HomeMy WebLinkAbout2.a. 2008 Street Improvement Project Bid Disscussion, City Project #418AGENDA ITEM: Review Bids 2008 Street Improvement
Project, City Project #418
AGENDA SECTION:
Discussion
PREPARED BY: Andrew J. Brotzler, PE, City Engineer 7 4GENDA
NO. 2.k
APPROVED BY:
ATTACHMENTS: Map
RECOMMENDED ACTION: Discussion
4 ROSEMOUNT
CITY COUNCIL
City Council Work Session: June 3, 2008
ISSUE:
Review bids for the 2008 Street Improvement Project, City Project #418.
BACKGROUND:
On Wednesday, May 28, 2008, bids were received for the 2008 Street Improvement Project and read aloud
publicly.
The project includes surface improvements to approximately 1.2 miles of 32 -foot wide urban streets
including the following:
Claret Avenue (between 155t Street West and Cornell Trail West)
Cornell Trail (between Claret Avenue and east end)
156t Street West (between Claret Avenue and Chippendale Avenue)
Cicerone Path (from Cornell Trail West southwest approximately 720 feet)
Based on the review of the low bid received by Staff and the City Attorney, we would like to review the
bid in detail with Council prior to Council considering action for the bids received.
SUMMARY:
Staff will provide an overview of the low bid at the meeting.
EXECUTIVE SUMMARY
G: \ENGPROJ \418 \ReceiveBidsAwrdContract-CWS6-3-08.doc
2008 Street Improvements
ROSEMOUNT
1 ll
T: /GIS/City /Maps/Departmental Maps/Engineering/Chris/2008 Recon Locate
AGENDA ITEM: Proposed Changes to the Harmony
Development by Rottlund Homes
GENDA SECTION:
bi S Gil S 510
PREPARED BY: Eric Zweber; Senior Planner
AGENDA NO. 2 rg.
ATTACHMENTS: Brockway Glass Development
Plan /Preliminary Plat; Harmony 5th
Development Plan /Preliminary Plat; Staff
Report from the May 27 Planning
Commission Meeting; May 27 Planning
Commission Minute Excerpt; Dakota
County 2007 Rental Market Survey; GVA
Marquette Apartment Trends Spring
2008;
APPROVED BY:
RECOMMENDED ACTION: Discussion
9 ROSEMOUNT
CITY COUNCIL
City Council Work Session: June 3, 2008
EXECUTIVE SUMMARY
ISSUE
Rottlund Homes is acquiring all the vacant property within the Harmony subdivision and the neighboring
Pickens property. The original preliminary plat for Harmony includes an outlot for 120 rental units within
two apartment buildings and another outlot for a third building that is planned for 60 units of senior
housing. The two outlots are part of the vacant property that Rottlund is acquiring, but Rottlund does not
build apartments or senior housing. Rottlund has requested an amendment to the planned unit development
(PUD) and preliminary plat to allow the 120 apartments and 60 senior housing units to be replaced with 78
townhomes. There is also a requested change to replace 28 Urban Villa style townhomes with 16 Garden
Homes style quad- townhomes. In addition, the Pickens property is requested to be platted into nine single
family lots.
SUMMARY
Port Authority Meeting May 20
The Port Authority reviewed the Rottlund proposal and its influence on the tax increment financing (TIF)
funds during their meeting on May 20. Ehlers ran a TIF calculation for the Rottlund proposal that
projects a built out by 2012 with a total gross tax increment of $1.14 million. The apartment and senior
housing is projected to be built out in 2015 with total gross tax increment of $2.51 million. At this time
there is no identified builder for the apartments and senior housing so there is no clear way to determine
the anticipated build -out of these two projects. Staff has requested Ehlers provide some additional
financial information regarding the two proposals but has not received it at this time.
The Port Authority conversation consisted of discussions if the townhouse market would support the
build out of Rottlund's proposal and if the removal of the apartments and senior housing would affect the
City's housing mix and life cycle housing goal. The Port Authority requested staff provide the townhouse
information to assess their market niche. There were discussions about the importance of apartment and
senior housing site in 2004 when the Harmony subdivision was approved; multiple family developments
approved since 2004; the 106 units in the Core Block East project, the 200 plus units that received
preliminary plat approval in the Prestwick Place development, and the apartments east of Downtown
which received concept plan approval; and the draft Comprehensive Plan that designates additional land
for multiple family housing.
The Port Authority will be reviewing the Planning Commission meeting minutes and the townhome
designs during their meeting on June 3. Staff will provide an update on the discussion during that meeting.
Planning Commission Meeting May 27
The Planning Commission reviewed the Rottlund proposal and conducted a public hearing on May 27.
The staff report and minutes from that meeting are attached to this executive summary. During the public
hearing, four individuals provided comments. The first individual stated that he was in support of the
proposal and that the timely development of the entire subdivision would be beneficial to him because
there would be more individuals within the homeowners association to help pay required maintenance
costs. The second individual was a neighboring property owner on Bonaire Path who complained about
the road assessment levied by the City for Bonaire Path. He also indicated he does not support approving
more homes when there are some built homes left vacant in the community. The third individual had a
number of questions of Rottlund regarding maintenance of his neighboring property and how a street
connection would be made, but did not speak against the conversion of the apartments or senior housing.
The fourth individual was questioned if there were any changes proposed to the approved single family
homes and was satisfied when he found out there were none.
The Planning Commission had questions about how the off street parking was provided; what was the
history of the redevelopment project and the TIF district; and clarification on the Comprehensive Plans
goals and policies on life cycle housing. One Planning Commissioner expressed concern about losing the
apartments but agreed with the other Commissioners that the composition of the housing mix for this
subdivision and its effect on the housing mix of the City as a whole was a policy question that the City
Council should address. The Planning Commission voted 4 -0 to recommend approval of Rottlund's
request after finding that the proposal is generally in compliance with the Zoning and Subdivision
Ordinance.
Recent Apartment Research
Staff has assembled information about apartment trends in Dakota County that is available.
GVA Marquette Advisors (GVA) has conducted an analysis of average rents and vacancy rates of large
apartment complexes in the Twin Cities Metropolitan area (Metro). GVA has found that vacancy rates in
the Metro have declined annually since 2004 to a 3.9% vacancy rate in 2008. GVA states that some of the
reasons for this decrease in vacancy rates are due to job growth (14,000 additional jobs in the first quarter
of 2008) and the increase in home foreclosures (12,700 during 2007). The GVA data shows that this low
vacancy rate applies locally as well.
According to the GVA data, Dakota County has an overall vacancy rate of 4.2 the South Central market
(Lakeville, Farmington, Burnsville, Eagan) has a vacancy rate of 3.9 and the Southeast market (eastern
Dakota County and southern Washington County, including Rosemount) has a vacancy rate of 3.9 The
GVA data also shows the Apple Valley /Rosemount market having a 2008 vacancy rate of 2.6 a decrease
of 3.8% from the 2007 vacancy rate of 6.4
2
The Dakota County Community Development Agency (CDA) conducted a 2007 rental market survey in
which they surveyed all apartment complexes within Dakota County. The CDA survey is supportive of
the GVA data. The CDA survey shows a 2007 overall vacancy rate in Dakota County of 4.7 down
1.5% from the 2006 vacancy rate 6.2 The CDA survey also shows a 2007 overall vacancy rate in
Rosemount of 6.1 down 4.9% from the 2006 vacancy rate 11.0
RECOMMENDATION
This item is scheduled for formal action at the Council meeting on June 17, 2008. Staff is bringing this
item to the Council so there can be discussion since the decision to modify the development is more of a
policy decision than a technical decision. Staff would like the Council to let staff know if there is additional
information necessary to assist in making the decision.
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EXCERPT FROM MINUTES
PLANNING COMMISSION REGULAR MEETING
MAY 27, 2008
5.b. The Rottlund Company Major Amendment to PUD, Preliminary Plat, Rezoning and
Final Plat of Harmony 5th Addition and Pickens Plat (08- 12 -AMD, 08- 13 -PP, 08- 14 -ZA,
08- 19 -FP). Senior Planner Zweber presented this item. Rottlund Homes is acquiring all the
vacant property within the Harmony subdivision previously owned by CPDC individually and the
neighboring Pickens property. The original preliminary plat for Harmony includes an outlot for
120 rental units within two apartment buildings and another outlot for a third building that is
planned for 60 units of senior housing. Rottlund has requested an amendment to the planned
unit development (PUD) and preliminary plat to allow the 120 apartments and 60 senior housing
units to be replaced with 78 townhomes. There is also a requested change to replace 28 Urban
Villa style townhomes with 16 Garden Homes style quad townhomes. In addition, the Pickens
property is requested to be platted into nine single family lots.
Mr. Zweber stated that last year M I Bank (M &I) assumed possession of the vacant parcels
that were owned by CPDC. M &I has been negotiating the sale of all the vacant parcels to
Rottlund, but Rottlund has conditioned the sale on applying for and receiving an amendment to
the planned unit development (PUD) and preliminary plat to convert the 120 apartment units
and 60 senior housing units into townhouses. Mr. Zweber further explained that Rottlund is not
interested in developing apartments and senior housing in Rosemount, but they have been
having success building and selling townhouses within the Harmony subdivision.
Mr. Zweber further explained the different areas of planned development and the characteristics
including the site layout, townhome and single family design, landscaping and tree preservation,
access and parking, rezoning, the city park area and utilities. In greater detail, Mr. Zweber
explained that the parking spots requested by the Applicant in the townhome area are a few
spaces short of what is required but that is being remedied by extra parking spaces in another
area.
Commissioner Schultz asked if the homeowners' association approves of giving up the six stalls at
the clubhouse. Mr. Zweber replied that the homeowners' association would have to agree but that
Rotdund is a part of that association. Chairperson Messner asked where the shortage of six stalls
exists. Mr. Zweber showed the Commission on the site layout where the parking spaces should
have been installed.
Commissioner Howell asked Mr. Zweber to explain the impact on the tax money that is to be paid
back to the TIF. Mr. Zweber gave a brief background of the TIF matter. He stated that the
excess in the TIF monies is being used to pay for redevelopment in the downtown area. The City
has recently purchased both of the outstanding TIF notes relating to the Harmony project. The
townhomes Rottlund proposes would produce less TIF monies than the original apartments and
senior housing proposal which is one of the reasons why the matter was discussed with the Port
Authority. However, timing of development affects the TIF generated also.
Chairperson Messner inquired about Outlot A on the Pickens property and Mr. Zweber replied
that it is undeveloped. He stated that the pipeline easement goes through the north side of the
property and it will remain private open space.
The Applicant, Michael Noonan, of Rottlund Homes approached the Commission and stated he
would discuss three issues. Mr. Noonan stated Rottlund Homes is thankful for the opportunity to
work on completing the Harmony development, providing housing Rottlund feels the market is
looking for. He stated construction on the houses should begin by this September. Mr. Noonan
responded to earlier questions. He staetd the homeowners' association is in support of sharing the
parking in the clubhouse. Rottlund Homes controls the association. Parking in the clubhouse
area is an amenity provided by the association for overflow parking for residents. With respect to
the addition of the 16 Garden home units, Mr. Noonan replied that Rottlund felt it important to
construct that as four blocks of four because of the temporary ponding being placed in the area
which would remove three units. With respect to the gas line easement, Mr. Noonan replied that
the City staff's recommendation is acceptable. With respect to the Outlot A private open space
area, Mr. Noonan stated that Rottlund would be happy to convey that piece of property to the
City or Dakota County.
Chairperson Messner asked Mr. Noonan if there are any proposed changes to the amenities as
originally designed. Mr. Noonan stated that the clubhouse is built and that CPDC and M &I were
not willing to perform so Rottlund stepped in and finished the project. The pool opened up last
weekend and an open house is planned for next weekend. Mr. Noonan stated that in terms of
other amenities, they are largely involved with the park that the City is designing. The gazebo and
clock tower are not going to change. In conclusion, Mr. Noonan stated that Rottlund felt it was
important to give the neighborhood some closure and complete the development rather than wait
for a developer of senior housing.
The public hearing was opened at 7:13p.m.
Bryan Bailey, 13667 Brick Path, Rosemount, approached the Commission and stated he feels this
new development is a positive thing for the community. He stated the City should definitely go
forward with medium density housing. Mr. Bailey further stated that he looks forward to the
amenities being completed as the homeowners are paying for incomplete amenities through their
association dues.
Richard Lamotte, 2318 Bonaire Path, approached the Commission and expressed his
disappointment with a new development when there are a lot of empty houses in Rosemount due
to foreclosures. He stated that this will affect everyone's taxes which is especially difficult for
people trying to sell their property in the current market. Mr. Lamotte stated there are too many
open questions in this development and it doesn't make sense when there are so many vacant
properties in Rosemount.
Fred Blanchard, 13594 Brass Parkway, approached the Commission and stated he lives in the
development in a single level townhome with no basement and no stairs and he really enjoys it.
He stated a couple of concerns or questions for the developer regarding the 10 -12 feet of grass on
the east side of their house, the completion of the road as you come into the development from
the south, construction around the gas line, and concerns with the details of the location map
included in his notice.
Mr. Noonan approached the Commission to address Mr. Blanchard's questions. He stated that
Rottlund intends to maintain the Pickens property including grading the property and advancing
the infrastructure to develop the nine single family lots and to maintain it in a way that meets the
expectations of the neighborhood. With respect to the completion of the road Mr. Blanchard
mentioned, Mr. Noonan replied that the property there is not a part of the proposed development
and is owned by another party for a commercial area. The road that is not complete is to service
that parcel alone and not the Pickens property. Rottlund Homes will complete the public road
network within the community at large. With respect to construction around the gas line, Mr.
Noonan replied that Rottlund is not allowed by law to build on or near the gas line as there are
setbacks they need to comply with.
Rajan Chattanathan, 13228 Bronze Court, in Rosemount, approached the Commission and asked
if Rottlund intends to complete the single family homes along Bronze Parkway that were in the
original proposal. Mr. Noonan replied that the current proposed development does include the
completion of the 15 lots in that area.
There were no further public comments.
MOTION by Schwartz to close the public hearing. Second by Schultz.
Ayes: 4. Nays: None. Motion approved. Public hearing was closed at 7:32p.m.
Chairperson Messner asked about the overall density of the development and asked if Mr.
Zweber could explain the City's goal with respect to density. Mr. Zweber highlighted the
original intent of the development and stated the City tries to accommodate housing at different
stages of people's lives. The Port Authority and City Council do not want to give up that
lifecycle housing element. He further explained that in the next comprehensive plan, lifecycle
housing is still the goal. Since the original concept of this development, Mr. Zweber stated that
other planning efforts have been completed to fulfill the apartment and senior housing needs of
the community such as Bards Crossing, the new Stonebridge development, preliminary platted
apartments in the Akron area. Mr. Zweber stated that density alone is not the issue but making
sure the City has housing for all types of people living in Rosemount.
Commissioner Howell stated that she has mixed feelings about the development in that she feels
we need rental rather than townhomes and she understands the concerns regarding the current
economy. She wondered if the Commission should approve a major PUD amendment based on
the economy at the present time.
Chairperson Messner replied that the role of the Planning Commission is not so much on the
policy issues that the Port Authority and City Council deal with but more of the overall issues as
they've been put forth. He stated that he also has economy concerns but that the proposed
development looks like a good product and he would support the proposed amendment.
Commissioner Howell asked if the garden units would possibly sell quickly if it would be
possible to add a greater number of those units beyond what is currently proposed. Chairperson
Messner stated that it would require another PUD amendment at the time of the addition.
MOTION by Messner to recommend approval of the Major Amendment to the
Planned Unit Development, Rezoning of the Pickens Plat to R1 -PUD: Low Density
Residential Planned Unit Development, and Rezoning of Outlot D and Outlot E of
Harmony 5th Addition to R3 -PUD: Medium Density Residential Planned Unit
Development, subject to the following conditions:
1. Compliance with the City Engineer's Memorandum dated May 22, 2008.
2. Six (6) stalls of the off street parking requirement shall be fulfilled within the
parking lot for the Harmony Clubhouse provided that the additional parking area
shown as proof of parking is constructed.
Second by Schwartz.
Ayes: 4. Nays: None. Motion approved.
MOTION by Messner to recommend adoption an Ordinance B- L< an Ordinance
amending Ordinance B City of Rosemount Zoning Ordinance for Harmony 5 Addition
and Pickens Plat.
Second by Schwartz.
Ayes: 4. Nays: None. Motion approved.
MOTION by Messner to approve the Preliminary Plat and Final Plat for Harmony 5
Addition and Pickens Plat subject to the following conditions:
1. Compliance with the City Engineer's Memorandum dated May 22, 2008.
2. Receive an agreement with the owner of the pipeline easement to allow the
placement of the parking stalls and driveways on Block 7 within the easement.
Second by Schwartz.
Ayes: 4. Nays: None. Motion approved.
As follow -up, Mr. Zweber stated this item will be discussed at the next Port Authority meeting
on June 3, 2008. It will then go before the City Council on June 17, 2008.
AGENDA ITEM: Case 08- 12 -AMD; 08- 13 -PP; 08- 14 -ZA; 08-
19-FP The Rottlund Company Major
Amendment to PUD, Preliminary Plat,
Rezoning and Final Plat of Harmony 5th
Addition and Pickens Plat.
AGENDA SECTION:
Public Hearing
PREPARED BY: Eric Zweber, Senior Planner
AGENDA NO.
5.b.
ATTACHMENTS: Site Map; Brockway Glass Development
Plan /Preliminary Plat; Harmony 5 Addition
Final Plat; Pickens Property Final Plat;
Harmony 5 Phasing Plan; Harmony 5th
Development Plan /Preliminary Plat;
Harmony 5 Preliminary Site Plan;
Harmony 5 Preliminary Landscape Plan;
Harmony 5 Grading, Drainage, and
Erosion Control Plan; Pickens Property
Development Plan /Preliminary
Plat/Preliminary Site Plan; Pickens Property
Preliminary Landscape Plan; Pickens
Property Grading, Drainage, and Erosion
Control Plan; Vantage Townhomes
Elevations and Plans; Urban Villa
Townhomes Elevations and Plans; Garden
Homes Elevations and Plans.
APPROVED BY:
RECOMMENDED ACTION: Motion to recommend approval of the Major
Amendment to the Planned Unit Development, Rezoning of the Pickens Plat to R1-
PUD: Low Density Residential Planned Unit Development, and Rezoning of Outlot D
and Outlot E of Harmony 5 Addition to R3 -PUD: Medium Density Residential Planned
Unit Development, subject to the following conditions:
1. Compliance with the City Engineer's Memorandum dated May 22, 2008.
2. Six (6) stalls of the off street parking requirement shall be fulfilled within the
parking lot for the Harmony Clubhouse provided that the additional parking area
shown as proof of parking is constructed.
-and
Motion to recommend adoption an Ordinance B- an Ordinance amending
Ordinance B City of Rosemount Zoning Ordinance for Harmony 5 Addition and
Pickens Plat.
4ROSEMOUNT
PLANNING COMMISSION
Planning Commission Meeting Date: May 27, 2008
Tentative City Council Meeting Date: June 17, 2008
EXECUTIVE SUMMARY
33OON JIMA
39NVIO Of 1D3'ens
.ld03 JITh,0
-and-
Motion to approve the Preliminary Plat and Final Plat for Harmony 5 Addition and
Pickens Plat subject to the following conditions:
1. Compliance with the City Engineer's Memorandum dated May 22, 2008.
2. Receive an agreement with the owner of the pipeline easement to allow the
placement of the parking stalls and driveways on Block 7 within the easement.
ISSUE
Rottlund Homes is acquiring all the vacant property within the Harmony subdivision and the
neighboring Pickens property. The original preliminary plat for Harmony includes an outlot for 120
rental units within two apartment buildings and another outlot for a third building that is planned for
60 units of senior housing. The two outlots are part of the vacant property that Rottlund is acquiring,
but Rottlund does not build apartments or senior housing. Rottlund has requested an amendment to
the planned unit development (PUD) and preliminary plat to allow the 120 apartments and 60 senior
housing units to be replaced with 78 townhomes. There is also a requested change to replace 28
Urban Villa style townhomes with 16 Garden Homes style quad townhomes. In addition, the Pickens
property is requested to be platted into nine single family lots.
BACKGROUND
In 2004, the City approved a preliminary plat and PUD of the Harmony subdivision for Contractor
Property Developers Company (CPDC) to redevelop the former Brockway Glass facility into a
development that consisted of 624 residential units. Since that time, 188 residential units have been
built, 166 of which are townhouses and 22 single family homes. As newspaper reports remind us,
the housing market is currently slow and it is unknown when it will begin to turn around. The
slowest market in the Harmony development is the semi- custom homes in which only 12 of the
available 47 lots have been constructed upon.
Last year, M I Bank (M &I) assumed possession of the vacant parcels that were owned by CPDC.
M &I has been negotiating the sale of all the vacant parcels to Rottlund, but Rottlund has
conditioned the sale on applying for and receiving an amendment to the planned unit development
(PUD) and preliminary plat to convert the 120 apartment units and 60 senior housing units into
townhouses. Rottlund is not interested in developing apartments and senior housing in Rosemount,
but they have been having success building and selling townhouses within the Harmony subdivision.
Existing Zoning District:
Proposed Zoning District:
Existing Unit Mix:
AG: Agricultural (Pickens property)
PI: Public /Institutional (Apartment and Senior Housing)
R1 PUD: Low Density Residential Planned Unit Development
(Pickens Plat)
R3 PUD: Medium Density Residential Planned Unit Development
(Harmony 5 Addition)
79 Units of Single Family
40 Units of Garden Homes
227 Units of Urban Villas'
98 Units of Vantages
120 Units of Apartments
2
60 Units of Senior Housing
624 Total Units
Proposed Unit Mix: 88 Units of Single Family'
56 Units of Garden Homes
223 Units of Urban Villas
152 Units of Vantages
519 Total Units
1 Includes both row homes and back -to -back units. Only Urban Villa row homes are proposed in the revised plans.
2 Includes the nine new single family lots of the Pickens property.
PORT AUTHORITY COMMENTS
The original Harmony subdivision was the redevelopment of the abandoned Brockway Glass factory
into a residential neighborhood. As a redevelopment project, the City (through the Port Authority)
contributed tax increment financing (TIF) funds to help with the costs of demolition, remediation,
and infrastructure. The increment from the tax base raised by the residential construction is used to
first pay back the TIF funds used during development, and then any additional increment would be
available for Downtown redevelopment. Because of the impact this request may have on the TIF
revenue, the proposal was shown to the Port Authority at their meeting on May 20.
The Port Authority Commissioners had mixed responses to the proposal, mostly regarding the
effect this proposal would have on the overall housing mix within the City. Some Commissioners
expressed concern over losing 120 apartment units but were accepting of the senior housing change,
while other Commissioners expressed concern over losing 60 units of senior housing and were
accepting of the change of apartment units. The mix of housing units within the City is a policy
issue, not a zoning issue. The City has expressed goals and policies within its Comprehensive Plan
to provide housing for persons in all stages of their life. It is expected that the City Council will
address this issue during their review.
SUMMARY
Site Layout
The apartments and senior housing was originally approved in the southwestern quadrant of the
subdivision, bounded by 135 Street, Brockway Avenue and Bronze Parkway. Adjacent to the
apartment and senior housing site is the clubhouse for the entire subdivision and a City park. The
clubhouse has recently been completed and is available for use by all of the residents of the
Harmony subdivision. The City park has not been constructed yet or made available to the public
because the street serving the park, Bronze Parkway, has not been constructed.
The revised preliminary plat proposes 49 townhome units in place of the apartments and 29
townhomes units in place of the senior housing. The new townhome units will fit within the
boundaries of the outlots created by the original preliminary plat. There will be a slight change in
the proposed grades from the original plat, but it will not affect the use and development of the
clubhouse and City park. In total, the change represents a decrease in 102 units from that initially
proposed. All will be constructed as owner occupied.
The Pickens property was not part of the original plat and is located directly east of Harmony. The
property is bounded by the Progress Rail line to the south and east, Bonaire Path to the north, and
Harmony to the west. The property is highest in elevation adjacent to Harmony and slopes down
toward the rail line and Bonaire Path.
3
Apartments
120
3.32
36.14
Senior Housing
60
2.61
22.99
Block 3
28
2.57
10.89
Pickens Property
N/A
N/A
N/A
Overall Development
624
84.59
7.37
r
Former Apartments
49
3.32
14.75
Former Senior Housing
29
2.61
11.11
Block 3
16
2.57
6.23
Pickens Property
9
6.79
1.33
Overall Development
519
91.38
5.68
While the Pickens property was not a part of the original Harmony subdivision, its development was
planned for incorporation within the original approval. The east end of the current 135``' Street is
stubbed to the western side of the Pickens property to provide future access. Within the 135t Street
right -of -way is sanitary sewer, municipal water, and stormwater infrastructure that was sized
appropriately to serve the development of the property. The Pickens property is proposed to be
developed into nine single family lots located on a cul -de -sac of 135 Street. The land will be graded
to be relatively flat adjacent to 135t Street and then slope downwards towards the rail line and
Bonaire Path.
One other revision to the preliminary plat is proposed in addition to the apartment, senior housing,
and Pickens sites. The property bounded by 133' Street, Butterfly Path, 134t Street, and Bronze
Parkway (labeled Block 3 within the final plat) was originally planned for 28 townhomes of the
Urban Villa style. The Urban Villa townhomes are typically row homes or back -to -back units with
the living area and kitchen on the first floor and bedrooms on the second floor. Rottlund has
proposed to replace these 28 units with 16 units of their Garden Homes.
The Garden Homes are single story quad townhomes. They are slightly larger than the Urban Villas
and are particularly marketable to seniors due to their single level layout. Rottlund does not have
many Garden Homes left in the future phases of the development and wanted to take the
opportunity to revise the preliminary plat to provide for additional Garden Home units.
Phasing
Rottlund is not proposing to final plat and construct all of their remaining townhomes at this time.
The Harmony 5th Addition final plat is limited to the townhomes and single family lots remaining to
the west of Bronze Parkway and north of 135 Street. This phase of development does not include
the revised apartment and senior area or the townhomes south of Bronze Parkway. During the
construction of the Harmony 5t Addition, all of the remaining public streets will be constructed,
including all of Bronze Parkway and 135 Street. The construction of all of Bronze Parkway is
particularly important to the City because it allows the development of the city park.
The only private streets that will be constructed are located west of Bronze Parkway and north of
135 Street. The remaining private street will be constructed with the future townhouse phases.
Residential Density
1
Units
Units
Net Acres
Net Acres
Net Densi
et liensi
4
Townhouse and Single Family Design
Rottlund is proposing to build three types of townhomes in the Harmony 5 Addition: the Garden
Homes; the Urban Villa townhomes; and the Vantage townhomes. The Garden Homes are a single
level quad -unit buildings identical to the Garden Homes that have been built in Harmony.
The Urban Villas of the 5 Addition are proposed to be all row homes with entrance facing the
streets and individual garages accessing onto a private drive. The Urban Villa units are a two level
deign with the garage and living space on the first floor and the bedrooms located on the second
floor. In the previous Harmony phases, some Urban Villa units were back -to -back unit, but all the
remaining Urban Villa units proposed to be built are the thru -unit tow home design
The Vantages are three level townhomes that are similar, but not identical, to the Gable style three
level townhome built in the previous phases of Harmony. The Vantage design has the garage and
mechanical room on the first floor, the living space on the second floor, and the bedrooms on the
third floor. The Vantage garages all access onto private streets and are primarily located interior to
the blocks, screened from the public street by the Urban Villa units. Staff supports the inclusion of
the Vantage designs into the Harmony PUD.
Rottlund is proposing nine single family homes on the Pickens property. These single family homes
will be a part of the PUD and homeowners association of the Harmony subdivision. The home
designs will be subject to the same restrictions and requirements of the Harmony single family lots.
Landscaping and Tree Preservation
The landscaping and tree preservation has only slightly changed from the original proposal. Ten
(10) additional significant trees are being removed from the Harmony 5 Addition, mostly in the
location of a temporary pond and the former senior housing site. Twenty (20) significant trees are
being removed from the Pickens property, mostly in the location of 135 Street and the building
pads. All of the trees removed are significant trees and none are heritage trees as defined by the
Ordinance.
The landscaping plan and the amount of tree replacement exceeds the requirement of the
Ordinance. Staff is supportive of the species and the proposed location of the landscaping.
Landscaping in the Harmony 5 Addition is focused to buffer the subdivision from South Robert
Trail and buffer the Pickens property from Bonaire Path and the rail line. The majority of the
existing trees between the Pickens property and the original Harmony subdivision are protected and
maintained.
Access and Parking
Access to the residential units is consistent with the access within the original subdivision. Single
family homes access directly onto public streets, but townhomes directly access either a private
street or shared driveways before entering onto the public streets. This townhouse access is
beneficial for two reasons. First, it prevents vehicles from backing out of garages or driveways from
backing onto the public streets allowing better and increase traffic safety. Second, there is an
aesthetic benefit to moving the garages to the sides or backs of the townhomes and away from the
vision from the public right -of -way.
The Zoning Ordinance requires that one stall of common off street parking is created for every two
townhome units. The proposed revision to the preliminary plat requires 58 common parking stalls
to be created, but the provided plans only show 52 common stalls within the townhouse
5
neighborhoods. Rottlund has requested that the deficiency of six (6) parking stalls be
accommodated through the parking lot of the clubhouse. The clubhouse currently has a parking lot
with 45 parking stalls, but also shows an additional proof of parking that the parking lot could be
expanded to include an additional 16 stalls.
Staff was originally concerned that granting this request would create a precedence for future
subdivisions. The City has received requests in the past to use City owned and maintained parking
for shared parking and the City has always denied those requests. Staff does not believe this request
would undermine the City's past decisions because:
The clubhouse parking is owned and maintained by the homeowners association.
The clubhouse parking would be expanded beyond its original amount of parking.
The clubhouse parking is located adjacent to the townhomes that would be using the shared
parking.
The Ordinance provides a provision for shared parking of uses that have different operation
hours.
The clubhouse will be typically used during the day and early evening, while townhomes would
typically use the parking in the late evening or overnight. Staff is supportive of the shared parking
arrangement if the additional 16 stalls in the proof of parking are constructed.
One additional parking issue remains in the Rottlund proposal. Six (6) of the parking stalls and a
shared driveway is proposed within the pipeline easement on Block 7 (the former senior housing
site). Staff does not have a concern about parking within the easement, but the City alone cannot
approve this parking arrangement. The owner of the pipeline easement must agree to this
construction. If the pipeline company does not allow this, the subdivision will be short an additional
six (6) stalls for a total deficiency of twelve (12) stalls. Staff proposed a condition of approval that
would require Rottlund to get permission from the pipeline company. If Rottlund does not, then
Rottlund would need to come back with a revised layout of Block 7 that shows how the parking
would be addressed. As an alternative, Rottlund has requested that the City permit up to twelve (12)
shared parking stalls in the clubhouse parking lot. Staff is reluctant to allow this alternative because
the parking deficiency would disproportionably bore on the townhomes of Block 7. Staff would like
to hear from the Planning Commission regarding this proposal.
Rezoning
To allow the development of the revised Harmony subdivision and the Pickens property, two
rezonings need to occur. The former apartment and senior housing sites are current zoning PI:
Public /Institutional. These areas were never rezoned during the original Harmony approval and
maintained its initial zoning designation which accommodated the Brockway golf course. The
Brockway golf course was located between the Brockway Glass manufacturing plant and South Robert
Trail. Rottlund requests that the former apartment and senior housing site be rezoning to R3 PUD:
Medium Density Residential Planned Unit Development to accommodate the construction of their
townhomes.
The Pickens property is currently zoned AG: agricultural. Rottlund requests that the property be
rezoning to R1 PUD: Low Density Residential Planned Unit Development to accommodate the
development of the single family homes. Staff recommends the approval of both rezoning requests.
6
City Park
The Harmony subdivision includes one City park in the southwest corner and is divided into two
parts by the Bronze Parkway. The park has not yet been developed because Bronze Parkway, which
provides access to the park, has not been constructed. The part of the park north of Bronze
Parkway is designed with a number of active recreational features, including a ball field and
basketball court. The part of the park south of Bronze Parkway is designed to have a nine -hole disc
golf course. The proposed revision to the preliminary plat has no effect on the park design. The
approval of the Harmony 5t Addition final plat will include the construction of Bronze Parkway and
allow the construction of the City park.
The park dedication for the entire Harmony subdivision was either dedicated or paid as fee -in -lieu
with previous phases. No additional park dedication in required for these approvals. The Park and
Recreation Committee has reviewed these proposals and has recommended approval.
Utilities /Engineering Comments
The only utility issue of note in the proposed revision is the location of a temporary storm water
pond on the west side of Bronze Parkway. The ultimate design for the City's regional stormwater
system is that the storm water from the Harmony 5t Addition would flow into a regional pond west
of South Robert Trail, but that regional pond does not exist today and it is unknown when that
pond will be constructed. To accommodate the storm water from the Harmony 5t Addition, a
temporary pond is being constructed on the west side of Bronze Parkway in place of three Garden
Home buildings. When the regional pond is constructed, the temporary pond can be removed and
the final three Garden Home buildings can be constructed.
Attached to this Executive Summary is a memorandum (memo) from the City Engineer. The memo
contains revisions that are needed to the plans and specifications and is a condition of approval, but
there is nothing within the memo that is of special concern and all the issues can be addressed
before the City Council approval or construction.
RECOMMENDATION
Staff recommends that the Planning Commission recommend approval to the City Council of the
preliminary plat, final plat, PUD amendment, and rezoning for Pickens and Harmony 5 Addition.
7
DAKOTA COUNTY
2007 RENTAL MARKET
SURVEY
PUBLISHED BY: DAKOTA COUNTY CDA
May 2007
SUMMARY OF DAKOTA COUNTY MULTI HOUSING UNITS
2007
The following are the results from the Dakota County 2007 Rental Market Survey. The cities included in
the survey were: Apple Valley, Burnsville, Eagan, Farmington, Hastings, Inver Grove Heights, Lakeville,
Lilydale, Mendota Heights, Rosemount, South St. Paul, Vermillion and West St. Paul. The units
represented refer to units identified through responses to the survey.
Graphs 1 80 contain information on the rental units identified by response to the survey.
AVERAGE RENTS
Average rent trends from 2003 2007, as shown by bedroom size, are shown on Graphs 9 13.
2007 AVERAGE RENTS AND AMOUNT OF INCREASE OR (DECREASE) FROM 2006
Unit Size
Efficiency
One Bedroom
Two Bedroom
Three Bedroom
The average rent for all units in the county combined in 2007 increased by $8.77 or 1.03
Highest Average Rent for Efficiency Units:
Burnsville
Eagan
Inver Grove Heights
Mendota Heights
Apple Valley
Inver Grove Heights
Apple Valley
Mendota Heights
Eagan
Eagan
Apple Valley
Inver Grove Heights
2007 Average Dollar Amount
Rents of Change
$592.27
$738.49
$912.35
$1,199.74
$646.03
$631.24
$570.07
Highest Average Rent for One Bedroom Units:
$860.00
$788.02
$784.94
Highest Average Rent for Two Bedroom Units:
$1,047.69
$1,005.00
$960.02
Highest Average Rent for Three Bedroom Units:
$1,293.14
$1,277.95
$1,179.59
$13.20
$3.62
$12.52
$11.30
Percent
Change
2.28%
0.49%
1.39%
0.95%
NOTE: The following cities did not have any survey responses for the following bedroom sizes:
Efficiency units Lakeville, Mendota Heights and Vermillion
One bedroom units Vermillion
Three bedroom units Mendota Heights and Vermillion
Cities with minimal or no reported units in a specific bedroom size are not included in the "Highest Average Rent" listing.
VACANCY RATES
The overall vacancy rate for 2007 was 4.7 down from 6.18% in 2006. The optimum level of vacancy in
a healthy rental market is at least 5 Graph 14 shows county -wide vacancy rate trends.
Graph 15 shows county -wide vacancy rate trends by bedroom size from 2003 2007.
Unit Size
Efficiency
One Bedroom
Two Bedroom
Three Bedroom
2007 COUNTY -WIDE VACANCY RATES AND
INCREASE (DECREASE) FROM 2006
2006 Vacancy Rate 2007 Vacancy Rate Percent Change
6.15%
4.91%
7.17%
5.83%
Highest Vacancy Rates for Efficiency Units:
West St. Paul
Farmington
South St. Paul
West St. Paul
Rosemount
South St. Paul
South St. Paul
Lakeville
Farmington
Apple Valley
Lakeville
Hastings
9.09%
8.33%
6.12%
Highest Vacancy Rates for One Bedroom Units:
10.64%
7.32%
5.86%
Highest Vacancy Rates for Two Bedroom Units:
9.39%
8.79%
8.74%
Highest Vacancy Rates for Three Bedroom Units:
5.53%
5.43%
5.26%
3.73%
4.31%
5.14%
4.06%
Lowest Vacancy Rates for E
Hastings
Inver Grove Heights
Eagan
(39.35
(12.22
(2831
(3036
fficiency Units:
0.00%
0.00%
2.76%
Lowest Vacancy Rates for One Bedroom Units:
Mendota Heights
Apple Valley
Hastings
Lowest Vacancy Rates for Two Bedroom Units:
Eagan
Inver Grove Heights
Hastings
4.04%
4.20%
4.27%
Lowest Vacancy Rates for Three Bedroom Units:
Rosemount
South St. Paul
West St. Paul
0.00%
0.00%
0.00%
NOTE: The following cities did not have any survey responses for the following bedroom sizes:
Efficiency units Lakeville, Mendota Heights and Vermillion
One bedroom units VermiMon
Three bedroom units Mendota Heights and Vermillion
Cities with minimal or no reported units in a specific bedroom size are not included in the "Highest or Lowest Vacancy Rates"
listing.
SUMMARY OF COUNTY'S RENTAL DATA 2007
Efficiency 1 BR 2 BR 3 BR TOTALS
Number of Units 536 7,889 10,688 1,575 20,688
Percent of Market 2.59% 38.13% 51.66% 7.61% 100.00%
Average Rent $592.27 $738.49 $912.35 $1,199.74 $859.64
Number of Vacancies 20 340 549 64 973
Vacancy Rate 3.73% 4.31% 5.14% 4.06% 4.70%
Each city summary includes specific information regarding average rents, vacancy rates, special notes,
summary of rental data, graphs and a map to indicate rental property locations specific to that city.
Senior housing information was obtained and compiled in the section "Senior Housing Units The
summaries do not include the senior housing developments when calculating averages and percentages.
Tax Credit housing information was obtained and compiled in the section "Tax Credit Housing Units
The Housing Tax Credit Program provides tax credits for owners and investors of affordable rental
housing. The tax credit is a fixed percentage of certain development cost or property acquisition and is
provided annually for 10 years. Federal regulations require tax credit developments to adhere to restrictive
rent and income guidelines for a minimum of 15 years, and in many cases, 30 years, depending on the deed
restrictions. Developments with allocations in 1990 and each year thereafter are required to comply with
these requirements for a minimum of 30 years. The summaries do not include the tax credit developments
when calculating averages and percentages.
NOTE: The 2007 survey includes a "Congregate and Assisted Living" section. Congregate Housing
usually offers basic supportive living services. Assisted Living typically provides more extensive services.
Memory Loss Management Services offer specially designed accommodations for those in need of special
care because of memory impairment. The summaries do not include the Congregate and Assisted Living
developments when calculating averages and percentages.
The 2007 survey includes a "Small Cities" section. This is the ninth year surveys were sent to complexes
in smaller cities. Lilydale, and Vermillion are included in this section. Properties in Coates, Hampton,
Mendota and Randolph did not respond to this year's survey.
A map of Dakota County follows the county-wide data. This map indicates the locations of all units
responding to the 2007 Market Survey which would include the congregate, assisted living, tax credit and
senior housing.
sclorA
TWP
0
DAKOTA COUNTY Surveyed Market Rate Rental Housing
1
W E
2 3 4
5 6
Miles
Rental Units by Location
1 25
26 75
76 -175
176 -300
More than 300
(See Key for information about individual locations.)
Sources:
Dakota County Community
Development Agency
Maps created by the
Dakota County Office of GIS
April 2007
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
22,000
21,000
20,000
19,000
18,000
17,000
16,000
15,000
2003
Graph 1
Graph 2
21,235
RENTAL UNITS IDENTIFIED BY
RESPONSE TO SURVEY 2003 2007
COUNTY -WIDE TREND IN THE NUMBER OF UNITS
RESPONDING TO THE RENTAL MARKET SURVEY
21,052 0
20,505 20,533
2004 2005 2006 2007
Rental Units
TREND IN THE NUMBER OF UNITS RESPONDING
TO THE RENTAL MARKET SURVEY BY CITY
A.V. BV EAGAN FARM HAST IGH
LV
2003 2004 112005 2006 2007
M.H. ROSE
20,688
SSP
WSP
Graph 3
Graph 4
MENDOTA HGHTS
1%
WEST ST. PAUL
12%
NUMBER OF COUNTY -WIDE RENTAL UNITS
2007
I.G.H.
11%
2 BEDROOM
51%
PERCENTAGE BY CITY
EAGAN
25%
SO. ST. PAUL
3%
FARMINGTON
1%
HASTINGS
3% ROSEMOUNT
1%
PERCENTAGE BY BEDROOM SIZE
EFFICIENCY
3%
BURNSVILLE
31%
3 BEDROOM
8%
LAKEVILLE
3%
APPLE VALLEY
8%
SMALL CITIES
1%
1 BEDROOM
38%
HASTINGS SO ST PAUL
9%
2% HASTINGS
APPLE VALLEY
BURNSVILLE APPLE VALLEY 2%
18%
45%
I.G.H.
7%
WEST ST. PAUL
B%
FARMINGTON
2%
SO ST PAUL
3%
HASTINGS
4%
APPLE VALLEY
8%
LAKEVILLE
3%
I.G.H.
12%
EFFICIENCY UNITS
TWO BEDROOM UNITS
ULYNERM
1%
MENDOTA HGTS
1%
Graph 5
WEST ST. PAUL
11%
Graph 7
EAGAN
27%
BURNSVILLE
30%
PERCENT OF COUNTY -WIDE
RENTAL UNITS BY CITY
2007
FARMINGTON
1%
ROSEMOUNT
1%
EAGAN
25%
5%
LAKEVILLE
2%
I.G.H.
9%
SO ST PAUL
4%
SO. ST. PAUL
1%
ONE BEDROOM UNITS
ULYIRSMT
1%
MENDOTA HGTS
1%
WEST ST. PAUL
1 FARMINGTON
1%
Graph 6
BURNSVILLE
33%
BURNSVILLE
39%
EAGAN
25%
THREE BEDROOM UNITS
Graph 8
NOTE: The following cities did not have any survey responses for the following bedroom sizes:
Efficiency units Lakeville, Mendota Heights and Vermillion
One bedroom units Vermillion
Three bedroom units Mendota Heights and Vermillion
$1,200
$1,000
$800
$600
$400
$200
Graph 9
$0
Monthly Rent
AVERAGE RENT TRENDS
COUNTY -WIDE BY BEDROOM SIZE
2003 2007
EFFICIENCY
1 BDRM
2 BDRM
2003 02004 0 2005 2006 2007
3 BDRM
$900
$800
$700
$600
$500
$400
$300
$200
$100
$0
Graoh 10
$1,200
$1,000
$800
$600
$400
$200
$0
Graph 11
Monthly Rent
EFFICIENCY UNITS
AV BV EAG FARM HSTG IGH RSMT SSP WSP
2003 2004 2005 0 2006 0 2007
ONE BEDROOM UNITS
Monthly Rent
AVERAGE RENT TRENDS BY CITY
2003 2007
LILY CNTY
AV BV EAG FARM HSTG IGH LV MH RSMT SSP WSP HAMP LILY MEND CNTY
O 2003 2004 2005 2006 0 2007
NOTE: The following cities did not have any survey responses for the following bedroom sizes:
Efficiency units Lakeville, Mendota Heights and Vermillion
One bedroom units— Vermillion
Three bedroom units Mendota Heights and Vermillion
$1,500
$1,250
$1,000
$750
$500
$250
$0
P
Graph 12
$2,800
$2,600
$2,400
$2,200
$2,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
MONTHLY RENT
1 1
1 1
i
MONTHLY RENT
Graph 13
0
AVERAGE RENT TRENDS BY CITY
t�P ,SSG \G�
TWO BEDROOM UNITS
O 2003 2004 2005 2006 0 2007
THREE BEDROOM UNITS
02003 2004 2005 2006 0 2007
AV BV EAG FARM HSTG IGH LV RSMT SSP WSP HAMP LILY CNTY
Represents 5 penthouse apartments that were verified as three bedroom apartments in the 2004 survey.
Previously they were stated to be 2 bedroom apartments.
NOTE: The following cities did not have any survey responses for the following bedroom sizes:
Efficiency units Lakeville, Mendota Heights and Vermillion
One bedroom units Vermillion
Three bedroom units Mendota Heights and Vermillion
CO co
e
C/ m
R Y.
u m
Graph 14
8
7
6
5
4
3
2
0.9
COUNTY -WIDE VACANCY RATE TRENDS
1998 2007
0 I 1 1 1 I I I I
1998 1999 2000 2001 2002 2003
Year
2004 2005 2006 2007
Graph 15
COUNTY -WIDE VACANCY RATE TRENDS
BY BEDROOM SIZE
2003 2007
EFFICIENCY
1 BDRM
2 BDRM
2003 02004 2005 a 2006 2007
3 BDRM
City
Efficiency
%of Units
1 Bedroom
%of Units
2 Bedroom
%of Units
3 Bedroom
%of Units
13M
Apple Valley
$398
$705
$855
$1,119
$558
$751
$940
$1,230
126
3.3%
118
2.3%
80
Burnsville
7
6.9%
810
21.4%
1421
28.2%
303
52.3%
Eagan
8
7.9%
901
23.8%
1010
20.1%
22
3.8%
Farmington
12
11.9%
69
1.8%
103
2.0%
3
0.5%
Hastings
6
5.9%
195
5.2%
445
8.8%
19
3.3%
Inver Grove Heights
24
23.8%
133
3.5%
597
11.9%
96
16.6%
Lakeville
85
2.2%
171
3.4%
24
4.1%
Rosemount
37
1.0%
44
0.9%
12
2.1%
South St. Paul
37
36.6%
272
7.2%
227
4.5%
5
0.9%
Vermillion
8
0.2%
West St. Paul
7
6.9%
1155
30.5%
891
17.7%
15
2.6%
Totals
101
3783
5035
579
Size
Number of
Units
Published
FMR's
Dakota County CDA Payment Standards (Effective March 1, 2007)
Region 1
Region 2
Apple Valley, Burnsville, Eagan, Inver
Grove Heights
Lakeville, Mendota Heights
Farmington, Hastings,
Rosemount,
West St Paul, Small Cities
Efficiency
1 Bedroom
2 Bedroom
3 Bedroom
Totals
101
3,783
5,035
579
9,498
$398
$705
$855
$1,119
$558
$751
$940
$1,230
$558
$706
$903
$1,222
UNITS THAT FIT WITHIN HUD PUBLISHED FAIR MARKET RENT LIMITS
FOR USE WITH THE SECTION 8 HOUSING CHOICE VOUCHER PROGRAM
The numbers below reflect units which responded to the survey with rents that fall within either the HUD published
Fair Market Rents (FMR) or the Dakota County CDA's Payment Standards. The FMR's are prepared annually by
HUD for the entire Minneapolis -St. Paul Metropolitan Statistical Area and are based on the 40 percentile of the
rental market by bedroom size.
The data collected in this market survey enables the CDA to analyze the Dakota County rental market apart from the
full metropolitan statistical area to determine the 40 percentile specifically for the Dakota County rental market by
bedroom size. The CDA determines the payment standards from this analysis. Payment standards can be
established on a local level between 90% and 110% of the FMR. A higher standard from 110% to 120% of the
FMR can be requested and is referred to as an exception payment standard. The CDA did not request any exception
payment standards based on the results of this survey.
County -Wide Totals
Totals By City
45.9% of the units surveyed fall within the Dakota County CDA's Payment Standards.
Only units that responded to the survey are included in these numbers.
Unit Size
Efficiency
One Bedroom
Two Bedroom
Three Bedroom
VACANCY RATES
SUMMARY OF ROSEMOUNT'S RENTAL MARKET
2007
2007 AVERAGE RENT AND VACANCY CHANGES FROM 2006 INCREASE (DECREASE)
2007 Ave. Rent
$565.00
$599.39
$798.37
$918.75
AVERAGE RENTS VACANCY RATES
Dollar Amt. Percent
of Change Change
$0.00 0.00%
($63.94) (9.64
$4.51 0.57%
($76.70) (7.71
2006 2007
0.00%
6.67%
11.48%
18.18%
AVERAGE RENTS
Rosemount's overall average rent for 2007 decreased by $22.33 or 2.86
Average rents for all bedroom sizes were lower when compared to the county averages.
0.00%
7.32%
6.35%
0.00%
SUMMARY OF ROSEMOUNT RENTAL DATA 2007
Differenc
e
0.00
0.65
(5.13)
(18.18)
The overall vacancy rate for Rosemount in 2007 was 6.11 down from 10.98% in 2006.
Vacancy rates were the lower for efficiency and three bedroom units and higher for one and two bedroom units
when compared to the county averages.
Vacancies in Rosemount account for 1.13% of the vacancies county-wide, see Graph 56.
SPECIAL NOTES
Rosemount has 0.87% of the rental market in Dakota County, see Graph 57.
Rosemount has one senior housing development: Cameo Place (44 units). See "Senior Housing" section for details.
Rosemount has one tax credit development: Kidder Park Townhomes (36 units). See "Tax Credit Housing Units"
section for details.
For trend information from 2003 2007, regarding the number of rental units, average rents and vacancies, see
Graphs 58 60.
0 BR 1 BR 2 BR 3 BR TOTALS
Number of Units 1 41 126 12 180
Percent of Market 0.56% 22.78% 70.00% 6.67% 100.00%
Average Rent $565.00 $599.39 $798.37 $918.75 $759.77
Number of Vacancies 0 3 8 0 11
Vacancy Rate 0.00% 7.32% 6.35% 0.00% 6.11%
GRAPH 56
GRAPH 57
ROSEMOUNT
OF COUNTY'S RENTAL MARKET
2007
COUNTY -WIDE
COUNTY -WIDE
Vacancies
Rental Units
ROSEMOUNT
ROSEMOUNT
®1 BR- 3UNITS
0 2 BR 8 UNITS
Units represented refer to units identified through responses to the survey.
EFFICIENCY (1 UNIT) 0.2%
1 BR (41 UNITS) 0.5%
02 BR (126 UNITS) 1.2%
®3 BR (12 UNITS) 0.8%
250
200 170
I7
150
100
50
0
2003
Graph 66
Percentage
10
8
6 2.94
2
0
2003
Graph so
174
2004 2005 2006 2007
8.62
RENTAL UNITS
ROSEMOUNT TRENDS
2003 2007
153
0—Rental Units
VACANCIES
f6�
.180.
3.27
10.98
$1,000
$800
$600
$400
$200
$0
Graph 69
6.11
2004 2005 2006 2007
AVERAGE RENT BY BEDROOM SIZE
Monthly Rent
EFFICIENCY 1 BDRM 2 BDRM 3 BDRM
0 2003 2004 2005 0 2006 0 2007
Units represented refer to units identified through responses to the survey.
The Twin Cities rental market has shown improvement, recover-
ing from the effects of a sluggish job market which plagued the
region during the second half of 2007. Our survey showed a
3.9% physical vacancy rate in the 1st Quarter of 2008, down from
4.2% last quarter and 4.4% one year ago. We expect vacancies
will continue to decline throughout the Metro Area as the sum-
mer months approach.
We calculate an average market rent of $908 for the quarter, up
3.7% over 12 months and 1.0% from last quarter. Smaller unit
types have demonstrated more substantial rent growth, with the
average rent for a studio /efficiency unit up 5.0% from a year ago.
Meanwhile, one bedroom and two- bedroom units showed 3.8%
and 3.7% rent growth, respectively.
Clearly we have seen marked inventory growth in the form of
"shadow" markets, including investor -owned condos and also
townhouse and single family home rentals. However, these in-
creases in rental inventory seem to be largely offset by in-
creases in renter demand associated with the more than 12,700
foreclosures in the Twin Cities region in 2007 (per RealtyTrac).
The apartment market has also benefited from regional job
growth. Twin Cities businesses added about 14,000 jobs during
the 1st quarter of 2008, according to MN -DEED Current Employ-
ment (CES) estimates. The Education Health Services Sector
continued to expand, adding 4,500 jobs during 2008 1st Quarter.
The Manufacturing Sector also added 2,200 jobs, after several
consecutive quarters of declines (having lost 4,700 jobs between
2005 and 2007). These trends are clearly positive signs for the
apartment market.
We expect the Twin Cities market will absorb between 1,700 and
2,000 units during 2008, outpacing new construction at roughly
860 units for the year. Thus we forecast a steady decline in the
regional vacancy rate in the forthcoming months. Developers
are gearing up for more substantial supply increases beginning
in 2009, however. We expect between 1,300 and 1,600 units will
come to market in 2009. Another 4,000 units are being consid-
ered for 2010 and 2011, including more than 1,800 units within
the city of Minneapolis.
Best Regards,
s:er
Brent Wittenberg
Vice President
Twin Cities Metro Area -1st Qtr 2008
Average Market Rents and Vacancy by Unit Type
$1,800
$1,500
g $1,200
cn
o:
0
$900
0
Q $600
$300
$o
c
S�J a� off 1 a� off x hip "1
Oche ce 0� X 40 0 I c a
Average Rent $908 Vacancy 3.9%
18.0
15.0
12.0
9.0
6.0
3.0
0.0
Twin Cities Metro Average Rent and Vacancy Rate
1st Qtr of Each Year 2004 -2008
Twin Cities Metro Area
City of Minneapolis
City of St. Paul
Downtown Minneapolis
South Mimieapolis
North Minneapolis
East Minneapolis
U of M. SE, NE Mpls
Of
$635 $605 5.0%
$766 $757 3.8%
$1,055 $1,029 2.5%
$964 $949 3.7%
$1,352 $1,422 -4.9%
$1,279 $1,251 2.3%
$1,604 $1,587 1.1%
$908 $876 3.7%
31OO8'
$617 $589
$823 $785
$1,293 $1,252
$1,158 $1,092
$1,407 $1,308
$1,595 $1,595
$892 $844
$659 $615 7.2%
$759 $735 3.3%
$1,156 $1,134 1.9%
$966 $923 4.7%
$1,674 $2,007 -16.6%
$1,388 $1,341 3.5%
$876 $848 3.3%
$606 $618 -1.9%
$1,073 $1,023 4.9%
$1,354 $1,310 3.3%
$1,690 $1,622 4.2%
$2,491 $2,395 4.0%
$1,144 $1,093 4.7%
$618 $579 6.7%
$720 $699 3.0%
$983 $932 5.5%
$1,583 $1,479 7.1%
8769 $732 5.0%
$420 $420 0.0%
$676 $638 6.0%
$974 $912 6.8%
$1,292 $1,180 9.5%
$864 $809 6.8%
$707 $474 49.1%
$822 $669 22.8%
$1,373 N/A N/A
$1,036 $947 9.4%
8936 $920 1.7%
$866 8700 22.3%
Studio 5,190 199
One Bedroom 47,360 1,620
One Den 2,114 89
Two Bedroom 48,419 1,952
Two +Den 1,190 87
Three Bedroom 6,594 333
Three Den /Four 366 4
Total 111,233 4,284
Studio 2,495 94
One Bedroom 8,231 265
One Den 136 10
Two Bedroom 3,813 161
Three Bedroom 242 4
Four Bedroom 58 0
Total 14,989 541
Studio 861 33
One Bedroom 5,711 223
One Den 254 13
Two Bedroom 4,603 174
Two Den 130 30
Three Bedroom 509 25
Total 12,070 498
Studio 759 30
One Bedroom 2,261 82
One Den 85 4
Two Bedroom 961 67
Three Bedroom 20 0
Total 4,086 183
Studio 1,178 40
One Bedroom 3,578 81
Two Bedroom 1,255 55
Three Bedroom 69 1
Total 6,114 188
Studio 13
One Bedroom 140 8
Two Bedroom 173 12
Three Bedroom 30 2
Total 356 24
Studio 103 19
One Bedroom 551 73
One +Den 12 2
Two Bedroom 135 13
Three Bedroom 19 1
Total 822 108
3.8%
3.4%
4.2%
4.0%
7.3%
5.1%
1.1%
3.9%
3.8%
3.2%
7.5%
4.2%
1.7%
0.0%
3.6%
3.8%
3.9%
5.1%
3.8%
23.1%
4.9%
4.1%
4.0%
3.6%
5.0%
6.9%
0.0%
4.5%
3.4%
2.3%
4.4%
1.5%
3.1%
15.4%
5.7%
6.9%
6.7%
6.7%
3.4%
3.8%
5.3%
4.6%
11.7%
6.9%
2.8%
4.4%
4.3%
3.5%
2.8%
4.2%
6.5%
0.0%
3.8%
2.7%
4.3%
20.3%
4.8%
47.7%
7.1%
5.3%
6.2%
4.4%
0.9%
6.5%
25.0%
5.2%
2.8%
3.0%
3.6%
4.3%
3.1
15.4%
5.0%
8.1
6.7%
7.0%
0.5%
-0.4%
-1.1%
-0.6%
-4.4%
-1.9%
-1.7%
-0.6%
-0.6%
-0.2%
4.7%
0.1
-4.8%
0.0%
-0.2%
1.1%
-0.4%
-15.2%
-1.0%
-24.7%
-2.2%
-1.1%
-2.3%
-0.7%
4.1
0.4%
-25.0%
-0.7%
0.6%
-0.8%
0.8%
-2.9%
0.0%
0.0%
0.7%
-1.2%
0.0%
-0.3%
18.4% 8.9% 9.5%
13.2% 5.3% 7.9%
16.7% N/A N/A
9.8% 0.8% 9.0%
5.3% 0.0% 0.5%
13.1% 4.8% 8.3%
Studio 442 3 $619 $574 7.9% 0.7% 3.4% -2.8%
One Bedroom 1,701 21 $721 8695 3.7% 1.2% 2.5% -1.2%
One Den 17 0 $794 $794 -0.1 0.0% 11.8% -11.8%
Two Bedroom 1,289 14 $969 $954 1.6% 1.1% 2.8% -1.8%
Three Bedroom 104 0 $1.200 $1,200 0.0% 0.0% 5.8% -5.8%
Three Den/ 4 BR 58 0 51,595 $1,595 0.0% 0.0% 0.0% 0.0%
Total 3,611 38 $825 $806 2.4% 1.0% 2.8% -1.8%
Blaine
ntown St. Paul
North of 1 -94 (St. Paul)
South of 1 -94 (St. Paul)
Anoka Champlin
Bloomington
Average Rents and Vacancies
3/20Q8 g y 3t1007° Change
$792 $723 9.6%
$972 $943 3.0%
$1,174 $1,185 -0.9%
$1,275 $1,194 6.8%
$1,830 $2,262 -19.1%
$1,401 $1,242 12.8%
$1,080 $1,065 1.4%
200 3 ?200 Cfiangts
$485 $479 1.2%
$649 $639 1.6%
$794 $762 4.2%
$786 N/A N/A
$978 $987 -0.9%
$729 $709 2.8%
an
$595 2.4%
$732 $725 1.0%
$1,021 $984 3.7%
$1,708 $1,759 -2.9%
$853 $839 1.6%
$611 $591 3.4%
$785 $748 4.9%
$1,210 N/A N/A
$1,056 $1,038 1.7%
$1,422 N/A N/A
$1,718 61.678 2.4%
$955 $908 5.1%
$644 $633 1.7%
$755 $736 2.6%
$834 $823 1.4%
$987 $925 8.7%
$820 $803 2.1%
Apple Valley I Rosemount
$888 $842 5.4%
$955 $955 0.0%
$1,038 81,066 -2.7%
$1,348 $1,317 2.3%
$1,242 $1,251 -0.7%
$1,975 $1,899 4.0%
$1,059 $1,030 2.8%
$720 $706 2.0%
$854 $837 2.1%
$1,041 61,023 1.7%
$822 $807 1.9%
East St. Paul
One Bedroom 295
Two Bedroom 470
Three Bedroom 71
Total 838
Units Paean
12.5%
3.0%
5.0%
3.0%
4.3%
20D `:z an9
2.7% 1.7% 1.0%
3.8% 2.6% 1.3%
0.0% 1.4% -1.4%
3.1% 2.2% 0.9%
Studio 311
One Bedroom 1,004
One Den 157
Two Bedroom 488
Two Den 96
Three Bedroom 52
Total 2,108
Studio 116 8
One Bedroom 1,862 74
Two Bedroom 1,823 58
Two Den 10 0
Three Bedroom 204 11
Total 4,043 153
Studio 187 7
One Bedroom 1,528 85
Two Bedroom 1,183 47
Three Bedroom 35 1
Total 2,935 140
Studio 247
One Bedroom 1,317
One Den 67
Two Bedroom 1,109
Two Den 24
Three Bedroom 218
Total 2,984
Studio 8
One Bedroom 270
Two Bedroom 562
Three Bedroom 66
Total 906
One Bedroom 329
One Den 6
Two Bedroom 560
Two Den 46
Three Bedroom 266
Three Den/Four 8
Total 1,216
13
29
11
36
30
0
119
35
0
33
0
13
87
8
28
2
39
0
13
0
9
0
31
4.2%
2.9%
7.0%
7.4%
31.3%
0.0%
5.6%
6.5% 3.8% 27%
4.0% 5.4% -1.4%
3.2% 4.2% -1.0%
0.0% N/A N/A
5.4% 5.8% -0.4%
3.8% 4.8% -1.0%
3.5%
5.6%
4.0%
3.1
4.8%
2.8%
4.7%
32.7%
10.3%
62.6%
0.0%
10.5%
3.8%
4.2%
4.0%
9.1%
4.1%
22% 1.2% 1.0%
2.7% 2,5% 0.2%
0.0% N/A N/A
3.0% 4.2% -1.2%
0.0% N/A N/A
6.0% 10.4% -0.4%
2.9% 3.6% -0.7%
0.0%
2.6%
6.0%
4.5%
4.9%
1.4%
-1.8%
25.7%
-2.9%
-31.4%
0.0%
-4.8%
-0.2%
1.4%
0.0%
-6.0%
0.6%
12.5%
0.4%
-1.1%
-1.5%
-0.6%
2.5% 3.0% -0.5%
0.0% 0.0% 0.0%
2.4% 9.0% -6.7%
0.0% 17.4% -17.4%
3.5% 4.9% -1.3%
0.0% 0.0% 0.0%
2.6% 8.4% -3.8%
Studio 197 4 $661 $643 2.9% 2.0% 0.9% -0.8%
One Bedroom 2,660 75 $794 $779 2.0% 2.8% 2.8% -0.7%
One Den 161 8 $959 $934 2.6% 5.0% 3.5% 1.0%
Two Bedroom 2,632 114 $974 $928 5.0% 4.3% 4.0% 4.1%
Two +Den 56 1 $1,008 81,010 -0.2% 1.8% 8.5% -3.2%
Three Bedroom 308 21 $1,137 $1,103 3.1% 6.8% 5.0% 3.4%
Total 6,014 223 8893 $862 3.6% 3.7% 3.4% 0.3%
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Southwest Market
As of 1st Quarter 2008, the average market rent
in the Southwest Market was $994 per
month, up from $964 a year ago. The vacancy
rate declined to 4.2% in 2007, but increased
slightly to 4.3% in 2008 1st Quarter.
Southeast Market
As of 1st Quarter 2008, the average rent in the
Southeast Market was $943 per month, up from
$942 in 2007. The vacancy
rate, meanwhile, showed a significant decline to
4.5 compared to 6.6% a year ago.
South Central Market
In the South Central Market, the average rent in
1st Quarter 2008 was $907 per month, up 6.8%
over the past 12 months. The vacancy rate has
shown a steady decline since 2005, to a low of
3.9% in 1st Quarter 2008.
Average Market Rent Vacancy by County
In the 1st Quarter of 2008, Washington County had the highest average rent among the seven
metro counties ($973 /month), as well as the highest vacancy rate (5.0 Anoka County had
the lowest average rent ($837 /month),and the lowest vacancy rate (3.1
Townhome Market Rents Vacancies
Townhome properties are typically larger in size and thus many of these communities command
higher rents than traditional apartment complexes. As of 1st Quarter 2008, the average monthly
rent for townhome communities was $1,122 per month, down from $1,154 a year ago. The decline
in average rent is an indicator of increasing competition from investor -owned townhomes single
family homes. The overall physical vacancy rate was 4.5 up from 4.2% a year ago.