Housing and Redevelopment Authority Meeting
CAC Housing Assistance Funding
- Anika Rychner, Interim Executive Director Community Action Center: Want to bring attention to the number of people sheltering in place. Bringing out food to people who are sheltering from fear of immigration. Also have volunteers helping people bring children to schools. Want to bring attention to the impact on housing and increased need for housing assistance. Up until this past week, they were able to meet the increased request, but may have to make some difficult choices now. In Northfield, there are possibly 460 families who are afraid to leave their homes and may be in need of rental assistance. Want to partner with the HRA to help stabilize families in need. Currently have the infrastructure in place and currently serve 8,000 residents. The economic impact of housing is larger than maybe on the surface. The economic impact is greater than just housing, but also impacts wages, spending, etc. in town.
- Board member (BM) Holmes: Needs to recuse herself because of a professional contract with the CAC.
- BM Peterson White: We’re all wondering what the trajectory here is and nobody knows. Just from observing from my corner of the world, the increase of needs over the last several weeks, people are rationally becoming more afraid over time. From your report, it sounds like things are cumulative, and of course the longer people aren’t working, the more they need rental assistance. Do you have any reflections or guesses about whether there are sectors where people may feel more comfortable going back? Just want to emphasize, I don’t expect you to know, but I do think that as much as we can think about both the immediate need and how that might look in a month, two months, etc.
- Rychner: If we look at food right now, getting that out has been dependent on community members, but it is not sustainable. We have a proxy system, so anyone who would usually come but cannot at this time can name a proxy. I think nobody does know how long people will be afraid, that’s a very personal thing. My hope is that as immigration actions lower, more people will be more comfortable. I just know that it will be more costly if we don’t address the current crisis.
- BM Zweifel: I also know that by keeping folks in their homes, we’re keeping children in schools. I’m curious is you just know the economic impact of one student leaving the school district. I think that’s an important piece to couple with the overall economic impact of losing housing.
- Rychner: I don’t know the exact number, but I also have heard about that consequence.
- BM Ness: I’ve heard it’s about 10,000 per student.
- BM Peterson White: Do you know anyone at the state level who might be able to assit with this?
- Rychner: I’ve heard rumblings, but nothing concrete. I’m hoping that by keeping people in our homes we can gain more time.
- BM Zweifel: How is this better than an eviction moratorium?
- Rychner: I think there were unintended consequences of the eviction moratorium during COVID. I think it’s more like kicking the can down the road, if you don’t address it now you just have to address it one month, two months down the road. If we’re just waiting 2-3-4 months, it really won’t get any better. We also have a lot of assistance from the state to keep people in their homes.
- BM Swanson [student]: Could someone explain the concept of an eviction moratorium?
- Housing Coordinator Hanson: Makes it illegal for a landlord to file eviction proceedings on their tenant if they haven’t paid rent. It was implemented during COVID. Like Rychner mentioned, many families then didn’t pay rent for a year, but then had difficulties getting caught up.
- BM Peterson White: I know from experience CAC has a ton of navigators, or maybe another title, but folks who might have trouble with landlords or are struggling to get an apartment, who help to get a good lease. I know you might not have free hours, but are there ways that a navigator type person might be useful for negotiating with their landlord?
- Rychner: Every person now meets with a navigator and housing assistant, and they will also meet with the landlord so that we’re all on the same page that CAC will be paying it. There are also opportunities for asking families what they can contribute to the cost of utilities or rent and looking at payment plans. This is all on the regular, but ramped up now.
- Chair Sokup: No more questions? Looking for a motion.
- Zweifel motions and Peterson White seconds.
- BM Zweifel: Thank you and the staff for the presentation and for bringing this issue up. I think it is important to keep our valuable community members in their homes and am grateful that we have the opportunity to do that.
- BM Peterson White: So profoundly grateful for the work that the CAC has been doing and for keeping our community together and standing in the gaps that we have. I appreciate your mention of the economic impact of a family, I think it’s probably underestimated. The effects of not being able to go to work, school, etc. I think it is good for us to intervene now because the negative impact has been tremendous so far, and I know many of us know that, but I think it is good to know what the effects of even one member of a family not being able to leave the house and go to work or out into the community. There are a lot of people mobilizing, mostly quietly, and I am glad that we can take this step and for helping us see what a wise investment this is in our community.
- BM Ness: I think this is a great way to use reserve funds. We’ve got a 1.5 million and this is just a fabulous way to use them.
- Chair Sokup: Thank you for the work you’ve been doing and for making this partnership happen and add more resources at a time when they are needed. Hopefully you don’t need any more money, I know that sounds negative, but I hope that soon people will feel safe enough to return to work and to school and to life. Rental assistance is something that I hope the state will prioritize this session, it’s too bad that this is not a time when there could be a whole ton of change. It is life-shattering when someone loses their home, so I appreciate that we are able to help however we can.
- Vice Chair Beumer: I agree with everything everybody here has said. My big question, I was trying to figure out how to word it, my question is, if you deem that there is need for additional funds later, is that something that we’re open to them coming back? Or is that something that we make an amendment to increase the funds now? Is that helpful?
- Housing Coordinator Hanson: For clarity, the HRA has already committed $50,000 this year, so with this it would be $100,000 for the year. We started out at $50,000, but we have not talked numbers. Perhaps Adm. Martig can add more.
- Administrator Martig: Because the council is the HRA now, I think we are flexible in adjusting things in the future and there will be a lot of communication, should there be a need to come back.
- Vice Chair Beumer: With that being said, I just want to make sure the CAC knows we are there for them and don’t be afraid to come back.
- Rychner: I would say, for all the staff that are taking hundreds of calls, we appreciate knowing we have your support.
- BM Peterson White: I want to thank Beumer for raising this, and we know that this is probably one of the best investments we can make for this community. One of the benefits of having the council be the HRA, it makes it easier for us to address things like this.
- Chair Sokup: I thank everyone. I don’t think there will be an instance were I would not vote in favor of this. The only concern is that if the HRA is not able to do other housing issues. I would like to have a discussion at some point about where the funds come from, but I want to make it clear there is no better use of funds than keeping people in their homes.
- Vote, all except Holmes in favor. Holmes abstains/recused.
Administrator Updates:
- House Coordinator Hanson: gives updates about various projects/programs in process.
- BM Zweifel: Thank you for following up on the clean-up program. I’m really hopeful that we’ll help people clean out what they want in a responsible way. Partnering with Malcolm Watt.
- Vice Chair Beumer: I’m not very familiar with the Alena property. How did we come to own that property, we’re trying to sell it, but what happened with that one?
- House Coordinator Hanson: During the housing crisis in 2008/9, the opportunity to purchase two of the townhouses came up that the HRA took up. We would keep the properties rentals and prioritize families going through foreclosure, the idea being to keep children in the school district. Fast forward many years, we still have these properties. We aren’t set up for long-term landlording, so the HRA as a way to become more efficient in our mission decided 3 years ago to offer these homes to the existing residents first. One family was able to attain the financing needed to obtain the home. The other family decided to vacate, and we put the home on the market.
- Vice Chair Beumer: Is there any way that we could get a look at it? 101 days for a townhome priced as it is, seems unlikely. It would be nice to go through it with my builder eyes to see it.
- Hanson: I can reach out to you after the meeting or tomorrow morning.
- Chair Sokup: I know you went to the MN Housing legislative update. Would you mind giving a brief overview.
- Hanson: The clearest message that we heard as housers and municipalities, is that currently development won’t happen unless there is some kind of city incentive to make it happen. That was a very clear message that we had heard, especially in the realm of affordable housing because construction is so expensive right now, but the tools that are needed at the city side does equate to financial, whether it is a subsidy or tax exemption, need to be in our toolbox and sharpened for use. What we learned was that this is a policy year, not a budgeting year and it is unknown what policies will be changed or improved upon.
Meeting adjourned.
City Council Meeting called to order at 6:48pm.
Agenda approved.
Consent agenda approved.
Reports from Mayor and Councilmembers:
- CM Ness: This noon, there was a CBP? meeting. They are in the middle of changing bookkeepers so they have stopped their advertising so that he can get caught up. They’ve found some places where they can improve processes.
- CM Peterson White: nothing to report.
- CM Sokup: nothing to report.
- CM Beumer: Omelets were fantastic. Yummy Yellow River had their annual fundraiser, worked the event. Huge turnout, partnered with Open Door. Thank you for everyone who came and participated in that.
- CM Dahlan: Nothing to report, except I enjoyed the breakfast.
- CM Holmes: Nothing to report, but want to invite everyone to a public meeting at Carleton. A public meeting for a transportation hub, next Tuesday, 6-7pm in the Multicultural Center. They are looking to reduce traffic around campus.
- Mayor Zweifel: I will be at youth council tomorrow.
Regular Agenda
Sustainable Building Policy
- New Sustainable Coordinator, Sarah: Passed in 2019, we have a climate action plan, focusing on reducing greenhouse gas emissions and building a more resilient community for ongoing climate change. 86% of GHG emissions are from energy used in buildings. 77% of community commissions came from commercial businesses. City priorities: 1) reduce energy use and emissions and 2) resilience, durability, and climate adaptation. Purpose of the sustainable building policy is to support the climate action plan by reducing greenhouse gas emissions in new construction and large renovation projects. Key takeaway is that the current policy is not achieving its intended purpose. Today’s goal is to understand the challenges we are currently facing. Two main components in the policy itself. The first is the Sustainable Building Rating System that any building needs to go through. Second piece is the Northfield Green Requirements which has three parts to it about greenhouse gas emissions and energy efficiency and renewable energy standards, which cannot be changed without council approval. Presents on policy. Solutions to policy tensions. Short-term, we will need to propose an amendment with staff recommendations to come. Long-term, we will need to do a full review and update the sustainable building policy to create one that is achievable, clear, and locally appropriate framework. This is long-term because we will need to meet with experts out in the community. Because we have projects in process, it is necessary to make sure that the policy can work more efficiently.
- CM Ness: If we do not put solar into Excel’s grid, for instance if we were to put solar on the Ice Arena and only use it for that building, would Excel be okay with that?
- Sarah: The norm is to connect it to the grid. We are investigating a process that would involve attaching a battery at the back, but that would require meeting more with Excel, I do not have an answer for that.
- CM Ness: So if you put in a system that has more output than it needs, can Excel say no?
- CM Beumer: It doesn’t necessarily work that way. We work with an energy partner and one of the most recent one, the homeowner chose a battery system. That energy still has to go somewhere, there is still energy that has to be pumped back into the grid. I can only imagine what those battery packs would look like for a project like the Ice Arena, but in short it doesn’t necessarily work that way, the energy has to go somewhere. Typically, solar panels do produce more than the building needs.
- Adm. Martig: Yeah, Council Beumer covered it and this was before Sarah was brought in. That option is being reviewed. Short answer, it still requires an agreement with Excel. Not a solution, at least yet, but we’re still exploring the battery pack options. I was also going to note that there is probably about half a dozen cities that are facing the same challenges. These have been emerging issues and we’ve been prepping it and we’ve been building toward. If there are any other questions, Sarah might be able to answer those since she’s worked with those communities.
- Sarah: I would say that our general framework does align with other cities. Some of them have different pathways they can pursue, btu ours are pretty aligned with what other communities are doing.
- Mayor Zweifel: I have a question about benchmarking emissions. We just heard that we have the benchmarking, but it’s not leading us to our goal.
- Sarah: I will say, our data is currently from 2020 and we are looking to update it to 2024. I will say in terms of carbon emissions reduction, new construction is one of the places that early on in the design we can catch those systems earlier. Once those buildings are constructed, those retrofits are hard to do. We want to really target new construction with the policy and help developers to talk about it, look at it from their perspective, and speak on it in common terms.
- Mayor Zweifel: I know we rely on the green of the grid, but there is a gap in the efficiency of the buildings.
- CM Holmes: Thank you for all of this information, it’s very helpful. Are we, as we look at the Climate Action Plan, we have the goals for 2040, but we also have 2030. Do we anticipate that we are not going to be able to achieve our goals by then because of whatever is happening with Excel?
- Sarah: I appreciate that question. I’m hesitant to speak to that because of the data gaps. I would say I am slightly concerned about that goal. I think there are other policy approaches that we can look at, although it is a detriment to this community that we can’t introduce solar. Working with Excel through this problem is gonna talk a little longer.
- Mayor Zweifel: Thinking about Trump’s plan on coal plants, that will impact the greening of the grid, or is that too speculative.
- Sarah: I’m pretty sure the state has a policy about working toward carbon neutral plans by 2040, but I would have to double check.
- CM Holmes: Along those lines, geothermal was mentioned as a possibility. One thing was the make it easier to do development. I hold an assumption that geothermal is much harder and more expensive, but is that true? Or CM Beumer?
- Sarah: There is probably a gap in knowledge. I don’t know that a ton of developers have the knowledge about installing geothermal. I recently attended a MN Housing conference about geothermal and if you’re able to stack incentives, geothermal can be more affordable, but building out and making a roadmap would be necessary. The rebates from state and federal funding are available for several more years. It sort of depends on the development on a case-by-case basis. Carleton has a large amount of experience, so we’re looking at using that experience to fortify our own understanding.
- CM Beumer: Typically, with the geothermal, you’re basically drilling a well and then feeding the tubes back into the house. The ROI on drilling tends to be higher than solar, based on the expense of installation and the returns and paying it back over time.
- CM Ness; Do you know if the city has ever put a calculation on what the sustainability policy costs a building contractor?
- Sarah: I think that is difficult, because it varies by project. Generally, the research costs about 1-3% more expensive. In order to get that close to the 1-3%, the contractors and builders need to be more involved in why and how things are being installed. Troubleshooting that needs to happen on the fly can cause a difference in expense.
- CM Ness: I’ve heard from a housing contractor 10-15% and commercial contractor 20-30% more.
- Sarah: Thank you for sharing. I don’t have numbers for you, but we have someone who could get you those numbers.
- CM Peterson White: That is a bit concerning because of that big range, but there is something about the cost of construction or the cost of using the building.
- Sarah: I think it is a general, including design and operation. Contractors are really concerned about the upfront cost.
- CM Peterson White: And also, that contractors are not the only ones paying for buildings and inhabiting or keeping them up. But the up-front cost isn’t the end of the story about what a building costs. It’s a great thing to try to quantify, and it is also true that people building the building and someone focused on sustainability will have different perspectives.
- CM Beumer: One of the big concerns I’ve had is the policy gets attached to, I don’t have problems with it being attached to public buildings, but where the line gets crossed is we have people coming in asking for financial assistance via TIFF, grants, funds, whatever that may be, they’re asking for assistance and then we attach a policy like this to it that forces them to spend more money. This policy has been one of my angst type things since I’ve joined the council. The other problem I have is that we’re trying to get more housing in town, whether that be apartments, multi-family, or single-family housing. When we have policies like this, the builders go to Dundas, which just happened. If we want to achieve our affordable housing plans, we need to keep an eye on this because this detracts. I’m sure there are people who haven’t moved forward with projects because of policies like this and I would be interested in looking at it. I’d look at a moratorium on this policy, since it’s not actually working, and then getting some of our strategic plans moving forward.
- CM Sokup: Just a process question, between now and when you come back in March with a short-term amendment. Obviously you and Director Wopata will be working on it, but will you be looking at other stakeholders and other people involved and how can council be helpful beyond just this meeting?
- Sarah: I see investing in community engagement with investors is more long-term, since anything we can do would not be able to adequately address their concerns. The short-term amendment would likely not add anything, but just lean on things that are already in the policy.
- CM Peterson White: Really appreciate this very clear presentation and the conversation about this. I think we can probably all agree that we don’t want any requirements that are impossible to meet, so I appreciate the attention to points in here where we are essentially stimmed. Looking at both short-term and long-terms solutions makes a lot of sense. When it comes to the policy overall, I certainly agree that we do not want to make standards that would make any building in Northfield too expensive, but I think it is also important to acknowledge that climate change is really expensive and we as humans have really only been looking at the short-term consequences of what we build and how we use energy and resources and how they contribute to climate change. Personally, I believe that climate change is real and that the choices we make have a direct impact on that. There is not sustainable building policy that would end climate change, so it is tempting to reduce standards to build cheaper housing. To me, that is not helpful. It is important to say why we believe we need a sustainable building policy or not. It is not going to be cheaper to make things more sustainable. Hopefully, making things more sustainable will become cheaper and it will become easier for builders and developers, but if what we’re hoping for is some situation where we can believe that we are doing our part to fight/avert/reduce climate change, but also, we’re not making anything harder for anyone—that reality is not going to arrive. That’s a hard truth. What I hope, as a local policy maker is that we can arrive at policies that seem manageable and we can collaborate with the private sector and help them see the long-term value for them and the community. I think it makes sense to revise it, things are changing in sustainable building, but it is, for my part, I’m not going to back down that this is one of the most important things as a shared community.
- CM Dahlem: The more input you get from stakeholders, the better. I think the stakeholders can be succinct and qualified, so I think whatever timeline you put them on, they can often adjust to it. I welcome any input they can provide.
- CM Holmes: I am glad for the focus on this. I think holding that balance between achieving our climate goals and the values that are held very deeply in this community and ensuring that the policy that we have is able to balance that and allow for development to occur. I do think it is important to not take steps backward, like a moratorium. I think it is important to look at how we can achieve these goals. Our responsibility as a municipality is to look at the policy that can enable that, and I mentioned this last week, is that we have to incentivize with whatever levers we have, we have to work with all the stakeholders for our goals.
- CM Sokup: I just want to echo the balance, there are two things is that there is the reality of what is happening with the grid and Excel and then there is, is this the right policy for the goals we want to achieve. When I think about cost, I think about housing specifically and the upfront cost is a big deal. Developers do not take those costs on, they pass them on to homeowners. If we can’t successfully buy down energy costs by using solar, how many people are being prohibited from that cost-entry point. I hope that the short-term amendment reflects where we’re at in this movement and to CM Beumer’s point, the goals we have of housing and affordability. We have to do our part to combat climate change as a municipality, but what does our part look like now. I think we need to strike that balance.
- Mayor Zweifel: Thank you for bringing this up. I do agree we shouldn’t have a policy that is not achievable. I think it is completely unacceptable that we do not have the option for the cheapest form of renewable energy and that Excel has not updated our grid. I’m gonna do what I can and reach out to people that I can to share that we do not have access to that.
- CM Beumer: I just to be clear am not saying that we need to kill the policy. In the short-term, trying to enforce a partial policy seems kind of ridiculous. Until we can update the policy so that it can work, a pause on that policy. My guess is that there are people who are waiting to see what we do with this. Trying to enforce a partial policy is why a threw moratorium out.
Administrator Update
- Adm. Martig: The sales tax bill, we are still working on getting it drafted. Representative Pursell did say that her office could work with us to get it proposed and worked on.
Council Meeting adjourned at 7:44pm
