Greenway Apartments Staff Report

CPED STAFF REPORT Prepared for the City Planning Commission CPC Agenda Item #10 May 10, 2021 PLAN12459

LAND USE APPLICATION SUMMARY

Property Location: 2837, 2839, and 2843 11th Ave S, and 2834, 2836, and 2840 12th Ave S Project Name: Greenway Apartments Prepared By: Shanna Sether, Principal City Planner, (612) 673-2307 Applicant: Reuter-Walton Project Contact: Kyle Brasser Request: To amend the comprehensive plan, Minneapolis 2040. Required Applications: Comprehensive plan To amend the future land use designation for 2839 11th Ave S from Production amendment Mixed Use to Urban Neighborhood. Comprehensive plan To amend the built form guidance in Minneapolis 2040 from Interior 3 to Corridor amendment 6 for the properties located at 2837, 2839, and 2843 11th Ave S, and 2834, 2836, and 2840 12th Ave S.

SITE DATA

R2B District (2837 11th Ave S, 2834-2840 12th Ave S) Existing Zoning R4 District (2839 and 2843 11th Ave S) BFI3 Interior 3 Built Form Overlay District Lot Area 33,301 square feet / .76 acres Ward(s) 9 Neighborhood(s) Midtown Phillips Production Mixed Use (2839 11th Ave S) Future Land Use Urban Neighborhood (2837 and 2843 11th Ave S, 2834-2840 12th Ave S) Goods and Services Chicago Ave (two blocks west) Corridor Built Form Interior 3

Date Application Deemed Complete March 30, 2021 Date Extension Letter Sent April 22, 2021 End of 60-Day Decision Period May 29, 2021 End of 120-Day Decision Period July 28, 2021

Department of Community Planning and Economic Development PLAN12459

BACKGROUND

SITE DESCRIPTION AND PRESENT USE. The subject property includes six parcels with the following land uses: • 2837 11th Ave S – single-family dwelling • 2843 11th Ave S – vacant parcel • 2839 11th Ave S – contractor’s yard and storage building • 2834 12th Ave S – two-family dwelling • 2836 12th Ave S – vacant parcel • 2840 12th Ave S – four-unit multiple-family dwelling

SURROUNDING PROPERTIES AND NEIGHBORHOOD. The properties are located between 11th and 12th Avenues South, just north of the Midtown Greenway. There are a range of low- to very high-density residential uses to the east and south of the site and a mix of commercial, healthcare and public services uses along Chicago Ave S to the west.

PROJECT DESCRIPTION. The applicant is seeking amendments to the Minneapolis 2040 Plan in order to allow for development of a 5-story, multifamily residential building that will provide 86 units of housing for families and individuals at a mix of income ranges – 30%, 50% and 60%, of the Area Median Income (AMI). The project will also designate 11 units for people experiencing homelessness.

The applicant is seeking to amend the comprehensive plan’s future land use designation for 2839 11th Ave S from Production Mixed Use to Urban Neighborhood and to amend the built form designation for the properties located at 2837-2843 11th Ave S and 2834-2840 12th Ave S from Interior 3 to Corridor 6. The comprehensive plan amendment is necessary to allow for the future rezoning and land use applications required to allow for the proposed five-story residential building.

The City’s Comprehensive Plan, Minneapolis 2040, was adopted by the City Council in 2019 and effective on January 1, 2020. Any city can apply to the Metropolitan Council to make amendments to their comprehensive plan. In Minneapolis, applications are made by CPED and can occur in two ways.

First, CPED can apply to the Metropolitan Council for an amendment on the City’s own behalf. These amendments if approved by the City Planning Commission and the City Council.

Second, if necessary, property owners and their designees can apply to CPED for changes to the comprehensive plan based on proposed development. In such cases, CPED applies to the Metropolitan Council on behalf of the developer only when the Planning Commission and the City Council first approve the amendment. This application is the third to be reviewed by the City Planning Commission since the adoption of Minneapolis 2040.

An application for a Comprehensive Plan Amendment follows a similar process to other land use applications, with one key difference. Like a rezoning request, a public hearing will be held during a City Planning Commission meeting, the Planning Commission will make a recommendation to the City Council, and the Council will make the final decision. Unlike a rezoning request, the City Council is not the last stop in the process. If the City Council chooses to approve the applicant’s request, the City then files a Comprehensive Plan Amendment application with the Metropolitan Council in support of the Applicant’s request. If the City Council denies the request, the City will not submit an application to the Metropolitan Council and the Comprehensive Plan is not amended.

Like any planning effort, stakeholder outreach and participation are essential to create stronger communities. Minneapolis 2040 reflects the result of over three years of engagement with the people of Minneapolis, including over 150 meetings and conversations with thousands of residents, business owners, and community members.

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Beyond the public hearing at the City Planning Commission meeting, the applicant was required to conduct public outreach and engagement to raise awareness about the proposed comprehensive plan amendment and actively prepare stakeholders to engage and provide feedback on the application. The applicant held a community meeting on March 23, 2021. Additionally, Midtown Phillips hosted a second community engagement meeting on March 8, 2021. A copy of the applicant’s Engagement Plan and a summary of the outreach and engagement process is attached to the staff report.

Land use applications, including but not limited to rezoning, site plan review, plat and alley vacation and dedication will be required to allow for the proposed development, if the amendment is approved. These applications will follow the comprehensive plan amendment process.

PUBLIC COMMENTS. As part of the application for the comprehensive plan amendment, the applicant was required to conduct public outreach and engagement to raise awareness about the proposed application and actively prepare stakeholders to engage and provide feedback on the application. A copy of the applicant’s Engagement Plan and a summary of the outreach and engagement process is attached to this memorandum.

Correspondence received prior to the public meeting will be forwarded on to the Planning Commission for consideration.

ANALYSIS

COMPREHENSIVE PLAN AMENDMENT The Department of Community Planning and Economic Development has analyzed the application for a comprehensive plan amendment to (1) amend the future land use designation for 2839 11th Ave S from Production Mixed Use to Urban Neighborhood; and (2) amend the built form guidance in Minneapolis 2040 from Interior 3 to Corridor 6 for the properties located at 2837, 2839, and 2843 11th Ave S, and 2834, 2836, and 2840 12th Ave S based on the following findings:

1. The extent to which the proposed change would be consistent with the comprehensive plan goals and associated policies The proposed comprehensive plan amendment would be consistent with the applicable guidance, goals and policies of Minneapolis 2040 (2020):

Future Land Use Guidance Staff Comment Production Production Mixed Use is a land use One of the properties proposed Mixed-Use designation that allows both production for redevelopment (2839 11th Ave and non-production uses, recognizing that S) is designated as Production Existing (2839 while many buildings in these areas are no Mixed Use. This designation 11th Ave S) longer viable for modern production largely reflects the existing land industries, they are increasingly occupied use which appears to be a by a wide variety of uses that contribute to contractor’s yard. Production the economic health and diversity of the Mixed Use would allow for city. Residential uses are allowed as part of residential uses as part of a mixed- mixed-use buildings that provide use building with production production space and must incorporate space, however, there are no mitigation strategies to address potential conflicts between existing production uses

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and new residences. Adaptive re-use of other adjacent or nearby parcels older industrial property is encouraged. with a similar designation. Urban Urban Neighborhood is a predominantly All of the properties in the Neighborhood residential area with a range of allowed proposed redevelopment except th building types. May include small-scale 2839 11 Ave S are designated as Existing (2837- institutional and semi-public uses (for Urban Neighborhood. The Urban 43 11th Ave S example, schools, community centers, Neighborhood designation would and 2834-40 religious institutions, public safety facilities, support a variety of uses, including 12th Ave S) etc.) scattered throughout. Like the residential. Neighborhood Mixed Use category,

commercial uses can continue serving their Proposed (2839 th existing commercial function. Commercial 11 Ave S) zoning is appropriate for these properties, while expansion of commercial uses and zoning into surrounding areas is not encouraged. Goods and Guidance Staff Comment Services Corridor Nicollet Ave – ½ Goods and Services Corridors serve two While the proposed project is not block west of purposes: 1) To indicate where commercial located directly on the Goods and the properties uses should front in relation to properties Services Corridor, these policies guided for commercial future land uses, support greater densities of and 2) In addition to the guidance for the nearby properties. mixed use land use categories found in this section, Goods and Services Corridors identify where the establishment or expansion of commercial uses can be considered. Properties immediately adjacent to a Goods and Services Corridor may be considered for commercial activity, allowing for uses similar in scale and scope to the Neighborhood and Corridor Mixed Use categories. Built Form Guidance Staff Comment Interior 3 The Interior 3 classification fits with the existing building and New and remodeled buildings in the zoning classification. However, the Existing Interior 3 district should reflect a variety of built form district would not allow building types on both small and moderate- for buildings greater than three sized lots, including on combined lots. stories in height, where nearby Building heights should be 1 to 3 stories. properties are guided for Corridor 6 and Transit 10. Corridor 6 New and remodeled buildings in the Corridor 6 would allow greater Corridor 6 district should reflect a variety of flexibility to meet the Proposed building types on both moderate and large comprehensive plan goals, sized lots. Building heights should be 2 to 6

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stories. Building heights should be at least including providing affordable and 2 stories in order to best take advantage of accessible housing. the access to transit, jobs, and goods and services provided by the Corridor 6 district. Requests to exceed 6 stories will be evaluated on the basis of whether or not a taller building is a reasonable means for further achieving Comprehensive Plan goals. The following goals from Minneapolis 2040 (2020) apply to this proposal: Goal 3. Affordable and accessible housing: In 2040, all Minneapolis residents will be able to afford and access quality housing throughout the city. To address issues of affordable and accessible housing, Minneapolis 2040 intends to expand opportunities to increase the housing supply in a way that meets changing needs and desires. This means allowing more housing options, especially in areas that lack choice and areas with access to frequent and fast transit, employment, and goods and services.

Goal 1. Eliminate disparities: In 2040, Minneapolis will see all communities fully thrive regardless of race, ethnicity, gender, country of origin, religion, or zip code having eliminated deep-rooted disparities in wealth, opportunity, housing, safety, and health. To achieve the goal of eliminating disparities, the City of Minneapolis will work to undo the legacy that remains from racially discriminatory housing policies by increasing access to opportunity through a greater diversity of housing types, especially in areas that lack housing options as a result of discriminatory housing policy.

The following policies and action steps from Minneapolis 2040 (2020) apply to this proposal: Policy 1: Access to Housing: Increase the supply of housing and its diversity of location and types. c. Allow multifamily housing on public transit routes, with higher densities along high-frequency routes and near METRO stations. d. In neighborhood interiors that contain a mix of housing types from single family homes to apartments, allow new housing within that existing range.

Policy 33: Affordable Housing Production and Preservation: Produce housing units that meet the changing needs of Minneapolis residents in terms of unit sizes, housing types, levels of affordability, and locations while preserving existing housing using targeted, priority-based strategies. a. Produce more affordable housing by expanding tools and resources, prioritizing funding to households earning at or below 30% and 50% of area median income. b. Pursue policies, tools and programs to ensure long-term housing affordability, such as requiring the maximum affordability term of at least 30 years for new affordable housing construction. c. Encourage affordable living features in residential development that result in lower transportation costs and reduce monthly utility bills for its residents. d. Ensure an equitable spacing across the city of affordable housing, supportive housing, shelters, and government placed residents. e. Provide density bonuses and other incentives for the construction of affordable housing. f. Preserve, improve, and expand public housing that serves the lowest-income people in our city.

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g. The City of Minneapolis is committed to preserving and increasing our public housing stock.

Policy 38: Affordable Housing near Transit and Job Centers: Create more affordable housing near transit and job centers. a. Maximize opportunities to create affordable housing, including senior housing and multigenerational housing, near transit stations and along high-frequency transit corridors. b. Identify and pursue opportunities to acquire and assemble vacant and for-sale properties for affordable housing near transit stations and along transit corridors. c. Improve coordination within the City enterprise and with outside jurisdictions to identify opportunities to increase housing density and affordability along transit corridors and near job centers. d. Promote a diversity of housing options throughout the city, especially in places near job employment opportunities, commercial goods and services, and educational institutions.

b. Ensure that City housing programs are aligned with county and state goals to end homelessness.

c. Prioritize the enhancement of local shelter safety methods and systems.

d. Strengthen City efforts to engage directly with people experiencing homelessness to understand their stories and situations and focus on improving their health and safety by supporting the Minneapolis Police Department homeless and vulnerable population initiative, street outreach services, and other engagement efforts.

e. Support and expand low barrier housing opportunities to better serve households with criminal and credit reports through rental housing that serves tenants with the greatest barriers to securing housing, such as having no or very low income, poor rental history and past evictions, or criminal histories.

f. Collaborate with local and regional partners to expand housing programs beyond those that serve families to address other populations such as transitional supportive services for young adults aging out of the foster care system.

g. Create a regulatory framework to allow new rooming houses, single room occupancy units, and other forms of transitional housing.

Minneapolis is experiencing a shortage of housing for households at or below 30 percent of area median income. The matter intensifies for those who may face a lack of employment, chronic physical and mental health conditions, violence, trauma and/or the lack of transportation to access a job, appointments, or support services. This results in higher rates of homelessness, dislocation, and crowded and unsafe living conditions for thousands of residents annually – and it disproportionately impacts communities of color and indigenous people. Access to stable and safe housing that people can afford, and essential support services, are at the core of city efforts to prevent and eliminate homelessness.

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Minneapolis is growing faster than it has since 1950. The Metropolitan Council estimates that between 2010 and 2016 the city added over 12,000 housing units and more than 37,000 residents. With this growth comes increased demand for housing and an associated increase in housing costs and rents. As a result, housing units that were once affordable no longer are, and less housing is available for low-income residents of Minneapolis. For a growing number of residents, especially residents of color, incomes are not keeping up with rising housing costs. This results in fewer housing units in fewer neighborhoods that are affordable to renters. For households of color that are renters that means there are few, if any, housing units that are affordable. Staff finds that the proposed comprehensive plan amendments are consistent with the goals and associated policies above. The applicant is seeking amendments to the Minneapolis 2040 Plan in order to allow for development of a 5-story, multifamily residential building that will provide 86 units of housing for families and individuals at a mix of income ranges – 30%, 50% and 60%, of the Area Median Income (AMI). The project will also designate 11 units for people experiencing homelessness. The properties proposed for amendment is located two blocks from Chicago Ave and two blocks north of Lake St E, both Goods and Services Corridors. Additionally, the subject properties are adjacent to the Midtown Greenway with proposed future access to the Greenway from the site. The Midtown Global Market and Chicago and Lake Transit Center are located less than ½ mile from the property with access to retail, sales and services and a high-frequency transit hub. The Metro D Line bus rapid transit is planned for Chicago Ave and the Metro B Line is planned for Lake Street. While the proposed project is not located directly on the Goods and Services Corridor, these policies support greater densities of nearby properties. Therefore, staff finds that amending the future land use designation for 2839 11th Ave S to Urban Neighborhood, consistent with the adjacent properties and amending the built form designation from Interior 3 to Corridor 6 would allow greater flexibility to meet the comprehensive plan goals, including providing deeper affordability and accessible housing.

2. Evidence demonstrating the reason(s) that the plan should be changed, including but not limited to whether new information has become available since the comprehensive plan was adopted that supports reexamination of the plan, or that existing or proposed development offer new opportunities or constraints that were not previously considered. On December 7, 2018, the City Council adopted a resolution authorizing staff to transmit the draft comprehensive plan, Minneapolis 2040, to the Metropolitan Council for their review by December 31, 2018. Staff had consulted with the applicant about the proposed project after the draft recommendations were sent to Metropolitan Council and identified that a comprehensive plan amendment would be required to allow for a building with greater than three stories on the site. The proposed project was presented to staff during both the previous and newly adopted comprehensive plans. Both policy documents strongly encourage affordable housing options, as well as innovative housing models, such as including units at a range of affordability levels. In addition, both plans stress the inadequate amount of temporary and affordable housing in Minneapolis and the need to increase supply. Minneapolis 2040 includes both future land use designations and built form districts, where previous comprehensive plans did not. The existing Production Mixed Use designation of 2839 11th Ave S reflects the existing land use as contractor’s yard and is inconsistent with the other adjacent and nearby properties which are designated as Urban Neighborhood. The Interior 3 designation largely reflects the existing land use and zoning classification but does not provide enough building form to achieve the density, mix of affordable units and the additional units for those experiencing homelessness.

3. The relationship of the proposed amendment to the supply and demand for particular land uses within the city and the immediate vicinity of the site. As previously mentioned, Minneapolis is experiencing a shortage of housing for households at or below 30 percent of area median income. The matter intensifies for those who may face a lack of employment, chronic

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physical and mental health conditions, violence, trauma and/or the lack of transportation to access a job, appointments, or support services. This results in higher rates of homelessness, dislocation, and crowded and unsafe living conditions for thousands of residents annually – and it disproportionately impacts communities of color and indigenous people. The immediate area includes a range of low- to very high-density residential uses and a mix of commercial, healthcare and public services uses, including the Midtown Global Market and Allina and Abbott Northwestern hospitals. The properties proposed for amendment are located two blocks east of Chicago Ave and two blocks north of Lake St E, both are Goods and Services Corridors. Additionally, the subject property is adjacent to the Midtown Greenway with proposed future access to the Greenway from the site. The Midtown Global Market and Chicago and Lake Transit Center are located less than ½ mile from the property with access to retail, sales and services and a high-frequency transit hub. The Metro D and B bus rapid transit lines are planned for Lake Street and the Metro D Line bus rapid transit is planned for Chicago Avenue, both planned bus rapid transit lines will have a stop at the nearby Chicago-Lake Transit Center. This access to goods and services, healthcare and high-frequency transit is unique to the immediate area which increases demand for higher density and deeper affordability which would be possible with the proposed comprehensive plan amendments. Properties to the northwest, across 11th Ave S are designated Corridor 6, as well as properties to the south across the Midtown Greenway. Properties southwest and one block west are designated Transit 10. Therefore, staff finds that amending the future land use designation for 2839 11th Ave S to Urban Neighborhood, consistent with the adjacent properties, and amending the built form designation from Interior 3 to Corridor 6 would meet the needs of the community by adding to the supply affordable housing near two Goods and Services Corridors, high-frequency transit and enhanced bicycle trails.

4. A demonstration that the proposed amendment has merit beyond the interests of the applicant. Adding to the supply of affordable housing is in the best interests of the City of Minneapolis and the community. The immediate area includes a range of low- to very high-density residential uses and a mix of commercial, healthcare and public services uses, including the Midtown Global Market and Allina and Abbott Northwestern hospitals. The properties proposed for amendment are located two blocks east of Chicago Ave and two blocks north of Lake St E, both are Goods and Services Corridors. The combination of the existing Production Mixed Use/Urban Neighborhood and Interior 3 designations for the properties essentially limit the allowed rezoning of the property to the R4 Multiple-Family District. The R4 District would significantly limit the amount of density that could be provided on-site, given the unique features of the area, access to transit, goods and services corridors, and the Midtown Greenway. Staff finds that supporting the amendment for 2839 11th Ave S from Production Mixed Use to Urban Neighborhood and all of the properties to the built form of Corridor 6 would allow a zoning district with higher density and more height, which would allow greater flexibility to meet the comprehensive plan goals, including providing deeper affordability and accessible housing.

5. The possible impacts of the amendment on all specific elements of the comprehensive plan as may be applicable, including but not limited to: (a) Land use and built form; The proposed amendment from the Production Mixed Use to Urban Neighborhood Future Land Use designation will allow for consistency across the subject properties and better reflect the adjacent land uses. The proposed amendment from Interior 3 to Corridor 6 will also be consistent with adjacent properties to the northwest, west, south and southwest which are a combination of Corridor 6 and Transit 10. The properties proposed for amendment are adjacent to the Midtown Greenway and located two blocks from Chicago Ave and Lake St E, both goods and services corridors with access to high-frequency transit. Therefore, staff finds that amending the future land use designation for 2839 11th Ave S and the built

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form designation for all properties from Interior 3 to Corridor 6 would allow greater flexibility to meet the comprehensive plan goals, including providing deeper affordability and accessible housing. (b) Transportation; The properties proposed for amendment are located two blocks east of Chicago Ave and two blocks north of Lake St E, both high-frequency transit corridors and the properties are immediately adjacent with planned access to the Midtown Greenway. While the proposed project is not located directly on the Goods and Services Corridor, these policies support greater densities of nearby properties. The Chicago and Lake Transit Hub is less than a ½ mile walk from the proposed project site. Additionally, the Metro B Line bus rapid transit is planned for Lake Street and the Metro D Line bus rapid transit is planned for Chicago Avenue, both planned bus rapid transit lines will have a stop at the nearby Chicago-Lake Transit Center. The proposed project will not impact the proposed and existing transportation in the area, but instead the extensive transportation options will offer great opportunities for future residents to access other communities in Minneapolis and the surrounding areas. (c) Housing, including the extent to which the proposal contributes to the City’s adopted housing goals; The proposed amendment is to allow for development of a 5-story, multifamily residential building that will provide 86 units of housing for families and individuals at a mix of income ranges – 30%, 50% and 60%, of the Area Median Income (AMI). The project will also designate 11 units for people experiencing homelessness. Minneapolis is growing faster than it has since 1950. The Metropolitan Council estimates that between 2010 and 2016 the city added over 12,000 housing units and more than 37,000 residents. With this growth comes increased demand for housing and an associated increase in housing costs and rents. Staff finds that the proposed comprehensive plan amendments would be consistent with the following housing policies and action steps: Policy 1: Access to Housing: Increase the supply of housing and its diversity of location and types. c. Allow multifamily housing on public transit routes, with higher densities along high-frequency routes and near METRO stations. d. In neighborhood interiors that contain a mix of housing types from single family homes to apartments, allow new housing within that existing range.

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Policy 35: Pursue innovative housing types and creative housing programs to help meet existing and future housing needs. b. Review and revise existing policies, programs, and regulations to remove barriers and support innovative, energy efficient, and creative housing options, such as multi-generational housing that supports large family structures, single room occupancy, shared housing, co-housing, and cooperative-housing.

Policy 40: Eliminate homelessness through safe, stable, and affordable housing opportunities and strategies for homeless youth, singles, and families. a. Strengthen the City’s coordination with local and regional partners and local service providers to have a strong regional network, aligned with state goals, to financially support and develop strategies to address and prevent homelessness. b. Ensure that City housing programs are aligned with county and state goals to end homelessness. c. Prioritize the enhancement of local shelter safety methods and systems. d. Strengthen City efforts to engage directly with people experiencing homelessness to understand their stories and situations and focus on improving their health and safety by supporting the Minneapolis Police Department homeless and vulnerable population initiative, street outreach services, and other engagement efforts. e. Support and expand low barrier housing opportunities to better serve households with criminal and credit reports through rental housing that serves tenants with the greatest barriers to securing housing, such as having no or very low income, poor rental history and past evictions, or criminal histories. f. Collaborate with local and regional partners to expand housing programs beyond those that serve families to address other populations such as transitional supportive services for young adults aging out of the foster care system. g. Create a regulatory framework to allow new rooming houses, single room occupancy units, and other forms of transitional housing. (d) Economic competitiveness; While the proposed amendment does not directly affect economic competitiveness, the proposed project will add housing near the Midtown Global Market, two goods and services corridors, a transit hub at Chicago and Lake and two planned BRT Lines that allows people to conduct daily activities without using a car. (e) Environmental systems;

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The applicant is exploring the use of sustainable energy sources, including solar. The project will include stormwater management strategies and will provide energy efficient appliances, LED lighting and low flow plumbing fixtures. (f) Public health; Not applicable. (g) Heritage preservation; Not applicable. (h) Arts and culture; Not applicable. (i) Parks and open space; Not applicable. (j) Public services and facilities; and Not applicable. (k) Technology and innovation. Not applicable.

RECOMMENDATIONS

The Department of Community Planning and Economic Development recommends that the City Planning Commission adopt staff findings for the application by Reuter-Walton for the properties located at 2837, 2839, and 2843 11th Ave S, and 2834, 2836, and 2840 12th Ave S: A. Comprehensive Plan Amendment. Recommended motion: Approve the comprehensive plan amendment to amend the future land use designation in Minneapolis 2040, for the property located at 2839 11th Ave S from Production Mixed Use to Urban Neighborhood. B. Comprehensive Plan Amendment. Recommended motion: Approve the comprehensive plan amendment to amend the built form guidance in Minneapolis 2040 from Interior 3 to Corridor 6 for the properties located at 2837, 2839, and 2843 11th Ave S, and 2834, 2836, and 2840 12th Ave S.

ATTACHMENTS

1. Future Land Use map 2. Built Form map 3. Aerial photo 4. Written description and findings submitted by applicant 5. Community Engagement Plan, Feedback and Outcomes 6. Site plan 7. Plans 8. Building elevations 9. Renderings

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10. Shadow studies 11. Photos 12. Public comments