07-17-2002 Planning Commission Minutes

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MINUTES OF THE ORONO PLANNING COMMISSION MEETING Wednesday,July 17,2002 5:30 o'clock p.m. (#2)#02-2789 DAHLSTROM DEVELOPMENT LLC, Continued work due to traffic issues and tightness. The only other land guided for higher density is southwest of Highway 12 and Old Crystal Bay Road which is surrounded by railroad tracks, Highway 12, and industrial uses. Rahn stated that he felt better knowing that there wasn't any other location guided for this type of development. Smith stated that this site was one of two or three sites within the entire City where this development would be allowed, therefore one would not see this running up and down Highway 12. Krall pointed out that, when you look at the level of amenities that you have so close around this site, the way it's placed, the way you have retail placed, and the way you have City facilities and school facilities placed, when you look at the comp plan this is the one place where it makes sense for Orono to meet some of the housing needs. It provides a unique situation, and offers the only place that functions that way within Orono. Smith added that this does not mean that there are not issues surrounding parking, Kelley Parkway,traffic, and its impact. Hawn stated that she needed to leave soon and wanted to address a few concerns. She stated that, initially, what she thought was driving the higher densities for this location was the need to set up spaces for affordable housing, and this isn't it. She indicated that affordable housing was something that mattered to her. With regard to the proposal, on one hand the applicant has asked Orono to make some concessions for their planning, on the other hand Orono would like to see their help in addressing the area of affordable housing. Johnston pointed out that the affordability issue was difficult. The units that could meet the affordability number were the loft units, and the way that they can do that is through a finance program through the federal government. The City has to be a partner in requesting that financing, but once it is put in place, it is essentially a buy down of the interest rates that makes those affordable units. Mr. Dahlstrom added that, initially, the first plan that they had provided with 235 units had the potential for more of the affordable housing units, than the current proposal. By removing 60 units, pricing flexibility is greatly impacted. He stated that they are not opposed to working with the City on the affordable housing issue and trying to do accomplish some cost shifting to meet the need. Smith stated that considering price points today, the whole issue of affordable housing is a very difficult subject to try to do a good job at. PAGE 12 OF 22