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HomeMy WebLinkAbout2019-01-17 HEDC Packet AGENDA CITYOF MAPLEWOOD HOUSINGAND ECONOMIC DEVELOPMENT COMMISSION Thursday,January7, 2019 6:00 P.M. Council Chambers-Maplewood City Hall 1830 CountyRoad B East 1.Call to Order 2.Roll Call 3.Approval of Agenda 4.Approval of Minutes: a.September 20, 2018 5.New Business: a.2018 Business Engagement ProgramReport b.Housing and Economic Development CommissionRules of Procedure – Annual Review c.2018Housing and Economic Development CommissionAnnual Report d.Election of Officers (No Report) e.Recent Business Outreach Events (No Report) 6.Unfinished Business: a.Rental Housing Licensing Discussion 7.Visitor Presentations: 8.Commission Presentations: 9.Staff Presentations: a.Development Summary (No Report) 10.Adjourn MINUTES OF THE HOUSING AND ECONOMIC DEVELOPMENT COMMISSION 1830 COUNTY ROAD B EAST, MAPLEWOOD, MINNESOTA SEPTEMBER 20, 2018 6:00 P.M. 1.CALL TO ORDER A meeting of the Commissionwas held in the City Hall Council Chambers and was called to order at 6:01p.m.byChairperson Jenkins. 2.ROLL CALL Commissioners Denis Dupee, CommissionerPresent Brian Finley, CommissionerAbsent Mark Jenkins, ChairpersonPresent Jennifer Lewis, CommissionerAbsent Benosi Maduka, Commissioner Present Joy Tkachuck, Vice ChairPresent Dennis Unger, CommissionerPresent Staff Michael Martin, Planner, Economic Development Coordinator Jason Brash, Building Official 3.APPROVAL OF AGENDA Commissioner Tkachuck moved to approve the agenda as submitted. Seconded by CommissionerDupee.Ayes –All The motion passed. 4.APPROVAL OF MINUTES Commissioner Tkachuckmoved to approve the minutesfor May 17,2018as submitted. Seconded by CommissionerDupee.Ayes –All The motion passed. 5.NEW BUSINESS a.Rental Housing Licensing Discussion i.Economic Development Coordinator, Mike Martin gave the report on Rental Housing Licensing and answered questions of the commission. ii.Building Official, Jason Brash, addressed and answered questions of the commission regarding rental housing. Commissioner Maduka had concerns about evictions, records and plaguing.Heasked if other agencies already do similar inspections for subsidized units/tenants. He was worried about any overlap. Commissioner Dupee asked about standards between subsidized and market rate housing. September 20, 2018 1 Housingand Economic Development CommissionMeetingMinutes Chairperson Jenkins asked if there is a gap or a need that the city is trying to address. If there is no need to address it here than why is the city doing it? Is it just to get in line withwhatother citiesare doing?Chairperson Jenkins asked how manufactured home parks that haverentals would fit in here. Chairperson Jenkins wanted to make sure the city is not creating disincentives for rentals particularly single-family homes. He would want to make sure to give landlords plenty of time to account for new fees and requirements. There should be incentives for engaging in the rental licensing program. Commissioner Dupee would like more information onwhatthe benefits of thisare.If there are already problem properties or code issues aren’t there tools the city can utilize to address the issues? Chairperson Jenkins stated he supports the process of the city looking further into thisover the next 6 months and what the benefit is. b.North End Vision Plan and Selection of Working Group Member i.Economic Development Coordinator, Mike Martin gave the report on the North End Vision Plan and the Selection of a Working Group Member Commissioner Maduka moved to recommended nominating Joy Tkachuck to be the North End Vision Plan working group member. Seconded by Commissioner Dupee.Ayes –All The motion passed. c.Update on 2018 Business Engagement Program (No Report) i.Economic Development Coordinator, Mike Martin gave abriefupdate on the 2018 Business Engagement Program. Commissioners spoke regarding their experience during the business engagement visits. d.Community Engagement Breakfast –November 1 (No Report) This is held at Maplewood Community Center November 1, 2018. More information will be on the city’s website. 6.UNFINISHED BUSINESS None. 7.VISITOR PRESENTATIONS None. 8.COMMISSIONPRESENTATIONS Chairperson Jenkins discussed the new packet format he likes the report piece but he misses the power point part and more informative pieces. It is nice to have the summary but he felt the more information staff can provide the commission, the better. September 20, 2018 2 Housingand Economic Development CommissionMeetingMinutes 9.STAFF PRESENTATIONS a.Development Summary (No Report) Staff discussed the development of 152 unit market rate apartments called Trails Edge that would be located by Costco. 3M requested permission to put up window and banner displays as part of their marketing for 3M. 10.ADJOURNMENT Chairperson Jenkinsadjourned the meeting at 7:58p.m. September 20, 2018 3 Housingand Economic Development CommissionMeetingMinutes HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 17, 2019 Melinda Coleman, City Manager REPORT TO: REPORT FROM: Michael Martin, AICP, Economic Development Coordinator PRESENTER: Michael Martin, AICP, Economic Development Coordinator 2018 Business Engagement Program AGENDA ITEM: Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: At the January Housing and Economic Development Commission (HEDC) meeting, staff will present the findings of the 2018 business engagement effort. The Saint Paul Area Chamber of Commerce (SPACC) gave a full presentation on the report at the Community Engagement Breakfast on November 1, 2018. The report is included with this memo. Recommended Action: No action required. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0. Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Financial SustainabilityIntegrated CommunicationTargeted Redevelopment Operational Effectiveness Community Inclusiveness Infrastructure & Asset Mgmt. The business engagement program was developed using the following principles as a guide to what the program should include: • Demonstrate to businesses that the community appreciates their presence • Help existing businesses solve immediate problems • Increase businesses' ability to compete in regional, national, and global markets • Establish a strategic plan for economic development • Build community capacity to sustain growth and development over the long term These principles and the resulting recommendations build off of the University of Minnesota Extension’s course that was taken by staff members, council members and housing and economic development commission (HEDC) members in 2016. The coursework focused on what to consider when building a program, how to implement the program, who to involve, how to respond to concerns and how to sustain initiatives over time. Background In 2018, 14 businesses and organizations were visited and SPACC aggregated the results to produce the attached report. Below are the key findings contained in the report – these findings and the entire report will be discussed at the January HEDC meeting. Workforce challenges were the top issue voiced by every company we visited except one Companies in the community are well positioned and planning for growth in both revenue and employees in the coming years Support for the Maplewood Police Department and the strong relationships the department has built make them the primary ambassador between businesses and city government After review of the 2018 results, staff will engage the HEDC on a discussion regarding 2019’s efforts. This city will once again be working with SPACC to engage Maplewood’s business community. Staff is also looking for feedback on the 2018 process and what could be altered or improved in 2019 to make this effort more effective. Staff is looking for feedback on everything from which businesses are identified for visits to the process for signing up to go on visits. Attachments 1. 2018 Business Engagement Final Report (Separate Attachment) HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 15, 2019 Melinda Coleman, City Manager REPORT TO: REPORT FROM: Michael Martin, AICP, Economic Development Coordinator PRESENTER: Michael Martin, AICP, Economic Development Coordinator Housing and Economic Development Commission Rules of Procedure – AGENDA ITEM: Annual Review Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: The Housing and Economic Development Commission’s (HEDC) Rules of Procedure are due to be reviewed and revised. Recommended Action: Approve the revised HEDC’s Rules of Procedure attached to this report. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0. Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Financial Sustainability Integrated Communication Targeted Redevelopment Operational Effectiveness Community Inclusiveness Infrastructure & Asset Mgmt. The HEDC’s Rules of Procedure guide the operation of the group. Background The Rules of Procedure for the HEDC are due for a review. It has been several years since this has taken place and staff is recommending several revisions be made to the HEDC’s Rules of Procedure. The main recommended change deals with the agenda format of HEDC meetings. Currently, the Rules of Procedure states there shall be an agenda item called “Visitor Presentations.” However, last year members of the Planning Commission expressed concern with the City Council eliminating the visitor section from its agenda that all city commissions should follow suit. Removing Visitor Presentations from the HEDC agenda will be consistent with the City Council’s agenda policy. The remaining revisions are housekeeping items. This includes revising the Rules to reflect when the HEDC meets and the HEDC should start reviewing these Rules annually to be consistent with other commissions. All recommended revisions of the HEDC’s Rules of Procedure require City Council approval. Attachments 1. Revised Housing and Economic Development Commission’s Rules of Procedure Attachment 1 HOUSING AND ECONOMIC DEVELOPMENT COMMISSION RULES OF PROCEDURE Adopted by Housing and Economic Development Commission on February 28, 2013 Amendments Proposed January 15, 2019 (Proposed Additions Underlined; Deletions Are Crossed Out We, the members of the Housing and Economic Development Commission of the City of Maplewood, Minnesota, created pursuant to the Maplewood Code of Ordinances, hereby adopt the following "Rules of Procedure," subject to the provisions of said Article, which is hereby made a part of these Rules: A. APPOINTMENTS The City Council shall make appointments to the Housing and Economic Development Commission by following the current city appointment policy. B. MEETINGS 1. All meetings shall be held in the council chambers in Maplewood City Hall, 1830 County Road B East, unless otherwise directed by the chairperson or staff, in which case at least 24 hours notice will be given to all commissioners. 2. Regular meetings shall be held at 6 7 p.m. on the third Thursday second Wednesday of each quarter calendar month, provided that when the meeting falls on a legal holiday, such meeting shall be rescheduled. 3. Special meetings may be held upon call by the chairperson or in his/her absence, by the vice chairperson, or by any other commissioner with the concurrence of a majority of the commissioners with at least 72 hours notice to all commissioners. C. COMMUNITY DEVELOPMENT DEPARTMENT In addition to carrying out the duties prescribed in the city ordinance the Community Development Director planner or a designated replacement shall: 1. Prepare the agenda for each meeting. 2. Act as technical advisor on any matter which comes before the commission. 3. Make written recommendations to the commission on matters referred to the commission. 4. Schedule any matter with the city council that has been reviewed by the commission that requires city council approval. Attachment 1 D. AGENDA 1. Copies of the agenda, together with pertinent staff reports and copies of the minutes of the previous meeting shall be made available to each member of the commission no later than three days prior to the next scheduled meeting. 2. The agenda format shall generally read as follows: a. Call to Order b. Roll Call c. Approval of Agenda d. Approval of Minutes e. New Business f. Unfinished Business g. Visitor Presentations g h. Commissioner Presentations h i. Staff Presentations I j. Adjournment E. QUORUM 1. A simple majority of the current membership of the commissioners shall constitute a quorum. 2. Any action by the commission shall require a majority vote of the members present. F. ELECTION OF OFFICERS A chairperson and vice-chairperson shall be elected at the regular meeting of the housing and economic development commission in January December. New terms begin in January following the election. Once elected, chairs and vice-chairs shall serve until a successor is elected. G. DUTIES OF THE CHAIRPERSON 1. In addition to the duties prescribed in the ordinance, the chair shall represent the commission at each city council meeting where a commission item is on the agenda, to present the commission’s recommendations and to answer questions from the city council regarding the decision. If the chair is unavailable to attend the city council meeting, the chair will appoint a representative from the commission. H. CHAIRPERSON AND VICE-CHAIRPERSON 1. The chairperson, vice chairperson, and such officers as the commission may decide shall be elected and assume duties according to the current ordinance. 2. In the absence of the chairperson, the vice chairperson shall perform all duties required of the chairperson. When both the chairperson and the vice chairperson are absent, the attending members shall elect a chairperson pro tem. 3. If the chairperson resigns from or is otherwise no longer on the commission, the vice Attachment 1 chairperson shall become the acting chairperson until the commission can hold an election for new officers. If the vice chairperson resigns or is otherwise no longer on the commission, the commission will elect a new vice chairperson at the next possible commission meeting. I. TEMPORARY COMMITTEES 1. The commission shall elect by a majority vote such standing committees and temporary committees as may be required and such committees will be charged with the duties, examinations, investigations, and inquiries relative to subjects assigned by the chair. 2. No standing or temporary committee shall have the power to commit the commission to the endorsement of any plan or program without the express approval of the commission. J. VACANCIES The Housing and Economic Development Commission positions shall be vacated or recommended to the City Council for vacation according to the current housing and economic development ordinances. K. AMENDMENT OR SUSPENSION OF RULES 1. Any of the foregoing rules may be temporarily suspended by a majority vote of the commissioners present. 2. The "Rules of Procedure" may be amended at any regular meeting by a supermajority vote. L. RULES OF ORDER In all points not covered by these rules, the commission shall be governed in its procedures st by Rosenberg’s Rules of Order, Simple Parliamentary Procedures for the 21 Century. M. ANNUAL REVIEW These Rules of Procedure shall be reviewed by the Housing and Economic Development Commission at the first meeting of each year. HOUSING & ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Meeting Date January 17, 2019 Mark Jenkins, Housing and Economic Development Commission REPORT TO: REPORT FROM: Michael Martin, AICP, Economic Development Coordinator PRESENTER: Michael Martin, AICP, Economic Development Coordinator 2018 Housing and Economic Development Commission Annual Report AGENDA ITEM: Action Requested: Motion Discussion Public Hearing Form of Action: Resolution Ordinance Contract/Agreement Proclamation Policy Issue: Maplewood City Ordinance requires the Housing and Economic Development Commission (HEDC) to: S ubmit a written report of its activities and/or recommendations for modification of the enabling resolution to the council at least annually. Recommended Action: Staff is recommending approval of the HEDC 2018 Annual Report. Fiscal Impact: Is There a Fiscal Impact? No Yes, the true or estimated cost is $0. Financing source(s): Adopted Budget Budget Modification New Revenue Source Use of Reserves Other: N/A Strategic Plan Relevance: Financial Sustainability Integrated Communication Targeted Redevelopment Operational Effectiveness Community Inclusiveness Infrastructure & Asset Mgmt. City of Maplewood’s board and commissions report annually the activities of the past year to the City Council. Background Attached to this memo is the HEDC’s 2018 Annual Report. The HEDC’s Annual Report is part of the larger Community Development Annual Report that also includes the annual reports for the Planning Commission, Community Design Review Board and Environment and Natural Resources Commission. In coordination with staff from the Community Development Department, many of the projects and initiatives worked on by the City and the department require and rely on feedback and guidance from multiple board and commissions. A hard copy of the entire 2018 Community Development Annual Report will be handed out to Commission Members at the January 17, 2019 meeting. The 2018 Annual Report is scheduled to be presented to the City Council for its approval at the meeting on February 25, 2019. Attachments 1. 2018 HEDC Annual Report Attachment 1 HEDC 2018 Actions and Activities2018 Maplewood Achievement Awards In 2018, the Housing and Economic Development Commission (HEDC) continued its commitment to development and redevelopment in the City of Maplewood by working on several projects. The HEDC spent a good portion of its year giving direction and guidance to the City’s efforts on proactive planning for Maplewood’s future. The HEDC wrapped up its work on the 2040 Comprehensive Plan and then began working on the North End Vision Study, which is examining a key area of the City’s future. The North End is home to the Maplewood Mall and St. John’s Hospital and is a vital component of this region of the Twin Cities. The North End Vision Study is working to ensure this neighborhood retains its importance and becomes even more robust. The HEDC awarded its annual Maplewood Achievement Awards at the State of Maplewood Luncheon on January 11, 2018. Pictured above, Gethsemane Lutheran The HEDC continued its championing of the City’s Church accepting its award with members of the City Council. business outreach efforts. The City of Maplewood now holds regular Maplewood Business Council meetings GETHSEMANE in partnership with the Saint Paul Area Chamber of PREMIER LUTHERAN YMCA Commerce to discuss topics affecting the business BANK COMMUNITY CHURCH community. ENTREPRENEURSHIP/ CONTRIBUTION ENVIRONMENTAL INNOVATION/GROWTH SUSTAINABILITY In January, the annual State of Maplewood was held. At the State of Maplewood, the HEDC awards three businesses and organizations that are excelling. The HEDC Project Review -Comparative Maplewood Achievement Awards have fast become an anticipated annual event to recognize the great work being 25 done in Maplewood. This last November, HEDC chair Mark 21 Jenkins served as moderator of the fourth annual Business 20 Community Engagement Breakfast. 18 16 Major HEDC Projects — 2018 1515 14 15 2040 Comprehensive Plan Housing and Economic 11 Development Chapters 9 10 Property Acquisitions Gladstone Neighborhood Rental Housing Licensing Development of Code 5 North End Vision Study Review and Discussion Maplewood Business Council Previews and Recaps 0 Business Engagement Program Visits 20112012201320142015201620172018 Maplewood Achievement Awards Selection Number of Projects Review - Year-by-Year Comparison 8 Attachment 1 HEDC Meets on 3rd Thursday of Every Quarter – 6 p.m. Business Engagement Program 2018 HEDC Membership This year the HEDC, City Council, City Staff and the Saint Paul Area Mark Jenkins — Chairperson Chamber of Commerce (SPACC) conducted the City’s Business Member since 1/25/10; Term Expires 9/30/19 Engagement Program to engage the local business community. This was the second year of this effort and 14 Maplewood businesses were visited. Of the 14 visits, a HEDC member was able to represent the commission Joy Tkachuck — Vice-chairperson generated into a report. The Member since 9/25/06; Term Expires 9/30/19 report focused on ways the City can be more proactive in making connections with the Denis Dupee — Member local business community. Member since 11/27/17; Term Expires 9/30/20 observations from each of the visits will feed into the City’s knowledge base to Brian Finley — Member help policymakers with Member since 1/25/16; Term Expires 9/30/20 decisions that affect the business community. The HEDC has worked Jennifer Sauer — Member several years to create Member since 4/25/11; Term Expires 9/30/19 this program and is looking forward to continuing it into 2019. The HEDC will Benosi Maduka — Member work with City Staff and the City Council to outline next Member since 8/8/16; Term Expires 9/30/18* steps to keep the momentum generated by this effort * Mr. Maduka is not seeking an additional term, so there going strong in the years to come. Looking Ahead to 2019 Dennis Unger — Member Member since 7/25/11; Term Expires 9/30/21 The HEDC will continue to implement its work plan and concentrate on key redevelopment areas within the City throughout 2019. Now that the City has acquired several properties within the Gladstone Neighborhood, Marylee Abrams — the City will rely heavily on the HEDC as new projects and opportunities City Council Liaison develop within this key redevelopment area. The HEDC will be a guiding force in the development of the North End Vision Study. In addition to the Maplewood Mall and St. John’s Hospital being such important factors in the North End, the Rush Line BRT line will have two transit stops within Michael Martin — Staff Liaison this neighborhood bringing increased connectivity to the rest of the region. Lastly, the HEDC has been asked by the City Council to review and consider a rental housing licensing program to be implemented later in the year. Rental housing licensing is being considered as a way to improve the City’s housing stock and conditions. 9 HOUSING & ECONOMIC DEVELOPMENT COMMISSIONSTAFF REPORT Meeting Date January 17, 2019 REPORT TO: Melinda Coleman, City Manager REPORT FROM:Michael Martin, Economic Development Coordinator PRESENTOR: Michael Martin, Economic Development Coordinator AGENDA ITEM:Rental Housing Licensing Discussion Action Requested:MotionDiscussionPublic Hearing Form of Action:ResolutionOrdinanceContract/AgreementProclamation Policy Issue: City staff will lead a discussion with the Housing and Economic Development Commission (HEDC) regarding a proposed rental housing licensing program. Recommended Motion: Provide feedbackto staff on draft ordinance and policies. Fiscal Impact: Is There a Fiscal Impact?NoYes, the true or estimated cost is$0. Financing source(s):Adopted BudgetBudget ModificationNew Revenue Source Use of ReservesOther:Implementing a rental housing program will have implications to the city’s budget. However, this item is only for discussion purposes at this time. Strategic Plan Relevance: Financial SustainabilityIntegrated CommunicationTargeted Redevelopment Operational EffectivenessCommunity InclusivenessInfrastructure & Asset Mgmt. The city’s Public Safety andCommunity Development departments work together regarding safety, property maintenance and code enforcementissues. Background At the HEDC’s last meeting, a discussion was held regarding a proposed rental housing licensing program. Staff is bringing this item back to the HEDC for further discussion and expects that the next couple of commission meetings will also deal with this issue. This is before the HEDC because the City Council expressed an interest in developing a rental housing licensing program. Staff has approached this effort with the guiding principle that any amendments to existing policies need to be cost neutral. Meaning any new programs will need to fund itself without any increases to the city’s general tax levy. However, staff has also been tasked with incentivizing good performance from property owners and landlords of rental properties which would result in inspections occurring with less regularity and impacting fee revenue generation. While this item is being brought to the Housing and Economic Development Commission for discussion purposes, staff will be looking for guidance from the Housing and Economic Development Commissionon desired amendments to the city’s rental housing policies. Questions from HEDC’s September 20, 2018 Meeting Staff wanted to ensure we are following up on the questions received at the HEDC’s last meeting. A summary of those questions with responses in italics are below: Are other agencies already doingsimilar inspections for subsidized units/tenants? o Yes, based on funding sources some units in Maplewood are inspected. However, the City is not informed or part of this process and only a small portion of units are affected by existing inspections programs. A City inspection program will ensure units are maintained at the standards set by the City Council. Are there different standards between subsidized and market ratehousing? o No market-rate units are currently inspected in Maplewood. Maplewood’s program would treat all units equally. Is there is a gap or a need that the city is trying to address? o A rental licensing program will give the City another tool in addressingchronic property issues. A program will also establish a commonset of expectations for property owner and rentersas tothe standard of rental housing in Maplewood. How domanufactured home parks that have rentals fit in? o All dwelling units that are rented by the property owner would be subject to this program. The parks themselves would not be affected, but if any units within a park are rented they would require a license. We want to make sure the city is not creating disincentives for rentals particularly single- family homes–there should be incentives for engaging in the rental licensing program. o Staff is proposing that the program include incentives for rental units that show good performance. Meaning wellperforming properties will be inspected less often reducing potential fees. City should make sure to give landlords plenty of time to account for new fees and requirements. o Timing of program will ultimatelybe decided by the City Council but at this time, staff is proposing a January 1, 2020 start date. Giving the city almost a full year to work out the details of adopting an ordinance and putting into place the proper policies to regulating this program, while also giving property owners time to adjust to new requirements. What are the benefits of this program?If there are already problem properties or code issues aren’t there tools the city can utilize to address the issues? o Implementing a rental licensing program will enable the city to have another tool to utilize in ensuring a quality housing environmentfor all residents. There are currently rental properties in Maplewood that are frequent consumers of city services because of code issues and violations. A licensing program will ensure both the landlord and renter understand the expectations of operating a rental business in the city. The program also give the city and property owner a clear pathway to rectify unresolved property issues. Currently, the city has no standards to how rental units are leased or any ability to require property owners to convey to the city contact information in case of emergency situations. The program will also allow the city to inspect units in all rental structures so residents can be confident on a quality rental housing stock in Maplewood. Draft Ordinance and Key Points A first draftof a rental licensing program ordinance is attached to this report. This is a starting point and staff expects with discussions being held with the HEDC and City Council –in addition to public engagement with property owners –this ordinancewill change to better servethe needs of Maplewood. Key points of this proposed, draftordinance include: Ownersor their property managers are required to attend a Crime-Free Multi-Housing Phase 1 training or its equivalent. Rental properties must pass a rental property inspection conducted by a City Housing Inspector and must continue to maintain theproperty accordance to code requirements. Owners or their property managers are required to screen all potential tenants byusing a written rental application which containssufficient information to conduct a Criminal Background check and a Credit History check. Owners or their property managers are required to andmust use a written lease for all tenants. Leases must require tenantstosign a “Lease Addendum for Crime-Free/Drug-Free Housing.” City will conduct a CriminalBackground Investigation on the Property Owner(s)(and representatives). Property Owner must provide 24 hour contactinformation for a person who resides within the TwinCity metropolitan service area who is responsible forcode compliance of the rental property. This personwill be either the owner or agent of the property. City Manager may deny or not renewa license and the City Council may revoke or suspend arental license for failure to address any tenant orproperty issues. Inspection Schedule Incentives The proposed, draft ordinance directs the City Manager to develop a policy –to be adopted by the City Council –to establish an inspection schedule that incentivizes rental properties that are well performing. This clause will beincluded based on feedback received from both the City Council and HEDC. An inspection schedule will be developed that u ses criteria based upon State and City requirements. Inspection criteria and evaluatorguidelines will be provided toowners and posted on the City’s website. The license type–and inspection schedule –will be based on the average number of code violations per inspected property.It would also be the City’s intent to inspect approximately a 1/3 of units of a rental building. AN EXAMPLE OF LICENSE TYPES AND INSPECTION SCHEDULES Property Code Violations Criteria (Property Code Only) License CategoryProperty Code Violations per Inspected Unit Type A –3 Year0-.50 Type B –2 YearGreater than .50 but not more than 1.0 Type C –1 YearGreater than 1.0 but not more than 1.5 Type D –6 MonthsGreater than 1.5 Example Based on the table above, an 11-unit property would be required to have 4units inspected (33% x 11 = 3.63) To receive a Type A License, the 4 units could have no more than 2 violations averaged for the units inspected (4 x .50 = 2) To receive a Type B License, the 4 units could have no more than 4 violations averaged for the units inspected (4 x 1 = 4) To receive a Type C License, the 4 units could have no more than 6 violations averaged for the units inspected (4 x 1.5 = 6) Meaning a property holding a Type A license would be inspected every three years while a Type C license would be inspected yearly. Regardless of license type all properties would be required to be licensed annually–just the inspections are subject to longer periods. Again, this is just an example of the direction staff sees this ordinance and inspections schedule incentive heading at this point. Planned Outreach Staff will be updating the City Council on the HEDC’s comments and providing an overview of the proposed, draft ordinance at an upcoming workshop. Staff will also be scheduling two outreach meetings to occur in February and March that will be focused on engaging existing rental property owners. The City will also advertise these meetings in City publications and on the website. The City will also conduct online outreach via a survey and other tools the City uses to gather feedback. After the outreach activities haveoccurred,staff will bring this issue back to the HEDC for a final review. The HEDC’s recommendation willthenbe forwarded to the City Council for final action in late spring. The City Council will also hold a public hearing prior to taking final action. Attachments 1.Proposed, Draft Rental License Ordinance DRAFT ORDINANCE NO. ___ AN ORDINANCE ESTABLISHING RENTAL LICENSING REQUIREMENT FOR RENTAL DWELLINGUNITS DRAFT The Maplewood City Council _________ the following ordinanceto the Maplewood Code of Ordinances. ARTICLE XIII-LICENSING OF RENTAL DWELLINGS 12-600-Purpose. It is the purpose of this Chapter to protect the public health, safety and welfare of citizens of the City by adopting a rental dwelling licensing, inspection and maintenance program that corrects substandard conditions, maintains a standard for existing and newly constructed rental dwellings, and ensures neighborhood stability in the City. The operation of rental properties is a business enterprise that includes certain responsibilities. Rental dwelling Owners and Managers are responsible to take such reasonable steps as are necessary to ensure that the citizens who occupy such rental units, as well as neighboring properties, may pursue the quiet enjoyment of the normal activities of life in surroundings that are safe, secure, and sanitary, free from noise, nuisances and annoyances, and free from unreasonable fears about safety of persons and property. 12-601-Definitions. Words used in this Chapter shall have the following meanings unless otherwise defined in this Chapter. (1)Apartmentmeans a community, complex or building having a common Owner and containing at least one rental dwelling unit. (2)City Approved Inspector's Reportor Inspection Reportmeans a rental dwelling inspection report prepared and signed by a City rental housing inspector or inspector contracted by the City to conduct an inspection and provide a report to the City. (3)City Managermeans the City of Maplewood City Manager or his or her designee. (4)Dwellingmeans a building or one or more portions of a building occupied or intended to be occupied for residential purposes of a continued nature. (5)Let for Occupancyor to Letor to Rentmeans to permit possession or occupancy of a dwelling or rental dwelling unit by a person who is not the legal Owner of record thereof, pursuant to the terms of a written or unwritten lease. (6)Occupantmeans any person occupying, living, or sleeping or having possession of a space within any dwelling. (7)Operatemeans to charge a rental charge, fee or other form of monetary or non-monetary compensation for the use of a rental dwelling unit. (8)Managermeans any person who has charge, care or control of a dwelling that is required to be licensed under this Chapter. (9)Owneror Licenseemeans any person having a legal or equitable interest in a dwelling that is required to be licensed under this Chapter asrecorded in the official State, County or City records as holding title to the property or otherwise having control of the property. (10)Personmay be an individual, corporation, firm, association, company, partnership, organization or any other group acting as a unit. (11)Rental Dwellingmeans any dwelling used for residential occupancy by one or more Persons who are not the Owner or a member of the Owner's immediate family. (12)Rental Dwelling Inspection Certificatemeans a certificate issued by the City Manager after the rental dwelling or rental dwelling unit has passed a rental dwelling inspection. (13)Rental Dwelling Unitmeans any room or rooms, or space, in any rental dwelling designed or used for residential occupancy by one or more Persons who are not the Owner or the Owner's qualifying relative. Qualifying relative is defined as: parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew or niece. This relationship may be either by blood or by marriage. (14)Tenantmeans any person occupying a dwelling unit or having possession of a space within a dwelling unit who pays, in any manner, for the right to occupy such space or who has a leasehold right to occupy the dwelling unit. 12-602-License Required. (1)General Rule. No Person may operate a rental dwelling or rental dwelling unit in the City without a license for each building in which a rental dwelling or rental dwelling unit is located. (2)Exceptions. (a)These rental licensing requirements do not apply to residential property that is occupied by the Owner or the Owner's qualifying relative. (b)These rental licensing requirements do not apply to residential property that is owned by a person commonly referred to as a "Snowbird" when the property is rented to another person for a period of less than 120 consecutive days while the Owner is residing out of the State of Minnesota. The Owner must occupy the property during the remainder of the year. (c)These rental licensing requirements do not apply to Minnesota Department of Health– licensed rest homes, convalescent care facilities, nursing homes, hotels, motels, managed home-owner associations, or cooperatives. (3)Application Requirements. An Owner of a rental dwelling or rental dwelling unit must complete an application on an official application form provided by the City and submit the required application fee. Renewal applications may be submitted by an Owner or Manager on a simplified renewal form provided by the City. The City Manager must be notified in writing within 30 days of any changes to the information provided on the application. Applications must include the following information at a minimum: (a)The name, address, telephone number, e-mail address, and date of birth of the Property Owner. (b)The name, address, telephone number, e-mail address, and date of birth of a designated local Manager if the Owner resides outside of the Twin Cities metropolitan service area. (c)The local address of the rental dwelling and the number of rental dwelling units within the dwelling. (4)Property Contact Information. For single-family residential dwellings, the license applicant must provide 24 hour contact information for one person in any of the following categories. For all other types of dwellings, the license applicant must provide 24 hour contact information for two people in any of the following categories. (a)At least one Owner of the rental dwelling or rental dwelling unit; (b)At least one Person, if different from the Owner, who is responsible for managing the property in compliance with this and any other Code requirement pertaining to the rental dwelling or rental dwelling unit who must reside in the Twin Cities metropolitan service area; or (c)If the Owner uses a property management company for management of the rental dwelling or rental dwelling unit, the name and contact information of the person at the property management company responsible for managing the rental dwelling or rental dwelling unit. (5)Number and Type of Units. The license application must contain the number of units and types of units (condominium, apartment, townhome, etc.) within the rental dwelling. (6)Rental Dwelling Inspection Certificate. The licenseapplication must be accompanied by a rental dwelling inspection certificate including an applicable inspection fee before a rental license will be issued. Rental dwellings with four or more units will be inspected on a schedule between one and four years as determined by the City Manager. Rental dwellings with less than four units will be inspected on a schedule between one and three years as determined by the City Manager. The City Manager will adopt an inspection policy for rental dwellings taking into account the property's inspection history, history of compliance with Federal, State and Local Law, and the history of inspections, property maintenance violations, and other code enforcement violations at the property. (7)Written Tenant Application and LeaseAgreement Required. The Licensee must screen all potential tenants using a written tenant application. The Licensee must use a written lease agreement for all tenants. The Licensee must have all tenants execute a Minnesota Crime Free Housing Lease Addendum. The written tenant application must include sufficient information so that the Licensee can conduct appropriate criminal background and credit checks on prospective tenants. The written tenant application and written lease agreement and the Minnesota Crime Free Housing Lease Addendum for each tenant must be part of the Licensee's files. Upon request the Licensee must show proof, satisfactory to the City, that the Licensee is maintaining the documents required by this section. Failure to use, maintain, orprovide these documents to the City upon request is a violation of this Chapter. (8)Fees. There shall be a licensing fee as established by the City’sFee Schedule.All fees andfines shall be charged to and payable by the Property Owner. 12-603-Changes in Ownership. A license is non-transferable. If there is a change in the ownership of the rental dwelling or rental dwelling unit the license automatically expires. The new owner must apply for a license under this Chapter prior to the change in ownership. 12-604-Changes in the Rental Dwelling or Rental Dwelling Unit. (1)If changes are made in the number or type of units within the licensed premises, the Licensee shall file an application to amend the rental license. Depending on the nature of the changes, the City may require a new property inspection. (2)Single Family Conversion to Rental. A single family home that is converted to a rental property shall pay a conversion fee. The conversion fee shall be established by resolution of the City Council. The conversion fee includes the rental license application fee and inspection fee for the first year and includes fees for monitoring the property during the first year of operation as a rental property. Monitoring will be conducted on a schedule to be determined by the City Manager. Fees charged for required educational training are not included in the conversion fee. 12-605-Annual License. Licenses are valid for one year from the date of issuance. 12-606-Tenant Background Checks and Roster. As a condition of the license, the Licensee must, as a continuing obligation, conduct criminal background checks and credit history checks on all prospective tenants and maintain a current roster of tenants and other persons who have a lawful right to occupy the rental dwelling or rental dwelling units. The Licensee must designate the name of the person or persons who will have possession of the roster and must promptly notify the City Manager of any change in the identity, address or telephone numbers of the designee. The roster must be available for inspection by City officials upon request. If a person under investigation by the City claims a lawful right to occupy a rental dwelling unit or be present on the rental property, the City Manager may request toinspect the lease for the unit in which the person claims to reside. Upon such request, the Licensee shall provide the lease for inspection. 12-607-Notification Requirements for Public Hearings. The Licensee must, as a continuing obligation of the license, provide written notice to tenants or in the alternative, post the written notice in the lobby or common area of the rental dwelling for any public hearing notice received by the Licensee that pertains to the rental dwelling, the rental dwelling unit,the property on which the rental dwelling is located or any adjacent rights of way. 12-608-Display of License Certificate. For dwellings containing four or more dwelling units, the rental license certificate must be displayed in the lobby or other common area visibly accessible to all tenants of the licensed dwelling. The license certificate must be encased in a frame with a clear glass or plastic surface over the certificate and must be mounted securely to a wall. For dwellings containing less than four dwelling units, the Licensee must provide a copy of the rental license certificate to each tenant by attaching the copy to the Tenant's copy of the executed lease agreement. 12-609-Compliance with Minn. Stat. §211B.20. Licensee must comply with the requirements of Minn. Stat. §211B.20 and allow access to candidates who have filed for election to public office and seek admittance to the rental dwelling solely for the purpose of campaigning. 12-610-Crime-Free Rental Housing Phase I Training Required. The Licensee or the Manager with control over the rental dwellings and rental dwelling units must attend, at a minimum, the Phase I crime-free rental housing educational course or similar course as approved by the City Manager as a condition of receiving or renewing a license. The cost of attending the educational requirements under this section shall be paid in addition to any license and inspection fees. Course attendance will be required on a schedule to be determined by the City Manager. 12-611-Responsibility for Acts of Manager. Licensees are responsible for the acts or omissions of their Managers as it pertains to the rental dwelling. 12-612-Maintenance Standards. (1)It is the responsibilityof the Licensee to assure that every rental dwelling and rental dwelling unit is maintained in compliance with all City Ordinances and State and Federal laws. A violation of any of the following City Code Titles or Chapters constitutes a public nuisance and may be abated under the provisions of the NuisancesChapter (18-26) or Administrative Offenses Chapter(Sec 1- 17)of City Code: a.Building and Building Regulations Code (Chapter 12), b.Zoning Code(Chapter 44), c.Animals Code (Chapter 10), d.Fire Prevention and Protection Code (Chapter 20), e.Offenses and Miscellaneous Provisions (Chapter 24). (2)Snow and Ice Removal. Rental dwellings containing four or more dwelling units must remove snowfalls of one inch or more, or successive snowfalls accumulating to a depth of one inch or more, from all walkways, sidewalks and steps within 12 hours of cessation of the snowfall. Rental dwellings containing four or more dwelling units must remove snowfalls of three inches or more, or successive snowfallsaccumulating to a depth of three inches or more from parking aisles, parking areas, and drives within 72 hours of cessation of the snowfall. (3)Inspections. The Building Official, Building Inspector, Fire Inspector, Police Chief and their respective representatives are authorized to make inspections reasonably necessary to enforce this Chapter. All authorized inspectors have the authority to enter any rental dwelling or rental dwelling unit at all reasonable times. Pursuant to Minnesota Statutes, Section 504B.211, the Licensee is responsible for scheduling the inspection and notifying any existing tenant of the inspection. The Licensee must provide access to the requesting City Official at the date and time of the scheduled inspection. Failure to provide access for any reason may result in a re-inspection fee, in addition to any other sanctions imposed for noncompliance. (4)Access by Occupant. Each occupant of a rental dwelling or rental dwelling unit shall give the Licensee or Manager or authorized City Official access to any part of such rental dwelling or rental dwelling unit at reasonable times for the purpose of inspection, maintenance, repairs or alterations as are necessary to comply with the provisions of this Chapter. (5)Recycling. In addition to garbage pickup, rental dwellings must have recycling containers available for all occupants. Rental dwellings with four or more dwelling units must provide weekly recycling service at a minimum. 12-613-License Denial, Suspension, or Revocation. (1)Grounds for Denial, Suspension or Revocation. The City Manager may deny or not renew a license and the City Council may revoke or suspend a license for any of the following reasons that shall also constitute a violation of this Chapter: (a)The property does not conform to City Code Citation Needed, Land Development Regulations; (b)The property does not comply with a health, building, maintenance, or other provisions of the City Code or State Law; (c)The Licensee has failed to pay the license fee, inspection fees, the investigation fee, or a fine that has been imposed; (d)The Licensee has made fraudulent statements, misrepresentations, or false statements in the application or investigation or in any information required by this Chapter; (e)Conviction of a background check crime as defined in Minnesota Statutes Section 299C.67, subd.2, as may be amended from time to time; or any crime related to the business licensed and failure to show, by competent evidence, rehabilitation and present fitness to perform the duties of the business; (f)Operating or allowing the rental property to be used in such a manner as to constitute a breach of the peace, a menace to the health, safety, and welfare of the public, or a disturbance of the peace or comfort of the residents of the City, upon recommendation of the Chief of Police; (g)Actions unauthorized or beyond the scope of the license granted; (h)The Licensee's rental license to operate a rental dwelling in another jurisdiction has been denied, revoked, or suspended; (i)Failure to schedule and/or allow rental or building inspections of the licensed premises, for the purpose of ensuring compliance with rental licensing requirements, City Code requirements, State building codes, or other applicable State or Federal law; (j)Failure to continuously comply with all conditions required as precedent to the approval of the license; (k)Real estate or personal property taxes have become delinquent and the property owner and the Licensee are the same person or entity, or have any common ownership where they are a different person or entity; (l)Violation of any regulation or provision of the City Code applicable to the activity for which the license has been granted, or any regulation or State or Federal law that may be applicable; (m)Excessive calls for service as determined by the Chief of Police based on the number and nature of the calls compared to the number of dwelling units on the property when the Licensee has been notified of the calls by the Chief of Police and the Licensee has failed to supply an appropriate writtenaction plan for reducing the calls for service, or when the calls for service exceed an established threshold a second time within 12 months of completing an action plan for previously exceeding the threshold. (n)Failure to actively pursue the eviction of tenants who have violated the provisions of the crime free lease addendum or who have otherwise created a nuisance in violation of the provisions of the written lease; and (o)Other good cause as determined by the City Council after conducting a public hearing. The City Council may revoke a license or suspend a license for a set period of time or until violations of City Code, or State or Federal law are corrected and, in addition, impose a civil penalty for each violation or impose a combination of these sanctions. (2)Temporary Suspension. The City Council may temporarily suspend a license pending a hearing on the suspension or revocation when, in its judgment, the public health, safety, and welfare is endangered by the continuance of the licensed activity. (3)Notice. Before the suspension or revocation of the rental license, the City must provide written notice informing the Licensee of the right to a hearing. The notice must provide at least 20 calendar days notice of the time and place of the hearing and muststate the grounds for the proposed suspension or revocation of the license. The notice may be served upon the Licensee personally, by leaving the notice at the licensed premises with the designated Manager, or by certified mail to the address listed on the license application. (4)Hearing. A hearing will be conducted before the City Council at a public meeting. The Licensee shall have the right to be represented by Counsel, the right to respond to the charged violations, and the right to present evidence through witnesses. The rules of evidence do not apply to the hearing and the City Council may rely on all evidence it determines to be reasonably credible. The determination to suspend or revoke the license shall be made upon a preponderance of the evidence. It is not necessary that criminal charges be brought in order to support a suspension or revocation of a license violation nor does the dismissal or acquittal of such a criminal charge operate as a bar to suspension or revocation. (5)Final Decision. Followingthe hearing, the Council may revoke or suspend the license for all or any part of the licensed premises, may stay the revocation or suspension upon such terms and conditions as it deems reasonable and necessary to accomplish the purposes of this Chapter, or grant or continue the license. If the Council suspends or revokes the rental license, the Council may also order that any rent payable during the suspension or revocation period be paid into an escrow account to be maintained by the City. The City may use the escrowed funds to pay for the cost of abating violations at the property. Funds that remain in the escrow account after paying for abatement items shall be returned to the Licensee upon the Licensee receiving a valid rental license or upon the sale of the rental to an unrelated purchaser and after the rental dwelling has been brought into full compliance with City Code. The decision by the City Council following a hearing is final. Upon a decision to suspend a license, no new application from the current Licensee for the same rental dwelling will be accepted for a period of time specified in the Council's decision, not exceeding one year. A decision to revoke a license will result in no new application being accepted from the same Licensee for a minimum of one year. (6)Appeal of Decision to Deny or not Renew License. If the City Manager denies or does not renew a license, the Licensee shall be notified in writing, specifying the reasons for denying or not renewing the license. If the Licensee corrects the conditions leading to the denial or non-renewal within seven days, the City Manager shall issue the license. A Licensee whose license has been denied or not renewed by the City Manager may appeal the decision by filing with the City Manager a written notice of appeal within seven days of receiving notice of the City Manager's decision. The hearing will be conducted pursuant to 12-916(4). (7)Notification to Tenants. Upon denial, suspension, revocation or other enforcement action of a license, the City will notify all affected tenants of the action against the license. If the license is revoked or suspended the Licensee may not let, rent or allow to be occupied any vacant dwelling units, or dwelling units that become vacant during the revocation or suspension period. 12-614-Summary Action. (1)Emergency. When the conduct of any Licensee, Manager, or Tenant, or the condition of the rental dwelling or rental dwelling unit, or the property in or on which it is located, is detrimental to the public health, sanitation, safety and general welfare of the community, or residents of the rental dwelling or rental dwelling unit so as to constitute a nuisance, fire hazard, or other unsafe or dangerous condition and thus give rise to an emergency, the Building Officialhas the authority to summarily condemn or close individual rental dwelling units or areas of the rental dwelling as the Building Official deems necessary, or may take other action to protect the residents and general public as deemed necessary. (2)Notice. Notice of summary action will be mailed to the Licensee via first class mail, postage prepaid and posted at the dwelling units or areas affected and will describe the dwelling units or areas affected. No person shall remove the posted notice other than the Building Official or a designated representative. (3)Costs. If the dwelling or dwelling unit is not condemned or closed pursuant to this section, the costs of any services performed by the City to prevent the condemnation or closure of the dwelling or dwelling unit may be levied against the property as a special assessment. (4)Appeal. Any person aggrieved by a summary action of the Building Official shall be entitled to appeal to the City Council by filing a notice of appeal with the City Manager within five days of the summary action. The City Manager must schedule a date for hearing before the City Council and notify the aggrieved person of the date. The hearing will be conducted pursuant to Section 12- 613(4). 12-615-Posted to Prevent Occupancy. Whenever any rental dwelling or rental dwelling unit is found to be hazardous or unfit for human habitation, it shall be posted by the Building Official or designee on the door of the rental dwelling or rental dwelling unit, whichever the case may be, to prevent further occupancy. No person, other than the Building Official or designee, shall remove or alter any posting. The Building Official or designee will post the date the rental dwelling or rental dwelling unit shall be vacated and no person shall reside in, occupy or cause to be occupied that rental dwelling or rental dwelling unit until the Building Official or City Council permits it. 12-616-Falsely Reporting Violations. No person shall report a violation of this Chapter knowing or having reason to know that the report is false with the intent to affect the licensing status or inspection schedule of the rental dwelling. 12-617-Violations. In addition to any other sanctions or administrative penalties imposed, any violation of this Chapter shall constitute a misdemeanor offense, punishable as defined by State law. Each day of violation constitutes a separate offense. 12-618-Rules, Policies, and Procedures. By resolution the City Council may adopt, from time to time, rules, policies, and procedures for the implementation of this Chapter. Violation of any such rule, policy, or procedure by aProperty Owner shall be considered a violation of this Ordinance. 12-619-No Warranty by City. By enacting and undertaking to enforce this Chapter, neither the City nor its Council, agents or employees warrant or guaranty the safety, fitness or suitability of any rental dwelling or rental dwelling unit in the City. Licensees and occupants should take appropriate steps to protect their interests, health, safety and welfare.