ULI MN public official education programarchive.uli.org/.../march21/300/newnormal/NewNormalPresentation.p… · Presentation Topics ... Financial support from the Family Housing Fund

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ULI Terwilliger Center

Housing Conference

March 21, 2013

ULI MN public

official education

program

Presentation Topics

Evolution of N3 & Why its Important

Program Summary

Hear from the Experts – Video Clips

Discoveries & Response

What’s Next & Application in other Regions

collaborative l non-partisan l solution-oriented

Convene l Educate l Engage l Effect Change

Regional Council of Mayors

• Minneapolis, Saint Paul and 48 other municipalities, in the developed and developing suburbs, are represented in RCM.

Regional Council of Mayors

It Happens Over Lunch

Relationships Trust Confidence

Coalition of the Willing

Wisdom of the Room

Our Strategic Issue Areas

Mission – Partnering to implement tools & strategies that support a full range of housing choices.

Financial support from the Family Housing Fund

Housing Initiative

Opportunity City Program

• Technical Assistance

• Housing Audit

• Community Change Data

• Discussion/Recommendation

5/27/2010 8

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Changing Growth Patterns in the MSP Region?

Past Growth Pattern - Managing & Accommodating Growth : “Build It and They Will Come”

New Growth Pattern Needed - Housing Products Don’t Match Future Demand

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The persistence of underwhelming economic data one characterized by diminished work opportunities for a big swatch of the work force and even a scaled down American Dream

What is the New Normal?

A confluence of powerful forces – some arising directly from the financial crisis and some that were at work long before it began.

“We must realize that it is not a temporary depression, but a New Normal and adjust ourselves accordingly”

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Navigating the New Normal provides a forum to foster meaningful

dialogue between public & private sector leaders, build trust and collaborate for common goals

Expand the Resources & Learning beyond

RCM and a Few Cities

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Two Hour Interactive Workshop

Four Part Format

1. Overview of New Normal 2. Profile of Local Data 3. Discussion with ULI

Member RE Leaders

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GenY Baby Boomers

+

Changing demographics and new market preferences are

creating demand for different housing choices.

The way development is financed has changed, making it harder to complete quality projects

Overview of the New Normal

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ULI MN Chair & ULI Trustee Colleen Cary, Cornerstone Group

What Gen Y Wants & How Cities Can Respond

Video Clip

https://www.youtube.com/watch?v=h-qYX8wlJQ8

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Household Level Data - Multiple Sources (7-county area)

Counts every Housing Unit (no estimates)

Tracks Residential Change - turnover & housing usage

Joined with GIS Systems - migration and flows

Data can be summarized to fit any geographic level

Longitudinal data /Updated Annually

Overview of the New Normal Local Data - City’s Human Infrastructure

Source: ULI MN Community Change Data; Excensus, LLC – 2004-2010.

All Households Households < Age 35

Side by Side Breakdown by Housing Type

Under age 35 - 2010

> $300,000

18 Source: ULI MN Community Change Data; Excensus, LLC – 2010

9%

$250,000 - $299,000

43%

$200,000 - $249,000

10%

< $200,000

38%

Single Family Tax Value

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Where Do Residents Go When They Move? (Top Destinations 1st Ring Suburban City - 2004-10)

City %

7,979 residents moved (between 2004-2010) St. Louis Park 22%

Minneapolis 14%

Minnetonka, Plymouth 7-6%

Hopkins, Edina 4% each

Bloomington, Eden Prairie, Brooklyn Park, Golden Valley 3% each Source: Excensus, LLC, 2010

Retention of SFD HH Moves

Richfield

Corcoran

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When Residents Move – What Housing Choice Do They Make?

51%

74%

37%

15%

All HH moves 04-09

31% Retention Rate Overall

Labor Pool

Commuting

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Where Employees Come From & Residents Work City %

9,945 jobs Brooklyn Park & Minneapolis 8%

New Hope 7%

Plymouth, Crystal, Maple Grove 6% each

Brooklyn Center, Coon Rapids, Champlin, Blaine, Robbinsdale 2-3% each

9,391 residents working Minneapolis 19%

Plymouth 8%

New Hope 8%

Golden Valley, St. Louis Park, St. Paul 5-6% each

Minnetonka, Edina, Bloomington, Eden Prairie, Brooklyn Center, Maple Grove

4% each

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• What can the city do to enhance its attractiveness to the younger generation?

• What public investments should be of focus to get the best return?

• What can be done to attract qualified developers and great projects?

• What proactive steps can be taken to prepare sites for redevelopment?

• Is the City competitive in terms of its review process?

Panel Discussion Unique Questions to Fit Each City Situation

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• Balance of Gen Y & Boomers as they age • Conflict between current market demand

(what’s hot) and long term need for new housing types desired

• Risk/Financing – risk tolerance, new risk calculus

• How to be better prepared

Panel/Policy Leader Dialogue Common Issues Discussed

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Dialogue with Policy Leaders

What are the Creative Housing Types for the Future?

Lack of Housing Choices

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City Council Member

Dialogue - Desire for Creative Options to meet Demand

Video Clip https://www.youtube.com/watch?v=nvSQTYIWolI

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Let’s Hear from the Experts

New Housing Types = Shared Risk

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Response: Requires Shared Risk for Reward

Video Clip https://www.youtube.com/watch?v=M9YS2LjwJoY

ULI MN Chair & ULI Trustee Colleen Cary, Cornerstone Group

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Let’s Hear from the Experts

New Calculus for Risk and Importance of Partnerships

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Cities Need to Take on More Risk

Video Clip https://www.youtube.com/watch?v=QO8ZUr10rDg

ULI MN Member Panelist, Mark Ruff - Ehlers

Eight Key Strategies:

Establish Vision & Clearly Articulate Development Expectations

Foster Collaborative & Integrated Strategies

Analyze & Modify Land Use Regulations

Shift Project Review: Reactive Proactive

Clearly Define the Process

Provide Due Diligence Information UP FRONT

Work as a Team – be flexible as market changes

Examine the Cost of Doing Nothing

Resources for Cities

(Re)Development Ready Guide

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Discoveries

Cities will be more competitive when:

• Land uses are integrated.

• Walkability & accessibility to community

assets are enhanced.

• (Re)development tools are refocused to

support future growth.

• Diverse housing choices are offered to

accommodate changing demographics.

• Public engagement is an effective

component of the (re)development.

• Trust & partnerships between the public &

private sectors are strengthened.

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• 18 Cities – suburban/urban across the MSP Region – representing 800,000 in population

• Sessions booked through the summer 2013 • 30+ ULI MN member volunteers = $50,000 in-

kind resources.

Progress & Power of Engagement

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• Build from the RCM format “It Happens Over Lunch” • common understanding • mutual support for change

• Implement Redevelopment Ready Guide Principles

• Document Progress & Secure Commitment for Change

• Conduct Technical Advisory Panels (TAPs) – site specific

What’s Next?

“As a developer, it is great to have an opportunity to interact with city officials in such an open way. The reality is that we are more often negotiating from opposite sides of the table. In this environment, we are getting to know each other and developing a deeper sense of what is possible. I believe that this is an important investment on both sides”

- John Breitinger, Vice President – Realty Advisory Services, United Properties

Learn more at: http://minnesota.uli.org/

Questions & Discussion

Cathy Capone Bennett, ULI MN – Housing Initiative [email protected] 612-670-8147 John Shardlow Stantec [email protected] (651) 967-4560

Learn more at: http://minnesota.uli.org/