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Ward 13 New Home Construction Moratorium:A Resident’s View

March 2014

Kevin TerrellKatana Consulting

Katana Consulting

1 | Moratorium and concerns

Concerns

• Construction practices

• Environment

• Home massing and style

Moratorium

Katana Consulting SOURCE: FAQs 13th Ward Interim Ordinance

1.1 | In 2013 there were 67 new homes permitted in Ward 13, out of more than 10,000 lot locations on ~500 blocks in the ward.

201320122011201020092008

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2 | Poor adherence to basic construction practices can make new construction more painful that it needs to be for the community.

Debris

Impassable road

Blocked sidewalk

Poor silt fence installation

SOURCE: Residential Construction Concerns in the 13th Ward, Palmisano, March 7th, 2014; lakecountyohio.org

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2.1 | Overseeing construction practices is a function of awareness, adherence, inspections & enforcement. Are resources correctly deployed?

1. Council Member Palmisano, Fulton Neighborhood Association, March 12th, 2014

“They are building the wrong house!”1

“Lack of oversight? My inspector might as well be a backpack.”

MPLSCity

Katana Consulting SOURCE: Vektor Digital

2.2 | Local firms have apps that can be easily adapted to raise awareness, ensure adherence and reduce enforcement costs for new construction.

Katana Consulting SOURCE: Residential Construction Concerns in the 13th Ward, Palmisano, March 7th, 2014

2.3 | Other situations such as sandy soil on narrow lots can be addressed with known solutions such as requiring shoring of those excavations.

Katana Consulting SOURCE: 13th Ward Interim Ordinance FAQ 3-10-2014; Fulton Neighborhood Association March 12th YouTube meeting video

3 | Palmisano cites a range of environmental reasons behind needing to impose a moratorium.

“Sensitive deconstruction is something I am personally passionate

about and working to institute”

Old growth trees Water & sewer Storm runoff

Katana Consulting SOURCE: Fulton Neighborhood Association meeting video

3.1 | Processes already exist to further incent behaviors that protect our community. Is a moratorium justified solely to enable certain preferences?

Points for

Protection...

Lifestyle preference?

Katana Consulting SOURCE: Teardowns & Infill Housing, 2007

4 | Questions about the size and style of new homes versus the “character” of a neighborhood are not unique to Minneapolis or Ward 13.

Katana Consulting SOURCE: Teardowns & Infill Housing, 2007

4.1 | The issues of size and style of new homes were substantively addressed in 2007 without a moratorium on teardowns.

Teardowns & Infill Housing, 2007

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5 | Readily implementable solutions to all these concerns can be simple, thoughtful and acceptable.

Simple

Simple rules that

address known

issues with better

awareness

Thoughtful Acceptable

Application of best

practices and wise

deployment of

resources

Balance between

property rights and

community interests,

evaluated fairly and

efficiently

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6 | Yet the council declared that a moratorium is only way to address the current situation.

Katana Consulting SOURCE: FAQs 13th Ward Interim Ordinance

7 | To support the idea of a moratorium, the city uses data showing that the increase in new home construction in Ward 13 is unprecedented.

201320122011201020092008

Katana Consulting SOURCE: FAQs 13th Ward Interim Ordinance; Teardowns & Infill Housing, 2007

7.1 | A fuller history of Ward 13 construction suggests the current rise in construction is making up for homes that were not built in the recession.

20132012201120102009200820072006200520042003

Single Family Home Building Permits by Ward

90+ homes not built during the recession

in Ward 13

Katana Consulting SOURCE: Minneapolis Trends

7.2 | The moratorium also stops an alleged surge in “disruptive” remodels. Citywide, however, the count of such projects has been relatively constant.

2006 2007 2008 2009 2010 2011 2012 20130

100

200

300

400

500

600

700

Minneapolis Residential Permitted Remodels and Additions, $50,000+

Katana Consulting SOURCE: Palmisano comments at Lynnhurst Neighborhood Association meeting, March 13th, 2014

8 | Palmisano claims that without the moratorium, builders in Ward 13 turned their backs to her when invited to discuss this matter.

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8.1 | On March 7th contractors had gathered at City Hall for a meeting with Palmisano to discuss improvements to the construction process.

Katana Consulting SOURCE: Southwest Journal, March 7th, 2014; http://www.ci.minneapolis.mn.us/meetings/council/WCMS1P-121547

8.2 | Unbeknownst to them, as contractors awaited her arrival, Palmisano was introducing new business to the council to impose a moratorium.

Katana Consulting SOURCE: Lynnhurst Neighborhood Association meeting, March 13th, 2014

9 | In her own words, Palmisano moved to put in place the moratorium based on “no data”.

Admits to having “no data” for breakdown on:• Number of incidents• Top offenders• Severity of offenses• Cost to the community

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9.1 | In contrast, we know that the moratorium will halt $50-100M worth of economic activity in Ward 13.

67 new homes sold

67 teardown lot purchases

Total economic activity

@ $750,000 each ~ $50 million

@ $250,000 each ~ $17 million

= $65 million + virtual teardowns

Katana Consulting SOURCE: Lynnhurst Neighborhood Association meeting, March 13th, 2014

10 | Logical alternatives to pulling all staff to work on this project were apparently not considered.

Acknowledged the novelty of

suggestion to “slow walk”

Ward 13 permits top allow

some staff to work on this

process improvement while

continuing to permit projects

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11 | Which approach is best for everyone?

Community driven

Simple

Thoughtful

Acceptable

Council driven

Blunt

Uninformed

Intimidating

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12 | Summary

Is that what you voted for in November 2013?

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13 | Call to Action

Petition

Sign the petition

to stop this

@

Participate

Thursday March 20th

9:30 a.m.

Room 317

City Hall

Zoning and Planning

Commission

Pester

The city council

and the Mayor

Re: Final Vote

Friday, March 28th

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Of the People.

By the People.

For the People.

Not TO the People.

14 | Reminder

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Contact: Kevin Terrellkevin@katanaconsulting.comwww.katanaconsulting.com @poebel

Board Member, Lynnhurst Neighborhood Association

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