITY PERSPECTIVE USUALLY WHEN WE'RE LOOKING AT SUBSIDY WE'RE BASING IT ON SORT OF THAT
AMOUNT THAT I JUST FRAME IT. >> I APPRECIATE THAT AND I THINK HE CLARIFIED THE COST BUT MY RECOLLECTION WHEN WE'VE DONE TIFF HAS BEEN A MUCH HIGHER AMOUNT PER UNIT ON ALL
THE DEVELOPMENTS PARTICULARLY THE THE SOUTH LOOP AREA. MY SECOND QUESTION IS HOW MANY PROJECTS HAVE WE DONE THAT? IT LOOKED LIKE IT MIGHT CRACK
DEALS BUT 66% OR SOMETHING UTILIZED TIFF IS THAT RIGHT ? OKAY LET'S 6464 AND THEN HOW
MANY TOOK ADVANTAGE OF THE ILF ? MY RECOLLECTION IS ONE BUT I MAY BE WRONG AND THAT ONE THEY WANT THE MONEY BACK.
YEAH I THINK YOU'RE CORRECT. OKAY . AND THEN IF WE DID NOT HAVE THE INCLUSIONARY REQUIREMENT
HOW MANY UNITS COULD BE BUILT IN THE MARKETPLACE WITHOUT THAT REQUIREMENT TO DO THAT
? >> YOU'RE ASKING YOUR OPINION OR I'M JUST ASKING IF IT'S BEEN STUDIED AND WE DIDN'T
STUDY IT FOR THIS PROJECT. >> I MEAN I CAN TELL YOU WORK WE'VE DONE IN OTHER PLACES WHERE WE WERE LOOKING AT VOLUNTARY TRADES OR DEVELOPMENT BONUSES AND MONEY
FRANKLY TO GET AFFORDABLE IF THAT'S WHAT YOU'RE ASKING. >> I'M JUST ASKING STRIKE NUMBER OF UNITS REGARDLESS
OF PRICE YEAH, WE DIDN'T EVALUATE THAT FOR THIS PROJECT
BUT ANYTHING ELSE OTHER SO I HAVE A QUESTION AND I THINK FOR OUR OUR CONSULTANT TEAM YOU TOUCHED ON IT A LITTLE BIT
BUT I'M THINKING BIGGER PICTURE ABOUT HOW ROBUST THE STUDY IS CONSIDERING THE UNCERTAINTY OF TARIFFS, CONSIDERING OIL PRICES, CONSIDERING YOU KNOW, THE
PROSPECT OF A OF AN EXPANDING WAR AND WHATEVER MIGHT BE TO HAPPEN TO THE ECONOMY. SO HOW HOW ROBUST IS THE THE WORK THAT YOU'VE DONE AND HOW HOW CONFIDENT ARE YOU THAT IT
CAN WITHSTAND SOME OF THE EXTERNAL FACTORS THAT WE JUST DON'T QUITE UNDERSTAND OR KNOW HOW FAR THEY'RE GOING TO HIT IT? WE'VE DONE ALL YOU CAN DO AT
THE AT THE NOTIONAL LEVEL MEANING WE'VE YOU KNOW, LOOKED AT THE NUMBERS AND WE CRUNCHED IT AND WE RAN THROUGH, YOU KNOW, 100 DIFFERENT MODEL ITERATIONS.
BUT THE MARKET DOES WHAT THE MARKET'S GOING TO DO AND THERE ARE THINGS THAT NO HUMAN CAN PREDICT, RIGHT? ALL THAT SAID, LOOKING AT THE
REAL ESTATE MARKET GENERALLY IN BLOOMINGTON IN PARTICULAR I KNOW THERE ARE VERY, VERY PROMISING GREEN SHOOTS IN THE MARKET THAT LEAD ME TO THINK THAT WE'RE UNLIKELY TO
EXPERIENCE ANOTHER SIGNIFICANT DOWNTURN AT LEAST IN BLOOMINGTON. THE WITH RENT GROWTH I SAW RIGHT BEFORE OUR CALL I THINK
WE WERE APPROACHING BETWEEN 3 TO 5% DEPENDING UPON PRODUCT TYPE WHICH IS VERY GOOD. LOTS OF PLACES ARE 1 TO 2% THESE DAYS AND I WOULD IMAGINE
THAT WITH WHAT THE DEVELOPERS TOLD US WHEN THE MARKET WAS EVEN LESS GOOD THAN IT IS NOW THAT THEY LIKED BECAUSE THEY LIKE THE INCENTIVES THAT IT OFFERS AND THAT THEY REALLY
DIDN'T PUSH BACK ON THE EXISTENCE OF THE SHOW PER SE. SO I FEEL VERY CONFIDENT THAT KEEPING IT IN PLACE IT'S AS IT CURRENTLY STANDS AGAIN WITH THE ADJUSTMENTS WE'VE TALKED
ABOUT IS ITS OWN ROBUST DATA POINT RIGHT? THE DEVELOPERS HAVE COME TO RELY ON IT, THEY UNDERWRITE WITH IT, THEY KNOW WHAT TO EXPECT THAT STABILITY IS USEFUL FOR THEM.
OH AND WE WE DO A LOT OF THIS WORK AROUND THE COUNTRY AS WELL. AND TO THAT TO SEAN'S LAST POINT CERTAINTY IS WHAT THE DEVELOPMENT COMMUNITY REALLY
WANTS IF YOU KNOW INTEREST RATES OR LOGISTICAL PIPELINE SUPPLY PIPELINES OR WATER AND
OIL PRICES AND THOSE THINGS ARE GOING TO DO WHAT THEY'RE DO AND THEY WILL MAYBE DELAY A RECOVERY SPEED UP A SLOWDOWN IN THE REAL ESTATE IN REAL
ESTATE DEVELOPMENT. BUT IT'S THE CERTAINTY THAT YOU PROVIDE IN YOUR REGULATORY ENVIRONMENT AND THROUGH T HOA AND BECAUSE THIS IS
SOMETHING THAT'S ALREADY ON THE BOOKS AND YOU'RE TALKING ABOUT PROVIDING THEM IN SOME WAYS A BIT MORE FLEXIBILITY
EVEN IF RAISING THE YOU SEE I THINK $3 OR 250 A FOOT WHICH IS YOU KNOW, NOT VERY MUCH
IN TERMS OF THE OVERALL PROJECT COST AND I WOULD I THINK THAT YOUR PARTICULAR MARKET HAS ALL AND YOUR DEVELOPMENT COMMUNITY IS
ALREADY ADJUSTED TO HAVING THIS ON THE BOOKS. SO THOSE MACROECONOMIC FACTORS ARE GOING TO DO WHAT THEY DO BETTER IN TERMS OF REALLY
THROWING A WRENCH INTO YOUR LOCAL MARKET BECAUSE THIS IS ALREADY ON THE BOOKS AND YOU'VE PROVIDED UNCERTAINTY AND YOU'VE PROVIDED THEM DIFFERENT INCENTIVES ALONG
WITH THIS REALLY GIVEN THEM AS MUCH AS YOU POSSIBLY CAN TO DO THEM CONFIDENCE TO MOVE FORWARD.
THANK YOU. THAT'S HELPFUL. >> COUNCILMEMBER DALLESSANDRO, I SEE YOUR HAND UP. THANK YOU, MR. MAYOR. APPRECIATE THE OPPORTUNITY. TALK TO ALL OF YOU.
SORRY I WASN'T ABLE TO BE THERE IN PERSON JUST TO KIND OF BRIEF QUESTIONS TO STIMULATE A THOUGHT PROCESS. WELL, I YOU KNOW, I KNOW THAT THE OPPORTUNITY HOUSING ORDINANCE IS IS KIND
OF THERE'S THE COUNCIL KIND OF EDICT THAT SITS ON TOP OF ALL OF US THAT THAT KIND OF FORCES SOME OF THESE DECISION MAKING. BUT I I, I WANT TO COUNTER THAT WITH THE NOTION OF OF
FLEXIBILITY AND THE IDEA OF THAT WE USED IN OUR R ONE DECISION MAKING FOR EXAMPLE THAT WE SAID HEY JUST PUT IT OUT THERE AND LET THE MARKET DO WHAT IT DOES IN IN IN LIGHT
OF SOME OF THAT IN IN LIGHT OF THE VOLATILITY THAT YOU DESCRIBED HERE, WAS THERE ANY CONSIDERATION TO JUST LIKE SAYING HEY, THESE INCENTIVES
ARE AVAILABLE FOR OR THERE'S A DIFFERENT SET OF INCENTIVES AVAILABLE AS LONG AS YOU MAKE EVERY UNIT IN YOUR BUILDING NO
MORE THAN 115% OF IT IS IS IS THAT IS THAT SOMETHING THAT IS AN OPTION THAT WOULD STIMULATE THE HOUSING DEVELOPMENT IN A WAY THAT WOULD GET US UNITS
EVEN IF THOSE UNITS ARE ABOVE WHAT OUR TARGETS ARE BUT WOULD STIMULATE SOME OF THE OTHER ECONOMIC FACTORS THAT YOU ALL MENTIONED LIKE THE FACT THAT WE DON'T HAVE YOU KNOW, WE'RE
NOT THROWING IN SOME OF THE WORKFORCE SECTORS THAT HAVE BEEN IDENTIFIED IN THE FAMILY SECTORS THAT HAVE BEEN IDENTIFIED. SO I'M JUST CURIOUS IF IF IF THAT'S A DIFFERENT CONCEPT
OF LIKE SAYING HEY, NONE OF YOUR NONE OF YOUR PROPERTY CAN BE MARKET RATE BUT NONE OF THEM HAVE TO BE 30% OF YOUR AIM EITHER AND DOES THAT DO ANYTHING TO TO TO TO
POTENTIALLY STIMULATE ESPECIALLY IN THE HOMEOWNER AREA FOR EXAMPLE IN MAINE IT'S IT'S AN INTERESTING QUESTION
ALMOST BORDERS ON THE VOLUNTARY SIDE OF THE PROGRAM WHERE YOU CREATE A PROGRAM THAT SAYS LOOK YOU CAN VOLUNTARILY OPT INTO THIS AND AND AND RECEIVE ALL OF THESE
BENEFITS. WE'RE NOT REQUIRING THAT YOU COMPLY FOR ANY GIVEN MARKET RATE DEVELOPMENT YOU WOULD HAVE TO OPT IN. BUT IT'S NOT SOMETHING WE EVALUATED. >> BUT IT SOUNDS INTERESTING
SO I'M GOING TO ASSUME THAT YOU DON'T SEE THAT ELSEWHERE EITHER. >> THAT'S NOT SOMETHING WE EXPERIENCE WITH. >> YEAH. YEAH WE ACTUALLY WE'RE WORKING IN AUSTIN NOW LOOKING AT OTHER
VARIATIONS OF HOW YOU CAN STIMULATE MARKET RATE DEVELOPERS TO USE JUST PURELY ON A VOLUNTARY BASIS HOW YOU
CAN GET AFFORDABLE HOUSING UNITS INCLUDED. IT'S IT'S DIFFERENT BECAUSE OF JURISDICTIONAL RULES EVERYWHERE YOU TRY THIS WE ALSO DID A PROJECT IN DALLAS
THAT WAS VERY SIMILAR TO THAT WE CHANGED THE ONE PORTION OF THE DEVELOPMENT CODE SPECIFICALLY TO TARGET VOLUNTARY EXCHANGES BUT YOU HAVE TO HAVE SOME INITIAL SORT
OF COMFORT WITH THE FACT THAT, YOU KNOW, PURELY VOLUNTARY EXCHANGE YOU ALMOST HAVE TO OVER INCENTIVIZE THE POT BECAUSE THE DESIRE FOR COMPLIANCE IS NOT AS HIGH AS THE DESIRE TO GET SOMETHING
BUILT AND JUST MOVE ON. RIGHT? SO IF THE COST IS X YOU NEED TO BE PROVIDING SOME MULTIPLE ABOVE X IT DOESN'T HAVE TO BE TWO X BUT YOU KNOW 1.251.2
SOMETHING THAT SAYS YOU WANT TO PARTICIPATE IN THIS PROGRAM BECAUSE BY NOT PARTICIPATING YOU'RE LEAVING MONEY ON THE TABLE. >> BUT THAT'S A SORT OF A DIFFERENT VIEW OF THE RIGHT. OKAY.
FOR OUR CONSIDERATION NOT NECESSARILY WITH THE REVISIONS THAT ARE IN FRONT OF US BUT FOR SOMETHING FOR FUTURE THOUGHT AND ESPECIALLY AS COUNCILMEMBER NELSON, I KNOW YOU HAVE TALKED A LOT ABOUT YOUR DISDAIN FOR TIFF IN THIS
PLACE MAYBE MAKING THAT KIND OF A LEVER WHERE YOU KNOW, TIFF COMES AT A HIGHER PRICE BECAUSE YOU HAVE THE OPTION OF VOLUNTEERING OR VOLUNTARILY DOING ALL OF YOUR UNITS AT 115
OR WHATEVER MIGHT BE A WAY TO INCENTIVIZE LIKE TIFF THAT GIVES US A LOT MORE TOWARDS THAT LOWER TIER OF OUR AM-I REQUIREMENT. SO JUST SOMETHING TO THINK ABOUT.
THANKS FOR THE OPPORTUNITY TO ASK THE QUESTION. >> THANKS. >> ANYONE ELSE?
COUNCILMEMBER LOHMANN YES , BUT HERE WE GO. I GUESS MY QUESTION WOULD BE FOR SINCE WE'VE GOT ALL THESE FOLKS FROM ALL THESE DIFFERENT BOARDS THAT ARE HERE I'M
CURIOUS WHAT SOME OF THE FOLKS FROM HRA AND SUSTAINABILITY THINK OF THIS STUDY YOU KNOW TO KIND OF GET SOME OF YOUR
YOUR KIND OF FEEDBACK SO YOU'RE SURE ANYBODY WANT TO TAKE A RUN? >> WE I DON'T HAVE A QUESTION.
IT'S MORE JUST FEEDBACK AND MY FEEDBACK IS I'M NOT IT'S NOT A GOOD FEELING BEING SOMEONE WHO IS PART OF THE SHOW FROM MORE
THE INCEPTION OF IT TO GO TO 115% AM I I MEAN THE WHOLE POINT OF THE OITO WAS TO GO FOR DEEP AFFORDABILITY AND I JUST DON'T FEEL THAT THAT'S WHAT THIS IS DOING. SO THAT'S MY FEEDBACK IS I'M
JUST NOT I DON'T FEEL COMFORTABLE WITH THIS AT ALL. THANK YOU. I'M YES, PLEASE.
>> SO THAT WAS FOR THE THAT WAS FOR THE OWNERSHIP PORTION. NO, THE MATH ON OWNERSHIP JUST FOR WHAT IT'S WORTH IS IT'S A
DIFFERENT EQUATION THAN WHEN YOU LOOK AT THE RENTAL UNITS ON OH I'LL SAY AFFORDABLE OWNERSHIP IS REALLY
CHALLENGING BECAUSE I MEAN I THINK YOU SAW ON THE SLIDE THAT THEY'RE DOWN PAYMENT ASSISTANCE INCENTIVES AND PROGRAMS THAT KICK IN AT AT
LIKE SOME OF THOSE MIDDLE INCOMES AROUND 210% BUT IF YOU HAVE THIS THE DEVELOPER WERE TO FULLY SUBSIDIZE THE AFFORDABLE OWNERSHIP UNIT. THE PEOPLE STILL HAVE TO QUALIFY FOR A MORTGAGE WHICH
IS YOU'VE GOT INTO THOSE DEEPER LEVELS OF AFFORDABILITY BECOMES MORE AND MORE CHALLENGING TO CONVINCE A BANK TO GIVE YOU A COMMERCIAL
MORTGAGE AND SO AT 60% REALLY ANYTHING BELOW 80% A LOT OF PLACES OF EXPERIENCE THAT THOSE UNITS SIT FALLOW AND ON
THE OTHER SIDE OF THAT SORT OF WHEN YOU GET TO THAT 115% AMI, YOU KNOW IF YOU HAVE AFFORDABILITY ON A ON A FUNCTIONAL UNIT THERE MIGHT BE
SOME APPRECIATION CAP OR DO RESTRICTIONS ON APPRECIATION FOR THE HOMEOWNERS SO THAT IT CONTINUES TO BE AFFORDABLE FOR THE NEXT PEOPLE WHO BUY IT. >> AND I WAS IN THIS
HOUSEHOLDS WILL YOU KNOW THEY'LL STRETCH THEY'LL PAY MORE THAN 30% IF THEY'RE ANYWHERE CLOSE IN THE MARKET SO THAT THEY DON'T HAVE TO TAKE THE CAP ON APPRECIATION.
SO I THINK IT'S IT'S DOABLE IN THAT SORT OF 80 TO 120% DEPENDING ON THE MARKET. BUT IT'S IT'S JUST A REALLY HARD NEEDLE TO THREAD
PRACTICALLY YOU KNOW, TO TO AND TO SHERI'S POINT, THE OTHER THING THAT DOESN'T GET TALKED ABOUT MUCH BECAUSE WE ALWAYS TALK ABOUT QUALIFYING FOR HOME IT'S THE HOMEOWNERSHIP MAINTENANCE COST FOR PEOPLE WHO ARE AT LOWER
INCOMES CAN BE VERY CHALLENGING IF THE AC BREAKS AND THEY NEED A NEW ROOF OFTEN IF THERE'S NOT A PROGRAM FOR ASSISTANCE THAT EXISTS AT THAT
MOMENT YOU COULD YOU CAN HAVE OTHER PROBLEMS THAT YOU DIDN'T FORESEE. SO THAT'S ANOTHER REASON WHY YOU JUST DON'T OFTEN SEE CERTAIN AFFORDABILITY ON THE OWNERSHIP SIDE IT'S A GREAT IDEA IF SOMEONE CAN FIGURE IT OUT.
>> IT'S JUST THE MATH VERY HARD. >> ANYTHING ELSE FROM THE GROUP HERE COMMISSIONER LUNS
FROM SUNNY CALIFORNIA. THANK YOU, YOUR HONOR. I WANTED TO FOLLOW UP ON MR. WHAT SEAN BOURGEOIS SAID
AFFORDABILITY INSURANCE COSTS ARE STAGGERING AND YOU KNOW, IT'S ONE THING TO BUY A HOUSE, MAKE MORE MORTGAGE PAYMENT TAXES ARE WHAT THEY ARE.
BUT YOU KNOW, INSURANCE COSTS NOW IT'S GOT TO BE A MASSIVE HURDLE. THE THING I'M KIND OF WONDERING ABOUT BEYOND THAT COMMENT IS THAT WHEN YOU
INTERVIEWED THE DEVELOPERS WOW ,WHAT IS THEIR PSYCHE OR ARE THEY POSITIVE ABOUT HOW IS DEVELOPING HOUSING OR ARE THEY PULLING IN THEIR HORNS? WHERE ARE THEY?
AND IT KIND OF TIES INTO YOUR WORK THAT YOU HAVE DONE. I WANT TO KNOW WHAT THE SHELF LIFE MIGHT BE THIS STUDY I MEAN I FOLLOW A LOT OF IT. I WAS IN VALUATION FOR MANY, MANY YEARS OF REAL ESTATE SO I
FOLLOW MUCH OF WHAT I THINK FAIRLY WELL. BUT AGAIN WE I CAN'T REMEMBER ONE OR HOW OLD CAME INTO EXISTENCE BUT HERE WE ARE
IN 2026 YEARS IS THAT BEEN SO WHAT WOULD BE THE SHELF LIFE FOR THIS WORK NOW GOING FORWARD AND OF COURSE KEEPING IN MIND THAT CHANGES EVER PRESENT IN MARKETS HAVE THIS
THING CALLED FLUCTUATION THAT'S KIND OF A RUN ON BUT I'D LIKE I'D LIKE YOUR FEAR OF WHAT THE DEVELOPERS ARE TELLING YOU. >> OKAY SO WITH THAT MOSTLY WE TALK TO MULTIFAMILY DEVELOPERS
AND AGAIN THEY WERE REASONABLY BULLISH NOT NECESSARILY ON THE CURRENT MOMENT BUT YOU KNOW DEVELOPERS ARE KNOWN FOR OPTIMISM, RIGHT? I MEAN IT'S A IT'S A RISK FORWARD VENTURE AND YOU DON'T
MEET TOO MANY PESSIMISTIC DEVELOPERS. IT'S JUST NOT IN THEIR GENES. THEY WILL TELL YOU IT'S A CHALLENGING ENVIRONMENT AND AGAIN I THINK THINGS HAVE TURNED THE CORNER A BIT FOR FOR THE BETTER BUT I DON'T
RECALL AND I MEET THAT MOST OF THE INTERVIEWS WITH THE DEVELOPERS BUT I DON'T RECALL ANY. >> YEAH. SO JUST A QUICK FEEDBACK. I MEAN MOST OF THE DEVELOPERS ACTUALLY ALL OF THE DEVELOPERS WANT TO COMPLY WITH THE ORANGE
OR THEY WANT AFFORDABLE HOUSING TO BE PART OF THEIR DEVELOPMENT TO MAKE IT WORK BUT ALL OF THEM FELT THAT THIS
WAS THE RIGHT THING TO DO AND THEY WOULD TRY THEIR UTMOST BEST TO DO IT AND THAT'S WHY YOU SEE THAT ONLY ONE PROJECT WENT THE ROUTE AND MOST
OF THEM TRIED TO MAKE IT WORK SO HAVING AFFORDABLE AS PART OF BUILDING DEVELOPMENT THE
SECOND POINT THE DEVELOPERS REALLY ARE SQUEEZED YOU KNOW IN THAT SLIDE THAT THAT WE HAD SHOWN HERE IN THE CLASSIC
SQUEEZE OF COSTS HAVE GONE OUT OF CONTROL AND RENTS HAVE YOU KNOW REACHED A CEILING AND IT'S ONLY NOW FOR A LITTLE BIT OF APPRECIATION.
SO THERE'S DEFINITELY A YOU KNOW THEY'VE BEEN CAUGHT IN THE CLASSIC SQUEEZE AND YOU KNOW TIME WILL TELL BREAK OUT OF IT COSTS WILL SETTLE DOWN AND CYCLES WILL KICK IN ONCE
MORE AND SO DEVELOPERS QUITE QUITE ARE SORT OF OPTIMISTIC THAT THEY WILL BE ABLE TO WEATHER THE STORM AND TO ADD
TO THE POINT ABOUT THE SHELF LIFE OF THE STUDY, IT'S VERY HARD TO SAY EVERYTHING YOU SAID IS CORRECT. THE MARKET AND THE WORLD MOVES IN WAYS THAT NONE OF US CAN PREDICT. RIGHT. BUT IT'S BEEN EIGHT YEARS
ROUGHLY SINCE WE DID THE FIRST VERSION OF THE SHOW AND REALLY WE WENT THROUGH AN INCREDIBLY DIFFICULT SET OF CHALLENGES, YOU KNOW, WITH THE PANDEMIC AND INFLATION AND INTEREST
RATE SPIKES TO HISTORICAL LEVELS. LET'S HOPE WE DON'T DO ANY OF THOSE THINGS AGAIN. YOU KNOW, ASSUMING WE LIVED THROUGH MORE NORMAL TIMES, I WOULD ASSUME WE HAVE ABOUT AS
MUCH LIFE IN THIS ONE AS WE HAD IN THAT ONE. BUT YOU KNOW, WORST CASE YOU COULD ALWAYS DO MORE FREQUENT UPDATES.
NO, YOU'RE ON MUTE. JUST THE ONES I JUST SAID THANK YOU. OKAY. >> ALL RIGHT, FOLKS, LAST CALL FOR QUESTIONS.
OTHERWISE I THINK WE SHOULD MOVE ON WITH OUR AGENDA HERE. ALL RIGHT. LET'S WANT TO SEND OUR THANKS TO OUR CONSULTANTS FROM DALLAS AND BE A GREAT WORK VERY
INTERESTING STUFF AND I APPRECIATE THE WORK THAT YOU PUT IN AND YOUR ANALYSIS AND YOUR UNDERSTANDING OF BLOOMINGTON. >> THANKS SO VERY MUCH. THANK YOU FOR HAVING US. THANK YOU.
WE WILL MOVE ON TO ITEM 1.2 AND OUR ORGANIZATIONAL BUSINESS TONIGHT THIS IS AN UPDATE ON OUR BLOOMINGTON 2050 COMPREHENSIVE PLAN TO CALL A CASTING DAY IS GOING TO LEAD
US THROUGH THIS JUST AS SOON AS YOU COULD SEE A PRESENTATION OF ALL RIGHT. GOOD EVENING MAYOR
COUNCILMEMBERS AND COMMISSIONS . I'M GOING TO SHARE MY SCREEN. LET ME MUTE MYSELF THERE AND SHARE
. OKAY? OKAY. PERFECT. ALL RIGHT. GOOD EVENING. MY NAME IS DAKOTA CAST AND I'M A PLANNING SUPERVISOR IN OUR PLANNING DIVISION AND SERVING AS A PROJECT MANAGER FOR OUR
BLOOMINGTON 2050 COMPREHENSIVE PLAN UPDATE. SO I JUST WANT TO KIND OF WALK THROUGH THE KIND OF THIS FIRST INTRODUCTION CONVERSATION AND WE'LL HAVE MANY MORE CONVERSATIONS HERE OVER THE
OVER THE PROCESS TO WORK ON OUR COMPREHENSIVE PLAN. SO IF YOU DON'T REMEMBER ANYTHING ELSE TONIGHT, HOPEFULLY YOU CAN JUST TAKE AWAY THESE THREE KIND OF KEY MESSAGES THAT I'LL COME BACK TO YOU IN THAT PRESENTATION.
SO BLOOMINGTON 2050 IS OUR ROADMAP FOR THE CITY'S FUTURE. EVERYONE CAN INFLUENCE THE VALUES, GOALS AND STRATEGIES OF BLOOMINGTON 2050 AND LET ME
MOVE THIS AND AS WE'VE ALREADY KIND OF ALLUDED TO IN SOME OF THE CONVERSATIONS HERE WITH OH OH AND THINKING ABOUT THE FUTURE ENCOURAGING FOLKS TO
KIND OF EMBRACE UNCERTAINTY SO THAT WE CAN COLLECTIVELY AND PREPARE FOR CHANGE. SO JUST WANT TO GIVE A HIGH LEVEL OVERVIEW OF THE COMPREHENSIVE PLAN PROCESS. A COMPREHENSIVE PLAN IS A LONG
TERM CITYWIDE PLAN THAT OUTLINES OUR VISION FOR GROWTH AND CHANGE, THAT ESTABLISHES COMMUNITY GOALS, STRATEGIES ACTIONS RELATED TO A NUMBER OF THINGS INCLUDING LAND USE, HOUSING, TRANSPORTATION PARKS,
COMMUNITY INFRASTRUCTURE AND FACILITIES. PART OF OUR WORK ALSO RELATES TO THE REGIONAL DEVELOPMENT GUIDE THAT'S ADOPTED BY THE METROPOLITAN COUNCIL AND SO THEY ADOPTED THEIR REGIONAL
PLAN LAST FEBRUARY AND THAT'S UNDER THE FRAMEWORK OF IMAGINE 2050 AND THEN WE HAVE UNTIL DECEMBER 31ST OF 2028 TO GET OUR LOCAL COMPREHENSIVE PLAN ADOPTED BY THE METROPOLITAN
COUNCIL. AND SO OUR 2050 COMPREHENSIVE PLAN UPDATE IS CALLED BLOOMINGTON 2050. SO IF I'M SAYING BLOOMINGTON 2050 OR 2050 PLAN KIND OF INTERCHANGEABLY TALKING
ABOUT THE SAME DOCUMENT JUST FOR YOUR AWARENESS, THE MET COUNCIL DOES PROVIDE US A SYSTEM STATEMENT AND A MINIMUM REQUIREMENT CHECKLIST SO THERE ARE SOME REQUIRED COMPONENTS
THAT WE HAVE TO ADDRESS IN OUR COMPREHENSIVE PLAN. THESE ARE THE KIND OF ELEMENTS OR CHAPTERS THAT THEY REQUIRE TO BE INCLUDED IN OUR LOCAL COMPREHENSIVE PLAN.
I JUST HIGHLIGHTED CLIMATE AND NATURAL SYSTEMS AS THOSE ARE NEW REQUIREMENTS IN OUR 2050 CYCLE THAT WERE PREVIOUSLY PART OF OUR 2040 CYCLE. SO LOOKING AT CLIMATE
ADAPTATION MITIGATION STRATEGIES WITH A PARTICULAR FOCUS IN EXTREME HEAT AND LOCALIZED FLOODING AND THEN NATURAL SYSTEMS IS LOOKING AT YOU KNOW WATER BODIES LIKE
LAKES RIVERS, STREAMS, PROTECTED WETLAND AREAS KIND OF SENSITIVE NATURAL OR WILDLIFE AREAS IN THE CITY. AND THEN OF COURSE CITIES CAN ALWAYS GO BEYOND THOSE MINIMUM
REQUIREMENTS AND TAILOR THEIR LOCAL COMPREHENSIVE PLAN TO THEIR THEIR PRIORITIES AND NEEDS. AND I'LL KIND OF TOUCH ON THAT HERE. SO THIS IS OUR PROPOSED OUTLINE IN FOR BLOOMINGTON
2050. SO WE HAVE OUR EXECUTIVE SUMMARY A LAND USE ELEMENT, A HOUSING ELEMENT, TRANSPORTATION, WATER RESOURCES AND UTILITIES THAT REALLY KIND OF TOUCHES ON
SURFACE WATER, WATER SUPPLY WASTEWATER AND THE NEW FOR OUR 2050 PLAN INTRODUCING AN ECONOMIC DEVELOPMENT CHAPTER IN OUR 2040 PLAN THERE'S SOME
SLIGHT REFERENCE TO ECONOMIC DEVELOPMENT IN OUR LAND USE CHAPTER BUT JUST KIND OF GIVEN THE GROWTH OF THE PORT AUTHORITY AND THEIR FIVE YEAR STRATEGIC PLAN AS WELL AS ONE OF THE BEATTIE STRATEGIC PLAN
GOALS OF AN INCLUSIVE OF INCLUSIVE ECONOMIC GROWTH WANTING TO TO BRING THAT INTO THE COMPREHENSIVE PLAN PROCESS LIKE I MENTIONED THE CLIMATE
CHAPTER THAT WILL BE NEW COUNCIL REQUIREMENTS AND THEN I KIND OF PUT NEW ISH ON THESE NEXT TWO CHAPTERS IN OUR 2040 PLAN WE HAD A COMMUNITY FACILITIES CHAPTER THAT KIND
OF COVERED EVERYTHING SO COVERED PARKS AND ALL KIND OF COMMUNITY FACILITIES BUT AGAIN JUST KIND OF GIVEN THE GROWTH OF THE PARKS WITH BLOOMINGTON FORWARD PROJECTS, THE PARK SYSTEM MASTER PLAN
THAT WAS ADOPTED JUST A FEW YEARS AGO AND THESE NEW NATURAL SYSTEMS REQUIREMENTS I'M REALLY KIND OF SEPARATING THAT OUT INTO A SEPARATE CHAPTER REALLY RELATED TO PARKS AND OPEN SPACE AND THEN
HAVING A COMMUNITY HEALTH AND SERVICES ELEMENT TO BRING IN THOSE NON PARK COMMUNITY FACILITIES THINKING A LITTLE BIT MORE BROADLY AROUND COMMUNITY ASSETS, THINKING ABOUT CREATIVE PLACEMAKING AND
THE WORK THAT'S BEING DONE AT THE CITY AND THEN TYING IN A LOT MORE OF OUR PUBLIC HEALTH INITIATIVES. AGAIN, JUST A WASN'T REALLY ACCOUNTED FOR IN THE 2040 PLAN. WANT TO BRING THAT INTO 2050
AND KIND OF ALIGNING WITH ONE OF OUR OTHER BEAUTY STRATEGIC GOALS AND THEN THERE'S ALWAYS AN IMPLEMENTATION ELEMENT AND THAT REALLY KIND OF SUMMARIZES EVERYTHING AND HOW WE GET TO ACHIEVE THESE GOALS THAT WE'RE
STRIVING FOR. AND SO JUST AT A REALLY HIGH LEVEL. WANT TO WALK YOU THROUGH THE PLAN DEVELOPMENT KIND OF COMMUNITY ENGAGEMENT PROCESS HERE. SO FOR THIS YEAR IN 2026 IT'S REALLY FOCUSED ON BIG IDEAS
AND ISSUE IDENTIFICATION. SO ON THE PLAN DEVELOPMENT SIDE IT'S REALLY THE DATA COLLECTION UNDERSTANDING SOME OF THOSE REQUIREMENTS. DO WE HAVE THE DATA? IF NOT WHERE DO WE NEED TO GET
IT AND GETTING THAT ALL TOGETHER REALLY IDENTIFYING THOSE KEY ISSUES AND DEVELOPING OUR VALUE STATEMENTS ON THAT REALLY PROVIDE THAT FRAMEWORK TO TAKE
INTO 2027 TO HAVE OUR POLICY GOALS STRATEGY ALTERNATIVES AND THEN OF COURSE SELECTING OUR PREFERRED ALTERNATIVE INTO
2028 TO HAVE OUR FINAL DRAFT PLAN AND FINAL PLAN ADOPTION. ONE OF THE THINGS I JUST WANT TO HIGHLIGHT HERE AS PART OF THIS PROCESS IS WHAT'S CALLED AN ADJACENT AND AFFECTED JURISDICTION REVIEW.
SO THAT IS A REQUIRED COMPONENT OF OUR PROCESS WHERE WE ACTUALLY SEND OUR DRAFT PLAN TO ALL OF THE NEIGHBORING COMMUNITIES AS WELL AS THE SCHOOL DISTRICT, THE WATERSHED DISTRICTS MINNESOTA DEPARTMENT
OF TRANSPORTATION, HENNEPIN COUNTY AND THEY HAVE AN OPPORTUNITY TO PROVIDE COMMENT ON OUR DRAFT PLAN AND THEN ALL OF THE SURROUNDING COMMUNITIES SEND US THEIR PLANS AS WELL TO PROVIDE COMMENTS. AND SO THAT'S A SIX MONTH
REVIEW. SO EVEN THOUGH WE KIND OF HAVE THREE YEARS I WOULD TECHNICALLY CONSIDER IT MORE TWO AND A HALF YEARS BECAUSE THE SECOND HALF OF 2028 YOU KNOW THE PLAN IS REALLY GOING BE LIKE 95% DONE AND IT'S REALLY JUST KIND OF GOING
THROUGH SOME OF THOSE FORMAL STEPS FOR FOR COMMENTS AND KIND OF MINOR ADJUSTMENTS TO THEN BRING IT TO THE CITY COUNCIL AND THE METROPOLITAN COUNCIL FOR ADOPTION AND SO ON
THIS SLIDE TWO YOU'LL SEE THE COMMUNITY ENGAGEMENT KIND OF THROUGHOUT THIS PROCESS WILL KIND OF GO THROUGH DIFFERENT PHASES AS THE PLAN DEVELOPS THERE'S DIFFERENT QUESTIONS WE WANT TO ASK AND
DIFFERENT GOALS USING OUR KIND OF P TWO LEVEL OF ENGAGEMENT THAT THE CITY HAS ADOPTED STAFF WOULD RECOMMEND USING THE COLLABORATE AT LEVEL OF ENGAGEMENT ON THIS PROJECT
AND SO JUST FOR EXPECTATION SETTINGS WE ALWAYS TRY TO DEVELOP A PROMISE TO THE PUBLIC IN OUR ENGAGEMENT. I MEAN WHAT WE'RE PROPOSING HERE IS TO WORK WITH COMMUNITY STAKEHOLDERS TO DETERMINE THE
VALUES STATEMENTS, THE GOALS STRATEGIES AND ACTIONS OF BLOOMINGTON 2050. SO THAT'S ALL KIND OF SHOW HERE ON THE NEXT COUPLE OF SLIDES YOU KNOW MULTIPLE OPPORTUNITIES VARYING
DIFFERENT MEDIUMS TO FOR INPUT TO COLLECT THOSE IDEAS AND MAKE SURE THAT THERE'S MORE COMMUNITY VOICE INTO THE PLAN AND THEN ANOTHER STRATEGY THAT
WE WOULD PROPOSE IS USING A COMMUNITY ADVISORY COMMITTEE THAT WOULD INCORPORATE INPUT FROM THE PUBLIC INPUT AND FEEDBACK FROM BOARDS AND COMMISSIONS AND OUR ELECTED OFFICIALS TO REALLY RECOMMEND THE GOALS THAT SHOULD BE
ADOPTED IN THE PLAN. THIS WAS A SIMILAR STRUCTURE THAT WAS DONE IN THE 2040 COMPREHENSIVE PLAN AND I BELIEVE THERE WAS A KIND OF SIMILAR ADVISORY COMMITTEE GROUP AS PART OF THE BLOOMINGTON TOMORROW TOGETHER
STRATEGIC PLAN. SO WANTING TO CONTINUE TO REFINE THAT THAT PROCESS AND BRING IT INTO OUR 2050 PLAN AGAIN AS JUST ANOTHER WAY TO PROVIDE MORE COMMUNITY
OPPORTUNITY IN THE DECISION MAKING PROCESS OF THE PLAN. SO IT'S NOT STAFF NECESSARILY SELECTING ALL THOSE GOALS BUT REALLY THIS KIND OF REPRESENTATIVE GROUP OF COMMUNITY STAKEHOLDERS THAT
ARE RECOMMENDING THE GOALS FOR THE PLAN WITH INCORPORATING YOU KNOW FEEDBACK FROM THE PUBLIC AND AND EVERYONE IT'S JUST SOME POTENTIAL ENGAGEMENT TECHNIQUES THAT WILL LIKELY BE
UTILIZED THROUGHOUT THIS PROCESS AND WE'RE OPEN TO YOUR YOUR FEEDBACK AND THOUGHTS. I KNOW ENGAGEMENTS ARE REALLY IMPORTANT TOPIC FOR EVERYONE BUT UTILIZING ARE LET'S TALK
PAGE TO DO ONLINE SURVEY IS KIND OF THROUGHOUT THE PROCESS AND THEN OF COURSE IN PERSON TABLING AND POP UPS DIFFERENT INTERACTIVE THINGS AT COMMUNITY EVENTS INFO DISPLAYS
AT CITY HALL AND THEN REALLY UTILIZING KIND OF VISIONING SESSIONS OR FOCUSED CONVERSATION OPEN HOUSE STYLE MEETINGS AROUND DIFFERENT COMMUNITY PRIORITIES OR TOPICS
AS WELL AS COMMUNITY DIALOGS WITH WITH DIFFERENT COMMUNITY GROUPS AND AND THEN THAT COMMUNITY ADVISORY COMMITTEE THAT I HAD MENTIONED AND SO
THIS JUST KIND OF DETAILS WHAT STAFF WAS KIND OF PROPOSING AT EACH PHASE AND REALLY TRYING TO TAILOR IT BACK TO KIND OF WHAT IS THE KIND OF KEY OBJECTIVE AND WHAT ARE THE KEY
QUESTIONS OF EACH PHASE. SO AS WE'RE DOING DIFFERENT DIFFERENT ENGAGEMENT EVENTS, YOU KNOW SOMETIMES IT MIGHT BE REALLY SPECIFIC ON A TOPIC OR MORE GENERAL BUT REGARDLESS OF THAT IT'S STILL KIND
OF TYING BACK TO THESE KEY QUESTIONS THAT WILL HELP INFORM US THROUGHOUT THE PROCESS. SO YOU KNOW PHASE ONE AND PHASE TWO ARE REALLY TRYING TO UNDERSTAND I WOULD SAY THE YOU KNOW, THE ASPIRATIONS, THE
KIND OF EXPECTATIONS THAT WE HAVE FROM FROM COMMUNITY MEMBERS KIND OF WHAT ARE THOSE LIKE CORE VALUES FOR COMMUNITY AND THEN KIND OF IN 2027 KIND
OF DIVING INTO THOSE DIFFERENT POLICY OPTIONS AND GETTING MORE SPECIFIC AROUND YOU KNOW WHAT WHAT SHOULD THE CITY DO TO ADDRESS X, Y, Z TOPIC OVER THE NEXT 20 YEARS AND STARTING
TO GET MORE AT SOME OF THOSE ACTIONABLE STEPS IN THE PLAN? I'M I'VE MENTIONED THIS A COUPLE TIMES ALREADY BUT I JUST WANT TO REITERATE PART OF THIS WORK IN OUR 2050 CYCLE
AND IS TO REALLY ALIGN WITH ONGOING CITY INITIATIVES AND PLANS AND MAKING SURE THAT WE'RE COORDINATING THOSE EFFORTS. SO A KEY ONE WILL BE ON THE KIND OF NEXT ROUND OF THE
BLOOMINGTON TOMORROW TOGETHER STRATEGIC PLAN WILL BE KIND OF OCCURRING DURING THIS SAME PROCESS. SO REALLY WANTING TO MAKE SURE THAT WE'RE STRENGTHENING THE
CLARITY AND CONSISTENCY IN DECISION MAKING ACROSS THESE PLANS YOU KNOW, REDUCING KIND OF DUPLICATION PARTICULARLY ENGAGEMENT. SO OUR COMPREHENSIVE PLAN TEAM IS AND ASKING COMMUNITY QUESTIONS AND THEN SIX MONTHS
LATER THE B.T. GROUP IS ASKING THOSE SAME QUESTIONS OF COMMUNITY REALLY TRYING TO AVOID THAT AND MAKING MORE CLEAR THAT THE ENGAGEMENT THAT WE'RE DOING CAN INFORM MULTIPLE PLANS AND IS PART
OF THIS LARGER, LARGER MISSION AND VISION AND THEN FOR ALL OF YOU ON DIFFERENT BOARDS AND COMMISSIONS AND FOR CITY COUNCIL I JUST WANTED TO HIGHLIGHT SOME OF THE YOU
KNOW, ONE ONE WAY THAT YOU CAN BE PLUGGED INTO THIS PROCESS HERE IN KIND OF IN YOUR MORE FORMAL KIND OF BOARD OR COMMISSION CAPACITY IS REALLY BEING ABLE TO REVIEW AND
PROVIDE COMMENT ON DIFFERENT ELEMENTS AND COMPONENTS OF THE PLANS OR JUST AS AN EXAMPLE THAT YOU'RE A BOARD I ENVISION WOULD BE MORE INVOLVED IN KIND OF THE HOUSING CHAPTER AND HOUSING ELEMENT PORT AUTHORITY
IN THAT NEW ECONOMIC DEVELOPMENT ELEMENT OUR SUSTAINABILITY COMMISSION AND THE CLIMATE ELEMENT AND THE KIND OF COORDINATION WITH THE CLIMATE ACTION PLAN THAT IS ALSO GOING TO BE OCCURRING
DURING THE SAME TIME PERIOD. YOU KNOW LOTS OF COORDINATION WITH STAFF TO ENSURE THAT REALLY THAT CLIMATE ACTION PLAN A LOT OF THOSE COMPONENTS CAN REALLY JUST BE COPIED AND
PASTED INTO THE THE COMPREHENSIVE PLAN AND MEETING A LOT OF THOSE SAME GOALS. OUR COMMUNITY ADVISORY COMMITTEE REALLY FOCUSED ON THE GOALS OF BLOOMINGTON 2050
IN THE DRAFT PLAN THE PLANNING COMMISSION I ENVISION AS A LITTLE BIT MORE INVOLVED IN SOME OF THE MORE GENERAL KIND OF VALUE STATEMENTS, GOALS, STRATEGIES AND THEN DIFFERENT TOPICS KIND OF THROUGHOUT THE OUT THE PROCESS AND REALLY
RECOMMENDING ACTION ON THE FINAL PLAN TO THE CITY COUNCIL AND THEN THE CITY CALLED CITY COUNCIL MEMBERS ULTIMATELY KIND OF REVIEWING AND ADOPTING THE VALUE STATEMENTS, GOALS
AND STRATEGIES AND ADOPTING THAT FINAL PLAN AND KIND OF DIRECTING STAFF TO SEND THAT TO THAT COUNCIL FOR FINAL ADOPTION. AND THEN JUST SOME THINGS MORE IN GENERAL AS YOU ALL ARE ALSO
LIVE AND AND OUR WORK RECREATE IN BLOOMINGTON JUST SOME MORE GENERAL WAYS TO BE INVOLVED IN THIS PROCESS IS JUST ENCOURAGING YOU ALL TO BE CHAMPIONS OF BLOOMINGTON 2050 AND SPREADING THE WORD WITHIN
YOUR NETWORKS SHARING THE VALUE AND IMPORTANCE OF LONG RANGE PLANNING YOU KNOW DEFINITELY CONTINUE TO CHECK OUT OUR LET'S TALK PAGE AND AND PARTICIPATE IN THOSE
ONLINE SURVEYS AND ONLINE ENGAGEMENT AS WELL AS ATTENDING THOSE IN-PERSON ENGAGEMENT EVENTS AS WELL. AND WE ALWAYS SAY AS A BONUS YOU KNOW BRING TWO FRIENDS WITH YOU FOR BONUS POINTS AND
THEN AND THEN OF COURSE REVIEWING AND PROVIDING FEEDBACK ON THE PLAN AS AS DRAFTS BECOME AVAILABLE. SO I DON'T I DON'T WANT TO SPEND TOO MUCH TIME HERE BUT
ALSO JUST WANTED TO GIVE A REALLY HIGH LEVEL OVERVIEW OF SOME TRENDS AND SOME DEMOGRAPHIC DATA POINTS JUST TO I THINK HELP KIND OF FRAME THE CONVERSATION KIND
OF GETTING IN THAT MINDSET OF HOW TO THINK ABOUT THE FUTURE A LITTLE BIT AND YOU KNOW WAS KIND OF ALREADY BROUGHT UP IN THE DISCUSSION AND KIND OF DIFFERENT LEVELS
OF CERTAINTY OR UNCERTAINTY AND THINKING ABOUT THE FUTURE AND HOW LONG CAN THESE PLANS LIKE REALLY LAST OR HOW DO YOU ACCOUNT FOR EVERYTHING? SO OF COURSE THAT'S PART OF THE THE CHALLENGE OF PLANNING FOR THE FUTURE IS JUST KIND OF EMBRACING THAT
UNCERTAINTY KIND OF LEANING INTO THE UNCOMFORTABILITY OF YOU KNOW, DOING THE BEST THAT WE CAN TO MAKE SOME BEST EDUCATED GUESSES. BUT OF COURSE THINGS WILL WILL CHANGE AND WE WON'T EVER KNOW
FOR CERTAIN WHAT MAY OR MAY NOT HAPPEN. BUT JUST AT A HIGH LEVEL HERE JUST KIND OF SHOWING YOU KNOW ,SOME OF THE BUCKETS OR LIKE AREAS OF THINGS THAT WE'RE GOING TO BE THINKING ABOUT THROUGHOUT THIS PROCESS OR YOU
KNOW, CHANGES TO THE ECONOMY, DIFFERENT ENVIRONMENTAL IMPACTS, PUBLIC HEALTH IMPACTS YOU KNOW TECHNOLOGICAL ADVANCEMENTS PARTICULARLY THINK ABOUT AI AND DATA CENTERS AND KIND OF WHAT DOES
THAT MEAN FOR THE FUTURE AS IT RELATES TO THE ECONOMY, ENVIRONMENT, PUBLIC HEALTH AND THEN OF COURSE DEMOGRAPHIC SHIFTS OF THINGS NOT ONLY HAPPENING IN BLOOMINGTON BUT IN IN MINNESOTA AND IN THE
UNITED STATES MORE GENERALLY AS OUR POPULATION CONTINUES TO AGE AND GETS MORE RACIALLY AND ETHNICALLY DIVERSE. AND WHAT DOES THAT MEAN TO FOR THE CITY AND ENSURING WE'RE PROVIDING A SAFE AND INCLUSIVE
SERVICES TO RESIDENTS? SO JUST WANTED TO TOUCH ON A FEW DEMOGRAPHICS. PART OF THE COMPREHENSIVE PLAN WILL INCLUDE A COMMUNITY PROFILE THAT WILL GO INTO MORE
DETAIL THAN WHAT I'M SHOWING HERE BUT JUST WANTED TO SHARE SOME HIGHLIGHTS. SO THIS IS LOOKING AT OUR POPULATION HOUSEHOLDS AND AVERAGE HOUSEHOLD SIZE. SO THE BLUE BARS ARE
POPULATION, THE ORANGE IS HOUSEHOLDS SO YOU CAN SEE KIND OF AT THE BOTTOM HERE OF EACH SLIDE I'VE JUST TRIED TO SHOW KIND OF OVER THE LAST TEN YEARS SINCE WE'VE DONE THE
2040 PLAN MAYBE WHAT ARE SOME TRENDS OR WHAT IS THE CHANGE AND FOR THE POPULATION WE'VE SEEN ABOUT A 2.2% INCREASE IN POPULATION OVER THE LAST TEN YEARS AND THE OTHER THING
I WOULD HIGHLIGHT AS PART OF THE SYSTEM STATEMENT FROM THAT CONSOLE IS THEY ALSO DO POPULATION PROJECTIONS FOR US. AND SO PART OF THAT IS YOU KNOW THEY'RE PROJECTING BY
2050 A POPULATION OF 103,400 PEOPLE AND SO PART OF THE WORK OF THE COMPREHENSIVE PLAN IS FIGURING OUT WELL HOW DO WE WHAT ARE WE GOING TO DO THAT'S 11,000 MORE PEOPLE NOW OR YOU
KNOW, ALMOST 5000 MORE HOUSEHOLDS NOW THAN WE CURRENTLY HAVE. WHERE WHERE ARE THEY GOING TO LIVE? WHAT KIND OF HOUSING DO THEY NEED? YOU KNOW, A VARIETY OF THINGS SO THAT THAT'S PART OF OUR
WORK TO JUST FOR SOME RACIAL DEMOGRAPHICS THIS IS FROM THE AMERICAN COMMUNITY SURVEY. SO THIS IS LOOKING AT IT CITYWIDE ABOUT 65% OF THE POPULATION IS WHITE, 12% BLACK
OR AFRICAN-AMERICAN, 11% HISPANIC OR LATINO. AND THEN KIND OF GOES FROM THERE WITH ASIAN SOME OF THE RACES TWO OR MORE RACES ARE PART OF YOU KNOW, LOOKING AT IT CITYWIDE ONLY TELLS SO
MUCH. AND SO THIS CHART HERE JUST SHOWS THE PERCENTAGE OF NONWHITE PER POPULATION BY CENSUS TRACT AND SO THE DARKER SHADES OF GREEN AND IN SOME
OF THE IN THIS MAP AND THE SUBSEQUENT MAPS JUST MEANS A HIGHER NUMBER SO IF YOU'RE SEEING A DARKER SHADE OF GREEN THAT MEANS IT'S A HIGHER NUMBER. AND THEN JUST KIND OF LOOKING OVER THE LAST TEN YEARS ABOUT
A 30.5% INCREASE IN THE NONWHITE POPULATION IN BLOOMINGTON LOOKING AT AGE AND THIS IS BROKEN UP BY KIND
OF AGE GROUPS BY GENDER AND SO JUST ORANGE IS FEMALE, BLUE IS MALE. IT'S SORT OF JUST AS ONE WAY TO READ THIS JUST UNDER 8% OF BLOOMINGTON'S POPULATION
ARE MALES AGE 30 TO 34. SO THIS JUST KIND OF SHOWS A BREAKDOWN HERE. I JUST BUT I THINK THE MAIN TAKEAWAY IS OUR MEDIAN AGES 41
JUST ABOUT 20% OF OUR POPULATION IS UNDER 18 YEARS OLD AND THEN ABOUT 20% OF OUR POPULATION IS 65 AND OLDER. JUST SOME QUICK HOUSING STATS
NOT AT THE LEVEL OF THE CONSULTANTS FOR SURE BUT JUST LOOKING AT OUR TOTAL OCCUPIED HOUSING UNITS, ABOUT 65% OF THOSE ARE OWNER OCCUPIED HOUSING UNITS AND 35% RENTER
OCCUPIED MEDIAN GROSS RENT KIND OF ACROSS ALL UNIT TYPES AND ALL BEDROOMS $1,440 FROM OUR 2025 ASSESSING REPORT THE
MEDIAN SALE PRICE FOR A SINGLE FAMILY RESIDENTIAL HOME WAS $427,300 AND THEN THIS CHART IS LOOKING AT UNITS IN THE
STRUCTURE. SO ESSENTIALLY HALF OF ALL HOUSING UNITS IN THE CITY ARE SINGLE FAMILY DETACHED HOMES AND THEN THE OTHER HALF ARE SOME KIND OF ATTACHED OR MULTIFAMILY UNIT.
SO ABOUT 7% ARE TOWNHOMES JUST UNDER 1% ARE DUPLEXES TRIPLEXES AND QUAD PLEXUS AND THEN ABOUT 40% OF OUR HOUSING STOCK ARE MULTIFAMILY AND IN THIS CASE THE MET COUNCIL
DEFINES THAT AS FIVE OR MORE UNITS IN A SINGLE STRUCTURE. AND THEN JUST ONE KIND OF TREND OVER THE LAST TEN YEARS THERE'S BEEN ABOUT AN 18.5% INCREASE IN MULTIFAMILY
HOMES IN BLOOMINGTON FOR INCOME OF THEIR CITY CITYWIDE MEDIAN INCOMES $93,211 AND THEN HERE AGAIN JUST BREAKING
THAT UP BY A CENSUS TRACK TO KIND OF SEE HOW THAT THAT VARIES IN GEOGRAPHY ACROSS THE CITY IN A SIMILAR FASHION POVERTY RATE WE HAVE ABOUT
9.2% POVERTY RATES THIS AGAIN BROKEN DOWN BY CENSUS TRACK AND I THINK ONE OF THE KEY TRENDS OR THINGS THAT TO BE AWARE OF KIND OF OVER THE LAST
TEN YEARS WE'VE SEEN ABOUT A 37% INCREASE IN POPULATION LIVING IN POVERTY. RIGHT. YOU KNOW INDICATING THAT THEY'RE BELOW THE POVERTY LINE LOOKING AT EMPLOYMENT. THIS IS FROM THE MINNESOTA
DEED AND KIND OF LOOKING AT THOSE LARGER INDUSTRY SECTORS AND THE NUMBER OF JOBS SO ARE YOU KNOW, TOP AREAS ARE IN THE KIND OF PROFESSIONAL AND BUSINESS SERVICES AND THEN
RETAIL TRADE KIND OF TRANSPORTATION UTILITY WAREHOUSING JOBS SECOND AND THEN EDUCATION AND HEALTH SERVICES OUR PORT AUTHORITY
DOES ALSO TRACK THE EMPLOYERS IN BLOOMINGTON. SO OUR TOP FIVE EMPLOYERS ARE ALL OF AMERICA THAT INCLUDES MALL OF AMERICA STAFF AND ALL OF THE TENANTS AND THEIR EMPLOYEES AND MALL OF AMERICA
HEALTH PARTNERS, THE BLOOMINGTON SCHOOL DISTRICT, SEAGATE TECHNOLOGY AND DONALDSON COMPANY. AND THEN JUST SOME INTERESTING STATS OVER THE LAST TEN YEARS
THERE'S BEEN ACTUALLY ABOUT A 2.6% DECREASE IN THE NUMBER OF JOBS. BUT THEN KIND OF INTERESTING JUST A VERY SLIGHT INCREASE IN THE NUMBER OF BUSINESS ESTABLISHMENTS KIND OF INDICATING THAT, YOU KNOW
THERE'S LIKELY MORE KIND OF LIKE SMALLER ESTABLISHMENTS AND SMALLER BUSINESSES THAT HAVE HAVE KIND OF GROWN OR LOCATING IN BLOOMINGTON AND THEN FINALLY JUST LOOKED AT
SCHOOL ENROLLMENT. SO THIS IS FROM THE 2025 ENROLLMENT REPORT FROM BLOOMINGTON PUBLIC SCHOOLS OVER THE LAST TEN YEARS THERE'S BEEN A ABOUT A 4.5% DECREASE IN STUDENTS ENROLLED
. YOU CAN SEE THE DROP HERE IN 2020 AND 2021 WAS THE COVID PANDEMIC AND THEN ENROLLMENT HASN'T QUITE GOTTEN BACK TO PRE-PANDEMIC LEVELS.
I DON'T WANT TO SPEAK FOR THE SCHOOL DISTRICT BUT JUST THAT THIS IS ALSO MORE OF KIND OF A NATIONAL TREND OF ENROLLMENT KIND OF DROPPING AND NOT GETTING BACK TO PRE-PANDEMIC LEVELS OF AS STUDENTS HAD TO GO FULLY ONLINE AND EITHER
STAYED ONLINE, WENT TO HOME SCHOOLING OTHER METHODS OR STUDENTS THEY COULDN'T PARTICIPATE KIND OF IN ONLINE LEARNING MAYBE WE'RE KIND OF LOST IN THE SHUFFLE OR NOT QUITE BACK IN SCHOOL AFTER A AND
THEN JUST ANOTHER DATA POINT ABOUT 44% OF STUDENTS IN BLOOMINGTON PUBLIC SCHOOLS ARE ELIGIBLE FOR FREE AND REDUCED SCHOOL LUNCH.
AND SO I THINK I KNOW THERE WAS A LOT OF INFORMATION RELATIVELY FAST BUT I JUST WANTED TO OPEN IT UP IF YOU HAD ANY FEEDBACK OR QUESTIONS AS WE'RE KIND OF EMBARKING ON
THIS COMPREHENSIVE PLAN PROCESS. THANK YOU. YOU GOT IT. QUESTIONS COUNCILMEMBER LOWMAN
I COULD GET IT NOW SO AND I LOOK AT I THINK IT'S PAGE 144 THE BLOOMINGTON 2050 ELEMENTS IN A KNOW I LOOK AT THE ONES THAT HAVE BEEN BEEN ADDED THERE AND I RECOGNIZE THAT
IN AND I'M HAPPY TO SEE WE'VE ADDED CLIMATE ELEMENTS AND SOME OTHER THINGS THERE AND I KNOW THAT OUR COMMUNITY HEALTH AND SERVICES ELEMENTS AND REALLY THROUGHOUT THE ENTIRE
COMPREHENSIVE PLAN WE REALLY KIND OF LOOK AT THE ISSUE DEMOGRAPHICS YOU KNOW YOU'VE REALLY PUT A LOT OF DEMOGRAPHICS UP THERE AND I JUST YOU KNOW, YOU LOOK AT CITIES LIKE VANCOUVER,
WASHINGTON OR OR CHARLOTTE, NORTH CAROLINA, THEY HAVE REALLY TAKEN THE ISSUE OF EQUITY AND INCLUSION AND KIND OF MADE IT ITS OWN CHAPTER. AND I JUST THINK THAT, YOU KNOW, ESPECIALLY WHEN YOU LOOK
AT BLOOMINGTON, YOU KNOW, WITH THAT 44% REDUCED YOU KNOW YOU KNOW, THANK YOU FOR LUNCH AND AND FOR BREAKFAST AND ALL
OF THAT YOU KNOW YOU LOOK OUT TO 2050 WHEN OUR CITY LOOKS LIKE AND THEN WE JUST YOU KNOW WE JUST SAW IT EARLIER, YOU KNOW, IN TERMS OF THE HOUSING STOCK AND WHAT THAT LOOKS LIKE
IN THE CITY AND ALSO THAT DECLINING I WONDER IF IT MAKES SOME SENSE TO TO REALLY KIND OF FOCUS IN ON THAT TO TRY TO MAKE SURE THAT IT'S NOT JUST DISPERSED ACROSS ALL OF THE
DIFFERENT ELEMENTS BUT THERE'S SOMETHING THAT CONCENTRATES AND REALLY HAS A CONVERSATION WITH THAT. SO I JUST WONDER IF STAFF HAS LOOKED AT THAT. I KNOW YOU KNOW IN THE TWIN CITIES THAT'S NOT WHAT OTHER OTHER CITIES ARE DOING BUT I
AM REALLY CURIOUS ABOUT, YOU KNOW, WHAT CITIES ARE BEING SUCCESSFUL AND IF WE REALLY KIND OF LOOK TO TRY TO SEE IF WE CAN LOOK AT THAT DIRECTLY. YEAH. MAYOR COUNCILMEMBER LOWMAN, THANK YOU FOR THAT QUESTION.
YEAH, I THINK SOME OF THE INITIAL CONVERSATIONS THAT I'VE I'VE HAD WITH CITY STAFF KIND OF IN OUR OFFICE OF EQUITY AND WORKPLACE CULTURE HAVE BEEN KIND OF I THINK THERE'S SOME OPPORTUNITY
IN THAT COMMUNITY HEALTH AND SERVICES ELEMENT KIND OF AT SOME OF THE YOU KNOW COMMUNITY ASSETS KIND OF CREATING THAT SENSE OF IDENTITY. IT WAS KIND OF MEANT TO BE A CHAPTER WHERE IT'S SOME
OF THOSE OTHER SERVICES OF THE CITY THAT AREN'T MAYBE DIRECTLY REFLECTED IN THINGS LIKE LAND USE OR HOUSING THAT ARE JUST MUCH MORE KIND OF STRAIGHTFORWARD FROM THAT CONSOLE AND THOSE REQUIREMENTS.
YOU KNOW IT'LL DEFINITELY BE A THEME ACROSS THE PLAN BUT CERTAINLY WELCOME THAT FEEDBACK TOO IF IT SHOULD BE ITS OWN MORE DESIGNATED CHAPTER. BUT I THINK THERE'S AN OPPORTUNITY IN THAT COMMUNITY
HEALTH AND SERVICES ELEMENT OF MY FOR MY FEAR ABOUT THAT WITH THE COMPETING HEALTH PART THERE'S REALLY IMPORTANT HEALTH ELEMENTS THAT NEED TO BE ADDRESSED THERE AND I THINK THAT THE REALLY THE EQUITY
INCLUSION PIECE IS SOMETHING THAT CAN KIND OF GO BEYOND THAT. AND SO IF IT'S ITS OWN THING IT REALLY ALLOWS YOU TO KIND OF I'D BE AFRAID TO KIND
OF DAMPEN THAT OR KIND OF KIND OF GO INTO IT AND I GET WE THAT'S WHAT WE WE'VE KIND OF PLACED IT BUT I WONDER IF IT MAKES SOME SENSE TO PULL IT UP. >> SURE. COUNCILMEMBER I'D SUGGEST IF YOU HAVE EXAMPLES FROM
VANCOUVER OR CHARLOTTE FOR THOSE ON YEAH THAT'S PERFECT. YEAH THANK YOU. YEAH YEAH THAT SOUNDS GREAT. THANK YOU. I WOULD JUST WANT TO SECOND THAT A LITTLE BIT STRONGER LANGUAGE.
IT DEFINITELY SHOULD BE ITS OWN BECAUSE ACROSS THE COUNTRY HAS BEEN DILUTED AND THAT'S YOU KNOW BEEN A VERY
UNFORTUNATE YEAH THANK YOU THE QUESTIONS YOUR FEEDBACK FOR DAKOTA ALL RIGHT THANKS FOR BEING HERE WITH US THIS
EVENING. GOOD LUCK. AND YOU'RE JUST STARTING THIS JOURNEY. YEAH, IT'S A LONG ONE. I KNOW AND IT'S A LOT OF WORK SO I APPRECIATE YOU TAKING IT ON. >> IT'S A BIG ONE. YEAH, WELL, THANK YOU. I'LL BE UP AND YOU'LL BE
HEARING FROM ME MUCH, MUCH MORE THROUGHOUT. I KNOW WE WILL, YOU KNOW. ALL RIGHT. THANK YOU ALL. THANK YOU ALL. >> OUR FINAL ITEM OF BUSINESS TONIGHT, FOLKS IS 1.3 OUR CITY PERFORMANCE CITY MANAGER
PERFORMANCE EVALUATION REPORT. AS I MENTIONED EARLIER, WE WE DID THIS LAST NIGHT AND WE ARE OFFICIALLY REQUIRED TO REPORT OUT AT OUR NEXT MEETING AND THIS IS AN OFFICIAL MEETING OF THE BLOOMINGTON CITY COUNCIL SO I'M REQUIRED TO
REPORT OUT SO I WILL GO THROUGH IT QUICKLY NOT TO KEEP YOU HERE LAST NIGHT ON MONDAY MARCH 9TH WE MET IN CLOSED SESSION TO PERFORM THE FOUR MONTH PERFORMANCE REVIEW OF OUR CITY MANAGER ZACK
WALKER. THE ENTIRE CITY COUNCIL WAS THERE AND WE TOOK A LOOK AT MR. WALKER'S PERFORMANCE OVER THE PAST FOUR MONTHS BASED ON EIGHT DIFFERENT CATEGORIES
TRANSITION AND ONBOARDING EFFECTIVENESS RELATIONSHIP WITH CITY COUNCIL AND GOVERNANCE PARTNERSHIP LEADERSHIP STYLE AND ORGANIZATIONAL CULTURE STRATEGIC ALIGNMENT AND EARLY EXECUTION, FINANCIAL STEWARDSHIP AND ORGANIZATIONAL
READINESS COMMUNICATIONS AND COMMUNITY ENGAGEMENT EQUITY INCLUSION AND VALUES ALIGNMENT AND PROGRESS ON KEY CHALLENGES EACH OF THE COUNCIL MEMBERS HAD THE OPPORTUNITY TO RATE MR. WALKER ON EACH OF THOSE
AREAS AND THEN OFFER KEY STRENGTHS, OBSERVED AND SUGGESTIONS OR AREAS FOR GROWTH AND ADJUSTMENT AND ULTIMATELY EACH OF THE COUNCIL MEMBERS DID ALL AGREE ACTUALLY
INDEPENDENTLY OF EACH OTHER TO TO RATE MR. WALKER'S WORK OVER THE PAST FOUR MONTHS AS FULLY MEETS EXPECTATIONS FOR INITIAL REVIEW. SO CONGRATULATIONS ON FULLY MEETING EXPECTATIONS FOR
INITIAL REVIEW. ZACH WELL DONE AND THAT IS ITEM 1.3 AND WE ARE DONE WITH THAT AND WE ARE DONE WITH OUR
AGENDA AND I THINK IF WE HAVE TO EVERYBODY ADJOURNED ALL INDIVIDUALLY I THINK WE CAN ADJOURN IN MARCH SO LET'S DO THAT. HOW ABOUT THAT? WE'RE GOING TO ROLL THE DICE AND WE'RE GOING TO ADJOURN AND
MS.. UH, I'LL MAKE A MOTION THAT WE ADJOURN TONIGHT. COUNCILMEMBER ROBERTSON WITH THE SECOND TO ADJOURN THIS EVENING. EVERYONE IN THE ROOM FROM OUR I COMMISSIONERS ALL IN FAVOR
PLEASE SIGNIFY BY SAYING I OPPOSE FOR I OPPOSED. >> ALL RIGHT, WE ARE ADJOURNED. THANK YOU ALL VERY MUCH. >> THANK YOU VERY MUCH FOR
BEING HERE TONIGHT