HomeMy WebLinkAbout3.b. Metropolitan Development Investment Framwork Update �
� City of Rosemount
Executive Summary for Action
City Council Meeting Date: October 19 1993
Agenda Item: Metropolitan Development Agenda Seetion:
Investment Framework Update DEPARTMENT HEAD
REPORT
Prepared By: Lisa Freese Agenda No:
Director of Planning ��c� �,¢. � �
i� YT
Attachments: Reports from the Metropolitan Appr v d
Council Subcommittees (6) -
On Tuesday I will provide a brief update on the etropolitan
Council's Metropolitan Development Investment Framewor process. I
am quite concerned about the findings being presented to the full
Metropolitan Council from the Metropolitan Urban Service Area
subcommittee. The report suggests that the sector in which Rosemount
is grouped has enough land supply to last until 2012 (pre Update
2000) . This could have serious implications for the City if policies
are adopted based on this data. Please browse the six reports before
Tuesday's meeting, especially page 9 and appendix A of the report
entitled Metropolitan Urban Service Area Recommendations for the
Regional Blueprint.
The Planning Commission has been discussing the need for a broad
based local lobbying effort to respond to the regional issues
atfecting the city (MUSA, Sewers, etc. ) and will be presenting a '
recommendation to the City Council at your first meeting in November.
Recommended Action: No action required.
City Council Actionz
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� > REGIONAL IlWESTMENT WORK GROUP
y��1 REPORT TO THE COIvIMITTEE OF THE WHOLE
October S, 1993
IlV1'RODUCTION "
The Regional Investment Work Group was established by the Council in April to revie�w the regional
im�stment decision maldng process, #o review the amount of capital financing used by the regional
ageneies and evaluate whether debt capacity measures should be considered by the Councit and to
evaluate and recommend appropriate capital financing and debt management policies.
The Work Group organized in June. Members included Kevin fIowe and Roger Scherer {Co-
' Chairs),I�ede Walfson,Steve Wellington and Barbara Butts-Williams. The Work Crroup agreed ta
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•` review how re 'onal investmeat dec�sions are curren made and evaluate whether additional
information or revi�w mechanisms are needed to ensure investment decisions are consistent �
� `with Counc� determined needs and priorities, :. _ ;
• v =develop debt management policies and procedures to guide staff administrative actions
` relating to the issuance and management of long-term debt, and
• develop a process"for determining the appropriate Council role in decisions on special
facilities or programs that propose regional financing.:
x:BACKGROUND`INFORMATION/CONCLUSIONS
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The Work Group was provided background information in two primary areas: 1) information on
cuirent regional investment goals,palicies and pnorities and on current implementation mechanisms '
'and 2)information on historical trends in regional debt issuance and projections of capital investrnent
'spending and long-term debt financing for regional systems.
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j FIistorical information shows thaf regional agency debt comprises a relatively small portion of total
overlapping debt issued by local jurisdictions in the region. At the end of 1990,regional agency debt `
� represented approximately 11 percent of the total outstanding debt issued by counties,municipalities,
. school districts,townslups and special districts in the area. The historical information also shows that
outstanding debt of regional agencies and ali local jurisdictions combined declined as a percent of
mazket value during the late Seventies and early Eighties. This suggests that the region's ability to
pay for long-term debt issued by all local jurisdictions improved during that period.
The Work Crroup reviewed projections of future capital investments by regional agencies and their
� impact on long-term debt issuance and'annual debt service requirements. < Using approved
implementation plans, capital improvement programs and staff estimates, the group identified
approximately $1.36 billion (1992 dollars) in capital investments and $b70 million in required long-
term debt issuance by regional agencies over the next 10 years. These approved or projected capital
investments by regional agencies will require ielatively lazge and steady issuance of long-term debt
and will increase annual debt service costs for regional agencies over current levels.0�Annual debt'
service oosts as a percent of regional personal income will also increase,from approximately 15/IOOths
of one percent currently to approximately 25/100ths of one gercen� Half of the increase results from
`increased debt seivice requirements for regional systems and half results from Northwest Airlines-
�'l related deb� The figure on page 6 illustrates these trends.
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Potential capital investments which coutd have an impact on long-term debt issuance and annual debt
service costs of regional agencies were also reviewed by the Work Group. Potential investments not
reflected in currently approved capital plans include new airport development or major expansion at
� the current airport,light rail transit development,wastewater treatment plant projects for phosphorus
removal or expansion of treatment capacity and airport environmental projects. If these capital
investments are undertaken,the cumulative impact on long-term general obligation debt issuance(and
revenue debt issuance if significant airport development is uudertaken)witl be significan�
Based on the background information provided, the Regional Investment Work Group seached
several conclusions:
• Regional agency debt reflects a relatively small proportion of all local government debt in the �
region. Capital investment/financing decisions by municipalities,counties and school districts
will have a more significant impact on debt levels in the region than regional capital
investmentlSnancing decisions.
• Regional agency debt has been at a moderate and declining level when compared to personal
income or market values in the region. C�rrently approved regional agency capital
improvement and debt Snancing plans will increase annual debt service costs as a percent of
regional personal income over the next 10 years. However, these debt service levels are not
considered to be excessive compared to the region's ability to pay. .
• A number of major regional faciliiy capital investment decisions are on the harizon that could
have a significant impact on regional debt service costs.
• Capital investment decisions should be made on the basis of identified regional needs,
evaluations of regional benefits and costs and Council investment priorities. Capital financing
altermatives should be considered after regional needs have been determined and service :;,,
altematives evaluated. �
• The investment policies and priorities reIIected in the cunent Metropolitan Development and
Investment Framework are sound and should be retained:in the Blueprin� Investment
priorities by geographic policy areas may need to be revised bassd on policies or strategies
proposed by other work groups, but the bas'ic emphasis on maintaining, protecting and fuily
utilizing existing investments and giving priority to serving e�dsting development should be
retained.
• The current investment review process for regional agencies,which reviews capital uivestment
plans by functional area, is worldng well in terms of setting priorities within functional areas
that are consistent with and carry out Council plans and policies.
• Potential new regional capital investments that, together with currently approved capital
investments, could have a significant cumulative fiscal impact on the region and may require
a more consolidated review of regional investments in the future and a process for prioritizing
or maldng tradeoffs among regional investments.
• Capital financing sources typically are dedicated to speci�ic functional areas, making
meaningful resource allocation between functional azeas difficul� .
ISSUES AREAS /RECOMMENDED POLICIES AND ACrION STEPS _
The Regional Investment Work Group identified several issue areas where it concluded that Council
policy statements and strategies or action steps are ne�ded. :The issues fall into four areas: l)capital
investment/financing decisions for metropolitan systems, 2j review of regional agcncy budgets, 3)
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. regional agency long-term debt issuance and management and 4)fiscal r�view of regional scale special
facilities or programs. '
Issue 1: Capital investment/financing decisions far metropolitan systems
The Regional Investment Work Groug found that the existing capital investment review and approval
process for regional agencies is working effectively to address capital in�estment needs for regional
systems and ensure consistency of regional agency service and capital plans with Council policies and
priorities. The group did express concern, however, that the Council does not have all the
information it needs to make capital investment and cagital financing decisions when it reviews and
approves individual implementation plans and other capital improvement programs for metropolitan
systems. Specifically, the group coacluded that better decisions woutd be made i�when the Couucil
reviews capital plans within fuactional areas, information is available on the combined capital
investment plans for all metropolitan systems and on the fiscal impacts of the proposed investments.
Recommended Policy '
The Metropolitan Conncil will establish an investment decision-maldng process for metropolitan
systems that provides information necessary to ensure the coordinated provision of high quality,
cost effective infrastructure for the ngion and that carries ont Council investment priorities.
Recommended Action Steps
• The Metropolitan Council will periodically prepaze,in consultation with metropolitan agencies
� and the Minnesota Department of Transportation, a consolidated capital investment report ,
that provides information on capital investment plans and capital financing plans for current
metropolitan systems or other capita facilities proposed to be implemented or financed at the
regional level. The report should be prepared by December 15 of odd-numbered years,with
the fust report prepared in 1995.
• The Metropolitan Council will adopt capital investment polieies and guidelines that promote
camprehensive capital investment planning by the Council and metropolitan agencies and
ensure the Council is provided with adequate in€orination to make capital investmeat
decisions.
• The Metropolitan Council will amend the content requirement for implementation plans to
ensure that information on capital investments and capital financing is provided in a form that
facilitates consolidation with information from other metropolitan agencies and that facilitates
the evaluation of the long-term f�scal impacts of the pians on taxpayers and facility users.
Issue 2: Review of re 'oi� nal agency budgets
Under current legislation, the Metropolitan:Council ensures that long-term service and capital
investment plans of inetropolitan agencies are consistent with Council policies and priorities through
Council review and approval of implementation plans and other capital improvement programs or
projects. Eaeh metropolitan agencys is then responsble for ensuring that the short-term activities
of the agency is consistent with its approved plans and conforms to appropriate Council policy plans.
The Work Group found that,in a number of instances,annual budget decisions and bonding requests
of regional agencies were not consistent with approved long-range plans.
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The Work Group concluded that the linkage between long-range plans and short-term actions would
be strengthened if the Council took responsbility for reviewing annual operating and capital budgets
of the metropolitan agencies. �
The Work Crroup aLso found that the review would be one strategy the Council could nse to carry
out its responsibility for improving the cost effectiveness and efficiency of public sector�service
delivery in the region. Review of annual budgets would provide the Council with the opportunity to
suggest areas where mare cost effective delivery of regional services should be pursued.
Recommended Policy
The Metropolitan Conncil will,throngh the review of annual operating and capital bndgets,manitor
the short-term actions/decisions of regional agencies to ensure consistency with long-term service,
capital investment and financial plans and to promote cost effective and efficieat provision of
_ regional services.
Recommended Action Steps
• The Metropolitan Council will propose legislation requiring metropolitan agencies to submit
their annual operating and capital budgets for review and comment prior to adopdoa
Issue 3: Re,gional agency lon,��term debt issuance and management
One of the original charges to the Regional Investment Work Crroup was to evaluate e�sting debt
management policies. The group decided that while there were no significant issues related to the � ,:�
issuance of long-term debt by the Council,a formal debt management policy document would provide
guidance to staff on the issuance and management of long-term debt,particulazly with respect to the
use of variable rate debt, acceptable methods of sale, refunding practices and interest rate swaps.
The Work Crroup considered whether the Council should adopt specific limits on the issuance of
regional debt based on measures of the region's ability ta pay. The group concluded that a specific
limit shoutd not be adopted, but that the Council should closely monitor trends in regional debt
indicators.
Recommended Policy
The Metropolitan Council will effectiveIy manage regional agency long-term debt to maintain the
ability of the Conncil and metropoIitan agencies to finance regional services and capital facilities,
minimize bormwing costs and minimize the fiscal impact of regional agency debt serrice on
taxpayers and regional system users.
Recommended Action Steps .
• The Metropolitan Council will adopt formal debt management policies by December 1,1993.
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Issue 4. Fiscal review of sgecial facilities or re�ional scale programs
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The Regional Investment Work Group found that e�risting Council policies do�not provide an
opportunity for the Council to review the financial aspects of special facility proposaLs against Council
policies and economic evaluation criteria,even when special facility proposals include proposals for
regional financing or subsidies. In the 1986 revision of the Metropalitan Development and
Investment Framework,the Metropolitan Council expanded its role in reviewing and commenting on
special facilities with the potential for major impacts on the metropolitan area. The Council defines
special facilities as large,often one-of-a-kind facilities with a specific function or focus,such as sports
or convention facilities. They are generally user-oriented and serve the entire region ar state.
The policy adopted in 1986 states that the Council's review w�l focus on the purpose of and need
for the facility,whom it will serve and where it works best before considering development objectives
for indivic3ual geographic policy areas. This policy does not specifically provide for review of regional
financing/subsidy proposals for special facilities and the Work Group found the need for a policy to
complement the existing policy. �
The Work Group aLso found a need to provide the Council with the opportunity to review and
comment on other programs,proposed at the local or regional level, that propose the use of regional
financing or a redistnbution of regional tax base or tax revenues. Examples include proposals for
housing revitalization, environmental cleanup or urban redevelopment and proposals to modify the
fiscal disparities program.
Recommended Policy .
,� The Metropolitan Council will review special purpose facilities or programs proposed by public or
private entities that are designed to serve the general public and that propose financing with
regional bondiag or regional tax resources.
Recommended Action Steps '
• The Metropalitan Council will adopt criteria for detemuning when the Cauncil should
comment on the financial elements of special facility or grogram proposals.
� The Metropolitan Council will adopt special facility/program financial review grocedures
requiring staff to prepare information for the Council as proposals surface. The staff report
should descnbe the proposal, apply the criteria for determining the Council involvement and
recommend how the Council should comment or be involved in the decision-maldng process.
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�Projected Debt Service �
as Percent of Personai Income
Metropolitan Ageneies .
Percent oi Persortai incame
0.3
0.25 _..._....... .........
0.2
0:15
0.7
0.05 -
0
1990 1995 2000 2005 2010 , ;�
� Airports � Sewers � Tranait
� Other � NWA-Related
Other includes Parks. Sports Factiities
and Salid Waate G�anta
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ME'IROPOLTTAN COUNCII.
Mears Pazk Centre, 230 East Fifth Street, St Paul, Minnesota 55101
b12 291-6359 TDD 612 291-0904
DATE: October 1, 1993
TO: Committee of the Whole
FROM: Blueprint Staff(Fd 1Vlazanda, Marcel Jouseau, Jan Gvstafson, Bob Mazanec) _
�JECT: : Blueprint Em+ironmental Policies '
BACKGROUND
The Council has identified the environment as one of the four major goals/`issues/palicies sections
of the new Bltceprint. T'he enviranment/water was aLso identified as a secondary work group issue.
Ho�vever, no Blueprint issue group was formed to study and formulate em►ironmental policies.
Rather, it was determined that consideration of the environment should be woven into the work
of all issue groups as a critical ooncem in the development of all Counc�policy.
The current Metropolitan Development and Inv�rt�nent Framework (MDI� and related system
plans contain several major'environmental policies that, if continued, should be reflected in the
Blueprint. In addition, a Water Quality Strategy Study Group, formed by the chair, proposed
several policies. For some of these propc�sed policies the most appropriate vehicle for adoption
�'�"_; by Council appears to be inclusion in the Blueprint draft.
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Rough, hilly terrain and blut�land have been suggested as geograpluc features for which
protective policy language ought to be written. No current policies e,�st relative to these
features, and only occasional preliminary discussions have occuaed regardiag possble policy
language. .
A summary of current emiironmental policies and relevant progosed water policies is attached.
• RECOMI��NDATION
The Blueprint Drafting Team recommends that they be authorized to develop the environmental
section of the draft Blueprint using e�risting MDIF enviranmental policies, policies ia the Water
Resources Management Policy Guide, and material from the Water Quality Strategy Study Group
as a basis, and including an issuelpolicy statement regarding protection of rough, h�ly terrain and
biuff lands.
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ENVIRONMENTAL POLICIES FROM THE CURRENT METROPOLITAN
DEVELOPMENT AND Il!�IVESTMENT F�;AMEWORK AND RELATED SYSTEM PLANS
FROM TI� CURRENT MDIF, 1986:
Policy 18
The Metropolitan Council supports the long-term continuation of agriculture in the
rural service area. The Council will use the following ranking in decisions to
accommodate facilifaes serving urban residents.
1. Primary protection area: land covenanted in a,griculture preserves will receive
primary protection. Urban facilities should be prohbited ia this area unless there
is strong documentation that no other locations in the Metropolitan Area can
adequately meet the siting and selection eriteria.
2. Secondary protection area: lands certified but not presently in agricultural
preserves will receive a level of protection secondary to agricultural preserves.
Urban facilities should not be located in this area unless there is strong evidence
that a proposed urban use cannot be located in the general rural use area.
TE��I'
The commercial agricultural area includes those lands certified by locaT governments as eligible for
agricultural preserves under the 1980 Metropolitan Agricultural Preserves AcL This approach
places the responsibility for defining agricultural land on local govemments. With Council
protection policies for commercial agriculture focused only in areas where there are Iocal
government plans and protections, local and regional policies support one another.
The amount of land included in the commercial agricultural area is large, covering about 600,000 �
acres in 1990. This constitutes over half the farmland in the seven-caunty area.-
The geographic area defined as the commercial agri�cultural area is subject to €requent change
when tied to the Agricultural Preserves Act because land can go into and out of certi6cation
when local governments decide to alter its status. Local governments may replan and rezone
certi�ied areas if a change in policy is desired, but this change must occur as a pubiic process. For
the purposes of this document, the commercial agricultural area is defined as the area certified as
of March 1 of each year. This date is the end of eaeh Council reporting year required under the
Agricultural Preserves Ac�
Under the Agricultural Preserves Act, a.local government passes a resolution certifying Iand
eligible for protections and bene�its and limiting housing density to one unit per 40 acres. The
certified area is then considered long term agricultural land. The local comprehensive plan and
zoning ordinance must reflect this land use and zoning. Farmers owaing land wittun the certified
area may then enter the program. Land in the program is referred to as covenanted land The
Agricultural Preserves Act provides protection for the farmer from urban assessments, properiy
taxes at development value and canflicting land uses in exchange for a legal commitment to
continue farming for at least eight years.
NOTE: THfiRfi HAS BfifiN SOMfi DISCUSSION THAT POLICY REI.ATFD
T�O THfi PRfiSfiRVATIUN OF AGRICULTURAL LANDS Bfi LINT�T's"D TO
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SOII.PRODUCITVITY AS WELL AS CERT'IFICATTON UND�R THfi
AGRICULTURAL PRESfiRVES AGT. STAFF WILL DRAFT LANGUAGfi
THAT MODIF'�ES THE ABOVE ZTsXT BY INCLUDING DISCUSSION OF
S01L TYPES (PROTfiCITON OF C'LASS ONE,TWO AND T'�iREfi SOIIS�
FROM PART 3 -- WATER RESOURCES MANAGEMENT GUIDE CHAPTER, MAY 1986
Policy 3-4
The Conncil,through its numernus review and approval anthor3ties,will pr�serve all
protected and unprotected natnral w�terconrses -- inclndiag associated wetlands,
channels, floodplains and shorelands — to enhance water quantity and qnality and to
preserve their ecological functions.
TExI' .
From the moment the glaciers retreated, the drainage system has been attempting ta reach
equilbrium. The formation of a natural drainage system has included bends, deltas and
floodplains -- all in an attempt to deal with a certain volume of water. When the natural drainage
process is interrupted by land development, disastrous results can follow. Straightening and lining
crooked channeLs allows water to move faster and flood property dc�wnstream. Paving portions of
a watershed without providing•storage ponds to compensate can yield similar flooding.
Eliminating meanders increases water velocity and can cause erosion. Encroaching into :
floodplains means water leveLs might rise eLsewhere.
� In spite of these consequences, proposals to develop areas and alter drainage systems are
constantly made. The extra expense and land disturbance associated with building artificial water
canduits`a're'often justified for no other reasons than convenience and eff'iciency in building the
developmen� Yet, a natural drainage system meandering through a development caa be highly
attractive. At the same time, it can hold excess water, reduce pollution load and allow infiltration
into the groundwater.
In agricultural areas, similar drainage problems have occuned Drainageway alteration without
enviroamental consideration has manifested itself in proposals that are taken incrementally and
not analyzed for total hydrologic effect; in "ditch maintenance" projects on ditches that were
ignored for SO years and have thus been reestablished as functioning wetlands; and in drainage of �
lowlands and wetlands to gain a small additional amount of crogland. The Counc�7 cannot
support these ill-planned attempts to tum a water-related resource into a crapland. The Counc�
does, however, fully support the adoption of watershed plans in rural areas that will deta� how
the drainage system works and what must be done to maintain the system within the context of
proper water resources managemenL Certainly, the Council places a high priority on continued
agricultural activity in the region and is not opposed to maintenance of the agricultural drainage
system, provided it is maintained with the total water resource system in mind.
Protection of the natural drainage features of the Metropolitan Area will maintain a system that
requires a minimum amount of pubtic expenditures to correc� Without exception, past major-
water problems requiring expensive corrective measures were caused by failure to adequately
respect and plan for praper drainage.
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FROM WATER RESOURCES MANAGEMENT- PART 2 ON SURFACE WATER
MANAGEMENT GUIDE CH[APTER, SEPTEMBER, 1982
Policy 58
Watershed management plans should give preference to nonstructural management
practices and shonld make every effort to retain existing wetlands, drainageways, stream
channels and lake basins in a condition that will allow uatural drainage, storage and
infltration processes to operate freely.
'TEX'I'
Since its early days, the federal program for improving water quality.has emphasiz�ed using low-
cost,nonstructural management practices. Emphasis is on controlling nonpoint pollution rather
than on constructing elaborate control devices.
Fortunately, nature provides a system that is low cost, nonstructural and very effective in dealing
with water quality and quantity. This system consists of wetlands and natural drainageways. The
wetlands act as natural reservoirs that regulate the IIow of water after heavy rainstorms or rapid
snowmelts. The drainageways serve as channels to convey water from its source to its eventual
destination. The wetlands also act as nutrient traps that callect fertilizers, topso�s, ails and tars,
vegetative debris and other materials carried off the land. These nonpaint soum.es of pollution
are very difficult to control by artificial means. When allowed to move into lakes, streams and
rivers, they can significantly damage water quality by causing silting, algae blooms, nuisance weeds
and reduction of oxygen levels.
In the Twin Cites Area, vast expanses of wetlands have been filled or drained for urban and
agricultural uses. Many natural drainageways have been diked, used xo accommodate sewer pipes,
or altered by structures that impede the flow of water. Flooding problems, excessive sewer � '�
infiltration, stream bank erosion and deteriorating water quality in Area lakes and streams can __
often be d'uectly attn'buted to the destruction of wetlands and drainageways. The management
practices necessary to handle these problems must use structural methods to reproduce natural
processes, and they are often extremely costly.
The greatest threats to wetlands and drainageways today are found in the rapidly urbanizing
communities and in the older urban areas where "backfill" is possble. In the newly urbanizing
areas, the builders want to develop land at thelowest cost, and local governmental units may have
� little planning experience. This combination can be quite harmful to wetlands and drainageways.
In areas with land that was passed aver in the initial rouad of urbanization, the potential 'backfill"
areas are often lands too wet to have been developed originally.
FROM RECREATION OPEN SPACE GUIDE CHAPTER, 1991
Policy 15
Lands ia a regional park, park reserve, trail or special recreation feature will not be �
converted to a use other than acceptable recreation open space.
'TExI'
The Council has long indicated it considers lands given over to outdoor recreation activities to be
in their highest and best permanent vse. To back up this belief, the Council requires reskrictive
covenants to be put on all lands acquired with regional funds. The covenants are to ensure that
nondiscriminatory regional open space use is continued in the future. Couversion to
nonrecreation uses should be ruled out unless there is a very strong guazantee that no lcus or `�
harm to the regional recreation open space system will occur now, or in the future.
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From WQ Study Group Discussian 7uly 23, 1993
Overall Goal Statement �n order to p
reseive the environmental integrity and economic vitality of
the Twin Cities Metroglitan Area, the Metrapali���unc�through the Meatropo� ��'
2p15 no adverse impact on water quality occurs p
itions aad programs on water quality issues, pntting
prindpal Objective:To e.stablish proactive pos' eada in dealing with them,w�e
the Council in the lead on these issues and able to set its �water quality.
at the same time working with all participants to achieve g
Strategy#1
_ as it cnters,but prcferrably
"Assure that water leaves the region with at least the same quafity
better"
I establish an environment in which all forms of water pollution.are agg�'ess�lY
purpose:To
reduced
,' . zehensive plans,NPDFS pernaits, environmental revi�ws,
Mechanisms:Watershed and local comp lementation Plan (Il'), technical
� sewer policy plaa as implemented through the MwCC�P
transfer and assistance
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Strategp#2 � t of daily life"
"Reduce the use of polluting materials in every P�
e: To dually eliminate the use of toxics, excessive nuuients and other pollutants in
Purpos g�
industry, commer�ial, househald and agricultural endeavors
:Pollutian revention programs, public education, NPDES �d MWCC industrial
Mechanisms P
Permits •
Strategy#3
the cost-effective reduction of noapoint source pollution with the same resolve that
"pursue So�Ce of�llution
eliminated point sources as the primarY
e:To visibl attack ihe 3azgest category of poIlution caus�nS w��F q�n'detereoration
purgos y rovem�nts `
while assuring that public dollars aze spent to achievc real water Quality imp
� environmental reviews, "Iaterim Nanpoint
Mechanisms: Watershed and locai compreheasive pla��' technical transfcr and assistance
Stratcg�',MRIP/LIvIl�TAG, NPDES urban runoff p� „
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REPORT
OF THE
METROPOLITAN COUNCIL'S
REDEVELOPMENT AND
REINVESTMENT ISSUE GROUP
OCTOBER 5, 1993 �
. n:uibrary�aocumenc
report.r&r
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nv�rRonuc�oN � sv�z�xY
To promote the health and vitality of the metropolitan area and its communities, the
Redevelopment and Reinvestment Issue Group believes that the region needs to reprioritize how
public resources aze spent in the region, bringing greater emphasis to redevelopment and
reinvestment.
Redeveloping and reinvesting in the older parts of our region is important to the heatth of the
entire region. Recent studies hg the National League of Cities and the Federal Reserve Bank of
Pluladelphia show that the economic futures of cities and suburbs are economically
interdependent, not independent of each other. The 1992 League of Cities study,using
employment growth as a measure, showed that the better center-city incomes were compazed to
those in their suburbs, the better the regional performance compared with other metro areas; the
worse the economic condition of center-city people, the worse the regional ,yob picture. Richard
Voithi, the`economist who conducted the Federal Reserve study, found that, with few exceptions,
the better the center ciry does, the better the suburbs do. "Even if the most acute problems
associated with decline do not arise in the suburbs,"he concludes, "central city decline is likely to
be a long-run, slow drain on the econoauc and social vitality of the region."
The region needs to ael�owledge that developing at or near the fringe of the region is not "free."
The cost of new development at the fringe has been viewed as acceptable and the public
investments to support such growth have been viewed as a normal c,ast of growth. On the other
hand, redevelopment has not been viewed in the same way;the costs associated with it are viewed
as a subsidy. We have been accustomed to compartmentalizing "development" and
"redevelopment." We've viewed one as not involving public investment, the otYier as requiring it.
Part of the reason the urban service area of the region has exganded is be�ause development is
easier at the fringe. It is easier than trying to expand a business in an older area. It also has
been less expensive. These factors have combined with a traditional American anti-urban bias
and preference for moving to new frontiers to place redevelopment at a disadvantage.
Development will take the path of least resistance. Regional policy needs to make it easier to
develop in older parts of the region. It needs to "level the playing field"so thax areas
experiencing disinvestment ha.ve the ability to successfully attract economic development, jobs and �
increased tax base. Regional government also must, to the extent it can, support ways to maintain
or increase the confidence of business owners and residents to locate in or remain in older azeas.
In addition, we must employ a holistic, regional approach to addressing problems associated with
concemrations of poverty—no single approach will be adequate or suecessful by itself. A holistic
approach involves improving the livability of neighborhoods and the quality of life of people Iiving
in poverty concentrations, but also gives them opportunities to live and work outside of these
areas.
Our cunent system of governance and property taxation is contradictory to viewing the region as
one community and economic unit. It creates inter-city competition for tax-base that can be
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detrimental to the best interests of the region as a whole, and can be viewed as an inefficient use
of public subsidies to attract and assist development. The equity and eff'iciency of our property tax
system needs to be questioned and examined. �
The policies and suggested action steps in this report include a variety of ways the Council would
be involved in redevelopment and reinvestment. The Council would act directly in some azeas
through current or expanded autharity in land use, transportation and housing. Other
recommendations call for the Council to be involved as a faciiitator to provide a forum for
bringing different parties together to discuss and work toward common goals. In other azeas
where the Council has been less active such as education, social services aud the criminal justice
system, the Council would initiate or support actions and efforts it believes important to a
regional redevelopment and reinvestrnent strategy.
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PRINCIPLES AND GOALS FOR REDEVELOPMENT
AND REINVESTM[ENT
Through discussion with numerous persons in the region involved in redevelopment—in meeting
conversations, focus groups, tours of the region—the Issue Group has concluded that the following
principles should guide policy development for redevelopment and reinvestment.
PRINCIPLES
1. Recognize that the region functions as one economy that transcends political boundaries
of cities, counties, school districts.Acknowledge and work with marketplace forces for the
benefit of the region as a whole.
2. Build on and preserve the strengths and assets of the older parts of the region.
3. Use and build upon successes as a foundation for redevelopment. Don't 'reinvent the
wheel' for every redevelopment challenge.
4. Acknowledge that change is inevitable and can be managed in a positive way for
neighborhoods and cities. Maintain what is viable but don't fix what's obsolete.
5. Emphasize new thinl�ng and fresh perspectives, to adapt to current realities and
opportunities. Slaughter 'sa�cows'if necessary. �
6. Promote collaboration, not confrontation among public, private and no�rofit sectors, so
that each sector can understand the other's needs and constraints.
7. Recognize that any strategy to strengthen and reinvest in the region's older areas to
achieve healthy communities must be holistic. This means addressing physical, economic
and social aspects in an integrative way,capitalizing on individual neighborhoods'/cities'
assets, and identifying their respective needs, objectives �and needed resources.
8. Recognize and address societai and political conditions--e.g. poverty, racism, economic
disparities, limited public resources, the barriers of golitical boundaries. Recognize that
these disparities can be products or adverse consequences of development and growth ��
patterns.
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Based on the above principles and on the belief that redevelopment and reinvestment needs to be
one of the region's strongest priorities, the Issue Group developed four goals:
GOALS FOR REDEVELOPMENT AND REIlVVESTM��ENT
1• Break the cycle of disinve.stment and create a climate for reinvestment,
"Level the playing field" so that areas�experiencing disinvestment have the ability to
successfully attract economic development, jobs and increased tax base. �
2. Facilitate rehabilitating, reusing or clearing obsolete or d�eriorated struchu�:s--
- commercial, industrial and residential—rebuilding infrastructure, and reclaiming
polluterl land. � .
Support and assist communities in creating better oppornuuties for redevelopment by
securing the tools, incentives and resources to remove bazriers to redevelopment.
3. Support and foster heaithy communities throughout the reg�ion.
Assist the efforts bf communities to avert decline and build on their strengths and
capabilities. Recognize that the region has all kinds of communities and neighborhoods,
but that healthy azeas are those in which residents feel safe and confident in the azea's
future as a viable place to live: �
4. Strengthen the region's older areas economically,environmentally and sociallp.
In areas where poverty concentrations aze greatest, use an approach that improves the
physical and societal conditions in neighborhoods, and addresses improving access to
opportunities throughout the region.
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DISCUSSION OF ISSUES AND POLICY RECOMTVIENDATIONS .
BA►RRIERS AND DISINCENTIVES TO REDEVELOPMENT
The Issue Group identified a number of barriers and disincentives to redevelopment and
reinvestment in the older, fully-developed portions of the region. With input from many of the
region's practitioners of redevelopment, and research by the Center for Urban and Regional
Affairs (CURA) at the Humphrey Institute, the Issue Group identified a significant number of
factors that impede efforts to attract and retain businesses and residents in the older areas of the
region (a later section discusses kceping and attracting residents in the older azeas). ' These
"barriers"to redevelopment aze: _
� Environmental Constraints -polluted sites requiring expensive clean=up and the baggage
of potential legal liabilities associated with the sites.Tlus factor is the most-frequently
mentioned detenent to reinvestment.
• Site Constraints and Costs -problems of functionally obsolete stru�tures, unavailability of
lazge sites, and the cost and complexity of assembling and clearing sites for
' �commercial/industrial development;
.
• Changing Marketplace Influences - increasing scale of ietail development; preference for
one-story, caznpus-like industrial development, declining unportance of the praximity of
business service providers; declining image value of central business districts, due to
growth of service economy and communications technologies.
• Marketplace Preferences - for lower density development, freeway accessibiliry,high-
amenity locations;
� Public Perceptions - declining confidence in the attractiveness, safery, schools and services
in older areas.
• Government Influences - lacal requirements and regulations, complexity of the
development approval process, and access to public subsidies far the development af raw
land
� • Political/Regional Factors - a property tax system that creates inter-city competition for
tax base growth, and politics that demand every commurury have access to the same
:' development tools. . �
Though not all of these barriers can be overcome by dollars,progress cari be made in removing :
many of them through a combination of prioritizing public resources for the support of
redevelopment and reinvestment, and a vigorous reexamination of the influence and impact of
government policy and oversight.
In Minnesota, as in most other states, a number of public financing tools exist that permit local
government to assist and attract commercial and industrial businesses to their community to create
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or preserve jobs, and build tax base. In addition, to assist low-and-moderate-income first-time
homeowners with below market rate'home loans, the Minnesota Housing Finance Agency
(MHFA) and local HRA's can issue revenue bonds to create capital to operate such programs.
Federal law restricts the total amount of such bonds for each state.
Since 1969, tax-increment financing (TI� has been used as a local government development tool.
Originally intended to assist redevelopment efforts, TIF legislation but broadenal over the years
to include housing, economic development, soil correction and hazardous waste cleanup. In 1989
there were 1�,025 TIF districts in Minnesota.; 48 percent were redevelopment districts, 38 percent
were economic development districts, and 11 percent were housing districts.
Since 1988,because of many concerns about the growing and extensive use of TIF by local
government, the Minnesota. legislature has placed significant restrictions on the use af TIF .
Some legislators and others feared that cities and special development authorities have
inappropriately used TIF as a development incentive, assisting development that didn't need
assistance or inducement to occur. There have also been concerns that cities were undertaking
excessive risk in constructing public improvements with no assurance that development would
follow. Questions of accountability and of the impact of T'IF districts on county, school and state
taxes have also been raised. .
Although it appears that many of the potential abuses of TIF occurred in its use for stimulating
new economic development, the legislature, in its desire to strengthen TIF's public purpose and
accountability, has made changes that make the program almost unusable for redevelopment.
The Council should support legislative efforts to redesign the TIF program and return it to its
original intended use emphasizing redevelopment and helping build housing for low-and
moderate-income households. TIF law should be changed to restrict use to redevelopment .in
azeas meeting certain conditions and criteria of decline and disinvestment, or for low and
moderate-income housing districts in areas without sufficient affordable housing options but
where there are employment opportunities and job growth.
In addition, ways should also be explored to further expand the use of TIF to finance cleanup of
contanunated redevelopment sites. There aze hundreds of such sites in the region, most of which
are in the central cities and first ring suburbs, and that cannot qualify for Superfund cleanup.
They lay uncorrected—sometimes undeveloped, sometimes with�existing or abandoned industrial
uses-because there isn't enough money to clean them up. There abandonment and t� forfeiture
make them a public issue, and a significant obstacle to the redevelopment efforts of these older
communities. But their cleanup will require public resources:
The targeting of public resources to meet housing needs must also be reaffirmed and
strengthened. Each year Minnesota is pemutted by federal law,bas� on the state's population,
to issue $217 million in revenue bonds: Currently, about $87 million of that total is issued to
provide funds for home mortgage and rental housing production prograrns administered by
MHFA, local HRAs or other authorized entities Iike the Minneagolis-St.Pau1 Housing Fund.
The Council should support legislative efforts that would restrict homeownership prograrns using
this source of funding to only those areas experiencing certain conditions of disinvestment or
other criteria indicating a priority need to support homeownership. This publicly-financed
homeownership tool should be restricted to the public purpose of reinvestment, and not to
facilitate more growth in developing communities.
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POLICY 1. The Council will support the targeting of public financial resources for
redevelopment and reinvestment, and will develop a set of criteria or conditions that indicaxe
areas most appropriate for the targeting of pu6lic finanrial resonrces.
ACTION STEPS
In the short-term, the Council will:
a. Support a redesign of tax-increment financing that makes it stronger and more focused as a
tool for redevelopment` and reinvestment.
1. Tazget use of TIF to azeas with certain conditions or meeting certain criteria. For
example, for redevelopment, criteria might include condirions of property abandonment
and blight, declining market value, sites with pollution, presence of poverty concentrations,
: poor liousing conditions, or others. For housing districts,the conditions might include high
median housing costs, absence of affordable housing options, and a supply of lower skilled
or unskilled employment in the community.
2. Loosen restrictions that ha.ve made TIF ineffective for redevelopment activiries, tighten
the duration limits of TIF districts, and return its focus to redevelopment, not general
economic development.
b. Support the provision of more effective tools for redeveloping polluted sites such as-
1. Crenerating more dollars �or clean-up of polluted site.s by broadening the ability to use
TIF for cleanup. '
2. Creation of a regional indemnification mechanism for potential site cleanup liabilities
of redevelopment sites to lessen private inve�tor risk and current disincenrives.
3. Supporting changes in federal and state laws to create different thresholds for defining
"clean"sites, based on their intended future use as identified in local comprehensive plans.
c. Support a strengthened targeting of federal and state-financed or -authorized homeownership
, and housing rehabilitation programs, and federal tax credits to areas of ne.ed as defined by
conditions or criteria. �
1. Limit use of state mortgage revenue bond authority for homeownership programs to
areas meeting a set of conditions or criteria that indicate a priority need to support
homeownership.
2. Target all MHFA and federal housing rehabilitation programs to the extent possible, to
'the areas meeting the same or similar conditions as in c.l above.
d. Support an urban enterprise or "opportunity" zone program for areas in the region�meeting
certain criteria or conditions of disinvestment, that encourages new investment and the hiring of
residents in economically distressed azeas through the provision of tax incentives.
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In the long-term, the Council will:
a. Explore the creation of a regional reinvestment fund that would pool existing public dollars for
infrastructure and give priority in their use to support redevelopmenf and reinvestment. In
addition, use regional bonding authority to supplement or create a revolving reinvestment fund.
b. Examine ways to change the state property tax system,using fiscal disparities as a model, to
create greater equity for local governments bearing greater cost burdens because of disparate
service and infrastructure maintenance needs. For example, explore a two-rate property tax system
that taxes land and improvements at different rates, in order to avoid disincentives for improving
property that e�cist in the current system. Or, create a uniform tax rate for the entire region.
c. Examine ways in which cities with lazge amounts of tax-exempt property which benefits the
entire region, such as cultural or educational facilities, may�be compensatefl. For example,
requiring tax-exempt properties to pay fees for city services, or by providing rebates to affected
local govertunents.
TI� ROLE OF REGIONAL INVESTMENT IN REDEVELOPMENT
The region has a multi-billion dollar investment in public infrastructure in place, This
infrastructure is in various degrees of repair and need for upgrading and maintenance.
Our region's highway system comprises 657 miles of roadway. We have 11 wastewater treatment
plants, and 519 miles of sewer interceptors. Our transit commission owns 1000 buses, operates
160 park and ride facilities, and by the late 1990s will have put in place 19 transit hubs to improve
accessibiliry to a wide portion of the region's urbanized azea.. We ha.ve multi-million dollaz
regionai parks and airport facilities that require further capital expenditures.
Despite these impressive numbers that indicate an excellent level of public service and.
infrastructure for our residents, our highways remain heavily congesterl at rush hour and could
always benefit by more dollars for upgrading. Many of our bridges and sewers are in need of
repair and replacement. We may never have enough dollazs to complete our regional park
system, and whether we build a new international airport or expand at MSP, the price tag will lie
enormous.
Nationally, the upgrading and maintenance of our nation's infrastructure will cost billions of
dollazs. Obviously, not all of these dollars can be raised locally;but the federal government has
been on a course of reducing its contributions for maintenance of this infrastructure for over a
decade. The days of the federal largesse are over.
For,example, the federal government will no longer provide funding for wastewater treatment
facilities. The federal government once contributed 90 percent of the cost of such facilities, but it
now contributes nothing. Funding to replace the transit system's buses is static and shrinking
compazed to the growing need. Recent ISTEA legislation has authorized the expenditure of
millions for transportation, but Congress has only approved funding at 80 percent of ',
authorization.
All of these indicators point to the reality that there will be fewer dollars available to improve and
maintain our existing infrastructure, not to mention less funding for expanding the systems. They
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signal a clear need to give greater priority to using the capaciry already in place in the most
efficient and effecrive way. We must give priarity in our regional expenditures to maintaining
what we already have and resist spending these limited dollars to expand the infrastructure system.
This new funding reality calls for priority for reinvestment in the already-built areas of the region,
where infrastructure is in place, where public buildings,pazks, libraries and schools have already
been built. �
The issue of pricing mechanisms for our infrastrueture goes hand-in-hand with giving priority to
supporting investment in the existing systems over expansion. C�urently, transportaxion, transit
and sewer systems aze all financ.ed differently. The regional highways system is financed primarily
out of the state trunk highway fund, which includes state motor fuel taxes, motor vehicle
registration fees and federal highway aid. To the extent that state and federal motar fuel taxes
approximate the cost of a vehicle's wear and tear on regional highways,highway users pay. Motor
vehicle registration fees, which comprise approximately one-fourth of the revenues in the state
trunk highway fund, are not directly related to vehicle miles traveled and the cost of using the
regional highway system.
The regional transit system is financed by fazebox revenues, �tate and federat transit subsidies and
regional property tax revenues. Farebox revenucs cover approximately on�-third of fhe cost of '
regulaz route service and smaller percentages of other types of transit service. State taxpayers
and regional properry tax owners pay approximately twathird of the operating costs of the system
and 100 percent of the capital costs of the system. .
The regional sewer system is financed by sewer service c�arges that reflect the average cost of .
collecting and treatment wastewater. Charges are uniform throughout the`sewer service azea and
aze based on wastewater flows from communities. Industrial dischargers pay industrial strength
charges in addition to regular sewer service charges that reflect the additional cost of treatment
the wastewater generated by the industrial operation.
Down the road, the region should examine ways to price regional systems so that those that
benefit from infrastructure expansions that increase the cost of�the system,pay a greater share of.
the cost for this service. Should sewer service to a subdivision at the urban fringe cost these
� homeowners the same as the service to residents in the fully developed area? These and other
pricing questions wanant fiirther study if we aze to price public services so they support
reinvestment in the "built"portions of our region.
Finally,preliminary analysis of land supply and demand in the current metropolitan urban service
area (MUSA) finds an adequate supply of developable land in all azeas of the region through
2010. Only for 2020 do current projections indicate the possibility that land supply in the
northwest part of the region may not be adequate for forecasted growth.
An adequate supply of land to serve forecasted growth coupled with the need to focus limited
public resources to maintaining our cunent systems and not expanding them, create a strong
azgument for giving redevelopment and inf'ili prExedence in public infrastrucxure investment -
decisions.
A strong MUSA expansion golicy,coupled with disincentives for exurban growth beyond the
seven-county region, will symbolize a commitment to reinvestment and influence growth towazd
those parts of the region that already have urban services. Over the long term, the Council should
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also explore and redesign the pricing systems for regional infrastructure to promote reinvestment
and infill growth and a more equitable distribution of the systems costs.
POLICY 2.The Couneil will,thraugh its regional policy and its oversight of regional systems,
balance expansion of urban infrastructure invesfaments with reinveshnent needs.
ACTION STEPS
In the short-term, the Cvuncil will:
a. Support and give priority to reinvestment for maintenance and replacement of inetropolitan
systems serving existing development in azeas meeting certain conditions or criteria. Give lower
priority�for investment expanding service elsewhere in the urban service,azea or for expanding the
urban service area itself.
b. Adopt regional policy halting further expansion of the MITSA or extension of the MUSA
boundary with few exceptions for reasons of regional significance. ,
In the long-term, the Council will:
a. Implement a pricing system that supports reinvestment by shifting the cost of regional and
local infrastructure to its direct beneficiaries. For example, evaluaxe or consider the implications
of using parking fees and congestion pricing rnethods for the transportation system,or adopting
different sewer rate charges for new development in developing areas than for those in fully-
developed communities. �
ISSUES IN IlVIPLEMENTING REDEVELOPMENT
Some of the information gathered by the Issue Group focused on several areas relating to getting
redevelogment projects built.
Sometimes, the Issue Group was xold in its July focus groups, developers have not been interested
in doing projects in older cities because they do not know what�is expected or wanted in the city,
nor does the city have specific ideas for what it wants or what would work best for the city and be
desirable and acceptable to affected residents. But, we were also told, once the parameters are
known, developers are interested. It can be, for developers, largely a matter of reducing the
unknowns.
There are good examples of redevelopment projects in the region that others could learn fram
and replicate elements of in other areas. For example, the Phalen Canidor Redevelopment
Proposal, completed in February 1993, was developed by the City of St.Paul and the St. Paul
district councils, with the assistance of the University of.Minnesota College of Arclutecture. The
proposal's goal is to transform the Phalen area at the heart of St. Paul's east side into a safe,
stable and attractive community through the followin,� steps:
� Developing opportunities for business expansion, broadening the use of the local_labor
force, and recasting commercial services to best meet local needs
• Upgrading street and transit access .
• Maintaining and improving the condition of the existing housing stock
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• Reclaiming wetlands and creating open spaces
• Completing the regional trail system to the new Phalen Village and Phalen area
neighborhoods
• Removing blighting land uses �
• Coordinating a series of prograzns for individuals and families to assist them during'a
transition to self-sufficiency.
Another example is a master plan prepazed by the city of Robbinsdale for redevelopment and
revitalization of the city's downtown. The city first documented existing conditions, groblems and
oppornmities, and then developed alternatives for redevelopment which were presented to the
public. Once a redevelopment alternative was selected, schernatic plans and cost estimates were
developed, and detailed designs were prepar�.
Sharing infomiation about examples such as the Phalen area and Robbinsdale projects with other
cities in the region could help them know about options, learn from them, and adapt them to
their own needs.
Older cities often are in the position of needing to ada.pt to a changing market. Assistance .to
cities to help them seek new niches, identify their strengths and build on them would help make
redevelopment projects successful.
The Issue Group was also told that there are instances where local approvals and regulations can
slow or even stop a reflevelopment effort, Public and private actors sometimes don't understand
each other needs. Public s�tor actors need to understand that profit is not a "dirty word." On
the other hand. the private sector needs to recognize that some public process is necessary and :
' important in a redevelopment project. The city and its residents have the right to understand and
scrutinize develapment that will affect them (however, they should not have the right to veto
proposals). Getting both sides together in ways that help them "walk in each others' shoes" can be
very helpfuL
The Issue Group concluded that the Council could play a role in helping ta facilitate
redevelopment that fits in the context of a regional economic picture, builds on successes and
manages change in a positive way. The Council should helg facilitate ways for local governments
to share information and expertise, test ideas, and bring parties together to discuss issues and
work toward common goals.
POLICY 3.The Council will assist communities iu identifying and ca�riying out redevelopment
plans and options consis#ent with community goals and marketplace realities.
ACTION STEPS
In the shon-term, the Council wi1l: _
a, Identify adaptable models and make technical assistance available to implement them,
especially to small cities with lunited resources to carry out redevelopment. Models could addres$
planning for re-use and ada.ptadon of struetures, redesigning older commercial areas to better
r�sporni to economic trends and residents' needs, or redeveloping an area for combined
commercial and residential uses. Models could include LRT.
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b. Promote and facilitate inforrnation-shazing among communities about successful redevelopment
models and methods. For eacarnple, collect and distribute information, and hold forums; facilitate
ways to help city staff share information and expertise about planning methods and
redevelopment models. .
c. Create a task force of local officials in both planning and zoning implementatian and
redevelopment, and developers, to review and assess the impact of development regularions on
' redevelopment efforts. Charge the task force with making recominendations or developing a
model prQcess to improve local redevelopment procedures and practices.
d. Seek to implement demonstrations of small-scale, adaptable models to illustrate their merits,
and fiurther identify strengths, wealrnesses of redevelopment options. Funding for demonstrations
could come from foundations or ISTEA funds.
In the long-term, the Council will:
a. Promote a climate of cooperation and collaboration whereby public, private and nonprofit
actors work toward common goals supporting redevelopment.
1. Initiate a regional forum for and involving local community leaders that would meet
regularly to discuss mutual goals and objectives, and ways to collabarate to aclueve them. �
2. Encourage local governments engaged in redevelopment to identify regulations and
pracedures that impede or slow redevelopment and take action to streannline their
procedures. Encourage them to adopt the recommendations or models develvped by the
task force discussed in Policy 3 c.above.
3. Work in partnership with local governments on ways to facilitate business expansions
and land assembly for redevelopment. �
KEEPING AND ATTRACTINGRESIDENTS TO THE REGION'S OLDER AREAS
Older areas that keep and attract new residents offer housing stock in good candition; parks,
playgrounds, shopping and other services; and the basic zequirements of confidence and perceived
safety.
Older housing needs regular attention to maintenance in arder to maintain residents' co�dence
in the neighborhood. Close to half (45 percent) of the region's housing stock is over 30 years old,
with a substantial proportion of these units having been built before 1940_ The vast majority of
this older housing is located in Minneapolis, St. Paul and first-ring older cities. Housing in a state
of disrepair is a major contributor to neighborhood deterioration and loss of a municipality's tax
base. A 1992 Couneil staff survey of housing conditions found that 68 of 117 cities responding had
housing in need of major repai�r or rehabilitation.
An obsta.cle to main a;ning rental housing in good conditio� is v�y lugh real.estate taxes on
rental property. Property taxes are the highest operating cost for rental property in fiie Tw�r:a_
Cities and in Minnesota, representing an average of 20 percent of rental housing operating
expenses, far higher than in most other U.S.cities. For example, data from the International Real
Estate Management Association (IRElVn for 1991 shows that Minneapolis/St. Paul area ranked
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first among 23 cities, at $1.72 per square faot, for elevator buildings,followed by Chicago at $1.51.
The median was $.75.For garden-type apartment buildings, Minneapolis/St. Paul ranked second of
137 cities at $1.27 per square foot. Perth Amboy,�N.J.ranked first at $1.29,and the median was
$.55.For two other types of buildings, the findings are similar. �
Rental property is taxed at higher rates than homesteaded property in Minnesota. Taking into
account the rent credit available to renters, renters still pay three times as much property tax as
many homeowners.
The choice for iridividuals and families to liv�in newer suburban azeas rather than in older azeas
of the region can result from a mixture of realiry and perception.
The most common reason for moving is house-related. Changes in the life cycle—marriage,
divorce, the birth of children, retirement-result in changing housing needs. Often the choice is
made in favor of newer housing with up-to-date features such as walk-in-closets and extra
bathrooms. This choice favors suburban locations, where more newer housing with these features
is available. "Moving up" to larger, newer housing often means "moving out" as well-from central
city or older suburb to the suburban fringe. This factor, combined with a cult�ual preference for
nual-type living on large lots (for those who have a choice), has fueled strong subwrban growth in
our region and in most other U.S.metro areas.
On the other hand, many older areas of the region have much to offer as well-parks, lakes,
azchitecturally interesting housing, good transit and freeway access. However, the perception of
the older azeas as a good place to live ar invest in is generally not as high as for newer suburban •
areas. As the region has experieneed grawing "big-ciry"urban problems, homeowners may feel .
that their neighb4rhood will deteriorate, and that their home will not retain its value. Or they may
feel their personal safety threatened. -
Although crime rates have increased very little in the region over the last decade, the perception
of crime has increased beyond the reality. The overall crime rate increased from 10.4 percent of
papulation in 1985 to 11.4 in 1990. The population growth has exceeded the growth in crime.
And the serious crime rate has actually declined in most years since 1985.However, the perception
of crime has increased in the minds of residents of the region to become the number one
concern. In a 1992 survey of Twin Cities azea residents conducted by the Minnesota Center for
Survey Research, crime was identified hy more people, 41 percent of respondents, as the single
most important problem facing the region.
People will act on these perceptions in choosing where they live.And although the relationship
between crime rates in the central cities and suburbs has not chang� appreciably since 1985,the
perception is that it has. Community-based policing and neighborhood crime watch programs are
examples of local efforts that ue making a positive difference in addressing crime. Support for
and continuation of these efforts can strengthen older neighborhoods.
Another important factor in where people chaose to live,for pazents of school-age children, is
the quality (or perceivecl quality) of schools their children will atte�d: Perceptions' of the quality
of schools in Minneapolis and St. Paul are often negative. In addition, pazents are often reluctant
to have their children buseci to other parts of the city to attend school with children they do not
know, or whose parents they do nat know, in neighborhoods they do not know. So they opt to
move to suburbs where their children can attend school closer to home. The Council should
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participate in the growing debate about a retum to neighborhood-based schools, and stress their
importance in keeping residents in the cities, and to the long-term stability of neighborhoods.
POLICY 4. The Council will support ways to prnmote the physical vitality and appeal of
neighborhoods in all communities, and their residents' confidence in them as gaod places to
live.
ACTION STEPS
in the short-term, the Council will: .
a. Seek to add a provision in the Metropolitan Land Flanning Act (MPLA) to require local
governments to adopt a building maintenance code and a program of vigorous enforcement as
part of the implementation section of their comprehensive glans. In addition, encourage local
governments to explore ways to share staff and resources in the development and enforcement of
such codes.
b. Seek changes in state property tax law to remove disincentives far making improvements to
rental properties. For example, though 1993 legislation allows deferment of real �state tax
increases on homesteaded properties that have been improved, resulting in higher market values,
no similar incentives were legislated for rental property.
c. Seek to add a provision in the MPLA to require communities to include a neighborhood-level
planning element in their comprehensive plans to be prepared with the involvement of
neighborhood residents. The objectives of the neighborhood plan should be to preserve its assets
and amenicies, and ensure the proximity of parks, shopping and services, and other desirable
features. _
In the long-term, the Council will:
a. Examine and consider programs or activities that help preserve residents' investment in their
homes. For example, explore programs that help preserve stability in home values, such as the
Equity Assistance Program. �The Council could provide information and technical assistance on
programs such as the Equity Assurance Program used in Oak Pazk, Illinois. It protects home
investment through reimbursement to owners if upon sale, a home sells for less than it's appraised
value when it was purchased. Cities could undertake such programs on their own, or the Council
could make a regional program available for cities that might wish to participate.
b. Take a leadership role in heightening the level of regional discussion and debate about
recreating neighborhood schools and recognizing their importance to neighborhood stability and
confidence:
c. Stu@y and recommend ways to lower properry tax rates for rental property to lessen the wide
disparity in the property tax burden between rental and homesteaded properties.
d. Through regional policy, continue to encourage demographic and housing diversity in all
neighborhoods to promote their long-term stability. Encourage retention of existing affardable
housing stock and creaxion of additional housing to meet a wide range of nceds.
14
�
erer� �c �-h�
. �- � � r��
.�.� °��-.�' ��S � �CI1 Gt.n I S iYl � ATTA��r�T �
c�S a- �
�u e r TEGIEs
WATER UALTIZ'
�' From WQ Study Cnoup
Discussian 7uly 23, 1993
nmental inteSnt�' aad ecoaomic vitality of
reserve the enviro that b the y�
Overall C�ai Statement�in order�e Metropolitan Coua���ugh��etropolitan Area.
the Twin Cities Metroplitan Area, �� ��te p
2015 no adverse impact on water quality u� ySsuex,Pulu�e
on�� q �'
roactive positions and program� with them,w
e.To establish p a enda in.dealing
p�indpal Obje�' ' �water quality
the Council in the lead on these iss�P��ltotachieve�
at the same time working v�th all P
- ; as it enters,but preferrably
S��#1 water leaves the region with at least the same qu�tY
Assure that
better" of water pollution.are agg�'�ely
Purpos
e:To establish an eavironment in which all forn�s
reduced D�permits, enviranmental revi�
. rehensive plans,NP technica�
M�h��;Watershed and local comp C��plementation Plan (IP),
• S�r Poli�y plan as implemented through the N1W
transfer and assistance
ik;!. . � _ . . . . . . .
�s ect of daily life"
StrategY�'2 olluting materials in every P
"Reduce the use of p ollutants in
excessive nuuients and other p
purpose:To gradually elimin o d nd agricult��eadeavors
industry, cAm�ercial,househ CC industriai
. ention programs, Public education,NPDES �d M�
Mechanisms=Pollutian prev
Pe'rmuts '
Strateg,Y
#3 int source po��tioa with the same resolve that
"Pursue the cost-effective reduction of Source of�llution"
eliminated point sources as the p�aTY detereoration
of llution causing water q�tY
est category P° �,ter quality imP�°vements
purpase:To visibly attack ihe larg t to achieve real
while assuring that Public dollars are spen �vironmental reviews� "I�tenm Nanpoiat
' compreheasive plans,,� technical transfer and assistance
Mechanisms:Watershed and 1 D��ban runoff Perml �
Mglp/I,MRTAG��
Suategj�', _ .
� �
� �
�
S��Y#4
'Develop with as little impact on the
d�'aiaage features (wetlands, fl� �n�ironment as possi'ble, wh�1e maia
to operate" P�ns, drainageways, etc.)so that their functions �tural
� can continue
Purpose: To assure that the enviro
quality and quanti nmental integrity of the negion remains inta
activit�es rY functions contiaue to provide the best mitigation for our c�rban and rurdir .
Mechanisms: Coaiprehensive plans, environmental revi .
�s, Metropolitan Blueprmt
Strategy#S �
"Defue and Iive within t�e sustainable ca abili
surface water) and cooperate with aII P ty of the regional water supply (�'ound water and
affected parties to achieve this•
Purpose: To minimiz� any adverse impact to the water su 1
�aPProPriate or wasteful use PP Y�tem caused by
overvse, or
Mechanisms: Water suPP1Y Pjan reviews
Defense Network, Metro '�� aPProPriation permit reviews
Po��n Blueprint, comPuter model of regional ground�wate P�t mer
Strategy #6 �
"Correct past surface and ground water pollutioa problems"
Pu.rpose: To eliminate conditions under which pollutants released ' ���
water quaIity m the past-coatinue to hann
M��a��: �D� Pe��, MWCC IP,federaI and stat
e grants
Strate�p #7 .
'Document the changes ia water quality ia our receiving waters, and res
the impact" earch methods to mitigate
Purpose: To track our progr�� or lack of it, toward achi °
documenting me�o� ay��able to off-set the damage inhe���ter quaiity ob'ectn►
J es, as weIl as
. in an urban area
Mechanisms: Counal's lake monitorin
Iocal monitoring pr��'ams,research g pro�'�' MWCC/NlpC�/(TSGS river monitoring p o
��s, public �acation/technical transfer r ��'
Strategy#8 >
"Promote equ��ble means of finaaciag yvater quality im rove
P meat and maintenance acti�•ites�
Purpose: To fairIy impose the cost� of cl
equitable balance betweea those causing the p�obleni a����e water qua�ity, Seeki�g �
Mechanisms: NPDFS nefittmg from irs improvement
federal and state Pe��'�II'� `�'atershed and Iocal com reheasive
grant and cost-sharing programs P P�, MWCC Ip,
�O
. � �
� StI'8t��'9 W3tCI 11311 iObISIDS�
"Participate in inter.goveznmental efforts to address q tY P
p : To work with all affected governmental units in a joint effort to resolwe water quality
urP°se
prablems .
anisms; MgTplLMRTAG, inter-agency agreements, technical transfer and assistance,work
Mech
group participation
S�t�#1� w
*Establish a means to coordinate the water management process in the Metropolitan.Area
purpose:To take the first step toward serving
as the coordinator for the Iarge and complex water
mana ement structure in place within the region by clarifying the structure aad recommeadiag .
�
how it can be made less ominous and more effective
Mechanisms: Staff paper on tt►e problem and initial°checklist" of st�ps pre P��n r�views r�
through in permitting process, inter-agency work groups, environmental/ gu1a rY
�
�
7
..
,p'� , �
METROPOLTTAN COUNCII.
Mears Park Centre, 230 East Fifth Street, S� Paul, Minnesota 55101
b12 291-6359 TDD 612 291-0904
' DATE: October 1, 1993
TO: Committee of the Whole
FROM: Blueprint Staff(F.d Mazanda, Jan Gustafson, Bob Mazanec)
SUBJECT: Review of Commitments and Position Statements from the Metropolitan .
Development and Investment Framework (IvIDIF� of 1986
BACKGROUND
The list that follows represents the planning and development commitments and position
statements found in the current NIDIF adopted in 1986 along with more recently revised rural
area materiaLs. The list was comp�ed after a careful reading of the text in the Goals, Planninp�
and Investment Strategy and Geographic Policy Area sections. Since the entire 1vIDIF was
. adopted by the Cauncil, a commitment or pc�sition statement found in the supportive text has
been given the same weight as the bold print policies.
Statements in the current NIDIF aze viewed as commitments if they indicate that the Councit w�l
take some direct actiaa In same instances, ihe actual:ianguage from the NIDIF is used in this
paper,but in most cases, thc often numerous references to a particulaz subject have been
consolidated and restated,hopefully in a manner that covers the essence of the comautment or
position. The.commitments and position statements that follow deal with Councl phil�ophy and
� established directions. They do not go into details of implementation. The latter is unportaat,
and the Council has made mauy commitments as to how it w�l measure, evaluate and otherwise
handle such things as plan reviews or requests for MUSA extensions. This material will have to
be cansidered under the implementadon part of the document if the relevant parent c;ammitmeats
and position statements survive review and scrutiny.
Since the Blueprint will l�ely be adogted as the complete replacement for the 1986 MDIF, it is
essential that all commitments and p�sition statements from the existing document either be
included in the Blueprint in some fashion or be dropped following a deh'berative Counc� review
process. To facilitate diseussion of the list, staff has mazked each item with one of two symbols:
a "✓" indicates that a particular statement has been discussed as part of the
del�berations of the issue groups and/or Committee of the Whale and w71 be
either retained, revised or deleted to reflect the curtent Council's decision.
an"*" indicates that a particulaz statement has not been discussed to date and will require
spec'if'ic Council dehberation and decision regarding inclusion/exclusion from the draft
Blueprinx.
RECOb��1ENDATION
The Blueprint staff recommends that Counc�7 members review the attached list as preparadon for
� discussioas regazding the ineorporation af existing Counc� policies into the nevv Blueprint.
�
s�+�► ,
The Urban Servfce Area: Development
� 1. The Metropolitan Area is to be divided into an urban se:vicc area and a rural service
azea,with urban development made only within the urban service area. (Background note:
this position in the 198b docu»sent is reaffirmed from the original 1975 Development
Framework Plan, with little discussion as to why it was originally adopted in 1975. The 1975
Development Plare indicates that the»tajor rationale for going to an urban service area and
a rural service area ar� 1) to save money invested in meiropoliian facilities by having a more
compact area and greater usage of the facilities once they are built; and 2) to be able to
ta�get and coordinate muttifun,ctional regional investments in tim�place and amourtr by •
identzfyireg the areas designated for future development ahead of the fact Perhaps this
rationale should be resurfaced and discussed with Council members prior to making a
decision to reaf j�"um the concept of an urban and rurul service area.
✓ 2. Urban expansions should be planned, staged and generally condguous to e�sting urban
development _
� 3. Urban develogment should occur fust in locations provided with the greatest combined
complement of underuh'lized metropolitan and local public fac�ities and services. Local
governments and developers are the most appropriate agents to direct development into
the locations that have excess local and regional capacities.
� 4. Special fac�ities (defined as large, often oae-of-a-land,with a special function,facus and
specific users) that could have substantial impacts on the Metropolitan Area are a�major
interest to the Counc� and w�l be subject to Couac�review and comment
^� S. Freestanding growth ceaters are detached portions af the metropolitan urban service area
� They aze distinct from communities within the central seivice area,primarily by having
some rural land separating them from the large service area and by having, statistically, a
large enough job supply to provide employment for their inhabitants. New freastanding
growth centers will be designated by the Council from rural centers when the rural center
meets the criteria for freestanding growth centers (see the NIDIF appendix).
� 6. The fully developed area is the backbone of the Metropolitan Area. It must be protected,
maintained and upgraded on a continuous basis. High priority is put on ereative
publiciprivate cooperation to improve this area.
.� 7. The two metro centers, i.e.,the downtown districts of Minneapolis and St. Paul, should be
maintained as viable areas with wide azrays of commercial, institutional, cultural, and
entertainment facilities, and high-dcnsiry housing. The metro centers' strong assets are
� centraliry, access, high service levels and high densities. :
� & Regional business concentrations should continue to grow and to have increased
development densides, particulariy those in locations where e�sting metro fac�ities can
readily support more development Redevelopment of these areas may require pooling of
public and private resources. Local units of government should take the lead role in
determining the future needs of regional business concentratioas.
N� 1
r. ,w,.r
The Urban Service Area: Investments
/ 1. The Cauncil's forecasts of employment, households, and population will be the initial basis
V for assuming financial risks and meeting infrastructure demands, but other development
assumptions and the projected life of an imrestment will also affect the size of regional
facilities that are bu�� The forecasts are not goals. Forecasts for the dec►eloped parts of
the area should be viewed as the lower limiLs with more development acceptable.
Forecasts for the developing fringe areas and the freestanding growth centers may be
exceeded if regional systems can be provided to support the additional growth.
� 2. Metropolitan facilities and services will be made available to land in the metropolitan
urban setvice azea at the time, place and size appropriate to support foreeast growth and
to implement consistent local compreheasive plans. Metropolitan systems included under
this commitment aze sanitary sewers, pazks and open spaces, transit, highways and airports.
�c.. 3. All regional im►estment considerations apply to the freestanding growth centers as well as
to the central urban area. Expansions of urban uses beyond the existing development
limits of the freestanding growth centers should be>staged, contiguous, tied to the
provision of municipal services and located on land that is within the center's corporate
limits.
� 4. The number one priority for investment in metropolitan facilities goes to maintaining,
upgrading and expanding plant and equipment that serves e�risting development in the
metropolitan urban service area. The expansion and upgrading will c�ccur only if earisting
fac�ities aze being fully ut�ized and there is an agreement between the metropolitan
agencies and the local host governments to cooperate in insuring the long and useful
service life for the investments. Protection of service quality to existing developments is
more important than opening�new land for urban uses.
� S. Metropolitan imiestments intended primarily to suppart economic expansion, both planned
and unanticipated have higher prioriry status than investments to support residential
expansion. .
� 6. Regional investments that will primariiy benefit the Minneapolis and St Paul central
business districts and the other major concentrations of economic activity have special
priority.
� 7. Re,gional services will be extended to the Mdewakantan Sioux community either through
direct involvement with the communiry or through representation from the City of Prior
Lake.
The Rnral Service Area: Development
✓ L There should be no extensive urban-type development in the rural seivice area. This can
. lead to premature expansion of regional and local services and adversely affect the full use
of public infrastructure investments made�within the metropolitan urban service area.
2. Agriculture is the preferred long-term use for most land ia the rural service area. Local
IS+$e��-eriCC governments in the nual service area should support this position by zoning agricultural
lands at a very low density, such as no greater than one residence per 40 acres.
1 $ Q �
a'`d 5 en-�-ence� Z
i s a� '�
�►''; �
.�� 3. Where the land is not suitable for agriculture due to such things as hills, poor soils,
wooded areas, etc.,very low density residential development, ie., not more than one
residence per 10 acres of land is acceptable. � �
�3 4. L,ocal units of government are responsble for defining agricultural lands and for
designating those areas that should be certified for inclusion within the Agricultural
Preserves Act. The Council will support local governments by using its authority to keep
urban serving facilities out of lands designated for agricultural preserves status.
�,{G S. Loca1 governments are encouraged to plan for rural-to-urban transition areas and to limit
�� lan$uses in these transition azeas to uses that w�l be compat�'ble with the extension of
urban services whea the areas become part of the metropolitan urban service area. This is
probably best done by restricting develapments to very low density residential, ie., one
residence per 40 acres, or to agriculture.
The Rnral Service Area: investments
� 1. No metropolitan systems investments will be made to serve residential d�lopments
within the rural service area.
� 2. . Im►e.stments in some facilities that pravide servioes to urban residents may have to be
made at sites within the rural service area because this is the best or only suitable location.
Examples are regional parks and park reserves,which are resource based; IandfilLs and
airports that require large acreages af nonurbanized land; and highways or sewer lines
which because of their Iinear nature may have to traverse rural areas.
`` � 3. Rural centers can continue to grow provided they aze capable a€financing and
. administering expanded facilities and services without receiving a�►regional-level
� investments. F.xpansions should be staged and contiguous.
�� 3
ADDRESSING POVERTY CONCENTRATIONS
Poverty in the Twin Cities region, as in other U.S.metro areas, is concentrated in the older parts
of the region. Minneapolis and St. Paul, which have 28 percent of the region's population, aze
home to 60 percent of the region's poor. The core area of Minneapolis and St. Paul (a central
area surrounding the downtowns with the highest poverty rates), had only 14 percent of the
region's population in 1990 but almost half (48 percent) of its poor peaple. (Federal poverty
thresholds for 1989,on which these figures were based, were $$.076 annually for a faznily of two;
$9,885 for three; $12,674 for a family of four; $14,990 for five; and $16,921 for a faznily of six).
The region's poverty rate, though lower than the national average, rose faster from 1979 to 1989
than the national rate.
Poverty has been persistent aud growing in the core area. In 20 census tracts at the center of the
core, poverty rates (the percent of people in that azea in poverty) have exceeded 25 percent since
1969 or earlier (according to the 1990 census). In those tracts, the poverty rate grew from 32
percent in 1969 to 40 percent in 1979,and to 49 percent in 1989.
Poverty has also been sprea+ding to census tracts sunounding the core tracts. The spread of ,
poverty accelerateci sharply in the 1980s.Thirty-eight more tracts in the core reached the 25
percent level. This doubled the poverty both in popula�ion and area involved. In these tracts,' less
than one in five peogle lived in poverty in 1979. In 19$9,it increased to nearly one in three.
The more severe the level of poverty, the more it is concentrated in the core. Concentrated
poverty has been found to be associated with higher levels of unemployment, esgecially among ,
males, higher school drop-out rates, high dependence on welfare and other public assistance, and
higher crime rates. Results and implieations of these conditions include loss of economic
productiviry, increased costs for public assistance, health care, and safety/security, and a decreasing
ability of traditional public schools to effectively educate children.
Because of these complex issues, addressing the physical infrastructure (as addressed in Policies
One through Four) wi�hout acknowl�ging other conditions existing in the lives of people living
there will not be sufficient to make a real difference. �
In addressing ways to deal with poverty concentrations, two approaches are usually mentioned.
The first is improving conditions within azeas of poverty concentration. This involves a holistic
approach of attention to improved housing conditions, adding stores, services and community
centers in the neighborhood, and jobs. A second approach focuses on providing housing in
suburban Iocations, in the belief that the educational, job and other opportunities there hold the
best promise of improving conditions in peoples' lives.
The Issue Group believes that both approaches are appropriate and neecied. Neither approach by
itself is the entire answer. What works best for one individual or family may not be best for
another. The keys aze choice and oppominity.
It is important to note that in suburban locations, people without cars need to be close to good
public transit and jobs, or access will be a significant problem. Metro HRA data shows a
significant movement of Section 8 certificate-holders from suburban locations to central-city areas.
One of the reasons for these moves is to have access to good public transportation, and therefore
to jobs,shopping and services.
15
A third approach involves ways to help people make connections to opportunities in other parts
of the region. Currently, the region's public transit system operates a few routes specifically
designed for reverse-commuters. In addition, about fifty other regulaz transit routes can function.
as reverse-commute. There are growing efforts to explore other ways to facilitate reverse-
commuting to Eden Prairie and Maple Grove ernpioyment locations. These programs work best
for large suburban employment concentrations, and when program organizers work`with
prospective employees and employers to facilitate participation and the success of such programs.
Addressing issues of poverty concentrations will require a multifaceted approach to be successful.
In some areas, such as encouraging afforclable housing in suburban locations, the Council has
authoriry to require local governments to prepare plans to provide for a variety of housing types
and costs. The Council also has authority to, for example, require local governments to plan for
services and shopping along transit corridors to ensure accessibility.In other areas, such as
education, social services,and the criminal justice system, the Council should work in partnership
with other levels of government, other organizations and the private sector to address these
complex issues and help bring about positive change.
POLICY 5.The Council will support adions to improve the physical and societal conditions in
areas of poverty conceatrations, and will support public and private efforts to broaden
opportunities both in and outside areas of concentration. The Council will aot sugport efforts
that perpetuate or contribute to such concentrations of poverty. _
ACTION STEPS
These actian steps include approaches for improving the physical and societal environment in
azeas of poverty concentrations, and providing opportunities for people to live and work outside
areas of poverty concentrations. -
In the shon term, the Council will:
Pursue short-term action steps in Policies One through Four, and in addition:
a. Encourage efforts to base support services in neighborhood- or community-based lacations,
� such as in schools or communiry eenters convenient to transit, rather than in downtown locations.
b. Support neighborhood, city a.nd state efforts thax assist people in achieving self-sufficiency and
maximizing their independence. For example, employment and service combinations that wark
towazd this goal.
c. Support efforts to provide renters and first-time homeowners with skills and informaxion on
- how to responsibly maintain their apartments and homes. Several private and nonprofit
management groups, inciuding Project for Pride in Living,provide such counseling. HUD also
provides financial and home maintenance counsel'mg for its rental tenants in Minneapolis and St.
Paul who are about to become homeowners.
d. Support improved access to employment oppornuufies for residents of areas experiencing
disinvestment. Advocate far and sugport enhancements in the regional transit system that provide
additional funding for transit and create reverse-commute and suburb-to-suburb transit
unprovements.
16
e. Seek changes in state law to eliminate requiring a "one-for-one" replacement of low-and-
moderate-income housing units, ar to require that such ieplacement units not be constructed in
areas of poverty concentration or experiencing disinvestment.
f. Create a regional plan for the allocation of law-and moderate-income hausing and a diversity
of housing types and costs that meets needs at all life-cycle stages. Communities could plan
individually to meet their share of these housing opportunities, or partner with other communities
in a "sub-regional cluster" to meet these responsibilities. Require the revision of the housing
element of each urban service area communiry's comprehensive plan to outline their activities to
meet their housing goals. These efforts might include land-use planning or regulation to facilitate
the development of such housing, participation in or creation of housing assistance programs, and
activities to preserve existing affordable housing.
g. Seek to influence MHFA and HUD to begin or strengthen efforts to target state and federat
low-and moderate-income rental housing production and rental assistance to azeas without
concentrations of poverty and disinvestment and with transit accessibility and employment
opportunities.
In the long term, the Council will: � .
a. Support efforts to strengttien our educaxional system's ability and performance in providing
students with the skills and training needed to successfully enter the work force.
b. Support the efforts of the educational system and private industry to work cooperatively to
create apprenticeship programs to pr�pare non-college bound young people for the workforce.
c. Encourage and support the efforts of communities to help rental property managers become a
conduit for information that helps residents find services and connections in the community. For
example, information abaut employment'counseling, job training, job placement. Goop Northwest
(a joint venture of Brooklyn Center, Brooklyn Park, Crystal,New Hope and Robbinsdale}, has
obtained a McKnight Founda.tion grant to conduct a program like this in a 400-unit private-
market rental complex. -
d. Support communities' efforts to create more employment opportunities in their less
economically vital neighborhoods, by giving priority for regional infrastructure investments and
supporting the targeting of public resources to these neighborhoods (as outlined in the action
steps listed under Policy 1).
e. Encourage and influence MHFA and HUD to target all new resources for state and federal
low- and moderate-income rental housing production and assistance to areas outside of poverty
concentrations and disinvestment, with accessibility by transit and employment opportunities.
f.In planning for regional infrastructure investments or making�decisions about the expenditure of
public resources, give priority to those communities that have prepared plans to provide their
share of the region's 1ow- and moderate-income and life-cycle housing opportunities. Progress
towazd meeting housing goals, whether achieved individually by communities or through
participating with other communities in a "subregional cluster",would be determined jointly by the
Council and the communities.
1�
�
METROPOLITAN URBAN SERVICEAREA
RECOMMENDATI0IVS
FOR THE
REGI011�A�,BLIIEPRINT
A REPORT TO THE
CO1I�MTITEE OF THE WHOLE
� .
METROPOLITAN COUNCIL
� �a� o� x� �s� c��o�
October 5, 1993
�
:. �
Table of Contents
PART I: METROPOLITAN URBAN SERVICE AREA
RECOMII�NDATIONS FOR THE REGIONALBLUEPRINT 1
� Principles 1
• Urban Service Area 1
• Rural Service Area 1
� Urban Service Area Ob1ectives 2
Urban Service Area 4
� New Approaches for Changing the MUSA Boundary 5
Urban Service Area Action Steps 10
PART II: BACBGROUND-- ROLE OF 1 HE MUSA GROUP 11
Introduction 11
MUSA Group Work Plan � 11
� : Council Member Briefings 12
MUSA Tours anct Community Meetings 14
Sorting Out the Issues: The MUSA Line and New-Regional
Planning Concepts 1g
• The MUSA Line az�d Related Issues' 18
• New Approaches to Regional Planning 18
APPendices
Appendix A: Land Supply and Demand Within the Urban Service Area 1990-2020
Appendix B: MUSA Sectors
Appendix C: Staff Background Memoranda
, �
�
j } PART I: METROPOLITAN URBAN SERVICE AREA
RECOMMENDATIONS
FOR THE REGIONAL BLUEPRINT
BASIC PREMISE: THE METROPOLITAN COUNCIL WILL IDENTIFY AN�URBAN
SERVICE AREA AND A RURAL SERVICE AREA IN ITS �
PLANIVING FOR THE ORDERLY AND ECONOMIC
DEVELOPMENT OF THE REGION.
P�tINCIPLES � .
URBAN SERVICE AREA
PRINc�LE 1 Save money on regional and local infrastruct�ue investments.
PRINCIPLE 2 Provide sufficient amounts of servic�d land to meet future needs and facilitate the
reuse of buildings and land in older, developed areas.
� Px.wCrnLE 3 Use environmental resources and environ�nental features to guide urban
development and change.
PRINCIPLE 4 Ser priorities for regional infrastructure investments that recognize funding
limitations, ma.rket condidons and preferences, and the need to distribute
resources fairly within the urban service azea.
Ptt�c�LE 5 Implement regional goals and deliver regional services flexibly recognizing
differences in needs, circumstanees, opportunities and market conditions across the
region.
RURAL SERVICE AREA .
PRINCIPLE 1 Preserve agriculture land (defined as class 1,2,and 3 agricultural soils) and
support it as the best long-term use for most of the land in the rural area of the
region.
PxINC�LE 2 Guide rural non-farni development,' residential and commercial-industrial, in ways
that support future arderly and economic expansion of the urban service azea and
that recognize the need to distribute resources fairly within the rural service area.
�
1
`�IN'
URBAN SERVICE AREA OBJECTIVES
Using the preceding principles to frame urban service area policy,the MUSA Group recommends
the following objectives: .
oB7EC7'IVE 1 Guide development into azeas that have regional and local services available and
promote condguous orderly development of the region.
Rationale:
• to maximize use of existing local and regional investments,
• to suppart development where regional commitments have been made,
• to reduce upfront regional costs for groviding infrastructure,
• to encourage infill development,
• to encourage redevelopment and reuse of obsolete land uses, and
• to discourage leapfrog urban development into the rural service azea or
adjacent counties.
OSJECTTVE 2 Establish comprehensive land use strategies at the regional and loeal levels that
address:
• coordination and integration of services,
• linkage betwecn development and infrastructure investments,
. • housing diversiry(price, type and location),
� environmental protection,
• job creation and economic development,
• fiscal and service impacts (police, fire, local roads, schools).
Rationale:
• to increase housing choice,
• to have services and infrastructure needed to support commercial and
industrial development,
• to address the concentration of poverty,.
• to deliver services cost effectively, and
• to support a complement of local services throughout the urban service
area..
oBTECTrvE 3 Link regional transportation improvements to land use strategies.
Rationale:
• to support infill development,� •
• to support reuse and reinvestment,
• to increase density of development along transportation corridors,
• to increase housing choice in a variety of locations,
to link housing/jobs/transportation within subregions,
2 :
,� : to reduce the dependence upon the autamobile,
to decrease energy conswnption, and
. xo improve air quality.
oB1Ec'rrvE 4 Link regional sewer-investments to land use strategies.
Rationale:
• to improve quality of surface water,
to �rotect the quality of ground water, � �
• to encourage contiguous residential development, and
• to coordinate the delivery of a full range of lc>cal services which can
support a full range of housing types for all income levels.
oBJEC'rrvE 5 Reduce local and regional infrastructure costs by increasing overall density of
development. ,
Rationale:
. • to increase the economic viability and lower the costs for transit and
alternative transportaxion modes,
• to increase housing choice for all income groups, -
• to reduce home prices and increase housing affordability, and
. • to protect open space and environmental resources.
� os7Ec't�vE 6 Ensure availability of developable land�within all parts of the urban service azea to
meet regional demand. �
Rationale:
• to have a balance of opportunities for residential (single-family and multi-
faznily) and commercial-industrial development,
• to have reasonable amounis of land for commercial-industrial development,
• to prevent an artificial increase of land prices, and
• to discourage leapfrog urban development into the rural service area. or
adjacent counties.
oB7EC'rlvE _7 Integrate environmental planning and protection into the development pracess at
the local, subregional and regional levels.
' Rationale:
• to improve the quality of life for a11 residents of the region,
• to improve quality of surface water,
• to protect the quality of ground water, �
• to protect open space and enviranmental resources.
• to improve air quality.
� 3
URBAN SERVICE AREA
PREMISE 1; TxE IvIETROPOLrt'�v COUNCIL REAFFIItMS ITS. CONIlVtTt'MENT TO THE PRESENT
METROPOLITAN URBAN SERVICE AREA AS THE LOCATION FOR URBAN SCALE
DEVELOPMENT IN 'THE REGION.
PRENIISE 2: TrIE COUNCIL WII,L CARRY OUT TTS COMMTTMENT TO TI� URBAN SERVICE
AREA TfIROUGH PLANNING AND IlvIPI.EMENTATION PAitTNERSHIP WITH LOCAL
GOVERNMENT.
PREMISE 3: TI� COUNCIL WILL USE A SUBRBGIONAL PLANNING APPROACH TO SOT.VE
REGIONAL PROBLEMS AND TO ALLOW FOR FLEXIBLE, INNOVATIVE APPROACHES
IN IlviPLEMENTATION.
PREMISE 4: THE COUNCIL WII.L ESTABLISH FORMAL AGREEMENTS OR COMPACTS WITH ALL
LOCAL JURISDICTIONS TO COORDINATE AND INTEGRATE REGIONAL AND LOCAL
PLANNING SO THAT HIGHWAYS, PARKS, SCHOOL, LOCAL SEWERS AND. OTFiER
INVESTMENTS ARE MADE IN A COORDINATED WAY.
i
The Metropolitan Urban Service Area will continue to be a dynamic azea. The Council and local
communities will need to work together so that issues and problems can be solved. To do this,
the Council will emphasize a new approach to regional land use planning by using subregions that
represent clusters of communities to more effectively and flexibly address regional problems and
issues. Working with local government and other governmental units, the Council will identify
subregional planning areas considering the various factors including:
• Regional Highway Corridors,
• Regional Sewer System Treazment Plants/Interceptors and Service Areas,
• Regional Housing Submarkets, �
• Regional Transit Service Areas, �
• Employment Concentrations and Commuting Patterns,
• Environmental Resources (major rivers,�lakes, regional parks, designated
pratection areas),
• Shared Service Agreements, and
• Governmental Jurisdictions.
Compacts linking local comprehensive plans with other Council responsibilities for regional
investments, systems an.d the orderly and economic development of the region will be negotiated
with communities. These compacts will establish roles, responsibilities and expeetations for
delivery and staging of services, investment, redevelopment anc� development. This new approach,
incorporating subregional planning and regionalllocal compacts, in the urban service area would
4
�r'
- � help the Council achieve several key abjectives:
• To have a flexible regional/lacal growth.management system that effectively and
cost efficiently uses regional investments and infrastructure to .meet and balance
growth and change needs in communities inside the urban service azea and those
at the edge of the urban service area;
• To support a contiguous urban development pattern;
• To support redevelopment and reinvestment in the older parts of the urban service
area;
• To acc�mmoda.te anticipated and unanticipated directions or changes in market
forces, to allow for unforeseen significant lazge scale regional development
proposals that help achieve regianal goals and objectives. �
• To support inereased..density of new develapment in areas where it will result in
better use of existing metropolitan facilities and/or system capacity and to use
environmenfal features to guide development.
NEW APPROACHES
FOR CHANGING THE MUSA BOUNDARY
�
ASSUMPTION: OVERALL THE PRESENT METROPOLTfAN URBAN SERVICE AREA
(MUSA) CAN ACCOMMODATE THE ANTICIPATED URBAN GROWTH IN THE
REGION THROUGH TAE YEAR 2005.
PREMISE 1: THE COUNCIL RECOGNIZES, HOWEVER,' THAT THE URBAN SERVICE AREA
• IS DYNAMIC AND THAT TI�RE WII.L BE NEEDS IN SOME COMMUNITIES
FOR ADDTTIONAL LAND F�R RESIDENTIAL GROWTH BEFORE 2005. ALL
MUSA BOUNDARY GHANGES WILL REQUIRE A REGIONAL/LOCAL
NEGOTIATED COMPAGT WI��RE RESPECTIVE ROLES, RESPONSIBILTTIES
AND EXPECTATIONS ARE IDENTIFIED AND AGREED TO.
PREMISE 2: 'I`HE CQUNGIL IN CONJUNCTION WITH EACH COMMUNTTY WII.,L REVIEW
AND UPDATE PRELIIvID�TARY REGIONAL LAND USE INFORMATION BY THE
END OF 1995.
PREMISE 3: TI� COUNCIL WII.,L UPDATE TTS LAND USE INFORMATION EVERY FIVE
YEARS.
� •
5
-�►
The Council's preliminary land supply estimates for 1990 and projected land demand from 1990 to
2020 show for the region as a whole and for the quadrants and.sectors that sufficient serviced
land currendy exists to meet needs through 2005 (see Table 1 and Appendix A). These estimates
of 1and supply aze based on the assumption that the region will continue to develop according to
today's trends in density and general geographic patterns. The Council does not expect that
development will occur evenly across the region. '
Long range forecasting is difficult and involves uncertainty. Therefore, it is essential to have
regulaz reality checks. The Council will monitor development activity at regulaz intervals
(annually) and evaluate land availability (every 5 years). This will allow for a more orderly and
economic staging of regional and local investments, a more timely regional response to anticipated
and unanticipated land demand and assessment of the effect that any Blueprint strategies may
have on the rate, pattem and location of land consumption and development. (Table 2)
Although, preliminary regional data show there is no need overall to enlazge the urban service
area before 2005,the Council recogruzes the need to review its land use data with each
community. This regional/local review process is important for communities at the edge of the
MUSA�and those completely within the MUSA. What happens on the inside in terms of
development, infill,redevelopment and reinvestment affects what goes on at the urban
development fringe, and vice versa. The Council will work with local communities to review and
improve the quality of the Council's land use infomiation. Tlus process will likely take two years. "
The process has already begun by starting with sectors and communities where the data indicates
emerging shortages. Once this regional/local process is completed, Iand use information should be
regularly updated every five years.
�
Y
� � � � � � � 'i
6
�� Table 1
LAND AVAILABILITYWITHIN T'HE MUSA
TO MEET PROJECTED DEMAND 1990 2020
(I,and Demand for each period includes 5-Year Demand Overage)
SHORT-TE1tM 85 percent above projected land demarrd
regionwide;
Year 2000 �
� •no regional supply issues;
� •some selected community supply issues;
minor adjustments anticipated.
Year 2005 46 percent above projected land demand �
regionwide;
•no regional supply issues;
•some selected community supply issues;
additional adjustments anticipated.
M�-�� IS percent above projected land demand
� regionwide.
� Year 2010
� •overatl regional supply adequaxe but
deficiencies exist in three sectors: NORTH
MINNEAPOLLS, NORTHWEST 'MINNEAPOLIS
and SOUTH ivtIIVNEAPOLLS;
Lo1vG-TER1vt 4 percent deficit regionwide in meeting land
supply demand
Year 2015
� •region needs additional land supply;
•one additianal sectors has need for more
serviced land: SOUTH SAINT PAUL;
•19 percent deficit regionwide in meeting land
Year 2020 SuPPjY de��'; I
•region ne�s significant additional land
supply;
•all sectors except NORTH SAII�iT PAUL will
� require additional land to meet projected
demand;
musatble.avl
�
� 7
Table 2
URBAN SERVICE AREA
Monitoring
Factors Afferbing Iand Demand
Factor � Implica'ons
Regional Growth �
• Faster Than Forecasts 1 � More tand needed in MUSA; accelerates
for additional sewer facilities &
transportation services; if land supply
tight land costs may be higher; greater
demand on regional financial resources
• More than sufficient land to serve needs;
• � Slower Than Forecasts 1 not necessary to expand MUSA
• Could provide better match for regional
• Geographic Shifts —� services or greater mismatch between
land supply and demand;
Density of Development ,
• Mized Use Development 1 � Greater land use and regional service
efficiencies; less land needed; improves �
uansit viability; _
• Reallocation of Com-Ind land to • Greater land use and regional service
efficiencies;
Residenual j • Greater pressure for MUSA expansions;
• Lower Density at Urban Edge � ���� demands for regional sewer
facilities and transportation services;
greater demand on regional financial
resources
- Redevelopment &Reinvestment
• Increased Housing Activity in Cenual • Potentially less demand for new
Cities and Developed Suburbs -- developable land and investments in
rehabilitation and replacement t regional facilities
• Employment Growth in Cenual Cities � Po�ually less demand for new
developable land and investments in
and Developed Suburbs 1 regional facilities
Environmental Protection
• Environmental features used to guide • Overall, may reduce land supply;
development -- incorporated into site however, wetlands, lakes, sueams, rivers
planning and urban and floodplains are already subuacted
design —' � from�land supply
The Metropolitan Council recommends the following policy approaches for dealing with changes
to the MUSA boundary configuration: �:
1. The Council will retain the present MUSA boundary but adopt new policy to respond to
cities' requests for changes to the MUSA, as follows:
a. Consideration of the requested 'change will involve assessment of factors which
are presently taken into account when reviewing a proposed change:
• Grawth forecasts and land supply,
• Availabiliry,capaciry and plans for regional sewers and transportation
systems,and
• Consistency with the Council's rural area policy.
In addition, the following factors will be assessed:
• Job creation/economic development trends,
• Local implementation of strategies and actions that ailow for a variery of
housing types and prices for current and future residents,
• Use of environmental factors to guide urban development,
• Local plans for service consolidation and cost savings,
• Protection of agricultural lands, �
• Availability of other local services — transit, schools, county roads, parks,
� recreational trails,adequate police and fire s�rvices
b. Above factors will be assessed at both the ciry level and as appropriate at the
subregionallevel.
c. The Council will develap procedures to consider changes to the MUSA on a
periodic basis instead of on a first-come-first-ser.ved basis.
2. The Council, in conjunction with local communities, will identify growth patterns along
transportation/development corridors with potential for high intensity development. These
may be within or outside of the present urban service azea. For those outside, the
Council wiil consider specific proposals for expanding the MUSA boundary to respond to
strong market forces as well as land deficits that may start to occur after 2005. To
implement this concept, the Council will take a "case study"approach to identify areas.
Before approving a MUSA expansion in this manner, the Council will assess (in addition
to criteria listed in l.a):
. • the cost of the additional infrastructure investments,
• the overall impact to the regional systems and the environment,
• economic impacts to adjacent areas, and
• the capability of local governments to provide local services.
.�
� 9
URBAN SERVICE AREA ACTION STEPS
ACTION STEP 1 Working with loeal governments, identify subregional areas for future
expansion of urban services or investment in iafrastructure improvements.
Areas chosen should use new urban services and/or infrastructure
investments to enhance economic development, preserve environmental
resources and address societal needs. Examples of subregions include the
Northwest sector, the Shakopee/Prior Lake azea and the Cattage
Grove/Hastings area.
AC'FION STEP 2 Increase the Council's commitment to local planning assistance in order to
allow working in partnership with local governments and clusters of
communities to implement regional goals.
ACTION STEP 3 Work with appropriate planning and regulatory agencies to set up a one-
- stop environmental pernutting process.
Ac'r�oN s'rE� 4 Amend the Metropolitan Land Planning Act to:
� require periodic updates of local comprehensive plans (every 10
y�s>;
• require that communities have local and regional services are in 'i
place or planned for implementation concurrent with new �
development. Government jurisdictions will include regional
agencies, school districts, counties and other special districts;
• require communities to coordinate their comprehensive plan with
neighboring communities and other affected jurisdictions, including
school districts;
• require an environmental element in local comprehensive plans that
addresses how a communiry will use environmental features to
. guide local development and redevelopment.
ACTTON s'rEP 5 Monitor and regularly publish regional land supply, land use (residential,
commercial, industrial) and housing market trends including home values
and rent prices by community.
ACTION STEP 6 Initiate dialogue with counties adjacent to the northwest part of the region
to explore transportation, land use and development issues of mutual
concern.
10
#-� .
�
PA.RT II: BACKGROUND �; � .
ROLE OF THE MUSA GROUP WORK
.Tune - September, 1993
INTRODUCTION
In May, 1993,when the Committee of the Whole identified Iugh priority issues that needed to be
addressed in the new Regional Blueprint, concerns regarding the Metropolitan Urban Service
Area. emerged hig1Z on the list. As a result of the numbers of issues that reIated to the urban
service boundary and how it affected other parts of the regian, "The Role of the MUSA Group"
was created to respond,to examine the issues and malce policy recomrnenda.tions.
The following mernbers were appoint� to the group:
Carol Kummer (Co-Chair)
Mary Smith {CaChair)
Bonnie Featherstone
Jim Krautkremer
� - Roger Scherer
Steve Wellington
In late July, when Council members appointments were made, .
Bill Schreiber
Jules Smith �
Sondra Simonson
were assigned to the group replacing outgoing Council members Feaxherstone and Krautkremer.
MUSA GROUP WORK PLAN
The Role of the MUSA Group — or MUSA Group, as referred to for short - carried out its
work between June 15 and September 27, 1993. The first step of the group was to develop a
work plan that would allaw its members to carry out its charge. The adopted work plan
emphasized a two pronged approach:
• Staff briefings on a variety of areas, and .
• Tours of the urban service area and community meetings
�
11
� ��
COUNCII. MEMBER BRIEFINGS
Staff presented information on the following topics: _
• Chronology of the present MDIF, �
• Various approaches to urban growth boun.daries (Florida, Oregon, Maine),
• Demographics/income/employment,
• Regional housing market,
• Leapfrog development outside the region and commuting into the region, and
• Land use/vacant land estimates.
Key points made during these briefings can be summarized as follows:
Regional Demograplrics/Income/Employment
o Major poputation sl:uft in the next 20 years will be marked by the aging of the baby
boomers. This change will translate into increased demand for move-up housing
concurrent with a diminished demand for entry level housing. As baby boomers enter
their "senior"years, after 2010,services associated with older adults will also be in higher
demand. .
o Although still relatively small,the region's minority population is growing rapidly due to
both in-migration and higher birth rates (minority groups aze younger tham the white
population and, therefore, have higher fertility rates). Because the income of minority
groups is generally lower than of the overall population,
the growth in minority population ^�
has implications for increased demand for afforda.ble housing. I.arge affordable units will
also be in higher demand to meet the housing needs of large families.
o The region has a high percentage of workers and Iow unemployment. It has experienced
growth in service jobs that are low gaying on average. The manufacturing sector
continues to be relatively strong.
o During the decade of the '80s the region saw a major increase in the number of
households at the poverty level. This increase was particularly concentrated� in the core
and translated itself into social problems, including deterioration of some neighborhoods.
Regional Housing Market �
o The housing ownership market functions quite well in this metropolitan area- One of the
main concerns in this market is the aging of the housing stock. This has imPlicazions for
housing rehabilitation and maintenance to preserve personal and well as communitY
� � investment in housing and prevent neighborhood deterioration.
o 'The rental housing market and renters face some problems. Vacancy rates aze high;
affordable rental housing is,by and lazge, concenuated in the central cities and older
suburbs, contributing to concentrations of low-income persons in these communities; and
an increasing number of renters are paying a high proportion of their income for rent.
. 12
� Y
This situation calls for efforts to increase the supply of affoldable units in the re ion
increase the number of jobs'at higher than minimum K,age ffi or
�;
Leapfrog Development/Commnting
° Leapfrog development outside of the seven-county area continues to occur
but it has gone down from the 1970s and is concentrated in small cities outside of the
region. �
° VerY Sood highway aecess and proximity to the metro area aze seen as the main
leapfrog development in Wright and Sherburne Counries around cities like Elk Rive� of
Buffalo, Monticella Southern countles r,
agricultural areas which require a lazger �p��o moveeawad fro tt� have large expanses of
employment and retai1 centers. Hi wa y m �he region's housing,
� Y�s is also more limited from the south.
o Some leapfrogging to the neighboring Wisconsin counties has also occuned
° The impact of commuting is relatively large in outlying areas, but those tri s r
small portian of t o t a l t ri p s w i t h i n t h e,r e gion. However, cancernration :of the �e e n t a
commutes in highway corridors in the outlying az.� do� ��e problems particui� �
the northwest and at the St. Croix Bridge crossing, y
Land Use/Vacant Land
� Q Consumption of land by urban land use categories resid
public/recreation) has remained ve � ennal, commercial, industrial and
the region's land re �'�form over the past t�,o decades. Two-thirds of
mains in vacaut and agricultural uses.
° Residential development has been the largest consumer of the 232 square miles
that has been urbanized over the past 2p years, Residential is followed b ublic f Iand
industrial and commercial uses, in that order. � Y P ,
° The greatest amount of urban land use growth has been in the westem uadr
region. Most growth has been occurrin 4 �s' of the
decreasing arnou�t of development in the rural azea loye�e ���ties, with a
p enty years.
° Residential densities in our region are very low;the average is 2.5 units per residential
acre in the develoPing area. 'The u�.banized
r� � �e �e portion of Twin Cities metropolitan area
U.S. �''third lowest in density among the 251argest metropolitan azeas in the
� If urban growth continues to consume land at the same rate
the 1980 to 1990 period, Council forecasts indicate that the ov�erall ue�Ildo�„st d�d during
urban serviced land within the Metropalitan Urban Service �� PP Y uitable
accommodate projected growth through the year 2005. �SA) can
° The distribution of vacant serviced land is not even across the region. When th
,�� divided into eight sectors, the North, Northwest and South Minneapolis sectors start ls
13
x �
showing land shortages by 2010 and the South St. Paul district by 2015.
o B tlie year 2020, all sectors, except North St. Paul, will require additional land wi�� �e
y atterns continue.
urban service areas to meet projectecl demand if present land use P
MUSA TOURS AND COMMUNITY MEETINGS � . . .
l�sh this aspect of the work plan, the 1VNSA Group divided the urban service
In order to accomp �
three sectors — F�.ast Metro, Northwest Metro and Southwest Metro -- and set up tours
area into of the three sectors and provides the ration�e ��
of the sectors. Appendix B shows the map a ���ity meeting
for the sector boundaries used• Bach one S��deve opers/builders andy citizens had an
where local elected officials,local plannmg �e re ion's urban service azea.
opportuniry to express their concerns about issues affecting g
t u at the three meetinSs that followed the
Following is a summarY of the planning issues brough P l�ng.
tours. Also listed. aze comments that relate to the Council's role in regional p
East Metro Area(June 30, 1993)
rehensive way. Up to now roads and sewers
o Planning needs to be done in a more comp r�idential development. Schools,
have been the primary factors looked at when initiating � of�e plan�ng-
jobs,housing affordability, social services,transit need to be integral p
ortant regional issue. It needs to be made part of comprehensive �
o Water quality is an imp P develo ment and its effect on __F
� planning since there is a relationshi between housing P
sewer treatment and ultimately on water qualitY•
ent in one communitY can h�ve ripple effects on the economic vitality of other
o Developm be�g �uilt in developing suburbs
communities. For instance, m°d�t-COS nh���older suburbs (not just with housinS in the
competes with older homes of similar p �� � � older one in
Central Cities). The attractiveness of a new hou�se�eor�older�parts of the region and
an older neighborhood can affect the housing
initiate neighborhood decline.
o Density is very low in third ring suburbs. Building s��'w� burb� �T� .��e
requirements, result in very Iow density development
development patterns reinforce dependence on the automabile and make transit an
impractical option for moving peoPle azounde
brings rules and certaintY to local
o Having a defined urban service area boundary ort strate es that are intended to
communities. It's important for communities to supp �
rotect regional interests, but at the same time they need to respond to local needs and
P
interests.
o Many
communities, not just the cenual cities, face the ��le�d �ck te�erminals�ta�
of redeveloping sites that have become obsolete or undesira
fanns, small retail strips, drive-in theaters, old warehouses• Tax i�crement financing is a
14
, � elop�e�t• � y pt�n��g hen
. St of reae� Too � u�h Fl�
die
co
� is critical l� �o ao m
wYite aO`� auP°�'d fot co�'�
t�l�at helps �i�las, �e It,SI� a s�`ilt °f
Co�ty in P �S e SUt �
i D�°� olution of �ot��• ve1opmep`� pi� coos�te n A
� o �nge.ou e cont�u� to g°� �e ge�'�$ Stro n�d�, W�o�e ��ow comment
�at iss Bu�ville �eu co��er�aY �I5 Sbo� piff
le V aUeY' o��un�g � t �G1S� � a Tegio� 10�pl�g'
,�$�' APp eC S to �d etc•
o �no�� de�eloPmt o� SystemHo°Nevet, �te se�ional,� �ends, �" ��on
F
geogtaP��e�at�d �e �0�c,eS and `N� wben��"$to �den �we11�P° d�, witb
es d to
�o��v,ti e d.ata SO bessome land fi� ,S a,��cwat � �s
�d ��atibl b�me cvm �il �a�' is Dot. It � ax� anS�
no�e11Cla�� �a� w���ae�el e4sb�� �urb��provid���� �d �
f�l ident�fi �b �tions , tbe�1
us�i�� e la»� svag�e� eas, PYO� lat►�g �ay.
0
Some �0� some: � focus °meu�4°lita It�mose I��a�are flex�ble � �
p o�atio p�l�n tl� oth�s a�� as �D tcu�utns�� �e �a11ag��s land.
defin�' byban bovt�datY 1 and vt�fot� u�ent e�l ' � 1an �
foT �p e d
d �e uz fluc�,,tions ity ieq'i vety� � tU�
an �`te t�, the de�l�`�°no� fac,e Yu:ghet �
a�co� �t pl�ess felt ,�� 1 in Sd��,
. Som� Metro ��el �. 1���tated �°n
o shQ�d be p0 ��o�� . . � - lin,
• S,e U� .� ��,pet�t�on• T ��ple Gsove, C� e
Ag P=ese� � -
tow��p 14�1993� ��s Sect°e g�o��1ey eXof� land is
` �,est M�° ���3u19 Sevesal �O_mm�ta��m�de� fee11 pfrog g tO cin�
rlorth �ommon �eme)���d evaila,bl�V� Cew�ee by prompt�ng rri
dox`
o A �y, p,r'a° p,�tlio�� �''deyelop�'en way �O �
ell as use °f�w�c°��dOrs �
R� ew y�s' able for
next f d� avaal
�ot being �e�en c°up�� S se�to= �of�e �n in�s ��' vei to
e
� congestion �it�eS �� to Elk�
outside � �es cross�gs� � comm Ie1o� D�� that
ee
Limited �����utets���etese���leapft��� ls also et�o ��' commutets
° by out-of-�� to )°bS of�ey �Iowevet��of non m
poos a��essibilirl es�den� �Iossin�• �e �t aillx��
Repo���y� sao��s to �e e��I��t�tensify 1at�d��' .�p1es � eT
rnote i�dy �ro�em �a,n,sitio� va��y�as. 01�d
tion obso�ete �r en�`J n�
tLan�P°sta a���T of wi�1� left Pe S��auto � ose plOble� f oi
c.l� osal also P
,�� S�toT con� oT a� te disp ome P�ks,
o ent befo apje Gto�e, solid�� obile r unities•
tm d old m e coznm Dayton �
��� it�M stsiPs � S ln sotn �� iv
dus � Yight°f� a development �eas•
ornmep���e en�� w
ututy �.�hese
r°aa �T� • Dayt°n ��t et��tend se°ae2
,�� Teg�onaa P�e�acts as a baxn :
o C��pl� bec.a 1�
�
� The
north�,�st S
rhe �o� �ror
inep uriities � a hi ,
varie es tO SuPport�t tO Pro�eprOPor�io� of �
co.rn��°�Il levels�The�erci�dever �alue ��dable bofi�
elo es
'S°�hw �r�ated a lugh �e oP°rtion p fe�� w�U��to ey �� �����' some
Q � M�o�,��Jw �d for social S ryb��ental����S k,r�r e.mix o f°�
y�� 1 9 g 3� �m e o f�e 1� a
e �'h'of Vict
_
grOwth � �ria feels
���munities �e r �ve y�,she �� fOr�
o �r loa,er � They f�l ditio� 1 --� -
�e �ncil
�eg�vCarver Co� � �� gra� ��re C� ��n the �SA —
�e restr�ct d��o°n the �ective, �d� cO�uniries p�,e e�Pe .prOJ�����dare
�'he MIJSA liue Pment � �e�'ea. The � re.s�ctior� o f nen��g for so�e
Me�o Co �beld too rl �'al area ��'Put S�.o �� �IiISA
o �t uncil �� to�tt, rhere �,u�b �Mel jr�o P°licies • bO�ndaly
available f l°�n�i� def�es „ �owl�ge �'ket�S�e again�to �d �� 1 fe��ago
d e v�loPmenr �.e av�lable" and d e�d' d e v e lop iri �e�O�• If
�Ourses, active f 1
°r debel jand, ��r�hool sites t e c�ssari�y�e K'hat �� � �'ea•
° It's dl�.ic Pmer�t �ty may oNy�� t�he a��e pnc�a��per1e�� � 1�
tight MUslt rO creare bour one frhat �e Co�c�ztr� exclud� gold
or�Serve tbat �ine. C��anced �o� � °f�iar land �I�� as
ger cloSer �'acter, bu� b�n a fr�' �'hen 1 Y av�able
�.Ymore to C1ias l c� if�.o� ees�� and p��
o �rono ' P re�3' soon C,�°� tlie ��g� ce�te� g��g uP b
o ��� �xPressed wOII t be a �,�SS �'b�ery�d li��oe °f
reall�ro� K'restl rhe n� for additzon� rand,�g �,°� ��e�°nt,inu�
e�� f land r• � k'itk the Serviced l�nd
c���tY-b ��g a�fforn uP by rhe caffordable �o .
COuncil Y co��ty .P�ersp t��� �om a of����but they have to
�PrO p]lc�� �e Jusr o e Inetr°.Poli���'• 77�ey o� �'ith
�ect t1�e
� Pe�Pective ratherjd like to
fore az�g yer
rhere s la °�w,� �n
1egislation is��develo �wemyri �Omm a
don�r �wdyS��Plep�nbl tlan��horevu��metz� �d develop�
ser�se � � � re rs
T�e anket regWatio d rive�.on�atior�s that n ve to d� wj�
�� C�uncll �r e�b �d S� on , � ro be
nriv� to ��s to ide °dY } We� met
�wzities tha�unities nt�the cO�mon thr, g� jnte�tio� b�rhat
also take actio�o�'�t aalciiho� of ho�� � rhe js�
g, for � s
u 2 c r e�e the supp�of ��O�moa?ate , th��un a Prov1de
16 �Ordable hous g°�h, they �,�get rI 11
t if
;
. •
Council Role/Governance Issues
o The Council needs to be clear on what its metro responsibilities are and also understand
local goals. It needs to form partnerships with iocal governments.
o The Council needs to clarify its mission and not impose"blanket" solutions to regional
problems.
o Representatives from local communities praised and thank� the Council far coming out
to the community. They liked the bottom-up approach instead of the top-down approach
the Council was using earlier in the revision of the Regional Blueprint.
o As the Regional Blueprint is revised, there needs to be consensus on what the regional
issues/problems are. Otherwise the solutions cannot be identified. The Council needs ta
provide a framework for discussing the issues. More immediate concern is to reach
consensus on what the key issues aze. If people are aware of them, then the solutions will
happen.
o The forn�at used for the planners' forum worked very well. People felt that parochial
interests were superseded by common interests, issues and problems.
o Council members need to get out in the community. The Council continues to be either
� , an unknown entity among the general pubiic or is not held in high esteem� aznong local
elected officials. A more frequent presence at meetings, events, and so on would help this
image problem. -
o Seven counties may not be-lazge enough anymore to define the metropolitan area and do
regional planning. Although the number of com�nuters�from outside the seven-county
area is small in ternis of to total regional travel, commuters from adjacent northwest
counties and from Wisconsin have a sizeable impact on traffic congestion on roads in the
neighboring communities.
o The Council has an important role to play regazding the coordination that needs to
happen among communities when trying to solve problems. To date, the Council has
concentrated on regionaUmunicipal relations and issues. It may need to sluft to
regional/subregional issues and relationships. A number� of communities already cluster
together around common issues, such as transportation problems, access to interceptors,
job access, etc. The Council can provide leadership in finding solutions to the problems
and its policy can aclrnowledge these "natural" clusters and associations based an common
planning concerns and issues.
�� 17
r i
SORTING OUT THE ISSUES:
THE MUSA LINE AND
NEW REGIONAL PLANNIlVG CONCEPTS
In August, 1993,the MUSA Group's work focused on sarting out the issues that had been
articulated in the previous six weeks. Issues that MUSA Group members felt they needed zo
develop further fell into two m�in categories:
• The MUSA line and related issues, such as Cotmcil growth forecasts, vacant
land, market forces, leapfrogging.
• New approaches to regional planning.
THE MUSA LiNE AND RELATED ISSUES.
Because of the frequency of concerns expressed in this area, MUSA Group members were further
briefed on the following topics:
• Population and househald estimates — why and how they are done,
• Regional forecasts — how the numbers are allocated,
• Process used to develop land use/vacant land numbers,
° Does the MLJSA line drive land prices up? �
• MUSA extensions requested but not granted, and )
• Areas with on-site sewer concentrations.
Attachment C contains five staff inemoranda and one map that provide background on above
subjects. �
NEW APPROACHES TO REGIONAL PLANNING.
Under this category, MUSA Group members focused on some new concepts that emerged out of
the tours and community meetings. These could the summarized as:
• regional planning tha# emphasizes clusters of communities (subregions) rather
than municipalities'
• stressing the importance of"concurrency"in Planning: coordinating new
development with regional and local plans and services
Subregional Planning
Due to tradition and reinforced by law,up to now the Council has mostly dealt with communities
on an individual basis, such as when dealing with MUSA boundary changes, project proposals or
reviewing aznendments to local comprehensive plans. During the MUSA tours and at the �
community meetings, MUSA Group members heard and observed tha:t while common problems
18
�
exist around the region, the nature of the problem is often unique to specific clusters of
� communities. Examples are the amount and impact on the region of leapfrog development taking
place outside of the northwest sector in Wright and Sherbume Counties and the leapfrog
development going into the rural, agricultural area in Carver and Scott Counties, Proposals for
infrastructure investments, such as the Elm Creek Interceptor and I-494 corridor are also
examples of problems that need to be addressed in conjunction with a cluster of communities.
In addition, emerging regional issues are difficult far communities xo address individually,e.g.,
linking jobs,housing and transportation or efforts to deconcentrate poverty. These issues not
only ca11 for coordination of regional investments with economio development policy,and housing
mazket strategies, but they also call for cooperation .among communities to achieve the goals.
Concurrency in Planning
Up to now, when considering changes to the MUSA boundary, the Council has assessed the �
merits of the request by principally looking at sewer and transportation ca.pacity. During
community meetings in June and 7uly,MUSA Group members heard that it was important for the
Council to start assessing other factors, such as school district capaciry, availability o€affordable
housing, social services, transit and so on. In other words,when development is under
consideration, concurrent planning needs to occur in a variety of areas and the planning stage
needs to involve a variety of gavernmental jurisdictions that aze eventuaily affected by the
. development proposal, e.g.regional agencies, school districts, counties and other special districts.
�
_� 19
�e .
.�
� APPENDIX A
LAND SUPPLY AND DEMAND .
� WITHIN THE URBAN SERVICE AREA
� 1990-2020
�
� . �
;t�;r �r . �` '
� L�ND SIIPPY AND DffidAND WITSIN TS$ URBAN SER`TIC$ ARRA
INCLUD$3 5-YSAR OVERAG$
Preliminary l3stimates Ia Acres
SBCTORS LAND SUFPLY LAND DEMAND**
1990 Developable*
MUSA Vacant 1990-2000 1990-2005 1990-2010 1990-2015 1990-2020
NW MPLS 14, 849 10, 679 13, 525 16,727 19,463 22,433
N MPLS 11, 631 7, 563 9,698 12,026 14,709 17,215
N ST. PAUL 8. 986 4, 595 5,759 7,105 8.748 10,243
NE ST. PAUL 12, 918 3, 316 4,011 4,791 ' 5, 573 6,353
SE 3T. PAUL 12,656 '6, 075 8, 075 10,319 12, 562 14, 806
S ST. PAUL 20,039 12,390 14, 600 18,154 21,?08 25,262
S MPLS 31,8?1 18, 603 24,449 32,942 40,254 47,334
3W MPLS 15,688 8,037 10,149 i2,444 14,740 17, 035
CENTRAL CITIES 2, 879 - - - - -
TOTAL 131,517 71,258 90,266 114,508 137,757 160,681
* acres in wetlands removed � • � �
** land demand includes a 5-year overage (an amount equal to the projected demand for
the last 5 years of the period)
9/23/93 awsasect.d�nd
� � � �
, . . �. ..`.�
� . .. ..r.�- �
� . _ N MPLS� �N 5T. PAUL,.��a�
_
, � � ��� .
� � :;:: �::;:::�:: ■ �
��� Year 200o MUSA .
�. .�] :��•`:::;::�::::� �. .�
� :�,�;;:�__::�`::::: ::_::::::: � NE ST. PAUL
:'_ :::���_'��_;�: ;�;::_::��:�� ;�"
. ::_:.
: : .: ..,.::. ::_::::,:::
::_:: �:�: � ::.-::::::•.::• . ...... .
::,:. :::: ::::. ;��.:. ,,,.;:::.:.....
. . � iiSi.. �5:: ��S}�� �'�`�i�+i�� . . '
. . [Y ::�1:iS::i::�: ::��(i�ii�: i : .
NW MPL� ::�—::::::
�_:: i�=: :�
•,:::: '� ::�::::.
:::;::: `:p�: ::�.:.J��:
D s:=:: ••_� .��"�`'»i».i»
• �;iiiiiiiii 'i?:� Eij; � h�•' ::i•:i•ii+�i�iii��...:.. '
:ll�::::::E :aE9 •'�J•,�,�� iii=iE,�,::::;:
:t �►���'ti�• ;_:::.^a:::..
:a. e .�_..........
r'+�e �
el�f•u:•
.:i::::r.
.i�'.,'�.ea'a
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::;_�::: '"'�w . ':;::......
:�:. :��i ::t::.�:�,;�� ��;,• :::'��:
� � 1/t ■1■ :_. ;,;,;,,,�,, .;:'s::+�.+�:� .��.F.. _...:..
' E:i:l3aii i4����� `�'����� �S' i a
. . . L'.i C�7'.7::C'i:t:t:{::; e4��± ��fb i� ,■' �
� 2 �'i� .l.I:1'1:1. i7 �}���� ���p��
I �_: ';:i=:' .�. j•� �I�2 �e;�� ::w.....,.:e'°
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iiiE :i'i :mta: •� .=ie i E.i...
SW MPLS ;.,.:..,. ::_. . ::s��
v :._._:..: ._..::: -r:
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s P
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p :_� ::�:`• .��;i:�' _, t
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, "3•:;;•;::::�iii'r�3�°::yEi._....i..
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ia= �. � ��
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�s, ..�� ���� � r a o
1 �� p
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2o ao �
0 i� � �'
i , � . �
L
�. Mlles �,;
EAR �W�.�1 PROJECTED LAND DEMAND t,�;; � � n
�:
QEJALS CURRENTLY AVAILABLE � �
[t�SA LAND SUPPLY -- BY SECTORS ■ �l S f �' �...� w
ncludes 5-year Overage) � �ZOO�� — Cz � ���- '
A N KA �._.-- ..�w.j�
...
.. � �
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: ^
. � ` _ �� WASH NG70 N
::�.� ..��.('-� - .
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� ■
0 i p 20 �p `�
i
i � �
h�tl le s
�BILITY TO MEET PROJECTED
,AND DEMAND in YEAR 2000
'ercent Above or Below � — , �, *,�.I "
[ncludes 5-year Overage) �S4 %) ! (96 %) r.�.. �
A N KA /_.---- a....w.��
�
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_ '
- - . � ! .��� 290 %)
. ... . ■ �
s
Year 2000 MUSA "'" '" .
. � �.
�7 r� -
:l:::�:"�::':�:::'s':::.........::..... ::.�� WASH NGTON
;;'•�'�: :� —
s::=�:`.:� :::�..:::=:::s::�� ::::::::::;
3 9 % .�:.......... .
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�`� � �� � r C7 ° �
♦ (71 %) �°' , p
«� . ■ (62 %) Y
. ■
p 1 p 20 30 '..
� , , —' e . .(Re4ionwide � % y
Mil�� '� � \ b �
. . -.�..,_. .
. �� . .. . � � � �.. . . . . . . Y .
ABILIT Y TO MEET PROJECTED �
LA�ND DEMAND in YEAR 2005 - �'�'"� � � � -
Percent Above or Below � (2O °I�o� e (5 6 %� ��. ���
(Includes 5-year Overage) �N � � ,w���
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.. . . w � '�'"� .
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� Year 2000 MUSA :::�€:::::::::s " �
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� WASH NGTON
�,�,� ��,�
(10 %) :::::::;� �
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ABILITY TO MEET PROJECTED
LAND DEMAND in YEAR 2010 . _ , ��
Percent Above or Below _ �_S %l � ��7 a�o� � �: �-�• �
(Includes 5-year 4verage) f
AN KA �___-- ...�,.���
—
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. a _::���:. 170 %
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(Includes 5-year Overage) � 21 %� - �3 �%� ,.�,._ �
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APPENDIX B
MUSA SECTORS
� " .
�
• a
METROPOLITAN COUNCIL
Mea.rs Park Centre, 230 East Fifth Street, St. Paul, Minnesota 55101
612 291-6359 TDD 612 291-0904
_ ) �
DATE: June 7, 1993
TO: MUSA Issues Group
FROM: John Kari, Ana Moreno
SUBJECT: MUSA Sectors
. During June and July the MUSA Issue Group will examine e�cisting and future land use and
development issues in an effort to r�lefine the future role of the urban service azea. The MLTSA
Issue Group decided at its organizational meeting to conduct three regional tours to see various parts
of the region first hand and xo meet with local officials/staff and discuss development issues.
To help organize the tours and issue discussion,we have divided the region into three sectors: East
Metro, Northwest Metro and Southwest Metro. 'The three sectors were defined using the following
criteria:
(1) the regional housing market;
, (2) regional shopping centers/retail market;
� (3) employment and the commerciaUindustrial concentrations;
(4) major highways;
(5) existing subregional associations (Metro Fast Development Partnership, Southwest
Coalition, Northem Mayors Association), and
(6) the boundaries of the eight metropolitan data analysis sectors.
Data and inforn�ation will be pulled together for each of these sectors as well as for the region as a
whole. This approach will eventually help us decide what type of policy azeas the region needs. In
the public meetings and fonuns the point was made repea.tedly that tfie ML7SA policy should reflect
how the region functions and relate to the developmern issues in different pazts of the region. This
approach was selected to help us do this.
� .
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)
APPENDIX C
STAFF BACKGROUND MEMORANDA
� � -
�
` , METROPOLITAN COUNCIL �
Mears Park Centre, 230 East Fifth Street, St. Paul, Minnesota 55101
612 291-6359 TDD 612 291-0904
- 'j �
DATE: July 23, 1993
TO: The Role of the MtJSA Group
._FROM; .. Kathy Johnson. . . .
SUBJECT: MeLropolitan Council Fstimates of Population and Households
'In 1971, the Minnesota Legislature passed the Metropolitan Revenue Distnbution Act mandating
that the Metropolitan Council annually estimate the number of persons and househoids for each
municipality in the 7-County metro area The State Demographer's �ffice was designated to �
produce estimates for cities and townships in all other Minnesota counties. (This legislatian was
renamed the Charles R. Weaver Metropolitan Revenue Distribution Act (F'�scal Disparities Act),
in 1993):The intent of the legislation was to provide the State Department af Reveaue with
annual municipal-level estimates xo use in tfieir local aids calculations, and for use in determining
fiscal disparities. The act states that the Department of Revenue will use estimates For the
preceding calendaz year in their formulas. We have recently submitted numbers for April 1, 1992,
to the Revenue Departmenx; the Apn�date is used because it conesponds to the date the
decennial Census is taken.
Our estimates are based on detailed housing and population data from the most recent decennial
� Census. They are calculated using a housing unit method, that we supplement with our own
survey data, and current statistics from other governmental sources. The housing unit method
proposes that knawing the number of occupied housing units in an area, and having persons per
househoId rates for various types of units, makes it possible to estimate the population. We've
continued to use this type of formula because we can rely on obtaining very complete data on
new residential_building activity from most of the region's cities. Accurate total housing counts
are fundamental to estimating occupied housin� units and population.
Each year, during the first quarter, we conduct a mail survey to gather residential change
information. Bu�ding officials, or city clerks if there is no building office, are asked to tell us
how many single-family, townhouse, dupiex, etc;, units were permitted in the last year,as well as
any demolition, annexation, conversion (for instance, from a duplex to a single-family unit) activity
that occurred. We determine the current year's housing stockby applying this information to the
previous year's estimates. �
We estimate occupancy rates, which are the ratio of occupied units to the total housing stock, by
appIying ehanges in NSP utility data to the most recent Census rates. For the areas not covered
by NSP, we use county trends to update Census data. We maintain quarterIy vacancy data by type
oF unit for the approximately 650,000 units covered by NSP.
Predicting changes in the persons per household rate is the most difficult task we face in this
process.The Census remains a good source for a few years past the decennial year, but becomes
less accurate the farther one moves from that year. During the 1980's the household size
declined in most areas of the region. Although.we suspected that this was occurring, we found it
_� .
� �
difficult to justify dropping the rates without supporting statistics. In cities where offici
young families moving into the new singIe-family houses that are built each year, it is diffi uIt to
convince them that the household size is declining as a resvlt of households showing increased
numbers of empty-nesters and increasing numbers of one-person househoIds.
In 1988, and again in 1990, the staff conducted a household size sample of 30,000 arid 50
households, respectively. These sun,eys provided us with enough responses to make ad'us�tments
where persons per household data had signi6cantly changed. If the budget perrnits, a,e ho to do
these surveys every few years during the 1990's. �
OtheL necessary components of the estimates are the numbers of ersons Iivin `
and numbers of occupied units and persons living in manufactured housing parksn Since the rters,
g. �' P q--
1970's we have annually conducted telephone and maiIback surveys of all group quarters facilities '
in the region. Group quarters include colIege dorms, nursing homes, miIitary barracks, ou
homes, shelters for the homeless and jails and prisons. The Census Bureau also includ�11�n
quarters where 10 or more unrelated individuals Iive in a unit as group quarters. : g
Each spring, we sutvey managers of aIl manufactured housin�park owners in the re 'on.
are able to give us counts of occupied and vacant units and an estimated number of� Most
the park. We have collected similar information for two decades, residents in
The Counc�'s primary purpose in doing the estimates is to compl with our Le '
The Department of Revenue has used the esttmates in local aids calculations, HACA(Homcstead
arid Agricultural Credit A,id) formuIas, and in their distnbution of fiscal disparities. The formul
have changed from year to year, from the estimates significantly affecting funding to cities in the
1980's, to play-ing a less important role in the formulas in the last few years.
'The CounciI uses the estimates to monitor whether our own forecasts are on tar e�. B
and county 1eve1 governments are frequent users. They cite Council numbers when a oth city
State and federal funding. Their own internal planning is enhanced by havin a time Pl�g for �
annual numbers; such areas as recycling plans, sewer flow calculations are b ed on these.�Tnf
areas where services, such as police and fire protection, are shared by several munici alities w
provide numbers for forecasting of costs per resident, and other related pIanning activfties. e
The Research division regularly distributes the estimates to private businesses, developers,
consultants, government agencies at all levels, the media, academic institutions, and others for
numerous purposes. They continue to be one of the most requested items in our Data Center.
Whenever possible we supplement the estimates with information from other so
respond ta data needs with the most current data. �'�s to help us
' " METROPOLITAN COUNCIL
' Mears Park Centre, 230 East Fifth Street, St. Paul, Minnesota 55101
612 291-6359 TDD 612 291-0904
_
�
DATE: July 27, 1993
TO: Council MUSA group
FROM: Michael Munson
SUB.TECT: Response to forecast issues raised at meeting of July 20, 1993 �
•At the 7uly 20 meeting of the MUSA group questions were raised about the forecast process,
specifically instances where a ciry requested a lower forecast. The Council's method relies on
allocating an overall regional forecast of households to subareas within the region, beginning with
quadrants and ending with traffic assignnients zones. The intent is to replicate the actual
development process, but in a simplified and understandable way. We can never achieve
complete_accuracy because there are forces at work in the development process that can not be
fully understood, and certainly not predicted. These include major economic and demographic � -
shifts, changes in tiuyer preferences and the fact that there is not perfect Irnowledge among
buyers and sellers,nor do they act according to a single, rational set of crit�ria.
To allocate to quadrants, past trends are used. The next step is to allocate within quadrants to
planning areas. This step incorporates Couneil policy, as well as,past trends, land supply (our
measure of vacant land) and densiry (single family/multifamily mi�c and average households per
� acre). We use a similar step-down procedure to allocate to the ciry-level,but rely on local input I
to refine our rough measures of available land and density. Cities that are approaching fuIl
development usuaily have a very good handle on the su 1 of land and how it '
pp y �vill be devel ed
. oP
(t)ecause they control it). We discuss with cities the possibiliry that their densities may go up and
that there� may be redevelopment as the supply of iand becomes scarcer. We have usually been
ab�e to reflect this to some degree in reaching a compromise, but the cities are in control and
they are acting on adopted ciry plans and zoning regulations.
Over the next decade or two, Council forecasts which have been revised downward in places such
as Coon Rapids or White Bear twp, are almost certainly going to be more accurate than our
original higher numbers. Further into the future these areas may condnue to grow beyond
current local expectations, but not to a great degree. This wouId not have much bearing on
current policy co�siderations. In places such as Andover, which has considerably more open land,
the possibility for change in current local expectations is greater. But thaz would still require a
change in local policy. Without direct Council palicy,we have been reluctant to make forecasts
that run counter to local policy in cases where tocalities can affect forecasts (not lobbying for
significantly more growth). Cities can limit residential grawth but they can't make it occur. �
The Council, as a matter of policy may want to raise regional densities to reduce the outward
spread of regional growth and the infrastrucrure needed to serve it. The minor changes in
forecasts we've made in several northern suburbs would nat significantly alter regional
infrastructure future needs. Major changes in densiry, either by greatly reducing lot size or '
increasing the proportion of housing that is mnitifamily would be needed to do this. Of these two
approaches, the impact of inereasing the multifamily propartion would be much greater. The
issue is how such a policy would relate to local government policy and citizen's housing
� preferences, within the overaIl context of regional housing demand and local housing rnarkets.
r � METROPOLITAN COUNCIL
Mears Park Gentre, 230 East Fifth Street, St. Paul, Minnesota 55101
6I2 291-6359 TDD 612 291-0904
:,3
DATE: August 6, 1993
TO: MDIF-MUSA Team
_ . ...�_FROM:----�-- --Bob Davis. ----------- - -_ __ —_
SUBJECT: Council Land Use Survey and the MUSA Land Use Process (Land Supply & Land
Demand)
� THE PROCESS
� The Council's land use survey process uses 1"(one inch) to 800' (ei�ht hundred feet) scale aerial
photography taken in the spring of 1990 as source medium for deternzining the current status of
development in the seven county Metropolitan Area. The spring 1990 photography corresponds
�with the 1990 spring (April) Census data. The aerial photographs aze rectified (conected) to the
State Plane Coordinate System (map projection) with fiducial (location registration) marks at each
of the four comers of the photographs. These location control marks allow the land use
�nformation which has been interpreted on the ghotographs to be digitized (located and
quantified) and transfened into the Council's compucerized Geographic Information System
(GIS). The GIS land use system contains a combination storage file of four separately obtained
sets of information: land uses; the MUSA boundary; counry and municipal boundaries; and,
� wetlands information; on an integraxed map system. Once this information is entered in the GIS
system the data can be aggregated(interrelated) in many different ways. The key to establishing a
worka.ble system is the editing process to provide assurance that the data from all sources is
properly represented and accurately recorded.
LAND USE SURVEY CATEGORIES � .
Generalized Land Use for eleven separate categories is interpreted, outlined and labeled on
mylaz(transparent} overlays from the photographs. The land use catebories are singIe family
housing; multi-famiIy housing; farm buildings (including the residence); commercial (retail and
service); industrial (manufacturing, whoIesale, construction, gravel pits); industrial garks land
not being used; public�and semi-pubIic �overnment buiidings, schools, hospitais, churches,
institutions); pnblic and semi-public land not being used; airports; garks and recreation areas;
major freeway right-of-way;and open water areas. The Council land use survey does not directly
identify streets, alleys,roadways, railroads, and other narrow rights-of-way. These aze included
with the adjacent cate�orical land uses (i.e. residential, commercial, industrial, etc.) the boundaries
of which are extended to the center of the right-of-way. Major railroad facilities or switching
yards are included as used land in the industrial category. The remaining area is classified
agricultural and other vacant land.
The National Wetlands Inventory data is a separate GIS file obtained from the State Department
of Natural Resources which has been integrated in.to the Council's system. The Municipal
boundaries come from the 1990 Census file. �
I'f � The Council urges Iocal communities with detailed •19901and use surney maps and data to work
I
.. ��` .v
� with the Research and Long-Range Planning .staff to improve the quality of the Council's Iand use
information. The Council will accept local documentation for certain uses that cannot be seen on
aerial photographs, such as legally designated drainage ways,water storage and floodplain areas
not included as wetlands. Also, it is not always possitile to discern the specific boundary of
unimproved passive, but used, park areas (azeas not in ball diamonds, playground or picnic
areas). Such areas will be classified in our survey as used land if documentation of their use is
provided by local units of government. These used areas should not be land-holdings for
possible future parks designation, but passive areas already providing a recreational function.
The Council forecasts the future need far aIl types of public parks and recreational land needs
and if we accept "probable" future recreational land areas as already "committed" to such purposes
_ _ we.should be.reducing .our park and recreation "forecast-factor" accordingly. ______ __
USED LAND-VACANT LAND GUIDELINES �
When interpreting basic land uses, particularly housing, commercial and industrial areas we
� include the buildings,parking areas, adjacent streets and aileys,obvious storage areas and
� discemable adjacent lawn azeas as part of the used land. Unimproved iand which is under the
. � same ownership as adjacent used land ponions on the same parcel is classified as vacant land
when computinb the land supply inside the MUSA. This often occurs in industrial parks and
larger commercial zoned areas as "excess"property. The Council believes that these lands will
either be utiliz.�d (developed) in some fashion by "expansion" of the use they are cunently owned
by; or, the lands will be (at some future date) sold-off for other uses if they are not needed. Such
future expansions ar additional uses aze accounted for in the Council's future land demand
process which is based upon forecasts of population, households and jobs.
Some communities point out that certain vacant land inside the MUSA is "no#'on the market"
because the of an "unwilling seller" and should not be counted in the supply of vacant MUSA
land. The Covncil policy would only recognize this land as not being marketable if it were
removed from the MUSA land supply by official action of the community. The Council.can not
exclude such property(s) "on speculation" that the land is not available for sale.. If property
owners are unwilling to commit to either removal of the land from the MUSA or to put lands �
into "moratorium areas" for specified periods of time then it would appeaz that "landprice" �
economics is the issue. Council policy requires that such lands be considered part of the vacant
land supply. Such lands could inciude working farms, undeveloped land holdings, or ponions of
undeveloped land parcels under the same ownership as adjacent used property.
.
' . METROPOLITAN COUNCIL '
Mears Park Centre, 230 East Fifth Street, St. PauI, Minnesota 55101
612 291-6359 TDD 612 291-0904
,�
DATE: Ju1y 22, 1993
TOs Role oF the MUSA Groug
_: FROM: . Bob Davis and Barbara Senness
--------- --- ._. ___�.
SUBJECl: Urban Land Supply .. . -..
At the communiry meeting following the tour oF the northwest sector of the region, Terry Forbord,
Lundgren Bros.,su�;ested that 1) the MUSA drives up the cost oF land and 2)if we have a MUSA,
the Council needs to create a cammission to better reguIate the supply of urban land within the
region. Mr. Forbord suggested that the Council needs to adjust the available supply on a more .
frequent basis to respond to actual conditions in the marketplace. This in turn wouId heIp to temp�r � �
the cost o€urban land.
In response to Mr. Forbord's first comment, studies that staff has reviewed show that responsible
gi'4wth maaagement actnaIIp saves money, Further,recent studies of�rowth management processes �
have not indicated that reasonable urban growth areas drive up the cost of land.
AlI urban areas have an edge or boundary within which urban services needed for intensive
development are provided including public sewer, a greater network of roads and a higher level of
� neighborhood-type services (police, fire, schools, etc.). Within tlus urban area, the costs of services
are greater and the resulting land pric�s are naturally greater (reflecting the value oF such services)
than the cost of rural (unserviced) land lying outside the urban service area. �
The CounciPs IvIDIF takes the concept of designatin; an urban growtfi area a step further. It does
this by establishing poIicy directed at caordinating all necessary urban services within a defined urban
growth boundary (MtTSA) for a spec�ed period. The amount of land within the MUSA is directly
related to the anticipated(forecast)rate of growth. Coordinating seivices in an orderiy and economic
manner within a contiguous, planned urban area linked to reasonable population, household and job
forecasts allows the region and i#s municipalities to plan for service systems with some assurance that
the people and jobs will be forthcoming to pay for the costs of such service systems via reasonable
fees and ta�ces.
As long as-the amount of.serviced ]and is reasonahI
y proportional to the land urea needed by the
expected population, servmce costs can be expected to remain manageable. Further, as loag as
reasonably adequate Iand is provided within the MUSA,Iand costs (although obriously higfier than
those in the uaserviced rural area) wiII not be unduly impacted.
Greater than normal impacts on Iand costs are ofien brought about by the need to saIve problems
caused bp low density,unplanaed exurban developmen� The further the urban infrastructure must
be extended either to solve problems caused by unpIanned growth or to serve an oversized urban .
service area (on what ini#ially may be cheaper land located on the fringe of this larger area), the '
higher the costs for both land and services for everyone in the area
��
i }
In response to the second comment about land supply, what Mr. Forbord was suggesting is actually
already being done under the Council's currently adopted NIUSA procedures. Even though the
MUSA is established for a speci�c period, at present the year 2000, current procedures allow for the
available supply of land within the,MUSA to be changed at any time—provided that a community
meets the requirements for a MUSA nddition. In other words, the area inside the MUSA changes a
on an as needed basis, rather than once every five or ten years.
'The impetus for changing the MLTSA comes largely from local units of govcmment that have
determined a need for additional urban land supply. The local units ia essence act similarly to the
commission Mr. Forbord suggested in that they monitor what is happening in their respective areas
___ and.request additional urban land when they beiieve the market conditions dictate the need.
. .
� � C��NCIL Minn�°ta 55101
. ,�pppLl'r�ee�,gt.�'au�'
._ viE t Fifth 612 2���09�4
S
ats Patk Cent 61230�� 9 �D
Me 291_635 -�,,.�."-
,,� . . _ ._ '
. AU�t 1'1, 1993 . __ _ . - ""
pp,TE� , _____-�--.. �SA GLO"p
_... �ole of the ie���slVe planning
. Tp: 2on�ood� Comp
rRoM� � Qdi�ic�cion�
gequl�ed�dditio�s
gUB3��' fot MUSA �bet 1991� 199fl
ece ents fsOm
teGe;ved D in�ten' Ueste� �492
plan Re�'s'on � fiVe`I 1996-2d�0) req h e�ret,
and phas�II� ow
NppVE� 42��-5, �'etall �ot.Mvsp,e,cp�sions in cu�ent land 5"PP�'
A Ei1e 1 u�t�d 5�9 a� and and
ReEertal a Sta�ing P1an b�e�a�a�and dem must
e�t ptoposed 199�_1995) req system • the city tha
s
-rne am ea�201�- Ph�e�uld be)uStiEe and tcansP°Itation �e ame�dm�n�t�1 a t a�fi�ana�Y�is �
the Y a�l astie
co tes. .�'e$e adan imPact on the$ew che city can Pu�of �pp acs o��s�ort�Pletednces toppeciS
a� teSult ln e beE��th�he ex�ePtto 1 M
Woulcl �ha�ch its oY a Y
a�
cil tecon�n'endanslon Iequ�ne�1and Uses�l�he ity T�`�inspe�tor cettified b`�the
-t'he CO"n �,JSA eXP the P�an adait�on, nla11y bY an
wichdta„' all M tiat imPact edule. Xn blen
tn anomF�ementation sch ecte�aL least
� evaluates S stems are t°be lnsp
a�tee Up� site `/ � P,u�Ust� 199��
chat all o�" the city• 4�� �ndus'
$ed by �an 199�-2014 �Ie�ei�ed ential,
ana licen ;Op cesid e Iv
m rehe�s�Ve Y �teSe�austnalland"'nth�n th
o���0 e
�L�I�� 14859'S C�, p �hz �.1,7SA ae�e1opabl
Retetta\ file � addition tO�unt of�a�a°t Guide
o$ed an
e am "'rth
ent prOp that th .. ; QVe the atea �G af $e„Vered,
'I1�e a na a e ana�ysi o aad tlon v�'as juStiEied- its plan to te�e the amaunt uate to�,�cor
'fhe\a uate ana n �►od��J uest s�n �han adeq . u1tant se
was adea ea that the ciryexPansion Te�e city is�°Leddltian,th�t� attute
ecommend ��SA ,rnt�i�n a ubstanttal dep
�e Council t from t�ucten��y a�a��h che Ptannin�a��P+�e t�S
tTial� i
5. Ind`�s alland U u .
atea able industn evelopme�t thtae elopment wo .
d�velop dust�ial d from the olicy 4�a�'s.
ancicipa�ed in imPacts wasteti*►ater P pctobet,
ana �tansportation ���dment �Te�ei�e� ,
nc�l s tsansP°rcacion and plan Council te�ocr
C�u q CamPxehensive �area. 'I'he to t�tn�t t�
4 `�eal 2� utban seM
L�lASK`�' 15005- to its 1p0 a��e exPansi°n and
�ile � add ld�emove ch�
Re�ectal osed t°
e amendn'ent PI� ame°dmen� a°VV`�'�Tp
�y th�
'h city 'eWe� �o�,' co the Chas
�� SanitatY
Dq yT� .
Repen'a!�e ��8
�4-3
°Pen Plan a'n�n�me � �mpr�h�nsive plan `� _}
a��a�enlao Cha transpo aPosed a� Upd �pdat� (rece��ed M
The C°uncil rec mp1i� °n. Ic also r�9 ested Plan S goals arch, 19g��
Cu�en f '�'arranred a�nde�that th � a�d 1,4pp rodhe licl� for ian
� U ban spli��Bf okl�re�a� r!Fe, based on regLest fot� �SA tn rhe Guid dr� and
fOre�ast��ice areasyn Par1�, �aland suPPly�an fact tha��nsfon of the �d�ea�
£or a �d b'ro�� °F those S ple Gro�e d land d gional ne �USA inr
dur• n e�ensio rO the e�t�r co and �� �mand ed ha� o.rhe G _
'n� the plann n f rhe M�SA D00 �e Co ities �,o j�h� ind��a� �r In oth�t ecln demons�`�ea � _
FDE`'Y PRAI �pe��d. h�n it can 6e de1ndi�ted t�d the �andrahe SuPPIy o �ornmuna jed
Chde hprai�e Re�rra�N��SSErY mOnstrated tkatlde�ns�°'er a iedu equ I�d o s the
a� �en �efen'a1 �le �1264- S'roaal ne�d q esr from D en'e
urribe�� Eder Pra• . �le j1594-7,7De�brna ation o�.MU e�sr� °r �,ill e�'st
I �f a�res aS1Parra F Chanhass�n Q tion o�.MUSA (r�rc�l�Ive�fiebrua
Re�RI GR��HEt he agreement to�d tO jlmrt th • e�Februaryry19g86�
�� la,�g2_3, M�Sa TS consrr�ct the r�ke an Se��e a 6)
V985.c1 h°e�Inally Subm. �ansion Request r �n �rzterceP ort� an a�reed �
SUS� jar�'e, c,n9 a�sr �►'as ;n nsn amendme (ecely�d rulY, 19g� P��
(13�2�d in Feb�ad 1and Sup��r�nt with he De�an�the�I , )
i`nPart � add onl IY, 19g6 at Y. '�thoU� an eloPlne rys MU'S
apProv �n the mey poliaanes the c'��e Y d�e nt Fr�am�e'�' A becaU�� 1�b
ed• trO �0.the qvest, �nred �rk b a�res
���L sewer SyStemSA. 17�e ame�sUbn'��� nee�. 1�et `�'°vl��ro rrlber, .
ReF�n'al FjMp . . �e C�unc,7a e�nt was foundeque�t Pf ne��m�n�a as
�� am�n�me 407.?, q40 Acre � a�- omme�de� rha�rheva h� SUbStan ent
� c P �sr n � ceived pct rrre �ment be1
ea• rhe Co nt prOPose . � re n
�a�r� fro un�t�r��or� ° add 44p ober 19g
elo sysrem and M�S`9 be�de�rhat rhe�er t0 the 11•1'Ijs � 1�
c Pment G�ide��s1ucY PI t a��eParru� a�dit�on�'i�P�anfam ne develoPme
ra�Fle 15407_� an' re From th�nstitu�ed a Sdmenr 6Y re nt oFa bus1
�endnte '. 1�p Acr�� a . COunctl S Water tlal�rnPa�o�he a�ditionak
cO�sine srPo 1Pose�Io add 1 p ns�on �re�elved,��ne R��ur�e$ Ma areg1pnal!
li mmerc�al anm�t��r 6us�n 20 a�r�s ro th� , 1992� g m�nt
� asc�ti,,,�8 °£ jhe Wsrrial and �� Co�n 11 ba�Sen'ice a
arer�°'�'S; a asce u,ater Ses t� t�os� re�onrrn�ndeea and to�ha
nd tO adopt nro d�Rt�ndl nent �h the the ��t3' mod lan�us�fro
ance ro 1 � Policy � COunc�s �3' its plan rn
mPOSe f7ow e tricti n►�rh g ne at Policy�
� � S and dejnonst at�y
! l
how it witl implement a monitoring mechanism that will ensure compliance with flow restrictions for
, the MUSA expansion area and_the area already in the MUSA
MAPLE GROVE
Referral file 13187-9, Gravel Mining Area Plan (GMAP) (received September, 1987)
The amendment proposed a plan for the reclamation and redevelopment of a 2100 acre gravel mining
_ _ .area.in the ciry__.The city requested that 750..acres.on the.periphery. of the mining area be included
in the land suppiy for the year 2400. �-
The Council recommended that the city modiFy the amendment to designate only 150 aczes of the
900 acres in the peripheral area as part of the year 2000 Iand supply and to show sewer service being �
provided through existing metro sewer facilities. The Council also concluded that a net addition of
750 acres to the year 2000 land supply was not warranted at that time. The Council also concluded
that the city should show regional sewer service provided through existing metropalitan sewer
facilities already serving the city.
MEDINA .
Referral file 15093-3, Partiai Comprehensive Plan Update (received June, 1990}
The amendment proposed to add nearly 1,100 acres to the urban area. The initial draft review of
the amendment required a modification to remove all of the proposed addition. .As a consequenc�,
the city withdrew the amendment and sub�mitted a revised plan update requesting 170 acres within
its urban area. The ciry agreed to comply with the Council's new rural area policy(which the Council
i� could not require because the city submitted the plan before the rural policy was adoptedj, the
Council agreed to allow zhe addition.
vITNNETRISTA
Referral file I2884-6, South Halstead Bay (received July, 1991)
The amendment proposed to add �70 acres to the VIUSA and to,recognize the new 292 acre Lake
Minnetonka Regional Park. The staE`f recommended that the city modify its amendment because the
proposed pian subscantiaily departs from the Council's Water Resources Management Development
Guide/Policy Plan, part 1. The Councii reversed the staff recommendation and atlowed the addition.
RAMSEY , ,
Referrai Fle 138�4=5, 2A5 Acre Expansion �received September, 1990)
� .
"I'he plan amendment proposed to add 205 acres•to the MUSA. The Council approved a previous
expansion oF200 acres (405 requested) in.Tuly,�1989 (Referral fie U834-3), with the understanding�
that the remaining 205 acres wvuld be.granted if' the city adopted policics ro limit development in
the rural service area, and if the city��'valutted tt�'img,act of planned land uses on TH 1D.
In the review of this amendment (13834-5) CouAcil required the city to modify the amendment
because the city proposed planned land uses that would impact TH 10, a metropolitan highway. The
city was required to demonstrate how it would mitigate the impact of the proposed land uscs on the
_.�
3
. . . � �..�� ...>
metropolitan highway system, and submit quarterIy reports indicating the number of residential
equivalent connections to the Anoka Wastewater Treatment Plant.
SAVAGE � `
Refenal file 13087-3,Northwest MUSA Expansion Request
____:
The plan amendment proposed to add 2 400 acres to the MUSA. The staff report indicated_that the___.
. ___.. -- _..__...� _ _ .
city could demonstrate a need for an addition of 1,180 acres based on household and land suppty
projections for the next decade. The staff recommended that the amendment be modified to reduce
the MUSA expansion request to no more than 1,180 acres, since the Council will not approve an
amendment that wiii result in sewer �7ows that exceed the cagacity of the Savage lift station.
Subsequent to the initial staff draft, the Waste Control Commission determined that there was no �
capacity problem at the lift station and staff had to revise its recommendation accordingly.
�
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Regional Blueprint Report
Jobs/Re ional �Economic Strategy Group
g
� Committee of Whole M�eeting
� �
C�ctober 5, 1993 -
` Chairs:
Leung
Williams
Council Members:
Ftower
Howe �
Simonson
Advisory:
Coltins
Fulier
� Schneider
� Staff: , �
Byers
Freshley
y. .,� . . . . . . � � . . .. .
a
.;���� � . . � . . .
Overview
The Twin Cities economy is generally healthy and has been so for the past 20 years. Employment has
grown at a steady annuat rate of 2.7%, ranking the region 8th in overall grawth rate among the 25
largest MSAs.The economy is well diversified, looking very much like the national economy. As a
consequence, the regional economy parallels swings in the national economy. However, the
unemployment rate is consistently about 2 percentage points below that of the nation. Furthermore, the
Twin Cities ranked Sth in median family income, compared to the 25 lazgest MSAs, irr 19$9.
But the region cannot afford to rest on these laurels. Mazkets are changing and the region needs to
adapt. Structural change — the much discussed shift to a service economy -- is going on in the US
economy and in the Twin Cities . Along with this shift, overall economic grow#h is slowing. National
and international competition is becoming intense. And the Tvain Cities is somewhat isolated,
particuIarly from the international mazkets.
Furthermore, the benefits of regional economic growth are not distributed equally within the region.
Over the past 20 years 80 percent of the commerciaUindustrial growth has been concentrated in 20 of
the 189 cities and towns in.the metro area. Unemployment, while 4.6% for the region as a whole, is
15.2% for minorities in Minneapolis and St. Paul.
In this changing economic environment there is a need for overall economic development planning.
Currently there is no regional economic growth strategy, but rather a coliection of individual
community plans and individual business decisions. To meet the challenges of the region's future,
� governments and businesses will need to work together, not in competition with one ariother. They
will need to work together to promote overall economic growth, to solve regional problems and to
share the benefits of these cooperative efforts.
Issues
No regional strategy promoting economy.
The primary mover of economic development is the private sector--individual businesses and
entrepreneurs in the metropolitan area--as well as this region's unique "business-mix."
Actualiy, there are clusters of inter-related industries--aka a fulty diversified business-infrastructure:
quality printing, trucking, advertising, insurance, banking and legal services are all important
components of a good business climate; solid and stable financial resources are essential; as well as
central offices of businesses with multi-state networks.
Major piayers in �tt►e overaU business climate also include the unique mix of local non-profit and
public sector players: a majar university and many colleges; private support to enhance the region's
quality of life through arts, culture and recreation; and good qua.lity, efficiently maintained public
infrastructure; and a tax/regulatory climate that does nat unduly restrict economic development. '
Currently there is no regiona( or international economic growth strategy. Communities and businesses
in the region do not appear to view the region as one economy.competing against other regions in the
U.S. and around the world. State and local economic development strategies focus on increasing local
� jobs and taxbase. Business-led strategies focus on the quality of the local workforce and on removing
1
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y ti
barriers to development. Across this region, a dialogue about how we, as a region, should deploy our
resources to move forward is just beginning. �
A competitive economy reqnires up-to-date, affordable infrastructure.
Our "systems"for goods, people and ideas movement, i.e., highways, river, rail and air facitities, and
telecommunications systems,are our intra-regional and external links. Connections between
employees and their employment are presently dominated by the car, but the future may require
different kinds of both transit and communications networks. All economically competitive regions
have adequate airpart facilities--to link them ta international markets. An analysis of the air capacity
needs of this region is an important part of the dual track airport planning process.
It is atso important that there is some sense of stability and predictability in the kinds of the<quality
and extent of the infrastructure for moving goods,peaple and ideas. Businesses are less likely to
select a site for expansion if there is doubt about future accessibility of the site. Places that are in
limbo are not attractive.
And finally, we must ensure that the region's citizens get the most return for their collective
"infrastructure° dollars. Having a good business tax climate depends on getting the most value for the
region from our infrastructure and other expenditures.
Internationaily competitive workforce crucial to region's economic future.
There appear to be two major thrusts in discussions of the issues in economic development- the need �
for jobs (that pay reasonabty welt) and the need to have the work for well educated and adaptable. _
The availability of a labor force does not necessarily mean that there will be jobs. Likewise the
availability of jobs does not mean that unemployed people in the region will fill them. Any long-term
approach needs to address both parts.
There are growing concerns about the quality of the region's workforce:
• • if we want to capture and hold higher wages, we have to have a higher quality workforce; .
• there seems to be a growing number of"discouraged workers"--especially among minorities
who have been harder hit by economic transition; -
• many of the region's new residents (in-migrants) do not arrive wi#h good workskills;
• not all children are getting a good starC--growing poverty means growing number of future
citizens with limited productivity and participation in community.
Use of pubIic doilars to solve regional economic development problems needs to be targeted.
While overall the region is in good shape, certain areas (even within cities) and certain population
groups are in very bad shape. The benefits of economic growth are spread unevenly around the
region. In a private sector driven system, location decisions are driven by market forces and are not
likely to be spread evenly. There is a need for some public invoivement in these areas and population
groups. However, the "governmental" solutions are often blanket solutians, driven by legislatively
2
Theref�te_
_ magnitude of
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unt�e Se�eT��' °c bein�used t°
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t o blen'� Ther e is a n W hen app
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F°rt S that� rop°$ed ana blish a St�`te$Y� on�toe��r or
beit+g p „�e Council m � e
t�e aollac oa1s�OT
tn oXaeY � �on W iae
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evatuate s om�c g°alS are e�onom about SP oals before a re gYeement
al econ oals fot reg�O is no �onsensubiish a$et°f g omY� �e�eta
Region �iculated g �ies��lse tial of on Ye��onlOuld be Stti�ing tOwara• e
e cut=en�lY no oups and��en eSsen
There � do othex � achieve�em• the n°tion �te aU sh �me Thece �T
omY �e goin�to a ed.In °rdeY ha tha is the a�re�tion S of the S�teg�l�� ed by b oa�
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w h a t w e �a e v e l o p �bta i n e d t ting Pr O�r e s �n o m Y � �i m P°�"t
Strateg`I �° tt►nst be �e me�s of evalua �g�onal Bo�i as
across the Tegl�n
�SS of t�je un�ii sttategies•
oals
also PrO�be measured�ep of sp�tfic Co .
Me�urable g of o�tco e�t program• .
of outcomeS t ,c �e1a4m
�°kinds oais ai►a evaivation de . ROle
regional � e��tive econom Cou�C�l ,S buslneSs
,��xegion
efficient �'a O��t2lD tot. �o��rnment'S xole in
MetX�l�. civate sec comPete--
et;-ativen P retent��n• t�d
a�'�1'm�k exp�'S�on�'o aer to &rOw' a futute bus�ness
. b�ed on , o�atiot►� e�s in �ur�nt a°
om��futut� �s ation, �°" nom`/ n $er�es
- � �S econ business cce the e�O Gtuj wh�ch Stem•
� The regionOuld stimutat n founaationskfh�e �nfcas a���Yegulatori' sy .�om�e bus�Toflt �a .
� climate Sr �est� wot d a,TreU b �e non P
is t� 1° � edu�ated s�ly cotne the�tu�
th�s futore uch�itab�e�System�� w�U neces at also 1ie in
dations S 1�vitalitY en�� tegY is essent�ale�g�on,�'e co
f°u'� a stabte,� econ°m �omp°n th E
needs� ional �� ln��uaes t� Srra tta�.�g`I�O�' tors`N°rk t��
role for re$ �limate ional econon' {ng
aeveiop a Saoa Pubiic S�un�il brin�s a
' t,e�e piim� ion s"bus�neSs �eS that a reg �� tofit e Co divc
V,1h �e r g cii belie ra�►et non-P l)� brin�
mun�ty, he Coun HoweveT' 1Ous bus�neSs' �Yee r���se CounGit�
�om ate�e opolitan a�t ��on S�� �nvoi��f°t � and 3)� �T of xoles=
�ublic do£ �hat th e ould be tetcr► a nutn
vitality
th enSUreThe Coun�il Sr �ook to�►e 1on��i1 may pta�
the C�p°he bottom'°p� Coun°il��' olitan d consen`•
o Cou
__fro»> 2)the �e r/ietxoP cssh�4s at�
eYsPective,��S�pacitY, build P�'
ce$�onal P e�er I° es� Selvin$�
Take gtoups to� d�1ac►fi' regte a�logue�d pt�blem
identify � �or facil►tat .
' �n�ene � � Su��esses+
2• PROVl • reg��'tor, n1easuTe and tepo
mon'
• �e action•
Ident� i; •
.` Id
de 3
attE
° esse �
yi aeciz
� telecc
__.._. __._�___ — _
_ �__.___._..-
The fotr,,._ . 1?0._� _ _
Take action to address identified regional issues.
• Prioritize regional infrastructure planning
• Develop legislation for new tools when needs are identified.
IONAL EC4NONIIC GROWTH AND MOI�ITOR PROGRESS
5, ANALYZE REG
TOWARD ECONONIIC GOALS•
Monitvrtmeasure/report
• Ado t the five goals from the Nlinnesota Bluepri��5�he�re the reg on lis�nowea
P
measures of these Doals. Produce a report that sta
I; �o years) on the progress of
Monitor selected outcomes and produce a report (every
� as measured by these �oals.
the regian's economy--
i uses re ort to analyze effectiveness of implementation efforts, and rnay take
• Counc 1 P
on (as an emerQin� issue) problemsiissues identified in the biennial report.
• The Council wiil develop measurable outcomes for anec�nean Q goinglbasi-
developed in this document and evaluate its pe�o�
� Take action _
' . e Council will amend its own workplan in accordance with these evaluation �
'fl1
outcomes.
�
,�r _.
'e�oa�
t o f r�
8