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HomeMy WebLinkAbout~Master - Joint Meeting of the Ames City Council and Ames School Board 07/25/2005 MINUTES OF THE JOINT MEETING OF THE AMES CITY COUNCIL AND AMES SCHOOL BOARD AMES, IOWA JULY 25, 2005 The joint meeting of the Ames City Council and Ames School Board was called to order by Mayor Ted Tedesco at 6:30 p.m on July 25, 2005, in the City Council Chambers in City Hall, 515 Clark Avenue. Present from the Ames City Council were Goodhue, Goodman, Mahayni, Vegge, and Wirth. Council Member Cross and Ex officio Member Borich were absent. Present on behalf of the Ames School Board were Acker, Brown, Cakerice, Johnston, and Snell. Tim Taylor, Deputy Superintendent of the Ames School District; Kurt Subra, Chief Financial Officer for the Ames School District; City Manager Steve Schainker, and Housing Coordinator Vanessa Baker Latimer were also present. REVIEW OF PROPOSED LAND GRANT AGREEMENT AND RESOLUTION: Mr. Schainker explained that the City Council had established, as a top priority, the use of Community Development Block Grant (CDBG) funds to develop a new owner-occupied, single-family, detached housing subdivision. The Council had directed staff to approach the Ames Community School District Board to determine its interest in collaborating with the City on this project. The Board would donate School District land along 24th Street, and the City would subsidize the infrastructure costs of a developer. He explained that the School Board passed a resolution expressing their conceptual support in partnering with the City by donating the land; however, it was understood that more details had to be presented to the School Board before the final vote to transfer the land. Mr. Schainker stated that staff had met with neighbors of the proposed subdivision to seek input on this project, and subsequently, with developers to discuss the input received from the neighborhood meeting. Discussion ensued on Paragraph No. 5 of the Agreement for a Grant of Land, which stated that the School District “shall have no possibility of reverter” after signing the Agreement. City Attorney John Klaus advised that the School District may exercise legal and equitable remedies, but may not revert the contract. Vanessa Baker Latimer further explained that once obligated to this project, the Block Grant funds must be spent on this project. Gail Johnston, School Board President, advised that discussion by the School Board on this issue would occur at its meeting on August 8, and a vote would be taken at the meeting on August 22. It was pointed out that there would also be a joint meeting of the City and the School Board on August 9 in the City Council Chambers. PRESENTATION OF REQUEST FOR PROPOSALS FOR AFFORDABLE HOUSING PROJECT: Vanessa Baker Latimer, City of Ames Housing Coordinator, summarized the Request for Proposals (RFP). The RFP was designed to identify developer/builders’ interest in entering into an agreement with the City to develop single-family, owner-occupied, housing units in the Ames community. Discussion ensued over requiring 1 and ½ baths and a one-car garage; if these items were not required, it would make the house more affordable to build for non-profit agencies. Ms. Baker Latimer explained that the extra bath(s) would allow the family to expand, without moving. Mr. Schainker added that it was important to balance the interests of the homeowner and the neighborhood. From meetings with neighbors, it was clear that they wanted the houses to blend in; the homes should look similar. Ms. Johnston stated that she was concerned that the requirement for an ice maker water line connection and a bath stub-in would add to the cost and make it difficult for non-profit agencies to participate. Another interior requirement, i.e., central air conditioning, was debated. Mr. Schainker stated the City anticipates that a minimum of 74 homes would be built over a three- year period on the subject tract of land. Taxes on those 74 homes is estimated at $164,000 annually, a portion of which would go to the School District. Minimum Affordability Standards were explained. Board Member Cakerice said he is concerned about the amount of monthly payment that would be required of homeowners in this subdivision. Lesa Lewis, First Federal Savings Bank of Iowa, explained that the amount of debt each prospective owner may have is a critical factor in determining if the home would be affordable for them. With common terms, using a common debt ratio, the formula used in calculating the prices of the subject homes established that no more than 36.5% of the prospective homeowner’s income would be available for the house payment. Board Member Johnston pointed out that the RFP did not include any requirement for non-profit builders to be included. Mr. Schainker advised that the RFP, at Paragraph C.a.2 should state, “Of the 71% total lots/homes..., 10% must be donated or sold to non-profit builders.”. PUBLIC INPUT: Jim Black, 3416 Valley View Road, Ames, spoke as Board President for Habitat for Humanity of Central Iowa. He requested that the City and School Board consider making the following adjustments for interior and exterior requirements under “Minimum Housing Design Standards:” B.5.e. Requirement for half bath on main floor be dropped. B.8.a. Requirement for wiring for a future garbage disposal and icemaker supply line be dropped. B.8.b. Requirement for air conditioner be dropped (make it an option). The furnace would easily allow future central air conditioning. B.7.c. Requirement for additional parking space beyond the front of the home be dropped. Mr. Black advised that these adjustments would reduce Habitat’s sale price by over $3,000/home, and most of those changes would not be visible from outside the homes. Ted Huiatt, 3025 Evergreen Circle, Ames, spoke as Board President for the Story County Community Land Trust. The Land Trust prefers that the requirement of the half bath on the main floor and the additional parking space be dropped, as it would make the homes more affordable. The Land Trust would also like to see more lots be made available to non-profit agencies. Mr. Hewitt explained that the agency maintains the ownership of the land; they sell off the improvements. By not having to pay for the land, the home becomes much more affordable. Ms. Baker Latimer explained how the maximum sale price of the affordable housing units was determined. Anjeanette Perkins, 512 Tenth Street, Ames, Executive Director of Habitat for Humanity of Central Iowa, explained the policy of that agency to make houses as affordable as possible. She advised that Habitat’s guidelines are very basic, interest rate is at zero percent, and the majority of the labor is donated. Ms. Perkins urged the City Council to consider reducing the requirements for some of the houses. The average income of their applicants is 40 to 41% of the County median. Robert Wessel, 717 Seventh, Ames, stated that he was in favor of this project if absentee ownership of those homes (turning the homes into rentals) can be prevented. City Attorney Klaus advised that restricted covenants may be imposed per Iowa Code; the covenant would expire after 21 years, but could be renewed by the City of Ames. Marsha Peterson, 2501 Hoover Avenue, Ames, stated that she built her house (along with many volunteers) as part of a Story County Land Trust project. Ms. Peterson has six children, all of whom are students in the Ames Community School District. If it were not for the Land Trust, her family would not be living in Ames. She pointed out that eligible homeowners, no matter what the purchase price of the house, must be able to afford the taxes on the home. Ms. Peterson believed that first-time homebuyer requirements are oppressive to single parents; it should not matter if the applicant had owned a home previously. The income, debt, etc., must be checked on each individual. Vanessa Baker Latimer explained that HUD encourages cities to address first-time homebuyers; however, they open the door for single parents, divorced individuals, etc., by stating that the person may not have owned a home within the past three years. Ms. Baker Latimer indicated that the City could check with HUD as to whether the requirement of first-time homebuyers could be changed. Don Powers, 2538 Eisenhower, Ames, said that he opposed this project based on the fiscal responsibility of the School Board. He knows the value of land; his church bought land at $26,000/acre, and he and others in the Parkview Neighborhood are concerned about the land being given away. Mr. Powers believes that the proposed prices of the suggested homes are unaffordable. He gave numbers of houses currently on the market in the various price ranges and in smaller communities and questioned the demand for this project. Also, he pointed out that it is unknown if those houses would be occupied by families with children. It was suggested by Mr. Powers that the land in question be auctioned-off to the highest bidder. Scott Renaud, 1601 Golden Aspen Road, Suite 103, Ames, indicated that Fox Engineering is working with a group of developers to respond to the City’s request for an affordable housing project on Ames School property. Their primary concern is that requirements limit the creativity and affordability of their proposal. It is their suggestion that guidelines be established and then each proposal be evaluated by the neighbors, School Board, and City Council before a final decision is made. Don Lambert, 2818 Somerset Drive, Ames, pointed out that if the land were sold to the highest bidder, the School District would have made approximately $800,000 and it may yield as many students as it would have if developed as affordable housing. Mr. Lambert commented that although he is in full support of Habitat for Humanity projects, he believes that the proposed location is not the place for this project. It is surrounded by Somerset and Parkview Subdivisions, and although City staff has done a good job in defining minimum standards, this type of project would not fit in with the existing neighborhoods. Board Member Johnston pointed out that the recapture provision addressed under No. 26 of the Restrictive Covenants did not state where the sale proceeds would go. Ms. Baker Latimer advised that HUD requires all sales proceeds to be reprogrammed back into other affordable-housing projects using CDBG funds. Ms. Johnston asked that this issue be clarified in the RFP. Mr. Schainker asked for clarification of the interior elements. Council Member Vegge agreed that the requirements should be “relaxed” for non-profit agencies only,. specifically, no half-bath requirement, no garbage disposal requirement, no ice-maker line requirement, no air conditioner requirement, no additional parking space requirement. This would make the homes more affordable, but give the applicants the option to have the things they want. He also suggested that the additional parking space be deleted for all developers, not just non-profit agencies. Council Member Mahayni explained that the extra parking space was suggested so that an additional one-car garage could be built in the future; that is important when it comes to the placement of the house on the lot. Council Member Goodman questioned as to why the interior requirements would be optional only to non- profit agencies. He supported eliminating the interior elements and parking space for all proposed developers. Mayor Tedesco said that it is much less expensive to include these amenities while the house is being built, rather than having to change it later. Council Member pointed out that the elimination of those amenities would affect the resalability of the home. Ms. Baker Latimer advised that any proposal would have to meet the minimum energy-efficiency standards of the Department of Housing and Urban Development. Both entities agreed that the furnace and gas water heater should be required. Moved by Goodman, seconded by Vegge, to direct staff to modify the RFP by eliminating the half- bath requirement, garbage disposal requirement, ice-maker line requirement, and additional parking space requirement for all developers. Vote on Motion: 1-4. Voting aye: Goodman. Voting nay: Goodhue, Mahayni, Vegge, Wirth. Motion failed. The School Board members present expressed general consensus that they would support fewer restrictions being placed on non-profit agencies, specifically, the elimination of the requirement for the ice-maker line, extra half-bath, additional parking space, and the garbage disposal. The Board also expressed its support to make air conditioning optional for non-profit agencies. Moved by Vegge, seconded by Goodman, to make the garbage disposal, ice-maker water line, half- bath, additional parking space, and air conditioning optional for non-profit agencies only. Vote on Motion: 5-0. Motion declared carried unanimously. Moved by Goodman, seconded by Wirth, to refer to staff the document submitted by Scott Renaud on behalf of Fox Engineering pertaining to this proposed project. Vote on Motion: 5-0. Motion declared carried unanimously. COMMENTS: Mayor Tedesco announced that City Assessor Richard Horn had submitted a letter of resignation, effective August 15, 2005. The Mayor advised that a Conference Board meeting would be held on August 9 at 5:00 p.m. He distributed information from Richard Horn concerning combining the City and County Assessor offices. ADJOURNMENT: 9:12 p.m. ___________________________________ ____________________________________ Diane R. Voss, City Clerk Ted Tedesco, Mayor